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Alaska2026Vetoed

SB156

Alaska Commercial Fishing and Agriculture Bank Loan Rules

Last scannedSep 12, 2026, 4:46 AM

In one sentence

This bill directs the state to buy shares in a specific bank so it can offer loans with fixed terms and interest rates to commercial fishermen who use their fishing permits as collateral.

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 using unobligated funds from a former avionics loan fund, subject to legislative appropriation.
  • Allows the bank to make or refinance loans only if they are secured by limited entry fishing permits pledged as collateral.
  • Sets rules that these loans must have a 15-year term, a fixed interest rate, and an interest cap of either the prime rate plus two percentage points or 5.25 percent per year.
  • Mandates that the bank provide detailed loan lists to the department for review within 120 days after specific dates.
  • Requires the bank to buy back shares from the state if a calculation shows projected interest earnings are lower than the value of the purchased shares.

Who it affects

  • The Alaska Commercial Fishing and Agriculture Bank
  • Commercial fishermen who hold limited entry permits under AS 16.43
  • The Department of Commerce, Community, and Economic Development

Limits and unknowns

  • The bill was vetoed by the governor on July 16, 2025, so it may not become active unless lawmakers override that decision.
  • Funding for purchasing shares depends on legislative appropriation and money remaining in a former avionics loan fund as of July 1, 2020.

Plain language

Terms to know

Limited Entry Permit
A government-issued document that allows a person to fish in specific areas or for certain species; this bill requires these permits be used as collateral.
Nonvoting Preferred Shares
Ownership stakes in the bank that give priority on repayment but do not allow the owner to vote on bank decisions.
Prime Rate
A standard interest rate used by banks as a benchmark for setting other loan rates, defined under state law AS 44.88.599.

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; relating to certain commercial fishing loans; and providing for an effective date.

Official activity

Bill history

  1. (S) VETOED BY GOVERNOR 7/16/251413
  2. (S) MANIFEST ERROR(S)1391
  3. (S) 8:45 A.M. 6/26/25 TRANSMITTED TO GOVERNOR1391
  4. (S) EFFECTIVE DATE(S) SAME AS PASSAGE1377
  5. (S) CONCUR AM OF (H) Y19 N11377
  6. (S) CONCUR MESSAGE READ AND TAKEN UP1377
  7. (H) VERSION: HCS CSSB 156(FSH)1358
  8. (H) TRANSMITTED TO (S) AS AMENDED1358
  9. (H) EFFECTIVE DATE(S) SAME AS PASSAGE1344
  10. (H) PASSED Y401344
  11. (H) READ THE THIRD TIME HCS CSSB 156(FSH)1344
  12. (H) ADVANCED TO THIRD READING 5/20 CALENDAR1322
  13. (H) FSH HCS ADOPTED UC1322
  14. (H) READ THE SECOND TIME1321
  15. (H) RULES TO CALENDAR 5/19/20251321
  16. (H) FN2: (S.FIN/CED)1313
  17. (H) FN1: ZERO(CED)1313
  18. (H) NR: MCCABE1313
  19. (H) DP: KOPP, EDGMON, HIMSCHOOT, ELAM, STUTES1313
  20. (H) TECHNICAL TITLE CHANGE1313