SCS CSHB 251(L&C) am S: "An Act relating to the Board of Agriculture and Conservation; relating to loans and limitations under the Alaska Agricultural Loan Act; exempting certain foods and drinks prepared in an uninspected kitchen from state labeling, licensing, packaging, permitting, and inspection requirements; permitting a person to acquire meat from a producer by way of an ownership share in an animal if certain conditions are met; and providing for an effective date."
00 SENATE CS FOR CS FOR HOUSE BILL NO. 251(L&C) am S 01 "An Act relating to the Board of Agriculture and Conservation; relating to loans and 02 limitations under the Alaska Agricultural Loan Act; exempting certain foods and drinks 03 prepared in an uninspected kitchen from state labeling, licensing, packaging, permitting, 04 and inspection requirements; permitting a person to acquire meat from a producer by 05 way of an ownership share in an animal if certain conditions are met; and providing for 06 an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 03.09.030 is amended to read: 09 Sec. 03.09.030. Quorum. Four [FIVE] members of the Board of Agriculture 10 and Conservation constitute a quorum for the transaction of business or the exercise of 11 a power or function at a meeting of the board. 12 * Sec. 2. AS 03.10.020(a) is amended to read: 13 (a) The Board of Agriculture and Conservation (AS 03.09.010) may
01 (1) make a loan to 02 (A) an individual resident farmer, homesteader, or a partnership 03 or corporation composed of farmers and homesteaders for 04 (i) clearing land for agricultural purposes; 05 (ii) development of farms; 06 (iii) storage and processing of farm produce; [OR] 07 (iv) the purchase of livestock or machinery; 08 (v) in-state manufacturing of food or production of 09 animal feed; or 10 (vi) the cost of shipping to and within the state for 11 the purposes listed in (i) - (v) of this subparagraph; 12 (B) an individual state resident, or a partnership or corporation 13 for 14 (i) storage and processing plants for agricultural 15 products; 16 (ii) the commercial production or processing of 17 horticultural products in the state; 18 (iii) the commercial production or processing of animal 19 feed in the state; [OR] 20 (iv) the raising or care of animals in the state for the 21 purpose of marketing their fur; 22 (v) in-state manufacturing of food or production of 23 animal feed; or 24 (vi) the cost of shipping to and within the state for 25 the purposes listed in (i) - (v) of this subparagraph; 26 (2) designate agents and delegate its powers to them as necessary; 27 (3) adopt regulations necessary to carry out its functions, including 28 regulations to establish reasonable fees for services provided and charges for 29 collecting the fees; 30 (4) establish amortization plans for repayment of loans, which may 31 include delayed payments of principal and interest for not to exceed five years;
01 (5) enter into agreements with private lending institutions, other state 02 agencies, or agencies of the federal government to carry out the purposes of this 03 chapter; 04 (6) collect the fees and collection charges established under this 05 subsection; 06 (7) refinance a debt obligation incurred by a borrower under this 07 section or through another lender for a purpose authorized under (1) of this 08 subsection if the borrower otherwise qualifies for a loan under AS 03.10.010 - 09 03.10.060. 10 * Sec. 3. AS 03.10.030(a) is amended to read: 11 (a) A [THE] farm development, chattel, or irrigation loan made under this 12 chapter 13 (1) may not exceed a term of 30 years, except that a chattel loan may 14 not exceed a term of seven years; 15 (2) may not, when added to the outstanding balance of other loans 16 made under this chapter, exceed a total outstanding balance of $3,000,000, adjusted 17 annually for inflation on July 1 of each year based on the percentage increase in 18 the Consumer Price Index for all urban consumers for urban Alaska during the 19 previous calendar year, as determined by the United States Department of 20 Labor, Bureau of Labor Statistics [$1,000,000]; 21 (3) shall be secured by a real estate or chattel mortgage of any priority, 22 except that the portion of a loan that exceeds $500,000, when added to prior 23 indebtedness that is secured by the same property, must be secured by a first 24 mortgage; 25 (4) shall bear interest at a fixed rate comparable to that charged by 26 other agricultural lending institutions in the state for loans similar to those referred to 27 in this subsection. 28 * Sec. 4. AS 03.10.030(c) is amended to read: 29 (c) A short-term loan, to be amortized within one year, not to exceed, for 30 [$350,000 TO] any one borrower, an amount set by the Board of Agriculture and 31 Conservation in regulation, may be made for operating purposes, except that a loan
01 made under this subsection may not exceed $500,000 [$200,000] unless the loan is 02 made to a borrower in a farm disaster area declared under AS 03.10.058. The loan 03 shall bear interest at a fixed rate comparable to that charged by other agricultural 04 lending institutions in the state for loans similar to those referred to in this subsection. 05 An applicant for a short-term loan may be required to purchase insurance through the 06 Federal Crop Insurance Act (7 U.S.C. 1501 - 1520) as a condition of the loan. The 07 term of a loan made under this subsection may be extended for up to three years by the 08 Board of Agriculture and Conservation, in the discretion of the board, upon 09 application by the borrower. 10 * Sec. 5. AS 03.10.030(f) is amended to read: 11 (f) A farm product processing loan may not exceed $500,000 [$250,000]. A 12 mortgage that secures a farm product processing loan may be of any priority if the 13 total indebtedness on the real estate, including the secured farm product processing 14 loan, does not exceed $500,000 [$250,000]. A farm product processing loan that, if 15 made, would raise the existing indebtedness on the real estate securing the loan above 16 $500,000 [$250,000], or a farm product processing loan on real estate that has a prior 17 indebtedness of $500,000 [$250,000] or more, may be made only if all prior 18 mortgagees agree to subordinate their mortgages to that of the state for the amount of 19 the farm product processing loan that exceeds the $500,000 [$250,000] indebtedness 20 limit on the real estate. A farm product processing loan may not exceed a term of 30 21 years or bear interest at a rate that is less than a fixed rate comparable to that charged 22 by other agricultural lending institutions in the state for similar loans, and shall be 23 secured by a real estate or chattel mortgage or both. 24 * Sec. 6. AS 03.10.030(g) is amended to read: 25 (g) A loan for clearing land may not 26 (1) exceed an amount set by the Board of Agriculture and 27 Conservation in regulation [$250,000]; 28 (2) bear interest at a rate that is less than a fixed rate comparable to 29 that charged by other agricultural lending institutions in the state for similar loans; 30 (3) have a term in excess of 20 years; or 31 (4) be made for clearing land other than land that has been classified
01 by the United States Department of Agriculture, Natural Resources Conservation 02 Service, under the Land Capability Classification System as having agricultural 03 potential for the production of annual crops or hay [,] or for pasture. 04 * Sec. 7. AS 17.20 is amended by adding new sections to read: 05 Article 7A. Homemade Food; Animal Shares. 06 Sec. 17.20.332. Exemption for homemade food. (a) Except as otherwise 07 provided in AS 17.20.332 - 17.20.338, a homemade food produced, sold, and 08 consumed in compliance with this section is exempt from state labeling, licensing, 09 packaging, permitting, and inspection requirements. 10 (b) The sale of a homemade food under this section 11 (1) is only for personal consumption; 12 (2) must occur in the state at a farmers' market, an agricultural fair, a 13 farm, a ranch, the producer's home or office, the retail location of a third-party seller, 14 or a location agreed on between the producer and the buyer; and 15 (3) may not involve 16 (A) interstate commerce; or 17 (B) the purchase or sale of 18 (i) meat or meat products, except as provided in (h) of 19 this section; 20 (ii) seafood; 21 (iii) a controlled substance; 22 (iv) oil rendered from animal fat; or 23 (v) game meat. 24 (c) Except for raw, unprocessed fruits and vegetables, a homemade food may 25 not be sold or used in a commercial food establishment. 26 (d) A homemade food may be sold from a retail space located at a ranch, farm, 27 or home where the homemade food is produced or at a retail location of a third-party 28 seller. A retail space selling a homemade food shall prominently display a sign 29 indicating that the homemade food was made in a home kitchen, may contain 30 allergens, and is not, except for meat and meat products permitted under (h) of this 31 section, regulated or inspected. A homemade food for sale at a retail location or
01 grocery store may not be displayed or offered for sale on the same shelf or display as 02 inspected food. If a retail space selling a potentially hazardous homemade food is in 03 any way associated with a commercial food establishment or offers for sale any 04 inspected food, the retail space shall 05 (1) maintain physical separation from the commercial food 06 establishment with a separate door and separate cash register or point of sale; 07 (2) display signs or other markings clearly indicating which separate 08 spaces offer inspected foods and which offer uninspected foods and meat and meat 09 products permitted under (h) of this section for sale; 10 (3) maintain separate coolers, freezers, warehouses, or other storage 11 areas to prohibit the intermingling of inspected foods with uninspected foods and meat 12 and meat products permitted under (h) of this section; and 13 (4) comply with any other requirements specified by the Department of 14 Environmental Conservation relating to homemade food. 15 (e) A homemade food packaged for individual sale must be clearly and 16 prominently labeled with 17 (1) the producer's name, current address, telephone number, and, if 18 applicable, the producer's business license number; and 19 (2) the statement: "This food was made in a home kitchen, is not 20 regulated or inspected, except for meat and meat products, and may contain allergens." 21 (f) The seller of a potentially hazardous homemade food, except eggs, must 22 also be the producer of the homemade food. The seller of eggs or a homemade food 23 that is not a potentially hazardous homemade food may be the producer of the item, an 24 agent of the producer, or a third-party vendor, including a retail shop or grocery store, 25 as long as the sale is made in compliance with this section and all applicable federal 26 and local laws. 27 (g) Before a sale of an unpackaged homemade food under this section, a 28 producer or third-party seller 29 (1) shall inform the buyer that the unpackaged homemade food was 30 prepared in accordance with AS 17.20.332 - 17.20.338 and is not subject to certain 31 state certification, labeling, licensing, packaging, regulation, or inspection
01 requirements; and 02 (2) provide the buyer with the producer's name, current address, 03 telephone number, and, if applicable, the producer's business license number. 04 (h) Subject to the requirements of federal law, a person may prepare and sell 05 meat, meat products, and homemade food containing meat or meat products under this 06 section. 07 Sec. 17.20.334. Animal shares. (a) A person may acquire meat from a 08 producer by way of an ownership interest in the animal or herd from which the meat 09 originated if 10 (1) the meat is 11 (A) delivered directly from the farm or ranch where the animal 12 or herd subject to the person's ownership interest is located; and 13 (B) received by or on behalf of the person with an ownership 14 interest in the animal from which the meat originated; 15 (2) the person's ownership of the animal or herd is established before 16 slaughter; 17 (3) when providing the meat to a person, the producer includes with 18 the meat, or on a label attached to the packaging of the meat, a clearly visible warning 19 that the meat has not been inspected; and 20 (4) the producer provides the person information describing the health 21 of the animal or herd and the meat processing standards of the producer's farm or 22 ranch. 23 (b) A producer or a person designated by a producer may deliver meat to a 24 person at a farm, ranch, farmers' market, home, office, or other location agreed on 25 between the producer and the person. 26 (c) For a person to have an ownership interest in an animal or herd under this 27 section, the person's ownership interest must be documented in a written contract 28 between the person and a producer that includes 29 (1) a bill of sale demonstrating the person's ownership interest in the 30 animal or herd; 31 (2) a boarding provision under which the person boards the animal or
01 herd with the producer for care and processing; and 02 (3) a provision entitling the person to receive a share of meat from the 03 animal or herd. 04 (d) Meat received by an owner of an animal or herd by way of the person's 05 ownership interest under this section may not be sold, donated, or commercially 06 redistributed. 07 (e) A person may not publish a statement that implies that the Department of 08 Environmental Conservation approves or endorses an animal or herd share program or 09 the acquisition of meat under this section. 10 Sec. 17.20.336. Exceptions. Nothing in AS 17.20.332 - 17.20.338 11 (1) prevents the Department of Environmental Conservation from 12 (A) conducting inspections necessary to investigate reports of 13 (i) foodborne illness or food-caused injury or death; 14 (ii) unsafe sanitary practices; or 15 (iii) misbranded or adulterated food; 16 (B) condemning and ordering the destruction of misbranded or 17 adulterated food; 18 (C) ordering the cessation of a practice or procedure of a 19 producer that is unsafe, unsanitary, or otherwise a risk to public health; 20 (D) regulating food or an establishment that is not exempt 21 under AS 17.20.332 - 17.20.338; or 22 (E) providing assistance, consultation, or inspection at the 23 request of a producer; 24 (2) exempts a person from 25 (A) applicable federal and local laws, regulations, and 26 ordinances regarding food; or 27 (B) brand inspection requirements under AS 03.40.250 or 28 animal inspection requirements under AS 03.05.040. 29 Sec. 17.20.338. Definitions. In AS 17.20.332 - 17.20.338, 30 (1) "agricultural fair" means a fair, the major focus of which is 31 displays, exhibitions, demonstrations, contests, or promotions of agricultural concern
01 to the region in which the fair is located; 02 (2) "commercial food establishment" means the premises where an 03 activity related to the display, packaging, preparation, processing, sale, salvaging, 04 service, storage, transportation, or vending of food for human consumption that is not 05 exempt under AS 17.20.332 - 17.20.338 occurs; "commercial food establishment" 06 does not include a kitchen in a private dwelling, or a kitchen in a vessel used solely as 07 a private dwelling, where homemade food is prepared only for personal consumption; 08 (3) "controlled substance" has the meaning given in AS 11.71.900; 09 (4) "farmers' market" means a common facility or area where several 10 vendors may gather on a regular and recurring basis to sell fresh fruits and vegetables, 11 locally grown farm products, and other agricultural products and items directly to 12 buyers; 13 (5) "game meat" means the flesh and organs of animals that are not 14 classified as meat in 9 C.F.R. 301.2 or as poultry in 9 C.F.R. 381.1(b); 15 (6) "homemade food" means a food or drink that is prepared or 16 processed in 17 (A) a producer's private home kitchen; or 18 (B) a private or commercial kitchen leased to a producer; 19 (7) "meat" means the flesh, muscles, organs, tissues, skin, sinew, 20 nerves, blood vessels, and bones of cattle, sheep, swine, equine, or goats; 21 (8) "molluscan shellfish" means all edible species of oyster, clam, 22 mussel, and scallop, whether shucked or in the shell, fresh or frozen, and in whole or 23 in part; "molluscan shellfish" does not include the shucked scallop adductor muscle; 24 (9) "personal consumption" means the use or ingestion of food by a 25 buyer, an employee of the buyer, or a nonpaying guest of the buyer of homemade 26 food; 27 (10) "potentially hazardous homemade food" means food or drink that 28 requires time or temperature control for safety to limit pathogenic microorganism 29 growth or toxin formation; 30 (11) "producer" means a person who grows, harvests, prepares, 31 processes, or makes and packages meat or homemade food on the person's owned or
01 leased property; 02 (12) "seafood" includes saltwater fish, freshwater fish, amphibians, 03 crustaceans, molluscan shellfish, any other species of aquatic animal intended for 04 human consumption, and parts or byproducts of any species of aquatic animal 05 intended for human consumption; "seafood" does not include aquatic plants, birds, or 06 mammals. 07 * Sec. 8. 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 adopt regulations necessary to implement the changes 11 made by this Act. The regulations take effect under AS 44.62 (Administrative Procedure Act) 12 but not before the effective date of the law implemented by the regulation. 13 * Sec. 9. Sections 1, 3, 5, and 8 of this Act take effect immediately under AS 01.10.070(c). 14 * Sec. 10. Section 7 of this Act takes effect July 1, 2024. 15 * Sec. 11. Sections 2, 4, and 6 of this Act take effect July 1, 2025.