Alaska 2023-2024 Regular Session

Alaska House Bill HB251 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Enrolled HB 251
2		-	LAWS OF ALASKA
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4		-	2024
	2	+	HB0251E -1- SCS CSHB 251(L&C) am S
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8		-	Source Chapter No.
9		-	SCS CSHB 251(L&C) am S _______
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13	9
14		-	~~AN ACT~~
	10	+	SENATE CS FOR CS FOR HOU SE BILL NO. 251(L&C) am S
15	11
16		-	Relating to the Board of Agriculture and Conservation; relating to loans and limitations under
17		-	the Alaska Agricultural Loan Act; exempting certain foods and drinks prepared in an
18		-	uninspected kitchen from state labeling, licensing, packaging, permitting, and inspection
19		-	requirements; permitting a person to acquire meat from a producer by way of an ownership
20		-	share in an animal if certain conditions are met; and providing for an effective date.
	12	+	IN THE LEGISLATURE OF THE STATE OF ALASKA
21	13
	14	+	THIRTY-THIRD LEGISLATURE - SECOND SESSION
22	15
23		-	~~_______________~~
	16	+	BY THE SENATE LABOR AND COMMERCE COMMITTEE
24	17
	18	+	Amended: 5/14/24
	19	+	Offered: 5/11/24
25	20
26		-	~~BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA~~:
	21	+	Sponsor(s): REPRESENTATIVES RAUSCHER, Wright, Armstrong, Mears, Vance, Tomaszewski, Josephson
27	22
	23	+	SENATORS Myers, Hughes, Bjorkman, Shower
	24	+	A BILL
28	25
	26	+	FOR AN ACT ENTITLED
29	27
30		-	THE ACT FOLLOWS ON PAGE 1
31		-	-1- Enrolled HB 251
	28	+	"An Act relating to the Board of Agriculture and Conservation; relating to loans and 1
	29	+	limitations under the Alaska Agricultural Loan Act; exempting certain foods and drinks 2
	30	+	prepared in an uninspected kitchen from state labeling, licensing, packaging, permitting, 3
	31	+	and inspection requirements; permitting a person to acquire meat from a producer by 4
	32	+	way of an ownership share in an animal if certain conditions are met; and providing for 5
	33	+	an effective date." 6
	34	+	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 7
	35	+	* Section 1. AS 03.09.030 is amended to read: 8
	36	+	Sec. 03.09.030. Quorum. Four [FIVE] members of the Board of Agriculture
	37	+	9
	38	+	and Conservation constitute a quorum for the transaction of business or the exercise of 10
	39	+	a power or function at a meeting of the board. 11
	40	+	* Sec. 2. AS 03.10.020(a) is amended to read: 12
	41	+	(a) The Board of Agriculture and Conservation (AS 03.09.010) may 13 33-LS0888\R.A
	42	+	SCS CSHB 251(L&C) am S -2- HB0251E
	43	+	New Text Underlined [DELETED TEXT BRACKETED]
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51		-
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53		-
54		-	AN ACT
55		-
56		-
57		-	Relating to the Board of Agriculture and Conservation; relating to loans and limitations under 1
58		-	the Alaska Agricultural Loan Act; exempting certain foods and drinks prepared in an 2
59		-	uninspected kitchen from state labeling, licensing, packaging, permitting, and inspection 3
60		-	requirements; permitting a person to acquire meat from a producer by way of an ownership 4
61		-	share in an animal if certain conditions are met; and providing for an effective date. 5
62		-	_______________ 6
63		-	* Section 1. AS 03.09.030 is amended to read: 7
64		-	Sec. 03.09.030. Quorum. Four [FIVE] members of the Board of Agriculture
65		-	8
66		-	and Conservation constitute a quorum for the transaction of business or the exercise of 9
67		-	a power or function at a meeting of the board. 10
68		-	* Sec. 2. AS 03.10.020(a) is amended to read: 11
69		-	(a) The Board of Agriculture and Conservation (AS 03.09.010) may 12
70		-	Enrolled HB 251 -2-
71	45		(1) make a loan to 1
72	46		(A) an individual resident farmer, homesteader, or a partnership 2
73	47		or corporation composed of farmers and homesteaders for 3
74	48		(i) clearing land for agricultural purposes; 4
75	49		(ii) development of farms; 5
76	50		(iii) storage and processing of farm produce; [OR] 6
77	51		(iv) the purchase of livestock or machinery; 7
78	52		(v) in-state manufacturing of food or production of 8
79	53		animal feed; or 9
80	54		(vi) the cost of shipping to and within the state for 10
81	55		the purposes listed in (i) - (v) of this subparagraph; 11
82	56		(B) an individual state resident, or a partnership or corporation 12
83	57		for 13
84	58		(i) storage and processing plants for agricultural 14
85	59		products; 15
86	60		(ii) the commercial production or processing of 16
87	61		horticultural products in the state; 17
88	62		(iii) the commercial production or processing of animal 18
89	63		feed in the state; [OR] 19
90	64		(iv) the raising or care of animals in the state for the 20
91	65		purpose of marketing their fur; 21
92	66		(v) in-state manufacturing of food or production of 22
93	67		animal feed; or 23
94	68		(vi) the cost of shipping to and within the state for 24
95	69		the purposes listed in (i) - (v) of this subparagraph; 25
96	70		(2) designate agents and delegate its powers to them as necessary; 26
97	71		(3) adopt regulations necessary to carry out its functions, including 27
98	72		regulations to establish reasonable fees for services provided and charges for 28
99	73		collecting the fees; 29
100	74		(4) establish amortization plans for repayment of loans, which may 30
101		-	include delayed payments of principal and interest for not to exceed five years; 31
102		-	-3- Enrolled HB 251
	75	+	include delayed payments of principal and interest for not to exceed five years; 31 33-LS0888\R.A
	76	+	HB0251E -3- SCS CSHB 251(L&C) am S
	77	+	New Text Underlined [DELETED TEXT BRACKETED]
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103	79		(5) enter into agreements with private lending institutions, other state 1
104	80		agencies, or agencies of the federal government to carry out the purposes of this 2
105	81		chapter; 3
106	82		(6) collect the fees and collection charges established under this 4
107	83		subsection; 5
108	84		(7) refinance a debt obligation incurred by a borrower under this 6
109	85		section or through another lender for a purpose authorized under (1) of this 7
110		-	subsection if the borrower otherwise qualifies for a loan under this chapter. 8
111		-	* Sec. 3. AS 03.10.030(a) is amended to read: 9
112		-	(a) A [THE] farm development, chattel, or irrigation loan made under this 10
113		-	chapter 11
114		-	(1) may not exceed a term of 30 years, except that a chattel loan may 12
115		-	not exceed a term of seven years; 13
116		-	(2) may not, when added to the outstanding balance of other loans 14
117		-	made under this chapter, exceed a total outstanding balance of $3,000,000, adjusted 15
118		-	annually for inflation on July 1 of each year based on the percentage increase in 16
119		-	the Consumer Price Index for all urban consumers for urban Alaska during the 17
120		-	previous calendar year, as determined by the United States Department of 18
121		-	Labor, Bureau of Labor Statistics [$1,000,000]; 19
122		-	(3) shall be secured by a real estate or chattel mortgage of any priority, 20
123		-	except that the portion of a loan that exceeds $500,000, when added to prior 21
124		-	indebtedness that is secured by the same property, must be secured by a first 22
125		-	mortgage; 23
126		-	(4) shall bear interest at a fixed rate comparable to that charged by 24
127		-	other agricultural lending institutions in the state for loans similar to those referred to 25
128		-	in this subsection. 26
129		-	* Sec. 4. AS 03.10.030(c) is amended to read: 27
130		-	(c) A short-term loan, to be amortized within one year, not to exceed for 28
131		-	[$350,000 TO] any one borrower an amount set by the Board of Agriculture and 29
132		-	Conservation in regulation, may be made for operating purposes, except that a loan 30
133		-	made under this subsection may not exceed $500,000 [$200,000] unless the loan is 31
134		-	Enrolled HB 251 -4-
135		-	made to a borrower in a farm disaster area declared under AS 03.10.058. The loan 1
136		-	shall bear interest at a fixed rate comparable to that charged by other agricultural 2
137		-	lending institutions in the state for loans similar to those referred to in this subsection. 3
138		-	An applicant for a short-term loan may be required to purchase insurance through the 4
139		-	Federal Crop Insurance Act (7 U.S.C. 1501 - 1520) as a condition of the loan. The 5
140		-	term of a loan made under this subsection may be extended for up to three years by the 6
141		-	Board of Agriculture and Conservation, in the discretion of the board, upon 7
142		-	application by the borrower. 8
143		-	* Sec. 5. AS 03.10.030(f) is amended to read: 9
144		-	(f) A farm product processing loan may not exceed $500,000 [$250,000]. A 10
145		-	mortgage that secures a farm product processing loan may be of any priority if the 11
146		-	total indebtedness on the real estate, including the secured farm product processing 12
147		-	loan, does not exceed $500,000 [$250,000]. A farm product processing loan that, if 13
148		-	made, would raise the existing indebtedness on the real estate securing the loan above 14
149		-	$500,000 [$250,000], or a farm product processing loan on real estate that has a prior 15
150		-	indebtedness of $500,000 [$250,000] or more, may be made only if all prior 16
151		-	mortgagees agree to subordinate their mortgages to that of the state for the amount of 17
152		-	the farm product processing loan that exceeds the $500,000 [$250,000] indebtedness 18
153		-	limit on the real estate. A farm product processing loan may not exceed a term of 30 19
154		-	years or bear interest at a rate that is less than a fixed rate comparable to that charged 20
155		-	by other agricultural lending institutions in the state for similar loans, and shall be 21
156		-	secured by a real estate or chattel mortgage or both. 22
157		-	* Sec. 6. AS 03.10.030(g) is amended to read: 23
158		-	(g) A loan for clearing land may not 24
159		-	(1) exceed an amount set by the Board of Agriculture and 25
160		-	Conservation in regulation [$250,000]; 26
161		-	(2) bear interest at a rate that is less than a fixed rate comparable to 27
162		-	that charged by other agricultural lending institutions in the state for similar loans; 28
163		-	(3) have a term in excess of 20 years; or 29
164		-	(4) be made for clearing land other than land that has been classified 30
165		-	by the United States Department of Agriculture, Natural Resources Conservation 31
166		-	-5- Enrolled HB 251
167		-	Service, under the Land Capability Classification System as having agricultural 1
168		-	potential for the production of annual crops or hay [,] or for pasture. 2
169		-	* Sec. 7. AS 17.20 is amended by adding new sections to read: 3
170		-	Article 7A. Homemade Food; Animal Shares. 4
171		-	Sec. 17.20.332. Exemption for homemade food. (a) Except as otherwise 5
172		-	provided in AS 17.20.332 - 17.20.338, a homemade food produced, sold, and 6
173		-	consumed in compliance with this section is exempt from state labeling, licensing, 7
174		-	packaging, permitting, and inspection requirements. 8
175		-	(b) The sale of a homemade food under this section 9
176		-	(1) is only for personal consumption; 10
177		-	(2) must occur in the state at a farmers' market, an agricultural fair, a 11
178		-	farm, a ranch, the producer's home or office, the retail location of a third-party seller, 12
179		-	or a location agreed on between the producer and the buyer; and 13
180		-	(3) may not involve 14
181		-	(A) interstate commerce; or 15
182		-	(B) the purchase or sale of 16
183		-	(i) meat or meat products, except as provided in (h) of 17
184		-	this section; 18
185		-	(ii) seafood; 19
186		-	(iii) a controlled substance; 20
187		-	(iv) oil rendered from animal fat; or 21
188		-	(v) game meat. 22
189		-	(c) Except for raw, unprocessed fruits and vegetables, a homemade food may 23
190		-	not be sold or used in a commercial food establishment. 24
191		-	(d) A homemade food may be sold from a retail space located at a ranch, farm, 25
192		-	or home where the homemade food is produced or at a retail location of a third-party 26
193		-	seller. A retail space selling a homemade food shall prominently display a sign 27
194		-	indicating that the homemade food was made in a home kitchen, may contain 28
195		-	allergens, and is not, except for meat and meat products permitted under (h) of this 29
196		-	section, regulated or inspected. A homemade food for sale at a retail location or 30
197		-	grocery store may not be displayed or offered for sale on the same shelf or display as 31
198		-	Enrolled HB 251 -6-
199		-	inspected food. If a retail space selling a potentially hazardous homemade food is in 1
200		-	any way associated with a commercial food establishment or offers for sale any 2
201		-	inspected food, the retail space shall 3
202		-	(1) maintain physical separation from the commercial food 4
203		-	establishment with a separate door and separate cash register or point of sale; 5
204		-	(2) display signs or other markings clearly indicating which separate 6
205		-	spaces offer inspected foods and which offer uninspected foods and meat and meat 7
206		-	products permitted under (h) of this section for sale; 8
207		-	(3) maintain separate coolers, freezers, warehouses, or other storage 9
208		-	areas to prohibit the intermingling of inspected foods with uninspected foods and meat 10
209		-	and meat products permitted under (h) of this section; and 11
210		-	(4) comply with any other requirements specified by the Department of 12
211		-	Environmental Conservation relating to homemade food. 13
212		-	(e) A homemade food packaged for individual sale must be clearly and 14
213		-	prominently labeled with 15
214		-	(1) the producer's name, current address, telephone number, and, if 16
215		-	applicable, the producer's business license number; and 17
216		-	(2) the statement: "This food was made in a home kitchen, is not 18
217		-	regulated or inspected, except for meat and meat products, and may contain allergens." 19
218		-	(f) The seller of a potentially hazardous homemade food, except eggs, must 20
219		-	also be the producer of the homemade food. The seller of eggs or a homemade food 21
220		-	that is not a potentially hazardous homemade food may be the producer of the item, an 22
221		-	agent of the producer, or a third-party vendor, including a retail shop or grocery store, 23
222		-	as long as the sale is made in compliance with this section and all applicable federal 24
223		-	and local laws. 25
224		-	(g) Before a sale of an unpackaged homemade food under this section, a 26
225		-	producer or third-party seller shall 27
226		-	(1) inform the buyer that the unpackaged homemade food was 28
227		-	prepared in accordance with AS 17.20.332 - 17.20.338 and is not subject to certain 29
228		-	state certification, labeling, licensing, packaging, regulation, or inspection 30
229		-	requirements; and 31
230		-	-7- Enrolled HB 251
231		-	(2) provide the buyer with the producer's name, current address, 1
232		-	telephone number, and, if applicable, the producer's business license number. 2
233		-	(h) Subject to the requirements of federal law, a person may prepare and sell 3
234		-	meat, meat products, and homemade food containing meat or meat products under this 4
235		-	section. 5
236		-	Sec. 17.20.334. Animal shares. (a) A person may acquire meat from a 6
237		-	producer by way of an ownership interest in the animal or herd from which the meat 7
238		-	originated if 8
239		-	(1) the meat is 9
240		-	(A) delivered directly from the farm or ranch where the animal 10
241		-	or herd subject to the person's ownership interest is located; and 11
242		-	(B) received by or on behalf of the person with an ownership 12
243		-	interest in the animal from which the meat originated; 13
244		-	(2) the person's ownership of the animal or herd is established before 14
245		-	slaughter; 15
246		-	(3) when providing the meat to a person, the producer includes with 16
247		-	the meat, or on a label attached to the packaging of the meat, a clearly visible warning 17
248		-	that the meat has not been inspected; and 18
249		-	(4) the producer provides the person information describing the health 19
250		-	of the animal or herd and the meat processing standards of the producer's farm or 20
251		-	ranch. 21
252		-	(b) A producer or a person designated by a producer may deliver meat to a 22
253		-	person at a farm, ranch, farmers' market, home, office, or other location agreed on 23
254		-	between the producer and the person. 24
255		-	(c) For a person to have an ownership interest in an animal or herd under this 25
256		-	section, the person's ownership interest must be documented in a written contract 26
257		-	between the person and a producer that includes 27
258		-	(1) a bill of sale demonstrating the person's ownership interest in the 28
259		-	animal or herd; 29
260		-	(2) a boarding provision under which the person boards the animal or 30
261		-	herd with the producer for care and processing; and 31
262		-	Enrolled HB 251 -8-
263		-	(3) a provision entitling the person to receive a share of meat from the 1
264		-	animal or herd. 2
265		-	(d) Meat received by an owner of an animal or herd by way of the person's 3
266		-	ownership interest under this section may not be sold, donated, or commercially 4
267		-	redistributed. 5
268		-	(e) A person may not publish a statement that implies that the Department of 6
269		-	Environmental Conservation approves or endorses an animal or herd share program or 7
270		-	the acquisition of meat under this section. 8
271		-	Sec. 17.20.336. Exceptions. Nothing in AS 17.20.332 - 17.20.338 9
272		-	(1) prevents the Department of Environmental Conservation from 10
273		-	(A) conducting inspections necessary to investigate reports of 11
274		-	(i) foodborne illness or food-caused injury or death; 12
275		-	(ii) unsafe sanitary practices; or 13
276		-	(iii) misbranded or adulterated food; 14
277		-	(B) condemning and ordering the destruction of misbranded or 15
278		-	adulterated food; 16
279		-	(C) ordering the cessation of a practice or procedure of a 17
280		-	producer that is unsafe, unsanitary, or otherwise a risk to public health; 18
281		-	(D) regulating food or an establishment that is not exempt 19
282		-	under AS 17.20.332 - 17.20.338; or 20
283		-	(E) providing assistance, consultation, or inspection at the 21
284		-	request of a producer; 22
285		-	(2) exempts a person from 23
286		-	(A) applicable federal and local laws, regulations, and 24
287		-	ordinances regarding food; or 25
288		-	(B) brand inspection requirements under AS 03.40.250 or 26
289		-	animal inspection requirements under AS 03.05.040. 27
290		-	Sec. 17.20.338. Definitions. In AS 17.20.332 - 17.20.338, 28
291		-	(1) "agricultural fair" means a fair, the major focus of which is 29
292		-	displays, exhibitions, demonstrations, contests, or promotions of agricultural concern 30
293		-	to the region in which the fair is located; 31
294		-	-9- Enrolled HB 251
295		-	(2) "commercial food establishment" means the premises where an 1
296		-	activity related to the display, packaging, preparation, processing, sale, salvaging, 2
297		-	service, storage, transportation, or vending of food for human consumption that is not 3
298		-	exempt under AS 17.20.332 - 17.20.338 occurs; "commercial food establishment" 4
299		-	does not include a kitchen in a private dwelling, or a kitchen in a vessel used solely as 5
300		-	a private dwelling, where homemade food is prepared only for personal consumption; 6
301		-	(3) "controlled substance" has the meaning given in AS 11.71.900; 7
302		-	(4) "farmers' market" means a common facility or area where several 8
303		-	vendors may gather on a regular and recurring basis to sell fresh fruits and vegetables, 9
304		-	locally grown farm products, and other agricultural products and items directly to 10
305		-	buyers; 11
306		-	(5) "game meat" means the flesh and organs of animals that are not 12
307		-	classified as meat in 9 C.F.R. 301.2 or as poultry in 9 C.F.R. 381.1(b); 13
308		-	(6) "homemade food" means a food or drink that is prepared or 14
309		-	processed in 15
310		-	(A) a producer's private home kitchen; or 16
311		-	(B) a private or commercial kitchen leased to a producer; 17
312		-	(7) "meat" means the flesh, muscles, organs, tissues, skin, sinew, 18
313		-	nerves, blood vessels, and bones of cattle, sheep, swine, equine, or goats; 19
314		-	(8) "molluscan shellfish" means all edible species of oyster, clam, 20
315		-	mussel, and scallop, whether shucked or in the shell, fresh or frozen, and in whole or 21
316		-	in part; "molluscan shellfish" does not include the shucked scallop adductor muscle; 22
317		-	(9) "personal consumption" means the use or ingestion of food by a 23
318		-	buyer, an employee of the buyer, or a nonpaying guest of the buyer of homemade 24
319		-	food; 25
320		-	(10) "potentially hazardous homemade food" means food or drink that 26
321		-	requires time or temperature control for safety to limit pathogenic microorganism 27
322		-	growth or toxin formation; 28
323		-	(11) "producer" means a person who grows, harvests, prepares, 29
324		-	processes, or makes and packages meat or homemade food on the person's owned or 30
325		-	leased property; 31
326		-	Enrolled HB 251 -10-
327		-	(12) "seafood" includes saltwater fish, freshwater fish, amphibians, 1
328		-	crustaceans, molluscan shellfish, any other species of aquatic animal intended for 2
329		-	human consumption, and parts or byproducts of any species of aquatic animal 3
330		-	intended for human consumption; "seafood" does not include aquatic plants, birds, or 4
331		-	mammals. 5
332		-	* Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 6
333		-	read: 7
334		-	TRANSITION: REGULATIONS. The Board of Agriculture and Conservation and the 8
335		-	Department of Natural Resources may adopt regulations necessary to implement the changes 9
336		-	made by this Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), 10
337		-	but not before the effective date of the law implemented by the regulation. 11
338		-	* Sec. 9. Sections 1, 3, 5, and 8 of this Act take effect immediately under AS 01.10.070(c). 12
339		-	* Sec. 10. Section 7 of this Act takes effect July 1, 2024. 13
340		-	* Sec. 11. Sections 2, 4, and 6 of this Act take effect July 1, 2025. 14
	86	+	subsection if the borrower otherwise qualifies for a loan under AS 03.10.010 - 8
	87	+	03.10.060. 9
	88	+	* Sec. 3. AS 03.10.030(a) is amended to read: 10
	89	+	(a) A [THE] farm development, chattel, or irrigation loan made under this 11
	90	+	chapter 12
	91	+	(1) may not exceed a term of 30 years, except that a chattel loan may 13
	92	+	not exceed a term of seven years; 14
	93	+	(2) may not, when added to the outstanding balance of other loans 15
	94	+	made under this chapter, exceed a total outstanding balance of $3,000,000, adjusted 16
	95	+	annually for inflation on July 1 of each year based on the percentage increase in 17
	96	+	the Consumer Price Index for all urban consumers for urban Alaska during the 18
	97	+	previous calendar year, as determined by the United States Department of 19
	98	+	Labor, Bureau of Labor Statistics [$1,000,000]; 20
	99	+	(3) shall be secured by a real estate or chattel mortgage of any priority, 21
	100	+	except that the portion of a loan that exceeds $500,000, when added to prior 22
	101	+	indebtedness that is secured by the same property, must be secured by a first 23
	102	+	mortgage; 24
	103	+	(4) shall bear interest at a fixed rate comparable to that charged by 25
	104	+	other agricultural lending institutions in the state for loans similar to those referred to 26
	105	+	in this subsection. 27
	106	+	* Sec. 4. AS 03.10.030(c) is amended to read: 28
	107	+	(c) A short-term loan, to be amortized within one year, not to exceed, for 29
	108	+	[$350,000 TO] any one borrower, an amount set by the Board of Agriculture and 30
	109	+	Conservation in regulation, may be made for operating purposes, except that a loan 31 33-LS0888\R.A
	110	+	SCS CSHB 251(L&C) am S -4- HB0251E
	111	+	New Text Underlined [DELETED TEXT BRACKETED]
	112	+
	113	+	made under this subsection may not exceed $500,000 [$200,000] unless the loan is 1
	114	+	made to a borrower in a farm disaster area declared under AS 03.10.058. The loan 2
	115	+	shall bear interest at a fixed rate comparable to that charged by other agricultural 3
	116	+	lending institutions in the state for loans similar to those referred to in this subsection. 4
	117	+	An applicant for a short-term loan may be required to purchase insurance through the 5
	118	+	Federal Crop Insurance Act (7 U.S.C. 1501 - 1520) as a condition of the loan. The 6
	119	+	term of a loan made under this subsection may be extended for up to three years by the 7
	120	+	Board of Agriculture and Conservation, in the discretion of the board, upon 8
	121	+	application by the borrower. 9
	122	+	* Sec. 5. AS 03.10.030(f) is amended to read: 10
	123	+	(f) A farm product processing loan may not exceed $500,000 [$250,000]. A 11
	124	+	mortgage that secures a farm product processing loan may be of any priority if the 12
	125	+	total indebtedness on the real estate, including the secured farm product processing 13
	126	+	loan, does not exceed $500,000 [$250,000]. A farm product processing loan that, if 14
	127	+	made, would raise the existing indebtedness on the real estate securing the loan above 15
	128	+	$500,000 [$250,000], or a farm product processing loan on real estate that has a prior 16
	129	+	indebtedness of $500,000 [$250,000] or more, may be made only if all prior 17
	130	+	mortgagees agree to subordinate their mortgages to that of the state for the amount of 18
	131	+	the farm product processing loan that exceeds the $500,000 [$250,000] indebtedness 19
	132	+	limit on the real estate. A farm product processing loan may not exceed a term of 30 20
	133	+	years or bear interest at a rate that is less than a fixed rate comparable to that charged 21
	134	+	by other agricultural lending institutions in the state for similar loans, and shall be 22
	135	+	secured by a real estate or chattel mortgage or both. 23
	136	+	* Sec. 6. AS 03.10.030(g) is amended to read: 24
	137	+	(g) A loan for clearing land may not 25
	138	+	(1) exceed an amount set by the Board of Agriculture and 26
	139	+	Conservation in regulation [$250,000]; 27
	140	+	(2) bear interest at a rate that is less than a fixed rate comparable to 28
	141	+	that charged by other agricultural lending institutions in the state for similar loans; 29
	142	+	(3) have a term in excess of 20 years; or 30
	143	+	(4) be made for clearing land other than land that has been classified 31 33-LS0888\R.A
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	147	+	by the United States Department of Agriculture, Natural Resources Conservation 1
	148	+	Service, under the Land Capability Classification System as having agricultural 2
	149	+	potential for the production of annual crops or hay [,] or for pasture. 3
	150	+	* Sec. 7. AS 17.20 is amended by adding new sections to read: 4
	151	+	Article 7A. Homemade Food; Animal Shares. 5
	152	+	Sec. 17.20.332. Exemption for homemade food. (a) Except as otherwise 6
	153	+	provided in AS 17.20.332 - 17.20.338, a homemade food produced, sold, and 7
	154	+	consumed in compliance with this section is exempt from state labeling, licensing, 8
	155	+	packaging, permitting, and inspection requirements. 9
	156	+	(b) The sale of a homemade food under this section 10
	157	+	(1) is only for personal consumption; 11
	158	+	(2) must occur in the state at a farmers' market, an agricultural fair, a 12
	159	+	farm, a ranch, the producer's home or office, the retail location of a third-party seller, 13
	160	+	or a location agreed on between the producer and the buyer; and 14
	161	+	(3) may not involve 15
	162	+	(A) interstate commerce; or 16
	163	+	(B) the purchase or sale of 17
	164	+	(i) meat or meat products, except as provided in (h) of 18
	165	+	this section; 19
	166	+	(ii) seafood; 20
	167	+	(iii) a controlled substance; 21
	168	+	(iv) oil rendered from animal fat; or 22
	169	+	(v) game meat. 23
	170	+	(c) Except for raw, unprocessed fruits and vegetables, a homemade food may 24
	171	+	not be sold or used in a commercial food establishment. 25
	172	+	(d) A homemade food may be sold from a retail space located at a ranch, farm, 26
	173	+	or home where the homemade food is produced or at a retail location of a third-party 27
	174	+	seller. A retail space selling a homemade food shall prominently display a sign 28
	175	+	indicating that the homemade food was made in a home kitchen, may contain 29
	176	+	allergens, and is not, except for meat and meat products permitted under (h) of this 30
	177	+	section, regulated or inspected. A homemade food for sale at a retail location or 31 33-LS0888\R.A
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	181	+	grocery store may not be displayed or offered for sale on the same shelf or display as 1
	182	+	inspected food. If a retail space selling a potentially hazardous homemade food is in 2
	183	+	any way associated with a commercial food establishment or offers for sale any 3
	184	+	inspected food, the retail space shall 4
	185	+	(1) maintain physical separation from the commercial food 5
	186	+	establishment with a separate door and separate cash register or point of sale; 6
	187	+	(2) display signs or other markings clearly indicating which separate 7
	188	+	spaces offer inspected foods and which offer uninspected foods and meat and meat 8
	189	+	products permitted under (h) of this section for sale; 9
	190	+	(3) maintain separate coolers, freezers, warehouses, or other storage 10
	191	+	areas to prohibit the intermingling of inspected foods with uninspected foods and meat 11
	192	+	and meat products permitted under (h) of this section; and 12
	193	+	(4) comply with any other requirements specified by the Department of 13
	194	+	Environmental Conservation relating to homemade food. 14
	195	+	(e) A homemade food packaged for individual sale must be clearly and 15
	196	+	prominently labeled with 16
	197	+	(1) the producer's name, current address, telephone number, and, if 17
	198	+	applicable, the producer's business license number; and 18
	199	+	(2) the statement: "This food was made in a home kitchen, is not 19
	200	+	regulated or inspected, except for meat and meat products, and may contain allergens." 20
	201	+	(f) The seller of a potentially hazardous homemade food, except eggs, must 21
	202	+	also be the producer of the homemade food. The seller of eggs or a homemade food 22
	203	+	that is not a potentially hazardous homemade food may be the producer of the item, an 23
	204	+	agent of the producer, or a third-party vendor, including a retail shop or grocery store, 24
	205	+	as long as the sale is made in compliance with this section and all applicable federal 25
	206	+	and local laws. 26
	207	+	(g) Before a sale of an unpackaged homemade food under this section, a 27
	208	+	producer or third-party seller 28
	209	+	(1) shall inform the buyer that the unpackaged homemade food was 29
	210	+	prepared in accordance with AS 17.20.332 - 17.20.338 and is not subject to certain 30
	211	+	state certification, labeling, licensing, packaging, regulation, or inspection 31 33-LS0888\R.A
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	215	+	requirements; and 1
	216	+	(2) provide the buyer with the producer's name, current address, 2
	217	+	telephone number, and, if applicable, the producer's business license number. 3
	218	+	(h) Subject to the requirements of federal law, a person may prepare and sell 4
	219	+	meat, meat products, and homemade food containing meat or meat products under this 5
	220	+	section. 6
	221	+	Sec. 17.20.334. Animal shares. (a) A person may acquire meat from a 7
	222	+	producer by way of an ownership interest in the animal or herd from which the meat 8
	223	+	originated if 9
	224	+	(1) the meat is 10
	225	+	(A) delivered directly from the farm or ranch where the animal 11
	226	+	or herd subject to the person's ownership interest is located; and 12
	227	+	(B) received by or on behalf of the person with an ownership 13
	228	+	interest in the animal from which the meat originated; 14
	229	+	(2) the person's ownership of the animal or herd is established before 15
	230	+	slaughter; 16
	231	+	(3) when providing the meat to a person, the producer includes with 17
	232	+	the meat, or on a label attached to the packaging of the meat, a clearly visible warning 18
	233	+	that the meat has not been inspected; and 19
	234	+	(4) the producer provides the person information describing the health 20
	235	+	of the animal or herd and the meat processing standards of the producer's farm or 21
	236	+	ranch. 22
	237	+	(b) A producer or a person designated by a producer may deliver meat to a 23
	238	+	person at a farm, ranch, farmers' market, home, office, or other location agreed on 24
	239	+	between the producer and the person. 25
	240	+	(c) For a person to have an ownership interest in an animal or herd under this 26
	241	+	section, the person's ownership interest must be documented in a written contract 27
	242	+	between the person and a producer that includes 28
	243	+	(1) a bill of sale demonstrating the person's ownership interest in the 29
	244	+	animal or herd; 30
	245	+	(2) a boarding provision under which the person boards the animal or 31 33-LS0888\R.A
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	249	+	herd with the producer for care and processing; and 1
	250	+	(3) a provision entitling the person to receive a share of meat from the 2
	251	+	animal or herd. 3
	252	+	(d) Meat received by an owner of an animal or herd by way of the person's 4
	253	+	ownership interest under this section may not be sold, donated, or commercially 5
	254	+	redistributed. 6
	255	+	(e) A person may not publish a statement that implies that the Department of 7
	256	+	Environmental Conservation approves or endorses an animal or herd share program or 8
	257	+	the acquisition of meat under this section. 9
	258	+	Sec. 17.20.336. Exceptions. Nothing in AS 17.20.332 - 17.20.338 10
	259	+	(1) prevents the Department of Environmental Conservation from 11
	260	+	(A) conducting inspections necessary to investigate reports of 12
	261	+	(i) foodborne illness or food-caused injury or death; 13
	262	+	(ii) unsafe sanitary practices; or 14
	263	+	(iii) misbranded or adulterated food; 15
	264	+	(B) condemning and ordering the destruction of misbranded or 16
	265	+	adulterated food; 17
	266	+	(C) ordering the cessation of a practice or procedure of a 18
	267	+	producer that is unsafe, unsanitary, or otherwise a risk to public health; 19
	268	+	(D) regulating food or an establishment that is not exempt 20
	269	+	under AS 17.20.332 - 17.20.338; or 21
	270	+	(E) providing assistance, consultation, or inspection at the 22
	271	+	request of a producer; 23
	272	+	(2) exempts a person from 24
	273	+	(A) applicable federal and local laws, regulations, and 25
	274	+	ordinances regarding food; or 26
	275	+	(B) brand inspection requirements under AS 03.40.250 or 27
	276	+	animal inspection requirements under AS 03.05.040. 28
	277	+	Sec. 17.20.338. Definitions. In AS 17.20.332 - 17.20.338, 29
	278	+	(1) "agricultural fair" means a fair, the major focus of which is 30
	279	+	displays, exhibitions, demonstrations, contests, or promotions of agricultural concern 31 33-LS0888\R.A
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	283	+	to the region in which the fair is located; 1
	284	+	(2) "commercial food establishment" means the premises where an 2
	285	+	activity related to the display, packaging, preparation, processing, sale, salvaging, 3
	286	+	service, storage, transportation, or vending of food for human consumption that is not 4
	287	+	exempt under AS 17.20.332 - 17.20.338 occurs; "commercial food establishment" 5
	288	+	does not include a kitchen in a private dwelling, or a kitchen in a vessel used solely as 6
	289	+	a private dwelling, where homemade food is prepared only for personal consumption; 7
	290	+	(3) "controlled substance" has the meaning given in AS 11.71.900; 8
	291	+	(4) "farmers' market" means a common facility or area where several 9
	292	+	vendors may gather on a regular and recurring basis to sell fresh fruits and vegetables, 10
	293	+	locally grown farm products, and other agricultural products and items directly to 11
	294	+	buyers; 12
	295	+	(5) "game meat" means the flesh and organs of animals that are not 13
	296	+	classified as meat in 9 C.F.R. 301.2 or as poultry in 9 C.F.R. 381.1(b); 14
	297	+	(6) "homemade food" means a food or drink that is prepared or 15
	298	+	processed in 16
	299	+	(A) a producer's private home kitchen; or 17
	300	+	(B) a private or commercial kitchen leased to a producer; 18
	301	+	(7) "meat" means the flesh, muscles, organs, tissues, skin, sinew, 19
	302	+	nerves, blood vessels, and bones of cattle, sheep, swine, equine, or goats; 20
	303	+	(8) "molluscan shellfish" means all edible species of oyster, clam, 21
	304	+	mussel, and scallop, whether shucked or in the shell, fresh or frozen, and in whole or 22
	305	+	in part; "molluscan shellfish" does not include the shucked scallop adductor muscle; 23
	306	+	(9) "personal consumption" means the use or ingestion of food by a 24
	307	+	buyer, an employee of the buyer, or a nonpaying guest of the buyer of homemade 25
	308	+	food; 26
	309	+	(10) "potentially hazardous homemade food" means food or drink that 27
	310	+	requires time or temperature control for safety to limit pathogenic microorganism 28
	311	+	growth or toxin formation; 29
	312	+	(11) "producer" means a person who grows, harvests, prepares, 30
	313	+	processes, or makes and packages meat or homemade food on the person's owned or 31 33-LS0888\R.A
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	317	+	leased property; 1
	318	+	(12) "seafood" includes saltwater fish, freshwater fish, amphibians, 2
	319	+	crustaceans, molluscan shellfish, any other species of aquatic animal intended for 3
	320	+	human consumption, and parts or byproducts of any species of aquatic animal 4
	321	+	intended for human consumption; "seafood" does not include aquatic plants, birds, or 5
	322	+	mammals. 6
	323	+	* Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 7
	324	+	read: 8
	325	+	TRANSITION: REGULATIONS. The Board of Agriculture and Conservation and the 9
	326	+	Department of Natural Resources may adopt regulations necessary to implement the changes 10
	327	+	made by this Act. The regulations take effect under AS 44.62 (Administrative Procedure Act) 11
	328	+	but not before the effective date of the law implemented by the regulation. 12
	329	+	* Sec. 9. Sections 1, 3, 5, and 8 of this Act take effect immediately under AS 01.10.070(c). 13
	330	+	* Sec. 10. Section 7 of this Act takes effect July 1, 2024. 14
	331	+	* Sec. 11. Sections 2, 4, and 6 of this Act take effect July 1, 2025. 15