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--- version:HB 60
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-HB0060a -1- HB 60
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-34-GH1570\A
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- HOUSE BILL NO. 60
-
-IN THE LEGISLATURE OF THE STATE OF ALASKA
-
-THIRTY-FOURTH LEGISLATURE - FIRST SESSION
-
-BY THE HOUSE RULES COMMITTEE BY REQUEST OF THE GOVERNOR
-
-Introduced:  1/22/25
-Referred:  House Special Committee on Fisheries, Labor and Commerce
-
-A BILL
-
-FOR AN ACT ENTITLED
-
-"An Act relating to municipal and state procurement preferences  for agricultural 1
-products harvested in the state and fisheries products harveste d or processed in the 2
-state; and providing for an effective date." 3
-BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
-   * Section 1.  AS 29.71.040(a) is amended to read: 5
-(a)  If a municipality that receives state money seeks to purch ase an 6
-agricultural product and an agric ultural product harvested in t he state is available that 7
-is of like quality compared with a similar agricultural product  harvested outside the 8
-state, the municipality 9
-(1)  shall purchase the product ha rvested in the state if the p roduct is 10
-priced not more than 10 [SEVEN] percent above the similar product harvested outside
-11
-the state; 12
-(2)  may purchase the product harvested in the state only if th e product 13
-is priced not more than 25 [15] percent above the similar product harvested outside the 14
-   34-GH1570\A
-HB 60 -2- HB0060a
- New Text Underlined [DELETED TEXT BRACKETED]
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-state. 1
-   * Sec. 2.  AS 29.71.040(b) is amended to read: 2
-(b)  If a municipality that receives state money seeks to purch ase a fisheries 3
-product and a fisheries product ha rvested or processed within t he jurisdiction of the 4
-state is available that is of like quality compared with a simi lar fisheries product 5
-harvested or processed outside the jurisdiction of the state, the municipality 6
-(1)  shall purchase the product ha rvested or processed within t he 7
-jurisdiction of the state if th e product is priced not more tha n 10 [SEVEN] percent 8
-above the similar product harvested or processed outside the jurisdiction of the state; 9
-(2)  may purchase the product harvested or processed in the jur isdiction 10
-of the state only if the pr oduct is priced not more than 25 [15] percent above the 11
-product harvested or processed outside the jurisdiction of the state. 12
-   * Sec. 3.  AS 36.15.050(a) is amended to read: 13
-(a)  When agricultural products are purchased by the state or b y a school 14
-district that receives state money, a preference not less than 10 [SEVEN] percent nor 15
-more than 25 [15] percent shall be applied to  the price of products harvest ed in the 16
-state.  17
-   * Sec. 4.  AS 36.15.050(b) is amended to read: 18
-(b)  When fisheries products are purchased by the state or by a  school district 19
-that receives state money, a preference not less than 10 [SE V E N ] p e r c en t n o r  mo r e 20
-than 25 [15] percent shall be applied to the price of products harvest ed or processed 21
-within the jurisdiction of the state. 22
-   * Sec. 5.  This Act takes effect July 1, 2025. 23
+DE PA RTME N T OF COMME RCE , COMMU N ITY  A N D E CON OMIC DE V E L OPME N T
+Procurement Preference:
+Agriculture and Fish Products
+House Bill 60
+House Fisheries CommitteeDeputy Commissioner Anna Latham
+February 6, 2025
+DE PA RTME N T OF COMME RCE , COMMU N ITY  A N D E CON OMIC DE V E L OPME N T
+Current Procurement Code
+HB 60: Procurement Preference: Agriculture and Fish Products 2
+• AS 36.15.050 and AS 29.71.040 require the use of local agricultural and
+fisheries products by state agencies, school districts, and municipalities that
+receive state money
+• Current statute requires agricultural and fisheries products harvested in the
+state:
+• Shall be purchased if the product is priced not more than seven percent
+above a similar product harvested outside the state
+• May be purchased if the product is priced not more than 15 percent above
+a similar product harvested outside the state
+DE PA RTME N T OF COMME RCE , COMMU N ITY  A N D E CON OMIC DE V E L OPME N T
+Current Purchasing Process
+• The DOA Office of Procurement and Property Management administers a
+statewide contract with US Foods (Mandatory for the Department of
+Corrections and Non-mandatory for all others)
+• Local growers register and indicate the products they can provide
+• State agencies set up a corporate account with vendor
+• Once they’ve set up an account, there is an option to select Alaska Grown
+Products
+• These are online mobile markets that display Alaska products
+• State buyers such as the Department of Corrections and AMHS purchase
+products based on price after the application of preferences
+HB 60: Procurement Preference: Agriculture and Fish Products 3
+DE PA RTME N T OF COMME RCE , COMMU N ITY  A N D E CON OMIC DE V E L OPME N T
+What Does House Bill 60 Do?
+• Increases allowable price differentials for state agencies, school districts,
+and municipalities to purchase more Alaskan agricultural and fisheries
+products
+• Changes the purchase price differential for required in-state purchases from
+seven percent to ten percent
+• Changes the purchase price differential for permissible in-state purchases
+from 15 percent to 25 percent
+• Incentivizes more production of Alaska-grown agricultural and Alaska
+fisheries products by providing access to institutional markets
+HB 60: Procurement Preference: Agriculture and Fish Products 4
+DE PA RTME N T OF COMME RCE , COMMU N ITY  A N D E CON OMIC DE V E L OPME N T
+Discussion of State Procurement Data
+HB 60: Procurement Preference: Agriculture and Fish Products 5
+Purchasing
+Entity
+Alaska Grown Non-Alaska
+Grown
+Total Spend % of Total
+Spend
+Alaska Grown
+% of Total
+Spend
+DCCED-ASMI $117,667 $117,667 0.67% 100%
+DFCS $509,684 $509,684 2.93%
+DMVA $874,202 $874,202 5.03%
+DNR $107,808 $107,808 0.62%
+DOC $117,643 $13,288,927 $13,406,570 77.17% 0.88%
+DOLWD $7 $222,583 $222,590 1.28% 0.0032%
+DOT&PF $1,178 $1,987,707 $1,988,884 11.45% 0.059%
+Polisubs $263,733 $263,733 1.52%
+Totals $236,495 $17,254,644 $17,491,139 0.014%
+DE PA RTME N T OF COMME RCE , COMMU N ITY  A N D E CON OMIC DE V E L OPME N T
+Thank you
+Anna Latham, Deputy Commissioner
+Department of Commerce, Community, and Economic Development
+Anna.Latham@alaska.gov
+HB 60: Procurement Preference: Agriculture and Fish Products 6