SB 22 — An Act relating to management of enhanced stocks of shellfish; authorizing certain nonprofit organizations to engage in shellfish enhancement projects; relating to application fees for salmon hatchery permits; and providing for an effective date.

1128 (e) The commissioner may not issue a permit under this section unless the 1229 commissioner determines that the action would result in substantial public benefits and 1330 would not jeopardize natural stocks.

1431 Sec.

(a) At least 30 days before 15 the issuance of a permit under AS 16.12.010, the department shall hold a public 1602 hearing in a central location in the vicinity of the proposed release of shellfish.

1703 (b) Notice of the hearing shall be published in a newspaper of general 1804 circulation once a week for three consecutive weeks, with completion of the notice at 1905 least five days before the hearing.

2006 (c) The department shall conduct the hearing.

The applicant shall present a 2107 plan for the proposed shellfish enhancement project describing relevant facts that may 2208 be of interest to the department or to the public and the capacity of the facility.

The 2309 department shall give interested members of the public an opportunity to be heard.

2410 (d) The department shall record and consider objections and recommendations 2511 offered by the public at the hearing conducted under this section.

The department shall 2612 respond in writing, not later than 30 days after the hearing is held, to a specific 2713 objection offered by a member of the public at the hearing.

2814 Sec.

The department shall require, in a 2915 permit issued under this chapter, that the permit holder 3016 (1) procure shellfish from the department or a source approved by the 3117 department;

18 (2) place shellfish only in water of the state specifically designated in 0219 the permit;

0320 (3) not procure or place genetically modified shellfish into the water of 0421 the state;

0522 (4) not resell or transfer shellfish sold to a permit holder by the state or 0623 by another party approved by the department;

0724 (5) not release shellfish before approval of the department, and, for 0825 purposes of pathological examination and approval, that the permit holder notify the 0926 department at least 15 days before the date of the proposed release of shellfish;

1027 (6) destroy diseased shellfish in a specific manner and place designated 1128 by the department;

1229 (7) harvest shellfish only at specific locations and under specific 1330 conditions as designated by the department;

1431 (8) make surplus shellfish available for sale first to the department and 15 then, after inspection and approval by the department, to other permit holders 1602 operating under this chapter;

1703 (9) provide a copy of the sales transaction to the department if surplus 1804 shellfish are sold by a permit holder to another permit holder;

1905 (10) release shellfish in an area where the shellfish will be available to 2006 traditional fisheries, subject to the provisions of this chapter and regulations adopted 2107 under this chapter.

2208 Sec.

(a) If a 2309 permit holder fails to comply with the conditions and terms of the permit issued under 2410 AS 16.12.010 within a reasonable period after notification by the department of 2511 noncompliance, the permit may be suspended or revoked, in the discretion of the 2612 commissioner.

2713 (b) If the commissioner finds that the operation of the permitted activity is not 2814 in the best interests of the public, the commissioner may alter the conditions of the 2915 permit to mitigate the adverse effects of the operation or, if the adverse effects are 3016 irreversible and cannot be mitigated sufficiently, initiate a termination of the operation 3117 under the permit over a reasonable period under the circumstances, not to exceed four 18 years.

During the period that the operation is being terminated, the permit holder may 0219 harvest shellfish under the terms of the permit but may not release additional shellfish.

0320 Sec.

(a) Shellfish 0421 released into the natural water of the state by a permit holder under this chapter are 0522 available to the people for common use and are subject to regulation under applicable 0623 law in the same way as shellfish occurring in their natural state except when they are 0724 in a special location designated by the department for harvest by a permit holder.

0825 (b) The Board of Fisheries may, after the issuance of a permit by the 0926 commissioner, amend by regulation adopted in accordance with AS 44.62 1027 (Administrative Procedure Act), the terms of the permit relating to the source of brood 1128 stock, the harvest of shellfish by permit holders, and the specific locations designated 1229 by the department for harvest.

The Board of Fisheries may not adopt a regulation or 1330 take an action regarding the issuance or denial of a permit required in this chapter.

1431 Sec.

(a) Before and after 15 permit issuance under AS 16.12.010, the department shall make reasonable efforts, 1602 within the limits of time and resources, to advise and assist applicants or permit 1703 holders, as appropriate, as to shellfish enhancement projects, including the planning, 1804 construction, and operation of facilities.

1905 (b) Nothing in this section exempts an applicant or permit holder from 2006 compliance with this chapter or from compliance with the regulations or restrictions 2107 adopted under this chapter.

2208 Sec.

(a) The department shall approve the 2309 source and number of shellfish taken for use as brood stock under AS 16.12.010 - 2410 16.12.199.

2511 (b) Where feasible, a permit holder shall first take shellfish from stocks native 2612 to the area in which the shellfish will be released.

2713 Sec.

(a) A 2814 permit holder that sells shellfish harvested from the natural water of the state, or sells 2915 shellfish to another permit holder under this chapter, shall use the funds only for 3016 reasonable operating costs, including debt retirement, expanding its facilities, shellfish 3117 enhancement projects, shellfish research, or to assist in meeting the department's costs 18 of managing the affected fisheries for the area in which the shellfish release is located.

0219 (b) A permit holder shall ensure that shellfish harvested and sold for human 0320 consumption are of comparable quality to shellfish harvested by commercial fisheries 0421 in the area and are sold at prices commensurate with the current market.

0522 Sec.

(a) A permit holder may harvest 0623 shellfish for a shellfish enhancement project in 0724 (1) a special harvest area through agents or employees of or persons 0825 under contract with the permit holder as provided under a permit from the department 0926 or regulations of the Board of Fisheries;

or 1027 (2) a special harvest area through the common property fishery under 1128 this section.

1229 (b) A permit holder may, by a majority vote of the membership of the permit 1330 holder's board, elect to harvest shellfish in a special harvest area established for an 1431 enhancement project through the common property fishery.

At the request of the 15 permit holder and if the commissioner determines that there are no allocative issues 1602 involved, and after reasonable consultation with affected commercial fishermen, the 1703 commissioner may adopt regulations governing the harvest of shellfish in a special 1804 harvest area through a common property fishery.

The regulations must specify the 1905 terms, conditions, and rules under which the common property fishery in the special 2006 harvest area shall be conducted, including requirements for holding inspections and 2107 reporting of harvests and sales of shellfish taken in the special harvest area.

Following 2208 adoption of regulations by the department, before January 15 of each year, the permit 2309 holder's board of directors, by a majority vote of the board's membership, may 2410 determine whether the permit holder will operate under the regulations adopted under 2511 this subsection during the current calendar year and shall notify the department if the 2612 permit holder intends to operate under the regulations adopted under this subsection.

2713 The Board of Fisheries may adopt regulations under AS 16.05.251 regarding a 2814 fisheries management plan governing operations under this subsection in a special 2915 harvest area, including allocation plans.

Participation in the fishery must be open to all 3016 interim-use permit and entry permit holders who hold permits to operate a type of gear 3117 that may be used in the fishing district in which the special harvest area is located if 18 that type of gear is authorized by regulation to be used in the special harvest area.

An 0219 interim-use permit holder or an entry permit holder who takes shellfish in a common 0320 property fishery in a special harvest area may sell the shellfish to a fish buyer or 0421 processor who is licensed to do business in the state.

0522 (c) As a condition of participation in a common property shellfish fishery in a 0623 special harvest area under this section, a fisherman who participates in the fishery is 0724 subject to the payment of the assessment levied under (d) of this section on the 0825 projected value of the shellfish or on the pounds of shellfish harvested.

The 0926 assessment is levied on the shellfish that the fisherman takes in the special harvest area 1027 and sells to a licensed buyer.

The buyer of the shellfish must be licensed under 1128 AS 43.75, and the buyer shall collect the assessment on shellfish taken in a special 1229 harvest area at the time of purchase and remit the assessment to the Department of 1330 Revenue in accordance with regulations adopted by the Department of Revenue.

1431 (d) The Department of Revenue may, by regulation, annually, by March 1 of 15 each year, set the assessment levied on shellfish taken in a special harvest area in 1602 consultation with the Department of Commerce, Community, and Economic 1703 Development, the permit holder, and representatives of affected commercial 1804 fishermen.

The assessment shall provide sufficient revenue to cover debt service, 1905 reasonable operating expenses, reasonable maintenance expenses, and development or 2006 maintenance of a reserve fund up to 100 percent of annual operating costs of the 2107 permit holder's shellfish enhancement project.

In setting the assessment, the 2208 department shall consider the estimated harvest of shellfish in the special harvest area, 2309 the projected price to be paid for shellfish in the region, the amount of the existing 2410 reserve held by the permit holder, and the amount by which the assessment collected 2511 in previous years exceeded or fell short of the amount anticipated to be collected.

The 2612 assessment may not exceed 50 percent of the value of the shellfish.

The department 2713 may levy the assessment as a percentage of the projected value of the shellfish 2814 harvested in the special harvest area or as a flat rate on each pound of shellfish 2915 harvested in the area, to the nearest whole cent.

3016 (e) The Department of Revenue shall deposit the assessments collected under 3117 this section in the general fund.

The legislature may appropriate the funds collected 18 under this section to the permit holder who is carrying out an enhancement project, 0219 including the operation of a facility, in the special harvest area in which the 0320 assessment was levied.

A permit holder shall use funds appropriated under this 0421 subsection for the purposes set out under AS 16.12.080(a).

The legislature may also 0522 appropriate funds collected under this section to the Department of Revenue for costs 0623 incurred by the department under this section.

0724 (f) A person who violates a regulation adopted under (b) of this section is 0825 guilty of a violation under AS 16.05.722 or a misdemeanor under AS 16.05.723.

A 0926 person who violates a regulation adopted by the Department of Revenue under (c) of 1027 this section is guilty of a class A misdemeanor.

1128 (g) In this section, 1229 (1) "special harvest area" means an area designated by the 1330 commissioner or the Board of Fisheries where shellfish may be harvested by permit 1431 holders under this chapter and by the common property fishery;

15 (2) "value" has the meaning given in AS 43.75.290.

1602 Sec.

(a) A permit holder shall 1703 allow the department to inspect the permit holder's enhancement project facility at any 1804 time the enhancement project facility is in operation.

The department shall conduct the 1905 inspection in a reasonable manner.

2006 (b) The department shall bear the cost of an inspection performed under this 2107 section.

2208 Sec.

A person who holds a permit under this 2309 chapter shall submit an annual report not later than December 15 to the department.

2410 The report must be made on a form prescribed by the department and contain 2511 information pertaining to 2612 (1) species;

2713 (2) the brood stock source;

2814 (3) the number, age, gender, and size of spawners;

2915 (4) the number of eggs collected and juveniles produced;

and 3016 (5) the number, age, gender, and size of harvested shellfish attributable 3117 to releases by the permit holder.

18 Sec.

In this chapter, 0219 (1) "enhancement project" means a project to 0320 (A) augment the yield and harvest of shellfish above naturally 0421 occurring levels by natural, artificial, or semi-artificial production systems;

0522 (B) rehabilitate a shellfish stock by restoring it to its natural 0623 levels of productivity;

or 0724 (C) increase the area of productive natural shellfish habitat;

0825 (2) "facility" means a hatchery or other facility for a shellfish 0926 enhancement project;

1027 (3) "genetically modified shellfish" means shellfish whose genetic 1128 structure has been altered at the molecular level by recombinant DNA and RNA 1229 techniques, cell fusion, gene deletion or doubling, introduction of exogenous genetic 1330 material, alteration of the position of a gene, or other similar procedure using artificial 1431 processes;

15 (4) "hatchery" means a facility for the artificial propagation of stock, 1602 including rearing of shellfish and release of shellfish into the natural water of the state;

1703 (5) "shellfish" means a species of crustacean, mollusk, or other 1804 invertebrate, in any stage of its life cycle, that is indigenous to state water.

1905 * Sec.

5.4.

2006 (a) In addition to entry permits, interim-use permits, and educational permits, 2107 the commission may issue special harvest area entry permits to 2208 (1) holders of private, nonprofit hatchery permits issued by the 2309 Department of Fish and Game under AS 16.10.400 - 16.10.475 for salmon;

or 2410 (2) nonprofit organizations holding a permit under AS 16.12 for a 2511 shellfish enhancement project.

2612 * Sec.

6.5.

2713 Sec.

For the purposes of harvesting salmon or 2814 shellfish, a special harvest area entry permit holder may employ any fishing gear 2915 designated as legal gear in the applicable special harvest area by the Board of 3016 Fisheries.

3117 * Sec.

7.6.

18 (1) "farmed fish" means fish that is propagated, farmed, or cultivated 0219 in a facility that grows, farms, or cultivates the fish in captivity or under positive 0320 control but that is not a salmon hatchery that is owned by the state or that holds a 0421 salmon hatchery permit under AS 16.10.400 or a shellfish facility that is permitted 0522 under AS 16.12.010;

in this paragraph, "positive control" has the meaning given in 0623 AS 16.40.199;

0724 * Sec.

8.7.

0825 (a) The tax imposed by this chapter does not 0926 (1) apply to an individual;

1027 (2) apply to a fiduciary;

1128 (3) for a tax year beginning after December 31, 2012, apply to an 1229 Alaska corporation that is a qualified small business and that meets the active business 1330 requirement in 26 U.S.C.

[OR] 1431 (4) for a tax year beginning after June 30, 2007, apply to the income 15 received by a regional association qualified under AS 16.10.380 or nonprofit 1602 corporation holding a hatchery permit under AS 16.10.400 from the sale of salmon or 1703 salmon eggs under AS 16.10.450 or from a cost recovery fishery under AS 16.10.455;

1804 or 1905 (5) apply to income received by a nonprofit corporation holding a 2006 permit under AS 16.12.010 from the sale of shellfish under AS 16.12.080 or from 2107 a cost recovery fishery under AS 16.12.090.

2208 * Sec.

9.8.

55, SLA 2013, is 2309 amended to read 2410 (a) The tax imposed by this chapter does not apply to 2511 (1) an individual;

2612 (2) a fiduciary;

[OR] 2713 (3) the income received by a regional association qualified under 2814 AS 16.10.380 or nonprofit corporation holding a hatchery permit under AS 16.10.400 2915 from the sale of salmon or salmon eggs under AS 16.10.450 or from a cost recovery 3016 fishery under AS 16.10.455;

or 3117 (4) the income received by a nonprofit corporation holding a 18 permit under AS 16.12.010 from the sale of shellfish under AS 16.12.080 or from 0219 a cost recovery fishery under AS 16.12.090.

0320 * Sec.

10.9.

0421 Sec.

AS 43.76.350 - 43.76.399 do not apply to salmon 0522 or shellfish harvested under a special harvest area entry permit issued under 0623 AS 16.43.400.

0724 * Sec.

11.10.

The uncodified law of the State of Alaska is amended by adding a new section to 0825 read:

0926 APPLICABILITY.

32 of this Act, applies to 1027 salmon hatchery permits applied for on or after the effective date of sec.

32 of this Act.

1128 * Sec.

12.11.

The uncodified law of the State of Alaska is amended by adding a new section to 1229 read:

1330 TRANSITION:

The Department of Fish and Game and the Board 14 of Fisheries may adopt 31 regulations necessary to implement this Act.

The regulations take 15 effect under AS 44.62 (Administrative Procedure Act), but not before the effective date of the 16 law implemented by 02 the regulation.

1703 * Sec.

12.

Section 11 of this Act takes effect immediately under AS 01.10.070(c).

04 * Sec.

Section 128 of this Act takes effect immediatelyon underthe ASeffective 01.10.070(c).date of sec.

18 * Sec.

14.

Section 9 of this Act takes effect on the effective date of sec.

55, SLA 1905 2013.