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Alaska2026Passed Legislature

HB199

Alaska Commercial Fishing and Agriculture Bank Loan Rules

Last scannedSep 10, 2026, 12:32 AM

In one sentence

This law allows the state to buy shares in a special bank using leftover aviation funds, sets strict rules for new loans including interest rates and terms, and requires a review of those loans.

What it does

  • Requires the Department of Commerce, Community, and Economic Development to purchase nonvoting preferred shares from the Alaska Commercial Fishing and Agriculture Bank if money is available in the budget.
  • Sets rules for new or refinanced loans using these funds, including a fixed term of 15 years and a fixed interest rate.
  • Limits loan interest rates to no more than two percentage points above the prime rate or 5.25 percent per year, whichever is lower.
  • Requires the bank to send a list of all loans made under these rules to the department for review within a set time after the law takes effect.
  • Orders the department to compare projected interest earnings on new loans against old loan terms and request share buybacks if savings are too low.

Who it affects

  • The Alaska Commercial Fishing and Agriculture Bank
  • Persons involved in Alaska's commercial fishing industry who receive or refinance loans
  • The Department of Commerce, Community, and Economic Development

Limits and unknowns

  • The law only works if the legislature approves money (appropriation) for the department to buy shares.
  • This act will be repealed on July 1, 2027, meaning these specific rules may not apply after that date.

Plain language

Terms to know

Nonvoting preferred shares
A type of bank ownership that gives the buyer priority to get their money back but does not give them a vote on how the bank is run.
Prime rate
The standard interest rate banks charge their best customers, used here as a base for calculating loan costs.
Amortization schedule
A table that shows how much of each loan payment goes toward the principal balance and how much goes toward interest over time.

Official record

Sources

Validated
Official bill pageIntroduced textCurrent bill text

Official summary

AK COMMERCIAL FISHING & AG BANK; LOANS 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; and providing for an effective date.

Official activity

Bill history

  1. (H) REFERRED TO RULES1054
  2. (H) FIN REFERRAL REMOVED1054
  3. (H) FN1: ZERO(CED)1038
  4. (H) DP: VANCE, KOPP, EDGMON, HIMSCHOOT, ELAM, MCCABE, STUTES1038
  5. (H) FSH RPT CS(FSH) 7DP1038
  6. (H) Minutes (HFSH)Min
  7. (H) Moved CSHB 199(FSH) Out of CommitteeText
  8. (H) FISHERIES at 10:00 AM GRUENBERG 120Text
  9. (H) Minutes (HFSH)Min
  10. (H) Heard & HeldText
  11. (H) FISHERIES at 10:00 AM GRUENBERG 120Text
  12. (H) FSH, FIN810
  13. (H) READ THE FIRST TIME - REFERRALS810