Legislature(2025 - 2026)GRUENBERG 120
03/11/2025 03:15 PM House STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| HB91 | |
| HB30 | |
| HB119 | |
| HB43 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 91 | TELECONFERENCED | |
| += | HB 43 | TELECONFERENCED | |
| *+ | HB 104 | TELECONFERENCED | |
| += | HB 119 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 30 | TELECONFERENCED | |
HB 91-MARIJUANA: TAX/RETAIL STORES/REGISTRATION
3:50:44 PM
CHAIR CARRICK announced that the first order of business would
be HOUSE BILL NO. 91, "An Act relating to the lawful operation
of retail marijuana stores; relating to marijuana cultivation;
relating to the registration of marijuana establishments;
relating to marijuana taxes; relating to the duties of the
Department of Revenue; and providing for an effective date."
3:51:09 PM
REPRESENTATIVE VANCE moved to adopt Amendment 1 to HB 91,
labeled 34-LS0528\A.2, C. Radford, 3/5/25,. Which read as
follows:
Page 5, line 17:
Delete "a new subsection"
Insert "new subsections"
Page 5, following line 17:
Insert a new subsection to read:
"(g) The K-12 public education fund is
established in the general fund. In addition to the
accounting under (c) and (f) of this section, the
Department of Administration shall separately account
for 25 percent of the tax collected under this section
and deposit it into the K-12 public education fund.
The legislature may use the annual estimated balance
in the fund to make appropriations to the Department
of Education and Early Development for grants to
school districts for classroom resources, teacher
salaries, student support services, and educational
infrastructure improvements."
Reletter the following subsection accordingly.
CHAIR CARRICK objected for the purpose of discussion.
REPRESENTATIVE VANCE explained that Amendment 1 would place 25
percent of the tax collected under "this section" into the K-12
public education fund. She shared that although typically she
does not like to designate funds, she would like "to align this
with the public expectation."
3:52:42 PM
CHAIR CARRICK asked for confirmation that the funding pinpointed
under Amendment 1 is money that would otherwise be allocated to
the undesignated general fund (UGF), not money allotted to
address recidivism reduction or marijuana treatment.
REPRESENTATIVE VANCE confirmed that is correct.
3:53:36 PM
REPRESENTATIVE HIMSCHOOT asked if there is an added expense
associated with establishing a fund.
REPRESENTATIVE VANCE answered, "I'm under no impression that
this is a new fund."
REPRESENTATIVE HIMSCHOOT observed that the amendment specifies
"is established in the general fund".
REPRESENTATIVE VANCE said it was her intent to use a pre-
existing account and "divert it that direction."
REPRESENTATIVE HIMSCHOOT pointed to lines 12-14, as numbered in
Amendment 1, and she said it sounds like a different grant
system.
CHAIR CARRICK suggested a representative from the Department of
Revenue may be able to shed some light on the topic.
3:55:52 PM
BRANDON SPANOS, Deputy Director, Tax Division, Department of
Revenue, stated that he is not the best person to ask about
funds. He said he is familiar with funds that the department
currently deposits "the marijuana money" into. He indicated
that that is set up in statute but said he is "not familiar
enough to know if that's necessary every time." He said he does
not see a specific K-12 fund discussed in the fiscal notes. He
recommended asking the question of the Office of Management &
Budget (OMB). That said, he said there would be no additional
cost for the Tax Division to administer a new fund after the
initial cost of setting it up.
3:57:17 PM
CHAIR CARRICK said that as prime sponsor of the bill, she liked
the Amendment 1.
REPRESENTATIVE VANCE, in response to Chair Carrick, said she
thinks the key is that "the legislature may" [emphasis on "may"]
us [the 25 percent specified under Amendment 1 and it would "go
to education."
3:59:14 PM
REPRESENTATIVE HIMSCHOOT asked what might be taken away from the
Department of Health (DOH) if Amendment 1 were adopted.
REPRESENTATIVE VANCE answered that there would be no "taking
away" because the 25 percent Amendment 1 proposes to use for
education is currently going into the general fund.
4:00:30 PM
REPRESENTATIVE STORY commented that she really liked Amendment 1
but cautioned that it could make another grant program to
administer.
4:01:43 PM
REPRESENTATIVE HIMSCHOOT asked if the funding from DEED is
always called a grant.
4:02:05 PM
The committee took an at-ease from 4:02 p.m. to 4:09 p.m.
4:09:28 PM
CHAIR CARRICK moved to adopt Conceptual Amendment 1 to Amendment
1, with the following pages and lines as numbered in Amendment
1:
Page 1, line 7
Delete "The K-12 public education fund is established
in the general fund."
Page 1, line 10
Delete "K-12"
Page 1, line 10, following "fund."
Delete "The legislature may use the annual estimated
balance in the fund to make appropriations to the
Department of Education and Early Development for
grants to school districts for classroom resources,
teacher salaries, student support services, and
educational infrastructure improvements."
4:10:40 PM
CHAIR CARRICK announced, there being no objection, Conceptual
Amendment 1 to Amendment 1 was adopted.
4:10:52 PM
REPRESENTATIVE HOLLAND expressed that although he was not
opposed to Amendment 1, as amended, he has always been hesitant
to tie education funding to [sin] taxes. He said putting
education on the back of these kinds of taxes puts him in an
uneasy state. Further, he expressed concern that revenue from
the marijuana industry is decreasing. He followed that by
emphasizing his support for a focus on the issues of recidivism
and "the marijuana misuse prevention component."
4:13:11 PM
REPRESENTATIVE STORY said she understood that the bill in its
current form would drop tax [revenue] significantly and
questioned whether the general fund would be needed to make up
the lost revenue for the behavioral health treatment and
recidivism grants. She asked what the existing grants would be
losing.
4:14:16 PM
CHAIR CARRICK remarked that it is hard to anticipate potential
increase or decreases. She stated that the 6 percent has been
modeled to "neutralize" the current revenue for those programs.
She noted that other legislation could affect outcomes but
speculated there would not be a loss.
4:15:14 PM
REPRESENTATIVE MCCABE inquired whether the [marijuana] industry
had paid back the start-up money the legislature had
[designated]. If not, he stated, he does not think the
legislature should give the industry more money.
4:16:13 PM
MR. SPANOS, at the invitation of Chair Carrick, said that "this
was a voter initiative" and DOR did not have a fiscal note;
therefore, he does not know what the costs were. That said, he
reported that DOR collected the following from the Alaska
marijuana industry, 25 percent of which goes to the GF: $27.2
million in fiscal year 2024 (FY 24); $29.5 million in FY 23;
$28.6 in FY 22; and $30 million in FY 21.
4:17:58 PM
CHAIR CARRICK removed her objection to Amendment 1, as amended.
There being no further objection, Amendment 1, as amended, was
adopted.
4:18:19 PM
REPRESENTATIVE VANCE said she shares concerns of others
regarding "making the right move." She said it would be better
to collect tax "on the retail end," which is what is supported
under HB 91. She indicated that she would recommend a sunset
date to the next committee of referral to allow reconsideration
of the tax in 10 years. She said she would not object to the
bill moving forward but expressed that it needs further review.
4:20:48 PM
CHAIR CARRICK entertained a motion.
4:20:59 PM
The committee took a brief at ease at 4:21 p.m.
4:21:10 PM
REPRESENTATIVE STORY moved to report HB 191, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes and to allow Legislative Legal Services to make any
necessary conforming changes. There being no objection, CSHB
91(STA) was reported out of the House State Affairs Standing
Committee.