SB 24-LEGIS APPROVAL OF SEAFOOD/FOOD SAFETY LAB    CHAIRMAN TORGERSON announced SB 24 to be up for consideration. MS. JANICE ADAIR, Director, Division of Environmental Health, Department of Environmental Conservation (DEC), explained this bill would authorize the sale of certificates of participation to construct a new seafood and food safety laboratory. The lab is in a 30 year-old building and the lease has expired, although DEC is exercising two one-year extensions. The building is also up for sale, but state law prohibits DEC from entering into another long- term lease because it requires either a 10 percent reduction in the lease rate and ADA compliance or a 15 percent rate reduction. The building is ADA compliant, so DEC would have to get a 15 percent reduction. DEC currently pays $1.03 per square ft. and the owner is not interested in a further reduction. MS. ADAIR explained that this laboratory does all the paralytic shellfish poisoning (PSP) testing and shellfish growing water analysis for shellfish that's commercially grown in the state. It analyzes crab for demolic acid, a marine toxin that causes one to lose short-term memory. It tests smoked seafood that has to meet certain federal requirements before it can be sold out of state. It evaluates dairy products processed in Alaska so those products can be sold to schools, the military and other facilities that use federal funds to buy dairy products. The lab also certifies commercial laboratories that do drinking water analysis required under the federal Safe Drinking Water Act. With money that's been previously appropriated by the legislature both in FY 99 and FY 01, MS. ADAIR said, DEC hired a private consultant to find out the most cost effective way to replace the facility. The end result of that work was that the most cost effective approach would be a state-owned facility in a location that is centrally located to the different shellfish and seafood processors who have to use the services of the lab. DEC realizes there is not one good location. She said DEC looked for state-owned land to keep the price as low as possible and for land that was in close proximity to the Anchorage International Airport, since seafood is sent to the lab from all over the state. MS. ADAIR said DEC has selected a site near Boniface and Tudor, which has already been leveled. She stated, "One way or the other, we have to move out of the facility that we are in and we want to bring forward to you the most cost effective approach we could recommend and I believe that is what this bill would do." CHAIRMAN TORGERSON asked members if they had questions about financing the lab. SENATOR TAYLOR asked how far the location is from the new state crime lab. MS. ADAIR answered it is next door to the new public health lab. SENATOR TAYLOR asked why the two labs were not built at the same time when DEC was asked about it. MS. ADAIR answered she wished the answer had been yes when the Department was asked. She personally was not involved in that decision and the person who made it is no longer with the Department. SENATOR TAYLOR said he heard it didn't happen because of a "turf" battle. SENATOR ELTON said it seemed if you took a commitment of $20 million to AIDEA and said the state wants the building ASI is in that has an exhaust system that is unparalleled, AIDEA might be able to cut a deal where [DEC] might not have to pay them for 10 years. It is a state-owned building. MS. ADAIR responded that has been mentioned at every other meeting. A brief conversation with Bob Poe indicated that ASI will succeed and the building will be used for that facility. SENATOR ELTON asked if they had submitted anything to the Board. MS. ADAIR answered no, the Board has a commitment to the owners of that facility and to the success of it. At this point there is nothing to indicate that what they are trying to do won't pan out. DEC has a time commitment with this laboratory that doesn't correlate with theirs. SENATOR ELTON said he wasn't as confident as some members of AIDEA that this is the best thing they can do with the building. Number 870 SENATOR TAYLOR asked if the public health lab is different than the Alaska Science and Technology lab. MS. ADIAR replied that she wasn't familiar with the Alaska Science and Technology lab. SENATOR TAYLOR said he was trying to figure out how many labs the state has. "We have a crime lab, an ASI lab and now we're talking about another lab for DEC." MS. ADAIR responded that ASI is a privately owned company. There are probably 35 privately owned commercial laboratories that DEC certifies for microbiological testing of drinking water and nine that DEC certifies for chemical testing of drinking water. Number 566 MS. JULIE DECKER, Executive Director, Southeast Alaska Regional Dive Fisheries Association, said they use the lab that is currently in Palmer for water testing and paralytic shellfish poisoning testing for the geoduck fishery. They are currently working to expand this industry, which will increase their use of the lab. "While I understand that Palmer residents would not like to lose the lab, a more centrally located lab in Anchorage would be beneficial to the users. We have a 30-hour time limit on body samples taken from their sites. The transportation time from Anchorage to Palmer sometimes makes the difference of whether the sample gets to the lab in time or not." MR. TOM LIVINGSTON, principal, Livingston Sloan Inc., said he was available to answer questions on the feasibility study. [No one had questions at this time.] MR. ROGER PAINTER, Vice President, Alaska Shellfish Growers Association, supported SB 24. He agreed with Ms. Decker that the 30-hour window to deal with water quality samples is a very short time frame when shipping from remote locations in Prince of Wales Island or Prince William Sound. They have had a number of samples fail to make it to the lab because of the Palmer leg. MR. PAINTER said it has been difficult to get the results from tests on geoducks from Prince of Wales Island in time to ship the product all the way to China. Their shelf life is about three days. He has had many unfortunate experiences with product arriving in China dead. They have lost a lot of money because of the logistics. He has also visited the lab in Palmer a couple of times. It is extremely antiquated and definitely needs to be improved. MR. PAINTER said he knows there isn't a private lab in the United States that processes PSP samples. It's very expensive and difficult. It would be impossible to make money off of processing those samples in a private lab. He has also looked for alternatives in the state for processing their water samples in Juneau, Sitka and Dutch Harbor. The labs there can process fresh water samples for drinking water, but they can't process marine samples. Those have to be done at a lab approved by FDA and private facilities don't have that certification. SENATOR LINCOLN said she supports the legislation, but she always has a problem when they "centralize, centralize, centralize to Anchorage." She realizes from testimony, however, that being close to the airport is very important. CHAIRMAN TORGERSON said the committee had lost the quorum so they would hold the bill and adjourned the meeting at 5:25 pm.