Rush Hour - Alaskan Style
Egegik River
© K. Anthony Lara Photography

Introduction

The commercial fishing industry is a basic component of Alaska's resource-based economy and the economic backbone of Alaska's rural fishing communities. The commercial fishing industry is the state's largest source of private sector jobs. The Commercial Fisheries Entry Commission (Commission) is an essential management component for developing and sustaining Alaska's billion dollar fishing industry.

Alaskan voters instituted the Limited Entry Act by voting in 1972 to amend Alaska's constitution to create a system of fishery limitation (Article VIII, Sec. 15). The 1973 Alaska Legislature approved the Limited Entry Act creating a resource agency to promote conservation and sustained yield management of Alaska's fishery resources and the economic health and stability of commercial fishing.

The Commission became the exempt, independent, quasi-judicial agency to carry out the mandate of the people and Legislature of the State of Alaska.
To meet these responsibilities, the Commission is organized into four sections: Adjudications, Research, Licensing and Data Processing; (see the chart: "Organization by Agency Function") and engages in the following activities mandated by law (AS 16.43)
Establishes maximum numbers of entry permits for fisheries to be limited and implements application processes and point systems to rank eligible applicants;
Processes entry permit applications and adjudicates claims not resolved in initial classification;
Issues entry permits in limited fisheries, interim-use permits in unlimited fisheries and licenses for all vessels as required to legally participate in the State's commercial fisheries;
Processes requests for emergency and permanent transfers of entry and interim-use permits and compiles data of all such transfers;
Enforces provisions of the Limited Entry Act by regulating permit transfer activities;
Monitors unlimited fisheries to assess the rate of development and the need for limitation;
Monitors limited fisheries for setting optimum numbers and determining fleet size;
Participates in research and development of comprehensive fisheries economic data; and
Works with state and federal management agencies to developing and coordinating fisheries' policies.

Since 1973 the Commission has granted more than 10,000 Alaskans permanent access to their valuable fishery resource by limiting entry in 50 different fisheries. The Commission has received petitions for the limitation of 24 additional fisheries.

The percentage of permits held by Alaska residents has remained relatively stable. Today approximately 77% of all permits are held by Alaskans and more than half of that number are held by rural Alaskans.

The drastic declines in salmon prices in recent years due to growing farmed salmon production have imposed hardships on many Alaska fishing families. The Commission is concerned with the efforts by the Internal Revenue Service (IRS) to force the sale of entry permits from local fishers. Together with the Division of Investments, the Commission has helped fishers take advantage of the Tax Obligation Loan Program as a means for fishers to settle their federal tax obligations and protect their fishing privileges. The Commission and others including State and Federal agencies have been meeting with the IRS to explore ways to cooperate and avoid such harm.

In addition to responding to these current and pressing issues, the Commission has continued to perform its primary functions to license fishers, adjudicate claims, perform critical research and provide data to those people and agencies as needed to make the proper policy decisions as detailed in the following sections. Major decisions and activities affecting the Commission's operations in fiscal year 1996 are outlined in the Commissioner's letter to the Legislature and Governor that is part of this report. Prior years' activities and decisions affecting the Commission's operations are included in the appendices.

1996 was a year of transition for the Commission. Commissioner Frank Homan retired after several years of outstanding service. Frank's leadership resulted in many beneficial changes during his tenure. Frank will be missed.

Governor Tony Knowles appointed Marlene Johnson to the Commission to replace Mr. Homan. Marlene is the first woman and first Alaska Native to serve on the Commission. She is an experienced adjudicator and manager and brings a wealth of knowledge to the Commission. Governor Knowles also reappointed Chairman Bruce Twomley who has served since 1982.

As a food source important to the world, Alaskan fisheries must be sustained through sound management and wise commercial development. We at the Commission renew our commitment to apply our resources and tools toward that goal.

Organization by Agency Function
Commercial Fisheries Entry Commission Dale Anderson, Commissioner Marlene Johnson, Commissioner Bruce Twomley, Chairman ____________________________________________________________________________
Adjudications Frank Glass _______________	Licensing Christine Kelly _______________	Research Kurt Schelle _______________	Data Processing Roger Kolden _______________
Application Processing & Classification Administrative Hearings Case Management Preparation of Official Record in Judicial Appeals Residency and Fraud Investigations	Entry and Interim-Use Permit Renewal Vessel Licensing Permit Transfers Local Licensing (Bristol Bay)	Fisheries Data Collection Economic Profiles New Limitation Research Priority Hardship ("point") System Development and Testing Optimum Number Research	Licensing System Fisheries Data Base Data Development to Adjudications and Research Personnel, Payroll, Travel, Accounting, Purchasing, and Property/Supply Management

Major Decisions/Activities Affecting Agency Operations
Fiscal Years 1997-1988

Fiscal Year 1997

Conducted research, held public hearings and adopted regulations limiting entry into the Southeastern Alaska shrimp beam trawl fishery.
Conducted research, proposed regulations and held public hearings on limiting entry into the Southeastern Alaska shrimp otter trawl fishery and Goodnews Bay herring gillnet fishery.
Conducted research, held public hearings and adopted regulations establishing point systems and an application period for the Prince William Sound sablefish and Southeastern Alaska shrimp pot fisheries.
Conducted research, proposed regulations, held public hearings establishing point systems for the Northern and Southern Southeast herring spawn-on-kelp pound fisheries.
Received petitions to limit additional fisheries and began required analysis.
A member of the Commission met with fishers in Goodnews Bay to discuss limiting entry into the Goodnews Bay herring gillnet fishery.
The Commission participated in the Governor's Salmon Strategy Task Force.
The IRS conducted a pre-Christmas sale of a Cook Inlet salmon set net permit and sold the permit, valued at $30,000, for only $5,005.
The legislature adopted HJR 23 requesting the Alaska Congressional delegation obtain just relief from the actions of the IRS and ensure the IRS complies with federal law.
The legislature adopted HB141 which established a four year moratorium on vessels participating in the statewide and Cook Inlet weathervane scallop fisheries.

Fiscal Year 1996

Conducted research, held public hearings and adopted regulations limiting the Southeastern Alaska dungeness crab, the Prince William Sound sablefish, and the Southeastern Alaska shrimp pot fisheries.
Conducted research, held public hearings and adopted regulations establishing point systems and an application period for the Southeastern Alaska dungeness crab and the Cook Inlet dungeness crab fisheries.
Received petitions to limit additional fisheries and began required analysis.
A member of the Commission and staff participated in the Koliganek Economic Development Council meetings.
A member of the Commission served on the Child Support Enforcement Division's Rural Task Force, concerning child support and Alaska fishers.
The legislature adopted HB 297 which raised the annual vessel license fee based on overall length; revenue generated by the increased fees goes to Fish and Game management of fisheries resources.
The legislature adopted HB 547 which established a four year moratorium on entry into Southeast Alaska dive fisheries.
The legislature adopted HB 538 which established a four year moratorium on vessels participating in the Bering Sea Korean hair crab fishery and authorized the Commission to develop a vessel permit limited entry program.
The legislature adopted SB 42 giving the Commission the authority to propose permit stacking (an individual could hold more than one permit up to limits set by the Board of Fisheries).
The Commission issued the Carle decision denying a request by the IRS to transfer a Southeast Alaska salmon purse seine entry permit to the highest bidder in a forced permit auction held in December.
Representatives from the Commission, other state agencies and Senator Steven's office met with the IRS to explore means to help permit holders achieve voluntary tax compliance and to eliminate forced sales of limited entry permits.
Commission statutes, regulations, public notices, transfer survey, and staff's email addresses became available to users of the Commission's WWW internet site.

Fiscal Year 1995

Conducted research, held public meetings and adopted regulations limiting the Northern and Southern Southeast herring spawn-on-kelp pound fisheries.
Held public meetings in Southeast Alaska to discuss the future of the moratorium in the Southeastern dungeness crab fisheries.
Received petitions to limit additional fisheries and began required analysis.
A member of the Commission served on an Alaska Federation of Natives (AFN) Task Force concerning the IRS and Alaska fishers.
A member of the Commission served on a Bristol Bay Native Association Commission to address issues concerning limited entry.
The Commission participated in the Governor's Salmon Strategy Task Force.
The legislature adopted SB 251 (Ch 62, SLA 1994), which authorized the existing Commercial Fishing Loan Program to lend up to $30,000 to fishers in danger of IRS seizure and forced sale of their entry permits.
The Commission, together with the Division of Investments and the AFN, persuaded the IRS not to implement its new electronic levy program against those fishers eligible for the new loan program.
The Commission, together with the Division of Investments, the IRS, and AFN, developed and began outreach to implement the new Commercial Fishing Tax Obligation Loan Program.
The Commission's Bulletin Board System became available to Internet.

Fiscal Year 1994

Adopted optimum number regulation for the Southeastern Alaska roe herring purse seine fishery. (Johns v. State, CFEC)
Conducted research, held public hearings, and adopted regulations limiting the Cook Inlet dungeness crab fishery.
Conducted research and prepared a report on the Southeastern Alaska dungeness crab fishery to assist in determining if some form of limited entry is warranted for the fishery following the moratorium.
Participated in the AFN Task Force concerning the IRS and Alaska commercial fishers.
Advocated legislation (SB 251) to expand the commercial fishing revolving loan fund to offer loans for past due federal tax obligations.
Developed new licensing system to run on the Commission's local area network (LAN) rather than the state mainframe computer.
Continued to defend state against elimination of nonresident fee differential. Carlson v. CFEC.

Fiscal Year 1993

Completed optimum number study for the Southeastern Alaska roe herring purse seine fishery.
Proposed optimum number regulation pursuant to the study.
Conducted workshops related to getting and keeping limited entry permits in local communities.
Commissioners and hearing officers each completed more than 100 adjudicatory decisions. Among the nearly 1,000 decisions issued since 1983, only one has been reversed by the Alaska Supreme Court.
Conducted many research projects in response to requests from the Commission and others (for example, limited entry studies, Alaska Board of Fisheries (ABF), Alaska Department of Fish and Game (ADF&G), Governor's Office, fishing associations and Legislators).

Fiscal Year 1992

Conducted workshops to help rural Alaskans in getting and keeping limited entry permits in their local communities.
Completed initial classification of Western Alaska herring and Togiak herring spawn-on-kelp fisheries applications.
Continued an optimum number study for the Southeastern Alaska roe herring purse seine fishery.
Conducted research, held public hearings, adopted regulations and implemented a moratorium (in response to HB 137 from the previous year) in the Southeastern Alaska dungeness crab fishery (more than 300 eligible to apply).
Aided the ABF in its creation of a new open access salmon set net fishery around Atka Island for the 1992 season, for the commercial harvest of local pink salmon stocks.

Fiscal Year 1991

Togiak herring spawn-on-kelp fishery point system adopted, application period began, approximately 500 applications were received. Initial classification of approximately half of the 1,813 Western Alaska herring permit applications completed.

Fiscal Year 1990

Exxon Valdez oil spill continued to make demands on Data Processing and Research sections for services required to respond to legal activity.
Western Alaska herring fisheries point systems finalized, and almost 1,100 applications received.
Togiak herring spawn-on-kelp fishery researched, hearings held, and fishery limited.FY89:
Research and hearings on Western Alaska herring fisheries point systems.
Wassillie settlement finalized; processing of 273 applications began.
Alaska Supreme Court decision in Johns case; extensive research and data analysis for optimum number determinations began.
Exxon Valdez oil spill in Prince William Sound created significant demand for Data Processing services to assist affected fishers.

Fiscal Year 1989

Research and hearings on Western Alaska herring fisheries point systems.
Wassillie settlement finalized; processing of 273 applications began.
Alaska Supreme Court decision in Johns case; extensive research and data analysis for optimum number determinations began.
Exxon Valdez oil spill in Prince William Sound created significant demand for Data Processing services to assist affected fishers.

Fiscal Year 1988

Research and hearings on Prince William Sound herring spawn-on-kelp pound fishery point system and processing of 140 applications began.
Processing of 213 applications for the Southeast sablefish fisheries began.
Western Alaska herring fisheries researched, extensive hearings in Western Alaska villages held, and five fisheries limited.

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