Legislature(2017 - 2018)SENATE FINANCE 532
04/25/2018 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB306 | |
| HB47 | |
| HB217 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 306 | TELECONFERENCED | |
| + | HB 47 | TELECONFERENCED | |
| + | HB 217 | TELECONFERENCED | |
| + | TELECONFERENCED |
CS FOR HOUSE BILL NO. 217(FIN)
"An Act relating to civil liability for risks inherent
in farm touring; relating to the state and municipal
procurement preferences for agricultural products
harvested in the state and fisheries products
harvested or processed in the state; relating to
merchandise sold and certain fees charged or collected
by the Department of Natural Resources; and providing
for an effective date."
10:34:29 AM
REPRESENTATIVE GERAN TARR, SPONSOR, believed that issues
related to agriculture were important in discussions about
diversifying the state's economy. She offered background
information from the Sponsor Statement:
More than 95% of Alaska's food is imported, yet
farmers in Alaska are ready and motivated to increase
production. From 2007 to 2012, direct sales in Alaska
grew by 32% - 13 times the national average.
In 2017, the Farm Bureau and Division of Agriculture
launched a statewide campaign to encourage every
Alaskan to spend just $5/week on Alaska Grown
products, year-round, to generate $188 million for
Alaska's economy.
Retailers include Carrs-Safeway, Walmart, Fred Meyer,
and Save-U-More. With expectations of further market
growth in 2018, Bell's Nursery plans to increase
production of tomatoes and cucumbers by 20 percent and
the Alaska Flour Company added products to 23
additional retailers throughout the state.
Alaska's farmers markets are also growing. In 2005 the
Division of Agriculture listed 13 markets in Alaska.
In 2014 that number grew to 37, and in 2017, there
were 41, with more in planning stages. Market sales
include:
? Tanana Valley Farmers Market (Fairbanks) -
$1.25 million
? Homer Farmers Market (Homer)- $500,000
? Kodiak Farmers Market (Kodiak) - $100,000
? Mountain View Farmers Market (neighborhood
market in Anchorage) - $19,000
Representative Tarr discussed the genesis of the bill. She
said that the effort was to increase direct producer to
consumer sales, eliminating the need for a middle man. She
shared that the Department of Environmental Conservation
was working with farmers on a pilot program for expanded
sales of cottage food products online.
Representative Tarr stated that as the bill transitioned,
short term policy changes that would benefit farmers came
to light. She discussed the receipt authority for the
Department of Natural Resources to collect the fee for the
promotional use of the "Alaska Grown" logo. She explained
that the department would buy more promotional Alaska Grown
materials wholesale and then distribute them to farmers.
She added that the department would reinvest proceeds from
the materials into the Alaska Grown program.
Representative Tarr discussed procurement, which she had
worked on for four years. She spoke of the Alaska Product
Procurement Preference statue, which said that a state
procurement officer buying food product would be directed
to buy the lowest priced product but could spend up to 7
percent more on Alaskan products. She said that she had
requested an audit of the statute in order to fully
evaluate the effectiveness of the statute. She relayed that
the audit revealed several challenges: the price problem,
getting farmers on the preferred vendors list, and not
having enough seasonal availability. She shared that the
bill added "may spend" up to 15 percent. She stressed that
the bill did not require additional spending but would make
purchasing Alaskan grown products easier.
10:40:49 AM
Representative Tarr used the example of an anchor tenant
and smaller shops in a mall environment. She said that if
farmers had a solid wholesale opportunity, they would be
more likely to sell at a less than retail price because of
the size of the contract. She asserted that farmers would
grow more if they had assurance that their goods would
sell. She believed that the bill would open greater
opportunities for Alaskan farmers and would keep state
dollars in-state. She relayed that there was a new trend in
farm touring and believed that Alaskan could cash in on the
activity. She stated that farm tour language had been added
to statute, with protections form civil liability.
10:44:19 AM
Representative Tarr thought that the activities listed in
the bill were low risk for farmers.
10:45:05 AM
DIANA RHODES, STAFF, REPRESENTATIVE GERAN TARR, addressed
the Sectional Analysis (copy on file):
Section 1 Amends powers of Commissioner of Department
of Natural Resources to sell promotional merchandise
related to the Alaska Grown logo
Allows the Division of Agriculture within the
Department of Natural Resources to issue a
license and charge a license fee for the sale of
promotional merchandise related to the
Alaska Grown logo. The commissioner shall price
the merchandise in a manner that ensures a
reasonable monetary return to the state. It is
encouraged that the merchandise be manufactured
in the US and is procured from either an Alaska
bidder or a person that employs Alaska prison
inmates.
Section 2 Amends Alaska Code of Civic Procedures,
under the section of civil liability for sports and
recreation activities
Provides more freedom from civil liability to
farmers who operate "farm tours"
Section 3 Defines farm touring
Farm touring means briefly visiting a farm to
observe or experience aspects of raising,
growing, producing, cultivating, harvesting, or
processing an agricultural product as a tourist,
without receiving pay.
Sections 4 to 7 Amends multiple sections of existing
statutes providing for the solicitation and purchasing
of Alaska Grown agricultural and seafood products
There currently exists a seven percent state and
municipal preference procurement preference for
Alaska Grown agricultural products harvested in
the state and Alaska
Grown fisheries products harvested or processed
in the state; this would give flexibility to
purchase fisheries and agriculture products if
priced not more than 15 percent above a similar
product harvested outside the state (This
includes entities that receive state money,
including school districts and the university).
Section 8 Amends Public Finance Fiscal Procedures
Act to collect fees
Allows the Commissioner of the Department of
Natural Resources to collect fees for
Alaska Grown promotional merchandise.
Section 9 Effective date for the "farm touring" is
after January 1, 2019.
Section 10 Effective date of the bill is July 1,
2019.
10:46:50 AM
Vice-Chair Bishop commented on the importance of supporting
in-state agriculture. In 1950, Alaska grew 55 percent of
its food. He discussed food security and the importance of
being prepared for emergencies. He noted that Alaskan
products had a greater shelf-life than out-of-state
products.
Senator Stevens commented on seafood products. He thought
that similar interest should be taken in the marketing of
seafood products.
10:49:09 AM
Co-Chair MacKinnon OPENED public testimony.
AMY SEITZ, ALASKA FARM BUREAU, SOLDOTNA (via
teleconference), testified in support of the bill. She
echoed the comments of Vice-Chair Bishop on food security.
She believed that the agriculture industry in the state was
young and needed to build infrastructure and supporting
policy. She lamented that 95 percent of the food in the
state was imported form other states and countries and
there was only a 3 to 5-day supply of most food items on
grocery store shelves. She remarked on language removed
from the bill related to cottage foods industry. She hoped
to work with Department of Environmental Conservation on
the items that had been removed to the bill. She hoped that
the bill would give farmers more opportunity in the product
preference program. She discussed receipt authority. She
thought that the if fees could be collected for the Alaska
Grown marketing items it would help farmers to indicate
that products were Alaskan grown, while supporting the
Division of Agriculture. She highlighted the importance of
public outreach for Alaskan grown products. She hoped to
increase the incentives for the State Procurement Office to
buy Alaska grown and to develop enticement language to get
wholesalers to buy Alaskan grown products.
10:54:36 AM
Ms. Seitz concluded that protecting farmers, who offer farm
tours, from liability should be a priority.
10:55:15 AM
Co-Chair MacKinnon CLOSED public testimony.
CSHB 217(FIN) was HEARD and HELD in committee for further
consideration.
Co-Chair MacKinnon announced that amendments were due the
following day at noon.
Co-Chair MacKinnon discussed the agenda for the afternoon.