04/07/2021 03:30 PM Senate RESOURCES

          SB 33-SEAFOOD PRODUCT DEVELOPMENT TAX CREDIT                                                                      
                                                                                                                                
3:55:59 PM                                                                                                                    
CHAIR REVAK  announced the  consideration of  SENATE BILL  NO. 33                                                               
"An Act  relating to  a seafood  product development  tax credit;                                                               
providing for  an effective  date by repealing  secs. 32  and 35,                                                               
ch. 61, SLA 2014; and providing for an effective date."                                                                         
                                                                                                                                
He noted  this was the  second hearing  and the intention  was to                                                               
adopt  a committee  substitute (CS),  take public  testimony, and                                                               
gauge the will  of the committee. He asked Senator  Stevens if he                                                               
had additional remarks.                                                                                                         
                                                                                                                                
3:56:30 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
3:57:20 PM                                                                                                                    
CHAIR REVAK reconvened the meeting.                                                                                             
                                                                                                                                
3:57:28 PM                                                                                                                    
SENATOR GARY  STEVENS, speaking  as sponsor  of SB  33, explained                                                               
that the bill is about adding  value to Pollock and cod, which is                                                               
already  being done  with salmon.  The  additional revenue  helps                                                               
with reimbursements  for the investments in  hardware, machinery,                                                               
and   infrastructure   for   processing   these   fisheries.   He                                                               
highlighted the benefit  of using all parts of the  fish. He said                                                               
the tax credit  currently only applies to salmon  and herring and                                                               
SB 33 expands the program to the Pollack and cod fisheries.                                                                     
                                                                                                                                
3:58:03 PM                                                                                                                    
CHAIR   REVAK  solicited   a  motion   to  adopt   the  committee                                                               
substitute.                                                                                                                     
                                                                                                                                
3:58:11 PM                                                                                                                    
SENATOR MICCICHE moved to adopt the  CS for SB 33, work order 32-                                                               
LS0308\B, as the working document.                                                                                              
                                                                                                                                
3:58:22 PM                                                                                                                    
CHAIR  REVAK  objected  for discussion  purposes.  He  asked  Mr.                                                               
Lamkin to explain the changes.                                                                                                  
                                                                                                                                
3:58:34 PM                                                                                                                    
TIM   LAMKIN,  Staff,   Senator   Gary   Stevens,  Alaska   State                                                               
Legislature, Juneau,  Alaska, stated that the  only difference is                                                               
that version  B has  a January 1,  2021 retroactivity  clause, so                                                               
any investments made last year can be applied for credit.                                                                       
                                                                                                                                
3:59:07 PM                                                                                                                    
SENATOR  MICCICHE  noted  that  the  fiscal  note  estimates  the                                                               
revenue in  2023 would be $2.9  million and it grows  from there.                                                               
He asked  if the CS adds  approximately $3 million to  the fiscal                                                               
note as well.                                                                                                                   
                                                                                                                                
3:59:27 PM                                                                                                                    
MR. LAMKIN  answered it  may; it  is an  estimate of  the credits                                                               
that would  be applied  [against the  Fisheries Business  Tax for                                                               
qualified investments].                                                                                                         
                                                                                                                                
CHAIR REVAK asked Ms. Reynolds to respond to the question.                                                                      
                                                                                                                                
4:00:01 PM                                                                                                                    
NICOLE  REYNOLDS, Deputy  Director, Tax  Division, Department  of                                                               
Revenue  (DOR), Anchorage,  Alaska, stated  that the  fiscal note                                                               
was prepared based on the language  in version A of the bill. DOR                                                               
has  not submitted  an  updated fiscal  note  that estimates  the                                                               
revenue impact  for FY2022.  That being  said, she  estimated the                                                               
fiscal  impact would  be close  to the  current fiscal  note; the                                                               
value of the credit is $2.9  million to $5.1 million. She offered                                                               
to provide an updated fiscal note upon request.                                                                                 
                                                                                                                                
4:01:14 PM                                                                                                                    
SENATOR  MICCICHE said  he  could  wait until  the  bill goes  to                                                               
finance.                                                                                                                        
                                                                                                                                
4:01:35 PM                                                                                                                    
CHAIR REVAK removed his objection.  Finding no further objection,                                                               
the CS for SB 33 was adopted.                                                                                                   
                                                                                                                                
4:01:59 PM                                                                                                                    
CHAIR REVAK  opened public testimony  on SB 33; finding  none, he                                                               
closed public testimony.                                                                                                        
                                                                                                                                
He solicited the will of the committee.                                                                                         
                                                                                                                                
4:02:30 PM                                                                                                                    
SENATOR MICCICHE  moved to report  the CS  for SB 33,  work order                                                               
32-LS0308\B, from  committee with individual  recommendations and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
4:02:46 PM                                                                                                                    
CHAIR  REVAK announced  that without  objection CSSB  33(RES) was                                                               
reported from the Senate Resources Standing Committee.