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HB 365: "An Act relating to the establishment of the optimum number of commercial fishing entry permits for a fishery."

00 HOUSE BILL NO. 365 01 "An Act relating to the establishment of the optimum number of commercial fishing 02 entry permits for a fishery." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 16.43.100(a) is amended to read: 05 (a) To accomplish the purposes set out in AS 16.43.010, the commission shall 06 (1) regulate entry into the commercial fisheries for all fishery resources 07 in the state; 08 (2) establish priorities for the application of the provisions of this 09 chapter to the various commercial fisheries of the state; 10 (3) establish administrative areas suitable for regulating and 11 controlling entry into the commercial fisheries; 12 (4) establish, for all types of gear, the maximum number of entry 13 permits for each administrative area; 14 (5) designate, when necessary to accomplish the purposes of this

01 chapter, particular species for which separate interim-use permits or entry permits will 02 be issued; 03 (6) establish qualifications for the issuance of entry permits; 04 (7) issue entry permits to qualified applicants; 05 (8) issue interim-use permits as provided in AS 16.43.210, 16.43.220, 06 and 16.43.225; 07 (9) if the optimum number of entry permits for a fishery has been 08 established under AS 16.43.290, [ESTABLISH, FOR ALL TYPES OF GEAR, THE 09 OPTIMUM NUMBER OF ENTRY PERMITS FOR EACH ADMINISTRATIVE 10 AREA; 11 (10)] administer the buy-back program provided for in AS 16.43.310 12 and 16.43.320 to reduce the number of outstanding entry permits to the optimum 13 number of entry permits; 14 (10) [(11)] provide for the transfer and reissuance of entry permits to 15 qualified transferees; 16 (11) [(12)] provide for the transfer and reissuance of entry permits for 17 alternative types of legal gear, in a manner consistent with the purposes of this 18 chapter; 19 (12) [(13)] establish and administer the collection of the annual fees 20 provided for in AS 16.43.160; 21 (13) [(14)] administer the issuance of commercial fishing vessel 22 licenses under AS 16.05.490; 23 (14) [(15)] issue educational entry permits to applicants who qualify 24 under the provisions of AS 16.43.340 - 16.43.390; 25 (15) [(16)] establish reasonable user fees for services; 26 (16) [(17)] issue landing permits under AS 16.05.675 and regulations 27 adopted under that section; 28 (17) [(18)] establish and collect annual fees for the issuance of landing 29 permits that reasonably reflect the costs incurred in the administration and 30 enforcement of provisions of law related to landing permits; 31 (18) [(19)] establish a moratorium on entry into commercial fisheries

01 as provided in AS 16.43.225; and 02 (19) [(20)] when requested by a regional development organization 03 formed under former AS 44.33.895, provide to the organization, without charge, 04 public information contained in the commission's data with respect to relevant 05 fisheries, including limited fisheries, fishery participants, and limited entry permit 06 holders' harvests and earnings. 07 [(21) REPEALED] 08 * Sec. 2. AS 16.43.290 is amended to read: 09 Sec. 16.43.290. Optimum number of entry permits. Following the issuance 10 of entry permits under AS 16.43.270, the commission may [SHALL] establish the 11 optimum number of entry permits for each fishery based on [UPON] a reasonable 12 balance of the following general standards: 13 (1) the number of entry permits sufficient to maintain an economically 14 healthy fishery that will result in a reasonable average rate of economic return to the 15 fishermen participating in that fishery, considering time fished and necessary 16 investments in vessels and gear; 17 (2) the number of entry permits necessary to harvest the allowable 18 commercial take of the fishery resource during all years in an orderly, efficient 19 manner, and consistent with sound fishery management techniques; 20 (3) the number of entry permits sufficient to avoid serious economic 21 hardship to those currently engaged in the fishery, considering other economic 22 opportunities reasonably available to them. 23 * Sec. 3. AS 16.43.300 is amended to read: 24 Sec. 16.43.300. Revisions of optimum number of entry permits. (a) If the 25 commission has established the optimum number of permits for a fishery under 26 AS 16.43.290, the [THE] commission may increase or decrease the optimum number 27 of entry permits for the [A] fishery when one or more of the following conditions 28 makes a change desirable considering the purposes of this chapter: 29 (1) an established long-term change in the biological condition of the 30 fishery has occurred that substantially alters the optimum number of entry permits 31 permissible applying the standards set out in AS 16.43.290;

01 (2) an established long-term change in market conditions has occurred, 02 directly affecting the fishery, that substantially alters the optimum number of entry 03 permits permissible under the standards set out in AS 16.43.290. 04 (b) If the commission has established the optimum number of permits for 05 a fishery under AS 16.43.290 and the commission decreases the optimum number of 06 entry permits for the [A] fishery, the number of entry permits may be reduced only 07 under the voluntary buy-back provisions set out in AS 16.43.310 and 16.43.320. 08 * Sec. 4. AS 16.43.310(a) is amended to read: 09 (a) If the commission has established the optimum number of permits for 10 a fishery under AS 16.43.290, when [WHEN] the optimum number of entry permits 11 is less than the number of entry permits outstanding for the [IN A] fishery, the 12 commission may establish a buy-back program, a buy-back plan, and a buy-back fund 13 for that fishery. 14 * Sec. 5. AS 16.43.310(c) is amended to read: 15 (c) If the commission has established the optimum number of permits for 16 a fishery under AS 16.43.290, the [THE] commission shall expend money 17 appropriated to a buy-back fund for the purpose of reducing the number of entry 18 permits in the fishery to the optimum number, at a rate to be established by the 19 commission. The legislature may appropriate interest accrued on the money in a buy- 20 back fund to that fund. Except as provided in AS 16.43.320, money appropriated to a 21 buy-back fund does not lapse. 22 * Sec. 6. AS 16.43.320 is amended to read: 23 Sec. 16.43.320. Administration of the buy-back program. The commission 24 shall adopt regulations providing for the purchase of transferable entry permits with 25 money in the buy-back fund for each fishery. For a fishery for which the 26 commission has established the optimum number of permits under AS 16.43.290, 27 the [THE] commission shall 28 (1) cease purchases of entry permits in a fishery when the number of 29 entry permits in the fishery has been reduced to the optimum number; 30 (2) [. THE COMMISSION SHALL] terminate a buy-back assessment 31 established for a fishery under AS 16.43.310(b) when the commission determines that

01 the amount of revenue collected through the assessment is sufficient to purchase the 02 number of entry permits necessary to achieve the optimum number of entry permits in 03 the fishery and to offset the reasonable costs of the buy-back program for the fishery, 04 including repayment of any debt the commission was authorized to incur to capitalize 05 the buy-back fund for the fishery. [THE UNEXPENDED BALANCE OF 06 APPROPRIATIONS MADE TO A BUY-BACK FUND FOR A FISHERY SHALL 07 LAPSE BACK INTO THE FUND FROM WHICH THE MONEY WAS 08 APPROPRIATED AT THE END OF THE FISCAL YEAR IN WHICH THE BUY- 09 BACK PROGRAM IS TERMINATED.] 10 * Sec. 7. AS 16.43.320 is amended by adding a new subsection to read: 11 (b) The unexpended balance of appropriations made to a buy-back fund for a 12 fishery under (a) of this section shall lapse back into the fund from which the money 13 was appropriated at the end of the fiscal year in which the buy-back program is 14 terminated. 15 * Sec. 8. AS 16.43.330(a) is amended to read: 16 (a) If the commission has established the optimum number of entry 17 permits for a fishery under AS 16.43.290, when [WHEN] the number of 18 outstanding entry permits for that [A] fishery is less than the optimum number 19 [ESTABLISHED UNDER AS 16.43.290], the commission shall issue new entry 20 permits to applicants who are presently able to engage actively in the fishery until the 21 optimum number is reached.