HOUSE BILL NO. 60 "An Act relating to aquatic farm permitting involving geoducks and to geoduck seed transfers between certified hatcheries and aquatic farms." 10:05:19 AM REPRESENTATIVE PAUL SEATON, introduced HB 60 and referred to the sponsor statement (copy on file). Shellfish farming has the potential to diversify the economic base of coastal communities impacted by the changing dynamics of the fishing industry. HB 60 allows this expansion of this clean water industry by permitting geoducks to be farmed sub tidally in the Gulf of Alaska even if wild geoducks are not present. The bill does not exempt farmers from any health, safety, or other transfer provisions relating to hatchery seed. The Alutiiq Pride Shellfish Hatchery is the only hatchery that supplies mariculture spat and seed in the State. It was initiated by the State to be a self- sustaining operation in association with the private mariculture farms permitted by the State. Their business plan relies on the sale of geoduck seed. However, an informal policy of the Department of Fish and Game prevents geoduck seed from being utilized by farms anywhere outside of southeast Alaska. These restrictions on the sale of geoduck seed cause the sole hatchery for the mariculture industry in Alaska to require continual subsidy by the State. HB 60 will allow the mariculture industry to develop around the Gulf of Alaska, providing a potentially strong market for seed and private sector financing for the operation of the hatchery. As non-mobile filter feeders eating plankton, farmed geoducks will not prey on any local commercial, sport or personal use fish. There have been no reports of species displacement in the sedimentary habitat by geoduck clams. Farmed geoducks will not interfere with personal recreational boaters as they are cultivated in the sediment below low tide and without the numerous buoys and floating cages used in oyster farms. No infectious disease has been identified in any wild geoduck population or the geoduck farming industries of Washington, British Columbia, or Alaska. The conflict involving geoducks in southeast Alaska is between the dive fishermen who harvest wild stock and farmers who wish to farm in areas with existing wild stock. HB 60 would circumvent this conflict because there is no wild geoduck stock in the proposed area. This bill will not override any Department of Natural Resources farm site leasing or Department of Fish & Game permit regulation. HB 60 eliminates unnecessary hindrances to the growth of the mariculture industry in Alaska and provides a potential alternative economic 10:09:48 AM JEFF HETRICK, DIRECTOR ALUTIIQ PRIDE SHELLFISH HATCHERY, SEWARD (via teleconference), testified in support of HB 60 and related that legislation reflected the support of the Mariculture Industry. He shared that geoducks would grow well in southeast Alaska and that they would not conflict with any natural species. ROGER PEINTER, PRESIDENT, ALASKA SHELLFISH GROWERS ASSOCIATION, KAKE (via teleconference), expressed support for HB 60 and stated the legislation was a clean economic development opportunity for south central Alaska. Co-Chair Stedman discussed the two zero fiscal notes from the Department of Natural Resources (DNR) and Department of Fish and Game (DFG). HB 60 was HEARD and HELD in committee for further consideration.