03/24/2003 03:39 PM House FIN

HOUSE BILL NO. 104                                                                                                            
                                                                                                                                
     "An Act relating to payment of the fisheries business                                                                      
     tax and to security for collection of the fisheries                                                                        
     business tax."                                                                                                             
                                                                                                                                
SENATOR  GARY  STEVENS,  SALMON   TASK  FORCE,  testified  in                                                                   
support of  the bill. He pointed  out that the  previous bill                                                                   
(HB 90) was  modeled after a successful bill,  which assisted                                                                   
the  pollock  industry.    He expressed  his  hope  that  the                                                                   
current  bill  would have  a  similar  affect on  the  salmon                                                                   
industry.                                                                                                                       
                                                                                                                                
Senator G.  Stevens explained that  HB 104 also  pertained to                                                                   
the processing  industry.   He noted  that often the  smaller                                                                   
processors  did  not have  the  financial  depth to  pay  tax                                                                   
liabilities  on an  annual basis.    He noted  that the  bill                                                                   
allowed taxes to be paid on a monthly basis.                                                                                    
                                                                                                                                
Senator  G. Stevens  indicated that  larger processors  might                                                                   
choose to  continue to  pay their taxes  annually.   He noted                                                                   
that participants  would be required  to file a bond  for $50                                                                   
thousand,  or demonstrate  lienable property  valued at  $100                                                                   
thousand.    He  speculated  that  it  might  only  be  taken                                                                   
advantage  of  by  a  handful  of  smaller  processors.    He                                                                   
summarized  that  the  bill  allowed  smaller  processors  to                                                                   
expand development.                                                                                                             
                                                                                                                                
Representative  Chenault  expressed   concern  on  behalf  of                                                                   
processors in his area.  He asked  about the accessibility of                                                                   
a $50 thousand bond.                                                                                                            
                                                                                                                                
Senator  Stevens  responded  that  the  legislation  did  not                                                                   
prevent processors  to continue  with their current  business                                                                   
practices,   but   merely   provided    them   with   another                                                                   
opportunity.                                                                                                                    
                                                                                                                                
Ms. Sutton noted  that a Salmon Task Force member  who owns a                                                                   
salmon  processing center  in Naknek  viewed the  bill as  an                                                                   
opportunity that would benefit his business management.                                                                         
                                                                                                                                
Representative  Foster   MOVED  to  report  CSHB104   out  of                                                                   
Committee with the accompanying fiscal note                                                                                     
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
CSHB  104 (FIN)  was REPORTED  out  of Committee  with a  "do                                                                   
pass"  recommendation and  with  one new  fiscal impact  note                                                                   
from the Department of Revenue.