HB 303: "An Act relating to the Alaska commercial fisheries development endowment; and providing for an effective date."
00HOUSE BILL NO. 303 01 "An Act relating to the Alaska commercial fisheries development endowment; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. FINDINGS. The legislature finds that 05 (1) the commercial fishing industry is the state's largest employer and second 06 largest source of earnings from the export of state resources; 07 (2) the State of Alaska has invested nearly $1,000,000,000 in loan guarantees 08 to the commercial fishing industry and in fisheries production and enhancement facilities, as 09 well as millions of other dollars in seafood marketing and fisheries management and 10 enforcement efforts; 11 (3) a healthy, vibrant, and competitive commercial fishing industry is important 12 to state revenues, the commercial fishing communities of the state, and the tens of thousands 13 of residents employed in the industry; 14 (4) many of the state's fisheries are in financial difficulty due to such factors
01 as changing market conditions and new market competitors, the need for new products and 02 processing methods, historic harvesting inefficiencies, high debt load and over capitalization, 03 and the lack of a cohesive, statewide fisheries development policy; 04 (5) there has been a continuing decline in funding for seafood research and 05 technology transfer under the federal Saltonstall-Kennedy program and the federal Sea Grant 06 program over the past several years; 07 (6) the commercial fishing industry in the state requires a stable source of 08 funding to support comprehensive seafood development programs to maintain the health of 09 the industry and to enable the industry to respond to rapidly growing competition in markets 10 once dominated by the state's industry; 11 (7) opportunities and problems facing the industry most frequently involve a 12 web of marketing, technological, and processing variables that must be addressed 13 simultaneously to enable the industry to compete effectively in changing world markets; 14 (8) the University of Alaska Fishery Industrial Technology Center, the Alaska 15 Seafood Marketing Institute, and the Alaska Fisheries Development Foundation, as well as the 16 processing and fishing sectors of the industry, are all essential members of a united effort 17 towards solving the problems of the industry; and 18 (9) a commercial fisheries development endowment is an essential investment 19 on the state's part in order to restore the commercial fishing industry to its former position 20 as the preferred supplier of quality seafood products to the world. 21 * Sec. 2. AS 37.14 is amended by adding new sections to read: 22 ARTICLE 4A. ALASKA COMMERCIAL FISHERIES 23 DEVELOPMENT ENDOWMENT. 24 Sec. 37.14.350. ALASKA COMMERCIAL FISHERIES DEVELOPMENT 25 ENDOWMENT ESTABLISHED. (a) The Alaska commercial fisheries development 26 endowment is established in the Department of Revenue as a separate endowment trust 27 fund of the state. The principal of the endowment consists of legislative appropriations 28 to the endowment. 29 (b) The purpose of the endowment is to 30 (1) foster the development of the commercial fishing industry; 31 (2) assure continued support for cooperative development programs for
01 the commercial fishing industry; 02 (3) underwrite commercial fisheries and seafood development 03 programs important to the commercial fishing industry; 04 (4) promote an effective response by the state's commercial fishing 05 industry to increased competition in domestic and world markets for seafood products. 06 Sec. 37.14.360. ADMINISTRATION OF ENDOWMENT (a) There is created 07 in the Department of Commerce and Economic Development the Alaska Commercial 08 Fisheries Development Endowment Board. 09 (b) The board consists of the executive director of the Alaska Seafood 10 Marketing Institute, the director of the University of Alaska Fishery Industrial 11 Technology Center, the executive director of the Alaska Fisheries Development 12 Foundation, and seven persons appointed by the governor. The appointed members 13 of the board serve at the pleasure of the governor for staggered three-year terms. 14 Members of the board do not receive a salary, but are entitled to per diem and 15 expenses authorized for boards and commissions under AS 39.20.180. The appointed 16 members of the board include: 17 (1) one person from a list of persons engaged in the commercial fishing 18 industry submitted by the board of directors of the Alaska Seafood Marketing Institute; 19 (2) one person from a list of persons engaged in the commercial fishing 20 industry submitted by the board of advisors of the University of Alaska Fishery 21 Industrial Technology Center; 22 (3) one person from a list of persons engaged in the commercial fishing 23 industry submitted by the board of directors of the Alaska Fisheries Development 24 Foundation; 25 (4) one person from a list of persons engaged in the commercial fishing 26 industry submitted by the board of directors of the Pacific Seafood Processors 27 Association; 28 (5) one person from a list of persons engaged in the commercial fishing 29 industry submitted by the board of directors of the United Fishermen of Alaska; 30 (6) one person from a list of persons engaged in the commercial fishing 31 industry submitted by the commissioner of commerce and economic development;
01 (7) one person from a list of persons engaged in the marketing industry 02 submitted by the other members of the Alaska Commercial Fisheries Development 03 Endowment Board. 04 (c) The board shall 05 (1) administer the Alaska commercial fisheries development endowment 06 program; 07 (2) make grants for the support of industry-designed and industry-directed commercial fishing industry 08 development programs and projects that are 09 generally vertically integrated, market driven, sustained, and flexibly planned; 10 (3) determine development needs of the commercial fisheries and 11 seafood industries and develop programs and projects to address these needs; 12 (4) adopt regulations to prescribe the manner for awarding grants under 13 (2) of this subsection and, as necessary, to implement this section; 14 (5) meet at least twice each year; the board may hold special meetings 15 as it considers necessary and may hold meetings by teleconference; 16 (6) keep a record of all board meetings; 17 (7) submit a report on activities of the board and on expenditures and 18 grants by the board to the governor and the legislature by February 1 of each year. 19 Sec. 37.14.370. UTILIZATION OF ENDOWMENT. (a) The principal of the 20 endowment and any capital gains or losses realized on the principal shall be retained 21 perpetually in the fund for investment as specified in AS 37.14.380. 22 (b) The net income account of the endowment may be appropriated for the 23 following purposes: 24 (1) grants by the board for commercial fishing industry development 25 programs and projects under AS 37.14.360; 26 (2) the administrative expenses of the board, including reviews of 27 commercial fishing industries development programs and projects and audits of 28 programs and projects funded by the board; 29 (3) reimbursement to the department for the reasonable costs of 30 establishing and managing the fund. 31 (c) Net income of the endowment that, at the end of the fiscal year, has not
01 been appropriated or that has been appropriated but not paid to the board or the 02 department shall be invested until appropriated and paid. Income earned under this 03 subsection may be appropriated for the purposes of the endowment. 04 Sec. 37.14.380. POWERS AND DUTIES OF THE COMMISSIONER OF 05 REVENUE. The commissioner of revenue is the treasurer of the endowment and has 06 the power and duty to 07 (1) act as official custodian of the cash and investments belonging to 08 the endowment by securing adequate and safe custodial facilities; 09 (2) receive all items of cash and investments belonging to the 10 endowment; 11 (3) collect the principal and income from investments owned or 12 acquired by the endowment and deposit the amounts in separate principal and income 13 accounts for the endowment; 14 (4) invest and reinvest the assets of the endowment as provided in this 15 section and as provided for the investment of funds under AS 37.14.170; 16 (5) exercise the powers of an owner with respect to the assets of the 17 endowment; 18 (6) maintain accounting records of the endowment in accordance with 19 investment accounting principles and with distinction between the principal and income 20 accounts of the endowment; 21 (7) engage an independent firm of certified public accountants to 22 annually audit the financial condition of the endowment's investments and investment 23 transactions; 24 (8) enter into and enforce contracts or agreements considered necessary 25 for the investment purposes of the endowment; 26 (9) report to the board and to the legislature the condition and 27 investment performance of the endowment; 28 (10) adopt regulations necessary to implement the commissioner's 29 powers and duties under AS 37.14.350 - 37.14.390; 30 (11) do all acts, whether or not expressly authorized, necessary or 31 proper in administering the assets of the endowment.
01 Sec. 37.14.390. DEFINITIONS. In AS 37.14.350 - 37.14.390, 02 (1) "board" means the Alaska Commercial Fisheries Development 03 Endowment Board; 04 (2) "department" means the Department of Revenue; 05 (3) "endowment" means the Alaska commercial fisheries development 06 endowment. 07 * Sec. 3. AS 37.14.350, 37.14.360, 37.14.370, 37.14.380, and 37.14.390 are repealed 08 December 31, 2003. 09 * Sec. 4. INITIAL APPOINTMENTS TO THE ALASKA COMMERCIAL FISHERIES 10 DEVELOPMENT ENDOWMENT BOARD. The persons initially appointed to fill the 11 positions of appointed members of the Alaska Commercial Fisheries Development Endowment 12 Board shall be appointed to initial terms as provided by AS 39.05.055(5). 13 * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).