Legislature(2003 - 2004)
05/07/2003 09:00 AM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 226
An Act relating to the sale, offer for sale,
representation, and labeling of food or other
agricultural products as organic, and to the state
organic certification program; and providing for an
effective date.
Representative Stoltze introduced the bill noting that Co-
Chair Harris staff had done a lot of work on this issue
during the past two legislative sessions.
BARBARA BITNEY, STAFF, REPRESENTATIVE BILL STOLTZE, stated
that HB 226 was a measure to bring Alaska in line with the
federal definition of "organic". In 2001, the final rule
for the federal definition of "organic" was adopted; the law
allowed for a transition period from mid-2001 to October,
2002, giving states 14 months to come into line with the
federal definition of organic. HB 432 was introduced in
April 2002 with the language needed to make the change. It
nd
did not pass before the 22 Legislative session adjourned.
HB 226 is back this year, making it a very simple measure to
bring the State of Alaska's definition of organic
agricultural products in line with the federal definition.
It will create an Alaska organic certification program
providing in-state certification for organic agricultural
producers, processors and handlers.
At this time, operators are paying to fly certification
specialists to Alaska whose fees may be as high as $1,500 to
$3,000 dollars to verify Alaskan operations comply with the
federal organic standards. With passage of HB 226,
qualified inspectors would complete the inspection process,
with the final certification process being performed by a
designated State official.
Representative Stoltze voiced concern with the fiscal note.
He was not sure that the amount was justified. He noted
that there is a large presence of United States Drug
Administration (USDA) officials, whom the State should be
able to rely upon for technical assistance. Whatever the
decision of the Committee regarding the note, Representative
Stoltze indicated that he wanted to get the bill through the
House. He added that Senator Green was in support of the
bill on the Senate side and that it was her intent to "trim"
the note.
Co-Chair Williams asked the responsibilities associated with
the requested position. Ms. Bitney explained that the State
would continue to bring outside inspectors to Alaska. The
State will need to review all documentation and sign off on
the certification for it. It would be a ½ time position.
She believed that the fiscal note was minimal.
Co-Chair Harris noted that he would like to zero out the
note. He asked if a part time person would be hired or
would they be using someone already in the Department. Ms.
Bitney responded that it would be someone within the
Department.
Co-Chair Harris asked if there was a program within the
Department where a fee could be associated with the costs to
pay that amount. Ms. Bitney responded that was a
possibility that had not yet been explored.
Co-Chair Harris interjected that through regulations, the
Department could impose a fee for the users. He proposed
that the Committee modify the fiscal note, taking the $37
thousand dollars from general funds and put it under $37
thousand dollars from program receipts, which would zero out
the general fund draw.
Representative Stoltze commented that it had been difficult
to get a "straight answer" from the federal bureaucracy.
Co-Chair Williams encouraged that Co-Chair Harris work with
Representative Stoltze and the Department on the fiscal
note. Co-Chair Harris advised that it would be appropriate
to move the bill out with the fiscal note changed and
placing the $37 thousand dollars under general fund program
receipts.
Co-Chair Harris MOVED that MOTION. There being NO
OBJECTION, the fiscal note was revised.
Representative Hawker inquired if that change would need to
be reflected in the bill.
RIVER BEAN, (TESTIFIED VIA TELECONFERENCE), PRESIDENT,
ALASKA ORGANIC ASSOCIATION, PALMER, commented that in the
past, his company had been certifying organic farms in the
State of Alaska. Under the organic program rule, they could
no longer do that. The federal government took that over as
of October 22, 2002. The State can no longer use the word
"organic" without certification, which affects a large
number of farmers in the State. These farmers cannot afford
to go to the State of Washington to certify. On behalf of
all the organic farmers in the State, Mr. Bean requested
support for coming in line with the federal government
standards so that Alaska can call their produce "organic".
Mr. Bean agreed to pay a user fee to maintain the organic
status.
Representative Croft asked about the federal criteria and if
each state had to separately meet the criteria. Mr. Bean
replied that anyone that applies for accreditation can
certify. The Alaska Organic Association cannot afford to be
accredited with the federal government. There are over 30
states that have state programs and a number of private
companies that are accredited with the federal government.
The federal government does not provide the certification
but rather the accreditation.
Representative Croft asked if that needed to be done either
through private industry or through the government. Mr.
Bean stated that was correct. He reiterated that their
association couldn't afford to do it on their own.
GERALD DEVILBISS, (TESTIFIED VIA TELECONFERENCE), ALASKA
ORGANIC ASSOCIATION, WOLVERINE FARMS, PALMER, encouraged
Committee members to pass the bill. He supported
implementing a user fee to help cover costs. He mentioned
that there is a big part of Alaska agriculture that is
getting "swept under the rug". He voiced his appreciation
to Representative Stoltze for bringing this issue to the
State Legislature's awareness.
SHANE HERR, (TESTIFIED VIA TELECONFERENCE), ALASKA ORGANIC
ASSOCIATION, ORGANIC FARMER, WOLVERINE FARMS, PALMER,
encouraged passage of the bill. He stressed it would be
advantageous to the State of Alaska. Mr. Herr commented
that tourism capitalizes on Alaskan grown products. He
believed that there could be federal funding available to
help the State with the receipts. The farmers cannot
support the entire tab but would be supportive of a user
fee.
Representative Stoltze voiced his appreciation for those
people that testified. He recognized how labor intensive
the work they do is.
Representative Stoltze MOVED to report HB 226 out of
Committee with individual recommendations and with the new
adjusted fiscal note. There being NO OBJECTION, it was so
ordered.
HB 226 was reported out of Committee with "do pass"
recommendation and with a revised fiscal note by the
Department of Natural Resources.
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