00 HOUSE BILL NO. 92 01 "An Act relating to domestic animals, to food, and to the Alaska Food, Drug and 02 Cosmetic Act; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 03.05.020(a) is amended to read: 05  (a) The commissioner shall 06  (1) require routine inspection of food animals[, FISH, POULTRY, AND 07 DERIVATIVE FOOD PRODUCTS,] to protect the public against fraud and [,] 08 disease[,AND SPOILAGE, AND IN THIS CONNECTION ADOPT UNIFORM 09 REGULATIONS ESTABLISHING STANDARDS OF IDENTITY AND 10 COMPOSITION OF THESE FOOD PRODUCTS AND MINIMUM STANDARDS OF 11 SANITATION AND HANDLING METHODS AS TO ALL PHASES OF 12 SLAUGHTERING, PROCESSING, STORING, TRANSPORTING, DISPLAYING, 13 AND SELLING OF THESE FOOD PRODUCTS]; 14  (2) [ISSUES ORDERS OR CAUSE THE ORDERS TO BE ISSUED BY 01 AN AUTHORIZED VETERINARIAN PROHIBITING TRANSPORTATION AND 02 SALE OF FOOD PRODUCTS INTENDED FOR HUMAN CONSUMPTION THAT 03 DO NOT MEET THE MINIMUM REQUIREMENTS ESTABLISHED UNDER (1) 04 OF THIS SUBSECTION, AND LIMITING THEIR USE AND DISPOSAL IN 05 CONFORMITY WITH PROTECTION OF THE PUBLIC; 06  (3)] adopt a schedule of fees or charges, and credit provisions, for 07 services rendered by state veterinarians to farmers and others at their request in caring 08 for livestock and poultry, and all the fees shall be transmitted to the commissioner for 09 deposit in the state treasury; 10   (3) [(4)] designate points of entry for admission of livestock or poultry 11 into the state, and arrange inspection at those points with or without collaboration and 12 assistance of the federal government, and bar entry of stock or poultry not shipped 13 under a valid permit or not free from contagious or infectious disease[; 14  (5) ADOPT, REPEAL, AND AMEND REGULATIONS CONSISTENT 15 WITH EXISTING LAW FOR 16  (A) THE LABELING AND GRADING OF MILK AND MILK 17 PRODUCTS AND STANDARDS OF CLEANLINESS AND SANITATION, 18 TO AT LEAST THE MINIMUM OF CURRENT RECOMMENDATIONS OF 19 THE UNITED STATES PUBLIC HEALTH SERVICE, FOR THE 20 OPERATION OF DAIRIES SELLING, OR OFFERING FOR SALE, MILK 21 OR MILK PRODUCTS; 22   (B) THE PRODUCTION AND SALE OF ICE CREAM AND 23 ALLIED FROZEN DESERTS; 24  (C) THE PRODUCTION AND SALE OF IMITATION MILK 25 AND IMITATION MILK PRODUCTS; 26  (6) ESTABLISH A FIELD KILL INSPECTION PROGRAM FOR 27 REINDEER THAT IS AVAILABLE AT STATE EXPENSE AND PROVIDES FOR 28 VOLUNTARY PARTICIPATION ON THE PART OF REINDEER HERDERS AND 29 PROCESSORS WHO WISH TO HAVE THE INSPECTED REINDEER USED IN 30 FEDERALLY INSPECTED MEAT PRODUCTS]. 31 * Sec. 2. AS 03.05.040(a) is amended to read: 01  (a) On any business day during the usual hours of business the commissioner 02 or an authorized inspector may, for the purpose of inspecting agricultural[, 03 FISHERIES, OR AQUATIC FARM] products [OR AQUATIC FARM SITES] subject 04 to regulation, enter a storehouse, warehouse, cold storage plant, packing house, 05 slaughterhouse, retail store, or other building or place where those products are kept, 06 stored, processed, or sold. 07 * Sec. 3. AS 03.05.050(a) is amended to read: 08  (a) An agricultural [OR FISHERIES] product found by the commissioner, or 09 an authorized inspector, to violate a regulation adopted under this chapter is declared 10 to be a public nuisance injurious to the public interest and shall not be moved by the 11 person in whose possession it may be except upon the specific direction of the 12 commissioner or inspector. 13 * Sec. 4. AS 03.58.070(1) is amended to read: 14  (1) "department" means the [DEPARTMENT OF ENVIRONMENTAL 15 CONSERVATION WHEN THE FOOD IS MEAT, FISH, POULTRY, OR 16 PROCESSED, AND THE] Department of Natural Resources [WHEN THE FOOD IS 17 NOT MEAT, FISH, POULTRY, OR PROCESSED]; 18 * Sec. 5. AS 03.58.070(2) is repealed and reenacted to read: 19  (2) "food represented as organic food" means food, when the food is 20 not meat, fish, poultry, or processed, that is marketed using the term "organic" or a 21 derivative of that term in the labeling or advertising; 22 * Sec. 6. AS 16.40.100(b) is amended to read: 23  (b) A permit issued under this section authorizes the permittee, subject to the 24 conditions of [AS 03.05 AND] AS 16.40.100 - 16.40.199 and AS 17.20, to acquire, 25 purchase, offer to purchase, transfer, possess, sell, and offer to sell stock and aquatic 26 farm products that are used or reared at the hatchery or aquatic farm. A person who 27 holds a permit under this section may sell or offer to sell shellfish stock to the 28 department or to an aquatic farm or related hatchery outside of the state. 29 * Sec. 7. AS 16.51.100(6) is amended to read: 30  (6) develop marketing programs based on the "inspection" and 31 "premium quality" seals designed under AS 17.20.066 [AS 03.05.026] and use the 01 seals in advertising and promotion efforts of the institute; 02 * Sec. 8. AS 17 is amended by adding a new chapter to read: 03 Chapter 06. Sale of Organic Foods. 04  Sec. 17.06.010. Prohibition. (a) A person may not sell or offer for sale food 05 represented as organic food if the person knows or has reason to know that the food 06 has been grown, raised, or produced with the use of 07  (1) a fertilizer, except for manure and other natural fertilizers; 08  (2) a manufactured pesticide, hormone, antibiotic, or growth stimulant, 09 except for Bacillus thuringensis and other natural pesticides; 10  (3) a substance listed by the department under AS 17.06.050 that is 11 similar to a substance that is restricted with regard to organic food under (1) or (2) of 12 this subsection. 13  (b) In this section, "with the use of" means 14  (1) applied to the food before a retail sale; 15  (2) fed to the animal producing the food; 16  (3) unless the substance applied is a pesticide, applied to the soil or 17 other growing medium within one year before seed planting or transplanting, or, if the 18 crops are perennial, before the appearance of the flower bud; or 19  (4) in the case of pesticides, applied to the soil or other growing 20 medium within two years before seed planting or transplanting, or, if the crops are 21 perennial, before the appearance of the flower bud. 22  Sec. 17.06.020. Disclosure. (a) Except as provided in (b) of this section, a 23 person may not sell food represented as organic food unless the name and address of 24 the producer of the food are displayed with the food. If the food is not displayed at the 25 purchase site, a written statement with the name and address of the producer must be 26 given to the purchaser unless the name and address are identified on a package 27 containing the purchased food. This subsection does not apply to a sale for 28 consumption on the premises. 29  (b) Advertising for the mail order sale of food represented as organic food 30 must include the name and address of the producer of the food. 31  Sec. 17.06.030. Sworn statement of compliance. (a) A producer may not 01 sell to a vendor food represented as organic food unless before the sale the producer 02 provides the vendor with a sworn statement that the producer has grown, raised, or 03 otherwise produced the food in compliance with AS 17.06.010. If a producer sells the 04 food to the same vendor more than one time during a calendar year, one statement for 05 the calendar year is sufficient to comply with this section. 06  (b) In this section, "vendor" means a person who sells food represented as 07 organic food to another person for resale or to a consumer. 08  Sec. 17.06.050. Regulations. The department may adopt regulations under 09 AS 44.62 (Administrative Procedure Act) to implement and interpret this chapter, 10 including a regulation that lists and periodically updates substances under 11 AS 17.06.010(a). 12  Sec. 17.06.060. Enforcement. (a) If the department determines that a person 13 is violating a provision of this chapter, or a regulation adopted under this chapter, the 14 department shall order the person to stop the violation and to refrain from future 15 violations. 16  (b) If a person violates this chapter, a regulation adopted under this chapter, 17 or an order issued under (a) of this section, the person is 18  (1) liable to the state for a civil fine that does not exceed the total of 19 $1,000 plus the state's estimated costs of investigating and taking appropriate 20 administrative and enforcement actions for the violation; and 21  (2) liable to the state for an additional civil penalty of three times the 22 value of the product knowingly sold in violation of this chapter. 23  (c) The provisions of this section are in addition to the remedies available 24 under AS 45.50.471 - 45.50.561. 25  Sec. 17.06.070. Definitions. In this chapter, 26  (1) "department" means the Department of Environmental Conservation; 27  (2) "food represented as organic food" means food, when the food is 28 meat, fish, poultry, or processed, that is marketed using the term "organic" or a 29 derivative of that term in the labeling or advertising; 30  (3) "producer" means a person who grows, raises, or produces food. 31 * Sec. 9. AS 17.20 is amended by adding a new section to read: 01  Sec. 17.20.005. Powers and duties of commissioner. To carry out the 02 requirements of this chapter, the commissioner may issue orders, regulations, permits, 03 quarantines, and embargoes relating to 04  (1) food offered to the public or sold, including 05  (A) inspection of meat, fish, poultry, and other food products; 06  (B) standards of sanitation and handling methods for all phases 07 of slaughtering, processing, storing, transporting, displaying, and selling; and 08  (C) labeling; 09  (2) control and eradication of pests; 10  (3) enforcement of quality assurance plans developed in cooperation 11 with appropriate industry representatives; 12  (4) enforcement of hazard analysis critical control point programs for 13 seafood processing that are developed in cooperation with appropriate industry 14 representatives or, to the extent not inconsistent with this chapter or regulations 15 adopted under the authority of this chapter, that are established by regulations of the 16 United States Food and Drug Administration as they may periodically be revised; 17  (5) labeling and grading of milk and milk products and standards of 18 sanitation for dairies offering to the public or selling milk or milk products to at least 19 the minimum of current recommendations of the United States Public Health Service 20 pasteurized milk ordinance as it may periodically be revised; 21  (6) standards and conditions for the operation and siting of aquatic 22 farms and related hatcheries, including 23  (A) restrictions on the use of chemicals; and 24  (B) requirements to protect the public from contaminated 25 aquatic farm products that pose a risk to health; 26  (7) monitoring aquatic farms and aquatic farm products to ensure 27 compliance with this chapter and, to the extent not inconsistent with this chapter or 28 regulations adopted under the authority of this chapter, with the requirements of the 29 national shellfish sanitation program manual of operations published by the United 30 States Food and Drug Administration as it may periodically be revised; 31  (8) tests and analyses that may be made and hearings that may be held 01 to determine whether the commissioner will issue a stop order or quarantine; 02  (9) transportation, use, or disposal of quarantined or embargoed items; 03  (10) cooperation with federal and other state agencies. 04 * Sec. 10. AS 17.20 is amended by adding a new section to read: 05  Sec. 17.20.044. Sale and labeling of frozen meat, fish, and poultry. (a) 06 Meat, fish, or poultry that has been frozen may not be sold, represented, or advertised 07 as a fresh food. 08  (b) Meat, fish, and poultry that has been frozen must be labeled as a frozen 09 food in accordance with regulations adopted by the commissioner. 10  (c) The commissioner shall adopt regulations that 11  (1) require frozen food labels for meat, fish, and poultry that has been 12 frozen; and 13  (2) provide for the examination and inspection of meat, fish, and 14 poultry to ascertain whether it has been frozen. 15 * Sec. 11. AS 17.20 is amended by adding a new section to read: 16  Sec. 17.20.065. Seafood processing permits and plans of operation. (a) A 17 person may not operate a seafood processing establishment or seafood processing 18 vessel without a seafood processing permit issued by the department. A seafood 19 processing permit issued under this section must be renewed annually. 20  (b) Unless a person complies with (c) of this section, a person may not operate 21 a seafood processing establishment or a seafood processing vessel to process seafood, 22 other than for the production of a fresh or frozen seafood product, without having a 23 plan of operation approved in writing by the department. An approved plan of 24 operation is not subject to further review or approval by the department unless an 25 amendment of the plan is necessitated by a change in 26  (1) the operation of the establishment or vessel; or 27  (2) a product produced or process conducted at the establishment or 28 vessel. 29  (c) As an alternative to (b) of this section, a person may not operate a seafood 30 processing establishment or a seafood processing vessel without a written hazard 31 analysis critical control point plan that explains the procedures used at each critical 01 control point in the operation of the seafood processing establishment or the seafood 02 processing vessel. The department may review, and comment on, the completeness 03 of the hazard analysis critical control point plan prepared for a seafood processing 04 establishment or a seafood processing vessel; however, the department may not require 05 annual submission of the plan unless a change in operation, product, or process 06 necessitates a change in the plan. In this subsection, "critical control point" means a 07 point, step, or procedure in a food process at which control can be applied, and a food 08 safety hazard can as a result be prevented, eliminated, or reduced to acceptable levels. 09 * Sec. 12. AS 17.20.065(b) is repealed and reenacted to read: 10  (b) A person may not operate a seafood processing establishment or a seafood 11 processing vessel without a written hazard analysis critical control point plan that 12 explains the procedures used at each critical control point in the operation of the 13 seafood processing establishment or the seafood processing vessel. The department 14 may review, and comment on, the completeness of the hazard analysis critical control 15 point plan prepared for a seafood processing establishment or a seafood processing 16 vessel; however, the department may not require annual submission of the plan unless 17 a change in operation, product, or process necessitates a change in the plan. In this 18 subsection, "critical control point" means a point, step, or procedure in a food process 19 at which control can be applied, and a food safety hazard can as a result be prevented, 20 eliminated, or reduced to acceptable levels. 21 * Sec. 13. AS 17.20 is amended by adding new sections to read: 22  Sec. 17.20.066. Seafood product quality standards and seals. (a) The 23 Alaska Seafood Marketing Institute established in AS 16.51 shall design an 24 "inspection" seal that may be used to signify that a seafood product has been packed 25 in compliance with the requirements of a permit issued under AS 17.20.065. 26  (b) The Alaska Seafood Marketing Institute shall design a "premium quality" 27 seal that may be used to signify that a seafood product has met the product 28 specifications and standards under (d) of this section. 29  (c) The commissioner shall authorize the use of an "inspection" seal for 30 display on seafood products processed by a person who, at the time the products are 31 processed, holds a permit to operate issued under AS 17.20.065, and who complies 01 with regulations adopted under this chapter. 02  (d) The commissioner, after consultation with the Alaska Seafood Marketing 03 Institute, shall develop product specifications and standards for the use of the 04 "premium quality" seal on Alaska seafood products. The commissioner shall authorize 05 a seafood processor to display a "premium quality" seal on products that qualify for 06 the seal if the processor meets the requirements of regulations adopted under this 07 chapter and has been issued a permit to operate under AS 17.20.065. 08  (e) A person may not display a seal under this section without authorization 09 from the commissioner. 10  Sec. 17.20.067. Seafood processing research. The commissioner may 11 conduct studies, research, experiments, and demonstrations, directly or through grants 12 to or contracts with public or private agencies, organizations, or individuals 13  (1) to improve sanitation practices in the processing of fish and 14 fisheries products; and 15  (2) to develop improved techniques for surveillance and inspection 16 activities under this chapter. 17 * Sec. 14. AS 17.20.070 is amended to read: 18  Sec. 17.20.070. Inspection by department. An officer or employee 19 designated by the commissioner shall have access to a factory, aquatic farm, or 20 establishment, the operator of which holds a permit from the commissioner, for the 21 purpose of ascertaining whether [OR NOT] the conditions of the permit are being 22 complied with. Denial of access for inspection is ground for suspension of the permit 23 until access is freely given. 24 * Sec. 15. AS 17.20.072 is amended to read: 25  Sec. 17.20.072. Enforcement authority. The commissioner is responsible for 26 enforcing AS 17.20.005 - 17.20.075 [AS 17.20.010 - 17.20.075], and may delegate that 27 authority as appropriate. This section does not limit the authority of peace officers. 28 * Sec. 16. AS 17.20.075 is amended to read: 29  Sec. 17.20.075. Definitions. In AS 17.20.005 - 17.20.075 [AS 17.20.010 - 30 17.20.075], 31  (1) "commissioner" means the commissioner of environmental 01 conservation; 02  (2) "department" means the Department of Environmental Conservation. 03 * Sec. 17. AS 17.20.200(a) is amended to read: 04  (a) The commissioner of environmental conservation or an agent shall have 05 free access at reasonable hours to a factory, warehouse, or establishment in which 06 foods or cosmetics are manufactured, processed, packed, or held for introduction into 07 commerce, [OR] to enter a vehicle being used to transport or hold these foods or 08 cosmetics in commerce, or to an aquatic farm in order to 09  (1) inspect a factory, warehouse, establishment, [OR] vehicle, or 10 aquatic farm to determine if the provisions of the commissioner's respective portions 11 of this chapter are being violated;[,] and 12  (2) secure samples or specimens of a food, aquatic farm product, or 13 cosmetic [AFTER PAYING OR OFFERING TO PAY FOR THE SAMPLE]. 14 * Sec. 18. AS 17.20.280 is amended to read: 15  Sec. 17.20.280. Injunction proceedings. The commissioner of environmental 16 conservation and the commissioner of health and social services may apply to the 17 superior court for, and the court has jurisdiction to grant, a temporary or permanent 18 injunction restraining a person from violating their respective portions of this chapter 19 [AS 17.20.290]. 20 * Sec. 19. AS 17.20 is amended by adding a new section to read: 21  Sec. 17.20.305. Penalty for violation. A person who violates a provision of 22 this chapter or a regulation, order, quarantine, or embargo made under authority of this 23 chapter, or violates a provision of a permit issued under this chapter is guilty of a class 24 A misdemeanor for each offense. 25 * Sec. 20. AS 17.20.320 is amended to read: 26  Sec. 17.20.320. Effect of written guaranty. A person is not subject to the 27 penalties of AS 17.20.305 [AS 17.20.310] for having violated AS 17.20.290(a)(1) or 28 (3) if that person establishes a guaranty or undertaking signed by and containing the 29 name and address of the person residing in the state from whom the article was 30 received in good faith, to the effect that it is not adulterated or misbranded within the 31 meaning of this chapter. 01 * Sec. 21. AS 17.20.330 is amended to read: 02  Sec. 17.20.330. Liability for dissemination of false advertising.  The [NO] 03 publisher, radio-broadcast licensee, or agency or medium for the dissemination of an 04 advertisement, except the manufacturer, packer, distributor, or seller of the article to 05 which a false advertisement relates, is not liable under AS 17.20.305 [AS 17.20.310] 06 for the dissemination of the false advertisement, unless the publisher, licensee, agency 07 or medium has refused the request of the commissioner of health and social services 08 to furnish the name and post office address of the manufacturer, packer, distributor, 09 seller, or advertising agency, residing in the state who caused dissemination of the 10 advertisement. 11 * Sec. 22. AS 17.20.345 is amended to read: 12  Sec. 17.20.345. Liability of food donor. (a) Notwithstanding the provisions 13 of AS 17.20.290 and 17.20.305 [17.20.310], a donor of food for free distribution by 14 a food bank is not subject to civil or criminal liability arising from an injury or death 15 attributable to the condition of the donated food if the injury or death is not a result 16 of the gross negligence, recklessness, or intentional misconduct of the donor. 17  (b) Nothing in this section, AS 17.20.290, or 17.20.305 [17.20.310] prohibits 18 the donation by a donor of food apparently fit for human consumption at the time of 19 its donation solely because 20  (1) the label on the food is missing or the food is otherwise 21 misbranded; or 22  (2) the food, if offered for sale commercially, would not be readily 23 marketable because of appearance or grade, or because it is surplus. 24  (c) A person who donates to a food bank salmon from a hatchery that operates 25 under a permit issued under AS 16.10.400 - 16.10.470 is immune from liability as 26 provided in this section if the salmon is apparently fit for human consumption at the 27 time of its donation, even if the hatchery does not have a permit issued by the 28 Department of Environmental Conservation under this chapter [, AS 03.05,] or other 29 statute to process fisheries products for human consumption. 30 * Sec. 23. AS 17.20.346 is amended to read: 31  Sec. 17.20.346. Liability of food bank. (a) Notwithstanding the provisions 01 of AS 17.20.290 and 17.20.305 [17.20.310], a food bank that receives and distributes 02 food is not subject to civil or criminal liability arising from an injury or death 03 attributable to the condition of the food if 04  (1) the food bank inspects the food received in a reasonable manner 05 and finds it to be apparently fit for human consumption at the time of distribution; 06  (2) the food bank has no actual or constructive knowledge at the time 07 the food is distributed that it is adulterated, tainted, contaminated, or would be harmful 08 to the health or well-being of an individual consuming it; and 09  (3) the injury or death is not a direct result of the negligence, 10 recklessness, or intentional misconduct of the food bank. 11  (b) Nothing in this section, AS 17.20.290, or 17.20.305 [17.20.310] prohibits 12 the distribution by a food bank of food apparently fit for human consumption at the 13 time of its distribution solely because 14  (1) the label on the food is missing or the food is otherwise 15 misbranded; or 16  (2) the food, if sold commercially, would not be readily marketable 17 because of appearance or grade, or because it is surplus. 18 * Sec. 24. AS 17.20.370(7) is amended to read: 19  (7) "farmed salmon product" means a food product that contains salmon 20 that is propagated, farmed, or cultivated in [AN AQUATIC FARM; IN THIS 21 PARAGRAPH 22  (A) "AQUATIC FARM" MEANS] a facility that grows, farms, 23 or cultivates finfish in captivity or under positive control[,] but that is [DOES] 24 not [INCLUDE] a salmon hatchery that is owned by the state or that holds a 25 salmon hatchery permit under AS 16.10.400; in this paragraph, 26  [(B)] "positive control" has the meaning given in AS 16.40.199; 27 * Sec. 25. AS 17.20.370 is amended by adding new paragraphs to read: 28  (15) "aquatic farm" has the meaning given in AS 16.40.199; 29  (16) "aquatic farm product" has the meaning given in AS 16.40.199; 30  (17) "fish or fisheries products" means any aquatic animal, including 31 amphibians, or aquatic plants or parts of those plants, animals or amphibians that are 01 usable as human food. 02 * Sec. 26. AS 03.05.011(a)(3), 03.05.011(a)(7), 03.05.011(a)(8), 03.05.011(a)(9), 03 03.05.011(a)(10), 03.05.025, 03.05.026, 03.05.035, 03.05.070, 03.05.085, 03.05.100(2); 04 AS 17.05.010, 17.05.020, 17.05.050; AS 17.07; AS 17.20.210, and 17.20.310 are repealed. 05 * Sec. 27. Sections 1 and 4, ch. 48, SLA 1995 are repealed. 06 * Sec. 28. AS 17.20.005(3) and 17.20.065(c) are repealed. 07 * Sec. 29. TRANSITION. Regulations, orders, permits, quarantines, and embargoes issued 08 or adopted under authority of a law amended or repealed by this Act remain in effect for the 09 term issued, or until revoked, vacated, or otherwise modified under the provisions of this Act. 10 Litigation, hearings, investigations, and other proceedings pending under a law amended or 11 repealed by this Act continue in effect and may be continued and completed notwithstanding 12 an amendment or repeal provided for in this Act. Contracts, rights, liabilities, and obligations 13 created by or under a law amended or repealed by this Act, and in effect on the effective date 14 of this Act, remain in effect notwithstanding this Act's taking effect. 15 * Sec. 30. Sections 12 and 28 of this Act take effect on the effective date of regulations 16 adopted by the United States Food and Drug Administration that establish procedures for 17 ensuring safe processing of fish and fishery products in accordance with hazard analysis 18 critical control point principles, but not before July 2, 1997. The commissioner of 19 environmental conservation shall notify the revisor of statutes of the date on which the 20 regulations described in this section take effect. 21 * Sec. 31. Except as provided in sec. 30 of this Act, this Act takes effect July 1, 1997.