Legislature(2025 - 2026)SENATE FINANCE 532
05/01/2025 01:30 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Adjourn | |
| Start | |
| SB92 | |
| HB53 || HB55 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 92 | TELECONFERENCED | |
| += | HB 55 | TELECONFERENCED | |
| += | HB 53 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
May 1, 2025
1:33 p.m.
1:33:44 PM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee
meeting to order at 1:33 p.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Donny Olson, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Mike Cronk
Senator James Kaufman
Senator Jesse Kiehl
Senator Kelly Merrick
MEMBERS ABSENT
None
ALSO PRESENT
Liz Harpold, Staff, Senator Donny Olson; Pete Ecklund,
Staff, Senator Lyman Hoffman
SUMMARY
SB 92 CORP. INCOME TAX; OIL and GAS ENTITIES
SB 92 was HEARD and HELD in committee for further
consideration.
CSHB 53am(brf sup maj fld)(efd fld)
APPROP: OPERATING BUDGET; CAP; SUPP
CSHB 53am(brf sup maj fld)(efd fld) was HEARD and
HELD in committee for further consideration.
CSHB 55(FIN)
APPROP: MENTAL HEALTH BUDGET
CSHB 55(FIN) was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 92
"An Act establishing an income tax on certain entities
producing or transporting oil or gas in the state; and
providing for an effective date."
1:34:49 PM
Co-Chair Stedman MOVED to ADOPT the committee substitute
for SB 92, Work Draft 34-LS0540\Q (Nauman, 5/1/25).
Co-Chair Hoffman OBJECTED for DISCUSSION.
1:35:19 PM
LIZ HARPOLD, STAFF, SENATOR DONNY OLSON, explained the
changes. She stated that the committee substitute
incorporated two amendments that were submitted by
committee members, and distributed earlier that week, which
were technical fixes to the bill. She stated that one
amendment was to align with the intent of the bill so
corporations be taxed like C-corporations, and the other
would foreclose the argument that the exemption did not
cover an entity that was not subject to tax under statute.
Co-Chair Hoffman WITHDREW the OBJECTION. There being NO
further OBJECTION, it was so ordered.
SB 92 was HEARD and HELD in committee for further
consideration.
CS FOR HOUSE BILL NO. 53(FIN) am(brf sup maj fld)(efd fld)
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; and making supplemental
appropriations."
CS FOR HOUSE BILL NO. 55(FIN)
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
1:36:44 PM
Co-Chair Stedman MOVED to ADOPT the committee substitute
for CSHB 53am(brf sup maj fld)(efd fld), Work Draft 34-
GH1462\Y (Marx, 4/30/25).
Co-Chair Hoffman OBJECTED for discussion.
1:37:17 PM
AT EASE
1:40:51 PM
RECONVENED
1:41:08 PM
PETE ECKLUND, STAFF, SENATOR LYMAN HOFFMAN, explained the
changes in the CS for HB 53. He read from a prepared
statement:
Operating Supplementals
Added new operating supplemental numbers sections 7-9
and multiple language sections that included all of
the agreed upon (with the House) operating
supplemental items that were in SB 59 version N that
this Committee adopted on March 25th with the
following modifications to incorporate Governor's
amendments received on April 25th:
Section 15(b) increases judgments and settlements by
$346,473 (for a total of $3,102,700)
Section 17(g)(15) adopt Governor's amendment
The amount necessary for payment of trustee fees on
outstanding State of Alaska general obligation bonds,
added series 20248, for that purpose;
Section 18 (c) Add supplemental fund capitalization
(from GovAmend):
The sum of $327,272 is appropriated to the election
fund, as required by the federal Help America Vote
Act, from the following sources:
(1) $54,545 from the general fund;
(2) $272,727 from federal receipts.
Section 19 Adopted Governor's Amendment to add
ratifications
Section 53(b) Amended contingency language for
Department of Health SNAP penalty appropriation to
change the fiscal year reference for the penalty to
the federal fiscal year. This was a change requested
by the Department of Law that was added on the House
Floor to HB 56.
Numbers Section Changes
In the Department of Labor, University of Alaska, and
Alaska Marine Highway sections, salary adjustments
submitted by the Governor last week are incorporated.
These cover agreements for the Alaska Vocational
Technical Center Teachers' Association, the
International Organization of Masters, Mates, and
Pilots, and the United Academic- Adjuncts - American
Association of University Professors, American
Federation of Teachers.
Page 5, L 28-31 Department of Commerce, Community and
Economic Development-Alaska Marijuana Control Office
wordage fix to allow AMCO to carry-forward fees. This
will allow AMCO to adjust fees downward. This was a
Governor's amendment that was inadvertently overlooked
in the subcommittee process.
Page 9, L 23 - Department of Corrections (DOC) Added
back a $7m Pre-Trail reduction to the Department of
Corrections. To assist the Department of Corrections
control spending, the subcommittee reduced the Pre-
trial Services program by $7M with corresponding DOC &
Judiciary intent language. Unfortunately, the Courts
do not follow intent language and require statutory
changes; therefore, the action is being reversed.
Page 11, L 15-23 - Department of Education and Early
Development (DEED) Added intent for School Districts
to send fund balance reports to the legislature based
on FY25intentlanguage
Page 11, l 25 and Page 25, l 16 a net zero transfer of
the Alaska Teachers and Personnel program of $60.0 UGF
from the DEED to the Department of Labor and Workforce
Development
P 17, L 14 Department of Fish and Game - Commercial
Fisheries Entry Commission added $60.0 Statutory
Program Receipt Authority so the Bristol Bay Economic
Development Corporation, a Community Development Quota
group, can pay for a CFEC employee to work in Bristol
Bay starting in February 2026
P 23, L 26 Department of Health - Reduced Medicaid UGF
by $81.6 thousand
P 23, L 27-32 Department of Health (DOH) - The
"standard" abortion prohibition wordage used over the
past many years was added
P 24, L 11 Department of Labor - Add GovAmend $3
million federal for the Alaska Workforce Investment
Board (AWIB) to facilitate a grant for Refugee Support
Services
P 331 L 30 Department of Revenue - remove $400 million
from various retirement funds to reflect investment
management fees paid from investments. There is an
associated change to language that will be discussed
later on
Starting on page 351 line 251 add funding back to
Alaska Permanent Fund Corporation as follows:
P 351 L 25 Add $731.2 to restore all funding for
administrative staff P 351 L 25 Add $350.7 to reduce
the vacancy factor from 8.6 percent to 7 percent P 35,
L 28 Add $50.0 SDPR for staff travel
P 36, L 6 Add $47.3 for HR recruitment and training
P 361 L 11 Add $1.95 million for two new IT projects,
firewall and data warehouse enhancements
Moved 'net of fee' investment and performance fees to
the language section of the budget for the Permanent
Fund and the Alaska Retirement and Management Board.
In essence, the fee estimates are for 'informational
purposes only' and are not appropriations. This is an
attempt to have more transparency in the investment
fees paid by both the APFC and the ARM Board.
Throughout the APFC section, there is a fund change of
$2,547.6 from 1094 (MHT Admin1 which is in HB 55) and
$2,439.6 of 1169 {PCE Endowment) to 1105 (PF Gross) in
the various appropriations for the Permanent Fund
Corporation. With this change, wordage allowing for
transfers between fund codes was also deleted. There
is associated language for this change as well
Starting on Page 41, line 10, University of Alaska -
there are four technical corrections to align
subcommittee decrements to the correct allocations.
These net zero changes move funding between campuses
and their associated operations and maintenance
allocations.
Language Changes:
Sec 24 (d) Page 76, L 31- The amount necessary to pay
a dividend of $11000 per recipient, estimated to be
$685,300,000.
Sec 24 (g) Page 77, L 10-11 To Alaska Permanent Fund
Corporation section, add new subsection:
The proportional share of investment management costs
paid by investments of funds managed by the Alaska
Permanent Fund Corporation is estimated to be
$671,018,000.
Sec 24 (h) Page 77, L 12-17 Add new subsection:
The amount appropriated from gross receipts of the
Alaska permanent fund in sec. 1 of this Act includes
an estimated amount of $2,547,600 attributed to the
mental health trust fund (AS 37.14.031) and an
estimated amount of $2,439,600 attributed to the power
cost equalization endowment fund (AS 42.45.070(a)) for
the proportional share of investment management costs
of the mental health trust fund (AS 37.14.031) and the
power cost equalization endowment fund (AS
42.45.070(a}).
New subsection 36, Department of Revenue Page 85, L
16-18:
The proportional share of investment management costs
paid by investments of funds managed by the Alaska
Retirement Management Board is estimated to be
$167,000,000.
Section 37 (c) Page 85, L 27-29 Add DOT lapse
extension for Highways and Aviation
Section 45 Page 98, L 21-25 (salary and benefit
adjustments) add the following bargaining units:
a. To section (a):
(7) Alaska Vocational Technical Center Teachers'
Association, National Education Association,
representing the employees of the Alaska
Vocational Technical Center;
(8) International Organization of Masters,
Mates, and Pilots, representing the masters,
mates, and pilots unit.
b. To section (b) Page 99, L 5-6:
{S) United Academic -Adjuncts -American
Association of University Professors, American
Federation of Teachers.
1:54:03 PM
Co-Chair Hoffman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
Co-Chair Stedman MOVED to ADOPT the committee substitute
for CSHB 55(FIN), Work Draft 34-GH1459\O (Marx, 4/30/25).
Co-Chair Hoffman OBJECTED for discussion.
Mr. Ecklund explained the CS changes for HB 53, and read
from a prepared statement:
A Net Zero transaction (ATRIN and ATROUT) between the
Department of Health and the Judiciary- In the past,
Alcohol and Drug Abuse Treatment and Prevention funds
were used to fund the Therapeutic Courts; however,
state law designates these funds to the Department of
Health. The change swaps the funding of $518.0 of
Alcohol funds from the Judiciary to DOH and moves the
same amount ($518.0) of general funds/mental health
dollars to the Judiciary.
Page 3, Line 30 - DOH -Adds $750.0 of Mental Health
Trust Authority Authorized Receipts (MHTAAR) for a
Crisis Call Center, - These trust funds to the
Department of Health, Division of Behavioral Health
will increase the accessibility of funding to support
Alaska's statewide crisis call center
Page 4, L 33 -Adds $200.0 MHTAAR for Direct Support
Professional Training/Professional Development. These
Trust funds support an incentivized program for direct
care staff and the agency they work for to support
staff in completing the education and coaching
deliverables required through their agency.
Page 6, L 4-6 DNR: add intent to the MH Trust land
office to read: "It is the intent of the legislature
that the FY27 budget promote transparency by
reflecting the existing maintenance and operations
costs of the Trust and its lessees in the Cordova
building and the Trust Authority building."
In the prior version, there was funding for the Alaska
Permanent Fund Corporation in this bill as well. That
fund source has been changed back to PF Gross in HB 53
and has been removed from this bill. Across the two
bills, this nets to zero.
1:57:33 PM
Co-Chair Hoffman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
CSHB 53am(brf sup maj fld)(efd fld) was HEARD and HELD in
committee for further consideration.
CSHB 55(FIN) was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
1:58:16 PM
The meeting was adjourned at 1:58 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 92 Support Campen.pdf |
SFIN 5/1/2025 1:30:00 PM |
SB 92 |
| SB 92 Support Misel.pdf |
SFIN 5/1/2025 1:30:00 PM |
SB 92 |
| SB 92 Support Fitzgerald.pdf |
SFIN 5/1/2025 1:30:00 PM |
SB 92 |
| SB 92 RDC SFIN Testimony SB 92 4-9-25.pdf |
SFIN 5/1/2025 1:30:00 PM |
SB 92 |
| SB 92 work draft version Q.pdf |
SFIN 5/1/2025 1:30:00 PM |
SB 92 |
| SB 92 Explanation of Changes ver S to ver Q 2025.05.01.pdf |
SFIN 5/1/2025 1:30:00 PM |
SB 92 |
| HB 53 Agency Summary - Numbers and Language - UGF Only.pdf |
SFIN 5/1/2025 1:30:00 PM |
HB 53 |
| HB 53 SCS2Sup - Agency Summary - Numbers and Language - UGF Only.pdf |
SFIN 5/1/2025 1:30:00 PM |
HB 53 |
| HB 53 Agency Summary - Numbers and Language - All Funds.pdf |
SFIN 5/1/2025 1:30:00 PM |
HB 53 |
| HB 53 SCS2Sup - Agency Summary - Numbers and Language - All Funds.pdf |
SFIN 5/1/2025 1:30:00 PM |
HB 53 |
| HB 53 work draft version Y.pdf |
SFIN 5/1/2025 1:30:00 PM |
HB 53 |