SB 143: "An Act relating to a vessel-based commercial fisheries limited entry system; relating to management of offshore fisheries; and providing for an effective date."
00SENATE BILL NO. 143 01 "An Act relating to a vessel-based commercial fisheries limited entry system; 02 relating to management of offshore fisheries; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. FINDINGS. The legislature finds that 05 (1) the conventional commercial fisheries limited entry system, which limits 06 the entry of natural persons into a fishery, may not adequately protect the economic health and 07 stability of certain fisheries in this state; 08 (2) a system that limits the number of vessels that may engage in a fishery 09 may be necessary to regulate certain existing, developing, or future fisheries in order to 10 promote the conservation and sustained yield management of Alaska's fishery resource and 11 the economic health and stability of commercial fishing in this state; 12 (3) the existing moratorium on entry of new vessels into the Bering Sea 13 Korean hair crab fishery (AS 16.43.901) expires on June 30, 2000, and the existing vessel 14 moratorium for the weathervane scallop fisheries in state waters (AS 16.43.906) expires on
01 June 30, 2001; 02 (4) the United States Department of Commerce has taken action to restrict 03 access to groundfish, crab, and scallop fisheries in the waters of the United States exclusive 04 economic zone adjacent to the state water of Alaska using a vessel-based limited entry system; 05 (5) a vessel-based limited entry system may be necessary to facilitate state 06 management of fisheries that overlap with federally managed fisheries in the United States 07 exclusive economic zone, especially for fisheries under a federal limited entry system; and 08 (6) a vessel-based limited entry system may be necessary to achieve compatible 09 state and federal management and enforcement of fisheries. 10 * Sec. 2. AS 16.43 is amended by adding new sections to read: 11 Article 6A. Vessel Permit System. 12 Sec. 16.43.450. Vessel permit system. (a) The commission may establish a 13 vessel permit system for a fishery if the commission determines 14 (1) that the regulation of entry into the fishery is necessary to achieve 15 the purposes of this chapter; 16 (2) that a vessel permit system would achieve the purposes of this 17 chapter; and 18 (3) that 19 (A) limiting the number of participants in the fishery under 20 AS 16.43.140 - 16.43.330 would not achieve the purposes of this chapter; or 21 (B) regulating the number of vessels in the fishery would 22 facilitate state management of a fishery that occurs in the United States 23 exclusive economic zone or both the United States exclusive economic zone 24 and state water; in making a determination under this subparagraph, the 25 commission shall consider relevant provisions of the federal fishery 26 management program for the fishery. 27 (b) For a fishery in which the federal government has delegated management 28 authority in the United States exclusive economic zone to the state, the commission 29 may, to the extent consistent with this chapter, adopt regulations to ensure that the 30 vessel permit system complies with applicable federal laws. 31 (c) If the commission establishes a vessel permit system for a fishery that
01 involves more than one fishery resource, type of gear, or administrative area, the 02 commission may limit, as the commission determines appropriate, the fishery resources 03 that may be harvested under the vessel permit, the types of gear that may be used 04 under the vessel permit, or the areas where fishing may occur under the vessel permit. 05 The commission shall adopt criteria, as appropriate, for determining 06 (1) how restrictions on fishery resources, types of gear, and areas fished 07 are established for individual vessel interim-use permits and vessel entry permits; and 08 (2) how eligibility to take a particular fishery resource, to use a 09 particular type of gear, or to fish in a particular area is established. 10 (d) The commission may, after consultation with the Department of Fish and 11 Game, regulate the fishing capacity or effort authorized under a vessel permit if the 12 commission finds that limitations on fishing capacity or effort are necessary to achieve 13 the purposes of this chapter. The commission shall adopt criteria, as appropriate, for 14 measuring the fishing capacity or effort of a vessel and for determining how 15 restrictions on vessel fishing capacity or effort are established for individual vessel 16 interim-use permits and vessel entry permits. The criteria may be based on past 17 participation. 18 (e) The commission may adopt restrictions on fishing capacity and effort, 19 fishery resources taken, types of gear used, and areas fished under a vessel permit at 20 the time of initial issuance of vessel permits or at a later time. 21 (f) The commission shall adopt regulations limiting the number of vessel 22 permits that may be held by a permit holder or group of related permit holders if the 23 commission finds that the concentration of ownership of vessels in a fishery is contrary 24 to the purposes of this chapter. 25 Sec. 16.43.460. Initial issuance of vessel permits. (a) For each fishery in 26 which the commission establishes a vessel permit system, the commission shall 27 establish qualifications for vessel interim-use permits and vessel entry permits, 28 including the qualification date and the eligibility period, and qualifications for 29 receiving transferable and nontransferable vessel entry permits. In adopting 30 qualifications for transferable and nontransferable vessel entry permits, the commission 31 shall consider
01 (1) information provided by the Department of Fish and Game, 02 participants in the fishery, owners of vessels and gear used in the fishery, and other 03 interested parties; 04 (2) the level of past participation and harvest in the fishery, the nature 05 of the fishery, and the need to ensure the manageability of the fishery and conservation 06 of the fishery resource. 07 (b) Pending the issuance of vessel entry permits for a fishery for which the 08 commission has established a vessel permit system, the commission shall issue a vessel 09 interim-use permit to a person or entity for each vessel that the commission finds is 10 potentially eligible to receive a vessel entry permit. A vessel interim-use permit is 11 renewable from year to year; however, a vessel interim-use permit expires at the end 12 of the period for which the permit was issued and may not be renewed after a final 13 determination by the commission that the vessel is or is not eligible for a vessel entry 14 permit. 15 (c) The commission shall adopt regulations regarding the substitution of 16 another vessel by the applicant for a vessel permit if the vessel used to establish 17 eligibility for a vessel permit is lost before the initial issuance of the permit for the 18 vessel. 19 Sec. 16.43.470. Holders of vessel permits. (a) The commission may issue 20 a vessel interim-use permit or vessel entry permit to a person or entity who has a legal 21 ownership interest in the vessel identified on the permit. 22 (b) The commission shall adopt regulations for determining which person or 23 entity shall receive a vessel permit for a vessel if the vessel was owned by more than 24 one legal owner during the period established by the commission to determine 25 eligibility for the vessel permit. 26 (c) If the commission establishes a vessel permit system under AS 16.43.450 - 27 16.43.530 for a fishery that is subject to a moratorium on entry of new vessels under 28 AS 16.43.901 or 16.43.906, the commission may incorporate some or all of the vessel 29 eligibility criteria established for the moratorium into the eligibility criteria for vessel 30 permits issued under the vessel permit system. 31 (d) The permit holder shall post a vessel permit in a prominent location on the
01 vessel identified on the permit so that the permit is readily available for inspection 02 while the vessel is operating in the fishery for which the permit is issued. 03 Sec. 16.43.480. Optimum number range of vessel permits. (a) If, after the 04 initial issuance of vessel entry permits for a fishery, the commission determines that 05 a long-term biological or economic change has occurred in the fishery, the 06 commission, in consultation with the Department of Fish and Game, shall establish the 07 optimum number range of vessel entry permits for the fishery. 08 (b) In determining the optimum number range of vessel entry permits, the 09 commission shall seek to facilitate sound management of the fishery and to promote 10 (1) the economic health and stability of the fishery; 11 (2) broad access to the fishery; 12 (3) conservation of the resource; and 13 (4) quality seafood products and to discourage waste of harvested fish. 14 (c) The commission may increase or decrease the optimum number range of 15 vessel entry permits for a fishery if the commission finds that an established long-term 16 change in the biological or economic condition of the fishery has occurred and that the 17 number of vessel entry permits that are necessary to achieve the goals set out in (b) 18 of this section has substantially changed. 19 (d) If the optimum number range of vessel entry permits is less than the 20 number of outstanding vessel permits for the fishery, the commission may adopt 21 regulations to allow the voluntary consolidation of vessel entry permits by permit 22 holders. The commission may investigate procedures to permanently reduce the 23 number of vessel permits issued for a fishery to within the optimum number range. 24 (e) If the optimum number range of vessel entry permits is greater than the 25 number of permits authorized for the fishery, the commission shall issue additional 26 vessel entry permits for vessels presently able to actively engage in the fishery until 27 the number of vessel entry permits is consistent with the optimum number range for 28 the fishery. The commission shall obtain fair market value for new vessel entry 29 permits issued under this subsection. The commission shall determine whether the 30 additional vessel entry permits issued under this subsection are transferable or 31 nontransferable.
01 Sec. 16.43.490. Transfer and expiration of vessel entry permits. (a) The 02 commission may adopt regulations authorizing the transfer of a transferable vessel 03 entry permit to an eligible transferee. The transferee of a vessel permit must have a 04 legal ownership interest in the vessel identified on the vessel permit. 05 (b) The commission may adopt regulations authorizing the simultaneous 06 transfer of a transferable vessel entry permit to an eligible transferee and the 07 substitution of another vessel for the vessel identified on the permit under 08 AS 16.43.500. 09 (c) The commission may prohibit the involuntary transfer of a vessel permit. 10 (d) The commission shall adopt regulations relating to the expiration of 11 nontransferable vessel entry permits. 12 Sec. 16.43.500. Substitution of vessels. (a) The commission may adopt 13 regulations providing for the permanent or temporary substitution, after the initial 14 issuance of vessel permits, of another vessel for the vessel that is identified on a vessel 15 permit. A permit holder must have a legal ownership interest in the vessel that is 16 permanently substituted for the vessel identified on the permit. Upon the approval of 17 a permanent substitution of a vessel, the commission shall issue a new vessel permit 18 for the substituted vessel. The commission may require that the permit holder have 19 an ownership interest in a temporarily substituted vessel. 20 (b) A substituted vessel and the operation of the substituted vessel are subject 21 to all terms and conditions attached to the vessel permit at the time that the vessel 22 permit is transferred from the original vessel to the substituted vessel. 23 Sec. 16.43.510. Renewal of vessel permits. (a) A vessel entry permit or 24 vessel interim-use permit is issued for one year and must be renewed annually. 25 (b) A vessel entry permit or vessel interim-use permit may not be renewed 26 until the fees for each preceding year during which the permit has not been renewed 27 are paid. 28 (c) Failure to renew a vessel entry permit or a vessel interim-use permit for 29 two consecutive years from the year of last renewal results in a forfeiture of the permit 30 unless the forfeiture is waived by the commission for good cause. If an administrative 31 closure of a fishery occurs for an entire season, the commission may not count the
01 season toward the two-year period. 02 Sec. 16.43.520. Vessel permit fees. (a) The commission shall establish fees 03 for the issuance and annual renewal of vessel entry permits and vessel interim-use 04 permits. Annual fees established under this subsection may not exceed $2,500 and 05 shall reasonably reflect the rate of economic return for the fishery. 06 (b) The commission shall waive the payment of annual vessel permit fees for 07 a fishery in which there was an administrative closure for the entire season. 08 (c) Subject to AS 37.10.050(a), the commission may establish fees for 09 processing applications for vessel permits, for transfer of vessel permits, and for 10 permanent and temporary substitution of vessels. 11 (d) The commission may charge interest at a rate not to exceed the legal rate 12 of interest established in AS 45.45.010(a) on fees established under the section that are 13 more than 60 days overdue. 14 Sec. 16.43.530. General vessel permit provisions. (a) A person may not 15 operate a vessel or use a vessel to take fish in a commercial fishery for which a vessel 16 interim-use permit or vessel entry permit is required unless the appropriate vessel 17 permit has been issued for the vessel and is posted in a prominent location on the 18 vessel. 19 (b) The operator of a vessel for which a vessel permit has been issued shall 20 comply with the terms of the vessel permit while the vessel is operated in the fishery 21 for which the permit is issued. 22 (c) A vessel interim-use permit and a vessel entry permit constitute a use 23 privilege that may be modified or revoked by order of the commission or by law 24 without compensation. 25 (d) AS 16.43.450 - 16.43.530 do not alter the requirement for an interim-use 26 permit or entry permit under AS 16.43.140 or a vessel license under AS 16.05.490 - 27 16.05.530. 28 (e) Nothing in AS 16.43.450 - 16.43.530 limits the powers of the Board of 29 Fisheries or the Department of Fish and Game. 30 (f) Notwithstanding AS 16.05.815 and AS 16.43.975, the commission may 31 release to the owner of a vessel information on the vessel's history of harvests in a
01 fishery that is necessary to apply for a vessel permit under AS 16.43.450 - 16.43.530. 02 * Sec. 3. AS 16.05.735 is amended to read: 03 Sec. 16.05.735. Management of offshore fisheries. The state may assume 04 management of a fishery [THE SCALLOP FISHERIES] in offshore water adjacent to 05 the state in the absence of a federal fishery management plan for the fishery 06 [SCALLOPS] or in the event that a federal fishery management plan for the fishery 07 [SCALLOPS] delegates authority to the state to manage the fishery [SCALLOP 08 FISHERIES] in the United States exclusive economic zone. 09 * Sec. 4. AS 16.43.010(a) is amended to read: 10 (a) It is the purpose of this chapter to promote the conservation and the 11 sustained yield management of Alaska's fishery resource and the economic health and 12 stability of commercial fishing in Alaska by regulating and controlling entry of 13 participants and vessels into the commercial fisheries in the public interest and 14 without unjust discrimination. 15 * Sec. 5. AS 16.43.100(a) is amended to read: 16 (a) To accomplish the purposes set out in AS 16.43.010, the commission shall 17 (1) regulate entry into the commercial fisheries for all fishery resources 18 in the state; 19 (2) establish priorities for the application of the provisions of this 20 chapter to the various commercial fisheries of the state; 21 (3) establish administrative areas suitable for regulating and controlling 22 entry into the commercial fisheries; 23 (4) establish, for all types of gear, the maximum number of entry 24 permits for each administrative area; 25 (5) designate, when necessary to accomplish the purposes of this 26 chapter, particular species for which separate interim-use permits or entry permits will 27 be issued; 28 (6) establish qualifications for the issuance of entry permits; 29 (7) issue entry permits to qualified applicants; 30 (8) issue interim-use permits as provided in AS 16.43.210, 16.43.220, 31 and 16.43.225;
01 (9) establish, for all types of gear, the optimum number of entry 02 permits for each administrative area; 03 (10) administer the buy-back program provided for in AS 16.43.310 04 and 16.43.320 to reduce the number of outstanding entry permits to the optimum 05 number of entry permits; 06 (11) provide for the transfer and reissuance of entry permits to qualified 07 transferees; 08 (12) provide for the transfer and reissuance of entry permits for 09 alternative types of legal gear, in a manner consistent with the purposes of this chapter; 10 (13) administer the collection of the annual fees provided for in 11 AS 16.43.160; 12 (14) administer the issuance of commercial fishing vessel licenses under 13 AS 16.05.490; 14 (15) issue educational entry permits to applicants who qualify under the 15 provisions of AS 16.43.340 - 16.43.390; 16 (16) establish reasonable user fees for services; 17 (17) issue landing permits under AS 16.05.675 and regulations adopted 18 under that section; 19 (18) establish and collect annual fees for the issuance of landing 20 permits that reasonably reflect the costs incurred in the administration and enforcement 21 of provisions of law related to landing permits; [AND] 22 (19) establish a moratorium on entry into commercial fisheries as 23 provided in AS 16.43.225 ; and 24 (20) administer the vessel permit system authorized under 25 AS 16.43.450 - 16.43.530 . 26 * Sec. 6. AS 16.43.240(b) is amended to read: 27 (b) When the commission finds that a fishery, not designated as a distressed 28 fishery under AS 16.43.230 or not subject to a moratorium under AS 16.43.225, has 29 reached levels of participation that require the limitation of entry under AS 16.43.140 30 - 16.43.330 in order to achieve the purposes of this chapter, the commission shall 31 establish the maximum number of entry permits for that fishery.
01 * Sec. 7. AS 16.43.240(c) is amended to read: 02 (c) When the commission finds that a fishery subject to a moratorium under 03 AS 16.43.225 has reached levels of participation that require the limitation of entry 04 under AS 16.43.140 - 16.43.330 in order to achieve the purposes of this chapter, the 05 commission shall establish the maximum number of entry permits for that fishery. 06 * Sec. 8. AS 16.43.960(a) is amended to read: 07 (a) The commission may revoke, suspend, or transfer all entry or interim-use 08 permits , vessel entry permits, or vessel interim-use permits held by a person or 09 entity who knowingly provides or assists in providing false information, or fails to 10 correct false information provided to the commission for the purpose of obtaining a 11 benefit for self or another, including the issuance, renewal, duplication, or transfer of 12 an entry or interim-use permit , [OR] vessel license , vessel entry permit, or vessel 13 interim-use permit . The commission may suspend , as appropriate, that person's or 14 entity's eligibility to hold an entry or interim-use permit , vessel entry permit, or 15 vessel interim-use permit for a period not to exceed three years, and may impose an 16 administrative fine of not more than $5,000 on the person or [. THE COMMISSION 17 MAY ALSO IMPOSE AN ADMINISTRATIVE FINE OF NOT MORE THAN $5,000 18 ON AN] entity whose officers, employees, representatives, or agents knowingly 19 provide or assist in providing false information, or fail to correct false information 20 provided, to the commission for the purpose of obtaining a benefit. 21 * Sec. 9. AS 16.43.970(a) is amended to read: 22 (a) A person who violates a provision of this chapter or a regulation adopted 23 under this chapter or an entity that violates a provision of AS 16.43.450 - 16.43.530 24 or a regulation adopted under AS 16.43.450 - 16.43.530 is, upon conviction, guilty 25 of a class B misdemeanor and is punishable by a fine of not more than $5,000 for a 26 first conviction, and a fine of not more than $10,000 for a second or third conviction. 27 Upon a first or second conviction under this subsection, the court may in its discretion 28 also order the commission to suspend the commercial fishing privileges of the person 29 or entity for a period of not more than three years and to revoke one or more or all 30 commercial fishing permits held by the person or entity . Upon a third or subsequent 31 conviction under this subsection, the person or entity is also subject to a loss of
01 commercial fishing privileges as provided under (i) of this section. This subsection 02 does not apply to violations of AS 16.43.140(a). 03 * Sec. 10. AS 16.43.970(b) is amended to read: 04 (b) A person or entity who knowingly makes a false statement to the 05 commission for the purpose of obtaining a benefit, including the issuance, renewal, 06 duplication, or transfer of an entry or interim-use permit , [OR] vessel license , vessel 07 interim-use permit, or vessel entry permit, or a person who assists another by 08 knowingly making a false statement to the commission for the purpose of obtaining 09 a benefit for another, is guilty of the crime of unsworn falsification as set out in 10 AS 11.56.210. Upon conviction, the person or entity is also subject to suspension of 11 commercial fishing privileges and revocation of commercial fishing permits under (i) 12 of this section. 13 * Sec. 11. AS 16.43.970(d) is amended to read: 14 (d) If a permit holder is charged by the state with violating a provision of this 15 chapter or a regulation adopted under this chapter, the holder may not transfer [, 16 UNDER AS 16.43.170,] any interim-use or entry permit under AS 16.43.170 or any 17 transferable vessel entry permit under AS 16.43.450 - 16.43.530 [,] until after the 18 final adjudication or dismissal of the charges. 19 * Sec. 12. AS 16.43.970(e) is amended to read: 20 (e) Notwithstanding any other provision of this section, an interim-use or entry 21 permit or a transferable vessel entry permit may not be transferred while under 22 suspension, without the consent of the commission. 23 * Sec. 13. AS 16.43.970(f) is amended to read: 24 (f) A commercial fishing entry permit revoked under this section that is 25 pledged as security for a loan under AS 16.10.333, or 16.10.338, or AS 44.81.231 shall 26 be reassigned as provided in AS 16.10.337 or AS 44.81.250. 27 * Sec. 14. AS 16.43.970(i) is amended to read: 28 (i) Upon the conviction of a person or entity for an offense described under 29 (a), (b), or (g) of this section, the court shall immediately notify the commission of the 30 conviction. The notice provided by the court shall be accompanied by an order 31 suspending commercial fishing privileges and revoking commercial fishing permits
01 under (a) of this section, as appropriate. The commission shall, upon receipt of 02 (1) an order from the court under (a) of this section, suspend the 03 commercial fishing privileges of a person or entity for the period set by the court and 04 revoke commercial fishing permits held by the person or entity as directed by the 05 court; 06 (2) a notice from the court that a person or entity has been convicted 07 of a third or subsequent violation of (a) of this section, suspend all commercial fishing 08 privileges of the person or entity for a period of three years from the date of 09 conviction and revoke all commercial fishing permits held by the person or entity ; 10 (3) a notice from the court that a person or entity has been convicted 11 of a violation described under (b) of this section, suspend all commercial fishing 12 privileges of the person or entity for a period of three years from the date of 13 conviction and revoke all commercial fishing permits held by the person or entity ; 14 (4) a notice from the court that a person has been convicted of a 15 violation described under (g)(1) of this section, suspend all commercial fishing 16 privileges of the person for a period of one year from the date of conviction; 17 (5) a notice from the court that a person has been convicted of a 18 violation described under (g)(2) of this section, suspend all commercial fishing 19 privileges of the person for a period of two years from the date of conviction; 20 (6) a notice from the court that a person has been convicted of a 21 violation described under (g)(3) of this section, suspend all commercial fishing 22 privileges of the person for a period of five years from the date of conviction. 23 * Sec. 15. AS 16.43.970(j)(1) is amended to read: 24 (1) "commercial fishing permit" means an entry permit , [OR] an 25 interim-use permit , a vessel entry permit, or a vessel interim-use permit issued 26 under this chapter; 27 * Sec. 16. AS 16.43.980(a) is amended to read: 28 (a) The commission shall prepare an annual report and notify the legislature 29 that it is available. The report must [SHALL] include but not be limited to the 30 following: 31 (1) a progress report on the reduction of entry permits to optimum
01 levels; 02 (2) recommendations for additional legislation relating to the regulation 03 of entry of participants and vessels into Alaska commercial fisheries. 04 * Sec. 17. AS 16.43.990 is amended by adding a new paragraph to read: 05 (10) "entity" means a corporation, company, partnership, firm, 06 association, organization, joint venture, business trust, society, or other legal entity 07 other than a natural person. 08 * Sec. 18. REGULATIONS. The Alaska Commercial Fisheries Entry Commission may 09 adopt regulations under AS 44.62 (Administrative Procedure Act) that the commission finds 10 necessary to implement this Act. The regulations may not take effect before July 1, 1999. 11 * Sec. 19. Section 18 of this Act takes effect immediately under AS 01.10.070(c). 12 * Sec. 20. Except as provided in sec. 19 of this Act, this Act takes effect July 1, 1999.