HB 188: "An Act relating to commercial fishing entry permits; establishing regional fisheries trusts and fisheries trust regions; relating to commercial fishing entry permits held and leased by a regional fisheries trust; relating to the duties of the Alaska Commercial Fisheries Entry Commission and the Department of Commerce, Community, and Economic Development; and providing for an effective date."
00 HOUSE BILL NO. 188 01 "An Act relating to commercial fishing entry permits; establishing regional fisheries 02 trusts and fisheries trust regions; relating to commercial fishing entry permits held and 03 leased by a regional fisheries trust; relating to the duties of the Alaska Commercial 04 Fisheries Entry Commission and the Department of Commerce, Community, and 05 Economic Development; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 08 to read: 09 LEGISLATIVE FINDINGS. The legislature finds that 10 (1) the state has an ownership and stewardship interest in the fish that 11 originate in state waters and return to spawn; 12 (2) art. VIII, sec. 15, of the Constitution of the State of Alaska, authorizes the 13 state to limit entry into a fishery for the purposes of resource conservation and preventing
01 economic distress among fishermen and those dependent upon them for a livelihood; 02 (3) to promote the conservation of fisheries and the economic health and 03 stability of commercial fishing in the state, the state began limiting entry into commercial 04 fisheries in 1975; 05 (4) since 1975, there has been a substantial and well-documented decline in 06 the number of limited entry permits held by residents of many Alaska communities; 07 (5) the decline in the number of limited entry permits represents lost jobs, lost 08 economic opportunity, and other economic distress among fishermen, their dependents, and 09 their communities; 10 (6) the state has a compelling interest in promoting the economic self- 11 sufficiency of its communities and ensuring their economic health and vitality; 12 (7) fishing is the most viable economic opportunity in numerous Alaska 13 communities; 14 (8) access to commercial fishing opportunities reduces economic distress and 15 contributes to economic self-sufficiency by providing jobs, income, a local tax base, and 16 greater access to subsistence and other fisheries; 17 (9) access to many commercial fisheries in the state requires significant 18 financial resources, posing a barrier to Alaskans desiring to participate in the state's 19 commercial fisheries; 20 (10) state-chartered regional fisheries trusts would empower communities to 21 prevent economic distress among fishermen, promote fisheries conservation, improve access 22 by Alaskans to fisheries, and realize greater economic self-sufficiency by providing a tightly 23 controlled, additional path of entry into the state's commercial fisheries. 24 * Sec. 2. AS 16.05.253(a) is amended to read: 25 (a) The Board of Fisheries may require an individual [A PERSON] who 26 holds a limited entry permit or an interim-use permit under AS 16.43 or who leases a 27 limited entry permit under AS 16.44 to be physically present at a beach or riparian 28 fishing site during the operation of net gear or other stationary fishing gear at the site, 29 except when the permit holder or lessee is at or traveling to or from the location of 30 (1) a sale of fish caught in the gear; or 31 (2) other stationary gear of the permit holder or lessee.
01 * Sec. 3. AS 16.05.480(a) is amended to read: 02 (a) A person engaged in commercial fishing shall obtain a commercial fishing 03 license and shall retain the license in possession and readily available for inspection 04 during fishing operations. An entry permit or interim-use permit entitles the holder, or 05 the lessee of the permit under AS 16.44, to participate as a gear operator in the 06 fishery for which the permit is issued and to participate as a crewmember in any 07 fishery. A crewmember fishing license is not transferable and entitles the holder to 08 participate as a crewmember in any fishery. 09 * Sec. 4. AS 16.05.480(g) is amended to read: 10 (g) A resident engaged in commercial fishing who is 11 years of age or older 11 and who does not hold or lease an entry permit or an interim-use permit shall, except 12 as provided in (i) of this section, pay a fee of $60 for an annual crewmember fishing 13 license. A resident engaged in commercial fishing who is less than 11 years of age and 14 who does not hold or lease an entry permit or an interim-use permit shall pay an 15 annual fee of $5. 16 * Sec. 5. AS 16.05.480(i) is amended to read: 17 (i) Notwithstanding (g) and (h) of this section, a resident or nonresident 18 engaged in commercial fishing who does not hold or lease an entry permit or an 19 interim-use permit may obtain one seven-day crewmember fishing license under this 20 subsection annually. A person who obtains a seven-day license is not eligible for 21 another seven-day license in the same license year; however, if a person who obtains a 22 seven-day license pays the full fee for an annual crewmember fishing license under (g) 23 or (h) of this section during the same license year, the person is entitled to receive a 24 refund of the fee for the seven-day license. The department shall adopt regulations 25 establishing a refund procedure. During the period for which the seven-day license is 26 valid, a person who holds a seven-day license may not engage in fishing with a rod 27 and reel while present on a commercial fishing vessel. The fee for a seven-day license 28 is $30. 29 * Sec. 6. AS 16.05.480(j) is amended to read: 30 (j) In this section, "commercial fishing license" includes an entry permit and 31 an interim-use permit issued under AS 16.43, an entry permit leased from a
01 regional fisheries trust under AS 16.44, and a crewmember fishing license. 02 * Sec. 7. AS 16.05.675(a) is amended to read: 03 (a) A person who does not hold or lease a limited entry permit or interim-use 04 permit issued under AS 16.43 or a fish transporter permit issued under AS 16.05.671 05 may not deliver or land fish in the state unless the person 06 (1) holds a valid federal permit to operate commercial fishing gear in 07 the fishery conservation zone; and 08 (2) has been issued a landing permit by the Alaska Commercial 09 Fisheries Entry Commission. 10 * Sec. 8. AS 16.05.680(a) is amended to read: 11 (a) It is unlawful for a person, or an agent or representative of the person, 12 (1) to employ, in the harvesting, transporting, or purchasing of fish, a 13 fisherman who neither is licensed under AS 16.05.480 nor is the holder or lessee of a 14 permit issued under AS 16.43; 15 (2) to purchase fish from a person who is not 16 (A) the holder or lessee of a limited entry, interim-use, or 17 landing permit issued under AS 16.43; 18 (B) a fish transporter who is selling the fish as the agent of the 19 holder or lessee of a limited entry, interim-use, or landing permit issued under 20 AS 16.43; or 21 (C) exempt under AS 16.05.660; or 22 (3) to purchase fish from an association other than one to which a 23 permit has been issued under AS 16.05.662. 24 * Sec. 9. AS 16.05.710 is amended by adding a new subsection to read: 25 (e) If proceedings to suspend commercial fishing privileges or licenses under 26 this section are pending against a person, a regional fisheries trust established under 27 AS 16.44.010 may not lease the person a permit. 28 * Sec. 10. AS 16.10.265(a) is amended to read: 29 (a) An individual may not, while acting as a fish processor or primary fish 30 buyer, or as an agent, director, officer, member, or employee of a fish processor, of a 31 primary fish buyer, or of a cooperative corporation organized under AS 10.15,
01 intentionally or knowingly make an original purchase of fish from a seller who does 02 not hold 03 (1) a landing permit [, AN ENTRY PERMIT,] or an interim-use 04 permit; [OR] 05 (2) or lease an entry permit under AS 16.44; or 06 (3) a fish transporter permit under AS 16.05.671. 07 * Sec. 11. AS 16.10.455(b) is amended to read: 08 (b) A hatchery permit holder may, by a majority vote of the membership of 09 the hatchery permit holder's board, elect to harvest surplus salmon produced at a 10 facility in a terminal harvest area established for that facility through the common 11 property fishery. At the request of the hatchery permit holder and if the commissioner 12 of fish and game determines that there are no allocative issues involved, and after 13 reasonable consultation with affected commercial fishermen and the organizations of 14 affected commercial fishermen, the commissioner may adopt regulations governing 15 the harvest of surplus salmon in a terminal harvest area when the hatchery permit 16 holder elects to harvest surplus salmon produced at a facility through a common 17 property fishery. The regulations must specify the terms, conditions, and rules under 18 which the common property fishery in the terminal harvest area shall be conducted, 19 including requirements for hold inspections and reporting of harvests and sales of 20 salmon taken in the terminal harvest area. Following adoption of regulations by the 21 department, each year before March 10, the hatchery permit holder's board, by a 22 majority vote of the board's membership, may determine whether the hatchery will 23 operate under the regulations adopted under this subsection during the current calendar 24 year, and shall notify the department if the hatchery intends to operate under the 25 regulations adopted under this subsection. The Board of Fisheries may adopt 26 regulations under AS 16.05.251 regarding a fisheries management plan governing 27 operations under this subsection in a terminal harvest area, including allocation plans. 28 Participation in the fishery must be open to all interim-use permit holders, [AND] 29 entry permit holders, and lessees of entry permits under AS 16.44, who hold or 30 lease permits to operate a type of gear that may be used in the fishing district in which 31 the terminal harvest area is located if that type of gear is authorized by regulation to be
01 used in the terminal harvest area. An interim-use permit holder or an entry permit 02 holder or lessee who takes salmon in a common property fishery in a terminal harvest 03 area may sell the salmon to any fish buyer or processor who is licensed to do business 04 in the state. 05 * Sec. 12. AS 16.10.540(a) is amended to read: 06 (a) An association of individuals [PERSONS] who hold entry permits under 07 AS 16.43 or lease entry permits under AS 16.44, that consists of at least 51 percent 08 of the persons who hold or lease [HOLDING] entry permits and who actively 09 participate in the [PARTICIPATING IN A] fishery to be benefited by a hatchery 10 program, may levy and collect an assessment from among its members for the purpose 11 of securing and repaying a loan made under AS 16.10.510. 12 * Sec. 13. AS 16.43.100(a) is amended to read: 13 (a) To accomplish the purposes set out in AS 16.43.010, the commission shall 14 (1) regulate entry into the commercial fisheries for all fishery resources 15 in the state; 16 (2) establish priorities for the application of the provisions of this 17 chapter to the various commercial fisheries of the state; 18 (3) establish administrative areas suitable for regulating and 19 controlling entry into the commercial fisheries; 20 (4) establish, for all types of gear, the maximum number of entry 21 permits for each administrative area; 22 (5) designate, when necessary to accomplish the purposes of this 23 chapter, particular species for which separate interim-use permits or entry permits will 24 be issued; 25 (6) establish qualifications for the issuance of entry permits; 26 (7) issue entry permits to qualified applicants; 27 (8) issue interim-use permits as provided in AS 16.43.210, 16.43.220, 28 and 16.43.225; 29 (9) establish, for all types of gear, the optimum number of entry 30 permits for each administrative area; 31 (10) administer the buy-back program provided for in AS 16.43.310
01 and 16.43.320 to reduce the number of outstanding entry permits to the optimum 02 number of entry permits; 03 (11) provide for the transfer and reissuance of entry permits to 04 qualified transferees; 05 (12) provide for the transfer and reissuance of entry permits for 06 alternative types of legal gear, in a manner consistent with the purposes of this 07 chapter; 08 (13) establish and administer the collection of the annual fees provided 09 for in AS 16.43.160; 10 (14) administer the issuance of commercial fishing vessel licenses 11 under AS 16.05.490; 12 (15) issue educational entry permits to applicants who qualify under 13 the provisions of AS 16.43.340 - 16.43.390; 14 (16) establish reasonable user fees for services; 15 (17) issue landing permits under AS 16.05.675 and regulations adopted 16 under that section; 17 (18) establish and collect annual fees for the issuance of landing 18 permits that reasonably reflect the costs incurred in the administration and 19 enforcement of provisions of law related to landing permits; 20 (19) establish a moratorium on entry into commercial fisheries as 21 provided in AS 16.43.225; 22 (20) when requested by a regional development organization formed 23 under former AS 44.33.895, provide to the organization, without charge, public 24 information contained in the commission's data with respect to relevant fisheries, 25 including limited fisheries, fishery participants, and limited entry permit holders' 26 harvests and earnings; [AND] 27 (21) administer, when necessary to accomplish the purposes of this 28 chapter, a Bering Sea hair crab fishery vessel permit system under AS 16.43.451 - 29 16.43.521; and 30 (22) ensure that a regional fisheries trust's portfolio of entry 31 permits complies with AS 16.44.060 and block the transfer of an entry permit to a
01 regional fisheries trust if the acquisition of the entry permit by the regional 02 fisheries trust would violate AS 16.44.060. 03 * Sec. 14. AS 16.43.140 is amended to read: 04 Sec. 16.43.140. Permit required. (a) A person may not operate gear in the 05 commercial taking of fishery resources without holding a valid interim-use permit 06 or holding or leasing, under AS 16.44, a valid entry permit [OR A VALID 07 INTERIM-USE PERMIT] issued by the commission. 08 (b) A permit is not required of a crewmember or other person assisting in the 09 operation of a unit of gear engaged in the commercial taking of fishery resources as 10 long as the holder or lessee of the entry permit or the holder of the interim-use permit 11 for that particular unit of gear is at all times present and actively engaged in the 12 operation of the gear. 13 (c) An individual [A PERSON] may hold more than one interim-use or entry 14 permit issued or transferred under this chapter only for the following purposes: 15 (1) fishing more than one type of gear; 16 (2) fishing in more than one administrative area; 17 (3) harvesting particular species for which separate interim-use or 18 entry permits are issued; 19 (4) if authorized by regulations of the commission, fishing an entire 20 unit of gear in a fishery in which the commission has issued entry permits for less than 21 a unit of gear under AS 16.43.270(d); under this paragraph, an individual [A 22 PERSON] may not hold more than two entry permits for a fishery; however, the 23 individual [PERSON] may not 24 (A) fish more than one unit of gear in the fishery; or 25 (B) acquire a second entry permit for the fishery after the 26 individual [PERSON] has acquired an entry permit that authorizes the use of 27 an entire unit of gear in the fishery; 28 (5) consolidation of the fishing fleet for a salmon fishery; however, an 29 individual [A PERSON] may hold not more than two entry permits for a salmon 30 fishery under this paragraph, but the individual [PERSON] who holds two entry 31 permits for a salmon fishery may not engage in fishing under the second entry permit.
01 * Sec. 15. AS 16.43.150(a) is amended to read: 02 (a) Except as may be otherwise provided under AS 16.43.270(d), an entry 03 permit authorizes the permittee, or an individual leasing the permit under 04 AS 16.44, to operate a unit of gear within a specified fishery. 05 * Sec. 16. AS 16.43.150(b) is amended to read: 06 (b) The holder or lessee of an entry permit shall have the permit in possession 07 at all times when engaged in the operation of gear for which it was issued. 08 * Sec. 17. AS 16.43.150(g) is amended to read: 09 (g) Except as provided in AS 16.10.333 - 16.10.338, AS 44.81.215, 44.81.225, 10 and 44.81.231 - 44.81.250, an entry permit may not be 11 (1) leased, except for the lease of a permit held by a regional 12 fisheries trust established under AS 16.44.010; 13 (2) [(1)] pledged, mortgaged, [LEASED,] or encumbered in any way; 14 (3) [(2)] transferred with any retained right of repossession or 15 foreclosure, or on any condition requiring a subsequent transfer; or 16 (4) [(3)] attached, distrained, or sold on execution of judgment or 17 under any other process or order of any court, except as provided in AS 16.43.170(g) 18 and (h). 19 * Sec. 18. AS 16.43.150(h) is amended to read: 20 (h) Unless an entry permit holder has expressed a contrary intent in a will that 21 is probated, the commission shall, upon the death of the permit holder, transfer the 22 permanent permit by right of survivorship directly to the surviving spouse or, if no 23 spouse survives, to a natural person or a regional fisheries trust established under 24 AS 16.44.010 designated by the permit holder on a form provided by the commission. 25 If no spouse survives and if the person or regional fisheries trust designated on the 26 form, if any, does not survive or continue to exist, the permit passes as part of the 27 permit holder's estate. A designation under this subsection must be acknowledged 28 before a person authorized to administer an oath under AS 09.63.010 or must be 29 witnessed by two persons who are qualified under AS 13.12.505 to witness the will of 30 the permit holder. Except as provided in AS 16.10.333 - 16.10.337, AS 44.81.215, and 31 44.81.231 - 44.81.250, the permit is exempt from the claims of creditors of the estate.
01 * Sec. 19. AS 16.43.150 is amended by adding new subsections to read: 02 (j) Subsections (h) and (i) of this section do not apply to a lessee of an entry 03 permit under AS 16.44. 04 (k) A lessee of an entry permit under AS 16.44 has the same use privilege or 05 right in a fishery that is available to an individual holding an entry permit or valid 06 interim-use permit under this chapter. 07 * Sec. 20. AS 16.43.160(d) is amended to read: 08 (d) The holder of a permit whose household income, assets, and financial 09 resources fall within the eligibility standards for the food stamp program under 7 10 U.S.C. 2011 - 2025, as amended, is subject to an annual base fee for the issuance or 11 renewal of an entry permit or an interim-use permit that is equal to 50 percent of the 12 annual base fee that the permit holder would otherwise pay under (c) of this section. In 13 addition to the reduced annual base fee under this subsection, a nonresident who 14 qualifies for a reduced fee under this subsection shall pay the annual nonresident 15 surcharge established under (c) of this section. This subsection does not apply to a 16 lessee of an entry permit under AS 16.44. 17 * Sec. 21. AS 16.43.170(a) is amended to read: 18 (a) Except as provided in AS 16.10.333 - 16.10.338 and [IN] AS 44.81.231 - 19 44.81.250, entry permits and interim-use permits are transferable only through the 20 commission as provided in this section and AS 16.43.180 and under regulations 21 adopted by the commission. For purposes of this section, the lease of a permit held 22 by a regional fisheries trust under AS 16.44 is not a transfer of the permit. An 23 involuntary transfer of an entry permit in a manner inconsistent with the statutes of 24 this state and the regulations of the commission is void. 25 * Sec. 22. AS 16.43.170(b) is amended to read: 26 (b) Except as provided in (e) of this section, the holder of an entry permit may 27 transfer the permit to another person, to a regional fisheries trust under AS 16.44, or 28 to the commission upon 60 days' [DAYS] notice of intent to transfer under 29 regulations adopted by the commission. Not [NO] sooner than 60 days nor later than 30 12 months from the date of notice to the commission, the holder of an entry permit 31 may transfer the permit. If the proposed transferee, other than the commission or a
01 regional fisheries trust, can demonstrate the present ability to participate actively in 02 the fishery, and the transfer does not violate any provision of this chapter or 03 regulations adopted under this chapter, and if a certificate for the permit under 04 AS 16.10.333(b)(1) - (2), 16.10.338, or AS 44.81.231(a) is not in effect, the 05 commission shall approve the transfer and reissue the entry permit to the transferee if 06 [PROVIDED THAT] neither party is prohibited by law from participating in the 07 transfer. 08 * Sec. 23. AS 16.43.330(a) is amended to read: 09 (a) When the number of outstanding entry permits for a fishery is less than the 10 optimum number established under AS 16.43.290, the commission shall issue new 11 entry permits to applicants who are presently able to engage actively in the fishery or, 12 subject to AS 16.44.060(a), to regional fisheries trusts established under 13 AS 16.44.010 until the optimum number is reached. 14 * Sec. 24. AS 16.43.850 is amended to read: 15 Sec. 16.43.850. Point system. (a) For the purpose of identifying frequent 16 violators of commercial fishing laws in salmon fisheries, the commission shall adopt 17 regulations establishing a uniform system for the suspension of commercial salmon 18 fishing privileges by assigning demerit points for convictions for violations of 19 commercial fishing laws in salmon fisheries that are reported to the commission under 20 AS 16.43.880. The commission shall assess demerit points against an individual who 21 holds an entry permit or interim-use permit or who leases an entry permit under 22 AS 16.44 [A PERMIT HOLDER] for each violation of commercial fishing laws in a 23 salmon fishery in accordance with (b) and (c) of this section. The commission shall 24 assess points against an individual holding or leasing a permit [HOLDER] for the 25 salmon fishery in which the violation of commercial fishing laws occurred. 26 (b) The commission shall assess demerit points against an individual who 27 holds or leases a permit [HOLDER] for a conviction of a violation of commercial 28 fishing laws in a salmon fishery under AS 16.05.722, 16.05.723, 16.05.831; 29 AS 16.10.055, 16.10.070 - 16.10.090, 16.10.100, 16.10.110, 16.10.120, 16.10.200 - 30 16.10.220, and 16.10.760 - 16.10.790 for the following violations in accordance with 31 this schedule:
01 (1) fishing in closed waters ................. 6 points; 02 (2) fishing during closed season or period ....... 6 points; 03 (3) fishing with more than the legal amount of gear . 4 points; 04 (4) fishing with gear not allowed in fishery ...... 6 points; 05 (5) fishing before expiration of transfer period .... 6 points; 06 (6) interfering with commercial fishing gear ..... 4 points; 07 (7) fishing with more than the legal amount of 08 gear on vessel ................................... 4 points; 09 (8) improper operation of fishing gear ......... 4 points; 10 (9) permit holder or permit lessee not present when required 4 points; 11 (10) fishing with underlength or overlength vessel .. 6 points; 12 (11) wanton waste of fishery resources ......... 4 points. 13 (c) Notwithstanding (b) of this section, if the [A PERMIT HOLDER'S] first 14 conviction of a violation of commercial fishing laws in a salmon fishery in a 36-month 15 period for an individual who holds or leases a permit is a conviction under 16 AS 16.05.722, the number of demerit points assessed against the permit holder or the 17 permit lessee for the violation must be one-half of the points assessed for the violation 18 under (b) of this section. 19 (d) The commission shall suspend the [A PERMIT HOLDER'S] commercial 20 salmon fishing privileges of a permit holder or lessee for a salmon fishery for a 21 period of 22 (1) one year if the permit holder or lessee accumulates 12 or more 23 points during any consecutive 36-month period as a result of convictions for violations 24 of commercial fishing laws in the salmon fishery; 25 (2) two years if the permit holder or lessee accumulates 16 or more 26 points during any consecutive 36-month period as a result of convictions for violations 27 of commercial fishing laws in the salmon fishery; 28 (3) three years if the permit holder or lessee accumulates 18 or more 29 points during any consecutive 36-month period as a result of convictions for violations 30 of commercial fishing laws in the salmon fishery. 31 * Sec. 25. AS 16.43.855(a) is amended to read:
01 (a) Notice of each assessment of points shall be given to the permit holder or 02 lessee. Notice shall also be given to the permit holder or lessee before the expiration 03 of a suspension of commercial salmon fishing privileges under AS 16.43.850(d) that 04 subsequent violations of commercial fishing laws in the salmon fishery may result in 05 further suspensions of the permit. The notice may be given by first class mail. 06 * Sec. 26. AS 16.43.855(c) is amended to read: 07 (c) The assessment of points against a permit holder or lessee by the 08 commission under AS 16.43.850 - 16.43.895 is in addition to, and not in substitution 09 for, other provisions of this title and is not a substitute for any penalty imposed by a 10 court. 11 * Sec. 27. AS 16.43.855 is amended by adding a new subsection to read: 12 (e) If the commission assesses points under (a) of this section against a lessee 13 of a permit, the commission shall give the regional fisheries trust that leased the permit 14 notice of the assessment of points. 15 * Sec. 28. AS 16.43.860 is amended to read: 16 Sec. 16.43.860. Suspension. (a) A permit holder or lessee whose commercial 17 salmon fishing privileges for a salmon fishery are suspended under AS 16.43.850 - 18 16.43.895 may not obtain an entry permit or interim-use permit for that salmon fishery 19 during the period of the suspension of the privileges. During the period for which the 20 permit holder's or lessee's [PERMIT HOLDER'S] privilege to obtain an entry permit 21 or interim-use permit for a salmon fishery is suspended under this section, the 22 commission may not issue a permit card to the permit holder or lessee for that fishery. 23 (b) A permit holder or lessee whose privilege of obtaining a commercial 24 fishing permit for a salmon fishery is suspended under AS 16.43.850 - 16.43.895 may 25 not 26 (1) engage in the salmon fishery under a crewmember license; [OR] 27 (2) lease an entry permit for the salmon fishery under AS 16.44; or 28 (3) lease or rent the individual's [PERMIT HOLDER'S] interest in a 29 boat to another person if the boat would be used in the salmon fishery for which the 30 permit holder's or lessee's fishing privileges are suspended. 31 (c) If, during the period for which the commission has suspended the [A
01 PERMIT HOLDER'S] commercial fishing privileges of a permit holder or lessee for 02 a salmon fishery [ARE SUSPENDED], the commission establishes a limited entry 03 system for the salmon fishery, the permit holder or lessee shall be eligible to obtain an 04 entry permit for that fishery to the extent that the permit holder or lessee qualifies for 05 the entry permit under regulations adopted by the commission. If the permit holder or 06 lessee qualifies for an entry permit for the fishery, the commission shall withhold 07 issuance of the entry permit until the period of the suspension imposed under 08 AS 16.43.850 - 16.43.895 has expired. 09 (d) The commission may not transfer a commercial fishing permit for a 10 salmon fishery under an emergency transfer under AS 16.43.180 if, at the time of the 11 application for the emergency transfer, the permit holder's commercial salmon fishing 12 privileges of the permit holder or lessee for the salmon fishery have been suspended. 13 * Sec. 29. AS 16.43.960(a) is amended to read: 14 (a) The commission may revoke, suspend, or transfer all entry or interim-use 15 permits, vessel entry permits, or vessel interim-use permits held by a person or entity 16 who knowingly provides or assists in providing false information, or fails to correct 17 false information provided to the commission for the purpose of obtaining a benefit for 18 self or another, including the issuance, renewal, duplication, [OR] transfer, or lease 19 under AS 16.44 of an entry or interim-use permit, vessel license, vessel entry permit, 20 or vessel interim-use permit. The commission may also require a regional fisheries 21 trust to terminate the lease of a permit to a person who knowingly provides or 22 assists in providing false information or fails to correct false information 23 provided to the commission for the purpose of obtaining a benefit for self or 24 another. The commission may suspend, as appropriate, that person's, [OR] entity's, or 25 lessee's eligibility to hold or lease an entry or interim-use permit, vessel entry permit, 26 or vessel interim-use permit for a period not to exceed three years, and may impose an 27 administrative fine of not more than $5,000 on the person or entity whose officers, 28 employees, representatives, or agents knowingly provide or assist in providing false 29 information, or fail to correct false information provided, to the commission for the 30 purpose of obtaining a benefit. 31 * Sec. 30. AS 16.43.990(3) is amended to read:
01 (3) "entity" means a corporation, company, partnership, firm, 02 association, organization, joint venture, trust, society, regional fisheries trust under 03 AS 16.44, or other legal entity other than a natural person; 04 * Sec. 31. AS 16 is amended by adding a new chapter to read: 05 Chapter 44. Regional Fisheries Trusts. 06 Sec. 16.44.010. Establishment and purpose of a regional fisheries trust. (a) 07 A municipality or municipalities may establish a regional fisheries trust under this 08 section if at least two-thirds of the municipalities within the fisheries trust region, 09 acting jointly, inform the department that they will establish a fisheries trust for the 10 region and there is not already a fisheries trust established in that region. 11 (b) The purpose of a regional fisheries trust established under (a) of this 12 section is to 13 (1) prevent economic distress among fishermen and those persons 14 dependent upon them for a livelihood; 15 (2) improve state residents' ability to participate in state fisheries by 16 creating opportunities for those persons with limited alternative economic options and 17 sources of income; 18 (3) empower communities to achieve economic self-sufficiency; and 19 (4) promote resource conservation. 20 (c) The department, in consultation with the Department of Fish and Game, 21 shall establish fisheries trust regions. The department may modify or change the 22 boundaries of the regions for good reason. 23 (d) Each fisheries trust established under (a) of this section is a public 24 corporation and instrumentality of the state within the Department of Commerce, 25 Community, and Economic Development. The exercise by a fisheries trust of the 26 powers conferred under this chapter is considered to be for a public purpose. For 27 administrative purposes, the fisheries trusts are in the department, but each fisheries 28 trust has a separate and independent legal existence from the state and shall be 29 governed by a board established under AS 16.44.020. 30 (e) The department may conduct an annual audit of a fisheries trust established 31 under this section. The department may also conduct supplementary audits as it
01 considers necessary. The results of an audit under this subsection is a public record 02 under AS 40.25.110. 03 (f) The department may dissolve a fisheries trust if the fisheries trust becomes 04 insolvent. However, nothing in this subsection precludes municipalities in that region 05 from establishing another fisheries trust under (a) of this section. 06 Sec. 16.44.020. Regional fisheries trust board; membership; meetings; 07 location. (a) Each regional fisheries trust shall be governed by a board of directors, 08 composed of members appointed by the governor under this section. 09 (b) The governor shall appoint one individual from each municipality wholly 10 or partially located within the fisheries trust region established by the department 11 under AS 16.44.010(c) to serve as a member of a fisheries trust board. The governor 12 shall choose each member appointed under this subsection from a list of nominees 13 provided by each municipality. 14 (c) If, under AS 16.44.050(a)(2), the municipalities within the fisheries trust 15 region elect to include directors from each unincorporated community within the 16 fisheries trust region on the board of directors for the regional fisheries trust, the 17 governor shall appoint one individual from each unincorporated community within the 18 fisheries trust region. The governor shall choose each member from a list of nominees 19 provided by a single entity or village council in each unincorporated community 20 wholly or partially within the fisheries trust region. A regional fisheries trust board of 21 directors may also vote under AS 16.44.050(a)(2) to allow or prohibit the inclusion of 22 members from an unincorporated community wholly or partially within the fisheries 23 trust region. 24 (d) An individual appointed under (b) or (c) of this section must be a resident 25 of the municipality or unincorporated community from which the individual was 26 appointed. In each unincorporated community wholly or partially within the fisheries 27 trust region, a single entity or village council eligible to receive a community 28 assistance payment under AS 29.60.865 shall provide the list of nominees from which 29 the governor shall appoint an individual to serve as a member of a regional fisheries 30 trust board of directors. 31 (e) Except as provided under AS 16.44.050(a)(2), a member of a board of a
01 regional fisheries trust shall serve for a term of three years. A member shall hold 02 office for the term of the appointment and until a successor has been appointed and 03 qualified. A member is eligible for reappointment. A vacancy on a board occurring 04 other than by expiration of term shall be filled in the same manner as the original 05 appointment but for the unexpired term only. Terms must be staggered so that one- 06 third, or as close to one-third as practicable, of the terms expire each year. A member 07 may not serve more than 12 cumulative years on the board. 08 (f) A majority of the members of a board constitutes a quorum for the 09 transaction of business and the exercise of the powers and duties of the board except 10 for certain board actions relating to the board's membership under AS 16.44.050(a)(2). 11 (g) A member of a board may not lease an entry permit from the fisheries 12 trust. 13 (h) The members of a board shall annually elect from among themselves a 14 chair and vice-chair and other board officers as may be provided in the bylaws of the 15 fisheries trust. The members of the board may elect to create an executive governance 16 committee and provide that committee some of the board's powers under this chapter. 17 (i) The board of each fisheries trust may hire staff qualified to assist the board 18 in carrying out the provisions of this chapter. If staff is hired, staff compensation shall 19 be reasonable. 20 (j) A fisheries trust may share resources, including staff, with other fisheries 21 trusts established under this chapter if the sharing arrangement is approved by the 22 board of each participating fisheries trust. A fisheries trust may also share resources 23 and staff with a regional association qualified under AS 16.10.380(a), an Alaska 24 Native village or village regional corporation established under 43 U.S.C. 1606 25 (Alaska Native Claims Settlement Act), a regional development organization as 26 defined in AS 44.33.896, or another entity created for a purpose related to commercial 27 fishing or service in the fisheries trust region. 28 (k) Unless a fisheries trust is sharing resources with one or more other entities 29 under (j) of this section, a fisheries trust shall be administratively headquartered in the 30 community in its region with the greatest number of entry permits on January 1, 2017. 31 Sec. 16.44.030. Administrative expenses, compensation, and fees due the
01 department. (a) A member of a fisheries trust board may be provided reasonable 02 compensation. However, the compensation may not exceed the median rate of 03 compensation provided to the elected members of the municipal governments of the 04 three most populated municipalities within the fisheries trust region. For the purposes 05 of this section, "compensation" does not include reasonable per diem and travel 06 expenses for necessary fisheries trust business purposes. 07 (b) The administrative expenses of a fisheries trust must be reasonable and 08 minimized to enhance the ability of the fisheries trust to acquire entry permits and to 09 return maximum benefit to the persons and region served by the fisheries trust. 10 (c) The department may adopt regulations relating to the administrative 11 expenses of, and compensation provided by, a fisheries trust. 12 (d) The commissioner shall assess fisheries trust fees for the department's 13 actual expenses necessarily incurred by the department in connection with its duties 14 under this chapter relating to the fisheries trust. 15 Sec. 16.44.040. Exemption from taxation. (a) Except for fees levied under 16 AS 16.43.160, the real and personal property of a fisheries trust organized under this 17 chapter and its assets, income, and receipts are declared to be devoted to an essential 18 public and governmental function and purpose, and the property, assets, income, 19 receipts, and other interests of the fisheries trust are exempt from taxes and special 20 assessments of the state or a political subdivision of the state, including municipalities, 21 school districts, public utility districts, and other governmental units. 22 (b) Nothing in this section relieves a person leasing an entry permit from a 23 fisheries trust from applicable fees, taxes, or assessments. 24 Sec. 16.44.050. Powers and duties of a regional fisheries trust. (a) In 25 addition to all powers necessary to carry out the purposes of this chapter, a fisheries 26 trust may 27 (1) adopt, amend, and repeal bylaws for its organization, management 28 of its internal affairs, and the conduct of its business consistent with the provisions of 29 this chapter; 30 (2) if two-thirds of the full membership of the board appointed from 31 the municipalities in the region affirmatively vote under AS 16.44.020(c) to approve
01 the action, expand or reduce the membership of the fisheries trust board of directors by 02 allowing or prohibiting individuals from unincorporated communities in the region to 03 serve as directors; 04 (3) borrow funds; 05 (4) subject to the limitations of AS 16.43 and this chapter, hold, 06 transfer, or receive the transfer of an entry permit for a fishery within the fisheries 07 trust region; 08 (5) accept gifts or grants from a federal agency or an agency or 09 instrumentality of the state, a municipality, a private organization, or another source, 10 including the transfer of an entry permit for a regional fishery or a gift or grant for the 11 acquisition of an entry permit within a specific fishery located in the fisheries trust 12 region; 13 (6) subject to AS 16.44.070, lease entry permits to individuals 14 qualified under AS 16.44.080 on conditions that the board considers appropriate that 15 may include terms that allow a fisheries trust to transfer a leased permit to a lessee and 16 terminate a lease upon default of a lessee; and 17 (7) after a fisheries trust acquires the maximum number of entry 18 permits allowed under AS 16.44.060(a), use revenue and other funds to support 19 programs and projects that benefit commercial fishermen within the fisheries trust 20 region. 21 (b) In a manner consistent with AS 16.44.010(b), a fisheries trust shall 22 (1) lease entry permits by competitive bid to individuals qualified 23 under AS 16.44.080; 24 (2) establish criteria for leasing and temporary transfer of entry permits 25 acquired by the fisheries trust that ensure the solvency and financial strength of the 26 fisheries trust; 27 (3) lease and temporarily transfer entry permits only in accordance 28 with criteria established by the fisheries trust under (2) of this subsection; 29 (4) upon request of the commission under AS 16.43.960, terminate the 30 lease of a permit to an individual under this chapter; and 31 (5) make its criteria for leasing entry permits under (2) of this
01 subsection public, and provide copies to the department and to the Alaska Commercial 02 Fisheries Entry Commission. 03 (c) In leasing permits by competitive bid under (b)(1) of this section, and 04 subject to criteria adopted under (b)(2) of this section, a fisheries trust may preference 05 bids for the lease of entry permits under (b)(1) of this section in a manner consistent 06 with the purposes of a fisheries trust under AS 16.44.010(b). 07 Sec. 16.44.055. Disposition of proceeds. Leasing fees and other fisheries trust 08 revenue, subject to legislative appropriation, and less any fees due the department 09 under AS 16.44.030(d), shall be available to a fisheries trust's board of directors to be 10 used 11 (1) to pay for a fisheries trust's operations; 12 (2) to finance the acquisition of additional permits; and 13 (3) subject to AS 16.44.050(a), to support programs and projects that 14 benefit commercial fishermen within the fisheries trust region. 15 Sec. 16.44.060. Acquisition and holding of entry permits. (a) A fisheries 16 trust may not acquire an entry permit for a fishery that is not in the fisheries trust 17 region. A fisheries trust may not hold more than two and one-half percent of the entry 18 permits issued for a fishery in the fisheries trust region, rounded up to the nearest 19 whole number. 20 (b) Subject to (a) of this section, a fisheries trust shall hold a variety of types 21 of limited entry permits. To the extent reasonably possible, a fisheries trust shall hold 22 a number of limited entry permits of each type issued within its region, such that the 23 fisheries trust's portfolio of limited entry permits is proportionally representative of all 24 of the limited entry permits of each kind issued within the fisheries trust region. 25 (c) The commission shall ensure that a portfolio of entry permits held by a 26 fisheries trust complies with the requirements of this section. A fisheries trust may not 27 acquire an entry permit if the commission finds that the acquisition would violate the 28 requirements of this section. 29 (d) An entry permit held and leased by a fisheries trust is subject to 30 AS 16.43.150(g). 31 Sec. 16.44.070. Lease terms for entry permits held by a regional fisheries
01 trust. (a) Subject to (b) of this section, a fisheries trust shall establish lease terms for 02 entry permits held by the fisheries trust in a manner that is consistent with the purpose 03 provided by AS 16.44.010(b). 04 (b) A lease term for an entry permit held by a fisheries trust may not exceed 05 six years, and an individual may not lease an entry permit or permits for the same 06 fishery for a cumulative period of more than six years, regardless of whether the lease 07 years are consecutive. 08 (c) An entry permit held by a fisheries trust may not be subleased by the 09 lessee. 10 (d) A fisheries trust may not impose lease terms that limit the lessee's time, 11 place, manner, or method of fishing or sale of fish. 12 (e) Subject to (a) of this section and AS 16.43.170(a), a fisheries trust may 13 include terms in a lease that provide for the leased permit to be transferred to the 14 lessee at the end of the period for which the permit was leased. 15 Sec. 16.44.080. Qualified lessees. (a) A fisheries trust may only lease an entry 16 permit to an individual who is a resident of the state. An applicant for the lease of an 17 entry permit from a fisheries trust under this chapter shall maintain a domicile in the 18 state and may not be a resident of, or have received a benefit based on residency, in 19 another state or country. 20 (b) A fisheries trust may not lease a permit to 21 (1) an individual who already holds a limited entry or interim-use 22 permit for the same fishery as the leased permit; or 23 (2) staff of a fisheries trust employed under AS 16.44.020(i) or of 24 another entity that is shared with the fisheries trust under AS 16.44.020(j). 25 (c) When an individual no longer maintains a domicile in the state, the 26 individual is no longer eligible to lease an entry permit, and a fisheries trust shall 27 terminate a lease held by the individual. 28 (d) If proceedings are pending to suspend an individual's commercial fishing 29 privileges, the individual is not eligible to lease an entry permit under this chapter. 30 (e) In this section, "domicile" means the true and permanent home of an 31 individual from which the individual has no present intention of moving and to which
01 the individual intends to return whenever the individual is away. 02 Sec. 16.44.099. Definitions. In this chapter, 03 (1) "board" means the board of a regional fisheries trust; 04 (2) "commission" means the Alaska Commercial Fisheries Entry 05 Commission; 06 (3) "commissioner" means the commissioner of commerce community, 07 and economic development; 08 (4) "department" means the Department of Commerce, Community, 09 and Economic Development unless specifically provided otherwise; 10 (5) "entry permit" means a commercial fishing entry permit issued 11 under AS 16.43; 12 (6) "fisheries trust" means a regional fisheries trust established under 13 AS 16.44.010; 14 (7) "fishery" has the meaning given in AS 16.05.940. 15 * Sec. 32. AS 39.25.110(11) is amended to read: 16 (11) the officers and employees of the following boards, commissions, 17 and authorities: 18 (A) [REPEALED 19 (B)] Alaska Permanent Fund Corporation; 20 (B) [(C)] Alaska Industrial Development and Export Authority; 21 (C) [(D)] Alaska Commercial Fisheries Entry Commission; 22 (D) [(E)] Alaska Commission on Postsecondary Education; 23 (E) [(F)] Alaska Aerospace Corporation; 24 (F) [(G) REPEALED 25 (H)] Alaska Gasline Development Corporation and subsidiaries 26 of the Alaska Gasline Development Corporation; 27 (G) a regional fisheries trust established under 28 AS 16.44.010; 29 * Sec. 33. AS 43.76.040 is amended to read: 30 Sec. 43.76.040. Definitions [DEFINITION]. In AS 43.76.001 - 43.76.040, 31 unless the context otherwise requires,
01 (1) "buyer" means a person who acquires possession of salmon from 02 the person who caught the salmon regardless of whether there is an actual sale of the 03 salmon but excluding a transfer to a person engaged solely in interstate transportation 04 of goods for hire; 05 (2) "person holding a limited entry permit" or "entry permit 06 holder" means an individual who is listed in the records of the Alaska 07 Commercial Fisheries Entry Commission as the legal owner of an entry permit, 08 but does not include the lessee of an entry permit under AS 16.44. 09 * Sec. 34. AS 43.76.320 is amended to read: 10 Sec. 43.76.320. Definitions [DEFINITION]. In AS 43.76.300 - 43.76.320, 11 (1) "buyer" means a person who acquires possession of fish from the 12 person who caught the fish regardless of whether there is an actual sale of the fish, but 13 does not include a person engaged solely in interstate transportation of goods for hire; 14 (2) "person holding a limited entry permit" means an individual 15 who is listed in the records of the Alaska Commercial Fisheries Entry 16 Commission as the legal owner of an entry permit, but does not include the lessee 17 of an entry permit under AS 16.44. 18 * Sec. 35. AS 43.76.399 is amended by adding a new paragraph to read: 19 (5) "person holding a limited entry permit" or "entry permit holder" 20 means an individual who is listed in the records of the Alaska Commercial Fisheries 21 Entry Commission as the legal owner of an entry permit, but does not include the 22 lessee or temporary transferee of an entry permit under AS 16.44. 23 * Sec. 36. AS 44.33.020(a) is amended by adding a new paragraph to read: 24 (45) carry out its functions and duties under AS 16.44. 25 * Sec. 37. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 TRANSITION: REGULATIONS. The Alaska Commercial Fisheries Entry 28 Commission and the commissioner of commerce, community, and economic development 29 may immediately adopt regulations necessary to implement the provisions of this Act. The 30 regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the 31 effective date of the law implemented by the regulation.
01 * Sec. 38. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 INITIAL DIRECTORS OF REGIONAL FISHERIES TRUSTS. Subject to 04 AS 16.44.020(e), added by sec. 31 of this Act, the term of office of each initial director of a 05 regional fisheries trust shall be determined by lot. 06 * Sec. 39. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 INITIAL ESTABLISHMENT OF FISHERIES TRUST REGIONS. (a) When initially 09 establishing the boundaries of a fisheries trust region under AS 16.44.010(c), added by sec. 31 10 of this Act, the Department of Commerce, Community, and Economic Development shall, in 11 consultation with the Department of Fish and Game, divide the land area of the state into 12 separate fisheries trust regions that the Department of Commerce, Community, and Economic 13 Development determines are socially, economically, and politically cohesive, using, to the 14 extent practicable, 15 (1) the boundaries of the commercial fishing administrative areas established 16 by the Alaska Commercial Fisheries Entry Commission under AS 16.43.200, as those 17 boundaries are described in regulation on the effective date of sec. 31 of this Act; and 18 (2) the designations of which state communities are local to particular 19 fisheries made in the report by the Alaska Commercial Fisheries Entry Commission titled 20 "Changes in the Distribution of Alaska's Commercial Fisheries Entry Permits, 1975 - 2015." 21 (b) In establishing the fisheries trust regional boundaries under (a) of this section, the 22 Department of Commerce, Community, and Economic Development shall, to the extent 23 practicable, 24 (1) clearly delineate which communities are in each region; and 25 (2) ensure that a community is not split between regions. 26 * Sec. 40. Section 37 of this Act takes effect immediately under AS 01.10.070(c). 27 * Sec. 41. Except as provided by sec. 40 of this Act, this Act takes effect January 1, 2018.