Legislature(2025 - 2026)ADAMS 519
03/27/2025 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB49 | |
| HB23 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 53 | TELECONFERENCED | |
| += | HB 55 | TELECONFERENCED | |
| + | HB 49 | TELECONFERENCED | |
| + | HB 23 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
March 27, 2025
2:15 p.m.
2:15:40 PM
CALL TO ORDER
Co-Chair Foster called the House Finance Committee meeting
to order at 2:15 p.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Andy Josephson, Co-Chair
Representative Calvin Schrage, Co-Chair
Representative Jamie Allard
Representative Jeremy Bynum
Representative Alyse Galvin
Representative Sara Hannan
Representative DeLena Johnson
Representative Will Stapp
Representative Frank Tomaszewski
MEMBERS ABSENT
Representative Nellie Unangiq Jimmie
ALSO PRESENT
Hunter Meachum, Staff, Representative Sara Hannan; Nancy
Meade, General Counsel, Alaska Court System; Sylvan Robb,
Director, Division of Corporations, Business and
Professional Licensing, Department of Commerce, Community
and Economic Development; Ken Alper, Staff, Representative
Andy Josephson; Rob Corbisier, Executive Director, Alaska
State Commission on Human Rights.
PRESENT VIA TELECONFERENCE
Brandon Spanos, Deputy Director, Tax Division, Department
of Revenue,; Leena Edais, Self, Anchorage; Rick Dormer,
President, Association of Alaska School Principals,
Ketchikan; Heather Rogers, Admin Operations Manager,
Division of Public Health, Department of Health, Anchorage;
Amber LeBlanc, Admin Services Director, Department of Law,
Anchorage; Jonathon Torres, Deputy Director, Office of
Public Advocacy, Anchorage; Renee McFarland, Public
Defender Agency, Anchorage.
SUMMARY
HB 23 APPLICABILITY OF HUMAN RIGHTS COMMISSION
HB 23 was HEARD and HELD in committee for further
consideration.
HB 49 TOBACCO/NICOTINE/E-CIG AGE; E-CIG TAX
HB 49 was HEARD and HELD in committee for further
consideration.
HB 53 APPROP: OPERATING BUDGET; CAP; SUPP
HB 53 was HEARD and HELD in committee for further
consideration.
HB 55 APPROP: MENTAL HEALTH BUDGET
HB 55 was HEARD and HELD in committee for further
consideration.
Co-Chair Foster reviewed the meeting agenda.
2:16:49 PM
HOUSE BILL NO. 49
"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."
2:17:12 PM
Representative Hannan, as the sponsor of HB 49, introduced
the bill.
2:19:32 PM
HUNTER MEACHUM, STAFF, REPRESENTATIVE SARA HANNAN,
introduced the PowerPoint presentation "House Bill 49;
Protecting Alaska's Youth from Lifelong Nicotine Addiction"
dated March 27, 2025 (copy on file).
Ms. Meachum addressed slide 2, "House Bill 49":
Align state law with federal law in raising the
minimum age to buy or possess tobacco and electronic
smoking products (ESPs) from 19 to 21.
Establish a 25 percent sales tax for ESPs.
Representative Stapp queried the current effective sales
tax rate for regular tobacco products.
Representative Hannan responded that there was not
currently a state sales tax, but rather a wholesale tax.
Representative Stapp queried the wholesale tax rate.
Ms. Meachum would need to follow up.
2:22:17 PM
BRANDON SPANOS, DEPUTY DIRECTOR, TAX DIVISION, DEPARTMENT
OF REVENUE, (via teleconference), responded that the
wholesale tax for other tobacco products was 75 percent of
the wholesale price.
Representative Stapp queried how materially different it
was from what was being proposed in the bill.
Mr. Spanos responded that it would create a retail sales
tax, which would be a different taxpayer base.
Representative Stapp asked why there would be a different
tax structure if they were to tax wholesalers on tobacco.
Ms. Meachum responded that it was the best option because
of the variety of products.
Representative Allard appreciated the bill.
2:25:52 PM
Ms. Meachum pointed to slide 3, "What are E-cigs?"
Vapes, vaporizers, Vape pens, hookah pens, electronic
cigarettes, e-cigars, e-pipes are some of the many
terms used to describe electronic nicotine delivery
systems.
These products use a battery to heat up a liquid which
creates an aerosol that is inhaled. The liquid in
these products contain nicotine as well as flavorings,
and harmful chemicals.
Representative Tomaszewski wondered whether there would be
a ban on the flavored products.
Ms. Meachum responded that it did not ban flavored
products.
Representative Tomaszewski suggested that the cigarettes
should taste bad so no one would start, and he suggested
that they should taste like vomit.
Representative Hannan shared that when she was young, it
was not uncommon for parents to make kids smoke an entire
cigarette in order for the children to be deterred from
smoking.
2:30:02 PM
Representative Stapp asked if it was legal for high school
kids to use vape products.
Representative Hannan explained that the age was 19 and
there were 19 year olds in high school.
Representative Stapp asked if it would be more or less
likely that kids would smoke cigarettes instead of vape
Representative Hannan replied that when she started
teaching, there were smoking areas for kids, and when she
left teaching 30 years later, accusing someone of smoking
was a harsh insult.
2:33:23 PM
Ms. Meachum continued on slide 4 and talked about the
marketing for e-cigarettes.
Representative Tomaszewski asked if there was any
discussion about marketing techniques that would target
kids.
Representative Hannan responded that tobacco had been
banned from TV broadcast for decades, and she could
research the advertising on e-cigarette products.
Representative Tomaszewski noted that there were 6 states
that had a ban on flavors.
2:36:37 PM
Ms. Meachum pointed to slide 5, "What e-cigs are
NOT":
Healthy... These products deliver harmful chemicals
and contain nicotine, which is highly addictive.
FDA-Approved Cessation Devices ... No e-cigarette
product has been approved by the dFDA as a smoking
cessation aid.
Ms. Meachum continued on slide 6. She stated that tobacco
use impacted memory and attention, learning, mood, and
impulse control.
Representative Galvin thanked the sponsor for taking up the
bill. She had heard that one of the vape cartridges was the
same as smoking over 200 cigarettes. She had heard that
there were students that could not stay in class for more
than 45 minutes due to their addiction. she asked what age
were kids the most vulnerable.
Ms. Meachum responded that there was a kid as young as
first grade using vape products.
2:40:43 PM
LEENA EDAIS, SELF, ANCHORAGE (via teleconference), was a
student at the University of Alaska Anchorage (UAA). She
educated students across the states about the dangers of
smoking. She remarked that children were using vape
products.
Representative Tomaszewski asked if banning flavors would
cut the use of vape products.
Ms. Edais responded that it would stop kids from starting
because there were so many flavors and kids just get
curious.
2:44:13 PM
RICK DORMER, PRESIDENT, ASSOCIATION OF ALASKA SCHOOL
PRINCIPALS, KETCHIKAN (via teleconference), thought the
vaping epidemic was out of hand, and spoke in support of
the bill. He stated that easily over half of the students
were actively vaping. He would love the idea of a tax
because there were so many kids who wanted to quit
Representative Bynum asked what kind of penalty students
would see if they were caught vaping.
Mr. Dormer responded that there was a set policy across the
district.
Representative Bynum asked if there was a similar problem
across other school districts.
Mr. Dormer responded that it was similar across many
districts.
2:50:58 PM
Representative Stapp asked if there was framework for
establishing a module within the department for collecting
a statewide sales tax on the particular item.
Mr. Spanos responded that the module would be limited, and
it could not be easily expanded in the system. He stated
that the cost of the module was $250,000
2:55:07 PM
Representative Galvin asked whether pouch tobacco products,
such as Zin were included in the bill.
Representative Hannan responded that Zin was a brand name
of an "otp", other tobacco products. She stated that it was
taxed accordingly.
Representative Allard asked if they could exempt military
people aged 18 to 21. I
Representative Hannan responded that the us military
already banned tobacco products by soldiers.
Representative Allard agreed that she wanted more revenue
for the state.
Representative Hannan mentioned marketing flavors and
looked at page 12, line 20 of the bill, which stated that a
licensed person under the section may not market an
electronic smoking product.
3:01:51 PM
Ms. Meachum responded that the tax revenue would flow into
the cessation fund and the leg could appropriate it.
Representative Allard was getting a lot of pushback from
her constituents and wondered whether there could be an
exception for military.
Representative Hannan responded no, she wanted to comply
with federal law, with the impotence was the health and
work conditions.
Co-Chair Josephson he asked if there was a sweet spot
that would move the bill forward, and he had been told that
part of the market did not even identify how many
milligrams.
Ms. Meachum responded that the FDA had authorized 34 e-
cigarette products, but it did not mean they were healthy.
She stated that 50mg was about what was common and the 60mg
to 70mg number was a higher nicotine concentration and the
concentration had gone up over time.
Co-Chair Josephson felt that there was a split in the
industry trying to participate in discussions. He shared
that the industry was worried that if the bill aimed to
disallow a mg content under 50, then smokers would simply
move to the other side.
3:12:41 PM
Representative Tomaszewski asked about online sales.
Representative Hannan responded that starting on page 8,
beginning on line 18, it was the shipping purchase that
depended on the tax.
Representative Tomaszewski asked about whether it would be
captured in the tax.
Representative Hannan did not now whether it would be
captured in the tax or not capture in the tax.
Representative Tomaszewski queried the limit.
Representative Hannan replied that the tax required at or
above 200.
3:18:34 PM
Representative Stapp asked about the military and the
enforcement within the organization.
Representative Hannan deferred to Ms. Meade.
NANCY MEADE, GENERAL COUNSEL, ALASKA COURT SYSTEM,
responded that the violation of smoking mentioned on page 3
was something that law enforcement officers could write a
ticket.
Representative Stapp assumed that the law was still
applicable on a military base.
Ms. Meade responded in the affirmative.
Representative Stapp asked whether there was an exemption
for products sold at a facility operated by one of the
uniformed services in the US.
Representative Hannan responded that military base sales
were already exempt.
3:24:22 PM
Representative Stapp asked whether it was all sales in
general, not just vaping. He was worried about imposing a
tax on a product that did not exist.
Representative Hannan asked if Mr. Spanos could be
consulted on the question.
Mr. Spanos responded that the analysis was simple because
it did not have data on electronic smoking products.
Representative Stapp he understood that vape sales were not
tracked in Alaska
Representative Bynum he was struggling to understand how it
would be enforced, and asked whether possession of the
product was a potential crime.
Representative Hannan responded that it was already illegal
for an 18 year old to possess tobacco.
3:34:03 PM
SYLVAN ROBB, DIRECTOR, DIVISION OF CORPORATIONS, BUSINESS
AND PROFESSIONAL LICENSING, DEPARTMENT OF COMMERCE,
COMMUNITY AND ECONOMIC DEVELOPMENT, reviewed DCCED fiscal
note omb 2360, control code JpxDN
Ms. Meade reviewed the fiscal note from the courts.
3:37:14 PM
HEATHER ROGERS, ADMIN OPERATIONS MANAGER, DIVISION OF
PUBLIC HEALTH, DEPARTMENT OF HEALTH, ANCHORAGE (via
teleconference), reviewed the fiscal note OMB 2818, control
poYjT, zero fiscal impact note.
AMBER LEBLANC, ADMIN SERVICES DIRECTOR, DEPARTMENT OF LAW,
ANCHORAGE (via teleconference), stated that there was no
fiscal impact on the department.
JONATHON TORRES, DEPUTY DIRECTOR, OFFICE OF PUBLIC
ADVOCACY, ANCHORAGE (via teleconference), referenced the
zero fiscal note.
3:40:28 PM
RENEE MCFARLAND, PUBLIC DEFENDER AGENCY, ANCHORAGE (via
teleconference), discussed the fiscal note OMB 1631 control
lbLgM.
Mr. Spanos reviewed DOR fiscal note RFVpO, OMB 2476.
3:44:36 PM
Representative Stapp asked about additional other fiscal
notes with other ranges.
Mr. Spanos responded that they had not determined whether
they would use the language or not.
HB 49 was HEARD and HELD in committee for further
consideration.
3:47:36 PM
AT EASE
4:02:58 PM
RECONVENED
HOUSE BILL NO. 23
"An Act relating to the definition of 'employer' for
the purposes of the State Commission for Human
Rights."
Co-Chair Josephson introduced the legislation.
4:07:29 PM
Representative Tomaszewski asked about the cooperation from
minority members.
Representative Bynum stressed that there were some members
of the minority that had input
Co-Chair Josephson explained that they were separate bills
that were filed, and he was talking about completely
separate issue. He noted that because the human rights
commission was quasi-judicial, there was a legal opinion
that governor appointed board members could only be removed
for cause.
4:14:17 PM
KEN ALPER, STAFF, REPRESENTATIVE ANDY JOSEPHSON, introduced
the PowerPoint presentation "HB 23: Applicability of Human
Rights Commission" dated March 27, 2025 (copy on file). He
continued to slide 2, "Alaska State Commission on Human
Rights":
• State agency that enforces the Alaska civil rights
law in AS 18.80
• Seven commissioners appointed by the Governor and
confirmed by
the Legislature
• Small staff and office in Anchorage
• Statewide powers to accept and investigate
complaints from
individuals across all regions of the state
Mission Statement:
To eliminate and prevent discrimination for all
Alaskans
In Alaska, it is illegal to discriminate in:
• Employment
• Places of Public Accommodation
• Sale or Rental of Real Property
• Financing and Credit
• Practices by the State or its Political
Subdivisions
Because of:
• Race
• Color
• Religion
• Sex
• National Origin
• Disability
Mr. Alper addressed slide 3, "Background: Current
Jurisdiction":
.notdef U.S. Equal Employment Opportunity Commission (EEOC)
protects non-profit employees from discrimination if
the employer has at least 15 employees
.notdef Municipal commissions, like the Anchorage Equal
Rights
Commission (AERC) and the Juneau Human Rights
Commission (JHRC), cover non-profit employees in those
communities
.notdef The State commission has no jurisdiction to accept
or pursue discrimination cases brought to them by non-
profit employees
.notdef (This is due to language in the definition of
"employer" in the ASHRC statutes, AS 18.80.300(5))
Mr. Alper highlighted slide 4, "Nonprofit Workforce and
Coverage":
• 5,688 non-profits in Alaska
• 35,302 direct jobs, about 12 percent of state
workforce
4:18:18 PM
Representative Tomaszewski asked about small staff in
Anchorage.
Mr. Alper deferred the question.
Mr. Alper looked at slide 5, "ASCHR: Annual Report":
For at least the past five years, the Alaska State
Commission for Human Rights (ASCHR) has stated that
one of their main legislative priorities is to:
"Work with the State Legislature to add non-
profits to ASCHR's jurisdiction in an effort to
include protections for 44,000 currently
unprotected workers"
Mr. Alper discussed slide 6, "What does the bill do?"
1. Changes definition of "employer" to include non-
profit organizations
.notdef The change in HB23 only applies to the State
Commission for Human Rights [AS 18.80.300(5)]
.notdef Retains exceptions for social and fraternal
organizations, and employees of religious
organizations hired for a religious purpose
2. Change name of the commission to the Alaska State
Commission for Civil Rights
3. New statute saying that the governor can only
remove a commissioner for cause (incompetence,
neglect, misconduct,
etc.)
4. Change the timing of their annual report to
November 15, and allow for it to be provided
electronically
4:21:37 PM
ROB CORBISIER, EXECUTIVE DIRECTOR, ALASKA STATE COMMISSION
ON HUMAN RIGHTS, appreciated Representative Prax for a past
bill, and the legislation ended up getting more traction
than previously thought. He explained that there would need
to be a ministerial exception in the job description. He
stated that statute required giving the legislature the
annual report, however the commission stopped trying to do
it in the 1980s.
4:30:58 PM
Mr. Corbisier gave a further history of the Human Rights
Commission.
Representative Galvin shared that the definition had peaked
her curiosity, and asked about megachurches.
4:34:50 PM
Mr. Corbisier responded that they would be excluded in
their entirety as a church.
Representative Galvin understood that they were working to
be more inclusive of, with the exception of churches,
nonprofit workers.
Co-Chair Josephson replied that it carved out that the
employer be a religious corporation and the employee
required specification.
Representative Galvin thought some might be related to the
constitution, and she asked about the governor only
removing for cause. She was not familiar with how the
commissions worked, and she was trying to understand the
intent
Co-Chair Josephson there was a body of law about just cause
or for cause.
4:40:26 PM
Representative Bynum asked about the removal provision.
Co-Chair Josephson recalled that when Dunleavy came into
office, he combed through Title 8 to see how long terms
could continue.
Representative Bynum could ask for additional info offline.
Representative Bynum wondered if someone from the public
wanted a copy of the report, would it be available to them.
Mr. Corbisier responded "probably."
4:47:05 PM
Representative Bynum explained that it did not revolve
around whether someone was transgender or not.
Mr. Corbisier responded that he had not considered it a
statutory carveout
Co-Chair Josephson recalled that there was a case from
about the boy scouts banning girls.
Representative Hannan stressed that she wanted the issues
staggered, and a strong separation.
4:52:32 PM
Mr. Corbisier responded that it was currently staggered in
the commission.
Representative Tomaszewski was going to ask about the
terms, and whether they were paid.
Mr. Corbisier responded that they were unpaid volunteers.
Representative Tomaszewski wondered whether the
commissioners discriminated against based on location
Mr. Corbisier responded that he did not speak to who the
governor decided to make the boss.
4:57:00 PM
Co-Chair Josephson queried the impact of the bill.
Mr. Corbisier responded that they estimated it would be
between 3 to 60 non- profit cases.
Representative Tomaszewski asked about the language used in
the investigations and the number of complaints.
Mr. Corbisier responded that there were 120-ish complaints,
and the commission asked the same types of questions during
the investigation.
5:01:48 PM
Representative Bynum asked about the anecdotal impact.
Mr. Corbisier responded that the government as an employer
operated differently than for profits, but the civil rights
act applied to all employers the same.
Representative Bynum understood that the current statute
defined an employer, and asked whether there was a data-
driven approach.
5:05:59 PM
Mr. Corbisier responded that there had not been a data-
driven approach to it.
Co-Chair Josephson stated that the commission supported the
expansion, and they were ready to change the timeline of
the report.
Mr. Corbisier reviewed the fiscal note.
5:08:37 PM
AT EASE
5:08:46 PM
RECONVENED
Co-Chair Josephson took over chairing the meeting. The
budget bills would not be heard.
HB 23 was HEARD and HELD in committee for further
consideration.
HB 53 was SCHEDULED but not HEARD.
HB 55 was SCHEDULED but not HEARD.
ADJOURNMENT
5:09:16 PM
The meeting was adjourned at 5:09 p.m.