| Community
Quota Entities (CQEs) are non-profit entities
incorporated under the laws of the State, or tribal regulations
in the case of one of the communities, to represent eligible
communities. The CQEs obtain Quota Shares (QS) by transfer
and hold the QS and lease the resulting annual IFQ to individual
community residents. Unless
otherwise specified, the restrictions that apply to any
current QS holder apply to a CQE. CQEs, however,
are subject to additional
regulatory requirements beyond those applying to existing
QS holders. A CQE could represent
more than one eligible community. However,
no community can be represented by more than one CQE. |
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This provision minimizes
confusion and ensures effective and efficient administration of the
program. To be considered eligible
to hold QS on behalf of a community, a CQE must have been incorporated
after April 10, 2002, the date of final Council action. The Council stated
that the purpose of designating a new non-profit entity to hold QS is
that existing administrative structures such as municipal governments,
tribal councils, or other community organizations may be focused on other
priorities. The Council also recommended that a non-profit organization
provide proof of support from the community that it is seeking to represent.
This support must be demonstrated in the application by a non-profit
organization to become eligible as a CQE. The specific mechanism for
the community to demonstrate its support for a CQE is described in the
Administrative Oversight section of this preamble. Once an application
to become a CQE has been approved, then that CQE is eligible to hold
and receive QS, and lease IFQ to eligible community residents under the
mechanisms established by this rule. If a CQE does not remain in compliance
with the regulations applying to CQEs or IFQ holders generally, then
NMFS can initiate administrative proceedings to deny the transfer of
QS or IFQ to or from the CQE. As with other administrative determinations
under the IFQ Program, any such determination could be appealed under
the procedures set forth in regulations (50 CFR 679.43). The Council
recommended regulatory measures, described below, as a means to monitor
the ability of the non-profit entities to meet the goals of distributing
IFQ among residents in these GOA communities.
Eligible Communities
Gulf of Alaska communities eligible to participate in this program
must meet all the following criteria:
- have a population
of less than 1,500 persons based on the 2000 United States
Census;
- have direct
saltwater access;
- lack direct
road access to communities with a population greater
than 1,500 persons;
- have
historic
participation in the halibut and sablefish fisheries;
and
- be specifically
designated on a list adopted by the Council and included in this
rule
(see Table 21 to part 679).
If a community
appears to meet the eligibility
criteria
but is not specifically designated on the list of communities
adopted by the Council, then that community must apply
directly to the
Council to be included. In this event, the Council may
modify the list of
eligible communities adopted by the Council through a
regulatory amendment. Under this action, a total of 42 communities
in the GOA qualify as eligible to purchase QS. These eligible
communities
may
designate a new nonprofit entity to hold QS on behalf
of that community.
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