SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE April 28, 1993 9:05 a.m. MEMBERS PRESENT Senator Randy Phillips, Chairman Senator Robin Taylor, Vice Chairman Senator Loren Leman Senator Al Adams Senator Fred Zharoff MEMBERS ABSENT All Present COMMITTEE CALENDAR 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." HOUSE BILL NO. 71 "An Act relating to the involuntary dissolution of Native corporations; and providing for an effective date." PREVIOUS SENATE COMMITTEE ACTION HB 253 - No previous action to record. HB 71 - No previous action to record. WITNESS REGISTER Representative Mike Navarre State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Offered information on HB 253 ACTION NARRATIVE TAPE 93-26, SIDE A Number 001 The Senate Community & Regional Affairs Committee was called to order by Senator Randy Phillips, Chairman, at 9:05 a.m. He introduced HB 253 (FISHERIES BUSINESS TAXES) as the first order of business. Number 010 REPRESENTATIVE MIKE NAVARRE, representing the House Finance Committee, explained the legislation takes five percent off the top of the shared fisheries business tax for administrative costs. It is recognition that there are administrative costs that go along with some of the programs administered by the state. After the administrative costs are taken off, whatever is left is shared back to the municipalities. Number 033 SENATOR ZHAROFF asked how much money is collected from the raw fish tax. REPRESENTATIVE NAVARRE responded that last year it was approximately $30 million. SENATOR ZHAROFF said of that $30 million, $15 million should go back to the municipalities, but it doesn't work that way. It only goes back to those areas that can identify that they have processing taking place within that area. He concluded that the state already receives in excess of 5 percent of the $30 million that goes into the general fund. REPRESENTATIVE NAVARRE agreed that was true until the statute was changed last year. Under the change, that money that is caught outside of those areas will now be shared back to communities that can show an impact, even if it wasn't the area that the tax was collected in. That cost was $1.5 million to the general fund this year. SENATOR ZHAROFF said some municipalities have suggested giving the municipalities authorization for collecting the entire raw fish tax and then reimburse them for their 50 percent, minus administrative costs. REPRESENTATIVE NAVARRE said if all of the communities that share in the raw fish tax had the ability to do that it might work, but he thinks it is far more efficient to do it this way because the administrative costs that would be encumbered by doing it that way would be far more than the 2.5 percent cost to municipalities under this legislation. Number 168 SENATOR ZHAROFF suggested that the committee should pursue the option of allowing the collection of the raw fish tax by municipalities that have that capability. The municipalities would then get their money right up front instead of having to wait a year to have it appropriated back to them by the legislature. Number 200 After further discussion, it was agreed to hold HB 253 over for one day so that members could take a closer look at it. Number 205 SENATOR RANDY PHILLIPS introduced HB 71 (DISSOLUTION OF NATIVE CORPORATIONS) as the next order of business. SENATOR ADAMS commented that the same legislation has been before the legislature before and he has sponsored it a couple of times, however, it has never made it through both bodies of the legislature. Number 224 SENATOR RANDY PHILLIPS asked for the pleasure of the committee. SENATOR ADAMS moved that HB 71 be passed out of committee with individual recommendations. Hearing no objection, it was so ordered. There being no further business to come before the committee, the meeting was adjourned at 9:20 a.m.