BOLGER, Justice.
The Lieutenant Governor declined to certify a proposed ballot initiative that would ban commercial set net fishing in nonsubsistence areas, reasoning that the initiative was a constitutionally prohibited appropriation of public assets. But the superior court approved the initiative, concluding that set netters were not a distinct commercial user group and that the legislature and Board of Fisheries would retain discretion to allocate the salmon stock to other commercial fisheries. In this appeal, we conclude that set netters are a distinct commercial user group that deserves recognition in the context of the constitutional prohibition on appropriations. We therefore reverse the superior court's judgment because this proposed ballot initiative would completely appropriate salmon away from set netters and prohibit the legislature from allocating any salmon to that user group.
The directors of Alaska Fisheries Conservation Alliance, Inc. (the sponsors), a non-profit organization with the stated goal of "protect[ing] fish species that are threatened by over-fishing, bycatch[,] or other dangers," sponsored a proposed statewide ballot initiative, 13PCAF, to prohibit the use of commercial set nets in nonsubsistence areas.
The Department of Law reviewed the initiative application and concluded that 13PCAF met three of the four statutory requirements for certification: the proposed initiative was confined to a single subject, the subject was expressed in the title, and its enacting clause contained the proper introductory phrase.
Relying on the Department of Law's analysis, the Lieutenant Governor declined to certify 13PCAF.
After the Lieutenant Governor declined to certify the initiative, the sponsors filed a complaint for declaratory judgment and injunctive relief, asking the superior court to order the Lieutenant Governor to certify 13PCAF. The sponsors argued that the proposed initiative would not appropriate state assets but was instead an attempt to "regulat[e] the methods and means for the take of wildlife" that "leaves all allocation decisions to the discretion of the legislature and the Board of Fish[eries]."
The sponsors and the Lieutenant Governor filed cross-motions for summary judgment. The sponsors argued that "[v]oter initiatives must be construed broadly so as to preserve them whenever possible," that Alaskans have historically regulated the methods and means for taking fish and wildlife by initiative, and that 13PCAF would "merely regulate[] the use of one gear type" while placing no restrictions on the Board of Fisheries' ability to allocate fish between commercial, sport, guided sport, and personal uses. In his motion for summary judgment, the Lieutenant Governor contended that 13PCAF effected an appropriation because it was "designed to appeal to the self-interests of a majority user group—sport and personal use fishers—by effectively transferring salmon from a much smaller minority of commercial users." The Lieutenant Governor also argued that 13PCAF would "significantly reduce[] the legislature's and Board of Fisheries' control of and discretion over allocation decisions" by preventing them from allocating salmon stock to commercial set netters.
The superior court granted summary judgment in favor of the sponsors, concluding that 13PCAF would not effect a prohibited appropriation. Rejecting the Lieutenant Governor's claims, the court concluded that 13PCAF was not a give-away program because it "would not target any particular group to receive salmon or result in the voters voting themselves salmon." And the court concluded that 13PCAF did not narrow the legislature's and Board of Fisheries' range of freedom in making allocation decisions because the Board "would be free to continue to allocate the salmon presently harvested by commercial set net fishers to other commercial fisheries . . . [or] authorize new gear types for commercial fishermen." The court therefore concluded that 13PCAF, if passed, would be a permissible regulatory measure, and the court ordered the Lieutenant Governor to certify the proposed initiative.
The Lieutenant Governor appeals. Resources for All Alaskans, Inc., an organization representing the interests of commercial fishers, filed an amicus brief supporting the Lieutenant Governor's position and additionally arguing that 13PCAF would enact impermissible local or special legislation.
"We review a superior court's decision on summary judgment de novo, drawing all inferences in favor of, and viewing the facts in the record in the light most favorable to, the non-moving party."
The Lieutenant Governor argues that the superior court erred by ordering him to certify 13PCAF. He renews his claim that the proposed initiative would effect a prohibited appropriation.
Article XI, section 1 of the Alaska Constitution provides that "[t]he people may propose and enact laws by the initiative." This initiative power is not limitless, however, and article XI, section 7 expressly restricts the use of the initiative. One such restriction is that "[t]he initiative shall not be used to . . . make or repeal appropriations."
In the initiative context, we have construed the term "appropriation" broadly, looking to the intentions of the delegates at the Alaska Constitutional Convention for interpretive guidance.
With these considerations in mind, "[w]e employ a two-part inquiry to determine whether an initiative makes an appropriation of state assets. . . . First we must determine `whether the initiative deals with a public asset.' Second, if the initiative deals with a public asset, then we must determine `whether the initiative would appropriate that asset.'"
The sponsors argue that in City of Fairbanks v. Fairbanks Convention & Visitors Bureau, we defined "appropriation" in the article XI, section 7 context to mean the "set[ting] aside [of] a certain specified amount of money or property for a specific purpose or object in such a manner that is executable, mandatory, and reasonably definite with no further legislative action."
The City of Fairbanks discussion related to defining appropriations in the context of an initiative seeking to repeal a municipal code section that "arguably" constituted an appropriation of tax revenues.
The parties agree that fish are a state asset that may be the subject of appropriations. As a result, the primary issue before us is whether a ban on set net fishing constitutes an appropriation of salmon away from set netters and towards other fisheries.
The Lieutenant Governor argues that Pullen governs this determination. Pullen concerned an initiative providing, in relevant part, that
We held that "the state's interest in salmon migrating in state and inland waters is sufficiently strong to warrant characterizing such salmon as assets of the state which may not be appropriated by initiative."
The Lieutenant Governor argues that, similar to the initiative in Pullen, 13PCAF would be a give-away program, allocating fish away from set netters towards all other fishers. And he contends that 13PCAF would narrow the legislature's and Board of Fisheries' range of freedom in making allocation decisions by effectively prohibiting them from allocating salmon stock to set netters.
The superior court concluded that "13PCAF [would] not result in a give-away program." The court reasoned that "commercial set netters are not a `user group' [under AS 16.05.251(e)] any more . . . than sport fishers using fly rods are a distinct user group from those using spinning rods." Relying on this reasoning, the court applied our holding in Pebble
The Lieutenant Governor argues that the court's application of Pebble was flawed because the court's reliance on AS 16.05.251(e)'s broad categories was misplaced. Specifically, he claims that it was error to conclude that the relevant user group was "commercial fishers" as a whole instead of the subset of commercial fishers who use set nets. He is correct. Although AS 16.05.251(e) grants the Board of Fisheries the authority to "allocate fishery resources among personal use, sport, guided sport, and commercial fisheries," the Board is not precluded from making intragroup allocations within those general categories.
Indeed, the statute's definition of "fishery" demonstrates that intragroup allocations are more than appropriate: AS 16.05.940(17) provides that "`fishery' means a specific administrative area in which a specific fishery resource is taken with a specific type of gear; however, the Board of Fisheries may designate a fishery to include more than one specific. . . type of gear."
The sponsors respond that "[b]ecause the Board of Fisheries is free to define a `fishery' in a more expansive manner than `commercial set netters,' it is not accurate to say that a regulation prohibiting commercial set nets would `eliminate a fishery.'" This argument is unpersuasive because, regardless of the Board of Fisheries' freedom to do otherwise, the Board does differentiate between "set gillnet fisheries" and "drift gillnet fisheries."
Indeed, we have previously concluded that AS 16.05.251(e) governs allocations among different commercial fisheries as well as between the more general categories of personal use, sport, guided sport, and commercial fisheries. In Peninsula Marketing Ass'n v. State, we held that
And in Alaska Fish Spotters Ass'n v. State, Department of Fish & Game we noted that "[i]f the Board . . . allocate[s] the resource between competing subgroups of commercial uses, it must comply with AS 16.05.251(e)."
The Lieutenant Governor argues that 13PCAF is no less a give-away program than the challenged initiative in Pullen. There we concluded that the initiative in question was a give-away program because it was "designed to appeal to the self-interests of sport, personal[,] and subsistence fishers, in that [those] groups [were] specifically targeted to receive state assets in the circumstance of harvestable shortages."
The sponsors argue that the comparison to Pullen is faulty for two reasons. They first argue that 13PCAF would merely regulate a method of commercial fishing, not allocate salmon stock among fisheries. Second, they argue that unlike in Pullen, where it was clear which groups would benefit from the initiative, it is unknown which fisheries would benefit if 13PCAF were enacted.
The sponsors claim that 13PCAF cannot effect an appropriation because it was drafted as a regulatory measure and does not explicitly allocate salmon stock. They rely on our holding in Pebble that the regulation of public assets is a valid subject for initiative, but they largely ignore the significant—and relevant—caveat in that case's holding. Specifically, Pebble held that "the prohibition against initiatives that appropriate public assets does not extend to prohibit initiatives that regulate public assets, so long as the regulations do not result in the allocation of an asset entirely to one group at the expense of another."
The sponsors appear to claim that this caveat does not apply here because 13PCAF would not allocate the asset entirely to one group, but this is an overly narrow and literal reading of Pebble's holding. Pebble
Relatedly, the sponsors argue that it is not entirely clear which groups will benefit from 13PCAF, a factor that distinguishes it from the initiative in Pullen. This argument is unconvincing. As previously noted, 13PCAF would result in the allocation of salmon stock away from commercial set netters to some combination of all other fisheries in nonsubsistence areas where set net fishing is currently permitted.
For these reasons, we conclude that 13PCAF is a give-away program and therefore a prohibited appropriation by initiative.
The superior court concluded that 13PCAF did not narrow the legislature's and Board of Fisheries' range of freedom in making allocation decisions because the proposed initiative "does not create an express preference" for any of the general classes of fisheries listed in AS 16.05.251(e). "13PCAF does not take fish from commercial users and allocate those fish to sport users . . . [or] change the Board of Fisheries' role in the allocation among commercial, sport, and personal use fisheries. . . ." But this analysis errs for the reason discussed above: commercial set netters are a discrete user group, so 13PCAF's ban on set net fishing clearly narrows the legislature's and Board of Fisheries' range of freedom in making allocation decisions. If 13PCAF were enacted, then neither the legislature nor the Board would be able to allocate any salmon stock to this significant, existing user group.
The sponsors note that Alaska has a long history of using the initiative to enact or reject regulations for managing the taking of fish and wildlife. They point out that on the same day Alaskans voted to enact the Alaska Constitution, they also voted to enact Ordinance 3, which provided that "the use of fish
Ordinance 3 was approved before the Alaska Constitution went into effect and was thus not governed by the constitutional prohibition against appropriating by initiative.
The sponsors highlight our statement in Brooks that "the delegates' decision to submit Ordinance 3 . . . for voter ratification along with the rest of the constitution evidences the delegates' and voters' understanding that wildlife management issues would be subject to direct democracy."
Regarding the subsequent initiatives the sponsors cite, the mere fact that these measures appeared on the ballot does not demonstrate their constitutionality under the appropriations clause of article XI, section 7. Two of the five cited initiatives were considered before we held that fish were a public asset that may not be appropriated by initiative.
Moreover, none of these initiatives targeted allocations to or away from a class as discrete as commercial set netters are. Under the Limited Entry Act and its implementing regulations,
This case is governed by the holdings of Pebble and Pullen, not by the existence of ballot measures that were never challenged as unconstitutional appropriations. Under our precedent, 13PCAF would effect an appropriation, and is constitutionally prohibited.
13PCAF triggers both of the delegates' core concerns underlying the prohibition on appropriations by initiative: the initiative would result in a give-away program of salmon stock from set netters to other types of fishers, and it would significantly narrow the legislature's and Board of Fisheries' range of freedom to make allocation decisions. 13PCAF would therefore effect a prohibited appropriation via initiative. We accordingly REVERSE the superior court's order requiring the Lieutenant Governor to certify the initiative.
FABE, Justice, not participating.