Original Notice.

     Preproposal statement of inquiry was filed as WSR 07-02-078.

     Title of Rule and Other Identifying Information: WAC 220-95-100 Sea urchin license reduction program and 220-95-110 Sea cucumber license reduction program. The legislature has set up a self-funded industry license buy-back program, which will increase the maximum bid amount paid to encourage further license sales to the department. This in turn will reduce overcapitalization and will allow for license retirements.

     Hearing Location(s): Ellensburg Inn and Conference Center, 1700 Canyon Road, Ellensburg, WA, on April 6-7, 2007, at 8:00 a.m.

     Date of Intended Adoption: May 18, 2007.

     Submit Written Comments to: Lori Preuss, Rules Coordinator, 600 Capitol Way North, Olympia, WA 98501-1091, e-mail preuslmp@dfw.wa.gov, fax (360) 902-2155, by April 4, 2007.

     Assistance for Persons with Disabilities: Contact Susan Yeager by October 19, 2006 [April 3, 2007], TTY (360) 902-2207 or (360) 902-2267.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: To increase the maximum bid amount for sea urchin and sea cucumber license-reduction buy-back efforts to reduce fleet size in both fisheries and increase the economic return of the remaining fishers.

     Reasons Supporting Proposal: Current rules with a lower maximum bid amount are not generating enough interest to cause existing license holders to sell their licenses. Thus, the goal of license-reduction levels has not yet been met.

     Statutory Authority for Adoption: RCW 77.70.150 and 77.70.190.

     Statute Being Implemented: RCW 77.70.150 and 77.70.190.

     Rule is not necessitated by federal law, federal or state court decision.

     Name of Proponent: Washington Department of fish and wildlife, governmental.

     Name of Agency Personnel Responsible for Drafting: Morris W. Barker, 1111 Washington Street, Olympia, (360) 902-2826; Implementation: Lew Atkins, 1111 Washington Street, Olympia, (360) 902-2651; and Enforcement: Bruce Bjork, 1111 Washington Street, Olympia, (360) 902-2373.

     A small business economic impact statement has been prepared under chapter 19.85 RCW.

     2. Kinds of Professional Services That a Small Business is Likely to Need in Order to Comply with Such Requirements: None required.

     3. Costs of Compliance for Businesses, Including Costs of Equipment, Supplies, Labor, and Increased Administrative Costs: No cost of compliance - participation is purely voluntary.

     4. Will Compliance with the Rule Cause Businesses to Lose Sales or Revenue? No, revenue and sales will be gained by remaining participants.

     5. Cost of Compliance for the 10% of Businesses That are the Largest Businesses Required to Comply with the Proposed Rules Using One or More of the Following as a Basis for Comparing Costs:

     A. Cost per employee;

     B. Cost per hour of labor; or

     C. Cost per one hundred dollars of sales.

     There is no cost of compliance.

     6. Steps Taken by the Agency to Reduce the Costs of the Rule on Small Businesses or Reasonable Justification for Not Doing So: The industry advisory board was consulted on the appropriate maximum bid amount.

     7. A Description of How the Agency Will Involve Small Businesses in the Development of the Rule: The agency will present the rule proposals in a public forum under the auspices of the fish and wildlife commission's public rule-making process. See response to #6 above.

     8. A List of Industries That Will Be Required to Comply with the Rule: The sea urchin and sea cucumber dive fishery may choose to participate in the voluntary license reduction program.

     A copy of the statement may be obtained by contacting Morris W. Barker, 600 Capitol Way North, Olympia, WA 98501-1091, phone (360) 902-2826, fax (360) 902-2944, e-mail barkemwb@dfw.wa.gov.

     A cost-benefit analysis is not required under RCW 34.05.328. These proposals do not affect hydraulics.

February 13, 2007

Loreva M. Preuss

Rules Coordinator

OTS-9479.1

AMENDATORY SECTION(Amending Order 02-184, filed 8/9/02, effective 9/9/02)

WAC 220-95-100   Sea urchin license reduction program.   In order to provide for economic stability in the commercial sea urchin fishery, and in accordance with RCW 77.70.150, the department establishes the sea urchin license reduction program (program).

     (1) Eligibility: All persons who currently hold a sea urchin commercial fishery license are eligible to offer their license(s) for purchase under the program.

     (2) Method of purchase: The department will rank offers to sell sea urchin licenses from the lowest offer to the highest offer. The department will purchase licenses each year from the funds made available under RCW 77.70.150, with a maximum purchase price of $((8,000)) 11,000 per license.

     (3) Offer process: The department will accept offers to sell beginning August 1st of each year and will purchase licenses based on the funds that are available on the following September 30th.

     (4) Selection process: The department will select licenses to be purchased beginning with the lowest offer to sell, and continuing until there are insufficient funds to purchase a complete offer. If two or more licenses are offered at the same price, selection will be by random draw.

     (5) License reduction process: Upon selection, the department will issue a warrant to the license holder in the amount of the offer. On the date the warrant is mailed to the mailing address of the license holder as shown in their department licensing file, the department will void the license. Upon receipt of the warrant, the license holder is to return the license cards to the department.

     (6) No prohibition on reentry: License holders who sell a license under the program may reenter the sea urchin commercial fishery.

     (7) Program termination: This program terminates when the number of sea urchin commercial fishery licensees is reduced to twenty-five.

[Statutory Authority: RCW 77.12.047. 02-17-014 (Order 02-184), § 220-95-100, filed 8/9/02, effective 9/9/02; 02-01-069 (Order 01-274), § 220-95-100, filed 12/14/01, effective 1/14/02.]

OTS-9480.1

AMENDATORY SECTION(Amending Order 05-170, filed 8/5/05, effective 9/5/05)

WAC 220-95-110   Sea cucumber license reduction program.   In order to provide for economic stability in the commercial sea cucumber fishery, and in accordance with RCW 77.70.190, the department establishes the sea cucumber license reduction program (program).

     (1) Eligibility: All persons who currently hold a sea cucumber commercial fishery license are eligible to offer their license(s) for purchase under the program.

     (2) Method of purchase: The department will rank offers to sell sea cucumber licenses from the lowest offer to the highest offer. The department will purchase licenses each year from the funds made available under RCW 77.70.190, with a maximum purchase price of $((12,000)) 15,000 per license.

     (3) Offer process: The department will accept offers to sell beginning August 1st of each year and will purchase licenses based on the funds that are available on the following September 30th.

     (4) Selection process: The department will select licenses to be purchased beginning with the lowest offer to sell, and continuing until there are insufficient funds to purchase a complete offer. If two or more licenses are offered at the same price, selection will be by random draw.

     (5) License reduction process: Upon selection, the department will issue a warrant to the license holder in the amount of the offer. On the date the warrant is mailed to the mailing address of the license holder as shown in their department licensing file, the department will void the license. Upon receipt of the warrant, the license holder is to return the license cards to the department.

     (6) No prohibition on reentry: License holders who sell a license under the program may reenter the sea cucumber commercial fishery.

     (7) Program termination: This program terminates when the number of sea cucumber commercial fishery licensees is reduced to twenty-five.

[Statutory Authority: RCW 77.12.047. 05-17-027 (Order 05-170), § 220-95-110, filed 8/5/05, effective 9/5/05; 02-17-014 (Order 02-184), § 220-95-110, filed 8/9/02, effective 9/9/02; 02-01-069 (Order 01-274), § 220-95-110, filed 12/14/01, effective 1/14/02.]

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