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FCCS HB 71: "An Act relating to a vessel-based commercial fisheries limited entry system for the Bering Sea hair crab fishery; requiring the Commercial Fisheries Entry Commission to report biennially on the vessel-based limited entry fisheries system for the Bering Sea hair crab fishery; establishing the Alaska regional economic assistance program; requiring the Department of Commerce, Community, and Economic Development to compile an annual report to the legislature regarding statewide and regional economic development projects and regional development organizations; and providing for an effective date."

00 FREE CONFERENCE CS FOR HOUSE BILL NO. 71 01 "An Act relating to a vessel-based commercial fisheries limited entry system for the 02 Bering Sea hair crab fishery; requiring the Commercial Fisheries Entry Commission to 03 report biennially on the vessel-based limited entry fisheries system for the Bering Sea 04 hair crab fishery; establishing the Alaska regional economic assistance program; 05 requiring the Department of Commerce, Community, and Economic Development to 06 compile an annual report to the legislature regarding statewide and regional economic 07 development projects and regional development organizations; and providing for an 08 effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. AS 16.43.010(a) is amended to read: 11 (a) It is the purpose of this chapter to promote the conservation and the 12 sustained yield management of Alaska's fishery resource and the economic health and

01 stability of commercial fishing in Alaska by regulating and controlling entry of 02 participants and vessels into the commercial fisheries in the public interest and 03 without unjust discrimination. 04 * Sec. 2. AS 16.43.010(a), as amended by sec. 1 of this Act, is amended to read: 05 (a) It is the purpose of this chapter to promote the conservation and the 06 sustained yield management of Alaska's fishery resource and the economic health and 07 stability of commercial fishing in Alaska by regulating and controlling entry of 08 participants [AND VESSELS] into the commercial fisheries in the public interest and 09 without unjust discrimination. 10 * Sec. 3. AS 16.43.100(a) is amended to read: 11 (a) To accomplish the purposes set out in AS 16.43.010, the commission shall 12 (1) regulate entry into the commercial fisheries for all fishery resources 13 in the state; 14 (2) establish priorities for the application of the provisions of this 15 chapter to the various commercial fisheries of the state; 16 (3) establish administrative areas suitable for regulating and 17 controlling entry into the commercial fisheries; 18 (4) establish, for all types of gear, the maximum number of entry 19 permits for each administrative area; 20 (5) designate, when necessary to accomplish the purposes of this 21 chapter, particular species for which separate interim-use permits or entry permits will 22 be issued; 23 (6) establish qualifications for the issuance of entry permits; 24 (7) issue entry permits to qualified applicants; 25 (8) issue interim-use permits as provided in AS 16.43.210, 16.43.220, 26 and 16.43.225; 27 (9) establish, for all types of gear, the optimum number of entry 28 permits for each administrative area; 29 (10) administer the buy-back program provided for in AS 16.43.310 30 and 16.43.320 to reduce the number of outstanding entry permits to the optimum 31 number of entry permits;

01 (11) provide for the transfer and reissuance of entry permits to 02 qualified transferees; 03 (12) provide for the transfer and reissuance of entry permits for 04 alternative types of legal gear, in a manner consistent with the purposes of this 05 chapter; 06 (13) establish and administer the collection of the annual fees provided 07 for in AS 16.43.160; 08 (14) administer the issuance of commercial fishing vessel licenses 09 under AS 16.05.490; 10 (15) issue educational entry permits to applicants who qualify under 11 the provisions of AS 16.43.340 - 16.43.390; 12 (16) establish reasonable user fees for services; 13 (17) issue landing permits under AS 16.05.675 and regulations adopted 14 under that section; 15 (18) establish and collect annual fees for the issuance of landing 16 permits that reasonably reflect the costs incurred in the administration and 17 enforcement of provisions of law related to landing permits; 18 (19) establish a moratorium on entry into commercial fisheries as 19 provided in AS 16.43.225; 20 (20) [REPEALED 21 (21)] when requested by a regional development organization formed 22 under AS 44.33.895, provide to the organization, without charge, public information 23 contained in the commission's data with respect to relevant fisheries, including limited 24 fisheries, fishery participants, and limited entry permit holders' harvests and earnings; 25 and 26 (21) administer, when necessary to accomplish the purposes of this 27 chapter, a Bering Sea hair crab fishery vessel permit system under AS 16.43.451 - 28 16.43.521. 29 * Sec. 4. AS 16.43 is amended by adding new sections to read: 30 Sec. 16.43.451. Bering Sea hair crab fishery vessel permit system. (a) The 31 commission may establish a vessel permit system under AS 16.43.451 - 16.43.521 for

01 the Bering Sea hair crab fishery if the commission determines that 02 (1) the regulation of entry into the fishery is necessary to achieve the 03 purposes of this chapter; 04 (2) a vessel permit system would achieve the purposes of this chapter; 05 and 06 (3) either 07 (A) limiting the number of participants in the fishery under 08 AS 16.43.140 - 16.43.330 would not achieve the purposes of this chapter; or 09 (B) regulating the number of vessels in the fishery would 10 enable the state to gain or retain management of the fishery. 11 (b) If the federal government has delegated management authority in the 12 United States exclusive economic zone to the state for the Bering Sea hair crab 13 fishery, the commission may, to the extent consistent with this chapter, adopt 14 regulations to ensure that the vessel permit system is consistent with applicable federal 15 laws. 16 (c) If the commission establishes a vessel permit system for a fishery that 17 involves more than one fishery resource, type of gear, or administrative area, the 18 commission may limit, as the commission determines appropriate, the fishery 19 resources that may be harvested under the vessel permit, the types of gear that may be 20 used under the vessel permit, or the areas where fishing may occur under the vessel 21 permit. The commission shall adopt criteria, as appropriate, for determining 22 (1) how restrictions on fishery resources, types of gear, and areas 23 fished are established for individual vessel interim-use permits and vessel entry 24 permits; and 25 (2) how eligibility to take a particular fishery resource, to use a 26 particular type of gear, or to fish in a particular area is established. 27 (d) The commission may, after consultation with the Department of Fish and 28 Game, regulate the fishing capacity or effort authorized under a vessel interim-use 29 permit or a vessel entry permit if the commission finds that limitations on fishing 30 capacity or effort are necessary to achieve the purposes of this chapter. The 31 commission shall adopt criteria, as appropriate, for measuring the fishing capacity or

01 effort of a vessel and for determining how restrictions on vessel fishing capacity or 02 effort are established for individual vessel interim-use permits and vessel entry 03 permits. The criteria may be based on past participation. 04 (e) The commission shall adopt regulations limiting the number of vessel 05 permits that may be held by a permit holder or group of related permit holders if the 06 commission finds that limiting the number of vessel permits that may be held by a 07 permit holder or group of related permit holders is necessary to prevent the excessive 08 concentration of ownership of vessel permits in the fishery. 09 (f) By February 1 of the filing year, the commission shall submit a biennial 10 report to the governor and the legislature concerning the harvest and earnings of the 11 vessel-based limited entry fisheries system for the Bering Sea hair crab during the 12 preceding two years. The commission shall notify the legislature that the report is 13 available. 14 Sec. 16.43.461. Initial issuance of vessel permits. (a) For the fishery that the 15 commission establishes a vessel permit system for under AS 16.43.451, the 16 commission shall establish qualifications for vessel interim-use permits and vessel 17 entry permits. The qualifications may include a qualification date, eligibility period, 18 recent and past participation requirements, minimum requirements for the nature and 19 degree of ownership interest that a permit holder must have in a vessel in order to 20 receive a vessel permit for the vessel, and criteria for receiving transferable and 21 nontransferable vessel entry permits. In adopting qualifications for transferable and 22 nontransferable vessel entry permits, the commission shall consider 23 (1) information provided by the Department of Fish and Game, 24 participants in the fishery, owners of vessels and gear used in the fishery, and other 25 interested parties; 26 (2) the level of recent and past participation and harvest in the fishery, 27 the nature of the fishery, and the need to ensure the manageability of the fishery and 28 conservation of the fishery resource. 29 (b) If the commission establishes a vessel permit system under AS 16.43.451 30 for a fishery that was subject to a moratorium on entry of new vessels under former 31 AS 16.43.901, the commission shall incorporate some or all of the vessel eligibility

01 criteria established for the moratorium into the eligibility criteria for vessel permits 02 issued under the vessel permit system. 03 (c) Pending the issuance of vessel entry permits for a fishery for which the 04 commission has established a vessel permit system under AS 16.43.451, the 05 commission shall issue a vessel interim-use permit to the owner of each vessel that the 06 commission finds is potentially eligible to receive a vessel entry permit. A vessel 07 interim-use permit is renewable from year to year; however, a vessel interim-use 08 permit expires at the end of the period for which the permit was issued and may not be 09 renewed after a final determination by the commission that the vessel is or is not 10 eligible for a vessel entry permit. 11 (d) The commission shall issue vessel entry permits for a fishery, subject to 12 conditions established by the commission under AS 16.43.451 - 16.43.521, to the 13 owner of each vessel that the commission finds is eligible to receive a vessel entry 14 permit for that fishery. 15 (e) The commission shall adopt regulations regarding 16 (1) the determination of which person or entity is eligible to receive a 17 vessel interim-use permit or a vessel entry permit for a vessel in the event of 18 competing claims to ownership of the vessel; and 19 (2) the substitution of another vessel by the applicant for a vessel 20 interim-use permit or a vessel entry permit if the vessel or vessels used to establish 21 eligibility for a vessel entry permit are lost, or are retired from the fishery by the vessel 22 owner, before the initial issuance of a vessel entry permit for the vessel. 23 Sec. 16.43.471. Optimum number range of vessel permits. (a) If, after the 24 initial issuance of vessel entry permits for the Bering Sea hair crab fishery, the 25 commission determines that a long-term biological or economic change has occurred 26 in the fishery, the commission, in consultation with the Department of Fish and Game, 27 shall establish the optimum number range of vessel entry permits for the fishery. 28 (b) In determining the optimum number range of vessel entry permits, the 29 commission shall seek to 30 (1) facilitate sound management of the fishery; 31 (2) promote

01 (A) the economic health and stability of the fishery; 02 (B) broad access to the fishery; 03 (C) conservation of the fish resources taken in the fishery; 04 (D) quality seafood products; and 05 (3) discourage waste of harvested fish. 06 (c) The commission may increase or decrease the optimum number range of 07 vessel entry permits for a fishery if the commission finds that an established long-term 08 change in the biological or economic condition of the fishery has occurred and that the 09 number of vessel entry permits that are necessary to achieve the goals set out in (b) of 10 this section has substantially changed. 11 (d) If the optimum number range of vessel entry permits is less than the 12 number of outstanding vessel permits for the fishery, the commission may adopt 13 regulations to allow the voluntary consolidation of vessel entry permits by permit 14 holders, including entities. The commission may investigate procedures to 15 permanently reduce the number of vessel permits issued for a fishery to within the 16 optimum number range. 17 (e) If the optimum number range of vessel entry permits is greater than the 18 number of permits authorized for the fishery, the commission shall issue additional 19 vessel entry permits until the number of vessel entry permits is consistent with the 20 optimum number range for the fishery. The commission shall obtain fair market value 21 for new vessel entry permits issued under this subsection. The commission shall 22 determine whether the additional vessel entry permits issued under this subsection are 23 transferable or nontransferable. 24 Sec. 16.43.481. Transfer and expiration of vessel entry permits. (a) The 25 commission may adopt regulations authorizing the transfer of a transferable vessel 26 entry permit to an eligible transferee and establishing the terms and conditions under 27 which vessel entry permits may be transferred. The commission may require that the 28 transferee of a vessel entry permit must have a legal ownership interest in the vessel 29 identified on the vessel entry permit. The commission may establish by regulation 30 minimum requirements for the nature and degree of ownership interest that the 31 transferee must have in the vessel.

01 (b) The commission may adopt regulations authorizing the simultaneous 02 transfer of a transferable vessel entry permit to an eligible transferee and the 03 substitution of another vessel for the vessel identified on the permit under 04 AS 16.43.491. 05 (c) The commission shall adopt regulations relating to the expiration of 06 nontransferable vessel entry permits. 07 Sec. 16.43.491. Substitution of vessels. (a) The commission shall adopt 08 regulations providing for the permanent or temporary substitution, after the initial 09 issuance of vessel entry permits, of another vessel for the vessel that is identified on a 10 vessel entry permit. The commission may specify by regulation the nature and degree 11 of legal ownership interest that a permit holder must have in the vessel that is 12 permanently or temporarily substituted for the vessel identified on the permit. Upon 13 the approval of a permanent substitution of a vessel, the commission shall issue a new 14 vessel entry permit for the substituted vessel. 15 (b) A substituted vessel and the operation of the substituted vessel are subject 16 to all terms and conditions attached to the vessel entry permit at the time that the 17 vessel permit is transferred from the original vessel to the substituted vessel. 18 Sec. 16.43.501. Renewal of vessel permits. (a) A vessel interim-use permit or 19 vessel entry permit is issued for one year and must be renewed annually. 20 (b) A vessel interim-use permit or vessel entry permit may not be renewed 21 until the fees for each preceding year during which the permit has not been renewed 22 are paid. 23 (c) Failure to renew a vessel entry permit for two consecutive years from the 24 year of last renewal results in a forfeiture of the permit unless the forfeiture is waived 25 by the commission for good cause. If an administrative closure of a fishery occurs for 26 an entire season, the commission may not count the season toward the two-year 27 period. 28 Sec. 16.43.511. Vessel permit fees. (a) The commission shall establish fees for 29 the issuance and annual renewal of vessel interim-use permits and vessel entry 30 permits. Annual fees established under this subsection may not exceed $2,500 and 31 shall reasonably reflect the rate of economic return for the fishery.

01 (b) The commission shall waive the payment of the annual fees for a vessel 02 interim-use permit or a vessel entry permit for a fishery in which there was an 03 administrative closure for the entire season. 04 (c) Subject to AS 37.10.050(a), the commission may establish fees for 05 processing applications for vessel interim-use permits and vessel entry permits, for 06 transfer of vessel entry permits, and for permanent and temporary substitution of 07 vessels. 08 (d) The commission may charge interest at a rate not to exceed the legal rate 09 of interest established in AS 45.45.010(a) on fees established under the section that are 10 more than 60 days overdue. 11 Sec. 16.43.521. General Bering Sea hair crab vessel permit provisions. (a) 12 A person or entity may not operate a vessel or use a vessel to take fish in the Bering 13 Sea hair crab commercial fishery for which a vessel interim-use permit or vessel entry 14 permit is required unless the appropriate vessel permit has been issued for the vessel 15 and is posted in a prominent location on the vessel. 16 (b) A person or entity may not hold more than one vessel entry permit for the 17 Bering Sea hair crab fishery unless 18 (1) the number of vessel entry permits held by the person or entity is 19 consistent with regulations of the commission regarding concentration of ownership of 20 vessel permits in the fishery; and 21 (2) either 22 (A) the person or entity qualified for each vessel entry permit at 23 the time of the initial issuance of vessel entry permits for the fishery; or 24 (B) the vessel entry permits are issued for a vessel for which 25 the person or entity already holds another vessel entry permit for that fishery. 26 (c) The operator of a vessel for which a vessel interim-use permit or vessel 27 entry permit has been issued shall comply with the terms of the vessel permit while the 28 vessel is operated in the fishery for which the permit is issued. 29 (d) A vessel interim-use permit and a vessel entry permit constitute a use 30 privilege that may be modified or revoked by order of the commission or by law 31 without compensation.

01 (e) A vessel entry permit may not be 02 (1) pledged, mortgaged, leased, or encumbered in any way; 03 (2) transferred with any retained right of repossession or foreclosure, 04 or on any condition requiring a subsequent transfer; or 05 (3) attached, distrained, or sold on execution of judgment or under any 06 other process or order of any court. 07 (f) Unless the person who holds a vessel entry permit has expressed a contrary 08 intent in a will that is probated, the commission shall, upon the death of the person, 09 transfer the vessel entry permit by right of survivorship directly to the person's 10 surviving spouse or, if no spouse survives, to another person designated by the vessel 11 permit holder on a form provided by the commission. If no spouse survives and if the 12 person designated on the form, if any, does not survive, the permit passes as part of the 13 vessel permit holder's estate. A designation under this subsection must be 14 acknowledged before a person authorized to administer an oath under AS 09.63.010 or 15 must be witnessed by two persons who are qualified under AS 13.12.505 to witness 16 the will of the vessel permit holder. A vessel entry permit is exempt from the claims of 17 creditors of the estate. 18 (g) AS 16.43.451 - 16.43.521 do not alter the requirement for an interim-use 19 permit or entry permit under AS 16.43.140 or a vessel license under AS 16.05.490 - 20 16.05.520. 21 (h) Nothing in AS 16.43.451 - 16.43.521 limits the powers of the Board of 22 Fisheries or the Department of Fish and Game. 23 (i) Notwithstanding AS 16.05.815 and AS 16.43.975, the commission may 24 release to the owner of a vessel information on the vessel's history of harvests in a 25 fishery that is necessary to apply for a vessel interim-use permit or vessel entry permit 26 under AS 16.43.451 - 16.43.521. 27 * Sec. 5. AS 16.43.960(a) is amended to read: 28 (a) The commission may revoke, suspend, or transfer all entry or interim-use 29 permits, vessel entry permits, or vessel interim-use permits held by a person or 30 entity who knowingly provides or assists in providing false information, or fails to 31 correct false information provided to the commission for the purpose of obtaining a

01 benefit for self or another, including the issuance, renewal, duplication, or transfer of 02 an entry or interim-use permit, [OR] vessel license, vessel entry permit, or vessel 03 interim-use permit. The commission may suspend, as appropriate, that person's or 04 entity's eligibility to hold an entry or interim-use permit, vessel entry permit, or 05 vessel interim-use permit for a period not to exceed three years, and may impose an 06 administrative fine of not more than $5,000 on the person or [. THE COMMISSION 07 MAY ALSO IMPOSE AN ADMINISTRATIVE FINE OF NOT MORE THAN 08 $5,000 ON AN] entity whose officers, employees, representatives, or agents 09 knowingly provide or assist in providing false information, or fail to correct false 10 information provided, to the commission for the purpose of obtaining a benefit. 11 * Sec. 6. AS 16.43.960(a), as amended by sec. 5 of this Act, is amended to read: 12 (a) The commission may revoke, suspend, or transfer all entry or interim-use 13 permits [, VESSEL ENTRY PERMITS, OR VESSEL INTERIM-USE PERMITS] 14 held by a person [OR ENTITY] who knowingly provides or assists in providing false 15 information, or fails to correct false information provided to the commission for the 16 purpose of obtaining a benefit for self or another, including the issuance, renewal, 17 duplication, or transfer of an entry or interim-use permit or [,] vessel license [, 18 VESSEL ENTRY PERMIT, OR VESSEL INTERIM-USE PERMIT]. The 19 commission may suspend [, AS APPROPRIATE,] that person's [OR ENTITY'S] 20 eligibility to hold an entry or interim-use permit [, VESSEL ENTRY PERMIT, OR 21 VESSEL INTERIM-USE PERMIT] for a period not to exceed three years, and may 22 impose an administrative fine of not more than $5,000 on the person. The commission 23 may also impose an administrative fine of not more than $5,000 on an [OR] entity 24 whose officers, employees, representatives, or agents knowingly provide or assist in 25 providing false information, or fail to correct false information provided, to the 26 commission for the purpose of obtaining a benefit. 27 * Sec. 7. AS 16.43.970(a) is amended to read: 28 (a) A person who violates a provision of this chapter or a regulation adopted 29 under this chapter or an entity that violates a provision of AS 16.43.451 - 16.43.521 30 or a regulation adopted under AS 16.43.451 - 16.43.521 is, upon conviction, guilty 31 of a class B misdemeanor and is punishable by a fine of not more than $5,000 for a

01 first conviction, and a fine of not more than $10,000 for a second or third conviction. 02 Upon a first or second conviction under this subsection, the court may in its discretion 03 also order the commission to suspend the commercial fishing privileges of the person 04 or entity for a period of not more than three years and to revoke one or more or all 05 commercial fishing permits held by the person or entity. Upon a third or subsequent 06 conviction under this subsection, the person or entity is also subject to a loss of 07 commercial fishing privileges as provided under (i) of this section. This subsection 08 does not apply to violations of AS 16.43.140(a). 09 * Sec. 8. AS 16.43.970(a), as amended by sec. 7 of this Act, is amended to read: 10 (a) A person who violates a provision of this chapter or a regulation adopted 11 under this chapter [OR AN ENTITY THAT VIOLATES A PROVISION OF 12 AS 16.43.451 - 16.43.521 OR A REGULATION ADOPTED UNDER AS 16.43.451 - 13 16.43.521] is, upon conviction, guilty of a class B misdemeanor and is punishable by a 14 fine of not more than $5,000 for a first conviction, and a fine of not more than $10,000 15 for a second or third conviction. Upon a first or second conviction under this 16 subsection, the court may in its discretion also order the commission to suspend the 17 commercial fishing privileges of the person [OR ENTITY] for a period of not more 18 than three years and to revoke one or more or all commercial fishing permits held by 19 the person [OR ENTITY]. Upon a third or subsequent conviction under this 20 subsection, the person [OR ENTITY] is also subject to a loss of commercial fishing 21 privileges as provided under (i) of this section. This subsection does not apply to 22 violations of AS 16.43.140(a). 23 * Sec. 9. AS 16.43.970(b) is amended to read: 24 (b) A person or entity who knowingly makes a false statement to the 25 commission for the purpose of obtaining a benefit, including the issuance, renewal, 26 duplication, or transfer of an entry or interim-use permit, [OR] vessel license, vessel 27 interim-use permit, or vessel entry permit, or a person who assists another by 28 knowingly making a false statement to the commission for the purpose of obtaining a 29 benefit for another, is guilty of the crime of unsworn falsification in the second degree 30 as set out in AS 11.56.210. Upon conviction, the person or entity is also subject to 31 suspension of commercial fishing privileges and revocation of commercial fishing

01 permits under (i) of this section. 02 * Sec. 10. AS 16.43.970(b), as amended by sec. 9 of this Act, is amended to read: 03 (b) A person [OR ENTITY] who knowingly makes a false statement to the 04 commission for the purpose of obtaining a benefit, including the issuance, renewal, 05 duplication, or transfer of an entry or interim-use permit or [,] vessel license [, 06 VESSEL INTERIM-USE PERMIT, OR VESSEL ENTRY PERMIT,] or a person who 07 assists another by knowingly making a false statement to the commission for the 08 purpose of obtaining a benefit for another, is guilty of the crime of unsworn 09 falsification in the second degree as set out in AS 11.56.210. Upon conviction, the 10 person [OR ENTITY] is also subject to suspension of commercial fishing privileges 11 and revocation of commercial fishing permits under (i) of this section. 12 * Sec. 11. AS 16.43.970(d) is amended to read: 13 (d) If a permit holder is charged by the state with violating a provision of this 14 chapter or a regulation adopted under this chapter, the holder may not transfer any 15 interim-use or entry permit under AS 16.43.170 or any transferable vessel entry 16 permit under AS 16.43.451 - 16.43.521 until after the final adjudication or dismissal 17 of the charges. 18 * Sec. 12. AS 16.43.970(d), as amended by sec. 11 of this Act, is amended to read: 19 (d) If a permit holder is charged by the state with violating a provision of this 20 chapter or a regulation adopted under this chapter, the holder may not transfer any 21 interim-use or entry permit under AS 16.43.170 [OR ANY TRANSFERABLE 22 VESSEL ENTRY PERMIT UNDER AS 16.43.451 - 16.43.521] until after the final 23 adjudication or dismissal of the charges. 24 * Sec. 13. AS 16.43.970(e) is amended to read: 25 (e) Notwithstanding any other provision of this section, an interim-use or entry 26 permit or transferable vessel entry permit may not be transferred while under 27 suspension, without the consent of the commission. 28 * Sec. 14. AS 16.43.970(e), as amended by sec. 13 of this Act, is amended to read: 29 (e) Notwithstanding any other provision of this section, an interim-use or entry 30 permit [OR TRANSFERABLE VESSEL ENTRY PERMIT] may not be transferred 31 while under suspension, without the consent of the commission.

01 * Sec. 15. AS 16.43.970(i) is amended to read: 02 (i) Upon the conviction of a person or entity for an offense described under 03 (a), (b), or (g) of this section, the court shall immediately notify the commission of the 04 conviction. The notice provided by the court shall be accompanied by an order 05 suspending commercial fishing privileges and revoking commercial fishing permits 06 under (a) of this section, as appropriate. The commission shall, upon receipt of 07 (1) an order from the court under (a) of this section, suspend the 08 commercial fishing privileges of a person or entity for the period set by the court and 09 revoke commercial fishing permits held by the person or entity as directed by the 10 court; 11 (2) a notice from the court that a person or entity has been convicted 12 of a third or subsequent violation of (a) of this section, suspend all commercial fishing 13 privileges of the person or entity for a period of three years from the date of conviction 14 and revoke all commercial fishing permits held by the person or entity; 15 (3) a notice from the court that a person or entity has been convicted 16 of a violation described under (b) of this section, suspend all commercial fishing 17 privileges of the person or entity for a period of three years from the date of 18 conviction and revoke all commercial fishing permits held by the person or entity; 19 (4) a notice from the court that a person has been convicted of a 20 violation described under (g)(1) of this section, suspend all commercial fishing 21 privileges of the person for a period of one year from the date of conviction; 22 (5) a notice from the court that a person has been convicted of a 23 violation described under (g)(2) of this section, suspend all commercial fishing 24 privileges of the person for a period of two years from the date of conviction; 25 (6) a notice from the court that a person has been convicted of a 26 violation described under (g)(3) of this section, suspend all commercial fishing 27 privileges of the person for a period of five years from the date of conviction. 28 * Sec. 16. AS 16.43.970(i), as amended by sec. 15 of this Act, is amended to read: 29 (i) Upon the conviction of a person [OR ENTITY] for an offense described 30 under (a), (b), or (g) of this section, the court shall immediately notify the commission 31 of the conviction. The notice provided by the court shall be accompanied by an order

01 suspending commercial fishing privileges and revoking commercial fishing permits 02 under (a) of this section, as appropriate. The commission shall, upon receipt of 03 (1) an order from the court under (a) of this section, suspend the 04 commercial fishing privileges of a person [OR ENTITY] for the period set by the 05 court and revoke commercial fishing permits held by the person [OR ENTITY] as 06 directed by the court; 07 (2) a notice from the court that a person [OR ENTITY] has been 08 convicted of a third or subsequent violation of (a) of this section, suspend all 09 commercial fishing privileges of the person [OR ENTITY] for a period of three years 10 from the date of conviction and revoke all commercial fishing permits held by the 11 person [OR ENTITY]; 12 (3) a notice from the court that a person [OR ENTITY] has been 13 convicted of a violation described under (b) of this section, suspend all commercial 14 fishing privileges of the person [OR ENTITY] for a period of three years from the date 15 of conviction and revoke all commercial fishing permits held by the person [OR 16 ENTITY]; 17 (4) a notice from the court that a person has been convicted of a 18 violation described under (g)(1) of this section, suspend all commercial fishing 19 privileges of the person for a period of one year from the date of conviction; 20 (5) a notice from the court that a person has been convicted of a 21 violation described under (g)(2) of this section, suspend all commercial fishing 22 privileges of the person for a period of two years from the date of conviction; 23 (6) a notice from the court that a person has been convicted of a 24 violation described under (g)(3) of this section, suspend all commercial fishing 25 privileges of the person for a period of five years from the date of conviction. 26 * Sec. 17. AS 16.43.970(j)(1) is amended to read: 27 (1) "commercial fishing permit" means an entry permit, [OR] an 28 interim-use permit, a vessel entry permit, or a vessel interim-use permit issued 29 under this chapter; 30 * Sec. 18. AS 16.43.970(j)(1), as amended by sec. 17 of this Act, is amended to read: 31 (1) "commercial fishing permit" means an entry permit or [,] an

01 interim-use permit [, A VESSEL ENTRY PERMIT, OR A VESSEL INTERIM-USE 02 PERMIT] issued under this chapter; 03 * Sec. 19. AS 43.33 is amended by adding a new section to article 14 to read: 04 Sec. 44.33.896. Alaska regional economic assistance program. (a) The 05 department shall 06 (1) encourage the formation of regional development organizations by 07 providing assistance in forming organizations to interested individuals, including 08 information on how to qualify and apply for regional development grants and federal 09 funding under 42 U.S.C. 3121 - 3246 (Public Works and Economic Development Act 10 of 1965), as amended; 11 (2) assist an interested individual in establishing boundaries for a 12 proposed organization to ensure that the region 13 (A) is of sufficient geographic size and contains a large enough 14 population to form an economically viable unit with shared interests, 15 resources, traditions, and goals; 16 (B) contains at least one municipality that serves as a regional 17 center; and 18 (C) contains the entire area of each municipality included in the 19 region; 20 (3) gather information about regional economic issues, international 21 trade, and tourism from organizations; 22 (4) serve as liaison between organizations and other state agencies and 23 encourage other agencies to make resources available to help accomplish goals of the 24 organizations; 25 (5) assist each organization to 26 (A) provide services designed to encourage economic 27 development to local communities and businesses; 28 (B) collect and distribute economic information relevant to the 29 region; 30 (C) participate in state marketing campaigns and join state 31 trade missions that are relevant to the region; and

01 (D) develop and implement strategies to attract new industry, 02 expand international trade opportunities, and encourage tourism within the 03 region. 04 (b) Subject to (c) of this section, the department may make regional 05 development grants to organizations for projects the department determines will be of 06 value in encouraging economic development. During a fiscal year, the department may 07 make no more than 15 grants and may only make grants to one organization from a 08 particular region. An organization that is designated an economic development district 09 under 42 U.S.C. 3171 qualifies for grants under this subsection. The department shall 10 by regulation adopt procedures for applying for regional development grants, 11 including application deadlines. The department may by regulation establish 12 additional grant eligibility requirements. 13 (c) To qualify for a grant, a regional development organization must match the 14 grant by providing an amount of money from nonstate sources. The department shall 15 establish by regulation a formula that determines the amount of the match required 16 under this subsection based on the capability of each organization to generate money 17 from nonstate sources. The amount of match required may not exceed the amount of 18 grant money and may not be less than 20 percent of the grant. The total amount of 19 grant money provided to an organization during a fiscal year may not exceed 20 $100,000. 21 (d) There is established in the department the regional development fund 22 consisting of appropriations to the fund. Money from the fund may be used only for 23 regional development grants. 24 (e) Not later than February 1 of each year, the department shall compile a 25 report on statewide and regional economic development projects and on the activities 26 of regional development organizations that have received assistance under (a) of this 27 section or a grant under (b) of this section. The department shall notify the legislature 28 that the report is available. The report must include the information listed in (1) - (3) 29 of this subsection. To compile the report, the department shall require each regional 30 development organization to provide the following information to the department on 31 or before a date set by the department:

01 (1) an assistance and funding summary for the previous fiscal year that 02 includes 03 (A) the assistance provided to the organization by the 04 department, the amount and purposes of grants made to the organization by the 05 department, and a statement of any other funding received by the organization 06 from the state; 07 (B) the amount of federal funding and grants received by the 08 organization; and 09 (C) the amounts and sources of private sector sponsorships; 10 (2) an activity summary that includes 11 (A) a summary of the meetings of the board of the regional 12 development organization held during the past year, including the number of 13 meetings and the date, location, and a brief description of the agenda of each 14 meeting; 15 (B) a summary of economic development initiatives being 16 undertaken and services being provided by the regional development 17 organization at the time of the report; 18 (C) a work plan containing goals, objectives, and strategies for 19 addressing regional economic needs; 20 (D) a summary of any comprehensive economic development 21 strategy being implemented by the board at the time of the report; and 22 (E) the status of projects funded by grants from the state or the 23 federal government; and 24 (3) an economic development summary that includes 25 (A) potential projects identified by the board that may enhance 26 economic development; and 27 (B) challenges to regional economic development identified by 28 the board. 29 (f) In this section, 30 (1) "department" means the Department of Commerce, Community, 31 and Economic Development;

01 (2) "regional development organization" or "organization" means a 02 nonprofit organization or nonprofit corporation formed to encourage economic 03 development within a particular region of the state that includes the entire area of each 04 municipality within that region and that has a board of directors that represents the 05 region's economic, political, and social interests. 06 * Sec. 20. AS 16.43.100(a)(21), 16.43.451, 16.43.461, 16.43.471, 16.43.481, 16.43.491, 07 16.43.501, 16.43.511, and 16.43.521 are repealed. 08 * Sec. 21. AS 44.33.896 is repealed July 1, 2016. 09 * Sec. 22. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 INITIAL REPORT FILED UNDER AS 44.33.896(e). In addition to the requirements 12 of AS 44.33.896(e), enacted by sec. 19 of this Act, the Department of Commerce, 13 Community, and Economic Development shall include, in the first report compiled after the 14 effective date of sec. 19 of this Act, a funding summary for the previous three fiscal years. 15 * Sec. 23. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 TRANSITION: REGULATIONS. Notwithstanding AS 44.62.190, the Department of 18 Commerce, Community, and Economic Development may continue to use and enforce 19 regulations previously adopted to administer the former Alaska Regional Economic 20 Assistance Program to the extent those regulations do not conflict with AS 44.33.896, added 21 by sec. 19 of this Act. The Department of Commerce, Community, and Economic 22 Development shall update and readopt those regulations in accordance with AS 44.62 to 23 conform to the provisions of this Act. 24 * Sec. 24. The uncodified law of the State of Alaska is amended by adding a new section to 25 read: 26 RETROACTIVITY. AS 44.33.896, enacted by sec. 19 of this Act, is retroactive to 27 July 1, 2013. 28 * Sec. 25. Sections 2, 6, 8, 10, 12, 14, 16, 18, and 20 of this Act take effect December 30, 29 2018. 30 * Sec. 26. AS 16.43.451(f), enacted by sec. 4 of this Act, takes effect January 1, 2015. 31 * Sec. 27. Except as provided in secs. 25 and 26 of this Act, this Act takes effect

01 immediately under AS 01.10.070(c).