03/17/2017 01:00 PM House RESOURCES

          HB 46-PROCURE AK FISH/AG PROD.; ALASKA GROWN                                                                      
                                                                                                                                
3:00:53 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR announced that the  next order of business would be                                                               
HOUSE BILL  NO. 46, "An Act  relating to the state  and municipal                                                               
procurement  preferences for  agricultural products  harvested in                                                               
the state  and fisheries products  harvested or processed  in the                                                               
state; relating  to the  sale of milk,  milk products,  raw milk,                                                               
and raw milk products; and providing for an effective date."                                                                    
                                                                                                                                
3:01:00 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR opened public testimony on HB 46.                                                                                 
                                                                                                                                
3:01:28 PM                                                                                                                    
                                                                                                                                
JOHN  ANDERSON expressed  appreciation to  the committee  for its                                                               
interest  in agriculture.   He  said  he had  concerns about  the                                                               
proposed  legislation.    He  related  that  he  is  a  livestock                                                               
producer and  "HB 46 is a  good attempt at a  futile process that                                                               
someone like  myself can't  touch."  He  stated that  while there                                                               
may  be a  small trickledown  effect, [the  proposed legislation]                                                               
would  benefit   just  a   few  farmers.     He   explained  that                                                               
unfortunately he could not touch  a price point anywhere close to                                                               
15 percent.                                                                                                                     
                                                                                                                                
MR. ANDERSON  said another issue  is in determining what  will be                                                               
considered "Alaska  Grown."  He questioned  whether animals would                                                               
be allowed to  be brought to Alaska and slaughtered  the next day                                                               
and qualify  for marketing at  the 15  percent increase or  if it                                                               
will be held to the high  standard of Alaska Grown, which is that                                                               
the animal [has been  in Alaska] for 51 percent of  its life.  He                                                               
predicted that if imported animals  are "allowed to be considered                                                               
to  this standard  without any  check,"  then "certain  producers                                                               
will  take advantage  of bottom  floor  cattle and  hog prices  -                                                               
especially in  Canada right now  - and  walk away making  lots of                                                               
quick bucks and  having an almost zero impact in  our state."  He                                                               
indicated that those  producers would not be buying  grain or hay                                                               
in substantial amounts;  therefore, he questioned the  worth of a                                                               
program that of which people can take advantage.                                                                                
                                                                                                                                
MR. ANDERSON  mentioned the (indisc.),  on which he is  a member,                                                               
is  thriving; however,  he cautioned  the committee  that he  has                                                               
witnessed  many instances  of  disregard for  the  rules and  the                                                               
intentional  mislabeling of  products.   He said  he has  brought                                                               
many of  his concerns to  the Division of Agriculture,  and "they                                                               
do not feel they can protect  the logo anymore."  He said because                                                               
the  division  will  no longer  investigate  "wrongdoings,"  some                                                               
[producers]  have  started  new  labels, such  as  "Golden  Heart                                                               
Grown" in the Interior and "Grow Palmer" in Palmer, Alaska.                                                                     
                                                                                                                                
CO-CHAIR TARR, as  prime sponsor of HB 46,  informed Mr. Anderson                                                               
that under  current statute,  the percentage is  7 percent.   She                                                               
surmised that  if the [proposed]  15 percent would not  allow Mr.                                                               
Anderson an  opportunity, then the  existing 7  percent certainly                                                               
would not,  because it  is over  50 percent less.   She  said she                                                               
understands   that  while   the   proposed  change   is  a   "big                                                               
improvement," it  will not accommodate  everyone.   She indicated                                                               
her understanding of the challenges  of being a small producer of                                                               
livestock or produce.   She explained her  commitment to continue                                                               
working beyond the  opportunity proposed under HB  46 "to support                                                               
... things that will allow  more opportunity for a small producer                                                               
like yourself."  She indicated  that the reason she supported the                                                               
Mt. McKinley Meat Processing Facility  was so that people such as                                                               
Mr. Anderson could have the opportunity to get into the market.                                                                 
                                                                                                                                
CO-CHAIR TARR, regarding  the issue of "Alaska  Grown," said, "We                                                               
would anticipate  using the same  Alaska Grown rule  and standard                                                               
that's  in place  now."   Notwithstanding that,  she acknowledged                                                               
the concern raised by Mr. Anderson regarding imported animals.                                                                  
                                                                                                                                
3:06:31 PM                                                                                                                    
                                                                                                                                
DAVID OTNESS  testified that  he liked  the sentiment  behind [HB
] and  wants Alaska  to develop more  intrastate commerce.   He                                                               
said he would hold back  from offering further testimony until he                                                               
got "up to speed" on [the proposed legislation].                                                                                
                                                                                                                                
3:07:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PARISH questioned whether  the statement made by a                                                               
previous  testifier -  that animals  could be  imported one  day,                                                               
slaughtered  the  next,  and  marketed  as  Alaska  Grown  -  was                                                               
accurate.                                                                                                                       
                                                                                                                                
3:07:56 PM                                                                                                                    
                                                                                                                                
JOHANNA   HERRON,   Development   Specialist  II,   Division   of                                                               
Agriculture,  Department of  Natural  Resources (DNR),  responded                                                               
that that is not current  practice.  She said, "The certification                                                               
policy that was passed in  previous years states clearly ... that                                                               
livestock must  be raised 51 percent  of its life or  more in the                                                               
state to be marketed as Alaska  Grown."  She said there have been                                                               
a couple instances  where "that has been  challenged and concerns                                                               
have  been raised,  and  ... we  investigate ...  as  we hear  of                                                               
those."                                                                                                                         
                                                                                                                                
3:08:35 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR, after ascertaining that  there was no one else who                                                               
wished  to  testify,  closed  public  testimony on  HB  46.    In                                                               
response to  Representative Rauscher,  she stated her  intent for                                                               
the committee to move HB 46 that day.                                                                                           
                                                                                                                                
REPRESENTATIVE RAUSCHER  noted that his district  reaches Palmer,                                                               
Glennallen, Delta, and Valdez, and  it contains a lot of cultural                                                               
land  and livestock.   He  requested HB  46 be  held for  another                                                               
hearing so  that he would have  time to speak to  his constituent                                                               
farmers.                                                                                                                        
                                                                                                                                
3:10:15 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR said  she does not mind honoring  that request, but                                                               
she indicated it could result in  the committee having to meet in                                                               
the evenings to  catch up on its workload.   She pointed out that                                                               
she  has  been working  on  "this  particular product  preference                                                               
statute"  since 2014  and has  presented  information at  several                                                               
"farm  bureau  meetings,"  working   closely  with  many  of  the                                                               
individuals in Representative Rauscher's district.                                                                              
                                                                                                                                
3:11:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER  expressed his appreciation for  the work                                                               
that has  been done  thus far,  and he  maintained his  desire to                                                               
have more time with HB 46.                                                                                                      
                                                                                                                                
3:11:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WESTLAKE suggested  that Representative  Rauscher                                                               
could talk to someone within  the Division of Agriculture who may                                                               
be stationed in Representative Rauscher's district.                                                                             
                                                                                                                                
3:12:10 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  TARR expressed  her hope  that Representative  Rauscher                                                               
could get  the answers  he needed either  from division  staff or                                                               
his constituents.                                                                                                               
                                                                                                                                
3:13:03 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR announced that HB 46 was held over.