HB 104-PAYMENT OF FISHERY BUSINESS TAX CHAIR SEATON announced that the next order of business would be HOUSE BILL NO. 104, "An Act relating to payment of the fisheries business tax and to security for collection of the fisheries business tax." Number 2906 SENATOR GARY STEVENS, Alaska State Legislature; Joint Legislative Salmon Industry Task Force, sponsor of [HB 104], noted that this is a bill that would help to develop the economy of the fishing industry. He said the bill is geared to attract the small processors and to hopefully expand processing operations in Alaska. He pointed out that the fiscal impacts are minimal. He mentioned that this is an issue of investment and of economic development and is geared toward attracting new business development. He added that all of the penalties that are currently in the law will continue to apply. He said the department [Department of Revenue] has looked at this closely and has indicated that out of some 500 licenses, only about one dozen would opt for this; so this is a small piece that may help small processors. He added that large processors would probably not be interested in paying their taxes on a monthly basis because they would rather keep their money while they can and pay it when they have to. Number 2836 REPRESENTATIVE KOTT moved to adopt the proposed committee substitute (CS) for HB 104, Version 23-LS0533\H, Utermohle, 3/3/03, for the purposes of discussion. There being no objection, Version H was before the committee. The committee took a brief at-ease from 9:40 to 9:42 a.m. SENATOR GARY STEVENS reiterated that big processors probably would not take advantage of this, but the smaller processors operating on the edge, without large amounts of money or property to put up for liens, might take advantage of this option. CHAIR SEATON asked if this bill mirrored a bill that was passed last year - a bill that allowed people to continue to export fish that wasn't processed within the state. SENATOR GARY STEVENS confirmed that this was the case. Number 2750 CHRIS GARCIA, Fisherman, Cook Inlet Fishermen's Fund, said he thought the bill was good but he was confused by a few things. He referred to page 1, line 8, which read "an applicant that does not process a fishery resource in the state may elect to avoid the requirements of (a) and (b) of this section". He asked why an applicant would apply if he/she was not going to process fish. CHAIR SEATON replied that the language was from a bill which passed last year that allowed people who didn't process fish in the state to use this new provision of bonding and paying by the 15th of the month. Number 2750 MR. GARCIA said he was definitely not opposed to the bill but questioned the redundancy of line 8 on page 1. SENATOR GARY STEVENS said that the language, "that does not process a fishery resource in the state", was being deleted. MR. GARCIA said that solves his question. Number 2630 REPRESENTATIVE WILSON moved to report CSHB 104, Version 23- LS0533\H, Utermohle, 3/3/03, out of committee with individual recommendations and the accompanying fiscal note. There being no objection, CSHB 104(FSH) was reported from the House Special Committee on Fisheries.