SENATE RESOURCES COMMITTEE April 24, 1995 3:38 p.m. MEMBERS PRESENT Senator Loren Leman, Chairman Senator Steve Frank Senator Rick Halford Senator Robin Taylor Senator Lyman Hoffman COMMITTEE MEMBERS ABSENT Senator Drue Pearce, Vice Chairman Senator Georgianna Lincoln COMMITTEE CALENDAR CS FOR HOUSE JOINT RESOLUTION NO. 23(FSH) Relating to the North Pacific Fishery Management Council's inshore/offshore allocations and the Western Alaska Community Development Quota Program. CS FOR HOUSE BILL NO. 225(RES) "An Act authorizing the commissioner of fish and game to issue permits to possess, import, or export elephants; and providing for an effective date." CS FOR HOUSE BILL NO. 208(FSH) "An Act relating to seafood processing permits and hazard analysis critical control point plans; relating to seafood processing plans of operation and quality assurance plans; and providing for an effective date." SRES - 4/24/95 HB 197 (MINERAL EXPLORATION INCENTIVE CREDITS) was scheduled, but not taken up on this date. PREVIOUS SENATE COMMITTEE ACTION HJR 23 - No previous senate committee action. HB 225 - No previous senate committee action. HB 208 - No previous senate committee action. WITNESS REGISTER Representative Alan Austerman State Capitol, Juneau, Alaska, 99801-1182¶465-2487 POSITION STATEMENT: prime sponsor of HJR 23 Kim Metcalfe-Helmar, Special Assistant to the Commissioner Department of Community & Regional Affairs P.O. Box 112100, Juneau, AK 99811-2100¶465-4898 POSITION STATEMENT: supports HJR 23 Kristie Leaf, Aide to Representative Kohring State Capitol, Juneau, Alaska, 99801-1182¶465-2186 POSITION STATEMENT: prime sponsor of HB 225 Geron Bruce, Legislative Liaison Department of Fish & Game P.O. Box 25526, Juneau, AK 99802-5526¶465-6143 POSITION STATEMENT: supports HB 225 Ed Grasser Alaska Outdoor Council Box 22394, Juneau, AK 99802¶463-3830 POSITION STATEMENT: testified on HB 225 Cheryl Sutton, Aide to Representative Moses State Capitol, Juneau, Alaska, 99801-1182¶465-6848 POSITION STATEMENT: prime sponsor of HB 208 Janice Adair, Regional Administrator Department of Environmental Conservation 3601 C St., Ste. 1334, Anchorage, AK 99503-5948¶563-6529 POSITION STATEMENT: supports HB 208 Doug Donegan, Vice President Trident Seafood Corporation 5011 Jewel Lake Road, Anchorage, AK ¶243-3166 POSITION STATEMENT: supports HB 208 (testified from Yakutat) Greg Favretto FAVCO P.O. Box 190968, Anchorage, AK 99519¶278-1525 POSITION STATEMENT: supports HB 208 Herb Eckmanns Alaska Sausage Co. 2914 Arctic Blvd., Anchorage, AK 99503¶562-3636 POSITION STATEMENT: supports HB 208 Harold Thompson, President Sitka Sound Seafoods 329 Katlian St., Sitka, AK 99835¶747-6662 POSITION STATEMENT: supports HB 208 Dick Stockard Tyson Seafood P.O. Box 646, Kodiak, AK 99615¶486-3266 POSITION STATEMENT: supports HB 208 Hap Symmonds, OBSI P.O. Box 548, Cordova, AK 99574¶424-7171 POSITION STATEMENT: supports HB 208 Kit Ballentine, Section Chief Environmental Sanitation Development Section Department of Environmental Conservation 410 Willoughby Ave., Rm. 105, Juneau, AK 99801-1795¶465-5280 POSITION STATEMENT: testified on HB 208 Colin Bramhall Norquest P.O. Box 260, Cordova, AK 99574¶424-5390 POSITION STATEMENT: supports HB 208 Sylvia Lang Cannery Row P.O. Box 120, Cordova, AK 99574¶424-5920 POSITION STATEMENT: supports HB 208 Gerald Masolini Eyak Packing P.O. Box 1131, Cordova, AK 99574¶424-5300 POSITION STATEMENT: supports HB 208 ACTION NARRATIVE TAPE 95-48, SIDE A Number 001 CHAIRMAN LEMAN called the Senate Resources Committee meeting to order at 3:38 p.m. SRES - 4/24/95 HJR 23 COMMUNITY DEVELOPMENT FISHING QUOTAS CHAIRMAN LEMAN brought up HJR 23 as the first order of business before the Senate Resources Committee. The chairman called the prime sponsor to testify. Number 015 REPRESENTATIVE ALAN AUSTERMAN, prime sponsor of HJR 23, relayed information contained in the sponsor statement. HJR 23 supports the reauthorization of the in-shore/off-shore Community Development Quota (CDQ) program. Number 090 KIM METCALFE-HELMAR, Special Assistant to the Commissioner, Department of Community & Regional Affairs, stated the department supports HJR 23. The CDQ program has been an enormous success in Western Alaska. Ms. Metcalfe-Helmar provided committee members with copies of a draft report by DC&RA, Economic Impacts of the Pollack CDQ Program. Number 125 CHAIRMAN LEMAN asked Ms. Metcalfe-Helmar if there has been any opposition to the CDQ program. Number 130 MS. METCALFE-HELMAR responded that the only opposition she is aware of relates directly to the crab allocation. She knows some people are unhappy with the CDQ program, but they haven't heard any opposition in testimony. Number 178 CHAIRMAN LEMAN announced that HJR 23 would be set aside until the committee got a quorum. SRES - 4/24/95 HB 225 ELEPHANT PERMIT CHAIRMAN LEMAN brought up HB 225 as the next order of business before the Senate Resources Committee. The chairman called the sponsor's representative to testify. Number 187 KRISTIE LEAF, Aide to Representative Kohring, prime sponsor of HB 225, relayed information contained in the sponsor statement. HB 225 would allow for permitting of elephants for entertainment and exhibition. The Department of Fish & Game is supportive of the bill, and it has a zero fiscal note. Number 221 CHAIRMAN LEMAN asked how the elephants at the Alaska Zoo in Anchorage are permitted. Are they permitted under an education permit? MS. LEAF replied they are permitted under an annually renewed education permit. The Board of Game has directed ADF&G to set up a temporary commercial permit, so that circus elephants temporarily in the state can get commercial permits, which are more applicable to that situation than educational permits. Ms. Leaf thinks zoo elephants could be permitted under an education or a commercial permit. That would be up to the department. Currently there are three elephants in the state of which Ms. Leaf is aware. Number 240 GERON BRUCE, Legislative Liaison, Department of Fish & Game, stated ADF&G does support the bill and has worked with the sponsor in drafting the bill. Number 250 EDDIE GRASSER, former member of the Board of Game, stated that when he was on the board, the board hoped the legislature would deal with the lack of a permitting process regarding the situation which was the impetus for HB 225. This bill solves one problem, but the board supported giving the commissioner greater discretion in a new permitting process, so that the board would not have to get enmeshed in these aimless battles. These types of problems are time consuming and unproductive, as far as the general purpose of the board is concerned. Mr. Grasser asserted that at the time he was on the Board of Game, that was the viewpoint of most members. CHAIRMAN LEMAN announced that HB 225 would be set aside until the committee got a quorum. SRES - 4/24/95 HB 208 SEAFOOD PROCESSING STANDARDS CHAIRMAN LEMAN brought up HB 208 as the next order of business before the Senate Resources Committee. The chairman called the sponsor's representative to testify. Number 267 CHERYL SUTTON, Aide to Representative Moses, prime sponsor of HB 208, relayed information contained in the sponsor statement. HB 208 will coordinate state regulations with federally mandated FDA (Food & Drug Administration) regulations for plans of operation for seafood processing facilities. Ms. Sutton submitted a partial list of supporters of HB 208 to the committee. HB 208 has a zero fiscal note. Ms. Sutton informed the committee that she has received unanimous support on the bill from everyone who has contacted her about it. Number 322 JANICE ADAIR, Department of Environmental Conservation, testifying from Anchorage, stated the department worked with the sponsor of HB 208 on drafting the bill. DEC supports HB 208. Number 335 DOUG DONEGAN, Vice President of Trident Seafoods, testifying from Yakutat, stated Trident Seafoods strongly supports HB 208. [Teleconference transmission is poor during Mr. Donegan's testimony.] Number 353 GREG FAVRETTO, FAVCO, testifying from Anchorage, stated he supports HB 208. Mr. Favretto thinks HB 208 will be helpful to the seafood industry. Number 360 HERB ECKMANNS, Alaska Sausage Co., testifying from Anchorage, stated he supports HB 208. HAROLD THOMPSON, President of Sitka Sound Seafoods, testifying from Sitka, stated SSS supports HB 208. DICK STOCKARD, Regional Manager for Tyson Seafoods, testifying from Kodiak, stated Tyson Seafoods supports HB 208. Number 370 HAP SYMMONDS, OBSI, testifying from Cordova, states OBSI supports HB 208. He thinks it is good to see the state recognize that simplification of regulations is needed. CHAIRMAN LEMAN asked Ms. Adair if DEC will be monitoring when federal regulations will go into effect, so the state can implement concurrent regulations. Number 380 MS. ADAIR responded that DEC is in almost daily contact with the FDA, and will be monitoring federal implementation of regulations. CHAIRMAN LEMAN asked when HB 208 will go into effect. MS. ADAIR replied it will not be in effect for this summer's fishing season. It is expected that the regulations will be published approximately by the end of this calendar year, and the implementation process will take about a year. CHAIRMAN LEMAN asked how that time frame will affect state implementation. MS. ADAIR responded the state will have to adopt the federal regulations by referencing. It is DEC's intent to do so as quickly as possible. Number 394 SENATOR TAYLOR asked if Alaska is going to a lower level, or a different standard, to be more compatible with what the rest of the world is doing. Number 399 MS. ADAIR responded that the department does not see HB 208 as a roll-back of the requirements, but as a change in focus. HB 208 will be a proactive tool in ensuring safe seafood products. Number 420 KIT BALLENTINE, Section Chief, Environmental Sanitation Development Section, Department of Environmental Conservation, clarified that the existing plan of operation focuses on food safety, sanitation, and economic fraud. HB 208 would separate critical control points in seafood processing. Processors will still have to keep a clean plant, but they will not have to provide written plans to DEC. It is not a diminution of standards; it will streamline the process for processors. Number 437 SENATOR TAYLOR is troubled to hear that Alaska's standards will be higher than those of the FDA. MS. BALLENTINE responded that our standards will be exactly the same. Number 453 COLIN BRAMHALL, Norquest Seafoods, testifying from Cordova, stated Norquest supports HB 208. Number 457 SYLVIA LANG, Owner of Cannery Row, testifying from Cordova, stated she supports HB 208. The present process is overwhelming and onerous. CHAIRMAN LEMAN asked Ms. Lang what volume of seafood her company processed last year. Number 468 MS. LANG replied that her company processed almost 3 million pounds last year. CHAIRMAN LEMAN noted that the committee just passed a bill out of committee Friday which would help companies that process under 30,000 pounds per year. MS. LANG responded that her company also encourages direct marketing of seafood by fishermen. Number 481 GERALD MASOLINI, Owner of Eyak Packing Co., testifying from Cordova, stated he supports HB 208. He has been canning salmon since 1983, and every year there is more paperwork. It seems now as though he spends a good deal of his time doing paperwork, before he can begin to do the real work. Number 492 SENATOR TAYLOR noted that he has yet to hear someone who is not complaining about the amount of paperwork. He thinks we should go further than HB 208 to reduce the burden placed on the seafood processing industry. Number 519 SENATOR FRANK wishes there was more support for the regulatory problems the mining industry faces. Number 547 CHAIRMAN LEMAN called an at ease at 4:21 p.m., so the committee can get a quorum. CHAIRMAN LEMAN called the Senate Resources Committee back to order at 4:35 p.m. SENATOR HALFORD made a motion to discharge HB 208 from the Senate Resources Committee with individual recommendations. CHAIRMAN LEMAN, hearing no objection, stated HB 208 was discharged from committee with individual recommendations. SRES - 4/24/95 Number 555 HB 225 ELEPHANT PERMIT CHAIRMAN LEMAN brought HB 225 back before the Senate Resources Committee. SENATOR HALFORD made a motion to discharge HB 225 from the Senate Resources Committee with individual recommendations. CHAIRMAN LEMAN, hearing no objection, stated HB 225 was discharged from committee with individual recommendations. SRES - 4/24/95 Number 558 HJR 23 COMMUNITY DEVELOPMENT FISHING QUOTAS CHAIRMAN LEMAN brought HJR 23 back before the Senate Resources Committee. SENATOR HALFORD made a motion to discharge HJR 23 from the Senate Resources Committee with individual recommendations. CHAIRMAN LEMAN, hearing no objection, stated HJR 23 was discharged from committee with individual recommendations. CHAIRMAN LEMAN adjourned the Senate Resources Committee meeting at 4:37 p.m.