CS FOR SENATE BILL NO. 353(RES) "An Act relating to the labeling of animal and poultry feeds and to the agriculture program coordinator; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. JANE WINEINGER, Staff to Senator Green, testified this bill relates to agricultural programs and creates an Agricultural Coordinator position within the Division of Agriculture to oversee organic crop inspections, feed labeling and noxious weeds. Ms. Wineinger noted Alaska is the only state without a feed labeling process and that currently some feed imports into the State contain weed seeds. She asserted Alaska has a problem with noxious weeds, although not as serious as in other Western states that must spend millions of dollars on eradication. She instructed how noxious weeds impact the agriculture lands, railroad right-of- ways, and hunting lands. PETER FELLMAN, Staff to Representative John Harris, testified via teleconference from Delta, that the industry requested assistance in this matter. He told that as the agriculture industry has grown in the State, the issue of noxious weeds has increased; however, little funding has been provided to the Division of Agriculture. Mr. Fellman informed that the federal government changed the standards regarding the definition of organic and this legislation would update State statutes to match the federal provisions. He stated the Agricultural Coordinator would monitor the farmers to ensure they meet the organic standards. Mr. Fellman reiterated Alaska is the only state that does not monitor the labeling of feed. He stressed that with the outbreaks of mad cow disease, feed labeling has become important. He expressed intent to verify that feed producers in Alaska are using the ingredients they claim, as well as ensuring that rendered animal parts, which could include contaminants, are not used. Mr. Fellman listed the third purpose of the Agricultural Coordinator to control noxious and invasive weeds. He noted that in the previous year, funding was secured to attempt to control noxious and advancing weeds. He specified Canadian Sow Thistle, a hearty three to six foot tall rhizome plant that is difficult to eradicate and kills grass. He noted the plant has migrated north and is present in the Fairbanks area. He expressed concern that this weed would endanger native plant species. Mr. Fellman warned that addressing the problem immediately is the only way to control these weeds without expending millions of dollars. He indicated efforts have begun, but that a statewide coordination is necessary. He also spoke of the importance of documenting the presence of invasive weeds to obtain federal funding to address the matter. Mr. Fellman admitted the fiscal note is significant, but cautioned that if the problems are not controlled the long-term costs would be considerably higher. Senator Ward moved to adopt CS SB 353, 22-LS1663\J, as a working draft Senator Olson objected. Senator Olson asked the number of mill feed operations in the State. Mr. Fellman listed three and noted Alaska Mill and Feed has voiced support of this legislation. ROBERT WELLS, Director, Division of Agriculture, Department of Natural Resources, testified via teleconference from an off-net site in Palmer to note there might be an additional mill feed operator. Senator Olson asked about input from other operators. Mr. Wells answered that the only business that has offered an opinion on this legislation has been Alaska Mill and Feed. Mr. Wells did not anticipate any opposition from the manufacturers, noting they currently label products in accordance to the laws of the State of Washington. He assured the Division "is committed to working with the feed producers," and he was confident the Department could establish an effective working relationship with industry and not impose onerous regulations on the businesses. He emphasized the feed labeling issue has arisen due to concerns about rendering plants and the contents of food fed to animals. He shared that the Federal Drug Administration has indicated the State Division should have greater participation in the monitoring of feed manufacturers. AT EASE 9:58 AM / 10:01 AM Senator Olson stated his intent to hear directly from industry on this legislation, as it is their livelihood that is affected by the feed they produce. Co-Chair Kelly asked if Senator Olson had specific objections with the provision in the proposed committee substitute. Senator Olson had no specific objection to the committee substitute. A roll call was taken on the motion. IN FAVOR: Senator Ward, Senator Wilken, Senator Austerman, Senator Green, Senator Hoffman, Senator Leman, Senator Olson, Co-Chair Donley and Co-Chair Kelly OPPOSED: none The motion PASSED (9-0) The committee substitute was ADOPTED as a working draft. Senator Ward expressed he was unsure whether he clarified his motion to adopt the committee substitute as a working document and surmised this caused confusion. Senator Hoffman understood that Senator Olson's concern is with passing this bill from Committee without input from the feed producers. Co-Chair Kelly announced he would hold the bill in Committee to allow members an opportunity to solicit opinions from feed producers. Senator Green referenced a University of Alaska report titled "Strategic Plan for Noxious and Invasive Plants Management in Alaska". She stressed did not want the weed situation to advance and become as serious as in other states. Co-Chair Kelly asked if there is a similar bill pending in the House of Representatives. Senator Green affirmed. Senator Austerman asked if this legislation also addresses seed products imported to the State for planting and whether it would provide for certification of the absence of noxious weed seed in these products. Senator Green affirmed. Mr. Wells furthered that the Division "encourages" that imported seed be certified. He understood that feed labeling requirements in other states require disclosure of purity and germination rates. He noted that farmers are "pretty cautious" about the seeds planted to avoid weed infestation in their fields. Senator Leman commented he is "skittish" about adding new State positions, especially those established in statute. However, he understood the necessity of this position and the importance of it serving an advisory function rather than having the authority to close an industry. He hoped this position could be shared with the University of Alaska, Cooperative Extension Service, Plant Materials Center, to allow maximized resource and minimized cost. He expressed intent to pursue this option. Amendment #1: This amendment provides that Section 7 of this committee substitute, which stipulates that this legislation does not apply to meat, fish or poultry, take effect July 1, 2002. This amendment also inserts a new Section 14 to provide that Section 8, AS 03.60.006. Agriculture program coordinator, of the committee substitute take effect January 1, 2003. Senator Leman moved for adoption. There was no objection and the amendment was ADOPTED. Co-Chair Kelly suggested Senator Olson communicate with Mr. Fellman regarding his concerns about the impacts of this legislation on industry. Co-Chair Kelly appreciated Senator Olson's considerations for their interests. Co-Chair Kelly ordered the bill HELD in Committee.