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 second hearing for this bill in the Senate Finance Committee. Senator Ward noted Senator Olson's intent to change the funding source for this legislation from general funds to receipt supported services funds. Senator Olson informed he has spoken to industry representatives to get their input on this bill, as the legislation would impact them. KEN SHERWOOD, Alaska Mill and Feed Company, testified via teleconference from off-net site that he does not oppose this legislation because the company complies with the labeling laws of the State of Washington. He expressed he would like the requirements to be identical to federal regulations. He was concerned that the language in the bill is "vague". DENNIS GREEN, Owner, Green and Son, testified via teleconference from an off-net site in Delta Junction about the activities of the company. He stated he would prefer the legislation not be enacted at this time, as it would place a "strain" on those affected. He understood a statute would be necessary at some point, but requested a delay. ROBERT THOM, Budget Feed and Farm Store, testified via teleconference from an off-net site in Palmer that the company has been producing feed in Alaska for 25 years. He stressed the need to regulate feed imported into the State. He spoke of chemical additives used to "boost" the protein content of feed, which Alaska manufacturers are currently unable to produce but this legislation would allow. Senator Olson asked for clarification of whether the previous witness favored or opposed the legislation. Mr. Thom indicated he supports the legislation. HERB SIMON testified via teleconference from an off-net site in Nelchina that he has been manufacturing and selling feed for 25 years. He opposed the bill because it requires "manpower increases in the overall State structure", which he asserted is "diametrically opposed" to an appropriate legislative mandate. He was unfamiliar with the organic farming and weed control portions of the bill. He asserted the feed manufacturing industries would be unable to comply with the new statutes because of a lack of infrastructure and the time involved to obtain laboratory results on the exact protein content. He continued that Alaska has been known as a "dumping ground" for outdated feed products and he surmised the protein content listed on product labels would be considerably less because the protein level reduces quickly, especially if the product is not properly stored. He opposed the imposition of mandated standards that are impossible to achieve. PETER FELLMAN, Staff to Representative John Harris, testified via teleconference from Delta Junction that although Alaska has a "truth in labeling" law, there is insufficient manpower in the Division of Agriculture to enforce it. This legislation, he stressed, would provide staff to implement the existing law. He informed of the laboratories available to perform nutrition testing. He remarked if feed is properly stored as instructed on the package, the nutrition level should be maintained. He spoke to the lack of labeling requirements in Alaska that are present in every other state. He surmised that if a manufacturer is producing nutritional feed, there should be no problem with complying with these provisions. He asserted that those feeding pets and farm animals have a right to know that the feed purchased is nutritious. Senator Leman asked if the witness agreed with the fiscal note that a full time position is necessary to implement this statute or whether the duties could be shared with existing staff or a part time staff. Mr. Fellman told of the three duties this legislation would create and agreed that one full-time position is unnecessary for each duty. However, he noted the combination of the duties would amount to the necessity of a full-time position. Senator Leman asked if one person could be found who is qualified to perform all three duties. Mr. Fellman replied this is possible and emphasized that successful performance of the duties would require good organization and attention to detail. He qualified some training would be required to educate the employee about testing feed samples and to become a organic certifier. He informed this training is not difficult. Co-Chair Kelly referred to Section 5 of the bill relating to civil liability that increases the amount of the fines levied. He asked the purpose of changing this provision from regulatory to statutory. Mr. Fellman was unprepared to respond to this issue and offered to research the matter. PHIL KASPARI Cooperative Extension Service, University of Alaska- Fairbanks, testified via teleconference from Delta Junction that he is available to address questions relating to noxious weeds. Co-Chair Kelly suggested Senator Leman and Senator Olson work with Senator Green on revising the fiscal note. Senator Leman expressed his intent to review the workload of the proposed position, as it did not appear to require full time attention. Co-Chair Kelly indicated hesitation to change the fiscal note without input from the bill's sponsor, Senator Green, who was absent from this meeting due to illness. Senator Leman addressed the amendment he had offered at the prior hearing for this bill, which was adopted and which changed the effective date of the new position. He pointed out the adoption of regulations does not conform to this change and that a correction is necessary. AT EASE 10:12 AM / 10:14 AM 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 to rescind action taken at the previous hearing to adopt this amendment. There was no objection and the action adopting this amendment was RESCINDED. Senator Leman offered a motion to withdraw this amendment. The amendment was WITHDRAWN without objection. Amendment #2: This amendment inserts a new Section 14 to provide that Section 1 and Section 8 of the committee substitute take effect January 1, 2003. Section 1 relates to AS 03.05.010(a)(7) establishing requirements for the labeling of animal an poultry feeds, and Section 8 adds a new section to AS 03.60: AS 03.60.006. Agriculture program coordinator. Senator Leman announced he would NOT OFFER this amendment. Amendment #3: This amendment provides that Sections 1 and 8 take effect January 1, 2003. Senator Leman moved for adoption. The amendment was ADOPTED without objection. Senator Wilken referenced page 1, line 12 of the bill and asked if farmed shellfish would qualify as a raw or processed aquiculture product under the organic certification provision of this legislation. Mr. Kaspari understood that aquatic products are not included in the provisions of this legislation and deferred to Mr. Wells for confirmation. ROBERT WELLS, Director, Division of Agriculture, Department of Natural Resources, testified via teleconference from off-net site in Palmer that the Department of Environmental Conservation has responsibility over the inspection of meat and seafood products. He stressed this legislation only addresses land-based, terrestrial products, i.e. vegetables, etc. Co-Chair Kelly ordered the bill HELD in Committee. AT EASE 10:18 AM / 10:18 AM