03/12/2025 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB54 | |
| SB24 | |
| SB55 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 54 | TELECONFERENCED | |
| += | SB 24 | TELECONFERENCED | |
| += | SB 55 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 12, 2025
1:33 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Kelly Merrick, Vice Chair
Senator Elvi Gray-Jackson
Senator Forrest Dunbar
Senator Robert Yundt
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Senator Stevens
COMMITTEE CALENDAR
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 54
"An Act relating to registered interior designers and interior
design; extending the termination date of the State Board of
Registration for Architects, Engineers, and Land Surveyors;
relating to the State Board of Registration for Architects,
Engineers, and Land Surveyors; establishing requirements for the
practice of registered interior design; relating to the practice
of architecture, engineering, land surveying, landscape
architecture, and registered interior design by partnerships;
relating to the scope of the certification requirements for
architects, engineers, land surveyors, landscape architects, and
registered interior designers; relating to liens for labor or
materials furnished; relating to the procurement of landscape
architectural and interior design services; and providing for an
effective date."
- MOVED CSSSSB 54(L&C) OUT OF COMMITTEE
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."
- MOVED CSSB 24(L&C) OUT OF COMMITTEE
SENATE BILL NO. 55
"An Act relating to employer contributions in the teachers'
retirement system; relating to supplemental employee benefits;
and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 54
SHORT TITLE: EXT ARCH, ENG, SURVEY BRD; REG INT DESIGN
SPONSOR(s): SENATOR(s) CLAMAN
01/24/25 (S) READ THE FIRST TIME - REFERRALS
01/24/25 (S) L&C, FIN
02/24/25 (S) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
02/24/25 (S) L&C, FIN
02/26/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/26/25 (S) Heard & Held
02/26/25 (S) MINUTE(L&C)
03/05/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/05/25 (S) Heard & Held
03/05/25 (S) MINUTE(L&C)
03/07/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/07/25 (S) Heard & Held
03/07/25 (S) MINUTE(L&C)
03/12/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 24
SHORT TITLE: TOBACCO/NICOTINE/E-CIG AGE; E-CIG TAX
SPONSOR(s): SENATOR(s) STEVENS
01/10/25 (S) PREFILE RELEASED 1/10/25
01/22/25 (S) READ THE FIRST TIME - REFERRALS
01/22/25 (S) L&C, FIN
02/24/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/24/25 (S) Heard & Held
02/24/25 (S) MINUTE(L&C)
03/03/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/03/25 (S) Heard & Held
03/03/25 (S) MINUTE(L&C)
03/12/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 55
SHORT TITLE: TRS CONTR RATE; PERS/TRS SOC SECUR OR SBS
SPONSOR(s): SENATOR(s) STEDMAN
01/24/25 (S) READ THE FIRST TIME - REFERRALS
01/24/25 (S) L&C, FIN
02/12/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/12/25 (S) Heard & Held
02/12/25 (S) MINUTE(L&C)
03/12/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
KONRAD JACKSON, Staff
Senator Jesse Bjorkman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the summary of changes for SB 24.
KONRAD JACKSON, Staff
Senator Jesse Bjorkman
Alaska State Legislator
Juneau, Alaska
POSITION STATEMENT: Explained the amendment changes for SB 55.
ACTION NARRATIVE
1:33:04 PM
CHAIR BJORKMAN called the Senate Labor and Commerce Standing
Committee meeting to order at 1:33 p.m. Present at the call to
order were Senators Merrick, Gray-Jackson, Yundt and Chair
Bjorkman. Senator Dunbar arrived soon thereafter.
SB 54-EXT ARCH, ENG, SURVEY BRD; REG INT DESIGN
1:34:15 PM
CHAIR BJORKMAN announced the consideration of SPONSOR SUBSTITUTE
FOR SENATE BILL NO. 54 "An Act relating to registered interior
designers and interior design; extending the termination date of
the State Board of Registration for Architects, Engineers, and
Land Surveyors; relating to the State Board of Registration for
Architects, Engineers, and Land Surveyors; establishing
requirements for the practice of registered interior design;
relating to the practice of architecture, engineering, land
surveying, landscape architecture, and registered interior
design by partnerships; relating to the scope of the
certification requirements for architects, engineers, land
surveyors, landscape architects, and registered interior
designers; relating to liens for labor or materials furnished;
relating to the procurement of landscape architectural and
interior design services; and providing for an effective date."
Chair Bjorkman stated the committee adopted three amendments in
the March 7, 2025 Senate Labor and Commerce Committee meeting
and SSSB 54, as amended, is before the committee.
1:34:48 PM
CHAIR BJORKMAN solicited the will of the committee.
1:34:51 PM
SENATOR MERRICK moved to report SSSB 54, work order 34-LS0044\I,
as amended, from committee with individual recommendations and
attached fiscal note(s).
1:35:13 PM
CHAIR BJORKMAN found no objection and CSSSSB 54(L&C) was
reported from the Senate Labor and Commerce Standing Committee.
1:35:27 PM
At ease.
SB 24-TOBACCO/NICOTINE/E-CIG AGE; E-CIG TAX
1:37:31 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of 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."
1:38:00 PM
CHAIR BJORKMAN solicited a motion.
1:38:02 PM
SENATOR MERRICK moved to adopt the committee substitute (CS) for
SB 24, work order 34-LS0260\I, as the working document.
1:38:11 PM
CHAIR BJORKMAN objected for purposes of discussion.
1:38:30 PM
KONRAD JACKSON, Staff, Senator Jesse Bjorkman, Alaska State
Legislature, Juneau, Alaska, presented the summary of changes
for SB 24:
[Original punctuation provided.]
The CSSB 24, version I, before you makes three
substantive changes to the bill.
First it maintains the status quo when it comes to the
shipping or transporting of cigars or pipe tobacco
into the State. This new language can be found on
page 8, lines 29-31.
Secondly, language on page 9, lines 14-19 is deleted
to remove the requirement that a recipient provide a
copy of their identification to the common or contract
carrier prior to delivery.
Thirdly, on page 15, line 9 of the CS version N, the
cap of 50 milligrams of nicotine is changed to 70
milligrams.
There are additional conforming changes in the CS.
1:40:02 PM
CHAIR BJORKMAN asked what kind of effect SB 24 would have had on
pipe tobacco and cigars.
1:40:24 PM
MR. JACKSON answered that tobacco cigars and pipe tobacco can be
imported and sold in the state without being subject to
licensing and taxes. He said the current language in the CS
would maintain the status quo. If the committee doesn't adopt
the CS, these products would be regulated similarly to other
tobacco products.
1:41:00 PM
CHAIR BJORKMAN asked what the reason is for changing the cap on
nicotine from 50 to 70 milligrams.
1:41:09 PM
MR. JACKSON answered that some reputable manufacturers produce
products with nicotine levels higher than 50 milligrams. The
concern is that setting a 50-milligram cap could lead to those
products being sold on the black market with less reputable
manufacturers.
1:42:04 PM
SENATOR DUNBAR asked why not apply the tobacco tax to pipe and
cigar tobacco and whether doing so would created a double tax on
pipe and cigars.
1:43:09 PM
MR. JACKSON responded that cigars and pipe tobacco are not
included in the same tax structure as other tobacco products
(OTP) or cigarettes. The goal is to maintain the status quo, but
it's ultimately up to the committee and legislature to decide
whether to include these products in the Department of Revenue's
tax structure.
SENATOR DUNBAR asked if there was someone else who could speak
to the amendment.
1:43:48 PM
CHAIR BJORKMAN stated SB 24 is focused on e-cigarettes and
vaping, which pose a real danger to young people. Youth are
becoming addicted early because the products are cheap and easy
to get. He said by taxing all FDA-approved devices, the state
can discourage youth use and prevent these products going to the
black market. He didn't want to include pipe tobacco and cigars
because they're not the main concern.
1:45:30 PM
CHAIR BJORKMAN removed his objection. He found no further
objection and [CSSB 24 was adopted as the working document.]
1:45:37 PM
At ease.
1:45:58 PM
CHAIR BJORKMAN reconvened the meeting.
1:46:09 PM
CHAIR BJORKMAN solicited the will of the committee.
1:46:12 PM
SENATOR MERRICK moved to report CSSB 24, work order 34-LS0260\I,
from committee with individual recommendations and eight
attached fiscal note(s).
1:46:27 PM
CHAIR BJORKMAN found no objection and CSSB 24 (L&C) was reported
from the Senate Labor and Commerce Standing Committee.
1:46:42 PM
At ease.
SB 55-TRS CONTR RATE; PERS/TRS SOC SECUR OR SBS
1:49:49 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 55 "An Act relating to employer
contributions in the teachers' retirement system; relating to
supplemental employee benefits; and providing for an effective
date."
1:50:49 PM
CHAIR BJORKMAN opened public testimony on SB 55.
1:51:18 PM
CHAIR BJORKMAN solicited a motion.
1:51:20 PM
SENATOR MERICK moved to adopt Amendment 1, work order 34-
LS0301\A.3.
34-LS0301\A.3
Wayne
3/11/25
A M E N D M E N T 1
OFFERED IN THE SENATE BY SENATOR BJORKMAN
TO: SB 55
Page 1, line 1:
Delete "relating to employer contributions in the
teachers' retirement system;"
Page 1, lines 4 - 13:
Delete all material and insert:
"* Section 1. AS 39.30.150(a) is amended to read:
(a) In place of contributions to the
federal social security system that would have
been required on behalf of an employee had the
participating employer belonged to the social
security system, a [THE] participating employer
in the public employees' retirement system
(AS 39.35) shall contribute an amount equal to
6.13 percent of the wages of the employee up to
the taxable wage base then in effect in the
social security system, and a participating
employer in the teachers' retirement system
(AS 14.25) shall contribute an amount required
under (d) of this section. For each employee, the
contributions required under this subsection and
(d) - (g) of this section [. THIS CONTRIBUTION]
shall be paid into an individual employee annuity
account in the Department of Administration under
the terms of the State of Alaska Supplemental
Annuity Plan. The department shall pay 6.13
percent of the wages of the employee up to the
taxable wage base then in effect in the social
security system into the individual employee
annuity account established under this
subsection. This wage reduction shall be treated
as an employer contribution under 26 U.S.C.
414(h)(2). All costs of establishing and
administering the programs established under
AS 39.30.150 - 39.30.180 shall be paid from the
contributions made to the individual employee
annuity accounts under this section.
* Sec. 2. AS 39.30.150 is amended by adding new
subsections to read:
(d) A participating employer in the
teachers' retirement system (AS 14.25) shall
contribute an amount equal to 6.13 percent of the
wages of the employee up to the taxable wage base
then in effect in the social security system,
less a contribution by the department, if
applicable, under (e) of this section.
(e) Of the amount under (d) of this
section equal to 6.13 percent of the wages of the
employee up to the taxable wage base then in
effect in the social security system, the
department shall contribute
(1) for the fiscal years ending
June 30, 2027, through June 30, 2029, 100 percent;
(2) for the fiscal years ending
June 30, 2030, through June 30, 2033, 66 and two-
thirds percent;
(3) for the fiscal years ending
June 30, 2034, through June 30, 2037, 33 and one-third
percent.
(f) An employee in the teachers'
retirement system (AS 14.25) shall contribute an
amount equal to 6.13 percent of the wages of the
employee up to the taxable wage base then in
effect in the social security system, less a
contribution by the department, if applicable,
under (g) of this section.
(g) Of the amount under (f) of this
section equal to 6.13 percent of the wages of the
employee up to the taxable wage base then in
effect in the social security system, the
department shall contribute
(1) for the fiscal years ending
June 30, 2027, through June 30, 2029, 100 percent;
(2) for the fiscal years ending
June 30, 2030, through June 30, 2033, 66 and two-
thirds percent;
(3) for the fiscal years ending
June 30, 2034, through June 30, 2037, 33 and one-third
percent."
Page 2, line 25:
Delete "2025"
Insert "2026"
1:51:26 PM
CHAIR BJORKMAN objected for purposes of discussion.
1:51:38 PM
At ease.
1:52:12 PM
CHAIR BJORKMAN reconvened the meeting.
1:52:42 PM
KONRAD JACKSON, Staff, Senator Jesse Bjorkman, Alaska State
Legislator, Juneau, Alaska, explained Amendment 1(A.3):
[Original punctuation provided.]
The amendment before you A.3, removes language from SB
55 which proposed to increase the individual
retirement account.
The amendment further puts participating members of
the Teachers Retirement System into the Alaska
Supplemental benefits program.
AS 39.30.150 is amended by adding new subsections
laying out the payment of the employer and employee
contributions to the system. Specifically, for the
first three years of participation, the Department of
Education and Early Development (DEED) shall pay 100
percent of the employers and employers' contribution.
During the 4th through 7.th years of participation,
the department shall pay 66 2/3 percent and the
following three years, the department shall pay 33 1/3
percent of the required contributions.
Following June 30, 2037, the employers and employees
shall be responsible for their respective
contributions.
A change to the effective date is also made by the
amendment.
He stated this would change the effective date from 2026 to
2027, this will match the timing of the stepped payment plan.
If this is not done, the TRS participants would begin
participation one year before the Department began
covering the cost. They would therefore be required to
pay 100 percent of their respective contributions for
one year before the stepped phase in begins.
1:55:13 PM
CHAIR BJORKMAN removed his objection.
1:55:19 PM
CHAIR BJORKMAN found no further objection and Amendment 1 was
adopted.
1:55:31 PM
CHAIR BJORKMAN stated his goal in amending SB 55 is further
consideration of SB 55 is to clarify the potential financial
impact, especially in terms of less cash in paychecks as
districts contribute to the supplemental benefit system and
retirement savings.
[CHAIR BJORKMAN held SB 55, as amended, in committee.]
1:57:47 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Labor and Commerce Standing
Committee meeting at 1:57 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB24 Public Testimony-Email-Susan Allmeroth 03.03.25.pdf |
SL&C 3/12/2025 1:30:00 PM |
SB 24 |
| SB24 Public Testimony-Letter-Beverly Wooley 03.02.25.pdf |
SL&C 3/12/2025 1:30:00 PM |
SB 24 |
| SB24 Public Testimony-Letter-Dennis Hull 03.03.25.pdf |
SL&C 3/12/2025 1:30:00 PM |
SB 24 |
| SB24 Public Testimony-Email-Brad Boedecker 03.06.25.pdf |
SL&C 3/12/2025 1:30:00 PM |
SB 24 |
| SB24 Draft Proposed Amendment ver N.2.pdf |
SL&C 3/12/2025 1:30:00 PM |
SB 24 |
| SB24 Draft Proposed Amendment ver N.3.pdf |
SL&C 3/12/2025 1:30:00 PM |
SB 24 |
| SB55 Draft Proposed Amendment ver A.3.pdf |
SL&C 3/12/2025 1:30:00 PM |
SB 55 |