HRES - 03/08/95                                                               
 HB 195 - REPEAL MILK MARKETING LAWS                                         
                                                                               
 REPRESENTATIVE AL VEZEY, PRIME SPONSOR, stated last year, the                 
 legislature repealed the milk marketing board along with a number             
 of other boards and commissions.  He said the statute regarding the           
 state regulating the marketing of milk is still on the books.  He             
 explained HB 195 would simply remove that statute from the books              
 and relieve the Department of Natural Resources (DNR) of an                   
 obligation to administer another part of the market.                          
                                                                               
 REPRESENTATIVE VEZEY said it was his understanding that there are             
 people in Alaska opposed to the repeal of this regulation because             
 they think the state should be in the business of regulating milk             
 marketing.  He felt the statute should be taken off the books.                
                                                                               
 CO-CHAIRMAN GREEN agreed.  He said the committee substitute would             
 only place a period after the word "orders" in the title of HB 195.           
 Therefore, the title would read, "An Act repealing the laws                   
 authorizing milk marketing orders."                                           
                                                                               
 REPRESENTATIVE VEZEY said that is correct.  He added that the                 
 statute has been on the books since 1962 and to date there has                
 never been a milk order issued.                                               
                                                                               
 Number 094                                                                    
                                                                               
 NICO BUS, ACTING DIRECTOR, DIVISION OF SUPPORT SERVICES, DNR, said            
 the department is neutral on HB 195.  The department currently does           
 not have any activity in milk marketing orders.  He stated the                
 market is such that milk has to be purchased from the outside.  He            
 noted if that fact would change, this statute would enable the                
 department to do the milk marketing ordering.                                 
                                                                               
 CO-CHAIRMAN GREEN noted attempts at the dairy industry in the state           
 have not been successful.  He wondered if the state re-energized a            
 local dairy industry, what effect would HB 195 have.                          
                                                                               
 MR. BUS responded with the mental health settlement and the Point             
 McKenzie properties, some grazing lands might become available for            
 dairy.  He said if that would happen and there was a surplus of               
 milk, this statute would be useful.                                           
                                                                               
 Number 143                                                                    
                                                                               
 CO-CHAIRMAN GREEN clarified that HB 195 is merely a house cleaning            
 measure to clean up laws no longer applicable.                                
                                                                               
 MR. VEZEY replied the bill is an effort to clean up the statute but           
 it is also questionable, without a commission, whether or not the             
 statute can be administered.  He also felt the state should not be            
 regulating commodities.                                                       
                                                                               
 CO-CHAIRMAN GREEN clarified if the state got a viable dairy                   
 industry going, Representative Vezey feels there is no need for               
 this statute.                                                                 
                                                                               
 MR. VEZEY replied no.  He said the statute was put together at a              
 time when dairy output was allocated.  The idea was the state would           
 allocate production quotas to different dairies.  He stated it is             
 not an area of commerce the state needs to be regulating.  He noted           
 the sector of the state's economy where agriculture is being                  
 successful is where it has minimal government regulation.                     
                                                                               
 REPRESENTATIVE ALAN AUSTERMAN made a MOTION to AMEND HB 195 to                
 change the title to read, "An Act repealing the laws authorizing              
 milk marketing order."                                                        
                                                                               
 CO-CHAIRMAN GREEN asked if there were any objections.  Hearing                
 none, the MOTION PASSED.                                                      
                                                                               
 Number 188                                                                    
                                                                               
 REPRESENTATIVE AUSTERMAN made a MOTION to MOVE CSHB 195(RES) with             
 accompanying zero fiscal note with individual recommendations.                
                                                                               
 CO-CHAIRMAN GREEN asked if there were any objections.  Hearing                
 none, the MOTION PASSED.