Legislature(2021 - 2022)BUTROVICH 205

05/17/2021 03:30 PM RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SJR 16 END RUSSIA EMBARGO ON U.S. SEAFOOD TELECONFERENCED
Moved SJR 16 Out of Committee
-- Invited & Public Testimony --
*+ SJR 17 INCREASE SEAFOOD EXPORTS TELECONFERENCED
Moved SJR 17 Out of Committee
-- Invited & Public Testimony --
*+ HB 22 SHARED ANIMAL AND RAW MILK/PRODUCTS TELECONFERENCED
Moved SCS HB 22 (RES) Out of Committee
-- Invited & Public Testimony --
**Streamed live on AKL.tv**
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE RESOURCES STANDING COMMITTEE                                                                             
                          May 17, 2021                                                                                          
                           3:34 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Joshua Revak, Chair                                                                                                     
Senator Peter Micciche, Vice Chair                                                                                              
Senator Click Bishop                                                                                                            
Senator Gary Stevens                                                                                                            
Senator Natasha von Imhof                                                                                                       
Senator Jesse Kiehl                                                                                                             
Senator Scott Kawasaki                                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE JOINT RESOLUTION NO. 16                                                                                                  
Calling on President Biden to  immediately seek and secure an end                                                               
to the embargo  imposed by Russia on seafood  imports from abroad                                                               
so that Alaska seafood producers'  access to the Russian domestic                                                               
seafood market is fully restored.                                                                                               
                                                                                                                                
     - MOVED SJR 16 OUT OF COMMITTEE                                                                                            
                                                                                                                                
SENATE JOINT RESOLUTION NO. 17                                                                                                  
Requesting  the United  States Trade  Representative  to bring  a                                                               
renewed focus on the plight of  producers of seafood in the state                                                               
and the  United States  and to  compel China  to comply  with its                                                               
commitment to increase  its imports of seafood  products from the                                                               
United States.                                                                                                                  
                                                                                                                                
     - MOVED SJR 17 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 22 AM                                                                                                            
"An Act relating to shared  animal ownership; and relating to the                                                               
sharing of raw milk and raw milk products."                                                                                     
                                                                                                                                
     - MOVED SCS HB 22 (RES) OUT OF COMMITTEE                                                                                   
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SJR 16                                                                                                                  
SHORT TITLE: END RUSSIA EMBARGO ON U.S. SEAFOOD                                                                                 
SPONSOR(s): SPECIAL COMMITTEE ON WORLD TRADE                                                                                    
                                                                                                                                
05/11/21       (S)       READ THE FIRST TIME - REFERRALS                                                                        
05/11/21       (S)       WTR                                                                                                    
05/12/21       (S)       RES REFERRAL REPLACED WTR                                                                              
05/17/21       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SJR 17                                                                                                                  
SHORT TITLE: INCREASE SEAFOOD EXPORTS                                                                                           
SPONSOR(s): SPECIAL COMMITTEE ON WORLD TRADE                                                                                    
                                                                                                                                
05/11/21       (S)       READ THE FIRST TIME - REFERRALS                                                                        
05/11/21       (S)       WTR                                                                                                    
05/12/21       (S)       RES REFERRAL REPLACED WTR                                                                              
05/17/21       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: HB 22                                                                                                                   
SHORT TITLE: SHARED ANIMAL AND RAW MILK/PRODUCTS                                                                                
SPONSOR(s): TARR                                                                                                                
                                                                                                                                
02/18/21       (H)       PREFILE RELEASED 1/8/21                                                                                
02/18/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/21       (H)       CRA, RES                                                                                               
03/30/21       (H)       CRA AT 8:00 AM BARNES 124                                                                              
03/30/21       (H)       Heard & Held                                                                                           
03/30/21       (H)       MINUTE(CRA)                                                                                            
04/06/21       (H)       CRA AT 8:00 AM BARNES 124                                                                              
04/06/21       (H)       Moved HB 22 Out of Committee                                                                           
04/06/21       (H)       MINUTE(CRA)                                                                                            
04/07/21       (H)       CRA RPT 6DP 1NR                                                                                        
04/07/21       (H)       DP: MCCARTY, DRUMMOND, PRAX, MCCABE,                                                                   
                        HANNAN, SCHRAGE                                                                                         
04/07/21       (H)       NR: PATKOTAK                                                                                           
04/16/21       (H)       RES AT 1:00 PM BARNES 124                                                                              
04/16/21       (H)       Heard & Held                                                                                           
04/16/21       (H)       MINUTE(RES)                                                                                            
04/19/21       (H)       RES AT 1:00 PM BARNES 124                                                                              
04/19/21       (H)       Moved HB 22 Out of Committee                                                                           
04/19/21       (H)       MINUTE(RES)                                                                                            
04/21/21       (H)       RES RPT 6DP 1NR 2AM                                                                                    
04/21/21       (H)       DP: MCKAY, FIELDS, CRONK, HANNAN,                                                                      
                         SCHRAGE, PATKOTAK                                                                                      
04/21/21       (H)       NR: HOPKINS                                                                                            
04/21/21       (H)       AM: RAUSCHER, GILLHAM                                                                                  
05/06/21       (H)       TRANSMITTED TO (S)                                                                                     
05/06/21       (H)       VERSION: HB 22 AM                                                                                      
05/07/21       (S)       READ THE FIRST TIME - REFERRALS                                                                        
05/07/21       (S)       RES                                                                                                    
05/17/21       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
STEPHANIE MADSEN                                                                                                                
Executive Director                                                                                                              
At-Sea Processors Association                                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified on SJR 16 and SJR 17 by                                                                         
invitation.                                                                                                                     
                                                                                                                                
MATT TINNING, Director of Sustainability and Public Affairs                                                                     
At-Sea Processors Association (APA)                                                                                             
Washington, D.C.                                                                                                                
POSITION STATEMENT: Answered questions during the hearings on                                                                 
SJR 16 and SJR 17.                                                                                                              
                                                                                                                                
CHRIS BARROWS, President                                                                                                        
Pacific Seafood Processors Association                                                                                          
Seattle, Washington                                                                                                             
POSITION STATEMENT: Testified in support of SJR 16 and SJR 17.                                                                
                                                                                                                                
REPRESENTATIVE GERAN TARR                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 22.                                                                                         
                                                                                                                                
THATCHER BROUWER, Staff                                                                                                         
Representative Geran Tarr                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions regarding HB 22.                                                                       
                                                                                                                                
SUZY CROSBY, Owner                                                                                                              
Cottonwood Creek Farm                                                                                                           
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT: Testified on HB 22 by invitation.                                                                         
                                                                                                                                
AMY PETTIT, Executive Director                                                                                                  
Alaska Farmland Trust                                                                                                           
Palmer, Alaska                                                                                                                  
POSITION STATEMENT: Testified on HB 22 by invitation.                                                                         
                                                                                                                                
MARLENE WENGER, representing self                                                                                               
Kenny Lake, Alaska                                                                                                              
POSITION STATEMENT: Testified in support of HB 22.                                                                            
                                                                                                                                
LARAE SMITH, representing self                                                                                                  
Willow, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of HB 22.                                                                            
                                                                                                                                
AMY SEITZ, Executive Director                                                                                                   
Alaska Farm Bureau                                                                                                              
Soldotna, Alaska                                                                                                                
POSITION STATEMENT: Testified in support of HB 22.                                                                            
                                                                                                                                
MILENA SEVIGNY, representing self                                                                                               
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT: Testified in support of HB 22.                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:34:17 PM                                                                                                                    
CHAIR  JOSHUA   REVAK  called   the  Senate   Resources  Standing                                                             
Committee meeting  to order at 3:34  p.m. Present at the  call to                                                               
order  were  Senators  Micciche, Stevens,  Kiehl,  Kawasaki,  and                                                               
Chair Revak.  Senators Bishop  and von  Imhof arrived  during the                                                               
course of the meeting.                                                                                                          
                                                                                                                                
           SJR 16-END RUSSIA EMBARGO ON U.S. SEAFOOD                                                                        
                                                                                                                                
3:35:20 PM                                                                                                                    
CHAIR  REVAK   announced  the   consideration  of   SENATE  JOINT                                                               
RESOLUTION NO. 16 Calling on  President Biden to immediately seek                                                               
and secure  an end to  the embargo  imposed by Russia  on seafood                                                               
imports from abroad  so that Alaska seafood  producers' access to                                                               
the Russian domestic seafood market is fully restored.                                                                          
                                                                                                                                
3:35:36 PM                                                                                                                    
SENATOR GARY  STEVENS, speaking  as chair  of the  Senate Special                                                               
Committee  on World  Trade  that sponsored  SJR  16, stated  that                                                               
Alaska's fisheries are  a centerpiece of the  state's economy and                                                               
anything that increases the value  of Alaska seafood improves the                                                               
health of the state's economy.  He reminded the committee that in                                                               
August 2014,  Russia banned a  broad range of food  products from                                                               
the European  Union (EU), the  United States,  Canada, Australia,                                                               
and  Norway  in  retaliation  to the  Western  sanctions  to  the                                                               
Ukraine  crisis. The  ban includes  nearly  all seafood  products                                                               
from  Alaska which  makes it  very difficult  for Alaska  seafood                                                               
processors to  stay competitive  in the  world market.  They need                                                               
help from the federal government.                                                                                               
                                                                                                                                
SJR 16  reaches out and  urges the federal government  to restore                                                               
Alaska's seafood industry for fair market access to Russia.                                                                     
                                                                                                                                
3:37:11 PM                                                                                                                    
CHAIR REVAK announced invited testimony.                                                                                        
                                                                                                                                
3:37:25 PM                                                                                                                    
STEPHANIE   MADSEN,   Executive   Director,   At-Sea   Processors                                                               
Association (APA), Juneau, Alaska, stated  that since most of the                                                               
committee  members attended  the  earlier detailed  informational                                                               
session, she would  save time by speaking to both  SJR 16 and SJR
17.  She  thanked  the  committee for  its  leadership  on  these                                                               
critical  issues.  She  said  seafood  industry  workers  do  not                                                               
typically discuss international  trade rules on the  dock, but it                                                               
is a critically important variable  for these workers and seafood                                                               
processors.                                                                                                                     
                                                                                                                                
She related  that the majority  of seafood produced in  Alaska is                                                               
destined for export  to markets in Japan, China, the  EU, and the                                                               
United Kingdom, and  if the U.S. were to  become uncompetitive in                                                               
these  markets, Alaska  seafood  markets would  lose value.  This                                                               
would translate  to lower  revenue, fewer  jobs, and  lower wages                                                               
and crew  shares. She pointed out  that Alaska often has  been on                                                               
the  losing   end  in  recent   years  due  to   developments  in                                                               
international trade  policy, and  this has  always resulted  in a                                                               
direct loss for Alaska's seafood industry.                                                                                      
                                                                                                                                
MS.  MADSEN  cited  Russia  as an  example.  As  Russian  seafood                                                               
exports  to  the U.S.  have  boomed  since 2014,  this  lucrative                                                               
market has been almost entirely  closed to U.S. seafood exporters                                                               
and  thus  has  imposed  ongoing  costs  on  the  Alaska  seafood                                                               
economy.  She  thanked  the  committee for  focusing  SJR  16  on                                                               
Russia's  outrageous embargo  in American  seafood. Hopefully  it                                                               
will help  to end the embargo  and restore fair access  to Russia                                                               
for Alaska/American products, she said.                                                                                         
                                                                                                                                
MS. MADSEN turned  her attention to SJR 17,  stating that China's                                                               
July 2018 retaliatory tariffs on  U.S. seafood products have made                                                               
it nearly  impossible for Alaska's  seafood industry  to compete.                                                               
She reported  that the  unprecedented growth  wave of  the Alaska                                                               
pollock industry  in China has  been devastated under  the weight                                                               
of the  tariffs. The value of  these exports to China  has fallen                                                               
55  percent since  2017.  Despite the  Phase  I Trade  Agreement,                                                               
there does not  seem to be an  end in sight. She  noted the trade                                                               
press  today  confirmed  that  China  has  not  met  its  seafood                                                               
purchase commitments.                                                                                                           
                                                                                                                                
MS.  MADSEN  said SJR  17  requests  a  level playing  field,  so                                                               
consumers  globally  have  the option  to  buy  Alaska's  premium                                                               
seafood  products.  If the  terms  are  fair, the  industry  will                                                               
thrive. She  relayed the At-Sea Processors  Association's fervent                                                               
hope that SJR  16 and SJR 17 will catalyze  a renewed fairness in                                                               
seafood trade.  If this  is successful,  she said  Alaska seafood                                                               
workers and the broader Alaska economy will benefit.                                                                            
                                                                                                                                
SENATOR STEVENS  emphasized that the  industry is not  asking for                                                               
an  unfair advantage;  it is  simply asking  for a  level playing                                                               
field.                                                                                                                          
                                                                                                                                
3:42:01 PM                                                                                                                    
SENATOR KAWASAKI  asked if the  U.S. trade  representative and/or                                                               
the  [Biden   administration]  were   working  on   these  issues                                                               
currently.                                                                                                                      
                                                                                                                                
3:42:27 PM                                                                                                                    
MATT TINNING, Director of Sustainability  and Public Affairs, At-                                                               
Sea Processors  Association (APA), Washington, D.C.,  answered it                                                               
is early  days in  the Biden  administration's trade  agenda, but                                                               
APA has  been encouraged that  the new U.S.  trade representative                                                               
(USTR), Katherine Tai,  is committed to enforce the  Phase I deal                                                               
and   review  trade   relations  with   China.  He   offered  his                                                               
perspective that  SJR 16  and SJR  17 were  coming at  a critical                                                               
time  to  encourage  the  administration to  move  in  the  right                                                               
direction to help Alaska's seafood industry.                                                                                    
                                                                                                                                
3:43:37 PM                                                                                                                    
CHAIR REVAK opened public testimony on SJR 16.                                                                                  
                                                                                                                                
3:44:01 PM                                                                                                                    
CHRIS BARROWS, President,  Pacific Seafood Processors Association                                                               
(PSPA), Seattle,  Washington, stated  support of  SJR 16  and SJR
17, calling  attention to  the unfair  trade practices  in Russia                                                               
and China that  prevent Alaska seafood from competing  on a level                                                               
playing field.                                                                                                                  
                                                                                                                                
MR.  BARROWS related  that PSPA,  which was  founded in  1914, is                                                               
comprised  of  eight  major  seafood  processing  companies  that                                                               
operate 25  facilities in 15  Alaskan coastal  communities. These                                                               
companies  purchase Alaska  seafood from  harvesters, process  it                                                               
into various products,  and distribute it to markets  in the U.S.                                                               
and worldwide.                                                                                                                  
                                                                                                                                
MR. BARROWS  emphasized the  critical importance  of highlighting                                                               
that seafood is  an important economic engine for  the state. The                                                               
industry  accounts for  half of  Alaskan exports,  but the  long-                                                               
standing and  unfair trade conditions  have made  it increasingly                                                               
difficult  to  maintain  and  expand  value  for  Alaska  seafood                                                               
products.   Federal   trade   policies  and   negotiations   have                                                               
consistently  failed  to  safeguard seafood  producer  interests,                                                               
while seafood imports overwhelmingly enter the U.S. duty free.                                                                  
                                                                                                                                
He  said   the  biological  success  and   importance  of  Alaska                                                               
fisheries  has  been a  U.S.  and  Alaskan  priority, but  it  is                                                               
equally   important  for   the  fisheries   to  be   economically                                                               
successful. A robust U.S. seafood  export economy directly shapes                                                               
the  long-term  health  of Alaska's  seafood  processing  sector,                                                               
including   the   ability   to   maintain   and   replace   aging                                                               
infrastructure   and  obtain   ongoing  capital   investment.  It                                                               
supports  Alaska  fishermen,  fishing  communities,  and  related                                                               
economies that support seafood production.                                                                                      
                                                                                                                                
MR. BARROWS thanked  the committee for its support of  SJR 16 and                                                               
SJR  17   to  correct  the  long-standing   injustices  currently                                                               
embedded in the U.S. trade frameworks.                                                                                          
                                                                                                                                
3:44:09 PM                                                                                                                    
SENATOR VON IMHOF joined the committee meeting.                                                                                 
                                                                                                                                
3:46:51 PM                                                                                                                    
CHAIR  REVAK  discerned there  was  no  one  else who  wished  to                                                               
testify  and  closed  public  testimony on  SJR  16.  Finding  no                                                               
committee comments or questions, he solicited a motion.                                                                         
                                                                                                                                
3:47:17 PM                                                                                                                    
SENATOR MICCICHE moved to report  SJR 16, work order 32-LS0912\A,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
3:47:32 PM                                                                                                                    
CHAIR REVAK announced  that without objection, SJR  16 moved from                                                               
the Senate Resources Standing Committee.                                                                                        
                                                                                                                                
3:47:43 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
                SJR 17-INCREASE SEAFOOD EXPORTS                                                                             
                                                                                                                                
3:49:22 PM                                                                                                                    
SENATOR   REVAK  reconvened   the  meeting   and  announced   the                                                               
consideration of  SENATE JOINT RESOLUTION  NO. 17  Requesting the                                                               
United States  Trade Representative to  bring a renewed  focus on                                                               
the plight  of producers of seafood  in the state and  the United                                                               
States  and to  compel China  to  comply with  its commitment  to                                                               
increase its imports of seafood products from the United States.                                                                
                                                                                                                                
3:49:36 PM                                                                                                                    
SENATOR GARY  STEVENS, speaking  as chair  of the  Senate Special                                                               
Committee  on World  Trade  that sponsored  SJR  17, stated  this                                                               
resolution has  to do  with retaliatory  Chinese tariffs  on U.S.                                                               
seafood  products.  According  to the  Alaska  Seafood  Marketing                                                               
Institute  (ASMI), two-thirds  of  the seafood  harvested in  the                                                               
U.S. has  traditionally come from Alaskan  waters. Unfortunately,                                                               
market demand for Alaska seafood  in China has been substantially                                                               
damaged since  2018 when  China imposed  tariffs on  U.S. seafood                                                               
products.  For  example, the  tariff  on  Alaska pollock  is  500                                                               
percent  higher than  the  same pollock  that  is called  Russian                                                               
Alaska pollock.  SJR 17  seeks to  restore focus  on negotiations                                                               
with  China, ease  the tariff  war, and  right the  international                                                               
market in favor of Alaska seafood products                                                                                      
                                                                                                                                
3:50:52 PM                                                                                                                    
SENATOR MICCICHE advised  that SJR 17 and SJR 16  were the result                                                               
of  a World  Trade  Committee meeting  where  several hours  were                                                               
devoted to discussing the details of these issues.                                                                              
                                                                                                                                
CHAIR  REVAK  added  it  was  a joint  meeting  with  the  Senate                                                               
Resources  Committee,  so  the  members  are  familiar  with  the                                                               
issues.                                                                                                                         
                                                                                                                                
3:51:24 PM                                                                                                                    
CHAIR REVAK opened  public testimony on SJR 17;  finding none, he                                                               
closed public testimony.                                                                                                        
                                                                                                                                
SENATOR   STEVENS  thanked   the   committee   for  hearing   the                                                               
resolutions  and  pointed  out  that testimony  on  the  previous                                                               
resolution addressed both SJR 16 and SJR 17.                                                                                    
                                                                                                                                
CHAIR REVAK found no further  questions or comments and solicited                                                               
a motion.                                                                                                                       
                                                                                                                                
3:52:13 PM                                                                                                                    
SENATOR MICCICHE moved to report  SJR 17, work order 32-LS0913\A,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
3:52:29 PM                                                                                                                    
CHAIR REVAK  announced that without  objection SJR 17  moved from                                                               
the Senate Resources Standing Committee.                                                                                        
                                                                                                                                
3:52:43 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
           HB 22-SHARED ANIMAL AND RAW MILK/PRODUCTS                                                                        
                                                                                                                                
3:54:35 PM                                                                                                                    
CHAIR   REVAK   reconvened   the  meeting   and   announced   the                                                               
consideration of HOUSE BILL NO. 22  am "An Act relating to shared                                                               
animal ownership;  and relating  to the sharing  of raw  milk and                                                               
raw milk products."                                                                                                             
                                                                                                                                
3:55:10 PM                                                                                                                    
REPRESENTATIVE  GERAN  TARR,  Alaska State  Legislature,  Juneau,                                                               
Alaska, sponsor of HB 22, stated  this bill is the result of five                                                               
years of working closely with  farmers statewide to try to create                                                               
additional opportunities in the  state's agriculture industry. HB
22 strengthens the existing herd  share program by moving it from                                                               
regulation into  statute. The  notion is  this will  provide more                                                               
certainty that the program will continue to exist.                                                                              
                                                                                                                                
REPRESENTATIVE TARR said HB 22  also provides the opportunity for                                                               
farmers to provide  herd share members with value  added raw milk                                                               
products such  as cheeses, yogurt,  and ice cream.  She described                                                               
this as  a modest  step to  expand the  herd share  program after                                                               
decades  of  safe operation.  She  noted  the packets  contain  a                                                               
sample contract  that a person  who participates in a  herd share                                                               
program  signs when  they become  a member.  All members  have an                                                               
opportunity to  inspect the facility  and get to know  the farmer                                                               
and animals.                                                                                                                    
                                                                                                                                
3:57:29 PM                                                                                                                    
She   stated   her  office   worked   with   the  Department   of                                                               
Environmental  Conservation  (DEC)  to allow  the  department  to                                                               
respond  to  any  foodborne   illness  outbreak.  The  department                                                               
suggested  the  language   for  this  new  section,   and  it  is                                                               
incorporated in  the forthcoming  committee substitute  (CS). She                                                               
said  the  CS also  reflects  DEC's  recommendation that  farmers                                                               
provide two forms of contact to each herd share member.                                                                         
                                                                                                                                
REPRESENTATIVE TARR described HB 22  as an opportunity to improve                                                               
food  security  and  the   potential  for  economic  development,                                                               
particularly for rural areas.                                                                                                   
                                                                                                                                
3:58:52 PM                                                                                                                    
CHAIR REVAK announced invited testimony.                                                                                        
                                                                                                                                
3:59:12 PM                                                                                                                    
SUZY  CROSBY,  Owner,  Cottonwood Creek  Farm,  Wasilla,  Alaska,                                                               
presented the  PowerPoint, "Managing A Goat  Herd Share Operation                                                               
In  Alaska."  To   the  question  Why  Goats?   she  offered  her                                                               
perspective  that  they  are  a missing  link  between  pets  and                                                               
livestock. They  have personalities, are easy  to handle, produce                                                               
milk with minimal infrastructure, and the cleanup is simple.                                                                    
                                                                                                                                
She discussed the reasons for  participating in herd share listed                                                               
on slide 3. Herd share is a way  for goats to help pay their way;                                                               
it connects consumers to producers;  it accommodates the locavore                                                               
trend for locally grown or  produced food; it provides freedom of                                                               
choice in  food; and it  contributes to food security  in Alaska.                                                               
She pointed to the image of  empty cooler case shelves at a local                                                               
store in  March 2020  and compared  it to the  image at  her farm                                                               
that  same day  of full  refrigerator shelves  in her  downstairs                                                               
milking  room kitchen.  She said  the members  of her  herd share                                                               
operation  never experienced  food  insecurity  related to  their                                                               
weekly milk share.                                                                                                              
                                                                                                                                
4:01:07 PM                                                                                                                    
MS. CROSBY stated herd share is  the only legal way to access raw                                                               
milk in Alaska. It currently is  restricted to fluid milk, but HB
22 seeks  to expand this. It  is sustainable, community-supported                                                               
agriculture.  The producer  and herd  share member  enter into  a                                                               
trust  relationship where  the member  commits to  pick up  their                                                               
milk share on  a regular schedule. The basis of  herd share is to                                                               
know  your  farmer.  Inspections  can and  do  occur  every  time                                                               
someone  goes  to  a  farm   to  inquire  about  herd  share  and                                                               
thereafter every time they pick up their milk.                                                                                  
                                                                                                                                
She  described what  herd share  is not.  It is  not the  grocery                                                               
store.  There is  no purchase  associated with  picking up  one's                                                               
share  of  milk  on  a  regularly  scheduled  basis.  Value-added                                                               
products  are not  offered yet,  although  HB 22  seeks to  allow                                                               
cheese and  other value-added products  within the  definition of                                                               
the herd share relationship.                                                                                                    
                                                                                                                                
4:02:41 PM                                                                                                                    
MS. CROSBY directed  attention to slides 7-9  that address safety                                                               
and sanitation.  She emphasized the importance  of keeping things                                                               
clean and the milk cold.  Following these guiding principles will                                                               
ensure a  good, high-quality product.  She said  Cottonwood Creek                                                               
Farm  stresses  hand  washing  and draws  a  sharp  line  between                                                               
excrement  and food.  She  described  the image  on  slide 8  and                                                               
explained the milk  is accepted into the  stainless canisters and                                                               
then is  filtered into glass  jars that are immediately  put into                                                               
an  ice bath  in  the refrigerator.  Share  members are  educated                                                               
about the importance of keeping the product clean and cold.                                                                     
                                                                                                                                
She displayed  images of the  value-added products  queso fresco,                                                               
feta with sundried tomatoes and  calamata olives, and chevre, all                                                               
of which would  be legal components of a herd  share agreement if                                                               
HB  22 were  to  pass. She  reviewed  the benefits  of  HB 22  to                                                               
consumers listed on slide 13 that read as follows:                                                                              
                                                                                                                                
        • Freedom to make food choices without restriction                                                                      
       • Having a variety of dairy options besides milk                                                                         
        • Access to   digestible    products   for   those                                                                      
          intolerant to commercial dairy                                                                                        
        • Many consumers prefer ready-made vs. DIY                                                                              
        • Growing  preference     for    unique    locally                                                                      
          made/artisan food                                                                                                     
                                                                                                                                
MS.  CROSBY highlighted  the benefits  to  producers of  allowing                                                               
value-added products. The slide read as follows:                                                                                
                                                                                                                                
       • Allows for best usage of seasonal surplus milk                                                                         
        • Farmer can buy more hay per gallon of milk (goats                                                                     
          eat even during their dry period!)                                                                                    
        • Specialty products would still be available in                                                                        
          winter even when fluid milk production drops                                                                          
                                                                                                                                
MS.  CROSBY reviewed  the overall  benefits  of HB  22 listed  on                                                               
slide 15:                                                                                                                       
                                                                                                                                
         • Help strengthen Alaska's fragile food system                                                                         
         • Help prevent food waste                                                                                              
         • Expand Alaskan agriculture by offering a new                                                                         
           business opportunity for farmers                                                                                     
4:05:27 PM                                                                                                                    
SENATOR BISHOP joined the committee meeting.                                                                                    
                                                                                                                                
MS. CROSBY referenced Senator  Kiehl's forthcoming amendment that                                                               
adds annual  testing of  these raw milk  products the  results of                                                               
which  would  be  provided  to  the  department.  She  questioned                                                               
whether it  would add a  fiscal note, expressed concern  that the                                                               
data would  not be confidential,  and maintained  the legislature                                                               
should be  trying to make it  easier rather than harder  for herd                                                               
share to grow.                                                                                                                  
                                                                                                                                
4:07:43 PM                                                                                                                    
CHAIR REVAK  advised that  the committee  was not  considering an                                                               
amendment at this time.                                                                                                         
                                                                                                                                
4:08:13 PM                                                                                                                    
AMY PETTIT,  Executive Director,  Alaska Farmland  Trust, Palmer,                                                               
Alaska, began  the presentation  with a survey  of who  had eaten                                                               
today, whether it  was Alaska grown, and whether  they would have                                                               
liked to have  eaten more Alaska grown food  today. She expressed                                                               
satisfaction with the results.                                                                                                  
                                                                                                                                
MS. PETTIT stated the Alaska  Farmland Trust (AFT) is a 501(c)(3)                                                               
nonprofit  based  in  Palmer  that focuses  on  three  areas:  1)                                                               
protect agricultural  land; 2) promote the  agriculture industry;                                                               
and  3)  educate  consumers  and  Alaskans  generally  about  the                                                               
benefits of  the agriculture industry. She  directed attention to                                                               
the  next several  statistics slides  and  related the  following                                                               
information:                                                                                                                    
                                                                                                                                
   • According to the most recent agriculture census, the number                                                                
     of Farms in Alaska grew 30 percent from 2012 to 2017. In                                                                   
     the Lower 48, the number of farms decreased 3 percent                                                                      
     during the same time.                                                                                                      
   • Alaska leads the nation in the number of new farmers; 46                                                                   
     percent of Alaskan farmers have less than 10 years of                                                                      
     farming experience.                                                                                                        
   • The number of small farms with fewer than 10 acres in up 73                                                                
     percent in Alaska. Securing herd share in statute allows                                                                   
     for responsible growth over time.                                                                                          
   • In Alaska, 47 percent of farmers are women. The national                                                                   
     average is 27 percent of farmers are female.                                                                               
   • The value of food sold directly to consumers increased from                                                                
     $2.2 million in 2012 to $4.5 million in 2017.                                                                              
                                                                                                                                
MS.  PETTIT  challenged members  to  name  an industry  that  had                                                               
experienced this type of growth in five years.                                                                                  
                                                                                                                                
4:12:25 PM                                                                                                                    
MS. PETTIT advised  that HB 22 has been five  years in the making                                                               
and  it  enjoys  industry-wide   support.  It  is  about  access,                                                               
removing   barriers,   developing    economies,   and   expanding                                                               
production. She described this as  a bipartisan issue and Alaskan                                                               
agriculture  as  a renewable  resource  that  all members  should                                                               
support. She directed attention to  the various "free the cheese"                                                               
lapel  pins depicted  on slide  11 and  said she  would like  the                                                               
sponsor  to distribute  them to  the members  if the  bill passes                                                               
from committee today.                                                                                                           
                                                                                                                                
MS. PETTIT  concluded the presentation  displaying an image  of a                                                               
child  wearing an  Alaska  Grown sweatshirt  and  a statement  of                                                               
support  for the  bill and  the next  generation of  farmers. She                                                               
asked for a showing of hands  for those who want to allow greater                                                               
access to  local food today  and expressed hope the  cheese would                                                               
be freed this year.                                                                                                             
                                                                                                                                
4:14:56 PM                                                                                                                    
SENATOR  MICCICHE stated  support  for  HB 22  and  asked her  to                                                               
confirm that he would  not have to wear a free  the cheese pin if                                                               
it were to pass.                                                                                                                
                                                                                                                                
MS. PETTIT replied they are in  hot demand, and he could probably                                                               
auction it.                                                                                                                     
                                                                                                                                
4:15:27 PM                                                                                                                    
CHAIR  REVAK asked  Mr. Brouwer  to  explain the  changes in  the                                                               
Senate committee substitute (CS) for HB 22.                                                                                     
                                                                                                                                
4:15:47 PM                                                                                                                    
THATCHER BROUWER, Staff, Representative  Geran Tarr, Alaska State                                                               
Legislature,  Juneau,   Alaska,  presented  the   explanation  of                                                               
changes between version A.A and Version I of HB 22:                                                                             
                                                                                                                                
     Version  I adds  a new  subsection starting  on page  2                                                                    
     line  6 to  wit:  "(c) If  the  department suspects  or                                                                    
     determines  that there  is an  outbreak of  a foodborne                                                                    
     illness  that can  be traced  to a  facility where  raw                                                                    
     milk  or  raw milk  products  are  produced under  this                                                                    
     section,  the  department  may exercise  its  authority                                                                    
     under  AS 17.20.005(7)  and (8)  and  AS 17.20.200  for                                                                    
     that facility."                                                                                                            
                                                                                                                                
     Furthermore, on page 2 lines  17-28 a new Section 2 has                                                                    
     been  added  to  provide  clarifying  language  for  AS                                                                    
     17.20.200(a)  to wit:?"or  to a  facility, as  provided                                                                    
     under AS 17.20.015(c)."                                                                                                    
                                                                                                                                
     The  above language  was added  at the  request of  the                                                                    
     Department of Environmental  Conservation (DEC) and has                                                                    
     been  agreed  upon by  the  bill  sponsor. Adding  this                                                                    
     language  would allow  DEC  to respond  if  there is  a                                                                    
     foodborne illness  outbreak related  to herd  share raw                                                                    
     milk or raw  milk products. DEC believes  they would be                                                                    
     able  to  investigate  and  respond  to  any  outbreaks                                                                    
     utilizing their current  resources, and therefore would                                                                    
     not produce a fiscal note.                                                                                                 
                                                                                                                                
4:17:09 PM                                                                                                                    
CHAIR  REVAK listed  the individuals  available online  to answer                                                               
questions.                                                                                                                      
                                                                                                                                
4:17:35 PM                                                                                                                    
SENATOR KAWASAKI  asked how often  herd share  facilities conduct                                                               
internal tests for  things like salmonella, E  coli, and listeria                                                               
or if they wait to test until an illness outbreak.                                                                              
                                                                                                                                
MR. BROUWER  responded that the  last foodborne  illness outbreak                                                               
associated with  the raw  milk program was  in 2013.  He deferred                                                               
further response to Ms. Crosby.                                                                                                 
                                                                                                                                
4:18:24 PM                                                                                                                    
MS. CROSBY stated  that it was not industry standard  to test for                                                               
those bacteria.  She reported just  two outbreaks in the  last 20                                                               
years.  Both  were  in  the  same family,  and  both  related  to                                                               
Campylobacter   in  cattle.   She  proffered   her  belief   that                                                               
unsanitary conditions played a role.                                                                                            
                                                                                                                                
4:18:58 PM                                                                                                                    
CHAIR REVAK found no further  questions and solicited a motion to                                                               
adopt the Senate Committee Substitute.                                                                                          
                                                                                                                                
4:19:09 PM                                                                                                                    
SENATOR MICCICHE moved  to adopt the [Senate] CS for  HB 22, work                                                               
order 32-LS0212\I as the working document.                                                                                      
                                                                                                                                
4:19:22 PM                                                                                                                    
CHAIR REVAK found no objection and version I was adopted.                                                                       
                                                                                                                                
4:19:39 PM                                                                                                                    
CHAIR REVAK opened public testimony on HB 22.                                                                                   
                                                                                                                                
4:20:08 PM                                                                                                                    
MARLENE  WENGER, representing  self, Kenny  Lake, Alaska,  stated                                                               
that she  and her husband have  been farming in the  Copper River                                                               
Valley since 1985  and they started the Copper  River Valley Farm                                                               
Bureau 20 years ago. She stated  support for the sale of raw milk                                                               
products and shared  that she raises goats for a  hobby. They run                                                               
a  grocery/feed/hardware  store and  sell  as  many Alaska  grown                                                               
products as are  available. She noted that  Alaskan products were                                                               
available  during the  COVID-19  pandemic  whereas products  from                                                               
outside  Alaska were  not available.  She  expressed support  for                                                               
local agriculture and legalizing raw dairy products.                                                                            
                                                                                                                                
4:21:30 PM                                                                                                                    
LARAE SMITH, representing self,  Willow, Alaska, related that she                                                               
is currently a consumer of raw  dairy milk and will eventually be                                                               
a producer. She said she was  living in Idaho when COVID-19 broke                                                               
out and she  could not find milk  in the stores. She  was able to                                                               
access raw milk  and other local food, so she  did not go hungry.                                                               
She voiced support for supporting  local Alaska farmers including                                                               
dairy. It  is a huge  resource for  the state that  provides food                                                               
stability. She  spoke of  the health benefits  of raw  goats milk                                                               
and stated support for HB 22.                                                                                                   
                                                                                                                                
4:23:24 PM                                                                                                                    
AMY  SEITZ, Executive  Director,  Alaska  Farm Bureau,  Soldotna,                                                               
Alaska,   stated  the   Alaska  Farm   Bureau  is   a  grassroots                                                               
organization whose  mission is to improve  the economic wellbeing                                                               
and expansion  of agriculture to  enrich the quality of  life for                                                               
all  Alaskans. She  emphasized that  a robust  local food  system                                                               
will  enrich the  lives of  Alaskans through  improved access  to                                                               
food and less dependence on  a long and complicated supply chain.                                                               
It will also help diversify the economy.                                                                                        
                                                                                                                                
MS. SEITZ  reported that  Alaskans spend close  to $2  billion to                                                               
purchase food each  year, just 5 percent of which  is produced in                                                               
the  state.  She referenced  the  Agriculture  Census that  shows                                                               
Alaska farmers  are able  to expand.  She encouraged  support for                                                               
this  growth through  good policies.  HB 22  is designed  to help                                                               
farmers  succeed  and  provide  increased access  to  local  food                                                               
products  by  giving herd  share  owners  the option  to  produce                                                               
value-added  products  such as  cheese,  butter,  and kefir.  She                                                               
pointed out  that HB 22  not only supports farmers  and increases                                                               
food security,  it also  is a  freedom of  choice bill.  It gives                                                               
people  the option  to choose  raw milk  products. She  noted the                                                               
safety features  of knowing  the farmer,  the farm,  the animals,                                                               
the process,  and the cleanliness  of the system. The  herd share                                                               
program  also  has  built in  traceability.  She  encouraged  the                                                               
members to support HB 22 and moving it forward today.                                                                           
                                                                                                                                
4:25:51 PM                                                                                                                    
MILENA  SEVIGNY,  representing   self,  Wasilla,  Alaska,  stated                                                               
support for HB 22  and shared that she is a  herd share member in                                                               
Wasilla.  When  she moved  to  Wasilla  with  her family  it  was                                                               
important to  find a  source of  goat's milk for  her son  who is                                                               
allergic to  cow's milk.  She was relieved  to find  local, fresh                                                               
raw milk that  was dependable. She is able to  visit the farm any                                                               
time to  observe the  care and cleanliness  while milking  and to                                                               
get to  know the goats. Her  kids know their names  and ask whose                                                               
milk they are drinking.                                                                                                         
                                                                                                                                
MS. SEVIGNY  related she  works at  the Port  of Alaska  and sees                                                               
first hand how quickly the food  supply can get cut off. She said                                                               
the port infrastructure is deteriorating  and it was a miracle it                                                               
survived   the  recent   earthquake.  Another   concern  is   the                                                               
increasing number  of late ship  arrivals due to  stronger winter                                                               
storms. The depleted grocery store  shelves readily reflect these                                                               
late arrivals, she said. Produce  and dairy are particularly hard                                                               
hit. She  emphasized the importance  of increasing  food security                                                               
in Alaska and making local food supplies more accessible.                                                                       
                                                                                                                                
4:28:28 PM                                                                                                                    
CHAIR REVAK closed public testimony on HB 22.                                                                                   
                                                                                                                                
4:28:40 PM                                                                                                                    
SENATOR KIEHL moved Amendment 1, work order 32-LS0212\I.1.                                                                      
                                                                                                                                
                                                 32-LS0212\I.1                                                                  
                                                       Lemons                                                                   
                                                      5/17/21                                                                   
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                  BY SENATOR KIEHL                                                                     
        TO:  SCS HB 22(RES), Draft Version "I"                                                                                  
                                                                                                                                
                                                                                                                                
     Page 2, following line 5:                                                                                                  
          Insert a new subsection to read:                                                                                      
               "(c)  Under regulations adopted by the                                                                           
           department,  the   department  may   require  the                                                                    
           collective owners of  a milk-producing  animal to                                                                    
           test, not  more than  once a  year, a  shared raw                                                                    
           milk product of the milk-producing animal and                                                                        
          provide the test results to the department."                                                                          
                                                                                                                                
     Reletter the following subsections accordingly.                                                                            
                                                                                                                                
     Page 2, line 23:                                                                                                           
          Delete "AS 17.20.015(c)"                                                                                          
          Insert "AS 17.20.015(d)"                                                                                          
                                                                                                                                
4:28:50 PM                                                                                                                    
CHAIR REVAK objected for discussion purposes.                                                                                   
                                                                                                                                
SENATOR KIEHL stated the amendment  is about basic food safety in                                                               
the commercial arena. It would  require herd share owners to test                                                               
a  shared  raw milk  product  from  one of  their  milk-producing                                                               
animals  once a  year and  provide the  test results  to DEC.  He                                                               
noted the department  is able to specify what  product is tested.                                                               
Depending on  the product, the  herd share owner could  expect to                                                               
pay from  $17 to $70  for the test.  Since DEC only  receives the                                                               
results,  the amendment  is  not expected  to  generate a  fiscal                                                               
note.                                                                                                                           
                                                                                                                                
4:33:38 PM                                                                                                                    
CHAIR  REVAK noted  that these  are small  dairy operations,  and                                                               
asked the sponsor her position on Amendment 1.                                                                                  
                                                                                                                                
4:34:09 PM                                                                                                                    
REPRESENTATIVE  TARR confirmed  that these  are small  businesses                                                               
with animals  that number  in the dozens.  She stressed  that her                                                               
office  sought  input  from  DEC   and  annual  testing  was  not                                                               
mentioned. She said she appreciates  the intent, but she does not                                                               
believe the amendment is necessary at this time.                                                                                
                                                                                                                                
CHAIR REVAK commented on his  experience growing up and consuming                                                               
his neighbor's  raw milk cheese and  said he would like  to think                                                               
that these  small operations  would have  the tests  done without                                                               
the government telling them to do so.                                                                                           
                                                                                                                                
4:36:31 PM                                                                                                                    
CHAIR REVAK maintained his objection to Amendment 1.                                                                            
                                                                                                                                
SENATOR  KAWASAKI asked  if  herd share  owners  in remote  areas                                                               
would have ready access to the tests.                                                                                           
                                                                                                                                
4:36:55 PM                                                                                                                    
SENATOR  KIEHL replied,  depending on  the location,  the samples                                                               
may need to be mailed, which  is not unlike other food businesses                                                               
subject to inspection and testing.                                                                                              
                                                                                                                                
SENATOR KAWASAKI  expressed confidence that the  CS would provide                                                               
adequate protections and said the amendment was not necessary.                                                                  
                                                                                                                                
4:38:05 PM                                                                                                                    
SENATOR  KIEHL said  he still  views the  issue as  live, but  he                                                               
would withdraw Amendment 1.                                                                                                     
                                                                                                                                
SENATOR REVAK stated Amendment 1 has been withdrawn.                                                                            
                                                                                                                                
SENATOR  MICCICHE quipped  about  a future  goat  milk bill  from                                                               
Senator Kiehl.                                                                                                                  
                                                                                                                                
SENATOR STEVENS observed  that none of the free  the cheese lapel                                                               
pins  mentioned Kodiak  even  though that  community  has a  very                                                               
productive goat herd.                                                                                                           
                                                                                                                                
SENATOR REVAK solicited a motion.                                                                                               
                                                                                                                                
4:39:30 PM                                                                                                                    
SENATOR  MICCICHE moved  to report  [SCS HB  22,] work  order 32-                                                               
LS0212\I,  from  committee  with individual  recommendations  and                                                               
attached zero fiscal note(s).                                                                                                   
                                                                                                                                
4:39:45 PM                                                                                                                    
CHAIR  REVAK announced  that without  objection,  SCS HB  22(RES)                                                               
moved from the Senate Resources Standing Committee.                                                                             
                                                                                                                                
4:40:21 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair  Revak adjourned  the Senate  Resources Standing  Committee                                                               
meeting at 4:40 p.m.                                                                                                            

Document Name Date/Time Subjects
HB 22 CS SRES Work Draft v. I-5.16.21.pdf SRES 5/17/2021 3:30:00 PM
HB 22
HB 22 CS SRES Explanation of Changes version I dated 5.16.21.pdf SRES 5/17/2021 3:30:00 PM
HB 22
HB 22 Explanation of Changes Version A to Version A.A 5.7.21.pdf SRES 5/17/2021 3:30:00 PM
HB 22
HB 22 Research - Relevant Alaska Administrative Codes 2.22.21.pdf SRES 5/17/2021 3:30:00 PM
HB 22
HB 22 Research - Sample Herd Share Contract 3.7.19.pdf SRES 5/17/2021 3:30:00 PM
HB 22
HB 22 Explanation of Changes Version A to Version A.A 5.7.21.pdf SRES 5/17/2021 3:30:00 PM
HB 22
SJR 16 Back-up 5.14.21.pdf SRES 5/17/2021 3:30:00 PM
SJR 16
SJR 16 Sponsor Statement 5.14.21.pdf SRES 5/17/2021 3:30:00 PM
SJR 16
SJR 17 Back-up 5.14.21.pdf SRES 5/17/2021 3:30:00 PM
SJR 17
SJR 17 Sponsor Statement 5.14.21.pdf SRES 5/17/2021 3:30:00 PM
SJR 17
HB 22 Sponsor Statement 1.28.21.pdf SRES 5/17/2021 3:30:00 PM
HB 22
HB 22 Sectional Analysis 1.20.21.pdf SRES 5/17/2021 3:30:00 PM
HB 22
SJR 16 Fiscal note 5.17.21.pdf SRES 5/17/2021 3:30:00 PM
SJR 16
SJR 17 Fiscal note 5.17.21.pdf SRES 5/17/2021 3:30:00 PM
SJR 17