1997-04-22                     House Journal                      Page 1265
HB 258                                                                       
HOUSE BILL NO. 258 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
An Act relating to access by the Department of Environmental                  
Conservation and the Department of Fish and Game to confidential               
tax records for fisheries resources prepared or kept by the                    
Department of Revenue under AS 43.75.                                          
                                                                               
was read the first time and referred to the House Special Committee            
on Fisheries and the Resources and Finance Committees.                         
                                                                               
The following fiscal notes apply:                                              
                                                                               
Zero fiscal note, Dept. of Fish & Game, 4/22/97                                
Zero fiscal note, Dept. of Revenue, 4/22/97                                    
                                                                               
The Governor's transmittal letter, dated April 18, 1997, appears below:        
                                                                               
Dear Speaker Phillips:                                                         
                                                                               
As part of my Marketing Alaska initiative, the seafood industry pointed        
out that current state confidentiality laws surrounding fisheries tax          
records are actually a burden because they prohibit the sharing of             
information between state agencies which need the same records.                
Rather than reporting these numbers once, the industry must report two         

1997-04-22                     House Journal                      Page 1266
HB 258                                                                       
or three times on different forms.  This bill addresses this wasteful          
effort by allowing appropriate state agencies to share tax reporting           
information while ensuring confidentiality is not breached.                    
                                                                               
                                                                               
Seafood processors, certain fishermen and others currently must report         
to the Department of Revenue the value of the fisheries resources              
processed, taken, purchased, or otherwise acquired during the license          
year.  This information is confidential.  The Department of Fish and           
Game independently collects product value figures as part of its               
reporting requirements for seafood processors.  In addition, seafood           
processors have asked the Department of Environmental Conservation             
to base its sliding scale of permit fees on product value.  The current        
confidentiality requirement  prevents exchanges of this information            
between the Department of Revenue and the other two departments.               
The result is inconsistent data, inefficient operations, and complicated       
and duplicative reporting requirements for industry.                           
                                                                               
                                                                               
The Marketing Alaska Seafood Sector Group recommended agency                   
databases be consolidated in order to streamline reporting requirements.       
This would allow access by the Department of Environmental                     
Conservation and the Department of Fish and Game to a common                   
Department of Revenue database.  Any personnel granted access to this          
tax information would be subject to the same confidentiality                   
requirements as the Department of Revenue.  At the same time, the bill         
promotes a reciprocal exchange of information with the Department of           
Fish and Game, whose confidential information is already accessible            
by the Department of Revenue.                                                  
                                                                               
                                                                               
This bill represents a logical solution to a current burden for the            
seafood industry.  I urge your prompt and favorable action on this             
measure.                                                                       
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor