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CSHB 188(FSH): "An Act relating to commercial fishing entry permits; establishing regional fisheries trusts and fisheries trust regions; relating to the duties of regional fisheries trusts to hold, temporarily transfer, and revoke transfers of commercial fishing entry permits; relating to the duties of the Alaska Commercial Fisheries Entry Commission and the Department of Commerce, Community, and Economic Development; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 188(FSH) 01 "An Act relating to commercial fishing entry permits; establishing regional fisheries 02 trusts and fisheries trust regions; relating to the duties of regional fisheries trusts to 03 hold, temporarily transfer, and revoke transfers of commercial fishing entry permits; 04 relating to the duties of the Alaska Commercial Fisheries Entry Commission and the 05 Department of Commerce, Community, and Economic Development; and providing for 06 an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 LEGISLATIVE FINDINGS. The legislature finds that 11 (1) the state has an ownership and stewardship interest in the fish that 12 originate in state waters and return to spawn; 13 (2) art. VIII, sec. 15, of the Constitution of the State of Alaska, authorizes the

01 state to limit entry into a fishery for the purposes of resource conservation and preventing 02 economic distress among fishermen and those dependent on them for a livelihood; 03 (3) to promote the conservation of fisheries and the economic health and 04 stability of commercial fishing in the state, the state began limiting entry into commercial 05 fisheries in 1975; 06 (4) since 1975, there has been a substantial and well-documented decline in 07 the number of limited entry permits held by residents of many Alaska communities; 08 (5) the decline in the number of limited entry permits represents lost jobs, lost 09 economic opportunity, and other economic distress among fishermen, their dependents, and 10 their communities; 11 (6) the state has a compelling interest in promoting the economic self- 12 sufficiency of its communities and ensuring their economic health and vitality; 13 (7) fishing is the most viable economic opportunity in numerous Alaska 14 communities; 15 (8) access to commercial fishing opportunities reduces economic distress and 16 contributes to economic self-sufficiency by providing jobs, income, a local tax base, and 17 greater access to subsistence and other fisheries; 18 (9) access to many commercial fisheries in the state requires significant 19 financial resources, posing a barrier to Alaskans desiring to participate in the state's 20 commercial fisheries; 21 (10) state-chartered regional fisheries trusts would empower communities to 22 prevent economic distress among fishermen, promote fisheries conservation, improve access 23 to Alaska fisheries, and realize greater economic self-sufficiency by providing a tightly 24 controlled, additional path of entry into the state's commercial fisheries. 25 * Sec. 2. AS 06.26.040(b) is amended to read: 26 (b) This section does not prohibit the use of the word "trust" by a regional 27 fisheries trust established under AS 16.44 or the words "trust" or "trust company" 28 in the name of a corporation that is in existence as of January 1, 2003, and that is not 29 subject to this chapter if the corporation was originally organized under the laws of 30 this state and has not, since the date of its original organization, amended or restated 31 its articles of incorporation to delete from its name the words "trust" or "trust

01 company." 02 * Sec. 3. AS 16.05.253(a) is amended to read: 03 (a) The Board of Fisheries may require an individual [A PERSON] who 04 holds a limited entry permit or an interim-use permit under AS 16.43 or who is a 05 temporary transferee under AS 16.43.180 or 16.43.190 to be physically present at a 06 beach or riparian fishing site during the operation of net gear or other stationary 07 fishing gear at the site, except when the permit holder or temporary transferee is at 08 or traveling to or from the location of 09 (1) a sale of fish caught in the gear; or 10 (2) other stationary gear of the permit holder or temporary 11 transferee. 12 * Sec. 4. AS 16.05.480(a) is amended to read: 13 (a) A person engaged in commercial fishing shall obtain a commercial fishing 14 license and shall retain the license in possession and readily available for inspection 15 during fishing operations. An entry permit or interim-use permit entitles the holder, or 16 individual to whom the entry permit is temporarily transferred under 17 AS 16.43.180 or 16.43.190, to participate as a gear operator in the fishery for which 18 the permit is issued and to participate as a crewmember in any fishery. A crewmember 19 fishing license is not transferable and entitles the holder to participate as a 20 crewmember in any fishery. 21 * Sec. 5. AS 16.05.480(g) is amended to read: 22 (g) A resident engaged in commercial fishing who is 11 years of age or older 23 and who does not hold an entry permit or an interim-use permit or who is not a 24 temporary transferee under AS 16.43.180 or 16.43.190 shall, except as provided in 25 (i) of this section, pay a fee of $60 for an annual crewmember fishing license. A 26 resident engaged in commercial fishing who is less than 11 years of age and who does 27 not hold an entry permit or an interim-use permit or who is not a temporary 28 transferee under AS 16.43.180 or 16.43.190 shall pay an annual fee of $5. 29 * Sec. 6. AS 16.05.480(h) is amended to read: 30 (h) A nonresident engaged in commercial fishing who is 11 years of age or 31 older and who does not hold an entry permit or an interim-use permit or who is not a

01 temporary transferee under AS 16.43.180 or 16.43.190 shall, except as provided in 02 (i) of this section, pay a base fee of $60 for an annual crewmember fishing license, 03 plus an amount, established by the department by regulation, that is as close as is 04 practicable to the maximum allowed by law. A nonresident engaged in commercial 05 fishing who is less than 11 years of age and who does not hold an entry permit or an 06 interim-use permit or who is not a temporary transferee under AS 16.43.180 or 07 16.43.190 shall pay an annual base fee of $5 plus an amount, established by the 08 department by regulation, that is as close as is practicable to the maximum allowed by 09 law. 10 * Sec. 7. AS 16.05.480(i) is amended to read: 11 (i) Notwithstanding (g) and (h) of this section, a resident or nonresident 12 engaged in commercial fishing who does not hold an entry permit or an interim-use 13 permit or who is not a temporary transferee under AS 16.43.180 or 16.43.190 may 14 obtain one seven-day crewmember fishing license under this subsection annually. An 15 individual [A PERSON] who obtains a seven-day license is not eligible for another 16 seven-day license in the same license year; however, if an individual [A PERSON] 17 who obtains a seven-day license pays the full fee for an annual crewmember fishing 18 license under (g) or (h) of this section during the same license year, the individual 19 [PERSON] is entitled to receive a refund of the fee for the seven-day license. The 20 department shall adopt regulations establishing a refund procedure. During the period 21 for which the seven-day license is valid, an individual [A PERSON] who holds a 22 seven-day license may not engage in fishing with a rod and reel while present on a 23 commercial fishing vessel. The fee for a seven-day license is $30. 24 * Sec. 8. AS 16.05.480(j) is amended to read: 25 (j) In this section, "commercial fishing license" includes an entry permit and 26 an interim-use permit issued under AS 16.43, an entry permit temporarily 27 transferred under AS 16.43.180 or 16.43.190, and a crewmember fishing license. 28 * Sec. 9. AS 16.05.675(a) is amended to read: 29 (a) An individual [A PERSON] who does not hold a limited entry permit or 30 interim-use permit issued under AS 16.43 or a fish transporter permit issued under 31 AS 16.05.671 or who is not a temporary transferee under AS 16.43.180 or

01 16.43.190 may not deliver or land fish in the state unless the individual [PERSON] 02 (1) holds a valid federal permit to operate commercial fishing gear in 03 the fishery conservation zone; and 04 (2) has been issued a landing permit by the Alaska Commercial 05 Fisheries Entry Commission. 06 * Sec. 10. AS 16.05.680(a) is amended to read: 07 (a) It is unlawful for a person, or an agent or representative of the person, 08 (1) to employ, in the harvesting, transporting, or purchasing of fish, a 09 fisherman who [NEITHER] is not licensed under AS 16.05.480, who [NOR] is not 10 the holder of a permit issued under AS 16.43, or who is not a temporary transferee 11 under AS 16.43.180 or 16.43.190; 12 (2) to purchase fish from a person who is not 13 (A) the holder of a limited entry, interim-use, or landing permit 14 issued under AS 16.43 or who is not a temporary transferee under 15 AS 16.43.180 or 16.43.190; 16 (B) a fish transporter who is selling the fish as the agent of the 17 holder of a limited entry, interim-use, or landing permit issued under AS 16.43 18 or who is a temporary transferee under AS 16.43.180 or 16.43.190; or 19 (C) exempt under AS 16.05.660; or 20 (3) to purchase fish from an association other than one to which a 21 permit has been issued under AS 16.05.662. 22 * Sec. 11. AS 16.05.710 is amended by adding a new subsection to read: 23 (e) If proceedings to suspend commercial fishing privileges or licenses under 24 this section are pending against an individual, a regional fisheries trust established 25 under AS 16.44.010 may not temporarily transfer a permit to the individual under 26 AS 16.43.190. 27 * Sec. 12. AS 16.05.723(b) is amended to read: 28 (b) If a person is convicted under this section of one of the following offenses, 29 then, in addition to the penalties imposed under (a) of this section, the court may 30 impose a fine equal to the gross value of the fish found on board or at the fishing site 31 at the time of the violation:

01 (1) commercial fishing in closed waters; 02 (2) commercial fishing during a closed period or season; 03 (3) commercial fishing with unlawful gear, including a net, pot, tackle, 04 or other device designed or employed to take fish commercially; or 05 (4) commercial fishing without a limited entry permit holder or 06 temporary transferee under AS 16.43.180 or 16.43.190 on board if the holder or 07 temporary transferee is required by law or regulation to be present. 08 * Sec. 13. AS 16.10.265(a) is amended to read: 09 (a) An individual may not, while acting as a fish processor or primary fish 10 buyer, or as an agent, director, officer, member, or employee of a fish processor, of a 11 primary fish buyer, or of a cooperative corporation organized under AS 10.15, 12 intentionally or knowingly make an original purchase of fish from a seller who [DOES 13 NOT HOLD] 14 (1) does not hold a landing permit, an entry permit, or an interim-use 15 permit; [OR] 16 (2) is not a temporary transferee under AS 16.43.180 or 16.43.190; 17 or 18 (3) does not hold a fish transporter permit under AS 16.05.671. 19 * Sec. 14. AS 16.10.267(a) is amended to read: 20 (a) When a fisherman sells fish, the fisherman shall possess 21 (1) a landing permit, entry permit, or interim-use permit issued, [OR] 22 transferred [TO THE FISHERMAN] under AS 16.43, or temporarily transferred 23 under AS 16.43.180 or 16.43.190, or other document authorized by regulation to be 24 used in place of an entry permit or interim-use permit; and 25 (2) an identification card that has been issued to the fisherman by a 26 state or federal agency or other organization designated by the Department of Public 27 Safety and that bears a photograph of the fisherman. 28 * Sec. 15. AS 16.10.455(b) is amended to read: 29 (b) A hatchery permit holder may, by a majority vote of the membership of 30 the hatchery permit holder's board, elect to harvest surplus salmon produced at a 31 facility in a terminal harvest area established for that facility through the common

01 property fishery. At the request of the hatchery permit holder and if the commissioner 02 of fish and game determines that there are no allocative issues involved, and after 03 reasonable consultation with affected commercial fishermen and the organizations of 04 affected commercial fishermen, the commissioner may adopt regulations governing 05 the harvest of surplus salmon in a terminal harvest area when the hatchery permit 06 holder elects to harvest surplus salmon produced at a facility through a common 07 property fishery. The regulations must specify the terms, conditions, and rules under 08 which the common property fishery in the terminal harvest area shall be conducted, 09 including requirements for hold inspections and reporting of harvests and sales of 10 salmon taken in the terminal harvest area. Following adoption of regulations by the 11 department, each year before March 10, the hatchery permit holder's board, by a 12 majority vote of the board's membership, may determine whether the hatchery will 13 operate under the regulations adopted under this subsection during the current calendar 14 year, and shall notify the department if the hatchery intends to operate under the 15 regulations adopted under this subsection. The Board of Fisheries may adopt 16 regulations under AS 16.05.251 regarding a fisheries management plan governing 17 operations under this subsection in a terminal harvest area, including allocation plans. 18 Participation in the fishery must be open to all interim-use permit holders, [AND] 19 entry permit holders, and individuals to whom entry permits are temporarily 20 transferred under AS 16.43.180 or 16.43.190 [WHO HOLD PERMITS] to operate a 21 type of gear that may be used in the fishing district in which the terminal harvest area 22 is located if that type of gear is authorized by regulation to be used in the terminal 23 harvest area. An interim-use permit holder, [OR AN] entry permit holder, or 24 individual to whom an entry permit is temporarily transferred under 25 AS 16.43.180 or 16.43.190 who takes salmon in a common property fishery in a 26 terminal harvest area may sell the salmon to any fish buyer or processor who is 27 licensed to do business in the state. 28 * Sec. 16. AS 16.10.540(a) is amended to read: 29 (a) An association of individuals [PERSONS] who hold entry permits under 30 AS 16.43, that consists of at least 51 percent of the individuals who hold [PERSONS 31 HOLDING] entry permits and actively participate in the [PARTICIPATING IN A]

01 fishery to be benefited by a hatchery program, may levy and collect an assessment 02 from among its members for the purpose of securing and repaying a loan made under 03 AS 16.10.510. 04 * Sec. 17. AS 16.43.100(a) is amended to read: 05 (a) To accomplish the purposes set out in AS 16.43.010, the commission shall 06 (1) regulate entry into the commercial fisheries for all fishery resources 07 in the state; 08 (2) establish priorities for the application of the provisions of this 09 chapter to the various commercial fisheries of the state; 10 (3) establish administrative areas suitable for regulating and 11 controlling entry into the commercial fisheries; 12 (4) establish, for all types of gear, the maximum number of entry 13 permits for each administrative area; 14 (5) designate, when necessary to accomplish the purposes of this 15 chapter, particular species for which separate interim-use permits or entry permits will 16 be issued; 17 (6) establish qualifications for the issuance of entry permits; 18 (7) issue entry permits to qualified applicants; 19 (8) issue interim-use permits as provided in AS 16.43.210, 16.43.220, 20 and 16.43.225; 21 (9) establish, for all types of gear, the optimum number of entry 22 permits for each administrative area; 23 (10) administer the buy-back program provided for in AS 16.43.310 24 and 16.43.320 to reduce the number of outstanding entry permits to the optimum 25 number of entry permits; 26 (11) provide for the transfer and reissuance of entry permits to 27 qualified transferees; 28 (12) provide for the transfer and reissuance of entry permits for 29 alternative types of legal gear, in a manner consistent with the purposes of this 30 chapter; 31 (13) establish and administer the collection of the annual fees provided

01 for in AS 16.43.160; 02 (14) administer the issuance of commercial fishing vessel licenses 03 under AS 16.05.490; 04 (15) issue educational entry permits to applicants who qualify under 05 the provisions of AS 16.43.340 - 16.43.390; 06 (16) establish reasonable user fees for services; 07 (17) issue landing permits under AS 16.05.675 and regulations adopted 08 under that section; 09 (18) establish and collect annual fees for the issuance of landing 10 permits that reasonably reflect the costs incurred in the administration and 11 enforcement of provisions of law related to landing permits; 12 (19) establish a moratorium on entry into commercial fisheries as 13 provided in AS 16.43.225; 14 (20) when requested by a regional development organization formed 15 under former AS 44.33.895 or a regional fisheries trust established under 16 AS 16.44.010, provide to the organization or trust, without charge, public information 17 contained in the commission's data with respect to relevant fisheries, including limited 18 fisheries, fishery participants, and limited entry permit holders' harvests and earnings; 19 [AND] 20 (21) administer, when necessary to accomplish the purposes of this 21 chapter, a Bering Sea hair crab fishery vessel permit system under AS 16.43.451 - 22 16.43.521; 23 (22) approve the temporary transfer of entry permits from 24 regional fisheries trusts established under AS 16.44.010 to qualified individuals 25 under AS 16.44.080; 26 (23) prohibit the transfer of an entry permit to or from a regional 27 fisheries trust established under AS 16.44.010 if the acquisition of the entry 28 permit by the trust would violate AS 16.44.060; 29 (24) after dissolution of a fisheries trust established under 30 AS 16.44.010, determine and apply equitable methods of reissuance of entry 31 permits held by that fisheries trust to ensure the state receives fair market value

01 for the permits. 02 * Sec. 18. AS 16.43.140(a) is amended to read: 03 (a) A person may not operate gear in the commercial taking of fishery 04 resources if the person does not hold [WITHOUT] a valid entry permit or a valid 05 interim-use permit or the person is not an individual who is a temporary 06 transferee under AS 16.43.180 or 16.43.190 [ISSUED BY THE COMMISSION]. 07 * Sec. 19. AS 16.43.140(b) is amended to read: 08 (b) A permit is not required of a crewmember or other person assisting in the 09 operation of a unit of gear engaged in the commercial taking of fishery resources as 10 long as the holder of the entry permit or [THE] interim-use permit or the temporary 11 transferee under AS 16.43.180 or 16.43.190 for that particular unit of gear is at all 12 times present and actively engaged in the operation of the gear. 13 * Sec. 20. AS 16.43.150(a) is amended to read: 14 (a) Except as may be otherwise provided under AS 16.43.270(d), an entry 15 permit authorizes the permittee, or individual to whom an entry permit is 16 temporarily transferred under AS 16.43.180 or 16.43.190, to operate a unit of gear 17 within a specified fishery. 18 * Sec. 21. AS 16.43.150(b) is amended to read: 19 (b) The holder of an entry permit or a temporary transferee under 20 AS 16.43.180 or 16.43.190 shall have the permit in possession at all times when 21 engaged in the operation of gear for which it was issued. 22 * Sec. 22. AS 16.43.150(g) is amended to read: 23 (g) Except as provided in AS 16.10.333 - 16.10.338, AS 44.81.215, 44.81.225, 24 and 44.81.231 - 44.81.250, an entry permit may not be 25 (1) pledged, mortgaged, leased, or encumbered in any way; 26 (2) transferred with any retained right of repossession or foreclosure, 27 or on any condition requiring a subsequent transfer, unless the permit is temporarily 28 transferred under AS 16.43.180 or 16.43.190; or 29 (3) attached, distrained, or sold on execution of judgment or under any 30 other process or order of any court, except as provided in AS 16.43.170(g) and (h). 31 * Sec. 23. AS 16.43.150(h) is amended to read:

01 (h) Unless an entry permit holder has expressed a contrary intent in a will that 02 is probated, the commission shall, upon the death of the permit holder, transfer the 03 permanent permit by right of survivorship directly to the surviving spouse or, if no 04 spouse survives, to a natural person or a regional fisheries trust established under 05 AS 16.44.010 designated by the permit holder on a form provided by the commission. 06 If no spouse survives and if the person or regional fisheries trust designated on the 07 form, if any, does not survive or continue to exist, the permit passes as part of the 08 permit holder's estate. A designation under this subsection must be acknowledged 09 before a person authorized to administer an oath under AS 09.63.010 or must be 10 witnessed by two persons who are qualified under AS 13.12.505 to witness the will of 11 the permit holder. Except as provided in AS 16.10.333 - 16.10.337, AS 44.81.215, and 12 44.81.231 - 44.81.250, the permit is exempt from the claims of creditors of the estate. 13 * Sec. 24. AS 16.43.150 is amended by adding new subsections to read: 14 (j) Subsections (h) and (i) of this section do not apply to a temporary 15 transferee under AS 16.43.190. 16 (k) A temporary transferee under AS 16.43.180 or 16.43.190 has the same use 17 privilege or right in a fishery that is available to an individual holding an entry permit 18 or valid interim-use permit under this chapter. 19 * Sec. 25. AS 16.43.160(d) is amended to read: 20 (d) The holder of a permit whose household income, assets, and financial 21 resources fall within the eligibility standards for the food stamp program under 7 22 U.S.C. 2011 - 2025, as amended, is subject to an annual base fee for the issuance or 23 renewal of an entry permit or an interim-use permit that is equal to 50 percent of the 24 annual base fee that the permit holder would otherwise pay under (c) of this section. In 25 addition to the reduced annual base fee under this subsection, a nonresident who 26 qualifies for a reduced fee under this subsection shall pay the annual nonresident 27 surcharge established under (c) of this section. This subsection does not apply to a 28 temporary transferee under AS 16.43.190. 29 * Sec. 26. AS 16.43.170(a) is amended to read: 30 (a) Except as provided in AS 16.10.333 - 16.10.338 and [IN] AS 44.81.231 - 31 44.81.250, entry permits and interim-use permits are transferable only through the

01 commission as provided in this section, AS 16.43.180, and 16.43.190 [AS 16.43.180] 02 and under regulations adopted by the commission. An involuntary transfer of an entry 03 permit in a manner inconsistent with the statutes of this state and the regulations of the 04 commission is void. 05 * Sec. 27. AS 16.43.170(b) is amended to read: 06 (b) Except as provided for temporary transfers under AS 16.43.180 and 07 16.43.190 and permit holders subject to [IN] (e) of this section, the holder of an 08 entry permit may transfer the permit to another person, to a regional fisheries trust 09 under AS 16.44, or to the commission upon 60 days' [DAYS] notice of intent to 10 transfer under regulations adopted by the commission. Not [NO] sooner than 60 days 11 nor later than 12 months from the date of notice to the commission, the holder of an 12 entry permit may transfer the permit. If the proposed transferee, other than the 13 commission or a regional fisheries trust, can demonstrate the present ability to 14 participate actively in the fishery, and the transfer does not violate any provision of 15 this chapter or regulations adopted under this chapter, and if a certificate for the permit 16 under AS 16.10.333(b)(1) - (2), 16.10.338, or AS 44.81.231(a) is not in effect, the 17 commission shall approve the transfer and reissue the entry permit to the transferee if 18 [PROVIDED THAT] neither party is prohibited by law from participating in the 19 transfer. 20 * Sec. 28. AS 16.43.180(a) is amended to read: 21 (a) The commission shall adopt regulations providing for the temporary 22 emergency transfer of entry permits, including temporary emergency transfer of 23 temporarily transferred permits under AS 16.43.190, and interim-use permits when 24 illness, disability, death, required military or government service, or other unavoidable 25 hardship prevents the permit holder or temporary transferee from participating in the 26 fishery. To alleviate hardship pending a final determination of the permit holder's 27 eligibility for an entry permit, the commission shall adopt regulations providing for the 28 temporary emergency transfer of an interim-use permit issued under AS 16.43.210(b) 29 or 16.43.225. 30 * Sec. 29. AS 16.43.180 is amended by adding a new subsection to read: 31 (c) If a temporary transferee under AS 16.43.190 is prevented from

01 participating in a fishery under (a) of this section, the commission shall approve the 02 temporary emergency transfer of the permit fished by the transferee to another 03 individual, if 04 (1) the terms of the temporary emergency transfer agreement between 05 the emergency transferee and the regional fisheries trust allow the emergency 06 transferee to fish the permit on the same terms as the individual prevented from 07 participating in the fishery; and 08 (2) the individual is 09 (A) selected by the temporary transferee who is prevented from 10 participating in the fishery; 11 (B) approved by the regional fisheries trust that holds the 12 permit; and 13 (C) qualified under this chapter and AS 16.44.080. 14 * Sec. 30. AS 16.43 is amended by adding a new section to article 2 to read: 15 Sec. 16.43.190. Regional fisheries trusts; temporary transfer of entry 16 permits. (a) When an entry permit is transferred to a regional fisheries trust 17 established under AS 16.44.010, the commission shall record the regional fisheries 18 trust as the permit holder. An entry permit held by a regional fisheries trust may only 19 be fished by an individual qualified under AS 16.44.080(a) and approved as a 20 temporary transferee by the commission under (c) of this section or AS 16.43.180(c). 21 (b) Before an individual qualified under AS 16.44.080 may fish an entry 22 permit held by a regional fisheries trust, the regional fisheries trust shall provide the 23 commission with 24 (1) information identifying the permit to be temporarily transferred; 25 (2) the name, and other reasonable identifying information requested 26 by the commission, of the individual; 27 (3) the terms of the temporary transfer, including the length of the 28 transfer period and compensation; and 29 (4) any other information that the commission may require by 30 regulation. 31 (c) Unless the commission finds that an individual does not qualify for transfer

01 of an entry permit under this chapter or AS 16.44.080, the commission shall approve 02 the temporary transfer of an entry permit held by a regional fisheries trust to the 03 individual on the terms provided to the commission under (b)(3) of this section within 04 15 days after receipt of all information required, or requested, by the commission 05 under this section. 06 (d) The commission shall revoke the temporary transfer of an entry permit 07 held by a regional fisheries trust if 08 (1) requested by a regional fisheries trust under AS 16.43.960(l); or 09 (2) a temporary transferee 10 (A) fails to compensate the fisheries trust as provided by the 11 terms of the temporary transfer provided to the commission under (b) of this 12 section; or 13 (B) is not qualified under this chapter or AS 16.44.080. 14 * Sec. 31. AS 16.43.330(a) is amended to read: 15 (a) When the number of outstanding entry permits for a fishery is less than the 16 optimum number established under AS 16.43.290, the commission shall issue new 17 entry permits to applicants who are presently able to engage actively in the fishery or, 18 subject to AS 16.44.060, to regional fisheries trusts established under 19 AS 16.44.010 until the optimum number is reached. 20 * Sec. 32. AS 16.43.850 is amended to read: 21 Sec. 16.43.850. Point system. (a) For the purpose of identifying frequent 22 violators of commercial fishing laws in salmon fisheries, the commission shall adopt 23 regulations establishing a uniform system for the suspension of commercial salmon 24 fishing privileges by assigning demerit points for convictions for violations of 25 commercial fishing laws in salmon fisheries that are reported to the commission under 26 AS 16.43.880. The commission shall assess demerit points against an individual who 27 holds an entry permit or interim-use permit or who is a temporary transferee 28 under AS 16.43.180 or 16.43.190 [A PERMIT HOLDER] for each violation of 29 commercial fishing laws in a salmon fishery in accordance with (b) and (c) of this 30 section. The commission shall assess points against an individual who holds a permit 31 or who is a temporary transferee under AS 16.43.180 or 16.43.190 [HOLDER] for

01 the salmon fishery in which the violation of commercial fishing laws occurred. 02 (b) The commission shall assess demerit points against an individual who 03 holds a permit or who is a temporary transferee under AS 16.43.180 or 16.43.190 04 [HOLDER] for a conviction of a violation of commercial fishing laws in a salmon 05 fishery under AS 16.05.722, 16.05.723, 16.05.831; AS 16.10.055, 16.10.070 - 06 16.10.090, 16.10.100, 16.10.110, 16.10.120, 16.10.200 - 16.10.220, and 16.10.760 - 07 16.10.790 for the following violations in accordance with this schedule: 08 (1) fishing in closed waters ................ 6 points; 09 (2) fishing during closed season or period ....... 6 points; 10 (3) fishing with more than the legal amount of gear ............. 4 points; 11 (4) fishing with gear not allowed in fishery ...... 6 points; 12 (5) fishing before expiration of transfer period .... 6 points; 13 (6) interfering with commercial fishing gear ..... 4 points; 14 (7) fishing with more than the legal amount of 15 gear on vessel ................................... 4 points; 16 (8) improper operation of fishing gear ......... 4 points; 17 (9) permit holder or permit temporary transferee 18 not present when required ........................... 4 points; 19 (10) fishing with underlength or overlength vessel . 6 points; 20 (11) wanton waste of fishery resources ......... 4 points. 21 (c) Notwithstanding (b) of this section, if the [A PERMIT HOLDER'S] first 22 conviction of a violation of commercial fishing laws in a salmon fishery in a 36-month 23 period for an individual who is a permit holder or a temporary transferee under 24 AS 16.43.180 or 16.43.190 is a conviction under AS 16.05.722, the number of demerit 25 points assessed against the permit holder or temporary transferee for the violation 26 must be one-half of the points assessed for the violation under (b) of this section. 27 (d) The commission shall suspend the [A PERMIT HOLDER'S] commercial 28 salmon fishing privileges of an individual who is a permit holder or a temporary 29 transferee under AS 16.43.180 or 16.43.190 for a salmon fishery for a period of 30 (1) one year if the permit holder or temporary transferee 31 accumulates 12 or more points during any consecutive 36-month period as a result of

01 convictions for violations of commercial fishing laws in the salmon fishery; 02 (2) two years if the permit holder or temporary transferee 03 accumulates 16 or more points during any consecutive 36-month period as a result of 04 convictions for violations of commercial fishing laws in the salmon fishery; 05 (3) three years if the permit holder or temporary transferee 06 accumulates 18 or more points during any consecutive 36-month period as a result of 07 convictions for violations of commercial fishing laws in the salmon fishery. 08 * Sec. 33. AS 16.43.855(a) is amended to read: 09 (a) Notice of each assessment of points shall be given to the permit holder or 10 the temporary transferee under AS 16.43.180 or 16.43.190. Notice shall also be 11 given to the permit holder or temporary transferee before the expiration of a 12 suspension of commercial salmon fishing privileges under AS 16.43.850(d) that 13 subsequent violations of commercial fishing laws in the salmon fishery may result in 14 further suspensions of the permit. The notice may be given by first class mail. 15 * Sec. 34. AS 16.43.855(c) is amended to read: 16 (c) The assessment of points against a permit holder or temporary transferee 17 under AS 16.43.180 or 16.43.190 by the commission under AS 16.43.850 - 16.43.895 18 is in addition to, and not in substitution for, other provisions of this title and is not a 19 substitute for any penalty imposed by a court. 20 * Sec. 35. AS 16.43.855(d) is amended to read: 21 (d) Subject to (e) of this section, if [IF] points are assessed against an 22 individual temporarily transferred [A PERMIT HOLDER WHO HOLDS] a 23 commercial fishing permit for a salmon fishery under AS 16.43.180 [UNDER AN 24 EMERGENCY TRANSFER APPROVED BY THE COMMISSION UNDER 25 AS 16.43.180], the same number of points shall also be assessed against the transferor 26 of the permit or the temporary transferee from whom the permit was transferred 27 under AS 16.43.180(c). Points assessed against the transferor of the permit under this 28 subsection shall be included in calculations made under AS 16.43.850(d). 29 * Sec. 36. AS 16.43.855 is amended by adding a new subsection to read: 30 (e) If the commission assesses points under (d) of this section against an 31 individual to whom a permit is temporarily transferred under AS 16.43.180 or

01 16.43.190, the commission 02 (1) shall provide notice of the assessment of points to the regional 03 fisheries trust that temporarily transferred the permit; and 04 (2) may not assign any point against the regional fisheries trust. 05 * Sec. 37. AS 16.43.860 is amended to read: 06 Sec. 16.43.860. Suspension. (a) A permit holder or individual to whom a 07 permit is temporarily transferred under AS 16.43.180 or 16.43.190 whose 08 commercial salmon fishing privileges for a salmon fishery are suspended under 09 AS 16.43.850 - 16.43.895 may not obtain an entry permit or interim-use permit for 10 that salmon fishery during the period of the suspension of the privileges. During the 11 period for which the permit holder's or temporary transferee's privilege to obtain an 12 entry permit or interim-use permit for a salmon fishery is suspended under this 13 section, the commission may not issue a permit card to the permit holder or 14 temporary transferee for that fishery. 15 (b) A permit holder or individual to whom a permit is temporarily 16 transferred under AS 16.43.180 or 16.43.190 whose privilege of obtaining a 17 commercial fishing permit for a salmon fishery is suspended under AS 16.43.850 - 18 16.43.895 may not 19 (1) engage in the salmon fishery under a crewmember license; [OR] 20 (2) be a temporary transferee for the salmon fishery under 21 AS 16.43.180 or 16.43.190; or 22 (3) lease or rent the individual's [PERMIT HOLDER'S] interest in a 23 boat to another person if the boat would be used in the salmon fishery for which the 24 permit holder's or temporary transferee's fishing privileges are suspended. 25 (c) If, during the period for which the commission has suspended the [A 26 PERMIT HOLDER'S] commercial fishing privileges of a permit holder or 27 individual to whom a permit is temporarily transferred under AS 16.43.180 or 28 16.43.190 for a salmon fishery [ARE SUSPENDED], the commission establishes a 29 limited entry system for the salmon fishery, the permit holder or temporary 30 transferee shall be eligible to obtain an entry permit for that fishery to the extent that 31 the permit holder or temporary transferee qualifies for the entry permit under

01 regulations adopted by the commission. If the permit holder or temporary transferee 02 qualifies for an entry permit for the fishery, the commission shall withhold issuance of 03 the entry permit until the period of the suspension imposed under AS 16.43.850 - 04 16.43.895 has expired. 05 (d) The commission may not transfer a commercial fishing permit for a 06 salmon fishery under an emergency transfer under AS 16.43.180 if, at the time of the 07 application for the emergency transfer, the [PERMIT HOLDER'S] commercial salmon 08 fishing privileges of the permit holder or temporary transferee for the salmon 09 fishery have been suspended. 10 * Sec. 38. AS 16.43.960(a) is amended to read: 11 (a) Except as provided in (k) of this section, the [THE] commission may 12 revoke, suspend, or transfer all entry or interim-use permits, vessel entry permits, or 13 vessel interim-use permits held by a person or entity who knowingly provides or 14 assists in providing false information, or fails to correct false information provided to 15 the commission for the purpose of obtaining a benefit for self or another, including the 16 issuance, renewal, duplication, [OR] transfer, or temporary transfer under 17 AS 16.43.180 or 16.43.190 of an entry or interim-use permit, vessel license, vessel 18 entry permit, or vessel interim-use permit. The commission may also revoke the 19 temporary transfer of a permit under AS 16.43.190 to an individual who 20 knowingly provides or assists in providing false information, or fails to correct 21 false information provided, to the commission for the purpose of obtaining a 22 benefit for self or another. The commission may suspend, as appropriate, that 23 person's, [OR] entity's, or temporary transferee's eligibility to hold or receive a 24 temporary transfer of an entry or interim-use permit, vessel entry permit, or vessel 25 interim-use permit for a period not to exceed three years, and may impose an 26 administrative fine of not more than $5,000 on the person or entity whose officers, 27 employees, representatives, or agents knowingly provide or assist in providing false 28 information, or fail to correct false information provided, to the commission for the 29 purpose of obtaining a benefit. 30 * Sec. 39. AS 16.43.960 is amended by adding new subsections to read: 31 (k) An entry permit held by a regional fisheries trust

01 (1) shall revert to the commission and be made available for reissuance 02 if the regional fisheries trust that holds the permit is dissolved under AS 16.44.010(d); 03 (2) may not be revoked or transferred away from the regional fisheries 04 trust solely because of the actions of an individual to whom the permit is temporarily 05 transferred under AS 16.43.190. 06 (l) If the commercial fishing privileges of an individual who is a temporary 07 transferee under AS 16.43.190 are suspended for a period 08 (1) longer than the remaining period of the individual's temporary 09 transfer term provided to the commission under AS 16.43.190(b)(3), the regional 10 fisheries trust that holds the permit may request that the commission revoke the 11 temporary transfer; or 12 (2) shorter than the remaining period of the individual's temporary 13 transfer term provided to the commission under AS 16.43.190(b)(3), the regional 14 fisheries trust that holds the permit may request that the commission revoke the 15 temporary transfer only if requested by the temporary transferee. 16 * Sec. 40. AS 16.43.990(3) is amended to read: 17 (3) "entity" means a corporation, company, partnership, firm, 18 association, organization, joint venture, trust, society, regional fisheries trust under 19 AS 16.44, or other legal entity other than a natural person; 20 * Sec. 41. AS 16 is amended by adding a new chapter to read: 21 Chapter 44. Regional Fisheries Trusts. 22 Sec. 16.44.010. Establishment and purpose of a regional fisheries trust. (a) 23 The department may authorize a municipality or municipalities to establish a regional 24 fisheries trust if there is not already a fisheries trust established in that region and at 25 least two-thirds of the municipalities within the fisheries trust region, acting jointly, 26 apply to the department with a business plan and bylaws for the proposed fisheries 27 trust that comply with the requirements of this chapter. The department may not 28 authorize more than three regional fisheries trusts. If there are more applicants to form 29 regional fisheries trusts than available authorizations, the department shall authorize 30 eligible trusts in the order in which the applications were received. 31 (b) The purposes of a regional fisheries trust established under (a) of this

01 section are to 02 (1) prevent economic distress among fishermen and those persons 03 dependent on them for a livelihood; 04 (2) improve access to state fisheries by creating opportunities for those 05 persons with limited alternative economic options and sources of income; 06 (3) empower communities to achieve economic self-sufficiency; and 07 (4) promote resource conservation. 08 (c) The department, in consultation with the Department of Fish and Game, 09 shall establish fisheries trust regions. The department may modify or change the 10 boundaries of the regions for good reason. 11 (d) Each fisheries trust established under (a) of this section is a public 12 corporation and instrumentality of the state within the Department of Commerce, 13 Community, and Economic Development. The exercise by a fisheries trust of the 14 powers conferred under this chapter is considered to be for a public purpose. For 15 administrative purposes, the fisheries trusts are in the department, but each fisheries 16 trust has a separate and independent legal existence from the state and shall be 17 governed by a board established under AS 16.44.020. Upon the dissolution of a 18 fisheries trust, the rights and property of the fisheries trust, other than a limited entry 19 permit held by the fisheries trust, pass to the state. A limited entry permit held by a 20 fisheries trust at the time of the fisheries trust's dissolution reverts to the commission 21 and may be reissued under AS 16.43.100(a)(25). 22 (e) The department may dissolve a fisheries trust if the fisheries trust becomes 23 insolvent. However, nothing in this subsection precludes municipalities in that region 24 from establishing another fisheries trust under (a) of this section. 25 Sec. 16.44.020. Regional fisheries trust board; membership; meetings; 26 location. (a) Each regional fisheries trust shall be governed by a board of directors, 27 composed of members appointed by the governor under this section. 28 (b) The governor shall appoint one individual from each municipality wholly 29 or partially located within the fisheries trust region established by the department 30 under AS 16.44.010(c) to serve as a member of a fisheries trust board. The governor 31 shall choose each member appointed under this subsection from a list of nominees

01 provided by each municipality. 02 (c) If municipalities request in an application submitted under 03 AS 16.44.010(a), or a board votes under AS 16.44.050(a)(2), that the board of 04 directors for that region's fisheries trust include directors from each unincorporated 05 community within the fisheries trust region, the governor shall appoint one individual 06 from each unincorporated community wholly or partially within the fisheries trust 07 region to serve as a member of the board of directors of the regional fisheries trust. In 08 each unincorporated community wholly or partially within the fisheries trust region, a 09 single entity or village council eligible to receive a community assistance payment 10 under AS 29.60.865 shall provide the list of nominees from which the governor shall 11 appoint an individual to serve as a member of a regional fisheries trust board of 12 directors. 13 (d) The governor shall appoint individuals to the board of a fisheries trust 14 under (b) and (c) of this section who have a diversity of experience relevant to the 15 operations of a fisheries trust established under this chapter, including, for each board, 16 at least two individuals who have experience in the commercial fishing industry. Each 17 appointed individual must be a resident of the municipality or unincorporated 18 community from which the individual was appointed. 19 (e) Except as provided under AS 16.44.050(a)(2), a member of a board of a 20 regional fisheries trust shall serve for a term of three years. A member shall hold 21 office for the term of the appointment and until a successor has been appointed and 22 qualified. A member is eligible for reappointment. A vacancy on a board occurring 23 other than by expiration of term shall be filled in the same manner as the original 24 appointment but for the unexpired term only. Terms must be staggered so that one- 25 third, or as close to one-third as practicable, of the terms expire each year. A member 26 may not serve more than 12 cumulative years on the board. 27 (f) A majority of the members of a board constitutes a quorum for the 28 transaction of business and the exercise of the powers and duties of the board except 29 for certain board actions relating to the board's membership under AS 16.44.050(a)(2). 30 (g) A member of a board may not be a temporary transferee of an entry permit 31 held by a fisheries trust.

01 (h) The members of a board shall annually elect from among themselves a 02 chair and vice-chair and other board officers as may be provided in the bylaws of the 03 fisheries trust. The members of the board may elect to create an executive governance 04 committee and provide that committee some of the board's powers under this chapter. 05 (i) The board of each fisheries trust may hire staff qualified to assist the board 06 in carrying out the provisions of this chapter. If staff is hired, staff compensation may 07 not exceed compensation provided to state employees with comparable duties. 08 (j) A fisheries trust may share resources, including staff, with other fisheries 09 trusts established under this chapter if the sharing arrangement is approved by the 10 board of each participating fisheries trust. A fisheries trust may also share resources 11 and staff with a regional association qualified under AS 16.10.380(a), an Alaska 12 Native village or regional corporation established under 43 U.S.C. 1606 (Alaska 13 Native Claims Settlement Act), a regional development organization as defined in 14 AS 44.33.896, or another entity created for a purpose related to commercial fishing in 15 the fisheries trust region. 16 (k) Unless a fisheries trust is sharing resources with one or more other entities 17 under (j) of this section, a fisheries trust shall be administratively headquartered in the 18 community in its region with the greatest number of entry permits on January 1, 2017. 19 Sec. 16.44.030. Administrative expenses, compensation, and fees due the 20 department. (a) A member of a fisheries trust board may be provided reasonable 21 compensation. However, the compensation may not exceed the median rate of 22 compensation provided to the elected members of the municipal governments of the 23 three most populated municipalities within the fisheries trust region. For the purposes 24 of this subsection, "compensation" does not include reasonable per diem and travel 25 expenses for necessary fisheries trust business purposes. 26 (b) The administrative expenses of a fisheries trust must be reasonable and 27 minimized to enhance the ability of the fisheries trust to acquire entry permits and to 28 return maximum benefit to the persons and region served by the fisheries trust. 29 (c) The commissioner shall assess fisheries trust fees for the department's 30 actual expenses necessarily incurred by the department in connection with its duties 31 under this chapter relating to the fisheries trust.

01 Sec. 16.44.040. Exemption from taxation. (a) Except for permit-related fees 02 levied under AS 16.43.160, the real and personal property of a fisheries trust 03 organized under this chapter and its assets, income, and receipts are declared to be 04 devoted to an essential public and governmental function and purpose, and the 05 property, assets, income, receipts, and other interests of the fisheries trust are exempt 06 from taxes and special assessments of the state or a political subdivision of the state, 07 including municipalities, school districts, public utility districts, and other 08 governmental units. 09 (b) Nothing in this section relieves an individual who has a temporarily 10 transferred entry permit held by a fisheries trust from applicable fees, taxes, or 11 assessments. 12 Sec. 16.44.050. Powers and duties of a regional fisheries trust. (a) In 13 addition to all powers necessary to carry out the purposes of this chapter, a fisheries 14 trust may 15 (1) adopt, amend, and repeal bylaws for its organization, management 16 of its internal affairs, and the conduct of its business consistent with the provisions of 17 this chapter; 18 (2) if two-thirds of the board members appointed from the 19 municipalities in the region under AS 16.44.020(b) affirmatively vote to approve the 20 action, expand or reduce the membership of the fisheries trust board of directors by 21 allowing or prohibiting individuals from unincorporated communities in the region to 22 serve as directors; 23 (3) subject to AS 16.44.060(e), borrow funds; 24 (4) subject to the limitations of AS 16.43 and this chapter, hold, 25 transfer, or receive the transfer of an entry permit for a fishery within the fisheries 26 trust region; 27 (5) accept gifts or grants from a federal agency or an agency or 28 instrumentality of the state, a municipality, a private organization, or another source, 29 including the transfer of an entry permit for a regional fishery or a gift or grant for the 30 acquisition of an entry permit within a specific fishery located in the fisheries trust 31 region;

01 (6) subject to AS 16.43.190 and AS 16.44.070, temporarily transfer an 02 entry permit held by the fisheries trust to an individual qualified under AS 16.44.080; 03 (7) request that the commission revoke the temporary transfer of a 04 permit under AS 16.43.190(d); and 05 (8) after a fisheries trust acquires the maximum number of entry 06 permits allowed under AS 16.44.060, use revenue and other funds to support programs 07 and projects that benefit commercial fishermen within the fisheries trust region. 08 (b) In a manner consistent with AS 16.44.010(b), a fisheries trust shall 09 (1) subject to the commission's approval under AS 16.43.190, select 10 individuals qualified under (d) of this section and AS 16.44.080 by competitive bid to 11 receive temporary transfers of entry permits held by the fisheries trust; 12 (2) establish criteria for the temporary transfer of entry permits 13 acquired by the fisheries trust that ensure the solvency and financial strength of the 14 fisheries trust; 15 (3) temporarily transfer entry permits held by the fisheries trust in 16 accordance with criteria established by the fisheries trust under (2) of this subsection; 17 (4) upon the commission's revocation of a temporary transfer under 18 AS 16.43.190, cancel the temporary transfer of the permit to the individual; and 19 (5) make public the criteria for the temporary transfer of entry permits 20 established under (2) of this subsection and provide copies to the department and the 21 commission. 22 (c) Subject to criteria adopted under (b)(2) of this section, a fisheries trust may 23 prioritize bids for the temporary transfer of entry permits under (b)(1) of this section 24 based on an individual's 25 (1) history of participation in the fishery for which the temporarily 26 transferred entry permit would apply; 27 (2) access to economic opportunities other than commercial fishing; 28 (3) record of participation in commercial fishing organizations and 29 fisheries management; or 30 (4) expected economic contribution to the fisheries trust region if the 31 bidder is awarded a temporarily transferred entry permit under this chapter.

01 (d) Subject to criteria applicable to all bidders, a fisheries trust may elect not 02 to temporarily transfer permits to individuals who 03 (1) hold limited entry permits; 04 (2) have had a temporary transfer revoked by the commission; or 05 (3) have had their commercial fishing privileges suspended under this 06 title. 07 (e) A fisheries trust may not hold a quota share for a federally managed 08 fishery or an interim-use or vessel permit issued under AS 16.43. 09 (f) In this section, "quota share" has the meaning given in AS 16.10.360. 10 Sec. 16.44.055. Disposition of proceeds. Fees associated with the temporary 11 transfer of an entry permit held by a fisheries trust and other fisheries trust revenue, 12 less any fees due the department under AS 16.44.030(c), may be appropriated to a 13 fisheries trust to be used 14 (1) to pay for the fisheries trust's operations; 15 (2) to finance the acquisition of additional permits; and 16 (3) subject to AS 16.44.050(a), to support programs and projects that 17 benefit commercial fishermen within the fisheries trust region. 18 Sec. 16.44.060. Acquisition, holding, and transfer of entry permits. (a) 19 Subject to (b) of this section, a fisheries trust may only acquire an entry permit for a 20 fishery that is conducted in the fisheries trust region. A fisheries trust may not 21 (1) acquire or hold a limited entry permit for a fishery for which the 22 commission has issued 40 or fewer total transferrable entry permits; or 23 (2) hold more than two and one-half percent of the total number of 24 transferrable entry permits issued for a fishery in the fisheries trust region, rounded to 25 the nearest whole number. 26 (b) For the purposes of (a) of this section, a fishery is conducted in a fisheries 27 trust region if the boundaries of that fishery's administrative area include an area 28 inside the fisheries trust region. However, for a fishery that is conducted in more than 29 one fisheries trust region, only the fisheries trust in the fisheries trust region with the 30 greatest number of resident permit holders for the fishery may acquire and temporarily 31 transfer a permit for the fishery.

01 (c) Subject to (a) of this section, and to the extent reasonably possible, a 02 fisheries trust shall hold limited entry permits of each type issued within its region as 03 necessary to offer the opportunity for individuals to participate in all fisheries 04 conducted in the fisheries trust region. 05 (d) The commission shall ensure that a fisheries trust complies with the 06 requirements of this section. A fisheries trust may not transfer, or receive by transfer, 07 an entry permit if the commission finds that the transfer violates the requirements of 08 this section. 09 (e) An entry permit held by a fisheries trust and temporarily transferred under 10 this chapter may not be leased, pledged, mortgaged, or encumbered in any way. 11 (f) A fisheries trust may not transfer an entry permit unless the fisheries trust 12 receives fair market value for the permit. 13 Sec. 16.44.070. Terms for the temporary transfer of entry permits held by 14 a regional fisheries trust. (a) A fisheries trust shall establish terms for the temporary 15 transfer of entry permits held by the fisheries trust in a manner that is consistent with 16 the purposes provided by AS 16.44.010(b). 17 (b) The period for the temporary transfer of an entry permit held by a fisheries 18 trust may not exceed six years, and an individual may not receive a temporarily 19 transferred entry permit or permits for a cumulative period of more than six years, 20 regardless of whether the years are consecutive. 21 (c) An entry permit held by a fisheries trust may be fished only by a temporary 22 transferee approved by the commission under AS 16.43.180(c) or 16.43.190. 23 (d) A fisheries trust may not impose terms that limit a temporary transferee's 24 time, place, manner, or method of fishing or selling fish. 25 (e) Terms for the temporary transfer of an entry permit under this section must 26 provide that the fisheries trust shall pay the fees required under AS 16.43.160 and that 27 the temporary transferee shall pay all taxes and assessments relating to the entry 28 permit and the use of that permit. 29 (f) A fisheries trust may request that the commission revoke the temporary 30 transfer of an entry permit under this chapter only as provided by AS 16.43.190(d) and 31 16.43.960(l).

01 Sec. 16.44.080. Qualified temporary transferees. (a) A fisheries trust may 02 not temporarily transfer a permit to an individual who 03 (1) already holds a limited entry or interim-use permit for the fishery 04 for which the temporarily transferred permit would apply; 05 (2) is employed by a fisheries trust under AS 16.44.020(i) or of another 06 entity that shares resources with the fisheries trust under AS 16.44.020(j); 07 (3) is not able to demonstrate an ability to participate actively and 08 safely in the fishery for which the temporarily transferred permit would apply; or 09 (4) is a member of a board of a regional fisheries trust established 10 under AS 16.44.020. 11 (b) A fisheries trust shall make reasonable efforts to verify an individual's 12 qualifications under this section. Reasonable efforts under this subsection may include 13 requiring an applicant to provide evidence of the ability to participate actively, safely, 14 and successfully in the fishery, which may include an applicant's 15 (1) possession of a suitable vessel and appropriate gear; 16 (2) ability to procure appropriate insurance coverage; 17 (3) arrangement with a buyer to purchase fish caught commercially by 18 the individual; and 19 (4) relationship with an experienced fisherman who has agreed to act 20 as the applicant's mentor. 21 (c) If proceedings are pending to suspend an individual's commercial fishing 22 privileges, the individual may not receive a temporarily transferred entry permit under 23 this chapter. 24 Sec. 16.44.099. Definitions. In this chapter, 25 (1) "board" means the board of a regional fisheries trust; 26 (2) "commission" means the Alaska Commercial Fisheries Entry 27 Commission; 28 (3) "commissioner" means the commissioner of commerce, 29 community, and economic development; 30 (4) "department" means the Department of Commerce, Community, 31 and Economic Development unless specifically provided otherwise;

01 (5) "entry permit" or "permit" means a commercial fishing entry 02 permit issued under AS 16.43; 03 (6) "fisheries trust" means a regional fisheries trust established under 04 AS 16.44.010; 05 (7) "fishery" has the meaning given in AS 16.05.940. 06 * Sec. 42. AS 39.25.110(11) is amended to read: 07 (11) the officers and employees of the following boards, commissions, 08 and authorities: 09 (A) [REPEALED 10 (B)] Alaska Permanent Fund Corporation; 11 (B) [(C)] Alaska Industrial Development and Export Authority; 12 (C) [(D)] Alaska Commercial Fisheries Entry Commission; 13 (D) [(E)] Alaska Commission on Postsecondary Education; 14 (E) [(F)] Alaska Aerospace Corporation; 15 (F) [(G) REPEALED 16 (H)] Alaska Gasline Development Corporation and subsidiaries 17 of the Alaska Gasline Development Corporation; 18 (G) a regional fisheries trust established under 19 AS 16.44.010; 20 * Sec. 43. AS 43.76.015(f) is amended to read: 21 (f) In this section, "eligible interim-use permit and entry permit holder" means 22 an individual who, 90 days before the date ballots must be postmarked to be counted 23 in an election under this section, is listed in the records of the Alaska Commercial 24 Fisheries Entry Commission as the legal owner of an interim-use permit or an entry 25 permit that [WHICH] authorizes the individual to fish commercially in an 26 administrative area established by the Alaska Commercial Fisheries Entry 27 Commission under AS 16.43.200, which is included, in whole or in part, in the region 28 in which the election is held. An individual to whom an entry permit is 29 temporarily transferred under AS 16.43.190 is not eligible to vote in an election 30 under AS 43.76.001 - 43.76.040. 31 * Sec. 44. AS 43.76.020 is amended by adding a new subsection to read:

01 (c) In this section, "eligible interim-use permit and entry permit holders" has 02 the meaning given in AS 43.76.015. 03 * Sec. 45. AS 43.76.040 is amended to read: 04 Sec. 43.76.040. Definitions [DEFINITION]. In AS 43.76.001 - 43.76.040, 05 unless the context otherwise requires, 06 (1) "buyer" means a person who acquires possession of salmon from 07 the person who caught the salmon regardless of whether there is an actual sale of the 08 salmon but excluding a transfer to a person engaged solely in interstate transportation 09 of goods for hire; and 10 (2) "person holding a limited entry permit under AS 16.43" 11 includes an individual to whom a limited entry permit is temporarily transferred 12 under AS 16.43.190, but does not include a regional fisheries trust established 13 under AS 16.44.010. 14 * Sec. 46. AS 43.76.160(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 Alaska Commercial 18 Fisheries Entry Commission as the legal holder of an interim-use permit for dive gear 19 or an entry permit for dive gear that authorizes the individual to fish commercially in 20 the administrative area for the species of fishery resource for which the dive fishery 21 management assessment is to be approved, amended, or terminated. An individual to 22 whom an entry permit is temporarily transferred under AS 16.43.190 for dive 23 gear that authorizes the individual to fish commercially in the administrative 24 area for the species of fishery resource for which the dive fishery management 25 assessment is to be approved, amended, or terminated is subject to the 26 assessment, but is not eligible to vote in an election under AS 43.76.150 - 27 43.76.210. 28 * Sec. 47. AS 43.76.210 is amended by adding a new paragraph to read: 29 (6) "person holding a limited entry permit for dive gear or an interim- 30 use permit for dive gear issued under AS 16.43" includes an individual to whom a 31 limited entry permit is temporarily transferred under AS 16.43.190, but does not

01 include a regional fisheries trust established under AS 16.44.010. 02 * Sec. 48. AS 43.76.230(g) is amended to read: 03 (g) In this section, "eligible interim-use permit and entry permit holder" means 04 an individual who, 90 days before the date ballots must be postmarked to be counted 05 in an election under this section, is listed in the records of the Alaska Commercial 06 Fisheries Entry Commission as the legal holder of an interim-use permit for salmon 07 fishing gear or an entry permit for salmon fishing gear that authorizes the individual to 08 fish commercially in the salmon fishery for which the salmon fishery assessment is to 09 be approved, amended, or terminated. An individual to whom an entry permit is 10 temporarily transferred under AS 16.43.190 for salmon fishing gear that 11 authorizes the individual to fish commercially in the administrative area for 12 which the salmon fishery assessment is to be approved, amended, or terminated 13 is not eligible to vote in an election under AS 43.76.220 - 43.76.280. 14 * Sec. 49. AS 43.76.280(6) is amended to read: 15 (6) "sold" means the transfer of ownership of salmon from an interim- 16 use permit holder, [OR] entry permit holder, or individual to whom an entry permit 17 is temporarily transferred under AS 16.43.190 to a buyer at the first point of sale; 18 * Sec. 50. AS 43.76.300 is amended by adding a new subsection to read: 19 (b) In this section, "person holding a limited entry permit or interim-use 20 permit under AS 16.43" includes an individual to whom a limited entry permit is 21 temporarily transferred under AS 16.43.190, but does not include a regional fisheries 22 trust established under AS 16.44.010. 23 * Sec. 51. AS 43.76.370(i) is amended to read: 24 (i) In this section, "eligible interim-use permit and entry permit holder" means 25 an individual who, 90 days before the date ballots must be postmarked to be counted 26 in an election under this section, is listed in the records of the Alaska Commercial 27 Fisheries Entry Commission as the legal owner of an interim-use permit or an entry 28 permit that authorizes the individual to operate commercial fishing gear in the fishery 29 that is or will be subject to the seafood development tax that is the subject of the 30 election. An individual to whom an entry permit is temporarily transferred under 31 AS 16.43.190 for a fishery that is or will be subject to a seafood development tax

01 subject to an election under AS 43.76.350 - 43.76.399 is subject to a seafood 02 development tax levied under AS 43.76.350 - 43.76.399 but is not eligible to vote 03 in an election under this section. 04 * Sec. 52. AS 43.76.399 is amended by adding a new paragraph to read: 05 (5) "person holding a limited entry permit or interim-use permit under 06 AS 16.43" includes an individual to whom a limited entry permit is temporarily 07 transferred under AS 16.43.190, but does not include a regional fisheries trust 08 established under AS 16.44.010. 09 * Sec. 53. AS 44.33.020(a) is amended by adding a new paragraph to read: 10 (45) carry out its functions and duties under AS 16.44. 11 * Sec. 54. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 TRANSITION: REGULATIONS. The Alaska Commercial Fisheries Entry 14 Commission and the commissioner of commerce, community, and economic development 15 may immediately adopt regulations necessary to implement the provisions of this Act. The 16 regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the 17 effective date of the law implemented by the regulation. 18 * Sec. 55. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 INITIAL DIRECTORS OF REGIONAL FISHERIES TRUSTS. Subject to 21 AS 16.44.020(e), added by sec. 41 of this Act, the term of office of each initial director of a 22 regional fisheries trust shall be determined by lot. 23 * Sec. 56. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 INITIAL ESTABLISHMENT OF FISHERIES TRUST REGIONS. (a) The 26 Department of Commerce, Community, and Economic Development shall, in consultation 27 with the Department of Fish and Game, divide the state into separate fisheries trust regions to 28 serve as the initial fisheries trust regions under AS 16.44.010(c), added by sec. 41 of this Act, 29 that the Department of Commerce, Community, and Economic Development determines are 30 socially, economically, and politically cohesive, using, to the extent practicable, 31 (1) the boundaries of the administrative areas established for the commercial

01 fishing of salmon by the Alaska Commercial Fisheries Entry Commission under 02 AS 16.43.200, as those boundaries were described in regulation on January 1, 2018; and 03 (2) the designation of state communities as local or nonlocal to particular 04 fisheries made in the report by the Alaska Commercial Fisheries Entry Commission titled 05 "Changes in the Distribution of Alaska's Commercial Fisheries Entry Permits, 1975 - 2016." 06 (b) In establishing the initial fisheries trust regional boundaries under (a) of this 07 section, the Department of Commerce, Community, and Economic Development 08 (1) shall, to the extent practicable, 09 (A) clearly delineate which communities are in each region; and 10 (B) ensure that a community is not split between regions; and 11 (2) may not create a fisheries trust region with less than five communities 12 inside its boundaries. 13 * Sec. 57. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 INITIAL ESTABLISHMENT AND AUTHORIZATION OF REGIONAL 16 FISHERIES TRUSTS. A fisheries trust may not be established before July 1, 2019. However, 17 after January 1, 2019, applications to establish a trust under AS 16.44.010(a), added by sec. 18 41 of this Act, may be filed with the Department of Commerce, Community, and Economic 19 Development. Notwithstanding AS 16.44.010(a), added by sec. 41 of this Act, if, after 20 January 1, 2019, and before April 1, 2019, applicants from more than three fisheries trust 21 regions apply to the Department of Commerce, Community, and Economic Development to 22 establish fisheries trusts for the applicant's respective regions, the commissioner of commerce, 23 community, and economic development shall, in consultation with the commissioner of fish 24 and game, select three of the proposed fisheries trusts to be established based on the 25 (1) degree to which the communities in a fisheries trust region where the 26 establishment of a fisheries trust is proposed have experienced a decline in the number of 27 commercial fishing entry permits issued under AS 16.43 since 1980; and 28 (2) likelihood, as determined by the commissioner of commerce, community, 29 and economic development, on the basis of the submitted business plans and bylaws for the 30 proposed fisheries trusts, that a proposed fisheries trust will achieve the purposes for 31 establishing a fisheries trust under AS 16.44.010(b), added by sec. 41 of this Act.

01 * Sec. 58. Sections 54, 56, and 57 of this Act take effect immediately under 02 AS 01.10.070(c). 03 * Sec. 59. Except as provided by sec. 58 of this Act, this Act takes effect July 1, 2019.