Legislature(2001 - 2002)
03/06/2002 01:14 PM House RES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 208-AQUATIC FARMS FOR SHELLFISH CO-CHAIR SCALZI announced the final matter before the committee, HOUSE BILL NO. 208, "An Act relating to aquatic farming of shellfish; and providing for an effective date." REPRESENTATIVE GREEN made a motion to adopt the proposed committee substitute (CS), version 22-LS0763\P, Utermohle, 3/5/02, as the working document. There being no objection, Version P was before the committee. Number 2820 STEPHEN LaCROIX, Aquatic Farm Applicant, testified via teleconference, extending his support to the "basic bill." He pointed out that in the year since the bill was first crafted, leases for farm sites had been extended to ten years. Number 2874 BOB LOEFFLER, Director, Division of Mining, Land and Water, Department of Natural Resources, testified before the committee. He informed members that the department was in full support of the bill. Number 2904 REPRESENTATIVE STEVENS asked about the ten-year lease Mr. LaCroix had asked about, and said he did not see it in the bill. MR. LOEFFLER said it was in the original bill, and the question of valuation is not in [Version P]. He said it was taken out because it would be more expensive for the aquaculture growers. Number 2940 RODGER PAINTER, Alaska Shellfish Growers Association, testified before the committee. He thanked all involved for working hard on the bill. He pointed to the biggest change in Version P. TAPE 02-15, SIDE B Number 2945 MR. PAINTER said [the biggest change] provides for 90 sites that may be contained in a smaller number of areas. Another change, on line 11, adds the word "potentially" between the words "sites" and "suitable". This is to clarify that not all questions would be fully answered and that there would be more permits to obtain after a bidder secures the lease at auction. He pointed to the change on line 16 and said it made the language consistent with existing statutes. Number 2854 ROBERT HARTLEY, Alaska Shellfish Growers Association (ASGA), testified via teleconference. He expressed his support for the bill and told the committee the bill would solve many problems for shellfish farmers. He characterized shellfish farming as a remedy to some of the economic ills that had recently befallen the commercial fishing industry; he said the two dovetail nicely. Noting that Alaskan aquatic farmers produce some of the highest-quality shellfish in the world, he said the industry in Alaska can barely meet the demand in Anchorage. Number 2759 DOUG MECUM, Director, Division of Commercial Fisheries, Alaska Department of Fish & Game, testified before the committee. He said the bill is an example of good government, with the industry, legislature, and agencies working together to develop legislation that will be good for Alaskans. He added that the money is an issue, and new sources of funds will have to be located to make the program work. Number 2708 REPRESENTATIVE McGUIRE asked what expenses the department was incurring prior to the bill, when there was only the Aquatic Farm Act on the books. She also asked why there is such a large fiscal note for the bill now. MR. MECUM responded by saying the existing program consists of a mariculture coordinator, an assistant, and a small amount of operational funds. He said that money had been reprogrammed for the assistant position, different from the year before. He said his department's budget for the program is approximately $200,000. He characterized the fiscal notes from ADF&G [from the Division of Habitat Restoration and the Division of Commercial Fisheries] as "a one-time infusion of funds." The Division of Commercial Fisheries' cost was estimated to be $90,000 - down from $200,000 in the original bill - in the first year; in the second year, there would be a decrease of about half. He said there were similar numbers for the Division of Habitat Restoration. Mr. Mecum said he has talked with the ASGA about the fiscal notes, which agreed the numbers were reasonable. He added that the intent of the bill was to double the size of the industry. Number 2536 REPRESENTATIVE McGUIRE asked if [the department] had been pulling $200,000 from its existing budget to run the program, prior to the bill. MR. MECUM said the funds wouldn't be needed after two years, in his estimation. He said the bill aims to find areas suitable for 90 sites. Number 2502 Co-Chair Scalzi asked what the difference would be between what the bill legislates and what the program was in the past. MR. MECUM said currently people can submit applications for sites statewide. He said it is a problem, however, and offered the analogy: "Bring me a rock. No, I'm sorry, that's not the right rock; bring me another rock." He characterized the intent of the bill as having the department do a "brush-clearing exercise," saying the department would clear things away in order to find areas where people can feasibly farm shellfish. He said the bill is a very different approach. Number 2445 REPRESENTATIVE McGUIRE answered that she didn't "have a problem with that" and would continue to support the bill, even though she thought it would be doomed by the fiscal note. She gave the analogy of the oil industry: the state doesn't allow it to develop all over the state, but the oil industry is instrumental in identifying areas where it has been successful in drilling. MR. MECUM characterized Representative McGuire's point as a good one. He told of his vision of a partnership between the industry and the department wherein proposals would be brought forth by the industry and the department would do the basic survey and inventory to determine whether a site would be right for development. Number 2346 REPRESENTATIVE GREEN asked what sort of revenue would be generated by offering lease sites through public auction. MR. MECUM deferred to Bob Loeffler of the Department of Natural Resources (DNR), since DNR would be in charge of leasing. He said ADF&G would be concerned with the biological aspects of shellfish farming. Number 2304 CO-CHAIR SCALZI said there were problems with the old system. He expressed his belief that the partnership approach of the bill would be "productive and streamlined." He said DNR has increased the budget by means of "oil and water-rights issues that do make us money." He said Alaska has to look for things that will generate money for the state coffers, and this bill might help in that pursuit. Number 2209 MR. LOEFFLER told the committee the 90 sites would generate roughly $55,000 per year. The three-acre lease sites would require a few years to be completely taken up. REPRESENTATIVE GREEN said it was more palatable to see some estimated income for the state's $250,000 than to see the money dumped into allowing "those guys [to] go out and do some aquaculture." Number 2123 REPRESENTATIVE GREEN moved to report CSHB 208 [version 22- LS0763\P, Utermohle, 3/5/02] out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 208(RES) was moved out of the House Resources Standing Committee.
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