BP BHEAD INT S

AN ACT Relating to salmon enhancement projects for public fisheries; amending RCW 75.08.420, 75.08.430, and 75.50.110; and adding new sections to chapter 75.50 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that the recreational, commercial, and Indian tribal fisheries for salmon may be improved by the authorization of nonprofit production of salmon by regional fisheries enhancement groups on an expanded scale. Efforts of the nonprofit regional enhancement groups have been very rewarding and they have shown the capability of conducting larger scale enhancement activities. The primary constraint for further development of nonprofit regional enhancement projects has been a lack of funding and a lack of clear, legislative direction to the department. The legislature recognizes the need for additional funding resources and for statutory encouragement to achieve the full development of the potential of the regional groups during a time when salmon runs are in dire need of enhancement.

NEW SECTION. Sec. 2. Regional fisheries enhancement groups shall be issued permits by the department for the purpose of constructing and operating large-scale salmon enhancement projects in freshwater, estuarine, and marine waters of the state. Large-scale projects shall be located for the primary purpose of increasing salmon harvest in recreational, commercial, and treaty Indian fisheries. Enhancement sites that are located in marine waters or are located lower in watersheds are preferable to enhancement sites that are located high in watersheds, due to higher survival rates of salmon released in the former locations.

The department shall work with the regional fisheries enhancement groups to identify sites that will have minimal adverse impact upon naturally spawning salmonids and that will provide maximum survival of released salmon and maximum contribution to the public fisheries. Sites shall be located in such a manner as to allow for an efficient cost-recovery harvest of the returning salmon for the sole purpose of providing a funding source for continued enhancement activities. The department shall identify at least one large-scale salmon enhancement site that will facilitate cost recovery within the boundaries of each regional fisheries enhancement group.

The department shall allow the use of innovative management approaches that encourage the development of selective public fisheries on the salmon that are produced by large-scale salmon enhancement projects operated by regional fisheries enhancement groups.

NEW SECTION. Sec. 3. The department shall issue the necessary permits for the conduct of cost-recovery sales of surplus salmon and salmon eggs by regional fisheries enhancement groups. The revenue from surplus salmon and salmon eggs sales shall be placed in the regional fisheries enhancement group account for the sole use of the regional group which generated the specific revenue.

Cost-recovery operations shall be conducted to allow for obtaining sufficient broodstock to fully operate the enhancement project, and to provide the highest benefit in terms of revenue production. Sales of viable salmon eggs shall be permitted only in cases where all other public fisheries enhancement-related uses of the eggs are fulfilled beforehand. Surplus salmon and salmon eggs from regional fisheries enhancement groups shall be sold through a bidding system to the highest qualified bidder. The bidding for surplus salmon from regional fisheries enhancement group projects shall be conducted by the department of general administration.

NEW SECTION. Sec. 4. The department shall administer a program for start-up loans to regional fisheries enhancement groups in order to fund large-scale enhancement projects. The loans shall feature deferred payback, which will provide a six to ten-year deferral period depending on the nature of the project funded. No enhancement project shall be funded that does not have the potential to provide payback revenue from the sale of returning surplus salmon or salmon parts.

The department shall propose legislation for the funding and administration of the start-up loan program, on or before January 1, 1996, to the house of representatives and senate natural resources committees.

Sec. 5. RCW 75.08.420 and 1989 c 336 s 3 are each amended to read as follows:

The director may contract with cooperatives or private aquaculturists for the purchase of quality salmon smolts for release into public waters if all department fish rearing facilities are operating at full capacity. The intent of cooperative and private sector contracting is to explore the opportunities of cooperatively producing more salmon for the public fisheries without incurring additional capital expense for the department.

Regional fisheries enhancement groups may purchase quality salmon smolts from private aquaculturists for enhancement projects approved by the department.

Sec. 6. RCW 75.08.430 and 1989 c 336 s 4 are each amended to read as follows:

If the director elects to contract with cooperatives or private aquaculturists for the purpose of purchasing quality salmon smolts, contracting shall be done by a competitive bid process. In awarding contracts to private contractors, the director shall give preference to nonprofit corporations, such as regional fisheries enhancement groups. The director shall establish the criteria for the contract, which shall include but not be limited to species, size of smolt, stock composition, quantity, quality, rearing location, release location, and other pertinent factors.

Sec. 7. RCW 75.50.110 and 1990 c 58 s 4 are each amended to read as follows:

A regional fisheries enhancement group advisory board is established to make recommendations to the director. The advisory board shall make recommendations regarding regional enhancement group rearing project proposals and funding of those proposals. The members shall be appointed by the director and consist of two commercial fishing representatives, two recreational fishing representatives, and three at-large positions. The advisory board membership shall include two members serving ex officio to be nominated, one through the Northwest Indian fisheries commission, and one through the Columbia river intertribal fish commission.

The department may use account funds to provide agency assistance to the groups. The level of account funds used by the department shall be determined by the director after review and recommendation by the regional fisheries enhancement group advisory board and shall not exceed twenty percent of annual contributions to the account.

The regional fisheries enhancement group advisory board shall expand the role of the regional fisheries enhancement group program to encourage the development of large-scale enhancement projects that incorporate cost recovery. Such projects are to be located in areas that maximize contribution to the public fisheries and provide for harvest of surplus salmon and salmon eggs that are suited to recovery of the project's costs.

NEW SECTION. Sec. 8. Sections 1 through 4 of this act are each added to chapter 75.50 RCW.