Legislature(2025 - 2026)SENATE FINANCE 532

05/07/2025 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 34 REPEAL 90 DAY SESSION LIMIT TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
Bills Previously Heard/Scheduled:
+= SB 24 TOBACCO/NICOTINE/E-CIG AGE; E-CIG TAX TELECONFERENCED
Moved CSSB 24(FIN) Out of Committee
-- Testimony <Invitation Only> --
= SB 92 CORP. INCOME TAX; OIL & GAS ENTITIES
Moved CSSB 92(FIN) Out of Committee
**Streamed live on AKL.tv**
                 SENATE FINANCE COMMITTEE                                                                                       
                        May 7, 2025                                                                                             
                         9:06 a.m.                                                                                              
                                                                                                                                
9:06:30 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Hoffman called the Senate Finance Committee                                                                            
meeting to order at 9:06 a.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                                                                                                                  
                                                                                                                                
Senator Cathy Giessel, Sponsor; Senator Gary Stevens,                                                                           
Sponsor; Tim Lamkin, Staff, Senator Gary Stevens.                                                                               
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 24     TOBACCO/NICOTINE/E-CIG AGE; E-CIG TAX                                                                                 
                                                                                                                                
          CSSB 24(FIN)  was REPORTED  out of  committee with                                                                    
          two   "do  pass"   recommendations,  one   "amend"                                                                    
          recommendation,  three  "no recommendations";  one                                                                    
          new fiscal  note from  the Department  of Revenue,                                                                    
          and seven previously  published zero fiscal notes:                                                                    
          FN  1(CED), FN  2(ADM), FN  3(ADM), FN  4(DOH), FN                                                                    
          6(DPS), FN 7(AJS), FN 8(LAW).                                                                                         
                                                                                                                                
SB 34     REPEAL 90 DAY SESSION LIMIT                                                                                           
                                                                                                                                
          SB 34 was HEARD and  HELD in committee for further                                                                    
          consideration.                                                                                                        
                                                                                                                                
SB 92     CORP. INCOME TAX; OIL and GAS ENTITIES                                                                                
                                                                                                                                
          CSSB 92(FIN)  was REPORTED  out of  committee with                                                                    
          three  "do  pass"  recommendations,  two  "do  not                                                                    
          pass"     recommendations,     and     two     "no                                                                    
          recommendations";   and    with   one   previously                                                                    
          published indeterminate fiscal note: FN 1(REV).                                                                       
                                                                                                                                
SENATE BILL NO. 34                                                                                                            
                                                                                                                                
     "An Act relating to the duration of a regular session                                                                      
     of the legislature."                                                                                                       
                                                                                                                                
9:07:35 AM                                                                                                                    
                                                                                                                                
SENATOR CATHY GIESSEL,  SPONSOR, introduced the legislation.                                                                    
She believed  that the bill  would help voter  confidence in                                                                    
the work that was done  in the legislature. She relayed that                                                                    
the bill would repeal the  90-day session statute, which had                                                                    
been  passed  in  2006  after   a  citizen  initiative.  The                                                                    
initiative  was  intended   to  streamline  the  legislative                                                                    
process and encourage legislators to  get the work done. She                                                                    
addressed  a  chart  that  quantified   how  many  days  the                                                                    
legislature had  been in session  (copy on file).  She noted                                                                    
that the  bill became  effective in 2008.  She made  note of                                                                    
special sessions  and session lengths. She  pointed out that                                                                    
there had only been two  90-day sessions since that time, in                                                                    
2010 and 2013.  In 2020 there was a session  of only 69 days                                                                    
due to the  Covid-19 pandemic. The following  year there had                                                                    
been a legislative  session of 217 days  in total, including                                                                    
three special sessions. She  believed the 90-day requirement                                                                    
undermined voter confidence.                                                                                                    
                                                                                                                                
Senator  Giessel drew  attention to  a document  that listed                                                                    
the price of  oil (copy on file). She  contemplated that the                                                                    
legislature  went  over  90  days  of  session  due  to  the                                                                    
complicated  issues it  had to  deal  with. She  highlighted                                                                    
2006 when the initiative passed  and noted that the price of                                                                    
oil in 2008 was $204/bbl and  was the highest price to date.                                                                    
The same year  the initiative was also  implemented, and the                                                                    
legislature went  for 150 days, including  special sessions.                                                                    
She mentioned  policy issues. She  highlighted that  the oil                                                                    
price  had  plummeted to  $63/bbl  the  following year.  She                                                                    
remarked on the  oil price volatility shown  on the document                                                                    
and  noted  the complexities  the  legislature  had to  deal                                                                    
with. She  thought that Co-Chair Hoffman  had commented that                                                                    
the fiscal situation  was the worst he ever  recalled in his                                                                    
many years in the legislature.                                                                                                  
                                                                                                                                
Co-Chair  Hoffman   clarified  that  he  had   been  in  the                                                                    
legislature for 39 years.                                                                                                       
                                                                                                                                
Senator  Giessel  emphasized  that the  90-day  session  was                                                                    
well-intentioned but  was unrealistic.  She pondered  that a                                                                    
repeal would assuage public  frustration. She mentioned that                                                                    
there was a sectional analysis for member to consider.                                                                          
                                                                                                                                
Co-Chair Hoffman  thought the  bill was  straightforward and                                                                    
relayed that  the committee would forego  consideration of a                                                                    
sectional analysis.                                                                                                             
                                                                                                                                
9:11:53 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  recalled that  the creation of  the 90-day                                                                    
session had been  driven by two members  of the legislature,                                                                    
neither  of  which  were  in  leadership.  He  thought  both                                                                    
members  had  wanted  to  return  home  for  other  business                                                                    
dealings.                                                                                                                       
                                                                                                                                
9:12:27 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman reported  that he had been  to more special                                                                    
sessions than regular sessions.                                                                                                 
                                                                                                                                
9:12:41 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman OPENED public testimony.                                                                                       
                                                                                                                                
Co-Chair Hoffman CLOSED public testimony.                                                                                       
                                                                                                                                
Senator  Kiehl  reviewed  the  fiscal  note.  The  note  was                                                                    
prepared  by the  Legislative Affairs  Agency. There  was no                                                                    
cost  to the  note,  and he  affirmed  that the  legislature                                                                    
always had a 120-day session in its budget.                                                                                     
                                                                                                                                
9:13:17 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:13:40 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SB  34  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 24                                                                                                            
                                                                                                                                
     "An   Act  relating   to  tobacco,   tobacco  products,                                                                    
     electronic  smoking  products, nicotine,  and  products                                                                    
     containing  nicotine;   raising  the  minimum   age  to                                                                    
     purchase,  exchange,  or  possess  tobacco,  a  product                                                                    
     containing nicotine, or  an electronic smoking product;                                                                    
     relating  to the  tobacco use  education and  cessation                                                                    
     fund; relating  to the  taxation of  electronic smoking                                                                    
     products  and  vapor  products; and  providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
9:13:40 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman relayed that  the committee first heard the                                                                    
bill on April 1 and  had taken public testimony and reviewed                                                                    
the  fiscal note  at the  time. The  amendment deadline  was                                                                    
April 11,  and the co-chairs  had received one  amendment. A                                                                    
small technical change  was brought to the  attention of the                                                                    
committee after the amendment  deadline. The committee would                                                                    
consider the amendment.                                                                                                         
                                                                                                                                
9:14:30 AM                                                                                                                    
                                                                                                                                
SENATOR    GARY   STEVENS,    SPONSOR,   reintroduced    the                                                                    
legislation.   He  explained   that  the   bill  was   about                                                                    
protecting  children   from  becoming  addicted.   The  bill                                                                    
restricted  sales and  possession  of  nicotine products  by                                                                    
young  people. The  bill was  an effort  to push  back on  a                                                                    
multi-billion industry trying to  addict young people to the                                                                    
substances.  The bill  raised the  legal age  to buy,  sell,                                                                    
use,  and  possess  cigarettes, nicotine  products,  and  e-                                                                    
cigarettes to  21. He  relayed that  taxing of  the products                                                                    
was shown to reduce consumption.                                                                                                
                                                                                                                                
9:15:27 AM                                                                                                                    
                                                                                                                                
TIM LAMKIN,  STAFF, SENATOR GARY  STEVENS, relayed  that the                                                                    
bill  was  very  similar  to  a bill  that  had  passed  the                                                                    
committee  previously.   He  asked   if  he   should  review                                                                    
components of the bill or address members questions.                                                                            
                                                                                                                                
9:15:39 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  asked if SB  24 was identical to  the bill                                                                    
passed in the committee one  year previously. He asked about                                                                    
an effective date change.                                                                                                       
                                                                                                                                
9:15:48 AM                                                                                                                    
                                                                                                                                
Mr. Lamkin  replied that  there was a  slight change  to the                                                                    
bill from the Senate Labor and Commerce Committee.                                                                              
                                                                                                                                
Co-Chair Stedman asked about the change.                                                                                        
                                                                                                                                
Mr. Lamkin  explained that there  was an exemption  added to                                                                    
the  bill  related  to  online  sales  of  cigars  and  pipe                                                                    
tobacco.                                                                                                                        
                                                                                                                                
Co-Chair Hoffman  relayed that the committee  would consider                                                                    
amendments.                                                                                                                     
                                                                                                                                
9:16:37 AM                                                                                                                    
                                                                                                                                
Senator Kaufman MOVED to ADOPT  Amendment 1, 34.LS0260\1. I,                                                                    
Nauman, 4/2/25 (copy on file):                                                                                                  
                                                                                                                                
     Page l, lines 4-5                                                                                                          
     Delete "relating to the taxation of electronic smoking                                                                     
     products and vapor products;"                                                                                              
                                                                                                                                
     Page 7, line 9:                                                                                                            
     Delete "43.50.850 - 43.50.900" 7 Insert "43.50.850 -                                                                       
     43.50.870" 8                                                                                                               
                                                                                                                                
     Page 8, lines 6- Il:                                                                                                       
     Delete all material.                                                                                                       
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 10, line 15:                                                                                                          
     Delete "Licensing, and Tax" 16 Insert "and Licensing"                                                                      
                                                                                                                                
     Page 10, line 16, through page 11 , line 15:                                                                               
     Delete all material.                                                                                                       
                                                                                                                                
     Page 11, line 16:                                                                                                          
     Delete "Sec. 43.50.860"                                                                                                    
     Insert "Sec. 43.50.850"                                                                                                    
     following "faith;":                                                                                                        
     Insert "or"                                                                                                                
                                                                                                                                
     Page 11, line 25:                                                                                                          
     Delete or" 7   Insert 8                                                                                                    
                                                                                                                                
     Page 11 , line 26:                                                                                                         
     Delete all material.                                                                                                       
                                                                                                                                
     Page 12, lines I - 2:                                                                                                      
     Delete "; and"                                                                                                             
                                                                                                                                
     Page 12, line 3:                                                                                                           
     Delete all material.                                                                                                       
                                                                                                                                
     Page 12, line 20, through page 13, line 5:                                                                                 
     Delete all material.                                                                                                       
                                                                                                                                
     Page 13, line 6:                                                                                                           
     Delete "Sec. 43.50.880" 27                                                                                                 
     Insert "Sec. 43.50.860"                                                                                                    
                                                                                                                                
     Page 13, lines 14 - 15:                                                                                                    
     Delete "authorized by law to possess electronic                                                                            
     smoking products not taxed under this chapter"                                                                             
          24 - 25:                                                                                                              
     Delete "authorized by law to possess electronic                                                                            
     smoking products not taxed under this   chapter"                                                                           
                                                                                                                                
     Page 13, line 27:                                                                                                          
     Delete                                                                                                                     
     Insert "and"                                                                                                               
                                                                                                                                
     Page 13, lines 28 - 29:                                                                                                    
     Delete ", and the tax imposed on the electronic                                                                            
     smoking product under this chapter has been paid"                                                                          
                                                                                                                                
     Page 14, line 31, through page 15, line 3:                                                                                 
     Delete all material.                                                                                                       
                                                                                                                                
     Page 15, line 4:                                                                                                           
     Delete "Sec. 43.50.885" 19                                                                                                 
     Insert "Sec. 43.50.870"                                                                                                    
                                                                                                                                
     Page 15, line 19, through page 16, line 8:                                                                                 
     Delete all material.                                                                                                       
                                                                                                                                
     Renumber the following paragraphs accordingly.                                                                             
                                                                                                                                
     Page 21, line 9:                                                                                                           
     Delete "sec. 24"                                                                                                           
     Insert "sec. 23"                                                                                                           
                                                                                                                                
     Page 23, line 24:                                                                                                          
     Delete "sec. 26"                                                                                                           
     Insert "sec. 5"                                                                                                            
                                                                                                                                
     Page 23, line 25:                                                                                                          
     Delete " 16, 19, and 25"                                                                                                   
     Insert " 18, and 24" 19                                                                                                    
                                                                                                                                
     Page 23, line 26:                                                                                                          
     Delete "sec. 29"                                                                                                           
     Insert "sec. 28"                                                                                                           
                                                                                                                                
9:16:44 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman OBJECTED for discussion.                                                                                       
                                                                                                                                
9:17:03 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:17:05 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Senator Kaufman  explained that  the amendment  would remove                                                                    
the tax  component of  the bill, which  he thought  had been                                                                    
the  impediment  to  the   legislation  moving  forward.  He                                                                    
thought  the  bill  would  do  good  work  without  the  tax                                                                    
component.                                                                                                                      
                                                                                                                                
Co-Chair  Hoffman asked  for the  sponsors  position  on the                                                                    
amendment.                                                                                                                      
                                                                                                                                
9:17:46 AM                                                                                                                    
                                                                                                                                
Senator Stevens appreciated  the amendment sponsors  thought                                                                    
process. He  contended that  the tax  caused less  usage [of                                                                    
tobacco products].  He used the  example of the  tobacco tax                                                                    
and  noted that  every  time the  legislature increased  the                                                                    
tax,  consumption  was  reduced.   He  was  opposed  to  the                                                                    
amendment.                                                                                                                      
                                                                                                                                
9:18:26 AM                                                                                                                    
                                                                                                                                
Senator Kaufman thought it had  been reported that there was                                                                    
already headway  being made  on the intent  of the  bill. He                                                                    
thought the bill might be getting  in its own way of getting                                                                    
into statute.                                                                                                                   
                                                                                                                                
Co-Chair Hoffman MAINTAINED his OBJECTION.                                                                                      
                                                                                                                                
Senator Kaufman  MOVED to WITHDRAW Amendment  1. There being                                                                    
NO OBJECTION, it was so ordered.                                                                                                
                                                                                                                                
9:19:21 AM                                                                                                                    
                                                                                                                                
Senator  Kiehl MOVED  to ADOPT  Amendment 2,  34-LS0260\I.2,                                                                    
Nauman, 5/5/25 (copy on file):                                                                                                  
                                                                                                                                
     Page 3, line 24:                                                                                                           
          Delete "19"                                                                                                           
          Insert "18, 19,"                                                                                                      
                                                                                                                                
Co-Chair Hoffman OBJECTED for discussion.                                                                                       
                                                                                                                                
9:19:36 AM                                                                                                                    
                                                                                                                                
Senator  Kiehl explained  the amendment,  which was  a small                                                                    
technical  fix related  to putting  18-year-olds in  a group                                                                    
with  19-  and 20-year-olds  in  the  context of  getting  a                                                                    
ticket and not a mandatory court appearance.                                                                                    
                                                                                                                                
9:20:18 AM                                                                                                                    
                                                                                                                                
Senator Stevens appreciated and supported the amendment.                                                                        
                                                                                                                                
Co-Chair  Hoffman WITHDREW  his  objection.  There being  NO                                                                    
further OBJECTION, Amendment 2 was adopted.                                                                                     
                                                                                                                                
9:20:39 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:21:55 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Senator  Kiehl MOVED  to REPORT  SB 24  from committee  with                                                                    
individual recommendations and  attached fiscal notes. There                                                                    
being NO OBJECTION, it was so ordered.                                                                                          
                                                                                                                                
CSSB  24(FIN) was  REPORTED out  of committee  with two  "do                                                                    
pass"  recommendations,  one "amend"  recommendation,  three                                                                    
"no  recommendations";   one  new   fiscal  note   from  the                                                                    
Department of  Revenue, and seven previously  published zero                                                                    
fiscal notes:  FN 1(CED), FN  2(ADM), FN 3(ADM),  FN 4(DOH),                                                                    
FN 6(DPS), FN 7(AJS), FN 8(LAW).                                                                                                
                                                                                                                                
9:22:41 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:26:56 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
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."                                                                                          
                                                                                                                                
9:27:34 AM                                                                                                                    
                                                                                                                                
Senator Kiehl  MOVED to REPORT  SB 92 out of  Committee with                                                                    
individual  recommendations  and   the  accompanying  fiscal                                                                    
notes.                                                                                                                          
                                                                                                                                
9:27:55 AM                                                                                                                    
                                                                                                                                
Senator Kaufman  OBJECTED for discussion. He  stated that he                                                                    
did  not  support  the  fiscal plan.  He  thought  the  bill                                                                    
attempted to  accomplish the tax  pieces of the  fiscal plan                                                                    
but  without the  other  functional  pieces, including  many                                                                    
things  developed in  the Fiscal  Policy  Working Group.  He                                                                    
thought a comprehensive plan would  include such elements as                                                                    
a  spending  cap,  better management  processes  within  the                                                                    
executive  branch,  and  other  items. He  thought  the  tax                                                                    
proposed in the  bill risked  upsetting the  apple cart  for                                                                    
those  that would  come to  the state  to do  transformative                                                                    
work. He did not support the bill.                                                                                              
                                                                                                                                
Senator  Kaufman  WITHDREW  his objection.  There  being  NO                                                                    
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
CSSB 92(FIN)  was REPORTED out  of committee with  three "do                                                                    
pass"  recommendations, two  "do not  pass" recommendations,                                                                    
and  two  "no  recommendations";  and  with  one  previously                                                                    
published indeterminate fiscal note: FN 1(REV).                                                                                 
                                                                                                                                
9:29:18 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:31:20 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Hoffman relayed that the afternoon meeting was                                                                         
canceled.                                                                                                                       
                                                                                                                                
ADJOURNMENT                                                                                                                   
9:31:34 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:31 a.m.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB 34, Version A.pdf SFIN 5/7/2025 9:00:00 AM
SSTA 3/18/2025 3:30:00 PM
SB 34
SB 34 Sectional Analysis.pdf SFIN 5/7/2025 9:00:00 AM
SSTA 3/18/2025 3:30:00 PM
SB 34
SB 34 Supporting Document.pdf SFIN 5/7/2025 9:00:00 AM
SSTA 3/18/2025 3:30:00 PM
SB 34
SB 34 Opposition Koan.pdf SFIN 5/7/2025 9:00:00 AM
SB 34
SB 24 Testimony Andrew W Hb49 and sb24.pdf SFIN 5/7/2025 9:00:00 AM
HB 49
SB 24
SB 24 Major New WHO Report Highlights Sweden's Smoke Free Success - Smoke Free Sweden 2024.pdf SFIN 5/7/2025 9:00:00 AM
SB 24 Amendment 2 Kiehl.pdf SFIN 5/7/2025 9:00:00 AM
SB 24
SB 24 Amendment 1 Kaufman.pdf SFIN 5/7/2025 9:00:00 AM
SB 24
SB 24 - Research - Article - People Magazine - Teen Popcorn Lung.pdf SFIN 5/7/2025 9:00:00 AM
SB 24
SB 34 Support Document- WTI Oil Prices 2000-2025.pdf SFIN 5/7/2025 9:00:00 AM
SB 34
SB 24 Public Testimony McDonald.pdf SFIN 5/7/2025 9:00:00 AM
SB 24