00 CS FOR HOUSE BILL NO. 140(FSH) 01 "An Act relating to surety bonds required of certain fish processors." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 44.25.040(b) is amended to read: 04  (b)  A fish processor that processes more than 30,000 pounds of fish a year 05 and a primary fish buyer shall file a surety bond with the commissioner under 06 this subsection. The amount of the bond shall be $10,000 unless, during the 07 preceding five years, that amount was insufficient to satisfy a final judgment resulting 08 from a claim asserted against the bond, cash deposits, or other security filed under this 09 section. If $10,000 was insufficient, the bond shall be $50,000; if $50,000 was 10 insufficient, the bond shall be $100,000. If the commissioner determines that during 11 the preceding five years [,] a fish processor or primary fish buyer (1) has engaged in 12 the business of fish processor or primary fish buyer in the state while not in 13 compliance with this section and (2) has not yet satisfied a final judgment entered 14 against the processor or fish buyer for payment for labor furnished to, or raw fishery 01 resources purchased by, the processor or fish buyer, then the amount of the bond for 02 the processor or fish buyer shall be $100,000. In lieu of the surety bond, the fish 03 processor or primary fish buyer may file with the commissioner a cash deposit, or 04 other negotiable security acceptable to the commissioner in the amount specified for 05 the bond. If no claim is asserted under this section within two years from the date the 06 bond, cash deposit, or other security is filed, the term of the bond, cash deposit, or 07 other security shall be two years; if a claim has been asserted within two years, the 08 term of the bond, cash deposit, or other security shall be for five years. 09 * Sec. 2. AS 44.25.040 is amended by adding a new subsection to read: 10  (h) The amount of bond required of a fish processor that processes 30,000 11 pounds or less of fish a year is $2,000 unless, during the preceding five years, that 12 amount was insufficient to satisfy a final judgment resulting from a claim asserted 13 against the bond, cash deposits, or other security filed under this section. If $2,000 14 was insufficient, the bond shall be $10,000; if $10,000 was insufficient, the bond shall 15 be $20,000. If the commissioner determines that during the preceding five years a 16 fish processor (1) has engaged in the business of fish processor in the state while not 17 in compliance with this section and (2) has not yet satisfied a final judgment entered 18 against the processor for payment for labor furnished to, or raw fishery resources 19 purchased by, the processor, then the amount of the bond for the processor shall be 20 $20,000. If a processor who has filed a bond under this subsection processes more 21 than 30,000 pounds of fish in a year, the processor shall, within seven days from the 22 day on which the 30,000 pound threshold is exceeded, notify the commissioner and 23 comply with (b) of this section. If a processor who has filed a bond under this 24 subsection processes more than 30,000 pounds of fish in a year, and does not comply 25 with (b) of this section within seven days from the day on which the 30,000 pound 26 threshold is exceeded, the processor shall cease processing fish until a bond has been 27 filed under (b) of this section. In lieu of the surety bond, the fish processor may file 28 with the commissioner a cash deposit or other negotiable security acceptable to the 29 commissioner in the amount specified for the bond. If no claim is asserted under this 30 section within two years from the date the bond, cash deposit, or other security is filed, 31 the term of the bond, cash deposit, or other security shall be two years; if a claim has 01 been asserted within two years, the term of the bond, cash deposit, or other security 02 shall be for five years.