Legislature(2021 - 2022)
2022-05-16 Senate Journal
Full Journal pdf2022-05-16 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.