CSHB 275(FIN): "An Act relating to the Alaska Seafood Marketing Institute, a salmon marketing tax, and reduction of the salmon enhancement tax; and providing for an effective date."
00CS FOR HOUSE BILL NO. 275(FIN) 01 "An Act relating to the Alaska Seafood Marketing Institute, a salmon marketing 02 tax, and reduction of the salmon enhancement tax; and providing for an effective 03 date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 16.51.020(a) is amended to read: 06 (a) The governing body of the institute is a board of directors. The board 07 consists of 24  voting members appointed by the governor. In making 08 appointments to the board, the governor shall consider, but need not appoint, nominees 09 presented by persons engaged in fish processing, the financing of fish processing, or 10 commercial fishing. 11 * Sec. 2. AS 16.51.020(b) is amended to read: 12 (b) Twelve members of the board shall be seafood processors: eight of the 13 seafood processors must have an annual payroll in the state of more than $2,500,000 14 [$1,000,000 OR MORE]; four of the seafood processors must have an annual payroll
01 in the state of $50,000 - $2,500,000. Twelve [$1,000,000. FIVE] members of the 02 board must be engaged in commercial fishing. [ONE MEMBER OF THE BOARD 03 SHALL BE A LAY PERSON SELECTED BY THE GOVERNOR.] 04 * Sec. 3. AS 16.51.050 is amended to read: 05 Sec. 16.51.050. QUORUM. Fourteen [TEN] members of the board appointed 06 under AS 16.51.020 constitute a quorum for the transaction of business and the 07 exercise of the powers and duties of the board. 08 * Sec. 4. AS 16.51.090 is amended to read: 09 Sec. 16.51.090. POWERS OF BOARD. In carrying out the powers of the 10 institute, the board may 11 (1) adopt, alter, and use a corporate seal; 12 (2) prescribe, adopt, amend, and repeal bylaws; 13 (3) sue and be sued in the name of the institute; 14 (4) enter into any agreements necessary to the exercise of its powers 15 and functions; 16 (5) cooperate with a public or private board, organization, or agency 17 engaged in work or activities similar to the work or activities of the institute, including 18 entering into contracts for joint programs of consumer education, sales promotion, 19 quality control, advertising, and research in the production, processing, or distribution 20 of seafood; 21 (6) conduct, or contract for, scientific research to develop and discover 22 health, dietetic, or other uses of seafood harvested and processed in the state; 23 (7) receive contributions of money from persons; 24 (8) establish offices in the state and otherwise incur expenses incidental 25 to the performance of its duties; 26 (9) appear on behalf of the institute before boards, commissions, 27 departments, or other agencies of municipal, state, or federal government; 28 (10) acquire, hold, lease, sell, or otherwise dispose of property, but such 29 property is limited to that which is necessary to the administrative functioning of the 30 office of the institute; 31 (11) establish and maintain one or more bank accounts for the
01 transaction of the institute's business; 02 (12) prepare market research and product development plans for the 03 promotion of any species of seafood and their by-products that may be harvested in 04 the state and processed for sale; 05 (13) establish an executive board to assist the board in efficiently 06 exercising the board's powers and duties under this chapter; the executive board 07 shall consist of seven members selected from and by the board and shall include 08 at least three members who are engaged in commercial fishing; 09 (14) establish committees related to the marketing of salmon and 10 salmon products; the board shall, to the extent practicable, appoint equal 11 numbers of seafood processors and persons engaged in commercial fishing to the 12 committees. 13 * Sec. 5. AS 16.51.100 is amended to read: 14 Sec. 16.51.100. DUTIES OF BOARD. The board shall 15 (1) conduct programs of education, research, advertising, or sales 16 promotion designed to accomplish the purposes of this chapter; 17 (2) promote all species of seafood and their by-products that are 18 harvested in the state and processed for sale; 19 (3) develop market-oriented quality specifications for Alaska seafoods 20 to be used in developing a high quality image for Alaska seafood in domestic and 21 world markets, and adopt and distribute recommendations regarding the handling of 22 seafood from the moment of capture to final distribution; 23 (4) prepare market research and product development plans for the 24 promotion of all species of seafood and their by-products that are harvested in the state 25 and processed for sale; 26 (5) submit an annual report to the governor and the legislature 27 describing the activities of the institute; [AND] 28 (6) develop marketing programs based on the "inspection" and 29 "premium quality" seals designed under AS 03.05.026 [,] and use the seals in 30 advertising and promotion efforts of the institute; 31 (7) collect, organize, distribute, and make available to the public
01 information on prices paid and market conditions for raw salmon and salmon 02 products and provide this information on a regular and timely basis to all salmon 03 fishermen who hold permits under AS 16.43 and to all nonprofit salmon 04 enhancement organizations that hold a permit under AS 16.10.400; 05 (8) cooperate with commercial salmon fishermen, fishermen's 06 organizations, seafood processors, the Alaska Fisheries Development Foundation, 07 the Fisheries Industrial Technology Center, state and federal agencies, and other 08 relevant persons and entities to investigate market reception to new salmon 09 product forms and develop commodity standards and future markets for salmon 10 products. 11 * Sec. 6. AS 43.76 is amended by adding a new section to read: 12 Sec. 43.76.023. REDUCTION OF SALMON ENHANCEMENT TAX. (a) 13 If a salmon marketing tax levied under AS 43.76.110 - 43.76.130 is in effect, a salmon 14 enhancement tax levied under AS 43.76.010 may be reduced to a two percent salmon 15 enhancement tax by the commissioner of revenue upon majority vote at an election 16 held under AS 43.76.015 in the region in which the salmon enhancement tax is levied. 17 (b) A salmon enhancement tax shall be reduced by the commissioner of 18 revenue under (a) of this section following an election in a region if 19 (1) a petition is presented to the commissioner of commerce and 20 economic development requesting reduction of the salmon enhancement tax that is 21 signed by at least 25 percent of the number of persons who voted under AS 43.76.015 22 in the election approving the salmon enhancement tax in the region; 23 (2) the commissioner of commerce and economic development 24 determines that the reduction of the salmon enhancement tax to two percent will not 25 significantly jeopardize repayment of outstanding loans to the qualified regional 26 association under AS 16.10.510 that are secured by the tax; 27 (3) an election is held in accordance with AS 43.76.015(a), (c), and (d); 28 the ballot must ask the question whether the salmon enhancement tax for the region 29 shall be reduced to two percent; the ballot must be worded so that a "yes" vote is for 30 reduction of the salmon enhancement tax to two percent and a "no" vote is for 31 continuation of the three percent salmon enhancement tax;
01 (4) a majority of the eligible interim-use permit and entry permit 02 holders who vote in the election cast a ballot for the reduction of the salmon 03 enhancement tax; and 04 (5) the qualified regional association provides notice of the election in 05 accordance with AS 43.76.015 within two months after receiving notice from the 06 commissioner of commerce and economic development that a valid petition under (1) 07 of this subsection has been received. 08 (c) An election to reduce a salmon enhancement tax under this section shall 09 be held within 90 days after the commissioner of commerce and economic 10 development receives a valid petition under (b)(1) of this section, unless the 11 commissioner authorizes an extension of the election date in order to provide for an 12 orderly election. 13 (d) If approved, the reduction of the salmon enhancement tax takes effect on 14 the date set out in the ballot. 15 (e) If the salmon marketing tax levied under AS 43.76.110 - 43.76.130 is 16 repealed, then on the effective date of the repeal of the salmon marketing tax, the three 17 percent salmon enhancement tax is automatically reinstated in a region that has voted 18 to reduce the salmon enhancement tax under this section, so long as the salmon 19 enhancement tax in the region has not been terminated or amended under 20 AS 43.76.015 or 43.76.020 after the salmon enhancement tax is reduced under this 21 section. 22 * Sec. 7. AS 43.76 is amended by adding new sections to read: 23 ARTICLE 2. SALMON MARKETING TAX. 24 Sec. 43.76.110. SALMON MARKETING TAX. A person holding a limited 25 entry permit or interim-use permit under AS 16.43 shall pay a salmon marketing tax 26 at the rate of one percent of the value, as defined in AS 43.75.290, of salmon that the 27 person removes from the state or transfers to a buyer in the state. The buyer shall 28 collect the salmon marketing tax at the time the salmon is acquired by the buyer. 29 Sec. 43.76.120. COLLECTION OF TAX. (a) A buyer who acquires salmon 30 that is subject to a salmon marketing tax imposed by AS 43.76.110 shall collect the 31 salmon marketing tax at the time of purchase and shall remit the total salmon
01 marketing tax collected during each month to the Department of Revenue by the last 02 day of the next month. 03 (b) A buyer who collects the salmon marketing tax shall 04 (1) maintain records of the value of salmon purchased in the state; 05 (2) report to the Department of Revenue by March 1 of each year the 06 total value, as defined in AS 43.75.290, of the salmon that the buyer has acquired 07 during the preceding year. 08 (c) The owner of salmon removed from the state is liable for payment of 09 a salmon marketing tax imposed by AS 43.76.110 if, at the time the salmon is 10 removed from the state, the tax payable on the salmon has not been collected by a 11 buyer. If the owner of the salmon is liable for payment of the salmon marketing tax 12 under this subsection, the owner shall comply with the requirements under (a) and (b) 13 of this section to remit the tax to the Department of Revenue, to maintain records, and 14 to report to the Department of Revenue. 15 (d) The salmon marketing tax collected under this section shall be deposited 16 in the general fund. The legislature may appropriate revenue generated by the salmon 17 marketing tax to the Alaska Seafood Marketing Institute for the purpose of supporting 18 the institute's salmon marketing program under AS 16.51.100(7) and (8) and the 19 institute's domestic salmon marketing program. Except as otherwise provided in an 20 appropriation by the legislature, the amount of the allocation made to the institute's 21 salmon marketing program under AS 16.51.100(7) and (8) should not exceed 10 22 percent of the total amount of salmon marketing tax revenue appropriated for the 23 institute. 24 Sec. 43.76.130. DEFINITION. In AS 43.76.110 - 43.76.130, "buyer" means 25 a person who acquires possession of salmon from the person who caught the salmon 26 regardless of whether there is an actual sale of the salmon, but does not include a 27 person engaged solely in interstate transportation of goods for hire. 28 * Sec. 8. TRANSITION FOR MEMBERS OF THE BOARD OF DIRECTORS OF THE 29 ALASKA SEAFOOD MARKETING INSTITUTE. (a) Notwithstanding AS 16.51.020(b), 30 as amended by sec. 2 of this Act, and (c) of this section, a person who is serving as a member 31 of the board of directors of the Alaska Seafood Marketing Institute on the day before the
01 effective date of sec. 2 of this Act may continue to serve as a member of the board for the 02 remainder of the term to which the person was appointed. 03 (b) As soon as practicable after the effective date of sec. 1 of this Act, the governor 04 shall appoint six persons engaged in commercial fishing to the new memberships created on 05 the board of directors of the Alaska Seafood Marketing Institute by secs. 1 and 2 of this Act. 06 Notwithstanding AS 16.51.030, the governor shall appoint two persons appointed under this 07 subsection to one-year terms, two persons appointed under this subsection to two-year terms, 08 and two persons appointed under this subsection to three-year terms. 09 (c) Notwithstanding AS 16.51.020(b), as amended by sec. 2 of this Act, the governor 10 shall appoint a person engaged in commercial fishing to the membership on the board of 11 directors of the Alaska Seafood Marketing Institute that is vacated by the lay person member. 12 If a person is appointed under this subsection to fill a vacancy arising other than by the 13 expiration of a term of office, the person shall be appointed to complete the remainder of the 14 unexpired term. 15 * Sec. 9. AS 43.76.110, 43.76.120, and 43.76.130 are repealed June 30, 1998. 16 * Sec. 10. AS 16.51.100(7) and 16.51.100(8) are repealed June 30, 1999. 17 * Sec. 11. Section 7 of this Act takes effect July 1, 1993.