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SB 199: "An Act repealing the Alaska Commercial Fisheries Limited Entry Commission and transferring its duties to the Department of Fish and Game and the office of administrative hearings."

00 SENATE BILL NO. 199 01 "An Act repealing the Alaska Commercial Fisheries Limited Entry Commission and 02 transferring its duties to the Department of Fish and Game and the office of 03 administrative hearings." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 16.05.050(a) is amended to read: 06 (a) The commissioner has, but not by way of limitation, the following powers 07 and duties: 08 (1) through the appropriate state agency and under the provisions of 09 AS 36.30 (State Procurement Code), to acquire by gift, purchase, or lease, or other 10 lawful means, land, buildings, water, rights-of-way, or other necessary or proper real 11 or personal property when the acquisition is in the interest of furthering an objective or 12 purpose of the department and the state; 13 (2) under the provisions of AS 36.30, to design and construct 14 hatcheries, pipelines, rearing ponds, fishways, and other projects beneficial for the fish

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

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

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

01 [PETITION]. 02 * Sec. 3. AS 16.05.270 is amended to read: 03 Sec. 16.05.270. Delegation of authority to commissioner. For the purpose of 04 administering AS 16.05.251(a) – (f), (h), and (i) [AS 16.05.251] and 16.05.255, each 05 board may delegate authority to the commissioner to act in its behalf. If there is a 06 conflict between the board and the commissioner on proposed regulations, public 07 hearings shall be held concerning the issues in question. If, after the public hearings, 08 the board and the commissioner continue to disagree, the issue shall be certified in 09 writing by the board and the commissioner to the governor who shall make a decision. 10 The decision of the governor is final. 11 * Sec. 4. AS 16.05.450(b) is amended to read: 12 (b) The department [ALASKA COMMERCIAL FISHERIES ENTRY 13 COMMISSION] shall issue a vessel license under AS 16.05.490 to each qualified 14 vessel for which a written application has been filed, at a place in the state designated 15 by the department [COMMISSION], containing the reasonable information required 16 by the department [COMMISSION] together with the required fee. The application 17 shall be simple in form and shall be executed by the applicant under the penalty of 18 unsworn falsification in the second degree. 19 * Sec. 5. AS 16.05.480(d) is amended to read: 20 (d) Upon request, the department [OR THE ALASKA COMMERCIAL 21 FISHERIES ENTRY COMMISSION] shall provide a social security number provided 22 by an applicant for a license under this section to the child support services agency 23 created in AS 25.27.010, or the child support agency of another state, for child support 24 purposes authorized under law. 25 * Sec. 6. AS 16.05.520 is amended to read: 26 Sec. 16.05.520. Number plate. (a) The vessel license includes a permanent 27 number plate. The number plate shall be accompanied by a tab affixed to the number 28 plate designating the year to be fished. A number plate is not transferable, and the 29 number plate shall be considered a permanent fixture on [UPON] the vessel on 30 [UPON] which the number plate is originally placed. The number plate shall be 31 securely fastened well forward on the port side in plain sight. On a vessel with a

01 superstructure, the number plate shall be fastened on the port side of the 02 superstructure. A number plate remains the property of the state. The department 03 [ALASKA COMMERCIAL FISHERIES ENTRY COMMISSION] may establish by 04 regulation a reasonable fee for the initial issuance of a permanent number plate. If a 05 permanent number plate is accidentally defaced, mutilated, destroyed, or lost, the 06 person owning or operating the vessel shall immediately apply for and may obtain a 07 duplicate upon furnishing the department [ALASKA COMMERCIAL FISHERIES 08 ENTRY COMMISSION] with the pertinent facts and a payment of a reasonable fee 09 established by the department [COMMISSION] by regulation that is not less than $2. 10 (b) If a vessel carrying a number plate is lost, destroyed, or sold, the owner 11 shall immediately report the loss, destruction, or sale to the department [ALASKA 12 COMMERCIAL FISHERIES ENTRY COMMISSION]. 13 * Sec. 7. AS 16.05.530(a) is amended to read: 14 (a) Upon payment of the vessel license fee and filing of the name and address 15 of the owner of the vessel or the owner's authorized agent, the name and number of the 16 vessel, a description of the vessel, the vessel license number, if any, the area to be 17 fished, and other reasonable information required by the department [ALASKA 18 COMMERCIAL FISHERIES ENTRY COMMISSION], the department 19 [COMMISSION] shall issue a permanent number plate and a vessel license. If the 20 vessel has a permanent number plate, the department [COMMISSION] shall issue a 21 vessel license and tab designating the year the license is valid. The tab shall be placed 22 in the space provided on the permanent number plate. 23 * Sec. 8. AS 16.05.675(a) is amended to read: 24 (a) A person who does not hold a limited entry permit or interim-use permit 25 issued under AS 16.43 or a fish transporter permit issued under AS 16.05.671 may not 26 deliver or land fish in the state unless the person 27 (1) holds a valid federal permit to operate commercial fishing gear in 28 the fishery conservation zone; and 29 (2) has been issued a landing permit by the department [ALASKA 30 COMMERCIAL FISHERIES ENTRY COMMISSION]. 31 * Sec. 9. AS 16.05.675(c) is amended to read:

01 (c) The department [COMMISSIONER] may authorize [THE ALASKA 02 COMMERCIAL FISHERIES ENTRY COMMISSION TO ISSUE] landing permits 03 for a fishery if the commissioner has made a written finding that the issuance of 04 landing permits for that fishery is consistent with state resource conservation and 05 management goals. 06 * Sec. 10. AS 16.05.815(a) is amended to read: 07 (a) Except as provided in (b) and (c) of this section, records required by 08 regulations of the department concerning the landings of fish, shellfish, or fishery 09 products, and annual statistical reports of fishermen, buyers, and processors required 10 by regulation of the department are confidential and may not be released by the 11 department [OR BY THE ALASKA COMMERCIAL FISHERIES ENTRY 12 COMMISSION] except as set out in this subsection. The department may release the 13 records and reports set out in this subsection to the [ALASKA COMMERCIAL 14 FISHERIES ENTRY COMMISSION. THE DEPARTMENT AND THE ALASKA 15 COMMERCIAL FISHERIES ENTRY COMMISSION MAY RELEASE THE 16 RECORDS AND REPORTS SET OUT IN THIS SUBSECTION TO THE] recipients 17 identified in this subsection if the recipient, other than a recipient under (6) - (10) of 18 this subsection, agrees to maintain the confidentiality of the records and reports. The 19 department [AND THE ALASKA COMMERCIAL FISHERIES ENTRY 20 COMMISSION] may release 21 (1) any of the records and reports to the National Marine Fisheries 22 Service and the professional staff of the North Pacific Fishery Management Council as 23 required for preparation and implementation of the fishery management plans of the 24 North Pacific Fishery Management Council within the exclusive economic zone; 25 (2) any of the records and reports to the professional staff of the 26 Pacific States Marine Fisheries Commission who are employed in the Alaska Fisheries 27 Information Network project for the purpose of exchanging information with users 28 authorized by the department; 29 (3) any of the records and reports to the Department of Revenue to 30 assist the department in carrying out its statutory responsibilities; 31 (4) records or reports of the total value purchased by each buyer to a

01 municipality that levies and collects a tax on fish, shellfish, or fishery products if the 02 municipality requires records of the landings of fish, shellfish, or fishery products to 03 be submitted to it for purposes of verification of taxes payable; 04 (5) records or reports of guided sport fishing activities filed by a guide 05 to a municipality that levies a tax on those activities if the 06 (A) municipality requests the records for the purpose of 07 verifying taxes payable; and 08 (B) activities occurred within the four calendar years preceding 09 the date of the request; 10 (6) such records and reports as necessary to be in conformity with a 11 court order; 12 (7) on request, the report of a person to the person whose fishing 13 activity is the subject of the report, or to a designee of the person whose fishing 14 activity is the subject of the report; 15 (8) on request, annual statistical reports of a fisherman, buyer, or 16 processor to the fisherman, buyer, or processor whose activity is the subject of the 17 report, or to a designee of the fisherman, buyer, or processor whose activity is the 18 subject of the report; 19 (9) any of the records and reports to the Department of Public Safety 20 for law enforcement purposes; 21 (10) fish tickets, fish ticket information, records required of sport 22 fishing guides, and annual statistical reports of fishermen, buyers, and processors and 23 information in those reports to the law enforcement personnel of the National Marine 24 Fisheries Service and the National Oceanic and Atmospheric Administration for the 25 purpose of enforcing fishery laws in waters of this state and in waters of the exclusive 26 economic zone adjacent to this state; 27 (11) fish tickets, fish ticket information, and records required of sport 28 fishing guides regarding halibut to the International Pacific Halibut Commission; 29 (12) any of the records and reports to the child support services agency 30 created in AS 25.27.010, or the child support enforcement agency of another state, for 31 child support purposes authorized under law;

01 (13) any of the records and reports to the Department of Natural 02 Resources to assist the department in carrying out its statutory responsibilities in 03 regard to sport fishing operations and sport fishing guides within the Kenai River 04 Special Management Area under AS 41.21.500 - 41.21.514; and 05 (14) fish ticket information and records or reports of the total value 06 purchased by each fisherman, buyer, or processor to the National Marine Fisheries 07 Service for the purpose of enforcing the industry fee system of a fishing capacity 08 reduction program under 16 U.S.C. 1861a (Magnuson-Stevens Fishery Conservation 09 and Management Act). 10 * Sec. 11. AS 16.10.333(a) is amended to read: 11 (a) Loans under AS 16.10.310(a) may be made to an individual commercial 12 fisherman for the purchase of a limited entry permit upon certification by the 13 Department of Fish and Game [COMMISSION] that the fisherman is a person who 14 qualifies as a transferee for the permit under AS 16.43 and the regulations adopted 15 under AS 16.43 [BY THE COMMISSION]. 16 * Sec. 12. AS 16.10.333(d) is amended to read: 17 (d) Upon satisfaction of the note by the debtor, the commissioner shall certify 18 to the Department of Fish and Game [COMMISSION] that the note has been 19 satisfied. 20 * Sec. 13. AS 16.10.333(e) is amended to read: 21 (e) Upon certification as provided in (d) of this section, the Department of 22 Fish and Game [COMMISSION] shall amend the permit certificate to list the debtor 23 as the legal owner. 24 * Sec. 14. AS 16.10.335(a) is amended to read: 25 (a) If the debtor defaults upon a note for which a limited entry permit has been 26 pledged as security under AS 16.10.333 or 16.10.338, the commissioner shall provide 27 the debtor, by both certified and first class mail sent to the debtor's last known address 28 on file with the commissioner, with a notice of default that includes 29 (1) a description of the security given for the note including the 30 number assigned to the pledged permit by the Department of Fish and Game 31 [COMMISSION];

01 (2) the date upon which the default occurred; 02 (3) the amount of the debtor's outstanding principal and interest as of 03 the date of the default notice, the total amount remaining on the note less unearned 04 interest, and the amount of daily interest; 05 (4) a statement that the debtor may, within 15 days after the postmark 06 date of the notice, request a hearing to submit evidence showing the debtor has not 07 defaulted; 08 (5) a statement that the note may be reinstated if it is brought current 09 within 120 days after the postmark date of the notice; 10 (6) a statement that, under AS 16.10.310(a)(4), the debtor may 11 reinstate the note by submitting to the commissioner a plan of repayment if the 12 commissioner accepts the debtor's plan of repayment; 13 (7) the place where reinstatement of the note or payment in full may be 14 made; and 15 (8) a notice in at least 10-point bold type stating: IMPORTANT: 16 YOUR FAILURE TO REINSTATE OR PAY THIS NOTE IN FULL BY THE DATE 17 SPECIFIED WILL RESULT IN A FORFEITURE OF ALL RIGHTS TO THE 18 PERMIT AND THE POSSIBILITY OF LEGAL ACTION BEING INSTITUTED 19 AGAINST YOU. 20 * Sec. 15. AS 16.10.337(a) is amended to read: 21 (a) Upon a foreclosure on an entry permit as provided in AS 16.10.335 or the 22 termination of a debtor's interest in an entry permit under AS 16.10.335(g), the 23 commissioner shall offer the Department of Fish and Game [COMMISSION] a 24 right of first refusal if the permit is subject to a buy-back program under AS 16.43.290 25 - 16.43.330 at a price equal to the amount outstanding on the note plus any costs the 26 department directly incurred in administering the loan. 27 * Sec. 16. AS 16.10.337(b) is amended to read: 28 (b) If the Department of Fish and Game [COMMISSION] does not exercise 29 its right of first refusal within 30 days after it receives the offer, or if the permit is not 30 subject to a buy-back program under AS 16.43.290 - 16.43.330, the department shall 31 advertise and sell the permit. If the proceeds of the sale of a permit exceed the amount

01 necessary to pay the note in full, plus penalties, costs of administration of the note, 02 attorney fees, and child support liens of which the department has notice, the excess 03 shall be transferred by the commissioner to the debtor. At any time until the permit has 04 been sold under this subsection, the debtor may repurchase the permit by paying the 05 department the amount necessary to pay the note in full, plus penalties, costs of 06 administration of the note, and attorney fees, as determined by the commissioner. 07 * Sec. 17. AS 16.40.250 is amended to read: 08 Sec. 16.40.250. Salmon fishery associations. The commissioner may assist in 09 and encourage the formation of qualified salmon fishery associations for the purpose 10 of promoting the consolidation of the fishing fleet in a salmon fishery for which the 11 department [ALASKA COMMERCIAL FISHERIES ENTRY COMMISSION] has 12 issued commercial fishing entry permits under AS 16.43. A salmon fishery association 13 is qualified if the commissioner determines that the regional association 14 (1) is incorporated as a nonprofit corporation under AS 10.20; 15 (2) is made up [COMPRISED] of interim-use permit and entry permit 16 holders in the salmon fishery for which the association is established; and 17 (3) has a board of directors that is made up [COMPRISED] of 18 interim-use permit and entry permit holders in the salmon fishery. 19 * Sec. 18. AS 16.43 is amended by adding a new section to read: 20 Sec. 16.43.015. Commercial fisheries office. The commercial fisheries office 21 is established as a regulatory and quasi-judicial office in the office of the 22 commissioner of fish and game. 23 * Sec. 19. AS 16.43.100 is amended to read: 24 Sec. 16.43.100. Duties and general powers. (a) To accomplish the purposes 25 set out in AS 16.43.010, the department [COMMISSION] shall 26 (1) regulate entry into the commercial fisheries for all fishery resources 27 in the state; 28 (2) establish priorities for the application of the provisions of this 29 chapter to the various commercial fisheries of the state; 30 (3) establish administrative areas suitable for regulating and 31 controlling entry into the commercial fisheries;

01 (4) establish, for all types of gear, the maximum number of entry 02 permits for each administrative area; 03 (5) designate, when necessary to accomplish the purposes of this 04 chapter, particular species for which separate interim-use permits or entry permits will 05 be issued; 06 (6) establish qualifications for the issuance of entry permits; 07 (7) issue entry permits to qualified applicants; 08 (8) issue interim-use permits as provided in AS 16.43.210, 16.43.220, 09 and 16.43.225; 10 (9) establish, for all types of gear, the optimum number of entry 11 permits for each administrative area; 12 (10) administer the buy-back program provided for in AS 16.43.310 13 and 16.43.320 to reduce the number of outstanding entry permits to the optimum 14 number of entry permits; 15 (11) provide for the transfer and reissuance of entry permits to 16 qualified transferees; 17 (12) provide for the transfer and reissuance of entry permits for 18 alternative types of legal gear, in a manner consistent with the purposes of this 19 chapter; 20 (13) establish and administer the collection of the annual fees provided 21 for in AS 16.43.160; 22 (14) administer the issuance of commercial fishing vessel licenses 23 under AS 16.05.490; 24 (15) issue educational entry permits to applicants who qualify under 25 the provisions of AS 16.43.340 - 16.43.390; 26 (16) establish reasonable user fees for services; 27 (17) [ISSUE LANDING PERMITS UNDER AS 16.05.675 AND 28 REGULATIONS ADOPTED UNDER THAT SECTION; 29 (18)] establish and collect annual fees for the issuance of landing 30 permits that reasonably reflect the costs incurred in the administration and 31 enforcement of provisions of law related to landing permits;

01 [(19) ESTABLISH A MORATORIUM ON ENTRY INTO 02 COMMERCIAL FISHERIES AS PROVIDED IN AS 16.43.225;] and 03 (18) [(20)] when requested by a regional development organization 04 formed under former AS 44.33.895, provide to the organization, without charge, 05 public information contained in the department's [COMMISSION'S] data with 06 respect to relevant fisheries, including limited fisheries, fishery participants, and 07 limited entry permit holders' harvests and earnings. 08 [(21) REPEALED.] 09 (b) The department [COMMISSION] may do all things necessary to the 10 exercise of the commissioner's [ITS] powers under this chapter, whether or not 11 specifically designated in this chapter. 12 * Sec. 20. AS 16.43.110 is repealed and reenacted to read: 13 Sec. 16.43.110. Regulations and hearing procedures. (a) The department 14 may adopt regulations, consistent with law, necessary or proper in the exercise of its 15 powers or for the performance of its duties under this chapter. 16 (b) The department shall adopt regulations, consistent with due process of law, 17 that govern practice and procedure and the conduct of all investigations, hearings, and 18 proceedings. Adjudicatory proceedings required under this chapter shall be conducted 19 by the office of administrative hearings (AS 44.64). 20 (c) The Alaska Rules of Evidence apply to investigations, hearings, and 21 proceedings before the department or the office of administrative hearings under this 22 chapter, except when the department determines that their application is not required 23 in order to ensure fair treatment of all parties and that the evidence is relevant and of 24 the sort on which responsible persons are accustomed to rely in the conduct of serious 25 matters. 26 (d) The department, the office of administrative hearings, or an employee 27 authorized by the department or the office of administrative hearings may administer 28 oaths, certify to all official acts, and issue subpoenas and other process to compel the 29 attendance of witnesses and the production of testimony, records, papers, accounts, 30 and documents in an inquiry, investigation, hearing, or proceeding before the 31 department under this chapter in any part of the state. The department or office of

01 administrative hearings may petition a court to enforce its subpoenas or other process 02 under this chapter. 03 (e) The department shall adopt regulations to provide for the correction of 04 administrative error under this chapter. 05 * Sec. 21. AS 16.43.120 is amended to read: 06 Sec. 16.43.120. Application of Administrative Procedure Act. (a) The 07 administrative adjudication procedures of AS 44.62 (Administrative Procedure Act) 08 do not apply to adjudicatory proceedings of the office of administrative hearings 09 (AS 44.64) held under this chapter [COMMISSION] except that final administrative 10 determinations by the office of administrative hearings or the commissioner under 11 this chapter [COMMISSION] are subject to judicial review as provided in 12 AS 44.62.560 - 44.62.570. 13 (b) AS 44.62.010 - 44.62.319 and 44.62.640 apply to regulations adopted by 14 the department under this chapter [COMMISSION]. 15 * Sec. 22. AS 16.43.140(a) is amended to read: 16 (a) A person may not operate gear in the commercial taking of fishery 17 resources without a valid entry permit or a valid interim-use permit issued by the 18 department [COMMISSION]. 19 * Sec. 23. AS 16.43.140(c) is amended to read: 20 (c) A person may hold more than one interim-use or entry permit issued or 21 transferred under this chapter only for the following purposes: 22 (1) fishing more than one type of gear; 23 (2) fishing in more than one administrative area; 24 (3) harvesting particular species for which separate interim-use or 25 entry permits are issued; 26 (4) if authorized by regulations adopted by the department [OF THE 27 COMMISSION], fishing an entire unit of gear in a fishery in which the department 28 [COMMISSION] has issued entry permits for less than a unit of gear under 29 AS 16.43.270(d); under this paragraph, a person may not hold more than two entry 30 permits for a fishery; however, the person may not 31 (A) fish more than one unit of gear in the fishery; or

01 (B) acquire a second entry permit for the fishery after the 02 person has acquired an entry permit that authorizes the use of an entire unit of 03 gear in the fishery; 04 (5) consolidation of the fishing fleet for a salmon fishery; however, a 05 person may hold not more than two entry permits for a salmon fishery under this 06 paragraph, but the person who holds two entry permits for a salmon fishery may not 07 engage in fishing under the second entry permit. 08 * Sec. 24. AS 16.43.150(d) is amended to read: 09 (d) Failure to renew an entry permit for a period of two years from the year of 10 last renewal results in a forfeiture of the entry permit to the department 11 [COMMISSION], except as waived by the department [COMMISSION] for good 12 cause. An entry permit may not be renewed until the fees for each preceding year 13 during which the entry permit was not renewed are paid. However, failure to renew an 14 entry permit in a year in which there is an administrative closure for the entire season 15 for a specific fishery is good cause not to renew the entry permit. The department 16 [COMMISSION] shall waive the payment of fees for that year. 17 * Sec. 25. AS 16.43.150(h) is amended to read: 18 (h) Unless an entry permit holder has expressed a contrary intent in a will that 19 is probated, the department [COMMISSION] shall, upon the death of the permit 20 holder, transfer the permanent permit by right of survivorship directly to the surviving 21 spouse or, if no spouse survives, to a natural person designated by the permit holder on 22 a form provided by the department [COMMISSION]. If no spouse survives and if the 23 person designated on the form, if any, does not survive, the permit passes as part of the 24 permit holder's estate. A designation under this subsection must be acknowledged 25 before a person authorized to administer an oath under AS 09.63.010 or must be 26 witnessed by two persons who are qualified under AS 13.12.505 to witness the will of 27 the permit holder. Except as provided in AS 16.10.333 - 16.10.337, AS 44.81.215, and 28 44.81.231 - 44.81.250, the permit is exempt from the claims of creditors of the estate. 29 * Sec. 26. AS 16.43.150(i) is amended to read: 30 (i) The holder of a transferable or nontransferable entry permit or of an 31 interim-use permit may voluntarily relinquish the permit to the department

01 [COMMISSION]. 02 * Sec. 27. AS 16.43.160(a) is amended to read: 03 (a) Except as specifically provided in this section, the department 04 [COMMISSION] shall establish annual fees for the issuance and annual renewal of 05 entry permits or interim-use permits. 06 * Sec. 28. AS 16.43.160(b) is amended to read: 07 (b) The department [COMMISSION] may charge interest at a rate not to 08 exceed the legal rate of interest established in AS 45.45.010 on fees more than 60 days 09 overdue. 10 * Sec. 29. AS 16.43.160(c) is amended to read: 11 (c) The annual base fee for issuance or renewal of an entry permit or an 12 interim-use permit may not be less than $30 or more than $3,000. The annual base fee 13 must reasonably reflect the different rates of economic return for different fisheries. In 14 addition to the annual base fee established by the department [COMMISSION] under 15 this subsection, a nonresident shall pay an annual nonresident surcharge for the 16 issuance or renewal of one or more entry permits or interim-use permits. The 17 department [COMMISSION] shall establish the annual nonresident surcharge by 18 regulation at an amount that is as close as is practicable to the maximum allowed by 19 law. 20 * Sec. 30. AS 16.43.170(a) is amended to read: 21 (a) Except as provided in AS 16.10.333 - 16.10.338 and in AS 44.81.231 - 22 44.81.250, entry permits and interim-use permits are transferable only through the 23 department [COMMISSION] as provided in this section and AS 16.43.180 and under 24 regulations adopted by the department [COMMISSION]. An involuntary transfer of 25 an entry permit in a manner inconsistent with the statutes of this state and the 26 regulations of the department [COMMISSION] is void. 27 * Sec. 31. AS 16.43.170(b) is amended to read: 28 (b) Except as provided in (e) of this section, the holder of an entry permit may 29 transfer the permit to another person or to the department [COMMISSION] upon 60 30 days' [DAYS] notice of intent to transfer under regulations adopted by the 31 department. Not [COMMISSION. NO] sooner than 60 days nor later than 12 months

01 from the date of notice to the department [COMMISSION], the holder of an entry 02 permit may transfer the permit. If the proposed transferee, other than the department 03 [COMMISSION], can demonstrate the present ability to participate actively in the 04 fishery and the transfer does not violate any provision of this chapter or regulations 05 adopted under this chapter, and if a certificate for the permit under AS 16.10.333(b)(1) 06 - (2), 16.10.338, or AS 44.81.231(a) is not in effect, the department [COMMISSION] 07 shall approve the transfer and reissue the entry permit to the transferee if [PROVIDED 08 THAT] neither party is prohibited by law from participating in the transfer. 09 * Sec. 32. AS 16.43.170(g) is amended to read: 10 (g) A person may request the department [COMMISSION] to transfer an 11 entry permit due to an execution on a permit holder's interest in that permit if the 12 execution is to enforce a lien recorded with the department [COMMISSION] under 13 AS 25.27.230(c). The request shall be made in the form and manner provided in this 14 chapter and regulations adopted under this chapter. The department [COMMISSION] 15 may deny a request for transfer of an entry permit due to an execution of a holder's 16 interest in that permit if 17 (1) the execution does not comply with legal requirements or otherwise 18 is not valid; 19 (2) the transfer violates this chapter or regulations adopted under this 20 chapter; 21 (3) the proposed transferee or other party to the transfer is prohibited 22 by law from participating in the transaction; 23 (4) a certificate for the permit under AS 16.10.333(b)(1) - (2), 24 16.10.338, or AS 44.81.231(a) is in effect at the time of the proposed transfer; 25 (5) the proposed transferee of the entry permit, other than the 26 department [COMMISSION], cannot demonstrate the present ability to actively 27 participate in the fishery; or 28 (6) the holder of the entry permit as shown by the records of the 29 department [COMMISSION] demonstrates, under regulations adopted by the 30 department [COMMISSION], that the entry permit is a necessary means of support 31 for the holder and those dependent on [UPON] the holder.

01 * Sec. 33. AS 16.43.170(h) is amended to read: 02 (h) Notwithstanding (g) of this section, the department [COMMISSION] 03 may not approve a request for transfer of an entry permit after an execution sale unless 04 the parties to the transfer offer the department [COMMISSION] a right to purchase 05 the permit at the same price and on the same terms as those of that execution sale. If 06 the department [COMMISSION] exercises its right to purchase the permit, the permit 07 then shall be transferred to the department [COMMISSION]. 08 * Sec. 34. AS 16.43.180 is amended to read: 09 Sec. 16.43.180. Emergency transfers. (a) The department [COMMISSION] 10 shall adopt regulations providing for the temporary emergency transfer of entry 11 permits and interim-use permits when illness, disability, death, required military or 12 government service, or other unavoidable hardship prevents the permit holder from 13 participating in the fishery. To alleviate hardship pending a final determination of the 14 permit holder's eligibility for an entry permit, the department [COMMISSION] shall 15 adopt regulations providing for the temporary emergency transfer of an interim-use 16 permit issued under AS 16.43.210(b) or 16.43.225. 17 (b) The department [COMMISSION] shall adopt regulations providing for 18 the temporary transfer of an entry permit upon the death of the permittee pending final 19 disposition of the permit as a part of the permittee's estate. 20 * Sec. 35. AS 16.43.200 is amended to read: 21 Sec. 16.43.200. Administrative areas. (a) The department [COMMISSION] 22 shall establish administrative areas suitable for regulating and controlling entry into 23 the commercial fisheries. The department [COMMISSION] shall make the 24 administrative areas reasonably compatible with the geographic areas for which 25 specific commercial fishing regulations are adopted by the Board of Fisheries. 26 (b) The department [COMMISSION] may modify or change the boundaries 27 of administrative areas when necessary and consistent with the purposes of this 28 chapter. 29 * Sec. 36. AS 16.43.210(a) is amended to read: 30 (a) For each fishery that is not subject to a maximum number of entry permits 31 under AS 16.43.240 and not subject to a moratorium under AS 16.43.225, the

01 department [COMMISSION] shall issue interim-use permits under regulations 02 adopted by the department [COMMISSION] to all applicants who can establish their 03 present ability to participate actively in the fishery for which they are making 04 application. 05 * Sec. 37. AS 16.43.210(b) is amended to read: 06 (b) Before the issuance of the maximum number of entry permits for a given 07 fishery, the department [COMMISSION] may issue an interim-use permit to an 08 applicant who may later become eligible for an entry permit under AS 16.43.270. 09 * Sec. 38. AS 16.43.210(c) is amended to read: 10 (c) The [TO THE EXTENT THAT THE] commissioner [OF FISH AND 11 GAME AUTHORIZES IT UNDER AS 16.05.050(a)(9), THE COMMISSION] may 12 grant an interim-use permit under AS 16.05.050(a)(9) to a person to engage in the 13 commercial taking from a fishery on an experimental basis. 14 * Sec. 39. AS 16.43.220(a) is amended to read: 15 (a) The department [COMMISSION] shall adopt regulations specifying the 16 dates and places of application, the procedures to be followed in renewal of the 17 interim-use permit including the time, place of its renewal, and for any other purpose 18 incident to the administration of interim-use permits for that fishery. An interim-use 19 permit shall expire upon the final determination of the holder's eligibility for an entry 20 permit. 21 * Sec. 40. AS 16.43.225 is amended to read: 22 Sec. 16.43.225. Moratorium on new entrants into certain fisheries. (a) 23 Subject to (b) of this section, the department [COMMISSION] may establish a 24 moratorium on new entrants into a fishery 25 (1) that has experienced recent increases in fishing effort that are 26 beyond a low, sporadic level of effort; 27 (2) that has achieved a level of harvest that may be approaching or 28 exceeding the maximum sustainable level for the fishery; and 29 (3) for which there is insufficient biological and resource management 30 information necessary to promote the conservation and sustained yield management of 31 the fishery.

01 (b) The department [COMMISSION] may establish a moratorium on new 02 entrants into a fishery described in (a) of this section if 03 (1) the commissioner [OF FISH AND GAME], subject to 04 AS 16.05.251(g), imposes [PETITIONS THE COMMISSION UNDER AS 44.62.220 05 TO ESTABLISH] a moratorium on new entrants into the fishery; and 06 (2) the department [COMMISSION] finds that 07 (A) the fishery has reached a level of participation that may 08 threaten the conservation and the sustained yield management of the fishery 09 resource and the economic health and stability of commercial fishing; and 10 (B) the department [COMMISSION] has insufficient 11 information to conclude that the establishment of a maximum number of entry 12 permits under AS 16.43.240 would further the purposes of this chapter. 13 (c) The department [COMMISSION] may establish a moratorium under this 14 section for a continuous period of up to four years. A fishery that has been subject to a 15 moratorium under this section may not be subjected to a subsequent moratorium under 16 this section unless five years have elapsed since the previous moratorium expired. 17 (d) While a moratorium is in effect, the department [COMMISSION] shall 18 conduct investigations to determine whether a maximum number of entry permits 19 should be established under AS 16.43.240 by 20 (1) conducting research into conditions in the fishery; 21 (2) consulting with the [DEPARTMENT OF FISH AND GAME AND 22 THE] Board of Fisheries; and 23 (3) consulting with participants in the fishery. 24 (e) The department [COMMISSION] shall establish by regulation the 25 qualifications for applicants for an interim-use permit for a fishery subject to a 26 moratorium under this section. The qualifications must include the minimum 27 requirements for past or present participation and harvest in the fishery. The 28 department [COMMISSION] may not issue an interim-use permit for a fishery 29 subject to a moratorium under this section unless the applicant can satisfy the 30 qualifications established under this subsection and establish the present ability and 31 intent to participate actively in the fishery.

01 * Sec. 41. AS 16.43.227(a) is amended to read: 02 (a) The department [COMMISSION] may establish a moratorium on new 03 entrants into the southeast Alaska Dungeness crab fishery for a continuous period of 04 up to four years without complying with AS 16.43.225(a) - (c). While the moratorium 05 is in effect, the department [COMMISSION] shall 06 (1) conduct the investigation required under AS 16.43.225(d); 07 (2) establish by regulation the qualifications for an interim-use permit 08 for the fishery, including minimum requirements for past or present participation and 09 harvest in the fishery; and 10 (3) issue interim-use permits for the fishery to applicants who satisfy 11 the qualifications established under (2) of this subsection and who establish the 12 present ability and intent to participate actively in the fishery. 13 * Sec. 42. AS 16.43.228(g) is amended to read: 14 (g) The department [COMMISSION] may not consider participation in a 15 fishery, subject to a moratorium on entry under this section, that occurs during the 16 period of the moratorium in determining eligibility for an entry permit that may be 17 issued for the fishery after termination of the moratorium. 18 * Sec. 43. AS 16.43.230 is amended to read: 19 Sec. 16.43.230. Designation of distressed fisheries. Pending the 20 determination of maximum numbers of entry permits under AS 16.43.240 and before 21 the initial issue of entry permits under AS 16.43.270, the department 22 [COMMISSION] shall designate as distressed fisheries those for which it estimates 23 that the optimum number of entry permits will be less than the highest number of units 24 of gear fished in that fishery during any one of the four years immediately preceding 25 January 1, 1973. 26 * Sec. 44. AS 16.43.240(b) is amended to read: 27 (b) When the department [COMMISSION] finds that a fishery, not 28 designated as a distressed fishery under AS 16.43.230 or not subject to a moratorium 29 under AS 16.43.225, has reached levels of participation that require the limitation of 30 entry under AS 16.43.140 - 16.43.330 in order to achieve the purposes of this chapter, 31 the department [COMMISSION] shall establish the maximum number of entry

01 permits for that fishery. 02 * Sec. 45. AS 16.43.240(c) is amended to read: 03 (c) When the department [COMMISSION] finds that a fishery subject to a 04 moratorium under AS 16.43.225 has reached levels of participation that require the 05 limitation of entry under AS 16.43.140 - 16.43.330 in order to achieve the purposes of 06 this chapter, the department [COMMISSION] shall establish the maximum number 07 of entry permits for that fishery. 08 * Sec. 46. AS 16.43.250 is amended to read: 09 Sec. 16.43.250. Standards for initial issue of entry permits. (a) Following 10 the establishment of the maximum number of units of gear for a particular fishery 11 under AS 16.43.240, the department [COMMISSION] shall adopt regulations 12 establishing qualifications for ranking applicants for entry permits according to the 13 degree of hardship that they would suffer by exclusion from the fishery. The 14 regulations shall define priority classifications of similarly situated applicants based 15 on [UPON] a reasonable balance of the following hardship standards: 16 (1) degree of economic dependence on [UPON] the fishery, including, 17 when reasonable for the fishery, the percentage of income derived from the fishery, 18 reliance on alternative occupations, availability of alternative occupations, and 19 investment in vessels and gear; 20 (2) extent of past participation in the fishery, including, when 21 reasonable for the fishery, the number of years of participation in the fishery, and the 22 consistency of participation during each year. 23 (b) The department [COMMISSION] shall designate in the regulations those 24 priority classifications of applicants who would suffer significant economic hardship 25 by exclusion from the fishery. 26 (c) The department [COMMISSION] shall designate in the regulations those 27 priority classifications of applicants who would suffer only minor economic hardship 28 by exclusion from the fishery. 29 (d) If an individual eligible to apply under AS 16.43.260(a) has applied during 30 application periods established under AS 16.43.260(b) for two or more entry permits 31 under AS 16.43.260(d) or (e) for the same specific fishery resource and the same

01 specific type of gear in different administrative areas, but has failed to qualify for an 02 entry permit for that type of fishery resource and gear, the individual's cumulative 03 qualifications may be credited to the fishery for which the individual is most qualified. 04 The department [COMMISSION] shall issue an entry permit to the individual for the 05 fishery if the individual's cumulative qualifications result in placing the individual in a 06 category designated in (b) of this section. The qualifications credited to a fishery under 07 this subsection may not be considered for the purpose of ranking the applicant under 08 (a)-(c) of this section for any other fishery. The department [COMMISSION] may 09 not revoke any permit previously issued notwithstanding the issuance of permits in 10 excess of the maximum number established under AS 16.43.230 - 16.43.240 as a 11 result of this subsection. In this subsection, "fishery" includes all salmon fisheries of 12 the state for which a maximum number of entry permits has been established by the 13 department [COMMISSION] under AS 16.43.240(b). 14 (e) If the cumulative qualifications of an individual under (d) of this section 15 include points granted by the department [COMMISSION] under (a) of this section 16 for more than one fishery and the number of points required to place an applicant in 17 the priority classification under (b) of this section is not the same for each of the 18 fisheries, the department [COMMISSION] shall obtain a quotient for the individual 19 by dividing the number of points the individual has been granted for each fishery by 20 the number of points needed to place an applicant in a priority classification under (b) 21 of this section for that fishery. If the sum of the quotients obtained under this 22 subsection equals or exceeds 1.00, the individual is entitled to a permit under (d) of 23 this section. 24 * Sec. 47. AS 16.43.260(a) is amended to read: 25 (a) The department [COMMISSION] shall accept applications for entry 26 permits only from applicants who have harvested fishery resources commercially 27 while participating in the fishery as holders of gear licenses issued under former 28 AS 16.05.536 - 16.05.670 or interim-use permits under AS 16.43.210(a) or 16.43.225 29 before the qualification date established in (d), (e), or (f) of this section. The 30 department [COMMISSION] may specify by regulation the calendar years of 31 participation that will be considered for eligibility purposes.

01 * Sec. 48. AS 16.43.260(b) is amended to read: 02 (b) The department [COMMISSION] shall establish the opening and closing 03 dates, places, and form of application for entry permits for each fishery. The 04 department [COMMISSION] may require the submission of specific verified 05 evidence establishing the applicant's qualifications under the regulations adopted 06 under AS 16.43.250. 07 * Sec. 49. AS 16.43.260(c) is amended to read: 08 (c) When an applicant is unable to establish qualifications for an entry permit 09 by submitting the specific verified evidence required in the application by the 10 department [COMMISSION], the applicant may request and obtain an administrative 11 adjudication of the application according to the procedures established in 12 AS 16.43.110(b). At the hearing the applicant may present alternative evidence of 13 qualifications for an entry permit. 14 * Sec. 50. AS 16.43.260(e) is amended to read: 15 (e) Except as provided in (f) of this section, when the department 16 [COMMISSION] establishes the maximum number of entry permits for a particular 17 fishery under AS 16.43.240 [AFTER JANUARY 1, 1975], an applicant shall be 18 assigned to a priority classification based solely on [UPON] the applicant's 19 qualifications as of January 1 of the year during which the department 20 [COMMISSION] establishes the maximum number of entry permits for the fishery for 21 which application is made. 22 * Sec. 51. AS 16.43.260(f) is amended to read: 23 (f) When the department [COMMISSION] establishes the maximum number 24 of entry permits under AS 16.43.240 for a fishery that is subject to a moratorium under 25 AS 16.43.225, an applicant for an entry permit for the fishery shall be assigned to a 26 priority classification based solely on [UPON] the applicant's qualifications as of the 27 effective date of the statute or regulation establishing the moratorium. 28 * Sec. 52. AS 16.43.270(a) is amended to read: 29 (a) The department [COMMISSION] shall issue entry permits, for each 30 fishery, first to all qualified applicants in the priority classifications designated under 31 AS 16.43.250(b) and then to qualified applicants in order of descending priority

01 classification, until the number of entry permits issued equals the maximum number of 02 entry permits established under AS 16.43.230 and 16.43.240 for each fishery, except 03 that a person within a priority classification specified under AS 16.43.250(b) may not 04 be denied an entry permit. 05 * Sec. 53. AS 16.43.270(b) is amended to read: 06 (b) If, within the lowest priority classification of qualified applicants to which 07 some entry permits may be issued, there are more applicants than there are entry 08 permits to be issued, then the allocation of entry permits within that priority 09 classification shall be by lottery. However, the department [COMMISSION] shall 10 issue entry permits to all qualified applicants in that priority classification if the total 11 number of permits issued for the fishery does not exceed the maximum number of 12 entry permits established under AS 16.43.240 for that fishery by more than five 13 percent or 10 permits, whichever is greater. 14 * Sec. 54. AS 16.43.270(d) is amended to read: 15 (d) The department [COMMISSION] may restrict the fishing capacity 16 employed under an entry permit if, before the initial issuance of entry permits for a 17 fishery, the department [COMMISSION] determines that the fishing capacity in the 18 fishery must be limited to achieve the purposes of this chapter, establishes criteria for 19 determining the fishing capacity that is allowed under an entry permit, and establishes 20 how fishing capacity will be measured. The maximum fishing capacity allowed under 21 an entry permit must be based on [UPON] past participation in the fishery by the 22 initial recipient of the entry permit during a period, specified by the department 23 [COMMISSION], preceding the qualification date established under AS 16.43.260. 24 The department [COMMISSION] may define fishing capacity in terms of quantity of 25 fishing gear, a proportion of the maximum amount of gear that can be utilized in the 26 fishery under regulations of the Board of Fisheries, fishing vessel size or other 27 characteristics, or other factors determined by the department [COMMISSION] to 28 affect the amount of fishing effort in the fishery. The recipient or transferee of an entry 29 permit issued subject to this subsection may not exceed the fishing capacity allowed 30 under the entry permit. 31 * Sec. 55. AS 16.43.290 is amended to read:

01 Sec. 16.43.290. Optimum number of entry permits. Following the issuance 02 of entry permits under AS 16.43.270, the department [COMMISSION] shall 03 establish the optimum number of entry permits for each fishery based on [UPON] a 04 reasonable balance of the following general standards: 05 (1) the number of entry permits sufficient to maintain an economically 06 healthy fishery that will result in a reasonable average rate of economic return to the 07 fishermen participating in that fishery, considering time fished and necessary 08 investments in vessels and gear; 09 (2) the number of entry permits necessary to harvest the allowable 10 commercial take of the fishery resource during all years in an orderly, efficient 11 manner, and consistent with sound fishery management techniques; 12 (3) the number of entry permits sufficient to avoid serious economic 13 hardship to those currently engaged in the fishery, considering other economic 14 opportunities reasonably available to them. 15 * Sec. 56. AS 16.43.300 is amended to read: 16 Sec. 16.43.300. Revisions of optimum number of entry permits. (a) The 17 department [COMMISSION] may increase or decrease the optimum number of entry 18 permits for a fishery when one or more of the following conditions makes a change 19 desirable considering the purposes of this chapter: 20 (1) an established long-term change in the biological condition of the 21 fishery has occurred that substantially alters the optimum number of entry permits 22 permissible applying the standards set out in AS 16.43.290; 23 (2) an established long-term change in market conditions has occurred, 24 directly affecting the fishery, that substantially alters the optimum number of entry 25 permits permissible under the standards set out in AS 16.43.290. 26 (b) If the department [COMMISSION] decreases the optimum number of 27 entry permits for a fishery, the number of entry permits may be reduced only under the 28 voluntary buy-back provisions set out in AS 16.43.310 and 16.43.320. 29 * Sec. 57. AS 16.43.310 is amended to read: 30 Sec. 16.43.310. Establishment of buy-back funds and permit buy-back 31 assessments. (a) When the optimum number of entry permits is less than the number

01 of entry permits outstanding in a fishery, the department [COMMISSION] may 02 establish a buy-back program, a buy-back plan, and a buy-back fund for that fishery. 03 (b) The department [COMMISSION] may establish by regulation a permit 04 buy-back assessment for each fishery for which the department [COMMISSION] has 05 established a buy-back fund under (a) of this section. The amount of the assessment 06 may not exceed seven percent of the value, as defined in AS 43.75.290, of fish that a 07 permit holder in the fishery subject to the assessment removes from the state or 08 transfers to a buyer in the state. The Department of Revenue shall collect an 09 assessment established under this subsection. 10 (c) The department [COMMISSION] shall expend money appropriated to a 11 buy-back fund for the purpose of reducing the number of entry permits in the fishery 12 to the optimum number, at a rate to be established by the department 13 [COMMISSION]. The legislature may appropriate interest accrued on the money in a 14 buy-back fund to that fund. Except as provided in AS 16.43.320, money appropriated 15 to a buy-back fund does not lapse. 16 * Sec. 58. AS 16.43.320 is amended to read: 17 Sec. 16.43.320. Administration of the buy-back program. The department 18 [COMMISSION] shall adopt regulations providing for the purchase of transferable 19 entry permits with money in the buy-back fund for each fishery. The department 20 [COMMISSION] shall cease purchases of entry permits in a fishery when the number 21 of entry permits in the fishery has been reduced to the optimum number. The 22 department [COMMISSION] shall terminate a buy-back assessment established for a 23 fishery under AS 16.43.310(b) when the department [COMMISSION] determines 24 that the amount of revenue collected through the assessment is sufficient to purchase 25 the number of entry permits necessary to achieve the optimum number of entry 26 permits in the fishery and to offset the reasonable costs of the buy-back program for 27 the fishery, including repayment of any debt the department [COMMISSION] was 28 authorized to incur to capitalize the buy-back fund for the fishery. The unexpended 29 balance of appropriations made to a buy-back fund for a fishery shall lapse back into 30 the fund from which the money was appropriated at the end of the fiscal year in which 31 the buy-back program is terminated.

01 * Sec. 59. AS 16.43.330(a) is amended to read: 02 (a) When the number of outstanding entry permits for a fishery is less than the 03 optimum number established under AS 16.43.290, the department [COMMISSION] 04 shall issue new entry permits to applicants who are presently able to engage actively in 05 the fishery until the optimum number is reached. 06 * Sec. 60. AS 16.43.330(b) is amended to read: 07 (b) The department [COMMISSION] shall determine equitable methods of 08 issuance, as appropriate, under (a) of this section that assure the receipt of fair market 09 value for the permits issued. 10 * Sec. 61. AS 16.43.340(a) is amended to read: 11 (a) In addition to entry permits and interim-use permits, the department 12 [COMMISSION] may issue educational entry permits to public, private, or 13 denominational educational institutions accredited by the Department of Education 14 and Early Development or accredited institutions, career, or vocational programs 15 approved by the Alaska Commission on Postsecondary Education, or full-time 16 nonprofit residential child care facilities licensed by the Department of Health, 17 division of social services, if 18 (1) the program is offered to students at the junior high school level or 19 above; 20 (2) the issuance of an educational entry permit is reasonably necessary 21 to the instruction of students under courses offered by the applicant for the educational 22 entry permit; 23 (3) the program is offered by an institution that is located in the state 24 and has been in operation for at least two years; and 25 (4) the institution offering the program is not a correspondence 26 institution. 27 * Sec. 62. AS 16.43.340(c) is amended to read: 28 (c) The department [COMMISSION] may issue educational entry permits 29 notwithstanding the establishment of maximum or optimum numbers under 30 AS 16.43.240 and 16.43.290. 31 * Sec. 63. AS 16.43.351(b) is amended to read:

01 (b) A recipient may be issued an educational entry permit valid for designated 02 fisheries in the administrative area the department [COMMISSION] determines to be 03 appropriate, considering the nature of the educational program and the location of the 04 educational or vocational institution. The recipient of an educational entry permit may 05 not be issued an educational entry permit in more than one administrative area except 06 as issued by the department [COMMISSION] in its discretion upon good cause 07 shown. 08 * Sec. 64. AS 16.43.351(d) is amended to read: 09 (d) Annual fees for educational entry permits shall be as specified by 10 department [COMMISSION] regulation under the authority of AS 16.43.160. 11 * Sec. 65. AS 16.43.371 is amended to read: 12 Sec. 16.43.371. Accounting of harvest. The recipient of an educational entry 13 permit shall report to the department [COMMISSION] costs and earnings, amount of 14 harvest, and other information the department [COMMISSION] requires to monitor 15 training programs of recipients of educational entry permits. 16 * Sec. 66. AS 16.43.381(b) is amended to read: 17 (b) The department [COMMISSION] shall adopt regulations relating to the 18 issuance of educational entry permits, establishing eligibility criteria for recipients of 19 the permits, and [SUCH] other matters as are reasonably necessary to implement 20 AS 16.43.340 - 16.43.390. 21 * Sec. 67. AS 16.43.400 is amended to read: 22 Sec. 16.43.400. Special harvest area entry permits. (a) In addition to entry 23 permits, interim-use permits, and educational permits, the department 24 [COMMISSION] may issue special harvest area entry permits to 25 (1) holders of private, nonprofit hatchery permits issued [BY THE 26 DEPARTMENT OF FISH AND GAME] under AS 16.10.400 - 16.10.475 for salmon; 27 and 28 (2) nonprofit organizations holding a permit under AS 16.12 for a 29 shellfish enhancement project. 30 (b) The department [COMMISSION] may issue special harvest area entry 31 permits notwithstanding the establishment of maximum or optimum numbers under

01 AS 16.43.240 and 16.43.290. 02 * Sec. 68. AS 16.43.410(b) is amended to read: 03 (b) A special harvest area entry permit may only be issued for the applicable 04 area designated by the department [DEPARTMENT OF FISH AND GAME] as a 05 special harvest area. 06 * Sec. 69. AS 16.43.410(c) is amended to read: 07 (c) The annual fee for a special harvest area entry permit shall be specified by 08 department [COMMISSION] regulation under the authority of AS 16.43.160. 09 * Sec. 70. AS 16.43.440(b) is amended to read: 10 (b) The department [COMMISSION, AFTER CONSULTATION WITH 11 THE DEPARTMENT OF FISH AND GAME,] shall adopt regulations that are 12 reasonably necessary to implement AS 16.43.400 - 16.43.440. 13 * Sec. 71. AS 16.43.850(a) is amended to read: 14 (a) For the purpose of identifying frequent violators of commercial fishing 15 laws in salmon fisheries, the department [COMMISSION] shall adopt regulations 16 establishing a uniform system for the suspension of commercial salmon fishing 17 privileges by assigning demerit points for convictions for violations of commercial 18 fishing laws in salmon fisheries that are reported to the department [COMMISSION] 19 under AS 16.43.880. The department [COMMISSION] shall assess demerit points 20 against a permit holder for each violation of commercial fishing laws in a salmon 21 fishery in accordance with (b) and (c) of this section. The department 22 [COMMISSION] shall assess points against a permit holder for the salmon fishery in 23 which the violation of commercial fishing laws occurred. 24 * Sec. 72. AS 16.43.850(b) is amended to read: 25 (b) The department [COMMISSION] shall assess demerit points against a 26 permit holder for a conviction of a violation of commercial fishing laws in a salmon 27 fishery under AS 16.05.722, 16.05.723, 16.05.831; AS 16.10.055, 16.10.070 - 28 16.10.090, 16.10.100, 16.10.110, 16.10.120, 16.10.200 - 16.10.220, and 16.10.760 - 29 16.10.790 for the following violations in accordance with this schedule: 30 (1) fishing in closed waters ................ 6 points; 31 (2) fishing during closed season or period ....... 6 points;

01 (3) fishing with more than the legal amount of gear ............. 4 points; 02 (4) fishing with gear not allowed in fishery ...... 6 points; 03 (5) fishing before expiration of transfer period .... 6 points; 04 (6) interfering with commercial fishing gear ..... 4 points; 05 (7) fishing with more than the legal amount of gear on vessel 4 points; 06 (8) improper operation of fishing gear ......... 4 points; 07 (9) permit holder not present when required ..... 4 points; 08 (10) fishing with underlength or overlength vessel . 6 points; 09 (11) wanton waste of fishery resources ......... 4 points. 10 * Sec. 73. AS 16.43.850(d) is amended to read: 11 (d) The department [COMMISSION] shall suspend a permit holder's 12 commercial salmon fishing privileges for a salmon fishery for a period of 13 (1) one year if the permit holder accumulates 12 or more points during 14 any consecutive 36-month period as a result of convictions for violations of 15 commercial fishing laws in the salmon fishery; 16 (2) two years if the permit holder accumulates 16 or more points 17 during any consecutive 36-month period as a result of convictions for violations of 18 commercial fishing laws in the salmon fishery; 19 (3) three years if the permit holder accumulates 18 or more points 20 during any consecutive 36-month period as a result of convictions for violations of 21 commercial fishing laws in the salmon fishery. 22 * Sec. 74. AS 16.43.855(c) is amended to read: 23 (c) The assessment of points against a permit holder by the department 24 [COMMISSION] under AS 16.43.850 - 16.43.895 is in addition to, and not in 25 substitution for, other provisions of this title and is not a substitute for any penalty 26 imposed by a court. 27 * Sec. 75. AS 16.43.855(d) is amended to read: 28 (d) If points are assessed against a permit holder who holds a commercial 29 fishing permit for a salmon fishery under an emergency transfer approved by the 30 department [COMMISSION] under AS 16.43.180, the same number of points shall 31 also be assessed against the transferor of the permit. Points assessed against the

01 transferor of the permit under this subsection shall be included in calculations made 02 under AS 16.43.850(d). 03 * Sec. 76. AS 16.43.860(a) is amended to read: 04 (a) A permit holder whose commercial salmon fishing privileges for a salmon 05 fishery are suspended under AS 16.43.850 - 16.43.895 may not obtain an entry permit 06 or interim-use permit for that salmon fishery during the period of the suspension of the 07 privileges. During the period for which the permit holder's privilege to obtain an entry 08 permit or interim-use permit for a salmon fishery is suspended under this section, the 09 department [COMMISSION] may not issue a permit card to the permit holder for 10 that fishery. 11 * Sec. 77. AS 16.43.860(c) is amended to read: 12 (c) If, during the period for which a permit holder's commercial fishing 13 privileges for a salmon fishery are suspended, the department [COMMISSION] 14 establishes a limited entry system for the salmon fishery, the permit holder shall be 15 eligible to obtain an entry permit for that fishery to the extent that the permit holder 16 qualifies for the entry permit under regulations adopted by the department 17 [COMMISSION]. If the permit holder qualifies for an entry permit for the fishery, the 18 department [COMMISSION] shall withhold issuance of the entry permit until the 19 period of the suspension imposed under AS 16.43.850 - 16.43.895 has expired. 20 * Sec. 78. AS 16.43.860(d) is amended to read: 21 (d) The department [COMMISSION] may not transfer a commercial fishing 22 permit for a salmon fishery under an emergency transfer under AS 16.43.180 if, at the 23 time of the application for the emergency transfer, the permit holder's commercial 24 salmon fishing privileges for the salmon fishery have been suspended. 25 * Sec. 79. AS 16.43.870 is amended to read: 26 Sec. 16.43.870. Notice and appeal. The department [COMMISSION] shall 27 provide notice of determinations of the department [COMMISSION] under 28 AS 16.43.850 - 16.43.895. Respondents may request a hearing under regulations 29 adopted by the department [COMMISSION] under AS 16.43.110. 30 * Sec. 80. AS 16.43.880(a) is amended to read: 31 (a) A court that convicts a person of a violation of commercial fishing laws

01 under this title or under a regulation adopted under this title in a salmon fishery shall 02 forward a record of the conviction to the department [COMMISSION] on a weekly 03 basis. 04 * Sec. 81. AS 16.43.955 is amended to read: 05 Sec. 16.43.955. Hearings in proximity to Board of Fisheries meetings. 06 When practicable, a department [COMMISSION] hearing that deals with the subject 07 of limiting entry to a fishery shall be held on the same dates on which, and in the same 08 building or in a building adjacent to the building in which, a Board of Fisheries 09 meeting is being held. 10 * Sec. 82. AS 16.43.960(a) is amended to read: 11 (a) The department [COMMISSION] may revoke, suspend, or transfer all 12 entry or interim-use permits held by a person who knowingly provides or assists in 13 providing false information, or fails to correct false information provided to the 14 department [COMMISSION] for the purpose of obtaining a benefit for self or 15 another, including the issuance, renewal, duplication, or transfer of an entry or 16 interim-use permit, or vessel license. The department [COMMISSION] may suspend 17 that person's eligibility to hold an entry or interim-use permit for a period not to 18 exceed three years, and may impose an administrative fine of not more than $5,000 on 19 the person. The department [COMMISSION] may also impose an administrative fine 20 of not more than $5,000 on an entity whose officers, employees, representatives, or 21 agents knowingly provide or assist in providing false information, or fail to correct 22 false information provided, to the department [COMMISSION] for the purpose of 23 obtaining a benefit. 24 * Sec. 83. AS 16.43.960(b) is amended to read: 25 (b) The department [COMMISSION] shall serve the respondent personally 26 or by certified or registered mail with a notice to show cause why the proposed action 27 should not take place. The notice to show cause must 28 (1) be supported by an affidavit, which may be made on information or 29 belief, setting out the facts that are the basis of the proposed actions; 30 (2) provide for a least 30 days' notice of the place, date, and time of the 31 hearing where the respondent may present evidence in opposition to the proposed

01 action; unless waived in writing by the respondent, the hearing shall be held within the 02 judicial district in which the respondent resides if the respondent resides in the state; 03 the hearing place shall be at the discretion of the department [COMMISSION] for 04 those respondents residing outside the state; 05 (3) specify the statutes or regulations violated; 06 (4) state with particularity the action proposed to be taken; 07 (5) indicate to the respondent that the respondent's ability to 08 permanently transfer the permits that are the subject of the show cause proceedings 09 has been suspended as of the date of the notice and will continue to be suspended until 10 the exhaustion of all administrative and judicial remedies; and 11 (6) provide other information the department [COMMISSION] 12 considers proper. 13 * Sec. 84. AS 16.43.960(d) is amended to read: 14 (d) A [EXCEPT WHEN THERE IS A VACANCY AS PROVIDED IN 15 AS 16.43.030(c), THE] show cause hearing shall be [CONDUCTED BEFORE A 16 QUORUM OF COMMISSIONERS AND SHALL BE] presided over by a hearing 17 officer appointed by the office of administrative hearings [COMMISSION] who 18 shall rule on the presentation of evidence and other procedural matters. Hearings shall 19 be conducted in accordance with regulations adopted under AS 16.43.110(b). 20 * Sec. 85. AS 16.43.960(e) is amended to read: 21 (e) The failure of a respondent properly served under (b) of this section to 22 appear at the hearing is not grounds for setting aside any [COMMISSION] action 23 taken by the office of administrative hearings. However, the office of 24 administrative hearings [COMMISSION] may in its discretion order a continuance 25 or second hearing. 26 * Sec. 86. AS 16.43.960(g) is amended to read: 27 (g) The provisions of this section [APPLY TO CONDUCT OCCURRING 28 AFTER JANUARY 1, 1973, BUT] do not affect a permit held by a person who is a 29 bona fide purchaser. Failure to correct false information is a continuing offense. 30 * Sec. 87. AS 16.43.960(h) is amended to read: 31 (h) Judicial review of [COMMISSION] determinations made by the

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

01 renewal, duplication, or transfer of an entry or interim-use permit or vessel license or a 02 person who assists another by knowingly making a false statement to the department 03 [COMMISSION] for the purpose of obtaining a benefit for another, is guilty of the 04 crime of unsworn falsification in the second degree as set out in AS 11.56.210. Upon 05 conviction, the person is also subject to suspension of commercial fishing privileges 06 and revocation of commercial fishing permits under (i) of this section. 07 * Sec. 92. AS 16.43.970(e) is amended to read: 08 (e) Notwithstanding any other provision of this section, an interim-use or entry 09 permit may not be transferred while under suspension, without the consent of the 10 department [COMMISSION]. 11 * Sec. 93. AS 16.43.970(i) is amended to read: 12 (i) Upon the conviction of a person for an offense described under (a), (b), or 13 (g) of this section, the court shall immediately notify the department 14 [COMMISSION] of the conviction. The notice provided by the court shall be 15 accompanied by an order suspending commercial fishing privileges and revoking 16 commercial fishing permits under (a) of this section, as appropriate. The department 17 [COMMISSION] shall, upon receipt of 18 (1) an order from the court under (a) of this section, suspend the 19 commercial fishing privileges of a person for the period set by the court and revoke 20 commercial fishing permits held by the person as directed by the court; 21 (2) a notice from the court that a person has been convicted of a third 22 or subsequent violation of (a) of this section, suspend all commercial fishing privileges 23 of the person for a period of three years from the date of conviction and revoke all 24 commercial fishing permits held by the person; 25 (3) a notice from the court that a person has been convicted of a 26 violation described under (b) of this section, suspend all commercial fishing privileges 27 of the person for a period of three years from the date of conviction and revoke all 28 commercial fishing permits held by the person; 29 (4) a notice from the court that a person has been convicted of a 30 violation described under (g)(1) of this section, suspend all commercial fishing 31 privileges of the person for a period of one year from the date of conviction;

01 (5) a notice from the court that a person has been convicted of a 02 violation described under (g)(2) of this section, suspend all commercial fishing 03 privileges of the person for a period of two years from the date of conviction; 04 (6) a notice from the court that a person has been convicted of a 05 violation described under (g)(3) of this section, suspend all commercial fishing 06 privileges of the person for a period of five years from the date of conviction. 07 * Sec. 94. AS 16.43.975 is amended to read: 08 Sec. 16.43.975. Public disclosure of certain documents prohibited. 09 Documents submitted to the department [COMMISSION] containing information 10 relating to an individual's personal finances and information supplied by individuals 11 for research purposes, produced in response to requests by the department 12 [COMMISSION], are not subject to public disclosure. 13 * Sec. 95. AS 16.43.980(a) is amended to read: 14 (a) The department [COMMISSION] shall prepare an annual report and 15 notify the legislature that it is available. The report must include but not be limited to 16 the following: 17 (1) a progress report on the reduction of entry permits to optimum 18 levels; 19 (2) recommendations for additional legislation relating to the 20 regulation of entry of participants and vessels into Alaska commercial fisheries. 21 * Sec. 96. AS 16.43.990 is amended by adding a new paragraph to read: 22 (12) "commissioner" means the commissioner of fish and game; 23 * Sec. 97. AS 16.43.990(4) is amended to read: 24 (4) "fishery" means the commercial taking of a specific fishery 25 resource in a specific administrative area with a specific type of gear; however, the 26 department [COMMISSION] may designate a fishery to include more than one 27 specific administrative area, gear type, or fishery resource; 28 * Sec. 98. AS 16.43.990 is amended by adding a new paragraph to read: 29 (12) "department" means the Department of Fish and Game unless 30 specifically provided otherwise. 31 * Sec. 99. AS 25.27.230(c) is amended to read:

01 (c) The lien shall attach to all real and personal property of the obligor and be 02 effective on the date of recording of the lien with the recorder of the recording district 03 in which the property attached is located. A lien against earnings shall attach and be 04 effective upon filing with the recorder of the recording district in which the employer 05 does business or maintains an office or agent for the purpose of doing business. A lien 06 filed at an office [THE OFFICES] of the Department of Fish and Game 07 [COMMERCIAL FISHERIES ENTRY COMMISSION IN JUNEAU] against a 08 limited entry permit issued under AS 16.43 is considered to have been filed against the 09 permit in all recording districts in which the permit holder uses the permit. 10 * Sec. 100. AS 37.05.146(c)(28) is amended to read: 11 (28) Department of Fish and Game [ALASKA COMMERCIAL 12 FISHERIES ENTRY COMMISSION] under AS 16.05.490, 16.05.530, and AS 16.43; 13 * Sec. 101. AS 43.76.015(f) is amended to read: 14 (f) In this section, "eligible interim-use permit and entry permit holder" means 15 an individual who, 90 days before the date ballots must be postmarked to be counted 16 in an election under this section, is listed in the records of the Department of Fish 17 and Game [ALASKA COMMERCIAL FISHERIES ENTRY COMMISSION] as the 18 legal owner of an interim-use permit or an entry permit that [WHICH] authorizes the 19 individual to fish commercially in an administrative area established [BY THE 20 ALASKA COMMERCIAL FISHERIES ENTRY COMMISSION] under 21 AS 16.43.200, which is included, in whole or in part, in the region in which the 22 election is held. 23 * Sec. 102. AS 43.76.160(g) is amended to read: 24 (g) In this section, "eligible interim-use permit and entry permit holder" means 25 an individual who, 90 days before the date ballots must be postmarked to be counted 26 in an election under this section, is listed in the records of the Department of Fish 27 and Game [ALASKA COMMERCIAL FISHERIES ENTRY COMMISSION] as the 28 legal holder of an interim-use permit for dive gear or an entry permit for dive gear that 29 authorizes the individual to fish commercially in the administrative area for the 30 species of fishery resource for which the dive fishery management assessment is to be 31 approved, amended, or terminated.

01 * Sec. 103. AS 43.76.210(1) is amended to read: 02 (1) "administrative area" means an area established by the 03 Department of Fish and Game [ALASKA COMMERCIAL FISHERIES ENTRY 04 COMMISSION] under AS 16.43.200 for regulating and controlling entry into 05 fisheries using dive gear; 06 * Sec. 104. AS 43.76.230(g) is amended to read: 07 (g) In this section, "eligible interim-use permit and entry permit holder" means 08 an individual who, 90 days before the date ballots must be postmarked to be counted 09 in an election under this section, is listed in the records of the Department of Fish 10 and Game [ALASKA COMMERCIAL FISHERIES ENTRY COMMISSION] as the 11 legal holder of an interim-use permit for salmon fishing gear or an entry permit for 12 salmon fishing gear that authorizes the individual to fish commercially in the salmon 13 fishery for which the salmon fishery assessment is to be approved, amended, or 14 terminated. 15 * Sec. 105. AS 43.76.280(1) is amended to read: 16 (1) "administrative area" means an area established by the 17 Department of Fish and Game [ALASKA COMMERCIAL FISHERIES ENTRY 18 COMMISSION] under AS 16.43.200 for regulating and controlling entry into salmon 19 fisheries; 20 * Sec. 106. AS 43.76.300 is amended to read: 21 Sec. 43.76.300. Permit buy-back assessment. A person holding a limited 22 entry permit or interim-use permit under AS 16.43 for a fishery subject to a permit 23 buy-back assessment established by the Department of Fish and Game [ALASKA 24 COMMERCIAL FISHERIES ENTRY COMMISSION] under AS 16.43.310 shall pay 25 the permit buy-back assessment at the rate established by the Department of Fish and 26 Game [COMMISSION] on the value, as defined in AS 43.75.290, of fish that the 27 person removes from the state or transfers to a buyer in the state under the authority 28 conferred by the limited entry permit or interim-use permit. The buyer shall collect the 29 permit buy-back assessment at the time the fish is acquired by the buyer. 30 * Sec. 107. AS 43.76.370(i) is amended to read: 31 (i) In this section, "eligible interim-use permit and entry permit holder" means

01 an individual who, 90 days before the date ballots must be postmarked to be counted 02 in an election under this section, is listed in the records of the Department of Fish 03 and Game [ALASKA COMMERCIAL FISHERIES ENTRY COMMISSION] as the 04 legal owner of an interim-use permit or an entry permit that authorizes the individual 05 to operate commercial fishing gear in the fishery that is or will be subject to the 06 seafood development tax that is the subject of the election. 07 * Sec. 108. AS 44.64.030(a) is amended by adding a new paragraph to read: 08 (52) AS 16.43 (entry and participation in commercial fisheries by the 09 Department of Fish and Game). 10 * Sec. 109. AS 44.81.231(d) is amended to read: 11 (d) Upon payment of the loan, the bank shall certify to the Department of 12 Fish and Game [ALASKA COMMERCIAL FISHERIES ENTRY COMMISSION] 13 that the loan has been repaid, and the Department of Fish and Game 14 [COMMISSION] shall amend the permit certificate to list the equitable owner as the 15 holder, and the legal interest of the bank shall terminate. 16 * Sec. 110. AS 44.81.241 is amended to read: 17 Sec. 44.81.241. Initial notice of default. If there is a default on a loan secured 18 by a permit pledged under AS 44.81.231, the bank shall notify the borrowers and 19 guarantors on the loan of the default and of the right to cure the default by sending a 20 notice by certified mail to their last known address or addresses on file with the bank. 21 The notice must include 22 (1) the date of the notice; 23 (2) a description of the security given for the loan, including the 24 number assigned by the Department of Fish and Game [COMMISSION] and the 25 name of the equitable owner of each permit pledged to secure the loan; 26 (3) the date and nature of the default; 27 (4) the amount of arrearages as of the date of the notice; 28 (5) the total indebtedness, including interest, penalties, and costs of 29 collection, remaining owing on the loan as of the date of the notice; 30 (6) the amount of daily interest to accrue from the date of the notice; 31 (7) a statement that the costs of collection of the loan incurred by the

01 bank after the date of the notice will be added to the total amount of the indebtedness 02 owing on the loan; 03 (8) a statement that the default may be cured within 60 days from the 04 date of the notice or within an extended time period that is specified in an extension 05 notice provided by the bank within the 60-day period under AS 44.81.249; 06 (9) the place where payment of arrearages or other cure may be made; 07 and 08 (10) a statement in at least 10 point bold type stating: 09 "IMPORTANT: UNLESS YOU CURE THE LOAN DEFAULT 10 WITHIN THE TIME SPECIFIED BY THIS NOTICE, THE TOTAL 11 INDEBTEDNESS OWING ON THE LOAN SHALL BE IMMEDIATELY 12 DUE AND PAYABLE TO THE BANK WITHOUT FURTHER NOTICE TO 13 YOU. ALSO, THE BANK SHALL THEN BE ENTITLED TO TAKE ANY 14 LEGAL ACTION AGAINST YOU TO COLLECT THE LOAN, 15 INCLUDING THE INSTITUTION OF LAWSUITS AND THE 16 FORECLOSURE OF THE PLEDGE OF ANY PERMIT PLEDGED TO 17 SECURE THIS LOAN." 18 * Sec. 111. AS 44.81.245 is amended to read: 19 Sec. 44.81.245. Foreclosure. The bank may foreclose on a permit pledge that 20 secures a loan by sending to the equitable owner of the permit pledged and any other 21 borrowers and guarantors on the loan a notice of foreclosure. The notice shall be sent 22 by certified mail to their last known address or addresses on file with the bank and 23 must include 24 (1) the date of the notice; 25 (2) a statement that the total indebtedness owing on the loan became 26 due and payable to the bank because the loan default was not cured within the time 27 specified in the notice of default and right to cure provided under AS 44.81.241, and 28 that as a result the bank is entitled to take legal action to collect the loan, including the 29 forfeiture of a permit pledge that secures the loan and the institution of legal action; 30 (3) a description of the permit pledge that is being foreclosed by the 31 notice, including an identification of the permit by the number assigned by the

01 Department of Fish and Game [COMMISSION] and the name of the equitable 02 owner; 03 (4) the amount of the total indebtedness owing as of the date of the 04 notice; 05 (5) the amount of daily interest that accrues from the date of the notice; 06 (6) a statement that the costs of collection of the loan incurred by the 07 bank after the date of the notice will be added to the total amount of the indebtedness 08 due on the loan; 09 (7) a statement that to avoid forfeiture of all rights of the equitable 10 owner of the permit identified in the notice, the loan must be paid in full within 60 11 days from the date of the notice or within an extended time period that is specified in 12 an extension notice provided by the bank within the 60-day period under 13 AS 44.81.249; 14 (8) a statement that once a forfeiture of all rights of the equitable 15 owner of a permit described in the notice occurs, the permit may not be redeemed; 16 (9) a statement of the right of the equitable owner to nominate a person 17 to assume the loan under AS 44.81.250(c); 18 (10) the place where payment in full may be made; and 19 (11) a notice in at least 10 point bold type stating: 20 "IMPORTANT: IF THE LOAN IS NOT PAID IN FULL BY THE 21 DATE SPECIFIED, ALL RIGHTS OF THE EQUITABLE OWNER TO THE 22 PERMIT IDENTIFIED IN THIS NOTICE WILL BE FORFEITED 23 WITHOUT FURTHER NOTICE TO YOU. IN THAT EVENT, THERE 24 WILL NOT BE A RIGHT OF REDEMPTION OF THE PERMIT. IN 25 ADDITION, THE BANK MAY NOW TAKE OTHER ACTION TO 26 COLLECT THE LOAN, INCLUDING THE INSTITUTION OF LEGAL 27 ACTION AGAINST YOU AND THE FORECLOSURE OF OTHER 28 PERMIT PLEDGES THAT SECURE THE LOAN." 29 * Sec. 112. AS 44.81.247(a) is amended to read: 30 (a) If a loan is not paid in full within the time specified by the notice provided 31 for the loan under AS 44.81.245, the equitable interest in the permit identified in the

01 notice terminates by operation of law without further notice. The Department of Fish 02 and Game [COMMISSION] shall cancel an entry permit card issued to the equitable 03 owner of the permit immediately upon receipt by the Department of Fish and Game 04 [COMMISSION] of a certificate of termination containing a copy of the notices 05 required by AS 44.81.241 and 44.81.245. 06 * Sec. 113. AS 44.81.250(a) is amended to read: 07 (a) Upon foreclosure of a pledge of an entry permit under AS 44.81.241 - 08 44.81.249 or the termination of a debtor's interest in an entry permit under 09 AS 44.81.247(b), the bank shall determine if the permit is subject to a buy-back 10 program under AS 16.43.290 - 16.43.330 and, if it is subject to a buy-back program, 11 shall offer the permit to the Department of Fish and Game [COMMISSION] at a 12 price equal to the outstanding indebtedness on the loan. 13 * Sec. 114. AS 44.81.250(b) is amended to read: 14 (b) If the permit is not subject to a buy-back program, or if the Department of 15 Fish and Game [COMMISSION] fails to buy back the permit within 30 days after the 16 Department of Fish and Game [COMMISSION] receives the offer, the bank shall 17 sell the permit to a person who qualifies as a transferee of an entry permit under 18 AS 16.43 and the regulations adopted by the Department of Fish and Game 19 [COMMISSION]. The bank shall give preference to an offer to purchase a permit 20 made by a state resident if the price offered is equal to or greater than the price offered 21 by a nonresident. If the proceeds of the sale of a permit exceed the amount necessary 22 to pay the indebtedness in full, the bank shall remit the excess to the borrower. 23 * Sec. 115. AS 16.10.360(1); AS 16.43.020, 16.43.030, 16.43.040, 16.43.050, 16.43.060, 24 16.43.070, 16.43.080, 16.43.990(1); AS 39.25.110(11)(D); AS 39.50.200(b)(10); and 25 AS 44.81.350(3) are repealed. 26 * Sec. 116. The uncodified law of the State of Alaska is amended by adding a new section 27 to read: 28 TRANSITION. Litigation, hearings, investigations, and other proceedings pending 29 under a law amended or repealed by this Act, or in connection with functions transferred by 30 this Act, continue in effect and may be continued and completed notwithstanding a transfer or 31 amendment or repeal provided for in this Act. Certificates, orders, and regulations issued or

01 adopted by the Alaska Commercial Fisheries Entry Commission under authority of a law 02 amended or repealed by this Act remain in effect for the term issued or until revoked, vacated, 03 or otherwise modified under the provisions of this Act. Contracts, rights, liabilities, and 04 obligations created by or under a law amended or repealed by this Act, and in effect on the 05 effective date of this Act, remain in effect notwithstanding this Act's taking effect. Records, 06 equipment, appropriations, and other property of the Alaska Commercial Fisheries Entry 07 Commission shall be transferred to the Department of Fish and Game to implement the 08 provisions of this Act. 09 * Sec. 117. The uncodified law of the State of Alaska is amended by adding a new section 10 to read: 11 EMPLOYEES. Employees of the Alaska Commercial Fisheries Entry Commission 12 become employees of the Department of Fish and Game on the effective date of this Act.