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

00 CS FOR HOUSE BILL NO. 218(FIN) 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. AS 16.10 is amended by adding a new section to read: 04 Sec. 16.10.455. Cost recovery fisheries. (a) A hatchery permit holder may 05 harvest salmon for a facility in 06 (1) a special harvest area through agents, contractees, or employees of 07 the permit holder as provided under regulations of the Board of Fisheries; or 08 (2) a terminal harvest area through the common property fishery under 09 this section. 10 (b) A hatchery permit holder may elect to harvest surplus salmon produced at 11 a facility in a terminal harvest area established for that facility through the common 12 property fishery. If the commissioner of fish and game determines that there are no 13 allocative issues involved, and after reasonable consultation with the hatchery permit 14 holder, affected commercial fishermen, and organizations of affected commercial 15 fishermen, the commissioner may adopt regulations governing the harvest of surplus

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

01 the Department of Commerce, Community, and Economic Development, the hatchery 02 permit holder, and representatives of affected commercial fishermen. The rate of the 03 assessment shall provide sufficient revenue to cover debt service to the state, 04 reasonable operating expenses, reasonable maintenance expenses, and development or 05 maintenance of a reserve fund up to 100 percent of annual operating costs of the 06 hatchery permit holder. In setting the rate of the assessment, the department shall 07 consider the estimated return and harvest of salmon in the terminal harvest area, the 08 projected price to be paid for salmon in the region, the amount of the existing reserve 09 held by the hatchery permit holder, and the amount by which the assessment collected 10 in previous years exceeded or fell short of the amount anticipated to be collected. The 11 total rate of the assessment may not exceed 40 percent of the value of the salmon. 12 (e) The Department of Revenue shall deposit the assessments collected under 13 this section in the general fund. The legislature may appropriate the funds collected 14 under this section to the hatchery permit holder who operates a facility in the terminal 15 harvest area in which the assessment was levied. A hatchery permit holder shall use 16 funds appropriated under this subsection for the purposes set out under 17 AS 16.10.450(a). The legislature may also appropriate funds collected under this 18 section to the Department of Revenue for costs incurred by the department under this 19 section. 20 (f) A person who violates a regulation adopted by the Department of Fish and 21 Game or the Board of Fisheries under (b) of this section is guilty of a misdemeanor 22 under AS 16.05.723. A person who violates a regulation adopted by the Department 23 of Revenue under (c) of this section is guilty of a class A misdemeanor. 24 (g) In this section, 25 (1) "facility" means a hatchery or salmon rehabilitation project for 26 which a permit is issued under AS 16.10.400 - 16.10.470; 27 (2) "terminal harvest area" means a harvest area established by the 28 commissioner or the Board of Fisheries where salmon returning to a hatchery may be 29 harvested by the common property fishery; 30 (3) "value" has the meaning given in AS 43.75.290. 31 * Sec. 2. AS 43.76.035 is amended to read:

01 Sec. 43.76.035. Exemption. (a) Except as provided under (b) of this 02 section, AS 43.76.001 - 43.76.040 do not apply to salmon harvested under a special 03 harvest area entry permit issued under AS 16.43.400. 04 * Sec. 3. AS 43.76.035 is amended by adding a new subsection to read: 05 (b) Salmon harvested in a common property fishery conducted in a terminal 06 harvest area under AS 16.10.455 are subject to a salmon enhancement tax levied under 07 AS 43.76.001 - 43.76.040.