Opinion ID: 1405962
Heading Depth: 2
Heading Rank: 1

Heading: did the cfec act properly in establishing the maximum number of permits for the fishery by adopting a regulation without preparing a decisional document?

Text: Alaska Statute 16.43.240(b) provides: When the commission finds that a fishery not designated as a distressed fishery under AS 16.43.240 has reached levels of participation which require the limitation of entry in order to achieve the purposes of this chapter, the commission shall establish the maximum number of entry permits for that fishery. Appellants, Johns, Woods, and Lynch (hereinafter Johns) argue that the CFEC's action establishing the maximum number of permits must be vacated because the action was not accompanied by a decisional document. The trial court held that the CFEC's action in establishing the maximum number by regulation was a quasi-legislative action in which the commission is granted broad discretion. Such actions, the court stated, will not be disturbed if they are adopted in accord with the Administrative Procedure Act (APA), are reasonable, are within the scope of the agency's authority, and are reasonably necessary to effect the agency's purposes. Because a written decisional document is not required under the APA for quasi-legislative actions, the court found the CFEC's actions were proper and granted summary judgment to the state on this issue. We have noted that the CFEC has been given broad discretion in promulgating regulations. See Kalmakoff v. State, Commercial Fisheries Entry Comm'n, 693 P.2d 844, 851 (Alaska 1985). To assess the validity of an administrative regulation, we determine whether the legislature delegated rule-making authority to the [agency], whether the [agency] followed the Administrative Procedure Act in promulgating the regulation, and whether the regulation is consistent with and reasonably necessary to implement the statutes authorizing its adoption. Chevron U.S.A. Inc. v. LeResche, 663 P.2d 923, 927 (Alaska 1983) citing Kelly v. Zamarello, 486 P.2d 906, 911 (Alaska 1971). See also Kenai Peninsula Fishermen's Co-op Ass'n v. State, 628 P.2d 897 (Alaska 1981). In addition, we review whether the regulation is reasonable and not arbitrary. Kenai, 628 P.2d at 906; Kelly, 486 P.2d at 911.
Initially, we must determine if the CFEC was required by the Limited Entry Act to make a formal finding in establishing the maximum number of permits for the fishery, rather than promulgate a regulation, the procedure the commission adopted. While the CFEC admits that a finding is required on the need to limit a fishery, it argues that the statute is unclear as to the procedure to be followed in establishing the maximum number of permits. Johns, on the other hand, argues that the legislature intended the CFEC to reach a finding as to the maximum number simultaneously with its decision to limit the fishery and that therefore a decisional document as to the maximum number was required. Our review of the legislative history cited by Johns and the statute itself does not make clear what procedure the legislature had in mind for establishing the maximum number of permits. Alaska Statute 16.43.110 provides, however, that the commission may adopt regulations, consistent with law, necessary or proper in the exercise of its powers or for the performance of its duties under this chapter. It was, therefore, proper for the CFEC to have used its power to adopt regulations to establish the maximum number of permits for the fishery.
To determine if a particular procedure is required when an agency promulgates a regulation, we consult the Administrative Procedure Act. Chevron U.S.A., 663 P.2d at 927; AS 44.62.010 et seq. Johns admits that the APA does not specifically require a decisional statement when an agency promulgates a regulation, but nonetheless argues that we should impose such a rule. We have adopted a rule that agency decisions, in exercise of their adjudicative powers, must be accompanied by written findings and a decisional document. Phillips v. Houston Contracting, Inc., 732 P.2d 544, 547 (Alaska 1987); City of Nome v. Catholic Bishop of N. Alaska, 707 P.2d 870, 875 (Alaska 1985); Ship Creek Hyd. Syn. v. State Dep't of Transp. and Pub. Facilities, 685 P.2d 715, 718 (Alaska 1984); Kenai Peninsula Borough v. Ryherd, 628 P.2d 557 (Alaska 1981). We have suggested but not imposed this requirement in a non-adjudicative context. Southeast Alaska Conservation Council, Inc. v. State, 665 P.2d 544 (Alaska 1983) (timber sale). Although a good case can be made for a decisional document requirement when a regulation is passed or amended, [2] the comprehensiveness and detail of the Administrative Procedure Act on this subject tends to indicate that judicial imposition of such a requirement would be counterindicated. [3] However, when an agency promulgates a regulation, the record should at least explain the reasons for the agency's action. [4] This is necessary so that we can meaningfully fulfill our statutory and constitutional review functions. Where the Administrative Procedure Act is followed, such a record is likely to exist  especially if the agency position is expressed at the hearing required under AS 44.62.210(a). In this case, we find that the extensive agency record is sufficient for us to determine the basis for the CFEC's action. Because a decisional statement is not required when an agency issues a regulation, and because the record in this case adequately explains the reasons for the CFEC's actions, the trial court did not err in concluding that the CFEC had acted properly. [5]