Legislature(2017 - 2018)BARNES 124

02/07/2018 01:00 PM RESOURCES

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Audio Topic
01:46:51 PM Start
01:47:49 PM Presentation(s): Alyeska Pipeline Service Company
02:38:21 PM HB217
03:04:28 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 1:35 PM --
+ Presentation: Transition from Crowley to Edison TELECONFERENCED
Chouest Offshore for Prince William Sound &
Valdez Marine Terminal Prevention & Response by
Alyeska Pipeline Service Company Representatives
-- Testimony <Invitation Only> --
+= HB 217 RAW MILK SALES; FOOD EXEMPT FROM REGS TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
          HB 217-RAW MILK SALES; FOOD EXEMPT FROM REGS                                                                      
                                                                                                                                
2:38:21 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR  announced that the  final order of  business would                                                               
be  HOUSE BILL  NO. 217,  "An Act  relating to  the Alaska  Food,                                                               
Drug,  and Cosmetic  Act;  relating  to the  sale  of milk,  milk                                                               
products, raw milk,  and raw milk products; and  providing for an                                                               
effective date."                                                                                                                
                                                                                                                                
2:39:06 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOSEPHSON  moved to adopt the  committee substitute (CS)                                                               
for HB 217, 30-LS0593\J, Wayne, 2/6/18, as the working document.                                                                
                                                                                                                                
CO-CHAIR TARR objected for discussion purposes.                                                                                 
                                                                                                                                
2:39:31 PM                                                                                                                    
                                                                                                                                
DIANA  RHOADES, Staff,  Representative Geran  Tarr, Alaska  State                                                               
Legislature,  informed the  committee CSHB  217 [Version  J] adds                                                               
provisions from  HB 46 - which  moved out of the  House Resources                                                               
Standing Committee [3/22/17] - ,  would allow the commissioner of                                                               
the  Department of  Natural Resources  (DNR) to  sell promotional                                                               
merchandise related to the Alaska  Grown logo, and encourages the                                                               
state,  schools,  and  municipalities to  purchase  Alaska  Grown                                                               
agricultural  and  fisheries products  at  a  required 7  percent                                                               
preference and up to a 15  percent preference.  Another change in                                                               
HB 217 brought by the committee  substitute is the removal of the                                                               
section related  to raw milk  sales; however, CSHB  217 maintains                                                               
the provisions  to increase farmers' direct-to-consumer  sales by                                                               
implementing the food freedom movement.                                                                                         
                                                                                                                                
MS.  RHOADES paraphrased  from  the  following sponsor  statement                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Section  1    Establishes  Short Title  as Alaska  Food                                                                    
     Freedom Act                                                                                                                
     Concerns  about  states   enforcing  the  federal  Food                                                                    
     Safety  Modernization Act  prompted farmers  across the                                                                    
     country, including  Alaska, to  pass laws  to guarantee                                                                    
     the  freedom  of  farmers  to   sell  directly  to  end                                                                    
     consumers without overwhelming government regulations.                                                                     
     Section 2  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  3    Amends  Food,  Drugs  and Cosmetic  Act's                                                                    
     Prohibited  Acts  Section,  to  allow  exemptions  from                                                                    
     licensing for some in-state food production                                                                                
     Allows  direct  sales  from farmers  to  consumers  for                                                                    
     certain  Alaska  Grown  food  and  food  products  with                                                                    
     appropriate  labeling; allows  online  sales of  value-                                                                    
     added food products; defines farmers' markets.                                                                             
     Section  4      Rewrites  municipal   procurement  code                                                                    
     preference for Alaska Grown agricultural products                                                                          
     If receiving  state money, a municipality  is currently                                                                    
     required to purchase  Alaska Grown agriculture products                                                                    
     if they are priced not  more than seven percent above a                                                                    
     similar  product  harvested  outside  the  state;  this                                                                    
     would  give  flexibility  to purchase  the  product  if                                                                    
     priced  not  more  than  15  percent  above  a  similar                                                                    
     product harvested outside the state.                                                                                       
     Section  5   -  Rewrites  municipal   procurement  code                                                                    
     preference for Alaska-grown fisheries products                                                                             
     If receiving  state money, a municipality  is currently                                                                    
     required to  purchase Alaska Grown seafood  products if                                                                    
     they are  priced not  more than  seven percent  above a                                                                    
     similar  product  harvested  outside  the  state;  this                                                                    
     would  give  flexibility  to purchase  the  product  if                                                                    
     priced  not  more  than  15  percent  above  a  similar                                                                    
     product harvested outside the state.                                                                                       
     CSHB217 (J) Alaska Food  Freedom Act Sectional Analysis                                                                    
     2.7.18                                    Page 2                                                                           
     Section  6    Amends  municipal solicitation  procedure                                                                    
     for  procurement   code  preference   for  Alaska-grown                                                                    
     agricultural and fisheries products                                                                                        
     If  receiving   state  money,   a  solicitation   by  a                                                                    
     municipality   for  the   purchase   of  Alaska   Grown                                                                    
     agriculture and  seafood products must  include written                                                                    
     notice  that these  products must  follow the  rules of                                                                    
     Section  4  and  5.  Further, if  they  don't  purchase                                                                    
     Alaska  Grown  products,  the municipal  officer  shall                                                                    
     certify  in  writing  the   reasons  why  Alaska  Grown                                                                    
     products were not purchased.                                                                                               
     Section 7  - Amends state preferences  for Alaska Grown                                                                    
     agricultural products                                                                                                      
     When agricultural  products are purchased by  the state                                                                    
     or  by a  school  district that  receives state  money,                                                                    
     they are  currently required  to purchase  Alaska Grown                                                                    
     products  if  they  are  priced  not  more  than  seven                                                                    
     percent above  a similar product harvested  outside the                                                                    
     state;  this would  give  flexibility  to purchase  the                                                                    
     product  if priced  not more  than 15  percent above  a                                                                    
     similar product harvested outside the state.                                                                               
     Section 8  - Amends state preferences  for Alaska Grown                                                                    
     fisheries products                                                                                                         
     If fisheries products are purchased  by the state or by                                                                    
     a school  district that receives state  money, they are                                                                    
     currently  required to  purchase Alaska  Grown products                                                                    
     if they are priced not  more than seven percent above a                                                                    
     similar  product  harvested  outside  the  state;  this                                                                    
     gives  flexibility to  purchase the  product if  priced                                                                    
     not  more  than  15  percent above  a  similar  product                                                                    
     harvested outside the state.                                                                                               
     Section  9 -  Amends state  solicitation procedure  for                                                                    
     procurement preferences for  Alaska Grown fisheries and                                                                    
     agricultural products                                                                                                      
     If receiving state money, a  solicitation by a state or                                                                    
     school  district  for  the  purchase  of  Alaska  Grown                                                                    
     agriculture and  seafood products must  include written                                                                    
     notice  that these  products must  follow the  rules of                                                                    
     Sections  7  and 8.  Further,  if  they don't  purchase                                                                    
     Alaska  Grown products,  the officer  responsible shall                                                                    
     certify  in  writing  the   reasons  why  Alaska  Grown                                                                    
     products were not purchased.                                                                                               
     Section 10    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 11  Effective date                                                                                                 
                                                                                                                                
2:43:25 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  TARR removed  her objection.   There  being no  further                                                               
objection, Version J was before the committee.                                                                                  
                                                                                                                                
CO-CHAIR TARR opened public testimony.                                                                                          
                                                                                                                                
2:44:12 PM                                                                                                                    
                                                                                                                                
BRYCE  WRIGLEY, President,  Alaska  Farm Bureau,  Inc., said  the                                                               
Alaska  Farm  Bureau  strongly supports  all  efforts  to  expand                                                               
agricultural opportunities  in Alaska  because as a  young state,                                                               
Alaska has  not had  the opportunity  to build  an infrastructure                                                               
and  establish policies  to help  farmers grow  their businesses.                                                               
In fact,  Alaska imports  approximately 95  percent of  its food,                                                               
and residents only  have a 3- to 5-day supply  of most food items                                                               
in grocery stores.  Bills  like HB 217 would improve agricultural                                                               
policies  and  increase  access and  options  for  consumers  and                                                               
farmers.    Mr.  Wrigley  reported the  Alaska  $5  Alaska  Grown                                                               
Challenge is  a tool to  increase the visibility of  Alaska Grown                                                               
products, and  the bill would  strengthen the  product preference                                                               
program  which would  allow farmers  to  increase production  and                                                               
serve additional markets.  [CSHB  217] provides receipt authority                                                               
for  a  revenue  stream  in support  of  Alaska  Grown  marketing                                                               
materials.   Further,  good agricultural  policies are  important                                                               
because they  will increase opportunities  to get  local products                                                               
to market,  will build the  agricultural industry,  will increase                                                               
food  security,  and  will  create  jobs  in  the  rural  farming                                                               
industry.                                                                                                                       
                                                                                                                                
2:47:16 PM                                                                                                                    
                                                                                                                                
PATRICIA  GRISWOLD,  Grandma's  Gardens, informed  the  committee                                                               
Grandma's  Gardens is  a  greenhouse and  garden  business.   She                                                               
related she  is familiar with  state regulations on  the labeling                                                               
of  products such  as jams  and fresh  produce, and  commented on                                                               
items not on the agenda.                                                                                                        
                                                                                                                                
2:49:55 PM                                                                                                                    
                                                                                                                                
ART GRISWOLD  provided comments on  topics not pertinent  to CSHB
217.                                                                                                                            
                                                                                                                                
2:51:28 PM                                                                                                                    
                                                                                                                                
There  followed a  brief discussion  of topics  not pertinent  to                                                               
CSHB 217.                                                                                                                       
                                                                                                                                
2:54:43 PM                                                                                                                    
                                                                                                                                
MATTHEW BATES provided  comments on topics not  pertinent to CSHB
217, and  spoke in support of  the provision in CSHB  217 related                                                               
to Alaska Grown.                                                                                                                
                                                                                                                                
2:56:32 PM                                                                                                                    
                                                                                                                                
DANNY  CONSENSTEIN, Representative,  Alaska  Food Policy  Council                                                               
(AFPC), said AFPC  is a coalition of Alaskans  striving to create                                                               
a  healthier,  more  secure,  and  more  self-reliant  Alaska  by                                                               
improving   its  food   system.     [AFPC]  represents   farmers,                                                               
fishermen,   food  businesses,   schools,  government   agencies,                                                               
nonprofits, subsistence users, and consumers  in Alaska.  He said                                                               
AFPC  is pleased  that the  legislature is  now recognizing  food                                                               
issues  are a  priority.   HB  217 recognizes  the critical  role                                                               
played by farmers  markets - and other direct  sales to consumers                                                               
- to  create a  market for  agricultural and  fishing businesses.                                                               
In fact, AFPC sees opportunities  to create jobs and to diversify                                                               
the  economy  by  supporting food-related  small  businesses  and                                                               
retain some of  the $1.9 billion that is spent  on imported food.                                                               
In  2014, AFPC  published a  report that  revealed $1  out of  $5                                                               
earned by Alaska farmers is  earned through direct sales, and the                                                               
direct sales market is growing;  at this time annual direct sales                                                               
are  $2.2  million annually.    Mr.  Constantine explained  large                                                               
industrial-scale  agribusiness is  not necessary  to achieve  the                                                               
goal of more  Alaskans eating Alaska Grown food,  and he provided                                                               
an example.   He also expressed support for  state procurement of                                                               
local products.                                                                                                                 
                                                                                                                                
3:03:02 PM                                                                                                                    
                                                                                                                                
JOHANNA HERRON,  Coordinator, Marketing,  Alaska Grown &  Farm to                                                               
School,  Division  of  Agriculture, DNR,  regarding  the  receipt                                                               
authority  [provision in  CSHB 217],  informed the  committee the                                                               
division has historically had to  find federal funding to provide                                                               
marketing supplies  to farmers;  however, farmers  have expressed                                                               
interest in buying supplies wholesale from the division.                                                                        
                                                                                                                                
3:03:56 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  TARR announced  public  testimony for  HB 217  remained                                                               
open.                                                                                                                           
                                                                                                                                
HB 217 was held over.                                                                                                           

Document Name Date/Time Subjects
HB217 Version A 4.16.17.PDF HRES 4/17/2017 1:00:00 PM
HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HB 217
HB217 Supporting Document - Sponsor Presentation - Alaska Food Freedom 1-31-18.pdf HRES 1/31/2018 1:00:00 PM
HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HB 217
HB217 Supporting Document - Benefits of Farmers Markets 2017 1.30.18.pdf HRES 1/31/2018 1:00:00 PM
HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HB 217
HB217 Supporting Document - Article Natural News 4.16.17.pdf HRES 1/31/2018 1:00:00 PM
HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HB 217
HB217 Supporting Document - Alaska Chamber Endorses Food Freedom 10.12.17.pdf HRES 1/31/2018 1:00:00 PM
HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HRES 2/16/2018 1:00:00 PM
HB 217
HB217 Fiscal Note - DEC-EH 1.26.18.pdf HRES 1/31/2018 1:00:00 PM
HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HRES 2/16/2018 1:00:00 PM
HB 217
HB217 Fiscal Note - DEC-EHL 1.26.18.pdf HRES 1/31/2018 1:00:00 PM
HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HRES 2/16/2018 1:00:00 PM
HB 217
HB217 New Sponsor Statement - Alaska Food Freedom 1.30.18.pdf HRES 1/31/2018 1:00:00 PM
HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HB 217
HB217 Supporting Document - Building Food Security in Alaska 7.28.14.pdf HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HB 217
HB217 Supporting Document - 2017+AFPC-infographic 2.7.18.pdf HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HB 217
HRES Alyeska Barrett Remarks 2.7.18.pdf HRES 2/7/2018 1:00:00 PM
Alyeska
HB217 (CS) Version J 2.6.18.pdf HRES 2/7/2018 1:00:00 PM
HRES 2/14/2018 1:00:00 PM
HRES 2/16/2018 1:00:00 PM
HB 217
HB217 CS Version J - Sectional Analysis 2.7.18.pdf HRES 2/7/2018 1:00:00 PM
HRES 2/16/2018 1:00:00 PM
HB 217
HRES Alyeska - Barrett Slide Presentation 2.7.18.pdf HRES 2/7/2018 1:00:00 PM
Alyeska