00 SENATE CS FOR CS FOR HOUSE BILL NO. 275(FIN) am S 01 "An Act relating to the Alaska Seafood Marketing Institute and a salmon 02 marketing tax; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 16.51.020(a) is amended to read: 05 (a) The governing body of the institute is a board of directors. The board 06 consists of 25 [18] voting members appointed by the governor. In making 07 appointments to the board, the governor shall consider, but need not appoint, nominees 08 presented by persons engaged in fish processing, the financing of fish processing, or 09 commercial fishing. 10 * Sec. 2. AS 16.51.020(b) is amended to read: 11 (b) Twelve members of the board shall be seafood processors: eight of the 12 seafood processors must have an annual payroll in the state of more than $2,500,000 13 [$1,000,000 OR MORE]; four of the seafood processors must have an annual payroll 14 in the state of $50,000 - $2,500,000. Twelve [$1,000,000. FIVE] members of the 01 board must be engaged in commercial fishing. The governor, to the extent 02 practicable, shall appoint as commercial fishing members of the board persons 03 engaged in commercial fishing in a fishery management region of the state in the 04 same proportion that the region contributes, or is expected to contribute during 05 the next year, to the total salmon marketing tax collected under AS 43.76.110 - 06 43.76.130. One member of the board shall be a lay person selected by the governor. 07 * Sec. 3. AS 16.51.020(b) is repealed and reenacted to read: 08 (b) Twelve members of the board shall be seafood processors: eight of the 09 seafood processors must have an annual payroll in the state of more than $2,500,000; 10 four of the seafood processors must have an annual payroll in the state of $50,000 - 11 $2,500,000. Twelve members of the board must be engaged in commercial fishing. 12 One member of the board shall be a lay person selected by the governor. 13 * Sec. 4. AS 16.51.050 is amended to read: 14 Sec. 16.51.050. QUORUM. Fourteen [TEN] members of the board appointed 15 under AS 16.51.020 constitute a quorum for the transaction of business and the 16 exercise of the powers and duties of the board. 17 * Sec. 5. AS 16.51.090 is amended to read: 18 Sec. 16.51.090. POWERS OF BOARD. In carrying out the powers of the 19 institute, the board may 20 (1) adopt, alter, and use a corporate seal; 21 (2) prescribe, adopt, amend, and repeal bylaws; 22 (3) sue and be sued in the name of the institute; 23 (4) enter into any agreements necessary to the exercise of its powers 24 and functions; 25 (5) cooperate with a public or private board, organization, or agency 26 engaged in work or activities similar to the work or activities of the institute, including 27 entering into contracts for joint programs of consumer education, sales promotion, 28 quality control, advertising, and research in the production, processing, or distribution 29 of seafood; 30 (6) conduct, or contract for, scientific research to develop and discover 31 health, dietetic, or other uses of seafood harvested and processed in the state; 01 (7) receive contributions of money from persons; 02 (8) establish offices in the state and otherwise incur expenses incidental 03 to the performance of its duties; 04 (9) appear on behalf of the institute before boards, commissions, 05 departments, or other agencies of municipal, state, or federal government; 06 (10) acquire, hold, lease, sell, or otherwise dispose of property, but such 07 property is limited to that which is necessary to the administrative functioning of the 08 office of the institute; 09 (11) establish and maintain one or more bank accounts for the 10 transaction of the institute's business; 11 (12) prepare market research and product development plans for the 12 promotion of any species of seafood and their by-products that may be harvested in 13 the state and processed for sale; 14 (13) establish committees related to the marketing of salmon and 15 salmon products; the board shall, to the extent practicable, appoint equal 16 numbers of seafood processors and persons engaged in commercial fishing to the 17 committees. 18 * Sec. 6. AS 16.51.100 is amended to read: 19 Sec. 16.51.100. DUTIES OF BOARD. The board shall 20 (1) conduct programs of education, research, advertising, or sales 21 promotion designed to accomplish the purposes of this chapter; 22 (2) promote all species of seafood and their by-products that are 23 harvested in the state and processed for sale; 24 (3) develop market-oriented quality specifications for Alaska seafoods 25 to be used in developing a high quality image for Alaska seafood in domestic and 26 world markets, and adopt and distribute recommendations regarding the handling of 27 seafood from the moment of capture to final distribution; 28 (4) prepare market research and product development plans for the 29 promotion of all species of seafood and their by-products that are harvested in the state 30 and processed for sale; 31 (5) submit an annual report to the governor and the legislature 01 describing the activities of the institute; [AND] 02 (6) develop marketing programs based on the "inspection" and 03 "premium quality" seals designed under AS 03.05.026 [,] and use the seals in 04 advertising and promotion efforts of the institute; 05 (7) collect, organize, distribute, and make available to the public 06 information on prices paid and market conditions for raw salmon and salmon 07 products and provide this information on a regular and timely basis to all salmon 08 fishermen who hold permits under AS 16.43 and to all nonprofit salmon 09 enhancement organizations that hold a permit under AS 16.10.400; 10 (8) cooperate with commercial salmon fishermen, fishermen's 11 organizations, seafood processors, the Alaska Fisheries Development Foundation, 12 the Fisheries Industrial Technology Center, state and federal agencies, and other 13 relevant persons and entities to investigate market reception to new salmon 14 product forms and develop commodity standards and future markets for salmon 15 products; 16 (9) establish a salmon marketing committee to assist and advise the 17 board in administering the domestic salmon marketing program that is funded 18 through the tax collected under AS 43.76.110 - 43.76.130; the committee shall 19 consist of seven persons selected by the board, as follows: 20 (A) four persons shall be engaged in commercial salmon 21 fishing and hold salmon permits under AS 16.43, of whom 22 (i) one person shall be a member of the board of 23 directors of the institute; and 24 (ii) three persons shall be Alaska residents from 25 different salmon administrative areas established by the Alaska 26 Commercial Fisheries Entry Commission; and 27 (B) three persons shall be engaged in processing of salmon, 28 of whom 29 (i) one person shall be a member of the board of 30 directors of the institute; 31 (ii) one person shall be a salmon processor who is not 01 on the board of directors of the institute and who has an annual 02 payroll in the state of more than $2,500,000; and 03 (iii) one person shall be a salmon processor who is 04 not on the board of directors of the institute and who has an annual 05 payroll in the state of $50,000 - $2,500,000. 06 * Sec. 7. AS 43.76 is amended by adding new sections to read: 07 ARTICLE 2. SALMON MARKETING TAX. 08 Sec. 43.76.110. SALMON MARKETING TAX. A person holding a limited 09 entry permit or interim-use permit under AS 16.43 shall pay a salmon marketing tax 10 at the rate of one percent of the value, as defined in AS 43.75.290, of salmon that the 11 person removes from the state or transfers to a buyer in the state. The buyer shall 12 collect the salmon marketing tax at the time the salmon is acquired by the buyer. 13 Sec. 43.76.120. COLLECTION OF TAX. (a) A buyer who acquires salmon 14 that is subject to a salmon marketing tax imposed by AS 43.76.110 shall collect the 15 salmon marketing tax at the time of purchase and shall remit the total salmon 16 marketing tax collected during each month to the Department of Revenue by the last 17 day of the next month. 18 (b) A buyer who collects the salmon marketing tax shall 19 (1) maintain records of the value of salmon purchased in the state; 20 (2) report to the Department of Revenue by March 1 of each year the 21 total value, as defined in AS 43.75.290, of the salmon that the buyer has acquired 22 during the preceding year. 23 (c) The owner of salmon removed from the state is liable for payment of 24 a salmon marketing tax imposed by AS 43.76.110 if, at the time the salmon is 25 removed from the state, the tax payable on the salmon has not been collected by a 26 buyer. If the owner of the salmon is liable for payment of the salmon marketing tax 27 under this subsection, the owner shall comply with the requirements under (a) and (b) 28 of this section to remit the tax to the Department of Revenue, to maintain records, and 29 to report to the Department of Revenue. 30 (d) The salmon marketing tax collected under this section shall be deposited 31 in the general fund. The legislature may appropriate revenue generated by the salmon 01 marketing tax to the Alaska Seafood Marketing Institute for the purpose of supporting 02 the institute's salmon marketing program under AS 16.51.100(7) - (9) and the 03 institute's domestic salmon marketing program. Except as otherwise provided in an 04 appropriation by the legislature, the amount of the allocation made to the institute's 05 salmon marketing program under AS 16.51.100(7) and (8) should not exceed 10 06 percent of the total amount of salmon marketing tax revenue appropriated for the 07 institute. 08 Sec. 43.76.130. DEFINITION. In AS 43.76.110 - 43.76.130, "buyer" means 09 a person who acquires possession of salmon from the person who caught the salmon 10 regardless of whether there is an actual sale of the salmon, but does not include a 11 person engaged solely in interstate transportation of goods for hire. 12 * Sec. 8. TRANSITION FOR MEMBERS OF THE BOARD OF DIRECTORS OF THE 13 ALASKA SEAFOOD MARKETING INSTITUTE. (a) Notwithstanding AS 16.51.020(b), 14 as amended by sec. 2 of this Act, a person who is serving as a member of the board of 15 directors of the Alaska Seafood Marketing Institute on the day before the effective date of sec. 16 2 of this Act may continue to serve as a member of the board for the remainder of the term 17 to which the person was appointed. 18 (b) As soon as practicable after the effective date of sec. 1 of this Act, the governor 19 shall appoint seven persons engaged in commercial fishing to the new memberships created 20 on the board of directors of the Alaska Seafood Marketing Institute by secs. 1 and 2 of this 21 Act. Notwithstanding AS 16.51.030, the governor shall appoint two persons appointed under 22 this subsection to one-year terms, two persons appointed under this subsection to two-year 23 terms, and three persons appointed under this subsection to three-year terms. 24 (c) Notwithstanding AS 16.51.020(b), as amended by sec. 3 of this Act, a person who 25 is serving as a member of the board of directors of the Alaska Seafood Marketing Institute 26 on the day before the effective date of sec. 3 of this Act may continue to serve as a member 27 of the board for the remainder of the term to which the person was appointed. 28 * Sec. 9. AS 43.76.110, 43.76.120, and 43.76.130 are repealed June 30, 1998. 29 * Sec. 10. AS 16.51.100(7), 16.51.100(8), and 16.51.100(9) are repealed June 30, 1999. 30 * Sec. 11. Section 7 of this Act takes effect July 1, 1993. 31 * Sec. 12. Section 3 of this Act takes effect upon the repeal of AS 43.76.110, 43.76.120, 01 and 43.76.130.