Legislature(1999 - 2000)
03/06/2000 01:37 PM Senate CRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
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.
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