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.