00 HOUSE CS FOR CS FOR SENATE BILL NO. 147(FIN) 01 "An Act providing for a sport fishing facility surcharge on sport fishing licenses; 02 providing for the construction and renovation of state sport fishing facilities and for 03 other projects beneficial to the sport fish resources of the state as a public enterprise; 04 and authorizing the issuance of revenue bonds to finance those projects." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 16.05.100 is amended to read: 07 Sec. 16.05.100. Fish and game fund established. There is created a 08 revolving "fish and game fund," which shall be used exclusively for the following: 09 (1) to carry out the purposes and provisions of this title, except 10 AS 16.51 and AS 16.52, or other duties that may be delegated by the legislature to the 11 commissioner or the department; 12 (2) to pay the principal and interest on revenue bonds issued under 13 AS 37.15.765 - 37.15.799 to finance the construction and renovation of fisheries 14 rehabilitation, enhancement, and development projects that benefit sport fishing; 01 and 02 (3) [AND (2)] to carry out the [SUCH] purposes and objectives within 03 the scope of this title except AS 16.51 and AS 16.52 as may be directed by the donor 04 of any such funds. 05 * Sec. 2. AS 16.05.130 is amended by adding new subsections to read: 06 (e) Money accruing to the state from the sport fishing facility surcharge 07 imposed under AS 16.05.340(j) shall be deposited in a separate account known as the 08 Alaska sport fishing enterprise account within the fish and game fund. Money in the 09 enterprise account shall be allocated to sport fishing facilities intended to directly 10 benefit license purchasers. Money in the enterprise account may be pledged to pay the 11 principal and interest on revenue bonds issued under AS 37.15.765 - 37.15.799. The 12 commissioner shall seek authority for the transfer of amounts determined under 13 AS 37.15.783 from the enterprise account to the redemption fund established in 14 AS 37.15.770. 15 (f) Proceeds received from the sale of bonds issued under AS 37.15.765 - 16 37.15.799, other than the proceeds used to pay the cost of issuance and administration 17 and the proceeds deposited in the bond reserve account, shall be deposited in a special 18 account in the fish and game fund to be known as the Alaska sport fishing construction 19 account. The construction account serves as a capital construction fund that shall be 20 used for any purpose for which bonds may be issued, including the payment of cost of 21 issuance and administration and arbitrage rebate. The commissioner also may transfer 22 money in the construction account to the redemption fund. Upon completion of the 23 purposes for which the bonds are issued, the commissioner shall transfer any 24 unexpended and unobligated bond proceeds to the Alaska fish and game revenue bond 25 redemption fund to pay outstanding principal, interest, or redemption premium, if any, 26 owing on the bonds. 27 * Sec. 3. AS 16.05.340(i) is amended to read: 28 (i) If the commissioner determines that residents of the state are entitled to 29 obtain licenses for sport fishing, including sport fishing for anadromous king salmon, 30 in Yukon, Canada, for the same fees that are charged to residents of Yukon for 31 comparable sport fishing licenses, the commissioner may adopt regulations 01 authorizing residents of Yukon to receive 02 (1) nonresident annual sport fishing licenses for the fees [FEE] charged 03 to residents under (a) and (j) of this section for a resident sport fishing license; and 04 (2) nonresident anadromous king salmon annual tags for the fee 05 charged to residents under (a) of this section for a resident anadromous king salmon 06 tag. 07 * Sec. 4. AS 16.05.340 is amended by adding a new subsection to read: 08 (j) In addition to the fees for a sport fishing license set out in (a) and (d) of this 09 section, each person who purchases a sport fishing license shall pay a sport fishing 10 facility surcharge as set out in this subsection for the purpose of providing funding for 11 sport fishing facilities. A person who is eligible for a $5 resident hunting, trapping, 12 and sport fishing license under (a)(6) of this section or a free license under 13 AS 16.05.341 is exempt from payment of the surcharge imposed under this subsection. 14 The surcharge authorized by this subsection shall take effect on the date established by 15 regulation by the commissioner. The authority of the department to collect the 16 surcharge under this subsection terminates on December 31 of the calendar year in 17 which the principal amount of the bonds issued under AS 37.15.765 - 37.15.799, 18 together with the interest on them and any interest owing on unpaid installments of 19 interest, and all other obligations with respect to the bonds, are fully met and 20 discharged. The amount of the surcharge attached to each sport fishing license must 21 be clearly disclosed on the sport fishing license. The amount of the sport fishing 22 facility surcharge to be paid for each sport fishing license is 23 (1) resident sport fishing license.......................................................$ 9 24 (2) resident hunting and sport fishing license..................................... 9 25 (3) resident hunting, trapping, and sport fishing license.................... 9 26 (4) nonresident 14-day sport fishing license.....................................30 27 (5) nonresident seven-day sport fishing license................................25 28 (6) nonresident three-day sport fishing license.................................15 29 (7) nonresident one-day sport fishing license....................................10 30 (8) nonresident annual sport fishing license......................................45 31 (9) special nonresident military small game and sport fishing 01 license........................................................................................................... 02 (10) special nonresident military sport fishing license...................8.50 03 * Sec. 5. AS 37.15 is amended by adding new sections to read: 04 Article 5A. Sport Fishing Facility Revenue Bonds. 05 Sec. 37.15.765. Bond authorization. (a) For purposes of providing the 06 money to be used to construct and renovate sport fishing facilities under 07 AS 16.05.092, including the costs of bond issuance and administration, the issuance 08 and sale of revenue bonds of the state is authorized, subject to (b) of this section. The 09 bonds are to be issued by the state bond committee, as provided in AS 37.15.765 - 10 37.15.799, as part of the sport fisheries rehabilitation, enhancement, and development 11 program under AS 16.05.092, a public enterprise of the state. The net proceeds of the 12 sale of the bonds remaining after payment of costs of issuance and administration and 13 any making deposits to the bond reserve account described in AS 37.15.770(b) shall 14 be paid into the Alaska sport fishing construction account of the fish and game fund. 15 The bond proceeds shall be segregated and accounted for separately. Accrued interest 16 paid on the bonds shall be deposited in the bond redemption fund established under 17 AS 37.15.770. 18 (b) The state bond committee may not issue more than $69,000,000 in revenue 19 bonds, excluding refunding bonds issued under AS 37.15.790. 20 (c) The bonds do not constitute a general obligation of the state. 21 Authorization for the bonds by the voters of the state or the legislature is not required. 22 (d) The state bond committee may enter into agreements with other state 23 agencies as necessary or convenient to implement AS 37.15.765 - 37.15.799. 24 (e) The state bond committee may contract for the services of underwriters, 25 paying agents, trustees, bond printers, rating agencies, bond insurance, credit 26 enhancement providers, accountants, financial advisors, and bond counsel, and other 27 services as are necessary to accomplish the bond issuance and sale. 28 Sec. 37.15.770. Bond redemption fund established. (a) There is established 29 a special fund of the state, known as the Alaska fish and game revenue bond 30 redemption fund, which is a trust fund for paying and securing the payment of the 31 principal of and interest and redemption premium, if any, on the bonds and which 01 shall be, at all times, completely segregated and set apart from all other funds of the 02 state. The committee, on behalf of the state, may obligate and bind the state to set 03 aside and pay into the bond redemption funds, on a monthly or other periodic basis, as 04 a first priority, money in the Alaska sport fish enterprise account and, as a subordinate 05 priority, other money legally available in the fish and game fund, sufficient to pay the 06 principal of and interest and redemption premium, if any, on the bonds. The bond 07 redemption fund may be drawn upon only for the purpose of paying the principal of 08 and interest and redemption premium, if any, on the bonds, together with related 09 trustee fees, if any. 10 (b) The committee may provide in the bond resolution for the creation of a 11 bond reserve account within the redemption fund to further secure the repayment of 12 principal and interest on the bonds. Amounts deposited in the reserve account shall be 13 derived from bond proceeds or other money legally available from state sources. 14 (c) Money in the bond redemption fund may be invested in the same manner 15 and on the same conditions as permitted for investment of money belonging to the 16 state or held in the treasury under AS 37.10.070; however, the committee may agree 17 with the bondholders to further limit these investments. Earnings on investments must 18 be retained in the bond redemption fund. 19 Sec. 37.15.773. Bond terms. (a) The bonds may be issued and sold at public 20 or negotiated sale in the manner, in the amounts or series, and at the time or times that 21 the committee determines. The bonds, or each series of them, shall be sold at the price 22 and upon the terms, conditions, and covenants set by the committee after considering 23 market conditions. Interest rates may be fixed or variable. 24 (b) The bonds mature at the time or times fixed by the committee. The bonds 25 may be subject to redemption before their fixed maturities, in the manner and under 26 the conditions established by the committee, with or without a premium or premiums. 27 The bonds may be in denominations determined by the committee and may be issued 28 in fully or partially registered form. The bonds must be 29 (1) payable as to principal and interest at the place or places 30 determined by the committee; 31 (2) signed on behalf of the state in the manner provided by the 01 committee; 02 (3) issued under and subject to the terms, conditions, covenants, and 03 protective features safeguarding payment of the bonds and relating to the funding of 04 projects as found necessary by the committee, including covenants requiring the 05 setting aside and maintenance of certain reserves to secure the payment of principal 06 and interest, all under regulations and conditions of the committee. 07 (c) The committee may pledge to the payment of the principal of and interest 08 on bonds issued by the committee part or all of the legally available money or other 09 assets on hand in the Alaska sport fishing enterprise account and, on a subordinate lien 10 basis, other legally available money in the fish and game fund; the proceeds of the sale 11 of bonds; and money on hand in the bond redemption funds. Revenue of the Alaska 12 sport fishing enterprise account and fish and game fund if so pledged, must be paid 13 into the bond redemption fund, as appropriate. 14 (d) If the committee finds it reasonably necessary, the committee may select a 15 trustee or trustees for the holders of the bonds, for the safeguarding and disbursement 16 of any of the money in the bond redemption funds created by AS 37.15.770, or for 17 duties with respect to the enforcement, authentication, delivery, payment, and 18 registration of the bonds as the committee may determine. The committee shall fix the 19 rights, duties, powers, and obligations of the trustee or trustees. 20 (e) In its determination of all matters and questions relating to the issuance 21 and sale of the bonds and the fixing of their maturities, terms, conditions, and 22 covenants as provided in (a) - (d) of this section, the decisions of the committee shall 23 be those that are reasonably necessary for the best interests of the state and its 24 inhabitants and that will accomplish the most advantageous sale of the bonds. 25 Decisions of the committee, as expressed in a bond resolution, are final and are 26 conclusively considered to comply with the requirements of state law. 27 (f) A bond resolution may provide that the bonds issued must contain a recital 28 that they are issued under AS 37.15.765 - 37.15.799, and a bond containing this recital 29 is conclusively considered to be valid and to have been issued in conformity with 30 AS 37.15.765 - 37.15.799. 31 Sec. 37.15.777. Bond resolution. The committee shall authorize the issuance 01 of bonds by adopting a resolution and shall prepare all other documents and 02 proceedings necessary for the issuance, sale, and delivery of the bonds or any part or 03 series of them. The bond resolution may provide for delegation of authority to 04 establish the final terms of the bonds, including the terms identified in AS 37.15.773, 05 upon reasonable conditions established by the committee. 06 Sec. 37.15.780. Pledge of the state. The state pledges to and agrees with the 07 holders of bonds issued by the committee under AS 37.15.765 - 37.15.799 that the 08 state will not limit or alter the rights and powers vested in the committee by 09 AS 37.15.765 - 37.15.799 to fulfill the terms of any contract made by the committee 10 with the holders or in any way impair the rights and remedies of the holders until the 11 principal amount of the bonds, together with the interest on them with interest on 12 unpaid installments of interest, are fully met and discharged. The committee may 13 include this pledge and agreement of the state in a contract with the holders. 14 Sec. 37.15.783. Amounts required for payments. The committee shall, 15 before June 30 of each year or from time to time within the year, as appropriate, 16 beginning with the year in which the bonds are issued, certify to the commissioner of 17 revenue and the commissioner of fish and game the amounts required in the current 18 fiscal year and the next ensuing fiscal year by the bond resolution or resolutions to be 19 paid out of the Alaska sport fishing enterprise account into the bond redemption fund 20 and to be paid into and maintained in any reserve fund or account or other fund or 21 account created by the bond resolution or resolutions, and shall also certify to the 22 commissioners the last date or dates upon which payments may be made. 23 Sec. 37.15.787. Purposes and sufficiency of revenue. The proceeds of 24 bonds may be used for the purposes described in AS 16.05.092. Bonds may not be 25 issued unless the committee first finds that revenue to be derived from revenue 26 dedicated to the Alaska sport fishing enterprise account will be sufficient, together 27 with other available money, to comply with all covenants of the bond resolutions. 28 Sec. 37.15.790. Refunding. (a) The committee may refund the bonds or any 29 part of them at or before their maturities or redemption dates by the issuance of 30 refunding revenue bonds of the state if, in the opinion of the committee, refunding is 31 advantageous to and in the best interest of the state and its inhabitants. 01 (b) The issuance of refunding bonds need not be authorized by the voters of 02 the state or by an act of the legislature. The committee shall adopt the resolution or 03 resolutions and prepare all other documents and proceedings necessary for the 04 issuance, exchange or sale, and delivery of the refunding bonds. All provisions of 05 AS 37.15.765 - 37.15.799, applicable to revenue bonds are applicable to the refunding 06 bonds and to the issuance, sale, or exchange of refunding bonds, except as otherwise 07 provided in this section. 08 (c) Refunding bonds may be issued in a principal amount sufficient to provide 09 money for the advance or current refunding of all bonds to be refunded and interest on 10 the refunded bonds and, in addition, for the payment of all costs of issuance and 11 administration of the refunding bonds. These expenses also include the difference in 12 amount between the par value of the refunding bonds and any amount less than par for 13 which the refunding bonds are sold; the premium, if any, necessary to be paid in order 14 to call or retire the outstanding bonds and the interest accruing on them to date of the 15 call or retirement; and other such costs. The committee is authorized to incur such 16 expenses. 17 (d) The committee may contract with a refunding trustee to hold the proceeds 18 of refunding bonds in trust until the proceeds, together with earnings on the proceeds, 19 are applied to pay the principal of, premium, if any, and interest on the bonds to be 20 refunded. Until the refunding bond proceeds are applied, the proceeds may be 21 invested in direct obligations of, or obligations guaranteed by, the United States or an 22 agency or corporation of the United States whose obligations constitute direct 23 obligations of, or obligations guaranteed by, the United States. 24 Sec. 37.15.793. Bonds as legal investments. The bonds are legal investments 25 for all banks, trust companies, savings banks, savings and loan associations, and other 26 persons carrying on a banking business, all insurance companies and other persons 27 carrying on an insurance business, and all executors, administrators, trustees, and other 28 fiduciaries. The bonds may be accepted as security for deposits of all money of the 29 state and its political subdivisions. 30 Sec. 37.15.799. Definitions. In AS 37.15.765 - 37.15.799, 31 (1) "Alaska sport fishing construction account" means the Alaska sport 01 fishing construction account established in the fish and game fund under 02 AS 16.05.130(f); 03 (2) "Alaska sport fishing enterprise account" means the Alaska sport 04 fishing enterprise account established in the fish and game fund under 05 AS 16.05.130(e); 06 (3) "bond redemption fund" means the Alaska fish and game revenue 07 bond redemption fund established in AS 37.15.770; 08 (4) "bond resolution" means the resolution or resolutions adopted by 09 the committee under AS 37.15.777 authorizing the issuance of bonds; 10 (5) "bonds" means the revenue bonds authorized in AS 37.15.765 - 11 37.15.799; 12 (6) "commissioner of revenue" means the principal executive officer of 13 the Department of Revenue as provided in AS 44.25.010, or a successor; 14 (7) "commissioner of fish and game" means the principal executive 15 officer the Department of Fish and Game as provided in AS 44.39.010, or a successor; 16 (8) "committee" means the state bond committee created in 17 AS 37.15.110 or any other committee, body, department, or officer of the state that 18 succeeds to the rights, powers, duties, and obligations of the state bond committee by 19 lawful act of the legislature; 20 (9) "costs of issuance and administration" means all costs associated 21 with issuance and administration of Alaska sport fishing facility revenue bonds, and 22 refunding bonds, including costs of bond printing, official statements, financial 23 advisors, travel costs, rating agencies, bond insurance, letters and lines of credit for 24 credit enhancement, underwriters, legal services, paying agents, bonds registrars, bond 25 and escrow trustees, arbitrage rebate, and all other costs, including administrative 26 costs, both direct and indirect. 27 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 DUTY OF COMMISSIONER OF REVENUE TO NOTIFY AND REVISOR'S 30 INSTRUCTIONS. (a) The commissioner of revenue shall notify the lieutenant governor and 31 the revisor of statutes of the date that the principal amount of the bonds issued under 01 AS 37.15.765 - 37.15.799, enacted by sec. 5 of this Act, together with the interest on them 02 and any interest owing on unpaid installments of interest, and all other obligations with 03 respect to the bonds, are fully met and discharged. 04 (b) The revisor of statutes shall replace the pertinent text of AS 16.05.340(j), enacted 05 by sec. 4 of this Act, with the calendar year of the date provided under (a) of this section.