FOOD FREEDOM (HB 251) + CROP ACT – ARLF PROVISIONS ONLY (SB 211) – PASSED

HB 251 was introduced by Rep. Rauscher on January 16. On March 27 the House Labor & Commerce Committee adopted the committee substitute (CS) of HB 251 and passed it out of committee. The bill was heard and held in House Resources on April 8, April 15 (with an opportunity for public testimony), and April 17 when it was passed out of committee to head to the Floor. On Monday, May 6 HB 251 was passed unanimously on the House Floor after the consideration of 8 amendments and the passing of one. The bill was then referred to the Senate with a referral to the Senate Labor & Commerce Committee. It was heard on Thursday, May 9th in committee, with public testimony.

On Friday, May 10, HB 251 was heard again in Senate Labor & Commerce. They reviewed that there was interest raised to include portions of the CROP Act into HB251, and Chair Bjorkman said they would hold the bill while they waited for a Committee Substitute. Watch that very short update here. On Saturday, May 11, the L&S committee took up the bill for a final time and adopted the CS that was alluded to on Friday. Crystal Koeneman, ADEC Legislative Liaison, and Rena Miller, ADNR Special Assistant, were both present to review the CS. ADNR gave an overview of the changes, which added the Board of Ag/Agricultural Revolving Loan Fund (ARLF) portion of the CROP Act to HB 251. AFPC supports most of the provisions in this section, however, we are disappointed that the quorum for decision-making at the Board of Agriculture was reduced from 5 to 4 members. We will be working to follow the Board more closely and provide updates to our food network along the way.

Sen. Gray Jackson asked if the CS here was the same as the CROP Act sections that the committee had reviewed for that separate bill earlier in the session. ADNR replied that the only difference was the ordering of a list of eligible activities for ARLF loans to ensure shipping related to manufacturing is eligible.

ADEC then gave a review of how the CS additions from the CROP Act are related to the underlying Food Freedom bill. She noted that the addition to ARLF of manufacturing and processing activities is helpful to the production of homemade foods and animal/herd share producers. Both ADNR and ADEC provided zero fiscal notes, and both spoke to no additional costs being envisioned. ADNR noted that if the expanded ARLF provisions drive up demand, they will come back to the Legislature for more resources. Sen. Bjorkman spoke to his enthusiasm for this bill, and encouragement and hope for additional legislation passing that supports small farms. You can read the CS here, and watch the hearing here.

On Monday, May 14, the new version of the bill – SCS CSHB 251(L&C) – hit the Senate Floor just after 7 PM. Senator Kiehl offered Amendment 1 to the bill, adding language around the meat/herd share language. He reviewed that the bill allows ADEC to, after a complaint, if ADEC finds unsafe or unsanitary conditions they can order the “cessation of a practice or producer that is unsafe, unsanitary, or otherwise a risk to public health”. He said that the bill sponsor (Rep. Rauscher) was supportive of the amendment, and it passed unanimously. Sen. Bjorkman gave an overview and spoke in support of the bill, and Sen. Hughes spoke to her support as well. The Senate voted 20-0 in support of passing the final bill – SCS CSHB 251(L&C) am S (including a title change vote, which also passed unanimously). You can watch the Floor session discussion here.

At 2 PM on Wednesday, Sponsor Rep. Rauscher reviewed the changes that had been made in Senate L&C and asked the members to concur. Rep. Vance stated she may have a conflict because her husband is the Chair of the Board of Agriculture. There was opposition, and so she was required to vote. The House voted to concur 38 to 1, with Rep. Eastman voting no. You can watch the passage of HB 251, including the ARLF provisions, here. HB 251 as amended now heads to the Governor’s desk.

SNAP IMPROVEMENT/BBCE BILLS (HB 196/SB 149) PASSED WITHIN HB 344

(AFPC supports these bills, read our policy brief here)
SB 149 was referred to Senate Finance on February 21 and was heard with invited and public testimony on Monday, April 22. HB 196 was heard for the first time in House Finance on May 1, which was recapped in last week’s OTM. The bill was heard again on Thursday, May 2 at 10 AM.

HB 196 started off the week still in House Finance. On Monday, May 13 in House Finance, Rep. Hannan offered Amendment 2 to the Senior Benefits Bill, SB 170, which would wrap the language of HB 196 into SB 170. Rep. Stapp then offered an amendment to that amendment, proposing to change the upper poverty level limit to 150% of FPL (federal poverty limit) instead of 200%. He expressed his support for the removal of the asset test but expressed concerns about the increased eligibility income limit and the impacts of additional participants and the impacts on the Division and their ability to process additional applications. Director Etheridge also noted that there is some federal rulemaking underway around the TANF (Temporary Assistance for Needy Families) that would require states to move to 200%. Rep. Stapp additionally asked for assurance from Director Ethridge that there wouldn’t be a new SNAP backlog a year from now if this bill were to go into effect. Director Ethridge noted that she is doing everything she can to not fall back into that space. There was additional discussion around the FPL amendment and continued concern around the addition of eligible participants and the potential to fall back into a SNAP backlog. The amendment to the amendment failed on a 4-6 vote, leaving the FPL at up to 200%. The underlying amendment, to wrap BBCE into SB 170 passed on a 7-3 vote. We’re grateful for the Representatives who voted in favor of this addition: Reps. Hannan, Foster, Edgmon, Ortiz, Josephson, Galvin, and Cronk. SB 170, as amended, was moved from House Finance. You can watch the Finance meeting here. You can read the bill here CSSB 170(FIN).

On Tuesday, the BBCE language moved yet again. The underlying senior benefits provisions of SB 170 were added into a different bill on the House Floor – SB 147. Meanwhile, on the Senate Floor — See HB 344 for the rest of the story of passing BBCE.

MEDICAID 1115 WAIVER (HB 344/SB 241) + SNAP IMPROVEMENT/BBCE BILLS (HB 196/SB 149) PASSED

(AFPC supports these bills) Senate HSS Committee passed HB 344 out of committee on April 2. HB 344 was taken up on the Senate Floor on Tuesday, May 14. There were two amendments offered, both of which were adopted. The first amendment, offered by Sen. Tobin, opened up Medicaid reimbursement for all Medicaid-eligible children receiving services in schools (vs. the existing restriction to only kids with an individualized education program, IEP). Amendment 1 passed without objection.

Sen. Giessel moved amendment #2, inserting the BBCE policy language into HB 344. She spoke to the policy, highlighting the opportunities for Alaskans to rise out of poverty through the implementation of this policy. There was a lengthy at ease, after which Sen. Wilson spoke to his concerns around the expanded eligibility and the costs of the amendment to the Department of Health after the backlog and suggested that it needs to be vetted through a committee (note it has been, through many committees, vetted thoroughly in both the House and the Senate). Sen. Dunbar spoke to the committee vetting that had occurred. Senator Wielachowski expressed his support. Sen. Kawasaki spoke to the vetting in committees and his support for the amendment. The Senate voted to adopt amendment 2 on a 14-6 vote, with no votes coming from Senators Bjorkman, Hughes, Kaufman, Shower, Stedman, and Wilson. Both Sen. Bjorkman and Hughes are on the executive committee for the Alaska Food Strategies Task Force. Sen. Giessel then offered a third amendment that would have included child care policy from HB 89 into HB 344. There were extensive concerns expressed by various Senators, a number of at-eases, and Sen. Giessel withdrew amendment #3 for HB 344. (Note: this policy language was moved into another bill, SB 189, which later passed late on Wednesday night!). Sen. Wilson then spoke to the underlying importance of the Medicaid 1115 waiver within HB 344. The Senate voted to pass HB 344 as amended unanimously. You can watch the entire conversation here.

At 9:30 PM on Wednesday, the House took up concurrence of the Senate’s version of HB 344. Rep. Ruffridge then talked through the two bills added to HB 344 in the Senate, including HB 196. Representative Mina gave a heartfelt overview of the importance of the BBCE provisions and the critical importance to Alaska’s anti-hunger network. Rep. Fields spoke to the expense of “churn” and the benefits of BBCE. The question was called and the bill passed on a 26 to 14 vote. No votes came from Reps. Allard, Carpenter, Coulombe, Eastman, McCabe, Rauscher, Ruffridge, Saddler, Shaw, Stapp, Sumner, Tilton, Tomaszewski, and Vance. You can watch their Floor discussion here.

This is a Big Win for anti-hunger policy in Alaska! HB 344 as amended now heads to the Governor’s desk.

MARICULTURE LEASES (HB 329) PASSED

HB 329 was moved out of the House Fisheries Committee on March 28 as a Committee Substitute (CS) and had an additional referral added to House Finance, following Resources. The bill was heard and held in House Resources on April 8, April 15, and April 17 when it was moved from committee and was awaiting scheduling in House Finance. On April 26, the Finance Committee referral was removed. On May 3, HB 329 was heard on the House Floor and after amendment, CS HB (FSH) 329 unanimously passed the House.

HB 329 was referred to the Senate Resources Committee and had hearings on May 10 and May 13. On May 10, sponsor Rep. Vance provided a detailed summary of the bill for the Committee. Kate Dufault, Program Manager for ADNR Aquatic Farm Leasing Program, was also online for questions. Sen. Wielechowski reflected on the “geoduck fights” of the past (~2008-2010), noting that he didn’t think the geographic limitation to the Gulf of Alaska wasn’t an oversight but intentional. He asked how many square miles of potential leases would be opened up in the Aleutians. ADNR replied that would probably be an ADFG question, but she did note that they have one pending aquatic farm lease near Adak. Sen. Wielechowski asked about any ecological studies, invasive species concerns, and other developed understanding of the proposed geoduck expansion. ADNR again referenced ADFG as the department that would have that information. Sen. Dunbar asked about the 25-mile definition, and ADNR noted that it is consistent with the existing public notice statute, and ADNR measures that as the crow flies. Chair Bishop asked about how the lease expirations and renewals currently work and ADNR provided a summary of the current process, including the potential for a best interest finding that includes a lessee application, an agency review, public comment, and then a final finding decision from the agency. If there are no appeals, the leasee provides all documents and then they have to go through the renewal process. If a renewal option is in place, there is a single step with “courtesy” public notice but they don’t respond to public comment.  Sen. Kawasaki asked about subjective latitude for the Commissioner to request an appraisal. Rep. Vance replied that ADNR doesn’t feel like that’s always necessary since the tidelands aren’t sold but are leased. Chair Bishop asked about if there are any top filings for aquatic farms, which is apparently something from the mining lease program. ADNR spoke to the competitive process, and that is only available if the lease is expired and not up for renewal. Sen. Wielechowski asked about the carbon management amendment from the House Floor. Rep. Vance had held a space in the bill for a carbon sequestration measure, and concerns about locking up tideland leases for carbon sequestration. She said the language came from the Department to address this concern.

There was public testimony. Jason Lessard, ED of the Alaska Mariculture Alliance, provided testimony supporting the bill and sharing that it is very timely for the industry. He reviewed some details and opportunities around the kelp industry. Paul Foos, President of the Alaska Shellfish Growers Cooperative, also testified in support of the bill. They have focused historically on geoducks, and the long production timeline for geoducks really will benefit from expanded lease periods with renewal options is very beneficial. He spoke about the invasive species concerns and the spatial coverage of the leases being constrained by the sea bottom profile. That was it for public testimony and they held the bill. You can watch the hearing here.

On May 13, Senate Resources heard the bill again in a quick 2-minute meeting. No amendments were submitted, no further discussion or questions came up, and they moved the bill from committee. This was the final meeting of Senate Resources for the legislative session, and it lasted a full 2 minutes and 8 seconds.

HB 329 was referred to Senate Rules for scheduling on the Senate Floor and was heard and passed unanimously on Wednesday, May 15. I’m not sure where in Wednesday’s long floor sessions the bill was heard for concurrence; if you really want to see it, let me know and I’ll dig further to find the clip! HB 329 now heads to the Governor’s desk for signing.

WEATHER STATION OUTAGES (SJR 20) PASSED

Senate Joint Resolution (SJR) 20 was introduced by the Senate Community & Regional Affairs (CRA) Committee on April 3. It was heard in the committee on April 9 and April 16 (when it was slightly amended to add additional people to send the resolution to and passed out of the committee). On Monday, April 22 CR SJR 20 (CRA) was passed unanimously on the Senate Floor. SJR 20 was then transmitted to the House where it was referred to the House Community & Regional Affairs Committee; on April 25 House CRA heard the resolution. Following testimony, the Committee moved SJR20 out of the committee with unanimous support. SJR 20 was heard on the House Floor on Monday, May 6, and passed unanimously. Rep. Gray provided an overview of the importance of the resolution, reviewing how critical AWOS and ASOS are for flying in inclement weather and the challenges currently experienced in Alaska’s systems. SJR 20 passed unanimously; you can watch the short House Floor session here. SJR 20 has passed both bodies and next heads to the Governor’s desk.

FARM TAX EXEMPTION (SB 161) PASSED WITHIN SB 179

SB 161 passed the Senate on March 18 and was sent to the House and referred to one committee, the House Community & Regional Affairs Committee (CRA). It was heard in House CRA on April 2, April 4, and April 18 when the Committee adopted a Committee Substitute (CS) for SB 161 and moved it out of committee as CS SB 161 (CRA) on a vote of 5 to 2, with Rep. McCabe and Himschoot voting no. Also on the 18th, the bill was further referred to the House Resources Committee where it was heard on Wednesday, April 24.

On May 14, the House Rules Committee adopted a Committee Substitute (CS) that wrapped three additional bills into SB 179, including SB 161. Sen. Bjorkman gave an overview of the underlying bill, noting that SB 179 was a policy proposal that the State of Alaska would not allow taxation on transfers of real property. He supported the addition of the three additional bills, including SB 161.

Passed by both bodies, SB 179 includes the following provisions of farm tax exemption:

• Optional Municipal Property Tax exemption by ordinance of farmland and farm structures where the owner or lessee is actively engaged in farming and sells at least $2,500 of ag products and files a Schedule F with their taxes. The human consumption restriction was removed, and clarified that it would be crops specified by ordinance.

• Mandatory Municipal Property Tax deferral was expanded to include farm structures that are used for farm operations when there is at least $2,500 of ag products for human or animal consumption only sold and a Schedule F is filed with the IRS. The limitation to human or animal consumption is a change that reduces the number of farms who currently qualify for this tax deferral, which is currently open to any ag use of farmland.

SB 179, with the inclusion of farm tax exemptions from SB 161, now heads to the Governor’s desk.

MILITARY & VETERAN FAMILY HELP DESK (HB 249/SB 207) PASSED WITHIN SB 154

(AFPC supports these bills) HB 249 was moved out of the House Military & Veterans’ Affairs committee as a Committee Substitute (CS) on February 29 and is still waiting for scheduling in House Finance. SB 207 moved out of Senate Community & Regional Affairs on February 15 and was last heard in Senate Finance on March 19.

On May 2, SB 154 was heard on the House Floor and Rep. Groh offered Amendment 1 which inserted the language from HB 249 into the bill. While food security was never specifically amended into the language as we had suggested, the newly created “Military & Veteran Family Help Desk” is charged with helping military members, veterans, and their families with a long list of services including physical health which certainly includes nutrition. On May 10, SB 154 as amended passed the House on a vote of 37-3, with Reps. Carpenter, Eastman, and Prax voting no. The Senate voted 18-0 (with Sens. Hughes and Hoffman not present) to concur with the House version on May 11. SB 154 as amended with the language from HB 249 has been transmitted to the Governor.

OPERATING BUDGET (HB 268) PASSED

On Wednesday, April 24, the Senate Finance Committee released its second operating budget CS (CS2) and on April 25 they passed HB 268 out of committee. The operating budget passed the Senate, unchanged from the Senate Finance CS. This version differed from what the House passed over to the Senate, and when the Senate version went back to the House, they did not agree with the changes (as expected!). The Conference Committee, three members from each body, worked together within the boundaries of the two versions of the budget to come up with an agreed-upon final budget for the House and Senate to then concur with. The two important line items that we were watching through conference committee negotiations were an additional $3M in funding for direct food purchases for food banks and pantries and nearly $500,000 for supporting free school lunches that had been added in the House.

The CC agreed with the Senate’s version around school lunches, agreeing to ax the nearly $500,000 in support that had been included in the House budget. Rep.Olson and Rep. Ortiz voted to retain this funding but lost the vote 3-2. Read an ADN story about that cut.

In better news, the CC moved through half of the funding for direct food purchases, approving a $1.5M supplemental appropriation for FY24 (which ends June 30, 2024) for the Dept. of Commerce, Community, and Economic Development (DCCED) to provide support to Alaskan food banks and food pantries to promote food security. The final CC motion sheet is here.

Both the Senate and House adopted the CC Substitute for HB 268 late in the evening on May 15. The budgets (Operating, Supplemental, Mental Health, and Capital) are all headed to the Governor.