03/06/2000 01:37 PM Senate CRA

         SB 240-CHARGE FOR COMMUNITY DEVELOPMENT QUOTA                                                                          
                                                                                                                                
MR. JEFF BUSH, Deputy Commissioner, Department of Community &                                                                   
Economic Development, stated the Community Development Quota (CDQ)                                                              
program was developed in 1991 by the federal government.  CDQ                                                                   
allocates a percentage of the ground fish fisheries to Western                                                                  
Alaska and Bering Sea communities that are located within 50                                                                    
nautical miles of the coast.  The communities are organized into                                                                
six CDQ non-profit corporations.  The State has been granted                                                                    
authority to oversee the CDQ program.  The CDQ program generates                                                                
royalties that are granted to the communities, approximately $20-30                                                             
million annually.                                                                                                               
                                                                                                                                
The CDQ program has been funded with $250,000 annually of general                                                               
funds.  SB 240 proposes to stop using general funds and create a                                                                
fee structure to make the CDQ self sufficient.                                                                                  
                                                                                                                                
SENATOR PHILLIPS asked where the northern border lies for the CDQ                                                               
program.                                                                                                                        
                                                                                                                                
MR. BUSH replied at the northern end of Norton Sound.                                                                           
                                                                                                                                
SENATOR HOFFMAN stated he had a proposed amendment.  The amendment                                                              
will give new communities coming into the CDQ program a two year                                                                
grace period to develop and not pay taxes.                                                                                      
                                                                                                                                
TAPE 00-03, SIDE B                                                                                                              
                                                                                                                                
Number 585                                                                                                                      
                                                                                                                                
SENATOR HOFFMAN moved Amendment number 1.  Without objection,                                                                   
Amendment number 1 was adopted.                                                                                                 
                                                                                                                                
MR. DICK TREMAINE, Central Bering Sea Fisherman's                                                                               
Association(CBSFA), stated support for SB 240.  CBSFA is the                                                                    
smallest CDQ group in the State, it has the least amount of                                                                     
communities and revenue strength.  The State provides a service to                                                              
the group that is mandated by the federal government.                                                                           
                                                                                                                                
MR. HAROLD SAMUELSON, President of the Bristol Bay Economic                                                                     
Corporation, stated support for SB 240 without the amendment.                                                                   
Bristol Bay is just building its infra-structure and it has a                                                                   
multi-faceted program.                                                                                                          
                                                                                                                                
Number 520                                                                                                                      
                                                                                                                                
MR. LARRY COTTER, CEO of Aleutian/Pribilof Island Community                                                                     
Development Association (APICDA), stated support for SB 240.  He                                                                
commented that extending the borders beyond the Bering Sea is a                                                                 
complicated issue.                                                                                                              
                                                                                                                                
SENATOR HOFFMAN moved CSSB 240 (CRA) from committee with individual                                                             
recommendations.  Without objection, the motion carried.