HOUSE BILL NO. 204 "An Act relating to elk farming." PETE FELLMAN, STAFF, REPRESENTATIVE HARRIS spoke in support of HB 214. He explained that HB 204 is an effort to address the needs of domesticated elk farmers in the state. The Department of Fish and Game currently has the statutory authority to regulate domesticated and wild elk stock. The legislation would move the regulation of domesticated elk into the Department of Natural Resources, Division of Agriculture. The department, industry and the state veterinarian support the legislation. Vice Chair Bunde questioned the fiscal cost. Mr. Fellman observed that farmers pay a $250 dollar annual fee for fence inspections. The fiscal note covers $1.5 thousand dollars for additional inspections. Vice Chair Bunde maintained that the animals will escape and asked if the Department of Natural Resources considered the impact of escaped animals on other Alaskan resources. CAROL CARROLL, DIRECTOR, DIVISION OF SUPPORT SERVICES, DEPARTMENT OF NATURAL RESOURCES stated that the department will inspect fences and issue licenses. She did not have information on the impact of escaped animals. She pointed out that there are already elk in Alaska. Mr. Fellman emphasized that the animals are valuable and estimated that owners would keep track of them. He added that the animals would be tested for disease prior to their importation. Representative Phillips agreed that the farmers would not risk losing the animals and noted the value of the elk. Co-Chair Therriault pointed out that the Department of Fish and Game supports the legislation. In response to a question by Vice Chair Bunde, Mr. Fellman observed that the Department of Fish and Game currently regulates the animals. The intent is to transfer regulation to the Department of Natural Resources MARCIA WARD, WARD FARMS, DELTA JUNCTION testified via teleconference in support of HB 204. She gave a brief history of elk farming in Alaska. Ward Farms was begun on the Kenai Peninsula in 1990. The legislation places domestic elk farming in the Division of Agriculture, with other domestic farm stock. She assured the Committee that fences are adequate; the fences are eight feet high and made sturdy enough to withstand: buffalo, elk, or deer. She added that elk are territorial and maintained that an elk that escape would attempt to return. Elk cost from $4,500 to $10,000 dollars each and are more valuable than beef cattle or bison. Elks are tagged for identification. She pointed out that elk have passed health inspections and stressed that elk farmers are concerned that disease from wild Caribou stock could infect their elk. Elk farmers pay a $250 dollar fee every two years. She observed that they are the only livestock industry that pays a licensing fee. Representative Phillips spoke in support of the legislation. She emphasized that the elk industry is successful and is good for Alaska. Representative Austerman asked if there had been problems with bears. Ms. Ward noted that the elk are aggressive and have repelled bears. She stressed that the fence can withstand a tree falling on it and that there have been no problems with predators. Representative Austerman asked if wild Southeast elk could be certified for domestication. Ms. Ward responded that she did not think that the Department of Fish and Game would allow wild elk to be domesticated. She stated that veterinarians in the state could test them. She emphasized that elk farms would quarantine wild elk before exposing their domesticated herds. In response to a question by Representative J. Davies, Ms. Ward emphasized that it is easier to have all of the regulations under one department. Branding and health services are under the Department of Natural Resources, while licensing and inspections were under the Department of Fish and Game. Ms. Ward noted that there are nine elk farmers in the state and that the industry is growing. Representative Foster MOVED to report CSHB 204 (RES) out of Committee with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSHB 204 (RES) was REPORTED out of Committee with a "do pass" recommendation and with three fiscal notes: a fiscal impact note from the Department of Natural Resources; a fiscal impact note from the Department of Fish and Game, dated 3/8/00; and a zero fiscal note from the Department of Environmental Conservation, dated 3/8/00.