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CSHB 206(RLS) am S: "An Act relating to a vessel-based commercial fisheries limited entry system for the Bering Sea Korean hair crab fishery and for weathervane scallop fisheries, to management of offshore fisheries, and to the definition of 'person' for purposes of the commercial fisheries entry program; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 206(RLS) am S 01 "An Act relating to a vessel-based commercial fisheries limited entry system for the 02 Bering Sea Korean hair crab fishery and for weathervane scallop fisheries, to 03 management of offshore fisheries, and to the definition of 'person' for purposes of the 04 commercial fisheries entry program; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 07 to read: 08 FINDINGS. The legislature finds that 09 (1) the conventional commercial fisheries limited entry system, which limits 10 the entry of natural persons into a fishery, may not adequately protect the economic health 11 and stability of certain fisheries in this state; 12 (2) a system that limits the number of vessels that may engage in a fishery 13 may be necessary to regulate certain fisheries in order to promote the conservation and 14 sustained yield management of Alaska's fishery resource and the economic health and

01 stability of commercial fishing in this state; 02 (3) the existing moratorium on entry of new vessels into the Bering Sea 03 Korean hair crab fishery (AS 16.43.901) expires on June 30, 2003, and the existing vessel 04 moratorium for the weathervane scallop fisheries in state waters (AS 16.43.906) expires on 05 June 30, 2004; 06 (4) a vessel-based limited entry system may be necessary to facilitate state 07 management of fisheries that overlap with federally managed fisheries in the United States 08 exclusive economic zone; and 09 (5) a vessel-based limited entry system may be necessary to achieve 10 compatible state and federal management and enforcement of fisheries. 11 * Sec. 2. AS 16.43 is amended by adding new sections to read: 12 Article 6A. Vessel Permit System for Bering Sea Korean Hair Crab Fishery 13 and Weathervane Scallop Fisheries. 14 Sec. 16.43.450. Vessel permit system. (a) The commission may establish a 15 vessel permit system under AS 16.43.450 - 16.43.520 for the Bering Sea Korean hair 16 crab fishery or a weathervane scallop fishery if the commission determines that 17 (1) the regulation of entry into the fishery is necessary to achieve the 18 purposes of this chapter; 19 (2) a vessel permit system would achieve the purposes of this chapter; 20 and 21 (3) either 22 (A) limiting the number of participants in the fishery under 23 AS 16.43.140 - 16.43.330 would not achieve the purposes of this chapter; or 24 (B) regulating the number of vessels in the fishery would 25 enable the state to gain or retain management of the fishery. 26 (b) If the federal government has delegated management authority in the 27 United States exclusive economic zone to the state for the Bering Sea Korean hair crab 28 fishery or a weathervane scallop fishery, the commission may, to the extent consistent 29 with this chapter, adopt regulations to ensure that the vessel permit system is 30 consistent 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 03 resources that may be harvested under the vessel permit, the types of gear that may be 04 used under the vessel permit, or the areas where fishing may occur under the vessel 05 permit. The commission shall adopt criteria, as appropriate, for determining 06 (1) how restrictions on fishery resources, types of gear, and areas 07 fished are established for individual vessel interim-use permits and vessel entry 08 permits; and 09 (2) how eligibility to take a particular fishery resource, to use a 10 particular type of gear, or to fish in a particular area is established. 11 (d) The commission may, after consultation with the Department of Fish and 12 Game, regulate the fishing capacity or effort authorized under a vessel interim-use 13 permit or a vessel entry permit if the commission finds that limitations on fishing 14 capacity or effort are necessary to achieve the purposes of this chapter. The 15 commission shall adopt criteria, as appropriate, for measuring the fishing capacity or 16 effort of a vessel and for determining how restrictions on vessel fishing capacity or 17 effort are established for individual vessel interim-use permits and vessel entry 18 permits. The criteria may be based on past participation. 19 (e) The commission shall adopt regulations limiting the number of vessel 20 permits that may be held by a permit holder or group of related permit holders if the 21 commission finds that limiting the number of vessel permits that may be held by a 22 permit holder or group of related permit holders is necessary to prevent the excessive 23 concentration of ownership of vessel permits in the fishery. 24 Sec. 16.43.460. Initial issuance of vessel permits. (a) For each fishery in 25 which the commission establishes a vessel permit system under AS 16.43.450, the 26 commission shall establish qualifications for vessel interim-use permits and vessel 27 entry permits. The qualifications may include a qualification date, eligibility period, 28 recent and past participation requirements, minimum requirements for the nature and 29 degree of ownership interest that a permit holder must have in a vessel in order to 30 receive a vessel permit for the vessel, and criteria for receiving transferable and 31 nontransferable vessel entry permits. In adopting qualifications for transferable and

01 nontransferable vessel entry permits, the commission shall consider 02 (1) information provided by the Department of Fish and Game, 03 participants in the fishery, owners of vessels and gear used in the fishery, and other 04 interested parties; 05 (2) the level of recent and past participation and harvest in the fishery, 06 the nature of the fishery, and the need to ensure the manageability of the fishery and 07 conservation of the fishery resource. 08 (b) If the commission establishes a vessel permit system under AS 16.43.450 09 for a fishery that is, or recently was, subject to a moratorium on entry of new vessels 10 under AS 16.43.901 or 16.43.906, the commission shall incorporate some or all of the 11 vessel eligibility criteria established for the moratorium into the eligibility criteria for 12 vessel permits issued under the vessel permit system. 13 (c) Pending the issuance of vessel entry permits for a fishery for which the 14 commission has established a vessel permit system under AS 16.43.450, the 15 commission shall issue a vessel interim-use permit to the owner of each vessel that the 16 commission finds is potentially eligible to receive a vessel entry permit. A vessel 17 interim-use permit is renewable from year to year; however, a vessel interim-use 18 permit expires at the end of the period for which the permit was issued and may not be 19 renewed after a final determination by the commission that the vessel is or is not 20 eligible for a vessel entry permit. 21 (d) The commission shall issue vessel entry permits for a fishery, subject to 22 conditions established by the commission under AS 16.43.450 - 16.43.520, to the 23 owner of each vessel that the commission finds is eligible to receive a vessel entry 24 permit for that fishery. 25 (e) The commission shall adopt regulations regarding 26 (1) the determination of which person or entity is eligible to receive a 27 vessel interim-use permit or a vessel entry permit for a vessel in the event of 28 competing claims to ownership of the vessel; 29 (2) the substitution of another vessel by the applicant for a vessel 30 interim-use permit or a vessel entry permit if the vessel or vessels used to establish 31 eligibility for a vessel entry permit are lost, or are retired from the fishery by the vessel

01 owner, before the initial issuance of a vessel entry permit for the vessel. 02 Sec. 16.43.470. Optimum number range of vessel permits. (a) If, after the 03 initial issuance of vessel entry permits for a fishery, the commission determines that a 04 long-term biological or economic change has occurred in the fishery, the commission, 05 in consultation with the Department of Fish and Game, shall establish the optimum 06 number range of vessel entry permits for the fishery. 07 (b) In determining the optimum number range of vessel entry permits, the 08 commission shall seek to 09 (1) facilitate sound management of the fishery; 10 (2) promote 11 (A) the economic health and stability of the fishery; 12 (B) broad access to the fishery; 13 (C) conservation of the fish resources taken in the fishery; 14 (D) quality seafood products; and 15 (3) discourage waste of harvested fish. 16 (c) The commission may increase or decrease the optimum number range of 17 vessel entry permits for a fishery if the commission finds that an established long-term 18 change in the biological or economic condition of the fishery has occurred and that the 19 number of vessel entry permits that are necessary to achieve the goals set out in (b) of 20 this section has substantially changed. 21 (d) If the optimum number range of vessel entry permits is less than the 22 number of outstanding vessel permits for the fishery, the commission may adopt 23 regulations to allow the voluntary consolidation of vessel entry permits by permit 24 holders, including entities. The commission may investigate procedures to 25 permanently reduce the number of vessel permits issued for a fishery to within the 26 optimum number range. 27 (e) If the optimum number range of vessel entry permits is greater than the 28 number of permits authorized for the fishery, the commission shall issue additional 29 vessel entry permits until the number of vessel entry permits is consistent with the 30 optimum number range for the fishery. The commission shall obtain fair market value 31 for new vessel entry permits issued under this subsection. The commission shall

01 determine whether the additional vessel entry permits issued under this subsection are 02 transferable or nontransferable. 03 Sec. 16.43.480. Transfer and expiration of vessel entry permits. (a) The 04 commission may adopt regulations authorizing the transfer of a transferable vessel 05 entry permit to an eligible transferee and establishing the terms and conditions under 06 which vessel entry permits may be transferred. The commission may require that the 07 transferee of a vessel entry permit must have a legal ownership interest in the vessel 08 identified on the vessel entry permit. The commission may establish by regulation 09 minimum requirements for the nature and degree of ownership interest that the 10 transferee must have in the vessel. 11 (b) The commission may adopt regulations authorizing the simultaneous 12 transfer of a transferable vessel entry permit to an eligible transferee and the 13 substitution of another vessel for the vessel identified on the permit under 14 AS 16.43.490. 15 (c) The commission shall adopt regulations relating to the expiration of 16 nontransferable vessel entry permits. 17 Sec. 16.43.490. Substitution of vessels. (a) The commission shall adopt 18 regulations providing for the permanent or temporary substitution, after the initial 19 issuance of vessel entry permits, of another vessel for the vessel that is identified on a 20 vessel entry permit. The commission may specify by regulation the nature and degree 21 of legal ownership interest that a permit holder must have in the vessel that is 22 permanently or temporarily substituted for the vessel identified on the permit. Upon 23 the approval of a permanent substitution of a vessel, the commission shall issue a new 24 vessel entry permit for the substituted vessel. 25 (b) A substituted vessel and the operation of the substituted vessel are subject 26 to all terms and conditions attached to the vessel entry permit at the time that the 27 vessel permit is transferred from the original vessel to the substituted vessel. 28 Sec. 16.43.500. Renewal of vessel permits. (a) A vessel interim-use permit 29 or vessel entry permit is issued for one year and must be renewed annually. 30 (b) A vessel interim-use permit or vessel entry permit may not be renewed 31 until the fees for each preceding year during which the permit has not been renewed

01 are paid. 02 (c) Failure to renew a vessel entry permit for two consecutive years from the 03 year of last renewal results in a forfeiture of the permit unless the forfeiture is waived 04 by the commission for good cause. If an administrative closure of a fishery occurs for 05 an entire season, the commission may not count the season toward the two-year 06 period. 07 Sec. 16.43.510. Vessel permit fees. (a) The commission shall establish fees 08 for the issuance and annual renewal of vessel interim-use permits and vessel entry 09 permits. Annual fees established under this subsection may not exceed $2,500 and 10 shall reasonably reflect the rate of economic return for the fishery. 11 (b) The commission shall waive the payment of the annual fees for a vessel 12 interim-use permit or a vessel entry permit for a fishery in which there was an 13 administrative closure for the entire season. 14 (c) Subject to AS 37.10.050(a), the commission may establish fees for 15 processing applications for vessel interim-use permits and vessel entry permits, for 16 transfer of vessel entry permits, and for permanent and temporary substitution of 17 vessels. 18 (d) The commission may charge interest at a rate not to exceed the legal rate 19 of interest established in AS 45.45.010(a) on fees established under the section that are 20 more than 60 days overdue. 21 Sec. 16.43.520. General vessel permit provisions. (a) A person or entity 22 may not operate a vessel or use a vessel to take fish in a commercial fishery for which 23 a vessel interim-use permit or vessel entry permit is required unless the appropriate 24 vessel permit has been issued for the vessel and is posted in a prominent location on 25 the vessel. 26 (b) A person or entity may not hold more than one vessel entry permit for a 27 fishery unless 28 (1) the number of vessel entry permits held by the person or entity is 29 consistent with regulations of the commission regarding concentration of ownership of 30 vessel permits in the fishery; and 31 (2) either

01 (A) the person or entity qualified for each vessel entry permit at 02 the time of the initial issuance of vessel entry permits for the fishery; or 03 (B) the vessel entry permits are issued for a vessel for which 04 the person or entity already holds another vessel entry permit for that fishery. 05 (c) The operator of a vessel for which a vessel interim-use permit or vessel 06 entry permit has been issued shall comply with the terms of the vessel permit while the 07 vessel is operated in the fishery for which the permit is issued. 08 (d) A vessel interim-use permit and a vessel entry permit constitute a use 09 privilege that may be modified or revoked by order of the commission or by law 10 without compensation. 11 (e) A vessel entry permit may not be 12 (1) pledged, mortgaged, leased, or encumbered in any way; 13 (2) transferred with any retained right of repossession or foreclosure, 14 or on any condition requiring a subsequent transfer; or 15 (3) attached, distrained, or sold on execution of judgment or under any 16 other process or order of any court. 17 (f) Unless the person who holds a vessel entry permit has expressed a contrary 18 intent in a will that is probated, the commission shall, upon the death of the person, 19 transfer the vessel entry permit by right of survivorship directly to the person's 20 surviving spouse or, if no spouse survives, to another person designated by the vessel 21 permit holder on a form provided by the commission. If no spouse survives and if the 22 person designated on the form, if any, does not survive, the permit passes as part of the 23 vessel permit holder's estate. A designation under this subsection must be 24 acknowledged before a person authorized to administer an oath under AS 09.63.010 or 25 must be witnessed by two persons who are qualified under AS 13.12.505 to witness 26 the will of the vessel permit holder. A vessel entry permit is exempt from the claims of 27 creditors of the estate. 28 (g) AS 16.43.450 - 16.43.520 do not alter the requirement for an interim-use 29 permit or entry permit under AS 16.43.140 or a vessel license under AS 16.05.490 - 30 16.05.520. 31 (h) Nothing in AS 16.43.450 - 16.43.520 limits the powers of the Board of

01 Fisheries or the Department of Fish and Game. 02 (i) Notwithstanding AS 16.05.815 and AS 16.43.975, the commission may 03 release to the owner of a vessel information on the vessel's history of harvests in a 04 fishery that is necessary to apply for a vessel interim-use permit or vessel entry permit 05 under AS 16.43.450 - 16.43.520. 06 * Sec. 3. AS 16.05.735 is amended to read: 07 Sec. 16.05.735. Management of offshore fisheries. The state may assume 08 management of a fishery [THE SCALLOP FISHERIES] in offshore water adjacent to 09 the state in the absence of a federal fishery management plan for the fishery 10 [SCALLOPS] or in the event that a federal fishery management plan for the fishery 11 [SCALLOPS] delegates authority to the state to manage the fishery [SCALLOP 12 FISHERIES] in the United States exclusive economic zone. 13 * Sec. 4. AS 16.43.010(a) is amended to read: 14 (a) It is the purpose of this chapter to promote the conservation and the 15 sustained yield management of Alaska's fishery resource and the economic health and 16 stability of commercial fishing in Alaska by regulating and controlling entry of 17 participants and vessels into the commercial fisheries in the public interest and 18 without unjust discrimination. 19 * Sec. 5. AS 16.43.010(a) is amended to read: 20 (a) It is the purpose of this chapter to promote the conservation and the 21 sustained yield management of Alaska's fishery resource and the economic health and 22 stability of commercial fishing in Alaska by regulating and controlling entry of 23 participants [AND VESSELS] into the commercial fisheries in the public interest and 24 without unjust discrimination. 25 * Sec. 6. AS 16.43.100(a) is amended to read: 26 (a) To accomplish the purposes set out in AS 16.43.010, the commission shall 27 (1) regulate entry into the commercial fisheries for all fishery resources 28 in the state; 29 (2) establish priorities for the application of the provisions of this 30 chapter to the various commercial fisheries of the state; 31 (3) establish administrative areas suitable for regulating and

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

01 enforcement of provisions of law related to landing permits; [AND] 02 (19) establish a moratorium on entry into commercial fisheries as 03 provided in AS 16.43.225; and 04 (20) administer, when necessary to accomplish the purposes of this 05 chapter, a vessel permit system under AS 16.43.450 - 16.43.520. 06 * Sec. 7. AS 16.43.240(b) is amended to read: 07 (b) When the commission finds that a fishery, not designated as a distressed 08 fishery under AS 16.43.230 or not subject to a moratorium under AS 16.43.225, has 09 reached levels of participation that require the limitation of entry under AS 16.43.140 10 - 16.43.330 in order to achieve the purposes of this chapter, the commission shall 11 establish the maximum number of entry permits for that fishery. 12 * Sec. 8. AS 16.43.240(c) is amended to read: 13 (c) When the commission finds that a fishery subject to a moratorium under 14 AS 16.43.225 has reached levels of participation that require the limitation of entry 15 under AS 16.43.140 - 16.43.330 in order to achieve the purposes of this chapter, the 16 commission shall establish the maximum number of entry permits for that fishery. 17 * Sec. 9. AS 16.43.960(a) is amended to read: 18 (a) The commission may revoke, suspend, or transfer all entry or interim-use 19 permits, vessel entry permits, or vessel interim-use permits held by a person or 20 entity who knowingly provides or assists in providing false information, or fails to 21 correct false information provided to the commission for the purpose of obtaining a 22 benefit for self or another, including the issuance, renewal, duplication, or transfer of 23 an entry or interim-use permit, [OR] vessel license, vessel entry permit, or vessel 24 interim-use permit. The commission may suspend, as appropriate, that person's or 25 entity's eligibility to hold an entry or interim-use permit, vessel entry permit, or 26 vessel interim-use permit for a period not to exceed three years, and may impose an 27 administrative fine of not more than $5,000 on the person or [. THE COMMISSION 28 MAY ALSO IMPOSE AN ADMINISTRATIVE FINE OF NOT MORE THAN 29 $5,000 ON AN] entity whose officers, employees, representatives, or agents 30 knowingly provide or assist in providing false information, or fail to correct false 31 information provided, to the commission for the purpose of obtaining a benefit.

01 * Sec. 10. AS 16.43.960(a) is amended to read: 02 (a) The commission may revoke, suspend, or transfer all entry or interim-use 03 permits [, VESSEL ENTRY PERMITS, OR VESSEL INTERIM-USE PERMITS] 04 held by a person [OR ENTITY] who knowingly provides or assists in providing false 05 information, or fails to correct false information provided to the commission for the 06 purpose of obtaining a benefit for self or another, including the issuance, renewal, 07 duplication, or transfer of an entry or interim-use permit or [,] vessel license [, 08 VESSEL ENTRY PERMIT, OR VESSEL INTERIM-USE PERMIT]. The 09 commission may suspend, as appropriate, that person's [OR ENTITY'S] eligibility to 10 hold an entry or interim-use permit [, VESSEL ENTRY PERMIT, OR VESSEL 11 INTERIM-USE PERMIT] for a period not to exceed three years, and may impose an 12 administrative fine of not more than $5,000 on the person. The commission may also 13 impose an administrative fine of not more than $5,000 on an [OR] entity whose 14 officers, employees, representatives, or agents knowingly provide or assist in 15 providing false information, or fail to correct false information provided, to the 16 commission for the purpose of obtaining a benefit. 17 * Sec. 11. AS 16.43.970(a) is amended to read: 18 (a) A person who violates a provision of this chapter or a regulation adopted 19 under this chapter or an entity that violates a provision of AS 16.43.450 - 16.43.520 20 or a regulation adopted under AS 16.43.450 - 16.43.520 is, upon conviction, guilty 21 of a class B misdemeanor and is punishable by a fine of not more than $5,000 for a 22 first conviction, and a fine of not more than $10,000 for a second or third conviction. 23 Upon a first or second conviction under this subsection, the court may in its discretion 24 also order the commission to suspend the commercial fishing privileges of the person 25 or entity for a period of not more than three years and to revoke one or more or all 26 commercial fishing permits held by the person or entity. Upon a third or subsequent 27 conviction under this subsection, the person or entity is also subject to a loss of 28 commercial fishing privileges as provided under (i) of this section. This subsection 29 does not apply to violations of AS 16.43.140(a). 30 * Sec. 12. AS 16.43.970(a) is amended to read: 31 (a) A person who violates a provision of this chapter or a regulation adopted

01 under this chapter [OR AN ENTITY THAT VIOLATES A PROVISION OF 02 AS 16.43.450 - 16.43.520 OR A REGULATION ADOPTED UNDER AS 16.43.450 - 03 16.43.520] is, upon conviction, guilty of a class B misdemeanor and is punishable by a 04 fine of not more than $5,000 for a first conviction, and a fine of not more than $10,000 05 for a second or third conviction. Upon a first or second conviction under this 06 subsection, the court may in its discretion also order the commission to suspend the 07 commercial fishing privileges of the person [OR ENTITY] for a period of not more 08 than three years and to revoke one or more or all commercial fishing permits held by 09 the person [OR ENTITY]. Upon a third or subsequent conviction under this 10 subsection, the person [OR ENTITY] is also subject to a loss of commercial fishing 11 privileges as provided under (i) of this section. This subsection does not apply to 12 violations of AS 16.43.140(a). 13 * Sec. 13. AS 16.43.970(b) is amended to read: 14 (b) A person or entity who knowingly makes a false statement to the 15 commission for the purpose of obtaining a benefit, including the issuance, renewal, 16 duplication, or transfer of an entry or interim-use permit, [OR] vessel license, vessel 17 interim-use permit, or vessel entry permit, or a person who assists another by 18 knowingly making a false statement to the commission for the purpose of obtaining a 19 benefit for another, is guilty of the crime of unsworn falsification as set out in 20 AS 11.56.210. Upon conviction, the person or entity is also subject to suspension of 21 commercial fishing privileges and revocation of commercial fishing permits under (i) 22 of this section. 23 * Sec. 14. AS 16.43.970(b) is amended to read: 24 (b) A person [OR ENTITY] who knowingly makes a false statement to the 25 commission for the purpose of obtaining a benefit, including the issuance, renewal, 26 duplication, or transfer of an entry or interim-use permit or [,] vessel license [, 27 VESSEL INTERIM-USE PERMIT, OR VESSEL ENTRY PERMIT,] or a person who 28 assists another by knowingly making a false statement to the commission for the 29 purpose of obtaining a benefit for another, is guilty of the crime of unsworn 30 falsification as set out in AS 11.56.210. Upon conviction, the person [OR ENTITY] is 31 also subject to suspension of commercial fishing privileges and revocation of

01 commercial fishing permits under (i) of this section. 02 * Sec. 15. AS 16.43.970(d) is amended to read: 03 (d) If a permit holder is charged by the state with violating a provision of this 04 chapter or a regulation adopted under this chapter, the holder may not transfer [, 05 UNDER AS 16.43.170,] any interim-use or entry permit under AS 16.43.170 or any 06 transferable vessel entry permit under AS 16.43.450 - 16.43.520 [,] until after the 07 final adjudication or dismissal of the charges. 08 * Sec. 16. AS 16.43.970(d) is amended to read: 09 (d) If a permit holder is charged by the state with violating a provision of this 10 chapter or a regulation adopted under this chapter, the holder may not transfer any 11 interim-use or entry permit under AS 16.43.170 [OR ANY TRANSFERABLE 12 VESSEL ENTRY PERMIT UNDER AS 16.43.450 - 16.43.520] until after the final 13 adjudication or dismissal of the charges. 14 * Sec. 17. AS 16.43.970(e) is amended to read: 15 (e) Notwithstanding any other provision of this section, an interim-use or entry 16 permit or transferable vessel entry permit may not be transferred while under 17 suspension, without the consent of the commission. 18 * Sec. 18. AS 16.43.970(e) is amended to read: 19 (e) Notwithstanding any other provision of this section, an interim-use or entry 20 permit [OR TRANSFERABLE VESSEL ENTRY PERMIT] may not be transferred 21 while under suspension, without the consent of the commission. 22 * Sec. 19. AS 16.43.970(f) is amended to read: 23 (f) A commercial fishing entry permit revoked under this section that is 24 pledged as security for a loan under AS 16.10.333, or 16.10.338, or AS 44.81.231 25 shall be reassigned as provided in AS 16.10.337 or AS 44.81.250. 26 * Sec. 20. AS 16.43.970(i) is amended to read: 27 (i) Upon the conviction of a person or entity for an offense described under 28 (a), (b), or (g) of this section, the court shall immediately notify the commission of the 29 conviction. The notice provided by the court shall be accompanied by an order 30 suspending commercial fishing privileges and revoking commercial fishing permits 31 under (a) of this section, as appropriate. The commission shall, upon receipt of

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

01 (2) a notice from the court that a person [OR ENTITY] has been 02 convicted of a third or subsequent violation of (a) of this section, suspend all 03 commercial fishing privileges of the person [OR ENTITY] for a period of three years 04 from the date of conviction and revoke all commercial fishing permits held by the 05 person [OR ENTITY]; 06 (3) a notice from the court that a person [OR ENTITY] has been 07 convicted of a violation described under (b) of this section, suspend all commercial 08 fishing privileges of the person [OR ENTITY] for a period of three years from the date 09 of conviction and revoke all commercial fishing permits held by the person [OR 10 ENTITY]; 11 (4) a notice from the court that a person has been convicted of a 12 violation described under (g)(1) of this section, suspend all commercial fishing 13 privileges of the person for a period of one year from the date of conviction; 14 (5) a notice from the court that a person has been convicted of a 15 violation described under (g)(2) of this section, suspend all commercial fishing 16 privileges of the person for a period of two years from the date of conviction; 17 (6) a notice from the court that a person has been convicted of a 18 violation described under (g)(3) of this section, suspend all commercial fishing 19 privileges of the person for a period of five years from the date of conviction. 20 * Sec. 22. AS 16.43.970(j)(1) is amended to read: 21 (1) "commercial fishing permit" means an entry permit, [OR] an 22 interim-use permit, a vessel entry permit, or a vessel interim-use permit issued 23 under this chapter; 24 * Sec. 23. AS 16.43.970(j)(1) is amended to read: 25 (1) "commercial fishing permit" means an entry permit or [,] an 26 interim-use permit [, A VESSEL ENTRY PERMIT, OR A VESSEL INTERIM-USE 27 PERMIT] issued under this chapter; 28 * Sec. 24. AS 16.43.980(a) is amended to read: 29 (a) The commission shall prepare an annual report and notify the legislature 30 that it is available. The report must [SHALL] include but not be limited to the 31 following:

01 (1) a progress report on the reduction of entry permits to optimum 02 levels; 03 (2) recommendations for additional legislation relating to the 04 regulation of entry of participants and vessels into Alaska commercial fisheries. 05 * Sec. 25. AS 16.43.990(5) is amended to read: 06 (5) "person" means a natural person; "person" [AND] does not 07 include a corporation, company, partnership, firm, association, organization, joint 08 venture, [BUSINESS] trust, [OR] society, or other legal entity other than a natural 09 person; 10 * Sec. 26. AS 16.43.990 is amended by adding a new paragraph to read: 11 (10) "entity" means a corporation, company, partnership, firm, 12 association, organization, joint venture, trust, society, or other legal entity other than a 13 natural person. 14 * Sec. 27. REPEAL OF VESSEL PERMIT SYSTEM. AS 16.43.100(a)(20), 16.43.450, 15 16.43.460, 16.43.470, 16.43.480, 16.43.490, 16.43.500, 16.43.510, and 16.43.520 are 16 repealed. 17 * Sec. 28. Sections 5, 10, 12, 14, 16, 18, 21, 23, and 27 of this Act take effect December 30, 18 2008. 19 * Sec. 29. Except as provided in sec. 28 of this Act, this Act takes effect immediately under 20 AS 01.10.070(c).