SB 93: "An Act relating to the commercial fisheries development endowment; and providing for an effective date."

00SENATE BILL NO. 93 01 "An Act relating to the 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 Alaska State Legislature finds that the seafood industry in 05 the state requires a stable source of funding for continuing research into improved seafood 06 harvesting techniques, new product forms, and new processing techniques for Alaska seafood 07 products in order to remain competitive in national and international markets. The Alaska 08 Fisheries Development Foundation has compiled an impressive record of success in finding 09 and developing innovative and profitable methods for the harvest and processing of Alaska 10 fishery resources. The foundation has an established structure and system to ensure that 11 commercial fisheries development funds are directed toward projects with the greatest potential 12 for success and the broadest application for the Alaska seafood industry. As the amount of 13 federal support for the foundation declines, the Alaska State Legislature recognizes the need 14 for the state to provide financial support for the foundation's vital mission in the form of an

01 endowment. 02 * Sec. 2. AS 37.14 is amended by adding a new section to read: 03 ARTICLE 4A. COMMERCIAL FISHERIES DEVELOPMENT ENDOWMENT. 04  Sec. 37.14.350. COMMERCIAL FISHERIES DEVELOPMENT 05 ENDOWMENT ESTABLISHED. (a) The commercial fisheries development 06 endowment is established in the Department of Revenue as a separate endowment trust 07 fund of the state to benefit the Alaska Fisheries Development Foundation, a nonprofit 08 corporation established to promote the development of commercial fisheries in the 09 state. The purpose of the endowment is to support the foundation's goal to promote 10 long-term economic benefits for the state through research and development of 11 commercial seafood opportunities, concentrating on maintaining the competitiveness 12 of the Alaska seafood industry in domestic and international markets through the 13 development of new fishery resources, improved efficiency in harvesting and 14 processing operations, and development of new consumer products from Alaska fishery 15 resources. The principal of the endowment consists of legislative appropriations to the 16 endowment. 17  (b) The commissioner of revenue shall determine the net income of the 18 endowment in accordance with generally accepted accounting principles and in a 19 manner that preserves the distinction between principal and income. 20  Sec. 37.14.360. ENDOWMENT UTILIZATION. (a) The principal of the 21 endowment and any capital gains or losses realized on the principal shall be retained 22 perpetually in the endowment for investment as specified in AS 37.14.370. 23  (b) The net income of the endowment may be appropriated for payment to 24  (1) the foundation for the support of commercial fisheries development 25 research projects, including research on fish harvesting techniques, seafood processing 26 techniques, and development of new seafood products in the state; 27  (2) the department for the reasonable costs of administering the 28 endowment. 29  (c) Realized net income that has not been appropriated, or that has been 30 appropriated but not paid to the foundation or expended by the department, shall be 31 invested until appropriated and paid or expended.

01  Sec. 37.14.370. POWERS AND DUTIES OF THE COMMISSIONER OF 02 REVENUE. The commissioner of revenue is the treasurer of the endowment and has 03 the power and duty to 04  (1) act as official custodian of the cash and investments belonging to 05 the endowment by securing adequate and safe custodial facilities; 06  (2) receive all items of cash and investments belonging to the 07 endowment; 08  (3) collect the principal and income from investments owned or 09 acquired by the endowment and deposit the amounts in separate principal and income 10 accounts for the endowment; 11  (4) invest and reinvest the assets of the endowment as provided in this 12 section and as provided for the investment of funds under AS 37.14.170; 13  (5) exercise the powers of an owner with respect to the assets of the 14 endowment; 15  (6) maintain accounting records of the endowment in accordance with 16 investment accounting principles and with distinction between the principal and income 17 accounts of the endowment; 18  (7) engage an independent firm of certified public accountants to 19 annually audit the financial condition of the endowment's investments and investment 20 transactions; 21  (8) enter into and enforce contracts or agreements considered necessary 22 for the investment purposes of the endowment; 23  (9) provide reports to the foundation and the legislature on the 24 condition and investment performance of the fund; 25  (10) do all acts, whether or not expressly authorized, necessary or 26 proper in administering the assets of the endowment; 27  (11) adopt regulations necessary to implement AS 37.14.350 - 28 37.14.390. 29  Sec. 37.14.380. DUTIES OF THE FOUNDATION. (a) The foundation shall 30 provide copies of annual reports and financial audits regarding its utilization of the 31 income of the endowment to the commissioner of revenue and the legislature by

01 January 15 of each year. 02  (b) The financial records of the foundation regarding the utilization of the 03 income of the endowment may be audited by the legislative auditor or by a certified 04 public accountant approved by the legislative auditor if the audit is requested by the 05 Legislative Budget and Audit Committee. 06  Sec. 37.14.390. DEFINITIONS. In AS 37.14.350 - 37.14.390, 07  (1) "department" means the Department of Revenue; 08  (2) "endowment" means the commercial fisheries development 09 endowment established by AS 37.14.350(a); 10  (3) "foundation" means the Alaska Fisheries Development Foundation. 11 * Sec. 3. This Act takes effect immediately under AS 01.10.070(c).