Legislature(2021 - 2022)

2022-05-16 Senate Journal

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2022-05-16                     Senate Journal                      Page 2796
HB 298                                                                                                                        
SENATE CS FOR CS FOR HOUSE BILL NO. 298(CRA) "An Act                                                                            
establishing the Alaska Food Strategy Task Force; and providing for                                                             
an effective date" was read the third time.                                                                                     
                                                                                                                                
Senator Hughes moved the bill be returned to second reading for the                                                             
purpose of a specific amendment, that being Amendment No. 1.                                                                    
Without objection, the bill was returned to second reading.                                                                     
                                                                                                                                

2022-05-16                     Senate Journal                      Page 2797
Senator Hughes offered Amendment No. 1 :                                                                                         
                                                                                                                                
Page 1, line 1, following "Act":                                                                                              
     Insert "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;"                                                                                                       
                                                                                                                                
Page 1, following line 11:                                                                                                      
     Insert new bill sections to read:                                                                                          
"* Sec. 2. AS 03.20 is amended by adding new sections to read:                                                                
        Article 3. Forgivable Loan Programs for Farm Development                                                              
     and Improvement and Meat Processing Facilities.                                                                          
        Sec. 03.20.200. Forgivable loan program for farm                                                                    
     development and improvement. (a) The division of the                                                                     
     department with responsibility for agriculture shall establish a                                                           
     forgivable loan program in regulation, under which a recipient's                                                           
     loan may be forgiven by the department if the recipient                                                                    
     implements a business plan approved by the department to                                                                   
     develop or make improvements to the recipient's farm as                                                                    
     described in (d) of this section. A loan may be used by a recipient                                                        
     to fund investments in agriculture to build resiliency in the state's                                                      
     food supply. The forgivable loan program must allow a loan to be                                                           
     forgiven if the recipient implements the approved business plan                                                            
     and demonstrates a subsequent increase in food production and                                                              
     distribution.                                                                                                              
          (b)  In administering the forgivable loan program established                                                         
     under (a) of this section, the department                                                                                  
              (1)  shall develop criteria for awarding a forgivable loan                                                        
     and a process for applying for a forgivable loan that includes                                                             
     requiring                                                                                                                  
                   (A)  a forgivable loan applicant to submit a business                                                        
          plan that provides                                                                                                    
                        (i)  how the applicant will meet the criteria                                                           
              required by the department to approve a forgivable loan                                                           
              under this section;                                                                                               
                        (ii)  a timeline for the applicant to meet the                                                          
              upgrades, construction, or expansion funded by the                                                                

2022-05-16                     Senate Journal                      Page 2798
              forgivable loan; and                                                                                              
                   (B)  the department to                                                                                       
                        (i)  approve an applicant's business plan before                                                        
              awarding a forgivable loan;                                                                                       
                        (ii)  visit an applicant's farm, facility, or other site                                                
              that would receive funding under a forgivable loan made                                                           
              under this section;                                                                                               
              (2)  shall require a recipient of a forgivable loan to report                                                     
     to the department on the use of forgivable loan funds;                                                                     
              (3)  may make forgivable loans of up to $150,000 to an                                                            
     applicant for eligible farm development and improvement                                                                    
     expenses approved by the department;                                                                                       
              (4)  shall, subject to appropriation, make the program                                                            
     available to applicants annually until all available funds have been                                                       
     distributed.                                                                                                               
          (c)  A business plan approved by the department under                                                                 
     (b)(1)(B)(i) of this section may be amended upon approval of the                                                           
     department.                                                                                                                
          (d)  Expenses eligible for a loan under this section include                                                          
     expenses relating to                                                                                                       
              (1)  clearing of land for agricultural purposes; and                                                              
              (2)  the purchase, building, installation, maintenance, or                                                        
     improvement of                                                                                                             
                   (A)  irrigation, drainage, and other water                                                                   
          management systems;                                                                                                   
                   (B)  fencing, trellising, barns, greenhouses, or other                                                       
          farm buildings or structures;                                                                                         
                   (C)  agricultural processing and farm equipment,                                                             
          including milking and pasteurization equipment;                                                                       
                   (D)  livestock, feed, seeds, fertilizer, and seasonal                                                        
          extension equipment; and                                                                                              
                     (E)  bees and beekeeping equipment.                                                                       
          (e)  A forgivable loan recipient must repay to the fund any                                                           
     money not spent from a forgivable loan received under this                                                                 
     section. Forgivable loan funds used for expenses that are not                                                              
     eligible under (d) of this section or that are not accounted for in a                                                      
     recipient's business plan approved by the department under (b) of                                                          
     this section must also be repaid to the fund. Any money repaid by                                                          
     a forgivable loan recipient shall be deposited into the general fund.                                                      

2022-05-16                     Senate Journal                      Page 2799
          Sec. 03.20.210. Forgivable loan program for meat                                                                    
     processing facilities. (a) The department shall establish a                                                              
     forgivable loan program in regulation, under which a recipient's                                                           
     loan may be forgiven by the department if the recipient                                                                    
     implements a business plan approved by the department and                                                                  
     begins processing meat, or increases the quantity of meat                                                                  
     processed, in the recipient's facility. A loan may be used by a                                                            
     recipient to fund the expansion of a facility that operates under a                                                        
     program of federal inspection that plans to increase processing of                                                         
     meat from animals raised in the state. The forgivable loan program                                                         
     must allow a loan to be forgiven if the recipient implements the                                                           
     approved business plan and demonstrates a subsequent increase in                                                           
     food production and distribution.                                                                                          
          (b)  In administering the forgivable loan program established                                                         
     under (a) of this section, the department                                                                                  
              (1)  shall develop criteria for awarding a forgivable loan                                                        
     and a process for applying for a forgivable loan that includes                                                             
     requiring                                                                                                                  
                   (A)  a forgivable loan applicant to submit a business                                                        
          plan that provides                                                                                                    
                        (i)  how the applicant will meet the criteria                                                           
              required by the department to approve a forgivable loan                                                           
              under this section;                                                                                               
                        (ii)  a timeline for the applicant to meet the                                                          
              upgrades, construction, or expansion funded by the                                                                
              forgivable loan; and                                                                                              
                   (B)  the department to                                                                                       
                        (i)  approve an applicant's business plan before                                                        
              awarding a forgivable loan;                                                                                       
                        (ii)  visit an applicant's facility or the site of a                                                    
              facility proposed by an applicant to be upgraded,                                                                 
              constructed, or expanded with forgivable loan funds;                                                              
              (2)  shall award forgivable loans preferentially to support                                                       
     facilities that prioritize seasonally feasible processing of meat                                                          
     from animals raised in the state; and                                                                                      
              (3)  shall require a recipient of a forgivable loan to report                                                     
     to the department on the use of forgivable loan funds;                                                                     
                                                                                                                                
                                                                                                                                

2022-05-16                     Senate Journal                      Page 2800
              (4)  may make forgivable loans of up to $250,000 to an                                                            
     applicant whose business plan is approved under this subsection                                                            
     for eligible expenses approved by the department;                                                                          
              (5)  shall, subject to appropriation, make the program                                                            
     available to applicants annually until all available funds have been                                                       
     distributed.                                                                                                               
          (c)  A recipient of a forgivable loan made under this section                                                         
     may use forgivable loan funds for costs related to activity                                                                
     described in (a) of this section that are approved by the                                                                  
     department, including costs of technical assistance and the                                                                
     purchase of equipment.                                                                                                     
          (d)  The department may charge an administrative fee to the                                                           
     recipient of a forgivable loan made under this section to cover the                                                        
     department's costs of administering the forgivable loan program.                                                           
     The department                                                                                                             
              (1)  shall deduct the fee from the forgivable loan funds                                                          
     provided to the recipient; and                                                                                             
              (2)  may not charge a recipient more than three percent of                                                        
     the amount of a forgivable loan made to the recipient applicant                                                            
     under this section.                                                                                                        
          (e)  The meat processing facilities forgivable loan fund is                                                           
     established in the department and consists of appropriations to the                                                        
     fund. Appropriations to the fund do not lapse.                                                                             
          (f)  A business plan approved by the department under                                                                 
     (b)(1)(B)(i) of this section may be amended upon approval of the                                                           
     department.                                                                                                                
          (g)  A forgivable loan recipient must repay to the fund any                                                           
     money not spent from a forgivable loan received under this                                                                 
     section. Forgivable loan funds used for expenses that are not                                                              
     eligible under (a) of this section or that are not accounted for in a                                                      
     recipient's business plan approved by the department under (b) of                                                          
     this section must also be repaid to the fund. Any money repaid by                                                          
     a forgivable loan recipient shall be deposited into the general fund.                                                      
   * Sec. 3. AS 17.20.005 is amended to read:                                                                                 
          Sec. 17.20.005. Powers and duties of commissioner. To                                                               
     carry out the requirements of this chapter, the commissioner may                                                           
     issue orders, regulations, permits, quarantines, and embargoes                                                             
     relating to                                                                                                                
                                                                                                                                

2022-05-16                     Senate Journal                      Page 2801
              (1)  food offered to the public or sold, subject to                                                           
     AS 17.20.017, including                                                                                                
                   (A)  inspection of meat, fish, poultry, and other food                                                       
          products;                                                                                                             
                   (B)  standards of sanitation and handling methods for                                                        
          all phases of slaughtering, processing, storing, transporting,                                                        
          displaying, and selling;                                                                                              
                   (C)  labeling; and                                                                                           
                   (D)  the training, testing, and certification                                                                
          requirements for individuals who handle or prepare food, their                                                        
          supervisors, and their employers to ensure their knowledge of                                                         
           food safety and sanitation principles and requirements;                                                             
              (2)  control and eradication of pests;                                                                            
              (3)  enforcement of hazard analysis critical control point                                                        
     programs for seafood processing that are developed in cooperation                                                          
     with appropriate industry representatives or, to the extent not                                                            
     inconsistent with this chapter or regulations adopted under the                                                            
     authority of this chapter, that are established by regulations of the                                                      
     United States Food and Drug Administration as they may                                                                     
     periodically be revised;                                                                                                   
              (4)  labeling, subject to AS 17.20.013, and grading of                                                            
     milk and milk products and standards of sanitation for dairies                                                             
     offering to the public or selling milk or milk products to at least                                                        
     the minimum of current recommendations of the United States                                                                
     Public Health Service pasteurized milk ordinance as it may                                                                 
     periodically be revised;                                                                                                   
              (5)  standards and conditions for the operation and siting                                                        
     of aquatic farms and related hatcheries, including                                                                         
                   (A)  restrictions on the use of chemicals; and                                                               
                   (B)  requirements to protect the public from                                                                 
          contaminated aquatic farm products that pose a risk to health;                                                        
              (6)  monitoring aquatic farms and aquatic farm products                                                           
     to ensure compliance with this chapter and, to the extent not                                                              
     inconsistent with this chapter or regulations adopted under the                                                            
     authority of this chapter, with the requirements of the national                                                           
     shellfish sanitation program manual of operations published by the                                                         
     United States Food and Drug Administration as it may                                                                       
     periodically be revised;                                                                                                   
                                                                                                                                

2022-05-16                     Senate Journal                      Page 2802
              (7)  tests and analyses that may be made and hearings that                                                        
     may be held to determine whether the commissioner will issue a                                                             
     stop order or quarantine;                                                                                                  
              (8)  transportation of, use of, disposal of, recalls of, or                                                       
     warnings concerning quarantined or embargoed items;                                                                        
              (9)  cooperation with federal and other state agencies.                                                           
   * Sec. 4. AS 17.20 is amended by adding new sections to read:                                                              
          Sec. 17.20.017. Inspection of processed meat products. (a)                                                          
     The department may adopt regulations to establish a program of                                                             
     state inspection for the processing and sale of meat products,                                                             
     including meat products from amenable species.                                                                             
          (b)  The department may administer and enforce regulations                                                            
     adopted under (a) of this section for a program of state inspection                                                        
     for the processing and sale of meat products from amenable                                                                 
     species only if the program is approved by the federal                                                                     
     government.                                                                                                                
          (c)  Regulations adopted by the department under this section                                                         
     must impose requirements that are not less stringent than the                                                              
     requirements imposed under 21 U.S.C. 601 - 695 (Federal Meat                                                               
     Inspection Act) and 7 U.S.C. 1901 - 1907 (Humane Methods of                                                                
     Slaughter Act).                                                                                                            
          (d)  Subject to (b) of this section, and except as provided in                                                        
     (e) of this section, if the department adopts regulations to establish                                                     
     a program of state inspection for the processing and sale of meat                                                          
     products, the department shall                                                                                             
              (1)  license facilities that process meat products for sale to                                                    
     the public;                                                                                                                
              (2)  adopt license requirements and fees for facilities that                                                      
     process meat products for sale to the public; and                                                                          
              (3)  use officers and employees of the department to                                                              
     inspect facilities that are licensed under this subsection.                                                                
          (e)  The department may not establish, administer, or enforce                                                         
     a program of inspection under this section for facilities that                                                             
     process meat products from equines.                                                                                        
          (f)  In this section,                                                                                                 
              (1)  "amenable species" has the meaning given in 21                                                               
     U.S.C. 601(w);                                                                                                             
              (2)  "equine" means a member of the family Equidae."                                                              
                                                                                                                                

2022-05-16                     Senate Journal                      Page 2803
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 5, line 29:                                                                                                                
     Delete "sec. 2(c)"                                                                                                         
     Insert "sec. 5(c)"                                                                                                         
                                                                                                                                
Page 6, line 10:                                                                                                                
     Delete "sec. 2"                                                                                                            
     Insert "sec. 5"                                                                                                            
                                                                                                                                
Page 6, following line 12:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 8. The uncodified law of the State of Alaska is amended by                                                            
adding a new section to read:                                                                                                   
     TRANSITION: REGULATIONS. The Department of Natural                                                                         
Resources shall adopt regulations necessary to implement                                                                        
AS 03.20.200 and 03.20.210, enacted by sec. 2 of this Act. The                                                                  
regulations take effect under AS 44.62 (Administrative Procedure                                                                
Act), but not before the effective date of the law implemented by the                                                           
regulation."                                                                                                                    
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 6, line 13:                                                                                                                
     Delete "Sections 1 - 3"                                                                                                    
     Insert "Sections 1, 5, and 6"                                                                                              
                                                                                                                                
Page 6, line 14:                                                                                                                
     Delete "Section 3 of this Act takes"                                                                                       
     Insert "Sections 2 - 4 and 6 of this Act take"                                                                             
                                                                                                                                
Page 6, line 15:                                                                                                                
     Delete "sec. 6"                                                                                                            
     Insert "sec. 10"                                                                                                           
                                                                                                                                
Senator Hughes moved for the adoption of Amendment No. 1. Senator                                                               
Begich objected, then withdrew his objection. There being no further                                                            
objection, Amendment No. 1 was adopted.                                                                                         
                                                                                                                                

2022-05-16                     Senate Journal                      Page 2804
Senators Reinbold, Gray-Jackson, Costello, Shower, Stevens,                                                                     
Kawasaki, Revak moved and asked unanimous consent to be shown as                                                                
cross sponsors on the bill. Without objection, it was so ordered.                                                               
                                                                                                                                
SENATE CS FOR CS FOR HOUSE BILL NO. 298(CRA) am S was                                                                           
automatically in third reading.                                                                                                 
                                                                                                                                
The question being: "Shall SENATE CS FOR CS FOR HOUSE BILL                                                                      
NO. 298(CRA) am S "An Act 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" pass the                                                              
Senate?" The roll was taken with the following result:                                                                          
                                                                                                                                
SCS CSHB 298(CRA) am S                                                                                                          
Third Reading - Final Passage                                                                                                   
Effective Date(s)                                                                                                               
                                                                                                                                
YEAS:  20   NAYS:  0   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Begich, Bishop, Costello, Gray-Jackson, Hoffman, Holland,                                                                
Hughes, Kawasaki, Kiehl, Micciche, Myers, Olson, Reinbold, Revak,                                                               
Shower, Stedman, Stevens, von Imhof, Wielechowski, Wilson                                                                       
                                                                                                                                
and so, SENATE CS FOR CS FOR HOUSE BILL NO. 298(CRA)                                                                            
am S passed the Senate.                                                                                                         
                                                                                                                                
Senator Hughes moved and asked unanimous consent the vote on the                                                                
passage of the bill be considered the vote on the effective date                                                                
clause(s). Without objection, it was so ordered and the bill was                                                                
referred to the Secretary for engrossment.