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CSHB 112(FSH): "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; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 112(FSH) 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; and providing 04 for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 16.05.050(a) is amended to read: 07 (a) The commissioner has, but not by way of limitation, the following powers 08 and duties: 09 (1) through the appropriate state agency and under the provisions of 10 AS 36.30 (State Procurement Code), to acquire by gift, purchase, or lease, or other 11 lawful means, land, buildings, water, rights-of-way, or other necessary or proper real 12 or personal property when the acquisition is in the interest of furthering an objective or 13 purpose of the department and the state; 14 (2) under the provisions of AS 36.30, to design and construct

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

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

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

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

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

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

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

01 Service for the purpose of enforcing the industry fee system of a fishing capacity 02 reduction program under 16 U.S.C. 1861a (Magnuson-Stevens Fishery Conservation 03 and Management Act). 04 * Sec. 10. AS 16.10.333(a) is amended to read: 05 (a) Loans under AS 16.10.310(a) may be made to an individual commercial 06 fisherman for the purchase of a limited entry permit upon certification by the 07 commercial fisheries entry division of the Department of Fish and Game 08 [COMMISSION] that the fisherman is a person who qualifies as a transferee for the 09 permit under AS 16.43 and the regulations adopted under AS 16.43 [BY THE 10 COMMISSION]. 11 * Sec. 11. AS 16.10.333(d) is amended to read: 12 (d) Upon satisfaction of the note by the debtor, the commissioner shall certify 13 to the commercial fisheries entry division of the Department of Fish and Game 14 [COMMISSION] that the note has been satisfied. 15 * Sec. 12. AS 16.10.333(e) is amended to read: 16 (e) Upon certification as provided in (d) of this section, the commercial 17 fisheries entry division of the Department of Fish and Game [COMMISSION] 18 shall amend the permit certificate to list the debtor as the legal owner. 19 * Sec. 13. AS 16.10.335(a) is amended to read: 20 (a) If the debtor defaults on [UPON] a note for which a limited entry permit 21 has been pledged as security under AS 16.10.333 or 16.10.338, the commissioner shall 22 provide the debtor, by both certified and first class mail sent to the debtor's last known 23 address on file with the commissioner, with a notice of default that includes 24 (1) a description of the security given for the note including the 25 number assigned to the pledged permit by the commercial fisheries entry division of 26 the Department of Fish and Game [COMMISSION]; 27 (2) the date on [UPON] which the default occurred; 28 (3) the amount of the debtor's outstanding principal and interest as of 29 the date of the default notice, the total amount remaining on the note less unearned 30 interest, and the amount of daily interest; 31 (4) a statement that the debtor may, within 15 days after the postmark

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

01 subsection, the debtor may repurchase the permit by paying the department the amount 02 necessary to pay the note in full, plus penalties, costs of administration of the note, and 03 attorney fees, as determined by the commissioner. 04 * Sec. 16. AS 16.10.360(4) is amended to read: 05 (4) "department" means the Department of Commerce, Community, 06 and Economic Development unless specifically provided otherwise; 07 * Sec. 17. AS 16.40.250 is amended to read: 08 Sec. 16.40.250. Salmon fishery associations. The commissioner may assist in 09 and encourage the formation of qualified salmon fishery associations for the purpose 10 of promoting the consolidation of the fishing fleet in a salmon fishery for which the 11 commercial fisheries entry division of the department [ALASKA COMMERCIAL 12 FISHERIES ENTRY COMMISSION] has issued commercial fishing entry permits 13 under AS 16.43. A salmon fishery association is qualified if the commissioner 14 determines that the regional association 15 (1) is incorporated as a nonprofit corporation under AS 10.20; 16 (2) is made up [COMPRISED] of interim-use permit and entry permit 17 holders in the salmon fishery for which the association is established; and 18 (3) has a board of directors that is made up [COMPRISED] of 19 interim-use permit and entry permit holders in the salmon fishery. 20 * Sec. 18. AS 16.43 is amended by adding a new section to read: 21 Sec. 16.43.015. Commercial fisheries entry division. (a) The commercial 22 fisheries entry division is established as a regulatory division of the 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; 05 (20) when requested by a regional development organization formed 06 under former AS 44.33.895, provide to the organization, without charge, public 07 information contained in the department's [COMMISSION'S] data with respect to 08 relevant fisheries, including limited fisheries, fishery participants, and limited entry 09 permit holders' harvests and earnings; and 10 (21) administer, when necessary to accomplish the purposes of this 11 chapter, a Bering Sea hair crab fishery vessel permit system under AS 16.43.451 - 12 16.43.521. 13 (b) The department [COMMISSION] may do all things necessary to the 14 exercise of its powers under this chapter, whether or not specifically designated in this 15 chapter. 16 * Sec. 20. AS 16.43.110 is repealed and reenacted to read: 17 Sec. 16.43.110. Regulations and hearings. (a) The department may adopt 18 regulations, consistent with law, necessary or proper in the exercise of its powers or 19 for the performance of its duties under this chapter. 20 (b) An administrative hearing on a contested case under this chapter shall be 21 conducted by the office of administrative hearings (AS 44.64.010). Notwithstanding 22 AS 44.64.060(e), the office of administrative hearings shall render the final 23 administrative decision. 24 (c) The department shall adopt regulations to provide for the correction of 25 administrative error. 26 * Sec. 21. AS 16.43.120 is amended to read: 27 Sec. 16.43.120. Application of Administrative Procedure Act. (a) The 28 administrative adjudication procedures of AS 44.62 (Administrative Procedure Act) 29 [DO NOT] apply to administrative hearings on contested cases conducted by 30 [ADJUDICATORY PROCEEDINGS OF] the office of administrative hearings 31 (AS 44.64.010) held under this chapter. Final [COMMISSION EXCEPT THAT

01 FINAL] administrative determinations by the office of administrative hearings 02 [COMMISSION] are subject to judicial review as provided in AS 44.62.560 - 03 44.62.570. 04 (b) AS 44.62.010 - 44.62.320 and 44.62.640 apply to regulations adopted by 05 the department under this chapter [COMMISSION]. 06 * Sec. 22. AS 16.43.140(a) is amended to read: 07 (a) A person may not operate gear in the commercial taking of fishery 08 resources without a valid entry permit or a valid interim-use permit issued by the 09 department [COMMISSION]. 10 * Sec. 23. AS 16.43.140(c) is amended to read: 11 (c) A person may hold more than one interim-use or entry permit issued or 12 transferred under this chapter only for the following purposes: 13 (1) fishing more than one type of gear; 14 (2) fishing in more than one administrative area; 15 (3) harvesting particular species for which separate interim-use or 16 entry permits are issued; 17 (4) if authorized by regulations of the department [COMMISSION], 18 fishing an entire unit of gear in a fishery in which the department [COMMISSION] 19 has issued entry permits for less than a unit of gear under AS 16.43.270(d); under this 20 paragraph, a person may not hold more than two entry permits for a fishery; however, 21 the person may not 22 (A) fish more than one unit of gear in the fishery; or 23 (B) acquire a second entry permit for the fishery after the 24 person has acquired an entry permit that authorizes the use of an entire unit of 25 gear in the fishery; 26 (5) consolidation of the fishing fleet for a salmon fishery; however, a 27 person may hold not more than two entry permits for a salmon fishery under this 28 paragraph, but the person who holds two entry permits for a salmon fishery may not 29 engage in fishing under the second entry permit. 30 * Sec. 24. AS 16.43.150(d) is amended to read: 31 (d) Failure to renew an entry permit for a period of two years from the year of

01 last renewal results in a forfeiture of the entry permit to the department 02 [COMMISSION], except as waived by the department [COMMISSION] for good 03 cause. An entry permit may not be renewed until the fees for each preceding year 04 during which the entry permit was not renewed are paid. However, failure to renew an 05 entry permit in a year in which there is an administrative closure for the entire season 06 for a specific fishery is good cause not to renew the entry permit. The department 07 [COMMISSION] shall waive the payment of fees for that year. 08 * Sec. 25. AS 16.43.150(h) is amended to read: 09 (h) Unless an entry permit holder has expressed a contrary intent in a will that 10 is probated, the department [COMMISSION] shall, upon the death of the permit 11 holder, transfer the permanent permit by right of survivorship directly to the surviving 12 spouse or, if no spouse survives, to a natural person designated by the permit holder on 13 a form provided by the department [COMMISSION]. If no spouse survives and if the 14 person designated on the form, if any, does not survive, the permit passes as part of the 15 permit holder's estate. A designation under this subsection must be acknowledged 16 before a person authorized to administer an oath under AS 09.63.010 or must be 17 witnessed by two persons who are qualified under AS 13.12.505 to witness the will of 18 the permit holder. Except as provided in AS 16.10.333 - 16.10.337, AS 44.81.215, and 19 44.81.231 - 44.81.250, the permit is exempt from the claims of creditors of the estate. 20 * Sec. 26. AS 16.43.150(i) is amended to read: 21 (i) The holder of a transferable or nontransferable entry permit or of an 22 interim-use permit may voluntarily relinquish the permit to the department 23 [COMMISSION]. 24 * Sec. 27. AS 16.43.160(a) is amended to read: 25 (a) Except as specifically provided in this section, the department 26 [COMMISSION] shall establish annual fees for the issuance and annual renewal of 27 entry permits or interim-use permits. 28 * Sec. 28. AS 16.43.160(b) is amended to read: 29 (b) The department [COMMISSION] may charge interest at a rate not to 30 exceed the legal rate of interest established in AS 45.45.010 on fees more than 60 days 31 overdue.

01 * Sec. 29. AS 16.43.160(c) is amended to read: 02 (c) The annual base fee for issuance or renewal of an entry permit or an 03 interim-use permit may not be less than $30 or more than $3,000. The annual base fee 04 must reasonably reflect the different rates of economic return for different fisheries. In 05 addition to the annual base fee established by the department [COMMISSION] under 06 this subsection, a nonresident shall pay an annual nonresident surcharge for the 07 issuance or renewal of one or more entry permits or interim-use permits. The 08 department [COMMISSION] shall establish the annual nonresident surcharge by 09 regulation at an amount that is as close as is practicable to the maximum allowed by 10 law. 11 * Sec. 30. AS 16.43.170(a) is amended to read: 12 (a) Except as provided in AS 16.10.333 - 16.10.338 and in AS 44.81.231 - 13 44.81.250, entry permits and interim-use permits are transferable only through the 14 department [COMMISSION] as provided in this section and AS 16.43.180 and under 15 regulations adopted by the department [COMMISSION]. An involuntary transfer of 16 an entry permit in a manner inconsistent with the statutes of this state and the 17 regulations of the department [COMMISSION] is void. 18 * Sec. 31. AS 16.43.170(b) is amended to read: 19 (b) Except as provided in (e) of this section, the holder of an entry permit may 20 transfer the permit to another person or to the department [COMMISSION] upon 60 21 days' [DAYS] notice of intent to transfer under regulations adopted by the 22 department. Not [COMMISSION. NO] sooner than 60 days nor later than 12 months 23 from the date of notice to the department [COMMISSION], the holder of an entry 24 permit may transfer the permit. If the proposed transferee, other than the department 25 [COMMISSION], can demonstrate the present ability to participate actively in the 26 fishery and the transfer does not violate any provision of this chapter or regulations 27 adopted under this chapter, and if a certificate for the permit under AS 16.10.333(b)(1) 28 - (2), 16.10.338, or AS 44.81.231(a) is not in effect, the department [COMMISSION] 29 shall approve the transfer and reissue the entry permit to the transferee if [PROVIDED 30 THAT] neither party is prohibited by law from participating in the transfer. 31 * Sec. 32. AS 16.43.170(g) is amended to read:

01 (g) A person may request the department [COMMISSION] to transfer an 02 entry permit due to an execution on a permit holder's interest in that permit if the 03 execution is to enforce a lien recorded with the department [COMMISSION] under 04 AS 25.27.230(c). The request shall be made in the form and manner provided in this 05 chapter and regulations adopted under this chapter. The department [COMMISSION] 06 may deny a request for transfer of an entry permit due to an execution of a holder's 07 interest in that permit if 08 (1) the execution does not comply with legal requirements or otherwise 09 is not valid; 10 (2) the transfer violates this chapter or regulations adopted under this 11 chapter; 12 (3) the proposed transferee or other party to the transfer is prohibited 13 by law from participating in the transaction; 14 (4) a certificate for the permit under AS 16.10.333(b)(1) - (2), 15 16.10.338, or AS 44.81.231(a) is in effect at the time of the proposed transfer; 16 (5) the proposed transferee of the entry permit, other than the 17 department [COMMISSION], cannot demonstrate the present ability to actively 18 participate in the fishery; or 19 (6) the holder of the entry permit as shown by the records of the 20 department [COMMISSION] demonstrates, under regulations adopted by the 21 department [COMMISSION], that the entry permit is a necessary means of support 22 for the holder and those dependent on [UPON] the holder. 23 * Sec. 33. AS 16.43.170(h) is amended to read: 24 (h) Notwithstanding (g) of this section, the department [COMMISSION] 25 may not approve a request for transfer of an entry permit after an execution sale unless 26 the parties to the transfer offer the department [COMMISSION] a right to purchase 27 the permit at the same price and on the same terms as those of that execution sale. If 28 the department [COMMISSION] exercises its right to purchase the permit, the permit 29 then shall be transferred to the department [COMMISSION]. 30 * Sec. 34. AS 16.43.180 is amended to read: 31 Sec. 16.43.180. Emergency transfers. (a) The department [COMMISSION]

01 shall adopt regulations providing for the temporary emergency transfer of entry 02 permits and interim-use permits when illness, disability, death, required military or 03 government service, or other unavoidable hardship prevents the permit holder from 04 participating in the fishery. To alleviate hardship pending a final determination of the 05 permit holder's eligibility for an entry permit, the department [COMMISSION] shall 06 adopt regulations providing for the temporary emergency transfer of an interim-use 07 permit issued under AS 16.43.210(b) or 16.43.225. 08 (b) The department [COMMISSION] shall adopt regulations providing for 09 the temporary transfer of an entry permit upon the death of the permittee pending final 10 disposition of the permit as a part of the permittee's estate. 11 * Sec. 35. AS 16.43.200 is amended to read: 12 Sec. 16.43.200. Administrative areas. (a) The department [COMMISSION] 13 shall establish administrative areas suitable for regulating and controlling entry into 14 the commercial fisheries. The department [COMMISSION] shall make the 15 administrative areas reasonably compatible with the geographic areas for which 16 specific commercial fishing regulations are adopted by the Board of Fisheries. 17 (b) The department [COMMISSION] may modify or change the boundaries 18 of administrative areas when necessary and consistent with the purposes of this 19 chapter. 20 * Sec. 36. AS 16.43.210(a) is amended to read: 21 (a) For each fishery that is not subject to a maximum number of entry permits 22 under AS 16.43.240 and not subject to a moratorium under AS 16.43.225, the 23 department [COMMISSION] shall issue interim-use permits under regulations 24 adopted by the department [COMMISSION] to all applicants who can establish their 25 present ability to participate actively in the fishery for which they are making 26 application. 27 * Sec. 37. AS 16.43.210(b) is amended to read: 28 (b) Before the issuance of the maximum number of entry permits for a given 29 fishery, the department [COMMISSION] may issue an interim-use permit to an 30 applicant who may later become eligible for an entry permit under AS 16.43.270. 31 * Sec. 38. AS 16.43.210(c) is amended to read:

01 (c) To the extent authorized by [THAT] the commissioner [OF FISH AND 02 GAME AUTHORIZES IT] under AS 16.05.050(a)(9), the department 03 [COMMISSION] may grant an interim-use permit to a person to engage in the 04 commercial taking from a fishery on an experimental basis. 05 * Sec. 39. AS 16.43.220(a) is amended to read: 06 (a) The department [COMMISSION] shall adopt regulations specifying the 07 dates and places of application, the procedures to be followed in renewal of the 08 interim-use permit including the time, place of its renewal, and for any other purpose 09 incident to the administration of interim-use permits for that fishery. An interim-use 10 permit shall expire upon the final determination of the holder's eligibility for an entry 11 permit. 12 * Sec. 40. AS 16.43.225 is amended to read: 13 Sec. 16.43.225. Moratorium on new entrants into certain fisheries. (a) 14 Subject to (b) of this section, the department [COMMISSION] may establish a 15 moratorium on new entrants into a fishery 16 (1) that has experienced recent increases in fishing effort that are 17 beyond a low, sporadic level of effort; 18 (2) that has achieved a level of harvest that may be approaching or 19 exceeding the maximum sustainable level for the fishery; and 20 (3) for which there is insufficient biological and resource management 21 information necessary to promote the conservation and sustained yield management of 22 the fishery. 23 (b) The department [COMMISSION] may establish a moratorium on new 24 entrants into a fishery described in (a) of this section if 25 (1) the commissioner [OF FISH AND GAME], subject to 26 AS 16.05.251(g), imposes [PETITIONS THE COMMISSION UNDER AS 44.62.220 27 TO ESTABLISH] a moratorium on new entrants into the fishery; and 28 (2) the department [COMMISSION] finds that 29 (A) the fishery has reached a level of participation that may 30 threaten the conservation and the sustained yield management of the fishery 31 resource and the economic health and stability of commercial fishing; and

01 (B) the department [COMMISSION] has insufficient 02 information to conclude that the establishment of a maximum number of entry 03 permits under AS 16.43.240 would further the purposes of this chapter. 04 (c) The department [COMMISSION] may establish a moratorium under this 05 section for a continuous period of up to four years. A fishery that has been subject to a 06 moratorium under this section may not be subjected to a subsequent moratorium under 07 this section unless five years have elapsed since the previous moratorium expired. 08 (d) While a moratorium is in effect, the department [COMMISSION] shall 09 conduct investigations to determine whether a maximum number of entry permits 10 should be established under AS 16.43.240 by 11 (1) conducting research into conditions in the fishery; 12 (2) consulting with the [DEPARTMENT OF FISH AND GAME AND 13 THE] Board of Fisheries; and 14 (3) consulting with participants in the fishery. 15 (e) The department [COMMISSION] shall establish by regulation the 16 qualifications for applicants for an interim-use permit for a fishery subject to a 17 moratorium under this section. The qualifications must include the minimum 18 requirements for past or present participation and harvest in the fishery. The 19 department [COMMISSION] may not issue an interim-use permit for a fishery 20 subject to a moratorium under this section unless the applicant can satisfy the 21 qualifications established under this subsection and establish the present ability and 22 intent to participate actively in the fishery. 23 * Sec. 41. AS 16.43.227(a) is amended to read: 24 (a) The department [COMMISSION] may establish a moratorium on new 25 entrants into the southeast Alaska Dungeness crab fishery for a continuous period of 26 up to four years without complying with AS 16.43.225(a) - (c). While the moratorium 27 is in effect, the department [COMMISSION] shall 28 (1) conduct the investigation required under AS 16.43.225(d); 29 (2) establish by regulation the qualifications for an interim-use permit 30 for the fishery, including minimum requirements for past or present participation and 31 harvest in the fishery; and

01 (3) issue interim-use permits for the fishery to applicants who satisfy 02 the qualifications established under (2) of this subsection and who establish the 03 present ability and intent to participate actively in the fishery. 04 * Sec. 42. AS 16.43.228(g) is amended to read: 05 (g) The department [COMMISSION] may not consider participation in a 06 fishery, subject to a moratorium on entry under this section, that occurs during the 07 period of the moratorium in determining eligibility for an entry permit that may be 08 issued for the fishery after termination of the moratorium. 09 * Sec. 43. AS 16.43.230 is amended to read: 10 Sec. 16.43.230. Designation of distressed fisheries. Pending the 11 determination of maximum numbers of entry permits under AS 16.43.240 and before 12 the initial issue of entry permits under AS 16.43.270, the department 13 [COMMISSION] shall designate as distressed fisheries those for which it estimates 14 that the optimum number of entry permits will be less than the highest number of units 15 of gear fished in that fishery during any one of the four years immediately preceding 16 January 1, 1973. 17 * Sec. 44. AS 16.43.240(b) is amended to read: 18 (b) When the department [COMMISSION] finds that a fishery, not 19 designated as a distressed fishery under AS 16.43.230 or not subject to a moratorium 20 under AS 16.43.225, has reached levels of participation that require the limitation of 21 entry under AS 16.43.140 - 16.43.330 in order to achieve the purposes of this chapter, 22 the department [COMMISSION] shall establish the maximum number of entry 23 permits for that fishery. 24 * Sec. 45. AS 16.43.240(c) is amended to read: 25 (c) When the department [COMMISSION] finds that a fishery subject to a 26 moratorium under AS 16.43.225 has reached levels of participation that require the 27 limitation of entry under AS 16.43.140 - 16.43.330 in order to achieve the purposes of 28 this chapter, the department [COMMISSION] shall establish the maximum number 29 of entry permits for that fishery. 30 * Sec. 46. AS 16.43.250 is amended to read: 31 Sec. 16.43.250. Standards for initial issue of entry permits. (a) Following

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

01 excess of the maximum number established under AS 16.43.230 - 16.43.240 as a 02 result of this subsection. In this subsection, "fishery" includes all salmon fisheries of 03 the state for which a maximum number of entry permits has been established by the 04 department [COMMISSION] under AS 16.43.240(b). 05 (e) If the cumulative qualifications of an individual under (d) of this section 06 include points granted by the department [COMMISSION] under (a) of this section 07 for more than one fishery and the number of points required to place an applicant in 08 the priority classification under (b) of this section is not the same for each of the 09 fisheries, the department [COMMISSION] shall obtain a quotient for the individual 10 by dividing the number of points the individual has been granted for each fishery by 11 the number of points needed to place an applicant in a priority classification under (b) 12 of this section for that fishery. If the sum of the quotients obtained under this 13 subsection equals or exceeds 1.00, the individual is entitled to a permit under (d) of 14 this section. 15 * Sec. 47. AS 16.43.260(a) is amended to read: 16 (a) The department [COMMISSION] shall accept applications for entry 17 permits only from applicants who have harvested fishery resources commercially 18 while participating in the fishery as holders of gear licenses issued under former 19 AS 16.05.536 - 16.05.670 or interim-use permits under AS 16.43.210(a) or 16.43.225 20 before the qualification date established in (d), (e), or (f) of this section. The 21 department [COMMISSION] may specify by regulation the calendar years of 22 participation that will be considered for eligibility purposes. 23 * Sec. 48. AS 16.43.260(b) is amended to read: 24 (b) The department [COMMISSION] shall establish the opening and closing 25 dates, places, and form of application for entry permits for each fishery. The 26 department [COMMISSION] may require the submission of specific verified 27 evidence establishing the applicant's qualifications under the regulations adopted 28 under AS 16.43.250. 29 * Sec. 49. AS 16.43.260(c) is amended to read: 30 (c) When an applicant is unable to establish qualifications for an entry permit 31 by submitting the specific verified evidence required in the application by the

01 department [COMMISSION], the applicant may request and obtain an administrative 02 adjudication of the application according to the procedures established in 03 AS 16.43.110(b). At the hearing the applicant may present alternative evidence of 04 qualifications for an entry permit. 05 * Sec. 50. AS 16.43.260(e) is amended to read: 06 (e) Except as provided in (f) of this section, when the department 07 [COMMISSION] establishes the maximum number of entry permits for a particular 08 fishery under AS 16.43.240 [AFTER JANUARY 1, 1975], an applicant shall be 09 assigned to a priority classification based solely on [UPON] the applicant's 10 qualifications as of January 1 of the year during which the department 11 [COMMISSION] establishes the maximum number of entry permits for the fishery for 12 which application is made. 13 * Sec. 51. AS 16.43.260(f) is amended to read: 14 (f) When the department [COMMISSION] establishes the maximum number 15 of entry permits under AS 16.43.240 for a fishery that is subject to a moratorium under 16 AS 16.43.225, an applicant for an entry permit for the fishery shall be assigned to a 17 priority classification based solely on [UPON] the applicant's qualifications as of the 18 effective date of the statute or regulation establishing the moratorium. 19 * Sec. 52. AS 16.43.270(a) is amended to read: 20 (a) The department [COMMISSION] shall issue entry permits, for each 21 fishery, first to all qualified applicants in the priority classifications designated under 22 AS 16.43.250(b) and then to qualified applicants in order of descending priority 23 classification, until the number of entry permits issued equals the maximum number of 24 entry permits established under AS 16.43.230 and 16.43.240 for each fishery, except 25 that a person within a priority classification specified under AS 16.43.250(b) may not 26 be denied an entry permit. 27 * Sec. 53. AS 16.43.270(b) is amended to read: 28 (b) If, within the lowest priority classification of qualified applicants to which 29 some entry permits may be issued, there are more applicants than there are entry 30 permits to be issued, then the allocation of entry permits within that priority 31 classification shall be by lottery. However, the department [COMMISSION] shall

01 issue entry permits to all qualified applicants in that priority classification if the total 02 number of permits issued for the fishery does not exceed the maximum number of 03 entry permits established under AS 16.43.240 for that fishery by more than five 04 percent or 10 permits, whichever is greater. 05 * Sec. 54. AS 16.43.270(d) is amended to read: 06 (d) The department [COMMISSION] may restrict the fishing capacity 07 employed under an entry permit if, before the initial issuance of entry permits for a 08 fishery, the department [COMMISSION] determines that the fishing capacity in the 09 fishery must be limited to achieve the purposes of this chapter, establishes criteria for 10 determining the fishing capacity that is allowed under an entry permit, and establishes 11 how fishing capacity will be measured. The maximum fishing capacity allowed under 12 an entry permit must be based on [UPON] past participation in the fishery by the 13 initial recipient of the entry permit during a period, specified by the department 14 [COMMISSION], preceding the qualification date established under AS 16.43.260. 15 The department [COMMISSION] may define fishing capacity in terms of quantity of 16 fishing gear, a proportion of the maximum amount of gear that can be utilized in the 17 fishery under regulations of the Board of Fisheries, fishing vessel size or other 18 characteristics, or other factors determined by the department [COMMISSION] to 19 affect the amount of fishing effort in the fishery. The recipient or transferee of an entry 20 permit issued subject to this subsection may not exceed the fishing capacity allowed 21 under the entry permit. 22 * Sec. 55. AS 16.43.290 is amended to read: 23 Sec. 16.43.290. Optimum number of entry permits. Following the issuance 24 of entry permits under AS 16.43.270, the department [COMMISSION] shall 25 establish the optimum number of entry permits for each fishery based on [UPON] a 26 reasonable balance of the following general standards: 27 (1) the number of entry permits sufficient to maintain an economically 28 healthy fishery that will result in a reasonable average rate of economic return to the 29 fishermen participating in that fishery, considering time fished and necessary 30 investments in vessels and gear; 31 (2) the number of entry permits necessary to harvest the allowable

01 commercial take of the fishery resource during all years in an orderly, efficient 02 manner, and consistent with sound fishery management techniques; 03 (3) the number of entry permits sufficient to avoid serious economic 04 hardship to those currently engaged in the fishery, considering other economic 05 opportunities reasonably available to them. 06 * Sec. 56. AS 16.43.300 is amended to read: 07 Sec. 16.43.300. Revisions of optimum number of entry permits. (a) The 08 department [COMMISSION] may increase or decrease the optimum number of entry 09 permits for a fishery when one or more of the following conditions makes a change 10 desirable considering the purposes of this chapter: 11 (1) an established long-term change in the biological condition of the 12 fishery has occurred that substantially alters the optimum number of entry permits 13 permissible applying the standards set out in AS 16.43.290; 14 (2) an established long-term change in market conditions has occurred, 15 directly affecting the fishery, that substantially alters the optimum number of entry 16 permits permissible under the standards set out in AS 16.43.290. 17 (b) If the department [COMMISSION] decreases the optimum number of 18 entry permits for a fishery, the number of entry permits may be reduced only under the 19 voluntary buy-back provisions set out in AS 16.43.310 and 16.43.320. 20 * Sec. 57. AS 16.43.310 is amended to read: 21 Sec. 16.43.310. Establishment of buy-back funds and permit buy-back 22 assessments. (a) When the optimum number of entry permits is less than the number 23 of entry permits outstanding in a fishery, the department [COMMISSION] may 24 establish a buy-back program, a buy-back plan, and a buy-back fund for that fishery. 25 (b) The department [COMMISSION] may establish by regulation a permit 26 buy-back assessment for each fishery for which the department [COMMISSION] has 27 established a buy-back fund under (a) of this section. The amount of the assessment 28 may not exceed seven percent of the value, as defined in AS 43.75.290, of fish that a 29 permit holder in the fishery subject to the assessment removes from the state or 30 transfers to a buyer in the state. The Department of Revenue shall collect an 31 assessment established under this subsection.

01 (c) The department [COMMISSION] shall expend money appropriated to a 02 buy-back fund for the purpose of reducing the number of entry permits in the fishery 03 to the optimum number, at a rate to be established by the department 04 [COMMISSION]. The legislature may appropriate interest accrued on the money in a 05 buy-back fund to that fund. Except as provided in AS 16.43.320, money appropriated 06 to a buy-back fund does not lapse. 07 * Sec. 58. AS 16.43.320 is amended to read: 08 Sec. 16.43.320. Administration of the buy-back program. The department 09 [COMMISSION] shall adopt regulations providing for the purchase of transferable 10 entry permits with money in the buy-back fund for each fishery. The department 11 [COMMISSION] shall cease purchases of entry permits in a fishery when the number 12 of entry permits in the fishery has been reduced to the optimum number. The 13 department [COMMISSION] shall terminate a buy-back assessment established for a 14 fishery under AS 16.43.310(b) when the department [COMMISSION] determines 15 that the amount of revenue collected through the assessment is sufficient to purchase 16 the number of entry permits necessary to achieve the optimum number of entry 17 permits in the fishery and to offset the reasonable costs of the buy-back program for 18 the fishery, including repayment of any debt the department [COMMISSION] was 19 authorized to incur to capitalize the buy-back fund for the fishery. The unexpended 20 balance of appropriations made to a buy-back fund for a fishery shall lapse back into 21 the fund from which the money was appropriated at the end of the fiscal year in which 22 the buy-back program is terminated. 23 * Sec. 59. AS 16.43.330(a) is amended to read: 24 (a) When the number of outstanding entry permits for a fishery is less than the 25 optimum number established under AS 16.43.290, the department [COMMISSION] 26 shall issue new entry permits to applicants who are presently able to engage actively in 27 the fishery until the optimum number is reached. 28 * Sec. 60. AS 16.43.330(b) is amended to read: 29 (b) The department [COMMISSION] shall determine equitable methods of 30 issuance, as appropriate, under (a) of this section that assure the receipt of fair market 31 value for the permits issued.

01 * Sec. 61. AS 16.43.340(a) is amended to read: 02 (a) In addition to entry permits and interim-use permits, the department 03 [COMMISSION] may issue educational entry permits to public, private, or 04 denominational educational institutions accredited by the Department of Education 05 and Early Development or accredited institutions, career, or vocational programs 06 approved by the Alaska Commission on Postsecondary Education, or full-time 07 nonprofit residential child care facilities licensed by the Department of Health and 08 Social Services, division of social services, if 09 (1) the program is offered to students at the junior high school level or 10 above; 11 (2) the issuance of an educational entry permit is reasonably necessary 12 to the instruction of students under courses offered by the applicant for the educational 13 entry permit; 14 (3) the program is offered by an institution that is located in the state 15 and has been in operation for at least two years; and 16 (4) the institution offering the program is not a correspondence 17 institution. 18 * Sec. 62. AS 16.43.340(c) is amended to read: 19 (c) The department [COMMISSION] may issue educational entry permits 20 notwithstanding the establishment of maximum or optimum numbers under 21 AS 16.43.240 and 16.43.290. 22 * Sec. 63. AS 16.43.351(b) is amended to read: 23 (b) A recipient may be issued an educational entry permit valid for designated 24 fisheries in the administrative area the department [COMMISSION] determines to be 25 appropriate, considering the nature of the educational program and the location of the 26 educational or vocational institution. The recipient of an educational entry permit may 27 not be issued an educational entry permit in more than one administrative area except 28 as issued by the department [COMMISSION] in its discretion upon good cause 29 shown. 30 * Sec. 64. AS 16.43.351(d) is amended to read: 31 (d) Annual fees for educational entry permits shall be as specified by

01 department [COMMISSION] regulation under the authority of AS 16.43.160. 02 * Sec. 65. AS 16.43.371 is amended to read: 03 Sec. 16.43.371. Accounting of harvest. The recipient of an educational entry 04 permit shall report to the department [COMMISSION] costs and earnings, amount of 05 harvest, and other information the department [COMMISSION] requires to monitor 06 training programs of recipients of educational entry permits. 07 * Sec. 66. AS 16.43.381(b) is amended to read: 08 (b) The department [COMMISSION] shall adopt regulations relating to the 09 issuance of educational entry permits, establishing eligibility criteria for recipients of 10 the permits, and [SUCH] other matters as are reasonably necessary to implement 11 AS 16.43.340 - 16.43.390. 12 * Sec. 67. AS 16.43.400 is amended to read: 13 Sec. 16.43.400. Special harvest area entry permits. (a) In addition to entry 14 permits, interim-use permits, and educational permits, the department 15 [COMMISSION] may issue special harvest area entry permits to holders of private, 16 nonprofit hatchery permits issued by the department [DEPARTMENT OF FISH 17 AND GAME] under AS 16.10.400 - 16.10.475. 18 (b) The department [COMMISSION] may issue special harvest area entry 19 permits notwithstanding the establishment of maximum or optimum numbers under 20 AS 16.43.240 and 16.43.290. 21 * Sec. 68. AS 16.43.410(c) is amended to read: 22 (c) The annual fee for a special harvest area entry permit shall be specified by 23 department [COMMISSION] regulation under the authority of AS 16.43.160. 24 * Sec. 69. AS 16.43.440(b) is amended to read: 25 (b) The department [COMMISSION, AFTER CONSULTATION WITH 26 THE DEPARTMENT OF FISH AND GAME,] shall adopt regulations that are 27 reasonably necessary to implement AS 16.43.400 - 16.43.440. 28 * Sec. 70. AS 16.43.850(a) is amended to read: 29 (a) For the purpose of identifying frequent violators of commercial fishing 30 laws in salmon fisheries, the department [COMMISSION] shall adopt regulations 31 establishing a uniform system for the suspension of commercial salmon fishing

01 privileges by assigning demerit points for convictions for violations of commercial 02 fishing laws in salmon fisheries that are reported to the department [COMMISSION] 03 under AS 16.43.880. The department [COMMISSION] shall assess demerit points 04 against a permit holder for each violation of commercial fishing laws in a salmon 05 fishery in accordance with (b) and (c) of this section. The department 06 [COMMISSION] shall assess points against a permit holder for the salmon fishery in 07 which the violation of commercial fishing laws occurred. 08 * Sec. 71. AS 16.43.850(b) is amended to read: 09 (b) The department [COMMISSION] shall assess demerit points against a 10 permit holder for a conviction of a violation of commercial fishing laws in a salmon 11 fishery under AS 16.05.722, 16.05.723, 16.05.831; AS 16.10.055, 16.10.070 - 12 16.10.090, 16.10.100, 16.10.110, 16.10.120, 16.10.200 - 16.10.220, and 16.10.760 - 13 16.10.790 for the following violations in accordance with this schedule: 14 (1) fishing in closed waters ..................................................... 6 points; 15 (2) fishing during closed season or period ............................. 6 points; 16 (3) fishing with more than the legal amount of gear .............. 4 points; 17 (4) fishing with gear not allowed in fishery ........................... 6 points; 18 (5) fishing before expiration of transfer period ...................... 6 points; 19 (6) interfering with commercial fishing gear .......................... 4 points; 20 (7) fishing with more than the legal amount of gear on vessel 4 points; 21 (8) improper operation of fishing gear ................................... 4 points; 22 (9) permit holder not present when required .......................... 4 points; 23 (10) fishing with underlength or overlength vessel ................ 6 points; 24 (11) wanton waste of fishery resources .................................. 4 points. 25 * Sec. 72. AS 16.43.850(d) is amended to read: 26 (d) The department [COMMISSION] shall suspend a permit holder's 27 commercial salmon fishing privileges for a salmon fishery for a period of 28 (1) one year if the permit holder accumulates 12 or more points during 29 any consecutive 36-month period as a result of convictions for violations of 30 commercial fishing laws in the salmon fishery; 31 (2) two years if the permit holder accumulates 16 or more points

01 during any consecutive 36-month period as a result of convictions for violations of 02 commercial fishing laws in the salmon fishery; 03 (3) three years if the permit holder accumulates 18 or more points 04 during any consecutive 36-month period as a result of convictions for violations of 05 commercial fishing laws in the salmon fishery. 06 * Sec. 73. AS 16.43.855(c) is amended to read: 07 (c) The assessment of points against a permit holder by the department 08 [COMMISSION] under AS 16.43.850 - 16.43.895 is in addition to, and not in 09 substitution for, other provisions of this title and is not a substitute for any penalty 10 imposed by a court. 11 * Sec. 74. AS 16.43.855(d) is amended to read: 12 (d) If points are assessed against a permit holder who holds a commercial 13 fishing permit for a salmon fishery under an emergency transfer approved by the 14 department [COMMISSION] under AS 16.43.180, the same number of points shall 15 also be assessed against the transferor of the permit. Points assessed against the 16 transferor of the permit under this subsection shall be included in calculations made 17 under AS 16.43.850(d). 18 * Sec. 75. AS 16.43.860(a) is amended to read: 19 (a) A permit holder whose commercial salmon fishing privileges for a salmon 20 fishery are suspended under AS 16.43.850 - 16.43.895 may not obtain an entry permit 21 or interim-use permit for that salmon fishery during the period of the suspension of the 22 privileges. During the period for which the permit holder's privilege to obtain an entry 23 permit or interim-use permit for a salmon fishery is suspended under this section, the 24 department [COMMISSION] may not issue a permit card to the permit holder for 25 that fishery. 26 * Sec. 76. AS 16.43.860(c) is amended to read: 27 (c) If, during the period for which a permit holder's commercial fishing 28 privileges for a salmon fishery are suspended, the department [COMMISSION] 29 establishes a limited entry system for the salmon fishery, the permit holder shall be 30 eligible to obtain an entry permit for that fishery to the extent that the permit holder 31 qualifies for the entry permit under regulations adopted by the department

01 [COMMISSION]. If the permit holder qualifies for an entry permit for the fishery, the 02 department [COMMISSION] shall withhold issuance of the entry permit until the 03 period of the suspension imposed under AS 16.43.850 - 16.43.895 has expired. 04 * Sec. 77. AS 16.43.860(d) is amended to read: 05 (d) The department [COMMISSION] may not transfer a commercial fishing 06 permit for a salmon fishery under an emergency transfer under AS 16.43.180 if, at the 07 time of the application for the emergency transfer, the permit holder's commercial 08 salmon fishing privileges for the salmon fishery have been suspended. 09 * Sec. 78. AS 16.43.870 is amended to read: 10 Sec. 16.43.870. Notice and appeal. The department [COMMISSION] shall 11 provide notice of determinations of the department [COMMISSION] under 12 AS 16.43.850 - 16.43.895. Respondents may request a hearing under AS 16.43.110(b) 13 [REGULATIONS ADOPTED BY THE COMMISSION UNDER AS 16.43.110]. 14 * Sec. 79. AS 16.43.880(a) is amended to read: 15 (a) A court that convicts a person of a violation of commercial fishing laws 16 under this title or under a regulation adopted under this title in a salmon fishery shall 17 forward a record of the conviction to the department [COMMISSION] on a weekly 18 basis. 19 * Sec. 80. AS 16.43.955 is amended to read: 20 Sec. 16.43.955. Hearings in proximity to Board of Fisheries meetings. 21 When practicable, a department [COMMISSION] hearing that deals with the subject 22 of limiting entry to a fishery shall be held on the same dates on which, and in the same 23 building or in a building adjacent to the building in which, a Board of Fisheries 24 meeting is being held. 25 * Sec. 81. AS 16.43.960(a) is amended to read: 26 (a) The department [COMMISSION] may revoke, suspend, or transfer all 27 entry or interim-use permits, vessel entry permits, or vessel interim-use permits held 28 by a person or entity who knowingly provides or assists in providing false 29 information, or fails to correct false information provided to the department 30 [COMMISSION] for the purpose of obtaining a benefit for self or another, including 31 the issuance, renewal, duplication, or transfer of an entry or interim-use permit, vessel

01 license, vessel entry permit, or vessel interim-use permit. The department 02 [COMMISSION] may suspend, as appropriate, that person's or entity's eligibility to 03 hold an entry or interim-use permit, vessel entry permit, or vessel interim-use permit 04 for a period not to exceed three years, and may impose an administrative fine of not 05 more than $5,000 on the person or entity whose officers, employees, representatives, 06 or agents knowingly provide or assist in providing false information, or fail to correct 07 false information provided, to the department [COMMISSION] for the purpose of 08 obtaining a benefit. 09 * Sec. 82. AS 16.43.960(a), as amended by sec. 6, ch. 2, SLA 2014, is amended to read: 10 (a) The department [COMMISSION] may revoke, suspend, or transfer all 11 entry or interim-use permits held by a person who knowingly provides or assists in 12 providing false information, or fails to correct false information provided to the 13 department [COMMISSION] for the purpose of obtaining a benefit for self or 14 another, including the issuance, renewal, duplication, or transfer of an entry or 15 interim-use permit or vessel license. The department [COMMISSION] may suspend 16 that person's eligibility to hold an entry or interim-use permit for a period not to 17 exceed three years, and may impose an administrative fine of not more than $5,000 on 18 the person. The department [COMMISSION] may also impose an administrative fine 19 of not more than $5,000 on an entity whose officers, employees, representatives, or 20 agents knowingly provide or assist in providing false information, or fail to correct 21 false information provided, to the department [COMMISSION] for the purpose of 22 obtaining a benefit. 23 * Sec. 83. AS 16.43.960(b) is amended to read: 24 (b) The office of administrative hearings [COMMISSION] shall serve the 25 respondent personally or by certified or registered mail with a notice to show cause 26 why the proposed action should not take place. The notice to show cause must 27 (1) be supported by an affidavit, which may be made on information or 28 belief, setting out the facts that are the basis of the proposed actions; 29 (2) provide for a least 30 days' notice of the place, date, and time of the 30 hearing where the respondent may present evidence in opposition to the proposed 31 action; unless waived in writing by the respondent, the hearing shall be held within the

01 judicial district in which the respondent resides if the respondent resides in the state; 02 the hearing place shall be at the discretion of the office of administrative hearings 03 [COMMISSION] for those respondents residing outside the state; 04 (3) specify the statutes or regulations violated; 05 (4) state with particularity the action proposed to be taken; 06 (5) indicate to the respondent that the respondent's ability to 07 permanently transfer the permits that are the subject of the show cause proceedings 08 has been suspended as of the date of the notice and will continue to be suspended until 09 the exhaustion of all administrative and judicial remedies; and 10 (6) provide other information the office of administrative hearings 11 [COMMISSION] considers proper. 12 * Sec. 84. AS 16.43.960(d) is amended to read: 13 (d) The show cause hearing shall be conducted and a decision shall be issued 14 [BEFORE A QUORUM OF COMMISSIONERS AND SHALL BE PRESIDED 15 OVER BY A HEARING OFFICER APPOINTED] by the office of administrative 16 hearings under AS 16.43.110(b) [COMMISSION WHO SHALL RULE ON THE 17 PRESENTATION OF EVIDENCE AND OTHER PROCEDURAL MATTERS]. 18 Hearings shall be conducted in accordance with regulations adopted under 19 AS 16.43.110(b). 20 * Sec. 85. AS 16.43.960(e) is amended to read: 21 (e) The failure of a respondent properly served under (b) of this section to 22 appear at the hearing is not grounds for setting aside any [COMMISSION] action 23 taken by the office of administrative hearings. However, the office of 24 administrative hearings [COMMISSION] may in its discretion order a continuance 25 or second hearing. 26 * Sec. 86. AS 16.43.960(g) is amended to read: 27 (g) The provisions of this section [APPLY TO CONDUCT OCCURRING 28 AFTER JANUARY 1, 1973, BUT] do not affect a permit held by a person who is a 29 bona fide purchaser. Failure to correct false information is a continuing offense. 30 * Sec. 87. AS 16.43.960(h) is amended to read: 31 (h) Judicial review of [COMMISSION] determinations made by the office of

01 administrative hearings under this section is in accordance with AS 44.62.560 - 02 44.62.570; however, if a hearing de novo is granted under AS 44.62.570(d), the 03 hearing may, in the discretion of the court, be had with a jury sitting if application for 04 the jury hearing is filed with the court not [NO] later than 10 days after service of the 05 notice of appeal. 06 * Sec. 88. AS 16.43.960(i) is amended to read: 07 (i) An entry permit revoked by the department [COMMISSION] under this 08 section that is pledged as security for a loan under AS 16.10.333 or AS 44.81.231 shall 09 be reassigned or sold as provided in AS 16.10.337 or AS 44.81.250. 10 * Sec. 89. AS 16.43.960(j) is amended to read: 11 (j) The department [COMMISSION] shall immediately cancel a limited 12 entry permit card issued to a debtor under a loan made under AS 16.10.300 - 13 16.10.370 when the department [COMMISSION] receives a certificate of loan 14 termination containing a copy of the 15 (1) notice required by AS 16.10.335(a); or 16 (2) notice that, if the debtor has filed bankruptcy, the automatic stay 17 issued is no longer in effect and the debtor has not reaffirmed the debt. 18 * Sec. 90. AS 16.43.970(a) is amended to read: 19 (a) A person who violates a provision of this chapter or a regulation adopted 20 under this chapter or an entity that violates a provision of AS 16.43.451 - 16.43.521 or 21 a regulation adopted under AS 16.43.451 - 16.43.521 is, upon conviction, guilty of a 22 class B misdemeanor and is punishable by a fine of not more than $5,000 for a first 23 conviction, and a fine of not more than $10,000 for a second or third conviction. Upon 24 a first or second conviction under this subsection, the court may in its discretion also 25 order the department [COMMISSION] to suspend the commercial fishing privileges 26 of the person or entity for a period of not more than three years and to revoke one or 27 more or all commercial fishing permits held by the person or entity. Upon a third or 28 subsequent conviction under this subsection, the person or entity is also subject to a 29 loss of commercial fishing privileges as provided under (i) of this section. This 30 subsection does not apply to violations of AS 16.43.140(a). 31 * Sec. 91. AS 16.43.970(a), as amended by sec. 8, ch. 2, SLA 2014, is amended to read:

01 (a) A person who violates a provision of this chapter or a regulation adopted 02 under this chapter is, upon conviction, guilty of a class B misdemeanor and is 03 punishable by a fine of not more than $5,000 for a first conviction, and a fine of not 04 more than $10,000 for a second or third conviction. Upon a first or second conviction 05 under this subsection, the court may in its discretion also order the department 06 [COMMISSION] to suspend the commercial fishing privileges of the person for a 07 period of not more than three years and to revoke one or more or all commercial 08 fishing permits held by the person. Upon a third or subsequent conviction under this 09 subsection, the person is also subject to a loss of commercial fishing privileges as 10 provided under (i) of this section. This subsection does not apply to violations of 11 AS 16.43.140(a). 12 * Sec. 92. AS 16.43.970(b) is amended to read: 13 (b) A person or entity who knowingly makes a false statement to the 14 department [COMMISSION] for the purpose of obtaining a benefit, including the 15 issuance, renewal, duplication, or transfer of an entry or interim-use permit, vessel 16 license, vessel interim-use permit, or vessel entry permit, or a person who assists 17 another by knowingly making a false statement to the department [COMMISSION] 18 for the purpose of obtaining a benefit for another, is guilty of the crime of unsworn 19 falsification in the second degree as set out in AS 11.56.210. Upon conviction, the 20 person or entity is also subject to suspension of commercial fishing privileges and 21 revocation of commercial fishing permits under (i) of this section. 22 * Sec. 93. AS 16.43.970(b), as amended by sec. 10, ch. 2, SLA 2014, is amended to read: 23 (b) A person who knowingly makes a false statement to the department 24 [COMMISSION] for the purpose of obtaining a benefit, including the issuance, 25 renewal, duplication, or transfer of an entry or interim-use permit or vessel license or a 26 person who assists another by knowingly making a false statement to the department 27 [COMMISSION] for the purpose of obtaining a benefit for another, is guilty of the 28 crime of unsworn falsification in the second degree as set out in AS 11.56.210. Upon 29 conviction, the person is also subject to suspension of commercial fishing privileges 30 and revocation of commercial fishing permits under (i) of this section. 31 * Sec. 94. AS 16.43.970(e) is amended to read:

01 (e) Notwithstanding any other provision of this section, an interim-use or entry 02 permit or transferable vessel entry permit may not be transferred while under 03 suspension, without the consent of the department [COMMISSION]. 04 * Sec. 95. AS 16.43.970(e), as amended by sec. 14, ch. 2, SLA 2014, is amended to read: 05 (e) Notwithstanding any other provision of this section, an interim-use or entry 06 permit may not be transferred while under suspension, without the consent of the 07 department [COMMISSION]. 08 * Sec. 96. AS 16.43.970(i) is amended to read: 09 (i) Upon the conviction of a person or entity for an offense described under 10 (a), (b), or (g) of this section, the court shall immediately notify the department 11 [COMMISSION] of the conviction. The notice provided by the court shall be 12 accompanied by an order suspending commercial fishing privileges and revoking 13 commercial fishing permits under (a) of this section, as appropriate. The department 14 [COMMISSION] shall, upon receipt of 15 (1) an order from the court under (a) of this section, suspend the 16 commercial fishing privileges of a person or entity for the period set by the court and 17 revoke commercial fishing permits held by the person or entity as directed by the 18 court; 19 (2) a notice from the court that a person or entity has been convicted of 20 a third or subsequent violation of (a) of this section, suspend all commercial fishing 21 privileges of the person or entity for a period of three years from the date of conviction 22 and revoke all commercial fishing permits held by the person or entity; 23 (3) a notice from the court that a person or entity has been convicted of 24 a violation described under (b) of this section, suspend all commercial fishing 25 privileges of the person or entity for a period of three years from the date of conviction 26 and revoke all commercial fishing permits held by the person or entity; 27 (4) a notice from the court that a person has been convicted of a 28 violation described under (g)(1) of this section, suspend all commercial fishing 29 privileges of the person for a period of one year from the date of conviction; 30 (5) a notice from the court that a person has been convicted of a 31 violation described under (g)(2) of this section, suspend all commercial fishing

01 privileges of the person for a period of two years from the date of conviction; 02 (6) a notice from the court that a person has been convicted of a 03 violation described under (g)(3) of this section, suspend all commercial fishing 04 privileges of the person for a period of five years from the date of conviction. 05 * Sec. 97. AS 16.43.970(i), as amended by sec. 16, ch. 2, SLA 2014, is amended to read: 06 (i) Upon the conviction of a person for an offense described under (a), (b), or 07 (g) of this section, the court shall immediately notify the department 08 [COMMISSION] of the conviction. The notice provided by the court shall be 09 accompanied by an order suspending commercial fishing privileges and revoking 10 commercial fishing permits under (a) of this section, as appropriate. The department 11 [COMMISSION] shall, upon receipt of 12 (1) an order from the court under (a) of this section, suspend the 13 commercial fishing privileges of a person for the period set by the court and revoke 14 commercial fishing permits held by the person as directed by the court; 15 (2) a notice from the court that a person has been convicted of a third 16 or subsequent violation of (a) of this section, suspend all commercial fishing privileges 17 of the person for a period of three years from the date of conviction and revoke all 18 commercial fishing permits held by the person; 19 (3) a notice from the court that a person has been convicted of a 20 violation described under (b) of this section, suspend all commercial fishing privileges 21 of the person for a period of three years from the date of conviction and revoke all 22 commercial fishing permits held by the person; 23 (4) a notice from the court that a person has been convicted of a 24 violation described under (g)(1) of this section, suspend all commercial fishing 25 privileges of the person for a period of one year from the date of conviction; 26 (5) a notice from the court that a person has been convicted of a 27 violation described under (g)(2) of this section, suspend all commercial fishing 28 privileges of the person for a period of two years from the date of conviction; 29 (6) a notice from the court that a person has been convicted of a 30 violation described under (g)(3) of this section, suspend all commercial fishing 31 privileges of the person for a period of five years from the date of conviction.

01 * Sec. 98. AS 16.43.975 is amended to read: 02 Sec. 16.43.975. Public disclosure of certain documents prohibited. 03 Documents submitted to the department [COMMISSION] containing information 04 relating to an individual's personal finances and information supplied by individuals 05 for research purposes, produced in response to requests by the department 06 [COMMISSION], are not subject to public disclosure. 07 * Sec. 99. AS 16.43.980(a) is amended to read: 08 (a) The department [COMMISSION] shall prepare an annual report and 09 notify the legislature that it is available. The report must include but not be limited to 10 the following: 11 (1) a progress report on the reduction of entry permits to optimum 12 levels; 13 (2) recommendations for additional legislation relating to the 14 regulation of entry of participants and vessels into Alaska commercial fisheries. 15 * Sec. 100. AS 16.43.990(1) is amended to read: 16 (1) "commissioner" ["COMMISSION"] means the commissioner of 17 fish and game [ALASKA COMMERCIAL FISHERIES ENTRY COMMISSION]; 18 * Sec. 101. AS 16.43.990(4) is amended to read: 19 (4) "fishery" means the commercial taking of a specific fishery 20 resource in a specific administrative area with a specific type of gear; however, the 21 department [COMMISSION] may designate a fishery to include more than one 22 specific administrative area, gear type, or fishery resource; 23 * Sec. 102. AS 16.43.990 is amended by adding a new paragraph to read: 24 (12) "department" means the Department of Fish and Game unless 25 specifically provided otherwise. 26 * Sec. 103. AS 25.27.230(c) is amended to read: 27 (c) The lien shall attach to all real and personal property of the obligor and be 28 effective on the date of recording of the lien with the recorder of the recording district 29 in which the property attached is located. A lien against earnings shall attach and be 30 effective upon filing with the recorder of the recording district in which the employer 31 does business or maintains an office or agent for the purpose of doing business. A lien

01 filed at the offices of the Department of Fish and Game [COMMERCIAL 02 FISHERIES ENTRY COMMISSION] in Juneau against a limited entry permit issued 03 under AS 16.43 is considered to have been filed against the permit in all recording 04 districts in which the permit holder uses the permit. 05 * Sec. 104. AS 37.05.146(c)(29) is amended to read: 06 (29) the commercial fisheries entry division of the Department of 07 Fish and Game [ALASKA COMMERCIAL FISHERIES ENTRY COMMISSION] 08 under AS 16.05.490, 16.05.530, and AS 16.43; 09 * Sec. 105. AS 43.76.015(f) is amended to read: 10 (f) In this section, "eligible interim-use permit and entry permit holder" means 11 an individual who, 90 days before the date ballots must be postmarked to be counted 12 in an election under this section, is listed in the records of the commercial fisheries 13 entry division of the Department of Fish and Game [ALASKA COMMERCIAL 14 FISHERIES ENTRY COMMISSION] as the legal owner of an interim-use permit or 15 an entry permit that [WHICH] authorizes the individual to fish commercially in an 16 administrative area established [BY THE ALASKA COMMERCIAL FISHERIES 17 ENTRY COMMISSION] under AS 16.43.200, which is included, in whole or in part, 18 in the region in which the election is held. 19 * Sec. 106. AS 43.76.160(g) is amended to read: 20 (g) In this section, "eligible interim-use permit and entry permit holder" means 21 an individual who, 90 days before the date ballots must be postmarked to be counted 22 in an election under this section, is listed in the records of the commercial fisheries 23 entry division of the Department of Fish and Game [ALASKA COMMERCIAL 24 FISHERIES ENTRY COMMISSION] as the legal holder of an interim-use permit for 25 dive gear or an entry permit for dive gear that authorizes the individual to fish 26 commercially in the administrative area for the species of fishery resource for which 27 the dive fishery management assessment is to be approved, amended, or terminated. 28 * Sec. 107. AS 43.76.210(1) is amended to read: 29 (1) "administrative area" means an area established by the commercial 30 fisheries entry division of the Department of Fish and Game [ALASKA 31 COMMERCIAL FISHERIES ENTRY COMMISSION] under AS 16.43.200 for

01 regulating and controlling entry into fisheries using dive gear; 02 * Sec. 108. AS 43.76.230(g) is amended to read: 03 (g) In this section, "eligible interim-use permit and entry permit holder" means 04 an individual who, 90 days before the date ballots must be postmarked to be counted 05 in an election under this section, is listed in the records of the commercial fisheries 06 entry division of the Department of Fish and Game [ALASKA COMMERCIAL 07 FISHERIES ENTRY COMMISSION] as the legal holder of an interim-use permit for 08 salmon fishing gear or an entry permit for salmon fishing gear that authorizes the 09 individual to fish commercially in the salmon fishery for which the salmon fishery 10 assessment is to be approved, amended, or terminated. 11 * Sec. 109. AS 43.76.280(1) is amended to read: 12 (1) "administrative area" means an area established by the commercial 13 fisheries entry division of the Department of Fish and Game [ALASKA 14 COMMERCIAL FISHERIES ENTRY COMMISSION] under AS 16.43.200 for 15 regulating and controlling entry into salmon fisheries; 16 * Sec. 110. AS 43.76.300 is amended to read: 17 Sec. 43.76.300. Permit buy-back assessment. A person holding a limited 18 entry permit or interim-use permit under AS 16.43 for a fishery subject to a permit 19 buy-back assessment established by the commercial fisheries entry division of the 20 Department of Fish and Game [ALASKA COMMERCIAL FISHERIES ENTRY 21 COMMISSION] under AS 16.43.310 shall pay the permit buy-back assessment at the 22 rate established by the division [COMMISSION] on the value, as defined in 23 AS 43.75.290, of fish that the person removes from the state or transfers to a buyer in 24 the state under the authority conferred by the limited entry permit or interim-use 25 permit. The buyer shall collect the permit buy-back assessment at the time the fish is 26 acquired by the buyer. 27 * Sec. 111. AS 43.76.370(i) is amended to read: 28 (i) In this section, "eligible interim-use permit and entry permit holder" means 29 an individual who, 90 days before the date ballots must be postmarked to be counted 30 in an election under this section, is listed in the records of the commercial fisheries 31 entry division of the Department of Fish and Game [ALASKA COMMERCIAL

01 FISHERIES ENTRY COMMISSION] as the legal owner of an interim-use permit or 02 an entry permit that authorizes the individual to operate commercial fishing gear in the 03 fishery that is or will be subject to the seafood development tax that is the subject of 04 the election. 05 * Sec. 112. AS 44.62.330(a)(27) is amended to read: 06 (27) the Department of Fish and Game as to functions relating to the 07 protection of fish and game under AS 16.05.871 or commercial fisheries under 08 AS 16.43; 09 * Sec. 113. AS 44.64.030(a) is amended by adding a new paragraph to read: 10 (51) AS 16.43 (commercial fisheries entry division). 11 * Sec. 114. AS 44.81.231(d) is amended to read: 12 (d) Upon payment of the loan, the bank shall certify to the commercial 13 fisheries entry division of the Department of Fish and Game [ALASKA 14 COMMERCIAL FISHERIES ENTRY COMMISSION] that the loan has been repaid, 15 and the division [COMMISSION] shall amend the permit certificate to list the 16 equitable owner as the holder, and the legal interest of the bank shall terminate. 17 * Sec. 115. AS 44.81.241 is amended to read: 18 Sec. 44.81.241. Initial notice of default. If there is a default on a loan secured 19 by a permit pledged under AS 44.81.231, the bank shall notify the borrowers and 20 guarantors on the loan of the default and of the right to cure the default by sending a 21 notice by certified mail to their last known address or addresses on file with the bank. 22 The notice must include 23 (1) the date of the notice; 24 (2) a description of the security given for the loan, including the 25 number assigned by the commercial fisheries entry division of the Department of 26 Fish and Game [COMMISSION] and the name of the equitable owner of each permit 27 pledged to secure the loan; 28 (3) the date and nature of the default; 29 (4) the amount of arrearages as of the date of the notice; 30 (5) the total indebtedness, including interest, penalties, and costs of 31 collection, remaining owing on the loan as of the date of the notice;

01 (6) the amount of daily interest to accrue from the date of the notice; 02 (7) a statement that the costs of collection of the loan incurred by the 03 bank after the date of the notice will be added to the total amount of the indebtedness 04 owing on the loan; 05 (8) a statement that the default may be cured within 60 days from the 06 date of the notice or within an extended time period that is specified in an extension 07 notice provided by the bank within the 60-day period under AS 44.81.249; 08 (9) the place where payment of arrearages or other cure may be made; 09 and 10 (10) a statement in at least 10 point bold type stating: 11 "IMPORTANT: UNLESS YOU CURE THE LOAN DEFAULT 12 WITHIN THE TIME SPECIFIED BY THIS NOTICE, THE TOTAL 13 INDEBTEDNESS OWING ON THE LOAN SHALL BE 14 IMMEDIATELY DUE AND PAYABLE TO THE BANK WITHOUT 15 FURTHER NOTICE TO YOU. ALSO, THE BANK SHALL THEN 16 BE ENTITLED TO TAKE ANY LEGAL ACTION AGAINST YOU 17 TO COLLECT THE LOAN, INCLUDING THE INSTITUTION OF 18 LAWSUITS AND THE FORECLOSURE OF THE PLEDGE OF ANY 19 PERMIT PLEDGED TO SECURE THIS LOAN." 20 * Sec. 116. AS 44.81.245 is amended to read: 21 Sec. 44.81.245. Foreclosure. The bank may foreclose on a permit pledge that 22 secures a loan by sending to the equitable owner of the permit pledged and any other 23 borrowers and guarantors on the loan a notice of foreclosure. The notice shall be sent 24 by certified mail to their last known address or addresses on file with the bank and 25 must include 26 (1) the date of the notice; 27 (2) a statement that the total indebtedness owing on the loan became 28 due and payable to the bank because the loan default was not cured within the time 29 specified in the notice of default and right to cure provided under AS 44.81.241, and 30 that as a result the bank is entitled to take legal action to collect the loan, including the 31 forfeiture of a permit pledge that secures the loan and the institution of legal action;

01 (3) a description of the permit pledge that is being foreclosed by the 02 notice, including an identification of the permit by the number assigned by the 03 commercial fisheries entry division of the Department of Fish and Game 04 [COMMISSION] and the name of the equitable owner; 05 (4) the amount of the total indebtedness owing as of the date of the 06 notice; 07 (5) the amount of daily interest that accrues from the date of the notice; 08 (6) a statement that the costs of collection of the loan incurred by the 09 bank after the date of the notice will be added to the total amount of the indebtedness 10 due on the loan; 11 (7) a statement that to avoid forfeiture of all rights of the equitable 12 owner of the permit identified in the notice, the loan must be paid in full within 60 13 days from the date of the notice or within an extended time period that is specified in 14 an extension notice provided by the bank within the 60-day period under 15 AS 44.81.249; 16 (8) a statement that once a forfeiture of all rights of the equitable 17 owner of a permit described in the notice occurs, the permit may not be redeemed; 18 (9) a statement of the right of the equitable owner to nominate a person 19 to assume the loan under AS 44.81.250(c); 20 (10) the place where payment in full may be made; and 21 (11) a notice in at least 10 point bold type stating: 22 "IMPORTANT: IF THE LOAN IS NOT PAID IN FULL BY THE 23 DATE SPECIFIED, ALL RIGHTS OF THE EQUITABLE OWNER 24 TO THE PERMIT IDENTIFIED IN THIS NOTICE WILL BE 25 FORFEITED WITHOUT FURTHER NOTICE TO YOU. IN THAT 26 EVENT, THERE WILL NOT BE A RIGHT OF REDEMPTION OF 27 THE PERMIT. IN ADDITION, THE BANK MAY NOW TAKE 28 OTHER ACTION TO COLLECT THE LOAN, INCLUDING THE 29 INSTITUTION OF LEGAL ACTION AGAINST YOU AND THE 30 FORECLOSURE OF OTHER PERMIT PLEDGES THAT SECURE 31 THE LOAN."

01 * Sec. 117. AS 44.81.247(a) is amended to read: 02 (a) If a loan is not paid in full within the time specified by the notice provided 03 for the loan under AS 44.81.245, the equitable interest in the permit identified in the 04 notice terminates by operation of law without further notice. The commercial 05 fisheries entry division of the Department of Fish and Game [COMMISSION] 06 shall cancel an entry permit card issued to the equitable owner of the permit 07 immediately upon receipt by the division [COMMISSION] of a certificate of 08 termination containing a copy of the notices required by AS 44.81.241 and 44.81.245. 09 * Sec. 118. AS 44.81.250(a) is amended to read: 10 (a) Upon foreclosure of a pledge of an entry permit under AS 44.81.241 - 11 44.81.249 or the termination of a debtor's interest in an entry permit under 12 AS 44.81.247(b), the bank shall determine if the permit is subject to a buy-back 13 program under AS 16.43.290 - 16.43.330 and, if it is subject to a buy-back program, 14 shall offer the permit to the commercial fisheries entry division of the Department 15 of Fish and Game [COMMISSION] at a price equal to the outstanding indebtedness 16 on the loan. 17 * Sec. 119. AS 44.81.250(b) is amended to read: 18 (b) If the permit is not subject to a buy-back program, or if the commercial 19 fisheries entry division of the Department of Fish and Game [COMMISSION] 20 fails to buy back the permit within 30 days after the division [COMMISSION] 21 receives the offer, the bank shall sell the permit to a person who qualifies as a 22 transferee of an entry permit under AS 16.43 and the regulations adopted by the 23 division [COMMISSION]. The bank shall give preference to an offer to purchase a 24 permit made by a state resident if the price offered is equal to or greater than the price 25 offered by a nonresident. If the proceeds of the sale of a permit exceed the amount 26 necessary to pay the indebtedness in full, the bank shall remit the excess to the 27 borrower. 28 * Sec. 120. AS 44.81.350(3) is amended to read: 29 (3) "division" ["COMMISSION"] means the commercial fisheries 30 entry division of the Department of Fish and Game [ALASKA COMMERCIAL 31 FISHERIES ENTRY COMMISSION] under AS 16.43.020;

01 * Sec. 121. AS 16.10.360(1); AS 16.43.020, 16.43.030, 16.43.040, 16.43.050, 16.43.060, 02 16.43.070, 16.43.080; AS 39.25.110(11)(D); and AS 39.50.200(b)(10) are repealed. 03 * Sec. 122. The uncodified law of the State of Alaska is amended by adding a new section 04 to read: 05 TRANSITION. Litigation, hearings, investigations, and other proceedings pending 06 under a law amended or repealed by this Act, or in connection with functions transferred by 07 this Act, continue in effect and may be continued and completed notwithstanding a transfer or 08 amendment or repeal provided for in this Act. Certificates, orders, and regulations issued or 09 adopted under authority of a law amended or repealed by this Act remain in effect for the term 10 issued, or until revoked, vacated, or otherwise modified under the provisions of this Act. 11 Contracts, rights, liabilities, and obligations created by or under a law amended or repealed by 12 this Act, and in effect on the effective date of this Act, remain in effect notwithstanding this 13 Act's taking effect. Records, equipment, appropriations, and other property of agencies of the 14 state whose functions are transferred under this Act shall be transferred to implement the 15 provisions of this Act. 16 * Sec. 123. The uncodified law of the State of Alaska is amended by adding a new section 17 to read: 18 EMPLOYEES. Employees of the Alaska Commercial Fisheries Entry Commission 19 become employees of the commercial fisheries entry division of the Department of Fish and 20 Game on the effective date of this Act. 21 * Sec. 124. Section 82 of this Act takes effect on the effective date of sec. 6, ch. 2, SLA 22 2014. 23 * Sec. 125. Section 91 of this Act takes effect on the effective date of sec. 8, ch. 2, SLA 24 2014. 25 * Sec. 126. Section 93 of this Act takes effect on the effective date of sec. 10, ch. 2, SLA 26 2014. 27 * Sec. 127. Section 95 of this Act takes effect on the effective date of sec. 14, ch. 2, SLA 28 2014. 29 * Sec. 128. Section 97 of this Act takes effect on the effective date of sec. 16, ch. 2, SLA 30 2014.