Legislature(2025 - 2026)SENATE FINANCE 532
04/25/2025 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB95 || SB96 || SB97 | |
| SB97 | |
| SB95 | |
| SB96 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 95 | TELECONFERENCED | |
| + | SB 96 | TELECONFERENCED | |
| + | SB 97 | TELECONFERENCED | |
SENATE BILL NO. 95
"An Act relating to the child care assistance program
and the child care grant program; and providing for an
effective date."
SENATE BILL NO. 96
"An Act relating to education tax credits for certain
payments and contributions for child care and child
care facilities; relating to the insurance tax
education credit, the income tax education credit, the
oil or gas producer education credit, the property tax
education credit, the mining business education
credit, the fisheries business education credit, and
the fisheries resource landing tax education credit;
providing for an effective date by amending the
effective date of secs. 1, 2, and 21, ch. 61, SLA
2014; and providing for an effective date."
SENATE BILL NO. 97
"An Act establishing a big game guide concession area
permit program on land in the state; relating to the
duties of the Big Game Commercial Services Board, the
Board of Game, the Department of Fish and Game, and
the Department of Natural Resources; requiring the
Board of Game to establish an initial big game guide
concession area; and providing for an effective date."
9:05:01 AM
MEGAN WALLACE, CHIEF COUNSEL, LEGISLATIVE LEGAL SERVICES
(via teleconference), affirmed that the three bills on the
agenda were related to the passage of SB 189, which had
passed the previous session and was enacted into law. She
continued that the three bills together, in addition to the
contents of SB 80, were contained in SB 189 last session.
Ms. Wallace informed that an issue had arisen under Article
2 Section 13, which required bills to be combined to a
single subject. She said that SB 189 has been challenged
under the single subject rule. She referenced a lawsuit
filed in the Juneau Superior Court (copy on file) regarding
an alleged constitutional violation, that SB 189 violated
the single-subject clause because there was no single
subject to describe the contents of the bill after the
various components had been added at the end of last
session.
Ms. Wallace relayed that the status of the pending
litigation was that the plaintiff, former Representative
David Eastman, had filed a motion for summary judgement
asking the court to invalidate the passage of SB 189. In
response the state had filed a motion for a stay of
proceedings until the end of session to allow the
legislature to pass curative legislation. The motion asked
that the court give the legislature time to hear the
alleged defects. The plaintiff had opposed the motion and
requested oral argument on the motion to stay. There had
not been a ruling on the motion to stay.
9:08:31 AM
Ms. Wallace explained that the passage of the bills,
irrespective of pending litigation, would ensure that if
the litigation was successful, once the bills were passed
there would be no impact to the law previously passed by
the legislature. If the curative legislation was not
passed, there was some risk that if the court struck down
the passage of SB 189, all provisions of the bill would be
struck down and the legislature would have to bring the
impacted items back to the table.
9:09:55 AM
Senator Kiehl expressed an appreciation for the briefing.
He relayed that his work in committee would reflect the
merits of the legislation and not the reason that the items
were back before the committee.
SENATE BILL NO. 96
"An Act relating to education tax credits for certain
payments and contributions for child care and child
care facilities; relating to the insurance tax
education credit, the income tax education credit, the
oil or gas producer education credit, the property tax
education credit, the mining business education
credit, the fisheries business education credit, and
the fisheries resource landing tax education credit;
providing for an effective date by amending the
effective date of secs. 1, 2, and 21, ch. 61, SLA
2014; and providing for an effective date."
9:59:42 AM
Co-Chair Hoffman announced that this was the first hearing
on the legislation.
10:00:01 AM
Ms. Kawasaki relayed that supporters of SB 96 described the
bill as a workforce bill that strengthened Alaskas
childcare system. The bill would incentivize the private
sector to offer childcare benefits to their employees to
fill jobs essential for economic growth. The bill would
expand childcare tax credits that would create a tax credit
for employers. The credits would be available to seven
categories to be claimed against taxes to the state, which
included: insurance premium tax, title insurance premium
tax, oil and gas production tax, oil and gas property tax,
mining license tax, fisheries business tax, and fisheries
resource landing tax. The bill encouraged employers to look
at childcare as an employee benefit and encouraged
businesses to open childcare services.
10:01:48 AM
Co-Chair Stedman asked Ms. Kawasaki to provide more detail
as to how the credits would work, and whether there were
any restrictions.
Ms. Kawasaki relayed that if one was not in one of the
aforementioned tax collection categories incentivization
would be based on whoever was currently paying taxes.
Co-Chair Stedman thought there were a lot of other
employers, outside the categories, that could use
motivation to assist with employee childcare. He stressed
that childcare assistance was a recurring concern voiced by
Alaskans.
10:03:51 AM
KATIE CAPOZZI, PRESIDENT AND CHIEF EXECUTIVE OFFICER,
ALASKA CHAMBER OF COMMERCE, introduced herself and relayed
that the mission of the Alaska Chamber of Commerce. She
testified in support of the legislation. She asserted that
the state's economy depended upon a strong stable
workforce, and the lack of affordable and accessible
childcare hindered workforce participation. She mentioned
employers struggled to recruit and retain employees due to
unaffordability and unavailability of childcare. She spoke
of the cost to the state, $165 million per year, due to
childcare related absences and employee turnover.
Ms. Capozzi referenced a public opinion survey by the
chamber the previous month and cited that 24 percent of
parents missed work due to lack of access to childcare, and
13 percent chose not to work oat all due to lack of access
or affordability. She noted that the average cost of full-
time care for an infant was $21,000 per year. SB 96 would
add an additional mechanism to the existing education tax
credits and would not increase the tax cap. It would allow
corporate income tax paying employers the opportunity to
provide childcare benefits to their employees, provide
direct support to childcare facilities, or use the credit
for onsite childcare.
Ms. Capozzi referenced Co-Chair Stedman's question related
to who could benefit from the credits. She said that if an
employer used the credit for an onsite, or near-site,
facility it could be used by other community members and
increase access to childcare for all.
Ms. Capozzi addressed a concern with the sunset provision
of 2028. The tax credits were used by the chamber to invest
in the University of Alaska and a multitude of workforce
development programs.
10:07:36 AM
Co-Chair Stedman mentioned the oil and gas severance tax.
He asked how the tax worked for support companies that
employed truck drivers, construction workers. He asked
whether those satellite companies, who supported the work
of the oil and gas industry, would qualify for the credit.
Ms. Capozzi relayed that if they paid corporate income tax,
they would qualify for the credit.
Co-Chair Hoffman noted that a representative from the
Department of Revenue was available for questions.
Co-Chair Stedman wanted to hear from the department. He
worried that those support companies might be excluded from
the credits.
10:08:54 AM
BRANDON SPANOS, DEPUTY DIRECTOR, TAX DIVISION, DEPARTMENT
OF REVENUE (via teleconference), addressed whether a
trucking company would be subject to the tax credits, and
relayed that it would depend on how the company was
structured and whether they paid one of the taxes that
could claim the credit.
Co-Chair Stedman thought most of the support companies
would not qualify for the credits because they were not C-
Corps. He asked whether the processors and the fishermen
would both benefit from the landing tax.
Mr. Spanos relayed that the taxes applied to the
processers.
Co-Chair Stedman asked for further clarification.
Mr. Spanos relayed that the Fishing Business Tax was by the
fishing processing entity. The Fishing Landing Tax was paid
by the exporter.
Co-Chair Stedman asked whether fishermen would not qualify.
Mr. Spanos relayed that fishermen did not pay the tax.
Co-Chair Hoffman relayed that there were other people from
the administration available for questions.
10:12:34 AM
Co-Chair Hoffman OPENED public testimony.
10:12:52 AM
STEPHANIE BERGLUND, CHIEF EXECUTIVE OFFICER, THREAD ALASKA,
ANCHORAGE (via teleconference), spoke in support of the
bill.
10:16:16 AM
Co-Chair Hoffman CLOSED public testimony.
10:16:32 AM
Senator Kiehl reviewed three fiscal notes. He addressed FN
1, from Department of Labor and Workforce Development, OMB
component 336. The note contained zero fiscal impact.
Senator Kiehl addressed FN 2, from the Department of
Revenue, OMB component 2476. The note reflected zero cost
and indeterminate incr4ease in revenue in FY29 and FY29.
Senator Kiehl addressed FN 3, from the Department of
Community, Commerce, and Economic Development, OMB
component 354. The note reflected zero fiscal impact.
Co-Chair Hoffman relayed that the three fiscal notes would
be considered by the Conference Committee on the Operating
and Capital Budgets.
SB 96 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 97 RHAK Letter SB 97 Senate Finance Committee.pdf |
SFIN 4/25/2025 9:00:00 AM |
SB 97 |
| SB 95 Supporting Documents- Historic Document Packet.pdf |
SFIN 4/25/2025 9:00:00 AM SHSS 3/25/2025 3:30:00 PM |
SB 95 |
| SB 95 Sectional Analysis 3.25.25.pdf |
SFIN 4/25/2025 9:00:00 AM SHSS 3/25/2025 3:30:00 PM |
SB 95 |
| SB 95 SB 96 SB 97 Motion for Stay Oppn Reply.pdf |
SFIN 4/25/2025 9:00:00 AM |
SB 95 SB 96 SB 97 |
| SB 95 SB 96 SB 97 Motion for Summary Judgment.pdf |
SFIN 4/25/2025 9:00:00 AM |
SB 95 SB 96 SB 97 |
| SB96 Sectional Analysis ver A.pdf |
SFIN 4/25/2025 9:00:00 AM SL&C 3/14/2025 1:30:00 PM |
SB 96 |
| SB96 Supporting Documents-Historic Document Packet.pdf |
SFIN 4/25/2025 9:00:00 AM SL&C 3/14/2025 1:30:00 PM |
SB 96 |
| SB 97 Combined Historical Documents Provided by (S)RES 2.26.25.pdf |
SFIN 4/25/2025 9:00:00 AM SRES 3/10/2025 3:30:00 PM |
SB 97 |
| SB 97 Comments Resident Hunters of Alaska.pdf |
SFIN 4/25/2025 9:00:00 AM SRES 3/10/2025 3:30:00 PM |
SB 97 |
| SB 97 Committee Sponsor Statement .pdf |
SFIN 4/25/2025 9:00:00 AM |
SB 97 |
| SB 97 Committee Sectional Anlysis.pdf |
SFIN 4/25/2025 9:00:00 AM SRES 3/10/2025 3:30:00 PM |
SB 97 |
| Explanation of Changes SB 97-SSSB253.pdf |
SFIN 4/25/2025 9:00:00 AM SRES 3/10/2025 3:30:00 PM |
SB 97 SB 253 |
| SB 97 Supporting Document SCI AK 4.18.25.pdf |
SFIN 4/25/2025 9:00:00 AM |
SB 97 |
| SB 97 Public Testimony Allmeroth.pdf |
SFIN 4/25/2025 9:00:00 AM |
SB 97 |