Legislature(2003 - 2004)

05/12/2003 03:35 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE RESOURCES STANDING COMMITTEE                                                                             
                          May 12, 2003                                                                                          
                           3:35 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENTG                                                                                                              
                                                                                                                                
Senator Scott Ogan, Chair                                                                                                       
Senator Thomas Wagoner, Vice Chair                                                                                              
Senator Fred Dyson                                                                                                              
Senator Ralph Seekins                                                                                                           
Senator Ben Stevens                                                                                                             
Senator Kim Elton                                                                                                               
Senator Georgianna Lincoln                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
APPOINTMENT OF MR. JOHN JENSEN to the ALASKA BOARD OF FISHERIES                                                                 
     CONFIRMATION ADVANCED                                                                                                      
                                                                                                                                
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."                                                                                                         
     MOVED OUT OF COMMITTEE                                                                                                     
                                                                                                                                
PREVIOUS ACTION                                                                                                               
                                                                                                                                
HB 226 - No previous action to record.                                                                                          
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Mr. John E. Jensen                                                                                                              
Petersburg, AK                                                                                                                  
POSITION STATEMENT:  Answered questions regarding his Board                                                                   
appointment                                                                                                                     
                                                                                                                                
Ms. Barbara Bittney                                                                                                             
Staff to Representative Stoltze                                                                                                 
Alaska State Capitol                                                                                                            
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT:  Presented HB 226 for the sponsor                                                                         
                                                                                                                                
Mr. Mark Rempel                                                                                                                 
Palmer, AK                                                                                                                      
POSITION STATEMENT:  Supports HB 226                                                                                          
                                                                                                                                
Mr. River Bean                                                                                                                  
President, Alaska Organic Association                                                                                           
No address provided                                                                                                             
POSITION STATEMENT:  Supports HB 226                                                                                          
                                                                                                                                
Mr. Shane Herr                                                                                                                  
No address provided                                                                                                             
POSITION STATEMENT:  Supports HB 226                                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
TAPE 03-46, SIDE A                                                                                                            
                                                                                                                                
                CONFIRMATION: BOARD OF FISHERIES                                                                            
                                                                                                                                
CHAIR SCOTT  OGAN called the Senate  Resources Standing Committee                                                             
meeting to  order at  3:35 p.m. All  members were  present except                                                               
Senator  Ben Stevens.  Chair Ogan  announced the  committee would                                                               
first take  up the confirmation  of John  Jensen to the  Board of                                                               
Fisheries. He  asked Mr. Jensen to  tell members why he  wants to                                                               
serve on the board.                                                                                                             
                                                                                                                                
MR. JOHN E. JENSEN told members  he is a third generation Alaskan                                                               
from Petersburg. He has been interested  in the work of the Board                                                               
of Fisheries and  has hoped to serve  on it at some  time. He has                                                               
diverse experience  in both commercial  and sport  fisheries. His                                                               
goal is  to create sustainable,  viable fisheries based  on sound                                                               
management practices for all Alaskan user groups.                                                                               
                                                                                                                                
CHAIR OGAN asked  Mr. Jensen his opinion of the  recent ruling by                                                               
the federal  subsistence board that allows  subsistence fishermen                                                               
to catch 20 halibut per day.                                                                                                    
                                                                                                                                
MR. JENSEN  said he likes  the idea of being  able to go  out and                                                               
get a few halibut but thinks 20 per day is excessive.                                                                           
                                                                                                                                
CHAIR OGAN said the committee  talked to another appointee of the                                                               
board about  the fact that  now that the subsistence  fishery for                                                               
rainbow trout  is allowed, there  should be  better communication                                                               
between the federal  and state boards to make  sure the resources                                                               
are not  compromised. He said  the federal board is  not required                                                               
to manage on a sustained yield  basis like the state board is. He                                                               
asked Mr. Jensen to comment.                                                                                                    
                                                                                                                                
MR.  JENSEN said  he is  disappointed to  hear that  the [federal                                                               
board] made that decision. He  said the state board just reviewed                                                               
a very comprehensive trout plan at an Anchorage meeting.                                                                        
                                                                                                                                
SENATOR  WAGONER commented  that Mr.  Jensen's resume  speaks for                                                               
itself  and he  believes Mr.  Jensen will  be a  very good  board                                                               
member.                                                                                                                         
                                                                                                                                
SENATOR LINCOLN  said she received  a comment from a  resident of                                                               
the Interior  who said no  one on the  board has any  Yukon River                                                               
experience and  residents are  concerned that  individual members                                                               
on the board without that  experience might not have knowledge of                                                               
inland fisheries. She asked Mr. Jensen to respond.                                                                              
                                                                                                                                
MR. JENSEN  said he does  not have any inland  fishing experience                                                               
and realizes there are problems  associated with that fishery. He                                                               
said he  believes that issue  is scheduled  to come up  for board                                                               
review this  fall. Members  are trying to  review the  details of                                                               
those problems right now.                                                                                                       
                                                                                                                                
SENATOR LINCOLN said  she appreciates his honesty  and hopes that                                                               
he  carefully  reviews  the  data  and  concerns  expressed  from                                                               
residents of the Yukon-Kuskokwim area.  She then asked Mr. Jensen                                                               
what he believes the board's role  is in carrying out the state's                                                               
subsistence  priority and  whether he  supports a  constitutional                                                               
amendment for a rural subsistence priority.                                                                                     
                                                                                                                                
MR.  JENSEN  said,  regarding the  constitutional  amendment,  he                                                               
would support putting  the question before the  voters. In regard                                                               
to the board's  role, he said the board  should allow subsistence                                                               
for anyone who needs it as long as the resource is viable.                                                                      
                                                                                                                                
SENATOR  SEEKINS asked  what  criteria were  used  in making  the                                                               
decision to  reverse the Chitina  dipnet fishery  designation and                                                               
whether he agreed with that decision.                                                                                           
                                                                                                                                
MR. JENSEN said that decision  was primarily based on criteria 8,                                                               
pattern of  use, and the  new information that was  not available                                                               
in 2000.                                                                                                                        
                                                                                                                                
SENATOR  SEEKINS asked  Mr. Jensen  to describe  some of  the new                                                               
information he used to make his decision.                                                                                       
                                                                                                                                
MR. JENSEN  said two elements were  long-term consistent patterns                                                               
of use  and criteria  6, which pertains  to passing  knowledge of                                                               
fishing and  hunting practices from generation  to generation. He                                                               
noted the survey showed that  many people were either self-taught                                                               
or taught by friends.                                                                                                           
                                                                                                                                
SENATOR SEEKINS  asked Mr. Jensen if  he looked at the  users and                                                               
determined they did not fit within  his definition of what a true                                                               
subsistence user is.                                                                                                            
                                                                                                                                
MR. JENSEN  replied, "No, not really.  It was more in  the - with                                                               
the definition  of use, individual  habit or customary  usage and                                                               
privilege  of using  something.  It wasn't  the  users. I  didn't                                                               
think it was the users."                                                                                                        
                                                                                                                                
SENATOR SEEKINS commented that most people eat fish.                                                                            
                                                                                                                                
MR. JENSEN said  he does not believe many fishermen  use the fish                                                               
in  the  customary  and  traditional  way,  as  in  "substantial,                                                               
economic,   cultural,  social,   and  I'm   sure  they   use  the                                                               
nutritional elements...."                                                                                                       
                                                                                                                                
SENATOR SEEKINS  asked if he went  to Chitina for the  first time                                                               
after  hearing that  it  was a  place  to get  fish  to feed  his                                                               
family,  and he  used  the customary  and  traditional method  of                                                               
catching fish, although  no one taught him how,  whether he would                                                               
be considered different from a fourth generation user.                                                                          
                                                                                                                                
MR. JENSEN  said possibly, based  on the definition  of long-term                                                               
use.                                                                                                                            
                                                                                                                                
SENATOR  WAGONER  said  at  one  time  the  board  held  hearings                                                               
throughout  Alaska. He  fishes in  Cook Inlet  and has  found the                                                               
board has basically  refused to hold a meeting in  Cook Inlet for                                                               
a number  of years.  He asked Mr.  Jensen if he  is aware  of any                                                               
good reason  to not hold a  hearing in Cook Inlet  when the board                                                               
is reviewing Upper and Lower Cook Inlet issues.                                                                                 
                                                                                                                                
MR. JENSEN said he cannot think of any good reasons.                                                                            
                                                                                                                                
CHAIR OGAN  said a  lot of  his constituents  feel the  board has                                                               
been heavily slanted toward the  commercial fisheries. He pointed                                                               
out  that Cook  Inlet is  a mixed  stock intercept  fishery.   He                                                               
maintained that when a large amount  of fish return and the board                                                               
is managing for the Kenai River,  the board puts a gauntlet up in                                                               
the Inlet  and chokes off  the fish.  ADF&G has testified  in the                                                               
past that  when that type of  a situation occurs, the  Upper Cook                                                               
Inlet  suffers   because  the  fisheries  are   not  managed  for                                                               
escapement  in  the  Upper  Inlet.   He  asked  Mr.  Jensen  what                                                               
assurances he can give that  upriver fishing opportunities in his                                                               
area and  the Yukon will  be provided  so that the  fisheries are                                                               
managed on  a sustained yield  basis and Alaskans can  feed their                                                               
families.                                                                                                                       
                                                                                                                                
MR. JENSEN  said he will do  his best to make  sure everyone gets                                                               
their share of the  fish. He said he does not  want to see anyone                                                               
get slighted.                                                                                                                   
                                                                                                                                
CHAIR OGAN said  there is a perception  that commercial fishermen                                                               
were slighted  by the last board.  He added that a  lot of people                                                               
living at the end of the  fish runs believe that now the pendulum                                                               
has swung too far in the other direction.                                                                                       
                                                                                                                                
MR. JENSEN said he was not aware  of that and will do his best to                                                               
make the best-educated decisions for everyone.                                                                                  
                                                                                                                                
SENATOR WAGONER  said he is a  drift fisherman in Cook  Inlet and                                                               
has averaged  less than  5 days  fishing the  full Inlet  for the                                                               
last seven  years. He said there  is not a lot  of pressure being                                                               
put  on the  stocks that  go into  the Upper  Inlet by  the Kenai                                                               
fleet.                                                                                                                          
                                                                                                                                
CHAIR OGAN  commented that is  where the conflict lies.  He noted                                                               
when  he first  came to  the legislature,  the Kenai  king salmon                                                               
fishery in the Chesina River was  closed to the detriment of some                                                               
of  the fishermen  in  Cook  Inlet. The  king  and silver  salmon                                                               
fisheries have been really good  in the northern Inlet. There's a                                                               
grave concern in  his district that the pendulum  will swing back                                                               
and his  district "will be  on the short  end of the  stick." His                                                               
district is  filled with people  with lodges and  businesses that                                                               
depend upon  those sport caught  fish and  their use needs  to be                                                               
balanced.  He said,  in his  opinion, fish  on a  person's dinner                                                               
table  takes  priority over  a  fish  caught for  commercial  use                                                               
regardless  of  whether  it  was   caught  under  a  subsistence,                                                               
personal use,  or sport  designation.   He asked  for reassurance                                                               
that a  commercially weighted board  will not compromise  his and                                                               
Senator Lincoln's districts.                                                                                                    
                                                                                                                                
MR. JENSEN said he will do his best to make just decisions.                                                                     
                                                                                                                                
SENATOR ELTON commented that Mr.  Jensen is the first nominee who                                                               
has  fished everywhere  in Alaska  with many  gear types  and for                                                               
many types of  fish. He said it is unfortunate  to view a nominee                                                               
from the  commercial versus sport  perspective. He said  he looks                                                               
forward to working  with Mr. Jensen and is glad  that he wants to                                                               
serve on the board.                                                                                                             
                                                                                                                                
CHAIR OGAN noted  that Senator Ben Stevens  joined the committee.                                                               
He agreed Mr. Jensen probably  has the broadest experience of the                                                               
nominees and will serve the board well.                                                                                         
                                                                                                                                
SENATOR LINCOLN said  she is pleased to learn that  Mr. Jensen is                                                               
a long-term resident  and asked him why he wants  to serve on the                                                               
board.                                                                                                                          
                                                                                                                                
MR.  JENSEN  said  he  was  born and  raised  in  Alaska  and  is                                                               
interested  in the  health of  the fishing  stocks in  the state,                                                               
both sport and commercial. He said he  wants to do what he can to                                                               
help the fisheries.                                                                                                             
                                                                                                                                
SENATOR  DYSON moved  to forward  Mr. Jensen's  name to  the full                                                               
Senate for a vote. There being no objection, the motion carried.                                                                
                                                                                                                                
CHAIR OGAN announced an at-ease.                                                                                                
                                                                                                                                
                      HB 226-ORGANIC FOOD                                                                                   
                                                                                                                                
MS.  BARBARA  BITTNEY,  staff  to  Representative  Bill  Stoltze,                                                               
sponsor,  explained  that  HB  226   simply  adopts  the  federal                                                               
definition  of "organic."  Since the  federal government  changed                                                               
the  definition  and  standards for  "organic,"  produce  can  no                                                               
longer  be  certified  as  organic within  the  State  of  Alaska                                                               
without this  legislation. Organic  producers must go  to Oregon,                                                               
Washington, and other states  for certification. This legislation                                                               
will  create   a  state  certification  program   within  Alaska.                                                               
Inspectors will fly to Alaska  but Alaskans who are familiar with                                                               
local  agriculture  can certify  that  produce  is organic.  Last                                                               
year, Representative Harris introduced  this same legislation [HB
432] but it was not enacted before the end of the session.                                                                      
                                                                                                                                
MS.  BITTNEY   told  members  when  the   federal  definition  of                                                               
"organic" was enacted the certification  cost was increased. That                                                               
increase from  $500 to  between $1500  and $3000  was significant                                                               
for  smaller  producers. Many  organic  farmers  sell to  farmers                                                               
markets;  it is  not a  high  volume industry.  Anyone who  sells                                                               
$5000  or  more  of  organic   produce  must  be  certified.  She                                                               
clarified that the House Finance  Committee zeroed out the fiscal                                                               
note and plans to fund the program with program receipts.                                                                       
                                                                                                                                
SENATOR  ELTON  said the  original  fiscal  note  had a  cost  of                                                               
$37,000  per year.  He asked  the  number of  organic farmers  in                                                               
Alaska who could cover that cost.                                                                                               
                                                                                                                                
MS. BITTNEY  could not  give a  number but  said there  are three                                                               
farmers  markets  in  Anchorage,  one  in  Eagle  River,  one  in                                                               
Fairbanks,  one  in  Homer,  one   in  Soldotna,  and  Delta  and                                                               
Talkeetna plan to  start farmers markets. In  addition, there are                                                               
some  very large  agricultural farms  in her  area. She  said the                                                               
number is fairly significant.                                                                                                   
                                                                                                                                
SENATOR ELTON  asked if this  will be a cheaper  alternative than                                                               
flying an inspector to Alaska.                                                                                                  
                                                                                                                                
MS.  BITTNEY   said  her   hope  is  that   by  having   a  state                                                               
certification  program,  Alaska  will  eventually  have  in-state                                                               
inspection, which will significantly reduce the cost.                                                                           
                                                                                                                                
CHAIR OGAN stated:                                                                                                              
                                                                                                                                
     I'd just like  to say, you know, my district  - in fact                                                                    
     in  my neighborhood  we have  one of  the best  organic                                                                    
     farmers - Larry  DeVilbiss. I literally -  I drank more                                                                    
     carrot  juice after  recovering  from  my heart  attack                                                                    
     last  year and  I can  tell you  what -  that stuff  is                                                                    
     good. I  know it sounds  disgusting but the  Mat Valley                                                                    
     carrots are the  sweetest carrots in the  world. I mean                                                                    
     they're  really, really  good  and you  throw a  little                                                                    
     apple  in there  and it's  full of  calcium and  really                                                                    
     good stuff. I  attribute a lot of my  good health today                                                                    
     due to a  vigorous organic carrot program.  In fact I'm                                                                    
     going back on  it when I get home. I  miss them. That's                                                                    
     weird for me  - you're talking a meat  and potatoes guy                                                                    
     - anyway....                                                                                                               
                                                                                                                                
SENATOR SEEKINS  said he  is very  much in  support of  this bill                                                               
because he produces organic fertilizer from his herd of horses.                                                                 
                                                                                                                                
SENATOR LINCOLN noted the federal  regulations now recognize wild                                                               
salmon as  organic and asked  Ms. Bittney if that  interacts with                                                               
HB 226.                                                                                                                         
                                                                                                                                
MS.  BITTNEY  said  HB  226   strictly  applies  to  agricultural                                                               
products. Meats are dealt with  in a different section of statute                                                               
but that is something that could be explored.                                                                                   
                                                                                                                                
SENATOR  LINCOLN  said  she  thought  Ms.  Bittney  said  HB  226                                                               
pertains to more than agricultural products.                                                                                    
                                                                                                                                
MS. BITTNEY  said she was  referring to herbs and  essential oils                                                               
from lavender, for example.                                                                                                     
                                                                                                                                
CHAIR OGAN recognized the presence  of Representative Stoltze. He                                                               
then   noted  that   Ms.  Bittney   said  a   farmer  must   have                                                               
certification to  sell over  a certain amount  of produce  but no                                                               
amount is included in the bill.                                                                                                 
                                                                                                                                
MS. BITTNEY said the amount  is listed in the federal guidelines,                                                               
which require  anyone selling  under $5,000  per year  in organic                                                               
products  to meet  the standard;  anyone selling  $5,000 or  more                                                               
must have  certification. If  a state  official went  on-site and                                                               
found a farmer  did not have certification, that  farmer could be                                                               
fined.  She  clarified the  limit  set  on  the  fines is  up  to                                                               
$10,000. The Department of Natural  Resources (DNR) would set the                                                               
actual fine amounts in regulation.                                                                                              
                                                                                                                                
SENATOR ELTON  asked if DNR  would be required to  do enforcement                                                               
in Seattle if produce was shipped from Alaska to Seattle.                                                                       
                                                                                                                                
MS. BITTNEY said  when a farm is certified,  an inspector reviews                                                               
the entire  operation. Right  now, inspectors  often look  at the                                                               
end product  but it is  impossible to  determine if it  meets the                                                               
federal  guidelines.  According  to  the U.S.  Code,  an  organic                                                               
farmer will have  to keep three-years' worth  of documentation on                                                               
how  the soil  was  amended  and the  soil  would  be subject  to                                                               
testing.  The Code  contains  a  long list  of  sprays and  other                                                               
products that can and cannot be used.                                                                                           
                                                                                                                                
SENATOR ELTON  asked if anything  in HB  226 will require  DNR to                                                               
enforce the labeling requirements outside of Alaska.                                                                            
                                                                                                                                
MS.  BITTNEY  said she  would  have  to  get  an answer  to  that                                                               
question.                                                                                                                       
                                                                                                                                
SENATOR DYSON said he is leery about creating more government.                                                                  
                                                                                                                                
CHAIR OGAN took public testimony.                                                                                               
                                                                                                                                
MR. MARK  REMPEL, an organic  farmer from Palmer,  stated support                                                               
for HB  226. He said he  was disappointed that the  same bill did                                                               
not pass last year because he  was forced to go outside of Alaska                                                               
to get his certification.                                                                                                       
                                                                                                                                
MR.  RIVER BEAN,  President of  the  Alaska Organic  Association,                                                               
told  members  that   up  until  the  fall  of   last  year,  his                                                               
organization could certify organic  growers. However, that can no                                                               
longer  be  done  under  the  new  federal  rule.  He  asked  the                                                               
legislature to support  HB 226 because it will  allow the organic                                                               
farmers in Alaska to get their  produce certified by the State of                                                               
Alaska  rather than  by another  state. Also  of concern  is that                                                               
many  farmers   in  the   state  are   unaware  of   the  serious                                                               
consequences  of using  the word  "organic"  with their  produce.                                                               
Farmers who  are mislabeling their  produce could be fined  up to                                                               
$10,000  if federal  enforcement were  to occur.  That kind  of a                                                               
fine would  break most  of those farms.  He believes  those farms                                                               
are selling more  than $5,000 worth of produce and  would have to                                                               
go  out-of-state for  certification. He  said last  year he  paid                                                               
$350 to  have his farm certified  as organic; this year  the cost                                                               
to get certified  by Washington State would be  more than $2,000,                                                               
which is unaffordable. He said  his association would like to see                                                               
an agricultural  inspector in Alaska,  which could be  an outcome                                                               
of HB 226.                                                                                                                      
                                                                                                                                
SENATOR WAGONER  asked how many  commercial organic  farmers work                                                               
in Alaska.                                                                                                                      
                                                                                                                                
MR. BEAN  said that  four were certified  last year.  He believes                                                               
there are about 40 smaller scale organic farmers.                                                                               
                                                                                                                                
MR. SHANE  HERR, a third  generation carrot farmer, said  he sees                                                               
HB 226 as a necessary evil for economic development.                                                                            
                                                                                                                                
CHAIR  OGAN  said  that  many people  have  the  perception  that                                                               
farming is not  a viable industry in Alaska but  that is not true                                                               
in his district.                                                                                                                
                                                                                                                                
TAPE 03-46, SIDE B                                                                                                            
                                                                                                                                
CHAIR OGAN  said that  farmers, like  fishermen, are  free market                                                               
risk takers, which he has a lot  of respect for. He then moved HB
226  from committee  with its  zero  fiscal note  from the  House                                                               
Finance Committee.                                                                                                              
                                                                                                                                
SENATOR SEEKINS objected.                                                                                                       
                                                                                                                                
SENATOR  DYSON said  he  is  very concerned  that  the House  has                                                               
chosen to not  fine parents whose children burn  down schools and                                                               
slash tires yet this House bill fines the poor farmers $10,000.                                                                 
                                                                                                                                
CHAIR OGAN called Senator Dyson's comments out of order.                                                                        
                                                                                                                                
SENATOR DYSON stated objection to the motion.                                                                                   
                                                                                                                                
SENATOR  LINCOLN  stated  objection  to the  motion  because  the                                                               
committee  had not  heard  testimony from  farmers  in the  Delta                                                               
area.                                                                                                                           
                                                                                                                                
A  roll call  vote was  taken.  The motion  to pass  HB 226  from                                                               
committee  failed with  Senators Stevens,  Dyson, Seekins,  Elton                                                               
and Lincoln opposed,  and Chair Ogan in favor, who  then moved to                                                               
reconsider the vote.  All members then voted  in favor, therefore                                                               
the motion to move HB 226 from committee passed unanimously.                                                                    
                                                                                                                                
SENATOR SEEKINS  asked that the  record show  that Representative                                                               
Stoltze had turned three shades of red.                                                                                         
                                                                                                                                
CHAIR OGAN adjourned the meeting at 4:28 p.m.                                                                                   

Document Name Date/Time Subjects