AS Title 16, Chapter 43: Regulation of Entry into Alaska Commercial Fisheries

Article 1. Alaska Commercial Fisheries Entry Commission. Chapter 43. Regulation of Entry into Alaska Commercial Fisheries. Sec. 16.43.010. Purpose and findings of fact. (a) It is the purpose of this chapter to promote the conservation and the sustained yield management of Alaska's fishery resource and the economic health and stability of commercial fishing in Alaska by regulating and controlling entry of participants into the commercial fisheries in the public interest and without unjust discrimination. (b) The legislature finds that commercial fishing for fishery resources has reached levels of participation, on both a statewide and an area basis, that have impaired or threaten to impair the economic welfare of the fisheries of the state, the overall efficiency of the harvest, and the sustained yield management of the fishery resource. Sec. 16.43.020. Alaska Commercial Fisheries Entry Commission. (a) There is established the Alaska Commercial Fisheries Entry Commission as a regulatory and quasi-judicial agency of the state. The commission consists of two members appointed by the governor and confirmed by the legislature in joint session. (b) The governor shall designate one member of the commission as chair of the commission. The designated member serves as chair for a term of two years and may be designated chair for successive two-year terms. When there is a vacancy in the executive director position, the member serving as chair is responsible for and has authority over the internal administrative and personnel practices and procedures of the commission. Sec. 16.43.030. Term of office; vacancy and removal. (a) The members of the commission shall be appointed for terms of four years. (b) A vacancy on the commission shall be filled by appointment by the governor and the appointment shall be confirmed by the legislature in joint session. Except as provided in AS 39.05.080 (4), a member selected to fill a vacancy shall hold office for the balance of the full term for which the member's predecessor on the commission was appointed. (c) If there is a vacancy on the commission, a single commissioner may exercise all the powers and perform all the duties of the commission. (d) The governor may remove a commissioner from office for cause, including but not limited to incompetence, neglect of duty, or misconduct in office. A commissioner being removed for cause shall be given a copy of the charges and afforded an opportunity to publicly present a defense in person or by counsel upon not less than 10 days' notice. If a commissioner is removed for cause, the governor shall file with the lieutenant governor a complete statement of all charges made against the commissioner and the governor's findings based on the charges, together with a complete record of the proceedings. Sec. 16.43.040. Quorum. Unless there is a vacancy on the commission, two members of the commission constitute a quorum for the transaction of business, for the performance of a duty, or for the exercise of a power of the commission. Sec. 16.43.050. Qualifications. The commission shall consist of two members with a broad range of professional experience, neither of whom has a vested economic interest in an interim-use permit, entry permit, commercial fishing vessel or gear, or in any fishery resource processing or marketing business. Sec. 16.43.060. Compensation. Members of the commission are in the exempt service and are entitled to a monthly salary equal to a step in Range 25 of the salary schedule in AS 39.27.011 . Sec. 16.43.070. Legal counsel. The attorney general is the legal counsel for the commission. The attorney general shall advise the commission in legal matters arising in the discharge of its duties and represent the commission in suits to which it is a party. However, the commission may retain additional legal counsel as appropriate. Sec. 16.43.080. Employment of personnel. (a) The commission may employ those persons necessary to carry out the purposes of this chapter. Employees of the commission are in the exempt service under AS 39.25.110 . (b) In addition to its staff of regular employees, the commission may contract for and engage the services of consultants, experts, and hearing officers as necessary. Sec. 16.43.100. Duties and general powers. (a) To accomplish the purposes set out in AS 16.43.010 , the commission shall (1) regulate entry into the commercial fisheries for all fishery resources in the state; (2) establish priorities for the application of the provisions of this chapter to the various commercial fisheries of the state; (3) establish administrative areas suitable for regulating and controlling entry into the commercial fisheries; (4) establish, for all types of gear, the maximum number of entry permits for each administrative area; (5) designate, when necessary to accomplish the purposes of this chapter, particular species for which separate interim-use permits or entry permits will be issued; (6) establish qualifications for the issuance of entry permits; (7) issue entry permits to qualified applicants; (8) issue interim-use permits as provided in AS 16.43.210 , 16.43.220, and 16.43.225; (9) establish, for all types of gear, the optimum number of entry permits for each administrative area; (10) administer the buy-back program provided for in AS 16.43.310 and 16.43.320 to reduce the number of outstanding entry permits to the optimum number of entry permits; (11) provide for the transfer and reissuance of entry permits to qualified transferees; (12) provide for the transfer and reissuance of entry permits for alternative types of legal gear, in a manner consistent with the purposes of this chapter; (13) establish and administer the collection of the annual fees provided for in AS 16.43.160 ; (14) administer the issuance of commercial fishing vessel licenses under AS 16.05.490 ; (15) issue educational entry permits to applicants who qualify under the provisions of AS 16.43.340 — 16.43.390; (16) establish reasonable user fees for services; (17) issue landing permits under AS 16.05.675 and regulations adopted under that section; (18) establish and collect annual fees for the issuance of landing permits that reasonably reflect the costs incurred in the administration and enforcement of provisions of law related to landing permits; (19) establish a moratorium on entry into commercial fisheries as provided in AS 16.43.225 ; and (20) when requested by a regional development organization formed under former AS 44.33.895 , provide to the organization, without charge, public information contained in the commission's data with respect to relevant fisheries, including limited fisheries, fishery participants, and limited entry permit holders' harvests and earnings. (21) [Repealed, § 20 ch 2 SLA 2014.] (b) The commission may do all things necessary to the exercise of its powers under this chapter, whether or not specifically designated in this chapter. Sec. 16.43.105. Accounting and disposition of fees. [Repealed, § 28 ch 90 SLA 1991. For current law, see AS 37.05.142 — 37.05.144.] Sec. 16.43.110. Regulations and hearing procedures. (a) The commission may adopt regulations, consistent with law, necessary or proper in the exercise of its powers or for the performance of its duties under this chapter. (b) The commission shall adopt regulations, consistent with due process of law, that govern practice and procedure and the conduct of all investigations, hearings, and proceedings that it holds. (c) The Alaska Rules of Evidence apply to investigations, hearings, and proceedings before the commission, except when the commission determines that their application is not required in order to assure fair treatment of all parties and that the evidence is relevant and of the sort on which responsible persons are accustomed to rely in the conduct of serious matters. (d) The commission, a commissioner, or an employee authorized by the commission may administer oaths, certify to all official acts, and issue subpoenas and other process to compel the attendance of witnesses and the production of testimony, records, papers, accounts, and documents in an inquiry, investigation, hearing, or proceeding before the commission in any part of the state. The commission may petition a court to enforce its subpoenas or other process. (e) The commission shall adopt regulations to provide for the correction of administrative error. (f) In case of a tie vote between commissioners in an adjudicatory proceeding, the decision of the hearing officer is the final administrative decision of the commission subject to review by a superior court under AS 44.62 (Administrative Procedure Act). Sec. 16.43.120. Application of Administrative Procedure Act. (a) The administrative adjudication procedures of AS 44.62 (Administrative Procedure Act) do not apply to adjudicatory proceedings of the commission except that final administrative determinations by the commission are subject to judicial review as provided in AS 44.62.560 — 44.62.570. (b) AS 44.62.010 — 44.62.319 and 44.62.640 apply to regulations adopted by the commission. Article 2. Entry Permit System. Sec. 16.43.140. Permit required. (a) A person may not operate gear in the commercial taking of fishery resources without a valid entry permit or a valid interim-use permit issued by the commission. (b) A permit is not required of a crewmember or other person assisting in the operation of a unit of gear engaged in the commercial taking of fishery resources as long as the holder of the entry permit or the interim-use permit for that particular unit of gear is at all times present and actively engaged in the operation of the gear. (c) A person may hold more than one interim-use or entry permit issued or transferred under this chapter only for the following purposes: (1) fishing more than one type of gear; (2) fishing in more than one administrative area; (3) harvesting particular species for which separate interim-use or entry permits are issued; (4) if authorized by regulations of the commission, fishing an entire unit of gear in a fishery in which the commission has issued entry permits for less than a unit of gear under AS 16.43.270 (d); under this paragraph, a person may not hold more than two entry permits for a fishery; however, the person may not (A) fish more than one unit of gear in the fishery; or (B) acquire a second entry permit for the fishery after the person has acquired an entry permit that authorizes the use of an entire unit of gear in the fishery; (5) consolidation of the fishing fleet for a salmon fishery; however, a person may hold not more than two entry permits for a salmon fishery under this paragraph, but the person who holds two entry permits for a salmon fishery may not engage in fishing under the second entry permit. Sec. 16.43.150. Terms and conditions of entry permit; annual renewal. (a) Except as may be otherwise provided under AS 16.43.270 (d), an entry permit authorizes the permittee to operate a unit of gear within a specified fishery. (b) The holder of an entry permit shall have the permit in possession at all times when engaged in the operation of gear for which it was issued. (c) Each entry permit is issued for a term of one year and is renewable annually. (d) Failure to renew an entry permit for a period of two years from the year of last renewal results in a forfeiture of the entry permit to the commission, except as waived by the commission for good cause. An entry permit may not be renewed until the fees for each preceding year during which the entry permit was not renewed are paid. However, failure to renew an entry permit in a year in which there is an administrative closure for the entire season for a specific fishery is good cause not to renew the entry permit. The commission shall waive the payment of fees for that year. (e) An entry permit constitutes a use privilege that may be modified or revoked by the legislature without compensation. (f) Except for permits that are not transferable under AS 16.43.170 (e), an entry permit survives the death of the holder. (g) Except as provided in AS 16.10.333 — 16.10.338, AS 44.81.215 , 44.81.225, and 44.81.231 — 44.81.250, an entry permit may not be (1) pledged, mortgaged, leased, or encumbered in any way; (2) transferred with any retained right of repossession or foreclosure, or on any condition requiring a subsequent transfer; or (3) attached, distrained, or sold on execution of judgment or under any other process or order of any court, except as provided in AS 16.43.170 (g) and (h). (h) Unless an entry permit holder has expressed a contrary intent in a will that is probated, the commission shall, upon the death of the permit holder, transfer the permanent permit by right of survivorship directly to the surviving spouse or, if no spouse survives, to a natural person designated by the permit holder on a form provided by the commission. If no spouse survives and if the person designated on the form, if any, does not survive, the permit passes as part of the permit holder's estate. A designation under this subsection must be acknowledged before a person authorized to administer an oath under AS 09.63.010 or must be witnessed by two persons who are qualified under AS 13.12.505 to witness the will of the permit holder. Except as provided in AS 16.10.333 — 16.10.337, AS 44.81.215 , and 44.81.231 — 44.81.250, the permit is exempt from the claims of creditors of the estate. (i) The holder of a transferable or nontransferable entry permit or of an interim-use permit may voluntarily relinquish the permit to the commission. Sec. 16.43.160. Fees. (a) Except as specifically provided in this section, the commission shall establish annual fees for the issuance and annual renewal of entry permits or interim-use permits. (b) The commission may charge interest at a rate not to exceed the legal rate of interest established in AS 45.45.010 on fees more than 60 days overdue. (c) The annual base fee for issuance or renewal of an entry permit or an interim-use permit may not be less than $30 or more than $3,000. The annual base fee must reasonably reflect the different rates of economic return for different fisheries. In addition to the annual base fee established by the commission under this subsection, a nonresident shall pay an annual nonresident surcharge for the issuance or renewal of one or more entry permits or interim-use permits. The commission shall establish the annual nonresident surcharge by regulation at an amount that is as close as is practicable to the maximum allowed by law. (d) The holder of a permit whose household income, assets, and financial resources fall within the eligibility standards for the food stamp program under 7 U.S.C. 2011 — 2025, as amended, is subject to an annual base fee for the issuance or renewal of an entry permit or an interim-use permit that is equal to 50 percent of the annual base fee that the permit holder would otherwise pay under (c) of this section. In addition to the reduced annual base fee under this subsection, a nonresident who qualifies for a reduced fee under this subsection shall pay the annual nonresident surcharge established under (c) of this section. Sec. 16.43.170. Transfer of entry permits. (a) Except as provided in AS 16.10.333 — 16.10.338 and in AS 44.81.231 — 44.81.250, entry permits and interim-use permits are transferable only through the commission as provided in this section and AS 16.43.180 and under regulations adopted by the commission. An involuntary transfer of an entry permit in a manner inconsistent with the statutes of this state and the regulations of the commission is void. (b) Except as provided in (e) of this section, the holder of an entry permit may transfer the permit to another person or to the commission upon 60 days notice of intent to transfer under regulations adopted by the commission. No sooner than 60 days nor later than 12 months from the date of notice to the commission, the holder of an entry permit may transfer the permit. If the proposed transferee, other than the commission, can demonstrate the present ability to participate actively in the fishery and the transfer does not violate any provision of this chapter or regulations adopted under this chapter, and if a certificate for the permit under AS 16.10.333 (b)(1) — (2), 16.10.338, or AS 44.81.231 (a) is not in effect, the commission shall approve the transfer and reissue the entry permit to the transferee provided that neither party is prohibited by law from participating in the transfer. (c) [Repealed, § 10 ch 135 SLA 2002.] (d) [Repealed, § 9 ch 73 SLA 1977.] (e) The holder of an entry permit who qualified for that entry permit in a priority classification designated under AS 16.43.250 (c) may not transfer that permit. (f) The permanent transfer of an entry permit is void if proceedings in which commercial fishing privileges and licenses may be suspended under AS 16.05.710 are pending against the permit holder at the time of transfer unless the transfer of the entry permit is allowed by order of the court in which the proceedings are pending. (g) A person may request the commission to transfer an entry permit due to an execution on a permit holder's interest in that permit if the execution is to enforce a lien recorded with the commission under AS 25.27.230 (c). The request shall be made in the form and manner provided in this chapter and regulations adopted under this chapter. The commission may deny a request for transfer of an entry permit due to an execution of a holder's interest in that permit if (1) the execution does not comply with legal requirements or otherwise is not valid; (2) the transfer violates this chapter or regulations adopted under this chapter; (3) the proposed transferee or other party to the transfer is prohibited by law from participating in the transaction; (4) a certificate for the permit under AS 16.10.333 (b)(1) — (2), 16.10.338, or AS 44.81.231 (a) is in effect at the time of the proposed transfer; (5) the proposed transferee of the entry permit, other than the commission, cannot demonstrate the present ability to actively participate in the fishery; or (6) the holder of the entry permit as shown by the records of the commission demonstrates, under regulations adopted by the commission, that the entry permit is a necessary means of support for the holder and those dependent upon the holder. (h) Notwithstanding (g) of this section, the commission may not approve a request for transfer of an entry permit after an execution sale unless the parties to the transfer offer the commission a right to purchase the permit at the same price and on the same terms as those of that execution sale. If the commission exercises its right to purchase the permit, the permit then shall be transferred to the commission. Sec. 16.43.180. Emergency transfers. (a) The commission shall adopt regulations providing for the temporary emergency transfer of entry permits and interim-use permits when illness, disability, death, required military or government service, or other unavoidable hardship prevents the permit holder from participating in the fishery. To alleviate hardship pending a final determination of the permit holder's eligibility for an entry permit, the commission shall adopt regulations providing for the temporary emergency transfer of an interim-use permit issued under AS 16.43.210 (b) or 16.43.225. (b) The commission shall adopt regulations providing for the temporary transfer of an entry permit upon the death of the permittee pending final disposition of the permit as a part of the permittee's estate. Sec. 16.43.182. Entry permit deductible as business expense. [Repealed, § 36 ch 14 SLA 1987.] Article 3. Initial Issuance of Entry Permits. Sec. 16.43.200. Administrative areas. (a) The commission shall establish administrative areas suitable for regulating and controlling entry into the commercial fisheries. The commission shall make the administrative areas reasonably compatible with the geographic areas for which specific commercial fishing regulations are adopted by the Board of Fisheries. (b) The commission may modify or change the boundaries of administrative areas when necessary and consistent with the purposes of this chapter. Sec. 16.43.210. Interim-use permit; qualifications. (a) For each fishery that is not subject to a maximum number of entry permits under AS 16.43.240 and not subject to a moratorium under AS 16.43.225 , the commission shall issue interim-use permits under regulations adopted by the commission to all applicants who can establish their present ability to participate actively in the fishery for which they are making application. (b) Before the issuance of the maximum number of entry permits for a given fishery, the commission may issue an interim-use permit to an applicant who may later become eligible for an entry permit under AS 16.43.270 . (c) To the extent that the commissioner of fish and game authorizes it under AS 16.05.050 (a)(9), the commission may grant an interim-use permit to a person to engage in the commercial taking from a fishery on an experimental basis. (d) The sustained yield management and economic health of the following fisheries is severely impaired as a result, among other factors, of too many units of gear participating in the commercial harvest: (1) Bristol Bay registration area — drift gillnet fishery; (2) Cook Inlet registration area — drift gillnet fishery; (3) Prince William Sound registration area — drift gillnet fishery. (e) [Repealed, § 69 ch 6 SLA 1984.] Sec. 16.43.220. Terms and conditions of interim-use permits. (a) The commission shall adopt regulations specifying the dates and places of application, the procedures to be followed in renewal of the interim-use permit including the time, place of its renewal, and for any other purpose incident to the administration of interim-use permits for that fishery. An interim-use permit shall expire upon the final determination of the holder's eligibility for an entry permit. (b) [Repealed, § 9 ch 73 SLA 1977.] (c) The holder of an interim-use permit shall have the permit in possession at all times when engaged in the operation of the gear for which it was issued. Sec. 16.43.225. Moratorium on new entrants into certain fisheries. (a) Subject to (b) of this section, the commission may establish a moratorium on new entrants into a fishery (1) that has experienced recent increases in fishing effort that are beyond a low, sporadic level of effort; (2) that has achieved a level of harvest that may be approaching or exceeding the maximum sustainable level for the fishery; and (3) for which there is insufficient biological and resource management information necessary to promote the conservation and sustained yield management of the fishery. (b) The commission may establish a moratorium on new entrants into a fishery described in (a) of this section if (1) the commissioner of fish and game, subject to AS 16.05.251 (g), petitions the commission under AS 44.62.220 to establish a moratorium on new entrants into the fishery; and (2) the commission finds that (A) the fishery has reached a level of participation that may threaten the conservation and the sustained yield management of the fishery resource and the economic health and stability of commercial fishing; and (B) the commission has insufficient information to conclude that the establishment of a maximum number of entry permits under AS 16.43.240 would further the purposes of this chapter. (c) The commission may establish a moratorium under this section for a continuous period of up to four years. A fishery that has been subject to a moratorium under this section may not be subjected to a subsequent moratorium under this section unless five years have elapsed since the previous moratorium expired. (d) While a moratorium is in effect, the commission shall conduct investigations to determine whether a maximum number of entry permits should be established under AS 16.43.240 by (1) conducting research into conditions in the fishery; (2) consulting with the Department of Fish and Game and the Board of Fisheries; and (3) consulting with participants in the fishery. (e) The commission shall establish by regulation the qualifications for applicants for an interim-use permit for a fishery subject to a moratorium under this section. The qualifications must include the minimum requirements for past or present participation and harvest in the fishery. The commission may not issue an interim-use permit for a fishery subject to a moratorium under this section unless the applicant can satisfy the qualifications established under this subsection and establish the present ability and intent to participate actively in the fishery. Sec. 16.43.227. Southeast Alaska Dungeness crab fishery. (a) The commission may establish a moratorium on new entrants into the southeast Alaska Dungeness crab fishery for a continuous period of up to four years without complying with AS 16.43.225 (a) — (c). While the moratorium is in effect, the commission shall (1) conduct the investigation required under AS 16.43.225 (d); (2) establish by regulation the qualifications for an interim-use permit for the fishery, including minimum requirements for past or present participation and harvest in the fishery; and (3) issue interim-use permits for the fishery to applicants who satisfy the qualifications established under (2) of this subsection and who establish the present ability and intent to participate actively in the fishery. (b) Notwithstanding AS 16.43.225 , for the purposes of this chapter (1) an interim-use permit issued under this section shall be treated as an interim-use permit issued under AS 16.43.225 ; (2) a moratorium established under this section shall be treated as a moratorium established under AS 16.43.225 . Sec. 16.43.228. Southeast Alaska dive fisheries. (a) [Repealed, § 4 ch 125 SLA 1996.] (b) [Repealed, § 4 ch 125 SLA 1996.] (c) [Repealed, § 4 ch 125 SLA 1996.] (d) [Repealed, § 4 ch 125 SLA 1996.] (e) [Repealed, § 22 ch 9 SLA 2014.] (f) Notwithstanding AS 16.43.225 , for the purposes of this chapter, (1) an interim-use permit issued under this section shall be treated as an interim-use permit issued under AS 16.43.225 ; (2) a moratorium established under this section shall be treated as a moratorium established under AS 16.43.225 . (g) The commission may not consider participation in a fishery, subject to a moratorium on entry under this section, that occurs during the period of the moratorium in determining eligibility for an entry permit that may be issued for the fishery after termination of the moratorium. Sec. 16.43.230. Designation of distressed fisheries. Pending the determination of maximum numbers of entry permits under AS 16.43.240 and before the initial issue of entry permits under AS 16.43.270 , the commission shall designate as distressed fisheries those for which it estimates that the optimum number of entry permits will be less than the highest number of units of gear fished in that fishery during any one of the four years immediately preceding January 1, 1973. Sec. 16.43.240. Determination of the maximum number of entry permits for initial issue. (a) Except as provided in AS 16.43.270 (a), the maximum number of entry permits for a distressed fishery designated under AS 16.43.230 shall be the highest number of units of gear fished in that fishery during any one of the four years immediately preceding January 1, 1973. (b) When the commission finds that a fishery, not designated as a distressed fishery under AS 16.43.230 or not subject to a moratorium under AS 16.43.225 , has reached levels of participation that require the limitation of entry under AS 16.43.140 — 16.43.330 in order to achieve the purposes of this chapter, the commission shall establish the maximum number of entry permits for that fishery. (c) When the commission finds that a fishery subject to a moratorium under AS 16.43.225 has reached levels of participation that require the limitation of entry under AS 16.43.140 — 16.43.330 in order to achieve the purposes of this chapter, the commission shall establish the maximum number of entry permits for that fishery. Sec. 16.43.250. Standards for initial issue of entry permits. (a) Following the establishment of the maximum number of units of gear for a particular fishery under AS 16.43.240 , the commission shall adopt regulations establishing qualifications for ranking applicants for entry permits according to the degree of hardship that they would suffer by exclusion from the fishery. The regulations shall define priority classifications of similarly situated applicants based upon a reasonable balance of the following hardship standards: (1) degree of economic dependence upon the fishery, including, when reasonable for the fishery, the percentage of income derived from the fishery, reliance on alternative occupations, availability of alternative occupations, investment in vessels and gear; (2) extent of past participation in the fishery, including, when reasonable for the fishery, the number of years of participation in the fishery, and the consistency of participation during each year. (b) The commission shall designate in the regulations those priority classifications of applicants who would suffer significant economic hardship by exclusion from the fishery. (c) The commission shall designate in the regulations those priority classifications of applicants who would suffer only minor economic hardship by exclusion from the fishery. (d) If an individual eligible to apply under AS 16.43.260 (a) has applied during application periods established under AS 16.43.260 (b) for two or more entry permits under AS 16.43.260 (d) or (e) for the same specific fishery resource and the same specific type of gear in different administrative areas, but has failed to qualify for an entry permit for that type of fishery resource and gear, the individual's cumulative qualifications may be credited to the fishery for which the individual is most qualified. The commission shall issue an entry permit to the individual for the fishery if the individual's cumulative qualifications result in placing the individual in a category designated in (b) of this section. The qualifications credited to a fishery under this subsection may not be considered for the purpose of ranking the applicant under (a)-(c) of this section for any other fishery. The commission may not revoke any permit previously issued notwithstanding the issuance of permits in excess of the maximum number established under AS 16.43.230 — 16.43.240 as a result of this subsection. In this subsection, “fishery” includes all salmon fisheries of the state for which a maximum number of entry permits has been established by the commission under AS 16.43.240 (b). (e) If the cumulative qualifications of an individual under (d) of this section include points granted by the commission under (a) of this section for more than one fishery and the number of points required to place an applicant in the priority classification under (b) of this section is not the same for each of the fisheries, the commission shall obtain a quotient for the individual by dividing the number of points the individual has been granted for each fishery by the number of points needed to place an applicant in a priority classification under (b) of this section for that fishery. If the sum of the quotients obtained under this subsection equals or exceeds 1.00, the individual is entitled to a permit under (d) of this section. Sec. 16.43.260. Application for initial issue of entry permits. (a) The commission shall accept applications for entry permits only from applicants who have harvested fishery resources commercially while participating in the fishery as holders of gear licenses issued under former AS 16.05.536 — 16.05.670 or interim-use permits under AS 16.43.210 (a) or 16.43.225 before the qualification date established in (d), (e), or (f) of this section. The commission may specify by regulation the calendar years of participation that will be considered for eligibility purposes. (b) The commission shall establish the opening and closing dates, places and form of application for entry permits for each fishery. The commission may require the submission of specific verified evidence establishing the applicant's qualifications under the regulations adopted under AS 16.43.250 . (c) When an applicant is unable to establish qualifications for an entry permit by submitting the specific verified evidence required in the application by the commission, the applicant may request and obtain an administrative adjudication of the application according to the procedures established in AS 16.43.110 (b). At the hearing the applicant may present alternative evidence of qualifications for an entry permit. (d) Except as provided in (e) or (f) of this section, an applicant shall be assigned to a priority classification based solely upon the applicant's qualifications as of January 1, 1973. (e) Except as provided in (f) of this section, when the commission establishes the maximum number of entry permits for a particular fishery under AS 16.43.240 after January 1, 1975, an applicant shall be assigned to a priority classification based solely upon the applicant's qualifications as of January 1 of the year during which the commission establishes the maximum number of entry permits for the fishery for which application is made. (f) When the commission establishes the maximum number of entry permits under AS 16.43.240 for a fishery that is subject to a moratorium under AS 16.43.225 , an applicant for an entry permit for the fishery shall be assigned to a priority classification based solely upon the applicant's qualifications as of the effective date of the statute or regulation establishing the moratorium. Sec. 16.43.270. Initial issuance of entry permits. (a) The commission shall issue entry permits, for each fishery, first to all qualified applicants in the priority classifications designated under AS 16.43.250 (b) and then to qualified applicants in order of descending priority classification, until the number of entry permits issued equals the maximum number of entry permits established under AS 16.43.230 and 16.43.240 for each fishery, except that a person within a priority classification specified under AS 16.43.250 (b) may not be denied an entry permit. (b) If, within the lowest priority classification of qualified applicants to which some entry permits may be issued, there are more applicants than there are entry permits to be issued, then the allocation of entry permits within that priority classification shall be by lottery. However, the commission shall issue entry permits to all qualified applicants in that priority classification if the total number of permits issued for the fishery does not exceed the maximum number of entry permits established under AS 16.43.240 for that fishery by more than five percent or 10 permits, whichever is greater. (c) If, at the time entry permits are issued, some applicants are still appealing the findings of an administrative adjudication under AS 16.43.260 , a sufficient number of permits shall be reserved out of the permits to be issued to protect the rights of those applicants, assuming all the appeals will be resolved in favor of the applicants. In the event that all appeals are not resolved in favor of the applicants, the remaining entry permits shall be allocated to the next most qualified applicants as provided in (a) and (b) of this section. (d) The commission may restrict the fishing capacity employed under an entry permit if, before the initial issuance of entry permits for a fishery, the commission determines that the fishing capacity in the fishery must be limited to achieve the purposes of this chapter, establishes criteria for determining the fishing capacity that is allowed under an entry permit, and establishes how fishing capacity will be measured. The maximum fishing capacity allowed under an entry permit must be based upon past participation in the fishery by the initial recipient of the entry permit during a period, specified by the commission, preceding the qualification date established under AS 16.43.260 . The commission may define fishing capacity in terms of quantity of fishing gear, a proportion of the maximum amount of gear that can be utilized in the fishery under regulations of the Board of Fisheries, fishing vessel size or other characteristics, or other factors determined by the commission to affect the amount of fishing effort in the fishery. The recipient or transferee of an entry permit issued subject to this subsection may not exceed the fishing capacity allowed under the entry permit. Secs. 16.43.275 — 16.43.285. [Renumbered as AS 16.43.340 — 16.43.390.] Article 4. Reduction to Optimum Number of Entry Permits. Sec. 16.43.290. Optimum number of entry permits. Following the issuance of entry permits under AS 16.43.270 , the commission shall establish the optimum number of entry permits for each fishery based upon a reasonable balance of the following general standards: (1) the number of entry permits sufficient to maintain an economically healthy fishery that will result in a reasonable average rate of economic return to the fishermen participating in that fishery, considering time fished and necessary investments in vessels and gear; (2) the number of entry permits necessary to harvest the allowable commercial take of the fishery resource during all years in an orderly, efficient manner, and consistent with sound fishery management techniques; (3) the number of entry permits sufficient to avoid serious economic hardship to those currently engaged in the fishery, considering other economic opportunities reasonably available to them. Sec. 16.43.300. Revisions of optimum number of entry permits. (a) The commission may increase or decrease the optimum number of entry permits for a fishery when one or more of the following conditions makes a change desirable considering the purposes of this chapter: (1) an established long-term change in the biological condition of the fishery has occurred that substantially alters the optimum number of entry permits permissible applying the standards set out in AS 16.43.290 ; (2) an established long-term change in market conditions has occurred, directly affecting the fishery, that substantially alters the optimum number of entry permits permissible under the standards set out in AS 16.43.290 . (b) If the commission decreases the optimum number of entry permits for a fishery, the number of entry permits may be reduced only under the voluntary buy-back provisions set out in AS 16.43.310 and 16.43.320. Sec. 16.43.310. Establishment of buy-back funds and permit buy-back assessments. (a) When the optimum number of entry permits is less than the number of entry permits outstanding in a fishery, the commission may establish a buy-back program, a buy-back plan, and a buy-back fund for that fishery. (b) The commission may establish by regulation a permit buy-back assessment for each fishery for which the commission has established a buy-back fund under (a) of this section. The amount of the assessment may not exceed seven percent of the value, as defined in AS 43.75.290 , of fish that a permit holder in the fishery subject to the assessment removes from the state or transfers to a buyer in the state. The Department of Revenue shall collect an assessment established under this subsection. (c) The commission shall expend money appropriated to a buy-back fund for the purpose of reducing the number of entry permits in the fishery to the optimum number, at a rate to be established by the commission. The legislature may appropriate interest accrued on the money in a buy-back fund to that fund. Except as provided in AS 16.43.320 , money appropriated to a buy-back fund does not lapse. Sec. 16.43.320. Administration of the buy-back program. The commission shall adopt regulations providing for the purchase of transferable entry permits with money in the buy-back fund for each fishery. The commission shall cease purchases of entry permits in a fishery when the number of entry permits in the fishery has been reduced to the optimum number. The commission shall terminate a buy-back assessment established for a fishery under AS 16.43.310 (b) when the commission determines that the amount of revenue collected through the assessment is sufficient to purchase the number of entry permits necessary to achieve the optimum number of entry permits in the fishery and to offset the reasonable costs of the buy-back program for the fishery, including repayment of any debt the commission was authorized to incur to capitalize the buy-back fund for the fishery. The unexpended balance of appropriations made to a buy-back fund for a fishery shall lapse back into the fund from which the money was appropriated at the end of the fiscal year in which the buy-back program is terminated. Sec. 16.43.330. Issuance of new entry permits; appropriations related to fleet reduction. (a) When the number of outstanding entry permits for a fishery is less than the optimum number established under AS 16.43.290 , the commission shall issue new entry permits to applicants who are presently able to engage actively in the fishery until the optimum number is reached. (b) The commission shall determine equitable methods of issuance, as appropriate, under (a) of this section that assure the receipt of fair market value for the permits issued. (c) If a salmon fishery association qualified under AS 16.40.250 takes part in a fleet reduction program by expending money or incurring debt to contract with permit holders to relinquish the holders' entry permits under AS 16.43.150 (i), and if this section requires additional permits to be issued for the same fishery in which the fleet reduction program was implemented, the legislature may appropriate any resulting revenue to the association for reimbursement of money expended or to retire any outstanding debt incurred for fleet reduction purposes. An appropriation under this subsection must be made within 30 years after the date the money was expended or debt incurred. Secs. 16.43.335 — 16.43.339. [Renumbered as AS 16.43.400 — 16.43.420.] Article 5. Educational Entry Permits. Sec. 16.43.340. Educational entry permits. (a) In addition to entry permits and interim-use permits, the commission may issue educational entry permits to public, private, or denominational educational institutions accredited by the Department of Education and Early Development or accredited institutions, career, or vocational programs approved by the Alaska Commission on Postsecondary Education, or full-time nonprofit residential child care facilities licensed by the Department of Health, division of social services, if (1) the program is offered to students at the junior high school level or above; (2) the issuance of an educational entry permit is reasonably necessary to the instruction of students under courses offered by the applicant for the educational entry permit; (3) the program is offered by an institution that is located in the state and has been in operation for at least two years; and (4) the institution offering the program is not a correspondence institution. (b) An educational entry permit may only be used in a program conducted by the recipient of the permit for the purpose of training students in the methods of commercial fishing. (c) The commission may issue educational entry permits notwithstanding the establishment of maximum or optimum numbers under AS 16.43.240 and 16.43.290. Secs. 16.43.341 — 16.43.343. [Renumbered as AS 16.43.430 — 16.43.440.] Sec. 16.43.350. [Renumbered as AS 16.43.950 .] Sec. 16.43.351. Term and conditions of educational entry permit. (a) Educational entry permits may be applied for on an annual basis and shall be issued for a term of one year. The permits are nontransferable. (b) A recipient may be issued an educational entry permit valid for designated fisheries in the administrative area the commission determines to be appropriate, considering the nature of the educational program and the location of the educational or vocational institution. The recipient of an educational entry permit may not be issued an educational entry permit in more than one administrative area except as issued by the commission in its discretion upon good cause shown. (c) An educational entry permit issued under AS 16.43.340 may be used by any agent or employee authorized by the recipient of the educational entry permit. (d) Annual fees for educational entry permits shall be as specified by commission regulation under the authority of AS 16.43.160 . Secs. 16.43.355 — 16.43.360. [Renumbered as AS 16.43.960 — 16.43.970.] Sec. 16.43.361. Disposition of fish. Fish caught under the authority of an educational entry permit are the property of the recipient of the permit. The recipient may sell the fish and use the proceeds to pay for the costs of the training program. Revenues generated from the sale of fish harvested under an educational entry permit shall be paid to the general fund to the extent the revenues exceed costs of the training program. Sec. 16.43.370. [Renumbered as AS 16.43.980 .] Sec. 16.43.371. Accounting of harvest. The recipient of an educational entry permit shall report to the commission costs and earnings, amount of harvest, and other information the commission requires to monitor training programs of recipients of educational entry permits. Sec. 16.43.380. [Renumbered as AS 16.43.990 .] Sec. 16.43.381. Adoption of regulations. (a) Use privileges granted under AS 16.43.340 — 16.43.390 are subject to the regulations of the Board of Fisheries, which may adopt regulations exclusively applicable to the use of educational entry permits. (b) The commission shall adopt regulations relating to the issuance of educational entry permits, establishing eligibility criteria for recipients of the permits, and such other matters as are reasonably necessary to implement AS 16.43.340 — 16.43.390. Sec. 16.43.390. Definition of “recipient”. In AS 16.43.340 — 16.43.390, “recipient” means the entity to which an educational entry permit is issued. Article 6. Special Harvest Area Entry Permits. Sec. 16.43.400. Special harvest area entry permits. (a) In addition to entry permits, interim-use permits, and educational permits, the commission may issue special harvest area entry permits to (1) holders of private, nonprofit hatchery permits issued by the Department of Fish and Game under AS 16.10.400 — 16.10.475 for salmon; and (2) nonprofit organizations holding a permit under AS 16.12 for a shellfish enhancement project. (b) The commission may issue special harvest area entry permits notwithstanding the establishment of maximum or optimum numbers under AS 16.43.240 and 16.43.290. Sec. 16.43.410. Term and conditions of special harvest area entry permits. (a) Special harvest area entry permits may be applied for on an annual basis and shall be issued for a term of one year. A permit is nontransferable. (b) A special harvest area entry permit may only be issued for the applicable area designated by the Department of Fish and Game as a special harvest area. (c) The annual fee for a special harvest area entry permit shall be specified by commission regulation under the authority of AS 16.43.160 . Sec. 16.43.420. Disposition of fish. Fish caught under the authority of a special harvest area entry permit are the property of the permit holder. The permit holder may sell the fish if the proceeds are used in the manner described in AS 16.10.450 . Sec. 16.43.430. Authorized gear.

For the purposes of harvesting salmon or shellfish, a special harvest area entry permit holder may employ any fishing gear designated as legal gear in the applicable special harvest area by the Board of Fisheries. Sec. 16.43.440. Adoption of regulations. (a) Use privileges granted under AS 16.43.400 — 16.43.440 are subject to the regulations of the Board of Fisheries. (b) The commission, after consultation with the Department of Fish and Game, shall adopt regulations that are reasonably necessary to implement AS 16.43.400 — 16.43.440. Article 7. Vessel Permit System for Bering Sea Hair Crab Fishery. Sec. 16.43.450. Vessel permit system. [Repealed, § 27 ch 137 SLA 2002.] Sec. 16.43.451. Bering Sea hair crab fishery vessel permit system. Sec. 16.43.460. Initial issuance of vessel permits. [Repealed, § 27 ch 137 SLA 2002.] Sec. 16.43.461. Initial issuance of vessel permits. Sec. 16.43.470. Optimum number range of vessel permits. [Repealed, § 27 ch 137 SLA 2002.] Sec. 16.43.471. Optimum number range of vessel permits. Sec. 16.43.480. Transfer and expiration of vessel entry permits. [Repealed, § 27 ch 137 SLA 2002.] Sec. 16.43.481. Transfer and expiration of vessel entry permits. Sec. 16.43.490. Substitution of vessels. [Repealed, § 27 ch 137 SLA 2002.] Sec. 16.43.491. Substitution of vessels. Sec. 16.43.500. Renewal of vessel permits. [Repealed, § 27 ch 137 SLA 2002.] Sec. 16.43.501. Renewal of vessel permits. Sec. 16.43.510. Vessel permit fees. [Repealed, § 27 ch 137 SLA 2002.] Sec. 16.43.511. Vessel permit fees. Sec. 16.43.520. General vessel permit provisions. [Repealed, § 27 ch 137 SLA 2002.] Sec. 16.43.521. General Bering Sea hair crab vessel permit provisions. Article 8. Point System for Commercial Fishing Violations in Salmon Fisheries. Sec. 16.43.850. Point system. (a) For the purpose of identifying frequent violators of commercial fishing laws in salmon fisheries, the commission shall adopt regulations establishing a uniform system for the suspension of commercial salmon fishing privileges by assigning demerit points for convictions for violations of commercial fishing laws in salmon fisheries that are reported to the commission under AS 16.43.880 . The commission shall assess demerit points against a permit holder for each violation of commercial fishing laws in a salmon fishery in accordance with (b) and (c) of this section. The commission shall assess points against a permit holder for the salmon fishery in which the violation of commercial fishing laws occurred. (b) The commission shall assess demerit points against a permit holder for a conviction of a violation of commercial fishing laws in a salmon fishery under AS 16.05.722 , 16.05.723, 16.05.831; AS 16.10.055 , 16.10.070 — 16.10.090, 16.10.100, 16.10.110, 16.10.120, 16.10.200 — 16.10.220, and 16.10.760 — 16.10.790 for the following violations in accordance with this schedule: (1) fishing in closed waters ..... 6 points; (2) fishing during closed season or period ..... 6 points;. (3) fishing with more than the legal amount of gear ..... 4 points; (4) fishing with gear not allowed in fishery ..... 6 points; (5) fishing before expiration of transfer period ..... 6 points; (6) interfering with commercial fishing gear ..... 4 points; (7) fishing with more than the legal amount of gear on vessel ..... 4 points; (8) improper operation of fishing gear ..... 4 points; (9) permit holder not present when required ..... 4 points; (10) fishing with underlength or overlength vessel ..... 6 points; (11) wanton waste of fishery resources ..... 4 points. (c) Notwithstanding (b) of this section, if a permit holder's first conviction of a violation of commercial fishing laws in a salmon fishery in a 36-month period is a conviction under AS 16.05.722 , the number of demerit points assessed against the permit holder for the violation must be one-half of the points assessed for the violation under (b) of this section. (d) The commission shall suspend a permit holder's commercial salmon fishing privileges for a salmon fishery for a period of (1) one year if the permit holder accumulates 12 or more points during any consecutive 36-month period as a result of convictions for violations of commercial fishing laws in the salmon fishery; (2) two years if the permit holder accumulates 16 or more points during any consecutive 36-month period as a result of convictions for violations of commercial fishing laws in the salmon fishery; (3) three years if the permit holder accumulates 18 or more points during any consecutive 36-month period as a result of convictions for violations of commercial fishing laws in the salmon fishery. Sec. 16.43.855. Assessment of points. (a) Notice of each assessment of points shall be given to the permit holder. Notice shall also be given to the permit holder before the expiration of a suspension of commercial salmon fishing privileges under AS 16.43.850 (d) that subsequent violations of commercial fishing laws in the salmon fishery may result in further suspensions of the permit. The notice may be given by first class mail. (b) The time periods provided for in AS 16.43.850 for the accumulation of points shall be based on the date of conviction, either on a plea of guilty, nolo contendere, or a forfeiture of bail or collateral, or as a result of a trial, for violation of a commercial salmon fishing law. (c) The assessment of points against a permit holder by the commission under AS 16.43.850 — 16.43.895 is in addition to, and not in substitution for, other provisions of this title and is not a substitute for any penalty imposed by a court. (d) If points are assessed against a permit holder who holds a commercial fishing permit for a salmon fishery under an emergency transfer approved by the commission under AS 16.43.180 , the same number of points shall also be assessed against the transferor of the permit. Points assessed against the transferor of the permit under this subsection shall be included in calculations made under AS 16.43.850 (d). Sec. 16.43.860. Suspension. (a) A permit holder whose commercial salmon fishing privileges for a salmon fishery are suspended under AS 16.43.850 — 16.43.895 may not obtain an entry permit or interim-use permit for that salmon fishery during the period of the suspension of the privileges. During the period for which the permit holder's privilege to obtain an entry permit or interim-use permit for a salmon fishery is suspended under this section, the commission may not issue a permit card to the permit holder for that fishery. (b) A permit holder whose privilege of obtaining a commercial fishing permit for a salmon fishery is suspended under AS 16.43.850 — 16.43.895 may not (1) engage in the salmon fishery under a crewmember license; or (2) lease or rent the permit holder's interest in a boat to another person if the boat would be used in the salmon fishery for which the permit holder's fishing privileges are suspended. (c) If, during the period for which a permit holder's commercial fishing privileges for a salmon fishery are suspended, the commission establishes a limited entry system for the salmon fishery, the permit holder shall be eligible to obtain an entry permit for that fishery to the extent that the permit holder qualifies for the entry permit under regulations adopted by the commission. If the permit holder qualifies for an entry permit for the fishery, the commission shall withhold issuance of the entry permit until the period of the suspension imposed under AS 16.43.850 — 16.43.895 has expired. (d) The commission may not transfer a commercial fishing permit for a salmon fishery under an emergency transfer under AS 16.43.180 if, at the time of the application for the emergency transfer, the permit holder's commercial salmon fishing privileges for the salmon fishery have been suspended. Sec. 16.43.870. Notice and appeal. The commission shall provide notice of determinations of the commission under AS 16.43.850 — 16.43.895. Respondents may request a hearing under regulations adopted by the commission under AS 16.43.110 . Sec. 16.43.880. Required notice to commission. (a) A court that convicts a person of a violation of commercial fishing laws under this title or under a regulation adopted under this title in a salmon fishery shall forward a record of the conviction to the commission on a weekly basis. (b) A conviction on a plea of nolo contendere accepted by the court or a forfeiture of bail or collateral deposited to secure a defendant's appearance in court that has not been vacated, or as a result of trial, is a conviction for purposes of AS 16.43.850 — 16.43.895. Sec. 16.43.895. Definitions for AS 16.43.850 — 16.43.895. In AS 16.43.850 — 16.43.895, (1) “commercial fishing law” means a statute or regulation that regulates the conduct of a person engaged in commercial fishing activities by establishing requirements relating to fishing licenses and permits; catch records and reports; size, nature, quantity, or use of fishing vessels, sites, and gear; time, place, or manner of taking fishery resources; possession, transportation, sale, barter, or waste of fishery resources; or other aspects of commercial fishing; (2) “commercial fishing permit” means an entry permit or an interim-use permit issued under this chapter; (3) “commercial salmon fishing privileges” means the privilege of participating in an activity for which a commercial fishing permit to take salmon is required and the privilege of obtaining a commercial fishing permit to take salmon; (4) “permit holder” includes the holder of a commercial fishing permit as the result of an emergency transfer, an applicant for a commercial fishing permit if the applicant's commercial fishing permit was suspended under AS 16.43.850 — 16.43.895, and a person whose privilege of obtaining a commercial fishing permit for a fishery is suspended under AS 16.43.850 — 16.43.895. Sec. 16.43.901. Vessel permits. [Repealed, § 5 ch. 126 SLA 1996.] Secs. 16.43.906 , 16.43.911. Vessel permits for weathervane scallop fishery; applicability of other statutes. [Repealed, § 6 ch 97 SLA 1997.] Article 9. General Provisions. Sec. 16.43.940. Exempted activities. This chapter does not apply to activities authorized by a permit issued under AS 16.40.100 or 16.40.120. Sec. 16.43.945. Commercial fishing privileges exempt from claims of creditors. Except as provided in AS 16.10.333 — 16.10.338, AS 16.43.170 (g), AS 44.81.215 , and 44.81.231 — 44.81.250, commercial fishing privileges granted under this chapter, including entry permits, are exempt from claims of creditors, including claims under AS 09.38.065 and AS 45.29.408 . Sec. 16.43.950. Applications of regulations of Board of Fisheries. Nothing in this chapter limits the powers of the Board of Fisheries, including the power to determine legal types of gear and the power to establish size limitations or other uniform restrictions applying to a certain type of gear. Holders of interim-use permits or entry permits issued under this chapter are subject to all regulations adopted by the Board of Fisheries. Sec. 16.43.955. Hearings in proximity to Board of Fisheries meetings. When practicable, a commission hearing that deals with the subject of limiting entry to a fishery shall be held on the same dates on which, and in the same building or in a building adjacent to the building in which, a Board of Fisheries meeting is being held. Sec. 16.43.960. Commission revocation or suspension of permits. (a) The commission may revoke, suspend, or transfer all entry or interim-use permits held by a person who knowingly provides or assists in providing false information, or fails to correct false information provided to the commission for the purpose of obtaining a benefit for self or another, including the issuance, renewal, duplication, or transfer of an entry or interim-use permit, or vessel license. The commission may suspend that person's eligibility to hold an entry or interim-use permit for a period not to exceed three years, and may impose an administrative fine of not more than $5,000 on the person. The commission may also impose an administrative fine of not more than $5,000 on an entity whose officers, employees, representatives, or agents knowingly provide or assist in providing false information, or fail to correct false information provided, to the commission for the purpose of obtaining a benefit. (b) The commission shall serve the respondent personally or by certified or registered mail with a notice to show cause why the proposed action should not take place. The notice to show cause must (1) be supported by an affidavit, which may be made on information or belief, setting out the facts that are the basis of the proposed actions; (2) provide for a least 30 days' notice of the place, date, and time of the hearing where the respondent may present evidence in opposition to the proposed action; unless waived in writing by the respondent, the hearing shall be held within the judicial district in which the respondent resides if the respondent resides in the state; the hearing place shall be at the discretion of the commission for those respondents residing outside the state; (3) specify the statutes or regulations violated; (4) state with particularity the action proposed to be taken; (5) indicate to the respondent that the respondent's ability to permanently transfer the permits that are the subject of the show cause proceedings has been suspended as of the date of the notice and will continue to be suspended until the exhaustion of all administrative and judicial remedies; and (6) provide other information the commission considers proper. (c) A permit subject to show cause proceedings under this section may not be transferred after the date of the notice in (b) of this section pending exhaustion of all administrative and judicial remedies arising from action taken under this section. (d) Except when there is a vacancy as provided in AS 16.43.030 (c), the show cause hearing shall be conducted before a quorum of commissioners and shall be presided over by a hearing officer appointed by the commission who shall rule on the presentation of evidence and other procedural matters. Hearings shall be conducted in accordance with regulations adopted under AS 16.43.110 (b). (e) The failure of a respondent properly served under (b) of this section to appear at the hearing is not grounds for setting aside any commission action taken. However, the commission may in its discretion order a continuance or second hearing. (f) [Repealed, § 8 ch 22 SLA 1985.] (g) The provisions of this section apply to conduct occurring after January 1, 1973, but do not affect a permit held by a person who is a bona fide purchaser. Failure to correct false information is a continuing offense. (h) Judicial review of commission determinations under this section is in accordance with AS 44.62.560 — 44.62.570; however, if a hearing de novo is granted under AS 44.62.570 (d), the hearing may, in the discretion of the court, be had with a jury sitting if application for the jury hearing is filed with the court no later than 10 days after service of the notice of appeal. (i) An entry permit revoked by the commission under this section that is pledged as security for a loan under AS 16.10.333 or AS 44.81.231 shall be reassigned or sold as provided in AS 16.10.337 or AS 44.81.250 . (j) The commission shall immediately cancel a limited entry permit card issued to a debtor under a loan made under AS 16.10.300 — 16.10.370 when the commission receives a certificate of loan termination containing a copy of the (1) notice required by AS 16.10.335 (a); or (2) notice that, if the debtor has filed bankruptcy, the automatic stay issued is no longer in effect and the debtor has not reaffirmed the debt. Sec. 16.43.970. Penalties. (a) A person who violates a provision of this chapter or a regulation adopted under this chapter is, upon conviction, guilty of a class B misdemeanor and is punishable by a fine of not more than $5,000 for a first conviction, and a fine of not more than $10,000 for a second or third conviction. Upon a first or second conviction under this subsection, the court may in its discretion also order the commission to suspend the commercial fishing privileges of the person for a period of not more than three years and to revoke one or more or all commercial fishing permits held by the person. Upon a third or subsequent conviction under this subsection, the person is also subject to a loss of commercial fishing privileges as provided under (i) of this section. This subsection does not apply to violations of AS 16.43.140 (a). (b) A person who knowingly makes a false statement to the commission for the purpose of obtaining a benefit, including the issuance, renewal, duplication, or transfer of an entry or interim-use permit or vessel license or a person who assists another by knowingly making a false statement to the commission for the purpose of obtaining a benefit for another, is guilty of the crime of unsworn falsification in the second degree as set out in AS 11.56.210 . Upon conviction, the person is also subject to suspension of commercial fishing privileges and revocation of commercial fishing permits under (i) of this section. (c) [Repealed, § 12 ch 47 SLA 1981.] (d) If a permit holder is charged by the state with violating a provision of this chapter or a regulation adopted under this chapter, the holder may not transfer any interim-use or entry permit under AS 16.43.170 until after the final adjudication or dismissal of the charges. (e) Notwithstanding any other provision of this section, an interim-use or entry permit may not be transferred while under suspension, without the consent of the commission. (f) A commercial fishing entry permit revoked under this section that is pledged as security for a loan under AS 16.10.333 , or 16.10.338, or AS 44.81.231 shall be reassigned as provided in AS 16.10.337 or AS 44.81.250 . (g) A person who violates the provisions of AS 16.43.140 (a) is (1) upon a first conviction, guilty of a class B misdemeanor and may be sentenced to a definite term of imprisonment of not more than 90 days, or forfeiture of the person's fishing vessel, or both, and shall be sentenced to a fine of not less than $5,000 nor more than $10,000 and loss of commercial fishing privileges under (i) of this section; (2) upon a second conviction, guilty of a class A misdemeanor and may be sentenced to a definite term of imprisonment of not more than one year, and shall be sentenced to a fine of not less than $10,000 nor more than $20,000, forfeiture of the person's fishing vessel, and loss of commercial fishing privileges under (i) of this section; (3) upon a third or subsequent conviction, guilty of a class A misdemeanor and may be sentenced to a definite term of imprisonment of not more than one year, and shall be sentenced to a fine of not less than $20,000 nor more than $50,000, forfeiture of the person's fishing vessel, and loss of commercial fishing privileges under (i) of this section. (h) A person convicted of violating the provisions of AS 16.43.140 (a) forfeits the value of the fishery resources found on board the person's vessel at the time of the violation. (i) Upon the conviction of a person for an offense described under (a), (b), or (g) of this section, the court shall immediately notify the commission of the conviction. The notice provided by the court shall be accompanied by an order suspending commercial fishing privileges and revoking commercial fishing permits under (a) of this section, as appropriate. The commission shall, upon receipt of (1) an order from the court under (a) of this section, suspend the commercial fishing privileges of a person for the period set by the court and revoke commercial fishing permits held by the person as directed by the court; (2) a notice from the court that a person has been convicted of a third or subsequent violation of (a) of this section, suspend all commercial fishing privileges of the person for a period of three years from the date of conviction and revoke all commercial fishing permits held by the person; (3) a notice from the court that a person has been convicted of a violation described under (b) of this section, suspend all commercial fishing privileges of the person for a period of three years from the date of conviction and revoke all commercial fishing permits held by the person; (4) a notice from the court that a person has been convicted of a violation described under (g)(1) of this section, suspend all commercial fishing privileges of the person for a period of one year from the date of conviction; (5) a notice from the court that a person has been convicted of a violation described under (g)(2) of this section, suspend all commercial fishing privileges of the person for a period of two years from the date of conviction; (6) a notice from the court that a person has been convicted of a violation described under (g)(3) of this section, suspend all commercial fishing privileges of the person for a period of five years from the date of conviction. (j) In this section, (1) “commercial fishing permit” means an entry permit or an interim-use permit issued under this chapter; (2) “commercial fishing privileges” means the privilege of participating in an activity for which a commercial fishing permit is required and the privilege of obtaining a commercial fishing permit. Sec. 16.43.975. Public disclosure of certain documents prohibited. Documents submitted to the commission containing information relating to an individual's personal finances and information supplied by individuals for research purposes, produced in response to requests by the commission, are not subject to public disclosure. Sec. 16.43.980. Report and recommendations. (a) The commission shall prepare an annual report and notify the legislature that it is available. The report must include but not be limited to the following: (1) a progress report on the reduction of entry permits to optimum levels; (2) recommendations for additional legislation relating to the regulation of entry of participants and vessels into Alaska commercial fisheries. (b) [Repealed, § 37 ch 14 SLA 1987.] Sec. 16.43.990. Definitions. In this chapter, (1) “commission” means the Alaska Commercial Fisheries Entry Commission; (2) “economically healthy fishery” means a fishery that yields a sufficient rate of economic return to the fishermen participating in it to provide for, among other things, the following: (A) maintenance of vessels and gear in satisfactory and safe operating condition; and (B) ability and opportunity to improve vessels, gear and fishing techniques, including, when permissible, experimentation with new vessels, new gear, and new techniques; (3) “entity” means a corporation, company, partnership, firm, association, organization, joint venture, trust, society, or other legal entity other than a natural person; (4) “fishery” means the commercial taking of a specific fishery resource in a specific administrative area with a specific type of gear; however, the commission may designate a fishery to include more than one specific administrative area, gear type, or fishery resource; (5) “gear” means the specific apparatus used in the commercial harvest of a species, including but not limited to purse seines, drift gill nets, set gill nets, and troll gear; (6) “optimum number” includes an optimum range of numbers; (7) “person” means a natural person; “person” does not include a corporation, company, partnership, firm, association, organization, joint venture, trust, society, or other legal entity other than a natural person; (8) “present ability to actively participate” means the person applying for a permit is physically able to harvest fish in the fishery and has reasonable access to commercial fishing gear of the type utilized in that fishery; (9) “priority classification” means the allocation of potential permit applicants into reasonable groupings of similarly situated applicants and the priority ranking of those groupings according to the extent to which they satisfy the standards of preference; (10) “type of gear” means a customary and identifiable classification of gear and shall include: (A) those classifications for which separate regulations were adopted by the Board of Fisheries and for which separate gear licenses were required by former AS 16.05.550 — 16.05.630; and (B) distinct subclassifications of gear such as “power” troll gear and “hand” troll gear; (11) “unit of gear” means the maximum amount of a specific type of gear that can be fished by a person under regulations established by the Board of Fisheries defining the legal requirements for that type of gear.