HB 70-ALASKA GROWN AGRICULTURAL PRODUCTS   1:07:36 PM CO-CHAIR JOHNSON announced that the first order of business would be HOUSE BILL NO. 70, "An Act establishing the farm-to- school program in the Department of Natural Resources, the Alaska grown fresh fruit and vegetable grant program in the Department of Education and Early Development, the farmers' market technology improvement pilot program in the Department of Environmental Conservation, and the farmers to food banks pilot program in the Department of Commerce, Community, and Economic Development." CO-CHAIR JOHNSON closed public testimony on HB 70 after ascertaining that no one wished to testify. 1:09:36 PM REPRESENTATIVE CARL GATTO, Alaska State Legislature, sponsor, stated that HB 70 is a way to get Alaska farm products into the classroom and enable schools to have small plots of ground or an entire farm where students can ally with local farmers. SANDRA WILSON, Staff, Representative Carl Gatto, Alaska State Legislature, said the proposed committee substitute, version 26- LS0284\R, Bannister, 2/12/09, adopted as the work draft on 3/18/09, changes the original bill by removing Sections 4, 6, and 7. Section 6 was removed at the request of the Department of Health & Social Services because the department is already working internally on the directives that were included there. Sections 4 and 7 were removed because they are not fiscally responsible to do right now. REPRESENTATIVE GATTO added that Version R essentially takes a lot of the money out of the bill. CO-CHAIR JOHNSON stated that taking a lot of money out of HB 70 was important. The House Resources Standing Committee will deal with the policy aspects of the bill, he continued, and the House Finance Committee can deal with the financial decisions. 1:11:32 PM REPRESENTATIVE GUTTENBERG asked what Sections 4, 6, and 7 would have done. CO-CHAIR JOHNSON reminded members that Version R was adopted at the previous hearing and is before the committee. MS. WILSON replied that Section 4 was the Alaska grown fresh fruit and vegetables grant program, a program aimed more toward low income, farmers' markets, and food banks. Section 6 was related to allowing food stamps at farmers' markets, which is the program that the Department of Health & Social Services is already working on internally. Section 7 was related to getting fresh fruits, vegetables, and home grown products into the food banks through a pilot program. 1:12:59 PM REPRESENTATIVE GUTTENBERG inquired whether the program at Calypso Farm & Ecology Center, located near Fairbanks, is already doing what HB 70 would do. FRANCI HAVEMEISTER, Director, Central Office, Division of Agriculture, Department of Natural Resources, said young people do work within Calypso Farm and some of the food does go back into the school program. She understood, however, that HB 70 would oversee the entire state and not just one community. In further response, she agreed that Calypso Farm's gardening and farming program is done at three or four schools in the Fairbanks area. The farm also hires youth to come in and work the program for six week slots, she added. REPRESENTATIVE GUTTENBERG asked whether HB 70 would preclude Calypso Farm from the program or create another state agency that is doing what the farm is doing. MS. HAVEMEISTER said she does not know. The program under HB 70 does not talk about hiring youth to come in and work during the summer, it only puts agriculture into the classroom as far as education and possibly summer gardens. However, she allowed, there is a possibility of an overlap. 1:14:54 PM REPRESENTATIVE SEATON inquired whether adding the word greenhouse after garden throughout the bill would be beneficial to the sponsor. REPRESENTATIVE GATTO agreed that this is a great idea because the omission was an oversight. REPRESENTATIVE SEATON said schools in this program would likely have a greenhouse, so he wants to ensure there is no distinction between having the farm in a garden or a greenhouse. CO-CHAIR JOHNSON interjected that this would also address the concerns of some of the students who testified. REPRESENTATIVE GATTO added that some things can only be grown in greenhouses and those would be excluded if the bill is not amended as is being suggested by Representative Seaton. REPRESENTATIVE SEATON asked whether adding greenhouses to HB 70 would create any problems for the Division of Agriculture. MS. HAVEMEISTER answered no. 1:17:02 PM REPRESENTATIVE GUTTENBERG inquired whether anything in HB 70 would prevent Calypso Farm or any other farm entity from taking a grant and becoming the agent to administer this program in Fairbanks or other communities. MS. HAVEMEISTER replied there is nothing she is aware of, but there is no fiscal note in HB 70 for pass-through grants, so a fiscal note would have to be addressed somewhere. REPRESENTATIVE SEATON referenced page 6, lines 11-13, which state that the school garden or farm must be used for educational purposes and growing produce that will be served in the school district's meal program. He asked whether any excess produce could be sold if the revenues are used to support the program and make it more self sufficient. REPRESENTATIVE GATTO said he thinks turning any revenues back to the state would be applauded by most people. MS. HAVEMEISTER agreed that it would be a possibility. CO-CHAIR JOHNSON cautioned against the schools getting into competition with private growers and urged that any revenues only go toward supporting the program. 1:20:06 PM REPRESENTATIVE SEATON moved that the committee adopt Conceptual Amendment 1 as follows: Page 6, line 10, following "gardens": Insert ", greenhouses" Page 6, line 11, following "school garden": Insert ", greenhouse" Page 6, line 11, following "The garden": Insert ", greenhouse" Page 6, line 14, following "garden": Insert ", greenhouse" Page 6, line 17, following "garden": Insert ", greenhouse" Page 6, line 20": Insert a new subsection to read: "(d) When a school garden, greenhouse, or farm is used the excess fruits or vegetables may be sold, if the revenues are used to support the program." REPRESENTATIVE WILSON objected. CO-CHAIR JOHNSON objected for discussion purposes. REPRESENTATIVE SEATON reiterated that he wants to ensure this applies to school farms and gardens as well as greenhouses. Therefore, greenhouse or greenhouses needs to be inserted in a number of places in the bill, and probably in the title as well, which is why the amendment is conceptual. Regarding the proposed addition of subsection (d), he said he does not want this to compete with raising money for other school activities, so this directs that any revenues must go back to support the program, which will help to make the program more sustainable. REPRESENTATIVE WILSON removed her objection. [Co-Chair Johnson's objection was treated at removed.] There being no further objections, Conceptual Amendment 1 was passed. 1:22:33 PM CO-CHAIR JOHNSON returned discussion to the bill. REPRESENTATIVE GUTTENBERG remarked that encouraging student understanding of where produce comes from is exactly what should be done. He said he thinks farmers are more concerned about economy of scale and developing a larger market than competition from a school program. He offered his support for HB 70. REPRESENTATIVE SEATON moved to report the work draft, labeled 26-LS0284\R, Bannister, 2/12/09, as amended, out of committee with individual recommendations and forthcoming fiscal notes. There being no objections, CSHB 70(RES) was reported from the House Resources Standing Committee.