Legislature(2003 - 2004)
05/04/2004 09:07 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR HOUSE BILL NO. 419(RES)
"An Act relating to regional seafood development associations
and to regional seafood development taxes."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken commented that this bill, Version 23-LS1418\V,
would allow fishermen to form regional seafood development
associations to tax themselves and thereby provide a stable funding
source for marketing efforts.
REPRESENTATIVE DAN OGG, the bill's sponsor, stated he is sponsoring
this bill by request of the Joint Legislative Salmon Industry Task
Force. He explained that by establishing 12 voluntary regional area
management associations, the salmon industry, who he noted support
this legislation, would be able to tax themselves in order to
assist in the development and marketing efforts of salmon. He noted
that the Copper River Red Salmon Association, which is one such
operating association, has been quite successful in its marketing
endeavors, and he noted that several other associations are in the
developmental stage. He shared that this legislation is spurred by
the fact that the federal and State grants that have funded these
associations would be terminating in the near future. Therefore, he
continued, the proposed legislation would provide a replacement
funding mechanism through which associations could tax its members
at rates of either point-five percent, one percent, one-point-five
percent or two-percent as determined by a vote of permit holders in
each association. He noted that once an association is formed in an
area, other groups could join it, and he clarified that non-permit
holder fisherman could be non-voting members of an association. He
also noted that provisions in the bill would allow those not
interested in joining an association to opt out of membership and
that were an association to desire to disband, it could do so.
Representative Ogg stated that rather than these associations
competing with the Alaska Seafood Marketing Institute (ASMI), the
goal would be to enhance the marketing of salmon in a collaborative
rather than adversarial manner. He urged the Committee to support
the bill.
Senator Olson asked whether there is any opposition to the proposal
as oftentimes controversy accompanies situations involving
taxation.
Representative Ogg responded that there has been no opposition to
the legislation. He recalled that some members of the troll
industry had some initial questions which were adequately responded
to, and that, in general, there has been positive response from the
industry as well as from United Fishermen of Alaska (UFA).
JERRY MCCUNE, Representative, United Fishermen of Alaska (UFA) and
Cordova Fishermen United, testified in support of the bill. He
affirmed that there is industry concern regarding how to replace
the current grant funding and that the development of area
associations would benefit the industry.
AT EASE: 4:25 PM/ 4:26 PM
Amendment #1: This amendment makes the following changes.
Following the word "fishery" in Section 3, subsection 43.76.370 (b)
on page four, line three, the words ", or is amended or
terminated," are inserted.
In addition, the amendment would insert, following the word
"section;" in Section 3, subsection (b)(1) on page four, line
seven, the language "(2) at least 30 percent of the eligible
interim-use permit and entry permit holders in the fishery cast a
ballot in the election to levy, amend, or terminate the tax;".
Other changes include the replacement of "(a) and (c)" with "(a) -
(c)" in Section 3, subsection (d) on page five, line 19; the
replacement of "(a), (c), and (d)" with "(a) -(d)" in Section 3,
subsection (h) on page six, line ten.
In addition, the phase "upon majority vote at an election held
under AS 43.76.370" is deleted and replaced with "upon majority
vote of eligible permit holders who vote in an election held under
AS 43.76.370 in which at least 30 percent of the eligible permit
holders cast a ballot." in Section 3, Section 43.76.375 of Section
3, subsection (a) on page six, lines 21 and 22.
And finally, following the word "tax;" in Section 3, subsection
(b)(3) on page seven, line eight, the language "(4) at least 30
percent of the permit holders who are eligible to vote in the
election cast a ballot in the election." is inserted.
The amendment also specifies that sections be renumbered
accordingly.
Co-Chair Wilken moved to adopt the amendment and objected in order
to allow the bill's sponsor to explain the amendment.
Representative Ogg voiced support for the amendment, as it would
allow a vote conducted by an association to be validated provided a
minimum 30-percent of eligible permit holders participated in the
election.
Co-Chair Wilken removed his objection.
There being no further objection, Amendment #1 was ADOPTED.
Senator Bunde moved to report the bill, as amended, from Committee
with individual recommendations and accompanying fiscal notes.
There being no objection, SCS CS HB 419(FIN) was REPORTED from
Committee with zero fiscal note #1, dated February 19, 2004 from
the Department of Community and Economic Development and
indeterminate fiscal note #2, dated February 8, 2004 from the
Department of Revenue.
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