HB 296: "An Act relating to the powers of the board of agriculture and conservation; relating to loans and limitations under the Alaska Agricultural Loan Act; relating to federal crop insurance contributions; relating to municipal and state procurement preferences for agricultural products harvested in the state and fisheries products harvested or processed in the state; and providing for an effective date."
00 HOUSE BILL NO. 296 01 "An Act relating to the powers of the board of agriculture and conservation; relating to 02 loans and limitations under the Alaska Agricultural Loan Act; relating to federal crop 03 insurance contributions; relating to municipal and state procurement preferences for 04 agricultural products harvested in the state and fisheries products harvested or 05 processed in the state; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 03.09.030 is amended to read: 08 Sec. 03.09.030. Quorum. Four [FIVE] members of the Board of Agriculture 09 and Conservation constitute a quorum for the transaction of business or the exercise of 10 a power or function at a meeting of the board. 11 * Sec. 2. AS 03.10.020(a) is amended to read: 12 (a) The Board of Agriculture and Conservation (AS 03.09.010) may 13 (1) make a loan to
01 (A) an individual resident farmer, homesteader, or a partnership 02 or corporation composed of farmers and homesteaders for 03 (i) clearing land for agricultural purposes; 04 (ii) development of farms; 05 (iii) storage and processing of farm produce; or 06 (iv) the purchase of livestock or machinery; 07 (B) an individual state resident, or a partnership or corporation 08 for 09 (i) storage and processing plants for agricultural 10 products; 11 (ii) the commercial production or processing of 12 horticultural products in the state; 13 (iii) the commercial production or processing of animal 14 feed in the state; [OR] 15 (iv) the raising or care of animals in the state for the 16 purpose of marketing their fur; or 17 (v) shipping costs to and within the state; 18 (2) designate agents and delegate its powers to them as necessary; 19 (3) adopt regulations necessary to carry out its functions, including 20 regulations to establish reasonable fees for services provided and charges for 21 collecting the fees; 22 (4) establish amortization plans for repayment of loans, which may 23 include delayed payments of principal and interest for not to exceed five years; 24 (5) enter into agreements with private lending institutions, other state 25 agencies, or agencies of the federal government to carry out the purposes of this 26 chapter; 27 (6) collect the fees and collection charges established under this 28 subsection; 29 (7) refinance a debt obligation incurred by a borrower under this 30 section or through another lender for a purpose authorized by (1) of this 31 subsection if the borrower otherwise qualifies for a loan under AS 03.10.010 -
01 03.10.060. 02 * Sec. 3. AS 03.10.030(a) is amended to read: 03 (a) A [THE] farm development, chattel, or irrigation loan made under this 04 chapter 05 (1) may not exceed a term of 30 years, except that a chattel loan may 06 not exceed a term of seven years; 07 (2) may not, when added to the outstanding balance of other loans 08 made under this chapter, exceed the maximum loan amount permitted for any 09 borrower established by the Board of Agriculture and Conservation in regulation 10 [A TOTAL OUTSTANDING BALANCE OF $1,000,000]; 11 (3) shall be secured by a first priority real estate or chattel mortgage 12 [OF ANY PRIORITY, EXCEPT THAT THE PORTION OF A LOAN THAT 13 EXCEEDS $500,000, WHEN ADDED TO PRIOR INDEBTEDNESS THAT IS 14 SECURED BY THE SAME PROPERTY, MUST BE SECURED BY A FIRST 15 MORTGAGE]; 16 (4) shall bear interest at a fixed rate comparable to that charged by 17 other agricultural lending institutions in the state for loans similar to those referred to 18 in this subsection. 19 * Sec. 4. AS 03.10.030(c) is amended to read: 20 (c) A short-term loan, to be amortized within one year, not to exceed an 21 amount set by the Board of Agriculture and Conservation in regulation 22 [$350,000] to any one borrower, may be made for operating purposes, except that a 23 loan made under this subsection may not exceed $500,000 [$200,000] unless the loan 24 is made to a borrower in a farm disaster area declared under AS 03.10.058. The loan 25 shall bear interest at a fixed rate comparable to that charged by other agricultural 26 lending institutions in the state for loans similar to those referred to in this subsection. 27 An applicant for a short-term loan may be required to purchase insurance through the 28 Federal Crop Insurance Act (7 U.S.C. 1501 - 1520) as a condition of the loan. The 29 term of a loan made under this subsection may be extended for up to three years by the 30 Board of Agriculture and Conservation, in the discretion of the board, upon 31 application by the borrower.
01 * Sec. 5. AS 03.10.030(f) is amended to read: 02 (f) A farm product processing loan may not exceed $500,000 [$250,000]. A 03 mortgage that secures a farm product processing loan may be of any priority if the 04 total indebtedness on the real estate, including the secured farm product processing 05 loan, does not exceed $500,000 [$250,000]. A farm product processing loan that, if 06 made, would raise the existing indebtedness on the real estate securing the loan above 07 $500,000 [$250,000], or a farm product processing loan on real estate that has a prior 08 indebtedness of $500,000 [$250,000] or more, may be made only if all prior 09 mortgagees agree to subordinate their mortgages to that of the state for the amount of 10 the farm product processing loan that exceeds the $500,000 [$250,000] indebtedness 11 limit on the real estate. A farm product processing loan may not exceed a term of 30 12 years or bear interest at a rate that is less than a fixed rate comparable to that charged 13 by other agricultural lending institutions in the state for similar loans, and shall be 14 secured by a real estate or chattel mortgage or both. 15 * Sec. 6. AS 03.10.030(g) is amended to read: 16 (g) A loan for clearing land may not 17 (1) exceed an amount set by the Board of Agriculture and 18 Conservation in regulation [$250,000]; 19 (2) bear interest at a rate that is less than a fixed rate comparable to 20 that charged by other agricultural lending institutions in the state for similar loans; 21 (3) have a term in excess of 20 years; or 22 (4) be made for clearing land other than land that has been classified 23 by the United States Department of Agriculture, Natural Resources Conservation 24 Service, under the Land Capability Classification System as having agricultural 25 potential for the production of annual crops or hay, or for pasture. 26 * Sec. 7. AS 03.13.030 is repealed and reenacted to read: 27 Sec. 03.13.030. State contribution; limitation. Except as provided in 28 AS 03.13.040(b), the state shall pay a percentage of the covered producer's revenue 29 protection policy premium, as calculated by the corporation, equivalent to the amount 30 required to obtain 31 (1) 85 percent revenue protection for the first two policy years;
01 (2) 80 percent revenue protection for the third policy year; 02 (3) 75 percent revenue protection for the fourth policy year; and 03 (4) if a producer purchases a minimum of 55 percent revenue 04 protection coverage, 70 percent revenue protection for the fifth policy year and any 05 future year. 06 * Sec. 8. AS 03.13.040(b) is amended to read: 07 (b) If for any year the amount appropriated is insufficient to fully fund the 08 contribution required by AS 03.13.030 [AS 03.13.020], the department shall allocate 09 funds on a first come basis. 10 * Sec. 9. AS 03.13 is amended by adding a new section to read: 11 Sec. 03.13.045. Regulations. The department may adopt regulations under 12 AS 44.62 (Administrative Procedure Act) to carry out this chapter, including 13 regulations to establish reasonable fees for services provided by the department. 14 * Sec. 10. AS 03.13.050 is amended by adding a new paragraph to read: 15 (2) "revenue protection" has the meaning given in 7 C.F.R. 457.8. 16 * Sec. 11. AS 29.71.040(a) is amended to read: 17 (a) If a municipality that receives state money seeks to purchase an 18 agricultural product and an agricultural product harvested in the state is available that 19 is of like quality compared with a similar agricultural product harvested outside the 20 state, the municipality 21 [(1)] shall purchase the product harvested in the state [IF THE 22 PRODUCT IS PRICED NOT MORE THAN SEVEN PERCENT ABOVE THE 23 SIMILAR PRODUCT HARVESTED OUTSIDE THE STATE; 24 (2) MAY PURCHASE THE PRODUCT HARVESTED IN THE 25 STATE ONLY IF THE PRODUCT IS PRICED NOT MORE THAN 15 PERCENT 26 ABOVE THE SIMILAR PRODUCT HARVESTED OUTSIDE THE STATE]. 27 * Sec. 12. AS 29.71.040(a), as amended by sec. 11 of this Act, is amended to read: 28 (a) If a municipality that receives state money seeks to purchase an 29 agricultural product and an agricultural product harvested in the state is available that 30 is of like quality compared with a similar agricultural product harvested outside the 31 state, the municipality
01 (1) shall purchase the product harvested in the state if the product is 02 priced not more than seven percent above the similar product harvested outside 03 the state; 04 (2) may purchase the product harvested in the state only if the 05 product is priced not more than 15 percent above the similar product harvested 06 outside the state. 07 * Sec. 13. AS 29.71.040(b) is amended to read: 08 (b) If a municipality that receives state money seeks to purchase a fisheries 09 product and a fisheries product harvested or processed within the jurisdiction of the 10 state is available that is of like quality compared with a similar fisheries product 11 harvested or processed outside the jurisdiction of the state, the municipality 12 [(1)] shall purchase the product harvested or processed within the 13 jurisdiction of the state [IF THE PRODUCT IS PRICED NOT MORE THAN SEVEN 14 PERCENT ABOVE THE SIMILAR PRODUCT HARVESTED OR PROCESSED 15 OUTSIDE THE JURISDICTION OF THE STATE; 16 (2) MAY PURCHASE THE PRODUCT HARVESTED OR 17 PROCESSED IN THE JURISDICTION OF THE STATE ONLY IF THE PRODUCT 18 IS PRICED NOT MORE THAN 15 PERCENT ABOVE THE PRODUCT 19 HARVESTED OR PROCESSED OUTSIDE THE JURISDICTION OF THE 20 STATE]. 21 * Sec. 14. AS 29.71.040(b), as amended by sec. 13 of this Act, is amended to read: 22 (b) If a municipality that receives state money seeks to purchase a fisheries 23 product and a fisheries product harvested or processed within the jurisdiction of the 24 state is available that is of like quality compared with a similar fisheries product 25 harvested or processed outside the jurisdiction of the state, the municipality 26 (1) shall purchase the product harvested or processed within the 27 jurisdiction of the state if the product is priced not more than seven percent above 28 the similar product harvested or processed outside the jurisdiction of the state; 29 (2) may purchase the product harvested or processed in the 30 jurisdiction of the state only if the product is priced not more than 15 percent 31 above the product harvested or processed outside the jurisdiction of the state.
01 * Sec. 15. AS 29.71.040(c) is amended to read: 02 (c) A solicitation by a municipality for the purchase of agricultural or fisheries 03 products must include written notice of the purchase requirements and limitations 04 under (a) and (b) of this section and specify that agricultural products harvested in the 05 state and fisheries products harvested or processed within the jurisdiction of the state 06 will be used where possible, subject to the limitations under (a) and (b) of this section. 07 A seller of agricultural or fisheries products shall submit an accurate copy of the 08 seller's current wholesale pricing list in the seller's response to a solicitation. 09 Submission of inaccurate pricing information may be cause for debarment under 10 AS 36.30.640 or civil penalties under AS 36.30.930. If a municipality that receives 11 state money purchases agricultural products harvested outside the state or fisheries 12 products harvested or processed outside the jurisdiction of the state, the municipal 13 officer responsible for the purchase shall certify in writing the reasons that agricultural 14 products harvested in the state or fisheries products harvested or processed within the 15 jurisdiction of the state were not purchased. 16 * Sec. 16. AS 29.71.040(c), as amended by sec. 15 of this Act, is amended to read: 17 (c) A solicitation by a municipality for the purchase of agricultural or fisheries 18 products must include written notice of the purchase requirements and limitations 19 under (a) and (b) of this section and specify that agricultural products harvested in the 20 state and fisheries products harvested or processed within the jurisdiction of the state 21 will be used where possible, subject to the limitations under (a) and (b) of this section. 22 [A SELLER OF AGRICULTURAL OR FISHERIES PRODUCTS SHALL SUBMIT 23 AN ACCURATE COPY OF THE SELLER'S CURRENT WHOLESALE PRICING 24 LIST IN THE SELLER'S RESPONSE TO A SOLICITATION. SUBMISSION OF 25 INACCURATE PRICING INFORMATION MAY BE CAUSE FOR DEBARMENT 26 UNDER AS 36.30.640 OR CIVIL PENALTIES UNDER AS 36.30.930.] If a 27 municipality that receives state money purchases agricultural products harvested 28 outside the state or fisheries products harvested or processed outside the jurisdiction of 29 the state, the municipal officer responsible for the purchase shall certify in writing the 30 reasons that agricultural products harvested in the state or fisheries products harvested 31 or processed within the jurisdiction of the state were not purchased.
01 * Sec. 17. AS 36.15.050(a) is amended to read: 02 (a) When agricultural products are purchased by the state or by a school 03 district that receives state money, and an agricultural product harvested in the 04 state is available that is of like quality compared with a similar agricultural 05 product harvested outside the state, the state or school district shall purchase the 06 product [A PREFERENCE NOT LESS THAN SEVEN PERCENT NOR MORE 07 THAN 15 PERCENT SHALL BE APPLIED TO THE PRICE OF PRODUCTS] 08 harvested in the state. 09 * Sec. 18. AS 36.15.050(a), as amended by sec. 17 of this Act, is amended to read: 10 (a) When agricultural products are purchased by the state or by a school 11 district that receives state money, a preference not less than seven percent nor more 12 than 15 percent shall be applied to the price of products [AND AN 13 AGRICULTURAL PRODUCT HARVESTED IN THE STATE IS AVAILABLE 14 THAT IS OF LIKE QUALITY COMPARED WITH A SIMILAR AGRICULTURAL 15 PRODUCT HARVESTED OUTSIDE THE STATE, THE STATE OR SCHOOL 16 DISTRICT SHALL PURCHASE THE PRODUCT] harvested in the state. 17 * Sec. 19. AS 36.15.050(b) is amended to read: 18 (b) When fisheries products are purchased by the state or by a school district 19 that receives state money, and a fisheries product harvested or processed within 20 the jurisdiction of the state is available that is of like quality compared with a 21 similar fisheries product harvested or processed outside the jurisdiction of the 22 state, the state or school district shall purchase the product [A PREFERENCE 23 NOT LESS THAN SEVEN PERCENT NOR MORE THAN 15 PERCENT SHALL 24 BE APPLIED TO THE PRICE OF PRODUCTS] harvested or processed within the 25 jurisdiction of the state. 26 * Sec. 20. AS 36.15.050(b), as amended by sec. 19 of this Act, is amended to read: 27 (b) When fisheries products are purchased by the state or by a school district 28 that receives state money, a preference not less than seven percent nor more than 29 15 percent shall be applied to the price of products [AND A FISHERIES 30 PRODUCT HARVESTED OR PROCESSED WITHIN THE JURISDICTION OF 31 THE STATE IS AVAILABLE THAT IS OF LIKE QUALITY COMPARED WITH
01 A SIMILAR FISHERIES PRODUCT HARVESTED OR PROCESSED OUTSIDE 02 THE JURISDICTION OF THE STATE, THE STATE OR SCHOOL DISTRICT 03 SHALL PURCHASE THE PRODUCT] harvested or processed within the jurisdiction 04 of the state. 05 * Sec. 21. AS 36.15.050(c) is amended to read: 06 (c) A solicitation for the purchase of agricultural or fisheries products must 07 include written notice of the preferences under (a) and (b) of this section and specify 08 that agricultural products harvested in the state and fisheries products harvested or 09 processed within the jurisdiction of the state will be used where possible. A seller of 10 agricultural or fisheries products shall submit an accurate copy of the seller's 11 current wholesale pricing list in the seller's response to a solicitation. Submission 12 of inaccurate pricing information may be cause for debarment under 13 AS 36.30.640 or civil penalties under AS 36.30.930. If the state or a school district 14 that receives state money purchases agricultural products harvested outside the state or 15 fisheries products harvested or processed outside the jurisdiction of the state, the 16 officer responsible for the purchase shall certify in writing the reasons that agricultural 17 products harvested in the state or fisheries products harvested or processed within the 18 jurisdiction of the state were not purchased. 19 * Sec. 22. AS 36.15.050(c), as amended by sec. 21 of this Act, is amended to read: 20 (c) A solicitation for the purchase of agricultural or fisheries products must 21 include written notice of the preferences under (a) and (b) of this section and specify 22 that agricultural products harvested in the state and fisheries products harvested or 23 processed within the jurisdiction of the state will be used where possible. [A SELLER 24 OF AGRICULTURAL OR FISHERIES PRODUCTS SHALL SUBMIT AN 25 ACCURATE COPY OF THE SELLER'S CURRENT WHOLESALE PRICING LIST 26 IN THE SELLER'S RESPONSE TO A SOLICITATION. SUBMISSION OF 27 INACCURATE PRICING INFORMATION MAY BE CAUSE FOR DEBARMENT 28 UNDER AS 36.30.640 OR CIVIL PENALTIES UNDER AS 36.30.930.] If the state 29 or a school district that receives state money purchases agricultural products harvested 30 outside the state or fisheries products harvested or processed outside the jurisdiction of 31 the state, the officer responsible for the purchase shall certify in writing the reasons
01 that agricultural products harvested in the state or fisheries products harvested or 02 processed within the jurisdiction of the state were not purchased. 03 * Sec. 23. AS 03.13.020 is repealed. 04 * Sec. 24. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 REPORT TO THE LEGISLATURE. Not later than the 30th legislative day of the 07 First Regular Session of the Thirty-Fourth Alaska State Legislature, the Department of 08 Administration, with the assistance of the Department of Commerce, Community, and 09 Economic Development, shall prepare and present to the legislative committees having 10 jurisdiction over procurement an annual report evaluating the procurement preferences 11 established under AS 29.71.040(a) and (b), as amended by secs. 11 and 13 of this Act, and 12 AS 36.15.050(a) and (b), as amended by secs. 17 and 19 of this Act. The report must include 13 (1) annual data and year-over-year comparisons of 14 (A) the total value of Alaska products purchased; 15 (B) the type of products purchased, including raw or value-added 16 products and the amount purchased by volume or units; 17 (C) the number of Alaska businesses participating; and 18 (D) the number of Alaska businesses with sales to institutional buyers, 19 including state agencies, school districts, or local governments; and 20 (2) a recommendation from the Department of Administration, with input 21 from the Department of Commerce, Community, and Economic Development, addressing 22 whether to extend the changes made by secs. 11, 13, 15, 17, 19, and 21 of this Act. 23 * Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 TRANSITION: PENDING SOLICITATIONS FOR PROCUREMENTS AND 26 CONTRACTS. (a) AS 29.71.040(a) - (c), as amended by secs. 11, 13, and 15 of this Act, and 27 AS 36.15.050(a) - (c), as amended by secs. 17, 19, and 21 of this Act, do not apply to 28 (1) solicitations for procurement and the resulting contracts if the solicitations 29 are pending on the effective date of those sections and if the invitation to bid or other 30 solicitation was issued before the effective date of those sections; and 31 (2) procurement contracts entered into before the effective date of those
01 sections, including extensions or amendments of those contracts. 02 (b) Notwithstanding (a) of this section, AS 29.71.040(a) - (c), as amended by secs. 11, 03 13, and 15 of this Act, and AS 36.15.050(a) - (c), as amended by secs. 17, 19, and 21 of this 04 Act, may apply to procurements or contracts described in (a)(1) of this section if all parties to 05 the procurement or contract agree in writing that the provisions apply to the solicitation or 06 contract. 07 * Sec. 26. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 TRANSITION: REGULATIONS. The Board of Agriculture and Conservation and the 10 Department of Natural Resources may proceed to adopt regulations necessary to implement 11 the changes made by secs. 2 - 10 and 23 of this Act. The regulations take effect under 12 AS 44.62 (Administrative Procedure Act) but not before the effective date of the law 13 implemented by the regulations. 14 * Sec. 27. Sections 1 and 26 of this Act take effect immediately under AS 01.10.070(c). 15 * Sec. 28. Sections 11, 13, 15, 17, 19, and 21 of this Act take effect July 1, 2024. 16 * Sec. 29. Sections 2 - 10 and 23 of this Act take effect July 1, 2025. 17 * Sec. 30. Section 12, 14, 16, 18, 20, and 22 of this Act take effect June 30, 2029.