ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                       February 27, 2008                                                                                        
                           1:03 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Carl Gatto, Co-Chair                                                                                             
Representative Craig Johnson, Co-Chair                                                                                          
Representative Anna Fairclough                                                                                                  
Representative Bob Roses                                                                                                        
Representative Paul Seaton                                                                                                      
Representative Peggy Wilson                                                                                                     
Representative Bryce Edgmon                                                                                                     
Representative David Guttenberg                                                                                                 
Representative Scott Kawasaki                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 370                                                                                                              
"An Act relating to forested  land management and protection from                                                               
wildland  fire and  other destructive  agents; changing  the term                                                               
'forest fire' to  'wildland fire' where it appears  in the Alaska                                                               
Statutes; and providing for an effective date."                                                                                 
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
HOUSE BILL NO. 257                                                                                                              
"An  Act  transferring duties  relating  to  aquatic farming  and                                                               
hatchery operations from  the Department of Fish and  Game to the                                                               
Department  of  Natural  Resources,  eliminating  certain  permit                                                               
requirements   applicable  to   aquatic   farming  and   hatchery                                                               
operations, and directing the Department  of Natural Resources to                                                               
administer  and  supervise  promotional and  marketing  work  for                                                               
aquatic farm products; and providing for an effective date."                                                                    
                                                                                                                                
     - MOVED CSHB 257(FSH) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 370                                                                                                                  
SHORT TITLE: PROTECTION OF FORESTED LAND                                                                                        
SPONSOR(s): REPRESENTATIVE(s) KELLY                                                                                             
                                                                                                                                
02/19/08       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/19/08       (H)       RES                                                                                                    
02/27/08       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 257                                                                                                                  
SHORT TITLE: AQUATIC FARMING & HATCHERIES                                                                                       
SPONSOR(s): REPRESENTATIVE(s) HARRIS BY REQUEST                                                                                 
                                                                                                                                
05/11/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
05/11/07       (H)       FSH, RES                                                                                               
01/18/08       (H)       FSH AT 8:30 AM BARNES 124                                                                              
01/18/08       (H)       -- MEETING CANCELED --                                                                                 
02/11/08       (H)       FSH AT 8:30 AM BARNES 124                                                                              
02/11/08       (H)       -- Meeting Postponed to 02/15/08 --                                                                    
02/15/08       (H)       FSH AT 8:30 AM BARNES 124                                                                              
02/15/08       (H)       -- Rescheduled from 02/11/07 --                                                                        
02/19/08       (H)       FSH RPT CS(FSH) NT 1DP 3NR                                                                             
02/19/08       (H)       DP: SEATON                                                                                             
02/19/08       (H)       NR: LEDOUX, JOHANSEN, EDGMON                                                                           
02/27/08       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE MIKE KELLY                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified as the sponsor of HB 370.                                                                      
                                                                                                                                
DEREK MILLER, Staff                                                                                                             
to Representative Mike Kelly                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided information regarding HB 370.                                                                   
                                                                                                                                
JOHN "CHRIS" MAISCH, Director, State Forester                                                                                   
Division of Forestry                                                                                                            
Department of Natural Resources                                                                                                 
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Provided information regarding HB 370.                                                                   
                                                                                                                                
MR. TOM KURTH, Fire Operations Forester                                                                                         
State Fire Operations                                                                                                           
Division of Forestry                                                                                                            
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions regarding HB 370.                                                                     
                                                                                                                                
GREGORY VICKREY, Executive Director                                                                                             
Tongass Conservation Society                                                                                                    
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT:  Spoke in general support of the concept of                                                               
HB 370.                                                                                                                         
                                                                                                                                
JENNIFER YUHAS, Special Assistant                                                                                               
to Fairbanks Northstar Borough Mayor Jim Whitaker                                                                               
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Supported HB 370.                                                                                        
                                                                                                                                
MELANIE LESH, Legislative Liaison, Special Assistant to the                                                                     
Commissioner                                                                                                                    
Office of the Commissioner                                                                                                      
Department of Natural Resources                                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided information regarding HB 370.                                                                   
                                                                                                                                
KEVIN SAXBY, Senior Assistant Attorney General                                                                                  
Natural Resources Section                                                                                                       
Civil Division (Anchorage)                                                                                                      
Department of Law                                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions regarding HB 370.                                                                     
                                                                                                                                
JOHN BITNEY, Staff                                                                                                              
to Representative John Harris                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented the sponsor statement on behalf                                                                
of Representative Harris for HB 257.                                                                                            
                                                                                                                                
RODGER PAINTER, President                                                                                                       
Alaskan Shellfish Growers Association                                                                                           
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Testified that HB 257  is necessary because                                                             
previous   statute   modifications  inadvertently   changed   the                                                               
definition of  products that the Department  of Natural Resources                                                               
could include under the Alaska Grown program.                                                                                   
                                                                                                                                
AMY PETTIT, Development Specialist                                                                                              
Inspection/Marketing Services                                                                                                   
Division of Agriculture                                                                                                         
Department of Natural Resources                                                                                                 
Palmer, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions regarding HB 257.                                                                     
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CO-CHAIR  CRAIG  JOHNSON  called  the  House  Resources  Standing                                                             
Committee  meeting  to  order at  1:03:50  PM.    Representatives                                                             
Fairclough,  Wilson,   Roses,  Guttenberg,  Edgmon,   Gatto,  and                                                               
Johnson  were present  at  the call  to  order.   Representatives                                                               
Kawasaki and Seaton arrived as the meeting was in progress.                                                                     
                                                                                                                                
HB 370-PROTECTION OF FORESTED LAND                                                                                            
                                                                                                                              
1:04:04 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOHNSON  announced that  the  first  order of  business                                                               
would be  HOUSE BILL NO. 370,  "An Act relating to  forested land                                                               
management   and  protection   from  wildland   fire  and   other                                                               
destructive agents; changing the  term 'forest fire' to 'wildland                                                               
fire' where it appears in  the Alaska Statutes; and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
1:04:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MIKE  KELLY, Alaska State Legislature,  sponsor of                                                               
HB 370,  said the bill  would allow wildland fire  control, which                                                               
is a  wording change  [of current statute]  that will  permit the                                                               
defense of cabins  on the land in a formal  manner rather than in                                                               
the current  informal manner.   It is  a "cleanup" in  some ways,                                                               
but  it sends  the signal  that  protection will  be provided  to                                                               
cabins threatened by fire.                                                                                                      
                                                                                                                                
1:05:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES  understood  that  another  bill  currently                                                               
before  the legislature  [HB  326] uses  the  term "wildfire"  as                                                               
opposed to "wildland fire".   He recommended there be consistency                                                               
in terminology  to prevent any  unintended conflicts and  said he                                                               
may enter a conceptual amendment in this regard.                                                                                
                                                                                                                                
REPRESENTATIVE KELLY said that makes sense.                                                                                     
                                                                                                                                
CO-CHAIR  GATTO stated  that "wildland  fire" appears  to be  the                                                               
conventional  term,  based  on  all   [his]  years  in  the  fire                                                               
department.                                                                                                                     
                                                                                                                                
REPRESENTATIVE KELLY agreed the term should be made right.                                                                      
                                                                                                                                
1:07:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG  inquired whether HB 370  would address                                                               
situations like what happened with the [2005] Wild Lake fire.                                                                   
                                                                                                                                
REPRESENTATIVE KELLY responded yes.                                                                                             
                                                                                                                                
1:07:36 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO drew  attention to  the new  language on  page 3,                                                               
line  2,  and   expressed  his  concern  that   the  term  "other                                                               
destructive agents" is  so broad a category that there  is no end                                                               
to what could be included in it.                                                                                                
                                                                                                                                
REPRESENTATIVE KELLY deferred to  his staff person [Derek Miller]                                                               
for an in-depth technical response.                                                                                             
                                                                                                                                
1:08:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH asked  why there is no  fiscal note for                                                               
the provision  on page 1,  lines 6-8,  to build a  public highway                                                               
from the Yukon River to the Arctic Ocean.                                                                                       
                                                                                                                                
REPRESENTATIVE KELLY  explained this is existing  statute and the                                                               
amendment to the statute is the word "wildland" on page 2.                                                                      
                                                                                                                                
1:10:02 PM                                                                                                                    
                                                                                                                                
DEREK MILLER,  Staff to Representative  Mike Kelly,  Alaska State                                                               
Legislature, referred  committee members to the  two page handout                                                               
in  their packets  for further  information about  the bill.   He                                                               
noted that Representative Kelly  was approached to introduce this                                                               
bill  by  the  Department  of   Natural  Resources,  Division  of                                                               
Forestry;  and a  constituent, Richard  Wien, was  also involved.                                                               
Currently, the Division  of Forestry is mandated  to provide fire                                                               
protection  commensurate with  the  "value of  the resources"  at                                                               
risk.  The  bill would change that statute  to provide protection                                                               
for just the  "values" at risk, he related.   "That would include                                                               
and encumber some of the things  that were going on with Mr. Wien                                                               
with  cabins and  physical manmade  structures to  allow the  ...                                                               
Division of Forestry  to protect those values as  well," he said.                                                               
This is  something that the  division is already doing  and would                                                               
also  align statute  with the  1985  Alaska Interagency  Wildland                                                               
Fire  Management Plan.   Additionally,  HB 370  changes the  term                                                               
"forest" fire  to "wildland"  fire throughout  statute.   He said                                                               
work is  being done  regarding [HB  326] to  have that  bill also                                                               
reflect the term "wildland" fire.                                                                                               
                                                                                                                                
1:12:16 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON  inquired whether HB 370  would bring additional                                                               
liability  upon  the  state  for not  protecting  an  asset  when                                                               
decisions are made to protect other  areas or assets deemed to be                                                               
of greater value.                                                                                                               
                                                                                                                                
MR.  MILLER said  he does  not  believe it  would, otherwise  the                                                               
Division of Forestry would not  have drafted the language in this                                                               
way.  He deferred to Chris Maisch with the division.                                                                            
                                                                                                                                
1:13:41 PM                                                                                                                    
                                                                                                                                
JOHN  "CHRIS"  MAISCH,  Director,  State  Forester,  Division  of                                                               
Forestry, Department of Natural  Resources, thanked the committee                                                               
for  its  consideration of  what  the  division  refers to  as  a                                                               
housekeeping item  in this  statute language.   He said  the 1985                                                               
Alaska Interagency  Wildland Fire  Management Plan  describes the                                                               
five  different  categories  of   protection  that  the  division                                                               
undertakes:   critical, full,  modified, limited,  and unplanned.                                                               
Each  of those  categories allows  the division  to do  different                                                               
types of  activities based  on the  natural resource  values, but                                                               
the plan also stresses human  improvements as one of the decision                                                               
criteria for the planning process and how to do initial attack.                                                                 
                                                                                                                                
MR. MAISCH explained that a lot  of structures have been built in                                                               
the  limited and  modified protection  areas since  the plan  was                                                               
written  over 20  years ago.    The Division  of Forestry's  fire                                                               
atlases therefore  need updating to reflect  whether the division                                                               
would potentially  protect a structure.   However, he  related, a                                                               
read  of the  current statute  by the  Murkowski Administration's                                                               
attorney general determined  that the division is  not allowed to                                                               
actually  do  that  because  the  statute  does  not  direct  the                                                               
division to  protect structures.   This conflict  between statute                                                               
and plan  has put the division  in a difficult position  at times                                                               
about   making  decisions   on  whether   to  provide   structure                                                               
protection in limited and modified areas.                                                                                       
                                                                                                                                
MR. MAISCH  said the division's  structure protection  policy for                                                               
public  and  private lands  directs  that  structures in  limited                                                               
areas will  receive protection commensurate with  the larger land                                                               
base, which means  there are cases where structures  would not be                                                               
protected.   The change  in statute would  allow the  division to                                                               
consider  those  values  as something  that  might  be  protected                                                               
consistent  with   availability  of   resources  and   safety  of                                                               
personnel.  So, even with an  amended statute there will be cases                                                               
where structures may not be  protected, he advised.  The division                                                               
wants to have clear, consistent language  both in the plan and in                                                               
the statute  that will allow consideration  of human improvements                                                               
- structures - as part of that decision-making process.                                                                         
                                                                                                                                
1:16:36 PM                                                                                                                    
                                                                                                                                
CO-CHAIR   JOHNSON   reiterated   his  question   regarding   the                                                               
possibility  of  additional liability  to  the  state should  the                                                               
decision be made to not protect a structure.                                                                                    
                                                                                                                                
MR.  MAISCH  responded  no,  Alaska  has  one  of  the  strongest                                                               
discretionary immunity  laws of any of  the 50 states.   This law                                                               
provides discretionary  immunity for  decisions that are  made by                                                               
fire  fighters based  on  the plan,  policy,  and actual  on-the-                                                               
ground situation.  He said in  all his years of being involved in                                                               
the fire program he can think  of only one case in recent history                                                               
where  the state  was sued  in a  civil process  for damages  for                                                               
fire.                                                                                                                           
                                                                                                                                
CO-CHAIR JOHNSON asked whether the state won.                                                                                   
                                                                                                                                
MR. MAISCH replied  the case was settled without  going to court,                                                               
and then the new discretionary  immunity statute went into effect                                                               
which really strengthened the state's hand.                                                                                     
                                                                                                                                
1:17:36 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO  inquired why  the Division  of Forestry  wants to                                                               
change its discretionary  ability to a requirement  that it shall                                                               
protect a structure.                                                                                                            
                                                                                                                                
MR. MAISCH  replied this  change in the  statute would  not cause                                                               
the division to  have to protect a structure.   It would actually                                                               
strengthen the  division's decision-making authority  by allowing                                                               
it to consider the value  of human improvements on the landscape,                                                               
such as  structures, trails, and  other things, in  the decision-                                                               
making  process.    It  would  not  put  any  sideboards  on  the                                                               
division's ability to say yes or  no and the division would still                                                               
have  that  full range  of  decision-making  authority with  this                                                               
change, he said.  Right now,  under a strict read of the statute,                                                               
the  division  cannot  consider homes,  cabins,  or  other  human                                                               
improvements in part of that decision-making process.                                                                           
                                                                                                                                
1:20:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI asked  how  the division  would value  a                                                               
cabin.                                                                                                                          
                                                                                                                                
MR. MAISCH said  the division will not attempt to  put a monetary                                                               
value  on individual  structures.   The values  at risk  would be                                                               
considered  in  the preplanning  stages.    The statutory  change                                                               
would allow the division to update  its fire atlases.  Then, when                                                               
going through a  flow chart, if it looks like  a structure merits                                                               
protection  because  it is  a  year-round  residence or  Firewise                                                               
principles  have been  applied to  the structure  or a  number of                                                               
other  factors, the  division  could  put an  "F"  on  the map  -                                                               
meaning full protection.   Right now, he said,  the division does                                                               
not  have  a clear  process  for  how  someone  in a  limited  or                                                               
modified protection area would petition  for full protection of a                                                               
structure.   Once  this statute  is changed,  it would  allow the                                                               
Division of  Forestry to develop  clear and concise  criteria for                                                               
that consideration to be made.                                                                                                  
                                                                                                                                
1:21:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI  inquired  whether this  change  to  the                                                               
statute means the  division would fight a fire in  a remote state                                                               
forest  with lots  of  cabins  before a  remote  area with  fewer                                                               
cabins.                                                                                                                         
                                                                                                                                
MR. MAISCH answered each situation is  unique.  A plan allows for                                                               
thinking ahead  so that a lot  of these decisions do  not have to                                                               
be made on a  case-by-case basis in the heat of  the moment.  The                                                               
division is constantly prioritizing  and assessing fire risk with                                                               
resources available, so it is  difficult to say that state forest                                                               
resources will always  be protected.  For example,  the 2004 fire                                                               
season was a record year  when almost seven million acres burned,                                                               
mostly in  the Interior.  Almost  every large fire that  year was                                                               
threatening a  community - Tok,  Delta, Fairbanks, Bettles  - and                                                               
those are where the priorities were.   They are rated critical or                                                               
full  protection  areas   in  the  fire  management   plan.    So                                                               
structures that  were in remote  areas in many cases  received no                                                               
protection  simply   because  the  division  did   not  have  the                                                               
resources available  to provide  protection.  A  triage situation                                                               
can happen  quickly, he explained,  and money and  resources must                                                               
be spent such that the greatest good gets completed.                                                                            
                                                                                                                                
1:23:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI inquired  how the  Division of  Forestry                                                               
would prioritize between a multi-million  dollar structure in one                                                               
area and a tin shack in another.                                                                                                
                                                                                                                                
MR. MAISCH  responded it would  partly depend on  the preplanning                                                               
determination of whether a structure  merited protection based on                                                               
how much money  and effort it would cost the  division to protect                                                               
the  structure.   A  lodge  without  easy  access, a  poor  water                                                               
source, and  nothing done that  would help protect  the structure                                                               
from an  approaching fire would likely  not get an F  on the map.                                                               
If an owner puts  forth effort ahead of time to  make it easy for                                                               
the  division   to  provide  protection,   then  that   would  be                                                               
considered, he said.  It does  not matter what the monetary value                                                               
is per se,  because any action taken by the  division will cost a                                                               
fair amount of money, although the  division would not want to do                                                               
a $10,000 retardant  drop on a bunch of blue  tarps in the woods.                                                               
The fiscal side  of this whole discussion is kept  in the picture                                                               
as much  as possible, but  there is that  old adage of  one man's                                                               
castle.                                                                                                                         
                                                                                                                                
1:25:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG asked whether  there are any additional                                                               
issues  in statute  that are  in  conflict with  the 1985  Alaska                                                               
Interagency Wildland Fire Management Plan.                                                                                      
                                                                                                                                
MR. MAISCH replied  he is unaware of any other  issues in statute                                                               
that prevent the division from  doing fire management planning in                                                               
an  effective  way on  the  landscape.    It is  very  important,                                                               
especially in  the Interior ecosystems,  to maintain fire  on the                                                               
landscape.  Fire  is an important part of  the ecological process                                                               
for a  variety of reasons,  particularly wildlife  management, he                                                               
advised.   This statute  helps the  Division of  Forestry protect                                                               
the resources  on the landscape  while at the same  time allowing                                                               
fire to burn in as many cases as possible.                                                                                      
                                                                                                                                
1:28:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SEATON  said   he  shares   the  concern   about                                                               
liability.   He suggested the  Department of Law be  requested to                                                               
provide a fiscal note so there would be a legislative history.                                                                  
                                                                                                                                
CO-CHAIR JOHNSON said that would be done.                                                                                       
                                                                                                                                
REPRESENTATIVE SEATON  inquired whether there is  a definition of                                                               
destructive agent as used on page 3 [line 2].                                                                                   
                                                                                                                                
MR.  MAISCH answered  destructive agent  is a  forestry term  and                                                               
usually  refers to  insect  pests  such as  bark  beetles.   That                                                               
terminology is  used in  other portions of  this statute,  AS 41,                                                               
and  that  is  where  destructive  agent  refers  to  insect  and                                                               
disease.   It may  also be  a holdover  from old  terminology and                                                               
part of  this is  to update the  terminology by  changing "forest                                                               
fire" to the newer and more  inclusive term, "wildland fire".  He                                                               
said it  does not necessarily have  to be there, but  he needs to                                                               
read the  whole statute to put  it into context and  see if there                                                               
are other places where it might come into play.                                                                                 
                                                                                                                                
REPRESENTATIVE SEATON  recommended that destructive  agent either                                                               
be defined under this section or be eliminated.                                                                                 
                                                                                                                                
1:30:42 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO agreed destructive agent  should be defined in the                                                               
bill because even if there is  a forestry definition for the term                                                               
a judge could have a different opinion.                                                                                         
                                                                                                                                
CO-CHAIR  JOHNSON  noted  that  a  lot of  fires  are  fought  in                                                               
conjunction  with federal  agencies.   He  asked whether  federal                                                               
agencies would be brought under this  same term or do they have a                                                               
separate code.                                                                                                                  
                                                                                                                                
MR.  MAISCH said  there  are  three agencies  in  the state  that                                                               
provide fire  suppression services -  the U.S. Forest  Service, a                                                               
branch of  the U.S. Bureau  of Land Management called  the Alaska                                                               
Fire Service,  and the Division  of Forestry.  This  statute only                                                               
affects  state, municipal,  and private  lands, he  noted, so  it                                                               
does not affect what would occur  on federal lands.  The division                                                               
works very closely in this  interagency environment and the state                                                               
is  divided into  three service  areas where  each agency  is the                                                               
lead agency for initial fire  attack and project management.  The                                                               
Alaska Fire  Service manages from  just south of the  Yukon River                                                               
and  northward,  the  Division of  Forestry  manages  the  middle                                                               
portion of  the state down to  the Kenai Peninsula, and  the U.S.                                                               
Forest  Service has  some of  the Kenai  Peninsula and  Southeast                                                               
Alaska.   Because this  is an  interagency fire  management plan,                                                               
all the agencies have already  agreed on the standard terminology                                                               
and different types of protection levels.                                                                                       
                                                                                                                                
1:33:12 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON  asked what  the policy is  for the  two federal                                                               
agencies as far as protecting structures.                                                                                       
                                                                                                                                
MR. MAISCH responded it depends  on the agency and its management                                                               
objectives; for instance, the National  Park Service is different                                                               
than  the  U.S. Fish  and  Wildlife  Service.   They  do  protect                                                               
structures,  but  most  of  the structures  that  they  would  be                                                               
protecting would usually  be on private land,  which this statute                                                               
would affect.   In that case,  he said, the federal  agency would                                                               
work essentially  as the Division  of Forestry's agent  and would                                                               
follow the  division's policies and  standards.  They  would have                                                               
their  own set  of  policies  for fires  on  federal  lands.   In                                                               
further response to  Co-Chair Johnson, Mr. Maisch  said there are                                                               
sometimes  differences  in  the  policies on  federal  lands  and                                                               
generally there are not as many structures on federal lands.                                                                    
                                                                                                                                
1:34:45 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO  inquired what  is wrong  with the  language being                                                               
deleted under Section  41.15.010 on page 3 [lines 1-5].   He said                                                               
he is  concerned about  what is  being done  and whether  it will                                                               
send the state's liability through the roof.                                                                                    
                                                                                                                                
MR. MAISCH replied the Division of  Forestry was able to walk the                                                               
line on  this interpretation of  the old language for  many years                                                               
because the  term "value  of the  resources" was  somewhat vague.                                                               
When a  particular incident  forced the  question on  whether the                                                               
division  could  protect  structures   in  a  limited  area,  the                                                               
previous administration asked the attorney  general for a read on                                                               
the current language.  [The  attorney general] considered putting                                                               
forward  a best  effort  doctrine, but  then  concluded that  the                                                               
doctrine would  open the  state to  additional liability.   Under                                                               
the narrow  read, he explained,  the term "natural  resources and                                                               
watersheds"  does  not  allow  the   division  to  include  human                                                               
improvements  on the  landscape  as one  of  the criteria  during                                                               
planning or actual  fire suppression.  The division  is trying to                                                               
fix this issue  so structures can be considered  in the decision-                                                               
making process.                                                                                                                 
                                                                                                                                
1:37:29 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO surmised  the  term "value  of  the resources  at                                                               
risk" does not consider a structure as a resource.                                                                              
                                                                                                                                
MR.  MAISCH  answered  that  under   the  interpretation  of  the                                                               
attorney  general's  office  a structure  was  not  considered  a                                                               
resource  because of  the language,  "the  natural resources  and                                                               
watersheds",  which  follows  that  first  term.    The  attorney                                                               
general felt  this second  term trumped  the first  and explained                                                               
what  resources was  intended  to be  in  the original  statutory                                                               
language.                                                                                                                       
                                                                                                                                
1:37:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI  asked what  would be included  under the                                                               
term "values".                                                                                                                  
                                                                                                                                
MR.  MAISCH  stated that  "values  at  risk"  is  meant to  be  a                                                               
holistic  term  and the  common  things  that land  and  resource                                                               
managers  would  include under  the  term  are wildlife  resource                                                               
values,   recreational   opportunities   and   resources,   human                                                               
improvements, and a whole variety of  things.  The purpose is not                                                               
to have  a narrow definition that  boxes in the division.   It is                                                               
meant to  be holistic in  how it is  defined and the  plan itself                                                               
goes into  detail about what is  considered.  It allows  the land                                                               
managers  to determine  what  the most  important  values are  on                                                               
their state wildlife refuge or forest or general state land.                                                                    
                                                                                                                                
1:40:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI   described  a  situation  in   which  a                                                               
destructive agent is  a spruce bark beetle and a  value is a job.                                                               
Under Section  41.15.010, would it be  the state's responsibility                                                               
to provide protection in this scenario, he asked.                                                                               
                                                                                                                                
MR. MAISCH said  this does not obligate the  division to actually                                                               
take an action.  It allows  the division to consider the range of                                                               
actions that would  be appropriate actions to take  under a given                                                               
set of  circumstances.  There  are separate  statutory guidelines                                                               
on  pest  infestations  that  are   under  the  forest  practices                                                               
statutes  which are  also  listed in  Section  41, he  explained.                                                               
These specifically  address spruce bark beetles  and other agents                                                               
that  will  cause damage  to  both  public and  private  forests.                                                               
Those  sections give  the  Division of  Forestry  the ability  to                                                               
enter  onto lands  to  deal with  infestations  that are  causing                                                               
larger public harm, such as spruce bark beetles.                                                                                
                                                                                                                                
1:41:22 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO inquired  whether machinery  like excavators  and                                                               
gold  dredges would  be considered  differently  than a  physical                                                               
structure like a home or business.                                                                                              
                                                                                                                                
MR. MAISCH  responded that in  some of  the policy it  depends on                                                               
whether it is  a federal or state claim and  whether the claim is                                                               
converted to  private land or still  leased.  To put  it bluntly,                                                               
he said, the policy  gets fairly murky.  It takes  quite a bit of                                                               
moxie to  be a fire  management officer  and make these  types of                                                               
decisions.  However, the division's goal  as an agency is to make                                                               
consistent,  defensible decisions  and this  statute change  will                                                               
allow the  development of criteria  for looking at  structures in                                                               
limited  and  modified areas  and  to  conduct preplanning.    If                                                               
limited  resources   require  the  division  to   choose  between                                                               
protecting  a  whole  community or  the  miner's  equipment,  the                                                               
choice will  be protecting the  larger community where  there are                                                               
many more values at risk, he explained.                                                                                         
                                                                                                                                
1:43:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  said he likes the  proposed language change                                                               
because  it   would  allow  preplanning  and   the  all-inclusive                                                               
protection of values like pipelines  and electrical interties. He                                                               
said  the term  destructive agents  gives him  some concern,  but                                                               
there is probably an amendment in the making.                                                                                   
                                                                                                                                
1:44:47 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO  asked  whether   Mr.  Kurth  worked  the  [1996]                                                               
Miller's Reach fire.                                                                                                            
                                                                                                                                
MR. TOM  KURTH, Fire Operations Forester,  State Fire Operations,                                                               
Division of Forestry, replied, "Negative."   He said he spent his                                                               
time in Fairbanks doing initial  attack, but is familiar with the                                                               
circumstances.                                                                                                                  
                                                                                                                                
1:45:28 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO inquired  whether the  state was  sued [over  the                                                               
Miller  Reach  fire]  because  it  did not  act  fast  enough  or                                                               
properly enough.                                                                                                                
                                                                                                                                
MR. KURTH  noted that the lawsuit  was dismissed in the  end.  In                                                               
all cases  of fire fighting there  is a certain amount  of second                                                               
guessing that  takes place after the  fact.  He said  he believes                                                               
the circumstances of  the case demonstrated that  the Division of                                                               
Forestry acted to  the best of its ability to  try to control the                                                               
fire, and  that given the  circumstances - particularly  the wind                                                               
and  weather -  the actions  were in  the best  interests of  the                                                               
division and the values at risk.                                                                                                
                                                                                                                                
1:46:51 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO said  he is  asking about  the Miller  Reach case                                                               
because  he is  trying to  determine whether  the state  is still                                                               
liable when it tries its best even if that effort is imperfect.                                                                 
                                                                                                                                
MR. KURTH explained that on the  initial attack, and prior to the                                                               
wind event,  the fire  was subdued  at about 65  acres and  had a                                                               
containment  line around  it.   However, it  only takes  a single                                                               
ignition point and  it came out of one side  with the wind event.                                                               
The  state was  sued over  this, but  prevailed because  the fire                                                               
fighters  did the  best job  to their  ability at  the time.   In                                                               
further response to  Co-Chair Gatto, he confirmed  that the state                                                               
did not settle and paid nothing.                                                                                                
                                                                                                                                
1:48:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  asked whether  there was a  distinction for                                                               
Mr. Kurth between the term wildland fire and wildfire.                                                                          
                                                                                                                                
MR. KURTH said  wildland fire is the accepted  term most commonly                                                               
used today.                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROSES  inquired whether Mr. Kurth  saw a potential                                                               
future conflict if another bill were to use the term wildfire.                                                                  
                                                                                                                                
MR. KURTH  answered that he thinks  it should be cleaned  up, but                                                               
he does  not see  it as  a conflict because  both terms  would be                                                               
interpreted the same.                                                                                                           
                                                                                                                                
REPRESENTATIVE ROSES stated he does not  think HB 370 needs to be                                                               
amended, but that [HB 326] should be.                                                                                           
                                                                                                                                
1:50:00 PM                                                                                                                    
                                                                                                                                
GREGORY   VICKREY,  Executive   Director,  Tongass   Conservation                                                               
Society, spoke in general support of  the concept of HB 370 based                                                               
on his long  conversation with Mr. Maisch as  well as individuals                                                               
in  the conservation  community.   He appreciated  the depth  and                                                               
breadth  of  the  committee's  concerns  and  looked  forward  to                                                               
hearing the  answers.  He said  he will be personally  asking Mr.                                                               
Maisch further  questions and one  of those questions is  how the                                                               
Division of Forestry  would value a 120-year-old cedar  tree.  In                                                               
general, he  related, the  Tongass Conservation  Society supports                                                               
the  concept of  responsible  forestry  practices management  and                                                               
believes this bill is driven towards that goal.                                                                                 
                                                                                                                                
1:51:19 PM                                                                                                                    
                                                                                                                                
JENNIFER YUHAS, Special Assistant  to Fairbanks Northstar Borough                                                               
Mayor  Jim  Whitaker, noted  the  committee  should have  in  its                                                               
packet  a letter  from Mayor  Whitaker  supporting HB  370.   The                                                               
wildland/urban interface with  fire is not new to  anyone on this                                                               
committee - there was the  Miller's Reach fire, the 2004 Interior                                                               
fires, and  the Caribou Hills fire  on the Kenai Peninsula.   She                                                               
said she  accompanied some folks  returning to the site  of their                                                               
recreational  cabin on  the Kenai  where  they had  spent all  of                                                               
their  holidays  for  the  past  20   years.    This  is  a  real                                                               
expectation  that is  part of  the efforts  that the  Division of                                                               
Forestry provides and  our borough depends on, she  said.  Alaska                                                               
is leading the  nation in planning efforts for  wildland fire and                                                               
this bill  helps keep that  going and  helps the division  do the                                                               
job it is expected to do.                                                                                                       
                                                                                                                                
CO-CHAIR JOHNSON closed public  testimony after ascertaining that                                                               
no one else wished to testify.                                                                                                  
                                                                                                                                
1:53:43 PM                                                                                                                    
                                                                                                                                
MELANIE  LESH,  Legislative  Liaison, Special  Assistant  to  the                                                               
Commissioner, Office  of the Commissioner, Department  of Natural                                                               
Resources, stated  that the  Department of  Law has  reviewed the                                                               
fiscal  note,  the  history  behind   the  definitions,  and  the                                                               
liability  issues and  is preparing  a fiscal  note that  will be                                                               
submitted through the governor's legislative office.                                                                            
                                                                                                                                
CO-CHAIR JOHNSON asked whether the fiscal note will be zero.                                                                    
                                                                                                                                
MS. LESH related that she  spoke to Deborah Behr [Chief Assistant                                                               
Attorney General,  Legislation & Regulations  Section, Department                                                               
of  Law] about  20 minutes  ago  and that  Ms. Behr  said she  is                                                               
preparing and submitting a zero fiscal note.                                                                                    
                                                                                                                                
1:54:35 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO  inquired  whether  the  Department  of  Law  had                                                               
considered the significance of  "other destructive agents" during                                                               
preparation of the zero fiscal note.                                                                                            
                                                                                                                                
MS.  LESH  advised  that  the  destructive  agents  language  was                                                               
considered in the version of  the bill analyzed by the Department                                                               
of Law, but  the question came up  on too short a  notice for the                                                               
department to get to the hearing.                                                                                               
                                                                                                                                
1:55:11 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO asked  whether destructive  agents would  include                                                               
beetle kills in Ms. Lesh's opinion.                                                                                             
                                                                                                                                
MS. LESH stated  she believes this has been  considered given Mr.                                                               
Maisch's  testimony, but  she  does  not want  to  speak for  the                                                               
Division of  Forestry.   She offered  to get  someone on  line to                                                               
speak to this directly.                                                                                                         
                                                                                                                                
CO-CHAIR JOHNSON  said he  intends to  introduce an  amendment to                                                               
delete "destructive agents" so no calls are necessary.                                                                          
                                                                                                                                
1:56:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI surmised it would  cost more to protect a                                                               
structure than  to dig  a containment ditch  to prevent  the fire                                                               
from jumping from one place to another.                                                                                         
                                                                                                                                
MR.  MAISCH  responded  that, generally  speaking,  single  point                                                               
structure protection is quite a  bit cheaper than building a line                                                               
and trying to contain a fire.  If  the fire is in a zone in which                                                               
the division  plans to do  initial attack,  the goal is  to catch                                                               
the fire when it is small and less expensive.                                                                                   
                                                                                                                                
1:57:15 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO   inquired  whether   the  division   intends  to                                                               
incorporate  fire  ecology  into  its  program  of  dealing  with                                                               
wildland fires.                                                                                                                 
                                                                                                                                
MR. MAISCH replied fire ecology  is already incorporated in great                                                               
detail in the  fire management plan.  Even back  in the mid-1980s                                                               
the  importance   of  maintaining  fire  on   the  landscape  was                                                               
recognized, especially in Interior  Alaska which is a lightening-                                                               
driven fire ecosystem.  Fire is  frequent in the Interior, and is                                                               
important in maintaining the health of that ecosystem.                                                                          
                                                                                                                                
1:58:17 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO asked  whether the division might decide  to let a                                                               
fire burn in  an area where that is deemed  the best policy, even                                                               
if there  are one or  two places within  that area where  this is                                                               
not the best.                                                                                                                   
                                                                                                                                
MR.  MAISCH answered  yes,  the fire  management  plan gives  the                                                               
division that  direction in a  limited or modified area  where it                                                               
has been  preplanned that  there are  not a  lot of  resources at                                                               
risk or  there are  isolated resources.   This statute  will give                                                               
the  division  more  decision-making  authority  to  be  able  to                                                               
consider a  remote structure in  a limited protection area.   The                                                               
goal of limited protection is to  allow fire to exist and burn in                                                               
a natural state.  So the  division would monitor such a fire, and                                                               
if  it starts  approaching  a  full or  critical  area, then  the                                                               
division will  take action from a  site that makes sense  such as                                                               
along a river.                                                                                                                  
                                                                                                                                
1:59:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  related that he  had just checked  the full                                                               
statutes referenced  on page 3, line  1, and there is  no mention                                                               
of  destructive   agents,  only  fire,  fire   suppression,  fire                                                               
management,  and  fire  planning.    Liability  and  compensation                                                               
directly  related  to  fire  are  also addressed.    He  said  he                                                               
therefore agrees with the suggestion of an amendment.                                                                           
                                                                                                                                
2:00:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON  inquired why  line 13  on page  3 includes                                                               
the prevention of fires but line 17 on that same page does not.                                                                 
                                                                                                                                
MR. MAISCH said the difference between  the two is that [line 17]                                                               
is qualifying  damages because the state  often seeks restitution                                                               
if  the  fire  is  negligent,  and  when  the  state  is  seeking                                                               
restitution  the   costs  incurred  would  be   for  suppressing,                                                               
controlling, or  extinguishing.  Prevention is  a pre-suppression                                                               
activity  that  the  state  undertakes  and  that  would  not  be                                                               
included in the damages for a negligent fire.                                                                                   
                                                                                                                                
2:03:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON  asked whether  it makes a  difference when                                                               
the division is suppressing a fire  if the owners of a threatened                                                               
structure have taken steps to  keep brush removed from around the                                                               
structure versus a structure where nothing has been done.                                                                       
                                                                                                                                
MR.   MAISCH  responded   that  it   could  potentially   make  a                                                               
difference.   The division  calls this Firewise.   Firewise  is a                                                               
statewide  program to  educate private  landowners about  ways in                                                               
which they  can improve the  odds of their structure  surviving a                                                               
wildland fire,  whether or not the  division is there.   In times                                                               
of  triage,  the  division  will  choose  to  defend  a  Firewise                                                               
structure over the one that is not.                                                                                             
                                                                                                                                
2:05:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH requested  Mr. Maisch  to address  how                                                               
the division would value a 120-year-old cedar.                                                                                  
                                                                                                                                
MR. MAISCH  replied that in the  heat of the moment  the division                                                               
does  not  typically get  into  making  decisions about  monetary                                                               
values.  However,  in the preplanning process,  that is something                                                               
that is  taken into  consideration.  In  regard to  forest values                                                               
from  a commodity  standpoint, such  as a  state forest  or areas                                                               
where there are  timber sales or planned timber  sales, that will                                                               
be  taken into  consideration  during the  preplanning stage  and                                                               
could  result in  a higher  level  of protection  for that  area.                                                               
Once there  are no  longer sales  in an area,  it would  be moved                                                               
back into a lower protection level.                                                                                             
                                                                                                                                
2:06:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH  inquired   how  deleting  destructive                                                               
agent  would  affect the  division  and  would  the rest  of  the                                                               
statutes still adequately address pest control.                                                                                 
                                                                                                                                
MR. MAISCH  answered he does  not see  a reason for  having other                                                               
destructive  agents in  there,  it could  be  from older  statute                                                               
language.    Striking  it  here  would  probably  not  cause  any                                                               
problems  in  any  of  the  other statutes  such  as  the  forest                                                               
practices statutes.  He said  this term can include disease, such                                                               
as blight, in addition to insect  pests.  He said Mr. Kevin Saxby                                                               
may be better able to address the question.                                                                                     
                                                                                                                                
2:08:09 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOHNSON reiterated  the  question  of whether  deleting                                                               
"other destructive  agents" from  HB 370 [page  3, line  2] would                                                               
have any affect.                                                                                                                
                                                                                                                                
KEVIN   SAXBY,  Senior   Assistant   Attorney  General,   Natural                                                               
Resources  Section,  Civil  Division (Anchorage),  Department  of                                                               
Law, said  it could.   This  is language that  has existed  for a                                                               
very long time in  Title 41.15.  It is in two  places - under the                                                               
authority to adopt  regulations in 41.15.020 and in  the right of                                                               
entry  to control  and suppress  fires under  41.15.040.   If the                                                               
term  is taken  out,  he explained,  the  [Department of  Natural                                                               
Resources (DNR)]  will lose its  current authority to  enter onto                                                               
private or  other properties  and take  action, even  without the                                                               
permission  of the  landowner,  to  suppress destructive  agents.                                                               
For example, a shipment of house  logs could come in that harbors                                                               
an  invasive  species and  the  landowner  could refuse  to  take                                                               
action; so  DNR could decide to  take action before the  new pest                                                               
spreads.                                                                                                                        
                                                                                                                                
2:09:57 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOHNSON asked  how destructive  agents  relates to  the                                                               
statutes for wildland fire.                                                                                                     
                                                                                                                                
REPRESENTATIVE  WILSON drew  attention to  page 3,  line 10,  and                                                               
noted  that existing  statute does  include the  term destructive                                                               
agent.                                                                                                                          
                                                                                                                                
MR. SAXBY stated the term is in two places in existing law.                                                                     
                                                                                                                                
REPRESENTATIVE WILSON  pointed out  the second  place on  page 3,                                                               
line 14.                                                                                                                        
                                                                                                                                
2:10:41 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON  inquired whether Mr. Saxby  recommends that the                                                               
term "destructive agent" not be removed.                                                                                        
                                                                                                                                
MR. SAXBY replied this is  an authority the legislature gave long                                                               
ago to  the Department of Natural  Resources.  He said  he is not                                                               
aware  that  the department  has  adopted  a lot  of  regulations                                                               
dealing with  other destructive agents,  but he is saying  it may                                                               
become necessary in the future  and this is something that should                                                               
be  thought  about if  the  committee  is  going to  narrow  that                                                               
authority.                                                                                                                      
                                                                                                                                
2:11:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  whether a  hunter along  a pipeline                                                               
right-of-way could  be considered a  destructive agent.   He said                                                               
he  trying to  determine  the parameters  of  what constitutes  a                                                               
destructive agent.                                                                                                              
                                                                                                                                
MR. SAXBY  reiterated that  this is existing  language so  he can                                                               
tell the  committee how it  has been interpreted over  the years,                                                               
and it  was not  interpreted to  mean people  like hunters.   "We                                                               
would  have interpreted  it to  mean forest  pests and  diseases,                                                               
because  the whole  gist of  this is  protection of  the forested                                                               
land and its resources," he said.                                                                                               
                                                                                                                                
2:12:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  inquired  whether  there is  a  place  in                                                               
statute where destructive agent is defined as a pest or disease.                                                                
                                                                                                                                
MR. SAXBY answered there is no definition.                                                                                      
                                                                                                                                
2:13:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI asked whether  a "greenie" could construe                                                               
a destructive agent to be a timber company.                                                                                     
                                                                                                                                
MR.  SAXBY  said  no,  because  all  existing  laws  have  to  be                                                               
construed  together  and  there  is  a major  part  of  the  laws                                                               
governing  the Department  of Natural  Resources in  Title 41.17,                                                               
called  the Forest  Resources and  Practices Act,  that makes  it                                                               
clear the timber industry is vital.   In fact, there is statutory                                                               
intent  language  in   that  act  that  talks   about  the  vital                                                               
importance of the  timber industry and the two laws  must be read                                                               
as being equally applicable.                                                                                                    
                                                                                                                                
2:14:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI  inquired whether  it would be  better to                                                               
use   the  term   "values  of   the   resources  and   structural                                                               
improvements" instead of just "values" [page 3, line 3].                                                                        
                                                                                                                                
MR.  SAXBY  responded  that  term  might  be  too  narrow.    For                                                               
instance,  it could  result in  the  question of  whether a  golf                                                               
course  or   a  reservoir  should  be   considered  a  structural                                                               
improvement.  The  idea was to broaden the scope  by removing the                                                               
adjective that  limits it  to natural resources  and look  at all                                                               
resources.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  KAWASAKI surmised  the  idea was  to  keep it  as                                                               
broad as possible.                                                                                                              
                                                                                                                                
MR. SAXBY  replied yes,  so that planning  can take  into account                                                               
any public input on what local value might need to be protected.                                                                
                                                                                                                                
2:15:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  asked whether leaving the  term "value                                                               
of the  resources" and  only removing the  term "for  the natural                                                               
resources and  watersheds" would  alleviate the  limitation [page                                                               
3, lines 3-4].                                                                                                                  
                                                                                                                                
MR. SAXBY answered that this could  get into some of the concerns                                                               
alluded  to by  Representative Seaton  where someone  could argue                                                               
that the state  is not limiting its focus to  just protecting the                                                               
forest  and is  supposed  to protect  some  other broader  scope.                                                               
Those terms  are what assure that  an off-the-wall interpretation                                                               
cannot occur.                                                                                                                   
                                                                                                                                
2:16:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  inquired whether  there is  any definition                                                               
for destructive agent  that could be included here  to define the                                                               
parameters  that  need  to  be   included  without  the  risk  of                                                               
unintended complications.                                                                                                       
                                                                                                                                
MR. SAXBY said he  does not have a definition off  the top of his                                                               
head, but  it would not be  difficult to consult with  Mr. Maisch                                                               
and come up with something.                                                                                                     
                                                                                                                                
2:17:34 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOHNSON noted  he  would like  to move  HB  370 out  of                                                               
committee today, but the term  destructive agents also causes him                                                               
concern and  he would like a  definition included if the  term is                                                               
left in the bill.                                                                                                               
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH  reminded  the  committee  of  earlier                                                               
testimony  where  it  was  stated   that  destructive  agents  is                                                               
specifically a forestry term for  a destructive pest.  Would this                                                               
term be easily quantifiable in a definition, she asked.                                                                         
                                                                                                                                
MR. MAISCH explained  that the term is used  in other professions                                                               
such as agriculture, and there  are commonly accepted definitions                                                               
based  on the  profession.    In forestry,  the  term would  mean                                                               
insects and diseases  and one could try to list  them all, but it                                                               
would be almost impossible to do  that.  For example, a few years                                                               
ago there  was the issue  of whether  the pine wood  nematode was                                                               
coming into  Alaska or leaving Alaska  in part of the  export log                                                               
shipments and  this language  gave the  Division of  Forestry the                                                               
ability  to  address  that  issue.   He  said  it  would  not  be                                                               
difficult to come  up with an accepted definition  that would put                                                               
some  sideboards on  the destructive  agent  being restricted  to                                                               
forest and insect disease and pests.                                                                                            
                                                                                                                                
CO-CHAIR JOHNSON  held HB 370  to allow  the sponsor the  time to                                                               
decide whether to delete or define the term.                                                                                    
                                                                                                                              
HB 257-AQUATIC FARMING & HATCHERIES                                                                                           
                                                                                                                              
2:20:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON announced that the  next order of business would                                                               
be HOUSE  BILL NO. 257,  "An Act transferring duties  relating to                                                               
aquatic farming  and hatchery operations  from the  Department of                                                               
Fish   and  Game   to  the   Department  of   Natural  Resources,                                                               
eliminating  certain permit  requirements  applicable to  aquatic                                                               
farming and hatchery operations,  and directing the Department of                                                               
Natural  Resources to  administer and  supervise promotional  and                                                               
marketing work  for aquatic farm  products; and providing  for an                                                               
effective date."  [Before the committee was CSHB 257(FSH)]                                                                      
                                                                                                                                
2:21:20 PM                                                                                                                    
                                                                                                                                
JOHN BITNEY,  Staff to Representative  John Harris,  Alaska State                                                               
Legislature, explained  that HB 257 was  changed substantially in                                                               
the House Special  Committee on Fisheries.  The  issue of aquatic                                                               
farming  has been  discussed for  a  number of  years as  aquatic                                                               
farmers  and agencies  have tried  to  get this  industry up  and                                                               
running, he said.  Initially, the  bill was an effort to transfer                                                               
management functions  from the Alaska  Department of Fish  & Game                                                               
(ADF&G) to the  Department of Natural Resources  (DNR) because it                                                               
was felt that  DNR would be better able to  manage this function.                                                               
This was  opposed by the  administration, and in its  stead ADF&G                                                               
has  taken some  budgetary  measures to  beef  up its  management                                                               
functions  and  oversight.   The  sponsor  is hoping  that  those                                                               
efforts will be successful and help this industry move forward.                                                                 
                                                                                                                                
MR. BITNEY  said the bill  was pared  down to three  sections and                                                               
the intent  of these  sections is to  qualify these  products for                                                               
the Alaska  Grown program  that is managed  by the  Department of                                                               
Natural  Resources,   Division  of  Agriculture.     Since  these                                                               
products are  grown through mariculture  - agriculture  under the                                                               
water  - they  would not  fall under  the purview  of the  Alaska                                                               
Seafood  Marketing   Institute  which  focuses  on   wild  caught                                                               
seafood.  It is hoped that  the Alaska Grown program will help in                                                               
the promotion and marketing of these products.                                                                                  
                                                                                                                                
2:25:41 PM                                                                                                                    
                                                                                                                                
MR.  BITNEY  pointed  out  that   ADF&G's  2/19/08  fiscal  note,                                                               
prepared  by Cynthia  Pringham,  and DNR's  2/19/08 fiscal  note,                                                               
prepared  by  the  commissioner's,   speak  to  the  transfer  of                                                               
positions  that were  in the  original bill.   Since  the sponsor                                                               
does not want to transfer those  functions and the bill no longer                                                               
transfers those  functions, the hope  is that those notes  can be                                                               
zero.  There  is a fiscal note from the  Division of Agriculture,                                                               
he said, and the division would  like to address the committee in                                                               
this regard.   If the committee chooses to adopt  the Division of                                                               
Agriculture's fiscal note,  the bill will need a  referral to the                                                               
House Finance Committee.                                                                                                        
                                                                                                                                
2:27:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON asked  whether the  sponsor is  wanting to                                                               
delete lines 2-3 on page 2.                                                                                                     
                                                                                                                                
MR. BITNEY said  the sponsor supports leaving the  bill intact as                                                               
it is.  The sponsor is asking  to change the fiscal notes to zero                                                               
because the bill no longer  transfers functions between agencies.                                                               
As  currently   written,  CSHB  257(FSH)  would   simply  qualify                                                               
mariculture products  for the Alaska  Grown program.   In further                                                               
response  to Representative  Wilson,  Mr.  Bitney confirmed  that                                                               
mariculture  would  not  be  transferred  to  the  Department  of                                                               
Natural Resources,  only the promotion  and marketing  of aquatic                                                               
farm products under the Alaska Grown logo.                                                                                      
                                                                                                                                
2:29:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI inquired why  product marketing would not                                                               
fall  under the  Department  of Commerce,  Community, &  Economic                                                               
Development.                                                                                                                    
                                                                                                                                
MR.  BITNEY  replied  the   Alaska  Grown  promotional  marketing                                                               
program  is within  the Division  of  Agriculture, Department  of                                                               
Natural Resources, and has been since he can remember.                                                                          
                                                                                                                                
2:30:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON  asked whether  there was another  time and                                                               
bill in  which aquatic  farming was  transferred from  the Alaska                                                               
Department of Fish & Game to the Division of Agriculture.                                                                       
                                                                                                                                
REPRESENTATIVE SEATON said that was  the original HB 257 heard in                                                               
the House Special Committee on  Fisheries.  The transfer language                                                               
was  taken  out  and  only the  Alaska  Grown  label  designation                                                               
remains for farmed seafood products.                                                                                            
                                                                                                                                
2:30:58 PM                                                                                                                    
                                                                                                                                
RODGER    PAINTER,   President,    Alaskan   Shellfish    Growers                                                               
Association,  testified  that  the   bill  is  necessary  because                                                               
statute  modifications several  years  ago inadvertently  changed                                                               
the  definition of  products  that DNR  could  include under  the                                                               
Alaska Grown program.   There were already  a dozen [mariculture]                                                               
farms under  the program using  the label when DNR  discovered it                                                               
really did not  have the authority to promote the  products.  The                                                               
department  grandfathered  those farms  in  and  allowed them  to                                                               
continue using the label, but  DNR has prevented additional farms                                                               
from coming  under the program.   So, this is really  a technical                                                               
amendment to give back the authority to DNR.                                                                                    
                                                                                                                                
2:32:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI  inquired whether Mr. Painter  thinks the                                                               
Department of  Commerce, Community, & Economic  Development would                                                               
be a more  appropriate department for marketing  the Alaska Grown                                                               
label.                                                                                                                          
                                                                                                                                
MR. PAINTER answered  that DNR is responsible  for the production                                                               
of agricultural  products until they  reach the marketplace.   If                                                               
there is a  disease problem on the farms, DNR  is responsible for                                                               
it.  Other  agencies come into play after the  products reach the                                                               
marketplace.   The  Division of  Agriculture  is responsible  for                                                               
ensuring that  the production is  taking place in Alaska  and the                                                               
products are being produced in a healthy and safe manner.                                                                       
                                                                                                                                
2:34:03 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON closed public  testimony after ascertaining that                                                               
no one else wished to testify.                                                                                                  
                                                                                                                                
The committee took an at-ease from 2:34 p.m. to 2:37 p.m.                                                                       
                                                                                                                                
2:37:27 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON requested a defense of the fiscal note.                                                                        
                                                                                                                                
AMY   PETTIT,    Development   Specialist,   Inspection/Marketing                                                               
Services,   Division  of   Agriculture,  Department   of  Natural                                                               
Resources, stated that,  due to staff shortages,  the Division of                                                               
Agriculture  cannot  serve  the   needs  of  this  group  without                                                               
additional resources.   Most of  these farms are in  remote areas                                                               
that the  division is not  currently going to for  other reasons.                                                               
To verify  that the  farms qualify for  the Alaska  Grown program                                                               
and that they meet the  requirements of the program, the division                                                               
needs to  conduct site visits like  it does for other  members of                                                               
the Alaska Grown program.                                                                                                       
                                                                                                                                
2:38:33 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON asked how often the  division would go to a farm                                                               
in the Matanuska-Susitna Valley to inspect its potato crop.                                                                     
                                                                                                                                
MS. PETTIT responded that when  new producers apply to the Alaska                                                               
Grown  program,  the division  takes  their  word that  they  are                                                               
complying for the  first year.  Within a year  of the application                                                               
the division will  try to inspect and confirm that  a producer is                                                               
producing Alaska grown  products and only using  the Alaska Grown                                                               
label  on Alaska  grown products  that the  producer is  selling.                                                               
The   division  has   U.S.  Department   of  Agriculture   (USDA)                                                               
inspectors  on staff  that do  inspections in  stores and  on the                                                               
farms for the division.                                                                                                         
                                                                                                                                
2:39:25 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON  inquired why the  inspectors could  not inspect                                                               
the mariculture farms when they visit the other markets.                                                                        
                                                                                                                                
MS. PETTIT replied  the division could more fully  meet the needs                                                               
of this  industry if it  had additional resources.   As mentioned                                                               
by Mr. Painter,  at least 12 farms as well  as an association had                                                               
joined  the program  before,  but the  division  did very  little                                                               
outreach  or education  with them  and  little promotion  through                                                               
grants  because of  discovering that  the division  did not  have                                                               
that authority.   If  the division had  the resources,  there are                                                               
40-50 producers just within Mr.  Painter's association that could                                                               
be contacted  to join the program.   Most of these  producers are                                                               
in remote  locations that  the division  is not  already visiting                                                               
because there is no other agricultural production in that area.                                                                 
                                                                                                                                
2:40:23 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON  asked whether  $5000 would  be enough  for such                                                               
travel.                                                                                                                         
                                                                                                                                
MS. PETTIT  answered she is  unsure because her  supervisor, Doug                                                               
Warner, is the person who prepared the fiscal note.                                                                             
                                                                                                                                
2:40:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON commented  that  this is  his question  as                                                               
well, given there are two positions  in the fiscal note and 40-50                                                               
farms  to inspect.   He  said  he had  interpreted this  to be  a                                                               
labeling program rather than an inspection program.                                                                             
                                                                                                                                
2:41:32 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON inquired how many inspectors are on staff now.                                                                 
                                                                                                                                
MS. PETTIT  stated the division  has two USDA inspectors,  but it                                                               
is not their  job to inspect for the Alaska  Grown program.  That                                                               
is  her  responsibility as  the  Development  Specialist and  she                                                               
makes sure that applicants actually  qualify for the Alaska Grown                                                               
program.    However,  when the  division's  USDA  inspectors  are                                                               
already on  site at  a farm  or in the  grocery store,  they also                                                               
look at Alaska Grown products to  make sure that the logo is only                                                               
being used with  qualified products.  In further  response to Co-                                                               
Chair  Johnson,  Ms. Pettit  said  both  she and  the  division's                                                               
marketing assistant  conduct farm  visits, visit the  farmers who                                                               
are selling  at farmer's markets,  and visit stores to  make sure                                                               
that  the logo  is being  used only  on those  qualified products                                                               
that the division has approved the farmers for.                                                                                 
                                                                                                                                
2:42:30 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON asked  how many producers are  qualified for the                                                               
label.                                                                                                                          
                                                                                                                                
MS. PETTIT replied she just  signed a letter today for authorized                                                               
user number 360.                                                                                                                
                                                                                                                                
2:42:41 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOHNSON  commented  that two  employees  are  currently                                                               
handling 360 producers and now the request is for one and one-                                                                  
half employees to handle 40 producers.                                                                                          
                                                                                                                                
MS.  PETTIT said  that  is a  simplified way  of  looking at  it.                                                               
Those 360 have  come into the program over the  past 20 years and                                                               
inspections are not  conducted every single year.   "We make sure                                                               
people are staying within compliance  of the logo restrictions as                                                               
we're there - if  we are already on a trip  down to the peninsula                                                               
we stop  by and see as  many Alaska Grown authorized  users as we                                                               
can while we go."                                                                                                               
                                                                                                                                
2:43:12 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON  asked why  the fiscal  note, which  would carry                                                               
into 2014, does not get any cheaper over the years.                                                                             
                                                                                                                                
MS.  PETTIT reiterated  she did  not prepare  the fiscal  note so                                                               
could not speak to it.                                                                                                          
                                                                                                                                
2:43:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH inquired  whether the  inspections are                                                               
required by statute or regulation.                                                                                              
                                                                                                                                
MS.  PETTIT  said  the  division  was  in  the  final  stages  of                                                               
developing  regulations  for the  Alaska  Grown  program when  it                                                               
stopped moving them forward due to  the Alaska Grown lawsuit.  In                                                               
further  response   to  Representative  Fairclough,   Ms.  Pettit                                                               
confirmed  that  it is  not  in  statute and  it  is  not yet  in                                                               
regulations.                                                                                                                    
                                                                                                                                
2:44:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  surmised the statute does  not require                                                               
a  mandatory visit.   How  is the  division measuring  the fiscal                                                               
note in the timeframe needed for  getting there and to have those                                                               
in perpetuity as state employees, she asked.                                                                                    
                                                                                                                                
MS. PETTIT  said the division thinks  the lawsuit is coming  to a                                                               
close at  which time it  will move forward with  the regulations.                                                               
The division  would like to  include the mariculture  industry in                                                               
those regulations and in its Alaska Grown promotion program.                                                                    
                                                                                                                                
REPRESENTATIVE   FAIRCLOUGH  presumed   it   is  the   division's                                                               
recommendation to verify Alaska Grown  in a future regulation and                                                               
that is what is being based on this current fiscal note.                                                                        
                                                                                                                                
MS. PETTIT responded yes, if she understands the question.                                                                      
                                                                                                                                
2:46:21 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON  asked whether these positions  were included in                                                               
the governor's request for budget items.                                                                                        
                                                                                                                                
MS. PETTIT replied she does not know.                                                                                           
                                                                                                                                
CO-CHAIR  JOHNSON   noted  that  someone  in   the  audience  was                                                               
vehemently shaking his or her head  no.  He expressed his concern                                                               
about  inflating  the budget  through  fiscal  notes and  growing                                                               
positions.                                                                                                                      
                                                                                                                                
2:46:55 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO understood  the lawsuit  was between  the farmers                                                               
and  the state  and the  state won  the right  and obligation  to                                                               
protect the  Alaska Grown label.   This is what it  will cost for                                                               
the state to protect the label  - inspections on all the products                                                               
that fall under the auspices of  the Alaska Grown label.  He said                                                               
it cannot be done for nothing  and he is guessing that the fiscal                                                               
note is because this is what the state wants to do.                                                                             
                                                                                                                                
MS. PETTIT agreed.   The judge ruled in the  state's favor on all                                                               
counts in the lawsuit, she said,  and the state is now waiting to                                                               
see what  the damage level will  be.  Alaska Grown  is a 20-year-                                                               
old program that  has been very successful  when measured against                                                               
programs in  the other states.   It  does cost money  to maintain                                                               
this program.   If another  industry is  added to the  program it                                                               
will cost  money to conduct  inspections, develop  guidelines for                                                               
the industry,  and promote that  industry at an equal  measure of                                                               
the other industries.                                                                                                           
                                                                                                                                
2:48:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH  accepted Co-Chair  Gatto's  statement                                                               
about wanting  to protect the Alaska  Grown label.  She  said she                                                               
is  certain  that  if  the governor  thought  the  [360]  current                                                               
producers  could not  be managed  inside the  present budget  the                                                               
governor  would  have added  something  into  her new  budget  or                                                               
offered   a  supplemental.     This   fiscal  note   is  attached                                                               
specifically for  having to  visit the shellfish  farms.   If the                                                               
division only  has to visit a  farm once to verify,  then what is                                                               
the issue and  why does the fiscal note carry  into [2014], asked                                                               
Representative Fairclough.  She said  she is not trying to strike                                                               
the fiscal  note, just trying  to understand why the  numbers and                                                               
the  [staff] positions  go forward  instead  of just  a one  time                                                               
visit.                                                                                                                          
                                                                                                                                
2:50:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG  inquired whether there is  a buy-in or                                                               
fee associated with becoming a part of the Alaska Grown program.                                                                
                                                                                                                                
MS. PETTIT  answered no,  at this  time it  is a  no-cost, no-fee                                                               
program for the producers.                                                                                                      
                                                                                                                                
2:50:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   ROSES  asked   whether  shellfish   growers  are                                                               
currently  required to  have periodic  tests for  quality control                                                               
and paralytic shellfish poisoning.                                                                                              
                                                                                                                                
MS.  PETTIT said  she is  uncertain about  the current  tests and                                                               
inspections for that industry.                                                                                                  
                                                                                                                                
MR.  PAINTER stated  that his  association's products  are tested                                                               
for   paralytic  shellfish   poisoning  by   the  Department   of                                                               
Environmental Conservation (DEC).   The growing/harvesting waters                                                               
are  tested twice  a  year  for cleanliness  by  DEC.   Shellfish                                                               
growers are subject to food safety  rules under the U.S. Food and                                                               
Drug Administration  that are locally  administered by DEC.   All                                                               
movements of  shellfish products must  be approved by  the Alaska                                                               
Department of Fish  & Game.  The Department  of Natural Resources                                                               
has  a  person overseeing  the  leases  who annually  visits  the                                                               
farms.  He  said he thinks there are many  ways of verifying that                                                               
these products  are Alaska grown  through onsite  verification by                                                               
the DNR  representative and Division  of Mining, Land  and Water,                                                               
and a solid paper trail could be  created.  This could be done at                                                               
very little cost and travel  to the [Division of Agriculture], he                                                               
said.                                                                                                                           
                                                                                                                                
2:53:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES  commented  that  the  Alaska  Grown  label                                                               
clearly provides  a marketing advantage and  therefore has value.                                                               
The  jeopardy of  losing that  advantage by  falsifying documents                                                               
would  encourage producers  to stay  within the  parameters.   He                                                               
said  it appears  to  him that  the  [mariculture] producers  are                                                               
already buried in  paperwork with all the  inspections that occur                                                               
now and  adding more paperwork  and inspections  seems redundant.                                                               
He recommended the committee deal with  just the bill and let the                                                               
House Finance Committee deal with the fiscal note.                                                                              
                                                                                                                                
CO-CHAIR JOHNSON agreed with letting  the House Finance Committee                                                               
deal with it.                                                                                                                   
                                                                                                                                
2:55:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SEATON  understood   that  the   12  mariculture                                                               
producers  currently using  the  Alaska Grown  label are  already                                                               
doing their own marketing.   There was testimony that there would                                                               
be promotional marketing  of the farms by the  state; however, he                                                               
said he  does not believe that  is what is being  requested here.                                                               
What is  being requested is  to be able  to use the  Alaska Grown                                                               
label and  the producers will do  their own marketing.   He urged                                                               
that  the  fiscal  note  address  this issue  as  the  bill  goes                                                               
forward.                                                                                                                        
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  inquired whether  there would  be more                                                               
impact if  the committee struck  the position on the  fiscal note                                                               
rather than making a recommendation.                                                                                            
                                                                                                                                
CO-CHAIR JOHNSON said the bill might  not go to the House Finance                                                               
Committee if the fiscal  note is zeroed out.  He  said he will be                                                               
conversing  with the  co-chairs of  that committee  regarding the                                                               
aforementioned concerns.                                                                                                        
                                                                                                                                
2:57:48 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO  moved to  report CSHB  257(FSH) out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes and forthcoming fiscal notes.                                                                                             
                                                                                                                                
REPRESENTATIVE  WILSON  objected  and  suggested  that  committee                                                               
recommendations be added to the motion.                                                                                         
                                                                                                                                
CO-CHAIR GATTO  moved to  report CSHB  257(FSH) out  of committee                                                               
with   individual   and   committee   recommendations   and   the                                                               
accompanying fiscal notes and forthcoming fiscal notes.                                                                         
                                                                                                                                
REPRESENTATIVE WILSON withdrew her objection.                                                                                   
                                                                                                                                
There  being no  further  objection, CSHB  257(FSH) was  reported                                                               
from the House Resources Standing Committee.                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 2:59 p.m.