Legislature(2023 - 2024)BELTZ 105 (TSBldg)
05/11/2024 09:00 AM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB251 | |
| HB189 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 251 | TELECONFERENCED | |
| += | HB 189 | TELECONFERENCED | |
HB 251-EXEMPTIONS FOR HOMEMADE FOODS
[Contains discussion of SB 211]
12:20:41 PM
CHAIR BJORKMAN announced the consideration of CS FOR HOUSE BILL
NO. 251(L&C) am "An Act exempting certain foods and drinks
prepared in an uninspected kitchen from state labeling,
licensing, packaging, permitting, and inspection requirements;
and permitting a person to acquire meat from a producer by way
of an ownership share in an animal if certain conditions are
met."
CHAIR BJORKMAN noted that a Senate committee substitute for HB
251 which was the result of merging HB 251 with SB 211, also
known as the crop act, was before the committee.
12:21:06 PM
CHAIR BJORKMAN solicited a motion.
12:21:08 PM
SENATOR GRAY-JACKSON moved to adopt the Senate committee
substitute (SCS) for CSHB 251, work order 33-LS0888\R, as the
working document.
12:21:17 PM
CHAIR BJORKMAN objected for purposes of explanation. He invited
Ms. Miller and Ms. Koeneman to explain the changes to HB 251.
12:21:48 PM
CRYSTAL KOENEMAN, Legislative Liaison, Office of the
Commissioner, Department of Environmental Conservation, Juneau,
Alaska, introduced herself.
12:21:58 PM
RENA MILLER, Special Assistant, Office of the Commissioner,
Department of Natural Resources, Anchorage, Alaska, introduced
herself and presented a conceptual overview of changes to HB
251. She referred to SB 211, the Crop Act, and noted that the
Senate Labor and Commerce Standing Committee reported SB 211
[April 29, 2024].
• Section one of SB 211 [which was included in HB 251]
reduced the quorum requirement of the seven-member Board of
Agriculture and Conservation from five to four. She said
this would allow the board to conduct their business more
effectively. She noted that a key function of the Board of
Agriculture and Conservation business is making loans from
the agricultural revolving loan fund.
• Section two of HB 251 would expand the types of things for
which the Board of Agriculture [and Conservation] can
approve loans. Under HB 251 the board could approve loans
to individual residents, partnerships or corporations. She
said specific activities added to HB 251 [for loan
eligibility] were both transportation and manufacturing. HB
251 would also allow the board to use the [revolving loan]
fund to refinance debt incurred through other borrowing
tools.
• Section three [of HB 251] would increase the maximum amount
of loans that any one individual can have at any one point
in time, from $1 million, which was set several decades
ago, to $3 million. HB 251 would adjust the cap for
inflation to be proactive about future needs.
12:23:34 PM
• Section four would remove some statutory caps limiting
short-term loans for certain activities, and instead, would
ask the Board of Agriculture and Conservation to set those
loans in regulation.
• Section five would increase the maximum farm product
processing loan from $250,000 to $500,000. She noted this
limit was set decades ago and that the intent [of raising
the cap] was to keep up with the modern environment.
• Section six would remove the statutory cap for loans
related to clearing land and asks the board of agriculture
to set those in regulation.
• Section eight would allow the Board of Agriculture and
Conservation and DNR to adopt regulations for those
provisions.
• Sections 9, 10 and 11 provide effective dates for the new
provisions.
12:24:26 PM
SENATOR GRAY-JACKSON asked for confirmation that the summary of
changes Ms. Miller presented was the same content as the summary
of changes presented [for SB 211].
12:24:38 PM
MS. MILLER said there was one minor modification. She referred
to the committee substitute for HB 251, page 2. She explained
that, when a previous committee added in-state manufacturing and
costs of shipping [to allowable items for loans] they were added
in an order that would not have allowed shipping in relation to
manufacturing. She said the solution was to move manufacturing
[to a position] above transportation in the list of things that
can be loaned for so that shipping would apply to manufacturing
and other provisions already [approved] in statute.
12:25:31 PM
SENATOR GRAY-JACKSON asked for confirmation that [the change to
allow loan consideration for shipping] was the only deviation
from the summary of changes presented [for SB 211].
12:25:39 PM
MS. MILLER confirmed that [the change to allow loan
consideration for shipping] was the only modification.
12:25:50 PM
CHAIR BJORKMAN asked for an explanation of how SB 211
complemented and was incorporated into HB 251.
12:26:04 PM
MS. KOENEMAN answered that HB 251 provided for the sale of
homemade food for personal consumption, either directly to a
buyer or retail location through a third-party seller, as well
as the sale of items from a farmers' market or a producer's home
and from certain retail locations as well as online orders. She
explained the components that were added [to HB 251] from SB 211
were:
• reducing the quorum requirements for the purpose of
facilitating board business.
• including approving loan applications directly related to
production.
• recommending land designations for agricultural purposes.
• expanding the loan categories to include food manufacturing
and shipping that may be used for third party sales, which
ties into the homemade food producers.
• allowing for loans to be used to cover animal and feed
production and processing, which, she said is related to
the direct care and maintenance of animals for herd share
purposes or for equipment to produce and then sell or ship
homemade foods.
MS. KOENEMAN noted that the provisions from SB 211 that were
included in HB 251 would give additional opportunities for home
producers, as well as the animal share and herd sharing members
to have access to these items. She also noted that none of the
language was changed in HB 251 related to homemade products. She
said there was an effective date of July, 1, 2024, added to
section [10]. She also noted that there was no change to DEC's
fiscal note because of the added language.
12:28:19 PM
CHAIR BJORKMAN removed his objection; found no further objection
and SCS CSHB 251 was adopted as the working document.
12:28:34 PM
At ease
12:29:46 PM
CHAIR BJORKMAN reconvened the meeting and asked for an
explanation of the fiscal notes for HB 251.
12:30:13 PM
MS. KOENEMAN said there was a zero fiscal note from the
Department of Environmental Conservation, OMB Component Number
3202, dated January 26, 2024. She said Department of
Environmental Conservation (DEC) did not anticipate additional
workload or adjustments to their day-to-day operations as a
result of HB 251.
12:30:46 PM
MS. MILLER noted the fiscal note for HB 251 from the Department
of Natural Resources, OMB component number 455, dated May 10,
2024. She said Department of Natural Resources (DNR) anticipated
the need to write regulations for some of the provisions of SB
211 incorporated into HB 251. However, she said DNR believed
existing staff would be sufficient to cover any additional
demand for loans. She noted that the expanded eligibility [for
loans] may drive demand in a significant way as DNR hoped it
would. She said, [in that case] DNR would come back and ask for
additional resources in the future.
12:31:38 PM
CHAIR BJORKMAN solicited the will of the committee.
12:31:42 PM
SENATOR GRAY-JACKSON moved to report the SCS for CSHB 251, work
order 33-LS0888\R, from committee with individual
recommendations and attached fiscal note(s).
12:31:57 PM
CHAIR BJORKMAN objected for purposes of discussion.
12:32:00 PM
CHAIR BJORKMAN expressed strong support for the agricultural
revolving loan fund and emphasized its role in providing loans
to small farmers. He said he believed that HB 251 would further
encourage food production and support small farmers in the state
and commended the work to develop the bill.
12:33:08 PM
CHAIR BJORKMAN removed his objection; found no further objection
and SCS CSHB 251(L&C) was reported from the Senate Labor and
Commerce Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB251 Draft Proposed CS ver R.pdf |
SL&C 5/11/2024 9:00:00 AM |
HB 251 |
| HB251 Memo on Draft CS ver R 24-271boo.pdf |
SL&C 5/11/2024 9:00:00 AM |
HB 251 |
| HB251 Fiscal Note DNR-AGR 05.11.24.pdf |
SL&C 5/11/2024 9:00:00 AM |
HB 251 |
| HB189 Draft Proposed Amendment U.5.pdf |
SL&C 5/11/2024 9:00:00 AM |
HB 189 |