SB 131-DUTIES OF ASMI BOARD; MEANING OF SEAFOOD  4:04:46 PM CHAIR GIESSEL announced the consideration of SENATE BILL NO. 131 "An Act relating to the duties of the Alaska Seafood Marketing Institute; and relating to the seafood marketing assessment." 4:05:37 PM ANNA LATHAM, Deputy Commissioner, Department of Commerce, Community and Economic Development (DCCED), Juneau, Alaska, said SB 131 would allow the Alaska Seafood Marketing Institute (ASMI) to market aquatic farm products (e.g. kelp and oysters). She said that Alaska has an ideal environment for mariculture industry growth and highlighted the long coastlines and history of maritime activity in the state. The mariculture industry also has federal and state support. She stated that Alaska produces more than half of the seafood in the United States. MS. LATHAM opined that expanding mariculture as a renewable resource is a natural progression. The State of Alaska has shown its commitment to developing the state's mariculture industry over the past decade, which creates year-round jobs and supports communities that have experienced a decline in harvest volume and revenue. This expansion would also diversify Alaska's economy. She stated that ASMI has done well in its task of developing an international brand for Alaska's seafood industry. Expanding ASMI's scope to include shellfish could incentivize growth in that emergent sector. SB 131 aligns with the administration's food security initiatives, as successful marketing efforts would allow for the increased production of shellfish. She stated that this would ultimately lead to an increased availability of fresh food in local markets. 4:07:20 PM JEREMY WOODROW, Executive Director, Alaska Seafood Marketing Institute, Juneau, Alaska, paraphrased the sectional analysis of SB 131: [Original punctuation provided.]   SECTIONAL ANALYSIS  SB 131: Duties of ASMI Board; Meaning of Seafood  Version A Section 1: Technical change amending AS 16.51.100(3) to include "or harvest" related to the development of quality specifications and handling of Alaska seafood "from the moment of capture" under duties of the ASMI board. Section 2: Amends AS 16.51.180(7) to include "aquatic farm products" in the definition of "seafood" in ASMI's chapter of statute. MR. WOODROW said that "aquatic farm products" are defined in AS 16.41.099. He explained that current statute prohibits ASMI from marketing mariculture products. He said SB 131 is not tied to SB 108 (which relates to fin fish farming). He emphasized that, should SB 108 pass, SB 131 would not give ASMI the powers to market farmed fin fish. He said ASMI is supportive of two nascent industries in Alaska: farmed shellfish (primarily oysters) and farmed kelp. He stated that in a recent board meeting ASMI unanimously passed a motion in support of changing ASMI statutes to include powers to market Alaska's mariculture products. If SB 131 passes, ASMI would immediately begin to include those products in its global marketing efforts. He briefly described those marketing efforts. SB 131 would also allow ASMI to pursue grant funding for those marketing efforts, on behalf of the mariculture industry. He said that he is not an expert in Alaska mariculture. He added that he anticipates ASMI would adopt a structure that would include Alaskan mariculture experts in ASMI activities and committees. This would ensure that ASMI's actions align with the needs of Alaska's mariculture industry. 4:09:56 PM SENATOR DUNBAR directed attention to SB 131, page 2, line 11, which refers to "aquatic farm" and commented that this term brings to mind farmed fish. He asked whether "mariculture" would be a more accurate term. If so, he wondered if the committee should amend SB 131 and replace "aquatic farm" with "mariculture." 4:10:40 PM MR. WOODWROW shared his understanding that "mariculture " and "aquatic farm" are often interchangeable. He added that there may be nuances with those definitions when used outside of the legislative process. 4:11:04 PM SENATOR DUNBAR said he has heard the term "mariculture" many times; however, he has not heard the term "aquatic farm." He wondered if someone involved in drafting SB 131 could address the question. 4:11:30 PM MR. WOODROW clarified that the term "aquatic farm" is defined in AS 16.41.99. He said the term has been in statute for many years. He shared his understanding that "mariculture" is a newer term and surmised that changing "aquatic farm" to "mariculture" would require changes to other areas of statute. He added that "aquatic farm" seems to be the preferred term in Alaska Statute. He said that "aquatic farm products" refers to products in a controlled environment. 4:12:21 PM SENATOR DUNBAR noted that oysters are grown in a semi-controlled way that often involves open water. He said he does not think of this as "farming" but acknowledged that it is farming of a kind. He opined that, in this case, "mariculture" would be a better term. He expressed his support for SB 131. 4:13:03 PM SENATOR KAWASAKI directed attention to the following definition of "aquatic farm" in AS 16.40.199: [Original punctuation provided.] Sec. 16.40.199. Definitions.  In AS 16.40.100 16.40.199, (1) "aquatic farm" means a facility that grows, farms, or cultivates aquatic farm products in captivity or under positive control; SENATOR KAWASAKI noted that this definition is also used in SB 108 (which relates to fin fish farming). He expressed concern about this overlap and emphasized that he does not want farmed fish to be considered "seafood" - even if it is farmed "under positive control." He noted that some farmed fish are raised in tanks rather than in bodies of water and are therefore not considered "seafood" by the State of Alaska. 4:13:58 PM MR. WOODROW indicated his understanding and suggested that this definition may need additional consideration if the legislature does not want seafood and farmed fish to intersect. 4:14:21 PM SENATOR HUGHES returned to an earlier comment on adjusting the ASMI board to include mariculture expertise. She asked if ASMI has the authority to add board members and/or change board member qualifications - or whether a statutory change is required. 4:14:41 PM MR. WOODROW replied that ASMI does not have authority to change the board. The board membership is set in statute, and members are chosen by the governor. He explained that the ASMI board is authorized to create advisory committees. He explained that advisory committees increase inclusivity, and members are from various sectors of the Alaska seafood industry. He shared his vision (which the ASMI board has discussed) that these committees would expand to include mariculture experts - or perhaps the ASMI board would create a mariculture committee. This would enable the mariculture sector to advise the ASMI board and ensure that decisions made by ASMI are aligned with that sector's needs. 4:15:37 PM CHAIR GIESSEL asked about the current composition of the ASMI board. 4:15:42 PM MR. WOODROW said the board has seven voting members. Five of those are seafood processors (including one small processor). The remaining two members are harvesters. He noted that the harvesters must be engaged in commercial fishing in Alaska. 4:16:50 PM CHAIR GIESSEL opened public testimony on SB 131. 4:17:06 PM CHAIR GIESSEL held public testimony on SB 131 open. 4:17:25 PM CHAIR GIESSEL held SB 131 in committee.