WSR 00-14-021

PROPOSED RULES

DEPARTMENT OF

FISH AND WILDLIFE

[ Filed June 28, 2000, 4:26 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 99-19-036.

Title of Rule: 2000 coastal buy-back.

Purpose: Establish salmon license buy-back program.

Statutory Authority for Adoption: Section 7, chapter 107, Laws of 2000.

Statute Being Implemented: Section 7, chapter 107, Laws of 2000.

Summary: Coastal salmon license buy-back program.

Reasons Supporting Proposal: The fishery is overcapitalized and a reduction in fishing capacity will allow for economic stability.

Name of Agency Personnel Responsible for Drafting: Evan Jacoby, 1111 Washington Street, Olympia, 902-2930; Implementation: Jim Lux, 1111 Washington Street, Olympia, 902-2444; and Enforcement: Bruce Bjork, 1111 Washington Street, Olympia, 902-2927.

Name of Proponent: Washington State Department of Fish and Wildlife, governmental.

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

Explanation of Rule, its Purpose, and Anticipated Effects: $900,000 has been appropriated by the Washington state legislature to address loss of coastal salmon fishing opportunity due to the federal Endangered Species Act. The department will allocate $300,000 each to purchases of coastal salmon troll, gill net, and charter licenses. This is expected to reduce the number of licensees by 40, 24 and 38, respectively. These rules set up the program, define eligibility, and provide for the buy-back to proceed.

Proposal Changes the Following Existing Rules: Small modifications are made to the process by which the 1998 program was administered, but this buy-back program affects coastal salmon licenses only.

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

Small Business Economic Impact Statement

1. Description of the Reporting, Record-keeping and Other Compliance Measures Required by Proposed Rule: Persons participating in the program will be required to provide proof of fishing effort if a Phase 2 program is reached.

2. Profession Services Required by the Rule: None.

3. Costs of Compliance, Including Costs of Equipment, Supplies, Labor and Increased Administrative Costs: There is no compliance requirement, as this is a voluntary program. There will be some time required to complete the application form.

4. Will Compliance Cost Businesses to Lose Sales or Revenue? No.

5. Comparison of Costs for the 10% of Businesses That are the Largest Businesses Required to Comply with the Proposed Rule: No requirement; no additional costs.

6. Steps Taken by the Agency to Reduce the Costs of the Rule on Small Businesses: Persons who participated in the 1998 program need not provide additional records. This is the fourth buy-back program involving coastal fishers, and the affected fishers are very familiar with the program requirements.

7. Description of How the Agency Will Involve Small Businesses in Rule Development: These rules are the result of negotiation with industry. The participation, phase one offer amount and phase two calculation method were all suggested by industry.

8. List of Industries Required to Comply with the Rule: No compliance requirement. Washington licenses [licensed] coastal salmon fishers may participate.

A copy of the statement may be obtained by writing to Evan Jacoby, Rules Coordinator, 600 Capitol Way North, Olympia, WA 98504-1091, phone (360) 902-2930, fax (360) 902-2942.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. Not hydraulic rules.

Hearing Location: Best Western Hotel, 15901 West Valley Road, Tukwila, WA, on August 11-12, 2000, at 8:00 a.m.

Assistance for Persons with Disabilities: Contact Debbie Nelson by July 25, 2000, TDD (360) 902-2207, or (360) 902-2226.

Submit Written Comments to: Evan Jacoby, 600 Capitol Way North, Olympia, WA 98501, fax (360) 902-2942, by August 10, 2000.

Date of Intended Adoption: August 11, 2000.

June 28, 2000

Evan Jacoby

Rules Coordinator

OTS-4111.4


AMENDATORY SECTION(Amending Order 98-206, filed 10/1/98, effective 11/1/98)

WAC 220-95-013
((1998)) 2000 Coastal salmon license buy-back program established -- Fund allocation -- Expiration.

(1) The ((National Marine Fisheries Service (NMFS) has designated the department as the administrating agency for distribution of Magnuson-Stevens Fisheries Conservation and Management Act (the act) funds)) legislature has allocated funds to buy back salmon licenses from commercial license holders ((who have been affected by reductions in salmon fishing caused by winter flooding in Washington state)). The department hereby designates ((the)) $923,400 of these funds ((distribution)) as the ((1998)) 2000 coastal salmon license buy-back program (program). The licenses eligible to participate in the program are salmon charter, salmon delivery, salmon troll, Grays Harbor salmon gill net, ((salmon purse seine)) and Willapa Harbor salmon ((reef)) gill net.

(2) The goal of the program is to provide economic relief to Washington commercial salmon fishers, and to reduce the number of Washington commercial salmon licenses. To accomplish this, the department is proposing a two-step process, first an open purchase of licenses for a fixed sum (Phase One), then, if any funds remain available, an income-based purchase plan (Phase Two).

(3) The department will allocate the (($4,670,000)) $923,400 available ((under Section 312(a))) for coastal salmon fishery licenses as follows:

(a) Program administration - (($123,000)) $23,400.

(b) Salmon charter - (($152,000)) $300,000.

(c) Salmon troll and salmon delivery - (($750,000)) $300,000.

(d) Willapa-Columbia River and Grays Harbor-Columbia River gill net - (($840,000)) $300,000.

(((e) Puget Sound salmon gill net - $2,040,000.

(f) Salmon purse seine - $660,000.

(g) Reef net - $105,000.))

Program administration funds that will not be used will be reallocated to license purchases.

(4) The program expires upon the distribution of all available funds.

[Statutory Authority: RCW 75.08.080. 98-20-052 (Order 98-206), 220-95-013, filed 10/1/98, effective 11/1/98; 95-07-012 (Order 95-20), 220-95-013, filed 3/3/95, effective 4/3/95.]


AMENDATORY SECTION(Amending Order 98-206, filed 10/1/98, effective 11/1/98)

WAC 220-95-018
Program eligibility.

Only persons meeting the following criteria are eligible to participate in the program.

(1) For phase one applicants, the person possessed or was eligible to possess in ((1997 one of the Washington state salmon fishing licenses issued pursuant to RCW 75.28.110 or 75.28.113)) 1999 a salmon troll or delivery license, a Grays Harbor salmon gill net license, a Willapa Harbor salmon gill net license or a salmon charter license issued pursuant to RCW 75.28.095, and is eligible to possess the same license in ((1998)) 2000.

(2) For phase two applicants:

(a) The person possessed or was eligible to possess in ((1997)) 1999 one of the Washington state salmon fishing licenses ((issued pursuant to RCW 75.28.110 or 75.28.113 or a salmon charter license issued pursuant to RCW 75.28.095 and is eligible to possess the same license in 1998)) listed in subsection (1) of this section, is eligible to possess the same license in 2000, and had income derived under the license from 1986 through 1991;

(b) The person had a salmon income loss greater than $0, computed as follows:

The salmon income loss under the program is the difference between the highest gross income derived from Washington state and offshore salmon fishing activity (including incidental catch provided that some salmon are shown on the fish receiving ticket documenting the catch) during any calendar year 1986 through 1991 (the base year), less the sum of the least amount of gross income derived from the same salmon fishing activity during any calendar year from 1992 through ((1997)) 1999 (the comparison year), multiplied by 2.5. For purposes of calculating income, the license holder must and may only use income from salmon fisheries in the coastal waters of Washington, the waters of Grays Harbor, Willapa Bay, and the Columbia River((, and waters of Puget Sound easterly of the Bonilla-Tatoosh Line)). Income that was used in calculating uninsured loss in the 1995 salmon disaster relief license buy-back program ((or)), salmon decline impact in the 1996 Washington salmon license buy-out program or salmon income loss in the 1998 salmon license buy-back program may not be used to calculate salmon income loss in the ((1998)) 2000 coastal salmon license buy-back program if the license offered in ((either)) the 1995 ((or)), 1996, or 1998 program was purchased and retired.

[Statutory Authority: RCW 75.08.080. 98-20-052 (Order 98-206), 220-95-018, filed 10/1/98, effective 11/1/98; 95-07-012 (Order 95-20), 220-95-018, filed 3/3/95, effective 4/3/95.]


AMENDATORY SECTION(Amending Order 98-206, filed 10/1/98, effective 11/1/98)

WAC 220-95-022
Program application.

(1) A person may make only one offer per license per phase under the program.

(2) Income used in the calculation of offers that are accepted may not be used in the calculation of any other offer.

(3) Phase one applications:

(a) Phase one applications must be submitted to the department's licensing division on a department offer form. A completed offer form must contain the following information:

The applicant's name, Social Security number, mailing address during the offer period, telephone number (if applicable), and the license type and license number being offered;

(b) The offer amounts for phase one are:

(i) Salmon troll and salmon delivery: $7,500.

(ii) Grays Harbor-Columbia and Willapa Bay-Columbia gill net: (($10,000)) $12,500.

(iii) ((Puget Sound gill net: $12,000.

(iv) Reef net: $15,000.

(v) Salmon purse seine: $30,000.

(vi))) Salmon charter: $1,000 per angler permit not to exceed $10,000, and including ((only and)) all angler permits ((that were)) currently on the license or all angler permits on the license as of ((August 1, 1998)) December 31, 1999, whichever is the lesser number.

(c) Phase one applications will be accepted ((October 26, 1998,)) through ((4:30 p.m., October 30, 1998)) 5:00 p.m., September 1, 2000. ((Any application received before October 26, 1998, will be treated as being received on October 26, 1998, for purposes of prioritizing the applications)). Any amounts remaining in the ((area and)) gear category from phase one will be used in phase two, unless the department deems that there are insufficient funds remaining to conduct a phase two plan.

(4) Phase two applications:

(a) Phase two applications must be made on department forms and must be received by the department's licensing division ((between November 16, 1998, and 4:30 p.m., November 30, 1998)) by 5:00 p.m., October 6, 2000.

(b) The licensee may offer the license for any amount up to the salmon income loss incurred under the license or $75,000, whichever is the lesser amount.

(c) An offer is not made unless a complete offer is received by the department. In order for an offer to be complete, the following must be received:

(i) A complete offer sheet, showing:

(A) The applicant's name, Social Security number, mailing address during the offer period and telephone number (if applicable);

(B) The license type and license number that is being offered;

(C) The offer amount;

(D) The base year income (1986-1991);

(E) The comparison year income (1992-((1997)) 1999); and

(F) The offer ratio, defined as the offer amount divided by the salmon income loss.

(ii) Salmon income supporting documents other than salmon charter are defined as official state fish receiving tickets documenting landings under a Washington license, or computer generated landing lists that have been certified by the department or the Pacific States Marine Fisheries Commission to be true and correct copies of Washington or Columbia River landings. All landings count in calculation of base and comparison year incomes.

(iii) For salmon charter license fishing activity, acceptable supporting documents are trip tickets identifying the species targeted, the number of anglers, and the date of the trip or, if such tickets are unavailable, the department will accept a letter of endorsement from a charterboat association or charterboat booking office indicating salmon fishing was a major component of earnings, and, if such a letter is provided, will review the total income of the applicant for the base and comparison years.

Note: Commercial salmon licensee applicants who submitted complete offers in the ((1996)) 1998 Washington salmon license buy-out program need not resubmit supporting documents for offers based on the same base and comparison years if all landings are from Washington state. Such persons must submit a new offer sheet to participate in the ((1998)) 2000 program, but the offer amount may differ from the ((1996)) 1998 offer amount, provided it does not exceed the ((1998)) 2000 program limits.

(iv) Records disclosure authorization that allows the department to receive copies of the applicant's Internal Revenue Service returns for the base and comparison years and to receive landing information from the Pacific States Marine Fisheries Commission.

(v) A signed statement certifying that all information provided is true and correct.

(((vi) A completed 1998 license application if the person has not already renewed for 1998 the license offered for sale. If the applicant is not reached on the ranked offers, the 1998 license fee will be required within 30 days of notification.))

[Statutory Authority: RCW 75.08.080. 98-20-052 (Order 98-206), 220-95-022, filed 10/1/98, effective 11/1/98; 95-07-012 (Order 95-20), 220-95-022, filed 3/3/95, effective 4/3/95.]


AMENDATORY SECTION(Amending Order 98-206, filed 10/1/98, effective 11/1/98)

WAC 220-95-032
Offer acceptance--Acknowledgment--Retirement of licenses.

(1) Phase one. The department will accept applications for phase one ((on a first come, first serve basis)) until 5:00 p.m. September 1, 2000. Applicants will not be prioritized on the basis of the date the application was received by the department. Phase one applicants may apply in person at the department licensing office in Olympia, by FAX to the license office at (360) 902-2925, or by mail to Fish and Wildlife Licensing, 600 Capitol Way North, Olympia, Washington 98501-1091. If there are insufficient funds ((are remaining)) to process all applications received ((on a given day)), a random drawing will be made ((of that day's applicants)) to determine which applications will be accepted to participate in the program.

(2) Phase two. The department will accept applications for phase two in rank order, beginning with the lowest offer ratio. In the event of a tie between identical offer ratios, the lowest offer amount will be given preference.

(3) The department will notify license holders that it has accepted a license offer by sending an acceptance and acknowledgment to the license holder by registered mail to the address provided on the offer form or offer sheet. The acknowledgment must be signed and returned to the department within ten days of the date of the mailing of the acceptance. Any acknowledgment received after the 10-day period is void and the acceptance is withdrawn.

(4) The department will tender the amount of the offer upon receipt of a valid acknowledgment. Upon tendering the offer amount, the department will retire the license and any angler permits that formed the basis of the offer amount.

(5) Persons who sell a license in phase two of the program cannot purchase or operate a commercial license listed in RCW 75.28.110 or 75.28.113 or a salmon charter license listed in RCW 75.28.095 for ten years, beginning January 1, ((1999)) 2001, except that persons may operate such a license if the license was owned or operated by that person in ((1997)) 1999.

[Statutory Authority: RCW 75.08.080. 98-20-052 (Order 98-206), 220-95-032, filed 10/1/98, effective 11/1/98; 95-07-012 (Order 95-20), 220-95-032, filed 3/3/95, effective 4/3/95.]

Washington State Code Reviser's Office