Bill Summary – FastDemocracy

State of Alaska
                                                            Fiscal Note
                                                                                             Bill Version:                    SCS CSHB 41(FIN)
 2022 Legislative Session
                                                                                             Fiscal Note Number:              9
                                                                                             (S) Publish Date:                2/1/2022
 Identifier:       HB041CS(FIN)-DOR-TAX-1-28-22                                Department:       Department of Revenue
 Title:            SHELLFISH PROJECTS; HATCHERIES; FEES                        Appropriation: Taxation and Treasury
 Sponsor:          ORTIZ                                                       Allocation:       Tax Division
 Requester: (S) Finance                                                        OMB Component Number:              2476
 Expenditures/Revenues
 Note: Amounts do not include inflation unless otherwise noted below.                                                               (Thousands of Dollars)
                                                 Included in
                                    FY2023       Governor's
                                Appropriation      FY2023                                           Out-Year Cost Estimates
                                  Requested       Request
 OPERATING EXPENDITURES               FY 2023        FY 2023       FY 2024                     FY 2025           FY 2026            FY 2027         FY 2028
 Personal Services
 Travel
 Services
 Commodities
 Capital Outlay
 Grants & Benefits
 Miscellaneous
 Total Operating                            0.0           0.0          0.0                           0.0                0.0              0.0              0.0
 Fund Source (Operating Only)
 None
 Total                                            0.0             0.0              0.0               0.0                0.0              0.0              0.0
 Positions
 Full-time
 Part-time
 Temporary
 Change in Revenues
 None                                              ***                             ***               ***                ***              ***               ***
 Total                                             ***            0.0              ***               ***                ***              ***               ***
 Estimated SUPPLEMENTAL (FY2022) cost:                                   0.0             (separate supplemental appropriation required)
 Estimated CAPITAL (FY2023) cost:                                        0.0             (separate capital appropriation required)
 Does the bill create or modify a new fund or account?       No
 (Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
 ASSOCIATED REGULATIONS
 Does the bill direct, or will the bill result in, regulation changes adopted by your agency?                Yes
 If yes, by what date are the regulations to be adopted, amended or repealed?                                02/28/23
 Why this fiscal note differs from previous version/comments:
 Updated to account for current regulations project setting an assessment rate for a fishery for 2022.
 Prepared By:              Nicole Reynolds, Deputy Director and Dan Stickel, Chief Economist                       Phone:         (907)269-6736
 Division:                 Tax Division
                                                                   REPORT                                          Date:          01/28/2022 04:30 PM
                                                                                 ED
                                                                    SFC 02/0 OUT OF
 Approved By:              Eric DeMoulin, Administrative Services Director                                         Date:          01/28/22
 Agency:                   Department of Revenue
                                                                                  1/2022
Printed 2/1/2022                                                     Page 1 of 2                                                           Control Code: pqtFZ
                                                                                                      SCS CSHB 41(FIN) - Fiscal Note 9
                                                  FISCAL NOTE ANALYSIS
STATE OF ALASKA                                                                   BILL NO. CSHB 41
2022 LEGISLATIVE SESSION
Analysis
   Background
   This bill provides for a common property shellfish fishery classification in a special harvest area, and specifies fishermen
   participating in this fishery would be subject to the payment of an assessment either on the
   projected value of the shellfish or on the pounds of shellfish harvested.
   Cost recovery, when implemented under the common property fishery, imposes an assessment on all commercial
   fishermen participating in the common property fishery. The assessment is to be collected by the Department of Revenue
   (DOR) Tax Division and deposited into the general fund for appropriation back to the hatchery permit holder. Funds may
   also be appropriated to DOR for costs incurred to implement and administer the assessment.
   New AS 16.12.090(d) provides that DOR may, by March 1 of each year, set the assessment rate by regulation and in
   consultation with the Department of Commerce, Community, and Economic Development (DCCED), the permit holder,
   and the affected commercial fishermen. The statute directs that the assessment shall cover debt service, operating
   expenses, and a reserve fund.
   In accordance with statute, it is anticipated that in setting a common property fishery assessment DOR will annually:
   1. Analyze financial data to establish or verify historical operating costs;
   2. Review forecasted hatchery returns (pounds) and price information for the upcoming season from various sources to
   determine market trends;
   3. Promulgate annual regulations for the assessment; and
   4. Provide filing instructions, filing, and payment of the Common Property Fishery through Revenue Online.
   The common property shellfish fishery assessment provisions of this bill would take effect 90 days after the bill is signed
   into law since this bll does not provide for another effective date for these provisions.
   Revenue Impact
   The revenue impact of this bill cannot be determined at this time.
   Previously, DOR had established a common property fishery assessment for one fishery in the calendar years 2012 2016,
   and the Department is in the process of setting a rate by regulation for another fishery for calendar year 2022. Based on
   the projection by the Department of Fish and Game (DFG) of two to three applications per year, the revenue impact of this
   proposed legislation is expected to be minimal. All revenue would be considered "Other Restricted" as it is intended for
   appropriation back to the hatchery permit holder.
   Implementation Cost
   This bill would not require the Department of Revenue to make material changes to its Tax Revenue Management System
   (TRMS). Therefore, there would be no cost to the Department of Revenue for implementation. After the implementation
   of the changes, this bill would cause a small additional administrative burden on the Tax Division.
(Revised 11/23/2021 OMB/LFD)                                                                                          Page 2 of 2
HB041CS(FIN)-DOR-TAX-1-28-22                                    Page 2 of 2                                                Control Code: pqtFZ
Statutes affected: 
HB0041A, AM HB 41, introduced 02/18/2021: 16.05.730, 16.10.400, 16.10.480, 16.10.450, 16.12.010, 16.12.080, 16.12.020, 16.12.030, 16.12.040, 16.12.050, 16.12.060, 16.12.070, 16.12.090, 16.05.251, 16.05.722, 16.05.723, 43.75.290, 16.12.100, 16.12.110, 16.12.199, 16.40.199, 16.43.400, 16.10.475, 16.43.430, 16.51.090, 16.51.110, 16.51.180, 17.20.049, 37.05.146, 43.20.012, 16.10.380, 16.10.455, 43.76.390, 43.76.350, 43.76.399
HB0041B, AM CSHB 41(FIN), introduced 04/28/2021, passed House 04/30/2021: 16.05.730, 16.10.400, 16.10.480, 16.10.450, 16.12.010, 16.12.080, 16.12.020, 16.12.030, 16.12.040, 16.12.050, 16.12.060, 16.12.070, 16.12.090, 16.05.251, 16.05.722, 16.05.723, 43.75.290, 16.12.100, 16.12.110, 16.12.199, 16.40.199, 16.43.400, 16.10.475, 16.43.430, 16.51.090, 16.51.110, 16.51.180, 17.20.049, 37.05.146, 43.20.012, 16.10.380, 16.10.455, 43.76.390, 43.76.350, 43.76.399
HB0041C, AM SCS CSHB 41(FIN), introduced 02/01/2022: 16.05.730, 16.10.400, 16.10.480, 16.10.450, 16.12.010, 16.12.080, 16.12.020, 16.12.030, 16.12.040, 16.12.050, 16.12.060, 16.12.070, 16.12.090, 16.05.251, 16.05.722, 16.05.723, 43.75.290, 16.12.100, 16.12.110, 16.12.199, 16.40.199, 16.43.400, 16.10.475, 16.43.430, 17.20.049, 37.05.146, 43.20.012, 16.10.380, 16.10.455, 43.76.390, 43.76.350, 43.76.399
HB0041D, AM SCS CSHB 41(FIN) am S, introduced 04/25/2022, passed Senate 04/25/2022: 16.05.730, 16.10.400, 16.10.480, 16.10.450, 16.12.010, 16.12.080, 16.12.020, 16.12.030, 16.12.040, 16.12.050, 16.12.060, 16.12.070, 16.12.090, 16.05.251, 16.05.722, 16.05.723, 43.75.290, 16.12.100, 16.12.110, 16.12.199, 16.40.199, 16.43.400, 16.10.475, 16.43.430, 17.20.049, 37.05.146, 43.20.012, 16.10.380, 16.10.455, 43.76.390, 43.76.350, 43.76.399
HB0041Z, AM Enrolled HB 41, introduced 04/26/2022: 16.05.730, 16.10.400, 16.10.480, 16.10.450, 16.12.010, 16.12.080, 16.12.020, 16.12.030, 16.12.040, 16.12.050, 16.12.060, 16.12.070, 16.12.090, 16.05.251, 16.05.722, 16.05.723, 43.75.290, 16.12.100, 16.12.110, 16.12.199, 16.40.199, 16.43.400, 16.10.475, 16.43.430, 17.20.049, 37.05.146, 43.20.012, 16.10.380, 16.10.455, 43.76.390, 43.76.350, 43.76.399
HB0041B, AM CSHB 41(FIN), introduced 04/28/2021: 16.05.730, 16.10.400, 16.10.480, 16.10.450, 16.12.010, 16.12.080, 16.12.020, 16.12.030, 16.12.040, 16.12.050, 16.12.060, 16.12.070, 16.12.090, 16.05.251, 16.05.722, 16.05.723, 43.75.290, 16.12.100, 16.12.110, 16.12.199, 16.40.199, 16.43.400, 16.10.475, 16.43.430, 16.51.090, 16.51.110, 16.51.180, 17.20.049, 37.05.146, 43.20.012, 16.10.380, 16.10.455, 43.76.390, 43.76.350, 43.76.399
HB0041A, AM HB 41, introduced 01/08/2021: 16.05.730, 16.10.400, 16.10.480, 16.10.450, 16.12.010, 16.12.080, 16.12.020, 16.12.030, 16.12.040, 16.12.050, 16.12.060, 16.12.070, 16.12.090, 16.05.251, 16.05.722, 16.05.723, 43.75.290, 16.12.100, 16.12.110, 16.12.199, 16.40.199, 16.43.400, 16.10.475, 16.43.430, 16.51.090, 16.51.110, 16.51.180, 17.20.049, 37.05.146, 43.20.012, 16.10.380, 16.10.455, 43.76.390, 43.76.350, 43.76.399