Enrolled HB 298: Establishing forgivable loan programs for farm development and improvement and for certain meat processing facilities; relating to a program of state inspection for certain meat processing facilities; establishing the Alaska Food Strategy Task Force; and providing for an effective date.
00Enrolled HB 298 01 Establishing forgivable loan programs for farm development and improvement and for certain 02 meat processing facilities; relating to a program of state inspection for certain meat processing 03 facilities; establishing the Alaska Food Strategy Task Force; and providing for an effective 04 date. 05 _______________ 06 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 07 to read: 08 LEGISLATIVE INTENT. It is the intent of the legislature to establish the Alaska 09 Food Strategy Task Force to 10 (1) develop a comprehensive statewide food strategy; 11 (2) strengthen the state's diverse food systems; 12 (3) improve food security for all residents of the state; and 13 (4) grow the local food economies of the state. 14 * Sec. 2. AS 03.20 is amended by adding new sections to read:
01 Article 3. Forgivable Loan Programs for Farm Development and Improvement and 02 Meat Processing Facilities. 03 Sec. 03.20.200. Forgivable loan program for farm development and 04 improvement. (a) The division of the department with responsibility for agriculture 05 shall establish a forgivable loan program in regulation, under which a recipient's loan 06 may be forgiven by the department if the recipient implements a business plan 07 approved by the department to develop or make improvements to the recipient's farm 08 as described in (d) of this section. A loan may be used by a recipient to fund 09 investments in agriculture to build resiliency in the state's food supply. The forgivable 10 loan program must allow a loan to be forgiven if the recipient implements the 11 approved business plan and demonstrates a subsequent increase in food production 12 and distribution. 13 (b) In administering the forgivable loan program established under (a) of this 14 section, the department 15 (1) shall develop criteria for awarding a forgivable loan and a process 16 for applying for a forgivable loan that includes requiring 17 (A) a forgivable loan applicant to submit a business plan that 18 provides 19 (i) how the applicant will meet the criteria required by 20 the department to approve a forgivable loan under this section; 21 (ii) a timeline for the applicant to meet the upgrades, 22 construction, or expansion funded by the forgivable loan; and 23 (B) the department to 24 (i) approve an applicant's business plan before awarding 25 a forgivable loan; 26 (ii) visit an applicant's farm, facility, or other site that 27 would receive funding under a forgivable loan made under this section; 28 (2) shall require a recipient of a forgivable loan to report to the 29 department on the use of forgivable loan funds; 30 (3) may make forgivable loans of up to $150,000 to an applicant for 31 eligible farm development and improvement expenses approved by the department;
01 (4) shall, subject to appropriation, make the program available to 02 applicants annually until all available funds have been distributed. 03 (c) A business plan approved by the department under (b)(1)(B)(i) of this 04 section may be amended upon approval of the department. 05 (d) Expenses eligible for a loan under this section include expenses relating to 06 (1) clearing of land for agricultural purposes; and 07 (2) the purchase, building, installation, maintenance, or improvement 08 of 09 (A) irrigation, drainage, and other water management systems; 10 (B) fencing, trellising, barns, greenhouses, or other farm 11 buildings or structures; 12 (C) agricultural processing and farm equipment, including 13 milking and pasteurization equipment; 14 (D) livestock, feed, seeds, fertilizer, and seasonal extension 15 equipment; and 16 (E) bees and beekeeping equipment. 17 (e) A forgivable loan recipient must repay to the fund any money not spent 18 from a forgivable loan received under this section. Forgivable loan funds used for 19 expenses that are not eligible under (d) of this section or that are not accounted for in a 20 recipient's business plan approved by the department under (b) of this section must 21 also be repaid to the fund. Any money repaid by a forgivable loan recipient shall be 22 deposited into the general fund. 23 Sec. 03.20.210. Forgivable loan program for meat processing facilities. (a) 24 The department shall establish a forgivable loan program in regulation, under which a 25 recipient's loan may be forgiven by the department if the recipient implements a 26 business plan approved by the department and begins processing meat, or increases the 27 quantity of meat processed, in the recipient's facility. A loan may be used by a 28 recipient to fund the expansion of a facility that operates under a program of federal 29 inspection that plans to increase processing of meat from animals raised in the state. 30 The forgivable loan program must allow a loan to be forgiven if the recipient 31 implements the approved business plan and demonstrates a subsequent increase in
01 food production and distribution. 02 (b) In administering the forgivable loan program established under (a) of this 03 section, the department 04 (1) shall develop criteria for awarding a forgivable loan and a process 05 for applying for a forgivable loan that includes requiring 06 (A) a forgivable loan applicant to submit a business plan that 07 provides 08 (i) how the applicant will meet the criteria required by 09 the department to approve a forgivable loan under this section; 10 (ii) a timeline for the applicant to meet the upgrades, 11 construction, or expansion funded by the forgivable loan; and 12 (B) the department to 13 (i) approve an applicant's business plan before awarding 14 a forgivable loan; 15 (ii) visit an applicant's facility or the site of a facility 16 proposed by an applicant to be upgraded, constructed, or expanded with 17 forgivable loan funds; 18 (2) shall award forgivable loans preferentially to support facilities that 19 prioritize seasonally feasible processing of meat from animals raised in the state; 20 (3) shall require a recipient of a forgivable loan to report to the 21 department on the use of forgivable loan funds; 22 (4) may make forgivable loans of up to $250,000 to an applicant 23 whose business plan is approved under this subsection for eligible expenses approved 24 by the department; and 25 (5) shall, subject to appropriation, make the program available to 26 applicants annually until all available funds have been distributed. 27 (c) A recipient of a forgivable loan made under this section may use 28 forgivable loan funds for costs related to activity described in (a) of this section that 29 are approved by the department, including costs of technical assistance and the 30 purchase of equipment. 31 (d) The department may charge an administrative fee to the recipient of a
01 forgivable loan made under this section to cover the department's costs of 02 administering the forgivable loan program. The department 03 (1) shall deduct the fee from the forgivable loan funds provided to the 04 recipient; and 05 (2) may not charge a recipient more than three percent of the amount 06 of a forgivable loan made to the recipient applicant under this section. 07 (e) The meat processing facilities forgivable loan fund is established in the 08 department and consists of appropriations to the fund. Appropriations to the fund do 09 not lapse. 10 (f) A business plan approved by the department under (b)(1)(B)(i) of this 11 section may be amended upon approval of the department. 12 (g) A forgivable loan recipient must repay to the fund any money not spent 13 from a forgivable loan received under this section. Forgivable loan funds used for 14 expenses that are not eligible under (a) of this section or that are not accounted for in a 15 recipient's business plan approved by the department under (b) of this section must 16 also be repaid to the fund. Any money repaid by a forgivable loan recipient shall be 17 deposited into the general fund. 18 * Sec. 3. AS 17.20.005 is amended to read: 19 Sec. 17.20.005. Powers and duties of commissioner. To carry out the 20 requirements of this chapter, the commissioner may issue orders, regulations, permits, 21 quarantines, and embargoes relating to 22 (1) food offered to the public or sold, subject to AS 17.20.017, 23 including 24 (A) inspection of meat, fish, poultry, and other food products; 25 (B) standards of sanitation and handling methods for all phases 26 of slaughtering, processing, storing, transporting, displaying, and selling; 27 (C) labeling; and 28 (D) the training, testing, and certification requirements for 29 individuals who handle or prepare food, their supervisors, and their employers 30 to ensure their knowledge of food safety and sanitation principles and 31 requirements;
01 (2) control and eradication of pests; 02 (3) enforcement of hazard analysis critical control point programs for 03 seafood processing that are developed in cooperation with appropriate industry 04 representatives or, to the extent not inconsistent with this chapter or regulations 05 adopted under the authority of this chapter, that are established by regulations of the 06 United States Food and Drug Administration as they may periodically be revised; 07 (4) labeling, subject to AS 17.20.013, and grading of milk and milk 08 products and standards of sanitation for dairies offering to the public or selling milk or 09 milk products to at least the minimum of current recommendations of the United 10 States Public Health Service pasteurized milk ordinance as it may periodically be 11 revised; 12 (5) standards and conditions for the operation and siting of aquatic 13 farms and related hatcheries, including 14 (A) restrictions on the use of chemicals; and 15 (B) requirements to protect the public from contaminated 16 aquatic farm products that pose a risk to health; 17 (6) monitoring aquatic farms and aquatic farm products to ensure 18 compliance with this chapter and, to the extent not inconsistent with this chapter or 19 regulations adopted under the authority of this chapter, with the requirements of the 20 national shellfish sanitation program manual of operations published by the United 21 States Food and Drug Administration as it may periodically be revised; 22 (7) tests and analyses that may be made and hearings that may be held 23 to determine whether the commissioner will issue a stop order or quarantine; 24 (8) transportation of, use of, disposal of, recalls of, or warnings 25 concerning quarantined or embargoed items; 26 (9) cooperation with federal and other state agencies. 27 * Sec. 4. AS 17.20 is amended by adding a new section to read: 28 Sec. 17.20.017. Inspection of processed meat products. (a) The department 29 may adopt regulations to establish a program of state inspection for the processing and 30 sale of meat products, including meat products from amenable species. 31 (b) The department may administer and enforce regulations adopted under (a)
01 of this section for a program of state inspection for the processing and sale of meat 02 products from amenable species only if the program is approved by the federal 03 government. 04 (c) Regulations adopted by the department under this section must impose 05 requirements that are not less stringent than the requirements imposed under 21 U.S.C. 06 601 - 695 (Federal Meat Inspection Act) and 7 U.S.C. 1901 - 1907 (Humane Methods 07 of Slaughter Act). 08 (d) Subject to (b) of this section, and except as provided in (e) of this section, 09 if the department adopts regulations to establish a program of state inspection for the 10 processing and sale of meat products, the department shall 11 (1) license facilities that process meat products for sale to the public; 12 (2) adopt license requirements and fees for facilities that process meat 13 products for sale to the public; and 14 (3) use officers and employees of the department to inspect facilities 15 that are licensed under this subsection. 16 (e) The department may not establish, administer, or enforce a program of 17 inspection under this section for facilities that process meat products from equines. 18 (f) In this section, 19 (1) "amenable species" has the meaning given in 21 U.S.C. 601(w); 20 (2) "equine" means a member of the family Equidae. 21 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 22 read: 23 ALASKA FOOD STRATEGY TASK FORCE. (a) The Alaska Food Strategy Task 24 Force is created in the legislative branch. 25 (b) The executive board of the task force consists of nine members as follows: 26 (1) two members from the Alaska Food Policy Council selected by the 27 governing board of the Alaska Food Policy Council; 28 (2) one member from the Institute of Social and Economic Research at the 29 University of Alaska Anchorage selected by the Board of Regents; 30 (3) one member from the Alaska Farm Bureau selected by the governing 31 board of the Alaska Farm Bureau;
01 (4) one member from the Alaska Industrial Development and Export 02 Authority selected by the members of the authority; and 03 (5) four members of the Alaska State Legislature appointed as follows: 04 (A) one member from the minority caucus of the senate and one 05 member from the majority caucus of the senate, appointed jointly by the president of 06 the senate and speaker of the house of representatives; 07 (B) one member from the minority caucus of the house of 08 representatives and one member from the majority caucus of the house of 09 representatives, appointed jointly by the president of the senate and speaker of the 10 house of representatives. 11 (c) The following commissioners, or their designees, serve as members of the task 12 force: 13 (1) the commissioner of natural resources; 14 (2) the commissioner of fish and game; 15 (3) the commissioner of health and social services; 16 (4) the commissioner of commerce, community, and economic development; 17 (5) the commissioner of education and early development; and 18 (6) the commissioner of transportation and public facilities. 19 (d) The remainder of the task force consists of 21 members selected by the executive 20 board, with due regard for broad geographic representation of the state, as follows: 21 (1) one member from a mariculture development organization; 22 (2) one member from an agricultural development organization; 23 (3) one member from a fisheries-related organization; 24 (4) one member from a local food marketing organization; 25 (5) one member from a hunger and nutrition organization; 26 (6) one member from an economic development organization; 27 (7) one member from the food distribution or transportation industry; 28 (8) two members from Alaska Native or intertribal organizations addressing 29 food sovereignty or Alaska tribal governments; 30 (9) two members who are food producers in the state; 31 (10) two members from the food service industry;
01 (11) one youth member from the Alaska Future Farmers of America 02 Association or the Alaska 4-H Program; 03 (12) one member who is a faculty member at the University of Alaska 04 Anchorage; 05 (13) one member who is a faculty member at the University of Alaska 06 Fairbanks; 07 (14) one member who is a faculty member at the University of Alaska 08 Southeast; 09 (15) one member who is a faculty member at the Alaska Pacific University; 10 and 11 (16) three members selected to provide additional expertise in food system 12 development. 13 (e) The executive board of the task force shall select members to provide expertise in 14 key areas of food system activity, including production, security, and economic, social, and 15 environmental drivers. In this subsection, 16 (1) "production" includes growing and harvesting, food processing, 17 packaging, distribution, retail, and consumption and waste management; 18 (2) "security" includes food access, availability, and use. 19 (f) The executive board of the task force shall select a chair and vice-chair from the 20 executive board. 21 (g) Members of the task force serve without compensation and may not receive travel 22 and per diem expenses. 23 (h) The task force shall meet during and between legislative sessions to accomplish its 24 duties. Meetings shall be conducted, and notice of regular meetings provided, under 25 AS 44.62.310 - 44.62.319 (Open Meetings Act). Records of the Alaska Food Strategy Task 26 Force are subject to inspection and copying as public records under AS 40.25.100 - 40.25.295 27 (Alaska Public Records Act). 28 (i) The executive board may remove a member of the task force if the member misses 29 more than two meetings in a calendar year without being previously excused or if the member 30 does not contribute in a meaningful way to the activities of the task force. Vacancies on the 31 task force shall be filled in the same manner as the original selection.
01 (j) The task force shall present state policy, legislation, and strategy implementation 02 recommendations in the following seven integrated focus areas: 03 (1) sustainably growing the agriculture industry; 04 (2) sustainably growing markets for locally grown, locally harvested, and 05 locally processed foods; 06 (3) enhancing the climate for food and beverage processing or distribution 07 businesses; 08 (4) minimizing food waste and diverting it from the waste stream; 09 (5) improving connectivity, efficiencies, and outcomes in state-run programs 10 affecting food availability and access; 11 (6) ensuring food security in all communities in the state, including those that 12 are and are not connected to the main road system of the state; and 13 (7) improving transportation and infrastructure to transfer and deliver food in 14 the state. 15 (k) The task force shall, in its consideration of the seven integrated focus areas under 16 (j) of this section, address, at a minimum, the following elements: 17 (1) public, nonprofit, and private investment and infrastructure; 18 (2) regulatory issues; 19 (3) research and development needs; 20 (4) environmental changes; 21 (5) workforce development needs; 22 (6) infrastructure needs and storage; 23 (7) high food costs and food access; 24 (8) food safety; 25 (9) varying scales of food system and storage development; 26 (10) innovative technologies for the Circumpolar North; 27 (11) adaptation of successful food system policies, models, and programs 28 across the Circumpolar North and other states; 29 (12) Alaska tribal relations as they pertain to food security, food sovereignty, 30 and local storage methods; and 31 (13) emergency preparedness.
01 (l) The task force shall establish advisory committees focused on addressing each of 02 the seven integrated focus areas under (j) of this section and the minimum elements under (k) 03 of this section, and each task force member shall serve on one or more of these committees. 04 (m) The task force shall present recommendations for metrics appropriate for 05 evaluating food system effects and food security outcomes. 06 (n) The recommendations of the task force must be 07 (1) evidence based; 08 (2) stakeholder informed; 09 (3) economically sound; 10 (4) environmentally sustainable; and 11 (5) equally accessible. 12 (o) The task force shall develop and present recommendations in three of the 13 integrated focus areas under (j) of this section by August 1, 2023, and recommendations in the 14 remaining integrated focus areas under (j) of this section by August 1, 2024. The task force 15 shall compile the recommendations into a report and submit the report to the governor, the 16 senate secretary, and the chief clerk of the house of representatives and notify the legislature 17 that the report is available. 18 (p) The task force shall continue the efforts of and review and, when applicable, 19 implement the recommendations of the Alaska Food Security and Independence Task Force 20 established by Administrative Order No. 331. 21 * Sec. 6. The uncodified law of the State of Alaska enacted in sec. 5(c) of this Act is 22 amended to read: 23 (c) The following commissioners, or their designees, serve as members of the task 24 force: 25 (1) the commissioner of natural resources; 26 (2) the commissioner of fish and game; 27 (3) the commissioner of health [AND SOCIAL SERVICES]; 28 (4) the commissioner of commerce, community, and economic development; 29 (5) the commissioner of education and early development; and 30 (6) the commissioner of transportation and public facilities. 31 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to
01 read: 02 TRANSITION. The Alaska Food Strategy Task Force created under sec. 5 of this Act 03 shall begin work not later than 30 days after both the senate and the house of representatives 04 have organized in the First Regular Session of the Thirty-Third Alaska State Legislature. 05 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 06 read: 07 TRANSITION: REGULATIONS. The Department of Natural Resources shall adopt 08 regulations necessary to implement AS 03.20.200 and 03.20.210, enacted by sec. 2 of this 09 Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), but not 10 before the effective date of the law implemented by the regulation. 11 * Sec. 9. Sections 1, 5, and 6 of this Act are repealed June 30, 2025. 12 * Sec. 10. Sections 2 - 4 and 6 of this Act take effect July 1, 2022. 13 * Sec. 11. Except as provided in sec. 10 of this Act, this Act takes effect immediately under 14 AS 01.10.070(c).