00 CS FOR SENATE BILL NO. 177(L&C) 01 "An Act relating to the Alaska Seafood Marketing Institute, a salmon marketing 02 tax, and reduction of the salmon enhancement tax; and providing for an effective 03 date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 16.51.020(a) is amended to read: 06  (a) The governing body of the institute is a board of directors. The board 07 consists of 25 [18] voting members appointed by the governor. [IN MAKING 08 APPOINTMENTS TO THE BOARD THE GOVERNOR SHALL CONSIDER, BUT 09 NEED NOT APPOINT, NOMINEES PRESENTED BY PERSONS ENGAGED IN 10 FISH PROCESSING, THE FINANCING OF FISH PROCESSING, OR 11 COMMERCIAL FISHING.] 12 * Sec. 2. AS 16.51.020(b) is amended to read: 13  (b) Twelve members of the board shall be seafood processors: eight of the 14 seafood processors must have an annual payroll in the state of more than $2,500,000 01 [$1,000,000 OR MORE]; four of the seafood processors must have an annual payroll 02 in the state of $50,000 - $2,500,000. Twelve [$1,000,000. FIVE] members of the 03 board must be engaged in commercial fishing. One member of the board shall be a 04 lay person selected by the governor. 05 * Sec. 3. AS 16.51.050 is amended to read: 06  Sec. 16.51.050. QUORUM. Fourteen [TEN] members of the board appointed 07 under AS 16.51.020 constitute a quorum for the transaction of business and the 08 exercise of the powers and duties of the board. 09 * Sec. 4. AS 16.51.090 is amended to read: 10  Sec. 16.51.090. POWERS OF BOARD. In carrying out the powers of the 11 institute, the board may 12  (1) adopt, alter, and use a corporate seal; 13  (2) prescribe, adopt, amend, and repeal bylaws; 14  (3) sue and be sued in the name of the institute; 15  (4) enter into any agreements necessary to the exercise of its powers 16 and functions; 17  (5) cooperate with a public or private board, organization, or agency 18 engaged in work or activities similar to the work or activities of the institute, including 19 entering into contracts for joint programs of consumer education, sales promotion, 20 quality control, advertising, and research in the production, processing, or distribution 21 of seafood; 22  (6) conduct, or contract for, scientific research to develop and discover 23 health, dietetic, or other uses of seafood harvested and processed in the state; 24  (7) receive contributions of money from persons; 25  (8) establish offices in the state and otherwise incur expenses incidental 26 to the performance of its duties; 27  (9) appear on behalf of the institute before boards, commissions, 28 departments, or other agencies of municipal, state, or federal government; 29  (10) acquire, hold, lease, sell, or otherwise dispose of property, but such 30 property is limited to that which is necessary to the administrative functioning of the 31 office of the institute; 01  (11) establish and maintain one or more bank accounts for the 02 transaction of the institute's business; 03  (12) prepare market research and product development plans for the 04 promotion of any species of seafood and their by-products that may be harvested in 05 the state and processed for sale; 06  (13) establish committees related to the marketing of salmon and 07 salmon products; the board shall, to the extent practicable, appoint equal 08 numbers of seafood processors and persons engaged in commercial fishing to the 09 committees. 10 * Sec. 5. AS 16.51.100 is amended to read: 11  Sec. 16.51.100. DUTIES OF BOARD. The board shall 12  (1) conduct programs of education, research, advertising, or sales 13 promotion designed to accomplish the purposes of this chapter; 14  (2) promote all species of seafood and their by-products that are 15 harvested in the state and processed for sale; 16  (3) develop market-oriented quality specifications for Alaska seafoods 17 to be used in developing a high quality image for Alaska seafood in domestic and 18 world markets, and adopt and distribute recommendations regarding the handling of 19 seafood from the moment of capture to final distribution; 20  (4) prepare market research and product development plans for the 21 promotion of all species of seafood and their by-products that are harvested in the state 22 and processed for sale; 23  (5) submit an annual report to the governor and the legislature 24 describing the activities of the institute; [AND] 25  (6) develop marketing programs based on the "inspection" and 26 "premium quality" seals designed under AS 03.05.026 [,] and use the seals in 27 advertising and promotion efforts of the institute; 28  (7) collect, organize, and distribute information on prices paid and 29 market conditions for raw salmon and salmon products and provide this 30 information on a regular and timely basis to all salmon fishermen who hold 31 permits under AS 16.43, to licensed fish processors and fish buyers, and to all 01 nonprofit salmon enhancement organizations that hold a permit under 02 AS 16.10.400; the board shall also provide information collected under this 03 paragraph to the public upon request; 04  (8) cooperate with commercial salmon fishermen, fishermen's 05 organizations, seafood processors, the Alaska Fisheries Development Foundation, 06 the Fisheries Industrial Technology Center, state and federal agencies, and other 07 relevant persons and entities to investigate market reception to new salmon 08 product forms and to explore the development of commodity exchanges and 09 futures markets for salmon products; and 10  (9) establish a salmon marketing committee to assist and advise the 11 board in administering the domestic salmon marketing program that is funded 12 through the tax collected under AS 43.76; the committee shall consist of seven 13 persons selected by the board, as follows 14  (A) four persons shall be engaged in commercial salmon 15 fishing and hold salmon permits under AS 16.43, of whom 16  (i) one person shall be a member of the board of 17 directors of the institute; and 18  (ii) three persons shall be Alaska residents from 19 different salmon administrative areas established by the Alaska 20 Commercial Fisheries Entry Commission; and 21  (B) three persons shall be engaged in processing of salmon, 22 of whom 23  (i) one person shall be a member of the board of 24 directors of the institute; 25  (ii) one person shall be a salmon processor who is not 26 on the board of directors of the institute and who has an annual 27 payroll in the state of more than $2,500,000; and 28  (iii) one person shall be a salmon processor who is 29 not on the board of directors of the institute and who has an annual 30 payroll in the state of $50,000 - $2,500,000. 31 * Sec. 6. AS 43.76 is amended by adding a new section to read: 01  Sec. 43.76.023. REDUCTION OF SALMON ENHANCEMENT TAX. (a) 02 If a salmon marketing tax levied under AS 43.76.110 - 43.76.130 is in effect, a salmon 03 enhancement tax levied under AS 43.76.010 may be reduced to a two percent salmon 04 enhancement tax by the commissioner of revenue upon majority vote at an election 05 held under AS 43.76.015 in the region in which the salmon enhancement tax is levied. 06  (b) A salmon enhancement tax shall be reduced by the commissioner of 07 revenue under (a) of this section following an election in a region if 08  (1) a petition is presented to the commissioner of commerce and 09 economic development requesting reduction of the salmon enhancement tax that is 10 signed by at least 25 percent of the number of persons who voted under AS 43.76.015 11 in the election approving the salmon enhancement tax in the region; 12  (2) the commissioner of commerce and economic development 13 determines that the reduction of the salmon enhancement tax to two percent will not 14 significantly jeopardize repayment of outstanding loans to the qualified regional 15 association under AS 16.10.510 that are secured by the tax; 16  (3) an election is held in accordance with AS 43.76.015(a), (c), and (d); 17 the ballot must ask the question whether the salmon enhancement tax for the region 18 shall be reduced to two percent; the ballot must be worded so that a "yes" vote is for 19 reduction of the salmon enhancement tax to two percent and a "no" vote is for 20 continuation of the three percent salmon enhancement tax; 21  (4) a majority of the eligible interim-use permit and entry permit 22 holders who vote in the election cast a ballot for the reduction of the salmon 23 enhancement tax; and 24  (5) the qualified regional association provides notice of the election in 25 accordance with AS 43.76.015 within two months after receiving notice from the 26 commissioner of commerce and economic development that a valid petition under (1) 27 of this subsection has been received. 28  (c) An election to reduce a salmon enhancement tax under this section shall 29 be held within 90 days after the commissioner of commerce and economic 30 development receives a valid petition under (b)(1) of this section, unless the 31 commissioner authorizes an extension of the election date in order to provide for an 01 orderly election. 02  (d) If approved, the reduction of the salmon enhancement tax takes effect on 03 the date set out in the ballot. 04  (e) If the salmon marketing tax levied under AS 43.76.110 - 43.76.130 is 05 repealed, then on the effective date of the repeal of the salmon marketing tax, the full 06 salmon enhancement tax is automatically reinstated in a region that has voted to reduce 07 the salmon enhancement tax under this section, so long as the salmon enhancement tax 08 in the region has not been terminated or amended under AS 43.76.015 or 43.76.020 09 after the salmon enhancement tax is reduced under this section. 10 * Sec. 7. AS 43.76 is amended by adding new sections to read: 11 ARTICLE 2. SALMON MARKETING TAX. 12  Sec. 43.76.110. SALMON MARKETING TAX. A person holding a limited 13 entry permit or interim-use permit under AS 16.43 shall pay a salmon marketing tax 14 at the rate of one percent of the value, as defined in AS 43.75.290, of salmon that the 15 person removes from the state or transfers to a buyer in the state. The buyer shall 16 collect the salmon marketing tax at the time the salmon is acquired by the buyer. 17  Sec. 43.76.120. COLLECTION OF TAX. (a) A buyer who acquires salmon 18 that is subject to a salmon marketing tax imposed by AS 43.76.110 shall collect the 19 salmon marketing tax at the time of purchase and shall remit the total salmon 20 marketing tax collected during each month to the Department of Revenue by the last 21 day of the next month. 22  (b) A buyer who collects the salmon marketing tax shall 23  (1) maintain records of the value of salmon purchased in the state; 24  (2) report to the Department of Revenue by March 1 of each year the 25 total value, as defined in AS 43.75.290, of the salmon that the buyer has acquired 26 during the preceding year. 27  (c) The owner of salmon removed from the state is liable for payment of a 28 salmon marketing tax imposed by AS 43.76.110 if, at the time the salmon is removed 29 from the state, the tax payable on the salmon has not been collected by a buyer. If the 30 owner of the salmon is liable for payment of the salmon marketing tax under this 31 subsection, the owner shall comply with the requirements under (a) and (b) of this 01 section to remit the tax to the Department of Revenue, to maintain records, and to 02 report to the Department of Revenue. 03  (d) The salmon marketing tax collected under this section shall be deposited 04 in the general fund. The legislature may appropriate revenue generated by the salmon 05 marketing tax to the Alaska Seafood Marketing Institute for the purpose of supporting 06 the institute's salmon marketing program under AS 16.51.100(7) - (9) and the 07 institute's domestic salmon marketing program. Except as otherwise provided in an 08 appropriation by the legislature, the amount of the allocation made to the institute's 09 salmon marketing program under AS 16.51.100(7) and (8) should not exceed 10 10 percent of the total amount of salmon marketing tax revenue appropriated for the 11 institute. 12  Sec. 43.76.130. DEFINITION. In AS 43.76.110 - 43.76.130, "buyer" means 13 a person who acquires possession of salmon from the person who caught the salmon 14 regardless of whether there is an actual sale of the salmon, but does not include a 15 person engaged solely in interstate transportation of goods for hire. 16 * Sec. 8. TRANSITION FOR MEMBERS OF THE BOARD OF DIRECTORS OF THE 17 ALASKA SEAFOOD MARKETING INSTITUTE. (a) Notwithstanding AS 16.51.020(b), 18 as amended by sec. 2 of this Act, a person who is serving as a member of the board of 19 directors of the Alaska Seafood Marketing Institute on the day before the effective date of 20 sec. 2 of this Act may continue to serve as a member of the board for the remainder of the 21 term to which the person was appointed. 22 (b) As soon as practicable after the effective date of sec. 1 of this Act, the governor 23 shall appoint seven persons engaged in commercial fishing to the new memberships created 24 on the board of directors of the Alaska Seafood Marketing Institute by secs. 1 and 2 of this 25 Act. Notwithstanding AS 16.51.030, the governor shall appoint two persons appointed under 26 this subsection to one-year terms, two persons appointed under this subsection to two-year 27 terms, and three persons appointed under this subsection to three-year terms. 28 * Sec. 9. AS 43.76.110, 43.76.120, and 43.76.130 are repealed June 30, 1999. 29 * Sec. 10. AS 16.51.100(7), 16.51.100(8), and 16.51.100(9) are repealed June 30, 2000. 30 * Sec. 11. Section 7 of this Act takes effect July 1, 1993.