03/18/2008 02:50 PM House FIN

CS for HOUSE BILL NO. 257                                                                                                     
                                                                                                                                
     "An Act transferring duties  relating to aquatic farming                                                                   
     and hatchery operations from  the Department of Fish and                                                                   
     Game   to   the   Department   of   Natural   Resources,                                                                   
     eliminating  certain permit  requirements applicable  to                                                                   
     aquatic farming  and hatchery operations,  and directing                                                                   
     the Department  of Natural  Resources to administer  and                                                                   
     supervise  promotional and  marketing  work for  aquatic                                                                   
     farm products; and providing for an effective date."                                                                       
                                                                                                                                
JOHN  BITNEY, STAFF,  REPRESENTATIVE  JOHN HARRIS,  presented                                                                   
the  bill overview  stating that  an earlier  version of  the                                                                   
bill planned for  the management transfer of  aquatic farming                                                                   
from the  Department of  Fish and Game  to the Department  of                                                                   
Natural  Resources. He  reported that  this transfer  was not                                                                   
supported by the Administration  or the bill's sponsors. When                                                                   
the bill  left the House  Fisheries Committee it  was changed                                                                   
into the  present bill. The  bill now allows  aquatic farming                                                                   
products  to  qualify,  within   the  Department  of  Natural                                                                   
Resources, for  the "Alaska Grown" promotional  and marketing                                                                   
program. Mr. Bitney referred to  the attached Amendment where                                                                   
he would  like the  Committee to  consider removing  the word                                                                   
"hatchery."  He also mentioned  one fiscal  note attached  to                                                                   
the bill.                                                                                                                       
                                                                                                                                
3:32:38 PM                                                                                                                    
                                                                                                                                
ROGER  PAINTER,  PRESIDENT,  ALASKA   SHELLFISH  ASSOCIATION,                                                                   
remarked of the bill's necessity  because earlier legislation                                                                   
inadvertently  changed the  definitions in  the Statutes  and                                                                   
has prevented  aquatic farm products from qualifying  for the                                                                   
Alaska Grown  label. He mentioned  that there  were currently                                                                   
thirteen  grandfathered  farms  using  this  label  when  the                                                                   
definition problem  was discovered.  The rest of  the farmers                                                                   
would also like  to use the label. Vice-Chair  Stoltze wanted                                                                   
reassurance that  costs were not  being transferred  from the                                                                   
fish   industry  to   the  Department   of  Agriculture   for                                                                   
inspections or other required work.                                                                                             
                                                                                                                                
3:35:41 PM                                                                                                                    
                                                                                                                                
Mr.  Painter responded  that  aquatic  farms  do qualify  for                                                                   
agriculture  assistance and  a number  of aquatic farms  have                                                                   
received  loans from the  Farms Service  Agency. He  remarked                                                                   
that aquatic  farmers  are subject to  regulations under  the                                                                   
Food   and  Drug   Administration  and   the  Department   of                                                                   
Environmental  Conservation.  Vice-Chair  Stoltze  asked  for                                                                   
assurance  that  the aquatic  farmers  would  not impose  any                                                                   
additional costs or services on other departments.                                                                              
                                                                                                                                
3:37:47 PM                                                                                                                    
                                                                                                                                
Mr.  Painter responded  that  no  additional  costs would  be                                                                   
incurred  as farmers  who currently  use  the "Alaska  Grown"                                                                   
label only  use the  label and  require no special  promotion                                                                   
from the department.                                                                                                            
                                                                                                                                
3:38:32 PM                                                                                                                    
                                                                                                                                
Representative Thomas MOVED to ADOPT Amendment 1:                                                                               
                                                                                                                                
     Page 2, line 2                                                                                                             
          After "farm"                                                                                                          
          Delete "and hatchery"                                                                                                 
                                                                                                                                
     Page 2, line 31                                                                                                            
          After "farms"                                                                                                         
          Delete "and hatcheries"                                                                                               
                                                                                                                                
                                                                                                                                
Co-Chair Meyer OBJECTED for discussion.                                                                                         
                                                                                                                                
3:39:48 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  WITHDREW  his   OBJECTION.  There  being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Vice-Chair Stoltze  remarked that  the Department  of Natural                                                                   
Resources  fiscal  note contradicts  Mr.  Painter's  comments                                                                   
that  the aquatic  farmers  do not  expect  to receive  other                                                                   
benefits.                                                                                                                       
                                                                                                                                
3:41:40 PM                                                                                                                    
                                                                                                                                
Mr. Bitney  discussed the  fiscal note  for $11,500.  He said                                                                   
$5000 was  for travel to visit  aquatic sites and  the $6,500                                                                   
was for marketing or promotional items.                                                                                         
                                                                                                                                
3:44:25 PM                                                                                                                    
                                                                                                                                
FRANCI   HAVEMEISTER,  DIRECTOR,   DIVISION  OF   AGRICULTURE                                                                   
(Testified via  teleconference), indicated that  the division                                                                   
is willing  to cooperate  with the  Division of Land,  Mining                                                                   
and Water, the  Department of Environmental  Conservation and                                                                   
Department of  Fish and  Game to get  this program  under the                                                                   
marketing division.                                                                                                             
                                                                                                                                
3:45:19 PM                                                                                                                    
                                                                                                                                
Representative Kelly  MOVED TO REPORT  CSHB 257 (FIN)  out of                                                                   
committee with the accompanying  fiscal notes. There being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CSHB  257 (FIN)  was REPORTED  out  of Committee  with a  "do                                                                   
pass" recommendation  and new fiscal notes by  the Department                                                                   
of  Natural  Resources  and House  Finance  committee  and  a                                                                   
previously published fiscal note  by the Department of Fish &                                                                   
Game.                                                                                                                           
                                                                                                                                
3:46:37 PM