HB 397: "An Act relating to the seafood marketing assessment; and providing for an effective date."
00HOUSE BILL NO. 397 01 "An Act relating to the seafood marketing assessment; and providing for an 02 effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 16.51.120(a) is amended to read: 05 (a) A seafood marketing assessment shall be levied on the value of seafood 06 products produced [PURCHASED] in Alaska as provided in (b), (c), (d), or (e) of this 07 section if an election is held under [IN ACCORDANCE WITH] AS 16.51.140 at 08 which the assessment is approved by eligible processors who together produce 09 [PURCHASE] at least 51 percent of the value of seafood products produced 10 [PURCHASED] in Alaska in the calendar year. 11 * Sec. 2. AS 16.51.120(b) is amended to read: 12 (b) Each processor [WHO PURCHASES AT LEAST $50,000 OR MORE OF 13 SEAFOOD PRODUCTS IN ALASKA] shall pay a seafood marketing assessment of 14 .1 percent of the value of seafood products produced in Alaska [PAID] by the
01 processor. 02 * Sec. 3. AS 16.51.120(c) is amended to read: 03 (c) Each processor [WHO PURCHASES AT LEAST $50,000 OR MORE OF 04 SEAFOOD PRODUCTS IN ALASKA] shall pay a seafood marketing assessment of 05 .2 percent of the value of seafood products produced in Alaska [PAID] by the 06 processor. 07 * Sec. 4. AS 16.51.120(d) is amended to read: 08 (d) Each processor [WHO PURCHASES AT LEAST $50,000 OR MORE OF 09 SEAFOOD PRODUCTS IN ALASKA] shall pay a seafood marketing assessment of 10 .3 percent of the value of seafood products produced in Alaska [PAID] by the 11 processor. 12 * Sec. 5. AS 16.51.120(e) is amended to read: 13 (e) Each processor [WHO PURCHASES AT LEAST $50,000 OR MORE OF 14 SEAFOOD PRODUCTS IN ALASKA] shall pay a seafood marketing assessment of 15 .4 percent of the value of seafood products produced in Alaska [PAID] by the 16 processor. 17 * Sec. 6. AS 16.51.120 is amended by adding a new subsection to read: 18 (g) Notwithstanding (a) - (e) of this section and AS 16.51.150(c), a processor 19 is not subject to, or liable for payment of, an assessment under this section on the 20 value of the seafood products for which taxes are paid under AS 43.75 and AS 43.77 21 if the value of seafood products produced in Alaska by the processor is less than 22 $50,000 in a calendar year. This subsection does not exempt a processor from liability 23 for payment of taxes imposed under AS 43.75 or AS 43.77. 24 * Sec. 7. AS 16.51.130(a) is amended to read: 25 (a) A seafood marketing assessment levied under AS 16.51.120(b), (c), (d), or 26 (e) shall be terminated by the commissioner of revenue if 27 (1) an election is held under [IN ACCORDANCE WITH] 28 AS 16.51.140 in which the termination is approved by eligible processors who together 29 produce [PURCHASE] at least 51 percent of the total value of seafood products 30 produced [PURCHASED] in Alaska during the calendar year; or 31 (2) the board, at a regularly scheduled meeting, adopts a resolution
01 approved by two-thirds of the voting membership of the board requesting the 02 commissioner of revenue to terminate the assessment. 03 * Sec. 8. AS 16.51.130(b) is amended to read: 04 (b) An election under (a)(1) of this section shall be held if 05 (1) the proposed election for the termination of the assessment is 06 approved by a majority of the whole membership of the board at a regularly scheduled 07 meeting; or 08 (2) a petition is presented to the director of elections requesting 09 termination of the assessment by eligible processors who together produce 10 [PURCHASE] at least 25 percent of the total value of seafood products produced 11 [PURCHASED] in Alaska during the calendar year. 12 * Sec. 9. AS 16.51.150 is amended to read: 13 Sec. 16.51.150. DETERMINATION OF VALUE. Upon request from the 14 director of elections, the commissioner of revenue shall determine 15 (1) the total value of seafood products produced [PURCHASED] in 16 Alaska during any calendar year; 17 (2) whether the eligible processors approving the levy or termination 18 of a seafood marketing assessment together produced [PURCHASED] at least 51 19 percent of the total value of seafood products produced [PURCHASED] in Alaska 20 during the calendar year; or 21 (3) whether the eligible processors petitioning for an election under 22 AS 16.51.130(b)(2) together produced [PURCHASED] at least 25 percent of the total 23 value of seafood products produced [PURCHASED] in Alaska during the calendar 24 year. 25 * Sec. 10. AS 16.51.150 is amended by adding new subsections to read: 26 (b) The total value of seafood products produced in Alaska in a calendar year 27 is the sum of the 28 (1) total value of the fisheries resource on which the tax imposed under 29 AS 43.75.015 and 43.75.100 is levied in that calendar year; 30 (2) total value of the fisheries resource on which the tax imposed under 31 AS 43.77 is levied in that calendar year; and
01 (3) total value of the fisheries resource, as measured in terms of the 02 value of the fisheries resource under AS 43.75 if the fisheries resource was subject to 03 the tax imposed under AS 43.75, that the processor custom processed in that calendar 04 year. 05 (c) The value of seafood products produced in Alaska by a processor during 06 a calendar year is the sum of the 07 (1) total value of the fisheries resource on which the processor must 08 pay the tax imposed under AS 43.75.015 and 43.75.100 in that calendar year; 09 (2) total value of the fisheries resource on which the processor must 10 pay the tax imposed under AS 43.77.010 in that calendar year; and 11 (3) total value of the fisheries resource, as measured in terms of the 12 value of the fisheries resource under AS 43.75 if the fisheries resource was subject to 13 the tax imposed under AS 43.75, that the processor custom processed in that calendar 14 year. 15 * Sec. 11. AS 16.51.160(a) is amended to read: 16 (a) Each processor [PROCESSORS] shall remit to the Department of Revenue 17 by April 1 of each year the total amount of the seafood marketing assessment owed 18 on the value of [PAID FOR] seafood products produced in Alaska by the processor 19 in the previous calendar year. 20 * Sec. 12. AS 16.51.180(3) is repealed and reenacted to read: 21 (3) "processor" means a person who 22 (A) is liable for the tax imposed under AS 43.75.015; 23 (B) is liable for the tax imposed under AS 43.75.100; 24 (C) is liable for the landing tax imposed under AS 43.77; or 25 (D) engages in custom processing of seafood; 26 * Sec. 13. AS 16.51.180 is amended by adding new paragraphs to read: 27 (7) "custom processing" means the first processing of seafood by 28 freezing, cooking, salting, or other method, by a person who 29 (A) does not take, purchase, or land the seafood being 30 processed; and 31 (B) processes the seafood for, and under an agreement with,
01 another person who is not licensed under AS 43.75; 02 (8) "eligible processor" means a processor who would be liable for 03 payment of a seafood marketing assessment levied under AS 16.51.120. 04 * Sec. 14. AS 16.51.180(6) is repealed. 05 * Sec. 15. This Act is retroactive to January 1, 1996. 06 * Sec. 16. This Act takes effect immediately under AS 01.10.070(c).