House bill proposing to remove business license fees from law garners strong opposition

Pago Pago, AMERICAN SAMOA — A house bill to remove business license fees from the law so that all fees, rates and charges would be put into effect pursuant to the Administrative Procedures Act is now tabled after a government official called to testify about the amendment voiced his opposition.

The bill, sponsored by Rep. Samuelu Ioka A. Meleisea, who is also the chair of the House Commerce Committee, was discussed during a committee hearing yesterday morning.

The Dept. of Commerce (DOC) Deputy Assistant for Business, International Trade & Investments Finauvale Alex Zodiacal appeared before the committee to testify on the bill.

During the hearing, Zodiacal said DOC, along with the Attorney General’s office strongly opposes the bill for several reasons. Not only was the bill not initiated from the Lemanu and Talauega Administration, but the purpose of the bill also creates conflicts between the administration and businesses.

The witness suggested that the committee also needs to call representatives from several business owners in the territory to see where they stand in regards to the proposed amendment.

Before the committee chairm gave the floor to faipule for their questions and comments, he explained the whole purpose of the bill.

Rep. Meleisea explained that the bill is to remove the fee from the law and allow the DOC to access the appropriate fees and charges to each business. He said not all businesses are the same.

For example, StarKist Samoa employs over 3,000 employees compared to a small store that only employs 3 employees — but both businesses pay the same business license fee of $150 a year. According to Meleisea, this is not right and that’s why this law needs to be amended.

Vice Speaker of the House Fetu Fetui Jr disagreed with the chairman’s stance and supported the government official’s testimony.

Fetu said not long ago the Fono passed a law to hike business license fees in the territory and it’s sad to see that a few years later, a House bill has been introduced to amend this law again.

Fetu further stated that he disagrees with the bill because the authority to make laws is at the hands of lawmakers, not a department or an entity.

Meleisea apologized to the committee and immediately called off the hearing. He said the bill must return to committee for further review before it is re-introduced in the chamber at a later time.

He said he also received a comment from the AG’s office on why they oppose this bill.

Rep. Vaetasi Tuumolimoli Saena Moliga achoed Fetu’s comments. He said he disagrees with the language of the bill, which gives the authority to the DOC to make laws. He said that if the Fono gives the authority to the DOC to impose fees on businesses, there will a big problem between the government and the businesses.

Rep. Vailiuama Steve Leasiolagi, the chair of the House Budget Committee and a local businessman said DOC must interpret the law clearly in order for businesses to get fair treatment.

Vailiuama said that a business requiring multiple business licenses as a result of engaging in several activities, subject to being charged a business license fee, shall pay an initial fee at the highest rate charged for any of the activities they undertake — which is $150, and each additional license fee shall be paid at the rate of $100 per licensed activity.

However, the current situation according to Vailiuama is not right.

After a brief discussion between the committee, a motion was passed to return the bill to the committee for further review.

THE BILL

According to the bill, in an effort to keep up with the proper fees and charges that will be necessary for the operation of businesses, the department of commerce (DOC) shall oversee all charges as pursuant to the Administrative Procedures Act.

The bill states that removing the fees from the law will allow for the DOC and the Department of Treasury to properly access the fees and charges for all businesses conducted in the territory as needed.

After reviewing the current law, it’s also important to allocate a portion of these funds collected for the various board members who serve on any and all boards administered by the DOC for their dedicated time and effort in service to the American Samoa Government (ASG).

According to the proposed bill which is now tabled, the new business license fees approved by the Fono and signed by the Governor in 2015 would be removed, and DOC given the authority to properly access fees and charges for all businesses in the territory as needed.

The bill also states that DOC shall develop and publish a scheduled of fees, rates, charges, and services including fees for fundraising and for nonprofit organizations. They shall also promulgate rules and regulations of such, not inconsistent with local and federal laws, for effective administration of this chapter and pursuant to the Administrative Procedures Act.

For Administration of fees, the bill states that 50% of all fees collected by DOC under this chapter shall be earmarked for the payment of stipends for board members who serve on any and all boards administered by the DOC.