Legislature(2025 - 2026)ADAMS 519

03/10/2025 01:30 PM House FINANCE

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Audio Topic
01:35:27 PM Start
01:37:31 PM Executive Order 136
02:13:58 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a Call of the Chair --
+ SSCR 1 DISAPPROVE EO 136 TELECONFERENCED
Scheduled but Not Heard
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                      March 10, 2025                                                                                            
                         1:35 p.m.                                                                                              
                                                                                                                                
1:35:27 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Foster called the House Finance Committee meeting                                                                      
to order at 1:35 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Andy Josephson, Co-Chair                                                                                         
Representative Calvin Schrage, Co-Chair                                                                                         
Representative Jamie Allard                                                                                                     
Representative Jeremy Bynum                                                                                                     
Representative Alyse Galvin                                                                                                     
Representative Sara Hannan                                                                                                      
Representative Nellie Unangiq Jimmie                                                                                            
Representative DeLena Johnson                                                                                                   
Representative Will Stapp                                                                                                       
Representative Frank Tomaszewski                                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
John Boyle, Commissioner, Department of Natural Resources;                                                                      
Representative George Rauscher.                                                                                                 
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
EXECUTIVE ORDER 136                                                                                                             
                                                                                                                                
     Executive Order 136 was HEARD and HELD in committee                                                                        
     for further consideration.                                                                                                 
                                                                                                                                
SSCR 1                                                                                                                          
     DISAPPROVE EO 136                                                                                                          
                                                                                                                                
     SSCR 1 was SCHEDULED but not HEARD.                                                                                        
                                                                                                                                
Co-Chair Foster  reviewed the meeting agenda.  He noted that                                                                    
the  process with  SSCR  1  was similar  to  the boards  and                                                                    
commissions  process where  the  committee  was required  to                                                                    
consider the item,  but members did not  make affirmative or                                                                    
negative recommendations on the  item until consideration on                                                                    
the  House  floor.  He invited  the  Department  of  Natural                                                                    
Resources (DNR) to review Executive Order (EO) 136.                                                                             
                                                                                                                                
^EXECUTIVE ORDER 136                                                                                                          
                                                                                                                                
JOHN BOYLE,  COMMISSIONER, DEPARTMENT OF  NATURAL RESOURCES,                                                                    
introduced  a  PowerPoint   presentation  titled  "Executive                                                                    
Order  136  Establishing  the  Department  of  Agriculture,"                                                                    
dated March  10, 2025 (copy  on file). He  characterized the                                                                    
EO as an important initiative  for Alaska as leaders thought                                                                    
about  opportunities   for  increasing  food   security  and                                                                    
growing  different parts  of Alaska's  economic sectors.  He                                                                    
believed  agriculture offered  substantial  promise in  that                                                                    
respect. He  highlighted that agriculture  had been  part of                                                                    
the  state's tapestry  since before  statehood. He  detailed                                                                    
that in the late  1800s/early 1900s Alaska was significantly                                                                    
more  self-sufficient than  it was  at present.  He detailed                                                                    
that in  the past, much more  of the food needed  to sustain                                                                    
communities and  mining camps had  been grown in  Alaska. As                                                                    
time  went  on, Alaska  had  grown  increasingly reliant  on                                                                    
attenuated supply chains; the  state was currently importing                                                                    
95 percent of its food.                                                                                                         
                                                                                                                                
1:37:31 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster  noted that  members had to  be back  on the                                                                    
floor at 2:10 p.m.                                                                                                              
                                                                                                                                
Representative Galvin asked if  Alaskan farms experienced an                                                                    
economic loss in in FY 24.                                                                                                      
                                                                                                                                
Commissioner Boyle for clarification on the question.                                                                           
                                                                                                                                
Representative  Galvin   assumed  the  state   was  tracking                                                                    
revenue generated by farms in  Alaska. She wondered if farms                                                                    
were experiencing a loss. She  viewed agriculture as another                                                                    
revenue   source  for   Alaskans  in   general  along   with                                                                    
increasing food security.                                                                                                       
                                                                                                                                
Commissioner Boyle answered that one  of the ways GDP [Gross                                                                    
Domestic  Product]  was  tracked was  through  the  national                                                                    
census conducted  by the U.S. Department  of Agriculture. He                                                                    
moved  to   slide  2  titled  "Alaska   Agriculture:  Status                                                                    
Report." The slide showed the  2022 national census figures.                                                                    
He  relayed that  the prior  census was  2017 and  there had                                                                    
been  a significant  increase in  the total  agriculture GDP                                                                    
between  the two  dates [in  Alaska].  There was  consistent                                                                    
growth   in  the   agriculture   sector.   He  stated   that                                                                    
anecdotally many  people had witnessed  the growth  in terms                                                                    
of the  proliferation of  farmers markets  and opportunities                                                                    
for  Alaskan grown  products to  be sold  in that  venue. He                                                                    
highlighted Alaskan  greens and subscription  services where                                                                    
Alaskans  could   get  milk,   mushrooms,  and   many  other                                                                    
products.  He  relayed  that   Alaskan  peony  farmers  were                                                                    
recognizing  more   export  values.  He  reported   that  in                                                                    
general, Alaska was seeing greater agricultural growth.                                                                         
                                                                                                                                
Co-Chair  Foster  noted   that  Representative  Johnson  had                                                                    
joined the meeting.                                                                                                             
                                                                                                                                
Representative  Stapp  asked  if an  agriculture  department                                                                    
would  put more  land in  people's hands  to enable  them to                                                                    
grow crops and produce agriculture.                                                                                             
                                                                                                                                
Commissioner  Boyle  confirmed  it   was  something  that  a                                                                    
department of  agriculture could help facilitate.  He stated                                                                    
that more  importantly, the administration wanted  to ensure                                                                    
the  lands   of  potential  farmers  were   being  used  for                                                                    
agricultural  purposes.  He believed  it  was  the value  in                                                                    
having  a high  level strategic  vision for  what the  state                                                                    
wanted  to do  with  agriculture. The  state had  undertaken                                                                    
agricultural projects  in the past  and sometimes  plans had                                                                    
not  been put  together in  a way  that ensured  success and                                                                    
ensured   that  people   were   utilizing   the  lands   for                                                                    
agriculture with a robust plan in place.                                                                                        
                                                                                                                                
1:41:38 PM                                                                                                                    
                                                                                                                                
Representative  Stapp  thought Commissioner  Boyle  answered                                                                    
yes. He had  been told that Alaska only had  a supply for 10                                                                    
days  of food.  He asked  how many  days of  food the  state                                                                    
would have under the proposed department.                                                                                       
                                                                                                                                
Commissioner Boyle  could not speculate how  many extra days                                                                    
of  food security  the state  may get.  He was  certain that                                                                    
with a strategic vision and  plan, Alaska could increase the                                                                    
food security over its current baseline level.                                                                                  
                                                                                                                                
Representative  Allard asked  what the  current Division  of                                                                    
Agriculture  did and  how the  proposed department  would be                                                                    
impressive.                                                                                                                     
                                                                                                                                
Commissioner Boyle  responded that  he would provide  a high                                                                    
level  summary   of  the  EO.   The  existing   Division  of                                                                    
Agriculture was one  of DNR's seven divisions.  The EO would                                                                    
sever the division and its  37 employees from the department                                                                    
to  create  a  department   of  agriculture.  Currently  the                                                                    
division was  housed in two  separate facilities  located in                                                                    
Palmer: the main office located  off of the Glen Highway and                                                                    
the plant materials  center near the butte.  The staff would                                                                    
remain in the  two facilities and no  additional space would                                                                    
be  needed.  He  stated  that the  division's  $7.3  million                                                                    
budget would transfer  over and form the nucleus  of the new                                                                    
department.  He stated  his understanding  of Representative                                                                    
Allard's question.                                                                                                              
                                                                                                                                
Representative  Allard  wanted  to know  what  the  proposed                                                                    
department  would do  to  increase agricultural  production.                                                                    
She asked how success would be guaranteed.                                                                                      
                                                                                                                                
Commissioner  Boyle  replied  that  the  real  opportunities                                                                    
resided in solving what he  characterized as chicken and egg                                                                    
initiatives. He  stated that there were  farmers utilizing a                                                                    
percentage  of their  overall productive  total.  He used  a                                                                    
barley farmer as an example  and explained that perhaps they                                                                    
were  only utilizing  50 percent  of  their available  land.                                                                    
There was  nothing that would  stop them from  utilizing the                                                                    
full 100  percent of their land  except a lack of  demand or                                                                    
other  prohibitive costs.  He  explained  that a  department                                                                    
could analyze the  demand levers the state  could trigger to                                                                    
enable farmers to put more  land to use. He highlighted more                                                                    
strategic  focus on  marketing  initiatives  as an  example.                                                                    
Additionally, in the  past couple of years  the division had                                                                    
helped  incubate  a barley  co-op  program  so that  farmers                                                                    
could  sell excess  crop into  the co-op  system. The  co-op                                                                    
system  could exist  to  make up  shortfalls  in years  when                                                                    
there  were weather  or  other  events impeding  production.                                                                    
There were  initiatives where the government  could be well-                                                                    
positioned  to step  in to  get started.  He expounded  that                                                                    
initiatives could  be transitioned  into co-ops  and managed                                                                    
self-sufficiently moving forward.                                                                                               
                                                                                                                                
Commissioner Boyle  referred to the Alaska  Range Dairy, the                                                                    
only  dairy in  Alaska.  He detailed  that  at a  particular                                                                    
time, the dairy  was disposing of a  significant quantity of                                                                    
milk weekly  because it  only had  access to  several stores                                                                    
willing  to market  the product.  The division  had assisted                                                                    
the  dairy with  getting  into the  Walmart  system and  the                                                                    
dairy was  now selling all  of its production.  He explained                                                                    
that government  intervention was  helpful because  big name                                                                    
stores did not want  to negotiate with individual producers;                                                                    
it was  easier for them  to negotiate with  wholesalers. The                                                                    
state  had an  interest to  become more  food secure  and to                                                                    
ensure farmers had equal access  to markets. The state could                                                                    
assist  farmers  with  obtaining  that  access.  As  farmers                                                                    
gained access to markets, they  recognized some economies of                                                                    
scale and  had opportunities  to expand. He  elaborated that                                                                    
increased  production enabled  producing  more  for a  lower                                                                    
cost. He  saw a dedicated  department as helping  to deliver                                                                    
on similar initiatives.                                                                                                         
                                                                                                                                
1:49:07 PM                                                                                                                    
                                                                                                                                
Representative  Allard remarked  that  it  sounded like  the                                                                    
state had not  currently implemented any of the  things as a                                                                    
division, which made her wonder  how it would implement them                                                                    
in a department.                                                                                                                
                                                                                                                                
Representative Bynum  relayed that  he had  previously asked                                                                    
DNR  whether there  was a  one-page  document outlining  why                                                                    
creating a  department was necessary.  He wondered  if there                                                                    
was  something to  show the  Alaskan people  to outline  the                                                                    
need  for the  department and  to generate  excitement about                                                                    
the  benefit of  the department.  He asked  if progress  had                                                                    
been made on the idea.                                                                                                          
                                                                                                                                
Commissioner  Boyle answered  that  the  one-pager had  been                                                                    
created. He  believed it  had been  distributed or  would be                                                                    
distributed shortly.                                                                                                            
                                                                                                                                
1:50:41 PM                                                                                                                    
                                                                                                                                
Representative Johnson  asked if  there was an  intention to                                                                    
vote on the EO in the current meeting.                                                                                          
                                                                                                                                
Co-Chair Foster  answered that there  would be a  motion for                                                                    
the committee  to consider,  but it  was not  an up  or down                                                                    
motion  on whether  to approve  the EO.  He elaborated  that                                                                    
statute required the committee to  consider the EO - similar                                                                    
to the board appointment process -  and send it to the floor                                                                    
for an up or down vote.                                                                                                         
                                                                                                                                
Representative Johnson stated that  her district was heavily                                                                    
invested in agriculture of Alaska  and was the center of the                                                                    
industry.  She  was  excited about  the  topic  and  thought                                                                    
Alaska had  a lot of  potential. He believed they  were just                                                                    
scratching  the  surface  of the  available  nutrients.  She                                                                    
stated that some  of the food grown in  Alaska had different                                                                    
types  of nutrients  based on  the sunlight  cycle that  was                                                                    
different  than other  locations.  She  highlighted that  in                                                                    
addition to the benefit of  food security, the products were                                                                    
locally  grown. She  elaborated  that it  was about  knowing                                                                    
where your  food came  as opposed  to eating  something that                                                                    
came  from  China  or  other  locations  where  it  was  not                                                                    
possible to know  the processes a product  had been through.                                                                    
She found  it exciting  to see what  was available  at local                                                                    
farmers markets. She added that  a tremendous amount of food                                                                    
could  be grown  on small  acreage. She  was excited  by the                                                                    
potential and on  a national level. She  stated that without                                                                    
a department of  agriculture, the state did  not have access                                                                    
to  a  lot  of  the   resources  and  connections  to  peers                                                                    
throughout the country. She was  happy to see the EO brought                                                                    
forward.                                                                                                                        
                                                                                                                                
1:53:52 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster  asked Commissioner  Boyle to  continue with                                                                    
his presentation.                                                                                                               
                                                                                                                                
Commissioner Boyle relayed that  the legislature had 60 days                                                                    
to  consider  the  EO  with  a  deadline  of  March  22.  He                                                                    
understood there  was a joint session  scheduled to consider                                                                    
the EO later  in the week. He noted that  if the legislature                                                                    
did not  disapprove the EO it  would take effect on  July 1,                                                                    
2025.  He moved  to slide  4 titled  "Vision." He  explained                                                                    
that the  most substantial  benefit the  EO would  bring was                                                                    
accountable  leadership.  He   detailed  that  the  existing                                                                    
Division  of Agriculture  had seen  many directors  come and                                                                    
go. Directors  had an opportunity to  pursue initiatives and                                                                    
had pursued  them, but  to an  extent, their  influence over                                                                    
the  commissioner's  office  was  constrained  by  what  the                                                                    
commissioner's office  may be focused  on. He  relayed there                                                                    
had  been periods  of time  where the  DNR commissioner  and                                                                    
governor  were  more  interested  in other  things  such  as                                                                    
gaslines, mining  projects, and  many other things  that may                                                                    
compete for  their attention. He explained  that agriculture                                                                    
could  be put  on  the  back burner  and  was  not always  a                                                                    
priority.                                                                                                                       
                                                                                                                                
Commissioner  Boyle elaborated  that  creating a  department                                                                    
and  having a  commissioner would  ensure there  would be  a                                                                    
high  level   policy  specifying  that  food   security  and                                                                    
agriculture  were  important to  the  state  and that  there                                                                    
would  be a  focus  on agriculture.  He  expounded that  the                                                                    
commissioner would bear the  accountability of coming before                                                                    
the legislature to defend and  account for their budgets. He                                                                    
remarked that  as the DNR commissioner  his meeting calendar                                                                    
jumped from one  topic to the next and he  had many areas of                                                                    
responsibility  that did  not enable  him to  only focus  on                                                                    
agriculture.  He stated  that  an agricultural  commissioner                                                                    
would be  focused only on  agriculture. He detailed  that if                                                                    
he  had  the  time  to  focus  on  agriculture,  there  were                                                                    
undoubtedly  many  initiatives  he   could  help  drive  and                                                                    
problems  he  could  help  solve. He  believed  it  was  the                                                                    
biggest  value   for  having  dedicated  leadership   for  a                                                                    
department   of  agriculture.   He   added   that  the   top                                                                    
recommendation  of taskforces  formed  by  the governor  and                                                                    
legislature  looking   at  food   security  in   Alaska  was                                                                    
establishing a department of agriculture.                                                                                       
                                                                                                                                
1:59:14 PM                                                                                                                    
                                                                                                                                
Commissioner Boyle  moved to slide 5  and discussed improved                                                                    
results  for  Alaskans.  He  believed  Alaska  received  the                                                                    
"short end of the stick"  with federal funding. The USDA had                                                                    
reduced  the  number of  programs  available  in Alaska  for                                                                    
agricultural producers.  He suggested  that many  people did                                                                    
not think of  Alaska as an agricultural state.  He thought a                                                                    
cabinet   level   position    that   could   advocate   with                                                                    
policymakers  in Washington  D.C.  about  the importance  of                                                                    
agricultural  programs  in  Alaska. The  commissioner  could                                                                    
also provide a leadership voice  amongst all of the entities                                                                    
in the  state including the  University of Alaska,  the Farm                                                                    
Bureau, and soil and water conservation districts.                                                                              
                                                                                                                                
Representative Allard  agreed but found the  lengthy answers                                                                    
derailing.   She   requested   more  concise   answers   but                                                                    
appreciated  the commissioner's  response to  Representative                                                                    
Bynum's comment.                                                                                                                
                                                                                                                                
Commissioner  Boyle   moved  briefly   to  slide  6   and  7                                                                    
pertaining to  DNR and the current  Division of Agriculture.                                                                    
He relayed that agriculture  represented 37 positions out of                                                                    
over  1,000  within  DNR.  The division  was  led  by  Bryan                                                                    
Scoresby with a  budget of $7.1 million.  The division's two                                                                    
offices  were   located  in  Palmer,  one   was  focused  on                                                                    
agricultural development and the  other was focused on plant                                                                    
materials. He highlighted current  work done by the division                                                                    
including  phytosanitary  inspections  of logs  exported  to                                                                    
other  countries,  inspecting  seed potatoes,  and  cleaning                                                                    
seed. He  elaborated that the  division was the  only entity                                                                    
with  seed  cleaning  equipment. The  division  administered                                                                    
numerous  federal  grants  including  microgrants  for  food                                                                    
security,  which   would  include  individuals   wanting  to                                                                    
install  a  greenhouse,  chicken  coop, or  raised  beds  to                                                                    
produce more  food. He relayed  that food security  in rural                                                                    
areas  was heavily  reliant  on  subsistence and  attenuated                                                                    
supply chains.  In other areas  it was more  about promoting                                                                    
the individuals to  grow more at their homes.  He noted that                                                                    
in Southeast Alaska  it may be more  vertical farming. There                                                                    
were  myriad  aspects  to agriculture  that  impacted  every                                                                    
region  of the  state. He  thought a  coherent strategy  and                                                                    
focus could help move the  needle and recognize greater food                                                                    
security.                                                                                                                       
                                                                                                                                
2:04:27 PM                                                                                                                    
                                                                                                                                
Representative  Johnson noted  that  Alaska was  one of  the                                                                    
most  pristine environments  in the  world. There  were many                                                                    
vegetation funguses  and viruses that had  not become common                                                                    
in Alaska  because there had not  been widespread industrial                                                                    
farming. She  stated that  it created  an environment  to do                                                                    
types of farming and experimentation  that could not be done                                                                    
elsewhere. She believed for that  reason it was important to                                                                    
maintain the  division or a department.  Additionally, there                                                                    
was a bill  several years back where  the legislature talked                                                                    
about wild  animals and farm  animals. She  highlighted that                                                                    
in  the past  there had  been a  potato blight  had occurred                                                                    
from people  cutting up potatoes  from Walmart  and planting                                                                    
them, which had required  some intervention. She added there                                                                    
had been  an ongoing  attempt to  pass a  farm bill  [at the                                                                    
federal  level]  and  the  state would  be  more  likely  to                                                                    
receive the funds if it had an agriculture department.                                                                          
                                                                                                                                
Co-Chair Foster would take an  at ease to determine the time                                                                    
available.                                                                                                                      
                                                                                                                                
2:07:16 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:13:29 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Foster recessed the meeting to a call of the                                                                           
chair. [Note: the meeting never reconvened.]                                                                                    
                                                                                                                                
2:13:58 PM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 2:13 p.m.                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
EO 136 Fact Sheet 3.7.25.pdf HFIN 3/10/2025 1:30:00 PM
EO 136 Transmittal Letter 012025.pdf HFIN 3/10/2025 1:30:00 PM
EO 136.pdf HFIN 3/10/2025 1:30:00 PM
EO136 Dept of Ag Statement of Cost 03.05.25.pdf HFIN 3/10/2025 1:30:00 PM
EO136 Dept of Agriculture DNR presentation HFIN 03.10.25.pdf HFIN 3/10/2025 1:30:00 PM
EO136-Support-AK Farm Bureau 02.18.25.pdf HFIN 3/10/2025 1:30:00 PM
EO136-Support-AK Food Policy Council 02.17.25.pdf HFIN 3/10/2025 1:30:00 PM
SSCR1 Public Testimony Rec'd by 031025.pdf HFIN 3/10/2025 1:30:00 PM
SSCR 1
EO 136 Public Testimony Rec'd by 031025.pdf HFIN 3/10/2025 1:30:00 PM