AS Title 3, Chapter 20: Agricultural and Industrial Program Support

Chapter 20. Agricultural and Industrial Program Support. Article 1. Agricultural and Industrial Fairs. Sec. 03.20.010. State aid. The state may grant aid to agricultural and industrial fair associations, incorporated under the laws of the state, to assist in the payment of (1) costs of operation and maintenance and (2) project costs for capital improvements of annual agricultural and industrial fairs. Sec. 03.20.020. Amount and conditions of aid. (a) Fairs may be held each year in each of the house districts, and state aid for the operation and maintenance of the fairs may not exceed a basic grant of $10,000; however, fairs in existence five years or longer may receive an increment grant not to exceed $2,500 per year of existence to a maximum of $75,000. The people of each district sponsoring a fair are not eligible for state aid unless they subscribe to spend from their own funds for that purpose an amount equal to the amount of the state aid and have or organize an agricultural and industrial fair association for the operation and maintenance of the fairs. Each fair receiving state aid is open to entries by the people of the whole state, and special provision shall be made for exhibits from boys' and girls' clubs. (b) An agricultural and industrial fair association qualifying for and applying for operation and maintenance grants may also apply for capital improvement grants. (c) For the purpose of matching state fair aid allocations, a fair whose local resources are not sufficient to match dollar for dollar may, in preparing its annual report, place a reasonable itemized monetary value on donated labor, materials, and equipment used in the construction, repairing, and maintenance of fairgrounds, buildings, and facilities in place of dollar matching up to 50 percent of its annual requests. The commissioner shall determine when local resources are insufficient to allow the community to match the amount of state aid requested under (a) of this section, and shall approve the reasonableness of the value assigned the donations by the fair. (d) Premiums and prizes that qualify for listing for allocation purposes under this section shall be those paid for exhibits and educational contests, displays, and demonstrations of an educational nature. This does not include prizes or premiums for promotion or entertainment activities such as queen contests, parades, dances, rodeos, or races. A listing of fund allocations under this section containing the names of all premium and prize winners, including the amount and value of all awards, shall be maintained by the fair association. Sec. 03.20.030. Application for and granting of operation and maintenance aid. (a) Each agricultural and industrial fair association desiring to apply for an operation and maintenance grant shall apply to the commissioner before August 1 of the year preceding the fiscal year for which the grant is sought. It shall submit with the application a planned program of operation and maintenance of the proposed fair, the rules and regulations governing the fair, and a certificate signed by the president and secretary of the association certifying that the association will spend for the proposed fair a sum of money from their own funds equal in amount to the benefits requested under AS 03.20.010 — 03.20.080. When satisfied that the association is entitled to receive state aid under the provisions of AS 03.20.010 — 03.20.080, the commissioner shall make a disbursement to the association in the sum to which it is entitled. The commissioner shall pay annually the sum to be paid under the provisions of AS 03.20.010 — 03.20.080. (b) The commissioner shall require each association receiving state operation and maintenance aid to furnish receipts for money paid to them. The commissioner may prescribe the form of the receipt. Each association shall furnish a statement executed and acknowledged by the president and secretary, covering the disbursements by the association of all operation and maintenance funds, for fairs held under AS 03.20.010 — 03.20.080. The statement must definitely set forth that wherever any state aid money has been disbursed that a like amount of fair association fund money has been expended and that in no instance has the expenditure of state money exceeded the expenditure of fair association money. The association shall make a full report of receipts and expenditures including the sums expended for prizes and awards to the commissioner and this report shall be transmitted to the next legislature. (c) A sum equal to at least 25 percent of the state operation and maintenance aid received under AS 03.20.010 — 03.20.080 shall be used for premiums or transportation cost of exhibits. Sec. 03.20.035. Application for and granting of capital improvement aid. (a) Each agricultural and industrial fair association desiring to apply for a capital improvement grant shall apply to the commissioner before August 1 of the year preceding the fiscal year for which the grant is sought. It shall submit with the application a proposed long-term capital improvement plan of the fair covering five years from the time the application is submitted, which shall be certified by the president and secretary of the association as having been reviewed and approved by the governing body of the association. When satisfied that the association is entitled to receive state aid under the provisions of this section, the commissioner shall make a disbursement to the association in the sum to which it is entitled. (b) Each association receiving state capital improvement aid shall furnish receipts to the commissioner for money paid to them. The commissioner shall prescribe the form of the receipt. The association shall make a full report of its receipts and expenditures made for capital improvements and this report shall be transmitted to the next legislature following the receipts and expenditures. Sec. 03.20.040. Display of exhibits outside state. The commissioner may collect and ship, for display outside of the state, exhibits of Alaska produce, mining, and manufacturing, and other exhibits, including the Native arts. The commissioner may expend not more than $2,000 a year for that purpose. The commissioner shall account for and report the funds disbursed under this section. Sec. 03.20.050. More than one association and fair permitted. Nothing in AS 03.20.010 — 03.20.080 prohibits the formation of more than one agricultural and industrial fair association in each house district or the holding of an agricultural and industrial fair in several places in each district. When more than one association is formed in a house district or when a fair is held in more than one place in the district, the minimum operational aid is $250. When more than one association applies for the benefits of AS 03.20.010 — 03.20.080, the commissioner shall divide the money allotted to the district among the applicants in proportion to the amount justified at the time of application. Sec. 03.20.060. Expenditure of aid for nonperishable exhibits. The commissioner may require an association to expend not more than 10 percent of the state operation and maintenance aid granted, for the purpose of buying nonperishable exhibits. Those exhibits shall be held by the association subject to the order of the commissioner. Sec. 03.20.070. Funds to be returned if unexpended or if no fair held. (a) If an association has received state operation and maintenance funds under AS 03.20.010 — 03.20.080 and fails to hold a fair in accordance with its program, or does not disburse all of the state funds paid to it for that purpose, the association shall return those funds, or the unexpended portions, to the department within 60 days after the date set for the fair. If an association fails to comply with this section the attorney general shall institute proceedings to recover the funds. (b) If an association has received state capital improvement funds under AS 03.20.010 — 03.20.080 and fails to expend them within five years for capital improvements designated in its long-term capital improvement plan in effect at the time of the grant, the commissioner may, after investigation, require that the unexpended funds be returned to the department. Sec. 03.20.080. Definitions. For purposes of AS 03.20.010 — 03.20.080, (1) “agricultural and industrial fair” means a fair, the major focus of which is displays, exhibitions, demonstrations, contests, or promotions of agricultural or industrial concern to the region in which the fair is located, or any fair that, before July 1, 1980, has received a grant under AS 03.20.010 — 03.20.080; (2) “project costs for capital improvements” includes, in addition to costs directly related to the project, the sum total of all costs of financing and carrying out the project; these include, but are not limited to, the costs of all necessary studies, surveys, plans and specifications, architectural, engineering, or other special services, acquisition of real property, site preparation and development, purchase, construction, reconstruction, and improvement of real property, and the acquisition of machinery and equipment as may be necessary in connection with the project; an allocable portion of the administrative and operating expenses of the grantee; the cost of financing the project, including interest on bonds issued to finance the project; and the cost of other items, including any indemnity and surety bonds and premiums on insurance, legal fees, fees and expenses of trustees, depositaries, financial advisors, and paying agents for the bonds issued as the issuer considers necessary. Sec. 03.20.100. Farm-to-school program established. [Repealed, § 5 ch 11 SLA 2010.] Article 2. Noncommercial Transfer of Seed and Community Seed Libraries. Sec. 03.20.110. Noncommercial transfer of seed. An individual may give to or exchange with another individual for noncommercial use in the state seed that is otherwise legal to possess in the state. Sec. 03.20.120. Community seed libraries. (a) A person may establish a community seed library for individual giving or exchanging of seed that is intended for home, educational, charitable, or noncommercial use in the state and that is harvested from a plant grown (1) outside the state and imported into the state in compliance with AS 03.05.010 (a)(5); or (2) in the state. (b) A person may give seed to or exchange seed with another person through a community seed library established under (a) of this section. (c) Seed given, exchanged, or offered for giving or exchanging under (b) of this section must be (1) packaged either in the original package or repackaged; and (2) except as provided in (d) of this section, labeled with the following information on each package: (A) the common name of the plant from which the seed derives; (B) the name and address of the community seed library; (C) the statement “Not authorized for commercial use and not classified, graded, or inspected by the State of Alaska”; and (D) if treated with a toxic substance, the statement “Treated seed—Not for consumption.” (d) A person who is giving, exchanging, or offering a seed package at a community seed library may satisfy the labeling requirement under (c)(2) of this section by displaying a sign near the packaged seed that identifies the seed and clearly states the information required under (c)(2) of this section. Sec. 03.20.130. Limitations. A person may not give seed to or exchange seed with another person under AS 03.20.110 and 03.20.120 in an amount that, for each person who receives the seed, exceeds 100 pounds. Sec. 03.20.140. Online publication of noncommercial giving or exchanging of seed. A person involved in noncommercial giving or exchanging of seed under AS 03.20.110 and 03.20.120 may register online with the department under AS 44.37.030 (b) and submit to the department information, including the person's name, telephone number, and electronic mail address, and the location where the person gives or exchanges seed, for publication on the department's Internet website. Sec. 03.20.150. Applicability of other laws. Nothing in AS 03.20.110 — 03.20.150 authorizes a person to (1) violate 7 U.S.C. 2321 — 2582 (Plant Variety Protection Act of 1970); (2) give, exchange, or receive a seed (A) from a plant that is regulated as (i) a controlled substance under AS 11.71 or a drug under AS 17.20 ; or (ii) marijuana under AS 17.38 ; or (B) patented under 35 U.S.C. 161 — 164 (Plant Patent Act of 1930); (3) possess, give, or exchange seed that is considered to be noxious, invasive, or toxic under AS 03.05 or AS 44.37 or a regulation adopted under those chapters. Article 3. Forgivable Loan Programs for Farm Development and Improvement and Meat Processing Facilities. Sec. 03.20.200. Forgivable loan program for farm development and improvement. (a) The division of the department with responsibility for agriculture 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 to develop or make improvements to the recipient's farm as described in (d) of this section. A loan may be used by a recipient to fund investments in agriculture to build resiliency in the state's food supply. 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 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 farm, facility, or other site that would receive funding under a forgivable loan made under this section; (2) shall require a recipient of a forgivable loan to report to the department on the use of forgivable loan funds; (3) may make forgivable loans of up to $150,000 to an applicant for eligible farm development and improvement expenses approved by the department; (4) shall, subject to appropriation, make the program available to applicants annually until all available funds have been distributed. (c) A business plan approved by the department under (b)(1)(B)(i) of this section may be amended upon approval of the department. (d) Expenses eligible for a loan under this section include expenses relating to (1) clearing of land for agricultural purposes; and (2) the purchase, building, installation, maintenance, or improvement of (A) irrigation, drainage, and other water management systems; (B) fencing, trellising, barns, greenhouses, or other farm buildings or structures; (C) agricultural processing and farm equipment, including milking and pasteurization equipment; (D) livestock, feed, seeds, fertilizer, and seasonal extension equipment; and (E) bees and beekeeping equipment. (e) 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 (d) 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. 03.20.210. Forgivable loan program for meat processing facilities. (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 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 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.