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CSSB 113(RES): "An Act relating to entry into and management of Gulf of Alaska groundfish fisheries."

00                       CS FOR SENATE BILL NO. 113(RES)                                                                   
01 "An Act relating to entry into and management of Gulf of Alaska groundfish fisheries."                                  
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 AND PURPOSE.  (a)  The Alaska State Legislature finds that                                               
06            (1)  groundfish fisheries in the Gulf of Alaska are facing significant challenges                            
07 from changing economic conditions and fishery management practices in the federal                                       
08 exclusive economic zone that affect fisheries and fishery resources in a manner that is likely                          
09 to increase pressures on groundfish stocks;                                                                             
10            (2)  some form of limitation on access into the fisheries may be necessary to                                
11 provide for the economic health of fishermen in the Gulf of Alaska groundfish fisheries and                             
12 those dependent upon them for a livelihood and to ensure conservation of the biological and                             
13 capital resources of the fishery;                                                                                       
14            (3)  groundfish fisheries in the Gulf of Alaska are prosecuted by a diverse                                  
15 fishing fleet using many different types of gear and sizes of vessels to harvest multiple species                       
01 of groundfish;                                                                                                          
02            (4)  the current forms of limited entry authorized under AS 16.43 may not be                                 
03 well-suited to promote the best interests of the State of Alaska in the Gulf of Alaska                                  
04 groundfish fisheries;                                                                                                   
05            (5)  the Alaska Board of Fisheries has led an effort to explore how best to                                  
06 respond to the changes facing the Gulf of Alaska groundfish fisheries;                                                  
07            (6)  the Alaska Board of Fisheries has concluded that either the board or the                                
08 Alaska Commercial Fisheries Entry Commission or both the board and the commission                                       
09 should have statutory authority, applicable only to the Gulf of Alaska groundfish fisheries, to                         
10 limit participation in the fisheries to persons or vessel owners, or both, with a history of                            
11 participation in the fisheries;                                                                                         
12            (7)  the Alaska Board of Fisheries has concluded that, for the Gulf of Alaska                                
13 groundfish fisheries, the board or commission, or both, should have authority to allocate                               
14 differential, exclusive harvest shares to persons or vessel owners, or both, either individually                        
15 or as members of a harvesting association, based on the history of harvests in the fishery;                             
16            (8)  because the Gulf of Alaska groundfish fisheries are managed by harvest                                  
17 limits, dedicated access privileges may be feasible and appropriate and may better serve the                            
18 goals of resource conservation, prevention of economic distress among fishermen and those                               
19 dependent upon fishermen for a livelihood, and promoting the safety of fishermen involved in                            
20 the fisheries.                                                                                                          
21       (b)  It is the purpose of this Act to authorize a new type of access limitation program,                          
22 called a dedicated access privilege program, as best serves the interests of the State of Alaska.                       
23 The dedicated access privilege program, if adopted and implemented, should result in the                                
24 allocation of harvest share privileges, in Gulf of Alaska groundfish fisheries, except for                              
25 mechanical jigging machine fisheries, in a manner that serves the purposes of limited entry                             
26 under art. VIII, sec. 15, Constitution of the State of Alaska, with the least impingement on the                        
27 open access principles embodied in art. VIII, Constitution of the State of Alaska.                                      
28    * Sec. 2.  AS 16.05 is amended by adding a new section to article 5 to read:                                       
29            Sec. 16.05.740.  Allocation of Gulf of Alaska groundfish fishery resources.                                
30       (a)  If the Alaska Commercial Fisheries Entry Commission has adopted a dedicated                                  
31       access privilege program under AS 16.43.530, the holder of a dedicated access                                     
01       privilege is entitled to share in the overall harvest authorized by the Board of Fisheries                        
02       to the extent provided by the dedicated access privilege.                                                         
03            (b)  The Board of Fisheries may adopt regulations to allocate portions of the                                
04       harvestable surplus of Gulf of Alaska groundfish species to associations of dedicated                             
05       access privilege holders authorized by the board based on the combined dedicated                                  
06       access privileges held by the members of each association.                                                        
07            (c)  In considering whether to approve allocation of Gulf of Alaska groundfish                               
08       species, to the extent practicable, the board shall seek to promote                                               
09                 (1)  sound fishery management;                                                                          
10                 (2)  resource conservation;                                                                             
11                 (3)  the economic health of the commercial Gulf of Alaska groundfish                                    
12       fisheries;                                                                                                        
13                 (4)  the economy of the state and of regions of the state dependent on                                  
14       the Gulf of Alaska groundfish fisheries;                                                                          
15                 (5)  the enforcement and enforceability of the allocations;                                             
16                 (6)  coordination with the fishery management system for Gulf of                                        
17       Alaska groundfish fisheries in the adjacent federal exclusive economic zone;                                      
18                 (7)  the safety of participants in the commercial Gulf of Alaska                                        
19       groundfish fisheries;                                                                                             
20                 (8)  other important goals as identified by the board.                                                  
21    * Sec. 3.  AS 16.43.210(a) is amended to read:                                                                     
22            (a)  For each fishery that is not subject to a maximum number of entry permits                               
23       under AS 16.43.240 and not subject to a moratorium under AS 16.43.225 or a                                    
24       dedicated access privilege program under AS 16.43.530, the commission shall issue                             
25       interim-use permits under regulations adopted by the commission to all applicants who                             
26       can establish their present ability to participate actively in the fishery for which they                         
27       are making application.                                                                                           
28    * Sec. 4.  AS 16.43.210 is amended by adding a new subsection to read:                                             
29            (f)  An interim-use permit for a fishery subject to a dedicated access privilege                             
30       program established under AS 16.43.530 may be issued only to a person who qualifies                               
31       under regulations adopted by the commission under AS 16.43.530.                                                   
01    * Sec. 5.  AS 16.43 is amended by adding new sections to read:                                                     
02                Article 7A.  Gulf of Alaska Groundfish Fisheries.                                                      
03            Sec. 16.43.530.  Dedicated access privileges for Gulf of Alaska groundfish                                 
04       fisheries.  (a)  If the commission finds that entry into a Gulf of Alaska groundfish                            
05       fishery should be limited on the basis of dedicated access privileges to serve the                                
06       purposes of this chapter, the commission may adopt regulations, developed in                                      
07       conjunction with the Board of Fisheries, that are necessary to establish and implement                            
08       a dedicated access privilege program for that fishery.  The amount of dedicated access                            
09       privileges initially issued to qualified applicants under a dedicated access privilege                            
10       program may be based on the quantity of qualified past landings credited to the                                   
11       applicant.                                                                                                        
12            (b)  In adopting a dedicated access privilege program for a Gulf of Alaska                                   
13       groundfish fishery, to the extent practicable, the commission shall seek to promote                               
14                 (1)  sound fishery management;                                                                          
15                 (2)  resource conservation;                                                                             
16                 (3)  the economic health of the commercial Gulf of Alaska groundfish                                    
17       fisheries;                                                                                                        
18                 (4)  the economy of the state and of regions of the state dependent on                                  
19       the Gulf of Alaska groundfish fisheries;                                                                          
20                 (5)  the enforcement and enforceability of the allocations;                                             
21                 (6)  coordination with the fishery management system for Gulf of                                        
22       Alaska groundfish fisheries in the adjacent federal exclusive economic zone;                                      
23                 (7)  the safety of participants in the commercial Gulf of Alaska                                        
24       groundfish fisheries;                                                                                             
25                 (8)  other important goals as identified by the commission.                                             
26            (c)  If the commission adopts regulations under (a) of this section to establish a                           
27       dedicated access privilege program, the commission shall in writing                                               
28                 (1)  identify how a limitation on access into the fishery on the basis of                               
29       dedicated access privileges serves the purposes of this chapter;                                                  
30                 (2)  describe why other access limitation programs authorized under                                     
31       this chapter would not best serve the purposes of the chapter, would not be feasible, or                          
01       would not serve the best interests of the State of Alaska and its citizens;                                       
02                 (3)  describe why other feasible access limitation programs authorized                                  
03       under this chapter would be expected to be more exclusive than the dedicated access                               
04       privilege program adopted by the commission.                                                                      
05            (d)  Regulations adopted by the commission to establish a dedicated access                                   
06       privilege program under this section must address                                                                 
07                 (1)  the qualification date, eligibility period, landings threshold, and                                
08       years of participation in the fishery to be used to determine qualified landings in the                           
09       fishery, qualified applicants, and initial access to implement the dedicated access                               
10       privilege program;                                                                                                
11                 (2)  the permits that must be held by qualified interim-use permit                                      
12       holders, entry permit holders, vessel owners, dedicated access privilege holders, and                             
13       commercial fishing license holders before and after dedicated access privileges are                               
14       issued;                                                                                                           
15                 (3)  qualifications for receiving and holding an interim-use permit for a                               
16       fishery subject to a dedicated access privilege program and requisite restrictions on the                         
17       holder of an interim-use permit under a dedicated access privilege program;                                       
18                 (4)  whether the qualified past landings are to be credited, solely or                                  
19       partially, to interim-use permit holders, entry permit holders, vessel owners, or                                 
20       commercial fishing license holders;                                                                               
21                 (5)  whether qualified past landings or the dedicated access privileges                                 
22       based on those qualified landings are transferable and the terms and conditions under                             
23       which the landings or privileges may be transferred;                                                              
24                 (6)  whether dedicated access privileges expire or attenuate over time                                  
25       and the terms and conditions under which the privileges expire or attenuate;                                      
26                 (7)  the procedures by which persons or vessels without qualified past                                  
27       landings may gain entry into the fishery;                                                                         
28                 (8)  the process by which the commission will prevent the fishery from                                  
29       becoming too exclusive;                                                                                           
30                 (9)  other issues the commission determines appropriate.                                                
31            (e)  In this section,                                                                                        
01                 (1)  "groundfish" means a species of marine finfish other than halibut,                                 
02       osmerids, herring, or salmonids;                                                                                  
03                 (2)  "Gulf of Alaska groundfish fishery" means a fishery in the Gulf of                                 
04       Alaska in which groundfish are taken in a specified administrative or registration area                           
05       using a specified type of fishing gear that is either pelagic trawl, non-pelagic trawl,                           
06       pot, or longline gear; "Gulf of Alaska groundfish fishery" does not include mechanical                            
07       jigging machine fisheries.                                                                                        
08            Sec. 16.43.535.  Dedicated access privileges; general provisions.  (a)  A                                  
09       dedicated access privilege issued under AS 16.43.530 constitutes a use privilege that                             
10       may be modified or revoked by order of the commission or by law without                                           
11       compensation.                                                                                                     
12            (b)  A dedicated access privilege issued under AS 16.43.530 may not be                                       
13       pledged, mortgaged, encumbered, attached, distrained, or sold on execution of                                     
14       judgment or under any other process or order of any court.                                                        
15            (c)  Nothing in AS 16.43.530 - 16.43.540 limits the powers of the Board of                                   
16       Fisheries or the Department of Fish and Game.                                                                     
17            (d)  Notwithstanding AS 16.05.815 and AS 16.43.975, the commission or the                                    
18       Department of Fish and Game may release to the owner of a vessel information on the                               
19       vessel's history of harvests in a fishery that is necessary to apply for a dedicated access                       
20       privilege issued under AS 16.43.530.                                                                              
21            Sec. 16.43.540.  Dedicated access privileges; fees.  (a)  The commission shall                             
22       establish fees for the issuance and renewal of dedicated access privileges.  Fees                                 
23       established under this subsection must reasonably reflect the rate of economic return                             
24       of the dedicated access privileges.                                                                               
25            (b)  Subject to AS 37.10.050(a), the commission may establish fees for                                       
26       processing applications for dedicated access privileges and, if authorized by the                                 
27       commission, transfer of dedicated access privileges.                                                              
28            (c)  The commission may charge interest at a rate not to exceed the legal rate                               
29       of interest established in AS 45.45.010(a) on fees established under this section that                            
30       are more than 60 days overdue.                                                                                    
31    * Sec. 6.  AS 16.43.945 is amended to read:                                                                        
01            Sec. 16.43.945.  Commercial fishing privileges exempt from claims of                                       
02       creditors.  Except as provided in AS 16.10.333 - 16.10.338, AS 16.43.170(g),                                    
03       AS 44.81.215, and 44.81.231 - 44.81.250, commercial fishing privileges granted under                              
04       this chapter, including entry permits and dedicated access privileges, are exempt                             
05       from claims of creditors, including claims under AS 09.38.065 and AS 45.29.408.                                   
06    * Sec. 7.  AS 16.43.960(a) is amended to read:                                                                     
07            (a)  The commission may revoke, suspend, or transfer all entry or interim-use                                
08       permits, vessel entry permits, [OR] vessel interim-use permits, or dedicated access                           
09       privileges held by a person or entity who knowingly provides or assists in providing                          
10       false information, or fails to correct false information provided to the commission for                           
11       the purpose of obtaining a benefit for self or another, including the issuance, renewal,                          
12       duplication, or transfer of an entry or interim-use permit, vessel license, vessel entry                          
13       permit, [OR] vessel interim-use permit, or dedicated access privilege.  The                                   
14       commission may suspend, as appropriate, that person's or entity's eligibility to hold an                          
15       entry or interim-use permit, vessel entry permit, [OR] vessel interim-use permit, or                          
16       dedicated access privilege for a period not to exceed three years, and may impose an                          
17       administrative fine of not more than $5,000 on the person or entity whose officers,                               
18       employees, representatives, or agents knowingly provide or assist in providing false                              
19       information, or fail to correct false information provided, to the commission for the                             
20       purpose of obtaining a benefit.                                                                                   
21    * Sec. 8.  AS 16.43.960(b) is amended to read:                                                                     
22            (b)  The commission shall serve the respondent personally or by certified or                                 
23       registered mail with a notice to show cause why the proposed action should not take                               
24       place.  The notice to show cause must                                                                             
25                 (1)  be supported by an affidavit, which may be made on information or                                  
26       belief, setting out the facts that are the basis of the proposed actions;                                         
27                 (2)  provide for a least 30 days' notice of the place, date, and time of the                            
28       hearing where the respondent may present evidence in opposition to the proposed                                   
29       action; unless waived in writing by the respondent, the hearing shall be held within the                          
30       judicial district in which the respondent resides if the respondent resides in the state;                         
31       the hearing place shall be at the discretion of the commission for those respondents                              
01       residing outside the state;                                                                                       
02                 (3)  specify the statutes or regulations violated;                                                      
03                 (4)  state with particularity the action proposed to be taken;                                          
04                 (5)  indicate to the respondent that the respondent's ability to                                        
05       permanently transfer the permits or dedicated access privileges that [WHICH] are                              
06       the subject of the show cause proceedings has been suspended as of the date of the                                
07       notice and will continue to be suspended until the exhaustion of all administrative and                           
08       judicial remedies; and                                                                                            
09                 (6)  provide other information the commission considers proper.                                         
10    * Sec. 9.  AS 16.43.960(c) is amended to read:                                                                     
11            (c)  A permit or dedicated access privilege subject to show cause proceedings                            
12       under this section may not be transferred after the date of the notice in (b) of this                             
13       section pending exhaustion of all administrative and judicial remedies arising from                               
14       action taken under this section.                                                                                  
15    * Sec. 10.  AS 16.43.960(g) is amended to read:                                                                    
16            (g)  The provisions of this section apply to conduct occurring after January 1,                              
17       1973, but do not affect a permit or dedicated access privilege held by a person who is                        
18       a bona fide purchaser.  Failure to correct false information is a continuing offense.                             
19    * Sec. 11.  AS 16.43.970(b) is amended to read:                                                                    
20            (b)  A person or entity who knowingly makes a false statement to the                                         
21       commission for the purpose of obtaining a benefit, including the issuance, renewal,                               
22       duplication, or transfer of an entry or interim-use permit, vessel license, vessel                                
23       interim-use permit, [OR] vessel entry permit, or dedicated access privilege, or a                             
24       person who assists another by knowingly making a false statement to the commission                                
25       for the purpose of obtaining a benefit for another, is guilty of the crime of unsworn                             
26       falsification as set out in AS 11.56.210. Upon conviction, the person or entity is also                           
27       subject to suspension of commercial fishing privileges and revocation of commercial                               
28       fishing permits under (i) of this section.                                                                        
29    * Sec. 12.  AS 16.43.970(d) is amended to read:                                                                    
30            (d)  If a permit holder or a dedicated access privilege holder is charged by                             
31       the state with violating a provision of this chapter or a regulation adopted under this                           
01       chapter, the holder may not transfer any interim-use or entry permit under                                        
02       AS 16.43.170, [OR] any transferable vessel entry permit under AS 16.43.450 -                                  
03       16.43.520, or any dedicated access privilege until after the final adjudication or                            
04       dismissal of the charges.                                                                                         
05    * Sec. 13.  AS 16.43.970(e) is amended to read:                                                                    
06            (e)  Notwithstanding any other provision of this section, an interim-use or entry                            
07       permit, [OR] transferable vessel entry permit, or dedicated access privilege may not                      
08       be transferred while under suspension, without the consent of the commission.                                     
09    * Sec. 14.  AS 16.43.970(j)(2) is amended to read:                                                                 
10                 (2)  "commercial fishing privileges" means the privilege of                                             
11       participating in an activity for which a commercial fishing permit or dedicated access                        
12       privilege is required and the privilege of obtaining a commercial fishing permit or                       
13       dedicated access privilege.                                                                                   
14    * Sec. 15.  AS 16.43.990 is amended by adding a new paragraph to read:                                             
15                 (12)  "dedicated access privilege" means a harvest-use privilege issued                                 
16       by the commission under AS 16.43.530 that authorizes the holder of the privilege to                               
17       harvest a specified portion of the overall harvest of a specified fishery resource                                
18       allowed by the Board of Fisheries in a specified fishery.