Legislature(2011 - 2012)BARNES 124
04/07/2011 08:00 AM House ECON. DEV., TRADE & TOURISM
| Audio | Topic |
|---|---|
| Start | |
| Presentation: Biomass Boiler Heating Systems | |
| HJR27 | |
| HB222 | |
| HB191 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HJR 27 | TELECONFERENCED | |
| *+ | HB 222 | TELECONFERENCED | |
| += | HB 191 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 191-DEPARTMENT OF AGRICULTURE AND FOOD
9:06:36 AM
VICE CHAIR OLSON announced that the final order of business
would be HOUSE BILL NO. 191," An Act establishing a state
department of agriculture and food and relating to its powers
and duties; relating to the powers and duties of the Department
of Environmental Conservation and the Department of Natural
Resources; and providing for an effective date."
9:06:55 AM
JANE PIERSON, Staff, Representative Steve Thompson, Alaska State
Legislature, reminded the committee the purpose of HB 191 was to
create a new department of agriculture and food. Although the
bill had been previously introduced to the committee, she
provided a sectional analysis. Sections 1-18 of the bill
address AS Title 3 - AGRICULTURE AND ANIMALS, and specifically,
Chapter 5, which is the duties of the commissioners, and puts
the duties relating to agriculture and food under the purview of
the commissioner of the department of agriculture and food. The
sections in Chapter 5 also address the powers and duties of the
commissioner of the Department of Environmental Conservation
(DEC) and puts retail food establishments and fish products
establishments under the purview of DEC. The new department of
agriculture will have duties overseeing animals and animal
products, the state veterinarian, noxious weeds, invasive
plants, agricultural pest management, the grading and
classification of agricultural products, inspections, product
violations, elk farming, and food security. In addition, under
AS Title 17, the new department of agriculture and food will
assume duties over federal crop insurance contributions,
agricultural and industrial fairs, the Farm to School Program,
the Plant Materials Center, controlled livestock districts,
brand-marking, beekeeping, and organic food. Sections 19-20
direct the commissioner of the department of agriculture and
food to appoint an employee of the department as the director of
the board of agriculture and conservation; this board oversees
the Agricultural Revolving Loan Fund (ARLF). Sections 39-75
deal with AS Title 17, which is Alaska Food and Drug; Chapter 20
is the Alaska Food, Drug, and Cosmetic Act and applies to the
commissioner of the department of agriculture and food having
the duty to set standards, regulate, label, inspect, embargo,
condemn, re-label, enforce, and fine related food products with
the exceptions of fish and fisheries products, and retail
establishments, which remain under the purview of DEC. Sections
76-77 make conforming changes. Section 78 deals with the
clearing and draining of agricultural land. Sections 79-82
also make conforming amendments. Section 83 adds a new chapter
to establish the new department of agriculture and food.
Section 84 adds the department of agriculture and food to the
agencies enforcing AS 17.20. Section 85 repeals certain laws.
Section 86 authorizes the department of agriculture and food,
DEC, and DNR to begin adopting, amending, and repealing
regulations as necessary to implement this Act. Sections 88-89
set forth the effective date. Ms. Pierson stated that
Representative Thompson's office has been in contact with
farmers, DEC, and the Department of Natural Resources (DNR), and
the concerns from all of the interested parties are being
addressed; for example, farmers were concerned about mandatory
programs to inventory food supplies. Also, DEC requested a
change in language regarding the processing of food, and the
Alaska Department of Fish and Game (ADF&G) was concerned about
language related to fish. In Section 18, the definition of
retail food will be expanded and moved from Title 3 into Title
17. In Section 41, DEC will provide a definition of non-
agricultural food. The definition of food establishment will be
moved to Section 49, and changes related to retail food and
agricultural food processors are forthcoming. Ms. Pierson noted
that DNR feels the Division of Agriculture belongs in its
department; however, Representative Thompson believes the
creation of a new department is sound policy.
9:13:13 AM
REPRESENTATIVE GARDNER referred to the letters of support and
opposition that were provided in the committee packet and asked
for the authors' contact information.
9:14:04 AM
REPRESENTATIVE TUCK asked for a copy of the most current
sectional analysis.
MS. PIERSON will respond to both requests. In response to Vice
Chair Olson, she deferred to the Division of Agriculture for
information on ARLF.
9:16:10 AM
REPRESENTATIVE THOMPSON asked whether the Board of Agriculture &
Conservation (BAC) is responsible for managing ARLF and its
assets.
9:16:33 AM
FRANCI HAVEMEISTER, Director, Central Office, Division of
Agriculture, Department of Natural Resources (DNR), said yes.
In further response to Representative Thompson, she said she was
unsure whether the BAC passed a resolution requesting that ARLF
be recapitalized; however, the loan fund continues to revolve
and BAC is "looking for future requests, ... currently we are
able to meet the need of the Ag community."
9:17:05 AM
REPRESENTATIVE THOMPSON asked for an explanation of the sudden
drop in projected loan activity from $3,285,000 in fiscal year
2010 (FY 10), to $2,400,000 in FY 11, and to $1,500,000 FY 12.
[These figures were from an undated document titled,
"Agricultural Revolving Loan Fund Cash Flow Projection," from an
unknown source.]
MS. HAVEMEISTER opined the projections are based on historical
information that does not reflect ARLF lower loan rates that led
to refinances and "which shows activity but it's not actual cash
out of the fund."
9:17:48 AM
VICE CHAIR OLSON asked whether there is a description of the
"difference between the two sets of numbers."
[Included in the committee packet was an undated document
titled, "Agricultural Revolving Loan Fund (ARLF), Financial
Summary as of February 28, 2011, Fiscal Year July 1-June 30,"
from an unknown source.]
9:18:08 AM
MS. HAVEMEISTER said:
No, I have not. We just had an error that was
submitted through this office that did not go through
support services, so we requested support services do
a new financial projection, and that, that is the one
that is currently in the packet.
MS. HAVEMEISTER, in further response to Vice Chair Olson, said
Cris Cowles-Brunton, Revenue Officer, Central Office, Division
of Support Services, DNR, prepared the second document.
VICE CHAIR OLSON then asked whether the future sale of Matanuska
Maid Diary (Mat-Maid) was a variable included in the cash flow
projections.
MS. HAVEMEISTER said she was unsure; however, the difference
between the initial projection and the second projection was
that revenue was not included in the initial projection. In
further response to Vice Chair Olson, she said she did not
believe any refinancing of bad debts was included.
9:19:46 AM
MS. PIERSON, in response to Representative Gardner, explained
the original projection by DNR was corrected. She said she will
provide the corrected document to the committee.
9:21:20 AM
VICE CHAIR OLSON opened public testimony.
9:21:45 AM
SIG RESTAD, Master, Northland Pioneer Grange, expressed the
Grange's support of the bill at its present "stage of
development." The bill improves communication between the
agricultural community and local and national agencies, and
there is ample time to work on further revisions; in fact,
Northland Pioneer Grange has been involved in this issue since
1934. Speaking on his own behalf, he recalled his experience as
the Director of Agriculture from 1962-1968, and said state
agricultural programs with department-level status are more
productive and cost efficient. In addition, farmers benefit
from seeking answers from one department organized in a
structure similar to that of the U.S. Department of Agriculture.
Mr. Restad offered his experience.
9:27:38 AM
JOHN POIRRIER, President, Alaska State Grange, stated that the
Alaska State Grange supports HB 191 based on two principles, the
first of which is that the development of agriculture moved
human society from a nomadic hunting and gathering lifestyle to
a community lifestyle. Although Alaskans are dependent on
natural resources and its regulatory approach to management,
agriculture results from the efforts of people to produce food
products to support a general population. He strongly urged
further efforts in Alaska to provide its own food supply.
Secondly, a department-level governmental agency should be
involved in such an important element of the state's economy.
The bill consolidates existing governmental functions into a
single department in the best interests of the state.
9:29:57 AM
BRYCE WRIGLEY, President, Alaska Farm Bureau, Inc., stressed
that HB 191 is not an "indictment" of DNR or the Division of
Agriculture. He pointed out that all Alaskans can be affected
by transportation breakdowns and there is a serious need to
address food security in Alaska by raising more food in the
state. The new department of agriculture should have the
freedom to strive for this goal of food security, independent of
influence from DNR; in fact, the key to reaching this goal is to
develop a business climate to support small- and medium-sized
farms to grow and process food. A more focused agency will be
capable of working with farmers to develop a food source in
Alaska for its rural and urban populations. Mr. Wrigley
endorsed the previous testimony of others.
9:31:55 AM
VICE CHAIR OLSON closed public testimony.
9:32:05 AM
REPRESENTATIVE THOMPSON questioned whether the FY 12 projected
personnel expenditures in the amount of $512,375 are really
needed to administer a loan fund of $1,500,000.
MS. PIERSON said she was also interested in looking into these
and other "numbers" pertaining to ARLF.
VICE CHAIR OLSON, in response to Representative Foster, advised
that the next committee of referral is the House Resources
Standing Committee, which intends to work on the bill during
interim.
9:34:29 AM
REPRESENTATIVE TUCK relayed that historically there was a
surplus of food in the U.S., but now there is not. Because of
the remote location of Alaska, it is important to have an
agricultural base, especially since there is only a three to
eight day supply of food in case of a catastrophe.
Representative Tuck acknowledged that there is a lot of work to
be done on the bill, but it emphasizes the importance of
agriculture as the foundation of the economy, and he offered his
assistance and support.
9:36:48 AM
REPRESENTATIVE FOSTER moved to report HB 191, Version 27-
LS0458\M, out of committee with individual recommendations and
the accompanying fiscal note. There being no objection, HB 191
was reported from the House Special Committee on Economic
Development, International Trade and Tourism.