CSHB 195(FSH): "An Act relating to the powers of the Alaska Commercial Fisheries Entry Commission; relating to administrative areas for regulation of certain commercial set net entry permits; establishing a buy-back program for certain set net entry permits; providing for the termination of state set net tract leases under the buy-back program; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 195(FSH) 01 "An Act relating to the powers of the Alaska Commercial Fisheries Entry Commission; 02 relating to administrative areas for regulation of certain commercial set net entry 03 permits; establishing a buy-back program for certain set net entry permits; providing 04 for the termination of state set net tract leases under the buy-back program; and 05 providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 08 to read: 09 SHORT TITLE. This Act may be known as the East Side of Cook Inlet Set Net Fleet 10 Reduction Act. 11 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 LEGISLATIVE FINDINGS. (a) The Alaska State Legislature finds that there is a
01 clear and legitimate state purpose in addressing the dire predicament faced by commercial set 02 net fishers on the east side of Cook Inlet. The predicament stems primarily from the 03 following: 04 (1) the recent return of king salmon to the Kenai River, which resulted in the 05 2023 closure of commercial set net fishing on the east side of Cook Inlet; 06 (2) management restrictions adopted in 2024 that limit the use of commercial 07 set nets in the region that serve to almost close the east side of Cook Inlet to commercial set 08 netting; 09 (3) the Department of Fish and Game's treatment of the incidental catch of 10 king salmon by commercial set netters fishing for sockeye salmon as a significant challenge 11 to conservation efforts; 12 (4) the importance of Kenai River king salmon to the residents of the state for 13 personal use and to the sportfish guiding industry on the Kenai River; and 14 (5) long-term allocative changes made by the Board of Fisheries to how the 15 state's fishery resource is allocated, with data from the Department of Fish and Game 16 indicating a substantial reduction in commercial set netter fishing times on the east side of 17 Cook Inlet over the years, from upward of 500 hours annually in the late 1980s to an average 18 of 200 hours annually in recent years; while the management changes may be intended to 19 balance fishery interests statewide, the commercial set net fishery on the east side of Cook 20 Inlet is uniquely vulnerable because of its location amid the state's largest and expanding 21 population base. 22 (b) The Alaska State Legislature finds that, for over 150 years, generations of 23 commercial set netting families have been central to the legacy of the historic commercial set 24 net fishery on the east side of Cook Inlet. Since the 1840s, commercial set netters have 25 harvested salmon that has sustained local communities and reached tables worldwide. 26 Commercial set netting is a long tradition in the region, used in early international fishing 27 expeditions to the water on the east side of Cook Inlet and generating salmon for the first 28 cannery at the mouth of the Kasilof River in 1882. From the founding of that cannery, the 29 cannery industry expanded rapidly, with 37 canneries along the state's coast by 1892. When 30 fish traps were prohibited, set nets were essential for independent fishers, ensuring the 31 continuation of commercial salmon harvesting for canneries. Commercial set net fishing has
01 been a sustainable tradition that has profoundly influenced the cultural and economic fabric of 02 the east side of Cook Inlet. 03 (c) The Alaska State Legislature finds that this Act, including the limitations on 04 eligibility for the buyback of a commercial limited entry permit for the set net fishery on the 05 east side of Cook Inlet, is rooted in the specific challenges these particular commercial fishers 06 face. Unlike other fisheries, the commercial set net fishery on the east side of Cook Inlet has 07 been subject to targeted closures, severely limiting the ability of commercial set net fishers to 08 fish commercially in recent years. This fishery relies on sockeye salmon returns to the Kenai 09 and Kasilof Rivers, which are experiencing management pressures generated by the demands 10 of the region's growing population. 11 (d) The Alaska State Legislature finds that the Department of Fish and Game's 2023 12 Upper Cook Inlet Commercial Salmon Fishery Season Summary sheds light on the stark 13 realities faced by commercial set netters fishing the east side of Cook Inlet. The fishery was 14 closed throughout the 2023 season because of a dismal forecast for Kenai River late-run large 15 king salmon. Consequently, there was no commercial salmon harvest in the commercial set 16 net fishery on the east side of Cook Inlet, further exacerbating the economic challenges 17 confronting these fishers. In contrast, other fisheries in the region and around the state were 18 able to operate under varying conditions. Some even experienced bountiful seasons. 19 (e) The Alaska State Legislature finds that it is significant that the Upper Subdistrict 20 of the Cook Inlet Central District area remained completely closed throughout the summer of 21 2023. While other districts and subdistricts operated under different management conditions, 22 the closure of commercial set net fishing in this subdistrict underscores the unique challenges 23 faced by this segment of the fishing industry. Therefore, the Alaska State Legislature finds 24 that it is imperative to address the specific needs and concerns of commercial set netters 25 operating on the east side of Cook Inlet through targeted legislative measures, including those 26 proposed in this Act. 27 (f) The Alaska State Legislature finds that the buy-back program established by this 28 Act addresses the inadequacies of applicable existing statutory provisions. The existing buy- 29 back provisions, which allow for the establishment of taxes on existing operators, do not 30 address the specific needs of commercial set netters operating on the east side of Cook Inlet. 31 Taxing permit holders who operate outside the east side of Cook Inlet to fund buybacks for
01 commercial limited entry permits fished on the east side of Cook Inlet is not viable. 02 Therefore, this Act's establishment of a smaller management area exclusively for commercial 03 set netters fishing on the east side of Cook Inlet is crucial to ensuring the effectiveness and 04 fairness of this Act's buy-back program. 05 (g) The Alaska State Legislature finds that allowing certain qualified commercial 06 limited entry permit holders to sell their permits to the Alaska Commercial Fisheries Entry 07 Commission while excluding other commercial fishers is essential to the integrity and 08 effectiveness of the buy-back program. By restricting eligibility to those with a demonstrated 09 history of involvement in the fishery, this Act prevents opportunistic speculation and ensures 10 that only individuals who were genuinely invested in the fishery on the east side of Cook Inlet 11 are eligible. That portion of this Act prevents a person from acquiring a limited entry permit 12 solely for the purpose of profiting from this Act's buy-back provisions. 13 * Sec. 3. AS 16.43.200 is amended by adding new subsections to read: 14 (c) Notwithstanding (a) and (b) of this section, for the purposes of issuing 15 entry permits and controlling entry into the commercial set net fishery on the east side 16 of Cook Inlet, the commission shall establish the area administered on December 31, 17 2024, identified by the Department of Fish and Game as of January 1, 2024, as 18 statistical areas 244-21, 244-22, 244-31, 244-32, 244-41, and 244-42 of the Upper 19 Subdistrict of the Cook Inlet Central District as a distinct administrative area separate 20 from the Cook Inlet administrative area. 21 (d) An entry permit that entitled a person to set net commercially in the area 22 that was administered on December 31, 2024, by the commission as the Cook Inlet 23 administrative area does not entitle that person to set net commercially in the 24 administrative area established under (c) of this section unless the commission 25 reassigns the permit to that administrative area. 26 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 TRANSITION: REASSIGNMENT OF CERTAIN COOK INLET AREA SET NET 29 ENTRY PERMITS. (a) On January 1, 2025, an individual holding an entry permit that entitles 30 the individual to commercially set net in the Cook Inlet administrative area may have the 31 individual's entry permit renewed as an entry permit for the Cook Inlet set net administrative
01 area under AS 16.43.150(c), consistent with the boundaries of that administrative area 02 established under AS 16.43.200, as amended by sec. 3 of this Act, unless the individual 03 provides proof satisfactory to the Alaska Commercial Fisheries Entry Commission of the 04 individual's participation in the fishery in the areas identified by the Department of Fish and 05 Game as of January 1, 2024, as statistical areas 244-21, 244-22, 244-31, 244-32, 244-41, and 06 244-42 of the Upper Subdistrict of the Cook Inlet Central District within the two years 07 preceding December 31, 2023. Proof satisfactory of participation under this subsection may 08 include a shore fisheries lease, an area registration, a buoy tag, or previous submission of 09 fishing statistics for the area. 10 (b) An individual who provides proof satisfactory to the Alaska Commercial Fisheries 11 Entry Commission of the individual's participation in the fishery in the areas identified by the 12 Department of Fish and Game as of January 1, 2024, as statistical areas 244-21, 244-22, 244- 13 31, 244-32, 244-41, and 244-42 of the Upper Subdistrict of the Cook Inlet Central District 14 under (a) of this section shall be reassigned an entry permit on January 1, 2025, for the new 15 administrative area established under AS 16.43.200(c), enacted by sec. 3 of this Act. 16 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 APPEAL OF COMMISSION DECISION NOT TO ASSIGN AN APPLICANT'S 19 PERMIT TO NEW ADMINISTRATIVE AREA. (a) An individual may appeal a decision by 20 the Alaska Commercial Fisheries Entry Commission to renew the entry permit held by the 21 individual that allows the individual to commercially fish in the Cook Inlet administrative 22 area, as the area's boundaries are amended by AS 16.43.200(c), enacted by sec. 3 of this Act, 23 instead of issuing the individual an entry permit for the administrative area established by 24 AS 16.43.200(c), enacted by sec. 3 of this Act. An appeal under this section must be made to 25 the superior court on or before March 1, 2025. 26 (b) The commission shall provide an individual who is appealing a decision of the 27 commission under this section 28 (1) a provisional entry permit for the administrative area established by 29 AS 16.43.200(c), enacted by sec. 3 of this Act; and 30 (2) if the individual's appeal has not been resolved at the time of the election 31 held under sec. 6 of this Act, a provisional ballot for the election.
01 (c) If an individual's appeal has not been resolved at the time of the election held 02 under sec. 6 of this Act, the individual may cast a provisional ballot that may be counted as a 03 vote in the election only if, on appeal, the court determines that the individual's entry permit 04 must be reassigned to the administrative area established by AS 16.43.200(c), enacted by sec. 05 3 of this Act. 06 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 ELECTION FOR COMMERCIAL SET NET FISHING PERMIT BUY-BACK 09 PROGRAM. (a) On April 1, 2025, the commission, with the cooperation of the Department of 10 Natural Resources, shall conduct an election among individuals qualified under (b) of this 11 section on the question of whether to establish an entry permit buy-back program under sec. 7 12 of this Act. 13 (b) An individual is eligible to vote in the election conducted under (a) of this section 14 if the individual holds an entry permit, or provisional entry permit issued under sec. 5(b) of 15 this Act, for set net fishing in the administrative area established under AS 16.43.200(c), 16 enacted by sec. 3 of this Act. 17 (c) The commission shall conduct the election according to the following procedures: 18 (1) not less than 30 days before the date on which ballots must be postmarked 19 to be counted in the election, the commission shall hold at least one public meeting to explain 20 the buy-back program to eligible voters and other interested persons and to explain the 21 registration and voting procedure to be used in the election; the commission shall provide 22 notice of the meeting by 23 (A) mailing the notice to each eligible entry permit holder; 24 (B) posting the notice in at least three public places in the voting 25 region; and 26 (C) publishing the notice on the Alaska Online Public Notice System 27 (AS 44.62.175) and in at least one newspaper of general circulation in the voting 28 region at least once a week for two consecutive weeks before the meeting; 29 (2) the commission shall mail two ballots to each eligible entry permit holder; 30 the commission shall mail the first ballot not more than 45 days before the date on which 31 ballots must be postmarked to be counted in the election; the commission shall mail the
01 second ballot not less than 15 days before the date on which ballots must be postmarked to be 02 counted in the election; the commission shall adopt procedures to ensure that only one ballot 03 from each eligible entry permit holder is counted in the election; 04 (3) the ballot must 05 (A) ask whether the buy-back program established under sec. 7 of this 06 Act should be implemented; 07 (B) indicate the boundaries of the region in which the buy-back 08 program would apply; 09 (C) clarify the details of the buy-back program, including which set net 10 entry permit holders are eligible to participate and how the entry permit buy-back 11 price will be determined by the commission under sec. 7 of this Act if the program is 12 approved; 13 (D) provide the effective date for the initiation of the entry permit buy- 14 back program if the program is approved without reliance on provisional ballots and 15 how the program's effective date will be determined if approval of the program 16 depends on counting provisional ballots; and 17 (E) indicate the date on which ballots must be postmarked in order to 18 be counted; 19 (4) the ballots must be returned by mail and counted by the commission or a 20 person approved by the commission. 21 (d) If the commission determines that the procedural requirements of (c) of this 22 section have been satisfied, the commission shall certify the results of the election 23 (1) within 45 days after the date on which ballots must be postmarked; or 24 (2) only after a sufficient number of program applicants' appeals are resolved 25 under sec. 5 of this Act so that the commission may determine the outcome without counting 26 provisional ballots. 27 (e) In this section, "commission" means the Alaska Commercial Fisheries Entry 28 Commission established under AS 16.43.020. 29 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 COMMERCIAL SHORE SET NET ENTRY PERMIT BUY-BACK PROGRAM. (a)
01 In addition to the buy-back provisions under AS 16.43.310 and 16.43.320, an individual who 02 is qualified under this section may sell the individual's entry permit to the commission under 03 the conditions established in this section. Except as provided in sec. 6 of this Act, to 04 participate, an individual must 05 (1) hold a commercial fishing set net entry permit for the administrative area 06 established under AS 16.43.200(c), enacted by sec. 3 of this Act; 07 (2) provide a shore fisheries lease, an area registration, a buoy tag, a previous 08 submission of fishing statistics for the area, or other documentation proving, to the 09 commission's satisfaction, that the individual or an immediate family member of the 10 individual 11 (A) has held the entry permit that was reassigned from the Cook Inlet 12 to the administrative area established under AS 16.43.200(c) since January 1, 2020; 13 and 14 (B) actively participated in the fishery identified by the Department of 15 Fish and Game as of January 1, 2024, as statistical areas 244-21, 244-22, 244-31, 244- 16 32, 244-41, and 244-42 of the Upper Subdistrict of the Cook Inlet Central District 17 within the two years preceding December 31, 2022; 18 (3) provide an affidavit to the commission containing an accurate description 19 of the specific site used to fish the entry permit; the description must include, if the site is 20 (A) leased under AS 38.05.082, the lease agreement; 21 (B) leased from a municipality, the geographic location and boundaries 22 of the leased tract; and 23 (C) on unleased public land, a site survey and other related information 24 that may be required by the commission; and 25 (4) apply to the commission within 30 days after the effective date of this 26 section. 27 (b) Participation in the buy-back program established under this section is voluntary. 28 Subject to appropriation and to this section, the commission shall buy back the unencumbered 29 entry permit of an individual qualified under this section. A qualified individual may apply 30 electronically on a form provided by the commission to have the individual's entry permit 31 purchased under this section. If an applicant is disqualified from participation in the program
01 under (c) of this section, elects not to participate in the buy-back program, fails to sign the 02 contract of sale within a period specified by the commission, or fails to provide all of the 03 information required under (a) of this section, the commission shall disapprove the 04 individual's application and may not buy back the individual's entry permit under the program. 05 (c) If an applicant has a provisional entry permit provided under sec. 5(b) of this Act, 06 the commission shall set aside the funds to buy back the permit but may not buy back the 07 permit until a court finds, in a final judicial determination, that the permit must be reassigned 08 by the commission to the administrative area established under AS 16.43.200(c), enacted by 09 sec. 3 of this Act. If the court finds, in a final determination, that the commission's 10 determination not to reassign an applicant's permit to the administrative area established by 11 AS 16.43.200(c) was correct, the applicant is not qualified to participate in the buy-back 12 program established by this section. 13 (d) The commission shall cancel an entry permit purchased under this section. The 14 commission may not reissue a permit or issue another permit in the place of a cancelled 15 permit. 16 (e) Subject to appropriation and (c) of this section, the commission shall 17 (1) determine the amount for which to buy back an entry permit of an 18 applicant by dividing the money allotted to the buy-back program established by this section 19 among the qualified applicants after 20 (A) all appeals made under sec. 5 of this Act concerning the 21 assignment of entry permits are resolved; and 22 (B) all timely received applications have been approved or 23 disapproved by the commission under (b) of this section; 24 (2) buy back the entry permit of an applicant for an amount determined under 25 (1) of this subsection, less administrative costs; and 26 (3) provide each applicant whose entry permit is purchased by the commission 27 under this section the option of accepting payment in three annual installments. 28 (f) When the commission purchases an entry permit under (b) of this section from an 29 individual who fishes the individual's entry permit from a site 30 (1) leased under AS 38.05.082, the commission shall provide the Department 31 of Natural Resources with notice of the sale, the seller's identity, and the description of the
01 lease provided under (a)(3)(A) of this section; 02 (2) leased from a municipality or from other unleased public or private land, 03 the commission shall provide the Department of Natural Resources and the Department of 04 Fish and Game with notice of the sale, the seller's identity, and information concerning the 05 leased tract provided by the individual under (a)(3)(B) of this section. 06 (g) Upon notice from the commission under (f) of this section, and notwithstanding 07 AS 38.05.085, the Department of Natural Resources shall, without penalty or charge, 08 terminate all land leases held under AS 38.05.082 used to fish an entry permit purchased by 09 the commission under (b) of this section. 10 (h) When the commission purchases an entry permit from an individual who fished 11 the entry permit from land leased from a municipality, the commission shall notify the 12 Department of Natural Resources and the municipality of the purchase. 13 (i) The acquisition of an entry permit under this section is not subject to AS 36.30 14 (State Procurement Code). 15 (j) In this section, 16 (1) "commission" means the Alaska Commercial Fisheries Entry Commission 17 established under AS 16.43.020; 18 (2) "immediate family member" means 19 (A) the spouse of an individual; 20 (B) another individual cohabiting with an individual in a conjugal 21 relationship that is not a legal marriage; 22 (C) a child, including a stepchild and an adopted child, of an 23 individual; 24 (D) a parent, sibling, grandparent, aunt, or uncle of an individual; and 25 (E) a parent or sibling of an individual's spouse. 26 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 REPORT TO LEGISLATURE. The Alaska Commercial Fisheries Entry Commission 29 shall provide a written report to the legislature on the status of the entry permit buy-back 30 program established under sec. 7 of this Act, including the number of permits purchased. The 31 commission shall deliver the report to the senate secretary and the chief clerk of the house of
01 representatives not later than January 15, 2031, and notify the legislature that the report is 02 available. 03 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 NOTIFICATION TO LIEUTENANT GOVERNOR AND REVISOR OF 06 STATUTES. On the date the Alaska Commercial Fisheries Entry Commission certifies the 07 outcome of the election under sec. 6 of this Act, the chair of the Alaska Commercial Fisheries 08 Entry Commission shall provide written notice to the lieutenant governor and revisor of 09 statutes of the outcome of the election. 10 * Sec. 10. Sections 1, 2, 7, and 8 of this Act are repealed June 30, 2031. 11 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 CONDITIONAL EFFECT. Sections 1, 2, 7, and 8 of this Act take effect only if the 14 chair of the Alaska Commercial Fisheries Entry Commission certifies that the buy-back 15 program established under sec. 7 of this Act was approved under sec. 6 of this Act. 16 * Sec. 12. Section 3 of this Act takes effect January 1, 2025. 17 * Sec. 13. If secs. 1, 2, 7, and 8 of this Act take effect, they take effect the day after the date 18 the chair of the Alaska Commercial Fisheries Entry Commission certifies that the buy-back 19 program established under sec. 7 of this Act was approved under sec. 6 of this Act. 20 * Sec. 14. Except as provided in secs. 12 and 13 of this Act, this Act takes effect July 1, 21 2024.