2000-02-02                     Senate Journal                      Page 2163
SB 240                                                                       
SENATE BILL NO. 240 BY THE SENATE RULES COMMITTEE                              
BY REQUEST OF THE GOVERNOR, entitled:                                          
                                                                               
An Act relating to the establishment of and                                   
accounting for an administrative cost charge for the                           
states role in the community development quota                                 
program and to the appropriation of receipts from                              
the charge; and providing for an effective date.                               
                                                                               
was read the first time and referred to the Community and Regional             
Affairs, Labor and Commerce and Finance Committees.                            
                                                                               
Fiscal note published today from Department of Community and                   
Economic Development.                                                          
                                                                               
Governors transmittal letter dated February 1:                                 
                                                                               
Dear President Pearce:                                                         
                                                                               
The community development quota (CDQ) program has created jobs                 
and expanded economic opportunity in western Alaska. It is essential           
to this region of the state that we ensure the continuance of this             
federal fisheries resource program. This bill I transmit today meets           
that challenge by partnering with the CDQ participants to cover the            
state's administrative cost of the program.                                    
                                                                               
                                                                               

2000-02-02                     Senate Journal                      Page 2164
SB 240                                                                       
Under this bill, community development groups that participate in the          
CDQ program will pay assessment fees to the state. The proposed                
fee structure has two components. First, each group will pay a                 
standard, flat amount that will total half the state's administrative          
costs. Second, each group will pay a variable share of the remaining           
administrative costs based upon the value of that group's fisheries            
quota allocation.                                                              
                                                                               
The Department of Community and Economic Development would                     
administer the cost charge, which is added to the statutory list of            
program receipts subject to separate accounting procedures.                    
                                                                               
Participants of the CDQ program recognize their future success                 
hinges on the ability of the state to continue to administer the               
program. To that end, the groups proposed the funding plan                     
forwarded in this bill and are ready to give it their full support. To         
protect this vital program and improve the efficiency and operation            
of the state's role in it, I urge your prompt and favorable action on          
this measure.                                                                  
                                                                               
					Sincerely,                                                                
					/s/                                                                       
					Tony Knowles                                                              
					Governor