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CSHB 218(RES): "An Act relating to cost recovery fisheries for private nonprofit hatchery facilities."

00 CS FOR HOUSE BILL NO. 218(RES) 01 "An Act relating to cost recovery fisheries for private nonprofit hatchery facilities." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 04 to read: 05 FINDINGS. The Alaska State Legislature finds that Alaska private nonprofit salmon 06 hatcheries should maximize the harvests of returning hatchery-produced salmon by 07 commercial salmon fishing permit holders. The legislature also finds that private nonprofit 08 hatcheries should minimize, to the greatest extent feasible, the direct sale of salmon returning 09 to a hatchery. 10 * Sec. 2. AS 16.10 is amended by adding a new section to read: 11 Sec. 16.10.455. Cost recovery fisheries. (a) A hatchery permit holder may 12 harvest salmon for a facility in 13 (1) a special harvest area through agents, contractees, or employees of 14 the permit holder as provided under regulations of the Board of Fisheries; or 15 (2) a terminal harvest area through the common property fishery under

01 this section. 02 (b) A hatchery permit holder may elect to harvest surplus salmon produced at 03 a facility in a terminal harvest area established for that facility through the common 04 property fishery. The commissioner of fish and game, after reasonable consultation 05 with the hatchery permit holder, affected commercial fishermen, and other interested 06 or knowledgeable parties, may adopt regulations governing the harvest of surplus 07 salmon in a terminal harvest area if the hatchery permit holder elects to harvest surplus 08 salmon produced at a facility through the common property fishery. The regulations 09 must specify the terms, conditions, and rules under which the common property 10 fishery in the terminal harvest area shall be conducted, including requirements for hold 11 inspections and reporting of harvests and sales of salmon taken in the terminal harvest 12 area. The Board of Fisheries may adopt regulations, as the board considers 13 appropriate, regarding a fisheries management plan governing operations under this 14 subsection in a terminal harvest area, including allocation plans. Participation in the 15 fishery must be open to all interim-use permit and entry permit holders who hold 16 permits to operate a type of gear that may be used in the fishing district in which the 17 terminal harvest area is located if that type of gear is authorized by regulation to be 18 used in the terminal harvest area. An interim-use permit holder or an entry permit 19 holder who takes salmon in a common property fishery in a terminal harvest area may 20 sell the salmon to any fish buyer or processor who is licensed to do business in the 21 state. 22 (c) As a condition of participation in a common property salmon fishery in a 23 terminal harvest area under this section, a fisherman who participates in the fishery is 24 subject to the payment of the assessment levied under (d) of this section. The 25 assessment is levied on the value of salmon that the fisherman takes in the terminal 26 harvest area and either sells to a buyer or exports from the state without being sold in 27 the state. If the buyer of the salmon is licensed under AS 43.75, the buyer shall collect 28 the assessment on salmon taken in a terminal harvest area at the time of purchase and 29 remit the assessment to the Department of Revenue in accordance with regulations 30 adopted by the Department of Revenue. If a fisherman does not sell salmon harvested 31 in a terminal harvest area to a buyer licensed under AS 43.75 or if a fisherman does

01 not sell salmon harvested in a terminal harvest area to a buyer before the salmon are 02 exported from the state, the fisherman shall remit the amount of the assessment to the 03 Department of Revenue in accordance with regulations adopted by the Department of 04 Revenue. 05 (d) The Department of Revenue may, by regulation, annually set the rate of 06 the assessment levied on salmon taken in a terminal harvest area in consultation with 07 the Department of Commerce, Community, and Economic Development, the hatchery 08 permit holder, and representatives of affected commercial fishermen. The rate of the 09 assessment shall provide sufficient revenue to cover debt service to the state, 10 reasonable operating expenses, reasonable maintenance expenses, and development or 11 maintenance of a reserve fund up to 100 percent of annual operating costs of the 12 corporation. In setting the rate of the assessment the department shall consider the 13 estimated return and harvest of salmon in the terminal harvest area, the projected price 14 to be paid for salmon in the region, the amount of the existing reserve held by the 15 hatchery permit holder, and the amount by which the assessment collected in previous 16 years exceeded or fell short of the amount anticipated to be collected. The total rate of 17 the assessment may not exceed 40 percent of the value of the salmon. 18 (e) The Department of Revenue shall deposit the assessments collected under 19 this section in the general fund. The legislature may appropriate the funds collected 20 under this section to the hatchery permit holder who operates a facility in the terminal 21 harvest area in which the assessment was levied. A hatchery permit holder shall use 22 funds appropriated under this subsection for the purposes set out under 23 AS 16.10.450(a). The legislature may also appropriate funds collected under this 24 section to the Department of Revenue for costs incurred by the department under this 25 section. 26 (f) A person who violates a regulation adopted by the Department of Fish and 27 Game or the Board of Fisheries under (b) of this section is guilty of a misdemeanor 28 under AS 16.05.723. A person who violates a regulation adopted by the Department 29 of Revenue under (c) of this section is guilty of a class A misdemeanor. 30 (g) In this section, 31 (1) "facility" means a hatchery or salmon rehabilitation project for

01 which a permit is issued under AS 16.10.400 - 16.10.470; 02 (2) "terminal harvest area" means a harvest area established by the 03 commissioner or the Board of Fisheries where salmon returning to a hatchery may be 04 harvested by the common property fishery; 05 (3) "value" has the meaning given in AS 43.75.290. 06 * Sec. 3. AS 43.76.035 is amended to read: 07 Sec. 43.76.035. Exemption. (a) Except as provided under (b) of this 08 section, AS 43.76.001 - 43.76.040 do not apply to salmon harvested under a special 09 harvest area entry permit issued under AS 16.43.400. 10 * Sec. 4. AS 43.76.035 is amended by adding a new subsection to read: 11 (b) Salmon harvested in a common property fishery conducted in a terminal 12 harvest area under AS 16.10.455 are subject to a salmon enhancement tax levied under 13 AS 43.76.001 - 43.76.040.