HB 296-AGRICULTURAL PRODUCTS/LOANS/SALES  1:30:03 PM CHAIR MCKAY announced that the first order of business would be HOUSE BILL NO. 296, "An Act relating to the powers of the board of agriculture and conservation; relating to loans and limitations under the Alaska Agricultural Loan Act; relating to federal crop insurance contributions; 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." 1:30:19 PM CHAIR MCKAY opened public testimony on HB 296. 1:30:34 PM SCOTT MUGRAGE, President, Alaska Farm Bureau, Owner, Mugrage Hay & Cattle, offered his support for HB 296 but expressed concern about the crop insurance portion of the bill, which focused primarily on the grain production in Alaska. He alluded to an expansion of federal crop insurance for specialty crops that fit the state more broadly and said he wished to see a segway of this being included in the bill. He noted his other concern was with the product preference portion of the bill and opined it still needed more work. He further noted that the price of Alaska-grown products is problematic. There needed to be a connection between wholesalers and farmers, he advised, and negotiations need to transpire. He pointed out that the pilot project was for five years and expressed that he thought the timeframe was too short. 1:36:24 PM REPRESENTATIVE RAUSCHER referenced the five-year time frame and asked Mr. Mugrage if he had a suggestion. MR. MUGRAGE recommended a seven- to ten-year range. 1:36:54 PM REPRESENTATIVE SADDLER asked Mr. Mugrage for his opinion on the percentage of the product preference having a 7 percent cap. MR. MUGRAGE opined that there was actually 15 percent for individual crops. He stated he was in agreement with having a cap. 1:37:59 PM CHAIR MCKAY acknowledged the hard work of those farming Alaska land. 1:39:07 PM The committee took a brief at-ease at 1:39 p.m. 1:39:15 PM ROBBI MIXON, Executive Director, Alaska Food Policy Council, testified in support of HB 296 but offered recommendations to make it stronger so it could work better for the state's farmers. Areas of concern were loan eligibility, crop insurance, and the Division of Agriculture to explore ways to engage the Board of Agriculture and Conservation as necessary to increase participation in decision-making. She recommended delaying procurement until July 2025 and expressed her support for the committee's efforts. 1:44:11 PM SHANNON CARROLL, Director, Alaska Public Affairs and Fisheries Development, Trident Seafoods, testified in support of HB 296 and expressed that the company was aligned with the bill's intent. He noted 2023 was a challenging year for the fishing industry and he appreciated the governor introducing the bill. He pointed out how the proposed legislation could improve many areas in the fishing industry and communities. 1:45:39 PM REPRESENTATIVE MEARS referred to testimony about delayed implementation of the procurement section, and asked Mr. Carroll whether it would affect him. MR. CARROLL replied that he did not have any recommendations for changes in the bill. 1:47:00 PM BEN ADAMS, representing self, related that he was a farmer and a rancher, and for the last 25 years, a licensed attorney. He noted his disbelief at obstacles placed on him as a farmer. He said he was supportive of the bill but pointed out Sections 17 and 18 expressed concern regarding a confusing conflict related to procurement. He said it may be clear to those who drafted it, but he was unsure what it meant. He stressed that Section 18 mentioned a "preference" and he wished for clarification on the meaning. He emphasized the expense of caring for his cattle, especially during the winter. He said he was thankful that the legislature was taking food security more seriously. 1:50:18 PM REPRESENTATIVE SADDLER ventured to add clarity to Mr. Adams concerns. He said Section 17 takes effect in 2024, and Section 18 would take effect in 2029, and no cap would be there for five years; however, he could not speak for the [bill] sponsor. 1:51:04 PM REPRESENTATIVE MEARS clarified that the language reverted back to the original HB 296. 1:52:07 PM NICK MANGINI, Kelp Farmer, Kodiak Island Sustainable Seaweed, offered his support for HB 296 because mariculture in general slows ocean acidification, filtration, and warming of the waters. He noted the ways the bill could help in several areas, including university studies, bio-stimulants, and the dependence on kelp. He encouraged the passing of HB 296. 1:53:55 PM CHAIR MCKAY, after ascertaining no one else wished to testify, closed public testimony on HB 296. CHAIR MCKAY announced that HB 296 was held over.