AS Title 16, Chapter 51: Alaska Seafood Marketing Institute

Chapter 51. Alaska Seafood Marketing Institute. Sec. 16.51.010. Alaska Seafood Marketing Institute established. There is established the Alaska Seafood Marketing Institute. The institute is a public corporation of the state. It is an instrumentality of the state in the Department of Commerce, Community, and Economic Development, but has a legal existence independent of and separate from the state. Exercise by the institute of the powers conferred by this chapter is an essential governmental function of the state. Sec. 16.51.020. Board of directors. (a) The governing body of the institute is a board of directors. The board consists of seven voting members appointed by the governor. In making appointments to the board, the governor shall consider, but need not appoint, nominees presented by persons engaged in fish processing, the financing of fish processing, or commercial fishing. (b) Five members of the board shall be seafood processors: four of the seafood processors must have an annual payroll in the state of more than $2,500,000; one of the seafood processors must have an annual payroll in the state of $50,000 — $2,500,000. Two members of the board must be engaged in commercial fishing. (c) The board shall annually elect a chairman and other necessary officers from among its members. Sec. 16.51.030. Term of office. The members of the board appointed by the governor under AS 16.51.020 serve three-year terms and may be reappointed. Terms shall be staggered. An appointee to fill a vacancy shall hold office for the balance of the term for which the appointee's predecessor on the board was appointed. Sec. 16.51.040. Removal and vacancies. The members of the board appointed by the governor under AS 16.51.020 serve at the governor's pleasure. A vacancy on the board occurring other than by expiration of term shall be filled in the same manner as the original appointment but for the unexpired term only. Sec. 16.51.050. Quorum. Four members of the board appointed under AS 16.51.020 constitute a quorum for the transaction of business and the exercise of the powers and duties of the board. Sec. 16.51.060. Compensation of board members. Board members receive no salary, but are entitled to per diem and travel expenses authorized by law for other state boards and commissions under AS 39.20.180 . Sec. 16.51.070. Meetings. The board shall meet at least once a year. A meeting of the board shall occur at the call of the chairman, or upon the written request of two members of the board. Sec. 16.51.080. Employment of personnel. The board may employ and determine the salary of an executive director. The executive director may, with the approval of the board, select and employ additional staff as necessary. The executive director and all employees of the board are in the exempt service under AS 39.25 . Sec. 16.51.090. Powers of board. In carrying out the powers of the institute, the board may (1) adopt, alter, and use a corporate seal; (2) prescribe, adopt, amend, and repeal bylaws; (3) sue and be sued in the name of the institute; (4) enter into any agreements necessary to the exercise of its powers and functions; (5) cooperate with a public or private board, organization, or agency engaged in work or activities similar to the work or activities of the institute, including entering into contracts for joint programs of consumer education, sales promotion, quality control, advertising, and research in the production, processing, or distribution of seafood; (6) conduct, or contract for, scientific research to develop and discover health, dietetic, or other uses of seafood harvested and processed in the state; (7) receive contributions of money from persons; (8) establish offices in the state and otherwise incur expenses incidental to the performance of its duties; (9) appear on behalf of the institute before boards, commissions, departments, or other agencies of municipal, state, or federal government; (10) acquire, hold, lease, sell, or otherwise dispose of property, but such property is limited to that which is necessary to the administrative functioning of the office of the institute; (11) establish and maintain one or more bank accounts for the transaction of the institute's business; (12) prepare market research and product development plans for the promotion of any species of seafood and their by-products that may be harvested in the state and processed for sale; (13) establish committees related to the marketing of salmon and salmon products; the board shall, to the extent practicable, appoint equal numbers of seafood processors and persons engaged in commercial fishing to the committees. Sec. 16.51.095. Executive Budget Act. The operating budget of the institute shall be prepared and submitted in accordance with AS 37.07 (Executive Budget Act). Sec. 16.51.100. Duties of board. The board shall (1) conduct programs of education, research, advertising, or sales promotion designed to accomplish the purposes of this chapter; (2) promote all species of seafood and their by-products that are harvested in the state and processed for sale; (3) develop market-oriented quality specifications for Alaska seafood to be used in developing a high quality image for Alaska seafood in domestic and world markets, and adopt and distribute recommendations regarding the handling of seafood from the moment of capture to final distribution; (4) prepare market research and product development plans for the promotion of all species of seafood and their by-products that are harvested in the state and processed for sale; (5) submit an annual report to the governor describing the activities of the institute and notify the legislature that the report is available; (6) develop marketing programs based on the “inspection” and “premium quality” seals designed under AS 17.20.066 and use the seals in advertising and promotion efforts of the institute. Sec. 16.51.110. Prohibited promotions. The board may not promote or make a contract that promotes seafood by (1) geographic origin other than from the state generally; (2) geographic region of the state; or (3) specific brand name. Sec. 16.51.120. Seafood marketing assessment. (a) A seafood marketing assessment shall be levied on the value of seafood products produced in Alaska as provided in (b), (c), (d), (e), (h), or (i) of this section if an election is held under AS 16.51.140 at which the assessment is approved by eligible processors who together produce at least 51 percent of the value of seafood products produced in Alaska in the calendar year. (b) Each processor shall pay a seafood marketing assessment of .1 percent of the value of seafood products produced in Alaska by the processor. (c) Each processor shall pay a seafood marketing assessment of .2 percent of the value of seafood products produced in Alaska by the processor. (d) Each processor shall pay a seafood marketing assessment of .3 percent of the value of seafood products produced in Alaska by the processor. (e) Each processor shall pay a seafood marketing assessment of .4 percent of the value of seafood products produced in Alaska by the processor. (f) An election under (a) of this section shall be held if the proposed election for the levying of an assessment under (b), (c), (d), (e), (h), or (i) of this section is approved by a majority of the whole membership of the board at a regularly scheduled meeting. (g) Notwithstanding (a) — (e), (h), and (i) of this section and AS 16.51.150 (c), a processor is not subject to, or liable for payment of, an assessment under this section on the value of the seafood products produced in Alaska if the value of seafood products produced in Alaska by the processor is less than $50,000 in a calendar year. This subsection does not exempt a processor from liability for payment of taxes imposed under AS 43.75 or AS 43.77 . (h) Each processor shall pay a seafood marketing assessment of .5 percent of the value of seafood products produced in Alaska by the processor. (i) Each processor shall pay a seafood marketing assessment of .6 percent of the value of seafood products produced in Alaska by the processor. Sec. 16.51.130. Termination of the seafood marketing assessment. (a) A seafood marketing assessment levied under AS 16.51.120 (b), (c), (d), (e), (h), or (i) shall be terminated by the commissioner of revenue if an election is held under AS 16.51.140 in which the termination is approved by eligible processors who together produce at least 51 percent of the total value of seafood products produced in Alaska during the calendar year. (b) An election under (a) of this section shall be held if (1) the proposed election for the termination of the assessment is approved by a majority of the whole membership of the board at a regularly scheduled meeting; or (2) a petition is presented to the director of elections requesting termination of the assessment by eligible processors who together produce at least 25 percent of the total value of seafood products produced in Alaska during the calendar year. (c) The institute shall provide notice of an election in accordance with AS 16.51.140 within 60 days after receiving notice from the director of elections that a valid petition under (b)(2) of this section has been received. (d) The seafood marketing assessment is terminated on the effective date stated on the ballot. Sec. 16.51.140. Procedures for an election to approve or terminate a seafood marketing assessment. (a) The institute may conduct an election under this section after the director of elections approves (1) the notice to be published by the institute; (2) the ballot to be used in the election; and (3) the registration and voting procedures for the approval or termination of the seafood marketing assessment. (b) In conducting the election under this section, the institute and the director of elections shall adopt the following procedures: (1) the proposed levy or termination of the assessment shall be adopted at a regularly scheduled meeting of the board of directors of the institute held not less than 60 days before the date on which the ballots must be postmarked to be counted unless the election is for termination of the assessment and has been initiated by a petition under AS 16.51.130 (b)(2); (2) the institute shall hold at least one meeting, not less than 30 days before the date on which ballots must be postmarked to be counted, to explain the reason for the proposed seafood marketing assessment or termination of the assessment and to explain the voting procedure to be used in the election; the institute shall provide notice of the meeting by (A) mailing the notice to each eligible processor; and (B) publishing the notice in at least one newspaper of general circulation in each region of the state at least two weeks before the meeting; (3) the director of elections shall mail ballots to each eligible processor not more than 45 days before the date specified as the date ballots must be postmarked; (4) the ballot must (A) indicate whether the assessment is to be levied under AS 16.51.120 (b), (c), (d), (e), (h), or (i) and must state the percentage of the assessment; (B) indicate the effective date of the levy of the assessment or termination of the assessment; (C) ask whether the assessment shall be levied or, if the election is to terminate the assessment, whether the assessment shall be terminated; (5) the ballots shall be returned by mail to the director of elections and shall be counted by the director of elections or a representative. (c) The director of elections shall certify the results of an election under this section if the director determines that the requirements of (a) and (b) of this section have been satisfied. (d) For the purposes of this section a ballot submitted by a corporation is presumed valid if the ballot is signed by an individual who is indicated to be an officer of the corporation and the ballot is imprinted with the corporate seal. Sec. 16.51.150. Determination of value. (a) Upon request from the director of elections, the commissioner of revenue shall determine (1) the total value of seafood products produced in Alaska during any calendar year; (2) whether the eligible processors approving the levy or termination of a seafood marketing assessment together produced at least 51 percent of the total value of seafood products produced in Alaska during the calendar year; or (3) whether the eligible processors petitioning for an election under AS 16.51.130 (b)(2) together produced at least 25 percent of the total value of seafood products produced in Alaska during the calendar year. (b) The total value of seafood products produced in Alaska in a calendar year is the sum of the (1) total value of the fisheries resource on which the tax imposed under AS 43.75.015 and 43.75.100 is levied in that calendar year; and (2) total value of the fisheries resource on which the tax imposed under AS 43.77 is levied in that calendar year. (c) The value of seafood products produced in Alaska by a processor during a calendar year is the sum of the (1) total value of the fisheries resource on which the processor must pay the tax imposed under AS 43.75.015 and 43.75.100 in that calendar year; and (2) total value of the fisheries resource on which the processor must pay the tax imposed under AS 43.77.010 in that calendar year. Sec. 16.51.160. Collection of assessments and disposition of proceeds. (a) Each processor shall remit to the Department of Revenue before April 1 of each year the total amount of the seafood marketing assessment owed on the value of seafood products produced in Alaska by the processor in the previous calendar year. (b) [Repealed, § 28 ch 90 SLA 1991.] Sec. 16.51.170. Enforcement of assessments. The provisions of AS 43.05 and AS 43.10 apply for the enforcement and collection of the seafood marketing assessment. Sec. 16.51.180. Definitions. In this chapter, (1) “board” means the board of directors of the Alaska Seafood Marketing Institute; (2) “eligible processor” means a processor who would be liable for payment of a seafood marketing assessment levied under AS 16.51.120 ; (3) “institute” means the Alaska Seafood Marketing Institute; (4) “processor” means a person who is liable for (A) the tax imposed under AS 43.75.015 ; (B) the tax imposed under AS 43.75.100 ; or (C) the landing tax imposed under AS 43.77 ; (5) “produce” means perform an activity upon which a tax is imposed under AS 43.75 or AS 43.77 , including the purchase, production, landing, or export of a fisheries resource; (6) “promote or make a contract that promotes seafood” means to advertise or publicize, or make a contract for advertising or publicizing, the use, value, attractiveness, or quality of seafood; (7) “seafood” means finfish, shellfish, and fish by-products, including but not limited to salmon, halibut, herring, flounder, crab, clam, cod, shrimp, and pollock, but does not include aquatic farm products as defined in AS 16.40.199 .