WSR 01-10-031

PERMANENT RULES

DEPARTMENT OF

FISH AND WILDLIFE

[ Order 01-66 -- Filed April 24, 2001, 4:16 p.m. ]

Date of Adoption: April 6, 2001.

Purpose: Amend commercial license reduction rules.

Citation of Existing Rules Affected by this Order: Amending WAC 220-95-013, 220-95-018, 220-95-022, 220-95-027, and 220-95-032.

Statutory Authority for Adoption: RCW 77.12.047.

Adopted under notice filed as WSR 01-05-120 on February 21, 2001.

Changes Other than Editing from Proposed to Adopted Version: Generally: Program name changed from "2001-2002 Puget Sound salmon license buy-back program" to "2001-2002 Puget Sound salmon license economic adjustment assistance program."

WAC 220-95-013, specific number of licenses to be purchased and total dollar amounts for licenses and administrative overhead deleted. Instead, percentage of dollars available for license purchase by category and administrative overhead in phase one are specified. Specific dollar amount to be paid for each license retained.

WAC 220-95-018, change persons "is eligible" to "are eligible" and after, "are eligible to possess the same license in 2001" add "are eligible to participate in the program."

WAC 220-95-027, purse seine ranking system changed from 10 point maximum to 15 point maximum, weighted 1 point for fall fisheries and 2 points for summer fisheries. Allowance upon death of licensee to have license treated as devisable for purposes of the program. Allowance made or participation by immediate family member to whom license was transferred. Appeal period extended from ten days to twenty days.

WAC 220-95-032, appeal period extended from ten days to twenty days.

WAC 220-95-034, not adopted.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 5, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.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.

April 24, 2001

Debbie Nelson

for Russ Cahill, Chair

Fish and Wildlife Commission

OTS-4687.5


AMENDATORY SECTION(Amending Order 00-148, filed 8/16/00, effective 9/16/00)

WAC 220-95-013   ((2000 Coastal)) 2001-2002 Puget Sound salmon license ((buy-back)) economic adjustment assistance program established -- Fund allocation -- Expiration.   (1) The legislature ((has)) and the federal government have allocated funds and anticipate allocating additional funds to buy back salmon licenses from commercial license holders. The department hereby designates (($923,400)) $34,884,689 of these funds as the ((2000 coastal)) 2001-2002 Puget Sound salmon license ((buy-back)) economic adjustment assistance program (program). The licenses eligible to participate in the program are ((salmon charter, salmon delivery, salmon troll, Grays Harbor)) purse seine, Puget Sound salmon gill net, and ((Willapa Harbor salmon gill)) reef 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)) three-step process, ((first an open)) all three steps of which are 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 (($923,400)) funds available for ((coastal salmon fishery licenses)) the program after deducting up to 3% for the costs of state program administration as follows:

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

(b) Salmon charter - $300,000.

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

(d) Willapa-Columbia River and Grays Harbor-Columbia River gill net - $300,000.)) (a) Spring 2001, Phase 1.

(i) Purse seine - 56.4% at a purchase price of $103,300 per license.

(ii) Gill net - 38.5% at a purchase price of $27,500 per license.

(iii) Reef net - 5.1% at a purchase price of $57,600 per license.

(b) Fall 2001, Phase 2.

(c) Spring 2002, Phase 3.

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 77.12.047. 00-17-105 (Order 00-148), 220-95-013, filed 8/16/00, effective 9/16/00. 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 00-148, filed 8/16/00, effective 9/16/00)

WAC 220-95-018   2001-2002 Puget Sound salmon license economic adjustment assistance program eligibility.   Only persons ((meeting the following criteria are eligible to participate in the program.

(1) For phase one applicants, the person)) who possessed or ((was)) were eligible to possess in ((1999)) 2000 a salmon ((troll or delivery license, a Grays Harbor salmon gill net license, a Willapa Harbor salmon gill net license or a salmon charter)) gill net -- Puget Sound license, a salmon purse seine license, or a salmon reef net license issued pursuant to RCW ((75.28.095)) 77.65.160, and ((is)) are eligible to possess the same license in ((2000)) 2001 are eligible to participate in the program.

(((2) For phase two applicants:

(a) The person possessed or was eligible to possess in 1999 one of the Washington state salmon fishing licenses 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 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. Income that was used in calculating uninsured loss in the 1995 salmon disaster relief license buy-back program, 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 2000 coastal salmon license buy-back program if the license offered in the 1995, 1996, or 1998 program was purchased and retired.))

[Statutory Authority: RCW 77.12.047. 00-17-105 (Order 00-148), 220-95-018, filed 8/16/00, effective 9/16/00. 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 00-148, filed 8/16/00, effective 9/16/00)

WAC 220-95-022   2001-2002 Puget Sound salmon license economic adjustment assistance 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: $12,500.

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

(((c) Phase one)) (3) Applications for all phases will be accepted through 5:00 p.m., ((September 1, 2000. Any amounts remaining in the 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 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 (1992-1999); 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 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 2000 program, but the offer amount may differ from the 1998 offer amount, provided it does not exceed the 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)) May 11, 2001. Only those applications received by this deadline will be eligible for the Phase 1 buyback. Applications received after this date will be ranked for Phase 2 or Phase 3 as detailed under the procedures for ranking offers.

[Statutory Authority: RCW 77.12.047. 00-17-105 (Order 00-148), 220-95-022, filed 8/16/00, effective 9/16/00. 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 220-95-027   Ranking ((of)) and acceptance of salmon purse seine license offers.   ((Phase two offers will be ranked by the offer ratio, beginning with the lowest ratio.)) (1) All salmon purse seine licenses will be ranked based upon participation in the Puget Sound summer and fall salmon fisheries.

(2) Purse seine rankings will be based upon a point system (0-15) for landings in the months of July and August (summer fisheries) and/or the months of September, October, and November (fall fisheries) between 1994 and 1998. One point will be assigned for a verified landing during the fall fisheries and two points will be assigned for a verified landing during the summer fisheries or a maximum of fifteen points possible.

(3) Points will be assigned only if the current license owner and program applicant also landed salmon on that same license some time during the 1994-1998 qualifying period except upon the death of the licensee, the license shall be treated as analogous to personal property for purposes of calculating and assigning points in the program. A license transferred to an immediate family member during or after the period 1994-1998, and who has continued with that license shall be able to count the points for that license and shall be qualified to participate in the program.

(4) Example: A current license owner makes a landing on the license in August and October of each year from 1994 to 1998. The owner is assigned the maximum fifteen points possible. If landings were only made in August 1994 and October 1998, then the owner would be assigned three points.

(5) Landings will be documented on official Washington state fish-receiving tickets or computer-generated landing lists certified by the department to be true and correct copies of Washington fish receiving tickets.

(6) In the event that two or more applicants have the same number of points, a random draw shall be conducted to rank the applicants among themselves before placing them into the overall rank order.

(7) The ranking will continue until all applicants have been rank-ordered. The order of ranking will apply to all phases of the program.

(8) Persons selected based upon the rank order and the available funds will be notified by the department that a license offer has been accepted by registered mail to the address provided on the offer form. The enclosed acknowledgment sent with the acceptance letter must be signed and returned to the department within twenty days of the department's mailing date. Any acknowledgment received after the twenty-day period is void and the acceptance will be withdrawn. Final rankings of all licenses will be available upon request to applicants when all appeals have been settled.

(9) Persons not selected in Phase 1 will be sent an acceptance by mail to the address provided on the offer form that their ranking will continue to apply for Phase 2 and Phase 3 when they should occur.

(10) Persons who apply after 5:00 p.m. on May 11, 2001, will be ranked at the bottom of the ranked list in the order that the applications were received. They are not eligible to participate in Phase 1. Applications received on a single day will be ranked by random draw.

(11) Persons who wish to appeal their ranking must appeal within twenty days of the mailing date of the registered letter of acceptance. Any appeal received after the twenty-day period is void and the ranking will stand. Appeals will be referred to an adjudicative proceeding for resolution.

(12) The department will tender the amount of the offer upon receipt of a valid acknowledgment and upon resolution of all appeals that affect the ranking of licenses to be purchased.

[Statutory Authority: RCW 75.08.080. 98-20-052 (Order 98-206), 220-95-027, filed 10/1/98, effective 11/1/98; 95-07-012 (Order 95-20), 220-95-027, filed 3/3/95, effective 4/3/95.]


AMENDATORY SECTION(Amending Order 00-148, filed 8/16/00, effective 9/16/00)

WAC 220-95-032   ((Offer)) Ranking and acceptance((--Acknowledgment--Retirement of licenses)) of salmon gill net -- Puget Sound and salmon reef net license offers.   (((1) Phase one. The department will accept applications for phase one 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 to process all applications received, a random drawing will be made 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, 2001, except that persons may operate such a license if the license was owned or operated by that person in 1999.)) (1) The purchase of Puget Sound gill net and reef net licenses will be based upon a random drawing of all applicants for a specific license type.

(2) The random drawing will continue until all applicants who offered to sell at the department's offered price have been rank-ordered. The order of ranking will apply to all phases of the buyback.

(3) Persons selected will be notified by the department that a license offer has been accepted by registered mail to the address provided on the offer form. The enclosed acknowledgment sent with the acceptance letter must be signed and returned to the department within twenty days of the department's mailing date. Any acknowledgment received after the twenty-day period is void and the acceptance will be withdrawn. Final rankings of all licenses will be available upon request to applicants when all appeals have been settled.

(4) Persons not selected in Phase 1 will be sent an acceptance by mail to the address provided on the offer form that their ranking will continue to apply for a Phase 2 and Phase 3 buyback when they should occur.

(5) Persons who apply after 5:00 p.m. on May 11, 2001, will be ranked at the bottom of the ranked list in the order that the applications were received. Applications received on a single day will be ranked by random draw.

(6) Persons who wish to appeal their ranking must appeal within twenty days of the mailing date of the registered letter of acceptance. Any appeal received after the twenty-day period is void and the ranking will stand. Appeals will be referred to an adjudicative proceeding resolution.

(7) The department will tender the amount of the offer upon receipt of a valid acknowledgment and upon resolution of all appeals that affect the ranking of licenses to be purchased for that respective gear group.

[Statutory Authority: RCW 77.12.047. 00-17-105 (Order 00-148), 220-95-032, filed 8/16/00, effective 9/16/00. 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