Legislature(2007 - 2008)BARNES 124

02/15/2008 08:30 AM House FISHERIES


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08:34:16 AM Start
08:35:04 AM HB257
09:04:15 AM Overview: Adf&g Mariculture Management and Permitting
10:00:40 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Rescheduled from 02/11/07 --
*+ HB 257 TRANSFER AQUATIC FARMING TO DNR TELECONFERENCED
Moved CSHB 257(FSH) Out of Committee
+ Overview of ADF&G Mariculture management TELECONFERENCED
and permitting
HB 257-TRANSFER AQUATIC FARMING TO DNR                                                                                        
                                                                                                                                
8:35:04 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced that the  first order of business would be                                                               
HOUSE  BILL NO.  257,  "An Act  transferring  duties relating  to                                                               
aquatic farming  and hatchery operations  from the  Department of                                                               
Fish   and  Game   to  the   Department  of   Natural  Resources,                                                               
eliminating  certain permit  requirements  applicable to  aquatic                                                               
farming and hatchery operations,  and directing the Department of                                                               
Natural  Resources to  administer and  supervise promotional  and                                                               
marketing work  for aquatic farm  products; and providing  for an                                                               
effective date."                                                                                                                
                                                                                                                                
8:36:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN moved  to  adopt CSHB  257, Version  25-                                                               
LS0676\K, Kane,  2/13/08, as the  working document.   There being                                                               
no objection, Version K was before the committee.                                                                               
                                                                                                                                
8:37:02 AM                                                                                                                    
                                                                                                                                
JOHN BITNEY,  Staff to Representative  John Harris,  Alaska State                                                               
Legislature,  explained  that  all  provisions  of  HB  257  were                                                               
eliminated,  save  Sections  1  and   30.    Version  K,  in  its                                                               
simplicity, creates a  provision in statute for  the Alaska Grown                                                               
Program     to     include      mariculture     products;     for                                                               
promotional/marketing purposes.                                                                                                 
                                                                                                                                
8:39:28 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  noted that  the sponsor  is Representative                                                               
Harris "by  request," and  she inquired as  to who  requested the                                                               
legislation.                                                                                                                    
                                                                                                                                
MR. BITNEY said  that he doesn't know  who specifically requested                                                               
HB  257, although  he said  there are  significant proponents  of                                                               
mariculture who have  been dealing with the issue  of sorting out                                                               
the purview for mariculture.                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX inquired  why "by  request," is  sometimes                                                               
used.                                                                                                                           
                                                                                                                                
MR. BITNEY opined  that at times the sponsor may  want to reflect                                                               
that someone has brought the matter to his/her attention.                                                                       
                                                                                                                                
8:41:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON, referred  to page  2, paragraph  (3), and                                                               
read:    "assist  prospective settlers  and  others  desiring  to                                                               
engage   in   the  agricultural   industry."      He  asked   for                                                               
clarification of the use of  the language "prospective settlers,"                                                               
and to whom it is directed.                                                                                                     
                                                                                                                                
MR.  BITNEY  pointed  out  that  lines  6-9  [paragraph  (3)]  is                                                               
longstanding,  statutory  language  that exists  under  Title  3;                                                               
regarding  the DNR  commissioner responsibilities  as related  to                                                               
agriculture.                                                                                                                    
                                                                                                                                
8:44:02 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON said:                                                                                                              
                                                                                                                                
     The  reason this  is addressing  Department of  Natural                                                                    
     Resources, although what we're  mainly talking about is                                                                    
     the  regulation of  mariculture  within  fish and  game                                                                    
     [ADF&G], is  because the Alaska  Grown logo is  part of                                                                    
     [Division of  Agriculture], and this  is going  to that                                                                    
     marketing piece.  Is that correct?                                                                                         
                                                                                                                                
                                                                                                                                
MR. BITNEY  noted his agreement.   The marketing of  Alaska Grown                                                               
products  is administered  through the  Division of  Agriculture,                                                               
DNR, and mariculture management is under the purview of ADF&G.                                                                  
                                                                                                                                
8:45:42 AM                                                                                                                    
                                                                                                                                
DOUG WARNER, Manager,  Inspection/Marketing Services, Division of                                                               
Agriculture,  Department  of   Natural  Resources  (DNR),  stated                                                               
support  for  Version  K,  and   the  authority  it  provides  to                                                               
implement   marketing  for   the   Alaska  mariculture   program.                                                               
Currently  some   shellfish  and  oyster  farmers   are  able  to                                                               
participate,  in   the  program   via  grandfather   rights,  but                                                               
new/developing mariculture farmers do  not qualify.  The language                                                               
in  the bill  will authorize  the extension  of the  Alaska Grown                                                               
program to  those individuals,  and he  described the  success of                                                               
the program.   The regulations for the Alaska  Grown products are                                                               
undergoing   revision,  making   this   legislation  timely   for                                                               
expansion of the plan to include aquaculture.                                                                                   
                                                                                                                                
8:49:11 AM                                                                                                                    
                                                                                                                                
JOHN  HILSINGER,  Director,  Division  of  Commercial  Fisheries,                                                               
Alaska  Department  of  Fish  &  Game  (ADF&G),  stated  official                                                               
support for Version K.                                                                                                          
                                                                                                                                
8:50:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX   referred  to  the  original   bill,  and                                                               
recalled previous  hearings, which indicated a  concern regarding                                                               
ADF&G's  ability/resource   availability  to   properly  research                                                               
mariculture, thus  hindering the formation of  this new industry.                                                               
However, Version  K only addresses the  marketing and promotional                                                               
aspect.  She questioned how marketing  can occur, if there are no                                                               
funds to research mariculture and create a healthy industry.                                                                    
                                                                                                                                
CHAIR SEATON  pointed out that today's  presentation will address                                                               
that situation.                                                                                                                 
                                                                                                                                
8:52:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN directed  attention to  the fiscal  note                                                               
and inquired about the current  status of the two positions being                                                               
proposed for transfer from ADF&G to DNR.                                                                                        
                                                                                                                                
MR. HILSINGER explained that the  fiscal note for the original HB
257  would have  transferred two  positions; Version  K holds  no                                                               
fiscal note for ADF&G.                                                                                                          
                                                                                                                                
REPRESENTATIVE JOHANSEN  surmised then  that the DNR  fiscal note                                                               
may still be accurate.                                                                                                          
                                                                                                                                
8:54:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX asked  what is the advantage  of having the                                                               
marketing of aquatic farmed,  and hatchery products, administered                                                               
by  DNR, as  opposed to  the Alaska  Seafood Marketing  Institute                                                               
(ASMI).                                                                                                                         
                                                                                                                                
MR.  HILSINGER  responded  that  farmed  shellfish  products  are                                                               
considered  a  farm  product;  different  than  the  commercially                                                               
harvested   products.     He  then   deferred  to   the  industry                                                               
representative.                                                                                                                 
                                                                                                                                
8:56:39 AM                                                                                                                    
                                                                                                                                
PAUL  FUHS, Lobbyist,  PAC Alaska,  LLC, Seafarms  Alaska, stated                                                               
support  for HB  257,  and said  it  will be  of  benefit to  the                                                               
mariculture industry in  their marketing endeavors.   In reply to                                                               
Representative   LeDoux's  inquiry,   he   said   that  DNR   has                                                               
established that  marketing of farmed products  be labeled Alaska                                                               
Grown,   while  ASME   promotes  the   market  of   Alaska  Wild.                                                               
Mariculture  fits  well under  the  Division  of Agriculture,  he                                                               
opined.                                                                                                                         
                                                                                                                                
8:58:01 AM                                                                                                                    
                                                                                                                                
RODGER PAINTER, President,  Alaskan Shellfish Growers Association                                                               
(ASGA), expressed support  for Version K.  He said  that a number                                                               
of  shellfish farmers  are under  the program,  and others  would                                                               
like to be  involved.  He recalled being a  board member of ASME,                                                               
and said that  the shellfish farmers do play a  small part in the                                                               
ASME scheme.   Further,  he informed the  committee that  ASGA is                                                               
credited  for  requesting  that Representative  Harris  introduce                                                               
this bill.                                                                                                                      
                                                                                                                                
9:00:16 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON closed public testimony.                                                                                           
                                                                                                                                
9:01:01 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN moved  to report  CSHB 257,  Version 25-                                                               
LS0676\K,  Kane,  2/13/08,  out   of  committee  with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection, CSHB  257(FSH) was reported from  the House Special                                                               
Committee on Fisheries.                                                                                                         
                                                                                                                                
9:01:27 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON asked if Version K has a fiscal note attached.                                                                     
                                                                                                                                
MR. WARNER answered  yes.  The fiscal note addresses  the need to                                                               
provide  a minimum  amount of  support to  the shellfish  farming                                                               
industry.   He  said that  the Alaskan  Grown Program  intends to                                                               
cooperate  with  ASME  in  order  to  compliment  both  marketing                                                               
efforts.   Passage of Version  K allows  the state to  enter into                                                               
market access  programs administered  by the USDA  (United States                                                               
Department  of Agriculture).   The  fiscal note  total is  $132.7                                                               
thousand.                                                                                                                       

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