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HB 386: "An Act repealing the Alaska Commercial Fisheries Entry Commission and transferring its duties to a commercial fisheries entry division established in the Department of Fish and Game and the office of administrative hearings."

00 HOUSE BILL NO. 386 01 "An Act repealing the Alaska Commercial Fisheries Entry Commission and 02 transferring its duties to a commercial fisheries entry division established in the 03 Department of Fish and Game and the office of administrative hearings." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 16.05.050(a) is amended to read: 06 (a) The commissioner has, but not by way of limitation, the following powers 07 and duties: 08 (1) through the appropriate state agency and under the provisions of 09 AS 36.30 (State Procurement Code), to acquire by gift, purchase, or lease, or other 10 lawful means, land, buildings, water, rights-of-way, or other necessary or proper real 11 or personal property when the acquisition is in the interest of furthering an objective or 12 purpose of the department and the state; 13 (2) under the provisions of AS 36.30, to design and construct 14 hatcheries, pipelines, rearing ponds, fishways, and other projects beneficial for the fish

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

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

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

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

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

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

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

01 reduction program under 16 U.S.C. 1861a (Magnuson-Stevens Fishery Conservation 02 and Management Act). 03 * Sec. 10. AS 16.10.333(a) is amended to read: 04 (a) Loans under AS 16.10.310(a) may be made to an individual commercial 05 fisherman for the purchase of a limited entry permit upon certification by the 06 commercial fisheries entry division of the Department of Fish and Game 07 [COMMISSION] that the fisherman is a person who qualifies as a transferee for the 08 permit under AS 16.43 and the regulations adopted under AS 16.43 [BY THE 09 COMMISSION]. 10 * Sec. 11. AS 16.10.333(d) is amended to read: 11 (d) Upon satisfaction of the note by the debtor, the commissioner shall certify 12 to the commercial fisheries entry division of the Department of Fish and Game 13 [COMMISSION] that the note has been satisfied. 14 * Sec. 12. AS 16.10.333(e) is amended to read: 15 (e) Upon certification as provided in (d) of this section, the commercial 16 fisheries entry division of the Department of Fish and Game [COMMISSION] 17 shall amend the permit certificate to list the debtor as the legal owner. 18 * Sec. 13. AS 16.10.335(a) is amended to read: 19 (a) If the debtor defaults on [UPON] a note for which a limited entry permit 20 has been pledged as security under AS 16.10.333 or 16.10.338, the commissioner shall 21 provide the debtor, by both certified and first class mail sent to the debtor's last known 22 address on file with the commissioner, with a notice of default that includes 23 (1) a description of the security given for the note including the 24 number assigned to the pledged permit by the commercial fisheries entry division of 25 the Department of Fish and Game [COMMISSION]; 26 (2) the date on [UPON] which the default occurred; 27 (3) the amount of the debtor's outstanding principal and interest as of 28 the date of the default notice, the total amount remaining on the note less unearned 29 interest, and the amount of daily interest; 30 (4) a statement that the debtor may, within 15 days after the postmark 31 date of the notice, request a hearing to submit evidence showing the debtor has not

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

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

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

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

01 and documents in an inquiry, investigation, hearing, or proceeding before the 02 department or office of administrative hearings in any part of the state. The 03 department or office of administrative hearings may petition a court to enforce its 04 subpoenas or other process. 05 (e) The department shall adopt regulations to provide for the correction of 06 administrative error. 07 * Sec. 21. AS 16.43.120 is amended to read: 08 Sec. 16.43.120. Application of Administrative Procedure Act. (a) The 09 administrative adjudication procedures of AS 44.62 (Administrative Procedure Act) 10 do not apply to adjudicatory proceedings of the office of administrative hearings 11 (AS 44.64) held under this chapter [COMMISSION] except that final administrative 12 determinations by the office of administrative hearings or the department under 13 this chapter [COMMISSION] are subject to judicial review as provided in 14 AS 44.62.560 - 44.62.570. 15 (b) AS 44.62.010 - 44.62.320 and 44.62.640 apply to regulations adopted by 16 the department under this chapter [COMMISSION]. 17 * Sec. 22. AS 16.43.140(a) is amended to read: 18 (a) A [AFTER JANUARY 1, 1974, A] person may not operate gear in the 19 commercial taking of fishery resources without a valid entry permit or a valid interim- 20 use permit issued by the department [COMMISSION]. 21 * Sec. 23. AS 16.43.140(c) is amended to read: 22 (c) A person may hold more than one interim-use or entry permit issued or 23 transferred under this chapter only for the following purposes: 24 (1) fishing more than one type of gear; 25 (2) fishing in more than one administrative area; 26 (3) harvesting particular species for which separate interim-use or 27 entry permits are issued; 28 (4) if authorized by regulations of the department [COMMISSION], 29 fishing an entire unit of gear in a fishery in which the department [COMMISSION] 30 has issued entry permits for less than a unit of gear under AS 16.43.270(d); under this 31 paragraph, a person may not hold more than two entry permits for a fishery; however,

01 the person may not 02 (A) fish more than one unit of gear in the fishery; or 03 (B) acquire a second entry permit for the fishery after the 04 person has acquired an entry permit that authorizes the use of an entire unit of 05 gear in the fishery; 06 (5) consolidation of the fishing fleet for a salmon fishery; however, a 07 person may hold not more than two entry permits for a salmon fishery under this 08 paragraph, but the person who holds two entry permits for a salmon fishery may not 09 engage in fishing under the second entry permit. 10 * Sec. 24. AS 16.43.150(d) is amended to read: 11 (d) Failure to renew an entry permit for a period of two years from the year of 12 last renewal results in a forfeiture of the entry permit to the department 13 [COMMISSION], except as waived by the department [COMMISSION] for good 14 cause. An entry permit may not be renewed until the fees for each preceding year 15 during which the entry permit was not renewed are paid. However, failure to renew an 16 entry permit in a year in which there is an administrative closure for the entire season 17 for a specific fishery is good cause not to renew the entry permit. The department 18 [COMMISSION] shall waive the payment of fees for that year. 19 * Sec. 25. AS 16.43.150(h) is amended to read: 20 (h) Unless an entry permit holder has expressed a contrary intent in a will that 21 is probated, the department [COMMISSION] shall, upon the death of the permit 22 holder, transfer the permanent permit by right of survivorship directly to the surviving 23 spouse or, if no spouse survives, to a natural person designated by the permit holder on 24 a form provided by the department [COMMISSION]. If no spouse survives and if the 25 person designated on the form, if any, does not survive, the permit passes as part of the 26 permit holder's estate. A designation under this subsection must be acknowledged 27 before a person authorized to administer an oath under AS 09.63.010 or must be 28 witnessed by two persons who are qualified under AS 13.12.505 to witness the will of 29 the permit holder. Except as provided in AS 16.10.333 - 16.10.337, AS 44.81.215, and 30 44.81.231 - 44.81.250, the permit is exempt from the claims of creditors of the estate. 31 * Sec. 26. AS 16.43.150(i) is amended to read:

01 (i) The holder of a transferable or nontransferable entry permit or of an 02 interim-use permit may voluntarily relinquish the permit to the department 03 [COMMISSION]. 04 * Sec. 27. AS 16.43.160(a) is amended to read: 05 (a) Except as specifically provided in this section, the department 06 [COMMISSION] shall establish annual fees for the issuance and annual renewal of 07 entry permits or interim-use permits. 08 * Sec. 28. AS 16.43.160(b) is amended to read: 09 (b) The department [COMMISSION] may charge interest at a rate not to 10 exceed the legal rate of interest established in AS 45.45.010 on fees more than 60 days 11 overdue. 12 * Sec. 29. AS 16.43.160(c) is amended to read: 13 (c) For an entry permit or an interim-use permit issued or renewed for 14 calendar year 2006 and following years, the annual base fee for issuance or renewal of 15 an entry permit or an interim-use permit may not be less than $30 or more than 16 $3,000. The annual base fee must reasonably reflect the different rates of economic 17 return for different fisheries. In addition to the annual base fee established by the 18 department [COMMISSION] under this subsection, a nonresident shall pay an annual 19 nonresident surcharge for the issuance or renewal of one or more entry permits or 20 interim-use permits. The department [COMMISSION] shall establish the annual 21 nonresident surcharge by regulation at an amount that is as close as is practicable to 22 the maximum allowed by law. 23 * Sec. 30. AS 16.43.170(a) is amended to read: 24 (a) Except as provided in AS 16.10.333 - 16.10.338 and in AS 44.81.231 - 25 44.81.250, entry permits and interim-use permits are transferable only through the 26 department [COMMISSION] as provided in this section and AS 16.43.180 and under 27 regulations adopted by the department [COMMISSION]. An involuntary transfer of 28 an entry permit in a manner inconsistent with the statutes of this state and the 29 regulations of the department [COMMISSION] is void. 30 * Sec. 31. AS 16.43.170(b) is amended to read: 31 (b) Except as provided in (e) of this section, the holder of an entry permit may

01 transfer the permit to another person or to the department [COMMISSION] upon 60 02 days' [DAYS] notice of intent to transfer under regulations adopted by the 03 department. Not [COMMISSION. NO] sooner than 60 days nor later than 12 months 04 from the date of notice to the department [COMMISSION], the holder of an entry 05 permit may transfer the permit. If the proposed transferee, other than the department 06 [COMMISSION], can demonstrate the present ability to participate actively in the 07 fishery and the transfer does not violate any provision of this chapter or regulations 08 adopted under this chapter, and if a certificate for the permit under AS 16.10.333(b)(1) 09 - (2), 16.10.338, or AS 44.81.231(a) is not in effect, the department [COMMISSION] 10 shall approve the transfer and reissue the entry permit to the transferee if [PROVIDED 11 THAT] neither party is prohibited by law from participating in the transfer. 12 * Sec. 32. AS 16.43.170(g) is amended to read: 13 (g) A person may request the department [COMMISSION] to transfer an 14 entry permit due to an execution on a permit holder's interest in that permit if the 15 execution is to enforce a lien recorded with the department [COMMISSION] under 16 AS 25.27.230(c). The request shall be made in the form and manner provided in this 17 chapter and regulations adopted under this chapter. The department [COMMISSION] 18 may deny a request for transfer of an entry permit due to an execution of a holder's 19 interest in that permit if 20 (1) the execution does not comply with legal requirements or otherwise 21 is not valid; 22 (2) the transfer violates this chapter or regulations adopted under this 23 chapter; 24 (3) the proposed transferee or other party to the transfer is prohibited 25 by law from participating in the transaction; 26 (4) a certificate for the permit under AS 16.10.333(b)(1) - (2), 27 16.10.338, or AS 44.81.231(a) is in effect at the time of the proposed transfer; 28 (5) the proposed transferee of the entry permit, other than the 29 department [COMMISSION], cannot demonstrate the present ability to actively 30 participate in the fishery; or 31 (6) the holder of the entry permit as shown by the records of the

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

01 * Sec. 36. AS 16.43.210(a) is amended to read: 02 (a) For each fishery that is not subject to a maximum number of entry permits 03 under AS 16.43.240 and not subject to a moratorium under AS 16.43.225, the 04 department [COMMISSION] shall issue interim-use permits under regulations 05 adopted by the department [COMMISSION] to all applicants who can establish their 06 present ability to participate actively in the fishery for which they are making 07 application. 08 * Sec. 37. AS 16.43.210(b) is amended to read: 09 (b) Before the issuance of the maximum number of entry permits for a given 10 fishery, the department [COMMISSION] may issue an interim-use permit to an 11 applicant who may later become eligible for an entry permit under AS 16.43.270. 12 * Sec. 38. AS 16.43.210(c) is amended to read: 13 (c) To the extent authorized by [THAT] the commissioner [OF FISH AND 14 GAME AUTHORIZES IT] under AS 16.05.050(a)(9), the department 15 [COMMISSION] may grant an interim-use permit to a person to engage in the 16 commercial taking from a fishery on an experimental basis. 17 * Sec. 39. AS 16.43.220(a) is amended to read: 18 (a) The department [COMMISSION] shall adopt regulations specifying the 19 dates and places of application, the procedures to be followed in renewal of the 20 interim-use permit including the time, place of its renewal, and for any other purpose 21 incident to the administration of interim-use permits for that fishery. An interim-use 22 permit shall expire upon the final determination of the holder's eligibility for an entry 23 permit. 24 * Sec. 40. AS 16.43.225 is amended to read: 25 Sec. 16.43.225. Moratorium on new entrants into certain fisheries. (a) 26 Subject to (b) of this section, the department [COMMISSION] may establish a 27 moratorium on new entrants into a fishery 28 (1) that has experienced recent increases in fishing effort that are 29 beyond a low, sporadic level of effort; 30 (2) that has achieved a level of harvest that may be approaching or 31 exceeding the maximum sustainable level for the fishery; and

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

01 subject to a moratorium under this section unless the applicant can satisfy the 02 qualifications established under this subsection and establish the present ability and 03 intent to participate actively in the fishery. 04 * Sec. 41. AS 16.43.227(a) is amended to read: 05 (a) The department [COMMISSION] may establish a moratorium on new 06 entrants into the southeast Alaska Dungeness crab fishery for a continuous period of 07 up to four years without complying with AS 16.43.225(a) - (c). While the moratorium 08 is in effect, the department [COMMISSION] shall 09 (1) conduct the investigation required under AS 16.43.225(d); 10 (2) establish by regulation the qualifications for an interim-use permit 11 for the fishery, including minimum requirements for past or present participation and 12 harvest in the fishery; and 13 (3) issue interim-use permits for the fishery to applicants who satisfy 14 the qualifications established under (2) of this subsection and who establish the 15 present ability and intent to participate actively in the fishery. 16 * Sec. 42. AS 16.43.228(e) is amended to read: 17 (e) During the four years that a moratorium established by this section is in 18 effect, the department [COMMISSION] shall 19 (1) issue interim-use permits for each fishery subject to (a) - (d) of this 20 section to applicants who satisfy the appropriate qualifications established under (a) - 21 (d) of this section and who establish the present ability and intent to participate 22 actively in the fishery; 23 (2) conduct investigations to determine whether a maximum number of 24 entry permits should be established under AS 16.43.240 for each fishery subject to this 25 section by 26 (A) conducting research into conditions in the fishery; 27 (B) consulting with the [DEPARTMENT OF FISH AND 28 GAME AND THE] Board of Fisheries; and 29 (C) consulting with participants in the fishery; and 30 (3) [IN COOPERATION WITH THE DEPARTMENT OF FISH AND 31 GAME,] conduct investigations to determine whether an alternative form of a

01 nontransferable limited entry or other management program is appropriate for a 02 fishery subject to this section. 03 * Sec. 43. AS 16.43.228(g) is amended to read: 04 (g) The department [COMMISSION] may not consider participation in a 05 fishery, subject to a moratorium on entry under this section, that occurs during the 06 period of the moratorium in determining eligibility for an entry permit that may be 07 issued for the fishery after termination of the moratorium. 08 * Sec. 44. AS 16.43.230 is amended to read: 09 Sec. 16.43.230. Designation of distressed fisheries. Pending the 10 determination of maximum numbers of entry permits under AS 16.43.240 and before 11 the initial issue of entry permits under AS 16.43.270, the department 12 [COMMISSION] shall designate as distressed fisheries those for which it estimates 13 that the optimum number of entry permits will be less than the highest number of units 14 of gear fished in that fishery during any one of the four years immediately preceding 15 January 1, 1973. 16 * Sec. 45. AS 16.43.240(b) is amended to read: 17 (b) When the department [COMMISSION] finds that a fishery, not 18 designated as a distressed fishery under AS 16.43.230 or not subject to a moratorium 19 under AS 16.43.225, has reached levels of participation that require the limitation of 20 entry under AS 16.43.140 - 16.43.330 in order to achieve the purposes of this chapter, 21 the department [COMMISSION] shall establish the maximum number of entry 22 permits for that fishery. 23 * Sec. 46. AS 16.43.240(c) is amended to read: 24 (c) When the department [COMMISSION] finds that a fishery subject to a 25 moratorium under AS 16.43.225 has reached levels of participation that require the 26 limitation of entry under AS 16.43.140 - 16.43.330 in order to achieve the purposes of 27 this chapter, the department [COMMISSION] shall establish the maximum number 28 of entry permits for that fishery. 29 * Sec. 47. AS 16.43.250 is amended to read: 30 Sec. 16.43.250. Standards for initial issue of entry permits. (a) Following 31 the establishment of the maximum number of units of gear for a particular fishery

01 under AS 16.43.240, the department [COMMISSION] shall adopt regulations 02 establishing qualifications for ranking applicants for entry permits according to the 03 degree of hardship that they would suffer by exclusion from the fishery. The 04 regulations shall define priority classifications of similarly situated applicants based 05 on [UPON] a reasonable balance of the following hardship standards: 06 (1) degree of economic dependence on [UPON] the fishery, including, 07 when reasonable for the fishery, the percentage of income derived from the fishery, 08 reliance on alternative occupations, availability of alternative occupations, and 09 investment in vessels and gear; 10 (2) extent of past participation in the fishery, including, when 11 reasonable for the fishery, the number of years of participation in the fishery, and the 12 consistency of participation during each year. 13 (b) The department [COMMISSION] shall designate in the regulations those 14 priority classifications of applicants who would suffer significant economic hardship 15 by exclusion from the fishery. 16 (c) The department [COMMISSION] shall designate in the regulations those 17 priority classifications of applicants who would suffer only minor economic hardship 18 by exclusion from the fishery. 19 (d) If an individual eligible to apply under AS 16.43.260(a) has applied during 20 application periods established under AS 16.43.260(b) for two or more entry permits 21 under AS 16.43.260(d) or (e) for the same specific fishery resource and the same 22 specific type of gear in different administrative areas, but has failed to qualify for an 23 entry permit for that type of fishery resource and gear, the individual's cumulative 24 qualifications may be credited to the fishery for which the individual is most qualified. 25 The department [COMMISSION] shall issue an entry permit to the individual for the 26 fishery if the individual's cumulative qualifications result in placing the individual in a 27 category designated in (b) of this section. The qualifications credited to a fishery under 28 this subsection may not be considered for the purpose of ranking the applicant under 29 (a) - (c) of this section for any other fishery. The department [COMMISSION] may 30 not revoke any permit previously issued notwithstanding the issuance of permits in 31 excess of the maximum number established under AS 16.43.230 - 16.43.240 as a

01 result of this subsection. In this subsection, "fishery" includes all salmon fisheries of 02 the state for which a maximum number of entry permits has been established by the 03 department [COMMISSION] under AS 16.43.240(b). 04 (e) If the cumulative qualifications of an individual under (d) of this section 05 include points granted by the department [COMMISSION] under (a) of this section 06 for more than one fishery and the number of points required to place an applicant in 07 the priority classification under (b) of this section is not the same for each of the 08 fisheries, the department [COMMISSION] shall obtain a quotient for the individual 09 by dividing the number of points the individual has been granted for each fishery by 10 the number of points needed to place an applicant in a priority classification under (b) 11 of this section for that fishery. If the sum of the quotients obtained under this 12 subsection equals or exceeds 1.00, the individual is entitled to a permit under (d) of 13 this section. 14 * Sec. 48. AS 16.43.260(a) is amended to read: 15 (a) The department [COMMISSION] shall accept applications for entry 16 permits only from applicants who have harvested fishery resources commercially 17 while participating in the fishery as holders of gear licenses issued under former 18 AS 16.05.536 - 16.05.670 or interim-use permits under AS 16.43.210(a) or 16.43.225 19 before the qualification date established in (d), (e), or (f) of this section. The 20 department [COMMISSION] may specify by regulation the calendar years of 21 participation that will be considered for eligibility purposes. 22 * Sec. 49. AS 16.43.260(b) is amended to read: 23 (b) The department [COMMISSION] shall establish the opening and closing 24 dates, places, and form of application for entry permits for each fishery. The 25 department [COMMISSION] may require the submission of specific verified 26 evidence establishing the applicant's qualifications under the regulations adopted 27 under AS 16.43.250. 28 * Sec. 50. AS 16.43.260(c) is amended to read: 29 (c) When an applicant is unable to establish qualifications for an entry permit 30 by submitting the specific verified evidence required in the application by the 31 department [COMMISSION], the applicant may request and obtain an administrative

01 adjudication of the application according to the procedures established in 02 AS 16.43.110(b). At the hearing the applicant may present alternative evidence of 03 qualifications for an entry permit. 04 * Sec. 51. AS 16.43.260(e) is amended to read: 05 (e) Except as provided in (f) of this section, when the department 06 [COMMISSION] establishes the maximum number of entry permits for a particular 07 fishery under AS 16.43.240 [AFTER JANUARY 1, 1975], an applicant shall be 08 assigned to a priority classification based solely on [UPON] the applicant's 09 qualifications as of January 1 of the year during which the department 10 [COMMISSION] establishes the maximum number of entry permits for the fishery for 11 which application is made. 12 * Sec. 52. AS 16.43.260(f) is amended to read: 13 (f) When the department [COMMISSION] establishes the maximum number 14 of entry permits under AS 16.43.240 for a fishery that is subject to a moratorium under 15 AS 16.43.225, an applicant for an entry permit for the fishery shall be assigned to a 16 priority classification based solely on [UPON] the applicant's qualifications as of the 17 effective date of the statute or regulation establishing the moratorium. 18 * Sec. 53. AS 16.43.270(a) is amended to read: 19 (a) The department [COMMISSION] shall issue entry permits, for each 20 fishery, first to all qualified applicants in the priority classifications designated under 21 AS 16.43.250(b) and then to qualified applicants in order of descending priority 22 classification, until the number of entry permits issued equals the maximum number of 23 entry permits established under AS 16.43.230 and 16.43.240 for each fishery, except 24 that a person within a priority classification specified under AS 16.43.250(b) may not 25 be denied an entry permit. 26 * Sec. 54. AS 16.43.270(b) is amended to read: 27 (b) If, within the lowest priority classification of qualified applicants to which 28 some entry permits may be issued, there are more applicants than there are entry 29 permits to be issued, then the allocation of entry permits within that priority 30 classification shall be by lottery. However, the department [COMMISSION] shall 31 issue entry permits to all qualified applicants in that priority classification if the total

01 number of permits issued for the fishery does not exceed the maximum number of 02 entry permits established under AS 16.43.240 for that fishery by more than five 03 percent or 10 permits, whichever is greater. 04 * Sec. 55. AS 16.43.270(d) is amended to read: 05 (d) The department [COMMISSION] may restrict the fishing capacity 06 employed under an entry permit if, before the initial issuance of entry permits for a 07 fishery, the department [COMMISSION] determines that the fishing capacity in the 08 fishery must be limited to achieve the purposes of this chapter, establishes criteria for 09 determining the fishing capacity that is allowed under an entry permit, and establishes 10 how fishing capacity will be measured. The maximum fishing capacity allowed under 11 an entry permit must be based on [UPON] past participation in the fishery by the 12 initial recipient of the entry permit during a period, specified by the department 13 [COMMISSION], preceding the qualification date established under AS 16.43.260. 14 The department [COMMISSION] may define fishing capacity in terms of quantity of 15 fishing gear, a proportion of the maximum amount of gear that can be utilized in the 16 fishery under regulations of the Board of Fisheries, fishing vessel size or other 17 characteristics, or other factors determined by the department [COMMISSION] to 18 affect the amount of fishing effort in the fishery. The recipient or transferee of an entry 19 permit issued subject to this subsection may not exceed the fishing capacity allowed 20 under the entry permit. 21 * Sec. 56. AS 16.43.290 is amended to read: 22 Sec. 16.43.290. Optimum number of entry permits. Following the issuance 23 of entry permits under AS 16.43.270, the department [COMMISSION] shall 24 establish the optimum number of entry permits for each fishery based on [UPON] a 25 reasonable balance of the following general standards: 26 (1) the number of entry permits sufficient to maintain an economically 27 healthy fishery that will result in a reasonable average rate of economic return to the 28 fishermen participating in that fishery, considering time fished and necessary 29 investments in vessels and gear; 30 (2) the number of entry permits necessary to harvest the allowable 31 commercial take of the fishery resource during all years in an orderly, efficient

01 manner, and consistent with sound fishery management techniques; 02 (3) the number of entry permits sufficient to avoid serious economic 03 hardship to those currently engaged in the fishery, considering other economic 04 opportunities reasonably available to them. 05 * Sec. 57. AS 16.43.300 is amended to read: 06 Sec. 16.43.300. Revisions of optimum number of entry permits. (a) The 07 department [COMMISSION] may increase or decrease the optimum number of entry 08 permits for a fishery when one or more of the following conditions makes a change 09 desirable considering the purposes of this chapter: 10 (1) an established long-term change in the biological condition of the 11 fishery has occurred that substantially alters the optimum number of entry permits 12 permissible applying the standards set out in AS 16.43.290; 13 (2) an established long-term change in market conditions has occurred, 14 directly affecting the fishery, that substantially alters the optimum number of entry 15 permits permissible under the standards set out in AS 16.43.290. 16 (b) If the department [COMMISSION] decreases the optimum number of 17 entry permits for a fishery, the number of entry permits may be reduced only under the 18 voluntary buy-back provisions set out in AS 16.43.310 and 16.43.320. 19 * Sec. 58. AS 16.43.310 is amended to read: 20 Sec. 16.43.310. Establishment of buy-back funds and permit buy-back 21 assessments. (a) When the optimum number of entry permits is less than the number 22 of entry permits outstanding in a fishery, the department [COMMISSION] may 23 establish a buy-back program, a buy-back plan, and a buy-back fund for that fishery. 24 (b) The department [COMMISSION] may establish by regulation a permit 25 buy-back assessment for each fishery for which the department [COMMISSION] has 26 established a buy-back fund under (a) of this section. The amount of the assessment 27 may not exceed seven percent of the value, as defined in AS 43.75.290, of fish that a 28 permit holder in the fishery subject to the assessment removes from the state or 29 transfers to a buyer in the state. The Department of Revenue shall collect an 30 assessment established under this subsection. 31 (c) The department [COMMISSION] shall expend money appropriated to a

01 buy-back fund for the purpose of reducing the number of entry permits in the fishery 02 to the optimum number, at a rate to be established by the department 03 [COMMISSION]. The legislature may appropriate interest accrued on the money in a 04 buy-back fund to that fund. Except as provided in AS 16.43.320, money appropriated 05 to a buy-back fund does not lapse. 06 * Sec. 59. AS 16.43.320 is amended to read: 07 Sec. 16.43.320. Administration of the buy-back program. The department 08 [COMMISSION] shall adopt regulations providing for the purchase of transferable 09 entry permits with money in the buy-back fund for each fishery. The department 10 [COMMISSION] shall cease purchases of entry permits in a fishery when the number 11 of entry permits in the fishery has been reduced to the optimum number. The 12 department [COMMISSION] shall terminate a buy-back assessment established for a 13 fishery under AS 16.43.310(b) when the department [COMMISSION] determines 14 that the amount of revenue collected through the assessment is sufficient to purchase 15 the number of entry permits necessary to achieve the optimum number of entry 16 permits in the fishery and to offset the reasonable costs of the buy-back program for 17 the fishery, including repayment of any debt the department [COMMISSION] was 18 authorized to incur to capitalize the buy-back fund for the fishery. The unexpended 19 balance of appropriations made to a buy-back fund for a fishery shall lapse back into 20 the fund from which the money was appropriated at the end of the fiscal year in which 21 the buy-back program is terminated. 22 * Sec. 60. AS 16.43.330(a) is amended to read: 23 (a) When the number of outstanding entry permits for a fishery is less than the 24 optimum number established under AS 16.43.290, the department [COMMISSION] 25 shall issue new entry permits to applicants who are presently able to engage actively in 26 the fishery until the optimum number is reached. 27 * Sec. 61. AS 16.43.330(b) is amended to read: 28 (b) The department [COMMISSION] shall determine equitable methods of 29 issuance, as appropriate, under (a) of this section that assure the receipt of fair market 30 value for the permits issued. 31 * Sec. 62. AS 16.43.340(a) is amended to read:

01 (a) In addition to entry permits and interim-use permits, the department 02 [COMMISSION] may issue educational entry permits to public, private, or 03 denominational educational institutions accredited by the Department of Education 04 and Early Development or accredited institutions, career, or vocational programs 05 approved by the Alaska Commission on Postsecondary Education, or full-time 06 nonprofit residential child care facilities licensed by the Department of Health and 07 Social Services, division of social services, if 08 (1) the program is offered to students at the junior high school level or 09 above; 10 (2) the issuance of an educational entry permit is reasonably necessary 11 to the instruction of students under courses offered by the applicant for the educational 12 entry permit; 13 (3) the program is offered by an institution that is located in the state 14 and has been in operation for at least two years; and 15 (4) the institution offering the program is not a correspondence 16 institution. 17 * Sec. 63. AS 16.43.340(c) is amended to read: 18 (c) The department [COMMISSION] may issue educational entry permits 19 notwithstanding the establishment of maximum or optimum numbers under 20 AS 16.43.240 and 16.43.290. 21 * Sec. 64. AS 16.43.351(b) is amended to read: 22 (b) A recipient may be issued an educational entry permit valid for designated 23 fisheries in the administrative area the department [COMMISSION] determines to be 24 appropriate, considering the nature of the educational program and the location of the 25 educational or vocational institution. The recipient of an educational entry permit may 26 not be issued an educational entry permit in more than one administrative area except 27 as issued by the department [COMMISSION] in its discretion upon good cause 28 shown. 29 * Sec. 65. AS 16.43.351(d) is amended to read: 30 (d) Annual fees for educational entry permits shall be as specified by 31 department [COMMISSION] regulation under the authority of AS 16.43.160.

01 * Sec. 66. AS 16.43.371 is amended to read: 02 Sec. 16.43.371. Accounting of harvest. The recipient of an educational entry 03 permit shall report to the department [COMMISSION] costs and earnings, amount of 04 harvest, and other information the department [COMMISSION] requires to monitor 05 training programs of recipients of educational entry permits. 06 * Sec. 67. AS 16.43.381(b) is amended to read: 07 (b) The department [COMMISSION] shall adopt regulations relating to the 08 issuance of educational entry permits, establishing eligibility criteria for recipients of 09 the permits, and [SUCH] other matters as are reasonably necessary to implement 10 AS 16.43.340 - 16.43.390. 11 * Sec. 68. AS 16.43.400 is amended to read: 12 Sec. 16.43.400. Special harvest area entry permits. (a) In addition to entry 13 permits, interim-use permits, and educational permits, the department 14 [COMMISSION] may issue special harvest area entry permits to holders of private, 15 nonprofit hatchery permits issued by the department [DEPARTMENT OF FISH 16 AND GAME] under AS 16.10.400 - 16.10.475. 17 (b) The department [COMMISSION] may issue special harvest area entry 18 permits notwithstanding the establishment of maximum or optimum numbers under 19 AS 16.43.240 and 16.43.290. 20 * Sec. 69. AS 16.43.410(c) is amended to read: 21 (c) The annual fee for a special harvest area entry permit shall be specified by 22 department [COMMISSION] regulation under the authority of AS 16.43.160. 23 * Sec. 70. AS 16.43.440(b) is amended to read: 24 (b) The department [COMMISSION, AFTER CONSULTATION WITH 25 THE DEPARTMENT OF FISH AND GAME,] shall adopt regulations that are 26 reasonably necessary to implement AS 16.43.400 - 16.43.440. 27 * Sec. 71. AS 16.43.850(a) is amended to read: 28 (a) For the purpose of identifying frequent violators of commercial fishing 29 laws in salmon fisheries, the department [COMMISSION] shall adopt regulations 30 establishing a uniform system for the suspension of commercial salmon fishing 31 privileges by assigning demerit points for convictions for violations of commercial

01 fishing laws in salmon fisheries that are reported to the department [COMMISSION] 02 under AS 16.43.880. The department [COMMISSION] shall assess demerit points 03 against a permit holder for each violation of commercial fishing laws in a salmon 04 fishery in accordance with (b) and (c) of this section. The department 05 [COMMISSION] shall assess points against a permit holder for the salmon fishery in 06 which the violation of commercial fishing laws occurred. 07 * Sec. 72. AS 16.43.850(b) is amended to read: 08 (b) The department [COMMISSION] shall assess demerit points against a 09 permit holder for a conviction of a violation of commercial fishing laws in a salmon 10 fishery under AS 16.05.722, 16.05.723, 16.05.831; AS 16.10.055, 16.10.070 - 11 16.10.090, 16.10.100, 16.10.110, 16.10.120, 16.10.200 - 16.10.220, and 16.10.760 - 12 16.10.790 for the following violations in accordance with this schedule: 13 (1) fishing in closed waters .................................................... 6 points; 14 (2) fishing during closed season or period ............................ 6 points; 15 (3) fishing with more than the legal amount of gear ............. 4 points; 16 (4) fishing with gear not allowed in fishery .......................... 6 points; 17 (5) fishing before expiration of transfer period ..................... 6 points; 18 (6) interfering with commercial fishing gear ......................... 4 points; 19 (7) fishing with more than the legal amount of gear on vessel 4 points; 20 (8) improper operation of fishing gear .................................. 4 points; 21 (9) permit holder not present when required ......................... 4 points; 22 (10) fishing with underlength or overlength vessel ............... 6 points; 23 (11) wanton waste of fishery resources ................................. 4 points. 24 * Sec. 73. AS 16.43.850(d) is amended to read: 25 (d) The department [COMMISSION] shall suspend a permit holder's 26 commercial salmon fishing privileges for a salmon fishery for a period of 27 (1) one year if the permit holder accumulates 12 or more points during 28 any consecutive 36-month period as a result of convictions for violations of 29 commercial fishing laws in the salmon fishery; 30 (2) two years if the permit holder accumulates 16 or more points 31 during any consecutive 36-month period as a result of convictions for violations of

01 commercial fishing laws in the salmon fishery; 02 (3) three years if the permit holder accumulates 18 or more points 03 during any consecutive 36-month period as a result of convictions for violations of 04 commercial fishing laws in the salmon fishery. 05 * Sec. 74. AS 16.43.855(c) is amended to read: 06 (c) The assessment of points against a permit holder by the department 07 [COMMISSION] under AS 16.43.850 - 16.43.895 is in addition to, and not in 08 substitution for, other provisions of this title and is not a substitute for any penalty 09 imposed by a court. 10 * Sec. 75. AS 16.43.855(d) is amended to read: 11 (d) If points are assessed against a permit holder who holds a commercial 12 fishing permit for a salmon fishery under an emergency transfer approved by the 13 department [COMMISSION] under AS 16.43.180, the same number of points shall 14 also be assessed against the transferor of the permit. Points assessed against the 15 transferor of the permit under this subsection shall be included in calculations made 16 under AS 16.43.850(d). 17 * Sec. 76. AS 16.43.860(a) is amended to read: 18 (a) A permit holder whose commercial salmon fishing privileges for a salmon 19 fishery are suspended under AS 16.43.850 - 16.43.895 may not obtain an entry permit 20 or interim-use permit for that salmon fishery during the period of the suspension of the 21 privileges. During the period for which the permit holder's privilege to obtain an entry 22 permit or interim-use permit for a salmon fishery is suspended under this section, the 23 department [COMMISSION] may not issue a permit card to the permit holder for 24 that fishery. 25 * Sec. 77. AS 16.43.860(c) is amended to read: 26 (c) If, during the period for which a permit holder's commercial fishing 27 privileges for a salmon fishery are suspended, the department [COMMISSION] 28 establishes a limited entry system for the salmon fishery, the permit holder shall be 29 eligible to obtain an entry permit for that fishery to the extent that the permit holder 30 qualifies for the entry permit under regulations adopted by the department 31 [COMMISSION]. If the permit holder qualifies for an entry permit for the fishery, the

01 department [COMMISSION] shall withhold issuance of the entry permit until the 02 period of the suspension imposed under AS 16.43.850 - 16.43.895 has expired. 03 * Sec. 78. AS 16.43.860(d) is amended to read: 04 (d) The department [COMMISSION] may not transfer a commercial fishing 05 permit for a salmon fishery under an emergency transfer under AS 16.43.180 if, at the 06 time of the application for the emergency transfer, the permit holder's commercial 07 salmon fishing privileges for the salmon fishery have been suspended. 08 * Sec. 79. AS 16.43.870 is amended to read: 09 Sec. 16.43.870. Notice and appeal. The department [COMMISSION] shall 10 provide notice of determinations of the department [COMMISSION] under 11 AS 16.43.850 - 16.43.895. Respondents may request a hearing under regulations 12 adopted by the department [COMMISSION] under AS 16.43.110. 13 * Sec. 80. AS 16.43.880(a) is amended to read: 14 (a) A court that convicts a person of a violation of commercial fishing laws 15 under this title or under a regulation adopted under this title in a salmon fishery shall 16 forward a record of the conviction to the department [COMMISSION] on a weekly 17 basis. 18 * Sec. 81. AS 16.43.955 is amended to read: 19 Sec. 16.43.955. Hearings in proximity to Board of Fisheries meetings. 20 When practicable, a department [COMMISSION] hearing that deals with the subject 21 of limiting entry to a fishery shall be held on the same dates on which, and in the same 22 building or in a building adjacent to the building in which, a Board of Fisheries 23 meeting is being held. 24 * Sec. 82. AS 16.43.960(a) is amended to read: 25 (a) The department [COMMISSION] may revoke, suspend, or transfer all 26 entry or interim-use permits held by a person who knowingly provides or assists in 27 providing false information, or fails to correct false information provided to the 28 department [COMMISSION] for the purpose of obtaining a benefit for self or 29 another, including the issuance, renewal, duplication, or transfer of an entry or 30 interim-use permit or vessel license. The department [COMMISSION] may suspend, 31 as appropriate, that person's eligibility to hold an entry or interim-use permit for a

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

01 conducted in accordance with regulations adopted under AS 16.43.110(b). 02 * Sec. 85. AS 16.43.960(e) is amended to read: 03 (e) The failure of a respondent properly served under (b) of this section to 04 appear at the hearing is not grounds for setting aside any [COMMISSION] action 05 taken by the office of administrative hearings. However, the office of 06 administrative hearings [COMMISSION] may in its discretion order a continuance 07 or second hearing. 08 * Sec. 86. AS 16.43.960(g) is amended to read: 09 (g) The provisions of this section [APPLY TO CONDUCT OCCURRING 10 AFTER JANUARY 1, 1973, BUT] do not affect a permit held by a person who is a 11 bona fide purchaser. Failure to correct false information is a continuing offense. 12 * Sec. 87. AS 16.43.960(h) is amended to read: 13 (h) Judicial review of [COMMISSION] determinations made by the 14 department under this section is in accordance with AS 44.62.560 - 44.62.570; 15 however, if a hearing de novo is granted under AS 44.62.570(d), the hearing may, in 16 the discretion of the court, be had with a jury sitting if application for the jury hearing 17 is filed with the court not [NO] later than 10 days after service of the notice of appeal. 18 * Sec. 88. AS 16.43.960(i) is amended to read: 19 (i) An entry permit revoked by the department [COMMISSION] under this 20 section that is pledged as security for a loan under AS 16.10.333 or AS 44.81.231 shall 21 be reassigned or sold as provided in AS 16.10.337 or AS 44.81.250. 22 * Sec. 89. AS 16.43.960(j) is amended to read: 23 (j) The department [COMMISSION] shall immediately cancel a limited 24 entry permit card issued to a debtor under a loan made under AS 16.10.300 - 25 16.10.370 when the department [COMMISSION] receives a certificate of loan 26 termination containing a copy of the 27 (1) notice required by AS 16.10.335(a); or 28 (2) notice that, if the debtor has filed bankruptcy, the automatic stay 29 issued is no longer in effect and the debtor has not reaffirmed the debt. 30 * Sec. 90. AS 16.43.970(a) is amended to read: 31 (a) A person who violates a provision of this chapter or a regulation adopted

01 under this chapter is, upon conviction, guilty of a class B misdemeanor and is 02 punishable by a fine of not more than $5,000 for a first conviction, and a fine of not 03 more than $10,000 for a second or third conviction. Upon a first or second conviction 04 under this subsection, the court may in its discretion also order the department 05 [COMMISSION] to suspend the commercial fishing privileges of the person for a 06 period of not more than three years and to revoke one or more or all commercial 07 fishing permits held by the person. Upon a third or subsequent conviction under this 08 subsection, the person is also subject to a loss of commercial fishing privileges as 09 provided under (i) of this section. This subsection does not apply to violations of 10 AS 16.43.140(a). 11 * Sec. 91. AS 16.43.970(b) is amended to read: 12 (b) A person who knowingly makes a false statement to the department 13 [COMMISSION] for the purpose of obtaining a benefit, including the issuance, 14 renewal, duplication, or transfer of an entry or interim-use permit or vessel license or a 15 person who assists another by knowingly making a false statement to the department 16 [COMMISSION] for the purpose of obtaining a benefit for another, is guilty of the 17 crime of unsworn falsification in the second degree as set out in AS 11.56.210. Upon 18 conviction, the person is also subject to suspension of commercial fishing privileges 19 and revocation of commercial fishing permits under (i) of this section. 20 * Sec. 92. AS 16.43.970(e) is amended to read: 21 (e) Notwithstanding any other provision of this section, an interim-use or entry 22 permit may not be transferred while under suspension, without the consent of the 23 department [COMMISSION]. 24 * Sec. 93. AS 16.43.970(i) is amended to read: 25 (i) Upon the conviction of a person for an offense described under (a), (b), or 26 (g) of this section, the court shall immediately notify the department 27 [COMMISSION] of the conviction. The notice provided by the court shall be 28 accompanied by an order suspending commercial fishing privileges and revoking 29 commercial fishing permits under (a) of this section, as appropriate. The department 30 [COMMISSION] shall, upon receipt of 31 (1) an order from the court under (a) of this section, suspend the

01 commercial fishing privileges of a person for the period set by the court and revoke 02 commercial fishing permits held by the person as directed by the court; 03 (2) a notice from the court that a person has been convicted of a third 04 or subsequent violation of (a) of this section, suspend all commercial fishing privileges 05 of the person for a period of three years from the date of conviction and revoke all 06 commercial fishing permits held by the person; 07 (3) a notice from the court that a person has been convicted of a 08 violation described under (b) of this section, suspend all commercial fishing privileges 09 of the person for a period of three years from the date of conviction and revoke all 10 commercial fishing permits held by the person; 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. 94. AS 16.43.975 is amended to read: 21 Sec. 16.43.975. Public disclosure of certain documents prohibited. 22 Documents submitted to the department [COMMISSION] containing information 23 relating to an individual's personal finances and information supplied by individuals 24 for research purposes, produced in response to requests by the department 25 [COMMISSION], are not subject to public disclosure. 26 * Sec. 95. AS 16.43.980(a) is amended to read: 27 (a) The department [COMMISSION] shall prepare an annual report and 28 notify the legislature that it is available. The report must include but not be limited to 29 the following: 30 (1) a progress report on the reduction of entry permits to optimum 31 levels;

01 (2) recommendations for additional legislation relating to the 02 regulation of entry of participants and vessels into Alaska commercial fisheries. 03 * Sec. 96. AS 16.43.990(1) is amended to read: 04 (1) "commissioner" ["COMMISSION"] means the commissioner of 05 fish and game [ALASKA COMMERCIAL FISHERIES ENTRY COMMISSION]; 06 * Sec. 97. AS 16.43.990(4) is amended to read: 07 (4) "fishery" means the commercial taking of a specific fishery 08 resource in a specific administrative area with a specific type of gear; however, the 09 department [COMMISSION] may designate a fishery to include more than one 10 specific administrative area, gear type, or fishery resource; 11 * Sec. 98. AS 16.43.990 is amended by adding a new paragraph to read: 12 (12) "department" means the Department of Fish and Game unless 13 specifically provided otherwise. 14 * Sec. 99. AS 25.27.230(c) is amended to read: 15 (c) The lien shall attach to all real and personal property of the obligor and be 16 effective on the date of recording of the lien with the recorder of the recording district 17 in which the property attached is located. A lien against earnings shall attach and be 18 effective upon filing with the recorder of the recording district in which the employer 19 does business or maintains an office or agent for the purpose of doing business. A lien 20 filed at the offices of the Department of Fish and Game [COMMERCIAL 21 FISHERIES ENTRY COMMISSION] in Juneau against a limited entry permit issued 22 under AS 16.43 is considered to have been filed against the permit in all recording 23 districts in which the permit holder uses the permit. 24 * Sec. 100. AS 37.05.146(c)(29) is amended to read: 25 (29) the commercial fisheries entry division of the Department of 26 Fish and Game [ALASKA COMMERCIAL FISHERIES ENTRY COMMISSION] 27 under AS 16.05.490, 16.05.530, and AS 16.43; 28 * Sec. 101. AS 43.76.015(f) is amended to read: 29 (f) In this section, "eligible interim-use permit and entry permit holder" means 30 an individual who, 90 days before the date ballots must be postmarked to be counted 31 in an election under this section, is listed in the records of the commercial fisheries

01 entry division of the Department of Fish and Game [ALASKA COMMERCIAL 02 FISHERIES ENTRY COMMISSION] as the legal owner of an interim-use permit or 03 an entry permit that [WHICH] authorizes the individual to fish commercially in an 04 administrative area established [BY THE ALASKA COMMERCIAL FISHERIES 05 ENTRY COMMISSION] under AS 16.43.200, which is included, in whole or in part, 06 in the region in which the election is held. 07 * Sec. 102. AS 43.76.160(g) is amended to read: 08 (g) In this section, "eligible interim-use permit and entry permit holder" means 09 an individual who, 90 days before the date ballots must be postmarked to be counted 10 in an election under this section, is listed in the records of the commercial fisheries 11 entry division of the Department of Fish and Game [ALASKA COMMERCIAL 12 FISHERIES ENTRY COMMISSION] as the legal holder of an interim-use permit for 13 dive gear or an entry permit for dive gear that authorizes the individual to fish 14 commercially in the administrative area for the species of fishery resource for which 15 the dive fishery management assessment is to be approved, amended, or terminated. 16 * Sec. 103. AS 43.76.210(1) is amended to read: 17 (1) "administrative area" means an area established by the commercial 18 fisheries entry division of the Department of Fish and Game [ALASKA 19 COMMERCIAL FISHERIES ENTRY COMMISSION] under AS 16.43.200 for 20 regulating and controlling entry into fisheries using dive gear; 21 * Sec. 104. AS 43.76.230(g) is amended to read: 22 (g) In this section, "eligible interim-use permit and entry permit holder" means 23 an individual who, 90 days before the date ballots must be postmarked to be counted 24 in an election under this section, is listed in the records of the commercial fisheries 25 entry division of the Department of Fish and Game [ALASKA COMMERCIAL 26 FISHERIES ENTRY COMMISSION] as the legal holder of an interim-use permit for 27 salmon fishing gear or an entry permit for salmon fishing gear that authorizes the 28 individual to fish commercially in the salmon fishery for which the salmon fishery 29 assessment is to be approved, amended, or terminated. 30 * Sec. 105. AS 43.76.280(1) is amended to read: 31 (1) "administrative area" means an area established by the commercial

01 fisheries entry division of the Department of Fish and Game [ALASKA 02 COMMERCIAL FISHERIES ENTRY COMMISSION] under AS 16.43.200 for 03 regulating and controlling entry into salmon fisheries; 04 * Sec. 106. AS 43.76.300 is amended to read: 05 Sec. 43.76.300. Permit buy-back assessment. A person holding a limited 06 entry permit or interim-use permit under AS 16.43 for a fishery subject to a permit 07 buy-back assessment established by the commercial fisheries entry division of the 08 Department of Fish and Game [ALASKA COMMERCIAL FISHERIES ENTRY 09 COMMISSION] under AS 16.43.310 shall pay the permit buy-back assessment at the 10 rate established by the division [COMMISSION] on the value, as defined in 11 AS 43.75.290, of fish that the person removes from the state or transfers to a buyer in 12 the state under the authority conferred by the limited entry permit or interim-use 13 permit. The buyer shall collect the permit buy-back assessment at the time the fish is 14 acquired by the buyer. 15 * Sec. 107. AS 43.76.370(i) is amended to read: 16 (i) In this section, "eligible interim-use permit and entry permit holder" means 17 an individual who, 90 days before the date ballots must be postmarked to be counted 18 in an election under this section, is listed in the records of the commercial fisheries 19 entry division of the Department of Fish and Game [ALASKA COMMERCIAL 20 FISHERIES ENTRY COMMISSION] as the legal owner of an interim-use permit or 21 an entry permit that authorizes the individual to operate commercial fishing gear in the 22 fishery that is or will be subject to the seafood development tax that is the subject of 23 the election. 24 * Sec. 108. AS 44.64.030(a) is amended by adding a new paragraph to read: 25 (51) AS 16.43 (commercial fisheries entry division). 26 * Sec. 109. AS 44.81.231(d) is amended to read: 27 (d) Upon payment of the loan, the bank shall certify to the commercial 28 fisheries entry division of the Department of Fish and Game [ALASKA 29 COMMERCIAL FISHERIES ENTRY COMMISSION] that the loan has been repaid, 30 and the division [COMMISSION] shall amend the permit certificate to list the 31 equitable owner as the holder, and the legal interest of the bank shall terminate.

01 * Sec. 110. AS 44.81.241 is amended to read: 02 Sec. 44.81.241. Initial notice of default. If there is a default on a loan secured 03 by a permit pledged under AS 44.81.231, the bank shall notify the borrowers and 04 guarantors on the loan of the default and of the right to cure the default by sending a 05 notice by certified mail to their last known address or addresses on file with the bank. 06 The notice must include 07 (1) the date of the notice; 08 (2) a description of the security given for the loan, including the 09 number assigned by the commercial fisheries entry division of the Department of 10 Fish and Game [COMMISSION] and the name of the equitable owner of each permit 11 pledged to secure the loan; 12 (3) the date and nature of the default; 13 (4) the amount of arrearages as of the date of the notice; 14 (5) the total indebtedness, including interest, penalties, and costs of 15 collection, remaining owing on the loan as of the date of the notice; 16 (6) the amount of daily interest to accrue from the date of the notice; 17 (7) a statement that the costs of collection of the loan incurred by the 18 bank after the date of the notice will be added to the total amount of the indebtedness 19 owing on the loan; 20 (8) a statement that the default may be cured within 60 days from the 21 date of the notice or within an extended time period that is specified in an extension 22 notice provided by the bank within the 60-day period under AS 44.81.249; 23 (9) the place where payment of arrearages or other cure may be made; 24 and 25 (10) a statement in at least 10 point bold type stating: 26 "IMPORTANT: UNLESS YOU CURE THE LOAN DEFAULT 27 WITHIN THE TIME SPECIFIED BY THIS NOTICE, THE TOTAL 28 INDEBTEDNESS OWING ON THE LOAN SHALL BE 29 IMMEDIATELY DUE AND PAYABLE TO THE BANK WITHOUT 30 FURTHER NOTICE TO YOU. ALSO, THE BANK SHALL THEN 31 BE ENTITLED TO TAKE ANY LEGAL ACTION AGAINST YOU

01 TO COLLECT THE LOAN, INCLUDING THE INSTITUTION OF 02 LAWSUITS AND THE FORECLOSURE OF THE PLEDGE OF ANY 03 PERMIT PLEDGED TO SECURE THIS LOAN." 04 * Sec. 111. AS 44.81.245 is amended to read: 05 Sec. 44.81.245. Foreclosure. The bank may foreclose on a permit pledge that 06 secures a loan by sending to the equitable owner of the permit pledged and any other 07 borrowers and guarantors on the loan a notice of foreclosure. The notice shall be sent 08 by certified mail to their last known address or addresses on file with the bank and 09 must include 10 (1) the date of the notice; 11 (2) a statement that the total indebtedness owing on the loan became 12 due and payable to the bank because the loan default was not cured within the time 13 specified in the notice of default and right to cure provided under AS 44.81.241, and 14 that as a result the bank is entitled to take legal action to collect the loan, including the 15 forfeiture of a permit pledge that secures the loan and the institution of legal action; 16 (3) a description of the permit pledge that is being foreclosed by the 17 notice, including an identification of the permit by the number assigned by the 18 commercial fisheries entry division of the Department of Fish and Game 19 [COMMISSION] and the name of the equitable owner; 20 (4) the amount of the total indebtedness owing as of the date of the 21 notice; 22 (5) the amount of daily interest that accrues from the date of the notice; 23 (6) a statement that the costs of collection of the loan incurred by the 24 bank after the date of the notice will be added to the total amount of the indebtedness 25 due on the loan; 26 (7) a statement that to avoid forfeiture of all rights of the equitable 27 owner of the permit identified in the notice, the loan must be paid in full within 60 28 days from the date of the notice or within an extended time period that is specified in 29 an extension notice provided by the bank within the 60-day period under 30 AS 44.81.249; 31 (8) a statement that once a forfeiture of all rights of the equitable

01 owner of a permit described in the notice occurs, the permit may not be redeemed; 02 (9) a statement of the right of the equitable owner to nominate a person 03 to assume the loan under AS 44.81.250(c); 04 (10) the place where payment in full may be made; and 05 (11) a notice in at least 10 point bold type stating: 06 "IMPORTANT: IF THE LOAN IS NOT PAID IN FULL BY THE 07 DATE SPECIFIED, ALL RIGHTS OF THE EQUITABLE OWNER 08 TO THE PERMIT IDENTIFIED IN THIS NOTICE WILL BE 09 FORFEITED WITHOUT FURTHER NOTICE TO YOU. IN THAT 10 EVENT, THERE WILL NOT BE A RIGHT OF REDEMPTION OF 11 THE PERMIT. IN ADDITION, THE BANK MAY NOW TAKE 12 OTHER ACTION TO COLLECT THE LOAN, INCLUDING THE 13 INSTITUTION OF LEGAL ACTION AGAINST YOU AND THE 14 FORECLOSURE OF OTHER PERMIT PLEDGES THAT SECURE 15 THE LOAN." 16 * Sec. 112. AS 44.81.247(a) is amended to read: 17 (a) If a loan is not paid in full within the time specified by the notice provided 18 for the loan under AS 44.81.245, the equitable interest in the permit identified in the 19 notice terminates by operation of law without further notice. The commercial 20 fisheries entry division of the Department of Fish and Game [COMMISSION] 21 shall cancel an entry permit card issued to the equitable owner of the permit 22 immediately upon receipt by the division [COMMISSION] of a certificate of 23 termination containing a copy of the notices required by AS 44.81.241 and 44.81.245. 24 * Sec. 113. AS 44.81.250(a) is amended to read: 25 (a) Upon foreclosure of a pledge of an entry permit under AS 44.81.241 - 26 44.81.249 or the termination of a debtor's interest in an entry permit under 27 AS 44.81.247(b), the bank shall determine if the permit is subject to a buy-back 28 program under AS 16.43.290 - 16.43.330 and, if it is subject to a buy-back program, 29 shall offer the permit to the commercial fisheries entry division of the Department 30 of Fish and Game [COMMISSION] at a price equal to the outstanding indebtedness 31 on the loan.

01 * Sec. 114. AS 44.81.250(b) is amended to read: 02 (b) If the permit is not subject to a buy-back program, or if the commercial 03 fisheries entry division of the Department of Fish and Game [COMMISSION] 04 fails to buy back the permit within 30 days after the division [COMMISSION] 05 receives the offer, the bank shall sell the permit to a person who qualifies as a 06 transferee of an entry permit under AS 16.43 and the regulations adopted by the 07 division [COMMISSION]. The bank shall give preference to an offer to purchase a 08 permit made by a state resident if the price offered is equal to or greater than the price 09 offered by a nonresident. If the proceeds of the sale of a permit exceed the amount 10 necessary to pay the indebtedness in full, the bank shall remit the excess to the 11 borrower. 12 * Sec. 115. AS 44.81.350(3) is amended to read: 13 (3) "division" ["COMMISSION"] means the commercial fisheries 14 entry division of the Department of Fish and Game [ALASKA COMMERCIAL 15 FISHERIES ENTRY COMMISSION] under AS 16.43.020; 16 * Sec. 116. AS 16.10.360(1); AS 16.43.020, 16.43.030, 16.43.040, 16.43.050, 16.43.060, 17 16.43.070, 16.43.080, 16.43.228(e); AS 39.25.110(11)(D); and AS 39.50.200(b)(10) are 18 repealed. 19 * Sec. 117. The uncodified law of the State of Alaska is amended by adding a new section 20 to read: 21 TRANSITION. Litigation, hearings, investigations, and other proceedings pending 22 under a law amended or repealed by this Act, or in connection with functions transferred by 23 this Act, continue in effect and may be continued and completed notwithstanding a transfer or 24 amendment or repeal provided for in this Act. Certificates, orders, and regulations issued or 25 adopted under authority of a law amended or repealed by this Act remain in effect for the term 26 issued, or until revoked, vacated, or otherwise modified under the provisions of this Act. 27 Contracts, rights, liabilities, and obligations created by or under a law amended or repealed by 28 this Act, and in effect on the effective date of this Act, remain in effect notwithstanding this 29 Act's taking effect. Records, equipment, appropriations, and other property of agencies of the 30 state whose functions are transferred under this Act shall be transferred to implement the 31 provisions of this Act.

01 * Sec. 118. The uncodified law of the State of Alaska is amended by adding a new section 02 to read: 03 EMPLOYEES. Employees of the Alaska Commercial Fisheries Entry Commission 04 become employees of the commercial fisheries entry division of the Department of Fish and 05 Game on the effective date of this Act.