04/09/1994 01:00 PM Senate FIN

  SB 311:   An Act  authorizing a  credit against  the fishery                 
            resource  landing  tax  for certain  contributions                 
            made   by   taxpayers  not   harvesting  fisheries                 
            resources under a community development quota  and                 
            for contributions  based on fishery  resources not                 
            harvested  under   a  quota   made  by   taxpayers                 
            harvesting fisheries resources  under a  community                 
            development   quota,   amending   the  manner   of                 
            calculating  the  amount  available   for  revenue                 
            sharing   by  operation   of   this  credit,   and                 
            expediting   agency   review    of   the    credit                 
            applications under that tax; and  providing for an                 
            effective date.                                                    
                                                                               
            Larry  Meyers,  Director,  Income  & Excise  Audit                 
            Division, Department of Revenue, spoke to SB  311.                 
            Amendments 2 and  3 were  ADOPTED.  CSSB  311(FIN)                 
                                                                               
                                                                               
            was REPORTED OUT  of committee  with a "do  pass",                 
            and a zero fiscal note for Department of Revenue.                  
                                                                               
  SENATE BILL NO. 311:                                                         
                                                                               
                                                                               
       An  Act   authorizing  a  credit  against  the  fishery                 
       resource landing tax for certain contributions  made by                 
       taxpayers  not harvesting  fisheries resources  under a                 
       community development quota and for contributions based                 
       on fishery resources  not harvested under a  quota made                 
       by  taxpayers harvesting  fisheries  resources under  a                 
       community  development  quota, amending  the  manner of                 
       calculating the amount available for revenue sharing by                 
       operation of this credit, and expediting  agency review                 
       of  the   credit  applications  under  that   tax;  and                 
       providing for an effective date.                                        
                                                                               
  Co-chair  Pearce  announced  that  SB  311  was  before  the                 
  committee.  She said that  discussion had suggested limiting                 
  the use of the  tax credits for programs already  in statute                 
  and the new one added by SB 311.  The credits would still be                 
  available for  training, scholarships,  and awarding  grants                 
  for research  projects  which was  the  primary use  of  the                 
  funds.  She said this option was contained in amendment 2 if                 
  anyone wished to offer it.                                                   
                                                                               
  Senator Sharp  MOVED amendment 2.  Senator  Jacko noted that                 
  it was commendable to get people involved with the fisheries                 
  by  training and  scholarships but  there was  much more  to                 
  commercial  fishing  than scrubbing  a  deck.   Allowing the                 
  money to be used for other options like  processing projects                 
  would be beneficial even though it was not a large amount of                 
  money.                                                                       
                                                                               
  Co-chair  Pearce was opposed  to non-profit groups receiving                 
  state dollars for  a tax credit  and then, in turn,  loaning                 
  out those  tax dollars and receiving interest on that money.                 
  She  said  there were  loan  programs already  in existence.                 
  Senator Jacko said there were many needs in this area.                       
                                                                               
  Co-chair Pearce called for  a show of hands and  amendment 2                 
  was ADOPTED on a vote of 3 to 1 (Co-chairs Pearce, Frank and                 
  Senator Sharp were in support.  Senator Jacko was opposed.).                 
                                                                               
  Co-chair Pearce invited Larry Meyers to join the members  at                 
  the table to speak to amendment 3.                                           
                                                                               
  LARRY  MEYERS,  Director,  Income &  Excise  Audit Division,                 
  Department of Revenue, said SB 311 provided a public hearing                 
  to grant a credit.  The  department proposed all language be                 
  deleted in Section  1, page 2,  line 5-11, and replace  with                 
  the wording in amendment 3.                                                  
                                                                               
  Senator Jacko MOVED amendment 3.  No objection being  heard,                 
  it was ADOPTED.                                                              
                                                                               
  Senator  Jacko  MOVED  for  passage  of CSSB  311(FIN)  from                 
  committee  with individual  recommendations.   No  objection                 
  being heard, it  was REPORTED  OUT of committee  with a  "do                 
                                                                               
                                                                               
  pass," and a zero fiscal note for the Department of Revenue.                 
  Co-chairs Pearce, Frank, Senators Kelly and Jacko signed "do                 
  pass."  Senator Sharp signed "no recommendation."                            
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was adjourned at approximately 3:30 p.m.