HB 257-TRANSFER AQUATIC FARMING TO DNR 8:35:04 AM CHAIR SEATON announced that the first order of business would be 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." 8:36:41 AM REPRESENTATIVE JOHANSEN moved to adopt CSHB 257, Version 25- LS0676\K, Kane, 2/13/08, as the working document. There being no objection, Version K was before the committee. 8:37:02 AM JOHN BITNEY, Staff to Representative John Harris, Alaska State Legislature, explained that all provisions of HB 257 were eliminated, save Sections 1 and 30. Version K, in its simplicity, creates a provision in statute for the Alaska Grown Program to include mariculture products; for promotional/marketing purposes. 8:39:28 AM REPRESENTATIVE LEDOUX noted that the sponsor is Representative Harris "by request," and she inquired as to who requested the legislation. MR. BITNEY said that he doesn't know who specifically requested HB 257, although he said there are significant proponents of mariculture who have been dealing with the issue of sorting out the purview for mariculture. REPRESENTATIVE LEDOUX inquired why "by request," is sometimes used. MR. BITNEY opined that at times the sponsor may want to reflect that someone has brought the matter to his/her attention. 8:41:57 AM REPRESENTATIVE EDGMON, referred to page 2, paragraph (3), and read: "assist prospective settlers and others desiring to engage in the agricultural industry." He asked for clarification of the use of the language "prospective settlers," and to whom it is directed. MR. BITNEY pointed out that lines 6-9 [paragraph (3)] is longstanding, statutory language that exists under Title 3; regarding the DNR commissioner responsibilities as related to agriculture. 8:44:02 AM CHAIR SEATON said: The reason this is addressing Department of Natural Resources, although what we're mainly talking about is the regulation of mariculture within fish and game [ADF&G], is because the Alaska Grown logo is part of [Division of Agriculture], and this is going to that marketing piece. Is that correct? MR. BITNEY noted his agreement. The marketing of Alaska Grown products is administered through the Division of Agriculture, DNR, and mariculture management is under the purview of ADF&G. 8:45:42 AM DOUG WARNER, Manager, Inspection/Marketing Services, Division of Agriculture, Department of Natural Resources (DNR), stated support for Version K, and the authority it provides to implement marketing for the Alaska mariculture program. Currently some shellfish and oyster farmers are able to participate, in the program via grandfather rights, but new/developing mariculture farmers do not qualify. The language in the bill will authorize the extension of the Alaska Grown program to those individuals, and he described the success of the program. The regulations for the Alaska Grown products are undergoing revision, making this legislation timely for expansion of the plan to include aquaculture. 8:49:11 AM JOHN HILSINGER, Director, Division of Commercial Fisheries, Alaska Department of Fish & Game (ADF&G), stated official support for Version K. 8:50:38 AM REPRESENTATIVE LEDOUX referred to the original bill, and recalled previous hearings, which indicated a concern regarding ADF&G's ability/resource availability to properly research mariculture, thus hindering the formation of this new industry. However, Version K only addresses the marketing and promotional aspect. She questioned how marketing can occur, if there are no funds to research mariculture and create a healthy industry. CHAIR SEATON pointed out that today's presentation will address that situation. 8:52:38 AM REPRESENTATIVE JOHANSEN directed attention to the fiscal note and inquired about the current status of the two positions being proposed for transfer from ADF&G to DNR. MR. HILSINGER explained that the fiscal note for the original HB 257 would have transferred two positions; Version K holds no fiscal note for ADF&G. REPRESENTATIVE JOHANSEN surmised then that the DNR fiscal note may still be accurate. 8:54:07 AM REPRESENTATIVE LEDOUX asked what is the advantage of having the marketing of aquatic farmed, and hatchery products, administered by DNR, as opposed to the Alaska Seafood Marketing Institute (ASMI). MR. HILSINGER responded that farmed shellfish products are considered a farm product; different than the commercially harvested products. He then deferred to the industry representative. 8:56:39 AM PAUL FUHS, Lobbyist, PAC Alaska, LLC, Seafarms Alaska, stated support for HB 257, and said it will be of benefit to the mariculture industry in their marketing endeavors. In reply to Representative LeDoux's inquiry, he said that DNR has established that marketing of farmed products be labeled Alaska Grown, while ASME promotes the market of Alaska Wild. Mariculture fits well under the Division of Agriculture, he opined. 8:58:01 AM RODGER PAINTER, President, Alaskan Shellfish Growers Association (ASGA), expressed support for Version K. He said that a number of shellfish farmers are under the program, and others would like to be involved. He recalled being a board member of ASME, and said that the shellfish farmers do play a small part in the ASME scheme. Further, he informed the committee that ASGA is credited for requesting that Representative Harris introduce this bill. 9:00:16 AM CHAIR SEATON closed public testimony. 9:01:01 AM REPRESENTATIVE JOHANSEN moved to report CSHB 257, Version 25- LS0676\K, Kane, 2/13/08, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 257(FSH) was reported from the House Special Committee on Fisheries. 9:01:27 AM CHAIR SEATON asked if Version K has a fiscal note attached. MR. WARNER answered yes. The fiscal note addresses the need to provide a minimum amount of support to the shellfish farming industry. He said that the Alaskan Grown Program intends to cooperate with ASME in order to compliment both marketing efforts. Passage of Version K allows the state to enter into market access programs administered by the USDA (United States Department of Agriculture). The fiscal note total is $132.7 thousand.