HOUSE BILL NO. 253                                                           
                                                                               
       "An Act amending  the basis for determining  refunds to                 
       local governments under the program of shared fisheries                 
       taxes; and providing for an effective date."                            
                                                                               
  Co-Chair  Larson  explained  that HB  253  requires  that 95                 
  percent of the  shared fisheries taxes be shared  with local                 
  governments.  Currently, 100 percent  of the funds collected                 
  are shared.   Municipalities would  receive 47.5 percent  of                 
  the fisheries tax.                                                           
                                                                               
  Representative Grussendorf  spoke in  opposition of HB  253.                 
  Representative  Martin asserted that  the state's portion is                 
  only  40 percent.   Representative  Grussendorf pointed  out                 
                                                                               
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  that the state support for municipalities has been reduced.                  
                                                                               
  Representative  Navarre felt  that  administrative costs  be                 
  taken of  the top  before  revenues are  divided.   Co-Chair                 
  Larson asked  if 5 percent represents  actual administrative                 
  costs.                                                                       
                                                                               
  PAUL DICK, DEPARTMENT OF REVENUE noted that the  state would                 
  receive approximately $1  million dollars for administrative                 
  costs.    He estimated  that  this  would  be  a  reasonable                 
  reimbursement  for the  state's  administrative costs.   The                 
  state collects the tax from the fish processors.                             
                                                                               
  Representative Navarre observed  that 50 percent of  the net                 
  proceeds  will   still  be   shared.     He  stressed   that                 
  municipalities will only pay 2.5 percent.                                    
                                                                               
  Representative  Navarre  MOVED  to  report  HB  253  out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying  fiscal  note.     Representative   Grussendorf                 
  OBJECTED.                                                                    
                                                                               
  Representative  Hoffman  MOVED  to  delete  "5" percent  and                 
  insert "2.5" percent.  Representative  Navarre OBJECTED.  He                 
  stressed that the cost of state programs must be supported.                  
                                                                               
  A roll call vote was taken on the motion.                                    
                                                                               
  IN FAVOR: Hoffman, Grussendorf                                               
  OPPOSED:  Hanley,  Martin,   Parnell,  Therriault,   Larson,                 
                 Brown, Navarre                                                
                                                                               
  Representative Foster and Co-Chair  MacLean were absent from                 
  the vote.                                                                    
                                                                               
  The MOTION FAILED (2-7).                                                     
                                                                               
  Representative  Navarre  MOVED  to  report  HB  253  out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying  fiscal  note.     Representative   Grussendorf                 
  OBJECTED.  A roll call vote was taken on the motion.                         
                                                                               
  IN FAVOR: Hanley,  Martin,   Parnell,  Therriault,   Larson,                 
                 Brown, Navarre                                                
  OPPOSED:  Hoffman, Grussendorf                                               
                                                                               
  The MOTION PASSED (7-2).                                                     
                                                                               
  Representative Foster and Co-Chair MacLean  were absent from                 
  the vote.                                                                    
                                                                               
  HB  253  was reported  out  of  Committee with  a  "do pass"                 
                                                                               
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  recommendation  and  with  a  fiscal   impact  note  by  the                 
  Department of Revenue.