00                      CS FOR SENATE BILL NO. 69(RES)                                                                    
01 "An Act establishing the Alaska Chinook salmon research and restoration endowment                                       
02 fund and relating to grants from the fund."                                                                             
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 37.14 is amended by adding new sections to read:                                                   
05     Article 7A. Alaska Chinook Salmon Research and Restoration Endowment Fund.                                        
06            Sec. 37.14.650. Fund established. (a) The Alaska Chinook salmon research                                   
07       and restoration endowment fund is established as a separate endowment trust fund of                               
08       the state consisting of                                                                                           
09                 (1)  appropriations to the fund;                                                                        
10                 (2)  donations to the fund; and                                                                         
11                 (3)  income earned on investments of fund assets if that income is                                      
12       appropriated by the legislature to the fund.                                                                      
13            (b)  The commissioner of revenue shall manage the fund as an endowment,                                      
14       with the goal that the purchasing power of the fund will not diminish over time                                   

01       without regard to additional contributions that may be made to the fund. The                                      
02       commissioner shall invest the assets of the fund in a manner likely to yield at least a                           
03       five percent real rate of return over time. The commissioner may comingle the assets                              
04       of the fund with other public funds for purposes of investment.                                                   
05            (c)  In carrying out the investment duties for the fund, the commissioner of                                 
06       revenue has the powers and duties set out in AS 37.10.071. The commissioner shall                                 
07                 (1)  provide annual reports to the board on the condition and investment                                
08       performance of the fund;                                                                                          
09                 (2)  maintain records for all donations to the fund; the records must                                   
10       reflect, for each donation, the amount of the donation, the date of the donation, and the                         
11       donor's intent, if any, with respect to how the donation is to be used; and                                       
12                 (3)  monitor use of money by the board.                                                                 
13            (d)  Nothing in this section creates a dedicated fund.                                                       
14            Sec. 37.14.655. Grant account established. The Alaska Chinook salmon                                       
15       research and restoration grant account is established as an account in the general fund.                          
16            Sec. 37.14.660. Appropriations to the grant account. (a) As soon as                                        
17       practicable after July 1 of each year, the commissioner of revenue shall identify as                              
18       available for appropriation to the Alaska Chinook salmon research and restoration                                 
19       grant account the greater of                                                                                      
20                 (1)  five percent of the average of the market values of the fund on                                    
21       June 30 for the immediately preceding three fiscal years;                                                         
22                 (2)  one-half of the earnings of the fund as averaged annually over the                                 
23       immediately preceding three fiscal years; and                                                                     
24                 (3)  if the principal of the fund is valued at more than $50,000,000                                    
25       based on the market value of the fund on June 30 for the immediately preceding fiscal                             
26       year, the total earnings of the fund for that fiscal year.                                                        
27            (b)  The legislature may appropriate amounts to the grant account                                            
28                 (1)  as calculated under (a) of this section; or                                                        
29                 (2)  from any source in any amount.                                                                     
30            Sec. 37.14.665. Use of the grant account. (a) Appropriations to the grant                                  
31       account established by AS 37.14.655 may be used for                                                               

01                 (1)  grants for research and restoration projects for Chinook salmon                                    
02       stocks located in the state, including block grants to Alaska organizations identifying                           
03       and administering research and restoration projects for Chinook salmon stocks, if                                 
04                      (A)  the project is consistent with a research and restoration plan                                
05            adopted by the organization and the plan has been approved by the Department                                 
06            of Fish and Game; and                                                                                        
07                      (B)  the grant applicant provides matching funds in an amount                                      
08            equal to 25 percent of the grant amount;                                                                     
09                 (2)  reimbursement of the Department of Revenue for the costs of                                        
10       establishing and managing the fund;                                                                               
11                 (3)  reimbursement of the Department of Commerce, Community, and                                        
12       Economic Development for the costs of establishing, maintaining, and administering                                
13       the board and the grant program;                                                                                  
14                 (4)  matching funds for private and federal grants; and                                                 
15                 (5)  solicitation of contributions for purposes consistent with                                         
16       establishment of the fund.                                                                                        
17            (b)  The board may expend private donations for Chinook salmon research and                                  
18       restorations projects and other uses consistent with the purposes of the fund and in                              
19       conformity with the donor's restrictions.                                                                         
20            Sec. 37.14.670. Board established. The Alaska Chinook Salmon Research and                                  
21       Restoration Endowment Fund Board is established in the Department of Commerce,                                    
22       Community, and Economic Development.                                                                              
23            Sec. 37.14.675. Board members. (a) The board consists of the following                                     
24       members appointed by the governor:                                                                                
25                 (1)  the commissioner of fish and game or the commissioner's designee;                                  
26       and                                                                                                               
27                 (2)  six public members, one of whom resides in each of the following                                   
28       regions and engages in subsistence, personal, commercial, or sport use of Chinook                                 
29       salmon stocks in that region:                                                                                     
30                      (A)  Southeast Alaska, consisting of all land and water between                                    
31            Cape Suckling and Dixon Entrance that are Gulf of Alaska or mainland                                         

01            drainages; the Guyot Hills; islands in Stephens Passage and Lynn Canal;                                      
02            Coronation Island, Kuiu Island, Kupreanof Island, Mitkof Island, Zarembo                                     
03            Island, Kashevarof Island, Woronkofski Island, Etolin Island, Wrangell Island,                               
04            Deer Island, Admiralty Island, Baranof Island, Chichagof Island, Yakobi                                      
05            Island, Inian Island, Lemesurier Island, Pleasant Island; and adjacent marine                                
06            water and land within three miles of the coastline;                                                          
07                      (B)  Southcentral Alaska, consisting of all land and water in                                      
08            those drainages south and east of the Alaska Range that drain into the Gulf of                               
09            Alaska, Cook Inlet, and Prince William Sound between Cape Suckling and                                       
10            Cook Inlet; the drainage between Redoubt Creek and the northern boundary of                                  
11            Katmai National Preserve that flows into Shelikof Strait; the Chitina drainage                               
12            east to the Canadian border; the drainages into the Delta River upstream from                                
13            Falls Creek and Black Rapids Glacier; the Kodiak Archipelago and Barren                                      
14            Islands; the drainages on the Alaska Peninsula that flow into the Gulf of                                    
15            Alaska; and adjacent marine water and land within three miles of the coastline;                              
16                      (C)  Southwest Alaska, consisting of all land and water between                                    
17            Kennedy Entrance and Cape Newenham that drain into Bristol Bay and the                                       
18            Bering Sea; the drainages on the Alaska Peninsula that flow into the Bering                                  
19            Sea; Hagemeister Island, Walrus Island, Pribilof Island, Unimak Island, and                                  
20            Aleutian Islands; and adjacent marine water and land within three miles of the                               
21            coastline;                                                                                                   
22                      (D)  Western Alaska, consisting of all land and water between                                      
23            Cape Newenham and the Pastolik River near Kotlik that drain into the Bering                                  
24            Sea from the Yukon River downstream from a straight line drawn between                                       
25            Lower Kalskag and Kotlik; the George River drainage; the Kuskokwim River                                     
26            drainage downstream from the George River drainage; the Holitna River                                        
27            drainage; the Hoholitna River drainage; and adjacent marine water and land                                   
28            within three miles of the coastline;                                                                         
29                      (E)  Arctic Alaska, consisting of all land and water between the                                   
30            Pastolik River near Kotlik and Harrison Bay west of the Ilkillik River drainage                              
31            that drain into the Arctic Ocean, the Chukchi Sea, Kotzebue Sound, or Norton                                 

01            Sound; Saint Lawrence Island and adjacent islands; and the adjacent marine                                   
02            water and land within three miles of the coastline;                                                          
03                      (F)  Interior Alaska, consisting of all land and water of the                                      
04            Kuskokwim River drainage upstream from the George River drainage; all                                        
05            drainages into the east bank of the Robertson River; White River drainage to                                 
06            the Canadian border; Tozitna River drainage; Yukon River drainage upstream                                   
07            from the Tozitna River drainage; Hamlin Creek drainage; all drainages into the                               
08            south bank of the Yukon River upstream from and including the Charley River                                  
09            drainage; the Ladue River drainage; Fortymile River drainage; Tanana River                                   
10            drainage north of the Alaska Range; and the Koyukuk River drainage.                                          
11            (b)  Members shall serve terms of five years and may be reappointed by the                                   
12       governor.                                                                                                         
13            Sec. 37.14.680. Duties of the board. (a) The Alaska Chinook Salmon                                       
14       Research and Restoration Endowment Fund Board shall administer the grant program.                                 
15            (b)  The board shall                                                                                         
16                 (1)  within 90 days after the appointment of the seventh board member,                                  
17       adopt bylaws governing the board's operation and identify an organization                                         
18       incorporated in Alaska to provide clerical and administrative support to the board in                             
19       performing its duties;                                                                                            
20                 (2)  monitor approved projects for compliance with specific grant                                       
21       conditions;                                                                                                       
22                 (3)  keep electronic recordings of each meeting of the board to be made                                 
23       available on request;                                                                                             
24                 (4)  adopt regulations creating a process for soliciting, awarding, and                                 
25       monitoring research and restoration grants and ensuring peer review for grant projects;                           
26       the board shall consider the process and structure of the North Pacific Research Board                            
27       and the National Fish Habitat Board in adopting its regulations;                                                  
28                 (5)  award grants upon affirmative vote of the six public members; and                                  
29                 (6)  provide an opportunity for the public to comment on the merits,                                    
30       methods, and parameters of research, restoration projects, or other matters relating to                           
31       the board and the fund.                                                                                           

01            (c)  On February 1 of each year following the calendar year grants are first                                 
02       awarded, the board shall prepare and submit a report to the governor and make the                                 
03       report available to the legislature. The report must include, for the last calendar year,                         
04                 (1)  the number of applicants and the number and type of grants                                         
05       awarded;                                                                                                          
06                 (2)  the dollar amount of grants awarded;                                                               
07                 (3)  the research and restoration projects funded and the results of those                              
08       projects;                                                                                                         
09                 (4)  the expense to administer the fund, the grants, and the board; and                                 
10                 (5)  the amount of private contributions, if any, to the fund and how                                   
11       those contributions were used.                                                                                    
12            Sec. 37.14.685. Review of grants. (a) When reviewing grant applications, the                             
13       board shall give weight to the following factors:                                                                 
14                 (1)  whether the Chinook salmon stocks targeted in the grant                                            
15       application provide a significant commercial, subsistence, sport, or personal use                                 
16       fishery for Alaska residents;                                                                                     
17                 (2)  the importance of the Chinook salmon stocks targeted in the grant                                  
18       application and the fisheries those stocks support, taking into consideration the use of                          
19       stocks by Alaska residents for nutritional, economic, social, and cultural well-being;                            
20                 (3)  whether the applicant has experience in administering research or                                  
21       restoration projects for Chinook salmon;                                                                          
22                 (4)  recommendations of state agencies or organizations involved in                                     
23       Chinook salmon management in the state.                                                                           
24            (b)  The board shall give priority to grant applications for research or                                     
25       restoration projects targeting Chinook salmon stocks that, within the preceding 10                                
26       years,                                                                                                            
27                 (1)  were listed by the Department of Fish and Game as stocks of                                        
28       concern;                                                                                                          
29                 (2)  were the subject of a state or federal fisheries disaster declaration;                             
30                 (3)  were closed or significantly restricted for commercial, sport, or                                  
31       personal use, or restricted for subsistence uses; or                                                              

01                 (4)  declined significantly from historic yield levels.                                                 
02            Sec. 37.14.695. Definitions. In AS 37.14.650 - 37.14.695,                                                  
03                 (1)  "board" means the Alaska Chinook Salmon Research and                                               
04       Restoration Endowment Fund Board established under AS 37.14.670;                                                  
05                 (2)  "Chinook salmon" means Alaska king salmon of the genus                                             
06       Oncorhynchus, species tshawytscha;                                                                                
07                 (3)  "fund" means the Alaska Chinook salmon research and restoration                                    
08       endowment fund established under AS 37.14.650;                                                                    
09                 (4)  "grant account" means the Alaska Chinook salmon research and                                       
10       restoration grant account established under AS 37.14.655.                                                         
11    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
12 read:                                                                                                                   
13       TRANSITION. The governor shall appoint three members under AS 37.14.675 to an                                     
14 initial term of three years and four members to an initial term of five years. After a member's                         
15 initial term has expired, appointments shall comply with AS 37.14.675(b).