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HCS CSSB 273(FIN): "An Act amending the size, membership, and powers of the board of directors of the Alaska Seafood Marketing Institute and making a corresponding change in the quorum requirement; authorizing the establishment of the seafood marketing assessment at a rate of 0.5 percent or 0.6 percent of the value of seafood products produced; providing for an election to retain, terminate, or increase the seafood marketing assessment; providing for the repeal of the salmon marketing tax and provisions related to the salmon marketing tax; and providing for an effective date."

00 HOUSE CS FOR CS FOR SENATE BILL NO. 273(FIN) 01 "An Act amending the size, membership, and powers of the board of directors of the 02 Alaska Seafood Marketing Institute and making a corresponding change in the quorum 03 requirement; authorizing the establishment of the seafood marketing assessment at a 04 rate of 0.5 percent or 0.6 percent of the value of seafood products produced; providing 05 for an election to retain, terminate, or increase the seafood marketing assessment; 06 providing for the repeal of the salmon marketing tax and provisions related to the 07 salmon marketing tax; and providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 16.43.160(e)(2)(A)(ix) is amended to read: 10 (ix) Department of Revenue - fisheries business tax 11 program, fishery resource landing tax program, salmon enhancement 12 tax program, [SALMON MARKETING TAX PROGRAM,] and dive 13 fishery management assessment program;

01 * Sec. 2. AS 16.51.020(a) is amended to read: 02 (a) The governing body of the institute is a board of directors. The board 03 consists of seven [25] voting members appointed by the governor. In making 04 appointments to the board, the governor shall consider, but need not appoint, nominees 05 presented by persons engaged in fish processing, the financing of fish processing, or 06 commercial fishing. 07 * Sec. 3. AS 16.51.020(a) is amended to read: 08 (a) The governing body of the institute is a board of directors. The board 09 consists of nine [SEVEN] voting members appointed by the governor. In making 10 appointments to the board, the governor shall consider, but need not appoint, nominees 11 presented by persons engaged in fish processing, the financing of fish processing, or 12 commercial fishing. 13 * Sec. 4. AS 16.51.020(b) is amended to read: 14 (b) Five [TWELVE] members of the board shall be seafood processors: four 15 [EIGHT] of the seafood processors must have an annual payroll in the state of more 16 than $2,500,000; one [FOUR] of the seafood processors must have an annual payroll 17 in the state of $50,000 - $2,500,000. Two [TWELVE] members of the board must be 18 engaged in commercial fishing. [THE GOVERNOR, TO THE EXTENT 19 PRACTICABLE, SHALL APPOINT AS COMMERCIAL FISHING MEMBERS OF 20 THE BOARD PERSONS ENGAGED IN COMMERCIAL FISHING IN A FISHERY 21 MANAGEMENT REGION OF THE STATE IN THE SAME PROPORTION THAT 22 THE REGION CONTRIBUTES, OR IS EXPECTED TO CONTRIBUTE DURING 23 THE NEXT YEAR, TO THE TOTAL SALMON MARKETING TAX COLLECTED 24 UNDER AS 43.76.110 - 43.76.130. ONE MEMBER OF THE BOARD SHALL BE A 25 LAY PERSON SELECTED BY THE GOVERNOR.] 26 * Sec. 5. AS 16.51.020(b) is amended to read: 27 (b) Five members of the board shall be seafood processors: four of the seafood 28 processors must have an annual payroll in the state of more than $2,500,000; one of 29 the seafood processors must have an annual payroll in the state of $50,000 - 30 $2,500,000. Four [TWO] members of the board must be engaged in commercial 31 fishing.

01 * Sec. 6. AS 16.51.050 is amended to read: 02 Sec. 16.51.050. Quorum. Four [FOURTEEN] members of the board 03 appointed under AS 16.51.020 constitute a quorum for the transaction of business and 04 the exercise of the powers and duties of the board. 05 * Sec. 7. AS 16.51.050 is amended to read: 06 Sec. 16.51.050. Quorum. Five [FOUR] 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. 8. AS 16.51.120(a) is amended to read: 10 (a) A seafood marketing assessment shall be levied on the value of seafood 11 products produced in Alaska as provided in (b), (c), (d), [OR] (e), (h), or (i) of this 12 section if an election is held under AS 16.51.140 at which the assessment is approved 13 by eligible processors who together produce at least 51 percent of the value of seafood 14 products produced in Alaska in the calendar year. 15 * Sec. 9. AS 16.51.120(f) is amended to read: 16 (f) An election under (a) of this section shall be held if the proposed election 17 for the levying of an assessment under (b), (c), (d), [OR] (e), (h), or (i) of this section 18 is approved by a majority of the whole membership of the board at a regularly 19 scheduled meeting. 20 * Sec. 10. AS 16.51.120(g) is amended to read: 21 (g) Notwithstanding (a) - (e), (h), and (i) of this section and AS 16.51.150(c), 22 a processor is not subject to, or liable for payment of, an assessment under this section 23 on the value of the seafood products produced in Alaska if the value of seafood 24 products produced in Alaska by the processor is less than $50,000 in a calendar year. 25 This subsection does not exempt a processor from liability for payment of taxes 26 imposed under AS 43.75 or AS 43.77. 27 * Sec. 11. AS 16.51.120 is amended by adding new subsections to read: 28 (h) Each processor shall pay a seafood marketing assessment of .5 percent of 29 the value of seafood products produced in Alaska by the processor. 30 (i) Each processor shall pay a seafood marketing assessment of .6 percent of 31 the value of seafood products produced in Alaska by the processor.

01 * Sec. 12. AS 16.51.130(a) is amended to read: 02 (a) A seafood marketing assessment levied under AS 16.51.120(b), (c), (d), 03 [OR] (e), (h), or (i) shall be terminated by the commissioner of revenue if 04 [(1)] an election is held under AS 16.51.140 in which the termination 05 is approved by eligible processors who together produce at least 51 percent of the total 06 value of seafood products produced in Alaska during the calendar year [; OR 07 (2) THE BOARD, AT A REGULARLY SCHEDULED MEETING, 08 ADOPTS A RESOLUTION APPROVED BY TWO-THIRDS OF THE VOTING 09 MEMBERSHIP OF THE BOARD REQUESTING THE COMMISSIONER OF 10 REVENUE TO TERMINATE THE ASSESSMENT]. 11 * Sec. 13. AS 16.51.130(b) is amended to read: 12 (b) An election under (a) [(a)(1)] of this section shall be held if 13 (1) the proposed election for the termination of the assessment is 14 approved by a majority of the whole membership of the board at a regularly scheduled 15 meeting; or 16 (2) a petition is presented to the director of elections requesting 17 termination of the assessment by eligible processors who together produce at least 25 18 percent of the total value of seafood products produced in Alaska during the calendar 19 year. 20 * Sec. 14. AS 16.51.140(b) is amended to read: 21 (b) In conducting the election under this section, the institute and the director 22 of elections shall adopt the following procedures: 23 (1) the proposed levy or termination of the assessment shall be adopted 24 at a regularly scheduled meeting of the board of directors of the institute held not 25 less than 60 days before the date on which the ballots must be postmarked to be 26 counted unless the election is for termination of the assessment and has been initiated 27 by a petition under AS 16.51.130(b)(2); 28 (2) the institute shall hold at least one meeting, not less than 30 days 29 before the date on which ballots must be postmarked to be counted, to explain the 30 reason for the proposed seafood marketing assessment or termination of the 31 assessment and to explain the voting procedure to be used in the election; the institute

01 shall provide notice of the meeting by 02 (A) mailing the notice to each eligible processor; and 03 (B) publishing the notice in at least one newspaper of general 04 circulation in each region of the state at least two weeks before the meeting; 05 (3) the director of elections [INSTITUTE] shall mail ballots to each 06 eligible processor not more than 45 days before the date specified as the date ballots 07 must be postmarked; 08 (4) the ballot must 09 (A) indicate whether the assessment is to be levied under 10 AS 16.51.120(b), (c), (d), [OR] (e), (h), or (i) and must state the percentage of 11 the assessment; 12 (B) indicate the effective date of the levy of the assessment or 13 termination of the assessment; 14 (C) ask whether the assessment shall be levied or, if the 15 election is to terminate the assessment, whether the assessment shall be 16 terminated; 17 (5) the ballots shall be returned by mail to the director of elections 18 and shall be counted by the director of elections or a representative. 19 * Sec. 15. AS 37.05.146(c)(25) is amended to read: 20 (25) receipts from the seafood marketing assessment under 21 AS 16.51.120 - 16.51.170 [, THE SALMON MARKETING TAX UNDER 22 AS 43.76.110 - 43.76.130,] and [OTHER] receipts of the Alaska Seafood Marketing 23 Institute; 24 * Sec. 16. REPEAL OF SALMON MARKETING TAX. (a) Section 9, ch. 55, SLA 1993, 25 as amended by sec. 1, ch. 111, SLA 1998, and sec. 3, ch. 136, SLA 2002, is amended to read: 26 Sec. 9. AS 43.76.110, 43.76.120, and 43.76.130 are repealed December 31, 27 2004 [JUNE 30, 2008]. 28 * Sec. 17. REPEAL OF MISCELLANEOUS PROVISIONS RELATED TO THE 29 SALMON MARKETING TAX. Sections 3, 8(c), and 12, ch. 55, SLA 1993, are repealed. 30 * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to 31 read:

01 TRANSITION FOR MEMBERS OF THE BOARD OF DIRECTORS OF THE 02 ALASKA SEAFOOD MARKETING INSTITUTE. (a) Notwithstanding AS 16.51.030, the 03 terms of office of all persons who are serving as members of the board of directors of the 04 Alaska Seafood Marketing Institute on the day before the effective date of sec. 2 of this Act 05 expire on the effective date of sec. 2 of this Act. 06 (b) The governor shall appoint qualified persons to serve on the board of directors of 07 the Alaska Seafood Marketing Institute, as restructured under AS 16.51.020, as amended by 08 sec. 2 of this Act, as soon as practicable on or after the effective date of sec. 2 of this Act. 09 The governor shall appoint persons to initial terms in accordance with AS 39.05.055(5). To 10 the extent possible, the governor shall maintain staggered terms for members of each class of 11 board members. 12 * Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 APPOINTMENT OF MEMBERS OF THE BOARD OF DIRECTORS OF THE 15 ALASKA SEAFOOD MARKETING INSTITUTE FOLLOWING THE ELECTION HELD 16 UNDER SECTION 20 OF THIS ACT. The governor shall appoint qualified persons to fill 17 the two commercial fishermen memberships created on the board of directors of the Alaska 18 Seafood Marketing Institute under AS 16.51.020, as amended by sec. 3 of this Act, as soon as 19 practicable on or after the effective date of sec. 3 of this Act. The governor shall appoint the 20 two commercial fisherman members to initial terms of one, two, or three years, as the 21 governor determines appropriate to provide for staggered terms for the commercial fishermen 22 members of the board. 23 * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 SEAFOOD MARKETING ASSESSMENT; ELECTION. (a) Notwithstanding 26 AS 16.51.120 - 16.51.170, the seafood marketing assessment that is in effect on the day 27 before the effective date of this section shall remain in effect until December 31, 2004. After 28 December 31, 2004, a levy of the seafood marketing assessment under AS 16.51.120 shall be 29 retained, amended, or terminated in accordance with the results of the election held under this 30 section by the Alaska Seafood Marketing Institute. 31 (b) Notwithstanding AS 16.51.120 - 16.51.140, the Alaska Seafood Marketing

01 Institute shall conduct an election under this section for the retention, termination, and 02 amendment of the levy of the seafood marketing assessment under AS 16.51.120. 03 (c) In conducting the election under this section, the Alaska Seafood Marketing 04 Institute and the director of elections shall adopt the following procedures: 05 (1) by August 1, 2004, the director of elections shall approve 06 (A) the notice of the election to be published by the institute; 07 (B) the ballot to be used in the election; and 08 (C) the registration and voting procedures for the election; 09 (2) the institute shall hold at least one meeting before September 1, 2004, to 10 explain the reason for the election and to explain the voting procedure to be used in the 11 election; the institute shall provide notice of the meeting by 12 (A) mailing the notice of the meeting to each eligible processor; and 13 (B) publishing the notice in at least one newspaper of general 14 circulation in each region of the state at least two weeks before the meeting; 15 (3) the director of elections shall mail ballots to each eligible processor by 16 September 15, 2004; 17 (4) the ballot must ask two questions as follows: 18 (A) the first ballot question must ask whether the seafood marketing 19 assessment shall be retained; the ballot question must be written so that a yes vote is 20 for retention of the levy of the seafood marketing assessment and a no vote is for 21 termination of the levy of the seafood marketing assessment; 22 (B) the second ballot question must ask whether the seafood marketing 23 assessment shall be levied under AS 16.51.120(h) at a rate of .5 percent of the value of 24 seafood products produced in Alaska by a processor; the ballot question must be 25 written so that a yes vote is for approval of the levy of the assessment under 26 AS 16.51.120(h) and a no vote is for retention of the levy under AS 16.51.120 that is 27 in effect on the day before the effective date of this section; the ballot must indicate 28 that the effective date of the levy of the assessment under AS 16.51.120(h) is 29 January 1, 2005, if the levy is approved; 30 (5) the ballots must be postmarked on or before October 1, 2004, and received 31 by the director of elections on or before October 15, 2004, to be counted in the election;

01 (6) the ballots shall be returned by mail; 02 (7) the ballots shall be counted by the director of elections or the director's 03 representative; the director or the director's representative, with the assistance of the 04 commissioner of revenue, shall first determine whether the retention of the levy of the seafood 05 marketing assessment is approved by eligible processors who together produce at least 51 06 percent of the value of seafood products produced in Alaska in the previous calendar year; 07 only if the retention of the levy of the assessment is approved, the director or the director's 08 representative, with the assistance of the commissioner of revenue, shall determine the results 09 of the voting on the second ballot question; 10 (8) if the retention of the levy of the seafood marketing assessment under 11 AS 16.51.120 is not approved by eligible processors who together produce at least 51 percent 12 of the value of seafood products produced in Alaska in the previous calendar year, the levy of 13 the assessment is terminated December 31, 2004; 14 (9) if the retention of the levy of the seafood marketing assessment under 15 AS 16.51.120 is approved by eligible processors who together produce at least 51 percent of 16 the value of seafood products produced in Alaska in the previous calendar year and if the levy 17 of the seafood marketing assessment under AS 16.51.120(h) is approved by eligible 18 processors who together produce at least 51 percent of the value of seafood products produced 19 in Alaska in the previous calendar year, the levy of the seafood marketing assessment under 20 AS 16.51.120(h) takes effect January 1, 2005; and 21 (10) if the retention of the levy of the seafood marketing assessment under 22 AS 16.51.120 is approved by eligible processors who together produce at least 51 percent of 23 the value of seafood products produced in Alaska in the previous calendar year and if the levy 24 of the seafood marketing assessment under AS 16.51.120(h) is not approved by eligible 25 processors who together produce at least 51 percent of the value of seafood products produced 26 in Alaska in the previous calendar year, the levy under AS 16.51.120 that is in effect on the 27 day before the effective date of this section remains in effect until amended or terminated 28 under AS 16.51.120 - 16.51.140. 29 (d) By November 1, 2004, the director of elections shall certify the results of an 30 election under this section if the director determines that the requirements of (c) of this section 31 have been satisfied. The director shall provide the certified results of the election to the

01 commissioner of revenue, the Alaska Seafood Marketing Institute, the lieutenant governor, 02 and the revisor of statutes. 03 (e) Following the election conducted under this section, a seafood marketing 04 assessment may be approved, amended, or terminated in accordance with the procedures set 05 out under AS 16.51.120 - 16.51.140, as amended by secs. 8 - 14 of this Act and under 06 AS 16.51.150. 07 (f) For purposes of AS 16.51.120(a), the election held under this section shall be 08 considered to be an election held under AS 16.51.140. 09 * Sec. 21. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 TERMINATION OF THE SEAFOOD MARKETING ASSESSMENT. 12 Notwithstanding AS 16.51.120 - 16.51.140, the seafood marketing assessment levied under 13 AS 16.51.120 that is in effect on the day before the effective date of sec. 20 of this Act is 14 terminated December 31, 2004. 15 * Sec. 22. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 CONTINGENT EFFECT -- TERMINATION OF SEAFOOD MARKETING 18 ASSESSMENT. (a) Section 21 of this Act takes effect only if the director of elections 19 certifies that the retention of the levy of the seafood marketing assessment under 20 AS 16.51.120 is not approved by eligible processors who together produce at least 51 percent 21 of the value of seafood products produced in Alaska in the previous calendar year at the 22 election held under sec. 20 of this Act. 23 (b) Sections 3, 5, 7, and 19 of this Act take effect if the director of elections certifies 24 that the retention of the levy of the seafood marketing assessment under AS 16.51.120 was 25 not approved by eligible processors who together produce at least 51 percent of the value of 26 seafood products produced in Alaska in the previous calendar year at the election held under 27 sec. 20 of this Act. 28 * Sec. 23. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 CONTINGENT EFFECT -- APPROVAL OF LEVY UNDER AS 16.51.120(h). (a) 31 Section 16 of this Act takes effect only if the director of elections certifies that the levy of the

01 seafood marketing assessment under AS 16.51.120(h) is approved by eligible processors who 02 together produce at least 51 percent of the value of seafood products produced in Alaska in 03 the previous calendar year at the election held under sec. 20 of this Act. 04 (b) Sections 1 and 15 of this Act take effect only if the director of elections certifies 05 that the levy of the seafood marketing assessment under AS 16.51.120(h) is approved by 06 eligible processors who together produce at least 51 percent of the value of seafood products 07 produced in Alaska in the previous calendar year at the election held under sec. 20 of this Act. 08 * Sec. 24. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 CONTINGENT EFFECT -- DISAPPROVAL OF LEVY UNDER AS 16.51.120(h). 11 Sections 3, 5, 7, and 19 of this Act take effect if the director of elections certifies that the levy 12 of a seafood marketing assessment under AS 16.51.120(h) was not approved by eligible 13 processors who together produce at least 51 percent of the value of seafood products produced 14 in Alaska in the previous calendar year at the election held under sec. 20 of this Act. 15 * Sec. 25. If sec. 16 of this Act takes effect under sec. 23 of this Act, it takes effect on the 16 day after the director of elections certifies the result of the election held under sec. 20 of this 17 Act. 18 * Sec. 26. If secs. 1 and 15 of this Act take effect under sec. 23 of this Act, they take effect 19 December 31, 2004. 20 * Sec. 27. If secs. 3, 5, 7, and 19 of this Act take effect under sec. 22 or 24 of this Act, they 21 take effect on the day after the director of elections certifies the result of the election held 22 under sec. 20 of this Act. 23 * Sec. 28. If sec. 21 of this Act takes effect under sec. 22 of this Act, it takes effect on the 24 day after the director of elections certifies the result of the election held under sec. 20 of this 25 Act. 26 * Sec. 29. Except as provided in secs. 25 - 28 of this Act, this Act takes effect immediately 27 under AS 01.10.070(c).