03/12/1993 08:30 AM House FSH

  HCR 9:  COMMUNITY DEVELOPMENT FISHING QUOTAS                                 
                                                                               
  BOB HERRON, LEGISLATIVE AIDE TO REPRESENTATIVE LYMAN                         
  HOFFMAN, PRIME SPONSOR of HCR 9, testified that                              
  Representative Hoffman introduced the resolution to                          
  encourage the Hickel administration to elevate the state's                   
  role in the Community Development Quota (CDQ) program, which                 
  he called the most extensive economic development effort                     
  ever to occur in the poorest regions of the state of Alaska.                 
                                                                               
                                                                               
  MR. HERRON said it was essential that the state play an                      
  important role in this program in its first two years in                     
  order to ensure its fulfillment.  The Governor has a                         
  significant responsibility in this, according to MR. HERRON.                 
  What the CDQ program needs, he said, is strong leadership                    
  and coordinated support.                                                     
                                                                               
  MR. HERRON also said Representative Hoffman believes there                   
  is a need for a review of past fisheries development policy                  
  proposals in order to draft a comprehensive fisheries                        
  development policy that includes the CDQ program.  He                        
  described HCR 9 as formal recognition of the CDQ program                     
  which also asks the Governor to fully commit the                             
  administration to its success.                                               
                                                                               
  MR. HERRON also noted that Representative Hoffman supports                   
  the recommended Committee Substitute (CSHCR 9 (FSH)).                        
                                                                               
  KARL OHLS, FISHERIES DEVELOPMENT SPECIALIST FOR THE BERING                   
  SEA FISHERMEN'S ASSOCIATION, which represents commercial                     
  fishermen in western Alaska, spoke in support of the CDQ                     
  program and HCR 9.  He commented that his primary job was to                 
  work with the CDQ groups in developing group positions.  He                  
  said the groups had a concern that there be a designated                     
  state person in charge of the program, and that HCR 9                        
  addressed that concern.  He also said Number 4 in the                        
  Resolved sections of the resolution was very important,                      
  adding that since CDQs were probably one of the most                         
  significant fisheries development programs ever developed in                 
  the state, it would be a shame for pollock CDQs to be the                    
  end of it.                                                                   
  MR. OHLS asked that the pollock CDQ be looked at as the                      
  model and cornerstone for an entire fisheries development                    
  program for the state of Alaska.                                             
                                                                               
  CHAIRMAN MOSES acknowledged the arrival of Representative                    
  Irene Nicholia.                                                              
                                                                               
  BRUCE WEYHRAUCH, REPRESENTING THE ALASKA CRAB COALITION,                     
  questioned the CDQ program itself.  First, is it appropriate                 
  or necessary to expand CDQs to the rest of the state?  Have                  
  other regions expressed the same interest as the Bering Sea                  
  communities?  Is it necessary to expand CDQs to other                        
  fisheries of the state?  He likened the CDQ program to a                     
  form of federal community block grant program, and                           
  questioned how this federal involvement would impact state                   
  involvement.  He also expressed concerns over how the funds                  
  from this program would be used, and thought the legislature                 
  should consider putting a bound on how these funds are spent                 
  so they don't flow out of state.                                             
                                                                               
  MR. WEYHRAUCH also asked if Alaska's CDQ program would                       
  affect national debates on fisheries issues in Congress.  He                 
  commented that he would submit a copy of a letter from the                   
  National Fisheries Institute expressing opposition to CDQs                   
  and how they related to the Magnuson Act, Marine Mammal                      
  Protection Act, and the Endangered Species Act.  Opposition                  
  to the CDQ program exists nationally, according to MR.                       
  WEYHRAUCH, and will likely build.  Any expansion of the                      
  program should be done carefully, in consultation with the                   
  Congressional delegation, he said.                                           
                                                                               
  MR. WEYHRAUCH suggested there was a danger that the state                    
  may face losing its ability to manage its own fisheries                      
  locally, which would thwart the intent of HCR 9.                             
  HCR 9:  COMMUNITY DEVELOPMENT FISHING QUOTAS                                 
                                                                               
  JOHN WALSH, DEPUTY DIRECTOR OF THE RURAL DEVELOPMENT                         
  DIVISION, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS,                      
  spoke in favor of HCR 9 and described his department's                       
  progress on the CDQ program.  He indicated he had some                       
  recommended changes to the proposed committee substitute.                    
                                                                               
  MR. WALSH also announced that the Governor has signed the                    
  final state regulations for the CDQ program.  He described                   
  additional progress, including the fact that the CDQ groups                  
  were actively fishing and that the Governor was proposing a                  
  budget amendment for additional staff for the program.                       
                                                                               
  MR. WALSH also addressed some of the concerns brought up by                  
  Mr. Weyhrauch.  He indicated the CDQ program was not really                  
  impacting the explosion in fishing activity that was already                 
  occurring in the North Pacific, and that CDQs were merely                    
  bringing to western Alaska communities some of the benefits                  
  of that growth.  Once the national interests are aware of                    
  that, he believes they will increase their support.                          
                                                                               
  MR. WALSH also corrected Mr. Weyhrauch and pointed out that                  
  under federal regulations, CDQ groups can only spend their                   
  funds on fisheries development.                                              
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  CHAIRMAN CARL MOSES adjourned the meeting at 9:07 a.m.