Legislature(2005 - 2006)

2005-03-02 Senate Journal

Full Journal pdf

2005-03-02                     Senate Journal                      Page 0440
SB 124                                                                                            
SENATE BILL NO. 124 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
          "An Act relating to requirements to obtain and                                            
          maintain a fisheries business license; relating to                                        
          security required of fish processors and primary fish                                     
          buyers; and providing for an effective date."                                             
                                                                                                    
was read the first time and referred to the Labor and Commerce and                                  
Finance Committees.                                                                                 
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, Department of Revenue                                                           
 Fiscal Note No. 2, zero, Department of Commerce, Community                                         
       and Economic Development                                                                     
 Fiscal Note No. 3, zero, Department of Fish and Game                                               
 Fiscal Note No. 4, zero, Department of Labor and Workforce                                         
       Development                                                                                  
 Fiscal Note No. 5, zero, Department of Labor and Workforce                                         
       Development                                                                                  

2005-03-02                     Senate Journal                      Page 0441
Governor's transmittal letter dated March 1:                                                        
                                                                                                    
Dear President Stevens:                                                                             
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill recommending changes to the requirements to                                     
obtain and maintain a fisheries business license and to the bonding                                 
requirements for fish processors and primary fish buyers.                                           
                                                                                                    
This bill proposes to require, as a condition of obtaining and                                      
maintaining a fisheries business license under AS 43.75.020, an                                     
acknowledgment of the obligation to pay the taxes levied under AS 43,                               
Alaska Seafood Marketing Institute (ASMI) assessments under                                         
AS 16.51, employment security contributions under AS 23.20, and                                     
Alaska Occupational, Safety, and Health Administration (OSHA) fines                                 
under AS 18.60.  The bill proposes denying an applicant a fisheries                                 
business license until the applicant has paid in full all of those same                             
taxes, assessments, contributions, and fines that are outstanding.                                  
                                                                                                    
The bill also would repeal and reenact AS 44.25.040, which requires                                 
the filing of a performance bond by fish processors and primary fish                                
buyers.  Under the bill, the performance bond would be more                                         
accessible for collection of claims by the Department of Labor and                                  
Workforce Development (DLWD) for unpaid employment security                                         
contributions.  The bill would achieve this by providing a process for                              
the DLWD to file directly with the commissioner of revenue a claim                                  
against the bond instead of obtaining a court judgment against the                                  
bond.  However, this bill would preserve the existing statutory priority                            
for use of the bond to pay fishermen and employees first.  To achieve                               
this, the DLWD would be obligated to return money collected from                                    
the bond if the processor or buyer does not replenish the bond and a                                
fisherman or employee has obtained a final judgment against the bond.                               
                                                                                                    
Additionally, the bill would provide that if a bond is depleted by the                              
DLWD's claim, the fish processor or fish buyer would be subjected to                                
an increased bonding requirement (the bill would preserve the existing                              
increased bonding requirement in the case of a final court judgment                                 
against the bond).                                                                                  
                                                                                                    
                                                                                                    

2005-03-02                     Senate Journal                      Page 0442
Last, the bill proposes to prevent the use of real property as a bond                               
substitute if the fish processor or fish buyer has been subjected to an                             
increased bonding requirement or if a final judgment has been                                       
obtained against the bond in the preceding five years.                                              
                                                                                                    
My purpose in introducing changes to the licensing requirements is to                               
prevent the licensure of a fisheries business that has demonstrated that                            
it is, and remains, unwilling to pay its taxes, ASMI assessments,                                   
employment security contributions, or OSHA fines.  My purpose in                                    
introducing changes to the bonding requirements is to expedite the                                  
collection of unpaid unemployment insurance contributions by the                                    
DLWD and to make the bonding amount more representative of the                                      
risk of nonpayment posed to fishermen and employees who work for                                    
these bonded fish processors and buyers.                                                            
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor