04/11/2000 09:05 AM Senate FIN

CS FOR SENATE BILL NO. 240(L&C)                                                                                                 
"An Act relating to the establishment of and                                                                                    
accounting for an administrative cost charge for the                                                                            
state's role in the community development quota                                                                                 
program and to the appropriation of receipts from the                                                                           
charge; and providing for an effective date."                                                                                   
                                                                                                                                
                                                                                                                                
GREG CASHEN, Community Development Quota (CDQ) Specialist,                                                                      
Community Development Quota, Department of Community and                                                                        
Economic Development stated that this legislation allowed                                                                       
CDQ groups that participate in this program to pay                                                                              
assessment fees to the state.  He continued that the                                                                            
proposed fee schedule has two components, the first being a                                                                     
standard flat amount paid by each group totaling half the                                                                       
state's administrative costs.  He noted that the other                                                                          
half, also paid by this group, would be a variable portion                                                                      
of the administrative costs based on the value of this                                                                          
group's fishery quota allocation.  He stated that the                                                                           
Department of Community and Economic Development would                                                                          
administer the cost charge added to the statutory list of                                                                       
program receipts subject to separate accounting procedures.                                                                     
He noted that each CDQ group supports this legislation.  He                                                                     
outlined the differences of this version versus the                                                                             
companion HB 334.  He added that the exemption in the house                                                                     
bill would allow for new CDQ groups into the program                                                                            
without paying fees for up to two years.  He cited that                                                                         
this exemption was taken out of the House version,                                                                              
including a $400,000 cap that was deleted as well.                                                                              
                                                                                                                                
Co-Chair Parnell referred to the exemption mentioned by Mr.                                                                     
Cashen and wondered if it was the one noted on page 3,                                                                          
lines 10 - 13.  He read this clause and wondered what the                                                                       
policy reason was behind leaving this exemption in place.                                                                       
                                                                                                                                
Mr. Cashen responded that a Northern Alaska constituency                                                                        
put this exemption forth.                                                                                                       
                                                                                                                                
Senator Adams added that this group was out of Kotzebue,                                                                        
which is trying to start a new CDQ group, which explained                                                                       
this exemption language.                                                                                                        
                                                                                                                                
Co-Chair Parnell asked if this group needed this exemption                                                                      
from an economic perspective in order to help with start up                                                                     
costs.                                                                                                                          
                                                                                                                                
Senator Adams responded that this group was having a hard                                                                       
time getting started and a federal initiative would be                                                                          
needed in order to change the existing bond situation.                                                                          
                                                                                                                                
Co-Chair Torgerson asked how much money was involved with                                                                       
this exemption.                                                                                                                 
                                                                                                                                
Mr. Cashen responded that this standard portion would total                                                                     
$125,000 divided between six CDQ groups.                                                                                        
                                                                                                                                
Co-Chair Torgerson noted that this bill would be set aside,                                                                     
and added that the companion house bill had been amended                                                                        
into another bill on the House floor.  He would hold this                                                                       
version in Committee until the House bill catches up to SB
 in the referral system.  SB 240 was HELD IN COMMITTEE.