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HB 64: "An Act relating to regional fishery development associations; and relating to developing fishery management assessments."

00 HOUSE BILL NO. 64 01 "An Act relating to regional fishery development associations; and relating to 02 developing fishery management assessments." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 16.40 is amended by adding a new section to read: 05 Article 4A. Fishery Development Associations. 06 Sec. 16.40.255. Regional fishery development associations. (a) The 07 commissioner shall assist in and encourage the formation of qualified regional fishery 08 development associations for the purpose of developing new fisheries in the state. 09 (b) A regional fishery development association is qualified if the 10 commissioner determines that the regional fishery development association 11 (1) is incorporated as a nonprofit corporation under AS 10.20; 12 (2) represents commercial fishermen who 13 (A) for a new fishery, 14 (i) harvest fishery resources that would potentially be

01 included in the new fishery; and 02 (ii) are likely to participate in the fishery if the 03 commission grants permits for the fishery under AS 16.43.100 or 04 16.43.210(c); or 05 (B) for a fishery for which the commission grants permits 06 under AS 16.43.100 or 16.43.210(c), participate actively in the fishery; 07 (3) possesses a board of directors that 08 (A) is representative of commercial fishermen who meet the 09 criteria in (2) of this subsection; 10 (B) has a member who is representative of fish processors who 11 (i) are likely to process fishery resources from a new 12 fishery if the commission grants permits for the fishery under 13 AS 16.43.100 or 16.43.210(c); or 14 (ii) actively process fishery resources from the fishery 15 harvested under authority of permits granted by the commission under 16 AS 16.43.100 or 16.43.210(c); 17 (C) has a member who is representative of a municipality in 18 which the landings for the fishery occur or will occur if the commission grants 19 permits for the fishery under AS 16.43.100 or 16.43.210(c). 20 (c) The commissioner shall designate as a developing fishery the commercial 21 harvest of a species of fishery resources in a specific geographic area of the state if the 22 commissioner determines that 23 (1) the optimum yield from the harvest of the species of fishery 24 resources has not been reached; 25 (2) the abundance or sustained yield for the species of fishery 26 resources has not been estimated; 27 (3) a commercial harvest of the species of fishery resources has 28 recently developed; or 29 (4) annual stock assessments are not conducted in the area. 30 (d) In this section, 31 (1) "commission" means the Alaska Commercial Fisheries Entry

01 Commission established under AS 16.43.020; 02 (2) "new fishery" means a prospective fishery within a specified 03 geographical region that is not currently regulated or controlled by the commission. 04 * Sec. 2. AS 37.05.146(c)(26) is amended to read: 05 (26) dive fishery management assessment receipts (AS 43.76.150), 06 salmon fishery assessment receipts (AS 43.76.220), developing fishery management 07 assessments receipts (AS 43.76.281), and permit buy-back assessment receipts 08 (AS 43.76.300); 09 * Sec. 3. AS 43.76 is amended by adding new sections to read: 10 Article 3A. Developing Fishery Management Assessment. 11 Sec. 43.76.281. Developing fishery management assessment. (a) A 12 developing fishery management assessment on fishery resources taken with 13 commercial gear shall be levied on the value of a specific fishery resource taken in a 14 developing fishery area. The species of fishery resources subject to the assessment and 15 the rate of the assessment, as determined under (b) - (m) of this section, shall be 16 determined by an election under AS 43.76.283. 17 (b) A person holding a limited entry permit or interim-use permit issued under 18 AS 16.43 shall pay a developing fishery management assessment of two and one-half 19 percent on a species of fishery resources that is subject to the assessment as 20 determined by an election under AS 43.76.283, that is taken with commercial gear, 21 and that the person removes from the state or transfers to a buyer in the state. 22 (c) A person holding a limited entry permit or interim-use permit issued under 23 AS 16.43 shall pay a developing fishery management assessment of five percent on a 24 species of fishery resources that is subject to the assessment as determined by an 25 election under AS 43.76.283, that is taken with commercial gear, and that the person 26 removes from the state or transfers to a buyer in the state. 27 (d) A person holding a limited entry permit or interim-use permit issued under 28 AS 16.43 shall pay a developing fishery management assessment of seven and one- 29 half percent on a species of fishery resources that is subject to the assessment as 30 determined by an election under AS 43.76.283, that is taken with commercial gear, 31 and that the person removes from the state or transfers to a buyer in the state.

01 (e) A person holding a limited entry permit or interim-use permit issued under 02 AS 16.43 shall pay a developing fishery management assessment of 10 percent on a 03 species of fishery resources that is subject to the assessment as determined by an 04 election under AS 43.76.283, that is taken with commercial gear, and that the person 05 removes from the state or transfers to a buyer in the state. 06 (f) A person holding a limited entry permit or interim-use permit issued under 07 AS 16.43 shall pay a developing fishery management assessment of 12 and one-half 08 percent on a species of fishery resources that is subject to the assessment as 09 determined by an election under AS 43.76.283, that is taken with commercial gear, 10 and that the person removes from the state or transfers to a buyer in the state. 11 (g) A person holding a limited entry permit or interim-use permit issued under 12 AS 16.43 shall pay a developing fishery management assessment of 15 percent on a 13 species of fishery resources that is subject to the assessment as determined by an 14 election under AS 43.76.283, that is taken with commercial gear, and that the person 15 removes from the state or transfers to a buyer in the state. 16 (h) A person holding a limited entry permit or interim-use permit issued under 17 AS 16.43 shall pay a developing fishery management assessment of 17 and one-half 18 percent on a species of fishery resources that is subject to the assessment as 19 determined by an election under AS 43.76.283, that is taken with commercial gear, 20 and that the person removes from the state or transfers to a buyer in the state. 21 (i) A person holding a limited entry permit or interim-use permit issued under 22 AS 16.43 shall pay a developing fishery management assessment of 20 percent on a 23 species of fishery resources that is subject to the assessment as determined by an 24 election under AS 43.76.283, that is taken with commercial gear, and that the person 25 removes from the state or transfers to a buyer in the state. 26 (j) A person holding a limited entry permit or interim-use permit issued under 27 AS 16.43 shall pay a developing fishery management assessment of 22 and one-half 28 percent on a species of fishery resources that is subject to the assessment as 29 determined by an election under AS 43.76.283, that is taken with commercial gear, 30 and that the person removes from the state or transfers to a buyer in the state. 31 (k) A person holding a limited entry permit or interim-use permit issued under

01 AS 16.43 shall pay a developing fishery management assessment of 25 percent on a 02 species of fishery resources that is subject to the assessment as determined by an 03 election under AS 43.76.283, that is taken with commercial gear, and that the person 04 removes from the state or transfers to a buyer in the state. 05 (l) A person holding a limited entry permit or interim-use permit issued under 06 AS 16.43 shall pay a developing fishery management assessment of 27 and one-half 07 percent on a species of fishery resources that is subject to the assessment as 08 determined by an election under AS 43.76.283, that is taken with commercial gear, 09 and that the person removes from the state or transfers to a buyer in the state. 10 (m) A person holding a limited entry permit or interim-use permit issued 11 under AS 16.43 shall pay a developing fishery management assessment of 30 percent 12 on a species of fishery resources that is subject to the assessment as determined by an 13 election under AS 43.76.283, that is taken with commercial gear, and that the person 14 removes from the state or transfers to a buyer in the state. 15 (n) A developing fishery management assessment may be levied or collected 16 under this section on a fishery resource in a developing fishery area only if 17 (1) the commissioner of fish and game determines that the developing 18 fishery area has a qualified fishery development association under AS 16.40.255; and 19 (2) the species of fishery resources subject to the developing fishery 20 management assessment and the rate of the developing fishery management 21 assessment, as provided under (b) - (m) of this section, is approved by an election 22 under AS 43.76.283. 23 Sec. 43.76.283. Election to approve, amend, or terminate developing 24 fishery management assessment. (a) A qualified regional fishery development 25 association may conduct an election under this section after the commissioner of fish 26 and game approves 27 (1) the notice to be published by the qualified regional fishery 28 development association; the notice must describe the species of fishery resources 29 subject to the developing fishery management assessment and the rate of the 30 assessment to be approved, amended, or terminated at the election; 31 (2) the ballot to be used in the election; and

01 (3) the registration and voting procedure for the approval, amendment, 02 or termination of the developing fishery management assessment. 03 (b) The developing fishery management assessment is levied under 04 AS 43.76.281(b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (l), or (m), is amended under 05 AS 43.76.285, or is terminated under AS 43.76.287 on the effective date stated on the 06 ballot if 07 (1) the levy, amendment, or termination is approved by a majority vote 08 of the eligible interim-use permit and entry permit holders voting in the election held 09 in the developing fishery area; and 10 (2) the election results are certified by the commissioner of fish and 11 game. 12 (c) In conducting an election under this section, a qualified regional fishery 13 development association shall adopt the following procedures: 14 (1) the qualified regional fishery development association shall hold at 15 least one public meeting not less than 30 days before the date on which ballots must be 16 postmarked to be counted in the election to explain, as appropriate, the reason for 17 approval or amendment of the proposed developing fishery management assessment, 18 the reason for the proposed rate of the developing fishery management assessment, or 19 the reason for termination of the developing fishery management assessment and to 20 explain the registration and voting procedure to be used in the election; the qualified 21 regional fishery development association shall provide notice of the meeting by 22 (A) mailing the notice to each eligible interim-use permit and 23 entry permit holder; 24 (B) posting the notice in at least three public places in the 25 region; and 26 (C) publishing the notice in at least one newspaper of general 27 circulation in the developing fishery area at least once a week for two 28 consecutive weeks before the meeting; 29 (2) the qualified regional fishery development association shall mail 30 two ballots to each eligible interim-use permit and entry permit holder; the first ballot 31 shall be mailed not more than 45 days before the date ballots must be postmarked to

01 be counted in the election; the second ballot shall be mailed not less than 15 days 02 before the date ballots must be postmarked to be counted in the election; the qualified 03 regional fishery development association shall adopt procedures to ensure that only 04 one ballot from each eligible interim-use permit and entry permit holder is counted in 05 the election; 06 (3) the ballot must 07 (A) indicate the species of fishery resources subject to the 08 developing fishery management assessment; 09 (B) indicate whether the election relates to a developing fishery 10 management assessment under AS 43.76.281(b), (c), (d), (e), (f), (g), (h), (i), 11 (j), (k), (l), or (m); 12 (C) ask the question whether the developing fishery 13 management assessment on the fishery resources addressed on the ballot shall 14 be approved, amended, or terminated, as appropriate; 15 (D) indicate the boundaries of the developing fishery area in 16 which the assessment will be levied or terminated; 17 (E) provide an effective date for the approval, amendment, or 18 termination of the developing fishery management assessment; and 19 (F) indicate the date on which returned ballots must be 20 postmarked in order to be counted; 21 (4) the ballots shall be returned by mail and shall be counted by an 22 auditor selected by the qualified regional fishery development association and 23 approved by the commissioner of fish and game; the qualified regional fishery 24 development association shall pay the costs of counting the ballots. 25 (d) The commissioner of fish and game shall certify the results of an election 26 under this section if the commissioner determines that the requirements of (a) and (c) 27 of this section have been satisfied. 28 (e) A qualified regional fishery development association may employ or 29 contract with another person to administer an election under this section subject to the 30 supervision of the association. 31 (f) Except as otherwise provided under AS 43.76.285 and 43.76.287, an

01 election to amend the rate of a developing fishery management assessment or to 02 terminate a developing fishery management assessment shall be conducted under the 03 same procedures established under (a), (c), and (d) of this section for an election to 04 approve a developing fishery management assessment. 05 (g) In this section, "eligible interim-use permit and entry permit holder" means 06 an individual who, 90 days before the date ballots must be postmarked to be counted 07 in an election under this section, is listed in the records of the Alaska Commercial 08 Fisheries Entry Commission as the legal holder of an interim-use permit for gear or an 09 entry permit for gear that authorizes the individual to fish commercially in the 10 developing fishery area for the species of fishery resources for which the developing 11 fishery management assessment is to be approved, amended, or terminated. 12 Sec. 43.76.285. Amendment of developing fishery management assessment. 13 (a) The rate of the developing fishery management assessment levied on a species of 14 fishery resources under AS 43.76.281(b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (l), or 15 (m) may be amended by the commissioner of revenue upon majority vote at an 16 election held under AS 43.76.283 in the area in which the developing fishery 17 management assessment is levied. 18 (b) The commissioner of revenue shall amend the rate of a developing fishery 19 management assessment under (a) of this section following an election under 20 AS 43.76.283 in a developing fishery area if 21 (1) a petition that is signed by at least 75 percent of the board members 22 of the qualified regional fishery development association established for the area under 23 AS 16.40.255 is presented to the commissioner of fish and game requesting 24 amendment of the rate of the developing fishery management assessment on a species 25 of fishery resources; the petition must state whether the proposed rate of the 26 developing fishery management assessment is to be levied under AS 43.76.281(b), (c), 27 (d), (e), (f), (g), (h), (i), (j), (k), (l), or (m); 28 (2) an election is held in accordance with AS 43.76.283; the ballot 29 must ask the question whether the developing fishery management assessment on a 30 species of fishery resources taken in the area shall be amended and must state whether 31 the developing fishery management assessment on the species of fishery resources is

01 to be levied under AS 43.76.281(b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (l), or (m) if 02 the assessment is amended; the ballot must be worded so that a "yes" vote is for 03 amendment of the developing fishery management assessment and a "no" vote is for 04 continuation of the current developing fishery management assessment; 05 (3) a majority of the eligible interim-use permit and entry permit 06 holders who vote in the election cast a ballot for the amendment of the developing 07 fishery management assessment; in this paragraph, "eligible interim-use permit and 08 entry permit holders" has the meaning given in AS 43.76.283(g); and 09 (4) the qualified regional fishery development association provides 10 notice of the election in accordance with AS 43.76.283 within two months after 11 receiving notice from the commissioner of fish and game that a valid petition under 12 (1) of this subsection has been received. 13 Sec. 43.76.287. Termination of developing fishery management 14 assessment. (a) The developing fishery management assessment levied on a species of 15 fishery resources under AS 43.76.281(b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (l), or 16 (m) shall be terminated by the commissioner of revenue upon majority vote at an 17 election held under AS 43.76.283 in the developing fishery area in which the 18 developing fishery management assessment is levied. 19 (b) The commissioner of revenue shall terminate a developing fishery 20 management assessment under (a) of this section following an election in a developing 21 fishery area if 22 (1) a petition that is signed by at least 75 percent of the board members 23 of the qualified regional fishery development association established for the area under 24 AS 16.40.255 is presented to the commissioner of fish and game requesting 25 termination of the developing fishery management assessment on a species of fishery 26 resources; 27 (2) an election is held in accordance with AS 43.76.283; the ballot 28 must ask the question whether the developing fishery management assessment on a 29 species of fishery resources taken in the area shall be terminated; the ballot must be 30 worded so that a "yes" vote is for continuation of the developing fishery management 31 assessment and a "no" vote is for termination of the developing fishery management

01 assessment; 02 (3) a majority of the eligible interim-use permit and entry permit 03 holders who vote in the election cast a ballot for the termination of the developing 04 fishery management assessment; in this paragraph, "eligible interim-use permit and 05 entry permit holders" has the meaning given in AS 43.76.283(g); and 06 (4) the qualified regional fishery development association provides 07 notice of the election in accordance with AS 43.76.283 within two months after 08 receiving notice from the commissioner of fish and game that a valid petition under 09 (1) of this subsection has been received. 10 Sec. 43.76.289. Collection of developing fishery management assessment. 11 (a) Except as otherwise provided under (e) of this section, a buyer who acquires a 12 fishery resource that is subject to a developing fishery management assessment levied 13 under AS 43.76.281(b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (l), or (m) shall collect the 14 developing fishery management assessment at the time of purchase and shall remit the 15 total developing fishery management assessment collected during each calendar 16 quarter to the Department of Revenue by the last day of the month following the end 17 of the calendar quarter. In this subsection, "calendar quarter" means each of the three- 18 month periods ending March 31, June 30, September 30, and December 31. 19 (b) A buyer who collects the developing fishery management assessment shall 20 maintain records of the value of each species of fishery resources that is subject to the 21 assessment that is purchased in each developing fishery area in the state. 22 (c) The owner of fishery resources removed from the state is liable for 23 payment of the developing fishery management assessment levied under 24 AS 43.76.281(b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (l), or (m) if, at the time the 25 fishery resource is removed from the state, the assessment payable on the fishery 26 resource has not been collected by a buyer. If the owner of the fishery resource is 27 liable for payment of the developing fishery management assessment under this 28 subsection, the owner shall comply with the requirements under (a) and (b) of this 29 section to remit the assessment to the Department of Revenue and to maintain records. 30 (d) The developing fishery management assessment collected under this 31 section shall be deposited in the state treasury. Under AS 37.05.146(c), assessment

01 receipts shall be accounted for separately, and appropriations from the account are not 02 made from the unrestricted general fund. 03 (e) A direct marketing fisheries business licensed under AS 43.75.020(c) or a 04 commercial fisherman who transfers possession of a fishery resource to a buyer who is 05 not a fisheries business licensed under AS 43.75 is liable for payment of a developing 06 fishery management assessment levied under AS 43.76.281(b), (c), (d), (e), (f), (g), 07 (h), (i), (j), (k), (l), or (m) if, at the time possession of the fishery resource is 08 transferred to a buyer, the developing fishery management assessment payable on the 09 fishery resource has not been collected. If a direct marketing fisheries business or 10 commercial fisherman is liable for payment of a developing fishery management 11 assessment under this subsection, the direct marketing fisheries business or 12 commercial fisherman shall comply with the requirement to maintain records under 13 (b) of this section. Notwithstanding (a) of this section, a person subject to this 14 subsection shall remit the total developing fishery management assessment payable 15 during the calendar year to the Department of Revenue before April 1 after close of 16 the calendar year. 17 Sec. 43.76.291. Funding for qualified regional fishery development 18 associations. (a) The legislature may make appropriations of revenue collected under 19 AS 43.76.289 to the Department of Fish and Game for funding of the qualified 20 regional fishery development association in the developing fishery area in which the 21 assessment was collected. Appropriations under this section are not made from the 22 unrestricted general fund. Funds received under this section by a qualified regional 23 fishery development association may be expended in accordance with the annual 24 operating plan developed under (b) of this section. 25 (b) The Department of Fish and Game shall develop an annual operating plan 26 with the cooperation of the regional fishery development association and the 27 Department of Environmental Conservation on or before a date specified by the 28 Department of Fish and Game. The qualified regional fishery development association 29 and the Department of Environmental Conservation shall cooperate with the 30 Department of Fish and Game in the development of the annual operating plan. The 31 annual operating plan must describe the activities for which the funding will be

01 expended, including identification of species and areas for which bioassessment 02 surveys will be conducted, a description of management and research activities to be 03 performed, planning for fisheries, and administrative activities of the association. 04 Funds appropriated to the Department of Fish and Game for funding of qualified 05 regional fishery development associations may not be disbursed by the department or 06 expended by the association, except for administration of the association, unless the 07 annual operating plan has been approved by the association and the Department of 08 Fish and Game. If an annual operating plan has not been approved by the association 09 and the Department of Fish and Game, the Department of Fish and Game may not 10 disburse and the association may not expend funds received from the department for 11 administration of the association in an amount that exceeds the amount of 12 administrative expenses authorized under the annual operating plan for the prior fiscal 13 year. 14 (c) A qualified regional fishery development association receiving funding 15 under this section shall submit an annual financial report to the Department of Fish 16 and Game on a form provided by the Department of Fish and Game. The Department 17 of Fish and Game may, by regulation, require that a qualified regional fishery 18 development association use a uniform system of accounting and may audit the use of 19 funding received under this section by the association. 20 (d) This section does not establish a dedication of a state tax or license. 21 (e) This section does not restrict or qualify the authority of the Department of 22 Fish and Game or the Board of Fisheries under AS 16. 23 Sec. 43.76.299. Definitions. In AS 43.76.281 - 43.76.299, 24 (1) "buyer" means a person who acquires possession of a fishery 25 resource from the person who caught the fishery resource, regardless of whether an 26 actual sale of the fishery resource occurs, but does not include a person engaged solely 27 in interstate transportation of goods for hire; 28 (2) "developing fishery area" means 29 (A) an area designated by the commissioner of fish and game 30 as a developing fishery under AS 16.40.255(c); or 31 (B) a fishery established by the Alaska Commercial Fisheries

01 Entry Commission under AS 16.43.100 that was previously designated by the 02 commissioner of fish and game as a developing fishery under AS 16.40.255(c); 03 (3) "fishery resource" means fish, shellfish, or marine invertebrates 04 taken or landed under the authority of a limited entry permit or interim-use permit 05 issued under AS 16.43; 06 (4) "qualified regional fishery development association" means an 07 association that is qualified under AS 16.40.255; 08 (5) "value" has the meaning given in AS 43.75.290.