HB 366: "An Act relating to commercial fishing entry permits; establishing regional community permit banks and regions for certain commercial fishing permits; relating to commercial fishing entry permits and regions leased and controlled by a regional community permit bank; relating to the duties of the Commercial Fisheries Entry Commission and the Department of Commerce, Community, and Economic Development; and providing for an effective date."
00 HOUSE BILL NO. 366 01 "An Act relating to commercial fishing entry permits; establishing regional community 02 permit banks and regions for certain commercial fishing permits; relating to 03 commercial fishing entry permits and regions leased and controlled by a regional 04 community permit bank; relating to the duties of the Commercial Fisheries Entry 05 Commission and the Department of Commerce, Community, and Economic 06 Development; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 LEGISLATIVE FINDINGS. The legislature finds that 11 (1) the state has an ownership and stewardship interest in the fish that 12 originate in Alaska waters and return to spawn; 13 (2) art. VIII, sec. 15, Constitution of the State of Alaska, authorizes the state to
01 limit entry into a fishery for the purpose of preventing economic distress among fishermen 02 and those dependent on them for a livelihood; 03 (3) because many of Alaska's coastal communities are isolated, have limited 04 infrastructure, and have a high cost of living and business, they are economically dependent 05 on their regional fisheries; 06 (4) access to commercial fishing contributes to the traditional cultural values 07 of Alaska communities because those communities with access to commercial fisheries are 08 better able to participate in subsistence and sport fisheries; 09 (5) the number of Alaska limited entry commercial fishing permits held by 10 residents local to a given fishery has declined substantially since the implementation of 11 limited entry in 1975; 12 (6) the decline in the number of commercial fishing permits in Alaska's 13 coastal communities has led to economic distress among fishermen, their families, and their 14 communities; and 15 (7) the state has a compelling interest in promoting the economic self- 16 sustainability of its communities and ensuring their continued economic health and vitality. 17 * Sec. 2. AS 16.05.253(b) is amended to read: 18 (b) In this section, 19 (1) "fishing site" means fishing site as defined by the Board of 20 Fisheries and includes any structure used for providing shelter in support of the 21 operation of the net gear or other stationary fishing gear; 22 (2) "person who holds a limited entry permit" and "permit 23 holder" include a lessee of a limited entry permit under AS 16.44. 24 * Sec. 3. AS 16.05.480(a) is amended to read: 25 (a) A person engaged in commercial fishing shall obtain a commercial fishing 26 license and shall retain the license in possession and readily available for inspection 27 during fishing operations. An entry permit or interim-use permit entitles the holder, or 28 the lessee of the permit under AS 16.44, to participate as a gear operator in the 29 fishery for which the permit is issued and to participate as a crewmember in any 30 fishery. A crewmember fishing license is not transferable and entitles the holder to 31 participate as a crewmember in any fishery.
01 * Sec. 4. AS 16.05.480(g) is amended to read: 02 (g) A resident engaged in commercial fishing who is 11 years of age or older 03 and who does not hold or lease an entry permit or an interim-use permit shall, except 04 as provided in (i) of this section, pay a fee of $60 for an annual crewmember fishing 05 license. A resident engaged in commercial fishing who is less than 11 years of age and 06 who does not hold or lease an entry permit or an interim-use permit shall pay an 07 annual fee of $5. 08 * Sec. 5. AS 16.05.480(i) is amended to read: 09 (i) Notwithstanding (g) and (h) of this section, a resident or nonresident 10 engaged in commercial fishing who does not hold or lease an entry permit or an 11 interim-use permit may obtain one seven-day crewmember fishing license under this 12 subsection annually. A person who obtains a seven-day license is not eligible for 13 another seven-day license in the same license year; however, if a person who obtains a 14 seven-day license pays the full fee for an annual crewmember fishing license under (g) 15 or (h) of this section during the same license year, the person is entitled to receive a 16 refund of the fee for the seven-day license. The department shall adopt regulations 17 establishing a refund procedure. During the period for which the seven-day license is 18 valid, a person who holds a seven-day license may not engage in fishing with a rod 19 and reel while present on a commercial fishing vessel. The fee for a seven-day license 20 is $30. 21 * Sec. 6. AS 16.05.480(j) is amended to read: 22 (j) In this section, "commercial fishing license" includes an entry permit and 23 an interim-use permit issued under AS 16.43, an entry permit leased from a 24 regional community permit bank under AS 16.44, and a crewmember fishing 25 license. 26 * Sec. 7. AS 16.05.675(a) is amended to read: 27 (a) A person who does not hold or lease a limited entry permit or interim-use 28 permit issued under AS 16.43 or a fish transporter permit issued under AS 16.05.671 29 may not deliver or land fish in the state unless the person 30 (1) holds a valid federal permit to operate commercial fishing gear in 31 the fishery conservation zone; and
01 (2) has been issued a landing permit by the Alaska Commercial 02 Fisheries Entry Commission. 03 * Sec. 8. AS 16.05.680(a) is amended to read: 04 (a) It is unlawful for a person, or an agent or representative of the person, 05 (1) to employ, in the harvesting, transporting, or purchasing of fish, a 06 fisherman who neither is licensed under AS 16.05.480 nor is the holder or lessee of a 07 permit issued under AS 16.43; 08 (2) to purchase fish from a person who is not 09 (A) the holder or lessee of a limited entry, interim-use, or 10 landing permit issued under AS 16.43; 11 (B) a fish transporter who is selling the fish as the agent of the 12 holder or lessee of a limited entry, interim-use, or landing permit issued under 13 AS 16.43; or 14 (C) exempt under AS 16.05.660; or 15 (3) to purchase fish from an association other than one to which a 16 permit has been issued under AS 16.05.662. 17 * Sec. 9. AS 16.05.710 is amended by adding a new subsection to read: 18 (e) If proceedings to suspend commercial fishing privileges or licenses under 19 this section are pending against a person, a regional community permit bank 20 established under AS 16.44.010 may not lease the person a permit. 21 * Sec. 10. AS 16.10.265(f) is amended to read: 22 (f) In this section, 23 (1) "hold an entry permit" includes leasing an entry permit under 24 AS 16.44; 25 (2) "individual" means a natural person. 26 * Sec. 11. AS 16.10.455(g) is amended by adding a new paragraph to read: 27 (5) "entry permit holder" includes a lessee of an entry permit under 28 AS 16.44. 29 * Sec. 12. AS 16.10.560 is amended by adding a new paragraph to read: 30 (3) "persons who hold entry permits" and "persons holding entry 31 permits" include lessees of entry permits under AS 16.44.
01 * Sec. 13. AS 16.43.140(a) is amended to read: 02 (a) A person may not operate gear in the commercial taking of fishery 03 resources without a valid entry permit or a valid interim-use permit issued by the 04 commission. For purposes of this section, a person leasing an entry permit under 05 AS 16.44 is the holder of that permit. 06 * Sec. 14. AS 16.43.150(a) is amended to read: 07 (a) Except as may be otherwise provided under AS 16.43.270(d), an entry 08 permit authorizes the permittee, or a person leasing the permit under AS 16.44, to 09 operate a unit of gear within a specified fishery. 10 * Sec. 15. AS 16.43.150(g) is amended to read: 11 (g) Except as provided in AS 16.10.333 - 16.10.338, AS 16.44, AS 44.81.215, 12 44.81.225, and 44.81.231 - 44.81.250, an entry permit may not be 13 (1) pledged, mortgaged, leased, or encumbered in any way; 14 (2) transferred with any retained right of repossession or foreclosure, 15 or on any condition requiring a subsequent transfer; or 16 (3) attached, distrained, or sold on execution of judgment or under any 17 other process or order of any court, except as provided in AS 16.43.170(g) and (h). 18 * Sec. 16. AS 16.43.150(h) is amended to read: 19 (h) Unless an entry permit holder has expressed a contrary intent in a will that 20 is probated, the commission shall, upon the death of the permit holder, transfer the 21 permanent permit by right of survivorship directly to the surviving spouse or, if no 22 spouse survives, to a natural person or a regional community permit bank 23 established under AS 16.44.010 designated by the permit holder on a form provided 24 by the commission. If no spouse survives and if the person or regional community 25 permit bank designated on the form, if any, does not survive or continue to exist, the 26 permit passes as part of the permit holder's estate. A designation under this subsection 27 must be acknowledged before a person authorized to administer an oath under 28 AS 09.63.010 or must be witnessed by two persons who are qualified under 29 AS 13.12.505 to witness the will of the permit holder. Except as provided in 30 AS 16.10.333 - 16.10.337, AS 44.81.215, and 44.81.231 - 44.81.250, the permit is 31 exempt from the claims of creditors of the estate.
01 * Sec. 17. AS 16.43.150 is amended by adding a new subsection to read: 02 (j) Subsections (h) and (i) of this section do not apply to a person leasing an 03 entry permit from a regional community permit bank under AS 16.44. 04 * Sec. 18. AS 16.43.160(d) is amended to read: 05 (d) The holder of a permit whose household income, assets, and financial 06 resources fall within the eligibility standards for the food stamp program under 7 07 U.S.C. 2011 - 2025, as amended, is subject to an annual base fee for the issuance or 08 renewal of an entry permit or an interim-use permit that is equal to 50 percent of the 09 annual base fee that the permit holder would otherwise pay under (c) of this section. In 10 addition to the reduced annual base fee under this subsection, a nonresident who 11 qualifies for a reduced fee under this subsection shall pay the annual nonresident 12 surcharge established under (c) of this section. This subsection does not apply to a 13 person leasing an entry permit under AS 16.44. 14 * Sec. 19. AS 16.43.170(a) is amended to read: 15 (a) Except as provided in AS 16.10.333 - 16.10.338, AS 16.44, and [IN] 16 AS 44.81.231 - 44.81.250, entry permits and interim-use permits are transferable only 17 through the commission as provided in this section and AS 16.43.180 and under 18 regulations adopted by the commission. An involuntary transfer of an entry permit in a 19 manner inconsistent with the statutes of this state and the regulations of the 20 commission is void. 21 * Sec. 20. AS 16.43.330(a) is amended to read: 22 (a) When the number of outstanding entry permits for a fishery is less than the 23 optimum number established under AS 16.43.290, the commission shall issue new 24 entry permits to applicants who are presently able to engage actively in the fishery or, 25 subject to AS 16.44.060(a), to regional community permit banks established 26 under AS 16.44.010 until the optimum number is reached. 27 * Sec. 21. AS 16.43.855 is amended by adding a new subsection to read: 28 (e) If points are assessed against a lessee of a permit under AS 16.44, a notice 29 of the assessment of points under (a) of this section shall also be provided to the 30 regional community permit bank that is the legal owner of the permit. 31 * Sec. 22. AS 16.43.860(b) is amended to read:
01 (b) A permit holder whose privilege of obtaining a commercial fishing permit 02 for a salmon fishery is suspended under AS 16.43.850 - 16.43.895 may not 03 (1) engage in the salmon fishery under a crewmember license; [OR] 04 (2) lease an entry permit for the salmon fishery under AS 16.44; or 05 (3) lease or rent the permit holder's interest in a boat to another person 06 if the boat would be used in the salmon fishery for which the permit holder's fishing 07 privileges are suspended. 08 * Sec. 23. AS 16.43.895(4) is amended to read: 09 (4) "permit holder" includes a lessee of a commercial fishing permit 10 under AS 16.44, the holder of a commercial fishing permit as the result of an 11 emergency transfer, an applicant for a commercial fishing permit if the applicant's 12 commercial fishing permit was suspended under AS 16.43.850 - 16.43.895, and a 13 person whose privilege of obtaining a commercial fishing permit for a fishery is 14 suspended under AS 16.43.850 - 16.43.895. 15 * Sec. 24. AS 16.43.990(7) is amended to read: 16 (7) "person" means a natural person or a regional community permit 17 bank established under AS 16.44.010 [; "PERSON" DOES NOT INCLUDE A 18 CORPORATION, COMPANY, PARTNERSHIP, FIRM, ASSOCIATION, 19 ORGANIZATION, JOINT VENTURE, TRUST, SOCIETY, OR OTHER LEGAL 20 ENTITY OTHER THAN A NATURAL PERSON]; 21 * Sec. 25. AS 16 is amended by adding a new chapter to read: 22 Chapter 44. Regional Community Permit Banks. 23 Sec. 16.44.010. Establishment of regional community permit bank. (a) The 24 department shall establish a regional community permit bank for a region established 25 under (b) of this section if 26 (1) at least two-thirds of the municipalities within the permit bank 27 region, acting jointly, petition the department to establish a permit bank for the region; 28 and 29 (2) the department finds that establishing a permit bank in that region 30 would serve the purposes of 31 (A) preventing economic distress among fishermen and those
01 persons and communities dependent on fishermen; 02 (B) improving access to the state's fisheries for residents by 03 creating opportunities for those residents whose lack of alternative income 04 sources makes it difficult to acquire the assets and credit history necessary to 05 enter a state fishery; 06 (C) empowering communities to achieve economic self- 07 sufficiency and alleviate the economic and social ills, including high levels of 08 unemployment, loss of local businesses, and diminution of the communities' 09 tax base, that result from the loss of access to commercial, subsistence, and 10 recreational fisheries; and 11 (D) enabling entry into the state's commercial fisheries by 12 residents to mitigate the harm caused by the lack of economic opportunities in 13 some fishing communities that has resulted in a loss of economic and cultural 14 vitality. 15 (b) The department, in consultation with the Department of Fish and Game, 16 shall establish permit bank regions. The department may modify or change the 17 boundaries, or merge or subdivide the regions, if, in the judgment of the department, 18 doing so will increase the social and economic cohesiveness of permit bank regions. 19 (c) Each permit bank is a public corporation and instrumentality of the state 20 within the Department of Commerce, Community, and Economic Development. The 21 exercise by a permit bank of the powers conferred under this chapter is considered to 22 be for a public purpose. For administrative purposes, the permit banks are in the 23 department, but each permit bank has a separate and independent legal existence from 24 the state and shall be governed by a board established under AS 16.44.020. 25 (d) The department may conduct an annual audit of a permit bank established 26 under this section. The department may also conduct supplementary audits as it 27 considers necessary. The results of an audit under this subsection is a public record 28 under AS 40.25.110. 29 (e) The department may dissolve a permit bank if the permit bank becomes 30 insolvent. However, nothing in this subsection precludes the department from 31 establishing another permit bank in that region under (a) of this section. The
01 department shall adopt regulations to implement this subsection. 02 Sec. 16.44.020. Regional community permit bank board; meetings; 03 location. (a) Each permit bank shall be governed by a board of directors, composed of 04 members appointed under (b) of this section. 05 (b) Each municipality wholly or partially located within the permit bank 06 region established by the department under AS 16.44.010(b) may appoint one person 07 to serve as a member of the permit bank board. Subject to AS 16.44.050(a)(2), a single 08 entity or village council in each unincorporated community wholly or partially within 09 a permit bank region selected by the board may also appoint one person to serve as a 10 member of the permit bank board. A person appointed under this section must be a 11 resident of the municipality or unincorporated community from which the person was 12 appointed. 13 (c) Except as provided under AS 16.44.050(a)(2), a member of the board of a 14 permit bank shall serve for a term of three years. A member shall hold office for the 15 term of the appointment and until a successor has been appointed and qualified. A 16 member is eligible for reappointment. A vacancy on a board occurring other than by 17 expiration of term shall be filled in the same manner as the original appointment but 18 for the unexpired term only. Terms must be staggered so that one-third, or as close to 19 one-third as practicable, of the terms expire each year. 20 (d) A majority of the members of a board constitutes a quorum for the 21 transaction of business and the exercise of the powers and duties of the board except 22 as provided under AS 16.44.050(a)(2) for 23 (1) certain board actions relating to the board's membership; and 24 (2) submitting a petition to the commissioner under AS 16.44.060(e). 25 (e) A member of a board may not lease an entry permit from the permit bank. 26 (f) The members of a board shall annually elect from among themselves a 27 chair and vice-chair and other board officers as may be provided in the bylaws of the 28 permit bank. The members of the board may elect to create an executive governance 29 committee and provide that committee some of the board's powers under this chapter. 30 (g) The board of each permit bank may hire a manager who is qualified to 31 assist the board in carrying out the provisions of this chapter. If a manager is hired, the
01 manager shall receive reasonable compensation. A manager may not lease an entry 02 permit from the permit bank. 03 (h) A permit bank may share administrative resources, including 04 administrative staff, with other permit banks established under this chapter if the 05 sharing arrangement is approved by the board of each participating permit bank. A 06 permit bank may also share administrative resources and administrative staff with a 07 regional association qualified under AS 16.10.380(a), an Alaska Native village or 08 village regional corporation established under 43 U.S.C. 1606 (Alaska Native Claims 09 Settlement Act), a regional development organization as defined in AS 44.33.896, or 10 another entity created for a purpose related to commercial fishing or service in the 11 permit bank region. 12 (i) Unless a permit bank is sharing administrative resources with one or more 13 other permit banks under (h) of this section, a permit bank shall be administratively 14 located in the municipality in its region with the greatest number of active entry 15 permits per capita on January 1, 2016. 16 Sec. 16.44.030. Administrative expenses, compensation, and fees due the 17 department. (a) A member of a permit bank board may be provided reasonable 18 compensation. However, the compensation may not exceed the median rate of 19 compensation provided to the elected members of the municipal governments within 20 the permit bank region. 21 (b) The administrative expenses of a permit bank must be reasonable and 22 minimized in order to enhance the ability of the permit bank to acquire limited entry 23 permits and to return maximum benefit to the persons and region served by the permit 24 bank. 25 (c) The department may adopt regulations relating to the administrative 26 expenses of, and compensation provided by, a permit bank. 27 (d) The commissioner shall assess permit bank fees for the department's actual 28 expenses necessarily incurred by the department in connection with its duties under 29 this chapter relating to the permit bank. 30 Sec. 16.44.040. Exemption from taxation. (a) Except for fees levied under 31 AS 16.43.160, the real and personal property of a permit bank organized under this
01 chapter and its assets, income, and receipts are declared to be devoted to an essential 02 public and governmental function and purpose, and the property, assets, income, 03 receipts, and other interests of the permit bank are exempt from taxes and special 04 assessments of the state or a political subdivision of the state, including municipalities, 05 school districts, public utility districts, and other governmental units. 06 (b) Nothing in this section relieves a person leasing an entry permit from a 07 permit bank from applicable fees, taxes, or assessments. 08 Sec. 16.44.050. Powers and duties of regional community permit banks. (a) 09 In addition to all powers necessary to carry out the purposes of this chapter, a permit 10 bank may 11 (1) adopt, amend, and repeal bylaws for its organization, management 12 of its internal affairs, and the conduct of its business consistent with the provisions of 13 this chapter; 14 (2) if a two-thirds majority of the full membership of the board 15 appointed from the municipalities in the region affirmatively vote to approve the 16 action, expand or reduce the membership of the permit bank's board of directors by 17 allowing or prohibiting individuals from unincorporated communities in the region to 18 serve as directors under AS 16.44.020(b); 19 (3) borrow funds for the acquisition of entry permits; 20 (4) subject to the limitations of this chapter, acquire, lease, or sell entry 21 permits for fisheries within the permit bank region; 22 (5) accept gifts or grants from a federal agency or an agency or 23 instrumentality of the state, a municipality, a private organization, or another source, 24 including the transfer of an entry permit for a regional fishery or a gift or grant for the 25 acquisition of a specific entry permit or entry permit within a specific fishery located 26 in the permit bank region; 27 (6) subject to AS 16.44.070, lease entry permits to individuals 28 qualified under AS 16.44.080 on conditions that the board considers appropriate that 29 may include terms that allow a lessee to purchase a lease or permit and terminate a 30 lease upon default of a lessee; and 31 (7) after a permit bank acquires the maximum number of entry permits
01 allowed under AS 16.44.060(a), use revenue and other funds to support programs and 02 projects that benefit commercial fishermen within the permit bank region. 03 (b) A permit bank shall 04 (1) lease entry permits by competitive bid under (c) of this section to 05 individuals qualified under AS 16.44.080; 06 (2) establish criteria for leasing entry permits acquired by the permit 07 bank that maintain the solvency and financial strength of the permit bank; 08 (3) subject to legislative appropriation, to the greatest extent 09 practicable, invest revenue from the lease of limited entry permits in the purchase of 10 further entry permits up to the limits provided under AS 16.44.060(a); and 11 (4) prepare and submit a comprehensive annual report to the 12 department that includes 13 (A) a summary of the permit bank's revenue, assets, 14 expenditures, operations, and actions under this section during the preceding 15 year; 16 (B) the compensation of the manager, if any, and the directors 17 of the permit bank; and 18 (C) the lease terms, including lease costs for entry permits held 19 by the permit bank. 20 (c) In leasing permits by competitive bid under (b)(1) of this section, a permit 21 bank shall award the leases after considering factors that include the 22 (1) purposes for which the department established the permit bank 23 under AS 16.44.010(a); 24 (2) degree of economic hardship posed to the applicant and the 25 applicant's community by not being able to gain entry into the fishery for which the 26 leased permit is for; 27 (3) availability of alternative occupations and sources of income in the 28 community of an applicant; and 29 (4) historical dependence of an applicant, the applicant's family, and 30 the applicant's community on a particular fishery. 31 Sec. 16.44.055. Permit ownership; leases; sales; proceeds. An entry permit
01 acquired by a permit bank under this chapter is the property of the department; 02 however the permit bank may lease or sell a permit, subject to the approval of the 03 commissioner. Leasing fees and proceeds from the sale of permits, subject to 04 legislative appropriation, and less any fees due the department under AS 16.44.030(d), 05 shall be used to pay for a permit bank's operations and to finance the purchase of 06 additional permits. A permit bank may retain from the proceeds of its actions the funds 07 that the commissioner determines to be necessary and reasonable to the permit bank's 08 purposes under AS 16.44.010. 09 Sec. 16.44.060. Acquisition and possession of entry permits by regional 10 community permit bank. (a) A permit bank may not acquire an entry permit for a 11 fishery that is not in the permit bank's region. A permit bank may not hold more than 12 four percent of the entry permits issued for a fishery in the permit bank region, 13 rounded up to the nearest whole number. If there are 50 or fewer permits issued for a 14 fishery in the permit bank region, not more than two entry permits for that fishery may 15 be held by the permit bank. 16 (b) Except as provided in (d) of this section, after a permit bank has acquired 17 10 entry permits, the permit bank may not acquire further permits unless the additional 18 permits make the portfolio of entry permits held by the permit bank a better 19 representation of the permits issued for all fisheries in the permit bank region. 20 However, this subsection does not prohibit a permit bank from acquiring an additional 21 permit, if the acquisition of any single permit would make the portfolio of entry 22 permits held by the permit bank less representative of the permits issued for the 23 fisheries in the permit bank region. 24 (c) Subject to (d) of this section, the department shall ensure that a portfolio of 25 entry permits held by a permit bank complies with the requirements of this section. 26 The department may prevent a permit bank from acquiring further entry permits if the 27 department finds that a portfolio of entry permits does not meet the requirements of 28 this section. 29 (d) Notwithstanding (b) of this section, a permit bank that holds 10 entry 30 permits in its portfolio may acquire further permits that do not make the portfolio of 31 entry permits held by the permit bank a better representation of all the permits issued
01 in the permit bank region if 02 (1) a two-thirds majority of the full membership of the board approve, 03 and the board submits, a petition to the commissioner requesting that the requirements 04 of (b) of this section be waived for the purchase of an entry permit or permits by the 05 permit bank; and 06 (2) the commissioner finds that issuing a waiver will assist the permit 07 bank in achieving the purposes provided under AS 16.44.010(a). 08 Sec. 16.44.070. Lease terms for entry permits held by a regional 09 community permit bank. (a) Subject to (b) of this section, a permit bank shall 10 establish lease terms for entry permits held by the permit bank in a manner that is 11 consistent with the purposes provided by AS 16.44.010(a). 12 (b) A lease term for an entry permit held by a permit bank may not exceed six 13 years, and an individual may not lease an entry permit or permits for the same fishery 14 for a cumulative period of more than six years, regardless of whether the lease years 15 are consecutive. 16 (c) An entry permit held by a permit bank may not be subleased by the lessee. 17 (d) Subject to AS 16.43.170 and 16.43.180, the department shall adopt 18 regulations providing for the temporary emergency transfer of a leased entry permit to 19 another individual, if that individual is also qualified under AS 16.44.080, when 20 illness, disability, death, required military or government service, or other unavoidable 21 hardship prevents the lessee from participating in the fishery. Unless the department 22 finds good cause for different standards, regulations adopted by the department under 23 this subsection shall be consistent with the standards adopted by the commission under 24 AS 16.43.180 for emergency transfers. 25 (e) Subject to (a) of this section, AS 16.43.170(a), and the approval of the 26 commissioner, a permit bank may include terms in a lease that provide the lessee an 27 option to purchase the leased permit. 28 Sec. 16.44.080. Qualified lessees. (a) A permit bank may lease an entry permit 29 only to an individual who is a resident of the state. An applicant for the lease of an 30 entry permit from a permit bank under this chapter shall maintain a domicile in the 31 state and may not have received residency or a benefit based on residency from
01 another state. 02 (b) A permit bank may not lease a permit to an individual who already holds a 03 limited entry or interim-use permit for the same fishery as the leased permit. 04 (c) When a person no longer maintains a domicile in the state, the person is no 05 longer eligible to lease an entry permit, and a permit bank may terminate a lease held 06 by the person. 07 (d) If proceedings are pending to suspend an individual's commercial fishing 08 privileges, the individual is not eligible to lease an entry permit under this chapter. 09 (e) In this section, "domicile" means the true and permanent home of an 10 individual from which the individual has no present intention of moving and to which 11 the individual intends to return whenever the individual is away. 12 Sec. 16.44.099. Definitions. In this chapter, 13 (1) "board" means the board of a regional community permit bank; 14 (2) "commission" means the Alaska Commercial Fisheries Entry 15 Commission; 16 (3) "commissioner" means the commissioner of commerce community, 17 and economic development; 18 (4) "department" means the Department of Commerce, Community, 19 and Economic Development unless specifically provided otherwise; 20 (5) "entry permit" means a commercial fishing entry permit issued 21 under AS 16.43; 22 (6) "fishery" has the meaning given in AS 16.05.940; 23 (7) "permit bank" means a regional community permit bank 24 established under AS 16.44.010. 25 * Sec. 26. AS 39.25.110(11) is amended to read: 26 (11) the officers and employees of the following boards, commissions, 27 and authorities: 28 (A) [REPEALED] 29 (B) Alaska Permanent Fund Corporation; 30 (C) Alaska Industrial Development and Export Authority; 31 (D) Alaska Commercial Fisheries Entry Commission;
01 (E) Alaska Commission on Postsecondary Education; 02 (F) Alaska Aerospace Corporation; 03 (G) [REPEALED] 04 (H) Alaska Gasline Development Corporation and subsidiaries 05 of the Alaska Gasline Development Corporation; 06 (I) a regional community permit bank established under 07 AS 16.44.010; 08 * Sec. 27. AS 39.50.200(b) is amended by adding a new paragraph to read: 09 (65) the board of directors of a regional community permit bank 10 (AS 16.44.010). 11 * Sec. 28. AS 43.76.015(f) is amended to read: 12 (f) In this section, "eligible interim-use permit and entry permit holder" means 13 an individual who, 90 days before the date ballots must be postmarked to be counted 14 in an election under this section, is listed in the records of the Alaska Commercial 15 Fisheries Entry Commission as the legal owner or, under AS 16.44, the lessee of an 16 interim-use permit or an entry permit that [WHICH] authorizes the individual to fish 17 commercially in an administrative area established by the Alaska Commercial 18 Fisheries Entry Commission under AS 16.43.200, which is included, in whole or in 19 part, in the region in which the election is held. 20 * Sec. 29. AS 43.76.020 is amended by adding a new subsection to read: 21 (c) In this section, "eligible interim-use permit and entry permit holder" has 22 the meaning given in AS 43.76.015. 23 * Sec. 30. AS 43.76.040 is amended to read: 24 Sec. 43.76.040. Definitions [DEFINITION]. In AS 43.76.001 - 43.76.040, 25 unless the context otherwise requires, 26 (1) "buyer" means a person who acquires possession of salmon from 27 the person who caught the salmon regardless of whether there is an actual sale of the 28 salmon but excluding a transfer to a person engaged solely in interstate transportation 29 of goods for hire; 30 (2) "person holding a limited entry permit" means an individual 31 who is the legal owner or, under AS 16.44, the lessee of a commercial fishing
01 entry permit issued by the Alaska Commercial Fisheries Entry Commission 02 under AS 16.43. 03 * Sec. 31. AS 43.76.230(g) is amended to read: 04 (g) In this section, "eligible interim-use permit and entry permit holder" means 05 an individual who, 90 days before the date ballots must be postmarked to be counted 06 in an election under this section, is listed in the records of the Alaska Commercial 07 Fisheries Entry Commission as the legal holder or, under AS 16.44, the lessee of an 08 interim-use permit for salmon fishing gear or an entry permit for salmon fishing gear 09 that authorizes the individual to fish commercially in the salmon fishery for which the 10 salmon fishery assessment is to be approved, amended, or terminated. 11 * Sec. 32. AS 43.76.280 is amended by adding a new paragraph to read: 12 (8) "eligible permit holders" means individuals who are listed in the 13 records of the Alaska Commercial Fisheries Entry Commission as the legal owners or, 14 under AS 16.44, the lessees of entry permits for salmon fishing gear. 15 * Sec. 33. AS 43.76.300 is amended to read: 16 Sec. 43.76.300. Permit buy-back assessment. A person holding or, under 17 AS 16.44, leasing a limited entry permit or interim-use permit under AS 16.43 for a 18 fishery subject to a permit buy-back assessment established by the Alaska Commercial 19 Fisheries Entry Commission under AS 16.43.310 shall pay the permit buy-back 20 assessment at the rate established by the commission on the value, as defined in 21 AS 43.75.290, of fish that the person removes from the state or transfers to a buyer in 22 the state under the authority conferred by the limited entry permit or interim-use 23 permit. The buyer shall collect the permit buy-back assessment at the time the fish is 24 acquired by the buyer. 25 * Sec. 34. AS 43.76.370(i) is amended to read: 26 (i) In this section, "eligible interim-use permit and entry permit holder" means 27 an individual who, 90 days before the date ballots must be postmarked to be counted 28 in an election under this section, is listed in the records of the Alaska Commercial 29 Fisheries Entry Commission as the legal owner or, under AS 16.44, the lessee of an 30 interim-use permit or an entry permit that authorizes the individual to operate 31 commercial fishing gear in the fishery that is or will be subject to the seafood
01 development tax that is the subject of the election. 02 * Sec. 35. AS 43.76.375 is amended by adding a new subsection to read: 03 (c) In this section, "eligible interim-use permit and entry permit holders" 04 means individuals who are listed in the records of the Alaska Commercial Fisheries 05 Entry Commission as the legal owners or, under AS 16.44, the lessees of interim-use 06 permits or entry permits that authorize the individuals to operate commercial fishing 07 gear in a fishery that is or will be subject to the seafood development tax that is the 08 subject of an election under this section. 09 * Sec. 36. AS 43.76.399 is amended by adding a new paragraph to read: 10 (5) "person holding a limited entry permit" means an individual who is 11 the legal owner or, under AS 16.44, the lessee of a commercial fishing entry permit 12 issued by the Alaska Commercial Fisheries Entry Commission under AS 16.43. 13 * Sec. 37. AS 44.33.020 is amended by adding a new paragraph to read: 14 (46) carry out its functions and duties under AS 16.44; 15 * Sec. 38. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 INITIAL DIRECTORS OF REGIONAL COMMUNITY PERMIT BANKS. (a) 18 Subject to AS 16.44.020(c), added by sec. 25 of this Act, the term of office of each initial 19 director of a regional community permit bank shall be determined by lot. 20 (b) Notwithstanding AS 16.44.050(a)(2), added by sec. 25 of this Act, the initial 21 directors of a regional community permit bank may include persons appointed by the entities 22 or village councils in each unincorporated community in the community permit bank region 23 established by the Department of Commerce, Community, and Economic Development under 24 AS 16.44.010(b), added by sec. 25 of this Act, if the municipalities in that region request in a 25 petition submitted under AS 16.44.010(a), added by sec. 25 of this Act, that the membership 26 of the board of directors for the regional community permit bank in that region include 27 persons appointed by the entities and village councils selected by the region's municipalities 28 to represent the unincorporated communities in the region. 29 * Sec. 39. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 ESTABLISHMENT AND NAMING OF PERMIT BANK REGIONS. When initially
01 establishing the boundaries of community permit bank regions under AS 16.44.010(b), added 02 by sec. 25 of this Act, the Department of Commerce, Community, and Economic 03 Development shall, in consultation with the Department of Fish and Game, divide the land 04 area of the state into separate permit bank regions using, to the extent practical, the boundaries 05 of the commercial fishing administrative areas established by the Alaska Commercial 06 Fisheries Entry Commission under AS 16.43.200, as those boundaries are described in 07 regulation on the effective date of this Act. In establishing the boundaries, the Department of 08 Commerce, Community, and Economic Development shall, to the extent practicable, 09 (1) clearly delineate which communities are in each region; and 10 (2) ensure that a community is not split between regions. 11 * Sec. 40. This Act takes effect January 1, 2017.