03/17/2005 01:30 PM Senate LABOR & COMMERCE

            SB 124-FISHERIES BUSINESS LICENSE; BOND                                                                         
                                                                                                                              
CHAIR CON BUNDE announced SB 124 to be up for consideration.                                                                    
                                                                                                                                
SENATOR SEEKINS  moved to adopt  CSSB 124(L&C), version  Y. There                                                               
were no objections and it was so ordered.                                                                                       
                                                                                                                                
CHUCK  HARLAMERT, Juneau  Section Chief,  Department of  Revenue,                                                               
explained that  the CS  adds to  the list  of obligations  that a                                                               
processor must be current on in  order to obtain a license. A new                                                               
section 2 on  page 3, line 24, covers the  security that needs to                                                               
be provided for estimated tax.  He explained that fish processors                                                               
don't have to pay their tax  until March 31 of the year following                                                               
the year they  incurred it. In exchange for  that privilege, they                                                               
have to provide  security of some sort to guarantee  that it will                                                               
be paid.                                                                                                                        
                                                                                                                                
The processors  that operate between  January 1 and March  31 end                                                               
up  in a  position  of having  to supply  security  to cover  two                                                               
years-worth  of  tax  and this  can  present  difficulties.  This                                                               
amendment  allows them  to use  the same  security simultaneously                                                               
for the taxes in both periods.                                                                                                  
                                                                                                                                
1:40:41 PM                                                                                                                    
SENATOR DAVIS arrived.                                                                                                          
                                                                                                                                
1:41:00 PM                                                                                                                    
A third change on page 6,  line 13, says, "The commissioner shall                                                               
waive the  filing of a  performance bond under  this section...."                                                               
The  original bill  used the  term "may",  which left  discretion                                                               
with the commissioner on whether  or not to accept real property.                                                               
That  is thought  to be  a restriction  above and  beyond current                                                               
rules.                                                                                                                          
                                                                                                                                
CHAIR BUNDE  thanked him  for his  comments and  established that                                                               
there was no further discussion.                                                                                                
                                                                                                                                
1:42:55 PM                                                                                                                    
SENATOR SEEKINS  moved CSSB 124(L&C),  version Y,  from committee                                                               
with  individual   recommendations  and  attached   fiscal  note.                                                               
Senators Davis,  Ellis, Seekins  and Chair  Bunde voted  yea; and                                                               
CSSB 124(L&C) moved from committee.