Alaska SB 156: An Act relating to unemployment insurance contribution rates; and providing for an effective date.

Bill Text

Enrolled SB 156
LAWS OF ALASKA

2025

Source Chapter No.
HCS CSSB 156(FSH) _______

AN ACT

Relating to the Department of Commerce, Community, and Economic Development; relating
to the Alaska Commercial Fishing and Agriculture Bank; relating to certain loans made by the
Alaska Commercial Fishing and Agriculture Bank; relating to certain commercial fishing
loans; and providing for an effective date.

_______________

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:

THE ACT FOLLOWS ON PAGE 1

-1- Enrolled SB 156

AN ACT

Relating to the Department of Commerce, Community, and Economic Development; relating 1
to the Alaska Commercial Fishing and Agriculture Bank; relating to certain loans made by the 2
Alaska Commercial Fishing and Agriculture Bank; relating to certain commercial fishing 3
loans; and providing for an effective date. 4
_______________ 5
* Section 1. The uncodified law of the State of Alaska is amended by adding a new section 6
to read: 7
ALASKA COMMERCIAL FISHING AND AGRICULTURE BANK; LOANS. (a) 8
Subject to legislative appropriation, the Department of Commerce, Community, and 9
Economic Development shall purchase nonvoting, preferred shares issued by the Alaska 10
Commercial Fishing and Agriculture Bank established under AS 44.81.010 for the purpose of 11
enabling the bank to make loans to persons involved in the state's commercial fishing industry 12
under AS 44.81.215. Except as provided in (d) of this section, the bank shall repurchase 13
shares the department purchased under this section 20 years after the purchase. If the bank 14

Enrolled SB 156 -2-
fails to repurchase the shares 20 years after the purchase by the department, the commissioner 1
of commerce, community, and economic development may appoint a receiver to direct, 2
manage, and operate the bank until the shares have been repurchased. Upon voluntary or 3
involuntary liquidation of the bank, and upon repayment of all legal debts and obligations of 4
the bank, all nonvoting, preferred shares owned by the department have priority for 5
redemption over all other forms and amounts of ownership of the bank. 6
(b) The Alaska Commercial Fishing and Agriculture Bank may not originate or 7
refinance a loan under this section unless the loan is secured, or secured in part, by a limited 8
entry permit issued under AS 16.43 that has been pledged by the holder as collateral. A loan 9
made by the bank using funds provided by the Department of Commerce, Community, and 10
Economic Development's purchase of shares under this section 11
(1) shall have a fixed term of 15 years; 12
(2) shall have a fixed interest rate; 13
(3) may not bear interest 14
(A) exceeding the prime rate, as defined in AS 44.88.599, plus two 15
percentage points; or 16
(B) at a rate of more than 5.25 percent a year. 17
(c) On the effective date of sec. 4, ch. 25, SLA 2024, the Alaska Commercial Fishing 18
and Agriculture Bank shall provide the division within the Department of Commerce, 19
Community, and Economic Development that is responsible for banking and securities a list 20
of each loan originated or refinanced under (b) of this section, with confidential borrower 21
information redacted. The list must include, for each loan, 22
(1) the loan number, principal balance, interest rate, and loan term; 23
(2) a copy of the loan agreement; 24
(3) an amortization schedule, including the comparison made under (4) of this 25
subsection; 26
(4) a comparison of 27
(A) the loan's baseline interest earnings, calculated as the projection of 28
the refinanced or originated loan's interest using the principal and the interest rate in 29
effect for the loan before it was refinanced, or the interest rate and term that the loan 30
would have had if the loan had not been made by the Alaska Commercial Fishing and 31

-3- Enrolled SB 156
Agriculture Bank under (b) of this section, amortized over a 15-year term assuming 1
timely loan payments; and 2
(B) the loan's post-refinance or post-origination interest earnings, 3
calculated as the loan's projected interest earnings using the loan's principal, the loan's 4
actual interest rate as originated or refinanced under (b) of this section, and a 15-year 5
term assuming timely loan repayments; and 6
(5) any other information that the division may need to complete the review. 7
(d) Within 120 days after the Alaska Commercial Fishing and Agriculture Bank 8
provides the Department of Commerce, Community, and Economic Development the list 9
required under (c) of this section, the department shall conduct a one-time review of the listed 10
information. If the department determines that the difference in projected interest earnings for 11
all loans originated or refinanced under (b) of this section for the Alaska Commercial Fishing 12
and Agriculture Bank, as calculated under (c) of this section, is less than the par value of the 13
shares purchased by the department under (a) of this section, the department shall request that 14
the bank re