02/25/2025 03:15 PM House STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB25 | |
| HB87 | |
| HB91 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 25 | TELECONFERENCED | |
| += | HB 87 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 91 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
February 25, 2025
3:18 p.m.
MEMBERS PRESENT
Representative Ashley Carrick, Chair
Representative Andi Story, Vice Chair
Representative Rebecca Himschoot
Representative Ky Holland
Representative Kevin McCabe
Representative Elexie Moore
MEMBERS ABSENT
Representative Sarah Vance
COMMITTEE CALENDAR
HOUSE BILL NO. 25
"An Act relating to disposable food service ware; and providing
for an effective date."
- MOVED HB 25 OUT OF COMMITTEE
HOUSE BILL NO. 87
"An Act establishing the month of March as Women's History
Month."
- HEARD & HELD
HOUSE BILL NO. 91
"An Act relating to the lawful operation of retail marijuana
stores; relating to marijuana cultivation; relating to the
registration of marijuana establishments; relating to marijuana
taxes; relating to the duties of the Department of Revenue; and
providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 25
SHORT TITLE: DISPOSABLE FOOD SERVICE WARE
SPONSOR(s): REPRESENTATIVE(s) JOSEPHSON
01/22/25 (H) PREFILE RELEASED 1/10/25
01/22/25 (H) READ THE FIRST TIME - REFERRALS
01/22/25 (H) STA, L&C
02/18/25 (H) STA AT 3:15 PM GRUENBERG 120
02/18/25 (H) Heard & Held
02/18/25 (H) MINUTE(STA)
02/20/25 (H) STA AT 3:15 PM GRUENBERG 120
02/20/25 (H) Heard & Held
02/20/25 (H) MINUTE(STA)
02/25/25 (H) STA AT 3:15 PM GRUENBERG 120
BILL: HB 87
SHORT TITLE: WOMEN'S HISTORY MONTH
SPONSOR(s): REPRESENTATIVE(s) HALL
02/10/25 (H) READ THE FIRST TIME - REFERRALS
02/10/25 (H) STA
02/22/25 (H) STA AT 1:00 PM GRUENBERG 120
02/22/25 (H) <Bill Hearing Canceled>
02/25/25 (H) STA AT 3:15 PM GRUENBERG 120
BILL: HB 91
SHORT TITLE: MARIJUANA: TAX/RETAIL STORES/REGISTRATION
SPONSOR(s): REPRESENTATIVE(s) CARRICK
02/10/25 (H) READ THE FIRST TIME - REFERRALS
02/10/25 (H) STA, FIN
02/18/25 (H) STA AT 3:15 PM GRUENBERG 120
02/18/25 (H) Scheduled but Not Heard
02/22/25 (H) STA AT 1:00 PM GRUENBERG 120
02/22/25 (H) Heard & Held
02/22/25 (H) MINUTE(STA)
02/25/25 (H) STA AT 3:15 PM GRUENBERG 120
WITNESS REGISTER
REPRESENTATIVE CAROLYN HALL
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, introduced HB 87.
DAVID REAMER, Historian
Anchorage, Alaska
POSITION STATEMENT: In support of HB 87, he offered a
presentation about notable women in Alaska's history.
JESSE LAVOIE, CEO
Alaska YWCA
Anchorage, Alaska
POSITION STATEMENT: Gave invited testimony in support of HB 87.
Stuart Relay, Staff
Representative Ashley Carrick
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of the bill sponsor,
Representative Carrick, responded to questions about HB 91 and
read the sectional analysis.
BRANDON SPANOS, Deputy Director
Tax Division
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: Answered questions related to HB 91.
BAILEY STUART, Chair and Legislative Liaison
Marijuana Control Board
Alcohol & Marijuana Control Office
Department of Commerce, Community & Economic Development
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to HB 91.
ACTION NARRATIVE
3:18:46 PM
CHAIR ASHLEY CARRICK called the House State Affairs Standing
Committee meeting to order at 3:18 p.m. Representatives Story,
Himschoot, Holland, McCabe, Moore, and Carrick were present at
the call to order.
HB 25-DISPOSABLE FOOD SERVICE WARE
3:20:10 PM
CHAIR CARRICK announced that the first order of business would
be HOUSE BILL NO. 25, "An Act relating to disposable food
service ware; and providing for an effective date."
3:20:17 PM
The committee took an at-ease from 3:20 p.m. to 3:21 p.m.
3:21:09 PM
CHAIR CARRICK asked committee members whether there were any
remaining questions or comments regarding HB 25.
REPRESENTATIVE STORY moved to report HB 25 out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, HB 25 was reported out of the House
State Affairs Standing Committee.
3:21:36 PM
The committee took an at-ease from 3:21 p.m. to 3:23 p.m.
HB 87-WOMEN'S HISTORY MONTH
3:23:54 PM
CHAIR CARRICK announced that the next order of business would be
HOUSE BILL NO. 87, "An Act establishing the month of March as
Women's History Month."
3:24:25 PM
REPRESENTATIVE CAROLYN HALL, Alaska State Legislature, as prime
sponsor, introduced HB 87. She said that HB 87 is the companion
bill to another piece of legislation that is currently being
carried through the Senate. She said that the United States has
recognized March as Women's History Month since 1987 and said
that speaking to another legislator she was surprised to learn
that Alaska didn't formally recognized March as Women's History
Month. The proposed legislation would ensure that the month is
recognized into perpetuity. She said that when it comes to
recognizing the role women have played in the history of the
territory, pre-territory, and state's founding, it gives her a
lot of hope considering the foundations that were laid by women.
She said the knowledge of history informs the choices of the
future and HB 87 would take a step forward in recognizing,
elevating, and aiding women for generations to come.
3:26:37 PM
The committee took a brief at-ease at 3:26 p.m.
3:27:27 PM
DAVID REAMER, Historian, in support of HB 87, offered a
presentation about notable women in Alaska's History. He said
that for the entirety of Alaska's history, women have played
crucial roles. He said these women had a great deal of
influence shaping Alaska not only into what it is now but what
it will be. He said that the history of Alaska women has rarely
matched their historical presence and relevance in meaningful
ways.
MR. REAMER said that Women's History Month could be two things:
a prompt or reminder of the very basic fact that women have
shifted the world around them and made differences; and an
opportunity to be curious to get more information pertaining to
stories.
MR. REAMER told the story of Debbie Reed, one of the few women
who worked on the pipeline. Ms. Reed braced a camp with 500 men
and 8 women and worked in temperatures of negative 60 degrees
Fahrenheit. He said that this is known but the specifics are
not as well known, and specifics matter when telling stories.
3:30:03 PM
MR. REAMER, on the next slide, presented about Nora Guinn, a
Bureau of Indian Affairs (BIA) teacher, a commissioner, a
magistrate, and, in 1967, the first Alaska Native district
judge. She was well known for translating court proceedings
into Yupik'. He said that it's been 20 years since she died but
she is still widely remembered in the Bethel Community, while
not widely known outside of Bethel.
MR. REAMER then detailed the narrative of Ashley Dickerson, the
first in just about everything she did and everywhere she went.
She was a student, a homesteader, author, and lawyer. She was
the first black lawyer in Alaska. Moreover, she was a fierce
individual who stood up for her values and civil rights.
MR. REAMER said that the next slide displayed Dale DeArmond.
She was a mother and artist best known for her wood block prints
which can still be found today. She published several books and
collaborated with other authors as well. Her 1973 book, Juneau:
A Book of Wood Cuts illustrates the history of Juneau. He
shared that this is one of his favorite books regarding Alaska.
MR. REAMER spoke about Anne Hobbs Purdy. She was a
schoolteacher and the notable figure in the book Tisha: The
Wonderful True Love Story of a Young Teacher in the Alaska
Wilderness. He said that she adopted 11 children and did her
best to keep the town of Chicken, Alaska, alive. He said this
story should be better known.
3:32:18 PM
MR. REAMER spoke about Martha "Mother" White, who was a member
of the often forgotten 1890's Cook Inlet Gold Rush. She was an
original settler in Anchorage who ran a hotel and café. She
earned the nickname "mother" due to her immense generosity. He
said that her daughter Martha "Babe" White was born in Tyonek
and was likely the first settler child born in the Upper Cook
Inlet and in 1915 drove the first ceremonial spike for the
Alaska Railroad.
MR. REAMER proceeded to speak about Benzie "Rusty" Dow. She was
a homesteader, truck driver, painter, and raised bear cubs. She
was notable for being the first women to drive the Alcan Highway
and through the Whittier Tunnel. He said that the truck she
drove had no speedometer, no gas gauge, and every story he heard
about her is a legend.
MR. REAMER next talked about Cecilia "Ceil" Braund, who was a
bartender notably at Diamond Jims in Indian, Alaska. She was
known for bringing the Gold Rush throwback style to Diamond
Jims. He said that he was previously asked to learn more about
Braund since he was told how friendly she was and how she
changed some people's Alaska experience forever, and in a
positive way.
MR. REAMER said that it is worth remembering that the women in
Alaska's history made their impacts on all facets of life. He
said not everyone was a lawyer or legislator. Some were
homesteaders, truck drivers, or even painters.
3:35:07 PM
MR. REAMER said that in 1937 Nell Scott was the first woman
elected to the Alaska Legislature, at which time she remarked,
"That was really what I was campaigning for, a woman to get into
the legislature and break the ice." He said that someone needs
to be the first before someone can be the second.
MR. REAMER remarked that in 1942 Mildred Mickey Romig ("Mickey")
became the first woman elected to the Anchorage City Council and
helped revive the Girl Scouts Troops in Alaska. He said that
nobody knows about the tradition that Mickey established. He
said that a Women's History Month could change this and remarked
that knowing about something makes you care. He said that
people want to know more about their community and can care
about their community. He said Women's History Month could be a
chance to learn more than what was known before. He concluded
by demonstrating a black and white photo of women displaying
some produce. He said he doesn't know when, where, or context
of the photo, but people are hungry for these details and want
to learn.
3:38:08 PM
CHAIR CARRICK transitioned to invited testimony on HB 87.
3:38:29 PM
JESSE LAVOIE, CEO, YWCA, gave invited testimony in support of HB
87. She complimented Mr. Reamer's presentation, and said the
YWCA is ecstatic with the proposed bill. She said that the YWCA
has a long history of supporting and recognizing female
accomplishments in the state. She said that YWCA sponsors women
achievement events, and this tradition has recognized over 350
women in the state from all facets of life. She said that given
the presentation, there isn't much more to add but it makes
sense to support HB 87. She said that the Federal Government
already recognizes this, and HB 87 is important for paving the
path for younger generations.
3:41:04 PM
The committee took a brief 3:41 p.m.
3:41:34 PM
REPRESENTATIVE HOLLAND said he enjoyed learning about the bill
and the presentation by Mr. Reamer. He asked whether any other
people or topics were currently celebrated in March and if there
would be any overlap.
REPRESENTATIVE HALL responded that March was already designated
as Sobriety Awareness Month, but specific days or weeks were
also designated for Susan Butcher Day, Alaska History Week,
Ashley Johnson-Barr day, Vietnam Veterans Day, and the Good
Friday Alaska Earthquake Remembrance Day.
REPRESENTATIVE HOLLAND asked if there was a day that recognized
Elizabeth Peratrovich.
REPRESENTATIVE HALL responded that Elzabeth Peratrovich day was
celebrated on February 16.
3:43:19 PM
REPRESENTATIVE STORY proffered that it may be Traumatic Brain
Injury Month as well, but she was not sure whether the bill
proposal to formalize it had passed. She asked if making the
bill stronger or having a public awareness component added was
considered.
REPRESENTATIVE HALL responded that she had not considered this
and given the fiscal situation, it likely would be better [to
have a zero] fiscal note included. She said there are ways that
educational components can be incorporated. She said that she
has not put adequate thought into how this would look. She said
that as a former journalist, she looked for things that were
"newsworthy" and by establishing a women's history month it
would make these discussions about female figures "newsier."
REPRESENTATIVE STORY said her thoughts go to places like the
Association of Alaska School Boards or the Alaska Council of
School Administrators and whether there would be a way to
deliver educational material at no cost.
REPRESENTATIVE HALL responded that this is an excellent idea,
and she would love to pursue all options when it comes to this.
She said that trying to elevate this conversation is important.
3:46:46 PM
REPRESENTATIVE MCCABE complimented Representative Hall's
proposed bill and the ability to put something like this forward
without [cost to the state].
3:47:04 PM
CHAIR CARRICK thanked Representative Hall for bringing this bill
forward and noted that the House State Affairs Standing
Committee was comprised mostly of females. She said the
presentation was a strong reminder that "everyone here stands on
the shoulders of giants."
REPRESENTATIVE HALL said that she appreciated the comment and
opportunity to present the bill. She said that she wanted these
women memorialized and was grateful for the opportunity to do
so.
3:48:00 PM
The committee took a brief at-ease at 3:48 p.m.
3:48:31 PM
CHAIR CARRICK opened public testimony on HB 87. After
ascertaining there was no one who wished to testify, she closed
public testimony. Chair Carrick announced that HB 87 was held
over.
3:49:10 PM
The committee took an at-ease from 3:49 p.m. to 3:51 p.m.
HB 91-MARIJUANA: TAX/RETAIL STORES/REGISTRATION
3:51:07 PM
CHAIR CARRICK announced that the final order of business would
be HOUSE BILL NO. 91, "An Act relating to the lawful operation
of retail marijuana stores; relating to marijuana cultivation;
relating to the registration of marijuana establishments;
relating to marijuana taxes; relating to the duties of the
Department of Revenue; and providing for an effective date."
3:51:49 PM
STUART RELAY, Staff, Representative Ashley Carrick, Alaska State
Legislature, on behalf of Representative Carrick, prime sponsor
of HB 91, began by answering two questions that were brought up
during the previous committee hearing of the bill. He specified
that he sent information pertaining to fund designations.
Additionally, he said that there are no additional revenue
sources for these funds; they are strictly tied into the current
marijuana excise tax.
MR. RELAY offered the sectional analysis for HB 91 [copy
included in committee file], which read as follows [original
punctuation provided]:
Section 1. Allows for "upstream sales" of marijuana
products to allow marijuana stores to sell unused
products back to producers.
Specifically, it amends AS 17.38.070(a)(6) to allow
for delivery, distribution, and sale of marijuana and
marijuana products to a consumer, marijuana
cultivation facility, or a marijuana product
manufacturing facility.
Section 2. Adds a new section to AS 17.38 relating to
marijuana plant tagging. Specially AS 17.38.075
requires a marijuana cultivation facility to assign a
tracking number to each crop of marijuana plants when
the height exceeds eight inches. It also prohibits the
AMCO board from requiring individual plant tagging.
Section 3. Amends the timeline for required background
checks from five to six years to accommodate biannual
licenses as amended in Sections 4-9.
Sections 4-9. Changes length of marijuana licenses
from one to two years.
Section 10. Conforming changes for Section 1.
Specifically, it amends the definition of a retail
marijuana store to allow them to sell products back to
marijuana cultivation facilities, and marijuana
product manufacturing facilities.
Section 11. Reduces the marijuana excise tax rate from
$50 per ounce to $12.50 per ounce.
Section 12. Allows at least 50% of the annual balance
of the marijuana education and treatment fund to be
used for the youth services grant program within the
community-based marijuana misuse prevention component
of the comprehensive marijuana use education and
treatment program.
Section 13. Establishes a 6% sales tax on all
marijuana and marijuana product sales.
Section 14. Changes the timeline that taxes are due to
the Department of Revenue from monthly to quarterly.
Section 15. Specifies that retail marijuana stores are
responsible for paying the sales tax to the Department
of Revenue.
Section 16. Requires the Department of Revenue to
establish at least one facility in each of the four
judicial districts to collect marijuana sales tax
payments.
Section 17. Repeals 43.61.010(b) which allowed certain
parts of a marijuana plant to be exempt from the
excise tax and allowed for differential excise tax
rates for certain parts of the plant.
Section 18. Repeals the excise tax established in
43.61.010(a) on January 1, 2026.
Section 19. The excise tax reduction applies to taxes
accrued on or after the effective date of section 11.
Section 20. Sections 13-16 take effect January 1, 2026
Section 21. Except for Section 20, this act takes
effect on July 1, 2025.
3:55:53 PM
CHAIR CARRICK asked if committee members had any questions
pertaining to HB 91.
3:56:01 PM
REPRESENTATIVE STORY asked why there were two different
effective dates in Sections 20 and 21.
MR. RELAY responded that Section 20 addresses when the sales tax
takes effect, and it would be six months after the cuts to the
excise taxes begin.
REPRESENTATIVE STORY asked what the rationale for it was.
MR. RELAY responded that it would allow the Department of
Revenue time to implement the new sales tax collection process
and give the industry time to adapt.
3:57:17 PM
REPRESENTATIVE MOORE asked if there had been an analysis for how
much this would cost the state.
MR. RELAY responded that the previous version of the bill
concept had quite a bit of analysis and currently work was being
done to get new data. He said that the fiscal notes suggest
some hits to tax revenue but projections from previous bill
versions show an increase with time and transition.
CHAIR CARRICK noted that there are additional costs due to
policy changes associated with the proposed bill.
REPRESENTATIVE MOORE asked if the additional offices would be a
standalone building or in an already established facility.
CHAIR CARRICK responded that the Department of Revenue could
speak more about this.
MR. RELAY added that this would be a decision for the Department
of Revenue and the fiscal note goes into detail regarding the
costs. He said there were some higher costs associated with
changes.
CHAIR CARRICK forwarded the question to Mr. Spanos.
3:59:39 PM
BRANDON SPANOS, Deputy Director, Tax Division, Department of
Revenue, answered questions related to HB 91. He said that
looking at District 2, there were only a couple of retailers in
that location, and they did not anticipate a staffed location
and have considered a drop-off style of collection. He said
that both Juneau and Fairbanks were candidates for a physically
staffed location.
4:01:02 PM
REPRESENTATIVE STORY asked whether community groups impacted by
the loss of funding were spoken to in order to get input for how
they would recoup losses.
MR. RELAY responded not at this time and efforts were being made
to work with the Department of Health to better understand
impacted programs.
REPRESENTATIVE STORY opined that the hardest part of the
proposed bill was how to continue the services with a loss of
tax derived revenue. She said that she would like to learn more
from those impacted by decreased funding.
4:02:42 PM
REPRESENTATIVE HIMSCHOOT said she was concerned about the
programs that receive this funding. She asked how the six
percent sales tax was chosen and whether the bill attempts to
get funds back to recipients who have relied on excise tax
funding.
MR. RELAY responded that this bill would not change any of the
designations. He said that documents from the previous
legislation, House Bill 119 [heard during the Thirty-Third
Alaska State Legislature], were being analyzed regarding
potential revenue impacts.
REPRESENTATIVE HIMSCHOOT commented that the impact on revenue is
a primary concern for her.
4:04:55 PM
REPRESENTATIVE HOLLAND said that as he understands the bill, the
underlying intent is an attempt to restructure an industry that
has gone stagnant. He raised concerns about sales tax layering
on top of other sales taxes. He was wondering why a sales tax
was adopted as opposed to an excise tax reform.
CHAIR CARRICK said that this is a great segway for the Alcohol &
Marijuana Control Office (AMCO).
4:06:38 PM
BAILEY STUART, Chair and Legislative Liaison, Marijuana Control
Board, said that the Marijuana Control Board has held no
discussions regarding HB 91 since it was introduced after the
last board meeting. She cited a March 2024 letter of support
from AMCO in support of a 3 percent tax rate. She said that
there is support for immediate tax relief and said that
marijuana legalization has been a bright spot for Alaska's
agricultural industry and has generated thousands of jobs. She
said despite its success; the legal cannabis industry is facing
difficult "economic headwinds." She discussed issues currently
facing the industry and said that the state has the highest tax
rate in the country. She said Alaska's legal marijuana industry
is at a breaking point from unregulated markets. She said that
most businesses are small, locally owned, and face burdens. She
said the consequences are visible and some businesses are
surrendering their licenses and facing collapse. She said that
if this continues, then the legal market will get overtaken by
unregulated markets. She said that with certainty, if there is
no tax reform, there will be no revenue left to collect.
MS. STUART commented about the batch tagging provision. She
said that the Marijuana Control Board has carefully revised
tagging requirements to ensure public health, safety, and
enforcement are maintained. She said last year the department
went from clone tagging to batch tagging and increased the
tagging requirements for plants. She urged support to reduce
marijuana taxes and have considerations for batch tagging.
MS. STUART said that she could not answer Representative
Holland's question and said some communities already have taxes
on marijuana. She said some sales taxes are as high as 15
percent and with an additional 6 percent, it would be taxed at
21 percent. She said it may push people away from legal
products and generate safety concerns.
4:10:40 PM
REPRESENTATIVE HIMSCHOOT said that she found that 20
municipalities had a sales tax and offered her understanding
that only Bethel had a 15 percent sales tax. She asked if other
communities now had high sales taxes.
MS. STUART confirmed that only Bethel was taxed at 15 percent.
4:11:14 PM
REPRESENTATIVE HOLLAND asked whether there had been
consideration to modify the excise tax to avoid layering sales
taxes in the municipalities. He asked why sales tax would be
beneficial.
MS. STUART responded that the industry is supportive of reducing
the excise tax to $12 an ounce but there would be a lot of
complications with it.
REPRESENTATIVE HOLLAND said his next question was related to the
growing impact of illegal marijuana sales. He was curious
whether enforcement of the laws had been compromised by
reductions in enforcement measures. He said he wanted to
understand the economics of black-market competition.
MS. STUART responded that there was no enforcement of illegal
marijuana on the market. She said she has been trying to
unravel this problem. She said that marijuana for the most part
doesn't kill people and public safety resources have prioritized
drugs such as Fentanyl and other "insidious" controlled
substances. She said that illegal markets are sheltered due to
other priorities with the Department of Public Safety.
4:14:49 PM
REPRESENTATIVE MOORE asked if considerations were made to make a
standalone bill for policy reform and a separate bill for tax
reform.
CHAIR CARRICK said she wanted to consider policy that would
support the industry in addition to preserving revenue for the
state. Her intent was to stabilize and support the industry.
She said that more discussions about this could take place.
CHAIR CARRICK, after ascertaining that there were no additional
questions or comments, announced that HB 91 was held over.
4:16:56 PM
ADJOURNMENT
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at 4:17
p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 25 Written Testimony ACAT 2-20-25.pdf |
HSTA 2/25/2025 3:15:00 PM |
HB 25 |
| HB 25 Backup LTR Biodegradable Products Institute 2-20-25.pdf |
HSTA 2/25/2025 3:15:00 PM |
HB 25 |
| HB 25 Written Testimony 2-24-25.pdf |
HSTA 2/25/2025 3:15:00 PM |
HB 25 |
| HB 87 Sponsor Statement.pdf |
HSTA 2/25/2025 3:15:00 PM |
HB 87 |
| HB 87 Ver A.pdf |
HSTA 2/25/2025 3:15:00 PM |
HB 87 |
| HB 87 Fiscal Note.pdf |
HSTA 2/25/2025 3:15:00 PM |
HB 87 |
| HB 87 Presentation 2-25-25.pdf |
HSTA 2/25/2025 3:15:00 PM |
HB 87 |
| HB 91 Backup Recidivism Reduction Fund Allocation Summary Leg Finance.pdf |
HSTA 2/25/2025 3:15:00 PM |
HB 91 |
| HB 91 Backup MET Allocation Summary Leg Finance.pdf |
HSTA 2/25/2025 3:15:00 PM |
HB 91 |
| HB 91 Written Testimonny 2-22-25.pdf |
HSTA 2/25/2025 3:15:00 PM |
HB 91 |