Legislature(2013 - 2014)BARNES 124
04/01/2014 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB379 | |
| HB238 | |
| HB317 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 379 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 238 | TELECONFERENCED | |
| += | HB 317 | TELECONFERENCED | |
HB 238-PROCUREMENT PREF: AK GROWN FISH/AG PRODS
9:10:30 AM
CO-CHAIR LEDOUX announced that the next order of business would
be the SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 238, "An Act
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
legislative oversight of those procurement preferences; and
providing for an effective date."
9:11:21 AM
REPRESENTATIVE FOSTER moved to adopt the CS to SSHB 238, labeled
28-LS1167/N, as the working document.
CO-CHAIR LEDOUX objected for purposes of discussion.
REPRESENTATIVE GERAN TARR, Alaska State Legislature, said the
bill in front of the committee contains the changes that were
adopted at the last meeting. She said that the first change to
HB 238 removes the audit section, and the second change moves
the effective date up. She noted that there is a handout
related to the fiscal note.
9:12:46 AM
REPRESENTATIVE FOSTER said he totally supports the idea of
supporting Alaska industries. He asked if a school district
would be required to purchase [Alaska] products, as long as the
price did not exceed the price of Outside goods by 12 percent,
and then that would increase school costs. He pointed out the
issues of [base student allocations] and school funding.
REPRESENTATIVE TARR said that school food purchases are funded
by the Farms-to-School program, and HB 238 merely provides
purchasing flexibility. She added, "We would hope that with
that additional price flexibility that for products that are
available, they would purchase them."
9:14:15 AM
REPRESENTATIVE FOSTER asked if the [Farms-to-School program]
fund needs to be increased.
REPRESENTATIVE TARR noted that the timeline she just provided to
the committee will show where the costs might show up. In May
or June of this year, she said, the bill could be signed into
law, and then in the summer and fall, "we" would work with the
Department of Agriculture Farm Service Agency and its networks.
There are electronic newsletters and the Alaska Grown Booklet to
communicate with purchasers and sellers, she said. As budgets
are finalized in the fall-and if new products and vendors come
in through the program-that is when there might be changes in
the budget. But, she added, "it could be true that it's just a
shifting in costs, where some of the purchasing is now Alaska-
grown products that replace products that were purchased
Outside." There may not be an overall increase from HB 238, it
just might be that [the state] is paying a little bit more for
Alaska products, she explained.
9:15:45 AM
CO-CHAIR LEDOUX said if [the state] is paying a little more for
the products, why would there not be an increase?
REPRESENTATIVE TARR said it would be part of overall food
purchasing, and the buyers could shift purchases so that there
would not be an overall increase.
9:16:36 AM
CO-CHAIR LEDOUX asked about the school districts, because they
would be required to buy those Alaska items that are less than
12 percent over the cost of non-Alaska foods-so it would impact
those budgets.
REPRESENTATIVE TARR said it would for those particular items,
but it would not necessarily impact the overall budget. "It may
mean that they are buying Alaska-grown products that they
weren't buying before, because the price was a limiting factor.
It doesn't necessarily mean that they didn't find efficiencies
in their other purchases that allowed them to just essentially
cost shift around in their overall items that they buy."
9:17:26 AM
REPRESENTATIVE FOSTER inquired as to the position of the school
districts regarding HB 238.
REPRESENTATIVE TARR said she worked with the Division of
Agriculture, which is the sponsor of the Farm-to-School program,
and it has been supportive of the bill.
REPRESENTATIVE HERRON asked if the calculation is pre or post
FOB. If a school district wants to buy a product "and it is bid
FOB-in other words, you have to deliver it to us.... "
REPRESENTATIVE TARR said she assumes it would be pre FOB.
REPRESENTATIVE HERRON said there is a significant difference.
9:18:41 AM
REPRESENTATIVE HERRON asked if Representative Tarr has "actually
looked at what it costs to buy product outside of the delivery
system of agricultural products harvested in the state and
fisheries products harvested in the state comparing when we buy
it from outside. Is that comparable?"
REPRESENTATIVE TARR said large-scale purchases tend to be less
expensive through the large companies like Cisco. It has been a
challenge for Alaskan farmers to get into those distribution
chains and be able to provide that reliable amount each week.
She recalled the comments that were made [in the last hearing]
that the hope is to build more reliability in the food system.
9:20:16 AM
CO-CHAIR LEDOUX said this is not a new program, it just changes
the percentage from 7 percent to 12 percent, "so whatever it's
doing with the FOB, et cetera, it's no change." She asked where
the 12 percent figure came from.
REPRESENTATIVE TARR said it came from conversations with farmers
regarding prices, and this is a 5 percent increase, which seemed
to be a reasonable first step. This was a priority of the
Alaska Food Policy Council, because it views HB 238 as a way to
achieve the goal of strengthening food systems and security in
Alaska and to increase Alaska-grown purchases.
REPRESENTATIVE HERRON asked if Representative Tarr would
consider HB 238 as Alaskan-hire legislation.
REPRESENTATIVE TARR said she had not thought about it, but she
does believe there are great opportunities and more Alaska hire.
9:22:11 AM
REPRESENTATIVE REINBOLD said she does not want to increase
school budgets. She said she is a huge supporter of Alaska
Grown, especially if Alaska encounters a food crisis. She noted
that Alaska food is a lot fresher and healthier-and tastes
better. She said she thinks HB 238 could decrease shipping, and
that is important. The legislation may increase jobs in Alaska.
Her understanding of the bill, she said, is it just allows 5
percent more flexibility to purchase Alaska-grown products.
REPRESENTATIVE TARR agreed, and it allows for that increased
price flexibility, and we will see if the market can meet that
demand, otherwise, foods will keep being purchased from Outside.
9:23:35 AM
REPRESENTATIVE REINBOLD stated that if the program works, there
is potential for the prices to decrease.
REPRESENTATIVE FOSTER noted that HB 238 is supposed to provide
more flexibility, but on page 1, Section 1(a), it says "shall".
REPRESENTATIVE TARR said, "shall to the extent that those
products are available," and "that's what we're trying to
accomplish here is creating more product availability that would
fulfill the needs of those larger institutional purchasers and
by having additional price flexibility that can help accomplish
that goal."
9:24:37 AM
CO-CHAIR LEDOUX gave an example of a limited budget, like $100,
and Alaska-grown sweet potatoes are 12 percent over the market
price, and then she suggested prices might increase if Alaska-
grown food can be sold at 12 percent over market price. Then
municipalities might buy less Alaska-grown products, she
surmised.
REPRESENTATIVE TARR said she had not considered that as a
potential outcome. The Alaska-grown produce that is available
has established prices, and to increase prices would work
against those sellers. She believes there will be market
pressure to keep prices reasonable, but the prices reflect that
Alaska-grown products come from smaller farms, she said.
REPRESENTATIVE KITO III said that it seems like HB 238 will
provide an opportunity for smaller Alaska businesses to be
competitive.
9:27:50 AM
DANNY CONSENSTEIN, State Director, Department of Agriculture,
Farm Service Agency Alaska and member of the Alaska Food Policy
Council, said the Alaska Food Policy Council has the goal of
strengthening food stability in the state. He noted that
probably 95 percent of foods Alaskans eat come from Outside. If
Alaska purchased more Alaskan food, the economic benefits would
include job opportunities, supporting small entrepreneurs who
are in the food business, and keeping more food dollars in the
community, he added. He noted the health benefits and spoke of
the costs of health-related diseases and the lack of fresh
vegetables in village markets. He said the bill will have
educational benefits as school children can see that food comes
from the ground, not from a package. He said that one out of
five children go to school hungry, and Alaska is not prepared
for emergencies, so there is lack of food security because of
the lack of a food system. The bill is just one little piece of
building a stronger food system by having the state play a
larger role as a purchaser, he noted. If the state can become
more of a driver, then it can create more of a market for
Alaska-grown food, and, thus, there will be incentive to expand
and to add new entrants. As the supply increases, there will be
an economy of scale, he said, and prices will come down. The
larger vegetable producers in Alaska will currently match
outside prices, and "so why wouldn't a state agency or a school
district purchase that?"
9:34:45 AM
REPRESENTATIVE CHRIS TUCK, Alaska State Legislature, recalled
some of the past agricultural resolutions in the legislature,
and on this subject alone, every single member in the House
spoke, because it is a passionate issue and something where all
Alaskans want to see more done. He said this is a step in right
direction, to sustain the state and to provide better nutrition
in Alaska schools. He noted that attempts for local hire
preferences have been found unconstitutional, but one thing that
has been successful is Alaska's procurement policies for Alaska
businesses. This step is to make sure that products grown and
produced in Alaska have a preference with state procurement, and
such policies have been proven and tested. He said he likes HB
238; Alaska needs to be self-reliant with food.
9:37:20 AM
CO-CHAIR LEDOUX closed public testimony and removed her
objection, therefore Version N was before the committee.
CO-CHAIR NAGEAK moved to report the committee substitute to SSHB
238, labeled 28-LS1167/N, out of committee with individual
recommendations and the accompanying fiscal notes. There being
no objection, CSSSHB 238(CRA) was reported from the House
Community and Regional Affairs Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 379.pdf |
HCRA 4/1/2014 8:00:00 AM |
HB 379 |
| HB 379 Sponsor Statement.pdf |
HCRA 4/1/2014 8:00:00 AM |
HB 379 |
| HB 379 Sectional Analysis.pdf |
HCRA 4/1/2014 8:00:00 AM |
HB 379 |
| HB 379 Letter of Support.pdf |
HCRA 4/1/2014 8:00:00 AM |
HB 379 |
| HB 379 13 Tax.pdf |
HCRA 4/1/2014 8:00:00 AM |
HB 379 |
| HB 238 ver N.pdf |
HCRA 4/1/2014 8:00:00 AM |
HB 238 |