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HB 60                                                                                                                         
HOUSE BILL NO. 60 by the House Rules Committee by request of                                                                    
the Governor, entitled:                                                                                                         
                                                                                                                                

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     "An Act relating to municipal and state procurement preferences                                                            
     for agricultural products harvested in the state and fisheries                                                             
     products harvested or processed in the state; and providing for an                                                         
     effective date."                                                                                                           
                                                                                                                                
was read the first time and referred to the House Special Committee on                                                          
Fisheries and the Labor & Commerce Committee.                                                                                   
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1. Zero, Dept. of Administration                                                                                                
2. Zero, Dept. of Commerce, Community, & Economic                                                                               
 Development                                                                                                                    
                                                                                                                                
The Governor's transmittal letter dated January 21 follows:                                                                     
                                                                                                                                
"Dear Speaker-Elect Edgmon:                                                                                                     
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill to increase purchase limits under                                                        
the Alaska-grown procurement policy and preference. In order to                                                                 
support Alaska businesses and to foster food security in the state, this                                                        
bill would increase allowable price differentials for the state,                                                                
municipalities, and school districts to purchase more Alaskan                                                                   
agricultural and fisheries products. Alaskan food producers often face                                                          
cost barriers to market access and have long advocated for increased                                                            
institutional purchases as a means to scale up production and keep                                                              
state dollars circulating in the Alaska economy. Expanding access to                                                            
institutional markets has also been supported by stakeholder groups                                                             
and was among the recommendations of the Governor’s Food Security                                                               
and Independence Task Force final report released in February 2023.                                                             
                                                                                                                                
When state agencies, municipalities, and school districts that receive                                                          
state funds purchase agricultural and fisheries products, state law                                                             
requires that they purchase in-state products so long as those products                                                         
are priced no more than seven percent higher than equivalent products                                                           
available from out-of-state sellers. State law further authorizes state                                                         
agencies and corporations, municipalities, and school districts to                                                              
purchase in-state products that are priced up to 15 percent higher than                                                         
out-of-state equivalents.                                                                                                       

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This bill would increase the purchase price differential for required in-                                                       
state purchases by state agencies, municipalities, and school districts                                                         
from seven percent to 10 percent and the differential for permissible                                                           
in-state purchases from 15 percent to 25 percent.                                                                               
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Mike Dunleavy                                                                                                                   
Governor"