03/22/2010 03:15 PM House LABOR & COMMERCE

          HB 383-TRANSFER CERTAIN DNR DUTIES TO DCCED                                                                       
                                                                                                                                
3:51:48 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced that the  final order of business would be,                                                               
HOUSE BILL NO. 383, "An Act  relating to the powers and duties of                                                               
the  Department  of  Natural  Resources,  including  transferring                                                               
certain  powers  and  duties  to   the  Department  of  Commerce,                                                               
Community, and Economic Development."                                                                                           
                                                                                                                                
CHAIR  OLSON  stated  the  committee  previously  heard  HB  383.                                                               
Public testimony was previously taken and was closed.                                                                           
                                                                                                                                
3:52:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  explained that he spent  considerable time                                                               
working with the  Department of Natural Resources.   He expressed                                                               
concern  with the  department's  oversight over  the Division  of                                                               
Agriculture.    He  expressed   concerns  with  the  Agricultural                                                               
Revolving  Loan Fund  (ARLF) being  depleted  to cover  operating                                                               
costs,  which  should  be  funded through  the  department.    He                                                               
expressed further  concern that  people must be  actively engaged                                                               
in agriculture  to have a complete  understanding of agriculture,                                                               
including the cyclical  nature of farming.  Managers  of the ARLF                                                               
must  have an  understanding of  the plight  of farmers  and work                                                               
with them.   He asked  for clarification  on the transfer  of the                                                               
banking function of ARLF.                                                                                                       
                                                                                                                                
REPRESENTATIVE JAY RAMRAS, Alaska  State Legislature, stated that                                                               
under  the bill  the banking  function  would stay  the same  for                                                               
ARLF.                                                                                                                           
                                                                                                                                
MARGARET DOWLING, Staff, Representative  Jay Ramras, Alaska State                                                               
Legislature,  on  behalf of  the  prime  sponsor, explained  that                                                               
under  HB  383, the  structure  of  the  Board of  Agriculture  &                                                               
Conservation (BAC) and ARLF would stay  the same.  At the time of                                                               
transfer  to the  Department of  Commerce, Community,  & Economic                                                               
Development (DCCED),  the department would make  a decision where                                                               
the BAC and  ARLF would be located.  She  detailed that the board                                                               
members,  the  statutory  language  that enables  the  board  and                                                               
provides authority remains  the same.  The structure  of the ARLF                                                               
remains  same.   The  bill  does  not  make  any changes  to  the                                                               
Division of  Agriculture, but changes the  departmental authority                                                               
to the DCCED.                                                                                                                   
                                                                                                                                
3:56:50 PM                                                                                                                    
                                                                                                                                
MS.  DOWLING, in  response  to  Representative Neuman,  explained                                                               
that nothing  would change  with respect to  the function  of the                                                               
Division of  Agriculture.  This bill  does not affect any  of the                                                               
function, but  would just  replace the  DNR in  Title 3  with the                                                               
DCCED.  The functions would stay the same, she stated.                                                                          
                                                                                                                                
3:57:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAMRAS clarified that the  intent is not to tinker                                                               
with the  ALRF or  the method of  funding farmers,  ranchers, and                                                               
dairy  farmers.   He  stated  that  this  bill  is an  effort  to                                                               
reenergize  the Division  of Agriculture  without disturbing  the                                                               
ARLF.  The  DCCED manages five other revolving loan  funds and is                                                               
sensitive to the  constituency.  He appreciated  the concern, but                                                               
the intent is not to make it  more difficult or change any of the                                                               
variables in how the ARLF operates.                                                                                             
                                                                                                                                
3:58:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BUCH asked  if the sponsor would  walk through the                                                               
fiscal note and if this represents a transfer of funding.                                                                       
                                                                                                                                
REPRESENTATIVE RAMRAS  stated that the fiscal  impact was covered                                                               
at a previous  hearing.  The fiscal impact would  be an increment                                                               
for the  DCCED and  a decrement  for the DNR.   Thus,  the fiscal                                                               
note is neutral.                                                                                                                
                                                                                                                                
3:59:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE T.  WILSON remarked that  she brought up  the bill                                                               
at her constituent meetings and wanted  to pass on comments.  She                                                               
explained  that  her  constituents   did  not  believe  that  the                                                               
Division of  Agriculture has received sufficient  attention.  Her                                                               
constituents expressed  concern that the Division  of Agriculture                                                               
offices  were   moved  in  Fairbank.     She  related   that  her                                                               
constituents believed  that the  transfer may bring  stability to                                                               
the division and it "would not hurt to try."                                                                                    
                                                                                                                                
4:00:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN thought  more leadership  for the  "top on                                                               
down"  is a  better way  to  go.   He  said, "I'm  just not  very                                                               
comfortable with this right now, Mr. Chair."                                                                                    
                                                                                                                                
CHAIR  OLSON  related  that  the  bill  has  two  more  committee                                                               
referrals.                                                                                                                      
                                                                                                                                
4:01:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE T. WILSON moved to  report HB 383 out of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being no objection,  HB 383 was reported  from the                                                               
House Labor and Commerce Standing Committee.