Date of Adoption: August 12, 2000.

Purpose: Amend commercial fishing rules.

Citation of Existing Rules Affected by this Order: Amending WAC 220-95-013, 220-95-018, 220-95-022, and 220-95-032.

Statutory Authority for Adoption: RCW 77.12.047.

Adopted under notice filed as WSR 00-14-021 on June 28, 2000.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 4, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0. Effective Date of Rule: Thirty-one days after filing.

August 15, 2000

Russell W. Cahill

for Kelly White, Chairman

Fish and Wildlife Commission

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.]

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.]

(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.]

(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.]

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