CSSB 172(RES): "An Act relating to management of enhanced stocks of shellfish; authorizing certain nonprofit organizations to engage in shellfish stock rehabilitation efforts, carry out shellfish enhancement projects, and operate shellfish hatcheries; relating to application fees for salmon hatchery permits; and providing for an effective date."
00 CS FOR SENATE BILL NO. 172(RES) 01 "An Act relating to management of enhanced stocks of shellfish; authorizing certain 02 nonprofit organizations to engage in shellfish stock rehabilitation efforts, carry out 03 shellfish enhancement projects, and operate shellfish hatcheries; relating to application 04 fees for salmon hatchery permits; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 16.05.730(c) is amended to read: 07 (c) The board may consider the need of enhancement projects authorized 08 under AS 16.10.400 and contractors who operate state-owned enhancement projects 09 under AS 16.10.480 to harvest and sell fish produced by the enhancement project that 10 are not needed for brood stock to obtain funds for the purposes allowed under 11 AS 16.10.450 or 16.10.480(d). The board may consider the need of enhancement 12 projects authorized under AS 16.12.010 to harvest and sell shellfish that are not 13 needed for brood stock to obtain funds for the purposes allowed under 14 AS 16.12.080. The board may exercise its authority under this title as it considers
01 necessary to direct the department to provide a reasonable harvest of fish, in addition 02 to the fish needed for brood stock, to an enhancement project to obtain funds for the 03 enhancement project if the harvest is consistent with sustained yield of wild fish 04 stocks. The board may adopt a fishery management plan to provide fish to an 05 enhancement project to obtain funds for the purposes allowed under AS 16.10.450, 06 [OR] 16.10.480(d), or AS 16.12.080. 07 * Sec. 2. AS 16.10.400(b) is amended to read: 08 (b) The application for a permit under this section shall be on a form 09 prescribed by the department and be accompanied by an application fee of $1,000 10 [$100]. The commissioner may waive the submission of an application for a permit to 11 operate a hatchery under AS 16.10.480. 12 * Sec. 3. AS 16 is amended by adding a new chapter to read: 13 Chapter 12. Shellfish Stock Rehabilitation Efforts, Enhancement Projects, and 14 Hatcheries. 15 Sec. 16.12.010. Permits for shellfish stock rehabilitation, enhancement 16 projects, or hatcheries. (a) Subject to the restrictions imposed by statute or regulation 17 under this chapter, the commissioner may issue a permit to a nonprofit corporation 18 organized under AS 10.20 for stock rehabilitation, an enhancement project, or the 19 construction and operation of a shellfish hatchery. 20 (b) Each applicant for a permit under this section shall apply in a format 21 prescribed by the department and pay an application fee of $1,000. 22 (c) A permit issued under this section is nontransferable. If a permit holder 23 sells or leases a facility for which a permit has been issued under this section, the new 24 operator shall apply for a permit under this section. 25 (d) The commissioner shall consult with and solicit recommendations from 26 federal and state agencies and technical experts in the relevant area regarding permit 27 stipulations and issuance. 28 (e) The commissioner may not issue a permit under this section unless the 29 commissioner determines that the action would result in substantial public benefits and 30 would not jeopardize natural stocks. 31 Sec. 16.12.020. Hearings before permit issuance. (a) At least 30 days before
01 the issuance of a permit under AS 16.12.010, the department shall hold a public 02 hearing in a central location in the vicinity of the proposed release. 03 (b) Notice of the hearing shall be published in a newspaper of general 04 circulation once a week for three consecutive weeks, with completion of the notice at 05 least five days before the hearing. 06 (c) The department shall conduct the hearing. The applicant shall present a 07 plan for the proposed stock rehabilitation effort, enhancement project, or hatchery 08 describing relevant facts that may be of interest to the department or to the public and 09 the capacity of the facility. The department shall give interested members of the public 10 an opportunity to be heard. 11 (d) The department shall record and consider objections and recommendations 12 offered by the public at the hearing conducted under this section. The department shall 13 respond in writing, not later than 30 days after the hearing is held, to a specific 14 objection offered by a member of the public at the hearing. 15 Sec. 16.12.030. Conditions of a permit. The department shall require, in a 16 permit issued under this chapter, that the permit holder 17 (1) procure shellfish from the department or a source approved by the 18 department; 19 (2) place shellfish only in water of the state specifically designated in 20 the permit; 21 (3) not procure or place genetically modified shellfish into the water of 22 the state; 23 (4) not resell or transfer shellfish sold to a permit holder by the state or 24 by another party approved by the department; 25 (5) not release shellfish before approval of the department, and, for 26 purposes of pathological examination and approval, that the permit holder notify the 27 department at least 15 days before the date of the proposed release of shellfish; 28 (6) destroy diseased shellfish in a specific manner and place designated 29 by the department; 30 (7) harvest shellfish only at specific locations and under specific 31 conditions as designated by the department;
01 (8) make surplus shellfish available for sale first to the department and 02 then, after inspection and approval by the department, to other permit holders 03 operating under this chapter; 04 (9) provide a copy of the sales transaction to the department if surplus 05 shellfish are sold by a permit holder to another permit holder; 06 (10) release shellfish in an area where the shellfish will be available to 07 traditional fisheries, subject to the provisions of this chapter and regulations adopted 08 under this chapter. 09 Sec. 16.12.040. Alteration, suspension, or revocation of permit. (a) If a 10 permit holder fails to comply with the conditions and terms of the permit issued under 11 AS 16.12.010 within a reasonable period after notification by the department of 12 noncompliance, the permit may be suspended or revoked, in the discretion of the 13 commissioner. 14 (b) If the commissioner finds that the operation of the permitted activity is not 15 in the best interests of the public, the commissioner may alter the conditions of the 16 permit to mitigate the adverse effects of the operation or, if the adverse effects are 17 irreversible and cannot be mitigated sufficiently, initiate a termination of the operation 18 under the permit over a reasonable period under the circumstances, not to exceed four 19 years. During the period that the operation is being terminated, the permit holder may 20 harvest shellfish under the terms of the permit but may not release additional shellfish. 21 Sec. 16.12.050. Regulations relating to released shellfish. (a) Shellfish 22 released into the natural water of the state by a permit holder under this chapter are 23 available to the people for common use and are subject to regulation under applicable 24 law in the same way as shellfish occurring in their natural state except when they are 25 in a special location designated by the department for harvest by a permit holder. 26 (b) The Board of Fisheries may, after the issuance of a permit by the 27 commissioner, amend by regulation adopted in accordance with AS 44.62 28 (Administrative Procedure Act), the terms of the permit relating to the source of brood 29 stock, the harvest of shellfish by permit holders, and the specific locations designated 30 by the department for harvest. The Board of Fisheries may not adopt a regulation or 31 take an action regarding the issuance or denial of a permit required in this chapter.
01 Sec. 16.12.060. Department assistance and cooperation. (a) Before and after 02 permit issuance under AS 16.12.010, the department shall make reasonable efforts, 03 within the limits of time and resources, to advise and assist applicants or permit 04 holders, as appropriate, as to stock rehabilitation efforts, enhancement projects, or the 05 planning, construction, and operation of facilities. 06 (b) Nothing in this section exempts an applicant or permit holder from 07 compliance with this chapter or from compliance with the regulations or restrictions 08 adopted under this chapter. 09 Sec. 16.12.070. Brood stock sources. (a) The department shall approve the 10 source and number of shellfish taken for use as brood stock under AS 16.12.010 - 11 16.12.199. 12 (b) Where feasible, a permit holder shall first take shellfish from stocks native 13 to the area in which the shellfish will be released. 14 Sec. 16.12.080. Sale of shellfish; use of proceeds; quality and price. (a) A 15 permit holder that sells shellfish harvested from the natural water of the state, or sells 16 shellfish to another permit holder under this chapter, shall use the funds only for 17 reasonable operating costs, including debt retirement, expanding its facilities, shellfish 18 rehabilitation projects, shellfish research, or to assist in meeting the department's costs 19 of managing the affected fisheries for the area in which the shellfish release is located. 20 (b) A permit holder shall ensure that shellfish harvested and sold for human 21 consumption are of comparable quality to shellfish harvested by commercial fisheries 22 in the area and are sold at prices commensurate with the current market. 23 Sec. 16.12.090. Cost recovery fisheries. (a) A permit holder may harvest 24 shellfish for a stock rehabilitation effort, an enhancement project, or a hatchery in 25 (1) a special harvest area through agents or employees of or persons 26 under contract with the permit holder as provided under a permit from the department 27 or regulations of the Board of Fisheries; or 28 (2) a special harvest area through the common property fishery under 29 this section. 30 (b) A permit holder may, by a majority vote of the membership of the permit 31 holder's board, elect to harvest shellfish in a special harvest area established for stock
01 rehabilitation, an enhancement project, or a hatchery through the common property 02 fishery. At the request of the permit holder and if the commissioner determines that 03 there are no allocative issues involved, and after reasonable consultation with affected 04 commercial fishermen, the commissioner may adopt regulations governing the harvest 05 of shellfish in a special harvest area through a common property fishery. The 06 regulations must specify the terms, conditions, and rules under which the common 07 property fishery in the special harvest area shall be conducted, including requirements 08 for holding inspections and reporting of harvests and sales of shellfish taken in the 09 special harvest area. Following adoption of regulations by the department, before 10 January 15 of each year, the permit holder's board of directors, by a majority vote of 11 the board's membership, may determine whether the permit holder will operate under 12 the regulations adopted under this subsection during the current calendar year and 13 shall notify the department if the permit holder intends to operate under the regulations 14 adopted under this subsection. The Board of Fisheries may adopt regulations under 15 AS 16.05.251 regarding a fisheries management plan governing operations under this 16 subsection in a special harvest area, including allocation plans. Participation in the 17 fishery must be open to all interim-use permit and entry permit holders who hold 18 permits to operate a type of gear that may be used in the fishing district in which the 19 special harvest area is located if that type of gear is authorized by regulation to be used 20 in the special harvest area. An interim-use permit holder or an entry permit holder who 21 takes shellfish in a common property fishery in a special harvest area may sell the 22 shellfish to a fish buyer or processor who is licensed to do business in the state. 23 (c) As a condition of participation in a common property shellfish fishery in a 24 special harvest area under this section, a fisherman who participates in the fishery is 25 subject to the payment of the assessment levied under (d) of this section on the 26 projected value of the shellfish or on the pounds of shellfish harvested. The 27 assessment is levied on the shellfish that the fisherman takes in the special harvest area 28 and sells to a licensed buyer. The buyer of the shellfish must be licensed under 29 AS 43.75, and the buyer shall collect the assessment on shellfish taken in a special 30 harvest area at the time of purchase and remit the assessment to the Department of 31 Revenue in accordance with regulations adopted by the Department of Revenue.
01 (d) The Department of Revenue may, by regulation, annually, by March 1 of 02 each year, set the assessment levied on shellfish taken in a special harvest area in 03 consultation with the Department of Commerce, Community, and Economic 04 Development, the permit holder, and representatives of affected commercial 05 fishermen. The assessment shall provide sufficient revenue to cover debt service, 06 reasonable operating expenses, reasonable maintenance expenses, and development or 07 maintenance of a reserve fund up to 100 percent of annual operating costs of the 08 permit holder's stock rehabilitation effort, enhancement project, or hatchery. In setting 09 the assessment, the department shall consider the estimated harvest of shellfish in the 10 special harvest area, the projected price to be paid for shellfish in the region, the 11 amount of the existing reserve held by the permit holder, and the amount by which the 12 assessment collected in previous years exceeded or fell short of the amount anticipated 13 to be collected. The assessment may not exceed 50 percent of the value of the 14 shellfish. The department may levy the assessment as a percentage of the projected 15 value of the shellfish harvested in the special harvest area or as a flat rate on each 16 pound of shellfish harvested in the area, to the nearest whole cent. 17 (e) The Department of Revenue shall deposit the assessments collected under 18 this section in the general fund. The legislature may appropriate the funds collected 19 under this section to the permit holder who is rehabilitating stock, carrying out an 20 enhancement project, or operating a facility in the special harvest area in which the 21 assessment was levied. A permit holder shall use funds appropriated under this 22 subsection for the purposes set out under AS 16.12.080(a). The legislature may also 23 appropriate funds collected under this section to the Department of Revenue for costs 24 incurred by the department under this section. 25 (f) A person who violates a regulation adopted under (b) of this section is 26 guilty of a violation under AS 16.05.722 or a misdemeanor under AS 16.05.723. A 27 person who violates a regulation adopted by the Department of Revenue under (c) of 28 this section is guilty of a class A misdemeanor. 29 (g) In this section, 30 (1) "special harvest area" means an area designated by the 31 commissioner or the Board of Fisheries where shellfish may be harvested by permit
01 holders under this chapter and by the common property fishery; 02 (2) "value" has the meaning given in AS 43.75.290. 03 Sec. 16.12.100. Inspection by the department. (a) A permit holder shall 04 allow the department to inspect the permit holder's stock rehabilitation facility, 05 enhancement project facility, or hatchery at any time the stock rehabilitation facility, 06 enhancement project facility, or hatchery is in operation. The department shall conduct 07 the inspection in a reasonable manner. 08 (b) The department shall bear the cost of an inspection performed under this 09 section. 10 Sec. 16.12.110. Annual report. A person who holds a permit under this 11 chapter shall submit an annual report not later than December 15 to the department. 12 The report must be made on a form prescribed by the department and contain 13 information pertaining to 14 (1) species; 15 (2) brood stock source; 16 (3) number, age, gender, and size of spawners; 17 (4) number of eggs collected and juveniles produced; and 18 (5) the number, age, gender, and size of harvested shellfish attributable 19 to releases by the permit holder. 20 Sec. 16.12.199. Definitions. In this chapter, 21 (1) "enhancement project" means a project to augment the yield and 22 harvest of shellfish above naturally occurring levels; enhancement projects include 23 projects implementing artificial or semi-artificial shellfish production systems or 24 projects to increase the area of productive natural shellfish habitat; 25 (2) "facility" means a hatchery or other facility for a stock 26 rehabilitation effort or fishery enhancement project; 27 (3) "genetically modified shellfish" means shellfish whose genetic 28 structure has been altered at the molecular level by recombinant DNA and RNA 29 techniques, cell fusion, gene deletion or doubling, introduction of exogenous genetic 30 material, alteration of the position of a gene, or other similar procedure using artificial 31 processes;
01 (4) "hatchery" means a facility for the artificial propagation of stock, 02 including rearing of shellfish and release of shellfish into the natural water of the state; 03 (5) "shellfish" means a species of crustacean, mollusk, or other 04 invertebrate, in any stage of its life cycle, that is indigenous to state water; 05 (6) "stock rehabilitation" means efforts to restore a shellfish stock to its 06 natural levels of productivity. 07 * Sec. 4. AS 16.43.400(a) is amended to read: 08 (a) In addition to entry permits, interim-use permits, and educational permits, 09 the commission may issue special harvest area entry permits to 10 (1) holders of private, nonprofit hatchery permits issued by the 11 Department of Fish and Game under AS 16.10.400 - 16.10.475 for salmon; or 12 (2) nonprofit organizations holding a permit under AS 16.12 for a 13 shellfish stock rehabilitation effort, a shellfish enhancement project, or a shellfish 14 hatchery. 15 * Sec. 5. AS 16.43.430 is amended to read: 16 Sec. 16.43.430. Authorized gear. For the purposes of harvesting salmon or 17 shellfish, a special harvest area entry permit holder may employ any fishing gear 18 designated as legal gear in the applicable special harvest area by the Board of 19 Fisheries. 20 * Sec. 6. AS 17.20.049(b)(1) is amended to read: 21 (1) "farmed fish" means fish that is propagated, farmed, or cultivated 22 in a facility that grows, farms, or cultivates the fish in captivity or under positive 23 control but that is not a salmon hatchery that is owned by the state or that holds a 24 salmon hatchery permit under AS 16.10.400 or a shellfish hatchery that is 25 permitted under AS 16.12.010; in this paragraph, "positive control" has the meaning 26 given in AS 16.40.199; 27 * Sec. 7. AS 43.20.012(a) is amended to read: 28 (a) The tax imposed by this chapter does not 29 (1) apply to an individual; 30 (2) apply to a fiduciary; 31 (3) for a tax year beginning after December 31, 2012, apply to an
01 Alaska corporation that is a qualified small business and that meets the active business 02 requirement in 26 U.S.C. 1202(e) as that subsection read on January 1, 2012; [OR] 03 (4) for a tax year beginning after June 30, 2007, apply to the income 04 received by a regional association qualified under AS 16.10.380 or nonprofit 05 corporation holding a hatchery permit under AS 16.10.400 from the sale of salmon or 06 salmon eggs under AS 16.10.450 or from a cost recovery fishery under AS 16.10.455; 07 or 08 (5) apply to income received by a nonprofit corporation holding a 09 permit under AS 16.12.010 from the sale of shellfish under AS 16.12.080 or from 10 a cost recovery fishery under AS 16.12.090. 11 * Sec. 8. AS 43.20.012(a), as repealed and reenacted by sec. 2, ch. 55, SLA 2013, is 12 amended to read 13 (a) The tax imposed by this chapter does not apply to 14 (1) an individual; 15 (2) a fiduciary; [OR] 16 (3) the income received by a regional association qualified under 17 AS 16.10.380 or nonprofit corporation holding a hatchery permit under AS 16.10.400 18 from the sale of salmon or salmon eggs under AS 16.10.450 or from a cost recovery 19 fishery under AS 16.10.455; or 20 (4) the income received by a nonprofit corporation holding a 21 permit under AS 16.12.010 from the sale of shellfish under AS 16.12.080 or from 22 a cost recovery fishery under AS 16.12.090. 23 * Sec. 9. AS 43.76.390 is amended to read: 24 Sec. 43.76.390. Exemption. AS 43.76.350 - 43.76.399 do not apply to salmon 25 or shellfish harvested under a special harvest area entry permit issued under 26 AS 16.43.400. 27 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 APPLICABILITY. AS 16.10.400(b), as amended by sec. 2 of this Act, applies to 30 salmon hatchery permits applied for on or after the effective date of sec. 2 of this Act. 31 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to
01 read: 02 TRANSITION: REGULATIONS. The Department of Fish and Game may adopt 03 regulations necessary to implement this Act. The regulations take effect under AS 44.62 04 (Administrative Procedure Act), but not before the effective date of the law implemented by 05 the regulation. 06 * Sec. 12. Section 11 of this Act takes effect immediately under AS 01.10.070(c). 07 * Sec. 13. Section 8 of this Act takes effect on the effective date of sec. 2, ch. 55, SLA 08 2013.