HB 473: "An Act relating to limited joint venture fish processing businesses and to liability for the payment of the fisheries business tax; and providing for an effective date."
00 HOUSE BILL NO. 473 01 "An Act relating to limited joint venture fish processing businesses and to liability for 02 the payment of the fisheries business tax; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 FINDINGS. The Alaska State Legislature finds that 07 (1) the number of salmon processors operating in Alaska is declining; 08 (2) ex-vessel salmon prices are declining to historically low levels and fishing 09 families are experiencing severe economic hardship; 10 (3) there is currently no license for intermediate-sized fish processing 11 operations between individual direct marketing operations and large processing plants and 12 catcher-processor vessels; 13 (4) the commercial salmon fishing fleet in Alaska is overcapitalized and 14 requires cost-effective means of safely processing and marketing its catch.
01 * Sec. 2. AS 16.05.050(a) is amended to read: 02 (a) The commissioner has, but not by way of limitation, the following powers 03 and duties: 04 (1) to assist the United States Fish and Wildlife Service in the 05 enforcement of federal laws and regulations pertaining to fish and game; 06 (2) through the appropriate state agency and under the provisions of 07 AS 36.30 (State Procurement Code), to acquire by gift, purchase, or lease, or other 08 lawful means, land, buildings, water, rights-of-way, or other necessary or proper real 09 or personal property when the acquisition is in the interest of furthering an objective or 10 purpose of the department and the state; 11 (3) under the provisions of AS 36.30, to design and construct 12 hatcheries, pipelines, rearing ponds, fishways, and other projects beneficial for the fish 13 and game resources of the state; 14 (4) to accept money from any person under conditions requiring the 15 use of the money for specific purposes in the furtherance of the protection, 16 rehabilitation, propagation, preservation, or investigation of the fish and game 17 resources of the state or in settlement of claims for damages to fish or game resources; 18 (5) to collect, classify, and disseminate statistics, data and information 19 that, in the commissioner's discretion, will tend to promote the purposes of this title 20 except AS 16.51 and AS 16.52; 21 (6) to take, capture, propagate, transport, buy, sell, or exchange fish or 22 game or eggs for propagating, scientific, public safety, or stocking purposes; 23 (7) under the provisions of AS 36.30, to provide public facilities where 24 necessary or proper to facilitate the taking of fish or game, and to enter into 25 cooperative agreements with any person to effect them; 26 (8) to exercise administrative, budgeting, and fiscal powers; 27 (9) under the provisions of AS 36.30, to construct, operate, supervise, 28 and maintain vessels used by the department; 29 (10) to authorize the holder of an interim-use permit under AS 16.43 to 30 engage on an experimental basis in commercial taking of a fishery resource with 31 vessel, gear, and techniques not presently qualifying for licensing under this chapter in
01 conformity with standards established by the Alaska Commercial Fisheries Entry 02 Commission; 03 (11) not later than January 31 of each year, to provide to the 04 commissioner of revenue the names of those fish and shellfish species that the 05 commissioner of fish and game designates as developing commercial fish species for 06 that calendar year; a fish or shellfish species is a developing commercial fish species 07 if, within a specified geographical region, 08 (A) the optimum yield from the harvest of the species has not 09 been reached; 10 (B) a substantial portion of the allowable harvest of the species 11 has been allocated to fishing vessels of a foreign nation; or 12 (C) a commercial harvest of the fish species has recently 13 developed; 14 (12) to initiate or conduct research necessary or advisable to carry out 15 the purposes of this title except AS 16.51 and AS 16.52; 16 (13) to enter into cooperative agreements with agencies of the federal 17 government, educational institutions, or other agencies or organizations, when in the 18 public interest, to carry out the purposes of this title except AS 16.51 and AS 16.52; 19 (14) to implement an on-board observer program authorized by the 20 Board of Fisheries under AS 16.05.251(a)(13); implementation 21 (A) must be as unintrusive to vessel operations as practicable; 22 and 23 (B) must make scheduling and scope of observers' activities as 24 predictable as practicable; 25 (15) to sell fish caught during commercial fisheries test fishing 26 operations; 27 (16) to establish and charge fees equal to the cost of services provided 28 by the department, including provision of public shooting ranges, broodstock and eggs 29 for private nonprofit hatcheries, department publications, and other direct services, and 30 reasonable fees for the use of state facilities managed by the department; fees 31 established under this paragraph for tours of hatchery facilities, commercial use of
01 sport fishing access sites, and for operation of state hatchery facilities by private 02 aquaculture associations are not subject to the cost limit under AS 37.10.050(a); 03 (17) to permit and regulate aquatic farming in the state in a manner 04 that ensures the protection of the state's fish and game resources and improves the 05 economy, health, and well-being of the citizens of the state; 06 (18) to operate state housing and facilities for employees, contractors, 07 and others in support of the department's responsibilities and to charge rent that is 08 consistent with applicable collective bargaining agreements, or, if no collective 09 bargaining agreement is applicable, competitive with market conditions; rent received 10 from tenants shall be deposited in the general fund; 11 (19) to petition the Alaska Commercial Fisheries Entry Commission, 12 unless the Board of Fisheries disapproves the petition under AS 16.05.251(g), to 13 establish a moratorium on new entrants into commercial fisheries 14 (A) that have experienced recent increases in fishing effort that 15 are beyond a low, sporadic level of effort; 16 (B) that have achieved a level of harvest that may be 17 approaching or exceeding the maximum sustainable level for the fishery; and 18 (C) for which there is insufficient biological and resource 19 management information necessary to promote the conservation and sustained 20 yield management of the fishery; 21 (20) not later than December 1 of each year, to provide to the 22 commissioner of revenue the names of those fish and shellfish species that the 23 commissioner of fish and game designates as species that may be caught and 24 processed by limited joint venture fish processing businesses during the next 25 calendar year. 26 * Sec. 3. AS 43.75.015(c) is amended to read: 27 (c) A person engaging or attempting to engage in a fisheries business who first 28 actually and physically processes the fishery resource, or a person who purchases a 29 fishery resource that is processed [FROZEN] from a person excluded by 30 AS 43.75.017 from liability for the tax, is liable for and shall pay to the department the 31 entire tax imposed by this section. In determining this tax liability, the person may
01 deduct from the value of the fishery resources processed the value of fishery resources 02 that are canned or processed for other fisheries businesses. A person taking the 03 deduction authorized by this subsection shall report all information relating to the 04 deduction in accordance with regulations adopted by the department. 05 * Sec. 4. AS 43.75.015 is amended by adding a new subsection to read: 06 (d) Instead of the taxes levied under (a) or (b) of this section, a person who 07 processes a fishery resource under a limited joint venture fisheries business license is 08 liable for and shall pay a tax equal to 09 (1) three percent of the value of the developing commercial fish 10 species processed during the year; and 11 (2) five percent of the value of a commercial fish species not subject to 12 (1) of this subsection. 13 * Sec. 5. AS 43.75.017 is amended to read: 14 Sec. 43.75.017. Exclusion from fisheries business tax. A person is not liable 15 for the fisheries business tax under AS 43.75.015 when the fishery resource is 16 processed [FROZEN] aboard 17 (1) a fishing vessel if 18 (A) [(1)] the vessel is operated as a commercial fishing vessel 19 under a valid commercial fishing license; 20 (B) [(2)] the fishery resource is not processed beyond heading, 21 gutting or cleaning, freezing, and glazing; 22 (C) [(3)] the fishery resource was caught by the vessel; and 23 (D) [(4)] the fishery resource is sold [BY THE PERSON 24 CLAIMING AN EXCLUSION FROM THE TAX] to a fisheries business 25 licensed under AS 43.75.020(a); or 26 (2) a vessel owned or leased by a member of a limited joint venture 27 fish processing business licensed under AS 43.75.020(c) if the fishery resource 28 was 29 (A) caught in the fishery in which the business operates; 30 and 31 (B) sold to a fisheries business licensed under
01 AS 43.75.020(a) [THIS CHAPTER]. 02 * Sec. 6. AS 43.75.020 is amended by adding a new subsection to read: 03 (c) Instead of a license issued under (a) of this section, the department may 04 issue an annual limited joint venture fisheries business license to a limited joint 05 venture fish processing business. A limited joint venture fisheries business license 06 authorizes a member of a limited joint venture fish processing business to process 07 fishery resources on a commercial fishing vessel, not exceeding 65 feet in overall 08 length, owned or leased by the member of the business if the fishery resources were 09 caught by that vessel or another vessel owned or leased by another member of the 10 business. Each member of a limited joint venture fish processing business who 11 engages in fishing must hold a commercial fishing permit issued under AS 16.43 for 12 the fishery in which the business operates. A member of a limited joint venture fish 13 processing business who engages only in processing of fish is not required to hold a 14 commercial fishing permit issued under AS 16.43. Each person who is a member of 15 the limited joint venture fish processing business, each commercial fishing vessel 16 operated by the limited joint venture fish processing business, and the fishery in which 17 the business operates shall be listed in the application for the license and on the license 18 issued by the department. Only a commercial fishing vessel listed on the license may 19 be operated by the business. The department may not authorize the substitution of 20 another vessel for a vessel listed on the license. The person who operates a vessel on 21 which a fishery resource is processed is responsible for compliance with applicable 22 Department of Environmental Conservation regulations governing seafood processing 23 and food handling in regard to that fishery resource and with applicable Department of 24 Fish and Game regulations relating to reporting by seafood processors and completing 25 fish tickets in regard to fishery resources that are sold to a buyer other than a fisheries 26 business licensed under AS 43.75.020(a). Each person who is a member of a limited 27 joint venture fish processing business is solely liable for the payment of taxes and 28 assessments due under this chapter, AS 16.51, and AS 43.76 on the fishery resources 29 that the person catches and either sells or exports from the state. A person may be a 30 member of only one limited joint venture fish processing business for each fishery in 31 which the person participates. A limited joint venture fish processing business may
01 not operate more than five commercial fishing vessels to either catch, process, or catch 02 and process fishery resources. In this subsection, 03 (1) "fishery" has the meaning given in AS 16.43.990; 04 (2) "fishery resource" means a fish or shellfish species designated by 05 the commissioner of fish and game as a species that may be caught and processed by a 06 limited joint venture fish processing business. 07 * Sec. 7. AS 43.75.290(7) is amended to read: 08 (7) "value" means 09 (A) the market value of the fishery resource as determined 10 by the prevailing price paid to fishermen for the fishery resource of the 11 same kind and quality by fisheries businesses in the same region or 12 market area where the fishery resource was taken if the fishing resource 13 (i) was taken on a boat owned or leased by a person 14 who holds a limited joint venture fish processing business license 15 under AS 43.75.020(c); and 16 (ii) was sold to a buyer other than a fisheries 17 business licensed under AS 43.75.020(a); 18 (B) for fishery resources other than those described in (A) 19 or (C) of this paragraph, the market value of the fishery [FISHERIES] 20 resource if the taking of the fishery [FISHERIES] resource is done in 21 company-owned or company-subsidized boats operated by employees of the 22 company or in boats that are operated under lease to or from the company or 23 other arrangement with the company and if the fishery [FISHERIES] resource 24 is delivered to the company; in this subparagraph, "company" means a 25 fisheries business, a subsidiary of a fisheries business, or a subsidiary of a 26 parent company of a fisheries business; "company" does not include a 27 limited joint venture fish processing business licensed under 28 AS 43.75.020(c); or 29 (C) [(B)] for fishery [FISHERIES] resources other than those 30 described in (A) or (B) of this paragraph, the actual price paid for the fishery 31 [FISHERIES] resource by the fisheries business to the fisherman, including
01 indirect consideration and bonus amounts paid for fuel, supplies, gear, ice, 02 handling, tender fees, or delivery, whether paid at the time of purchase of the 03 fishery [FISHERIES] resource or tendered as a deferred or delayed payment; 04 in this subparagraph, "delivery" means 05 (i) transportation of the fishery [FISHERIES] resource 06 from the boat or vessel on which the product was taken to a tender; or 07 (ii) if delivery was not to a tender, transportation of the 08 fishery [FISHERIES] resource from the boat or vessel on which the 09 product was taken to a shore-based facility in which delivery of the 10 fishery [FISHERIES] resource is normally accepted. 11 * Sec. 8. AS 43.76.025(a) is amended to read: 12 (a) Except as otherwise provided under (d) of this section, a [A] buyer who 13 acquires fishery [FISHERIES] resources that are subject to a salmon enhancement tax 14 imposed by AS 43.76.010, 43.76.011, or 43.76.012 shall collect the salmon 15 enhancement tax at the time of purchase, and shall remit the total salmon enhancement 16 tax collected during each month to the Department of Revenue [DEPARTMENT] by 17 the last day of the next month. 18 * Sec. 9. AS 43.76.025 is amended by adding a new subsection to read: 19 (d) A person who is a member of a limited joint venture fish processing 20 business licensed under AS 43.75.020(c) is liable for the payment of a salmon 21 enhancement tax imposed by AS 43.76.010, 43.76.011, or 43.76.012 and shall remit 22 the amount of the tax due to the Department of Revenue if ownership of the salmon 23 caught by the person and processed by the business is transferred to a buyer who is not 24 a fisheries business licensed under AS 43.75.020(a). If a person is liable for payment 25 and remittance of the salmon enhancement tax under this subsection, the person shall 26 maintain records reflecting the region designated under AS 16.10.375 in which the 27 salmon was caught and shall report the person's liability for payment and remittance of 28 the tax before April 1 after close of the calendar year. The person shall remit the total 29 salmon enhancement tax due under this subsection during the calendar year to the 30 department before April 1 after close of the calendar year. 31 * Sec. 10. AS 43.76.120(a) is amended to read:
01 (a) Except as otherwise provided under (e) of this section, a [A] buyer who 02 acquires salmon that is subject to a salmon marketing tax imposed by AS 43.76.110 03 shall collect the salmon marketing tax at the time of purchase and shall remit the total 04 salmon marketing tax collected during each month to the Department of Revenue by 05 the last day of the next month. 06 * Sec. 11. AS 43.76.120 is amended by adding a new subsection to read: 07 (e) A person who is a member of a limited joint venture fish processing 08 business licensed under AS 43.75.020(c) is liable for the payment of a salmon 09 marketing tax imposed by AS 43.76.110 and shall remit the amount of the tax due to 10 the Department of Revenue if ownership of the salmon caught by the person and 11 processed by the business is transferred to a buyer who is not a fisheries business 12 licensed under AS 43.75.020(a). If a person is liable for payment and remittance of 13 the salmon marketing tax under this subsection, the person shall maintain records of 14 the value of salmon caught by the person and processed by the business on which the 15 tax is due under this subsection and shall make reports to the department before 16 April 1 after close of the calendar year. The person shall remit the total salmon 17 marketing tax due under this subsection during the calendar year to the department 18 before April 1 after close of the calendar year. 19 * Sec. 12. AS 43.76.190(a) is amended to read: 20 (a) Except as otherwise provided under (e) of this section, a [A] buyer who 21 acquires a fishery resource that is subject to a dive fishery management assessment 22 levied under AS 43.76.150(b), (c), (d), or (e) shall collect the dive fishery management 23 assessment at the time of purchase and shall remit the total dive fishery management 24 assessment collected during each calendar quarter to the Department of Revenue by 25 the last day of the month following the end of the calendar quarter. In this subsection, 26 "calendar quarter" means each of the three-month periods ending March 31, June 30, 27 September 30, and December 31. 28 * Sec. 13. AS 43.76.190 is amended by adding a new subsection to read: 29 (e) A person who is a member of a limited joint venture fish processing 30 business licensed under AS 43.75.020(c) is liable for payment of the dive fishery 31 management assessment levied under AS 43.76.150(b), (c), (d), or (e) and shall remit
01 the amount of the assessment due to the Department of Revenue if ownership of the 02 fishery resource caught by the person and processed by the business is transferred to a 03 buyer who is not a fisheries business licensed under AS 43.75.020(a). If a person is 04 liable for payment and remittance of the dive fishery management assessment under 05 this subsection, the person shall maintain records of the value of each species of 06 fishery resources harvested by the person and processed by the business on which the 07 assessment is due under this subsection. The person shall remit the total dive fishery 08 management assessment due under this subsection during the calendar year to the 09 department before April 1 after close of the calendar year. 10 * Sec. 14. AS 43.76.260(a) is amended to read: 11 (a) Except as otherwise provided under (f) of this section, a [A] buyer who 12 acquires salmon that is subject to a salmon fishery assessment levied under 13 AS 43.76.220 shall collect the salmon fishery assessment at the time of purchase and 14 shall remit the total salmon fishery assessment collected during each month to the 15 Department of Revenue [DEPARTMENT] by the last day of the next month. 16 * Sec. 15. AS 43.76.260 is amended by adding a new subsection to read: 17 (f) A person who is a member of a limited joint venture fish processing 18 business licensed under AS 43.75.020(c) is liable for the payment of a salmon fishery 19 assessment levied under AS 43.76.220 and shall remit the amount of the assessment 20 due to the Department of Revenue if ownership of the salmon caught by the person 21 and processed by the business is transferred to a buyer who is not a fisheries business 22 licensed under AS 43.75.020(a). If a person is liable for payment and remittance of 23 the salmon fishery assessment under this subsection, the person shall maintain records 24 of the value of salmon caught by the person and processed by the business that is 25 subject to the assessment under this subsection. The person shall remit the total 26 salmon fishery assessment due under this subsection during the calendar year to the 27 department before April 1 after close of the calendar year. 28 * Sec. 16. AS 43.76.310(a) is amended to read: 29 (a) Except as otherwise provided under (f) of this section, a [A] buyer who 30 acquires fish that are subject to a permit buy-back assessment imposed by 31 AS 43.76.300 shall collect the permit buy-back assessment at the time of purchase and
01 shall remit the total permit buy-back assessment collected during each month to the 02 Department of Revenue [DEPARTMENT] by the last day of the next month. 03 * Sec. 17. AS 43.76.310 is amended by adding a new subsection to read: 04 (f) A person who is a member of a limited joint venture fish processing 05 business licensed under AS 43.75.020(c) is liable for the payment of a permit buy- 06 back assessment imposed by AS 43.76.300 and shall remit the amount of the 07 assessment due to the Department of Revenue if ownership of the fish caught by the 08 person and processed by the business is transferred to a buyer who is not a fisheries 09 business licensed under AS 43.75.020(a). If a person is liable for payment and 10 remittance of the permit buy-back assessment under this subsection, the person shall 11 maintain records of the value of fish caught by the person and processed by the 12 business during a calendar year that are subject to this subsection and shall make 13 reports to the department before April 1, after close of the calendar year. The person 14 shall remit the total permit buy-back assessment due under this subsection during the 15 calendar year to the department before April 1 after close of the calendar year. 16 * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 ADOPTION OF REGULATIONS. (a) The Department of Revenue shall adopt 19 regulations the department considers necessary for the administration of secs. 3 - 17 of this 20 Act, but the regulations may not take effect until January 1, 2005. 21 (b) The commissioner of fish and game shall adopt regulations the commissioner 22 considers necessary for the implementation of AS 16.05.050(a), as amended by sec. 2 of this 23 Act, but the regulations may not take effect until January 1, 2005. 24 * Sec. 19. Section 18 of this Act takes effect immediately under AS 01.10.070(c). 25 * Sec. 20. Except as provided under sec. 19 of this Act, this Act takes effect January 1, 26 2005.