Alaska 33rd Legislature (2023-2024) Status: In Committee

HB 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.

Last action — (H) REFERRED TO FINANCE

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 33rd Legislature (2023-2024). It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

322 added · 164 removed

Plain-language change summary

The recent amendment to HB 296 expands the scope of support for agriculture in Alaska. It adds shipping costs associated with agricultural products as an eligible expense, allowing both individuals and companies to seek assistance for the transportation of goods within the state. This change is significant because it can help reduce costs for local farmers and processors, ultimately supporting the state's agricultural economy and ensuring more local products reach consumers.

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33-GH2386\S CS FOR HOUSE BILL NO.
33-GH2386\A HOUSE BILL NO.
296(RES) IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-THIRD LEGISLATURE - SECOND SESSION BY THE HOUSE RESOURCES COMMITTEE Referred:
296 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-THIRD LEGISLATURE - SECOND SESSION BY THE HOUSE RULES COMMITTEE BY REQUEST OF THE GOVERNOR Introduced:
Finance Sponsor(s):
1/26/24 Referred:
HOUSE RULES COMMITTEE BY REQUEST OF THE GOVERNOR A BILL FOR AN ACT ENTITLED "An Act relating to the Board of Agriculture and Conservation;
Resources, Finance A BILL FOR AN ACT ENTITLED "An Act relating to the powers of the board of agriculture and conservation;
relating to a report to the legislature on municipal and state procurement preferences for agricultural products harvested in the state and fisheries products harvested or processed in the state;
relating to municipal and state procurement preferences for agricultural products harvested in the state and fisheries products harvested or processed in the state;
(a) The Board of Agriculture and Conservation (AS 03.09.010) may (1) make a loan to HB0296b -1- CSHB 296(RES) New Text Underlined [DELETED TEXT BRACKETED] 33-GH2386\S (A) an individual resident farmer, homesteader, or a partnership or corporation composed of farmers and homesteaders for (i) clearing land for agricultural purposes;
(a) The Board of Agriculture and Conservation (AS 03.09.010) may (1) make a loan to HB0296a -1- HB 296 New Text Underlined [DELETED TEXT BRACKETED] 33-GH2386\A (A) an individual resident farmer, homesteader, or a partnership or corporation composed of farmers and homesteaders for (i) clearing land for agricultural purposes;
[OR] (iv) the purchase of livestock or machinery;
or (iv) the purchase of livestock or machinery;
(v) the cost of shipping to and within the state for the purposes listed in (i) - (iv) of this subparagraph;
or (vi) in-state manufacturing of food or production of animal feed;
(v) the cost of shipping to and within the state for the purposes listed in (i) - (iv) of this subparagraph;
or (v) shipping costs to and within the state;
or (vi) in-state manufacturing of food or production of animal feed;
(5) enter into agreements with private lending institutions, other state CSHB 296(RES) -2- HB0296b New Text Underlined [DELETED TEXT BRACKETED] 33-GH2386\S agencies, or agencies of the federal government to carry out the purposes of this chapter;
(5) enter into agreements with private lending institutions, other state agencies, or agencies of the federal government to carry out the purposes of this chapter;
(7) refinance a debt obligation incurred by a borrower under this section or through another lender for a purpose authorized under (1) of this subsection if the borrower otherwise qualifies for a loan under AS 03.10.010 - 03.10.060.
(7) refinance a debt obligation incurred by a borrower under this section or through another lender for a purpose authorized by (1) of this subsection if the borrower otherwise qualifies for a loan under AS 03.10.010 - HB 296 -2- HB0296a New Text Underlined [DELETED TEXT BRACKETED] 33-GH2386\A 03.10.060.
(2) may not, when added to the outstanding balance of other loans made under this chapter, exceed a total outstanding balance of $3,000,000, adjusted annually for inflation on July 1 of each year based on the percentage increase in the Consumer Price Index for all urban consumers for urban Alaska during the previous calendar year, as determined by the United States Department of Labor, Bureau of Labor Statistics [$1,000,000];
(2) may not, when added to the outstanding balance of other loans made under this chapter, exceed the maximum loan amount permitted for any borrower established by the Board of Agriculture and Conservation in regulation [A TOTAL OUTSTANDING BALANCE OF $1,000,000];
(3) shall be secured by a real estate or chattel mortgage of any priority, except that the portion of a loan that exceeds $500,000, when added to prior indebtedness that is secured by the same property, must be secured by a first mortgage;
(3) shall be secured by a first priority real estate or chattel mortgage [OF ANY PRIORITY, EXCEPT THAT THE PORTION OF A LOAN THAT EXCEEDS $500,000, WHEN ADDED TO PRIOR INDEBTEDNESS THAT IS SECURED BY THE SAME PROPERTY, MUST BE SECURED BY A FIRST MORTGAGE];
(c) A short-term loan, to be amortized within one year, not to exceed, for [$350,000 TO] any one borrower, an amount set by the Board of Agriculture and Conservation in regulation, may be made for operating purposes, except that a loan made under this subsection may not exceed $500,000 [$200,000] unless the loan is HB0296b -3- CSHB 296(RES) New Text Underlined [DELETED TEXT BRACKETED] 33-GH2386\S made to a borrower in a farm disaster area declared under AS 03.10.058.
(c) A short-term loan, to be ortized within one year, not to exceed an amount set by the Board of Agriculture and Conservation in regulation [$350,000] to any one borrower, may be made for operating purposes, except that a loan made under this subsection may not exceed $500,000 [$200,000] unless the loan is made to a borrower in a farm disaster area declared under AS 03.10.058.
* Sec.
HB0296a -3- HB 296 New Text Underlined [DELETED TEXT BRACKETED] 33-GH2386\A * Sec.
or (4) be made for clearing land other than land that has been classified by the United States Department of Agriculture, Natural Resources Conservation CSHB 296(RES) -4- HB0296b New Text Underlined [DELETED TEXT BRACKETED] 33-GH2386\S Service, under the Land Capability Classification System as having agricultural potential for the production of annual crops or hay [,] or for pasture.
or (4) be made for clearing land other than land that has been classified by the United States Department of Agriculture, Natural Resources Conservation Service, under the Land Capability Classification System as having agricultural potential for the production of annual crops or hay, or for pasture.
(2) 80 percent revenue protection for the third policy year;
HB 296 -4- HB0296a New Text Underlined [DELETED TEXT BRACKETED] 33-GH2386\A (2) 80 percent revenue protection for the third policy year;
and (4) if a producer purchases a minimum of 55 percent revenue protection coverage, 70 percent revenue protection for a policy year after the fourth policy year.
and (4) if a producer purchases a minimum of 55 percent revenue protection coverage, 70 percent revenue protection for the fifth policy year and any future year.
AS 03.13.050 is amended to read:
AS 03.13.050 is amended by adding a new paragraph to read:
Sec.
03.13.050.
Definitions.
In this chapter, (1) "corporation" means the Federal Crop Insurance Corporation (7 U.S.C.
1503);
AS 03.13.020 is repealed.
AS 29.71.040(a) is amended to read:
(a) If a municipality that receives state money seeks to purchase an agricultural product and an agricultural product harvested in the state is available that is of like quality compared with a similar agricultural product harvested outside the state, the municipality [(1)] shall purchase the product harvested in the state [IF THE PRODUCT IS PRICED NOT MORE THAN SEVEN PERCENT ABOVE THE SIMILAR PRODUCT HARVESTED OUTSIDE THE STATE;
(2) MAY PURCHASE THE PRODUCT HARVESTED IN THE STATE ONLY IF THE PRODUCT IS PRICED NOT MORE THAN 15 PERCENT ABOVE THE SIMILAR PRODUCT HARVESTED OUTSIDE THE STATE].
AS 29.71.040(a), as amended by sec.
11 of this Act, is amended to read:
(a) If a municipality that receives state money seeks to purchase an agricultural product and an agricultural product harvested in the state is available that is of like quality compared with a similar agricultural product harvested outside the state, the municipality HB0296a -5- HB 296 New Text Underlined [DELETED TEXT BRACKETED] 33-GH2386\A (1) shall purchase the product harvested in the state if the product is priced not more than seven percent above the similar product harvested outside the state;
(2) may purchase the product harvested in the state only if the product is priced not more than 15 percent above the similar product harvested outside the state.
* Sec.
13.
AS 29.71.040(b) is amended to read:
(b) If a municipality that receives state money seeks to purchase a fisheries product and a fisheries product harvested or processed within the jurisdiction of the state is available that is of like quality compared with a similar fisheries product harvested or processed outside the jurisdiction of the state, the municipality [(1)] shall purchase the product harvested or processed within the jurisdiction of the state [IF THE PRODUCT IS PRICED NOT MORE THAN SEVEN PERCENT ABOVE THE SIMILAR PRODUCT HARVESTED OR PROCESSED OUTSIDE THE JURISDICTION OF THE STATE;
(2) MAY PURCHASE THE PRODUCT HARVESTED OR PROCESSED IN THE JURISDICTION OF THE STATE ONLY IF THE PRODUCT IS PRICED NOT MORE THAN 15 PERCENT ABOVE THE PRODUCT HARVESTED OR PROCESSED OUTSIDE THE JURISDICTION OF THE STATE].
* Sec.
14.
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AS 29.71.040(b), as amended by sec.
13 of this Act, is amended to read:
(b) If a municipality that receives state money seeks to purchase a fisheries product and a fisheries product harvested or processed within the jurisdiction of the state is available that is of like quality compared with a similar fisheries product harvested or processed outside the jurisdiction of the state, the municipality (1) shall purchase the product harvested or processed within the jurisdiction of the state if the product is priced not more than seven percent above the similar product harvested or processed outside the jurisdiction of the state;
(2) may purchase the product harvested or processed in the jurisdiction of the state only if the product is priced not more than 15 percent above the product harvested or processed outside the jurisdiction of the state.
HB 296 -6- HB0296a New Text Underlined [DELETED TEXT BRACKETED] 33-GH2386\A * Sec.
15.
AS 29.71.040(c) is amended to read:
(c) A solicitation by a municipality for the purchase of agricultural or fisheries products must include written notice of the purchase requirements and limitations under (a) and (b) of this section and specify that agricultural products harvested in the state and fisheries products harvested or processed within the jurisdiction of the state will be used where possible, subject to the limitations under (a) and (b) of this section.
A seller of agricultural or fisheries products shall submit an accurate copy of the seller's current wholesale pricing list in the seller's response to a solicitation.
Submission of inaccurate pricing information may be cause for debarment under AS 36.30.640 or civil penalties under AS 36.30.930.
If a municipality that receives state money purchases agricultural products harvested outside the state or fisheries products harvested or processed outside the jurisdiction of the state, the municipal officer responsible for the purchase shall certify in writing the reasons that agricultural products harvested in the state or fisheries products harvested or processed within the jurisdiction of the state were not purchased.
* Sec.
16.
AS 29.71.040(c), as amended by sec.
15 of this Act, is amended to read:
(c) A solicitation by a municipality for the purchase of agricultural or fisheries products must include written notice of the purchase requirements and limitations under (a) and (b) of this section and specify that agricultural products harvested in the state and fisheries products harvested or processed within the jurisdiction of the state will be used where possible, subject to the limitations under (a) and (b) of this section.
[A SELLER OF AGRICULTURAL OR FISHERIES PRODUCTS SHALL SUBMIT AN ACCURATE COPY OF THE SELLER'S CURRENT WHOLESALE PRICING LIST IN THE SELLER'S RESPONSE TO A SOLICITATION.
SUBMISSION OF INACCURATE PRICING INFORMATION MAY BE CAUSE FOR DEBARMENT UNDER AS 36.30.640 OR CIVIL PENALTIES UNDER AS 36.30.930.] If a municipality that receives state money purchases agricultural products harvested outside the state or fisheries products harvested or processed outside the jurisdiction of the state, the municipal officer responsible for the purchase shall certify in writing the reasons that agricultural products harvested in the state or fisheries products harvested or processed within the jurisdiction of the state were not purchased.
HB0296a -7- HB 296 New Text Underlined [DELETED TEXT BRACKETED] 33-GH2386\A * Sec.
17.
AS 36.15.050(a) is amended to read:
(a) When agricultural products are purchased by the state or by a school district that receives state money, and an agricultural product harvested in the state is available that is of like quality compared with a similar agricultural product harvested outside the state, the state or school district shall purchase the product [A PREFERENCE NOT LESS THAN SEVEN PERCENT NOR MORE THAN 15 PERCENT SHALL BE APPLIED TO THE PRICE OF PRODUCTS] harvested in the state.
* Sec.
18.
AS 36.15.050(a), as amended by sec.
17 of this Act, is amended to read:
(a) When agricultural products are purchased by the state or by a school district that receives state money, a preference not less than seven percent nor more than 15 percent shall be applied to the price of products [AND AN AGRICULTURAL PRODUCT HARVESTED IN THE STATE IS AVAILABLE THAT IS OF LIKE QUALITY COMPARED WITH A SIMILAR AGRICULTURAL PRODUCT HARVESTED OUTSIDE THE STATE, THE STATE OR SCHOOL DISTRICT SHALL PURCHASE THE PRODUCT] harvested in the state.
* Sec.
19.
AS 36.15.050(b) is amended to read:
(b) When fisheries products are purchased by the state or by a school district that receives state money, and a fisheries product harvested or processed within the jurisdiction of the state is available that is of like quality compared with a similar fisheries product harvested or processed outside the jurisdiction of the state, the state or school district shall purchase the product [A PREFERENCE NOT LESS THAN SEVEN PERCENT NOR MORE THAN 15 PERCENT SHALL BE APPLIED TO THE PRICE OF PRODUCTS] harvested or processed within the jurisdiction of the state.
* Sec.
20.
AS 36.15.050(b), as amended by sec.
19 of this Act, is amended to read:
(b) When fisheries products are purchased by the state or by a school district that receives state money, a preference not less than seven percent nor more than 15 percent shall be applied to the price of products [AND A FISHERIES PRODUCT HARVESTED OR PROCESSED WITHIN THE JURISDICTION OF THE STATE IS AVAILABLE THAT IS OF LIKE QUALITY COMPARED WITH HB 296 -8- HB0296a New Text Underlined [DELETED TEXT BRACKETED] 33-GH2386\A A SIMILAR FISHERIES PRODUCT HARVESTED OR PROCESSED OUTSIDE THE JURISDICTION OF THE STATE, THE STATE OR SCHOOL DISTRICT SHALL PURCHASE THE PRODUCT] harvested or processed within the jurisdiction of the state.
* Sec.
21.
AS 36.15.050(c) is amended to read:
(c) A solicitation for the purchase of agricultural or fisheries products must include written notice of the preferences under (a) and (b) of this section and specify that agricultural products harvested in the state and fisheries products harvested or processed within the jurisdiction of the state will be used where possible.
A seller of agricultural or fisheries products shall submit an accurate copy of the seller's current wholesale pricing list in the seller's response to a solicitation.
Submission of inaccurate pricing information may be cause for debarment ud ner AS 36.30.640 or civil penalties under AS 36.30.930.
If the state or a school district that receives state money purchases agricultural products harvested outside the state or fisheries products harvested or processed outside the jurisdiction of the state, the officer responsible for the purchase shall certify in writing the reasons that agricultural products harvested in the state or fisheries products harvested or processed within the jurisdiction of the state were not purchased.
* Sec.
22.
AS 36.15.050(c), as amended by sec.
21 of this Act, is amended to read:
(c) A solicitation for the purchase of agricultural or fisheries products must include written notice of the preferences under (a) and (b) of this section and specify that agricultural products harvested in the state and fisheries products harvested or processed within the jurisdiction of the state will be used where possible.
[A SELLER OF AGRICULTURAL OR FISHERIES PRODUCTS SHALL SUBMIT AN ACCURATE COPY OF THE SELLER'S CURRENT WHOLESALE PRICING LIST IN THE SELLER'S RESPONSE TO A SOLICITATION.
SUBMISSION OF INACCURATE PRICING INFORMATION MAY BE CAUSE FOR DEBARMENT UNDER AS 36.30.640 OR CIVIL PENALTIES UNDER AS 36.30.930.] If the state or a school district that receives state money purchases agricultural products harvested outside the state or fisheries products harvested or processed outside the jurisdiction of the state, the officer responsible for the purchase shall certify in writing the reasons HB0296a -9- HB 296 New Text Underlined [DELETED TEXT BRACKETED] 33-GH2386\A that agricultural products harvested in the state or fisheries products harvested or processed within the jurisdiction of the state were not purchased.
* Sec.
23.
AS 03.13.020 is repealed.
* Sec.
24.
Not later than the 30th legislative day of the First Regular Session of the Thirty-Fourth Alaska State Legislature, the Department of HB0296b -5- CSHB 296(RES) New Text Underlined [DELETED TEXT BRACKETED] 33-GH2386\S Administration, with the assistance of the Department of Commerce, Community, and Economic Development, shall prepare and present to the legislative committees having jurisdiction over procurement a report evaluating the procurement preferences established under AS 29.71.040(a) and (b) and AS 36.15.050(a) and (b).
Not later than the 30th legislative day of the First Regular Session of the Thirty-Fourth Alaska State Legislature, the Department of Administration, with the assistance of the Department of Commerce, Community, and Economic Development, shall prepare and present to the legislative committees having jurisdiction over procurement an annual report evaluating the procurement preferences established under AS 29.71.040(a) and (b), as amended by secs.
11 and 13 of this Act, and AS 36.15.050(a) and (b), as amended by secs.
17 and 19 of this Act.
(B) the type of products purchased, including raw and value-added products, and the amount purchased by volume or units;
(B) the type of products purchased, including raw or value-added products and the amount purchased by volume or units;
(C) the number of businesses participating in the state;
(C) the number of Alaska businesses participating;
and (D) the number of businesses in the state with sales to institutional buyers, including state agencies, school districts, or local governments;
and (D) the number of Alaska businesses with sales to institutional buyers, including state agencies, school districts, or local governments;
and (2) a recommendation from the Department of Administration, with input from the Department of Commerce, Community, and Economic Development, addressing potential statutory changes to make purchase preference programs more effective at stimulating state agriculture.
and (2) a recommendation from the Department of Administration, with input from the Department of Commerce, Community, and Economic Development, addressing whether to extend the changes made by secs.
11, 13, 15, 17, 19, and 21 of this Act.
13.
25.
PENDING SOLICITATIONS FOR PROCUREMENTS AND CONTRACTS.
(a) AS 29.71.040(a) - (c), as amended by secs.
11, 13, and 15 of this Act, and AS 36.15.050(a) - (c), as amended by secs.
17, 19, and 21 of this Act, do not apply to (1) solicitations for procurement and the resulting contracts if the solicitations are pending on the effective date of those sections and if the invitation to bid or other solicitation was issued before the effective date of those sections;
and (2) procurement contracts entered into before the effective date of those HB 296 -10- HB0296a New Text Underlined [DELETED TEXT BRACKETED] 33-GH2386\A sections, including extensions or amendments of those contracts.
(b) Notwithstanding (a) of this section, AS 29.71.040(a) - (c), as amended by secs.
11, 13, and 15 of this Act, and AS 36.15.050(a) - (c), as amended by secs.
17, 19, and 21 of this Act, may apply to procurements or contracts described in (a)(1) of this section if all parties to the procurement or contract agree in writing that the provisions apply to the solicitation or contract.
* Sec.
26.
The uncodified law of the State of Alaska is amended by adding a new section to read:
TRANSITION:
The Board of Agriculture and Conservation and the Department of Natural Resources may adopt regulations necessary to implement the changes made by secs.
The Board of Agriculture and Conservation and the Department of Natural Resources may proceed to adopt regulations necessary to implement the changes made by secs.
2 - 11 of this Act.
2 - 10 and 23 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.
The regulations take effect under AS 44.62 (Administrative Procedure Act) but not before the effective date of the law implemented by the regulations.
14.
27.
Sections 1 and 13 of this Act take effect immediately under AS 01.10.070(c).
Sections 1 and 26 of this Act take effect immediately under AS 01.10.070(c).
15.
28.
Section 3 of this Act takes effect July 1, 2024.
Sections 11, 13, 15, 17, 19, and 21 of this Act take effect July 1, 2024.
16.
29.
Sections 2 and 4 - 11 of this Act take effect July 1, 2025.
Sections 2 - 10 and 23 of this Act take effect July 1, 2025.
CSHB 296(RES) -6- HB0296b New Text Underlined [DELETED TEXT BRACKETED]
* Sec.
30.
Section 12, 14, 16, 18, 20, and 22 of this Act take effect June 30, 2029.
HB0296a -11- HB 296 New Text Underlined [DELETED TEXT BRACKETED]
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Action History

  1. (H) REFERRED TO FINANCE

  2. (H) FIN REFERRAL ADDED AFTER RES

  3. (H) FN3: (DNR)

  4. (H) FN2: ZERO(CED)

  5. (H) FN1: ZERO(CED)

  6. (H) DP: MEARS, ARMSTRONG, DIBERT, MCCABE, SADDLER, WRIGHT, BAKER, RAUSCHER, MCKAY

  7. (H) RES RPT CS(RES) NEW TITLE 9DP

  8. (H) Moved CSHB 296(RES) Out of Committee -- Delayed to Immediately Following DNR --

  9. (H) RESOURCES at 01:00 PM BARNES 124

  10. (H) Minutes (HRES)

  11. (H) Heard & Held

  12. (H) RESOURCES at 01:00 PM BARNES 124

  13. (H) Minutes (HRES)

  14. (H) Heard & Held -- Delayed to Immediately Following DNR --

  15. (H) RESOURCES at 01:00 PM BARNES 124

  16. (H) Heard & Held -- Delayed to 15 Minutes Following Session --

  17. (H) RESOURCES at 01:00 PM BARNES 124

  18. (H) GOVERNOR'S TRANSMITTAL LETTER

  19. (H) FN3: (DNR)

  20. (H) FN2: ZERO(CED)

  21. (H) FN1: ZERO(CED)

  22. (H) RES

  23. (H) READ THE FIRST TIME - REFERRALS

Sponsors

  • House Rules · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 64 not signed on

Sponsors (1)

  • House Rules

Co-sponsors (0)

None.

Not signed on (64)

64 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors HB 296?
HB 296 is sponsored by House Rules.
What is the current status of HB 296?
This bill died with 33rd Legislature (2023-2024). It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 296?
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