00HOUSE BILL NO. 140                                                                                                      
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.  If a processor who has filed a bond under this                                
12 subsection processes more than 30,000 pounds of fish in a year, the processor shall,                                    
13 within seven days from the day on which the 30,000 pound threshold is exceeded,                                         
14 notify the commissioner and comply with (b) of this section.  If a processor who has                                    
15 filed a bond under this subsection processes more than 30,000 pounds of fish in a year,                                 
16 and does not comply with (b) of this section within seven days from the day on which                                    
17 the 30,000 pound threshold is exceeded, the processor shall cease processing fish until                                 
18 a bond has been filed under (b) of this section.  In lieu of the surety bond, the fish                                  
19 processor may file with the commissioner a cash deposit or other negotiable security                                    
20 acceptable to the commissioner in the amount specified for the bond.  If no claim is                                    
21 asserted under this section within two years from the date the bond, cash deposit, or                                   
22 other security is filed, the term of the bond, cash deposit, or other security shall be two                             
23 years; if a claim has been asserted within two years, the term of the bond, cash                                        
24 deposit, or other security shall be for five years.