2008-03-11                     House Journal                      Page 2231
HB 418                                                                                                                        
HOUSE BILL NO. 418 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act providing notice of and authorization for the Department                                                           
     of Administration to enter into a lease-purchase agreement for the                                                         

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     construction, the purchase of equipment, and the financing of a                                                            
     fish hatchery in Anchorage to be operated by the Department of                                                             
     Fish and Game; relating to the issuance of certificates of                                                                 
     participation for the fish hatchery; authorizing payments for the                                                          
     lease-purchase agreement from sport fishing facility license                                                               
     surcharge fees; relating to capital lease financing of sport fishing                                                       
     facilities; and providing for an effective date."                                                                          
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Fiscal, Dept. of Fish & Game                                                                                                
2.  Fiscal, Dept. of Revenue                                                                                                    
                                                                                                                                
The Governor's transmittal letter dated March 6, 2008, follows:                                                                 
                                                                                                                                
"Dear Speaker Harris:                                                                                                           
                                                                                                                                
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                                                      
transmitting a bill providing notice of and authorization for the                                                               
Department of Administration to enter into a lease-purchase agreement                                                           
for the construction, the purchase of equipment, and the financing of a                                                         
fish hatchery in Anchorage to be operated by the Department of Fish                                                             
and Game; relating to the issuance of certificates of participation for                                                         
the fish hatchery; authorizing payments for the lease-purchase                                                                  
agreement from sport fishing facility license surcharge fees; and                                                               
relating to capital lease financing of sport fishing facilities.                                                                
                                                                                                                                
The financing mechanism in this bill, along with financing from                                                                 
Chapter 94 SLA 2005, would provide sufficient funds to complete two                                                             
essential state fish hatcheries, one in Anchorage and one in Fairbanks,                                                         
as originally envisioned by the Legislature.  The new hatcheries would                                                          
play a vital role in ensuring the sustainability and harvestable surplus                                                        
of fish in the state.  They would aid Alaska in providing an important                                                          
source of food for many citizens of the state and further the economic                                                          
engine of a major industry in this state.                                                                                       
                                                                                                                                
The bill sets out the Legislature's findings, intent, and purpose                                                               
regarding the authorization of the construction and financing of the                                                            

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fish hatchery in Anchorage, the total costs of which are anticipated to                                                         
be $100 million.  At least $21 million of that cost would be drawn                                                              
from the proceeds of sport fishing facility revenue bonds already                                                               
issued under the authority of AS 37.15.765.  Up to $70 million of that                                                          
cost would be financed by the issuance of certificates of participation                                                         
authorized by the bill.  The remaining $9 million of the cost would be                                                          
financed by investment earnings on the proceeds of sport fishing                                                                
facility revenue bonds.                                                                                                         
                                                                                                                                
The bill constitutes the legislative notice and approval required by                                                            
AS 36.30.085 for the Department of Administration to enter into a                                                               
lease-purchase agreement for the Anchorage fish hatchery.  The lease-                                                           
purchase agreement would be financed by the issuance of certificates                                                            
of participation, to be issued by the state bond committee, in the                                                              
amount of up to $70 million.  The certificates of participation would                                                           
be secured by general fund monies and the sport fishing facility                                                                
surcharge, subject to appropriation.  The fish hatchery in Anchorage                                                            
would be operated by the Department of Fish and Game.                                                                           
                                                                                                                                
The bill makes conforming changes to various statutes in Title 16 to                                                            
reflect the use of capital lease financing to construct the Anchorage                                                           
fish hatchery.                                                                                                                  
                                                                                                                                
Finally, the bill provides for an immediate effective date.                                                                     
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
                                Sincerely,                                                                                     
                                /s/                                                                                             
                               Sarah Palin                                                                                     
                                Governor"