SB 177: "An Act relating to salmon marketing, a salmon marketing tax, and the Alaska Seafood Marketing Institute; and providing for an effective date."
00SENATE BILL NO. 177 01 "An Act relating to salmon marketing, a salmon marketing tax, and the Alaska 02 Seafood Marketing Institute; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 16.10 is amended by adding new sections to read: 05 ARTICLE 10A. SALMON MARKETING. 06 Sec. 16.10.570. SALMON MARKET INFORMATION. The Department of 07 Commerce and Economic Development shall collect, organize, and distribute 08 information on prices paid and market conditions for raw salmon and salmon products. 09 The department shall provide this information on a regular and timely basis to all 10 salmon fishermen who hold permits under AS 16.43 and to all nonprofit salmon 11 enhancement organizations that hold a permit under AS 16.10.400. 12 Sec. 16.10.580. SALMON MARKETING SERVICES. (a) The department 13 shall provide professional services to assist commercial salmon fishermen in 14 developing annual and long-term contracts with seafood processors for the purchase
01 of salmon. 02 (b) The department shall cooperate with commercial salmon fishermen, 03 fishermen's organizations, seafood processors, the Alaska Seafood Marketing Institute, 04 state and federal agencies, and other relevant persons and entities to develop 05 commodity standards for salmon products. 06 Sec. 16.10.590. SALMON ADVISORY COMMITTEE. The commissioner 07 shall establish a salmon marketing advisory committee to assist and advise the 08 department in fulfilling the department's responsibilities under AS 16.10.570 - 09 16.10.599. The committee shall consist of one commercial salmon fisherman 10 appointed by the commissioner from each salmon administrative area established by 11 the Alaska Commercial Fisheries Entry Commission. The commissioner shall adopt 12 regulations that are necessary to implement this section. 13 Sec. 16.10.599. DEFINITIONS. In AS 16.10.570 - 16.10.599, 14 (1) "commissioner" means the commissioner of commerce and 15 economic development; 16 (2) "department" means the Department of Commerce and Economic 17 Development. 18 * Sec. 2. AS 16.51.020(a) is amended to read: 19 (a) The governing body of the institute is a board of directors. The board 20 consists of 20  voting members appointed by the governor. In making 21 appointments to the board, the governor shall consider, but need not appoint, nominees 22 presented by persons engaged in fish processing, the financing of fish processing, or 23 commercial fishing. 24 * Sec. 3. AS 16.51.020(b) is amended to read: 25 (b) Ten [TWELVE] members of the board shall be seafood processors: seven 26 [EIGHT] of the seafood processors must have an annual payroll in the state of 27 $1,000,000 or more; three [FOUR] of the seafood processors must have an annual 28 payroll in the state of $50,000 - $1,000,000. Ten [FIVE] members of the board must 29 be engaged in commercial fishing. [ONE MEMBER OF THE BOARD SHALL BE 30 A LAY PERSON SELECTED BY THE GOVERNOR.] 31 * Sec. 4. AS 16.51.050 is amended to read:
01 Sec. 16.51.050. QUORUM. Twelve [TEN] members of the board appointed 02 under AS 16.51.020 constitute a quorum for the transaction of business and the 03 exercise of the powers and duties of the board. 04 * Sec. 5. AS 16.51.090 is amended to read: 05 Sec. 16.51.090. POWERS OF BOARD. In carrying out the powers of the 06 institute, the board may 07 (1) adopt, alter, and use a corporate seal; 08 (2) prescribe, adopt, amend, and repeal bylaws; 09 (3) sue and be sued in the name of the institute; 10 (4) enter into any agreements necessary to the exercise of its powers 11 and functions; 12 (5) cooperate with a public or private board, organization, or agency 13 engaged in work or activities similar to the work or activities of the institute, including 14 entering into contracts for joint programs of consumer education, sales promotion, 15 quality control, advertising, and research in the production, processing, or distribution 16 of seafood; 17 (6) conduct, or contract for, scientific research to develop and discover 18 health, dietetic, or other uses of seafood harvested and processed in the state; 19 (7) receive contributions of money from persons; 20 (8) establish offices in the state and otherwise incur expenses incidental 21 to the performance of its duties; 22 (9) appear on behalf of the institute before boards, commissions, 23 departments, or other agencies of municipal, state, or federal government; 24 (10) acquire, hold, lease, sell, or otherwise dispose of property, but such 25 property is limited to that which is necessary to the administrative functioning of the 26 office of the institute; 27 (11) establish and maintain one or more bank accounts for the 28 transaction of the institute's business; 29 (12) prepare market research and product development plans for the 30 promotion of any species of seafood and their by-products that may be harvested in 31 the state and processed for sale;
01 (13) establish an executive board to assist the board in efficiently 02 exercising the board's powers and duties under this chapter; the executive board 03 shall consist of seven members selected from and by the board and shall include 04 at least three members who are engaged in commercial fishing. 05 * Sec. 6. AS 16.51.100 is amended to read: 06 Sec. 16.51.100. DUTIES OF BOARD. The board shall 07 (1) conduct programs of education, research, advertising, or sales 08 promotion designed to accomplish the purposes of this chapter; 09 (2) promote all species of seafood and their by-products that are 10 harvested in the state and processed for sale; 11 (3) develop market-oriented quality specifications for Alaska seafoods 12 to be used in developing a high quality image for Alaska seafood in domestic and 13 world markets, and adopt and distribute recommendations regarding the handling of 14 seafood from the moment of capture to final distribution; 15 (4) prepare market research and product development plans for the 16 promotion of all species of seafood and their by-products that are harvested in the state 17 and processed for sale; 18 (5) submit an annual report to the governor and the legislature 19 describing the activities of the institute; [AND] 20 (6) develop marketing programs based on the "inspection" and 21 "premium quality" seals designed under AS 03.05.026 [,] and use the seals in 22 advertising and promotion efforts of the institute; and 23 (7) establish a salmon marketing committee to administer the 24 domestic salmon marketing program that is funded through the salmon marketing 25 tax under AS 43.76.110 - 43.76.130; the committee shall consist of seven members 26 appointed from among the membership of the board and shall include four 27 members who are engaged in commercial fishing and three members who are 28 seafood processors; the board may not override an action of the committee except 29 by a vote of a three-quarters majority of the board. 30 * Sec. 7. AS 43.76 is amended by adding new sections to read: 31 ARTICLE 2. SALMON MARKETING TAX.
01 Sec. 43.76.110. SALMON MARKETING TAX. A person holding a limited 02 entry permit or interim-use permit under AS 16.43 shall pay a salmon marketing tax 03 at the rate of one percent of the value, as defined in AS 43.75.290, of salmon that the 04 person removes from the state or transfers to a buyer in the state. The buyer shall 05 collect the salmon marketing tax at the time the salmon is acquired by the buyer. 06 Sec. 43.76.120. COLLECTION OF TAX. (a) A buyer who acquires salmon 07 that is subject to a salmon marketing tax imposed by AS 43.76.110 shall collect the 08 salmon marketing tax at the time of purchase and shall remit the total salmon 09 marketing tax collected during each month to the Department of Revenue by the last 10 day of the next month. 11 (b) A buyer who collects the salmon marketing tax shall 12 (1) maintain records of the value of salmon purchased in the state; 13 (2) report to the Department of Revenue by March 1 of each year the 14 total value, as defined in AS 43.75.290, of the salmon that the buyer has acquired 15 during the preceding year. 16 (c) The owner of salmon removed from the state is liable for payment of 17 a salmon marketing tax imposed by AS 43.76.110 if, at the time the salmon is 18 removed from the state, the tax payable on the salmon has not been collected by a 19 buyer. If the owner of the salmon is liable for payment of the salmon marketing tax 20 under this subsection, the owner shall comply with the requirements under (a) and (b) 21 of this section to remit the tax to the Department of Revenue, to maintain records, and 22 to report to the Department of Revenue. 23 (d) The salmon marketing tax collected under this section shall be deposited 24 in the general fund. The legislature may make appropriations based on this revenue to 25 the Department of Commerce and Economic Development for the purpose of 26 supporting the salmon marketing program of the department under AS 16.10.570 - 27 16.10.590 and the domestic salmon marketing program of the Alaska Seafood 28 Marketing Institute. 29 Sec. 43.76.130. DEFINITION. In AS 43.76.110 - 43.76.130, "buyer" means 30 a person who acquires possession of salmon from the person who caught the salmon 31 regardless of whether there is an actual sale of the salmon, but does not include a
01 person engaged solely in interstate transportation of goods for hire. 02 * Sec. 8. TRANSITION FOR MEMBERS OF THE BOARD OF DIRECTORS OF THE 03 ALASKA SEAFOOD MARKETING INSTITUTE. (a) Notwithstanding AS 16.51.020(b), 04 as amended by sec. 3 of this Act, a person who is serving as a member of the board of 05 directors of the Alaska Seafood Marketing Institute on the day before the effective date of sec. 06 3 of this Act may continue to serve as a member of the board for the remainder of the term 07 to which the person was appointed. 08 (b) As soon as practicable after the effective date of sec. 2 of this Act, the governor 09 shall appoint two persons engaged in commercial fishing to the new memberships created on 10 the board of directors of the Alaska Seafood Marketing Institute by secs. 2 and 3 of this Act. 11 Notwithstanding AS 16.51.030, the governor shall appoint one person appointed under this 12 subsection to a two-year term and one person appointed under this subsection to a three-year 13 term. 14 (c) Notwithstanding AS 16.51.020(b), as amended by sec. 3 of this Act, the governor 15 shall appoint persons engaged in commercial fishing to the membership on the board of 16 directors of the Alaska Seafood Marketing Institute that is vacated, after the effective date of 17 sec. 3 of this Act, by the lay person member. If a person is appointed under this subsection 18 to fill a vacancy arising other than by the expiration of a term of office, the person shall be 19 appointed to complete the remainder of the unexpired term. 20 (d) Notwithstanding AS 16.51.020(b), as amended by sec. 3 of this Act, the governor 21 shall appoint persons engaged in commercial fishing to the first memberships on the board of 22 directors of the Alaska Seafood Marketing Institute that are vacated, after the effective date 23 of sec. 3 of this Act, by a seafood processor member who has an annual payroll in the state 24 of $1,000,000 or more and by a seafood processor member who has an annual payroll in the 25 state of $50,000 - $1,000,000. If a person is appointed under this subsection to fill a vacancy 26 arising other than by the expiration of a term of office, the person shall be appointed to 27 complete the remainder of the unexpired term. 28 * Sec. 9. AS 43.76.110, 43.76.120, and 43.76.130 are repealed five years after the effective 29 date of sec. 7 of this Act. 30 * Sec. 10. AS 16.10.570, 16.10.580, 16.10.590, 16.10.599, and AS 16.51.100(7) are 31 repealed six years after the effective date of sec. 7 of this Act.