ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURES STANDING COMMITTEE                                                                              
                         March 17, 2017                                                                                         
                           2:05 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Andy Josephson, Co-Chair                                                                                         
Representative Geran Tarr, Co-Chair                                                                                             
Representative Dean Westlake, Vice Chair                                                                                        
Representative Harriet Drummond                                                                                                 
Representative Justin Parish                                                                                                    
Representative Chris Birch                                                                                                      
Representative George Rauscher                                                                                                  
Representative David Talerico                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative DeLena Johnson                                                                                                   
Representative Mike Chenault (alternate)                                                                                        
Representative Chris Tuck (alternate)                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 19                                                                                                               
"An Act limiting the application of neonicotinoid pesticides."                                                                  
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 46                                                                                                               
"An  Act   relating  to  the  state   and  municipal  procurement                                                               
preferences for agricultural products  harvested in the state and                                                               
fisheries products harvested or  processed in the state; relating                                                               
to  the sale  of  milk, milk  products, raw  milk,  and raw  milk                                                               
products; and providing for an effective date."                                                                                 
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 172                                                                                                              
"An Act relating  to the regulation and  production of industrial                                                               
hemp; relating to industrial hemp  pilot programs; providing that                                                               
industrial   hemp  is   not  included   in   the  definition   of                                                               
'marijuana'; and  clarifying that adding industrial  hemp to food                                                               
does not create an adulterated food product."                                                                                   
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PRESENTATION(S) AGRICULTURE ACTIVITIES IN ALASKA                                                                                
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PRESENTATION(S): NENANA AGRICULTURE LAND                                                                                        
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 19                                                                                                                   
SHORT TITLE: BAN NEONICOTINOID PESTICIDES                                                                                       
SPONSOR(s): REPRESENTATIVE(s) DRUMMOND                                                                                          
                                                                                                                                
01/18/17       (H)       PREFILE RELEASED 1/9/17                                                                                
01/18/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/17       (H)       RES                                                                                                    
03/17/17       (H)       RES AT 1:00 PM GRUENBERG 120                                                                           
                                                                                                                                
BILL: HB 46                                                                                                                   
SHORT TITLE: PROCURE AK FISH/AG PROD.; ALASKA GROWN                                                                             
SPONSOR(s): REPRESENTATIVE(s) TARR                                                                                              
                                                                                                                                
01/18/17       (H)       PREFILE RELEASED 1/13/17                                                                               
01/18/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/17       (H)       STA, RES, FIN                                                                                          
03/08/17       (H)       SPONSOR SUBSTITUTE INTRODUCED-REFERRALS                                                                
03/08/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/08/17       (H)       RES, FIN                                                                                               
03/15/17       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/15/17       (H)       Heard & Held                                                                                           
03/15/17       (H)       MINUTE (RES)                                                                                           
03/15/17       (H)       RES AT 6:00 PM BARNES 124                                                                              
03/15/17       (H)       -- MEETING CANCELED --                                                                                 
03/17/17       (H)       RES AT 1:00 PM GRUENBERG 120                                                                           
                                                                                                                                
BILL: HB 172                                                                                                                  
SHORT TITLE: INDUSTRIAL HEMP PRODUCTION LICENSES                                                                                
SPONSOR(s): REPRESENTATIVE(s) DRUMMOND                                                                                          
                                                                                                                                
03/10/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/10/17       (H)       RES, JUD                                                                                               
03/15/17       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/15/17       (H)       Heard & Held                                                                                           
03/15/17       (H)       MINUTE (RES)                                                                                           
03/15/17       (H)       RES AT 6:00 PM BARNES 124                                                                              
03/15/17       (H)       -- MEETING CANCELED --                                                                                 
03/17/17       (H)       RES AT 1:00 PM GRUENBERG 120                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JOANNA SCHULTZ, Staff                                                                                                           
Representative Harriett Drummond                                                                                                
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  On behalf  of Representative Drummond, prime                                                             
sponsor,  explained the  changes made  in the  proposed committee                                                               
substitute for HB 19, and answered questions.                                                                                   
                                                                                                                                
CHRISTINA CARPENTER, Director                                                                                                   
Division of Environmental Health                                                                                                
Department of Environmental Conservation (DEC)                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions  during the hearing on HB                                                             
19.                                                                                                                             
                                                                                                                                
ROB CARTER, Manager                                                                                                             
Plant Materials Center (PMC)                                                                                                    
Division of Agriculture                                                                                                         
Department of Natural Resources (DNR)                                                                                           
Palmer, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions  during the hearing on HB                                                             
19.                                                                                                                             
                                                                                                                                
DAVID OTNESS                                                                                                                    
Cordova, Alaska                                                                                                                 
POSITION  STATEMENT:    During  the hearing  on  HB  19,  offered                                                             
testimony.                                                                                                                      
                                                                                                                                
LOUIS TOZZI                                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:    During  the hearing  on  HB  19,  offered                                                             
testimony.                                                                                                                      
                                                                                                                                
PAMELA K. MILLER, Biologist and Executive Director                                                                              
Alaska Community Action on Toxics (ACAT)                                                                                        
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   During  the  hearing  on  HB 19,  had  her                                                             
written testimony paraphrased by Patti J. Saunders.                                                                             
                                                                                                                                
PATTI J. SAUNDERS                                                                                                               
Development Director                                                                                                            
Alaska Community Action on Toxics (ACAT)                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered a question during the hearing on                                                                
HB 19.                                                                                                                          
                                                                                                                                
JOHN ANDERSON                                                                                                                   
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the hearing on HB 46.                                                                   
                                                                                                                                
DAVID OTNESS                                                                                                                    
Cordova, Alaska                                                                                                                 
POSITION STATEMENT:  Testified during the hearing on HB 46.                                                                   
                                                                                                                                
JOHANNA HERRON, Development Specialist II                                                                                       
Division of Agriculture                                                                                                         
Department of Natural Resources (DNR)                                                                                           
Palmer, Alaska                                                                                                                  
POSITION STATEMENT:  Answered a question during the hearing on                                                                
HB 46.                                                                                                                          
                                                                                                                                
DAVID OTNESS                                                                                                                    
Cordova, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in support of HB 172.                                                                          
                                                                                                                                
JACK BENNETT                                                                                                                    
Alaska Representative                                                                                                           
Industrial Hemp Manufacturing, LLC (IHM)                                                                                        
Homer, Alaska                                                                                                                   
POSITION STATEMENT:  During the hearing on HB 172, offered                                                                    
testimony.                                                                                                                      
                                                                                                                                
WES SCHACHT                                                                                                                     
Alaska Cannabis Advocacy                                                                                                        
Fritz Creek, Alaska                                                                                                             
POSITION STATEMENT:  During the hearing on HB 172, offered                                                                    
testimony.                                                                                                                      
                                                                                                                                
ROBERT CARTER, Manager                                                                                                          
Plant Materials Center (PMC)                                                                                                    
Division of Agriculture                                                                                                         
Department of Natural Resources (DNR)                                                                                           
Palmer, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions during the hearing on HB                                                              
172.                                                                                                                            
                                                                                                                                
PATRICK FITZGERALD, Staff                                                                                                       
Representative Harriet Drummond                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Provided information during  the hearing on                                                             
HB 172, on behalf of Representative Drummond, prime sponsor.                                                                    
                                                                                                                                
GEORGE PIERCE                                                                                                                   
Kasilof, Alaska                                                                                                                 
POSITION STATEMENT:   Offered testimony during the  hearing on HB                                                             
172.                                                                                                                            
                                                                                                                                
ED MARTIN, JR.                                                                                                                  
Cooper Landing, Alaska                                                                                                          
POSITION STATEMENT:   Offered testimony during the  hearing on HB                                                             
172.                                                                                                                            
                                                                                                                                
ARTHUR KEYES, Acting Director                                                                                                   
Division of Agriculture                                                                                                         
Department of Natural Resources                                                                                                 
Palmer, Alaska                                                                                                                  
POSITION STATEMENT:   Gave a presentation  regarding agricultural                                                             
activities in Alaska.                                                                                                           
                                                                                                                                
ELIJAH VERHAGEN, Staff                                                                                                          
Representative Dave Talerico                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Gave  a  PowerPoint presentation,  "Nenana                                                             
Totchaket  Bridge  to  Resources," on  behalf  of  Representative                                                               
Talerico.                                                                                                                       
                                                                                                                                
ARTHUR KEYS, Director                                                                                                           
Division of Agriculture                                                                                                         
Department of Natural Resources                                                                                                 
City, Alaska                                                                                                                    
POSITION STATEMENT:  Offered comments  during the presentation on                                                             
Nenana Agriculture Land.                                                                                                        
                                                                                                                                
WYNN MENEFEE, Deputy Director                                                                                                   
Trust Land Office (TLO)                                                                                                         
Alaska Mental Health Trust Authority                                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Offered  information during the presentation                                                             
on the Nenana Agriculture Land.                                                                                                 
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
2:05:39 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  ANDY  JOSEPHSON  called the  House  Resources  Standing                                                             
Committee  meeting  to  order  at   2:05  p.m.    Representatives                                                               
Josephson,  Talerico, Parish,  Westlake, Rauscher,  Drummond, and                                                               
Tarr were present at the  call to order.  Representative Rauscher                                                               
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
               HB 19-BAN NEONICOTINOID PESTICIDES                                                                           
                                                                                                                                
2:06:44 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOSEPHSON announced  that the  first order  of business                                                               
would be HOUSE  BILL NO. 19, "An Act limiting  the application of                                                               
neonicotinoid pesticides."                                                                                                      
                                                                                                                                
2:07:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND,  speaking  as  the sponsor  of  HB  19,                                                               
remarked:                                                                                                                       
                                                                                                                                
     One  in   three  bites  of   food  we  eat   relies  on                                                                    
     pollinators.   Alaska's primary pollinators  are native                                                                    
     bumble bees; the diversity of  native bees in Alaska is                                                                    
     astonishing.   About 4,000 different species  have been                                                                    
     cataloged in North America, and  of those, 49 are found                                                                    
     in  Alaska.   Bumble  bees are  the  most prominent  of                                                                    
     those  and  are  excellent pollinators,  especially  of                                                                    
     Alaska's  berry  species  ....   More  than  9  million                                                                    
     European honeybees  are imported into Alaska  each year                                                                    
     for honey  production.  These  bees play  a significant                                                                    
     role  in  pollinating  Alaska's  crops  and  wildlands.                                                                    
     Alaskan beekeepers  are starting to overwinter  bees in                                                                    
     order to develop heartier Alaskan bee stock.                                                                               
                                                                                                                                
     Bee populations have been in  an alarming decline since                                                                    
     2006, in many  parts of the world.  For  the first time                                                                    
     this year,  a bumble bee  species in the  United States                                                                    
     was declared endangered by the  U. S. Fish and Wildlife                                                                    
     Service.  Widespread  use of a relatively  new class of                                                                    
     toxic  pesticide,  neonicotinoids,   is  a  significant                                                                    
     contributing  factor.    In addition  to  killing  bees                                                                    
     outright, research  has shown  that even low  levels of                                                                    
     neonicotinoids impair  bees' ability to find  their way                                                                    
     back  to the  hive, collect  food, produce  new queens,                                                                    
     and mount an effective immune response.                                                                                    
                                                                                                                                
     This  legislation would  protect  both agriculture  and                                                                    
     wild plants  that rely on  pollinators.  The  bill aims                                                                    
     to prevent  the spread of these  pesticides before they                                                                    
     impact  Alaskan agriculture.   Over  two-thirds of  the                                                                    
     ...  farmers involved  with  the  Alaska Grown  program                                                                    
     grow crops  that depend on  bees for pollination.   So,                                                                    
     in  spirit   of  Co-Chair  Tarr's  third   annual  Food                                                                    
     Security  Week, we  introduce this  bill,  not only  to                                                                    
     protect  Alaska's pollinators  but to  protect Alaska's                                                                    
     growing agricultural industry.                                                                                             
                                                                                                                                
2:09:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR  moved to adopt  the proposed  committee substitute                                                               
(CS)  for HB  19,  Version 30-LS0219\D,  Nauman,  3/8/17, as  the                                                               
working document.                                                                                                               
                                                                                                                                
CO-CHAIR JOSEPHSON objected for discussion purposes.                                                                            
                                                                                                                                
2:10:03 PM                                                                                                                    
                                                                                                                                
JOANNA SCHULTZ,  Staff, Representative Harriett  Drummond, Alaska                                                               
State Legislature,  on behalf  of Representative  Drummond, prime                                                               
sponsor  of HB  19, informed  the committee  the main  difference                                                               
between the  original version of the  bill and Version D  is that                                                               
under  Version D,  if [neonicotinoid]  pesticides are  used, then                                                               
[the  treated  seeds,  foliage,  or soil],  must  remain  in  the                                                               
greenhouse for  the remainder of  their life span.   In addition,                                                               
the  bill  exempts  certified pesticide  applicators  and  allows                                                               
certified pesticide "users" to  continue using pesticides outside                                                               
or inside a  greenhouse.  In response to  Co-Chair Josephson, she                                                               
clarified that  [under Version D],  anything the  pesticides have                                                               
been used on must stay in a greenhouse.                                                                                         
                                                                                                                                
2:11:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER  said he  has heard  that bees  are dying                                                               
around the world  and he asked whether there is  evidence that is                                                               
currently happening in Alaska.                                                                                                  
                                                                                                                                
REPRESENTATIVE  DRUMMOND  replied that  it  is  not happening  in                                                               
Alaska yet, because the neonicotinoid  class of pesticides is not                                                               
widely used  in Alaska at  this time.   The goal of  the proposed                                                               
legislation is  to prevent the  bees in Alaska, which  are mostly                                                               
wild   pollinators,   from  being   impacted   by   the  use   of                                                               
neonicotinoid pesticides.                                                                                                       
                                                                                                                                
REPRESENTATIVE RAUSCHER  questioned how bee activity  is recorded                                                               
in Alaska.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  DRUMMOND  answered   through  the  Department  of                                                               
Environmental Conservation.                                                                                                     
                                                                                                                                
2:13:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAUSCHER  restated his  question  as  to how  the                                                               
state will  know whether  the use of  the pesticide  has affected                                                               
bees in Alaska.                                                                                                                 
                                                                                                                                
2:13:58 PM                                                                                                                    
                                                                                                                                
CHRISTINA CARPENTER, Director,  Division of Environmental Health,                                                               
Department  of Environmental  Conservation  (DEC), answered  that                                                               
DEC  is not  directly tracking  bee kill-off  in Alaska,  but the                                                               
department works with  its counterparts in other  states to track                                                               
those bee  kill-offs throughout  the nation  and also  works with                                                               
the U. S. Environmental Protection Agency (EPA).                                                                                
                                                                                                                                
2:14:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WESTLAKE  asked whether  there are  any unintended                                                               
consequences Ms.  Carpenter has seen  in other states  from using                                                               
neonicotinoid pesticides.                                                                                                       
                                                                                                                                
MS.  CARPENTER  offered  to  provide   the  committee  with  some                                                               
examples.                                                                                                                       
                                                                                                                                
2:16:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DRUMMOND  concluded her  presentation of HB  19 by                                                               
warning  that  the  legislature  needs  to  stop  the  spread  of                                                               
neonicotinoid  pesticides  to  prevent their  widespread  use  in                                                               
Alaska.                                                                                                                         
                                                                                                                                
2:16:23 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON observed the bill  directs that the use of the                                                               
pesticides  would have  to be  entirely within  a greenhouse  and                                                               
whatever is  being grown  would have to  stay in  the greenhouse.                                                               
He asked, "Is the  idea that if a private person  wants to take a                                                               
risk with exposure, that's up to the individual?"                                                                               
                                                                                                                                
REPRESENTATIVE DRUMMOND  indicated yes.   She clarified  that the                                                               
bill  references commercial  greenhouses  and pointed  out it  is                                                               
unknown whether seedlings  coming up from the Lower  48 have been                                                               
pretreated with  neonicotinoids.   Large home  improvement stores                                                               
and stores such  as Fred Meyer, sell thousands  of seedlings that                                                               
are grown elsewhere,  and Alaska has no control  over how they've                                                               
been treated unless  they come from a state that  forbids the use                                                               
of neonicotinoids.   Furthermore, some states may  not forbid use                                                               
in a  greenhouse where  some seedlings are  started; the  goal of                                                               
the legislation is  to keep use of the  pesticides from spreading                                                               
in  Alaska.   Representative Drummond  explained that  use by  an                                                               
individual  in his/her  own backyard  may  not seem  significant;                                                               
however, bees spend  the summer in her backyard and  she does not                                                               
want to  expose them to neonicotinoids.   Representative Drummond                                                               
described  the legislation  as a  contribution to  a much  larger                                                               
effort.                                                                                                                         
                                                                                                                                
2:18:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PARISH  asked  where   else  this  ban  has  been                                                               
enforced, and to what effect.                                                                                                   
                                                                                                                                
MS. SCHULTZ offered her understanding  that Maryland passed a ban                                                               
last year  that focuses on  the restriction of sales  rather than                                                               
on usage, and  the state will allow existing products  to be sold                                                               
for two  years before the  ban takes  full effect.   In addition,                                                               
certain  cities  have enacted  bans,  for  example, Portland  and                                                               
Eugene, Oregon, and Spokane, Washington.                                                                                        
                                                                                                                                
REPRESENTATIVE PARISH  asked whether there have  been any efforts                                                               
internationally.                                                                                                                
                                                                                                                                
MS. SCHULTZ said  the European Union, in 2013, enacted  a ban and                                                               
has been reviewing the ban either last year or this year.                                                                       
                                                                                                                                
REPRESENTATIVE PARISH  asked whether the European  Union has seen                                                               
any effects on the bee population since enacting the ban.                                                                       
                                                                                                                                
MS. SCHULTZ  said she has not  seen studies but surmised  that is                                                               
because they  are still in the  process of being conducted.   She                                                               
added, "But that was the goal of  the ... ban, so that they could                                                               
really see if it ... made a difference."                                                                                        
                                                                                                                                
2:20:09 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON expressed his  understanding that Minnesota is                                                               
a cutting-edge  jurisdiction, in terms  of banning some  of these                                                               
pesticides.   He  asked whether  other states  ban at  least some                                                               
classes of pesticides.                                                                                                          
                                                                                                                                
MS. SCHULTZ  agreed Minnesota  has been  working on  some related                                                               
legislation,  but only  Maryland  passed legislation  to ban  the                                                               
sale  of  neonicotinoids,  [with   the  exemption  to]  certified                                                               
pesticide applicators.                                                                                                          
                                                                                                                                
2:20:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BIRCH  inquired as  to  the  availability of  the                                                               
neonicotinoid pesticides.                                                                                                       
                                                                                                                                
2:21:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND advised  [neonicotinoid pesticides]  are                                                               
already available in  the retail market.  She said  she is unsure                                                               
whether    or   how    professional    applicators   are    using                                                               
[neonicotinoid]  pesticides.     She   related  that   her  staff                                                               
contacted  all the  growers  in Alaska  that  were available  for                                                               
comment and  none of them  are using  [neonicotinoid pesticides].                                                               
Notwithstanding that, she remarked that  anyone can go to [Alaska                                                               
Mill Feed  & Garden  Center] and  purchase products  that include                                                               
neonicotinoid pesticides.                                                                                                       
                                                                                                                                
REPRESENTATIVE BIRCH asked  if there is a brand name  to look for                                                               
in the list of ingredients on a particular product.                                                                             
                                                                                                                                
REPRESENTATIVE  DRUMMOND  answered that  there  are  a number  of                                                               
these classes of pesticides.                                                                                                    
                                                                                                                                
REPRESENTATIVE  BIRCH  explained  his consideration  is  for  the                                                               
average customer walking  into a store to buy a  pest killer, not                                                               
the  professionals that  "know  what they're  doing."   He  asked                                                               
again if there is a brand name to identify.                                                                                     
                                                                                                                                
REPRESENTATIVE DRUMMOND  answered, "Bayer is  one of them."   She                                                               
said that  until she learned about  neonicotinoid pesticides, she                                                               
had been  unaware she was  applying them  to her plants  for many                                                               
years.  She  described the product as expensive -  about $150 for                                                               
1.5 gallons.   She  said she  limits her use  of the  product she                                                               
bought  [containing neonicotinoid  pesticides] to  only when  she                                                               
sees aphids.   She explained  that the products are  not supposed                                                               
to be used  when plants are flowering, because that  is when bees                                                               
come to the plants to pollenate  them.  She said the average user                                                               
may  not  follow  the  rules, but  commercial  users  are  exempt                                                               
because they  are supposed  to be applying  the pesticide  at the                                                               
appropriate time in the plants' cycles.                                                                                         
                                                                                                                                
REPRESENTATIVE BIRCH  asked if the  pesticide used  to obliterate                                                               
wasps can also damage bees.                                                                                                     
                                                                                                                                
REPRESENTATIVE DRUMMOND  answered that she  is not sure,  but she                                                               
noted that  there are some  wasps in  the pollinator class.   She                                                               
added, "But if you're just  attacking wasps, I can't imagine that                                                               
it's going to impact flowers nearby."                                                                                           
                                                                                                                                
2:25:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAUSCHER  questioned  whether  wasps,  bees,  and                                                               
bumblebees are all the same classification of insect.                                                                           
                                                                                                                                
REPRESENTATIVE DRUMMOND  said she doesn't know.   Notwithstanding                                                               
that, she  related that the  49 pollinators identified  in Alaska                                                               
include  not only  bees  of  various types,  but  also wasps  and                                                               
certain varieties of flies.                                                                                                     
                                                                                                                                
2:27:13 PM                                                                                                                    
                                                                                                                                
ROB CARTER,  Manager, Plant Materials  Center (PMC),  Division of                                                               
Agriculture, Department of Natural  Resources (DNR), offered that                                                               
most  [pesticides], including  neonicotinoid pesticides,  are not                                                               
selective:  "They will kill things."   In response to a follow-up                                                               
question  from  Representative Rauscher,  he  said  he would  not                                                               
state that the  pesticides kill "all" insects.  He  said, "I will                                                               
say  that  ...  these  do  have significant  impact  on  a  large                                                               
majority of the  insects out there.  That is  their intention and                                                               
that is their use and why they were created."                                                                                   
                                                                                                                                
2:27:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAUSCHER  remarked that  wasps  eat  aphids.   He                                                               
offered  his  understanding  that  wasps had  been  brought  into                                                               
Alaska for  that specific purpose.   He asked, "So, if  these are                                                               
on the plant, the aphids are  there, and the wasp eats the aphid,                                                               
then what's the deal?"                                                                                                          
                                                                                                                                
2:27:56 PM                                                                                                                    
                                                                                                                                
MR. CARTER answered that wasps and  bees are in the same kingdom,                                                               
phylum,  and  class,  but  are  in  a  different  suborder.    He                                                               
confirmed there are parasitic wasps  that attack aphids.  He said                                                               
[neonicotinoid  pesticides] also  kill  aphids, but  he does  not                                                               
know if a wasp would be affected  by eating an aphid that had fed                                                               
on a plant that had been treated with a neonicotinoid pesticide.                                                                
                                                                                                                                
2:29:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WESTLAKE said he applauds  HB 19, but he expressed                                                               
concern  about unintended  consequences.   He questioned  whether                                                               
the proposed  legislation might  result in  a situation  in which                                                               
there are  trees along a highway  being killed by pests,  but "we                                                               
can't do anything about it."                                                                                                    
                                                                                                                                
2:30:32 PM                                                                                                                    
                                                                                                                                
MS.  SCHULTZ  pointed  out  that  Version D  would  not  ban  the                                                               
application    of   neonicotinoid    pesticides   by    certified                                                               
applicators, which  generally would be  the ones treating  a pest                                                               
invasion alongside a highway.                                                                                                   
                                                                                                                                
2:31:06 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR  noted that  she is  a botanist  who has  worked on                                                               
this issue  for about 20 years.   She opined that  the changes in                                                               
Version D are  reasonable, because most of the  concern about the                                                               
application of  [neonicotinoid pesticides] is in  regard to those                                                               
individuals who are  untrained and over apply the  product or use                                                               
it   under  the   wrong  conditions.     Limiting   the  use   of                                                               
neonicotinoid  pesticides  to  commercially  trained  applicators                                                               
manages  "improper application  in  the environment"  as well  as                                                               
protecting the applicators from any unnecessary exposure.                                                                       
                                                                                                                                
2:32:01 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOSEPHSON  expressed  his  support of  HB  19  and  his                                                               
concern regarding  the health of  the bee population in  the U.S.                                                               
He stated  his assumption that the  proposed legislation pertains                                                               
to healthy ecosystems, but surmised  it may also link to economic                                                               
systems in  Alaska.  He  asked the  bill sponsor to  explain "why                                                               
bees are important in that respect."                                                                                            
                                                                                                                                
REPRESENTATIVE  DRUMMOND answered  that  over  two-thirds of  the                                                               
farmers  in  the  Alaska  Grown   program  depend  upon  bees  to                                                               
pollinate their  crops.  She  reemphasized the proportion  of the                                                               
world's food that relies on  pollination.  She stated, "There are                                                               
billions of bees  that are bred and moved around  in the world of                                                               
agriculture to be  there at the appropriate  time for pollinating                                                               
those particular crops.  It's a huge industry in the Lower 48."                                                                 
                                                                                                                                
CO-CHAIR JOSEPHSON drew  attention to the fiscal note.   He noted                                                               
that he  is not a legislator  who subscribes to the  idea that in                                                               
tough fiscal times no legislation  should ever cost anything.  He                                                               
invited the bill sponsor to comment on the fiscal note.                                                                         
                                                                                                                                
REPRESENTATIVE  DRUMMOND replied  that she  is having  difficulty                                                               
believing that  DEC needs  "one entire person  to track  a single                                                               
pesticide"  when  it  is  already  tracking  a  number  of  other                                                               
chemicals.   She added,  "But it's  hard for  me to  question the                                                               
professionals in this manner."                                                                                                  
                                                                                                                                
2:34:04 PM                                                                                                                    
                                                                                                                                
MS.  SCHULTZ pointed  out that  the fiscal  note aligns  with the                                                               
original  bill  version;  therefore,  it does  not  include  "the                                                               
certified applicators  piece."   She said,  "That may  and should                                                               
lower the fiscal note."                                                                                                         
                                                                                                                                
2:34:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PARISH  questioned why  the bill sponsor  chose to                                                               
focus  on  the application  rather  than  sale of  [neonicotinoid                                                               
pesticides].   He  said studies  have  shown that  [neonicotinoid                                                               
pesticides]  can  also kill  birds  and  potentially mammals  and                                                               
fish, as well.                                                                                                                  
                                                                                                                                
2:35:00 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR,  based on her experience  with similar legislation                                                               
in the past,  imparted that "you cannot ban the  sale, because it                                                               
violates the U.S. Constitution Interstate  Commerce Clause."  The                                                               
choice, she  explained, is to  limit how  the product is  used in                                                               
Alaska.                                                                                                                         
                                                                                                                                
2:35:27 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON  noted that last  year, on the  federal level,                                                               
there was  a "fairly  controversial" bipartisan  effort regarding                                                               
"further restrictions on chemicals and that sort of thing."                                                                     
                                                                                                                                
MS. SCHULTZ, after ascertaining  that Co-Chair Josephson had been                                                               
referring to Maryland, offered her  understanding that "they have                                                               
restricted where you  can purchase these pesticides;  so, you can                                                               
purchase  neonicotinoid pesticides  where you  can also  purchase                                                               
restricted use  pesticides."  She  said she  is not aware  of any                                                               
stores in Alaska that "strictly sell restricted use pesticides."                                                                
                                                                                                                                
2:36:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER  mentioned that beekeepers  are concerned                                                               
about [neonicotinoid pesticides],  and he said he  wants to learn                                                               
as  much  as  possible  about  the issue  before  voting  on  the                                                               
proposed  legislation.   He  referred  to  reading material  that                                                               
states that  a single kernel  of corn treated  with neonicotinoid                                                               
pesticides can kill a songbird that  ingests it and "as little as                                                               
one-tenth  of a  coated  kernel seed  per  day during  egg-laying                                                               
season  can impair  reproduction..."   He questioned  how weather                                                               
such as  rain or  snow may affect  the strength  or neonicotinoid                                                               
pesticides  on plants  and  whether there  could  be runoff  that                                                               
could affect other plants.                                                                                                      
                                                                                                                                
MS. SCHULTZ  stated that she  is not an expert.   Notwithstanding                                                               
that, she offered her understanding  that the chemicals enter the                                                               
plant and end up in the pollen that is collected by the bees.                                                                   
                                                                                                                                
2:39:35 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOSEPHSON imparted  to anyone  curious about  the issue                                                               
that  the  proper   federal  law  to  look  at   is  the  Federal                                                               
Insecticide,  Fungicide, and  Rodenticide Act  (FIFRA), which  he                                                               
offered  his understanding  had not  recently been  amended.   He                                                               
added, "It was TOSCA, which was  the Toxic Chemicals Act that was                                                               
just..."                                                                                                                        
                                                                                                                                
CO-CHAIR JOSEPHSON opened public testimony on HB 19.                                                                            
                                                                                                                                
2:40:14 PM                                                                                                                    
                                                                                                                                
DAVID  OTNESS expressed  appreciation that  the issue  before the                                                               
committee is being addressed.  He  opined that the onus should be                                                               
on the manufacturers  of pesticides to first prove  that they are                                                               
not  harmful.    He  said [neonicotinoid  pesticides]  have  been                                                               
linked as  the source  of "massive  die-offs."   He characterized                                                               
neonicotinoid  pesticides as  a powerful  poison, and  he offered                                                               
his understanding that  they are derived from  the tobacco plant,                                                               
which  in itself  is  a  powerful drug.    He concluded,  "Before                                                               
things get to the point where  there could be conflicts of people                                                               
wanting  to  use  this  on  a  commercial  scale,  I  think  it's                                                               
excellent that  we address it  proactively right now and  sort of                                                               
take that  attitude with much  of what  we're facing ahead  of us                                                               
here.   I think  it would  ... clarify  a lot  of things  for the                                                               
public, and also those who might want to use it to begin with."                                                                 
                                                                                                                                
2:42:15 PM                                                                                                                    
                                                                                                                                
LOUIS TOZZI  noted that he had  sent an e-mail to  the committee,                                                               
but would  address a few  important points today.   Regarding the                                                               
threat neonicotinoid  pesticides have on bees,  he explained that                                                               
the biggest issue is that  neonicotinoid pesticides are systemic;                                                               
all tissue  of the  plants -  including the  nectar and  pollen -                                                               
pick up and retain the  pesticides, which "makes the plant itself                                                               
a pesticide."   Bees gather nectar,  which has low levels  of the                                                               
pesticide, but in  the process of making honey  from that nectar,                                                               
water   evaporates,  which   essentially   has   the  effect   of                                                               
concentrating [the neonicotinoid pesticides].   Mr. Tozzi advised                                                               
that because  neonicotinoid pesticides are long-lived,  they tend                                                               
to last in the plant for the entire  life of the plant.  He said,                                                               
"So while applying  them when the plant is blooming  is an issue,                                                               
it  ... could  have been  applied much  sooner than  that and  it                                                               
still presents an impact to the honey bees."                                                                                    
                                                                                                                                
MR. TOZZI directed  attention to language in the  bill that read,                                                               
"applied to  the soil in  granular form".   He advised this  is a                                                               
big problem,  because "it creates  a loophole where a  farmer who                                                               
purchases  ... or  greenhouse person  who purchases  treated seed                                                               
from  ... outside  of Alaska  could potentially  plant that  seed                                                               
outdoors."   He  explained this  possibility would  exist because                                                               
the bill  language, in only  specifying granular form,  would not                                                               
prevent "a liquid or a seed with a treatment on it."                                                                            
                                                                                                                                
MR.  TOZZI  suggested  another   possible  issue  is  that  after                                                               
application,  these chemicals  will often  "drift out"  as a  dry                                                               
residue  to  areas  beyond  the intended  farm  fields,  and  the                                                               
neonicotinoid pesticides are readily  picked up by the indigenous                                                               
plants in the adjacent countryside.                                                                                             
                                                                                                                                
2:46:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER  asked what  Mr. Tozzi's  credentials are                                                               
regarding [neonicotinoid pesticides].                                                                                           
                                                                                                                                
MR. TOZZI answered that he is a  beekeeper and part of a group of                                                               
beekeepers  working   to  breed  an  Alaska-hardy   bee  so  that                                                               
beekeeping  in Alaska  can be  more  sustainable.   He said  bees                                                               
overwinter in  Alaska, but not  without much intervention  on the                                                               
part  of  beekeepers.    He  concluded, "And  so,  I  don't  have                                                               
scientific  background  other than  what  I  need  to know  as  a                                                               
beekeeper."                                                                                                                     
                                                                                                                                
2:47:43 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease at 2:48 p.m.                                                                                 
                                                                                                                                
2:48:20 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON indicated that he  would like to hear from Ms.                                                               
Carpenter regarding Mr. Tozzi's  comment that treated seeds could                                                               
be  placed  outside and  thus  circumvent  a prohibition  on  the                                                               
granular form of [neonicotinoid pesticides].                                                                                    
                                                                                                                                
2:48:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAUSCHER,   regarding  the  systemic   nature  of                                                               
[neonicotinoid pesticides], said  he would like to  know if there                                                               
are  other  pesticides that  are  also  [systemic].   He  further                                                               
questioned  if  the  comments  about  [neonicotinoid  pesticides]                                                               
becoming part of honey could also apply to other pesticides.                                                                    
                                                                                                                                
2:49:38 PM                                                                                                                    
                                                                                                                                
MS. CARPENTER offered to follow up with information.                                                                            
                                                                                                                                
2:50:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH  said he has  friends in Fairbanks  that are                                                               
beekeepers   and    understands   the   biggest    challenge   in                                                               
overwintering the bees is in keeping  them fed.  He asked if bees                                                               
are more resistant  to one pesticide over another  or whether the                                                               
problem  with  the  neonicotinoid  pesticides is  that  they  are                                                               
longer lived.                                                                                                                   
                                                                                                                                
2:51:17 PM                                                                                                                    
                                                                                                                                
MR. TOZZI answered that "the  pesticides" are long-lived and will                                                               
last through  winter after being  brought back  to the hive.   He                                                               
reiterated his  explanation about  the evaporation of  water from                                                               
the honey  resulting in a  more concentrated level  of pesticide.                                                               
He said one theory as to  the mid-winter disappearance of bees in                                                               
the Lower  48 is  that the bees,  having ingested  the pesticide,                                                               
which is a  neurotoxin, "lose track of where  they're supposed to                                                               
be and what they're supposed to be  doing and then fly off in the                                                               
middle of  winter."  Mr. Tozzi  said he has heard  anecdotally of                                                               
that happening in Alaska, but he  said he cannot say that is what                                                               
the cause  was.   Mr. Tozzi  noted that  the pesticides  are also                                                               
stored  in the  beeswax,  which is  an  economic factor,  because                                                               
"clean beeswax  is something that's  very difficult to  come by."                                                               
He said  the ongoing  low level [of  pesticides] to  the colonies                                                               
makes it much more difficult for them to survive the winter.                                                                    
                                                                                                                                
2:53:59 PM                                                                                                                    
                                                                                                                                
PAMELA  K.  MILLER,  Biologist  and  Executive  Director,  Alaska                                                               
Community  Action on  Toxics (ACAT),  had  her written  testimony                                                               
paraphrased by  Patti J.  Saunders.  Ms.  Miller's testimony  - a                                                               
letter  to   Representative  Drummond   dated  March   15,  2017,                                                               
[included in  the committee packet]  - read as  follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     I am  writing on behalf  of Alaska Community  Action on                                                                    
     Toxics,  a  statewide non-profit  environmental  health                                                                    
     research and advocacy organization.  Thank you for your                                                                    
     introduction   of  HB   19,   "An   Act  limiting   the                                                                    
     application of  neonicotinoid pesticides."  We strongly                                                                    
     endorse this  bill as an  important measure  to protect                                                                    
     bees and other pollinators so  crucial to a majority of                                                                    
     our  crops   that  serve   as  vital   food  resources.                                                                    
     Neonicotinoid  pesticides  have  long  been  associated                                                                    
     with harm to  bees and other pollinators.  In 2016, the                                                                    
     Environmental  Protection  Agency  (EPA)  released  the                                                                    
     first risk  assessment of neonicotinoid  pesticides and                                                                    
     concluded  that  they  can cause  significant  harm  to                                                                    
     honeybees.    Increasing   independent    peer-reviewed                                                                    
     scientific   evidence   has   demonstrated   that   the                                                                    
     widespread use of the  dangerous class of neonicotinoid                                                                    
     pesticides is  a factor in  the precipitous  decline of                                                                    
     bees and other pollinators.  Studies have shown serious                                                                    
     adverse   effects   to  bees   including   navigational                                                                    
     ability,   mobility,  and   reproduction.  Even   small                                                                    
     exposures to neonicotinoid  pesticides can damage bees'                                                                    
     ability  to  gather  pollen, impair  their  memory  and                                                                    
     social behavior, weaken their  immune systems, and harm                                                                    
     colony  health  and  longevity. Scientists  have  shown                                                                    
     that  exposure  to   certain  neonicotinoid  pesticides                                                                    
     reduces  bees'  immune defenses,  promoting  infections                                                                    
     associated with  such diseases as deformed  wing virus.                                                                    
     Recent  scientific  studies  have  shown  that  chronic                                                                    
     exposure  of  honeybees   to  environmental  levels  of                                                                    
     neonicotinoid pesticides can  impair their learning and                                                                    
     memory. Another  study reported that wild  bees exposed                                                                    
     to neonicotinoid-coated  seeds had reduced  nesting and                                                                    
     were  not successful  in building  brood cells  for new                                                                    
     larvae.  In addition,  chronic exposure  to one  of the                                                                    
     most    commonly    used    neonicotinoid    pesticides                                                                    
     (imidacloprid) was found to  be associated with reduced                                                                    
     brood  production, reduced  colony growth,  and an  85%                                                                    
     reduction  in  the   production  of  bumblebee  queens.                                                                    
     Neonicotinoid  pesticides   are  also  found   to  have                                                                    
     adverse   effects   on   many  other   non-target   and                                                                    
     beneficial  organisms,  including  butterflies,  birds,                                                                    
     and aquatic  insects. There are also  emerging concerns                                                                    
     about the  possible adverse  neurodevelopmental effects                                                                    
     of  neonicotinoid pesticides  on  children. We  believe                                                                    
     the evidence  supports the need for  urgent legislative                                                                    
     action. We urge  swift passage of this  bill to suspend                                                                    
     the use of these harmful chemicals in Alaska.                                                                              
                                                                                                                                
2:57:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   BIRCH   asked  how   widespread   [neonicotinoid                                                               
pesticides] are commercially compared to other pesticides.                                                                      
                                                                                                                                
PATTI J. SAUNDERS, Development  Director, Alaska Community Action                                                               
on Toxics (ACAT), answered that  they are commonly available, but                                                               
she has not  done the research yet to know  the percentages.  She                                                               
stated, "Just reading  the label isn't necessarily  going to help                                                               
people,  because this  class of  pesticides is  not labeled  as a                                                               
class."  For example, someone  might see "imidacloprid" may be on                                                               
the label,  but someone reading that  may not realize that  it is                                                               
[a  neonicotinoid pesticide  that  is killing  bees].   She  said                                                               
education of both  sellers and consumers is necessary.   She said                                                               
she  thinks there  is already  a lot  of concern  among regarding                                                               
neonicotinoid pesticides,  and she  surmised that  Alaskans would                                                               
welcome  more  information   about  "these  endocrine  disrupting                                                               
pesticides."                                                                                                                    
                                                                                                                                
2:59:34 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON  removed his objection to  the previous motion                                                               
to  adopt  the proposed  committee  substitute  (CS) for  HB  19,                                                               
Version  30-LS0219\D, Nauman,  3/8/17, as  the working  document.                                                               
There  being  no further  objection,  Version  D was  before  the                                                               
committee.                                                                                                                      
                                                                                                                                
2:59:50 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOSEPHSON   closed  public  testimony  on   HB  19  and                                                               
announced that HB 19 was held over.                                                                                             
                                                                                                                                
3:00:08 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON handed the gavel to Co-Chair Tarr.                                                                           
                                                                                                                                
          HB 46-PROCURE AK FISH/AG PROD.; ALASKA GROWN                                                                      
                                                                                                                                
3:00:53 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR announced that the  next order of business would be                                                               
HOUSE BILL  NO. 46, "An Act  relating to the state  and municipal                                                               
procurement  preferences for  agricultural products  harvested in                                                               
the state  and fisheries products  harvested or processed  in the                                                               
state; relating  to the  sale of milk,  milk products,  raw milk,                                                               
and raw milk products; and providing for an effective date."                                                                    
                                                                                                                                
3:01:00 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR opened public testimony on HB 46.                                                                                 
                                                                                                                                
3:01:28 PM                                                                                                                    
                                                                                                                                
JOHN  ANDERSON expressed  appreciation to  the committee  for its                                                               
interest  in agriculture.   He  said  he had  concerns about  the                                                               
proposed  legislation.    He  related  that  he  is  a  livestock                                                               
producer and  "HB 46 is a  good attempt at a  futile process that                                                               
someone like  myself can't  touch."  He  stated that  while there                                                               
may  be a  small trickledown  effect, [the  proposed legislation]                                                               
would  benefit   just  a   few  farmers.     He   explained  that                                                               
unfortunately he could not touch  a price point anywhere close to                                                               
15 percent.                                                                                                                     
                                                                                                                                
MR. ANDERSON  said another issue  is in determining what  will be                                                               
considered "Alaska  Grown."  He questioned  whether animals would                                                               
be allowed to  be brought to Alaska and slaughtered  the next day                                                               
and qualify  for marketing at  the 15  percent increase or  if it                                                               
will be held to the high  standard of Alaska Grown, which is that                                                               
the animal [has been  in Alaska] for 51 percent of  its life.  He                                                               
predicted that if imported animals  are "allowed to be considered                                                               
to  this standard  without any  check,"  then "certain  producers                                                               
will  take advantage  of bottom  floor  cattle and  hog prices  -                                                               
especially in  Canada right now  - and  walk away making  lots of                                                               
quick bucks and  having an almost zero impact in  our state."  He                                                               
indicated that those  producers would not be buying  grain or hay                                                               
in substantial amounts;  therefore, he questioned the  worth of a                                                               
program that of which people can take advantage.                                                                                
                                                                                                                                
MR. ANDERSON  mentioned the (indisc.),  on which he is  a member,                                                               
is  thriving; however,  he cautioned  the committee  that he  has                                                               
witnessed  many instances  of  disregard for  the  rules and  the                                                               
intentional  mislabeling of  products.   He said  he has  brought                                                               
many of  his concerns to  the Division of Agriculture,  and "they                                                               
do not feel they can protect  the logo anymore."  He said because                                                               
the  division  will  no longer  investigate  "wrongdoings,"  some                                                               
[producers]  have  started  new  labels, such  as  "Golden  Heart                                                               
Grown" in the Interior and "Grow Palmer" in Palmer, Alaska.                                                                     
                                                                                                                                
CO-CHAIR TARR, as  prime sponsor of HB 46,  informed Mr. Anderson                                                               
that under  current statute,  the percentage is  7 percent.   She                                                               
surmised that  if the [proposed]  15 percent would not  allow Mr.                                                               
Anderson an  opportunity, then the  existing 7  percent certainly                                                               
would not,  because it  is over  50 percent less.   She  said she                                                               
understands   that  while   the   proposed  change   is  a   "big                                                               
improvement," it  will not accommodate  everyone.   She indicated                                                               
her understanding of the challenges  of being a small producer of                                                               
livestock or produce.   She explained her  commitment to continue                                                               
working beyond the  opportunity proposed under HB  46 "to support                                                               
... things that will allow  more opportunity for a small producer                                                               
like yourself."  She indicated  that the reason she supported the                                                               
Mt. McKinley Meat Processing Facility  was so that people such as                                                               
Mr. Anderson could have the opportunity to get into the market.                                                                 
                                                                                                                                
CO-CHAIR TARR, regarding  the issue of "Alaska  Grown," said, "We                                                               
would anticipate  using the same  Alaska Grown rule  and standard                                                               
that's  in place  now."   Notwithstanding that,  she acknowledged                                                               
the concern raised by Mr. Anderson regarding imported animals.                                                                  
                                                                                                                                
3:06:31 PM                                                                                                                    
                                                                                                                                
DAVID OTNESS  testified that  he liked  the sentiment  behind [HB                                                               
46] and  wants Alaska  to develop more  intrastate commerce.   He                                                               
said he would hold back  from offering further testimony until he                                                               
got "up to speed" on [the proposed legislation].                                                                                
                                                                                                                                
3:07:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PARISH questioned whether  the statement made by a                                                               
previous  testifier -  that animals  could be  imported one  day,                                                               
slaughtered  the  next,  and  marketed  as  Alaska  Grown  -  was                                                               
accurate.                                                                                                                       
                                                                                                                                
3:07:56 PM                                                                                                                    
                                                                                                                                
JOHANNA   HERRON,   Development   Specialist  II,   Division   of                                                               
Agriculture,  Department of  Natural  Resources (DNR),  responded                                                               
that that is not current  practice.  She said, "The certification                                                               
policy that was passed in  previous years states clearly ... that                                                               
livestock must  be raised 51 percent  of its life or  more in the                                                               
state to be marketed as Alaska  Grown."  She said there have been                                                               
a couple instances  where "that has been  challenged and concerns                                                               
have  been raised,  and  ... we  investigate ...  as  we hear  of                                                               
those."                                                                                                                         
                                                                                                                                
3:08:35 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR, after ascertaining that  there was no one else who                                                               
wished  to  testify,  closed  public  testimony on  HB  46.    In                                                               
response to  Representative Rauscher,  she stated her  intent for                                                               
the committee to move HB 46 that day.                                                                                           
                                                                                                                                
REPRESENTATIVE RAUSCHER  noted that his district  reaches Palmer,                                                               
Glennallen, Delta, and Valdez, and  it contains a lot of cultural                                                               
land  and livestock.   He  requested HB  46 be  held for  another                                                               
hearing so  that he would have  time to speak to  his constituent                                                               
farmers.                                                                                                                        
                                                                                                                                
3:10:15 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR said  she does not mind honoring  that request, but                                                               
she indicated it could result in  the committee having to meet in                                                               
the evenings to  catch up on its workload.   She pointed out that                                                               
she  has  been working  on  "this  particular product  preference                                                               
statute"  since 2014  and has  presented  information at  several                                                               
"farm  bureau  meetings,"  working   closely  with  many  of  the                                                               
individuals in Representative Rauscher's district.                                                                              
                                                                                                                                
3:11:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER  expressed his appreciation for  the work                                                               
that has  been done  thus far,  and he  maintained his  desire to                                                               
have more time with HB 46.                                                                                                      
                                                                                                                                
3:11:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WESTLAKE suggested  that Representative  Rauscher                                                               
could talk to someone within  the Division of Agriculture who may                                                               
be stationed in Representative Rauscher's district.                                                                             
                                                                                                                                
3:12:10 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  TARR expressed  her hope  that Representative  Rauscher                                                               
could get  the answers  he needed either  from division  staff or                                                               
his constituents.                                                                                                               
                                                                                                                                
3:13:03 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR announced that HB 46 was held over.                                                                               
                                                                                                                                
           HB 172-INDUSTRIAL HEMP PRODUCTION LICENSES                                                                       
                                                                                                                                
3:13:07 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR announced that the  next order of business would be                                                               
HOUSE  BILL NO.  172,  "An  Act relating  to  the regulation  and                                                               
production of industrial hemp; relating  to industrial hemp pilot                                                               
programs; providing that  industrial hemp is not  included in the                                                               
definition of 'marijuana'; and  clarifying that adding industrial                                                               
hemp to food does not create an adulterated food product."                                                                      
                                                                                                                                
3:13:11 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR opened public testimony on HB 172.                                                                                
                                                                                                                                
3:13:21 PM                                                                                                                    
                                                                                                                                
DAVID OTNESS  testified that he  thinks it is important  that "we                                                               
expand into a  hardy crop that has so many  applications and none                                                               
of the  negatives formerly associated  with it."  He  opined that                                                               
there is potential  in Alaska for those willing to  remain in the                                                               
state "through  thick and  thin," and he  remarked that  what the                                                               
state is about to endure is "the thin."                                                                                         
                                                                                                                                
MR. OTNESS  said [HB  172] should  give people  "a good  means of                                                               
supplementing their  existing operations and  perhaps incentivize                                                               
others  to  ...  start  up."    He  said  [hemp]  seems  to  have                                                               
"unlimited potential"  and is  a hardy  plant that  should thrive                                                               
with [Alaska's] daylight  hours.  He concluded,  "I just heartily                                                               
endorse the idea of our agriculture expanding this direction."                                                                  
                                                                                                                                
3:14:42 PM                                                                                                                    
                                                                                                                                
JACK    BENNETT,   Alaska    Representative,   Industrial    Hemp                                                               
Manufacturing, LLC  (IHM), testified that industrial  hemp is not                                                               
"a  marijuana  issue"  -  it   is  an  agricultural  issue.    He                                                               
encouraged  the committee  to  "rethink the  way  we think  about                                                               
hemp."  Mr. Bennett stated,  "My company ... [is] North America's                                                               
largest.   It has the  capability of producing 40  million pounds                                                               
annually and it's  ... devoted ... to the oil  well companies, to                                                               
help  Alaskan   fluids  engineers  drill  faster,   lighter,  and                                                               
cheaper."                                                                                                                       
                                                                                                                                
MR.  BENNETT said  all  of  the company's  fiber  is  sold to  an                                                               
automotive   partner  in   Indiana  that   manufactures  American                                                               
automobiles  with bio-composites,  hemp plastics,  which he  said                                                               
are stronger than  fiberglass on a boat [and  more] flexible than                                                               
a formula one race car.                                                                                                         
                                                                                                                                
MR. BENNETT  said he has  presented [hemp]  to the military  as a                                                               
remediation  product that  replaces  polypropylene  booms in  the                                                               
water, is  five times more  absorbent, and rather than  ending up                                                               
in  a land  fill turns  into an  energy source.   He  said, "That                                                               
remediation product, through these  plant fiber technologies, are                                                               
also ...  applied in the soil  in the granular form  to remediate                                                               
land impacted  by crude [oil],  chemicals, radiation -  what have                                                               
you - within 90 days."                                                                                                          
                                                                                                                                
MR. BENNETT  shared that he  is building  a model home  in Homer,                                                               
Alaska, as an  affordable housing solution.  He  said, "There are                                                               
6,000 unit  shortages in rural  Alaska."  He relayed  that 22,000                                                               
acres [of hemp grown] in one  season produce 6,000 homes that are                                                               
1,000 square  feet in size.   Mr. Bennett concluded,  "It doesn't                                                               
matter how green it is; at the end  of the day, we're all here to                                                               
make money."                                                                                                                    
                                                                                                                                
3:17:06 PM                                                                                                                    
                                                                                                                                
MR.  BENNETT,  in  response   to  questions  from  Representative                                                               
Rauscher,  imparted that  the  equipment used  by  IHM costs  $30                                                               
million and  there are  only five  made:  two  in France,  two in                                                               
South Africa,  and one in  North Carolina.   He said  the company                                                               
works with farmers in Alaska  "to collect the material devoted to                                                               
remediation and oil and gas industries in Alaska."                                                                              
                                                                                                                                
3:18:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER asked,  "Where do you get  your hemp from                                                               
now to be a head manufacturer incorporated?"                                                                                    
                                                                                                                                
MR. BENNETT  answered that North Carolina  is currently "shaping"                                                               
its regulations and policies.   He said 7,000 acres of industrial                                                               
hemp is  needed in order to  produce 40 million annually  and his                                                               
"counterparts" are looking to purchase  14,000 acres, because the                                                               
machinery "has the  ability to expand to 80 million  pounds."  He                                                               
indicated that the  company is currently using kenaf,  which is a                                                               
member of  the hibiscus family.   He indicated the U.S.  Navy had                                                               
studied  the high  absorbency of  kenaf in  use as  a remediation                                                               
product, and  he stated  that hemp  is even  more absorbent.   He                                                               
indicated that IHM uses kenaf as an alternative to hemp.                                                                        
                                                                                                                                
MR. BENNETT,  in response to Representative  Rauscher, said kenaf                                                               
is grown  in "the tobacco  belt," in Georgia and  North Carolina.                                                               
To a follow-up question, Mr.  Bennett informed the committee that                                                               
kenaf  is a  legal product  used in  the automotive  industry [in                                                               
the]  manufacture   of  automotive   parts.     The  [automotive]                                                               
companies are  transitioning out of  kenaf [use] into the  use of                                                               
industrial  hemp,  because  the   latter  has  "more  value-added                                                               
products."                                                                                                                      
                                                                                                                                
3:20:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PARISH offered his  understanding that Mr. Bennett                                                               
had  implied  that  his  organization   is  prepared  to  make  a                                                               
substantial investment in  Alaska.  He asked Mr.  Bennett if that                                                               
estimation is accurate and what the dollar amount might be.                                                                     
                                                                                                                                
MR. BENNETT  responded that  he "has presented  to many  oil well                                                               
drilling companies in  Alaska."  He stated, "This  is an emergent                                                               
... technology that  helps the fluids engineer, and  this is what                                                               
they'll use for now on.   That industry alone - that mud additive                                                               
- is a billion-dollar industry annually."                                                                                       
                                                                                                                                
3:21:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PARISH offered his  understanding that Mr. Bennett                                                               
had said  IMH is considering  "bringing a  plant to Alaska."   He                                                               
asked  how quickly  "we" could  expect to  see "more  substantive                                                               
investment"  from  Mr.  Barrett's organization  if  the  proposed                                                               
legislation was made law tomorrow.                                                                                              
                                                                                                                                
MR. BENNETT  answered, "Baby  steps."   He said  once legislation                                                               
passes, the company would help  Alaska acquire [equipment], while                                                               
not as  expensive as the  $30 million ones  previously mentioned,                                                               
something  that will  work in  Alaska in  a centralized  location                                                               
accessible to farmers.                                                                                                          
                                                                                                                                
3:22:29 PM                                                                                                                    
                                                                                                                                
WES SCHACHT, Alaska Cannabis Advocacy,  spoke to the long history                                                               
of  hemp being  grown  in American  agriculture  even before  the                                                               
inception of [the  United States].  He shared that  both sides of                                                               
his  ancestry raised  hemp.   He  stated, "It's  also helped  the                                                               
American economy off and on  for years - Revolutionary War, Civil                                                               
War - it was required by every  farmer over five acres of land to                                                               
raise one acre of industrial hemp,  and to outlaw it and not have                                                               
its production is ludicrous."                                                                                                   
                                                                                                                                
MR. SCHACHT  said there  are many uses  for hemp,  including [the                                                               
prevention of] soil  erosion, the use of its  fibers for building                                                               
materials, the use of its oil  "for everything from edible oil to                                                               
bird  seed."    He  urged  everyone  to  read  a  pamphlet  about                                                               
industrial  hemp  [included in  the  committee  packet] to  learn                                                               
about  the product.   He  stated, "I  find it  really inane  that                                                               
we're allowed  to grow psychoactive  cannabis but  not industrial                                                               
hemp."   He indicated  that [the worst  thing that  could result]                                                               
from smoking hemp is "a headache or sore lungs."                                                                                
                                                                                                                                
3:23:57 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR  commented on the historical  aspect of agriculture                                                               
and its renaissance.                                                                                                            
                                                                                                                                
3:24:57 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR closed public testimony on HB 172.                                                                                
                                                                                                                                
3:25:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER prefaced his query  by stating that he is                                                               
not "against  this bill."   He then  asked for  confirmation that                                                               
the Division of Agriculture would "draw the regulations."                                                                       
                                                                                                                                
3:27:00 PM                                                                                                                    
                                                                                                                                
ROBERT CARTER,  Manager, Plant  Materials Center  (PMC), Division                                                               
of Agriculture,  Department of Natural Resources  (DNR), answered                                                               
that it  is DNR's intent to  draft the regulations that  would be                                                               
needed  upon  passage of  HB  172  to  "make this  a  sustainable                                                               
program  for  ...  those  interested  all  around  the  state  of                                                               
Alaska."  He indicated that  because [industrial hemp] is "guilty                                                               
by  association"  with  recreational  marijuana,  the  department                                                               
wants to  ensure a  good foundation so  that the  industrial hemp                                                               
industry can grow.                                                                                                              
                                                                                                                                
3:28:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAUSCHER asked  for comment  regarding the  three                                                               
zero fiscal notes.                                                                                                              
                                                                                                                                
3:29:42 PM                                                                                                                    
                                                                                                                                
PATRICK  FITZGERALD,  Staff,   Representative  Harriet  Drummond,                                                               
Alaska State  Legislature, on behalf of  Representative Drummond,                                                               
prime  sponsor of  HB 172,  acknowledged that  one of  the fiscal                                                               
notes  states  that  the   proposed  legislation  would  regulate                                                               
industrial   hemp  through   the   Department  of   Environmental                                                               
Conservation (DEC).   He explained  that that was a  mistake and,                                                               
when corrected, there will still  be three zero fiscal notes, but                                                               
the [corrected]  fiscal note will  reflect that  "the regulations                                                               
will be under the Division of Agriculture."                                                                                     
                                                                                                                                
REPRESENTATIVE  RAUSCHER indicated  that  he would  like to  hear                                                               
from  the division,  because "we're  looking  for something  else                                                               
here."                                                                                                                          
                                                                                                                                
3:30:41 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  TARR  suggested that  the  drafting  of regulations  is                                                               
something  that [the  Division of  Agriculture]  does within  its                                                               
"existing scope of work."                                                                                                       
                                                                                                                                
MR. CARTER  responded, "Wonderfully  said."   He added  that from                                                               
the standpoint of PMC, once  a crop has been deemed agricultural,                                                               
it  becomes the  purview of  the Division  of Agriculture,  which                                                               
takes on  the responsibility of supporting  agricultural industry                                                               
in Alaska.                                                                                                                      
                                                                                                                                
3:32:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PARISH cited language at the  top of page 3, of HB                                                               
172,  which says  that "the  state may  create and  administer an                                                               
agricultural  pilot  program  to study  growth,  cultivation  and                                                               
marketing of industrial hemp."  He  suggested it may be useful to                                                               
set a  fee schedule to finance  such a pilot program  "so that we                                                               
could be doing research as we're ... charging forward,"                                                                         
                                                                                                                                
3:33:18 PM                                                                                                                    
                                                                                                                                
MR.  FITZGERALD   responded,  "That's  the  idea   of  the  pilot                                                               
program."                                                                                                                       
                                                                                                                                
CO-CHAIR TARR  asked Mr. Fitzgerald  if he meant that  [the pilot                                                               
program] would be "self-funded through the fees."                                                                               
                                                                                                                                
MR. FITZGERALD  confirmed that  "the fees  would ...  produce the                                                               
funds  in order  to conduct  the studies  through ...  [the pilot                                                               
program]."                                                                                                                      
                                                                                                                                
REPRESENTATIVE PARISH offered his  understanding that there would                                                               
be allowance for  regulating the industry, but not  for the pilot                                                               
program.                                                                                                                        
                                                                                                                                
MR.  FITZGERALD responded,  "I will  take a  look at  the Section                                                               
76.06 of the farm bill, and I will follow up with that."                                                                        
                                                                                                                                
3:34:13 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR reopened public testimony on HB 172.                                                                              
                                                                                                                                
3:34:18 PM                                                                                                                    
                                                                                                                                
GEORGE  PIERCE recommended  the committee  take a  look at  a web                                                               
site,  called  "information  distillery."   He  said  [industrial                                                               
hemp] is  not like marijuana;  it cannot  make someone high.   He                                                               
advised the committee that hemp is  one of the most useful plants                                                               
on earth, with  the following attributes:  the  ability to enrich                                                               
the soil  where it is grown;  seeds that are an  excellent source                                                               
of  minerals, protein,  and dietary  fiber; and  a source  of all                                                               
essential fatty and amino acids.                                                                                                
                                                                                                                                
MR. PIERCE  noted that many individuals  eat fish as a  source of                                                               
essential  fats,   but  because   of  concern   about  commercial                                                               
overfishing and possible chemical  contaminants, many have chosen                                                               
to switch  to hemp.   He said hemp is  also good for  animals and                                                               
can be used  for body care and papermaking.   He relayed that the                                                               
first American Flag was made from  hemp.  Mr. Pierce said hemp is                                                               
also good for:  fiber,  textile, rope, petroleum, and to "replace                                                               
gasoline for diesel engines."  He called the product "amazing."                                                                 
                                                                                                                                
MR.  PIERCE restated  the safe  nature of  hemp and  repeated his                                                               
recommendation about  the information distillery.   He noted that                                                               
hemp  is a  renewable  resource, as  well as  being  a source  of                                                               
income, of which he said the state is in need.                                                                                  
                                                                                                                                
CO-CHAIR TARR said  that as a botanist, she is  familiar with the                                                               
many uses of  hemp, and she expressed appreciation  to Mr. Pierce                                                               
for his comments.                                                                                                               
                                                                                                                                
3:37:39 PM                                                                                                                    
                                                                                                                                
ED  MARTIN,  JR. said  he  currently  owns property  in  Sterling                                                               
Alaska, which would  be available for growing  both marijuana and                                                               
hemp;  however, he  pointed  out that  he and  his  wife are  not                                                               
allowed  to get  a license  to grow  in Alaska,  because although                                                               
they have  been residents in Alaska  for many years, they  do not                                                               
apply  for  the  Alaska  Permanent   Fund  Dividend  (PFD).    He                                                               
expressed  hope that  there would  not  be "a  requirement for  a                                                               
protection  racket in  the industry  to just  Alaskans" under  HB                                                               
172.   He  said he  had pleaded  with the  legislature to  review                                                               
administrative regulations related to marijuana law.                                                                            
                                                                                                                                
MR. MARTIN  said there  is a  distinction between  [marijuana law                                                               
and law  pertaining to hemp]  and both are "revenue  getters" for                                                               
Alaska.  He talked about the  efforts on the House floor to state                                                               
spending.   He indicated that  the sale  of land could  result in                                                               
the  ability  to grow  more  product  and  create both  jobs  and                                                               
revenue for the  state.  He said many  legislators "voted against                                                               
cutting government," and he urged  legislators to "be responsible                                                               
and create an industry that'll create revenue for the state."                                                                   
                                                                                                                                
MR. MARTIN  explained that he has  to be out of  state during the                                                               
winter for medical  reasons but is "every bit of  an Alaskan" and                                                               
will  defend  [the  state's]   constitution  and  individual  and                                                               
property rights.  He urged the committee, "Please look at this."                                                                
                                                                                                                                
CO-CHAIR TARR said the reason the  committee is hearing HB 172 is                                                               
that it would provide an opportunity  for Alaska.  She noted that                                                               
following  the bill  hearing, the  committee would  segue into  a                                                               
presentation  related  to  access  to  agricultural  land.    She                                                               
offered  her  understanding   that  Representative  Talerico  had                                                               
introduced a  bill on the  topic of getting more  Alaskans access                                                               
to some of the state-owned land.                                                                                                
                                                                                                                                
3:41:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND  asked  Mr.  Martin to  expound  on  his                                                               
comment  about licenses  being limited  to  residents of  Alaska.                                                               
She said  she knows that  licenses for marijuana  businesses have                                                               
been limited  to Alaskans, because  "the department is  trying to                                                               
keep outside influence out of our local marijuana business."                                                                    
                                                                                                                                
3:41:56 PM                                                                                                                    
                                                                                                                                
MR.  MARTIN  responded  that when  regulations  were  passed  for                                                               
marijuana growth or  sale, there was a  requirement that [growers                                                               
and sellers]  must be PFD  applicants.  He  said he and  his wife                                                               
left  Alaska  in 2004,  but  he  reemphasized his  commitment  to                                                               
Alaska.  He indicated that he  had served in the military and was                                                               
involved in  rebuilding training facilities  in Hawaii.   He said                                                               
he has  no desire to live  year-round in Alaska any  more, but he                                                               
claimed that does not make him any less Alaskan.                                                                                
                                                                                                                                
MR.   MARTIN   said  under   current   law   pertaining  to   PFD                                                               
qualifications, [Alaskan residents] are allowed  to be out of the                                                               
state for six months.   He indicated that representatives working                                                               
for  the Alaska  Permanent  Fund Division  informed  him that  he                                                               
could "go  back to 2006  and maybe apply for  that."  He  said he                                                               
doesn't necessarily wish to do that,  but he is being barred from                                                               
entering  into business  in  Alaska.   He  said  he is  "somewhat                                                               
upset"  about Representative  Mike Chenault  having worked  to do                                                               
away  with  the  Administrative Review  Committee,  because  "you                                                               
folks  should be  reviewing  those regulations  to  see how  they                                                               
violate people like  my wife and our individual liberty  to be in                                                               
business in our  own state."  He  said he and his  wife pay taxes                                                               
in both  Alaska and Hawaii, but  his heart is and  always will be                                                               
in Alaska.   He urged the committee not to  pass legislation that                                                               
would bar him and his wife  from entering in to commerce in their                                                               
own state.                                                                                                                      
                                                                                                                                
3:44:43 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR re-closed public testimony on HB 172.                                                                             
                                                                                                                                
[HB 172 was held over.]                                                                                                         
                                                                                                                                
^PRESENTATION(S) AGRICULTURE ACTIVITIES IN ALASKA                                                                               
        PRESENTATION(S) AGRICULTURE ACTIVITIES IN ALASKA                                                                    
                                                                                                                                
3:44:51 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR announced that the  next order of business would be                                                               
a presentation regarding agriculture activities in Alaska.                                                                      
                                                                                                                                
3:45:25 PM                                                                                                                    
                                                                                                                                
ARTHUR   KEYES,  Acting   Director,   Division  of   Agriculture,                                                               
Department of  Natural Resources,  gave a  presentation regarding                                                               
agricultural  activities  in  Alaska.   He  listed  some  of  the                                                               
positive  agriculture  activities  in  Alaska:    farmers  market                                                               
growth leading  the nation per capita  and up from 13  markets in                                                               
2005 to  42 markets  today; a thriving  peony industry  with "the                                                               
number   of  stems   exported   exceeding  expectations";   grain                                                               
production  expanding statewide;  rhodiola  and  hops growing  in                                                               
popularity and viability; and a  "positive outlook in agriculture                                                               
right now in Alaska."                                                                                                           
                                                                                                                                
MR. KEYES noted  that hops are an important  component in brewing                                                               
and  are  one  of  the  fastest  growing  segments  in  the  food                                                               
industry.   He  said  Alaska-grown hops  can  garner $60-$80  per                                                               
pound.   He said  hops is  a cousin plant  to marijuana  and both                                                               
have  "day-length issues."   The  special greenhouses  that allow                                                               
marijuana producers to  control day length could be  used to grow                                                               
a  dwarf hops  worth  a  considerable sum  of  money.   Regarding                                                               
livestock, he  noted that "production  is up."  He  reported that                                                               
Mount  McKinley Meat  & Sausage  had one  of its  most successful                                                               
years, at "$77,000  ahead," and one of the reasons  is that there                                                               
is a surge in livestock being used.                                                                                             
                                                                                                                                
3:48:48 PM                                                                                                                    
                                                                                                                                
MR.   KEYES  shared   some  of   his  "goals   and  visions   for                                                               
agriculture."   He said he would  like to see improved  access to                                                               
agricultural lands for  young farmers, who may  have ample energy                                                               
but a  paucity of  funds, and  to that end,  the division  has an                                                               
agricultural  land  sale  program.    He shared  that  he  is  an                                                               
entrepreneur  and farmer,  and he  emphasized  the importance  of                                                               
young people entering into farming.                                                                                             
                                                                                                                                
MR. KEYES  indicated that  historically agricultural  parcels are                                                               
at least  160 acres, and there  is a requirement that  the farmer                                                               
must clear  40 percent of  the farmable  soil.  He  said clearing                                                               
land  is arduous.    He said  he  is proposing  a  change in  the                                                               
requirement  so  that  smaller  agricultural  pieces  would  abut                                                               
larger  agricultural pieces  and be  made available  for sale  to                                                               
younger farmers  to develop without  going hundreds  of thousands                                                               
of dollars  in debt.  Then,  once the farmers have  developed the                                                               
land, they could  come back to the division for  more land, which                                                               
the  division would  have kept  open,  and the  farmers would  be                                                               
given "a preference  to expand their farm into that."   Mr. Keyes                                                               
estimated the  parcels would be  about 10-20  acres in size.   He                                                               
called this "a cultural shift" and  said that "it will take years                                                               
to see the fruits of this."                                                                                                     
                                                                                                                                
3:51:44 PM                                                                                                                    
                                                                                                                                
MR. KEYES  stated that  he would  like to  see the  division help                                                               
small  farmers enter  wholesale  markets,  including Safeway  and                                                               
Fred Meyer.  He said he  personally jumped through the hurdles to                                                               
enter  retail  stores   as  a  wholesale  producer,   and  it  is                                                               
"cumbersome" and "frustrating."   He offered his  belief that the                                                               
division has the ability to help  the farmer in this process.  He                                                               
said  that  farmers have  the  potential  to make  "some  instant                                                               
retail  money"  with farmers  markets,  and  "as their  operation                                                               
grows, that they would want access to that."                                                                                    
                                                                                                                                
3:52:37 PM                                                                                                                    
                                                                                                                                
MR. KEYES  described some  of the  important activities  in which                                                               
the division  is involved to assist  farming in Alaska.   He said                                                               
the Agricultural  Revolving Loan  Fund (ARLF)  is managed  by the                                                               
Board  of Agriculture  and  Conservation.   He  related that  the                                                               
aforementioned  Mount  McKinley  Meat &  Sausage  facility  falls                                                               
under the purview of ARLF, managed  by the division.  He said the                                                               
loan  fund is  managed by  farmers.   Farmers  sometimes have  to                                                               
borrow money for a  few years in a row to  get their initial crop                                                               
going, and  Mr. Keyes  said they  are essentially  spreading that                                                               
investment  on the  ground, with  the collateral  being the  crop                                                               
that  is being  grown.   He said  typical bankers  doing auto  or                                                               
mortgage  loans  may  think  that is  absurd;  therefore,  it  is                                                               
advantageous  to have  farmers  on the  board,  who are  uniquely                                                               
suited to review loan applications.   The current default rate of                                                               
ARLF is "below the traditional banking standard," he said.                                                                      
                                                                                                                                
MR.  KEYES stated  that PMC  provides certified,  clean, disease-                                                               
free seed  potatoes, grass  seed, and grain  seed.   He described                                                               
the facility  as "one of  the best kept  secrets in Alaska."   He                                                               
emphasized  that   the  center's  work  is   important  and  must                                                               
continue, and he predicted that PMC will play a critical role.                                                                  
                                                                                                                                
3:55:43 PM                                                                                                                    
                                                                                                                                
MR. KEYES  stated his belief that  as long as people  continue to                                                               
be  concerned  about  their health  and  their  families,  "local                                                               
agriculture  has a  bright future."    He said  agriculture is  a                                                               
strategic industry.   He offered his understanding  that during a                                                               
presentation he had  heard given by Bryce Wrigley  (ph), that man                                                               
had said that when Hurricane  Katrina occurred, it took two weeks                                                               
to get food  into [New Orleans, Louisiana].   Mr. Keyes exclaimed                                                               
that  "they're  connected  to  American" and  "have  one  of  the                                                               
largest  ports in  the nation."    He questioned,  "If they  went                                                               
through that  in New Orleans, what  would we go through  ... in a                                                               
time  of crisis?"   He  stated that  agriculture in  Alaska is  a                                                               
strategic, economic, health, and community issue.                                                                               
                                                                                                                                
MR. KEYES, in  conclusion, stated, "Nothing has  a greater impact                                                               
on the quality of a person's life than the food they eat."                                                                      
                                                                                                                                
3:57:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER  asked for information  regarding farmers                                                               
borrowing money.                                                                                                                
                                                                                                                                
MR. KEYS responded  that he has farmed successfully  for 10 years                                                               
without  borrowing money,  which he  described as  more work  but                                                               
with greater rewards.  He  indicated that the farmers that borrow                                                               
money range across  all economic levels, and he  knows some smart                                                               
and successful farmers whose plan  includes borrowing every year.                                                               
He stated  that not  everyone has  to borrow money,  but it  is a                                                               
resource that needs to be  available, and he called the borrowing                                                               
of money  a tool.  In  response to a follow-up  question, he said                                                               
he has heard that borrowing  money through a traditional bank can                                                               
be  difficult, and  currently there  are  three lending  agencies                                                               
within  Alaska:   the  United  States  Department of  Agriculture                                                               
(USDA), ARLF, and through private means.                                                                                        
                                                                                                                                
4:01:06 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR  remarked that if it  were easy to get  a loan, she                                                               
would be farming right now.                                                                                                     
                                                                                                                                
4:01:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WESTLAKE mentioned  the term  "uplift," as  it is                                                               
used in discussing  "mere oil, rather than crude."   He suggested                                                               
that if it  is the state's land that is  being sold [to farmers],                                                               
then perhaps  [the state] could  consider uplift, in  relation to                                                               
[farmers] "starting to buy the next piece of incremental."                                                                      
                                                                                                                                
4:01:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND expressed  appreciation  for Mr.  Keyes'                                                               
enthusiasm.  Regarding the revolving  loan fund, she asked if the                                                               
Alaska  Commercial  Agriculture  and  Fishing  Bank  is  "of  any                                                               
assistance at  all in this  area" or "duplicative" or  a "totally                                                               
separate institution."                                                                                                          
                                                                                                                                
MR. KEYS  answered that  although he  has heard  of the  bank, he                                                               
doesn't know anything  about it; however, he offered  to find out                                                               
more information.                                                                                                               
                                                                                                                                
REPRESENTATIVE  PARISH offered  thanks  "to the  director and  my                                                               
colleague from Sutton (ph)."                                                                                                    
                                                                                                                                
4:02:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR  asked Mr. Keyes  to share  the average age  of the                                                               
Alaskan  farmer,  in  order  to  "underscore  the  importance  of                                                               
getting people involved in agriculture."                                                                                        
                                                                                                                                
MR. KEYES offered his understanding that it is 57.                                                                              
                                                                                                                                
CO-CHAIR TARR  opined that  it should be  made known  to Alaskans                                                               
the opportunities available in agriculture.                                                                                     
                                                                                                                                
MR. KEYES  said feeding  people is  a billion-dollar  industry in                                                               
Alaska.  He continued:                                                                                                          
                                                                                                                                
     There  is nothing  but opportunity  to take  those food                                                                    
     dollars  away from  the California  farmers or  Mexican                                                                    
     [farmers] or  whatever.   You know,  no ...  offense to                                                                    
     them - they do  a great job of feeding us.   But as ...                                                                    
     a producer and a farmer ...  I've never felt like I was                                                                    
     competing with  my neighbor  or ...  my vendors  at the                                                                    
     farmers market  ...; I felt like  we were complementing                                                                    
     each  other  in going  after  something  that was  very                                                                    
     vulnerable for us to take away.                                                                                            
                                                                                                                                
^PRESENTATION(S): NENANA AGRICULTURE LAND                                                                                       
            PRESENTATION(S): NENANA AGRICULTURE LAND                                                                        
                                                                                                                                
4:04:27 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR  announced that the  final order of  business would                                                               
be the presentation about Nenana Agriculture Land.                                                                              
                                                                                                                                
4:05:36 PM                                                                                                                    
                                                                                                                                
ELIJAH  VERHAGEN,  Staff,  Representative Dave  Talerico,  Alaska                                                               
State  Legislature,  gave   a  PowerPoint  presentation,  "Nenana                                                               
Totchaket  Bridge  To  Resources," on  behalf  of  Representative                                                               
Talerico.    [A  hard  copy of  the  PowerPoint  presentation  is                                                               
included in  the committee packet.]   He  noted that the  City of                                                               
Nenana  is  located  approximately  "45 minutes  down  the  Parks                                                               
Highway" from Fairbanks, Alaska.                                                                                                
                                                                                                                                
MR. VERHAGEN pointed  out the farmland of Nenana, as  shown in an                                                               
aerial  photograph on  slide 2  of  the PowerPoint,  and he  said                                                               
Nenana  is  not  currently  described  as  a  farming  community,                                                               
although there  are many farms  there.  Mr. Verhagen  shared that                                                               
he had  bailed hay  in Nenana  as a  youth.   He said  Nenana has                                                               
wheat, potato,  and peony  farms, and the  farming there  has the                                                               
potential to expand.  As shown on  slide 3, he pointed to an area                                                               
across the  Nenana River  where there  is access  to agricultural                                                               
land.                                                                                                                           
                                                                                                                                
4:07:06 PM                                                                                                                    
                                                                                                                                
MR. VERHAGEN  turned to slide  4, and  he stated that  the Nenana                                                               
Totchaket  State  Agricultural  Project  comprises  approximately                                                               
133,000 acres starting on the Totchaket right-of-way road.                                                                      
                                                                                                                                
4:08:30 PM                                                                                                                    
                                                                                                                                
ARTHUR  KEYS, Director,  Division of  Agriculture, Department  of                                                               
Natural  Resources,  stated, "This  area  has  an advantage  over                                                               
other agriculture areas."   He directed attention to  slide 5 and                                                               
pointed to Fairbanks  and the project on a map,  and he estimated                                                               
"it's about a  45-minute drive," which he  opined is "financially                                                               
viable ...  for a  young farmer to  start a farm  and get  to the                                                               
market."  He noted  that slide 4 had listed "class  4 soils."  He                                                               
offered his understanding that the  area has 100,000 acres of the                                                               
type of  soil that  would be viable  for an  agricultural project                                                               
and, thus,  that the  division would  be "looking  to sell."   He                                                               
added that the conditions of the  soil can be determined once the                                                               
land is cleared.                                                                                                                
                                                                                                                                
4:10:39 PM                                                                                                                    
                                                                                                                                
MR. KEYS  directed attention  to slide  7 to  show an  example of                                                               
what an  agriculture project would  look like for a  young farmer                                                               
clearing land, farming,  and eventually being able  to expand the                                                               
farm.  He  talked about 10-20 acres being an  access road and the                                                               
two  10-acre "chunks  on  each corner"  [of  the chart]  reflects                                                               
ground that is not set  up for agricultural purposes, but instead                                                               
a  development area  holding some  type of  service area  needed,                                                               
such as  a machine shop  or gas station.   He indicated  that the                                                               
graph shows  how expansion  goes to 20-acre  parcels and  then to                                                               
40-acre  parcels.   He  said all  the parcels  could  be sold  to                                                               
people who intend  to farm them and there would  be some success,                                                               
though  not  100  percent.    He said,  "That's  what  you  would                                                               
encourage after  ... a few years  and just keep ...  that success                                                               
growing."                                                                                                                       
                                                                                                                                
4:12:18 PM                                                                                                                    
                                                                                                                                
MR.  VERHAGEN commented  that there  are many  people excited  to                                                               
access this  land.  He  informed the  committee that he  was born                                                               
and raised  in Nenana.   He related that  he knows a  farmer from                                                               
Idaho, who has  moved to Nenana, bought an existing  farm, and is                                                               
now  farming potatoes  for a  third year,  because "the  market's                                                               
better to sell potatoes here."                                                                                                  
                                                                                                                                
4:11:36 PM                                                                                                                    
                                                                                                                                
MR.  KEYS,   in  response  to  a   question  from  Representative                                                               
Rauscher,  stated his  intent is  for the  smaller parcels  to be                                                               
sold first  and for the  40-acre and  80-acre parcels to  be held                                                               
back.   He said  certainly there are  no restrictions  that would                                                               
keep a farmer from selling his/her  farm, but the next owner will                                                               
be under the same stipulations.   One person could buy up all the                                                               
land,  and he  said he  would assume  anyone who  did that  would                                                               
intend to farm the land,  because "it's not a resort investment."                                                               
He stated, "If  they could farm it all, ...  more power to them."                                                               
He said the  division has sold land as large  as 600 acres; there                                                               
are farmers  in Delta Junction  who own  thousands of acres.   In                                                               
response to a follow-up question,  he said he thinks the division                                                               
needs to offer  smaller parcels for young people [to  get a start                                                               
in farming].  He reiterated that  he did not borrow money for his                                                               
farm; however,  he stated that he  thinks it is much  wiser to go                                                               
into debt to farm 20 acres than to farm 200 acres.                                                                              
                                                                                                                                
4:16:30 PM                                                                                                                    
                                                                                                                                
MR. VERHAGEN  drew attention  to slide 8,  which list  other land                                                               
owners  besides  the  state.    He said,  "Once  this  bridge  is                                                               
complete ..., it'll open up  to over 600,000 state acres, 133,000                                                               
of which  are the  designated [agriculture] land."   He  said the                                                               
Toghothele Native  Corporation owns  40,000 acres;  Alaska Mental                                                               
Health Trust Land  is 11,000 acres, and the  University of Alaska                                                               
land  is   640  acres.    He   interjected  that  [Representative                                                               
Talerico's office]  has received  over eight letters  of support.                                                               
He continued  to slide 9, which  shows where the land  owners are                                                               
located on a map.   He said once the bridge  is built, there will                                                               
be access  to the agricultural  land, and  [land] can be  sold as                                                               
the road is extended on the right-of-way.                                                                                       
                                                                                                                                
4:19:17 PM                                                                                                                    
                                                                                                                                
MR.  VERHAGEN moved  on  to slides  10-14,  showing the  existing                                                               
[dirt] road,  aerial views depicting the  already existing Little                                                               
Nenana  Bridge, and  remaining on-site  materials.   Mr. Verhagen                                                               
explained that work was delayed because  ice gave way as a result                                                               
of  a warmer  than usual  winter;  therefore, there  is one  more                                                               
piling  to install.   The  individual shown  on slide  14 is  the                                                               
mayor  of  Nenana,  Jason  Mayrand,   who  has  "headed  up  this                                                               
project."                                                                                                                       
                                                                                                                                
MR. VERHAGEN  turned to  slides 15-16 and  said the  inception of                                                               
the  project was  in  the 1980s;  the  right-of-way was  obtained                                                               
through DNR  in 1984; 11 miles  of road and 3  small bridges were                                                               
built in  2008-2009; the  required National  Environmental Policy                                                               
Act of  1969 (NEPA) document  was completed and submitted  to the                                                               
United  States Coast  Guard (USCG)  for the  required permit  [in                                                               
March 2014]; there has been funding  of just over $6 million; and                                                               
a grant of $3 million made it  possible to extend the road from 4                                                               
to approximately 15 miles.                                                                                                      
                                                                                                                                
4:22:12 PM                                                                                                                    
                                                                                                                                
MR.  VERHAGEN directed  attention  to slide  17,  which offers  a                                                               
summary, including  that:   the project  has great  potential for                                                               
the entire state; the governor  of Alaska has been participating;                                                               
and  letters  of support  were  received,  including from  Doyon,                                                               
Limited ("Doyon"), Tanana Chiefs  Conference (TCC), Nenana Native                                                               
Council,  and  the Alaska  Mental  Health  Trust Authority.    He                                                               
stated that  completion of the  bridge would bring access  to the                                                               
land, which could be used for  many things, including as a source                                                               
of timber.  Referring to slide  17, Mr. Verhagen relayed that the                                                               
City  of Nenana  has  been waiting  a long  time  for the  bridge                                                               
permit;  the  governor and  the  commissioner  of DNR  have  both                                                               
spoken with the  USCG admiral, who has said  the remaining permit                                                               
will  be issued  in  June [2017];  and [the  City  of Nenana]  is                                                               
currently looking to secure the remaining necessary funds.                                                                      
                                                                                                                                
4:23:50 PM                                                                                                                    
                                                                                                                                
WYNN MENEFEE,  Deputy Director, Trust  Land Office  (TLO), Alaska                                                               
Mental Health Trust  Authority, stated that TLO  is supportive of                                                               
the  bridge,  because it  would  open  up  the trust's  land  for                                                               
extracting various resources, as well  as for selling land, which                                                               
in turn would benefit the beneficiaries of the trust.                                                                           
                                                                                                                                
4:24:25 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR  offered her understanding  that the  permit status                                                               
had been holding  the project back, but now that  status has been                                                               
resolved.   She  asked  if a  letter of  support  from the  House                                                               
Resources Standing Committee would be beneficial.                                                                               
                                                                                                                                
4:25:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TALERICO answered that  it would, although he said                                                               
he  is "feeling  pretty comfortable  that  we're kind  of on  the                                                               
right direction  for the  permit."  He  said all  the information                                                               
has been  provided to  Alaska's congressional  delegates, because                                                               
"there is money involved  to get the rest of the  bridge up."  He                                                               
said he  doesn't like the  term "shovel ready"  projects, because                                                               
it does  not convey the  worth of a  project.  The  project being                                                               
proposed benefits  many, including  the state, the  Alaska Mental                                                               
Health Trust  Authority, the  University of  Alaska, and  a local                                                               
village corporation.   He said there are about  100,000 people in                                                               
the North Star Borough; it is  hub; and [the project could result                                                               
in]  fresh food  versus  shipped  food.   He  indicated that  the                                                               
congressional  delegation involvement  is likely  necessary.   He                                                               
expressed  appreciation for  the previously  mentioned groups  in                                                               
support  of the  project,  as  well as  for  local  farmers.   He                                                               
emphasized that although  the area is not yet  known for farming,                                                               
there are Yupik  farmers in Nenana who offer  produce that people                                                               
can come pick themselves.  There  is also a successful tree farm.                                                               
He said  he is excited about  "the 100,000 potential acres."   He                                                               
talked about  the idea of  creating an opportunity for  people to                                                               
attach their  PFDs to the purchase  of land in order  to create a                                                               
business.                                                                                                                       
                                                                                                                                
4:29:04 PM                                                                                                                    
                                                                                                                                
MR. VERHAGEN added that Nenana has  for some time been known as a                                                               
hub  for transportation:   the  railroad goes  through the  area;                                                               
there are three  barge lines there that ship to  rural areas; and                                                               
the Parks Highway reaches Nenana.                                                                                               
                                                                                                                                
4:29:29 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR expressed interest in  having the committee write a                                                               
letter  in  support   of  the  project  and  submit   it  to  the                                                               
congressional  delegation, as  well  as to  any other  interested                                                               
parties.                                                                                                                        
                                                                                                                                
4:30:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PARISH  asked if the  intention is to  finance the                                                               
bridge with federal and private monies.                                                                                         
                                                                                                                                
REPRESENTATIVE TALERICO answered, "We  are really hoping that ...                                                               
somehow or  another we will  get that  support in an  effort from                                                               
them to help us step forward."   He remarked on the resiliency of                                                               
the  community of  Nenana, which  has withstood  floods and  "big                                                               
changes."   He  shared that  the  City of  Nenana is  one of  the                                                               
oldest in state,  and he characterized its residents  as "a great                                                               
group of  people."   He surmised that  there are  probably enough                                                               
young  people  in   Nenana  that  could  "turn   into  a  farming                                                               
workforce" and "make this go."   He said there are local sawmills                                                               
that  can use  the  white spruce  timber that  would  have to  be                                                               
cleared before the land could be farmed.                                                                                        
                                                                                                                                
REPRESENTATIVE   PARISH    asked   for    information   regarding                                                               
exploratory wells in the area.                                                                                                  
                                                                                                                                
REPRESENTATIVE TALERICO deferred to Mr. Verhagen.                                                                               
                                                                                                                                
4:32:15 PM                                                                                                                    
                                                                                                                                
MR. VERHAGEN stated that Doyon has  been drilling for oil and gas                                                               
in  the area  for years,  mostly on  its land,  but also  on some                                                               
leased state  lands.   He said  Doyon has built  11 miles  of the                                                               
road  with its  own  money, as  well as  having  built the  three                                                               
smaller bridges to  access the oil and gas.   He said the company                                                               
is "very excited for this to  move forward."  He said the company                                                               
has three  wells and  has found "caves,"  which he  explained are                                                               
empty wells.   He  stated, "They're ...  investing a  lot because                                                               
they ... believe  they're going to ... find  what they're looking                                                               
for."                                                                                                                           
                                                                                                                                
4:33:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TALERICO added  that  one  critical component  to                                                               
agriculture is having  a source of water, and there  is plenty of                                                               
water in the area.                                                                                                              
                                                                                                                                
4:33:41 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR  invited Representative Talerico to  draft a letter                                                               
for the House Resources Standing Committee's consideration.                                                                     
                                                                                                                                
4:34:12 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 4:34 p.m.