Legislature(2025 - 2026)

2025-10-15 House Journal

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2025-10-15                     House Journal                      Page 1427
                                                                                                                                
                              HOUSE JOURNAL                                                                                  
                                                                                                                                
                         ALASKA STATE LEGISLATURE                                                                            
                                                                                                                                
                        THIRTY-FOURTH LEGISLATURE                                                                            
                                                                                                                                
                              FIRST SESSION                                                                                  
                          FIRST SPECIAL SESSION                                                                              
                                                                                                                                
                                                                                                                                
Juneau, Alaska                  Wednesday              October 15, 2025                                                       
                                                                                                                                
                             Final Supplement                                                                              
                                                                                                                                
                        MESSAGES FROM THE GOVERNOR                                                                           
                                                                                                                                
SCR 101                                                                                                                       
A message dated September 29 was received stating the Governor                                                                  
noted the following resolution and is transmitting the engrossed and                                                            
enrolled copies to the Lieutenant Governor's office for permanent                                                               
filing:                                                                                                                         
                                                                                                                                
     SENATE CONCURRENT RESOLUTION NO. 101                                                                                       
     Authorizing the Senate and the House of Representatives to recess                                                          
     for a period of more than three days.                                                                                      
                                                                                                                                
     Legislative Resolve No. 22                                                                                                 
                                                                                                                                
SB 54                                                                                                                         
The following letter was dated September 22:                                                                                    
                                                                                                                                
"Dear Speaker Edgmon:                                                                                                           
                                                                                                                                
Under the authority vested in me by Article II, Section 15, of the                                                              
Alaska Constitution, I have vetoed the following bill:                                                                          
                                                                                                                                
     CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL                                                                                  
     NO. 54(FIN)                                                                                                                
     "An Act relating to registered interior designers and interior                                                             
     design; relating to project costs for the construction, enlargement,                                                       
     or improvement of airports; extending the termination date of the                                                          

2025-10-15                     House Journal                      Page 1428
     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; relating to                                                        
     the scope of the certification requirements for architects,                                                                
     engineers, land surveyors, landscape architects, and registered                                                            
     interior designers; relating to immunity for design professionals;                                                         
     relating to the cost of construction for recreation centers; relating                                                      
     to liens for labor or materials furnished; relating to the                                                                 
     procurement of landscape architectural and interior design                                                                 
     services; relating to the cost of construction of safe water and                                                           
     hygienic sewage disposal facilities in villages; and providing for                                                         
     an effective date."                                                                                                        
                                                                                                                                
SB 54 goes well beyond a routine extension of the AELS Board.                                                                   
SB 54 would remove certified installers from most residential                                                                   
wastewater work and restrict them to only very small commercial                                                                 
systems. The Alaska Department of Environmental Conservation                                                                    
warns that this change would halt planned installations, force many                                                             
small systems to be routed to licensed professional engineers, and add                                                          
roughly $1,000 to $2,000 per system, with the sharpest impacts in                                                               
rural Alaska where engineers are scarce. That means higher costs,                                                               
longer waits, and fewer homes and businesses getting sanitation.                                                                
                                                                                                                                
The bill would also repeal AS 36.30.270(e) and force qualifications-                                                            
based selection only for design-build procurements, barring any                                                                 
consideration of price. Eliminating competitive pricing in design-build                                                         
will drive up project costs and reduce flexibility across state                                                                 
construction.                                                                                                                   
                                                                                                                                
Finally, SB 54 expands the AELS Board to thirteen members and                                                                   
creates a new licensure track for “registered interior designers.”                                                              
Interior design is not a regulated practice in Alaska today; the bill does                                                      
not define “interior design,” and there is no public-safety rationale for                                                       
creating a new title and bureaucracy. The expansion increases cost and                                                          
confusion without a demonstrated benefit.                                                                                       
                                                                                                                                
                                                                                                                                

2025-10-15                     House Journal                      Page 1429
Sincerely,                                                                                                                      
/s/                                                                                                                             
Mike Dunleavy                                                                                                                   
Governor"                                                                                                                       
                                                                                                                                
SB 113                                                                                                                        
The following letter was dated September 27:                                                                                    
                                                                                                                                
"Dear Speaker Edgmon:                                                                                                           
                                                                                                                                
Under the authority vested in me by Article II, Section 15, of the                                                              
Alaska Constitution, I have vetoed the following bill:                                                                          
                                                                                                                                
     SENATE BILL NO. 113                                                                                                        
     "An Act relating to the Multistate Tax Compact; relating to                                                                
     apportionment of income to the state; relating to highly digitized                                                         
     businesses subject to the Alaska Net Income Tax Act; and                                                                   
     providing for an effective date."                                                                                          
                                                                                                                                
The state’s fiscal outlook has deteriorated in the face of decreasing oil                                                       
prices and ongoing reductions in federal spending. In response to the                                                           
state’s fiscal condition, several tax proposals have been introduced                                                            
during this legislative session. However, a truly durable fiscal plan                                                           
must include not only revenues but also clear guardrails: spending                                                              
limits, statutory and regulatory reviews, and policies that make Alaska                                                         
the most competitive state in the nation for investment and new                                                                 
business growth.                                                                                                                
                                                                                                                                
Equally important is the need to evaluate all current state spending and                                                        
government functions – not only for efficiency, but for their relevance                                                         
and long-term impact. Any serious effort to stabilize Alaska’s fiscal                                                           
future must also focus on diversifying our economy and creating new                                                             
industries, which in turn broadens the economic base for potential                                                              
revenue. This bill is a simple tax bill that does not consider the                                                              
comprehensive fiscal approach outlined above.                                                                                   
                                                                                                                                
In addition, a component of this bill raises serious constitutional                                                             
concerns because it singles out a class of highly digitized out-of-state                                                        
businesses engaged in electronic commerce and imposes a less                                                                    
favorable tax system on them. States are prohibited from                                                                        

2025-10-15                     House Journal                      Page 1430
discriminating against interstate commerce. Additionally, by singling                                                           
out electronic commerce, the bill may run afoul of the federal Internet                                                         
Tax Freedom Act, which requires that states not tax e-commerce less                                                             
favorably than similar industries not engaged in e-commerce.                                                                    
                                                                                                                                
For these reasons, I will not sign standalone tax measures without a                                                            
complete fiscal framework. I could foresee incorporating the elements                                                           
of this bill, which would withstand constitutional scrutiny, into a                                                             
comprehensive fiscal approach this coming year. I agree that Alaska                                                             
needs to stabilize its finances, and I plan on having a robust discussion                                                       
this upcoming session on a sustainable fiscal plan, complete with                                                               
elements outlined above, but it must protect Alaskans, and provide the                                                          
resources to run government in a responsible manner and survive                                                                 
constitutional scrutiny.                                                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Mike Dunleavy                                                                                                                   
Governor"                                                                                                                       
                                                                                                                                
A Declaration of Disaster Emergency regarding late August storm                                                                 
flooding dated August 29 and an amendment to the declaration dated                                                              
September 11 with accompanying letters were received. The                                                                       
declaration and letters were copied to the Finance Committee Co-                                                                
chairs and are on file in the Chief Clerk's office.                                                                             
                                                                                                                                
A Declaration of Disaster Emergency dated September 24 and                                                                      
accompanying letter dated October 3, regarding landslides in Elfin                                                              
Cove, were received. The declaration and letter were copied to the                                                              
Finance Committee Co-chairs and are on file in the Chief Clerk's                                                                
office.                                                                                                                         
                                                                                                                                
A letter dated September 24 was received regarding the August 6,                                                                
2024, glacial dam outburst flood disaster in Juneau. The letter stated                                                          
that the disaster was declared a Federal Disaster on October 16, 2024.                                                          
A revised finance plan was attached and the Governor requests                                                                   
concurrence from the legislature to increase the funding limitation to                                                          
Federal Authorization and the State Disaster Relief Fund pursuant to                                                            
AS 26.23.020 and AS 26.23.025. The letter, revised finance plan, and                                                            
a draft letter of concurrence were copied to the Finance Committee                                                              
Co-chairs and are on file in the Chief Clerk's office.                                                                          

2025-10-15                     House Journal                      Page 1431
A letter dated October 1 was received regarding the August 25, 2024,                                                            
landslide disaster in Ketchikan. The letter stated that the disaster was                                                        
declared a Federal Disaster on November 13, 2024. An updated                                                                    
finance plan was attached and the Governor requests concurrence from                                                            
the legislature to increase the funding limitation to Federal                                                                   
Authorization and the State Disaster Relief Fund pursuant to                                                                    
AS 26.23.020 and AS 26.23.025. The letter, revised finance plan, and                                                            
a draft letter of concurrence were copied to the Finance Committee                                                              
Co-chairs and are on file in the Chief Clerk's office.                                                                          
                                                                                                                                
                              COMMUNICATIONS                                                                                 
                                                                                                                                
Letters of disclosure received from the Select Committee on                                                                     
Legislative Ethics, as required by AS 24.60, were published in House                                                            
Journal Supplement No. 8 and House and Senate Joint Journal                                                                     
Supplement No. 10.                                                                                                              
                                                                                                                                
The following were received:                                                                                                    
                                                                                                                                
Dept. of Health                                                                                                                 
Health Information Exchange System                                                                                              
2024 Progress and Recommendations Report                                                                                        
August 28, 2025                                                                                                                 
(as required by AS 18.23.315)                                                                                                   
                                                                                                                                
Dept. of Health                                                                                                                 
2025 Alaska Opioid Legislative Report                                                                                           
(as required by AS 17.20.085)                                                                                                   
                                                                                                                                
Alaska Permanent Fund Corporation                                                                                               
Power Cost Equalization Endowment Fund                                                                                          
Financial Statements                                                                                                            
June 30, 2025 and 2024                                                                                                          
(as required by AS 37.13.310)                                                                                                   
                                                                                                                                
Dept. of Transportation & Public Facilities                                                                                     
Alaska Marine Highway System                                                                                                    
2045 Comprehensive Long-Range Plan                                                                                              
(as required by AS 19.65.011)                                                                                                   
                                                                                                                                

2025-10-15                     House Journal                      Page 1432
Messages dated September 3 and 23 were received stating the Speaker                                                             
made the following appointments:                                                                                                
                                                                                                                                
Alaska Marine Highway Operations Board                                                                                        
(AS 19.65.210)                                                                                                                  
Glen Gardner, Jr.                                                                                                               
                                                                                                                                
Citizen's Advisory Commission on Federal Management Areas in                                                                  
Alaska                                                                                                                        
(AS 41.37.170)                                                                                                                  
Frank Woods                                                                                                                     
                                                                                                                                
HB 53                                                                                                                         
A letter dated September 30, to Speaker Edgmon and President                                                                    
Stevens from the Division of Legislative Finance was received                                                                   
identifying the fiscal notes included in the packet that accompanied the                                                        
conference committee with limited powers of free conference report                                                              
(page 1312) for the following, which was adopted by the House and                                                               
Senate May 20:                                                                                                                  
                                                                                                                                
          CONFERENCE CS FOR HOUSE BILL NO. 53(brf sup maj fld H)                                                               
     "An Act making appropriations for the operating and loan                                                                   
     program expenses of state government and for certain programs;                                                             
     capitalizing funds; amending appropriations; making                                                                        
     supplemental appropriations; and providing for an effective date."                                                         
                                                                                                                                
The following fiscal notes were itemized in the letter:                                                                         
                                                                                                                                
[Includes only bills that passed the House and Senate.]                                                                         
                                                                                                                                
HB 57-SCHOOLS: COMM. DEVICES/CLASS SIZE/FUNDING                                                                                 
                                                                                                                                
5. Fiscal, Senate Finance Committee/Dept. of Education & Early                                                                  
 Development (published 4/25)                                                                                                   
6. Fiscal, Senate Finance Committee/Dept. of Labor & Workforce                                                                  
 Development (published 4/25)                                                                                                   
7. Fiscal, Senate Finance Committee/Legislative Agency                                                                          
 (published 4/25)                                                                                                               
                                                                                                                                
                                                                                                                                
                                                                                                                                

2025-10-15                     House Journal                      Page 1433
SB 95-CHILD CARE: ASSISTANCE/GRANTS                                                                                             
                                                                                                                                
2. Fiscal, Conference Committee on HB 53/Dept. of Health                                                                        
 (published 9/30)                                                                                                               
                                                                                                                                
SB 97-BIG GAME GUIDE PERMIT PROGRAM                                                                                             
                                                                                                                                
7. Fiscal, Conference Committee on HB 53/Dept. of Natural                                                                       
 Resources (published 9/30)                                                                                                     
                                                                                                                                
The Legislative Finance letter and fiscal note packet were transmitted                                                          
to the Office of the Governor at 10:45 a.m., October 1.                                                                         
                                                                                                                                
                                * * * * *                                                                                      
                                                                                                                                
This final supplement completes the record of legislation for the First                                                         
Session and First Special Session of the Thirty-fourth Alaska State                                                             
Legislature.                                                                                                                    
                                                                                                                                
                                                                                                                                
                                             Crystaline Jones                                                                   
                                             Chief Clerk