Legislature(2003 - 2004)

05/12/2003 03:35 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                      HB 226-ORGANIC FOOD                                                                                   
                                                                                                                                
MS.  BARBARA  BITTNEY,  staff  to  Representative  Bill  Stoltze,                                                               
sponsor,  explained  that  HB  226   simply  adopts  the  federal                                                               
definition  of "organic."  Since the  federal government  changed                                                               
the  definition  and  standards for  "organic,"  produce  can  no                                                               
longer  be  certified  as  organic within  the  State  of  Alaska                                                               
without this  legislation. Organic  producers must go  to Oregon,                                                               
Washington, and other states  for certification. This legislation                                                               
will  create   a  state  certification  program   within  Alaska.                                                               
Inspectors will fly to Alaska  but Alaskans who are familiar with                                                               
local  agriculture  can certify  that  produce  is organic.  Last                                                               
year, Representative Harris introduced  this same legislation [HB
432] but it was not enacted before the end of the session.                                                                      
                                                                                                                                
MS.  BITTNEY   told  members  when  the   federal  definition  of                                                               
"organic" was enacted the certification  cost was increased. That                                                               
increase from  $500 to  between $1500  and $3000  was significant                                                               
for  smaller  producers. Many  organic  farmers  sell to  farmers                                                               
markets;  it is  not a  high  volume industry.  Anyone who  sells                                                               
$5000  or  more  of  organic   produce  must  be  certified.  She                                                               
clarified that the House Finance  Committee zeroed out the fiscal                                                               
note and plans to fund the program with program receipts.                                                                       
                                                                                                                                
SENATOR  ELTON  said the  original  fiscal  note  had a  cost  of                                                               
$37,000  per year.  He asked  the  number of  organic farmers  in                                                               
Alaska who could cover that cost.                                                                                               
                                                                                                                                
MS. BITTNEY  could not  give a  number but  said there  are three                                                               
farmers  markets  in  Anchorage,  one  in  Eagle  River,  one  in                                                               
Fairbanks,  one  in  Homer,  one   in  Soldotna,  and  Delta  and                                                               
Talkeetna plan to  start farmers markets. In  addition, there are                                                               
some  very large  agricultural farms  in her  area. She  said the                                                               
number is fairly significant.                                                                                                   
                                                                                                                                
SENATOR ELTON  asked if this  will be a cheaper  alternative than                                                               
flying an inspector to Alaska.                                                                                                  
                                                                                                                                
MS.  BITTNEY   said  her   hope  is  that   by  having   a  state                                                               
certification  program,  Alaska  will  eventually  have  in-state                                                               
inspection, which will significantly reduce the cost.                                                                           
                                                                                                                                
CHAIR OGAN stated:                                                                                                              
                                                                                                                                
     I'd just like  to say, you know, my district  - in fact                                                                    
     in  my neighborhood  we have  one of  the best  organic                                                                    
     farmers - Larry  DeVilbiss. I literally -  I drank more                                                                    
     carrot  juice after  recovering  from  my heart  attack                                                                    
     last  year and  I can  tell you  what -  that stuff  is                                                                    
     good. I  know it sounds  disgusting but the  Mat Valley                                                                    
     carrots are the  sweetest carrots in the  world. I mean                                                                    
     they're  really, really  good  and you  throw a  little                                                                    
     apple  in there  and it's  full of  calcium and  really                                                                    
     good stuff. I  attribute a lot of my  good health today                                                                    
     due to a  vigorous organic carrot program.  In fact I'm                                                                    
     going back on  it when I get home. I  miss them. That's                                                                    
     weird for me  - you're talking a meat  and potatoes guy                                                                    
     - anyway....                                                                                                               
                                                                                                                                
SENATOR SEEKINS  said he  is very  much in  support of  this bill                                                               
because he produces organic fertilizer from his herd of horses.                                                                 
                                                                                                                                
SENATOR LINCOLN noted the federal  regulations now recognize wild                                                               
salmon as  organic and asked  Ms. Bittney if that  interacts with                                                               
HB 226.                                                                                                                         
                                                                                                                                
MS.  BITTNEY  said  HB  226   strictly  applies  to  agricultural                                                               
products. Meats are dealt with  in a different section of statute                                                               
but that is something that could be explored.                                                                                   
                                                                                                                                
SENATOR  LINCOLN  said  she  thought  Ms.  Bittney  said  HB  226                                                               
pertains to more than agricultural products.                                                                                    
                                                                                                                                
MS. BITTNEY  said she was  referring to herbs and  essential oils                                                               
from lavender, for example.                                                                                                     
                                                                                                                                
CHAIR OGAN recognized the presence  of Representative Stoltze. He                                                               
then   noted  that   Ms.  Bittney   said  a   farmer  must   have                                                               
certification to  sell over  a certain amount  of produce  but no                                                               
amount is included in the bill.                                                                                                 
                                                                                                                                
MS. BITTNEY said the amount  is listed in the federal guidelines,                                                               
which require  anyone selling  under $5,000  per year  in organic                                                               
products  to meet  the standard;  anyone selling  $5,000 or  more                                                               
must have  certification. If  a state  official went  on-site and                                                               
found a farmer  did not have certification, that  farmer could be                                                               
fined.  She  clarified the  limit  set  on  the  fines is  up  to                                                               
$10,000. The Department of Natural  Resources (DNR) would set the                                                               
actual fine amounts in regulation.                                                                                              
                                                                                                                                
SENATOR ELTON  asked if DNR  would be required to  do enforcement                                                               
in Seattle if produce was shipped from Alaska to Seattle.                                                                       
                                                                                                                                
MS. BITTNEY said  when a farm is certified,  an inspector reviews                                                               
the entire  operation. Right  now, inspectors  often look  at the                                                               
end product  but it is  impossible to  determine if it  meets the                                                               
federal  guidelines.  According  to  the U.S.  Code,  an  organic                                                               
farmer will have  to keep three-years' worth  of documentation on                                                               
how  the soil  was  amended  and the  soil  would  be subject  to                                                               
testing.  The Code  contains  a  long list  of  sprays and  other                                                               
products that can and cannot be used.                                                                                           
                                                                                                                                
SENATOR ELTON  asked if anything  in HB  226 will require  DNR to                                                               
enforce the labeling requirements outside of Alaska.                                                                            
                                                                                                                                
MS.  BITTNEY  said she  would  have  to  get  an answer  to  that                                                               
question.                                                                                                                       
                                                                                                                                
SENATOR DYSON said he is leery about creating more government.                                                                  
                                                                                                                                
CHAIR OGAN took public testimony.                                                                                               
                                                                                                                                
MR. MARK  REMPEL, an organic  farmer from Palmer,  stated support                                                               
for HB  226. He said he  was disappointed that the  same bill did                                                               
not pass last year because he  was forced to go outside of Alaska                                                               
to get his certification.                                                                                                       
                                                                                                                                
MR.  RIVER BEAN,  President of  the  Alaska Organic  Association,                                                               
told  members  that   up  until  the  fall  of   last  year,  his                                                               
organization could certify organic  growers. However, that can no                                                               
longer  be  done  under  the  new  federal  rule.  He  asked  the                                                               
legislature to support  HB 226 because it will  allow the organic                                                               
farmers in Alaska to get their  produce certified by the State of                                                               
Alaska  rather than  by another  state. Also  of concern  is that                                                               
many  farmers   in  the   state  are   unaware  of   the  serious                                                               
consequences  of using  the word  "organic"  with their  produce.                                                               
Farmers who  are mislabeling their  produce could be fined  up to                                                               
$10,000  if federal  enforcement were  to occur.  That kind  of a                                                               
fine would  break most  of those farms.  He believes  those farms                                                               
are selling more  than $5,000 worth of produce and  would have to                                                               
go  out-of-state for  certification. He  said last  year he  paid                                                               
$350 to  have his farm certified  as organic; this year  the cost                                                               
to get certified  by Washington State would be  more than $2,000,                                                               
which is unaffordable. He said  his association would like to see                                                               
an agricultural  inspector in Alaska,  which could be  an outcome                                                               
of HB 226.                                                                                                                      
                                                                                                                                
SENATOR WAGONER  asked how many  commercial organic  farmers work                                                               
in Alaska.                                                                                                                      
                                                                                                                                
MR. BEAN  said that  four were certified  last year.  He believes                                                               
there are about 40 smaller scale organic farmers.                                                                               
                                                                                                                                
MR. SHANE  HERR, a third  generation carrot farmer, said  he sees                                                               
HB 226 as a necessary evil for economic development.                                                                            
                                                                                                                                
CHAIR  OGAN  said  that  many people  have  the  perception  that                                                               
farming is not  a viable industry in Alaska but  that is not true                                                               
in his district.                                                                                                                
                                                                                                                                
TAPE 03-46, SIDE B                                                                                                            
                                                                                                                                
CHAIR OGAN  said that  farmers, like  fishermen, are  free market                                                               
risk takers, which he has a lot  of respect for. He then moved HB
226  from committee  with its  zero  fiscal note  from the  House                                                               
Finance Committee.                                                                                                              
                                                                                                                                
SENATOR SEEKINS objected.                                                                                                       
                                                                                                                                
SENATOR  DYSON said  he  is  very concerned  that  the House  has                                                               
chosen to not  fine parents whose children burn  down schools and                                                               
slash tires yet this House bill fines the poor farmers $10,000.                                                                 
                                                                                                                                
CHAIR OGAN called Senator Dyson's comments out of order.                                                                        
                                                                                                                                
SENATOR DYSON stated objection to the motion.                                                                                   
                                                                                                                                
SENATOR  LINCOLN  stated  objection  to the  motion  because  the                                                               
committee  had not  heard  testimony from  farmers  in the  Delta                                                               
area.                                                                                                                           
                                                                                                                                
A  roll call  vote was  taken.  The motion  to pass  HB 226  from                                                               
committee  failed with  Senators Stevens,  Dyson, Seekins,  Elton                                                               
and Lincoln opposed,  and Chair Ogan in favor, who  then moved to                                                               
reconsider the vote.  All members then voted  in favor, therefore                                                               
the motion to move HB 226 from committee passed unanimously.                                                                    
                                                                                                                                
SENATOR SEEKINS  asked that the  record show  that Representative                                                               
Stoltze had turned three shades of red.                                                                                         
                                                                                                                                
CHAIR OGAN adjourned the meeting at 4:28 p.m.                                                                                   

Document Name Date/Time Subjects