SENATOR  COWDERY moved  to  calendar SB  354-PRICES  PAID BY  MILK                                                          
PROCESSING PLANTS at the Chairman's discretion.                                                                             
                                                                                                                                
SENATOR  ELLIS  objected  and  asked for  an  explanation  of  the                                                              
measure.                                                                                                                        
                                                                                                                                
MS. JANE WINEINGAR,  staff to Senator Green, sponsor,  stated that                                                              
SB 354  will enable  farmers  to be paid  a fair  price for  milk.                                                              
Pricing will  be based on  the quality  of milk, which  depends on                                                              
many variables  such as  the butterfat  content. Many states  have                                                              
similar legislation.                                                                                                            
                                                                                                                                
SENATOR ELLIS  asked why it is  necessary for the State  of Alaska                                                              
to weigh  in to the private  sector market considerations  for the                                                              
price of milk.                                                                                                                  
                                                                                                                                
MS. WINEINGAR said Matanuska Maid  is the only processing plant in                                                              
the state so  the farmers only have  one choice of where  to sell,                                                              
and that plant is state-owned.                                                                                                  
                                                                                                                                
SENATOR ELLIS said maybe the fact  that the State of Alaska owns a                                                              
dairy  is a  problem.  He  asked  why the  State  is in  the  milk                                                              
business.                                                                                                                       
                                                                                                                                
SENATOR COWDERY commented  that in his youth, he  hauled milk from                                                              
the Matanuska Valley. At that time,  two dairies were operating in                                                              
the Valley.  Some dairy  farms had jerseys  or cows that  produced                                                              
milk with  a higher  butterfat content. He  took samples  of every                                                              
day's  production to  determine the  price. He  believes that  the                                                              
importance  of  the quality  of  milk  is  no different  than  the                                                              
quality of oil. He stated strong support for the bill.                                                                          
                                                                                                                                
SENATOR COWDERY  repeated his  motion to calendar  SB 354  and its                                                              
accompanying zero fiscal note at the Chairman's discretion.                                                                     
                                                                                                                                
SENATOR  ELLIS   removed  his  objection,  therefore   the  motion                                                              
carried.