AK
Alaska House Bill HB296

Alaska 2023-2024 Regular Session

Alaska House Bill HB296 Compare Versions

OldNewDifferences
11
2-HB0296b -1- CSHB 296(RES)
2+HB0296a -1- HB 296
33 New Text Underlined [DELETED TEXT BRACKETED]
44
5-33-GH2386\S
5+33-GH2386\A
66
77
88
99
10-CS FOR HOUSE BILL NO. 296(RES)
10+
11+ HOUSE BILL NO. 296
1112
1213 IN THE LEGISLATURE OF THE STATE OF ALASKA
1314
1415 THIRTY-THIRD LEGISLATURE - SECOND SESSION
1516
16-BY THE HOUSE RESOURCES COMMITTEE
17+BY THE HOUSE RULES COMMITTEE BY REQUEST OF THE GOVERNOR
1718
18-Offered: 3/1/24
19-Referred: Rules
19+Introduced: 1/26/24
20+Referred: Resources
2021
21-Sponsor(s): HOUSE RULES COMMITTEE BY REQUEST OF THE GOVERNOR
22+
2223 A BILL
2324
2425 FOR AN ACT ENTITLED
2526
26-"An Act relating to the Board of Agriculture and Conservation; relating to loans and 1
27-limitations under the Alaska Agricultural Loan Act; relating to federal crop insurance 2
28-contributions; relating to a report to the legislature on municipal and state procurement 3
29-preferences for agricultural products harvested in the state and fisheries products 4
30-harvested or processed in the state; and providing for an effective date." 5
27+"An Act relating to the powers of the board of agriculture and conservation; relating to 1
28+loans and limitations under the Alaska Agricultural Loan Act; relating to federal crop 2
29+insurance contributions; relating to municipal and state procurement preferences for 3
30+agricultural products harvested in the state and fisheries products harvested or 4
31+processed in the state; and providing for an effective date." 5
3132 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 6
3233 * Section 1. AS 03.09.030 is amended to read: 7
3334 Sec. 03.09.030. Quorum. Four [FIVE] members of the Board of Agriculture
3435 8
3536 and Conservation constitute a quorum for the transaction of business or the exercise of 9
3637 a power or function at a meeting of the board. 10
3738 * Sec. 2. AS 03.10.020(a) is amended to read: 11
3839 (a) The Board of Agriculture and Conservation (AS 03.09.010) may 12
39-(1) make a loan to 13 33-GH2386\S
40-CSHB 296(RES) -2- HB0296b
40+(1) make a loan to 13 33-GH2386\A
41+HB 296 -2- HB0296a
4142 New Text Underlined [DELETED TEXT BRACKETED]
4243
4344 (A) an individual resident farmer, homesteader, or a partnership 1
4445 or corporation composed of farmers and homesteaders for 2
4546 (i) clearing land for agricultural purposes; 3
4647 (ii) development of farms; 4
47-(iii) storage and processing of farm produce; [OR] 5
48+(iii) storage and processing of farm produce; or 5
4849 (iv) the purchase of livestock or machinery; 6
49-(v) the cost of shipping to and within the state for the 7
50-purposes listed in (i) - (iv) of this subparagraph; or 8
51-(vi) in-state manufacturing of food or production of 9
52-animal feed; 10
53-(B) an individual state resident, or a partnership or corporation 11
54-for 12
55-(i) storage and processing plants for agricultural 13
56-products; 14
57-(ii) the commercial production or processing of 15
58-horticultural products in the state; 16
59-(iii) the commercial production or processing of animal 17
60-feed in the state; [OR] 18
61-(iv) the raising or care of animals in the state for the 19
62-purpose of marketing their fur; 20
63-(v) the cost of shipping to and within the state for the 21
64-purposes listed in (i) - (iv) of this subparagraph; or 22
65-(vi) in-state manufacturing of food or production of 23
66-animal feed; 24
67-(2) designate agents and delegate its powers to them as necessary; 25
68-(3) adopt regulations necessary to carry out its functions, including 26
69-regulations to establish reasonable fees for services provided and charges for 27
70-collecting the fees; 28
71-(4) establish amortization plans for repayment of loans, which may 29
72-include delayed payments of principal and interest for not to exceed five years; 30
73-(5) enter into agreements with private lending institutions, other state 31 33-GH2386\S
74-HB0296b -3- CSHB 296(RES)
50+(B) an individual state resident, or a partnership or corporation 7
51+for 8
52+(i) storage and processing plants for agricultural 9
53+products; 10
54+(ii) the commercial production or processing of 11
55+horticultural products in the state; 12
56+(iii) the commercial production or processing of animal 13
57+feed in the state; [OR] 14
58+(iv) the raising or care of animals in the state for the 15
59+purpose of marketing their fur; or 16
60+(v) shipping costs to and within the state; 17
61+(2) designate agents and delegate its powers to them as necessary; 18
62+(3) adopt regulations necessary to carry out its functions, including 19
63+regulations to establish reasonable fees for services provided and charges for 20
64+collecting the fees; 21
65+(4) establish amortization plans for repayment of loans, which may 22
66+include delayed payments of principal and interest for not to exceed five years; 23
67+(5) enter into agreements with private lending institutions, other state 24
68+agencies, or agencies of the federal government to carry out the purposes of this 25
69+chapter; 26
70+(6) collect the fees and collection charges established under this 27
71+subsection; 28
72+(7) refinance a debt obligation incurred by a borrower under this 29
73+section or through another lender for a purpose authorized by (1) of this 30
74+subsection if the borrower otherwise qualifies for a loan under AS 03.10.010 - 31 33-GH2386\A
75+HB0296a -3- HB 296
7576 New Text Underlined [DELETED TEXT BRACKETED]
7677
77-agencies, or agencies of the federal government to carry out the purposes of this 1
78-chapter; 2
79-(6) collect the fees and collection charges established under this 3
80-subsection; 4
81-(7) refinance a debt obligation incurred by a borrower under this 5
82-section or through another lender for a purpose authorized under (1) of this 6
83-subsection if the borrower otherwise qualifies for a loan under AS 03.10.010 - 7
84-03.10.060. 8
85- * Sec. 3. AS 03.10.030(a) is amended to read: 9
86-(a) A [THE] farm development, chattel, or irrigation loan made under this 10
87-chapter 11
88-(1) may not exceed a term of 30 years, except that a chattel loan may 12
89-not exceed a term of seven years; 13
90-(2) may not, when added to the outstanding balance of other loans 14
91-made under this chapter, exceed a total outstanding balance of $3,000,000, adjusted 15
92-annually for inflation on July 1 of each year based on the percentage increase in 16
93-the Consumer Price Index for all urban consumers for urban Alaska during the 17
94-previous calendar year, as determined by the United States Department of 18
95-Labor, Bureau of Labor Statistics [$1,000,000]; 19
96-(3) shall be secured by a real estate or chattel mortgage of any priority, 20
97-except that the portion of a loan that exceeds $500,000, when added to prior 21
98-indebtedness that is secured by the same property, must be secured by a first 22
99-mortgage; 23
100-(4) shall bear interest at a fixed rate comparable to that charged by 24
101-other agricultural lending institutions in the state for loans similar to those referred to 25
102-in this subsection. 26
103- * Sec. 4. AS 03.10.030(c) is amended to read: 27
104-(c) A short-term loan, to be amortized within one year, not to exceed, for 28
105-[$350,000 TO] any one borrower, an amount set by the Board of Agriculture and 29
106-Conservation in regulation, may be made for operating purposes, except that a loan 30
107-made under this subsection may not exceed $500,000 [$200,000] unless the loan is 31 33-GH2386\S
108-CSHB 296(RES) -4- HB0296b
78+03.10.060. 1
79+ * Sec. 3. AS 03.10.030(a) is amended to read: 2
80+(a) A [THE] farm development, chattel, or irrigation loan made under this 3
81+chapter 4
82+(1) may not exceed a term of 30 years, except that a chattel loan may 5
83+not exceed a term of seven years; 6
84+(2) may not, when added to the outstanding balance of other loans 7
85+made under this chapter, exceed the maximum loan amount permitted for any 8
86+borrower established by the Board of Agriculture and Conservation in regulation 9
87+[A TOTAL OUTSTANDING BALANCE OF $1,000,000]; 10
88+(3) shall be secured by a first priority real estate or chattel mortgage 11
89+[OF ANY PRIORITY, EXCEPT THAT THE PORTION OF A LOAN THAT 12
90+EXCEEDS $500,000, WHEN ADDED TO PRIOR INDEBTEDNESS THAT IS 13
91+SECURED BY THE SAME PROPERTY, MUST BE SECURED BY A FIRST 14
92+MORTGAGE]; 15
93+(4) shall bear interest at a fixed rate comparable to that charged by 16
94+other agricultural lending institutions in the state for loans similar to those referred to 17
95+in this subsection. 18
96+ * Sec. 4. AS 03.10.030(c) is amended to read: 19
97+(c) A short-term loan, to be amortized within one year, not to exceed an 20
98+amount set by the Board of Agriculture and Conservation in regulation 21
99+[$350,000] to any one borrower, may be made for operating purposes, except that a 22
100+loan made under this subsection may not exceed $500,000 [$200,000] unless the loan 23
101+is made to a borrower in a farm disaster area declared under AS 03.10.058. The loan 24
102+shall bear interest at a fixed rate comparable to that charged by other agricultural 25
103+lending institutions in the state for loans similar to those referred to in this subsection. 26
104+An applicant for a short-term loan may be required to purchase insurance through the 27
105+Federal Crop Insurance Act (7 U.S.C. 1501 - 1520) as a condition of the loan. The 28
106+term of a loan made under this subsection may be extended for up to three years by the 29
107+Board of Agriculture and Conservation, in the discretion of the board, upon 30
108+application by the borrower. 31 33-GH2386\A
109+HB 296 -4- HB0296a
109110 New Text Underlined [DELETED TEXT BRACKETED]
110111
111-made to a borrower in a farm disaster area declared under AS 03.10.058. The loan 1
112-shall bear interest at a fixed rate comparable to that charged by other agricultural 2
113-lending institutions in the state for loans similar to those referred to in this subsection. 3
114-An applicant for a short-term loan may be required to purchase insurance through the 4
115-Federal Crop Insurance Act (7 U.S.C. 1501 - 1520) as a condition of the loan. The 5
116-term of a loan made under this subsection may be extended for up to three years by the 6
117-Board of Agriculture and Conservation, in the discretion of the board, upon 7
118-application by the borrower. 8
119- * Sec. 5. AS 03.10.030(f) is amended to read: 9
120-(f) A farm product processing loan may not exceed $500,000 [$250,000]. A 10
121-mortgage that secures a farm product processing loan may be of any priority if the 11
122-total indebtedness on the real estate, including the secured farm product processing 12
123-loan, does not exceed $500,000 [$250,000]. A farm product processing loan that, if 13
124-made, would raise the existing indebtedness on the real estate securing the loan above 14
125-$500,000 [$250,000], or a farm product processing loan on real estate that has a prior 15
126-indebtedness of $500,000 [$250,000] or more, may be made only if all prior 16
127-mortgagees agree to subordinate their mortgages to that of the state for the amount of 17
128-the farm product processing loan that exceeds the $500,000 [$250,000] indebtedness 18
129-limit on the real estate. A farm product processing loan may not exceed a term of 30 19
130-years or bear interest at a rate that is less than a fixed rate comparable to that charged 20
131-by other agricultural lending institutions in the state for similar loans, and shall be 21
132-secured by a real estate or chattel mortgage or both. 22
133- * Sec. 6. AS 03.10.030(g) is amended to read: 23
134-(g) A loan for clearing land may not 24
135-(1) exceed an amount set by the Board of Agriculture and 25
136-Conservation in regulation [$250,000]; 26
137-(2) bear interest at a rate that is less than a fixed rate comparable to 27
138-that charged by other agricultural lending institutions in the state for similar loans; 28
139-(3) have a term in excess of 20 years; or 29
140-(4) be made for clearing land other than land that has been classified 30
141-by the United States Department of Agriculture, Natural Resources Conservation 31 33-GH2386\S
142-HB0296b -5- CSHB 296(RES)
112+ * Sec. 5. AS 03.10.030(f) is amended to read: 1
113+(f) A farm product processing loan may not exceed $500,000 [$250,000]. A 2
114+mortgage that secures a farm product processing loan may be of any priority if the 3
115+total indebtedness on the real estate, including the secured farm product processing 4
116+loan, does not exceed $500,000 [$250,000]. A farm product processing loan that, if 5
117+made, would raise the existing indebtedness on the real estate securing the loan above 6
118+$500,000 [$250,000], or a farm product processing loan on real estate that has a prior 7
119+indebtedness of $500,000 [$250,000] or more, may be made only if all prior 8
120+mortgagees agree to subordinate their mortgages to that of the state for the amount of 9
121+the farm product processing loan that exceeds the $500,000 [$250,000] indebtedness 10
122+limit on the real estate. A farm product processing loan may not exceed a term of 30 11
123+years or bear interest at a rate that is less than a fixed rate comparable to that charged 12
124+by other agricultural lending institutions in the state for similar loans, and shall be 13
125+secured by a real estate or chattel mortgage or both. 14
126+ * Sec. 6. AS 03.10.030(g) is amended to read: 15
127+(g) A loan for clearing land may not 16
128+(1) exceed an amount set by the Board of Agriculture and 17
129+Conservation in regulation [$250,000]; 18
130+(2) bear interest at a rate that is less than a fixed rate comparable to 19
131+that charged by other agricultural lending institutions in the state for similar loans; 20
132+(3) have a term in excess of 20 years; or 21
133+(4) be made for clearing land other than land that has been classified 22
134+by the United States Department of Agriculture, Natural Resources Conservation 23
135+Service, under the Land Capability Classification System as having agricultural 24
136+potential for the production of annual crops or hay, or for pasture. 25
137+ * Sec. 7. AS 03.13.030 is repealed and reenacted to read: 26
138+Sec. 03.13.030. State contribution; limitation. Except as provided in 27
139+AS 03.13.040(b), the state shall pay a percentage of the covered producer's revenue 28
140+protection policy premium, as calculated by the corporation, equivalent to the amount 29
141+required to obtain 30
142+(1) 85 percent revenue protection for the first two policy years; 31 33-GH2386\A
143+HB0296a -5- HB 296
143144 New Text Underlined [DELETED TEXT BRACKETED]
144145
145-Service, under the Land Capability Classification System as having agricultural 1
146-potential for the production of annual crops or hay [,] or for pasture. 2
147- * Sec. 7. AS 03.13.030 is repealed and reenacted to read: 3
148-Sec. 03.13.030. State contribution; limitation. Except as provided in 4
149-AS 03.13.040(b), the state shall pay a percentage of the covered producer's revenue 5
150-protection policy premium, as calculated by the corporation, equivalent to the amount 6
151-required to obtain 7
152-(1) 85 percent revenue protection for the first two policy years; 8
153-(2) 80 percent revenue protection for the third policy year; 9
154-(3) 75 percent revenue protection for the fourth policy year; and 10
155-(4) if a producer purchases a minimum of 55 percent revenue 11
156-protection coverage, 70 percent revenue protection for a policy year after the fourth 12
157-policy year. 13
158- * Sec. 8. AS 03.13.040(b) is amended to read: 14
159-(b) If for any year the amount appropriated is insufficient to fully fund the 15
160-contribution required by AS 03.13.030 [AS 03.13.020], the department shall allocate 16
161-funds on a first come basis. 17
162- * Sec. 9. AS 03.13 is amended by adding a new section to read: 18
163-Sec. 03.13.045. Regulations. The department may adopt regulations under 19
164-AS 44.62 (Administrative Procedure Act) to carry out this chapter, including 20
165-regulations to establish reasonable fees for services provided by the department. 21
166- * Sec. 10. AS 03.13.050 is amended to read: 22
167-Sec. 03.13.050. Definitions. In this chapter, 23
168-(1) "corporation" means the Federal Crop Insurance Corporation (7 24
169-U.S.C. 1503); 25
170-(2) "revenue protection" has the meaning given in 7 C.F.R. 457.8. 26
171- * Sec. 11. AS 03.13.020 is repealed. 27
172- * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 28
173-read: 29
174-REPORT TO THE LEGISLATURE. Not later than the 30th legislative day of the 30
175-First Regular Session of the Thirty-Fourth Alaska State Legislature, the Department of 31 33-GH2386\S
176-CSHB 296(RES) -6- HB0296b
146+(2) 80 percent revenue protection for the third policy year; 1
147+(3) 75 percent revenue protection for the fourth policy year; and 2
148+(4) if a producer purchases a minimum of 55 percent revenue 3
149+protection coverage, 70 percent revenue protection for the fifth policy year and any 4
150+future year. 5
151+ * Sec. 8. AS 03.13.040(b) is amended to read: 6
152+(b) If for any year the amount appropriated is insufficient to fully fund the 7
153+contribution required by AS 03.13.030 [AS 03.13.020], the department shall allocate 8
154+funds on a first come basis. 9
155+ * Sec. 9. AS 03.13 is amended by adding a new section to read: 10
156+Sec. 03.13.045. Regulations. The department may adopt regulations under 11
157+AS 44.62 (Administrative Procedure Act) to carry out this chapter, including 12
158+regulations to establish reasonable fees for services provided by the department. 13
159+ * Sec. 10. AS 03.13.050 is amended by adding a new paragraph to read: 14
160+(2) "revenue protection" has the meaning given in 7 C.F.R. 457.8. 15
161+ * Sec. 11. AS 29.71.040(a) is amended to read: 16
162+(a) If a municipality that receives state money seeks to purchase an 17
163+agricultural product and an agricultural product harvested in the state is available that 18
164+is of like quality compared with a similar agricultural product harvested outside the 19
165+state, the municipality 20
166+[(1)] shall purchase the product harvested in the state [IF THE 21
167+PRODUCT IS PRICED NOT MORE THAN SEVEN PERCENT ABOVE THE 22
168+SIMILAR PRODUCT HARVESTED OUTSIDE THE STATE; 23
169+(2) MAY PURCHASE THE PRODUCT HARVESTED IN THE 24
170+STATE ONLY IF THE PRODUCT IS PRICED NOT MORE THAN 15 PERCENT 25
171+ABOVE THE SIMILAR PRODUCT HARVESTED OUTSIDE THE STATE]. 26
172+ * Sec. 12. AS 29.71.040(a), as amended by sec. 11 of this Act, is amended to read: 27
173+(a) If a municipality that receives state money seeks to purchase an 28
174+agricultural product and an agricultural product harvested in the state is available that 29
175+is of like quality compared with a similar agricultural product harvested outside the 30
176+state, the municipality 31 33-GH2386\A
177+HB 296 -6- HB0296a
177178 New Text Underlined [DELETED TEXT BRACKETED]
178179
179-Administration, with the assistance of the Department of Commerce, Community, and 1
180-Economic Development, shall prepare and present to the legislative committees having 2
181-jurisdiction over procurement a report evaluating the procurement preferences established 3
182-under AS 29.71.040(a) and (b) and AS 36.15.050(a) and (b). The report must include 4
183-(1) annual data and year-over-year comparisons of 5
184-(A) the total value of Alaska products purchased; 6
185-(B) the type of products purchased, including raw and value-added 7
186-products, and the amount purchased by volume or units; 8
187-(C) the number of businesses participating in the state; and 9
188-(D) the number of businesses in the state with sales to institutional 10
189-buyers, including state agencies, school districts, or local governments; and 11
190-(2) a recommendation from the Department of Administration, with input 12
191-from the Department of Commerce, Community, and Economic Development, addressing 13
192-potential statutory changes to make purchase preference programs more effective at 14
193-stimulating state agriculture. 15
194- * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 16
195-read: 17
196-TRANSITION: REGULATIONS. The Board of Agriculture and Conservation and the 18
197-Department of Natural Resources may adopt regulations necessary to implement the changes 19
198-made by secs. 2 - 11 of this Act. The regulations take effect under AS 44.62 (Administrative 20
199-Procedure Act) but not before the effective date of the law implemented by the regulation. 21
200- * Sec. 14. Sections 1 and 13 of this Act take effect immediately under AS 01.10.070(c). 22
201- * Sec. 15. Section 3 of this Act takes effect July 1, 2024. 23
202- * Sec. 16. Sections 2 and 4 - 11 of this Act take effect July 1, 2025. 24
180+(1) shall purchase the product harvested in the state if the product is 1
181+priced not more than seven percent above the similar product harvested outside 2
182+the state; 3
183+(2) may purchase the product harvested in the state only if the 4
184+product is priced not more than 15 percent above the similar product harvested 5
185+outside the state. 6
186+ * Sec. 13. AS 29.71.040(b) is amended to read: 7
187+(b) If a municipality that receives state money seeks to purchase a fisheries 8
188+product and a fisheries product harvested or processed within the jurisdiction of the 9
189+state is available that is of like quality compared with a similar fisheries product 10
190+harvested or processed outside the jurisdiction of the state, the municipality 11
191+[(1)] shall purchase the product harvested or processed within the 12
192+jurisdiction of the state [IF THE PRODUCT IS PRICED NOT MORE THAN SEVEN 13
193+PERCENT ABOVE THE SIMILAR PRODUCT HARVESTED OR PROCESSED 14
194+OUTSIDE THE JURISDICTION OF THE STATE; 15
195+(2) MAY PURCHASE THE PRODUCT HARVESTED OR 16
196+PROCESSED IN THE JURISDICTION OF THE STATE ONLY IF THE PRODUCT 17
197+IS PRICED NOT MORE THAN 15 PERCENT ABOVE THE PRODUCT 18
198+HARVESTED OR PROCESSED OUTSIDE THE JURISDICTION OF THE 19
199+STATE]. 20
200+ * Sec. 14. AS 29.71.040(b), as amended by sec. 13 of this Act, is amended to read: 21
201+(b) If a municipality that receives state money seeks to purchase a fisheries 22
202+product and a fisheries product harvested or processed within the jurisdiction of the 23
203+state is available that is of like quality compared with a similar fisheries product 24
204+harvested or processed outside the jurisdiction of the state, the municipality 25
205+(1) shall purchase the product harvested or processed within the 26
206+jurisdiction of the state if the product is priced not more than seven percent above 27
207+the similar product harvested or processed outside the jurisdiction of the state; 28
208+(2) may purchase the product harvested or processed in the 29
209+jurisdiction of the state only if the product is priced not more than 15 percent 30
210+above the product harvested or processed outside the jurisdiction of the state. 31 33-GH2386\A
211+HB0296a -7- HB 296
212+ New Text Underlined [DELETED TEXT BRACKETED]
213+
214+ * Sec. 15. AS 29.71.040(c) is amended to read: 1
215+(c) A solicitation by a municipality for the purchase of agricultural or fisheries 2
216+products must include written notice of the purchase requirements and limitations 3
217+under (a) and (b) of this section and specify that agricultural products harvested in the 4
218+state and fisheries products harvested or processed within the jurisdiction of the state 5
219+will be used where possible, subject to the limitations under (a) and (b) of this section. 6
220+A seller of agricultural or fisheries products shall submit an accurate copy of the 7
221+seller's current wholesale pricing list in the seller's response to a solicitation. 8
222+Submission of inaccurate pricing information may be cause for debarment under 9
223+AS 36.30.640 or civil penalties under AS 36.30.930. If a municipality that receives 10
224+state money purchases agricultural products harvested outside the state or fisheries 11
225+products harvested or processed outside the jurisdiction of the state, the municipal 12
226+officer responsible for the purchase shall certify in writing the reasons that agricultural 13
227+products harvested in the state or fisheries products harvested or processed within the 14
228+jurisdiction of the state were not purchased. 15
229+ * Sec. 16. AS 29.71.040(c), as amended by sec. 15 of this Act, is amended to read: 16
230+(c) A solicitation by a municipality for the purchase of agricultural or fisheries 17
231+products must include written notice of the purchase requirements and limitations 18
232+under (a) and (b) of this section and specify that agricultural products harvested in the 19
233+state and fisheries products harvested or processed within the jurisdiction of the state 20
234+will be used where possible, subject to the limitations under (a) and (b) of this section. 21
235+[A SELLER OF AGRICULTURAL OR FISHERIES PRODUCTS SHALL SUBMIT 22
236+AN ACCURATE COPY OF THE SELLER'S CURRENT WHOLESALE PRICING 23
237+LIST IN THE SELLER'S RESPONSE TO A SOLICITATION. SUBMISSION OF 24
238+INACCURATE PRICING INFORMATION MAY BE CAUSE FOR DEBARMENT 25
239+UNDER AS 36.30.640 OR CIVIL PENALTIES UNDER AS 36.30.930.] If a 26
240+municipality that receives state money purchases agricultural products harvested 27
241+outside the state or fisheries products harvested or processed outside the jurisdiction of 28
242+the state, the municipal officer responsible for the purchase shall certify in writing the 29
243+reasons that agricultural products harvested in the state or fisheries products harvested 30
244+or processed within the jurisdiction of the state were not purchased. 31 33-GH2386\A
245+HB 296 -8- HB0296a
246+ New Text Underlined [DELETED TEXT BRACKETED]
247+
248+ * Sec. 17. AS 36.15.050(a) is amended to read: 1
249+(a) When agricultural products are purchased by the state or by a school 2
250+district that receives state money, and an agricultural product harvested in the 3
251+state is available that is of like quality compared with a similar agricultural 4
252+product harvested outside the state, the state or school district shall purchase the 5
253+product [A PREFERENCE NOT LESS THAN SEVEN PERCENT NOR MORE 6
254+THAN 15 PERCENT SHALL BE APPLIED TO THE PRICE OF PRODUCTS] 7
255+harvested in the state. 8
256+ * Sec. 18. AS 36.15.050(a), as amended by sec. 17 of this Act, is amended to read: 9
257+(a) When agricultural products are purchased by the state or by a school 10
258+district that receives state money, a preference not less than seven percent nor more 11
259+than 15 percent shall be applied to the price of products [AND AN 12
260+AGRICULTURAL PRODUCT HARVESTED IN THE STATE IS AVAILABLE 13
261+THAT IS OF LIKE QUALITY COMPARED WITH A SIMILAR AGRICULTURAL 14
262+PRODUCT HARVESTED OUTSIDE THE STATE, THE STATE OR SCHOOL 15
263+DISTRICT SHALL PURCHASE THE PRODUCT] harvested in the state. 16
264+ * Sec. 19. AS 36.15.050(b) is amended to read: 17
265+(b) When fisheries products are purchased by the state or by a school district 18
266+that receives state money, and a fisheries product harvested or processed within 19
267+the jurisdiction of the state is available that is of like quality compared with a 20
268+similar fisheries product harvested or processed outside the jurisdiction of the 21
269+state, the state or school district shall purchase the product [A PREFERENCE 22
270+NOT LESS THAN SEVEN PERCENT NOR MORE THAN 15 PERCENT SHALL 23
271+BE APPLIED TO THE PRICE OF PRODUCTS] harvested or processed within the 24
272+jurisdiction of the state. 25
273+ * Sec. 20. AS 36.15.050(b), as amended by sec. 19 of this Act, is amended to read: 26
274+(b) When fisheries products are purchased by the state or by a school district 27
275+that receives state money, a preference not less than seven percent nor more than 28
276+15 percent shall be applied to the price of products [AND A FISHERIES 29
277+PRODUCT HARVESTED OR PROCESSED WITHIN THE JURISDICTION OF 30
278+THE STATE IS AVAILABLE THAT IS OF LIKE QUALITY COMPARED WITH 31 33-GH2386\A
279+HB0296a -9- HB 296
280+ New Text Underlined [DELETED TEXT BRACKETED]
281+
282+A SIMILAR FISHERIES PRODUCT HARVESTED OR PROCESSED OUTSIDE 1
283+THE JURISDICTION OF THE STATE, THE STATE OR SCHOOL DISTRICT 2
284+SHALL PURCHASE THE PRODUCT] harvested or processed within the jurisdiction 3
285+of the state. 4
286+ * Sec. 21. AS 36.15.050(c) is amended to read: 5
287+(c) A solicitation for the purchase of agricultural or fisheries products must 6
288+include written notice of the preferences under (a) and (b) of this section and specify 7
289+that agricultural products harvested in the state and fisheries products harvested or 8
290+processed within the jurisdiction of the state will be used where possible. A seller of 9
291+agricultural or fisheries products shall submit an accurate copy of the seller's 10
292+current wholesale pricing list in the seller's response to a solicitation. Submission 11
293+of inaccurate pricing information may be cause for debarment under 12
294+AS 36.30.640 or civil penalties under AS 36.30.930. If the state or a school district 13
295+that receives state money purchases agricultural products harvested outside the state or 14
296+fisheries products harvested or processed outside the jurisdiction of the state, the 15
297+officer responsible for the purchase shall certify in writing the reasons that agricultural 16
298+products harvested in the state or fisheries products harvested or processed within the 17
299+jurisdiction of the state were not purchased. 18
300+ * Sec. 22. AS 36.15.050(c), as amended by sec. 21 of this Act, is amended to read: 19
301+(c) A solicitation for the purchase of agricultural or fisheries products must 20
302+include written notice of the preferences under (a) and (b) of this section and specify 21
303+that agricultural products harvested in the state and fisheries products harvested or 22
304+processed within the jurisdiction of the state will be used where possible. [A SELLER 23
305+OF AGRICULTURAL OR FISHERIES PRODUCTS SHALL SUBMIT AN 24
306+ACCURATE COPY OF THE SELLER'S CURRENT WHOLESALE PRICING LIST 25
307+IN THE SELLER'S RESPONSE TO A SOLICITATION. SUBMISSION OF 26
308+INACCURATE PRICING INFORMATION MAY BE CAUSE FOR DEBARMENT 27
309+UNDER AS 36.30.640 OR CIVIL PENALTIES UNDER AS 36.30.930.] If the state 28
310+or a school district that receives state money purchases agricultural products harvested 29
311+outside the state or fisheries products harvested or processed outside the jurisdiction of 30
312+the state, the officer responsible for the purchase shall certify in writing the reasons 31 33-GH2386\A
313+HB 296 -10- HB0296a
314+ New Text Underlined [DELETED TEXT BRACKETED]
315+
316+that agricultural products harvested in the state or fisheries products harvested or 1
317+processed within the jurisdiction of the state were not purchased. 2
318+ * Sec. 23. AS 03.13.020 is repealed. 3
319+ * Sec. 24. The uncodified law of the State of Alaska is amended by adding a new section to 4
320+read: 5
321+REPORT TO THE LEGISLATURE. Not later than the 30th legislative day of the 6
322+First Regular Session of the Thirty-Fourth Alaska State Legislature, the Department of 7
323+Administration, with the assistance of the Department of Commerce, Community, and 8
324+Economic Development, shall prepare and present to the legislative committees having 9
325+jurisdiction over procurement an annual report evaluating the procurement preferences 10
326+established under AS 29.71.040(a) and (b), as amended by secs. 11 and 13 of this Act, and 11
327+AS 36.15.050(a) and (b), as amended by secs. 17 and 19 of this Act. The report must include 12
328+(1) annual data and year-over-year comparisons of 13
329+(A) the total value of Alaska products purchased; 14
330+(B) the type of products purchased, including raw or value-added 15
331+products and the amount purchased by volume or units; 16
332+(C) the number of Alaska businesses participating; and 17
333+(D) the number of Alaska businesses with sales to institutional buyers, 18
334+including state agencies, school districts, or local governments; and 19
335+(2) a recommendation from the Department of Administration, with input 20
336+from the Department of Commerce, Community, and Economic Development, addressing 21
337+whether to extend the changes made by secs. 11, 13, 15, 17, 19, and 21 of this Act. 22
338+ * Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to 23
339+read: 24
340+TRANSITION: PENDING SOLICITATIONS FOR PROCUREMENTS AND 25
341+CONTRACTS. (a) AS 29.71.040(a) - (c), as amended by secs. 11, 13, and 15 of this Act, and 26
342+AS 36.15.050(a) - (c), as amended by secs. 17, 19, and 21 of this Act, do not apply to 27
343+(1) solicitations for procurement and the resulting contracts if the solicitations 28
344+are pending on the effective date of those sections and if the invitation to bid or other
345+29
346+solicitation was issued before the effective date of those sections; and 30
347+(2) procurement contracts entered into before the effective date of those 31 33-GH2386\A
348+HB0296a -11- HB 296
349+ New Text Underlined [DELETED TEXT BRACKETED]
350+
351+sections, including extensions or amendments of those contracts. 1
352+(b) Notwithstanding (a) of this section, AS 29.71.040(a) - (c), as amended by secs. 11, 2
353+13, and 15 of this Act, and AS 36.15.050(a) - (c), as amended by secs. 17, 19, and 21 of this 3
354+Act, may apply to procurements or contracts described in (a)(1) of this section if all parties to 4
355+the procurement or contract agree in writing that the provisions apply to the solicitation or 5
356+contract. 6
357+ * Sec. 26. The uncodified law of the State of Alaska is amended by adding a new section to 7
358+read: 8
359+TRANSITION: REGULATIONS. The Board of Agriculture and Conservation and the 9
360+Department of Natural Resources may proceed to adopt regulations necessary to implement 10
361+the changes made by secs. 2 - 10 and 23 of this Act. The regulations take effect under 11
362+AS 44.62 (Administrative Procedure Act) but not before the effective date of the law 12
363+implemented by the regulations. 13
364+ * Sec. 27. Sections 1 and 26 of this Act take effect immediately under AS 01.10.070(c). 14
365+ * Sec. 28. Sections 11, 13, 15, 17, 19, and 21 of this Act take effect July 1, 2024. 15
366+ * Sec. 29. Sections 2 - 10 and 23 of this Act take effect July 1, 2025. 16
367+ * Sec. 30. Section 12, 14, 16, 18, 20, and 22 of this Act take effect June 30, 2029. 17