<Table of Contents> <Previous Section> <Next Section>
The Adjudications Section is responsible for processing applications for entry permits in limited fisheries and conducting hearings for those who contest Commission decisions affecting them. The section also conducts investigations into potential violations of the Commission's statutes and regulations, and provides assistance to other enforcement agencies.
Entry permit applications are first evaluated by Commission paralegals who classify applicants in a ranking system that measures each applicant's past participation and economic dependence on the fishery. Applicants who disagree with their initial classifications may request hearings. Hearings are also available to contest initial decisions about permit transfer requests or about qualifications for the lower permit renewal fees charged to Alaska residents.
Commission hearing officers conduct administrative hearings throughout the state and decide appeals of initial determinations about entry permit applications, permit transfer requests, and fee arrearages charged to those who wrongly claimed to be Alaska residents. Beginning in 1991, Commission paralegals conducted the initial hearings on appeals from denied emergency transfer requests. The Commissioners review and affirm or modify hearing officers' decisions on their own motion, or upon the request of an affected party.
Commission hearing officers also preside in "show cause" hearings. These hearings are held in the presence of the Commissioners. In these proceedings, the Commission may impose fines, or revoke or suspend the permits of those who attempt to mislead the Commission with false information.
During 1991, Commission paralegals completed most of the initial classification of applications for Norton Sound herring gill net and beach seine, Cape Romanzov herring gill net, Nelson Island herring gill net and Nunivak Island herring gill net entry permits. Applications have been accepted for Togiak herring spawn on kelp permits, and these will be processed during 1992.
The hearing officers conducted 133 hearings in 1991: 93 on permit applications, and 40 on permit transfers. The hearing officers issued 151 decisions: 108 on permit applications, 29 on permit transfers, 1 on fee arrearages, 1 on a show cause proceeding, and 12 miscellaneous actions. At the end of the year, 687 cases were in various stages leading up to the issuance of a decision by a hearing officer.
The Commissioners adjudicated a total of 136 cases during 1991: 123 permit applications, 7 permit transfers, 2 fee arrearages, and 4 on miscellaneous matters. At the end of the year, 163 cases were in various stages of the adjudication process leading to the issuance of final decisions by the Commissioners.
During 1991, the Commission received fines and arrearages of $69,370 due to the successful settlement of prior actions. The Commission continues to cooperate with state and federal law enforcement agencies.
The Alaska Supreme Court issued one decision in 1991 about the Commission and entry permits. In CFEC, State v. Baxter, 806 P.2d 1373 (Alaska 1991), the court upheld a CFEC decision denying an applicant credit for owning a vessel because he did not prove he ever used it in the fishery during the applicable period.
During the ten years that the State has resisted Internal Revenus Service (IRS) attempts to seize and force the sale of limited entry permits, the Entry Commission has consistently advised fishers not to wager on a favorable outcome and to get their affairs in order with the IRS. Our advice is now more pressing than ever. In the Lorentzen case, the Federal District Court ruled that limited entry permits are subject to IRS' seizure and forced sale. The State participated in Lorentzen as a friend of the court. The individual fisher who filed the Lorentzen case did not appeal the court's ruling.
Lorentzen does not change State law: except as noted below, creditors may not execute upon entry permits, and permits may not be pledged as security for debts (with the exception of a State or CFAB loan). The net effect of Lorentzen is that, in addition to child support claimants with judgements for arrearages, the Internal Revenue Service can now execute upon entry permits to foreclose upon federal tax liens.
In response, the State Legislature has enacted Governor Hickel's SB 449, which provides statutory guidelines for transfers as the result of valid executions. The legislation is intended to ensure some State control over the transfers and, among other things, to protect the revolving loan funds of the State Commercial Fisheries Loan Program and the Alaska Commercial Fishing and Agriculture Bank.
At the same time, the Entry Commission and the IRS have undertaken a dialogue in an effort to facilitate voluntary compliance by fishers with their tax obligations. The problem is serious. Many fishers planned to pay their 1990 taxes with earnings from the 1991 season, which for salmon fishers was a disaster. In part as a consequence, IRS estimates that some 3,000 Alaska fishers owe federal taxes. The commission will pursue these discussions in the hope that seizures and forced sales of entry permits can be avoided.