HB 298 — An Act establishing forgivable loan programs for farm development and improvement and for certain meat processing facilities; relating to a program of state inspection for certain meat processing facilities; establishing the Alaska Food Strategy Task Force; and providing for an effective date.

(a) The department shall establish a forgivable loan program in regulation, under which a recipient's loan may be forgiven by the department if the recipient implements a business plan approved by the department and begins processing meat, or increases the quantity of meat processed, in the recipient's facility.

A loan may be used by a recipient to fund the expansion of a facility that operates under a program of federal inspection that plans to increase processing of meat from animals raised in the state.

The forgivable loan program must allow a loan to be forgiven if the recipient implements the approved business plan and demonstrates a subsequent increase in -3- Enrolled HB 298 food production and distribution.

(b) In administering the forgivable loan program established under (a) of this section, the department (1) shall develop criteria for awarding a forgivable loan and a process for applying for a forgivable loan that includes requiring (A) a forgivable loan applicant to submit a business plan that provides (i) how the applicant will meet the criteria required by the department to approve a forgivable loan under this section;

(ii) a timeline for the applicant to meet the upgrades, construction, or expansion funded by the forgivable loan;

and (B) the department to (i) approve an applicant's business plan before awarding a forgivable loan;

(ii) visit an applicant's facility or the site of a facility proposed by an applicant to be upgraded, constructed, or expanded with forgivable loan funds;

(2) shall award forgivable loans preferentially to support facilities that prioritize seasonally feasible processing of meat from animals raised in the state;

(3) shall require a recipient of a forgivable loan to report to the department on the use of forgivable loan funds;

(4) may make forgivable loans of up to $250,000 to an applicant whose business plan is approved under this subsection for eligible expenses approved by the department;

and (5) shall, subject to appropriation, make the program available to applicants annually until all available funds have been distributed.

(c) A recipient of a forgivable loan made under this section may use forgivable loan funds for costs related to activity described in (a) of this section that are approved by the department, including costs of technical assistance and the purchase of equipment.

(d) The department may charge an administrative fee to the recipient of a Enrolled HB 298 -4- forgivable loan made under this section to cover the department's costs of administering the forgivable loan program.

The department (1) shall deduct the fee from the forgivable loan funds provided to the recipient;

and (2) may not charge a recipient more than three percent of the amount of a forgivable loan made to the recipient applicant under this section.

(e) The meat processing facilities forgivable loan fund is established in the department and consists of appropriations to the fund.

Appropriations to the fund do not lapse.

(f) A business plan approved by the department under (b)(1)(B)(i) of this section may be amended upon approval of the department.

(g) A forgivable loan recipient must repay to the fund any money not spent from a forgivable loan received under this section.

Forgivable loan funds used for expenses that are not eligible under (a) of this section or that are not accounted for in a recipient's business plan approved by the department under (b) of this section must also be repaid to the fund.

Any money repaid by a forgivable loan recipient shall be deposited into the general fund.

* Sec.

3.

AS 17.20.005 is amended to read:

Sec.

17.20.005.

Powers and duties of commissioner.

To carry out the requirements of this chapter, the commissioner may issue orders, regulations, permits, quarantines, and embargoes relating to (1) food offered to the public or sold, subject to AS 17.20.017, including (A) inspection of meat, fish, poultry, and other food products;

(B) standards of sanitation and handling methods for all phases of slaughtering, processing, storing, transporting, displaying, and selling;

(C) labeling;

and (D) the training, testing, and certification requirements for individuals who handle or prepare food, their supervisors, and their employers to ensure their knowledge of food safety and sanitation principles and requirements;

-5- Enrolled HB 298 (2) control and eradication of pests;

(3) enforcement of hazard analysis critical control point programs for seafood processing that are developed in cooperation with appropriate industry representatives or, to the extent not inconsistent with this chapter or regulations adopted under the authority of this chapter, that are established by regulations of the United States Food and Drug Administration as they may periodically be revised;

(4) labeling, subject to AS 17.20.013, and grading of milk and milk products and standards of sanitation for dairies offering to the public or selling milk or milk products to at least the minimum of current recommendations of the United States Public Health Service pasteurized milk ordinance as it may periodically be revised;

(5) standards and conditions for the operation and siting of aquatic farms and related hatcheries, including (A) restrictions on the use of chemicals;

and (B) requirements to protect the public from contaminated aquatic farm products that pose a risk to health;

(6) monitoring aquatic farms and aquatic farm products to ensure compliance with this chapter and, to the extent not inconsistent with this chapter or regulations adopted under the authority of this chapter, with the requirements of the national shellfish sanitation program manual of operations published by the United States Food and Drug Administration as it may periodically be revised;

(7) tests and analyses that may be made and hearings that may be held to determine whether the commissioner will issue a stop order or quarantine;

(8) transportation of, use of, disposal of, recalls of, or wanings concerning quarantined or embargoed items;

(9) cooperation with federal and other state agencies.

* Sec.

4.

AS 17.20 is amended by adding a new section to read:

Sec.

17.20.017.

Inspection of processed meat products.

(a) The department may adopt regulations to establish a program of state inspection for the processing and sale of meat products, including meat products from amenable species.

(b) The department may administer and enforce regulations adopted under (a) Enrolled HB 298 -6- of this section for a program of state inspection for the processing and sale of meat products from amenable species only if the program is approved by the federal government.

(c) Regulations adopted by the department under this section must impose requirements that are not less stringent than the requirements imposed under 21 U.S.C.

601 - 695 (Federal Meat Inspection Act) and 7 U.S.C.

1901 - 1907 (Humane Methods of Slaughter Act).

(d) Subject to (b) of this section, and except as provided in (e) of this section, if the department adopts regulations to establish a program of state inspection for the processing and sale of meat products, the department shall (1) license facilities that process meat products for sale to the public;

(2) adopt license requirements and fees for facilities that process meat products for sale to the public;

and (3) use officers and employees of the department to inspect facilities that are licensed under this subsection.

(e) The department may not establish, administer, or enforce a program of inspection under this section for facilities that process meat products from equines.

(f) In this section, (1) "amenable species" has the meaning given in 21 U.S.C.

601(w);

(2) "equine" means a member of the family Equidae.

* Sec.

5.

(a) The Alaska Food Strategy Task HB0298a -1- HB 298 New Text Underlined [DELETED TEXT BRACKETED] 32-LS1398\A Force is created in the legislative branch.

(1) fivetwo members from the Alaska Food Policy Council selected by the governing board;board of the Alaska Food Policy Council;

(2) fourone membersmember from the Institute of Social and Economic Research at the University of Alaska StateAnchorage Legislatureselected appointedby asthe follows:Board of Regents;

(A)(3) twoone membersmember from the senate,Alaska appointedFarm jointlyBureau selected by the presidentgoverning ofboard the senate and speaker of the houseAlaska ofFarm representatives;Bureau;

(B)-7- twoEnrolled membersHB from298 the(4) houseone ofmember representatives,from appointed jointly by the presidentAlaska ofIndustrial theDevelopment senate and speakerExport ofAuthority selected by the housemembers of representatives;the authority;

(C)and at(5) leastfour onemembers member from the minority caucus of the senateAlaska orState houseLegislature ofappointed representatives.as follows:

(A) one member from the minority caucus of the senate and one member from the majority caucus of the senate, appointed jointly by the president of the senate and speaker of the house of representatives;

(B) one member from the minority caucus of the house of representatives and one member from the majority caucus of the house of representatives, appointed jointly by the president of the senate and speaker of the house of representatives.

and (5) the commissioner of education and early development.development;

(d)and The(6) remainder of the taskcommissioner force consists of 21transportation membersand selectedpublic byfacilities. the executive board, as follows:

(d) The remainder of the task force consists of 21 members selected by the executive board, with due regard for broad geographic representation of the state, as follows:

HB 298 -2- HB0298a New Text Underlined [DELETED TEXT BRACKETED] 32-LS1398\A (10) two members from the food service industry;

Enrolled HB 298 -8- (11) one youth member;member from the Alaska Future Farmers of America Association or the Alaska 4-H Program;

In this subsection, (1) "production" includes growing and harvesting, food processing, packaging, distribution, retail, and consumption and waste management;

HB0298a-9- -3-Enrolled HB 298 New Text Underlined [DELETED TEXT BRACKETED] 32-LS1398\A (j) The task force shall present state policy, legislation, and strategy implementation recommendations in the following sixseven integrated focus areas:

(3) enhancing the climate for food and beverage processing or distribution businesses;

and (6) ensuring food security in ruralall communities in the state, including those that are and urbanare communities.not connected to the main road system of the state;

(k)and The(7) taskimproving forcetransportation shall,and ininfrastructure itsto considerationtransfer ofand thedeliver sixfood integratedin focus areas under (j) of this section, address, at a minimum, the followingstate. elements:

(k) The task force shall, in its consideration of the seven integrated focus areas under (j) of this section, address, at a minimum, the following elements:

(6) infrastructure needs;needs and storage;

(9) varying scales of food system and storage development;

(12) Alaska tribal relations as they pertain to food securitysecurity, food sovereignty, and foodlocal sovereignty;storage methods;

Enrolled HB 298 -10- (l) The task force shall establish advisory committees focused on addressing each of the sixseven integrated focus areas under (j) of this section and the minimum elements under (k) of this section, and each task force member shall serve on one or more of these committees.

(m) The task force shall present recommendations for metrics appropriate for HB 298 -4- HB0298a New Text Underlined [DELETED TEXT BRACKETED] 32-LS1398\A evaluating food system effects and food security outcomes.

and (5) equitable.equally accessible.

(o) The task force shall develop and present recommendations in three of the integrated focus areas under (j) of this section by August 1, 2023, and recommendations in the remaining three integrated focus areas under (j) of this section by August 1, 2024.

(p) The task force shall continue the efforts of and review and, when applicable, implement the recommendations of the Alaska Food Security and Independence Task Force established by Administrative Order No.

331.

3.6.

The uncodified law of the State of Alaska isenacted amendedin bysec. adding a new section to read:

5(c) of this Act is amended to read:

(c) The following commissioners, or their designees, serve as members of the task force:

(1) the commissioner of natural resources;

(2) the commissioner of fish and game;

(3) the commissioner of health [AND SOCIAL SERVICES];

(4) the commissioner of commerce, community, and economic development;

(5) the commissioner of education and early development;

and (6) the commissioner of transportation and public facilities.

* Sec.

7.

The uncodified law of the State of Alaska is amended by adding a new section to -11- Enrolled HB 298 read:

25 of this Act shall begin work asnot soonlater asthan a30 majoritydays after both the senate and the house of itsrepresentatives membershiphave hasorganized beenin selected.the First Regular Session of the Thirty-Third Alaska State Legislature.

4.8.

SectionsThe 1uncodified andlaw 2of the State of thisAlaska Actis areamended repealedby Juneadding 30,a 2025.new section to read:

TRANSITION:

REGULATIONS.

The Department of Natural Resources shall adopt regulations necessary to implement AS 03.20.200 and 03.20.210, enacted by sec.

2 of this Act.

The regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the effective date of the law implemented by the regulation.

5.9.

ThisSections Act1, takes5, effectand immediately6 underof ASthis 01.10.070(c).Act are repealed June 30, 2025.

HB0298a* -5-Sec. HB 298 New Text Underlined [DELETED TEXT BRACKETED]

10.

Sections 2 - 4 and 6 of this Act take effect July 1, 2022.

* Sec.

11.

Except as provided in sec.

10 of this Act, this Act takes effect immediately under AS 01.10.070(c).

Enrolled HB 298 -12-