00                             HOUSE BILL NO. 418                                                                          
01 "An Act providing notice of and authorization for the Department of Administration to                                   
02 enter into a lease-purchase agreement for the construction, the purchase of equipment,                                  
03 and the financing of a fish hatchery in Anchorage to be operated by the Department of                                   
04 Fish and Game; relating to the issuance of certificates of participation for the fish                                   
05 hatchery; authorizing payments for the lease-purchase agreement from sport fishing                                      
06 facility license surcharge fees; relating to capital lease financing of sport fishing                                   
07 facilities; and providing for an effective date."                                                                       
08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
09    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
10 to read:                                                                                                                
11       FINDINGS, INTENT, AND PURPOSE. (a) The legislature finds that                                                     
12            (1)  sport fishing is an important part of the lifestyle of this state, and                                  
13 contributes more than $1 billion a year to the state's economy;                                                         
01            (2)  sport fish hatcheries play an important part in fisheries management in this                            
02 state by enhancing existing fisheries and creating new, easily accessible roadside fisheries that                       
03 reduce pressure on wild stocks;                                                                                         
04            (3)  the two existing hatcheries in Anchorage provide fish for stocking at more                              
05 than 300 sites throughout the southcentral and interior regions of this state;                                          
06            (4)  the ability of these hatcheries to produce fish to meet existing demand was                             
07 put in jeopardy when nearby military bases shut down their power plants that had been a vital                           
08 source of heat at no cost for accelerating fish growth;                                                                 
09            (5)  in 2005, the legislature recognized that the best way for the Department of                             
10 Fish and Game to continue to provide sport fish for anglers of this state was to build new                              
11 hatcheries in Fairbanks and Anchorage and authorized the issuance of revenue bonds to                                   
12 finance their construction through the enactment of ch. 94, SLA 2005;                                                   
13            (6)  the state bond committee issued revenue bonds under ch. 94, SLA 2005                                    
14 and at least $21,000,000 of the proceeds of those bonds are currently assigned to a new fish                            
15 hatchery to be located in Anchorage; and                                                                                
16            (7)  the capital investment in sport fish hatcheries authorized by ch. 94, SLA                               
17 2005 and this Act would solidify the heritage of recreational angling in this state well into the                       
18 future.                                                                                                                 
19       (b)  It is the intent of the legislature that the assignment of revenue bond money                                
20 received through ch. 94, SLA 2005 along with the proceeds of the certificates of participation                          
21 to be issued by the state bond committee under sec. 5 of this Act, including any investment                             
22 income earned, be used to construct the fish hatchery in Anchorage. It is also the intent of the                        
23 legislature that the amount of money to be used for the construction and equipping of the new                           
24 fish hatchery in Anchorage is $100,000,000. Of that amount, it is further the intent of the                             
25 legislature that                                                                                                        
26            (1)  at least $21,000,000 shall come from the Alaska sport fishing construction                              
27 account (AS 16.05.130(f));                                                                                              
28            (2)  approximately $9,000,000 shall come from the investment income earned                                   
29 on the proceeds of the sale of the bonds described in (a) of this section; and                                          
30            (3)  up to $70,000,000 shall come from the proceeds of the certificates of                                   
31 participation to be issued by the state bond committee described in sec. 5 of this Act.                                 
01       (c)  The purpose of secs. 5 and 6 of this Act is to provide notice of and authorize the                           
02 Department of Administration to enter into a lease-purchase agreement for the construction                              
03 of, the purchase of equipment for, and the financing of a fish hatchery in Anchorage.                                   
04    * Sec 2. AS 16.05.100 is amended to read:                                                                          
05            Sec. 16.05.100. Fish and game fund established. There is created a revolving                               
06       "fish and game fund," which shall be used exclusively for the following:                                          
07                 (1)  to carry out the purposes and provisions of this title, except                                     
08       AS 16.51 and AS 16.52, or other duties that may be delegated by the legislature to the                            
09       commissioner or the department;                                                                                   
10                 (2)  to pay the principal of and interest on revenue bonds issued under                                 
11       AS 37.15.765 - 37.15.799 to finance the construction and renovation of fisheries                                  
12       rehabilitation, enhancement, and development projects that benefit sport fishing;                                 
13       [AND]                                                                                                             
14                 (3)  to make lease payments for capital leases that finance the                                     
15       construction and renovation of fisheries rehabilitation, enhancement, and                                     
16       development projects that benefit sport fishing; and                                                          
17                 (4)  to carry out the purposes and objectives within the scope of this                              
18       title except AS 16.51 and AS 16.52 as may be directed by the donor of any such funds.                             
19    * Sec. 3. AS 16.05.130(e) is amended to read as follows:                                                           
20            (e)  Money accruing to the state from the sport fishing facility surcharge                                   
21       imposed under AS 16.05.340(j) shall be deposited in a separate account known as the                               
22       Alaska sport fishing enterprise account within the fish and game fund. Money in the                               
23       enterprise account shall be allocated to sport fishing facilities intended to directly                            
24       benefit license purchasers. Money in the enterprise account may be pledged to pay the                             
25       principal of and interest on revenue bonds issued under AS 37.15.765 - 37.15.799 and                          
26       on a subordinate basis may be pledged to the payment of capital leases. The                                 
27       commissioner shall seek authority for the transfer of amounts determined under                                    
28       AS 37.15.783 from the enterprise account to the redemption fund established in                                    
29       AS 37.15.770.                                                                                                     
30    * Sec. 4. AS 16.05.340(j) is amended to read:                                                                      
31            (j)  In addition to the fees for a sport fishing license set out in (a) and (d) of this                      
01       section, each person who purchases a sport fishing license shall pay a sport fishing                              
02       facility surcharge as set out in this subsection for the purpose of providing funding for                         
03       sport fishing facilities. A person who is eligible for a $5 resident hunting, trapping,                           
04       and sport fishing license under (a)(6) of this section or a free license under                                    
05       AS 16.05.341 is exempt from payment of the surcharge imposed under this subsection.                               
06       The surcharge authorized by this subsection shall take effect on the date established by                          
07       regulation by the commissioner. The authority of the department to collect the                                    
08       surcharge under this subsection terminates on December 31 of the calendar year in                                 
09       which the principal amount of the bonds issued under AS 37.15.765 - 37.15.799,                                    
10       together with the interest on them and any interest owing on unpaid installments of                               
11       interest, and all other obligations with respect to the bonds, are fully met and                                  
12       discharged, and any sport fishing facility capital lease financed by the surcharge is                         
13       fully paid and no longer outstanding. The amount of the surcharge attached to each                          
14       sport fishing license must be clearly disclosed on the sport fishing license. The amount                          
15       of the sport fishing facility surcharge to be paid for each sport fishing license is as                           
16       follows:                                                                                                      
17            (1)  resident sport fishing license..................................................$ 9                     
18            (2)  resident hunting and sport fishing license.................................9                            
19            (3)  resident hunting, trapping, and sport fishing license................9                                  
20            (4)  nonresident 14-day sport fishing license................................30                              
21            (5)  nonresident seven-day sport fishing license...........................25                                
22            (6)  nonresident three-day sport fishing license............................15                               
23            (7)  nonresident one-day sport fishing license...............................10                              
24            (8)  nonresident annual sport fishing license.................................45                             
25            (9)  special nonresident military small game and sport                                                       
26              fishing license................................................................................9           
27            (10)  special nonresident military sport fishing license..................9.                                 
28    * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to                          
29 read:                                                                                                                   
30       NOTICE AND APPROVAL OF ENTRY INTO AND FINANCING OF A LEASE-                                                       
31 PURCHASE AGREEMENT. (a) Subject to annual appropriation, with the primary sources of                                    
01 repayment intended to be general fund monies and the sport fishing facility surcharge                                   
02 established under AS 16.05.340(j), the Department of Administration is authorized to enter                              
03 into a lease-purchase agreement for a fish hatchery in Anchorage to be constructed under the                            
04 lease-purchase agreement and to be operated by the Department of Fish and Game.                                         
05       (b)  The state bond committee is authorized to provide for the issuance of certificates                           
06 of participation in one or more series in the aggregate principal amount of up to $70,000,000                           
07 for the construction of a fish hatchery in Anchorage under the lease-purchase agreement                                 
08 authorized in (a) of this section. The anticipated total cost of construction, acquisition, and                         
09 other costs of the project is $100,000,000. The anticipated annual amount of rental obligations                         
10 under the lease-purchase agreement is $5,100,000. The anticipated total lease payments for                              
11 the full term of the lease-purchase agreement is $125,637,000. In this subsection, "cost of                             
12 construction" includes credit enhancement and underwriting expenses, rating agency fees,                                
13 bond counsel fees, financial advisor fees, printing fees, advertising fees, capitalized interest,                       
14 and interest earnings used for lease payments.                                                                          
15       (c)  The state bond committee may contract for credit enhancement, underwriting,                                  
16 credit ratings, bond counsel, financial advisor, printing, advertising, and trustee services that                       
17 the committee considers necessary in financing the project described in this section.                                   
18    * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to                          
19 read:                                                                                                                   
20       NOTICE AND APPROVAL OF AGREEMENT. Section 5 of this Act constitutes the                                           
21 notice and approval required by AS 36.30.085.                                                                           
22    * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).