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Commercial Fishing License Limitation in the State of Alaska: A Controversial System of Grandfather Rights

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Title Commercial Fishing License Limitation in the State of Alaska: A Controversial System of Grandfather Rights
Names Twomley, Bruce (creator)
Date Issued 2001 (iso8601)
Abstract After two failed attempts to establish limited entry in its salmon fisheries,iii pursuant to legislation adopted by the Alaska
Legislature in 1973, Alaska placed its primary salmon fisheries under limitation by 1975. Alaska persisted in seeking limited
entry largely in response to declining salmon resources coupled with increasing levels of participation. Alaska’s system
limited the number of gear licenses to a maximum number which must be equal to or greater than the highest number of units
of gear present in a particular fishery during the four years prior to limitation. With all prior participants eligible to apply, the
number of eligible applicants was generally far greater than the maximum number. Under an elaborate system of grandfather
rights, permanent entry permits have been awarded to those fishers who demonstrated the most dependence upon a particular
fishery, as measured by their past participation and economic dependence. Eligible fishers may continue to fish until there is
a final determination on their applications. Permanent entry permits are, for the most part, freely transferable and inheritable,
subject to some restriction (for example, permits may neither be leased nor pledged as security for a debt).
Salmon fishers helped design Alaska’s program for Alaska’s salmon fleet, which consisted largely of individual fishers who
owned and operated their own vessels. The program achieved a moratorium on new entrants and a gradual reduction of units
of gear toward the maximum number as individual claims to permits were resolved.
Alaska’s license limitation program contributes to limiting fishing capacity, because it is coupled with other limitations on
effort such as vessel size and gear restriction. Taken together, Alaska’s license limitation and other management tools allow
managers to calculate with some assurance the power of the fishing fleets they seek to control. Although the program is
neutral as to residency, the percentages of permits held by Alaskans have tended to remain stable from the time of initial
limitation.
Alaska’s program has always been controversial. The allocation system is complicated, expensive, and requires years to
complete. While the program has survived all major legal challenges, courts have modified the program. Although the
percentage of permits held by Alaskan residents has remained stable, in some areas, the number of permits held by local,
rural Alaska residents has declined. Additionally, the high cost of permits in valuable fisheries has made initial entry into
some fisheries difficult.
Alaska’s license limitation program is most useful in fisheries that resemble Alaska salmon fisheries. The more a fishery
departs from the Alaska salmon fishery model (as a fleet of individual owner-operators), the less likely it is that Alaska’s
form of license limitation would be of value.
Genre Research Paper
Topic Fisheries Economics
Identifier Twomley, R. Commercial Fishing License Limitation in the State of Alaska: A Controversial System of Grandfather Rights. In: Microbehavior and Macroresults:Proceedings of the Tenth Biennial Conference of the International Institute ofFisheries Economics and Trade, July 10-14, 2000, Corvallis, Oregon, USA.Compiled by Richard S. Johnston and Ann L. Shriver. InternationalInstitute of Fisheries Economics and Trade (IIFET), Corvallis, 2001.

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