The Adjudications Section at the Commission 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 reduced (poverty) permit renewal fees.
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. 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 1995, Commission paralegals conducted hearings and decided appeals of denied emergency transfer requests.
The hearing officers conducted 55 hearings in 1995: 10 on permit applications, 42 on permit transfers, and 3 on miscellaneous actions. The hearing officers issued 115 decisions: 70 on permit applications, 40 on permit transfers, and 5 on miscellaneous actions. At the end of the year, 450 cases were in various stages leading up to the issuance of a decision by a hearing officer.
The Commissioners adjudicated a total of 126 cases during 1995: 60 permit applications, 45 permit transfers, 1 fine and 20 miscellaneous actions. At the end of the year, 212 cases were in various stages of the adjudication process leading to the issuance of final decisions by the Commissioners.
The Alaska Supreme Court issued two decisions on limited entry permit applications during 1995:
In Lewis v. State, CFEC, 892 P.2d 175 (Alaska 1995), the court addressed Lewis' applications for herring purse seine permits for Prince William Sound and Cook Inlet. On the Prince William Sound application the court upheld the Commission's interpretation of AS 16.43.260 requiring an actual physical harvest--bringing the resource under physical control--to be eligible to apply for an entry permit. On the Cook Inlet application the court found Lewis' evidence proved he qualified for credit for owning a herring purse seine.
In Dominish v. State, CFEC, 907 P.2d 487 (Alaska 1995), the court held there were no violations of the applicant's due process rights. Dominish requested and received a written administrative hearing. He was later offered an additional hearing but he waived it. The court upheld the Commission's denial of Dominish's point claims and application.
The Commission also continues to cooperate with the IRS in an effort to help permit holders achieve voluntary federal tax compliance. The Commission's efforts have included support for the Fisher's Tax Obligation Loan Program administered by the Division of Investments.
Despite this cooperation, over the state's objection, the IRS attempted a forced sale of three entry permits shortly before Christmas of 1995. Subsequently, in early 1996, the IRS applied to the Commission for transfers of the permits to the successful bidders. During the course of the Commission's review of IRS' applications, one buyer withdrew and obtained a refund of his bid from the IRS. The Commission denied a second application based upon the buyer's ineligibility. With respect to the third application, the Commission decided in Carle, CFEC 96-003-P (1996), to deny the transfer.
Subsequently, Senator Ted Stevens, as Chairman of the Senate Governmental Affairs Committee, conducted an oversight hearing on the IRS and arranged for a meeting in Anchorage that included the Commission and IRS Commissioner Margaret Milner Richardson. Following the meeting, the Commission and the IRS have continued a dialogue. On occasions the IRS has called the Commission concerning particular permit holders who may be facing IRS enforcement. The Commission, in turn, has been able to call upon people in the field like the Bristol Bay Permit Brokerage and the Alaska Business Development Center to intervene and help permit holders make arrangements with the IRS to avoid harsh enforcement.
Cooperation between the IRS and the State to implement the State's Tax Obligation Loan Program is required by a written Memorandum or Understanding (MOU). This cooperation under the MOU has so far generated more than $4 million in revenue to the IRS. Nonetheless, contrary to its commitment in the MOU, IRS gave the State only two days notice and scheduled the forced sale of two entry permits shortly before Christmas of 1996.