SENATE BILL NO. 177 An Act relating to salmon marketing, a salmon marketing tax, and the Alaska Seafood Marketing Institute; and providing for an effective date. Co-chair Pearce directed that SB 177 be brought on for discussion and noted that it was introduced by the Senate Finance Committee. It relates to an additional marketing tax in an effort to make the Alaska Seafood Marketing Institute fully self-supporting. The legislation is also tied to the Senate version of the operating budget. Co- chair Pearce voiced her further understanding that general fund moneys for ASMI were originally deleted from the Governor's budget. The Dept. of Commerce subsequently requested that they be reinstated while the department works with fishing groups in an effort to make ASMI self- supporting. The general fund dollars were thus returned to the budget with the expectation that something will happen within the year. KIM ELTON, Executive Director, Alaska Seafood Marketing Institute, came before committee. He said that the bill would establish a 1% tax on salmon processors. The tax would flow to the general fund for legislative reappropriation back to ASMI. At least 90% of the funds would be used for domestic marketing of salmon. Up to 10% would establish a market price information service for salmon fishermen. The legislation also increases the ASMI board of directors from eighteen to twenty-five to establish equity (12 fishermen and 12 processors). The bill also includes provisions for a public member on the board. Since the effective date is July 1, 1993, most of the 1993 salmon fishing season would be covered by the bill. Expected revenue is estimated at between $3 to $5.7 million. Mr. Elton concluded his remarks by observing that the impetus for the bill comes from the previous legislature. It has substantially evolved since that time due, largely, to the efforts of individuals in the salmon harvesting community. He advised that he was comfortable with the legislation and voiced his understanding that the United Fishermen of Alaska are also. He acknowledged that the industry is not completely united behind the tax bill. Senator Kelly asked how passage or failure to pass the bill would impact the budget. Co-chair Pearce explained that the Senate budget for the Dept. of Commerce and Economic Development is predicated upon passage. It replaces approximately $900.0 in general funds with revenues from the proposed tax. The House did not proceed in that manner. A final decision on funding will be made at conference. Similar House legislation is presently in House Rules. Co-chair Pearce directed that SB 177 be HELD in committee for additional review. ADJOURNMENT The meeting was adjourned at approximately 3:50 p.m.