HB 329-AQUATIC FARM AND HATCHERY LEASES                                                                        
                                                                                                                                
1:45:05 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY  announced that the  next order of business  would be                                                               
CS  FOR  HOUSE BILL  NO.  329(FSH),  "An  Act relating  to  state                                                               
tideland  leases;   relating  to  geoduck  seed   transfers;  and                                                               
relating to  aquatic farming or  related hatchery  operation site                                                               
leases."                                                                                                                        
                                                                                                                                
1:45:37 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY opened public testimony on CSHB 329(FSH).                                                                           
                                                                                                                                
1:45:58 PM                                                                                                                    
                                                                                                                                
NANCY   HILLSTRAND,  Owner,   Pioneer   Alaskan  Fisheries   Inc,                                                               
testified in  opposition to CSHB  329(FSH).  She shared  that she                                                               
has operated a  seafood processor for 25 years.   She argued that                                                               
the  state should  not  be  closing access  to  up  to 180  acres                                                               
without  adequate monitoring.   She  cited AS  38.05.083, arguing                                                               
that subsections  (c) and (f) should  stay the same.   On line 27                                                               
of the  proposed legislation,  she argued  that "may  provide for                                                               
the consideration"  should be  "must provide".   She  stated that                                                               
leases in tidelands are important  to Alaskans, and this would be                                                               
a giveaway  to certain people.   Concerning the fiscal  note, she                                                               
questioned  whether the  Department  of Revenue  would be  losing                                                               
money if  the bill were passed.   She expressed the  opinion that                                                               
leases do not need to be more  than 10 years.  She suggested that                                                               
the  state  should  wait  for the  progress  of  the  mariculture                                                               
industry  before  passing legislation  and  work  with it  as  it                                                               
progresses.                                                                                                                     
                                                                                                                                
1:47:45 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY,  after ascertaining that  there was no one  else who                                                               
wished to testify, closed public testimony on CSHB 329(FSH).                                                                    
                                                                                                                                
CHAIR MCKAY announced that CSHB 329(FSH) would be held over.