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HB 112: "An Act repealing the Alaska Commercial Fisheries Entry Commission and transferring its duties to a commercial fisheries entry division established in the Department of Fish and Game and the office of administrative hearings; and providing for an effective date."

00 HOUSE BILL NO. 112 01 "An Act repealing the Alaska Commercial Fisheries Entry Commission and 02 transferring its duties to a commercial fisheries entry division established in the 03 Department of Fish and Game and the office of administrative hearings; and providing 04 for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 16.05.050(a) is amended to read: 07 (a) The commissioner has, but not by way of limitation, the following powers 08 and duties: 09 (1) through the appropriate state agency and under the provisions of 10 AS 36.30 (State Procurement Code), to acquire by gift, purchase, or lease, or other 11 lawful means, land, buildings, water, rights-of-way, or other necessary or proper real 12 or personal property when the acquisition is in the interest of furthering an objective or 13 purpose of the department and the state; 14 (2) under the provisions of AS 36.30, to design and construct

01 hatcheries, pipelines, rearing ponds, fishways, and other projects beneficial for the fish 02 and game resources of the state; 03 (3) to accept money from any person under conditions requiring the use 04 of the money for specific purposes in the furtherance of the protection, rehabilitation, 05 propagation, preservation, or investigation of the fish and game resources of the state 06 or in settlement of claims for damages to fish or game resources; 07 (4) to collect, classify, and disseminate statistics, data, and information 08 that, in the commissioner's discretion, will tend to promote the purposes of this title 09 except AS 16.51 and AS 16.52; 10 (5) to take, capture, propagate, transport, buy, sell, or exchange fish or 11 game or eggs for propagating, scientific, public safety, or stocking purposes; 12 (6) under the provisions of AS 36.30, to provide public facilities where 13 necessary or proper to facilitate the taking of fish or game, and to enter into 14 cooperative agreements with any person to effect them; 15 (7) to exercise administrative, budgeting, and fiscal powers; 16 (8) under the provisions of AS 36.30, to construct, operate, supervise, 17 and maintain vessels used by the department; 18 (9) to authorize the holder of an interim-use permit under AS 16.43 to 19 engage on an experimental basis in commercial taking of a fishery resource with 20 vessel, gear, and techniques not presently qualifying for licensing under this chapter in 21 conformity with standards established by the commercial fisheries entry division of 22 the department under AS 16.43 [ALASKA COMMERCIAL FISHERIES ENTRY 23 COMMISSION]; 24 (10) not later than January 31 of each year, to provide to the 25 commissioner of revenue the names of those fish and shellfish species that the 26 commissioner of fish and game designates as developing commercial fish species for 27 that calendar year; a fish or shellfish species is a developing commercial fish species 28 if, within a specified geographical region, 29 (A) the optimum yield from the harvest of the species has not 30 been reached; 31 (B) a substantial portion of the allowable harvest of the species

01 has been allocated to fishing vessels of a foreign nation; or 02 (C) a commercial harvest of the fish species has recently 03 developed; 04 (11) to initiate or conduct research necessary or advisable to carry out 05 the purposes of this title except AS 16.51 and AS 16.52; 06 (12) to enter into cooperative agreements with agencies of the federal 07 government, educational institutions, or other agencies or organizations, when in the 08 public interest, to carry out the purposes of this title except AS 16.51 and AS 16.52; 09 (13) to implement an on-board observer program authorized by the 10 Board of Fisheries under AS 16.05.251(a)(13); implementation 11 (A) must be as unintrusive to vessel operations as practicable; 12 and 13 (B) must make scheduling and scope of observers' activities as 14 predictable as practicable; 15 (14) to sell fish caught during commercial fisheries test fishing 16 operations; 17 (15) to establish and charge fees equal to the cost of services provided 18 by the department, including provision of public shooting ranges, broodstock and eggs 19 for private nonprofit hatcheries, department publications, and other direct services, and 20 reasonable fees for the use of state facilities managed by the department; fees 21 established under this paragraph for tours of hatchery facilities, commercial use of 22 sport fishing access sites, and for operation of state hatchery facilities by private 23 aquaculture associations are not subject to the cost limit under AS 37.10.050(a); 24 (16) to permit and regulate aquatic farming in the state in a manner that 25 ensures the protection of the state's fish and game resources and improves the 26 economy, health, and well-being of the citizens of the state; 27 (17) to operate state housing and facilities for employees, contractors, 28 and others in support of the department's responsibilities and to charge rent that is 29 consistent with applicable collective bargaining agreements, or, if no collective 30 bargaining agreement is applicable, competitive with market conditions; rent received 31 from tenants shall be deposited in the general fund;

01 (18) [TO PETITION THE ALASKA COMMERCIAL FISHERIES 02 ENTRY COMMISSION, UNLESS THE BOARD OF FISHERIES DISAPPROVES 03 THE PETITION UNDER AS 16.05.251(g),] to establish a moratorium on new 04 entrants into commercial fisheries, unless the Board of Fisheries disapproves the 05 request under AS 16.05.251(g), 06 (A) that have experienced recent increases in fishing effort that 07 are beyond a low, sporadic level of effort; 08 (B) that have achieved a level of harvest that may be 09 approaching or exceeding the maximum sustainable level for the fishery; and 10 (C) for which there is insufficient biological and resource 11 management information necessary to promote the conservation and sustained 12 yield management of the fishery; 13 (19) to promote fishing, hunting, and trapping and preserve the heritage 14 of fishing, hunting, and trapping in the state; 15 (20) under the provisions of AS 16.43, to regulate and control entry 16 of participants and vessels into the commercial fisheries in the public interest and 17 without unjust discrimination. 18 * Sec. 2. AS 16.05.251(g) is amended to read: 19 (g) Upon request of the commissioner, the [THE] Board of Fisheries shall 20 consider imposing [A REQUEST OF THE COMMISSIONER FOR APPROVAL OF 21 A PETITION TO THE ALASKA COMMERCIAL FISHERIES ENTRY 22 COMMISSION TO ESTABLISH] a moratorium on new entrants into a commercial 23 fishery under AS 16.43.225 at the board's next regular or special meeting that follows 24 the board's receipt [BY THE BOARD] of the request [FOR APPROVAL OF THE 25 PETITION] and that allows time for the notice required under this subsection. The 26 board may consider the request of the commissioner [FOR APPROVAL OF THE 27 PETITION] only after 15 days' public notice of the board's intention to consider the 28 request [APPROVAL OF THE PETITION]. The board shall consider whether the 29 commissioner, in support of the request [FOR APPROVAL OF THE PETITION], has 30 adequately shown that the fishery meets requirements for a moratorium on new 31 entrants under AS 16.05.050. The board by a majority vote of its members at the

01 meeting when the request [PETITION] must be considered shall approve or 02 disapprove the request [PETITION]. 03 * Sec. 3. AS 16.05.450(b) is amended to read: 04 (b) The commercial fisheries entry division of the department [ALASKA 05 COMMERCIAL FISHERIES ENTRY COMMISSION] shall issue a vessel license 06 under AS 16.05.490 to each qualified vessel for which a written application has been 07 filed, at a place in the state designated by the commercial fisheries entry division of 08 the department [COMMISSION], containing the reasonable information required by 09 the commercial fisheries entry division of the department [COMMISSION] 10 together with the required fee. The application shall be simple in form and shall be 11 executed by the applicant under the penalty of unsworn falsification in the second 12 degree. 13 * Sec. 4. AS 16.05.480(d) is amended to read: 14 (d) Upon request, the commercial fisheries entry division of the department 15 [OR THE ALASKA COMMERCIAL FISHERIES ENTRY COMMISSION] shall 16 provide a social security number provided by an applicant for a license under this 17 section to the child support services agency created in AS 25.27.010, or the child 18 support agency of another state, for child support purposes authorized under law. 19 * Sec. 5. AS 16.05.520 is amended to read: 20 Sec. 16.05.520. Number plate. (a) The vessel license includes a permanent 21 number plate. The number plate shall be accompanied by a tab affixed to the number 22 plate designating the year to be fished. A number plate is not transferable, and the 23 number plate shall be considered a permanent fixture on [UPON] the vessel on 24 [UPON] which the number plate is originally placed. The number plate shall be 25 securely fastened well forward on the port side in plain sight. On a vessel with a 26 superstructure, the number plate shall be fastened on the port side of the 27 superstructure. A number plate remains the property of the state. The commercial 28 fisheries entry division of the department [ALASKA COMMERCIAL FISHERIES 29 ENTRY COMMISSION] may establish by regulation a reasonable fee for the initial 30 issuance of a permanent number plate. If a permanent number plate is accidentally 31 defaced, mutilated, destroyed, or lost, the person owning or operating the vessel shall

01 immediately apply for and may obtain a duplicate upon furnishing the commercial 02 fisheries entry division of the department [ALASKA COMMERCIAL FISHERIES 03 ENTRY COMMISSION] with the pertinent facts and a payment of a reasonable fee 04 established by the commercial fisheries entry division of the department 05 [COMMISSION] by regulation that is not less than $2. 06 (b) If a vessel carrying a number plate is lost, destroyed, or sold, the owner 07 shall immediately report the loss, destruction, or sale to the commercial fisheries 08 entry division of the department [ALASKA COMMERCIAL FISHERIES ENTRY 09 COMMISSION]. 10 * Sec. 6. AS 16.05.530(a) is amended to read: 11 (a) Upon payment of the vessel license fee and filing of the name and address 12 of the owner of the vessel or the owner's authorized agent, the name and number of the 13 vessel, a description of the vessel, the vessel license number, if any, the area to be 14 fished, and other reasonable information required by the commercial fisheries entry 15 division of the department [ALASKA COMMERCIAL FISHERIES ENTRY 16 COMMISSION], the commercial fisheries entry division of the department 17 [COMMISSION] shall issue a permanent number plate and a vessel license. If the 18 vessel has a permanent number plate, the commercial fisheries entry division of the 19 department [COMMISSION] shall issue a vessel license and tab designating the year 20 the license is valid. The tab shall be placed in the space provided on the permanent 21 number plate. 22 * Sec. 7. AS 16.05.675(a) is amended to read: 23 (a) A person who does not hold a limited entry permit or interim-use permit 24 issued under AS 16.43 or a fish transporter permit issued under AS 16.05.671 may not 25 deliver or land fish in the state unless the person 26 (1) holds a valid federal permit to operate commercial fishing gear in 27 the fishery conservation zone; and 28 (2) has been issued a landing permit by the commercial fisheries entry 29 division of the department [ALASKA COMMERCIAL FISHERIES ENTRY 30 COMMISSION]. 31 * Sec. 8. AS 16.05.675(c) is amended to read:

01 (c) The commercial fisheries entry division of the department 02 [COMMISSIONER] may [AUTHORIZE THE ALASKA COMMERCIAL 03 FISHERIES ENTRY COMMISSION TO] issue landing permits for a fishery if the 04 commissioner has made a written finding that the issuance of landing permits for that 05 fishery is consistent with state resource conservation and management goals. 06 * Sec. 9. AS 16.05.815(a) is amended to read: 07 (a) Except as provided in (b) and (c) of this section, records required by 08 regulations of the department concerning the landings of fish, shellfish, or fishery 09 products, and annual statistical reports of fishermen, buyers, and processors required 10 by regulation of the department are confidential and may not be released by the 11 department [OR BY THE ALASKA COMMERCIAL FISHERIES ENTRY 12 COMMISSION] except as set out in this subsection. [THE DEPARTMENT MAY 13 RELEASE THE RECORDS AND REPORTS SET OUT IN THIS SUBSECTION TO 14 THE ALASKA COMMERCIAL FISHERIES ENTRY COMMISSION.] The 15 department [AND THE ALASKA COMMERCIAL FISHERIES ENTRY 16 COMMISSION] may release the records and reports set out in this subsection to the 17 recipients identified in this subsection if the recipient, other than a recipient under (5) - 18 (9) of this subsection, agrees to maintain the confidentiality of the records and reports. 19 The department [AND THE ALASKA COMMERCIAL FISHERIES ENTRY 20 COMMISSION] may release 21 (1) any of the records and reports to the National Marine Fisheries 22 Service and the professional staff of the North Pacific Fishery Management Council as 23 required for preparation and implementation of the fishery management plans of the 24 North Pacific Fishery Management Council within the exclusive economic zone; 25 (2) any of the records and reports to the professional staff of the Pacific 26 States Marine Fisheries Commission who are employed in the Alaska Fisheries 27 Information Network project for the purpose of exchanging information with users 28 authorized by the department; 29 (3) any of the records and reports to the Department of Revenue to 30 assist the department in carrying out its statutory responsibilities; 31 (4) records or reports of the total value purchased by each buyer to a

01 municipality that levies and collects a tax on fish, shellfish, or fishery products if the 02 municipality requires records of the landings of fish, shellfish, or fishery products to 03 be submitted to it for purposes of verification of taxes payable; 04 (5) [SUCH] records and reports as necessary to be in conformity with a 05 court order; 06 (6) on request, the report of a person to the person whose fishing 07 activity is the subject of the report, or to a designee of the person whose fishing 08 activity is the subject of the report; 09 (7) on request, annual statistical reports of a fisherman, buyer, or 10 processor to the fisherman, buyer, or processor whose activity is the subject of the 11 report, or to a designee of the fisherman, buyer, or processor whose activity is the 12 subject of the report; 13 (8) any of the records and reports to the Department of Public Safety 14 for law enforcement purposes; 15 (9) fish tickets, fish ticket information, records required of sport fishing 16 guides, and annual statistical reports of fishermen, buyers, and processors and 17 information in those reports to the law enforcement personnel of the National Marine 18 Fisheries Service and the National Oceanic and Atmospheric Administration for the 19 purpose of enforcing fishery laws in waters of this state and in waters of the exclusive 20 economic zone adjacent to this state; 21 (10) fish tickets, fish ticket information, and records required of sport 22 fishing guides regarding halibut to the International Pacific Halibut Commission; 23 (11) any of the records and reports to the child support services agency 24 created in AS 25.27.010, or the child support enforcement agency of another state, for 25 child support purposes authorized under law; 26 (12) any of the records and reports to the Department of Natural 27 Resources to assist the department in carrying out its statutory responsibilities in 28 regard to sport fishing operations and sport fishing guides within the Kenai River 29 Special Management Area under AS 41.21.500 - 41.21.514; and 30 (13) fish ticket information and records or reports of the total value 31 purchased by each fisherman, buyer, or processor to the National Marine Fisheries

01 Service for the purpose of enforcing the industry fee system of a fishing capacity 02 reduction program under 16 U.S.C. 1861a (Magnuson-Stevens Fishery Conservation 03 and Management Act). 04 * Sec. 10. AS 16.10.333(a) is amended to read: 05 (a) Loans under AS 16.10.310(a) may be made to an individual commercial 06 fisherman for the purchase of a limited entry permit upon certification by the 07 commercial fisheries entry division of the Department of Fish and Game 08 [COMMISSION] that the fisherman is a person who qualifies as a transferee for the 09 permit under AS 16.43 and the regulations adopted under AS 16.43 [BY THE 10 COMMISSION]. 11 * Sec. 11. AS 16.10.333(d) is amended to read: 12 (d) Upon satisfaction of the note by the debtor, the commissioner shall certify 13 to the commercial fisheries entry division of the Department of Fish and Game 14 [COMMISSION] that the note has been satisfied. 15 * Sec. 12. AS 16.10.333(e) is amended to read: 16 (e) Upon certification as provided in (d) of this section, the commercial 17 fisheries entry division of the Department of Fish and Game [COMMISSION] 18 shall amend the permit certificate to list the debtor as the legal owner. 19 * Sec. 13. AS 16.10.335(a) is amended to read: 20 (a) If the debtor defaults on [UPON] a note for which a limited entry permit 21 has been pledged as security under AS 16.10.333 or 16.10.338, the commissioner shall 22 provide the debtor, by both certified and first class mail sent to the debtor's last known 23 address on file with the commissioner, with a notice of default that includes 24 (1) a description of the security given for the note including the number 25 assigned to the pledged permit by the commercial fisheries entry division of the 26 Department of Fish and Game [COMMISSION]; 27 (2) the date on [UPON] which the default occurred; 28 (3) the amount of the debtor's outstanding principal and interest as of 29 the date of the default notice, the total amount remaining on the note less unearned 30 interest, and the amount of daily interest; 31 (4) a statement that the debtor may, within 15 days after the postmark

01 date of the notice, request a hearing to submit evidence showing the debtor has not 02 defaulted; 03 (5) a statement that the note may be reinstated if it is brought current 04 within 120 days after the postmark date of the notice; 05 (6) a statement that, under AS 16.10.310(a)(4), the debtor may reinstate 06 the note by submitting to the commissioner a plan of repayment if the commissioner 07 accepts the debtor's plan of repayment; 08 (7) the place where reinstatement of the note or payment in full may be 09 made; and 10 (8) a notice in at least 10-point bold type stating: IMPORTANT: 11 YOUR FAILURE TO REINSTATE OR PAY THIS NOTE IN FULL BY THE DATE 12 SPECIFIED WILL RESULT IN A FORFEITURE OF ALL RIGHTS TO THE 13 PERMIT AND THE POSSIBILITY OF LEGAL ACTION BEING INSTITUTED 14 AGAINST YOU. 15 * Sec. 14. AS 16.10.337(a) is amended to read: 16 (a) Upon a foreclosure on an entry permit as provided in AS 16.10.335 or the 17 termination of a debtor's interest in an entry permit under AS 16.10.335(g), the 18 commissioner shall offer the commercial fisheries entry division of the Department 19 of Fish and Game [COMMISSION] a right of first refusal if the permit is subject to a 20 buy-back program under AS 16.43.290 - 16.43.330 at a price equal to the amount 21 outstanding on the note plus any costs the department directly incurred in 22 administering the loan. 23 * Sec. 15. AS 16.10.337(b) is amended to read: 24 (b) If the commercial fisheries entry division of the Department of Fish 25 and Game [COMMISSION] does not exercise its right of first refusal within 30 days 26 after it receives the offer, or if the permit is not subject to a buy-back program under 27 AS 16.43.290 - 16.43.330, the department shall advertise and sell the permit. If the 28 proceeds of the sale of a permit exceed the amount necessary to pay the note in full, 29 plus penalties, costs of administration of the note, attorney fees, and child support 30 liens of which the department has notice, the excess shall be transferred by the 31 commissioner to the debtor. At any time until the permit has been sold under this

01 subsection, the debtor may repurchase the permit by paying the department the amount 02 necessary to pay the note in full, plus penalties, costs of administration of the note, and 03 attorney fees, as determined by the commissioner. 04 * Sec. 16. AS 16.10.360(4) is amended to read: 05 (4) "department" means the Department of Commerce, Community, 06 and Economic Development unless specifically provided otherwise; 07 * Sec. 17. AS 16.40.250 is amended to read: 08 Sec. 16.40.250. Salmon fishery associations. The commissioner may assist in 09 and encourage the formation of qualified salmon fishery associations for the purpose 10 of promoting the consolidation of the fishing fleet in a salmon fishery for which the 11 commercial fisheries entry division of the department [ALASKA COMMERCIAL 12 FISHERIES ENTRY COMMISSION] has issued commercial fishing entry permits 13 under AS 16.43. A salmon fishery association is qualified if the commissioner 14 determines that the regional association 15 (1) is incorporated as a nonprofit corporation under AS 10.20; 16 (2) is made up [COMPRISED] of interim-use permit and entry permit 17 holders in the salmon fishery for which the association is established; and 18 (3) has a board of directors that is made up [COMPRISED] of interim- 19 use permit and entry permit holders in the salmon fishery. 20 * Sec. 18. AS 16.43 is amended by adding a new section to read: 21 Sec. 16.43.015. Commercial fisheries entry division. (a) The commercial 22 fisheries entry division is established as a regulatory and quasi-judicial division of the 23 department. 24 (b) The commissioner shall appoint the director of the commercial fisheries 25 entry division. 26 * Sec. 19. AS 16.43.100 is amended to read: 27 Sec. 16.43.100. Duties and general powers. (a) To accomplish the purposes 28 set out in AS 16.43.010, the department [COMMISSION] shall 29 (1) regulate entry into the commercial fisheries for all fishery resources 30 in the state; 31 (2) establish priorities for the application of the provisions of this

01 chapter to the various commercial fisheries of the state; 02 (3) establish administrative areas suitable for regulating and controlling 03 entry into the commercial fisheries; 04 (4) establish, for all types of gear, the maximum number of entry 05 permits for each administrative area; 06 (5) designate, when necessary to accomplish the purposes of this 07 chapter, particular species for which separate interim-use permits or entry permits will 08 be issued; 09 (6) establish qualifications for the issuance of entry permits; 10 (7) issue entry permits to qualified applicants; 11 (8) issue interim-use permits as provided in AS 16.43.210, 16.43.220, 12 and 16.43.225; 13 (9) establish, for all types of gear, the optimum number of entry permits 14 for each administrative area; 15 (10) administer the buy-back program provided for in AS 16.43.310 16 and 16.43.320 to reduce the number of outstanding entry permits to the optimum 17 number of entry permits; 18 (11) provide for the transfer and reissuance of entry permits to qualified 19 transferees; 20 (12) provide for the transfer and reissuance of entry permits for 21 alternative types of legal gear, in a manner consistent with the purposes of this 22 chapter; 23 (13) establish and administer the collection of the annual fees provided 24 for in AS 16.43.160; 25 (14) administer the issuance of commercial fishing vessel licenses 26 under AS 16.05.490; 27 (15) issue educational entry permits to applicants who qualify under the 28 provisions of AS 16.43.340 - 16.43.390; 29 (16) establish reasonable user fees for services; 30 (17) issue landing permits under AS 16.05.675 and regulations adopted 31 under that section;

01 (18) establish and collect annual fees for the issuance of landing 02 permits that reasonably reflect the costs incurred in the administration and 03 enforcement of provisions of law related to landing permits; 04 (19) establish a moratorium on entry into commercial fisheries as 05 provided in AS 16.43.225; 06 (20) when requested by a regional development organization formed 07 under former AS 44.33.895, provide to the organization, without charge, public 08 information contained in the department's [COMMISSION'S] data with respect to 09 relevant fisheries, including limited fisheries, fishery participants, and limited entry 10 permit holders' harvests and earnings; and 11 (21) administer, when necessary to accomplish the purposes of this 12 chapter, a Bering Sea hair crab fishery vessel permit system under AS 16.43.451 - 13 16.43.521. 14 (b) The department [COMMISSION] may do all things necessary to the 15 exercise of its powers under this chapter, whether or not specifically designated in this 16 chapter. 17 * Sec. 20. AS 16.43.110 is repealed and reenacted to read: 18 Sec. 16.43.110. Regulations and hearing procedures. (a) The department 19 may adopt regulations, consistent with law, necessary or proper in the exercise of its 20 powers or for the performance of its duties under this chapter. 21 (b) The department shall adopt regulations, consistent with due process of law, 22 that govern practice and procedure and the conduct of all investigations, hearings, and 23 proceedings. Adjudicatory proceedings required under this chapter shall be conducted 24 by the office of administrative hearings (AS 44.64). 25 (c) The Alaska Rules of Evidence apply to investigations, hearings, and 26 proceedings before the department or the office of administrative hearings under this 27 chapter except when the department determines that their application is not required in 28 order to ensure fair treatment of all parties and that the evidence is relevant and of the 29 sort on which responsible persons are accustomed to rely in the conduct of serious 30 matters. 31 (d) The department, the office of administrative hearings, or an employee

01 authorized by the department or office of administrative hearings may administer 02 oaths, certify to all official acts, and issue subpoenas and other process to compel the 03 attendance of witnesses and the production of testimony, records, papers, accounts, 04 and documents in an inquiry, investigation, hearing, or proceeding before the 05 department or office of administrative hearings in any part of the state. The 06 department or office of administrative hearings may petition a court to enforce its 07 subpoenas or other process. 08 (e) The department shall adopt regulations to provide for the correction of 09 administrative error. 10 * Sec. 21. AS 16.43.120 is amended to read: 11 Sec. 16.43.120. Application of Administrative Procedure Act. (a) The 12 administrative adjudication procedures of AS 44.62 (Administrative Procedure Act) 13 do not apply to adjudicatory proceedings of the office of administrative hearings 14 (AS 44.64) held under this chapter [COMMISSION] except that final administrative 15 determinations by the office of administrative hearings or the department under 16 this chapter [COMMISSION] are subject to judicial review as provided in 17 AS 44.62.560 - 44.62.570. 18 (b) AS 44.62.010 - 44.62.320 and 44.62.640 apply to regulations adopted by 19 the department under this chapter [COMMISSION]. 20 * Sec. 22. AS 16.43.140(a) is amended to read: 21 (a) A person may not operate gear in the commercial taking of fishery 22 resources without a valid entry permit or a valid interim-use permit issued by the 23 department [COMMISSION]. 24 * Sec. 23. AS 16.43.140(c) is amended to read: 25 (c) A person may hold more than one interim-use or entry permit issued or 26 transferred under this chapter only for the following purposes: 27 (1) fishing more than one type of gear; 28 (2) fishing in more than one administrative area; 29 (3) harvesting particular species for which separate interim-use or entry 30 permits are issued; 31 (4) if authorized by regulations of the department [COMMISSION],

01 fishing an entire unit of gear in a fishery in which the department [COMMISSION] 02 has issued entry permits for less than a unit of gear under AS 16.43.270(d); under this 03 paragraph, a person may not hold more than two entry permits for a fishery; however, 04 the person may not 05 (A) fish more than one unit of gear in the fishery; or 06 (B) acquire a second entry permit for the fishery after the person 07 has acquired an entry permit that authorizes the use of an entire unit of gear in 08 the fishery; 09 (5) consolidation of the fishing fleet for a salmon fishery; however, a 10 person may hold not more than two entry permits for a salmon fishery under this 11 paragraph, but the person who holds two entry permits for a salmon fishery may not 12 engage in fishing under the second entry permit. 13 * Sec. 24. AS 16.43.150(d) is amended to read: 14 (d) Failure to renew an entry permit for a period of two years from the year of 15 last renewal results in a forfeiture of the entry permit to the department 16 [COMMISSION], except as waived by the department [COMMISSION] for good 17 cause. An entry permit may not be renewed until the fees for each preceding year 18 during which the entry permit was not renewed are paid. However, failure to renew an 19 entry permit in a year in which there is an administrative closure for the entire season 20 for a specific fishery is good cause not to renew the entry permit. The department 21 [COMMISSION] shall waive the payment of fees for that year. 22 * Sec. 25. AS 16.43.150(h) is amended to read: 23 (h) Unless an entry permit holder has expressed a contrary intent in a will that 24 is probated, the department [COMMISSION] shall, upon the death of the permit 25 holder, transfer the permanent permit by right of survivorship directly to the surviving 26 spouse or, if no spouse survives, to a natural person designated by the permit holder on 27 a form provided by the department [COMMISSION]. If no spouse survives and if the 28 person designated on the form, if any, does not survive, the permit passes as part of the 29 permit holder's estate. A designation under this subsection must be acknowledged 30 before a person authorized to administer an oath under AS 09.63.010 or must be 31 witnessed by two persons who are qualified under AS 13.12.505 to witness the will of

01 the permit holder. Except as provided in AS 16.10.333 - 16.10.337, AS 44.81.215, and 02 44.81.231 - 44.81.250, the permit is exempt from the claims of creditors of the estate. 03 * Sec. 26. AS 16.43.150(i) is amended to read: 04 (i) The holder of a transferable or nontransferable entry permit or of an 05 interim-use permit may voluntarily relinquish the permit to the department 06 [COMMISSION]. 07 * Sec. 27. AS 16.43.160(a) is amended to read: 08 (a) Except as specifically provided in this section, the department 09 [COMMISSION] shall establish annual fees for the issuance and annual renewal of 10 entry permits or interim-use permits. 11 * Sec. 28. AS 16.43.160(b) is amended to read: 12 (b) The department [COMMISSION] may charge interest at a rate not to 13 exceed the legal rate of interest established in AS 45.45.010 on fees more than 60 days 14 overdue. 15 * Sec. 29. AS 16.43.160(c) is amended to read: 16 (c) The annual base fee for issuance or renewal of an entry permit or an 17 interim-use permit may not be less than $30 or more than $3,000. The annual base fee 18 must reasonably reflect the different rates of economic return for different fisheries. In 19 addition to the annual base fee established by the department [COMMISSION] under 20 this subsection, a nonresident shall pay an annual nonresident surcharge for the 21 issuance or renewal of one or more entry permits or interim-use permits. The 22 department [COMMISSION] shall establish the annual nonresident surcharge by 23 regulation at an amount that is as close as is practicable to the maximum allowed by 24 law. 25 * Sec. 30. AS 16.43.170(a) is amended to read: 26 (a) Except as provided in AS 16.10.333 - 16.10.338 and in AS 44.81.231 - 27 44.81.250, entry permits and interim-use permits are transferable only through the 28 department [COMMISSION] as provided in this section and AS 16.43.180 and under 29 regulations adopted by the department [COMMISSION]. An involuntary transfer of 30 an entry permit in a manner inconsistent with the statutes of this state and the 31 regulations of the department [COMMISSION] is void.

01 * Sec. 31. AS 16.43.170(b) is amended to read: 02 (b) Except as provided in (e) of this section, the holder of an entry permit may 03 transfer the permit to another person or to the department [COMMISSION] upon 60 04 days' [DAYS] notice of intent to transfer under regulations adopted by the 05 department. Not [COMMISSION. NO] sooner than 60 days nor later than 12 months 06 from the date of notice to the department [COMMISSION], the holder of an entry 07 permit may transfer the permit. If the proposed transferee, other than the department 08 [COMMISSION], can demonstrate the present ability to participate actively in the 09 fishery and the transfer does not violate any provision of this chapter or regulations 10 adopted under this chapter, and if a certificate for the permit under AS 16.10.333(b)(1) 11 - (2), 16.10.338, or AS 44.81.231(a) is not in effect, the department [COMMISSION] 12 shall approve the transfer and reissue the entry permit to the transferee if [PROVIDED 13 THAT] neither party is prohibited by law from participating in the transfer. 14 * Sec. 32. AS 16.43.170(g) is amended to read: 15 (g) A person may request the department [COMMISSION] to transfer an 16 entry permit due to an execution on a permit holder's interest in that permit if the 17 execution is to enforce a lien recorded with the department [COMMISSION] under 18 AS 25.27.230(c). The request shall be made in the form and manner provided in this 19 chapter and regulations adopted under this chapter. The department [COMMISSION] 20 may deny a request for transfer of an entry permit due to an execution of a holder's 21 interest in that permit if 22 (1) the execution does not comply with legal requirements or otherwise 23 is not valid; 24 (2) the transfer violates this chapter or regulations adopted under this 25 chapter; 26 (3) the proposed transferee or other party to the transfer is prohibited by 27 law from participating in the transaction; 28 (4) a certificate for the permit under AS 16.10.333(b)(1) - (2), 29 16.10.338, or AS 44.81.231(a) is in effect at the time of the proposed transfer; 30 (5) the proposed transferee of the entry permit, other than the 31 department [COMMISSION], cannot demonstrate the present ability to actively

01 participate in the fishery; or 02 (6) the holder of the entry permit as shown by the records of the 03 department [COMMISSION] demonstrates, under regulations adopted by the 04 department [COMMISSION], that the entry permit is a necessary means of support 05 for the holder and those dependent on [UPON] the holder. 06 * Sec. 33. AS 16.43.170(h) is amended to read: 07 (h) Notwithstanding (g) of this section, the department [COMMISSION] may 08 not approve a request for transfer of an entry permit after an execution sale unless the 09 parties to the transfer offer the department [COMMISSION] a right to purchase the 10 permit at the same price and on the same terms as those of that execution sale. If the 11 department [COMMISSION] exercises its right to purchase the permit, the permit 12 then shall be transferred to the department [COMMISSION]. 13 * Sec. 34. AS 16.43.180 is amended to read: 14 Sec. 16.43.180. Emergency transfers. (a) The department [COMMISSION] 15 shall adopt regulations providing for the temporary emergency transfer of entry 16 permits and interim-use permits when illness, disability, death, required military or 17 government service, or other unavoidable hardship prevents the permit holder from 18 participating in the fishery. To alleviate hardship pending a final determination of the 19 permit holder's eligibility for an entry permit, the department [COMMISSION] shall 20 adopt regulations providing for the temporary emergency transfer of an interim-use 21 permit issued under AS 16.43.210(b) or 16.43.225. 22 (b) The department [COMMISSION] shall adopt regulations providing for 23 the temporary transfer of an entry permit upon the death of the permittee pending final 24 disposition of the permit as a part of the permittee's estate. 25 * Sec. 35. AS 16.43.200 is amended to read: 26 Sec. 16.43.200. Administrative areas. (a) The department [COMMISSION] 27 shall establish administrative areas suitable for regulating and controlling entry into 28 the commercial fisheries. The department [COMMISSION] shall make the 29 administrative areas reasonably compatible with the geographic areas for which 30 specific commercial fishing regulations are adopted by the Board of Fisheries. 31 (b) The department [COMMISSION] may modify or change the boundaries

01 of administrative areas when necessary and consistent with the purposes of this 02 chapter. 03 * Sec. 36. AS 16.43.210(a) is amended to read: 04 (a) For each fishery that is not subject to a maximum number of entry permits 05 under AS 16.43.240 and not subject to a moratorium under AS 16.43.225, the 06 department [COMMISSION] shall issue interim-use permits under regulations 07 adopted by the department [COMMISSION] to all applicants who can establish their 08 present ability to participate actively in the fishery for which they are making 09 application. 10 * Sec. 37. AS 16.43.210(b) is amended to read: 11 (b) Before the issuance of the maximum number of entry permits for a given 12 fishery, the department [COMMISSION] may issue an interim-use permit to an 13 applicant who may later become eligible for an entry permit under AS 16.43.270. 14 * Sec. 38. AS 16.43.210(c) is amended to read: 15 (c) To the extent authorized by [THAT] the commissioner [OF FISH AND 16 GAME AUTHORIZES IT] under AS 16.05.050(a)(9), the department 17 [COMMISSION] may grant an interim-use permit to a person to engage in the 18 commercial taking from a fishery on an experimental basis. 19 * Sec. 39. AS 16.43.220(a) is amended to read: 20 (a) The department [COMMISSION] shall adopt regulations specifying the 21 dates and places of application, the procedures to be followed in renewal of the 22 interim-use permit including the time, place of its renewal, and for any other purpose 23 incident to the administration of interim-use permits for that fishery. An interim-use 24 permit shall expire upon the final determination of the holder's eligibility for an entry 25 permit. 26 * Sec. 40. AS 16.43.225 is amended to read: 27 Sec. 16.43.225. Moratorium on new entrants into certain fisheries. (a) 28 Subject to (b) of this section, the department [COMMISSION] may establish a 29 moratorium on new entrants into a fishery 30 (1) that has experienced recent increases in fishing effort that are 31 beyond a low, sporadic level of effort;

01 (2) that has achieved a level of harvest that may be approaching or 02 exceeding the maximum sustainable level for the fishery; and 03 (3) for which there is insufficient biological and resource management 04 information necessary to promote the conservation and sustained yield management of 05 the fishery. 06 (b) The department [COMMISSION] may establish a moratorium on new 07 entrants into a fishery described in (a) of this section if 08 (1) the commissioner [OF FISH AND GAME], subject to 09 AS 16.05.251(g), imposes [PETITIONS THE COMMISSION UNDER AS 44.62.220 10 TO ESTABLISH] a moratorium on new entrants into the fishery; and 11 (2) the department [COMMISSION] finds that 12 (A) the fishery has reached a level of participation that may 13 threaten the conservation and the sustained yield management of the fishery 14 resource and the economic health and stability of commercial fishing; and 15 (B) the department [COMMISSION] has insufficient 16 information to conclude that the establishment of a maximum number of entry 17 permits under AS 16.43.240 would further the purposes of this chapter. 18 (c) The department [COMMISSION] may establish a moratorium under this 19 section for a continuous period of up to four years. A fishery that has been subject to a 20 moratorium under this section may not be subjected to a subsequent moratorium under 21 this section unless five years have elapsed since the previous moratorium expired. 22 (d) While a moratorium is in effect, the department [COMMISSION] shall 23 conduct investigations to determine whether a maximum number of entry permits 24 should be established under AS 16.43.240 by 25 (1) conducting research into conditions in the fishery; 26 (2) consulting with the [DEPARTMENT OF FISH AND GAME AND 27 THE] Board of Fisheries; and 28 (3) consulting with participants in the fishery. 29 (e) The department [COMMISSION] shall establish by regulation the 30 qualifications for applicants for an interim-use permit for a fishery subject to a 31 moratorium under this section. The qualifications must include the minimum

01 requirements for past or present participation and harvest in the fishery. The 02 department [COMMISSION] may not issue an interim-use permit for a fishery 03 subject to a moratorium under this section unless the applicant can satisfy the 04 qualifications established under this subsection and establish the present ability and 05 intent to participate actively in the fishery. 06 * Sec. 41. AS 16.43.227(a) is amended to read: 07 (a) The department [COMMISSION] may establish a moratorium on new 08 entrants into the southeast Alaska Dungeness crab fishery for a continuous period of 09 up to four years without complying with AS 16.43.225(a) - (c). While the moratorium 10 is in effect, the department [COMMISSION] shall 11 (1) conduct the investigation required under AS 16.43.225(d); 12 (2) establish by regulation the qualifications for an interim-use permit 13 for the fishery, including minimum requirements for past or present participation and 14 harvest in the fishery; and 15 (3) issue interim-use permits for the fishery to applicants who satisfy 16 the qualifications established under (2) of this subsection and who establish the 17 present ability and intent to participate actively in the fishery. 18 * Sec. 42. AS 16.43.228(g) is amended to read: 19 (g) The department [COMMISSION] may not consider participation in a 20 fishery, subject to a moratorium on entry under this section, that occurs during the 21 period of the moratorium in determining eligibility for an entry permit that may be 22 issued for the fishery after termination of the moratorium. 23 * Sec. 43. AS 16.43.230 is amended to read: 24 Sec. 16.43.230. Designation of distressed fisheries. Pending the 25 determination of maximum numbers of entry permits under AS 16.43.240 and before 26 the initial issue of entry permits under AS 16.43.270, the department 27 [COMMISSION] shall designate as distressed fisheries those for which it estimates 28 that the optimum number of entry permits will be less than the highest number of units 29 of gear fished in that fishery during any one of the four years immediately preceding 30 January 1, 1973. 31 * Sec. 44. AS 16.43.240(b) is amended to read:

01 (b) When the department [COMMISSION] finds that a fishery, not 02 designated as a distressed fishery under AS 16.43.230 or not subject to a moratorium 03 under AS 16.43.225, has reached levels of participation that require the limitation of 04 entry under AS 16.43.140 - 16.43.330 in order to achieve the purposes of this chapter, 05 the department [COMMISSION] shall establish the maximum number of entry 06 permits for that fishery. 07 * Sec. 45. AS 16.43.240(c) is amended to read: 08 (c) When the department [COMMISSION] finds that a fishery subject to a 09 moratorium under AS 16.43.225 has reached levels of participation that require the 10 limitation of entry under AS 16.43.140 - 16.43.330 in order to achieve the purposes of 11 this chapter, the department [COMMISSION] shall establish the maximum number 12 of entry permits for that fishery. 13 * Sec. 46. AS 16.43.250 is amended to read: 14 Sec. 16.43.250. Standards for initial issue of entry permits. (a) Following 15 the establishment of the maximum number of units of gear for a particular fishery 16 under AS 16.43.240, the department [COMMISSION] shall adopt regulations 17 establishing qualifications for ranking applicants for entry permits according to the 18 degree of hardship that they would suffer by exclusion from the fishery. The 19 regulations shall define priority classifications of similarly situated applicants based 20 on [UPON] a reasonable balance of the following hardship standards: 21 (1) degree of economic dependence on [UPON] the fishery, including, 22 when reasonable for the fishery, the percentage of income derived from the fishery, 23 reliance on alternative occupations, availability of alternative occupations, and 24 investment in vessels and gear; 25 (2) extent of past participation in the fishery, including, when 26 reasonable for the fishery, the number of years of participation in the fishery, and the 27 consistency of participation during each year. 28 (b) The department [COMMISSION] shall designate in the regulations those 29 priority classifications of applicants who would suffer significant economic hardship 30 by exclusion from the fishery. 31 (c) The department [COMMISSION] shall designate in the regulations those

01 priority classifications of applicants who would suffer only minor economic hardship 02 by exclusion from the fishery. 03 (d) If an individual eligible to apply under AS 16.43.260(a) has applied during 04 application periods established under AS 16.43.260(b) for two or more entry permits 05 under AS 16.43.260(d) or (e) for the same specific fishery resource and the same 06 specific type of gear in different administrative areas, but has failed to qualify for an 07 entry permit for that type of fishery resource and gear, the individual's cumulative 08 qualifications may be credited to the fishery for which the individual is most qualified. 09 The department [COMMISSION] shall issue an entry permit to the individual for the 10 fishery if the individual's cumulative qualifications result in placing the individual in a 11 category designated in (b) of this section. The qualifications credited to a fishery under 12 this subsection may not be considered for the purpose of ranking the applicant under 13 (a) - (c) of this section for any other fishery. The department [COMMISSION] may 14 not revoke any permit previously issued notwithstanding the issuance of permits in 15 excess of the maximum number established under AS 16.43.230 - 16.43.240 as a 16 result of this subsection. In this subsection, "fishery" includes all salmon fisheries of 17 the state for which a maximum number of entry permits has been established by the 18 department [COMMISSION] under AS 16.43.240(b). 19 (e) If the cumulative qualifications of an individual under (d) of this section 20 include points granted by the department [COMMISSION] under (a) of this section 21 for more than one fishery and the number of points required to place an applicant in 22 the priority classification under (b) of this section is not the same for each of the 23 fisheries, the department [COMMISSION] shall obtain a quotient for the individual 24 by dividing the number of points the individual has been granted for each fishery by 25 the number of points needed to place an applicant in a priority classification under (b) 26 of this section for that fishery. If the sum of the quotients obtained under this 27 subsection equals or exceeds 1.00, the individual is entitled to a permit under (d) of 28 this section. 29 * Sec. 47. AS 16.43.260(a) is amended to read: 30 (a) The department [COMMISSION] shall accept applications for entry 31 permits only from applicants who have harvested fishery resources commercially

01 while participating in the fishery as holders of gear licenses issued under former 02 AS 16.05.536 - 16.05.670 or interim-use permits under AS 16.43.210(a) or 16.43.225 03 before the qualification date established in (d), (e), or (f) of this section. The 04 department [COMMISSION] may specify by regulation the calendar years of 05 participation that will be considered for eligibility purposes. 06 * Sec. 48. AS 16.43.260(b) is amended to read: 07 (b) The department [COMMISSION] shall establish the opening and closing 08 dates, places, and form of application for entry permits for each fishery. The 09 department [COMMISSION] may require the submission of specific verified 10 evidence establishing the applicant's qualifications under the regulations adopted 11 under AS 16.43.250. 12 * Sec. 49. AS 16.43.260(c) is amended to read: 13 (c) When an applicant is unable to establish qualifications for an entry permit 14 by submitting the specific verified evidence required in the application by the 15 department [COMMISSION], the applicant may request and obtain an administrative 16 adjudication of the application according to the procedures established in 17 AS 16.43.110(b). At the hearing the applicant may present alternative evidence of 18 qualifications for an entry permit. 19 * Sec. 50. AS 16.43.260(e) is amended to read: 20 (e) Except as provided in (f) of this section, when the department 21 [COMMISSION] establishes the maximum number of entry permits for a particular 22 fishery under AS 16.43.240 [AFTER JANUARY 1, 1975], an applicant shall be 23 assigned to a priority classification based solely on [UPON] the applicant's 24 qualifications as of January 1 of the year during which the department 25 [COMMISSION] establishes the maximum number of entry permits for the fishery for 26 which application is made. 27 * Sec. 51. AS 16.43.260(f) is amended to read: 28 (f) When the department [COMMISSION] establishes the maximum number 29 of entry permits under AS 16.43.240 for a fishery that is subject to a moratorium under 30 AS 16.43.225, an applicant for an entry permit for the fishery shall be assigned to a 31 priority classification based solely on [UPON] the applicant's qualifications as of the

01 effective date of the statute or regulation establishing the moratorium. 02 * Sec. 52. AS 16.43.270(a) is amended to read: 03 (a) The department [COMMISSION] shall issue entry permits, for each 04 fishery, first to all qualified applicants in the priority classifications designated under 05 AS 16.43.250(b) and then to qualified applicants in order of descending priority 06 classification, until the number of entry permits issued equals the maximum number of 07 entry permits established under AS 16.43.230 and 16.43.240 for each fishery, except 08 that a person within a priority classification specified under AS 16.43.250(b) may not 09 be denied an entry permit. 10 * Sec. 53. AS 16.43.270(b) is amended to read: 11 (b) If, within the lowest priority classification of qualified applicants to which 12 some entry permits may be issued, there are more applicants than there are entry 13 permits to be issued, then the allocation of entry permits within that priority 14 classification shall be by lottery. However, the department [COMMISSION] shall 15 issue entry permits to all qualified applicants in that priority classification if the total 16 number of permits issued for the fishery does not exceed the maximum number of 17 entry permits established under AS 16.43.240 for that fishery by more than five 18 percent or 10 permits, whichever is greater. 19 * Sec. 54. AS 16.43.270(d) is amended to read: 20 (d) The department [COMMISSION] may restrict the fishing capacity 21 employed under an entry permit if, before the initial issuance of entry permits for a 22 fishery, the department [COMMISSION] determines that the fishing capacity in the 23 fishery must be limited to achieve the purposes of this chapter, establishes criteria for 24 determining the fishing capacity that is allowed under an entry permit, and establishes 25 how fishing capacity will be measured. The maximum fishing capacity allowed under 26 an entry permit must be based on [UPON] past participation in the fishery by the 27 initial recipient of the entry permit during a period, specified by the department 28 [COMMISSION], preceding the qualification date established under AS 16.43.260. 29 The department [COMMISSION] may define fishing capacity in terms of quantity of 30 fishing gear, a proportion of the maximum amount of gear that can be utilized in the 31 fishery under regulations of the Board of Fisheries, fishing vessel size or other

01 characteristics, or other factors determined by the department [COMMISSION] to 02 affect the amount of fishing effort in the fishery. The recipient or transferee of an entry 03 permit issued subject to this subsection may not exceed the fishing capacity allowed 04 under the entry permit. 05 * Sec. 55. AS 16.43.290 is amended to read: 06 Sec. 16.43.290. Optimum number of entry permits. Following the issuance 07 of entry permits under AS 16.43.270, the department [COMMISSION] shall 08 establish the optimum number of entry permits for each fishery based on [UPON] a 09 reasonable balance of the following general standards: 10 (1) the number of entry permits sufficient to maintain an economically 11 healthy fishery that will result in a reasonable average rate of economic return to the 12 fishermen participating in that fishery, considering time fished and necessary 13 investments in vessels and gear; 14 (2) the number of entry permits necessary to harvest the allowable 15 commercial take of the fishery resource during all years in an orderly, efficient 16 manner, and consistent with sound fishery management techniques; 17 (3) the number of entry permits sufficient to avoid serious economic 18 hardship to those currently engaged in the fishery, considering other economic 19 opportunities reasonably available to them. 20 * Sec. 56. AS 16.43.300 is amended to read: 21 Sec. 16.43.300. Revisions of optimum number of entry permits. (a) The 22 department [COMMISSION] may increase or decrease the optimum number of entry 23 permits for a fishery when one or more of the following conditions makes a change 24 desirable considering the purposes of this chapter: 25 (1) an established long-term change in the biological condition of the 26 fishery has occurred that substantially alters the optimum number of entry permits 27 permissible applying the standards set out in AS 16.43.290; 28 (2) an established long-term change in market conditions has occurred, 29 directly affecting the fishery, that substantially alters the optimum number of entry 30 permits permissible under the standards set out in AS 16.43.290. 31 (b) If the department [COMMISSION] decreases the optimum number of

01 entry permits for a fishery, the number of entry permits may be reduced only under the 02 voluntary buy-back provisions set out in AS 16.43.310 and 16.43.320. 03 * Sec. 57. AS 16.43.310 is amended to read: 04 Sec. 16.43.310. Establishment of buy-back funds and permit buy-back 05 assessments. (a) When the optimum number of entry permits is less than the number 06 of entry permits outstanding in a fishery, the department [COMMISSION] may 07 establish a buy-back program, a buy-back plan, and a buy-back fund for that fishery. 08 (b) The department [COMMISSION] may establish by regulation a permit 09 buy-back assessment for each fishery for which the department [COMMISSION] has 10 established a buy-back fund under (a) of this section. The amount of the assessment 11 may not exceed seven percent of the value, as defined in AS 43.75.290, of fish that a 12 permit holder in the fishery subject to the assessment removes from the state or 13 transfers to a buyer in the state. The Department of Revenue shall collect an 14 assessment established under this subsection. 15 (c) The department [COMMISSION] shall expend money appropriated to a 16 buy-back fund for the purpose of reducing the number of entry permits in the fishery 17 to the optimum number, at a rate to be established by the department 18 [COMMISSION]. The legislature may appropriate interest accrued on the money in a 19 buy-back fund to that fund. Except as provided in AS 16.43.320, money appropriated 20 to a buy-back fund does not lapse. 21 * Sec. 58. AS 16.43.320 is amended to read: 22 Sec. 16.43.320. Administration of the buy-back program. The department 23 [COMMISSION] shall adopt regulations providing for the purchase of transferable 24 entry permits with money in the buy-back fund for each fishery. The department 25 [COMMISSION] shall cease purchases of entry permits in a fishery when the number 26 of entry permits in the fishery has been reduced to the optimum number. The 27 department [COMMISSION] shall terminate a buy-back assessment established for a 28 fishery under AS 16.43.310(b) when the department [COMMISSION] determines 29 that the amount of revenue collected through the assessment is sufficient to purchase 30 the number of entry permits necessary to achieve the optimum number of entry 31 permits in the fishery and to offset the reasonable costs of the buy-back program for

01 the fishery, including repayment of any debt the department [COMMISSION] was 02 authorized to incur to capitalize the buy-back fund for the fishery. The unexpended 03 balance of appropriations made to a buy-back fund for a fishery shall lapse back into 04 the fund from which the money was appropriated at the end of the fiscal year in which 05 the buy-back program is terminated. 06 * Sec. 59. AS 16.43.330(a) is amended to read: 07 (a) When the number of outstanding entry permits for a fishery is less than the 08 optimum number established under AS 16.43.290, the department [COMMISSION] 09 shall issue new entry permits to applicants who are presently able to engage actively in 10 the fishery until the optimum number is reached. 11 * Sec. 60. AS 16.43.330(b) is amended to read: 12 (b) The department [COMMISSION] shall determine equitable methods of 13 issuance, as appropriate, under (a) of this section that assure the receipt of fair market 14 value for the permits issued. 15 * Sec. 61. AS 16.43.340(a) is amended to read: 16 (a) In addition to entry permits and interim-use permits, the department 17 [COMMISSION] may issue educational entry permits to public, private, or 18 denominational educational institutions accredited by the Department of Education 19 and Early Development or accredited institutions, career, or vocational programs 20 approved by the Alaska Commission on Postsecondary Education, or full-time 21 nonprofit residential child care facilities licensed by the Department of Health and 22 Social Services, division of social services, if 23 (1) the program is offered to students at the junior high school level or 24 above; 25 (2) the issuance of an educational entry permit is reasonably necessary 26 to the instruction of students under courses offered by the applicant for the educational 27 entry permit; 28 (3) the program is offered by an institution that is located in the state 29 and has been in operation for at least two years; and 30 (4) the institution offering the program is not a correspondence 31 institution.

01 * Sec. 62. AS 16.43.340(c) is amended to read: 02 (c) The department [COMMISSION] may issue educational entry permits 03 notwithstanding the establishment of maximum or optimum numbers under 04 AS 16.43.240 and 16.43.290. 05 * Sec. 63. AS 16.43.351(b) is amended to read: 06 (b) A recipient may be issued an educational entry permit valid for designated 07 fisheries in the administrative area the department [COMMISSION] determines to be 08 appropriate, considering the nature of the educational program and the location of the 09 educational or vocational institution. The recipient of an educational entry permit may 10 not be issued an educational entry permit in more than one administrative area except 11 as issued by the department [COMMISSION] in its discretion upon good cause 12 shown. 13 * Sec. 64. AS 16.43.351(d) is amended to read: 14 (d) Annual fees for educational entry permits shall be as specified by 15 department [COMMISSION] regulation under the authority of AS 16.43.160. 16 * Sec. 65. AS 16.43.371 is amended to read: 17 Sec. 16.43.371. Accounting of harvest. The recipient of an educational entry 18 permit shall report to the department [COMMISSION] costs and earnings, amount of 19 harvest, and other information the department [COMMISSION] requires to monitor 20 training programs of recipients of educational entry permits. 21 * Sec. 66. AS 16.43.381(b) is amended to read: 22 (b) The department [COMMISSION] shall adopt regulations relating to the 23 issuance of educational entry permits, establishing eligibility criteria for recipients of 24 the permits, and [SUCH] other matters as are reasonably necessary to implement 25 AS 16.43.340 - 16.43.390. 26 * Sec. 67. AS 16.43.400 is amended to read: 27 Sec. 16.43.400. Special harvest area entry permits. (a) In addition to entry 28 permits, interim-use permits, and educational permits, the department 29 [COMMISSION] may issue special harvest area entry permits to holders of private, 30 nonprofit hatchery permits issued by the department [DEPARTMENT OF FISH 31 AND GAME] under AS 16.10.400 - 16.10.475.

01 (b) The department [COMMISSION] may issue special harvest area entry 02 permits notwithstanding the establishment of maximum or optimum numbers under 03 AS 16.43.240 and 16.43.290. 04 * Sec. 68. AS 16.43.410(c) is amended to read: 05 (c) The annual fee for a special harvest area entry permit shall be specified by 06 department [COMMISSION] regulation under the authority of AS 16.43.160. 07 * Sec. 69. AS 16.43.440(b) is amended to read: 08 (b) The department [COMMISSION, AFTER CONSULTATION WITH 09 THE DEPARTMENT OF FISH AND GAME,] shall adopt regulations that are 10 reasonably necessary to implement AS 16.43.400 - 16.43.440. 11 * Sec. 70. AS 16.43.850(a) is amended to read: 12 (a) For the purpose of identifying frequent violators of commercial fishing 13 laws in salmon fisheries, the department [COMMISSION] shall adopt regulations 14 establishing a uniform system for the suspension of commercial salmon fishing 15 privileges by assigning demerit points for convictions for violations of commercial 16 fishing laws in salmon fisheries that are reported to the department [COMMISSION] 17 under AS 16.43.880. The department [COMMISSION] shall assess demerit points 18 against a permit holder for each violation of commercial fishing laws in a salmon 19 fishery in accordance with (b) and (c) of this section. The department 20 [COMMISSION] shall assess points against a permit holder for the salmon fishery in 21 which the violation of commercial fishing laws occurred. 22 * Sec. 71. AS 16.43.850(b) is amended to read: 23 (b) The department [COMMISSION] shall assess demerit points against a 24 permit holder for a conviction of a violation of commercial fishing laws in a salmon 25 fishery under AS 16.05.722, 16.05.723, 16.05.831; AS 16.10.055, 16.10.070 - 26 16.10.090, 16.10.100, 16.10.110, 16.10.120, 16.10.200 - 16.10.220, and 16.10.760 - 27 16.10.790 for the following violations in accordance with this schedule: 28 (1) fishing in closed waters ................. 6 points; 29 (2) fishing during closed season or period ....... 6 points; 30 (3) fishing with more than the legal amount of gear . 4 points; 31 (4) fishing with gear not allowed in fishery ....... 6 points;

01 (5) fishing before expiration of transfer period .... 6 points; 02 (6) interfering with commercial fishing gear ...... 4 points; 03 (7) fishing with more than the legal amount of gear on vessel 4 points; 04 (8) improper operation of fishing gear .......... 4 points; 05 (9) permit holder not present when required ...... 4 points; 06 (10) fishing with underlength or overlength vessel .. 6 points; 07 (11) wanton waste of fishery resources ......... 4 points. 08 * Sec. 72. AS 16.43.850(d) is amended to read: 09 (d) The department [COMMISSION] shall suspend a permit holder's 10 commercial salmon fishing privileges for a salmon fishery for a period of 11 (1) one year if the permit holder accumulates 12 or more points during 12 any consecutive 36-month period as a result of convictions for violations of 13 commercial fishing laws in the salmon fishery; 14 (2) two years if the permit holder accumulates 16 or more points during 15 any consecutive 36-month period as a result of convictions for violations of 16 commercial fishing laws in the salmon fishery; 17 (3) three years if the permit holder accumulates 18 or more points 18 during any consecutive 36-month period as a result of convictions for violations of 19 commercial fishing laws in the salmon fishery. 20 * Sec. 73. AS 16.43.855(c) is amended to read: 21 (c) The assessment of points against a permit holder by the department 22 [COMMISSION] under AS 16.43.850 - 16.43.895 is in addition to, and not in 23 substitution for, other provisions of this title and is not a substitute for any penalty 24 imposed by a court. 25 * Sec. 74. AS 16.43.855(d) is amended to read: 26 (d) If points are assessed against a permit holder who holds a commercial 27 fishing permit for a salmon fishery under an emergency transfer approved by the 28 department [COMMISSION] under AS 16.43.180, the same number of points shall 29 also be assessed against the transferor of the permit. Points assessed against the 30 transferor of the permit under this subsection shall be included in calculations made 31 under AS 16.43.850(d).

01 * Sec. 75. AS 16.43.860(a) is amended to read: 02 (a) A permit holder whose commercial salmon fishing privileges for a salmon 03 fishery are suspended under AS 16.43.850 - 16.43.895 may not obtain an entry permit 04 or interim-use permit for that salmon fishery during the period of the suspension of the 05 privileges. During the period for which the permit holder's privilege to obtain an entry 06 permit or interim-use permit for a salmon fishery is suspended under this section, the 07 department [COMMISSION] may not issue a permit card to the permit holder for 08 that fishery. 09 * Sec. 76. AS 16.43.860(c) is amended to read: 10 (c) If, during the period for which a permit holder's commercial fishing 11 privileges for a salmon fishery are suspended, the department [COMMISSION] 12 establishes a limited entry system for the salmon fishery, the permit holder shall be 13 eligible to obtain an entry permit for that fishery to the extent that the permit holder 14 qualifies for the entry permit under regulations adopted by the department 15 [COMMISSION]. If the permit holder qualifies for an entry permit for the fishery, the 16 department [COMMISSION] shall withhold issuance of the entry permit until the 17 period of the suspension imposed under AS 16.43.850 - 16.43.895 has expired. 18 * Sec. 77. AS 16.43.860(d) is amended to read: 19 (d) The department [COMMISSION] may not transfer a commercial fishing 20 permit for a salmon fishery under an emergency transfer under AS 16.43.180 if, at the 21 time of the application for the emergency transfer, the permit holder's commercial 22 salmon fishing privileges for the salmon fishery have been suspended. 23 * Sec. 78. AS 16.43.870 is amended to read: 24 Sec. 16.43.870. Notice and appeal. The department [COMMISSION] shall 25 provide notice of determinations of the department [COMMISSION] under 26 AS 16.43.850 - 16.43.895. Respondents may request a hearing under regulations 27 adopted by the department [COMMISSION] under AS 16.43.110. 28 * Sec. 79. AS 16.43.880(a) is amended to read: 29 (a) A court that convicts a person of a violation of commercial fishing laws 30 under this title or under a regulation adopted under this title in a salmon fishery shall 31 forward a record of the conviction to the department [COMMISSION] on a weekly

01 basis. 02 * Sec. 80. AS 16.43.955 is amended to read: 03 Sec. 16.43.955. Hearings in proximity to Board of Fisheries meetings. 04 When practicable, a department [COMMISSION] hearing that deals with the subject 05 of limiting entry to a fishery shall be held on the same dates on which, and in the same 06 building or in a building adjacent to the building in which, a Board of Fisheries 07 meeting is being held. 08 * Sec. 81. AS 16.43.960(a) is amended to read: 09 (a) The department [COMMISSION] may revoke, suspend, or transfer all 10 entry or interim-use permits, vessel entry permits, or vessel interim-use permits held 11 by a person or entity who knowingly provides or assists in providing false 12 information, or fails to correct false information provided to the department 13 [COMMISSION] for the purpose of obtaining a benefit for self or another, including 14 the issuance, renewal, duplication, or transfer of an entry or interim-use permit, vessel 15 license, vessel entry permit, or vessel interim-use permit. The department 16 [COMMISSION] may suspend, as appropriate, that person's or entity's eligibility to 17 hold an entry or interim-use permit, vessel entry permit, or vessel interim-use permit 18 for a period not to exceed three years, and may impose an administrative fine of not 19 more than $5,000 on the person or entity whose officers, employees, representatives, 20 or agents knowingly provide or assist in providing false information, or fail to correct 21 false information provided, to the department [COMMISSION] for the purpose of 22 obtaining a benefit. 23 * Sec. 82. AS 16.43.960(a), as amended by sec. 6, ch. 2, SLA 2014, is amended to read: 24 (a) The department [COMMISSION] may revoke, suspend, or transfer all 25 entry or interim-use permits held by a person who knowingly provides or assists in 26 providing false information, or fails to correct false information provided to the 27 department [COMMISSION] for the purpose of obtaining a benefit for self or 28 another, including the issuance, renewal, duplication, or transfer of an entry or 29 interim-use permit or vessel license. The department [COMMISSION] may suspend 30 that person's eligibility to hold an entry or interim-use permit for a period not to 31 exceed three years, and may impose an administrative fine of not more than $5,000 on

01 the person. The department [COMMISSION] may also impose an administrative fine 02 of not more than $5,000 on an entity whose officers, employees, representatives, or 03 agents knowingly provide or assist in providing false information, or fail to correct 04 false information provided, to the department [COMMISSION] for the purpose of 05 obtaining a benefit. 06 * Sec. 83. AS 16.43.960(b) is amended to read: 07 (b) The department [COMMISSION] shall serve the respondent personally or 08 by certified or registered mail with a notice to show cause why the proposed action 09 should not take place. The notice to show cause must 10 (1) be supported by an affidavit, which may be made on information or 11 belief, setting out the facts that are the basis of the proposed actions; 12 (2) provide for a least 30 days' notice of the place, date, and time of the 13 hearing where the respondent may present evidence in opposition to the proposed 14 action; unless waived in writing by the respondent, the hearing shall be held within the 15 judicial district in which the respondent resides if the respondent resides in the state; 16 the hearing place shall be at the discretion of the department [COMMISSION] for 17 those respondents residing outside the state; 18 (3) specify the statutes or regulations violated; 19 (4) state with particularity the action proposed to be taken; 20 (5) indicate to the respondent that the respondent's ability to 21 permanently transfer the permits that are the subject of the show cause proceedings 22 has been suspended as of the date of the notice and will continue to be suspended until 23 the exhaustion of all administrative and judicial remedies; and 24 (6) provide other information the department [COMMISSION] 25 considers proper. 26 * Sec. 84. AS 16.43.960(d) is amended to read: 27 (d) The show cause hearing shall be [CONDUCTED BEFORE A QUORUM 28 OF COMMISSIONERS AND SHALL BE] presided over by a hearing officer 29 appointed by the office of administrative hearings [COMMISSION] who shall rule 30 on the presentation of evidence and other procedural matters. Hearings shall be 31 conducted in accordance with regulations adopted under AS 16.43.110(b).

01 * Sec. 85. AS 16.43.960(e) is amended to read: 02 (e) The failure of a respondent properly served under (b) of this section to 03 appear at the hearing is not grounds for setting aside any [COMMISSION] action 04 taken by the office of administrative hearings. However, the office of 05 administrative hearings [COMMISSION] may in its discretion order a continuance 06 or second hearing. 07 * Sec. 86. AS 16.43.960(g) is amended to read: 08 (g) The provisions of this section [APPLY TO CONDUCT OCCURRING 09 AFTER JANUARY 1, 1973, BUT] do not affect a permit held by a person who is a 10 bona fide purchaser. Failure to correct false information is a continuing offense. 11 * Sec. 87. AS 16.43.960(h) is amended to read: 12 (h) Judicial review of [COMMISSION] determinations made by the 13 department under this section is in accordance with AS 44.62.560 - 44.62.570; 14 however, if a hearing de novo is granted under AS 44.62.570(d), the hearing may, in 15 the discretion of the court, be had with a jury sitting if application for the jury hearing 16 is filed with the court not [NO] later than 10 days after service of the notice of appeal. 17 * Sec. 88. AS 16.43.960(i) is amended to read: 18 (i) An entry permit revoked by the department 19 [COMMISSION] under this section that is pledged as security for a 20 loan under AS 16.10.333 or AS 44.81.231 shall be reassigned or sold as 21 provided in AS 16.10.337 or AS 44.81.250. 22 * Sec. 89. AS 16.43.960(j) is amended to read: 23 (j) The department [COMMISSION] shall immediately cancel a limited entry 24 permit card issued to a debtor under a loan made under AS 16.10.300 - 16.10.370 25 when the department [COMMISSION] receives a certificate of loan termination 26 containing a copy of the 27 (1) notice required by AS 16.10.335(a); or 28 (2) notice that, if the debtor has filed bankruptcy, the automatic stay 29 issued is no longer in effect and the debtor has not reaffirmed the debt. 30 * Sec. 90. AS 16.43.970(a) is amended to read: 31 (a) A person who violates a provision of this chapter or a regulation adopted

01 under this chapter or an entity that violates a provision of AS 16.43.451 - 16.43.521 or 02 a regulation adopted under AS 16.43.451 - 16.43.521 is, upon conviction, guilty of a 03 class B misdemeanor and is punishable by a fine of not more than $5,000 for a first 04 conviction, and a fine of not more than $10,000 for a second or third conviction. Upon 05 a first or second conviction under this subsection, the court may in its discretion also 06 order the department [COMMISSION] to suspend the commercial fishing privileges 07 of the person or entity for a period of not more than three years and to revoke one or 08 more or all commercial fishing permits held by the person or entity. Upon a third or 09 subsequent conviction under this subsection, the person or entity is also subject to a 10 loss of commercial fishing privileges as provided under (i) of this section. This 11 subsection does not apply to violations of AS 16.43.140(a). 12 * Sec. 91. AS 16.43.970(a), as amended by sec. 8, ch. 2, SLA 2014, is amended to read: 13 (a) A person who violates a provision of this chapter or a regulation adopted 14 under this chapter is, upon conviction, guilty of a class B misdemeanor and is 15 punishable by a fine of not more than $5,000 for a first conviction, and a fine of not 16 more than $10,000 for a second or third conviction. Upon a first or second conviction 17 under this subsection, the court may in its discretion also order the department 18 [COMMISSION] to suspend the commercial fishing privileges of the person for a 19 period of not more than three years and to revoke one or more or all commercial 20 fishing permits held by the person. Upon a third or subsequent conviction under this 21 subsection, the person is also subject to a loss of commercial fishing privileges as 22 provided under (i) of this section. This subsection does not apply to violations of 23 AS 16.43.140(a). 24 * Sec. 92. AS 16.43.970(b) is amended to read: 25 (b) A person or entity who knowingly makes a false statement to the 26 department [COMMISSION] for the purpose of obtaining a benefit, including the 27 issuance, renewal, duplication, or transfer of an entry or interim-use permit, vessel 28 license, vessel interim-use permit, or vessel entry permit, or a person who assists 29 another by knowingly making a false statement to the department [COMMISSION] 30 for the purpose of obtaining a benefit for another, is guilty of the crime of unsworn 31 falsification in the second degree as set out in AS 11.56.210. Upon conviction, the

01 person or entity is also subject to suspension of commercial fishing privileges and 02 revocation of commercial fishing permits under (i) of this section. 03 * Sec. 93. AS 16.43.970(b), as amended by sec. 10, ch. 2, SLA 2014, is amended to read: 04 (b) A person who knowingly makes a false statement to the department 05 [COMMISSION] for the purpose of obtaining a benefit, including the issuance, 06 renewal, duplication, or transfer of an entry or interim-use permit or vessel license or a 07 person who assists another by knowingly making a false statement to the department 08 [COMMISSION] for the purpose of obtaining a benefit for another, is guilty of the 09 crime of unsworn falsification in the second degree as set out in AS 11.56.210. Upon 10 conviction, the person is also subject to suspension of commercial fishing privileges 11 and revocation of commercial fishing permits under (i) of this section. 12 * Sec. 94. AS 16.43.970(e) is amended to read: 13 (e) Notwithstanding any other provision of this section, an interim-use or entry 14 permit or transferable vessel entry permit may not be transferred while under 15 suspension, without the consent of the department [COMMISSION]. 16 * Sec. 95. AS 16.43.970(e), as amended by sec. 14, ch. 2, SLA 2014, is amended to read: 17 (e) Notwithstanding any other provision of this section, an interim-use or entry 18 permit may not be transferred while under suspension, without the consent of the 19 department [COMMISSION]. 20 * Sec. 96. AS 16.43.970(i) is amended to read: 21 (i) Upon the conviction of a person or entity for an offense described under (a), 22 (b), or (g) of this section, the court shall immediately notify the department 23 [COMMISSION] of the conviction. The notice provided by the court shall be 24 accompanied by an order suspending commercial fishing privileges and revoking 25 commercial fishing permits under (a) of this section, as appropriate. The department 26 [COMMISSION] shall, upon receipt of 27 (1) an order from the court under (a) of this section, suspend the 28 commercial fishing privileges of a person or entity for the period set by the court and 29 revoke commercial fishing permits held by the person or entity as directed by the 30 court; 31 (2) a notice from the court that a person or entity has been convicted of

01 a third or subsequent violation of (a) of this section, suspend all commercial fishing 02 privileges of the person or entity for a period of three years from the date of conviction 03 and revoke all commercial fishing permits held by the person or entity; 04 (3) a notice from the court that a person or entity has been convicted of 05 a violation described under (b) of this section, suspend all commercial fishing 06 privileges of the person or entity for a period of three years from the date of conviction 07 and revoke all commercial fishing permits held by the person or entity; 08 (4) a notice from the court that a person has been convicted of a 09 violation described under (g)(1) of this section, suspend all commercial fishing 10 privileges of the person for a period of one year from the date of conviction; 11 (5) a notice from the court that a person has been convicted of a 12 violation described under (g)(2) of this section, suspend all commercial fishing 13 privileges of the person for a period of two years from the date of conviction; 14 (6) a notice from the court that a person has been convicted of a 15 violation described under (g)(3) of this section, suspend all commercial fishing 16 privileges of the person for a period of five years from the date of conviction. 17 * Sec. 97. AS 16.43.970(i), as amended by sec. 16, ch. 2, SLA 2014, is amended to read: 18 (i) Upon the conviction of a person for an offense described under (a), (b), or 19 (g) of this section, the court shall immediately notify the department 20 [COMMISSION] of the conviction. The notice provided by the court shall be 21 accompanied by an order suspending commercial fishing privileges and revoking 22 commercial fishing permits under (a) of this section, as appropriate. The department 23 [COMMISSION] shall, upon receipt of 24 (1) an order from the court under (a) of this section, suspend the 25 commercial fishing privileges of a person for the period set by the court and revoke 26 commercial fishing permits held by the person as directed by the court; 27 (2) a notice from the court that a person has been convicted of a third or 28 subsequent violation of (a) of this section, suspend all commercial fishing privileges of 29 the person for a period of three years from the date of conviction and revoke all 30 commercial fishing permits held by the person; 31 (3) a notice from the court that a person has been convicted of a

01 violation described under (b) of this section, suspend all commercial fishing privileges 02 of the person for a period of three years from the date of conviction and revoke all 03 commercial fishing permits held by the person; 04 (4) a notice from the court that a person has been convicted of a 05 violation described under (g)(1) of this section, suspend all commercial fishing 06 privileges of the person for a period of one year from the date of conviction; 07 (5) a notice from the court that a person has been convicted of a 08 violation described under (g)(2) of this section, suspend all commercial fishing 09 privileges of the person for a period of two years from the date of conviction; 10 (6) a notice from the court that a person has been convicted of a 11 violation described under (g)(3) of this section, suspend all commercial fishing 12 privileges of the person for a period of five years from the date of conviction. 13 * Sec. 98. AS 16.43.975 is amended to read: 14 Sec. 16.43.975. Public disclosure of certain documents prohibited. 15 Documents submitted to the department [COMMISSION] containing information 16 relating to an individual's personal finances and information supplied by individuals 17 for research purposes, produced in response to requests by the department 18 [COMMISSION], are not subject to public disclosure. 19 * Sec. 99. AS 16.43.980(a) is amended to read: 20 (a) The department [COMMISSION] shall prepare an annual report and 21 notify the legislature that it is available. The report must include but not be limited to 22 the following: 23 (1) a progress report on the reduction of entry permits to optimum 24 levels; 25 (2) recommendations for additional legislation relating to the regulation 26 of entry of participants and vessels into Alaska commercial fisheries. 27 * Sec. 100. AS 16.43.990(1) is amended to read: 28 (1) "commissioner" ["COMMISSION"] means the commissioner of 29 fish and game [ALASKA COMMERCIAL FISHERIES ENTRY COMMISSION]; 30 * Sec. 101. AS 16.43.990(4) is amended to read: 31 (4) "fishery" means the commercial taking of a specific fishery

01 resource in a specific administrative area with a specific type of gear; however, the 02 department [COMMISSION] may designate a fishery to include more than one 03 specific administrative area, gear type, or fishery resource; 04 * Sec. 102. AS 16.43.990 is amended by adding a new paragraph to read: 05 (12) "department" means the Department of Fish and Game unless 06 specifically provided otherwise. 07 * Sec. 103. AS 25.27.230(c) is amended to read: 08 (c) The lien shall attach to all real and personal property of the obligor and be 09 effective on the date of recording of the lien with the recorder of the recording district 10 in which the property attached is located. A lien against earnings shall attach and be 11 effective upon filing with the recorder of the recording district in which the employer 12 does business or maintains an office or agent for the purpose of doing business. A lien 13 filed at the offices of the Department of Fish and Game [COMMERCIAL 14 FISHERIES ENTRY COMMISSION] in Juneau against a limited entry permit issued 15 under AS 16.43 is considered to have been filed against the permit in all recording 16 districts in which the permit holder uses the permit. 17 * Sec. 104. AS 37.05.146(c)(29) is amended to read: 18 (29) the commercial fisheries entry division of the Department of 19 Fish and Game [ALASKA COMMERCIAL FISHERIES ENTRY COMMISSION] 20 under AS 16.05.490, 16.05.530, and AS 16.43; 21 * Sec. 105. AS 43.76.015(f) is amended to read: 22 (f) In this section, "eligible interim-use permit and entry permit holder" means 23 an individual who, 90 days before the date ballots must be postmarked to be counted 24 in an election under this section, is listed in the records of the commercial fisheries 25 entry division of the Department of Fish and Game [ALASKA COMMERCIAL 26 FISHERIES ENTRY COMMISSION] as the legal owner of an interim-use permit or 27 an entry permit that [WHICH] authorizes the individual to fish commercially in an 28 administrative area established [BY THE ALASKA COMMERCIAL FISHERIES 29 ENTRY COMMISSION] under AS 16.43.200, which is included, in whole or in part, 30 in the region in which the election is held. 31 * Sec. 106. AS 43.76.160(g) is amended to read:

01 (g) In this section, "eligible interim-use permit and entry permit holder" means 02 an individual who, 90 days before the date ballots must be postmarked to be counted 03 in an election under this section, is listed in the records of the commercial fisheries 04 entry division of the Department of Fish and Game [ALASKA COMMERCIAL 05 FISHERIES ENTRY COMMISSION] as the legal holder of an interim-use permit for 06 dive gear or an entry permit for dive gear that authorizes the individual to fish 07 commercially in the administrative area for the species of fishery resource for which 08 the dive fishery management assessment is to be approved, amended, or terminated. 09 * Sec. 107. AS 43.76.210(1) is amended to read: 10 (1) "administrative area" means an area established by the commercial 11 fisheries entry division of the Department of Fish and Game [ALASKA 12 COMMERCIAL FISHERIES ENTRY COMMISSION] under AS 16.43.200 for 13 regulating and controlling entry into fisheries using dive gear; 14 * Sec. 108. AS 43.76.230(g) is amended to read: 15 (g) In this section, "eligible interim-use permit and entry permit holder" means 16 an individual who, 90 days before the date ballots must be postmarked to be counted 17 in an election under this section, is listed in the records of the commercial fisheries 18 entry division of the Department of Fish and Game [ALASKA COMMERCIAL 19 FISHERIES ENTRY COMMISSION] as the legal holder of an interim-use permit for 20 salmon fishing gear or an entry permit for salmon fishing gear that authorizes the 21 individual to fish commercially in the salmon fishery for which the salmon fishery 22 assessment is to be approved, amended, or terminated. 23 * Sec. 109. AS 43.76.280(1) is amended to read: 24 (1) "administrative area" means an area established by the commercial 25 fisheries entry division of the Department of Fish and Game [ALASKA 26 COMMERCIAL FISHERIES ENTRY COMMISSION] under AS 16.43.200 for 27 regulating and controlling entry into salmon fisheries; 28 * Sec. 110. AS 43.76.300 is amended to read: 29 Sec. 43.76.300. Permit buy-back assessment. A person holding a limited 30 entry permit or interim-use permit under AS 16.43 for a fishery subject to a permit 31 buy-back assessment established by the commercial fisheries entry division of the

01 Department of Fish and Game [ALASKA COMMERCIAL FISHERIES ENTRY 02 COMMISSION] under AS 16.43.310 shall pay the permit buy-back assessment at the 03 rate established by the division [COMMISSION] on the value, as defined in 04 AS 43.75.290, of fish that the person removes from the state or transfers to a buyer in 05 the state under the authority conferred by the limited entry permit or interim-use 06 permit. The buyer shall collect the permit buy-back assessment at the time the fish is 07 acquired by the buyer. 08 * Sec. 111. AS 43.76.370(i) is amended to read: 09 (i) In this section, "eligible interim-use permit and entry permit holder" means 10 an individual who, 90 days before the date ballots must be postmarked to be counted 11 in an election under this section, is listed in the records of the commercial fisheries 12 entry division of the Department of Fish and Game [ALASKA COMMERCIAL 13 FISHERIES ENTRY COMMISSION] as the legal owner of an interim-use permit or 14 an entry permit that authorizes the individual to operate commercial fishing gear in the 15 fishery that is or will be subject to the seafood development tax that is the subject of 16 the election. 17 * Sec. 112. AS 44.64.030(a) is amended by adding a new paragraph to read: 18 (51) AS 16.43 (commercial fisheries entry division). 19 * Sec. 113. AS 44.81.231(d) is amended to read: 20 (d) Upon payment of the loan, the bank shall certify to the commercial 21 fisheries entry division of the Department of Fish and Game [ALASKA 22 COMMERCIAL FISHERIES ENTRY COMMISSION] that the loan has been repaid, 23 and the division [COMMISSION] shall amend the permit certificate to list the 24 equitable owner as the holder, and the legal interest of the bank shall terminate. 25 * Sec. 114. AS 44.81.241 is amended to read: 26 Sec. 44.81.241. Initial notice of default. If there is a default on a loan secured 27 by a permit pledged under AS 44.81.231, the bank shall notify the borrowers and 28 guarantors on the loan of the default and of the right to cure the default by sending a 29 notice by certified mail to their last known address or addresses on file with the bank. 30 The notice must include 31 (1) the date of the notice;

01 (2) a description of the security given for the loan, including the 02 number assigned by the commercial fisheries entry division of the Department of 03 Fish and Game [COMMISSION] and the name of the equitable owner of each permit 04 pledged to secure the loan; 05 (3) the date and nature of the default; 06 (4) the amount of arrearages as of the date of the notice; 07 (5) the total indebtedness, including interest, penalties, and costs of 08 collection, remaining owing on the loan as of the date of the notice; 09 (6) the amount of daily interest to accrue from the date of the notice; 10 (7) a statement that the costs of collection of the loan incurred by the 11 bank after the date of the notice will be added to the total amount of the indebtedness 12 owing on the loan; 13 (8) a statement that the default may be cured within 60 days from the 14 date of the notice or within an extended time period that is specified in an extension 15 notice provided by the bank within the 60-day period under AS 44.81.249; 16 (9) the place where payment of arrearages or other cure may be made; 17 and 18 (10) a statement in at least 10 point bold type stating: 19 "IMPORTANT: UNLESS YOU CURE THE LOAN DEFAULT 20 WITHIN THE TIME SPECIFIED BY THIS NOTICE, THE TOTAL 21 INDEBTEDNESS OWING ON THE LOAN SHALL BE 22 IMMEDIATELY DUE AND PAYABLE TO THE BANK WITHOUT 23 FURTHER NOTICE TO YOU. ALSO, THE BANK SHALL THEN 24 BE ENTITLED TO TAKE ANY LEGAL ACTION AGAINST YOU 25 TO COLLECT THE LOAN, INCLUDING THE INSTITUTION OF 26 LAWSUITS AND THE FORECLOSURE OF THE PLEDGE OF ANY 27 PERMIT PLEDGED TO SECURE THIS LOAN." 28 * Sec. 115. AS 44.81.245 is amended to read: 29 Sec. 44.81.245. Foreclosure. The bank may foreclose on a permit pledge that 30 secures a loan by sending to the equitable owner of the permit pledged and any other 31 borrowers and guarantors on the loan a notice of foreclosure. The notice shall be sent

01 by certified mail to their last known address or addresses on file with the bank and 02 must include 03 (1) the date of the notice; 04 (2) a statement that the total indebtedness owing on the loan became 05 due and payable to the bank because the loan default was not cured within the time 06 specified in the notice of default and right to cure provided under AS 44.81.241, and 07 that as a result the bank is entitled to take legal action to collect the loan, including the 08 forfeiture of a permit pledge that secures the loan and the institution of legal action; 09 (3) a description of the permit pledge that is being foreclosed by the 10 notice, including an identification of the permit by the number assigned by the 11 commercial fisheries entry division of the Department of Fish and Game 12 [COMMISSION] and the name of the equitable owner; 13 (4) the amount of the total indebtedness owing as of the date of the 14 notice; 15 (5) the amount of daily interest that accrues from the date of the notice; 16 (6) a statement that the costs of collection of the loan incurred by the 17 bank after the date of the notice will be added to the total amount of the indebtedness 18 due on the loan; 19 (7) a statement that to avoid forfeiture of all rights of the equitable 20 owner of the permit identified in the notice, the loan must be paid in full within 60 21 days from the date of the notice or within an extended time period that is specified in 22 an extension notice provided by the bank within the 60-day period under 23 AS 44.81.249; 24 (8) a statement that once a forfeiture of all rights of the equitable owner 25 of a permit described in the notice occurs, the permit may not be redeemed; 26 (9) a statement of the right of the equitable owner to nominate a person 27 to assume the loan under AS 44.81.250(c); 28 (10) the place where payment in full may be made; and 29 (11) a notice in at least 10 point bold type stating: 30 "IMPORTANT: IF THE LOAN IS NOT PAID IN FULL BY THE 31 DATE SPECIFIED, ALL RIGHTS OF THE EQUITABLE OWNER

01 TO THE PERMIT IDENTIFIED IN THIS NOTICE WILL BE 02 FORFEITED WITHOUT FURTHER NOTICE TO YOU. IN THAT 03 EVENT, THERE WILL NOT BE A RIGHT OF REDEMPTION OF 04 THE PERMIT. IN ADDITION, THE BANK MAY NOW TAKE 05 OTHER ACTION TO COLLECT THE LOAN, INCLUDING THE 06 INSTITUTION OF LEGAL ACTION AGAINST YOU AND THE 07 FORECLOSURE OF OTHER PERMIT PLEDGES THAT SECURE 08 THE LOAN." 09 * Sec. 116. AS 44.81.247(a) is amended to read: 10 (a) If a loan is not paid in full within the time specified by the notice provided 11 for the loan under AS 44.81.245, the equitable interest in the permit identified in the 12 notice terminates by operation of law without further notice. The commercial 13 fisheries entry division of the Department of Fish and Game [COMMISSION] 14 shall cancel an entry permit card issued to the equitable owner of the permit 15 immediately upon receipt by the division [COMMISSION] of a certificate of 16 termination containing a copy of the notices required by AS 44.81.241 and 44.81.245. 17 * Sec. 117. AS 44.81.250(a) is amended to read: 18 (a) Upon foreclosure of a pledge of an entry permit under AS 44.81.241 - 19 44.81.249 or the termination of a debtor's interest in an entry permit under 20 AS 44.81.247(b), the bank shall determine if the permit is subject to a buy-back 21 program under AS 16.43.290 - 16.43.330 and, if it is subject to a buy-back program, 22 shall offer the permit to the commercial fisheries entry division of the Department 23 of Fish and Game [COMMISSION] at a price equal to the outstanding indebtedness 24 on the loan. 25 * Sec. 118. AS 44.81.250(b) is amended to read: 26 (b) If the permit is not subject to a buy-back program, or if the commercial 27 fisheries entry division of the Department of Fish and Game [COMMISSION] 28 fails to buy back the permit within 30 days after the division [COMMISSION] 29 receives the offer, the bank shall sell the permit to a person who qualifies as a 30 transferee of an entry permit under AS 16.43 and the regulations adopted by the 31 division [COMMISSION]. The bank shall give preference to an offer to purchase a

01 permit made by a state resident if the price offered is equal to or greater than the price 02 offered by a nonresident. If the proceeds of the sale of a permit exceed the amount 03 necessary to pay the indebtedness in full, the bank shall remit the excess to the 04 borrower. 05 * Sec. 119. AS 44.81.350(3) is amended to read: 06 (3) "division" ["COMMISSION"] means the commercial fisheries 07 entry division of the Department of Fish and Game [ALASKA COMMERCIAL 08 FISHERIES ENTRY COMMISSION] under AS 16.43.020; 09 * Sec. 120. AS 16.10.360(1); AS 16.43.020, 16.43.030, 16.43.040, 16.43.050, 16.43.060, 10 16.43.070, 16.43.080; AS 39.25.110(11)(D); and AS 39.50.200(b)(10) are repealed. 11 * Sec. 121. The uncodified law of the State of Alaska is amended by adding a new section 12 to read: 13 TRANSITION. Litigation, hearings, investigations, and other proceedings pending 14 under a law amended or repealed by this Act, or in connection with functions transferred by 15 this Act, continue in effect and may be continued and completed notwithstanding a transfer or 16 amendment or repeal provided for in this Act. Certificates, orders, and regulations issued or 17 adopted under authority of a law amended or repealed by this Act remain in effect for the term 18 issued, or until revoked, vacated, or otherwise modified under the provisions of this Act. 19 Contracts, rights, liabilities, and obligations created by or under a law amended or repealed by 20 this Act, and in effect on the effective date of this Act, remain in effect notwithstanding this 21 Act's taking effect. Records, equipment, appropriations, and other property of agencies of the 22 state whose functions are transferred under this Act shall be transferred to implement the 23 provisions of this Act. 24 * Sec. 122. The uncodified law of the State of Alaska is amended by adding a new section 25 to read: 26 EMPLOYEES. Employees of the Alaska Commercial Fisheries Entry Commission 27 become employees of the commercial fisheries entry division of the Department of Fish and 28 Game on the effective date of this Act. 29 * Sec. 123. Section 82 of this Act takes effect on the effective date of sec. 6, ch. 2, SLA 30 2014. 31 * Sec. 124. Section 91 of this Act takes effect on the effective date of sec. 8, ch. 2, SLA

01 2014. 02 * Sec. 125. Section 93 of this Act takes effect on the effective date of sec. 10, ch. 2, SLA 03 2014. 04 * Sec. 126. Section 95 of this Act takes effect on the effective date of sec. 14, ch. 2, SLA 05 2014. 06 * Sec. 127. Section 97 of this Act takes effect on the effective date of sec. 16, ch. 2, SLA 07 2014.