CS for HOUSE BILL NO. 257 "An Act transferring duties relating to aquatic farming and hatchery operations from the Department of Fish and Game to the Department of Natural Resources, eliminating certain permit requirements applicable to aquatic farming and hatchery operations, and directing the Department of Natural Resources to administer and supervise promotional and marketing work for aquatic farm products; and providing for an effective date." JOHN BITNEY, STAFF, REPRESENTATIVE JOHN HARRIS, presented the bill overview stating that an earlier version of the bill planned for the management transfer of aquatic farming from the Department of Fish and Game to the Department of Natural Resources. He reported that this transfer was not supported by the Administration or the bill's sponsors. When the bill left the House Fisheries Committee it was changed into the present bill. The bill now allows aquatic farming products to qualify, within the Department of Natural Resources, for the "Alaska Grown" promotional and marketing program. Mr. Bitney referred to the attached Amendment where he would like the Committee to consider removing the word "hatchery." He also mentioned one fiscal note attached to the bill. 3:32:38 PM ROGER PAINTER, PRESIDENT, ALASKA SHELLFISH ASSOCIATION, remarked of the bill's necessity because earlier legislation inadvertently changed the definitions in the Statutes and has prevented aquatic farm products from qualifying for the Alaska Grown label. He mentioned that there were currently thirteen grandfathered farms using this label when the definition problem was discovered. The rest of the farmers would also like to use the label. Vice-Chair Stoltze wanted reassurance that costs were not being transferred from the fish industry to the Department of Agriculture for inspections or other required work. 3:35:41 PM Mr. Painter responded that aquatic farms do qualify for agriculture assistance and a number of aquatic farms have received loans from the Farms Service Agency. He remarked that aquatic farmers are subject to regulations under the Food and Drug Administration and the Department of Environmental Conservation. Vice-Chair Stoltze asked for assurance that the aquatic farmers would not impose any additional costs or services on other departments. 3:37:47 PM Mr. Painter responded that no additional costs would be incurred as farmers who currently use the "Alaska Grown" label only use the label and require no special promotion from the department. 3:38:32 PM Representative Thomas MOVED to ADOPT Amendment 1: Page 2, line 2 After "farm" Delete "and hatchery" Page 2, line 31 After "farms" Delete "and hatcheries" Co-Chair Meyer OBJECTED for discussion. 3:39:48 PM Co-Chair Meyer WITHDREW his OBJECTION. There being NO OBJECTION, it was so ordered. Vice-Chair Stoltze remarked that the Department of Natural Resources fiscal note contradicts Mr. Painter's comments that the aquatic farmers do not expect to receive other benefits. 3:41:40 PM Mr. Bitney discussed the fiscal note for $11,500. He said $5000 was for travel to visit aquatic sites and the $6,500 was for marketing or promotional items. 3:44:25 PM FRANCI HAVEMEISTER, DIRECTOR, DIVISION OF AGRICULTURE (Testified via teleconference), indicated that the division is willing to cooperate with the Division of Land, Mining and Water, the Department of Environmental Conservation and Department of Fish and Game to get this program under the marketing division. 3:45:19 PM Representative Kelly MOVED TO REPORT CSHB 257 (FIN) out of committee with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSHB 257 (FIN) was REPORTED out of Committee with a "do pass" recommendation and new fiscal notes by the Department of Natural Resources and House Finance committee and a previously published fiscal note by the Department of Fish & Game. 3:46:37 PM