04/11/2000 01:55 PM Senate L&C

             HB 363-SALMON PRICE REPORTS/SALE OF FISH                                                                       
                                                                                                                                
MS.  JOANIE   WALLER,  staff  to   Representative  Alan   Austerman,                                                            
explained that  CSHB 363(FIN) expands the existing  wholesale canned                                                            
salmon price report  compiled by the Department of  Revenue (DOR) to                                                            
include data  on all salmon  products including  fresh, frozen,  and                                                            
roe.  CSHB 363(FIN) will  rename the report "The Alaska Salmon Price                                                            
Report"  (ASPR).   The  report will  capture  the bulk  of  Alaska's                                                            
commercial salmon trade in a timely and accurate manner.                                                                        
                                                                                                                                
MS. WALLER pointed out  that the current statute requires processors                                                            
who sell 240,000 pounds  or more of canned salmon in a calendar year                                                            
to report  three times each  year.  The  bill changes the  recording                                                            
threshold to 1 million  pounds, which will account for 97 percent of                                                            
all salmon products  in Alaska.  The ASPR will reflect  the changing                                                            
times in this  industry.  At this time, there is no  reliable source                                                            
of  fresh and  frozen  fisheries  data.   CSHB  363(FIN)  will  give                                                            
Alaskans a  clear picture of the salmon  industry - one of  Alaska's                                                            
largest industries  and revenue sources.  This legislation  pertains                                                            
to the accuracy of the information available to the State.                                                                      
                                                                                                                                
MS.  WALLER   noted  CSHB   363(FIN)  is   the  direct  outcome   of                                                            
recommendations  made  at  in-depth   forums  that  State  agencies,                                                            
processors, and fishermen  attended.  All agreed that processors and                                                            
fishermen would  share information on short and long  term marketing                                                            
strategies.                                                                                                                     
                                                                                                                                
MR. BRETT FRIED,  Economist for the Income & Excise  Audit Division,                                                            
Department of Revenue (DOR),  stated DOR does not have a position on                                                            
the collection  of data for the Alaska Salmon Price  Reports, but it                                                            
does not see is as a function  of the DOR because there is no direct                                                            
link with taxation.   DOR taxes fish  at the ex-vessel level,  which                                                            
is what  the fishermen are  paid.  This report  is at the  wholesale                                                            
level  and  records what  the  buyers  pay to  the  processors.  DOR                                                            
believes it can do a good  job meeting the requirements of the bill.                                                            
                                                                                                                                
DOR's  fiscal  note  contains  funding   for  a three-quarter   time                                                            
position  at a  cost of  $38,100.   DOR will  also  have a  one-year                                                            
capital  expenditure  of  $20,000  to  set  up a  database  that  it                                                            
currently does  not need.  The number of processors  who report will                                                            
probably increase from 12 to about 32.                                                                                          
                                                                                                                                
SENATOR LEMAN asked if  DOR could establish an electronic format for                                                            
processor  reporting  instead  of  spending  $20,000  to  set  up  a                                                            
database.   He surmised that electronic  reporting would  negate the                                                            
need for an employee to enter data in the database.                                                                             
                                                                                                                                
MR.  FRIED said  that would  be  great and  would  reduce the  cost;                                                            
however,  if DOR uses an  electronic format,  everyone will  have to                                                            
report that way otherwise DOR will need two systems.                                                                            
                                                                                                                                
SENATOR LEMAN thought any  business that moves one million pounds of                                                            
product probably  has the capacity  to enter data electronically  or                                                            
hire someone to do it by  contract.  He noted he will hear this bill                                                            
again  in the  Senate  Finance Committee  and  he is  interested  in                                                            
looking at ways to decrease the fiscal note.                                                                                    
                                                                                                                                
CHAIRMAN  MACKIE said  the  Committee would  take  up the  amendment                                                            
regarding  the three-year  sunset date.   He explained the  original                                                            
bill has  a sunset  date of July  1, 2003; Section  13 repeals  that                                                            
date on page 5, line 20.                                                                                                        
                                                                                                                                
SENATOR LEMAN  said that is correct.  He moved to  delete Section 13                                                            
to restore the sunset date.                                                                                                     
                                                                                                                                
MS. WALLER said the sponsor supports the amendment.                                                                             
                                                                                                                                
CHAIRMAN MACKIE stated  this bill is the start of an ongoing process                                                            
to bring  fishermen and  processors together  and, although  it does                                                            
not do everything,  certain issues  can be addressed in the  future.                                                            
                                                                                                                                
CHAIRMAN  MACKIE  announced   the  amendment  was  adopted  with  no                                                            
objections.                                                                                                                     
                                                                                                                                
SENATOR LEMAN  moved to pass SCS CSHB  363(L&C) from committee  with                                                            
individual recommendations.   With no objections, it was so ordered.