State of Alaska
Fiscal Note
Bill Version: CSSB 90(RES)
2019 Legislative Session
Fiscal Note Number: 3
(S) Publish Date: 4/30/2019
Identifier: SB090-DFG-CFEC-03-22-19 Department: Department of Fish and Game
Title: COOK INLET: NEW ADMIN AREA;PERMIT Appropriation: Commercial Fisheries
BUYBACK Allocation: Commercial Fisheries Entry Commission
Sponsor: MICCICHE OMB Component Number: 471
Requester: (S) RES
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2020 Governor's
Appropriation FY2020 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Personal Services *** *** *** *** *** ***
Travel
Services
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating *** 0.0 *** *** *** *** ***
Fund Source (Operating Only)
None
Total *** 0.0 *** *** *** *** ***
Positions
Full-time
Part-time
Temporary
Change in Revenues
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Estimated SUPPLEMENTAL (FY2019) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2020) cost: 0.0 (separate capital appropriation required)
Does the bill create or modify a new fund or account? No
(Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
ASSOCIATED REGULATIONS
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? Yes
If yes, by what date are the regulations to be adopted, amended or repealed? 01/01/20
Why this fiscal note differs from previous version/comments:
Not applicable, initial fiscal note based on 2.13.19 Governor's FY20 request.
Prepared By: V. Fate Putman, Chair/Commissioner Phone: (907)790-6942
Division: Commercial Fisheries Entry Commission Date: 03/22/2019
Approved By: Samantha Gatton, Acting Director Date: 03/22/19
Agency: Division of Administrative Services, Department of Fish and Game
Printed 4/30/2019 Page 1 of 2 Control Code: jlJQi
 CSSB 90(RES) - Fiscal Note 3
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. SB 90
2019 LEGISLATIVE SESSION
Analysis
This Act directs the Alaska Commercial Fisheries Entry Commission (CFEC) to administer a buyback program for the limited
entry set net permits in the Cook Inlet area. Specifically, the buyback program would include those set net permit holders
who have a two (2) year history of fishing in the Eastern Set Net Subdistrict of Cook Inlet Central District. This buyback
program is designed to remove up to 200 permits from the eastern portion of the fishery. This will be a voluntary program
where permit holders in the Eastern Cook Inlet Subdistrict will vote on whether to proceed with this buyback via an
election administered by CFEC.
Administrative Functions: CFEC would be responsible to administer a public outreach campaign to notify fishermen of the
buyback process. CFEC will also be tasked with ensuring that only qualified fishermen participate in the election and
buyback process. Other tasks included in the Act which will impact CFEC include:
- Administering an election of qualified applicants.
- Creating an application process for the buyback once it is approved by the impacted fishermen.
- Ensuring that only qualified eastside set net fishermen are included in the buyback.
- Verifying the surveys of set net site leases associated with specific fishermen.
- Conducting a lottery among the applicants to select the 200 maximum participants.
- Servicing the payment of buyback funds to the 200 permit holders who are selected to sell
permits.
- Administratively canceling all set net permits of the selected 200 participants.
- Notifying DNR of individual fishermen who have terminated fishing permits to include land leased
through DNR.
- Reassign permits to those Cook Inlet set net fishermen who are not part of the Eastern Subdistrict.
- Reassign Limited Entry Permits to those fishermen who remain in the Eastern Subdistrict but who
did not participate in the buyback program.
- Reporting to the legislature on the status of the buyback program.
- Reporting to the Lt. Governor on the outcome of the election among qualified fishermen.
Adjudication Functions: Permit Holders who were either not selected via lottery or were excluded based upon lack of past
participation in the Eastern Cook Inlet Subdistrict must be provided an adjudication process. CFEC will be tasked with
adjudicating claims from those fishermen who were excluded from participation. This process could also include those
fishermen that were precluded from voting in the election, those that were not qualified to participate and those that
were not selected in the lottery process for buyback. This will increase the workload of the adjudications section of CFEC
and may require additional hearing officers.
Regulations Process: The Act would require CFEC to draft, publish, hold public hearings and implement new regulations to
accompany the change in statutory language contained in the Act. Two new administrative areas would need to be
defined in regulations, the Eastern Subdistrict and the remaining portions of Cook Inlet not included in the new Eastern
Subdistrict. This regulation process would take staff time to implement, but this workload is expected to be absorbed by
existing agency staff.
Considering all the potential additional duties required of CFEC in this legislation, it is difficult to quantify the overall cost
to the Commission. The outcome of the election alone would greatly impact the fiscal outcome. Therefore, the
Commercial Fisheries Entry Commission submits an indeterminate fiscal note.
(Revised 9/05/18 OMB/LFD) Page 2 of 2
SB090-DFG-CFEC-03-22-19 Page 2 of 2 Control Code: jlJQi


Statutes affected:
SB0090A, AM SB 90, introduced 03/13/2019: 16.43.200, 16.43.310, 16.43.320, 38.05.082, 38.05.085, 16.43.332, 16.43.020
SB0090B, AM CSSB 90(RES), introduced 04/30/2019: 16.43.200, 16.43.150, 16.43.020, 16.43.310, 16.43.320, 38.05.082, 38.05.085