Legislature(2025 - 2026)SENATE FINANCE 532
03/06/2025 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB80 | |
| SB109 | |
| SB73 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 80 | TELECONFERENCED | |
| *+ | SB 109 | TELECONFERENCED | |
| + | SB 73 | TELECONFERENCED | |
| *+ | SB 113 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
March 6, 2025
9:01 a.m.
9:01:51 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:01 a.m.
MEMBERS PRESENT
Senator Bert Stedman, Co-Chair
Senator Mike Cronk
Senator James Kaufman
Senator Jesse Kiehl
Senator Kelly Merrick
MEMBERS ABSENT
Senator Lyman Hoffman, Co-Chair
Senator Donny Olson, Co-Chair
ALSO PRESENT
Senator Jesse Bjorkman, Sponsor; Liz Harpold, Staff,
Senator Donny Olson; Pete Ecklund, Staff, Senator Lyman
Hoffman; Senator Matt Claman, Sponsor; Carly Dennis, Staff
to Senator Claman.
PRESENT VIA TELECONFERENCE
Cabot Pitts, Chair, Alaska Professional Hunters
Association, Wasilla; Lacy Wilcox, Vice President, Alaska
Marijuana Industry Association, Juneau; Megan Wallace,
Chief Counsel, Legislative Legal Services; Brandon Spanos,
Acting Tax Director, Department of Revenue; Jana Weltzin,
Co-Chair, Governor's Advisory Task Force on Marijuana;
Jessica Rostad, Co-Owner and Chief Executive Officer, Big
Rays, Anchorage; Bailey Stuart, Chair, Marijuana Control
Board, Wasilla; Lacy Wilcox, Vice President, Alaska
Marijuana Industry Association, Juneau; Lloyd Stiassny,
Owner, Egan Management Group, Anchorage.
SUMMARY
SB 73 MARIJUANA: TAX/REGISTRATION; INCOME TAX
SB 73 was HEARD and HELD in committee for further
consideration.
SB 80 EXTEND BOARDS
SB 80 was HEARD and HELD in committee for further
consideration.
SB 109 PERMANENT FUND DIVIDEND; POMV SPLIT
SB 109 was HEARD and HELD in committee for
further consideration.
SB 113 APPORTION TAXABLE INCOME;DIGITAL BUSINESS
SB 113 was SCHEDULED but not HEARD.
Co-Chair Stedman discussed the agenda. He noted that the
committee would address SB 80, and some of the
consideration would be related to "clean-up." //
SENATE BILL NO. 80
"An Act extending the termination date of the Big Game
Commercial Services Board; extending the termination
date of the Board of Massage Therapists; extending the
termination date of the Marijuana Control Board; and
providing for an effective date."
9:04:24 AM
Co-Chair Stedman relayed that it was the first hearing for
SB 80. The committee would hear the bill sponsor, invited
testimony, and public testimony.
9:05:02 AM
SENATOR JESSE BJORKMAN, SPONSOR, relayed that SB 80
extended the sunset dates of three boards: The Board of
Massage Therapists, The Big Game Commercial Services Board,
and The Marijuana Control Board. The bill backdates the
board extensions from SB 189, passed in the previous
session, and provided for an immediate effective date.
Co-Chair Stedman asked for more detail on the Big Game
Commercial Services Board.
Senator Bjorkman explained that the Big Game Commercial
Services Board was composed of 9 members who prepared and
issued guide licenses, adopted regulations, and assisted
the Department of Public Safety and the Department of
Commerce and Community Development in big game
investigations. The board provided guides with guidance,
and a voice, in regulating their profession.
Co-Chair Stedman opened invited and public testimony.
9:07:29 AM
CABOT PITTS, CHAIR, ALASKA PROFESSIONAL HUNTERS
ASSOCIATION, WASILLA (via teleconference), testified in
support of the legislation. He asserted that the board was
necessary for the long-term health of the guiding industry
in Alaska. He believed that it was in the best interest of
the state and the public to have well qualified hunting
guides and the board maintained that integrity. He said
that if the board were to sunset, oral testing would not be
possible and licensing standards would suffer. He stated
that the apprenticeship process of guide licensing was
particularly attractive to those in rural areas, and the
method of training guides through culminated in written
testing and oral boards, which were only possible with the
licensing board. He spoke to the board's previous debt,
which was zeroed out by licensing fees and was now in the
black.
9:09:32 AM
AT EASE
9:09:49 AM
RECONVENED
9:11:32 AM
LACY WILCOX, VICE PRESIDENT, ALASKA MARIJUANA INDUSTRY
ASSOCIATION, JUNEAU (via teleconference),
9:11:10 AM
Co-Chair Stedman CLOSED public testimony.
9:12:00 AM
AT EASE
9:12:30 AM
RECONVENED
Senator Merrick MOVED to ADOPT proposed committee
substitute for SB 80, Work Draft 34-LS0416\N (Nauman,
2/17/25). There being NO OBJECTION, it was so ordered.
9:13:05 AM
LIZ HARPOLD, STAFF, SENATOR DONNY OLSON, addressed the
Committee Substitute (CS). She explained that the changes
from Version A to Version N:
Title: Adds the Alaska Commission on Aging
Sections 5 and 6: Extends the termination date for the
Alaska Commission on Aging from 2024 to 2032
Sections 7 - 11: Previous sections 5 - 9, renumbered
Co-Chair Stedman announced that amendments to the bill were
due the following day.
SB 80 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 109
"An Act relating to the Alaska permanent fund;
relating to income of the Alaska permanent fund;
relating to the amount available for appropriation and
appropriations from the earnings reserve account;
relating to the permanent fund dividend; and providing
for an effective date."
9:14:24 AM
Co-Chair Stedman relayed that it was the first hearing on
SB 109.
9:14:59 AM
PETE ECKLUND, STAFF, SENATOR LYMAN HOFFMAN, addressed SB
109 and read from the Sponsor Statement (copy on file):
Senate Bill 109 continues the discussion of a long-
term sustainable fiscal solution for the State of
Alaska, and how the annual Percent of Market Value
(POMV) from the Permanent Fund plays a role in the
State's fiscal stability.
SB 109 establishes a split for the annual POMV draw,
with 75% of the draw remaining in the general fund and
25% appropriated to pay Permanent Fund Dividends
(PFDs).
The Permanent Fund was established by voters in 1976
to set aside a portion of annual oil royalties for a
time when yearly oil revenue would no longer be
sufficient to cover the State's needs.
In 2018, the legislature and governor acknowledged
that time had come, and Senate Bill 26 became law,
establishing the POMV formula for using Permanent Fund
earnings for State expenses, including the PFD.
However, Senate Bill 26 did not update the 1980s
dividend formula. As we have seen for many years, the
1980s PFD formula has not been fiscally attainable.
Since passage of SB 26, the dividend has fluctuated
from between 22% to 50% of the POMV payout. Often the
amount of the PFD is not determined until late in the
legislative session. The uncertainty surrounding
dividends has further complicated overall budget
decisions and left many in the public frustrated.
SB 26 was passed in part to stabilize the State's
revenue and budgeting. Having an outdated dividend
statute in place that is fiscally unattainable has the
opposite affect and contributes to fiscal and public
confusion.
SB 109 proposes a dividend based on a percentage of
the POMV payout, potentially adding stability to both
the budget process and the dividend.
To fully realize fiscal stability, decisions regarding
the level of State services and revenue also need to
be considered.
9:17:28 AM
Co-Chair Stedman asked Ms. Wallace to guide the committee
through the difference between may and shall in the
bill.
9:17:50 AM
MEGAN WALLACE, CHIEF COUNSEL, LEGISLATIVE LEGAL SERVICES
(via teleconference), addressed Co-Chair Stedman's
question. She addressed the wordage on page 2, line 14. The
Alaska Supreme Court held in Wielechowski v. State that
despite the seemingly mandatory statutory language (AS
37.05.145(b), the use of the permanent fund income in the
earnings reserve account was subject to normal
appropriation and veto budgetary procedures. This meant
that the legislature retained the power to appropriate from
the earnings reserve, each year, the amount it determined
appropriate for public purposes. She said that that the
legislature could decide the appropriate amount on an
annual basis.
9:19:53 AM
Senator Kiehl asked about the difference in how the
permanent fund was invested 40 years ago versus the current
investment process.
Mr. Ecklund relayed that in the early years of the
Permanent Fund, the investments were limited to low-risk
investments. He said that as time had passed the statute
had been modified to allow for investing in an array of
investments and risk types.
Senator Kiehl understood that the current practice involved
the fund buying into ownership of a company or huge real
estate parcel, and only seeing a return on investment once
the company or property sold. asked whether the current
practice had led to spikes or drops in the dividend.
Mr. Ecklund thought Senator Kiehl was referring to
statutory net income and acknowledged that there had been
spikes due to the timing of going into, or out of,
investments that had affected the statutory net income that
went into the calculation of the current dividend statute.
Senator Kiehl expressed concern with the practice. He noted
that currently APFC was able to make the best investments
for the state. He thought that the practice skewed
investment choices. He asked if the change in formula would
affect the way the corporation invested the fund.
Mr. Ecklund relayed that the POMV split proposed in the
bill would not have an impact on the dividend formula
contemplated in the legislation.
Senator Kiehl appreciated that element of the legislation.
9:23:27 AM
Co-Chair Stedman commented that there was another piece to
the bill. Over the previous few years, the trustees have
considered an endowment concept to address the issues
raised by Senator Kiehl.
9:23:43 AM
Senator Cronk appreciated the legal opinion and believed it
added clarity for the public.
Mr. Ecklund recounted that the first dividend checks in
1982 were transferred according to statute, however at the
time there had been an attorney general opinion that stated
that the dividend should be appropriated like all other
appropriations.
Co-Chair Stedman relayed that the legislature did not
"steal" but rather it was the appropriating body, which
followed statutes and the constitution. He noted that the
state constitution trumped state statutes. He added that
the operating budget has a one-year lifetime and that
during that time, statutes were sometimes modified to keep
in line with the constitution.
9:25:54 AM
Senator Cronk thought hopefully the bill would include an
education process for Alaskans to learn more about the
process.
Co-Chair Stedman added that there were times in which one
statute collided with another. He used the example of the
statutory dividend versus the 5 percent payout.
SB 109 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 73
"An Act relating to the registration of marijuana
establishments; relating to a tax exemption for
qualified small businesses; relating to marijuana
taxes; and providing for an effective date."
9:27:40 AM
Co-Chair Stedman relayed that it was the first hearing on
SB 73.
9:28:17 AM
SENATOR MATT CLAMAN, SPONSOR,
Senate Bill 73 will bring Alaska's marijuana taxes in
line with the rest of the country and provide relief
to a struggling industry.
The current marijuana excise tax places an undue
burden on an industry that is overwhelmingly comprised
of small, Alaskan-owned businesses. Alaska's marijuana
industry is currently taxed at $50 per ounce at the
wholesale level. This represents the highest effective
tax on marijuana in the country. In 2022, the Governor
convened the Advisory Task Force on Recreational
Marijuana. The first recommendation from the task
force was an adjustment to the marijuana tax
structure.
Currently, the $50 tax rate applies only to the
highest-grade product. The statute applies lower rates
to lower grades of the plant: immature or abnormal bud
is taxed at $25, and all other parts are taxed at $15.
There is currently no enforcement mechanism to
determine which tax rate applies to different parts of
the plant. As a result, marijuana tax revenue peaked
at nearly $30 million in 2022, but has declined since
then.
Senate Bill 73 eliminates the multiple tiers of
taxation and establishes a single tax rate at $12 per
ounce. This bill closes a loophole and ensures that
all product is taxed equally and fairly. It also
amends marijuana registration from annual to biennial,
aligning the marijuana industry with the standard for
other business.
Finally, Senate Bill 73 re-establishes the Alaska
Small Business C-Corporation Income Tax Exemption that
expired in 2023. This tax exemption applies to all
small businesses with less than $50 million in gross
assets.
9:31:05 AM
Senator Kaufman asked whether the proposed tax reduction
would help to move some of the market from the black market
into the legitimate market.
Senator Claman answered affirmatively. He thought that the
black market for marijuana was still strong. He did not
think there was meaningful research on the actual size, but
the statistics showed declining legitimate sales possibly
due to the black market.
9:32:11 AM
Senator Kaufman observed that illegal drugs were sometimes
contaminated with fentanyl. He thought there was a side-
benefit to legally sold marijuana would be that it is
regulated for safety.
Senator Claman largely agreed with Senator Kaufman's
thoughts.
9:33:09 AM
Senator Kiehl recalled that there was an industry task
force that recommended to move away from the excise tax,
which tended to distort markets. He asked whether there was
a reason the task force recommendation was not in the bill.
Senator Claman noted that during the previous session of
the legislature there had been efforts to include the task
force recommendations in the legislation. Part of what he
had done was to incorporate the recommendations of
industry. He said that the industry no longer supported the
sales tax and thought that it hindered industry growth.
Senator Kiehl recalled that the task force had contemplated
that at some point interstate sales would become legal. He
asked whether the state would collect excise tax on product
brought into the state.
Senator Claman did not believe so. He believed that the
change would require federal legislation. He felt such a
significant change in the landscape would warrant
legislative action.
Senator Kiehl suggested considering taxation in advance
would be prudent. He pondered the risk of the tax remaining
as an excise tax only, and as interstate sales became a
reality, Alaskan businesses could be disenfranchised.
9:37:01 AM
CARLY DENNIS, STAFF TO SENATOR CLAMAN, read from the
Sectional Analysis (copy on file):
Sections 1-6
AS 17.38.200(d), AS 17.38.210(e), AS 17.38.210(f), AS
17.38.210(h), AS 17.38.210(j), AS 17.38.320; Biennial
licensing.
Amends registration requirements from annual to
biennial renewals.
Section 7
AS 43.20.012(a); Alaska small business tax exemption.
Exempts qualified small businesses who meet the
requirements of 26 U.S.C 1202(e) from the Alaska Net
Income Tax Act.
Section 8
AS 43.20.012; Alaska small business tax exemption.
Defines "Alaska corporation," "parent-subsidiary
controlled group," "qualified small business," and
establishes that a corporation shall be determined as
a small business on the first day of the calendar
year.
Section 9
AS 43.61.010(a); Marijuana excise tax.
Lowers the marijuana excise tax rate from $50 per
ounce to $12 per ounce.
Section 10
AS 43.61.010(b); Marijuana excise tax.
Removes the ability of the department to establish a
lower tax rate for certain parts of the marijuana
plant.
Section 11
AS 43.61.010; Marijuana excise tax.
Clarifies that the tax is owed by all sales and transfers
of marijuana, regardless of the status of their
registration.
Section 12
AS 43.61.020(b); Marijuana excise tax.
Conforming change to reflect a single tax rate.
Section 13
AS 43.61.030(a); Marijuana excise tax.
Clarifies that a person who is delinquent in the
payment of the tax is subject to civil penalties under
AS 43.05.220
Section 14 Applicability. Clarifies that sections 7
and 8 apply to the tax year of a corporation beginning
on or after the effective date of this act.
Section 15 Effective Date This Act takes effect July
1, 2025.
9:39:00 AM
Co-Chair Stedman referenced page 4, line 15, and asked why
$12 had been chosen over another figure.
Ms. Dennis noted that the initial recommendation from the
task force advisory committee had been $12.50.
9:40:07 AM
BRANDON SPANOS, ACTING TAX DIRECTOR, DEPARTMENT OF REVENUE
(via teleconference), discussed the fiscal notes for the
bill. He addressed FN6, Department of Revenue, OMB
component 2476. Under current statutes, Alaska levies a tax
on marijuana sold or transferred from a marijuana
cultivation facility to a retail marijuana store or
marijuana product manufacturing facility. The tax rate is
$50 per ounce for bud/flower. The tax was created through
voter initiative in 2014. The voter initiative granted the
Department of Revenue (Department) authority to set a rate
lower than $50 per ounce for "certain parts of the
marijuana plant." The Department adopted a regulation that
set the tax as $50 per ounce for bud/flower, $25 per ounce
for immature, seedy, or failed bud/flower, $15 per ounce
for trim, and $1 per plant for clones. As mentioned in (3)
above, this bill would tax all parts of the plant at the
new rate of $12 per ounce.
Mr. Spanos explained that the tax division was looking at
ways to crack down on tax evasion in the industry.
Mr. Spanos reference page 3 of the bill, which broke down
the three funds that the taxes were applied to: Recidivism
Fund (50 percent), Marijuana Education and Treatment
Fund(25 percent), and the Unrestricted General Fund(25
percent). The table on page 3 of the note offered a
breakdown of changes in revenue for each fund.
9:44:06 AM
Mr. Spanos noted that after the spring forecast, the
department would be updating all the fiscal noted connected
to the legislation.
9:44:39 AM
Co-Chair Stedman asked whether the department had a
position on the decrease in the tax.
Mr. Spanos relayed that the tax division rarely had an
opinion on what a tax should be and would administer
whatever the legislature deemed appropriate. He relayed
that from a tax administration perspective, it was simpler
to have one tax rate on all parts of the plant, rather than
individual parts.
9:45:24 AM
Senator Kiehl was note familiar with the C-corporation
provision. He asked about an expired provision.
Mr. Spanos said that the small corporation exemption was
created in 2012 as an endeavor to incentivize investment in
the businesses. The only new industry to take advantage of
the exception had been the marijuana industry. If one
incorporated as an S-Corporation, they would not owe income
tax. The tax on the C-Corporation tax at the federal level
was 20 percent, which some businesses had taken advantage
of. He spoke of exemptions for cultivators and noted that
farming was not considered a small-time corporation.
9:48:56 AM
Senator Kiehl said he would continue to research the
matter.
9:49:15 AM
JANA WELTZIN, CO-CHAIR, GOVERNOR'S ADVISORY TASK FORCE ON
MARIJUANA (via teleconference), spoke in support of the
legislation. She addressed Senator Kiehl's question
regarding C-corporations. She stated that many marijuana
businesses elected to be C-Corporations, not only because
of the 21 percent tax, but because of the IRS Code 280E.
She shared that 280E was an IRS section code that stated
that those engaged in the distribution of a Schedule 1
illegal substance could not deduct for any business expense
except for the drug itself. She relayed that many marijuana
retailers had elected to be a C-Corporation to protect
their shareholders assets from federal government audits.
9:52:54 AM
Ms. Weltzin continued that marijuana retailers did not have
access to traditional financing from banks and used their
homes and retirement to start their businesses. She noted
that retail product was tested for safety. She said that
the market share was shrinking and could be aided by tax
relief.
9:53:00 AM
Ms. Weltzin spoke of the sales tax versus the $12 tax in
the bill.
9:53:07 AM
Ms. Weltzin said that the industry should mirror the liquor
model and use distributors licensing. She stressed that the
issue at hand was to stop the illicit and intoxicating hemp
markets, which was unregulated, untaxed, and sold to people
under 21 years of age.
9:54:38 AM
JESSICA ROSTAD, CO-OWNER AND CHIEF EXECUTIVE OFFICER, BIG
RAYS, ANCHORAGE (via teleconference), testified in support
of the legislation. She said that her business had been
operating as a C-Corporation. She shared that the
expiration of the small business tax exemption had
negatively affected her business. She said that the
exemption had allowed her to put over $2 million into her
business.
9:56:51 AM
BAILEY STUART, CHAIR, MARIJUANA CONTROL BOARD, WASILLA (via
teleconference), read from written testimony.
Good morning, and thank you, Chair Stedman, and members of
the Senate Finance Committee.
For the record, my name is Bailey Stuart, I serve as the
Chair of the Marijuana Control Board, appointed to the
industry seat.
I was among the first to open a licensed marijuana business
in Alaska. Having witnessed the industry's inception, its
development, and its current challenges, I can speak
firsthand to the realities of this market.
At our February meeting, the Marijuana Control Board voted
in support of Senate Bill 73. This bill provides critical
tax relief for both the industry and the regulatory
division, particularly regarding business renewals.
Additionally, it extends the much-needed C-corporation tax
exemption, offering financial relief not only to marijuana
businesses struggling to remain viable but also to many
other small businesses across Alaska.
During that same meeting, the Board heard extensive and
compelling public testimony on the severe challenges facing
this industrymost notably, the burden of excessive
taxation. While the Board is actively working to address
these concerns, immediate tax relief is essential to
restoring stability.
A well-regulated, sustainable industry ensures consistent
revenue for the state. In 2021, the legal marijuana market
contributed over $30 million in tax revenue. With time and
targeted policy changes, we have the potential to surpass
that figureprovided we take the necessary steps to
eliminate the illicit and gray markets that undermine the
regulated industry. Without tax reform, legal businesses
are being forced into a race to the bottom, struggling to
compete against unregulated, untaxed actors who are
steadily eroding the integrity of this market.
The Board issues four types of licenses: retail,
manufacturing, testing, and cultivation. Among these,
cultivators bear the greatest burden, as they are
responsible for collecting and remitting the excise tax
when product is sold. This tax is due monthly, and because
most cultivators do not have access to banking services,
they must often pay this tax in cash. However, there is
only one cash collection box in the entire state of Alaska,
located in Anchorage.
This means that cultivators in Juneau, Kodiak, Nome, and
other remote locations must incur additional costs simply
to comply with tax regulations. This is just one example of
the financial and logistical challenges that these legal
businesses face under the current tax structure.
The Alaska marijuana industry is contracting at an alarming
rate, with businesses closing year after year. In 2023, the
industry lost 25 licenses, followed by 26 in 2024. So far
in 2025, the Alcohol and Marijuana Control Office (AMCO)
reports having lost 8 licenses, reflecting an accelerating
decline. At the start of the current fiscal year, there
were 480 active licenses statewide, but that number has
already dropped to 471and continues to shrink. This
decline is occurring even as the Marijuana Control Board
continues to issue new licenses throughout the year,
highlighting the unsustainable conditions businesses are
facing in the current market.
A particularly concerning indicator of the industry's
decline is that, for the first time in its history, the
most recent Board meeting had zero new applications for
cultivation licenses. Cultivation is the foundation of the
regulated supply chainwithout cultivators, the industry
cannot function. The absence of new applicants signals a
sector in crisis, where existing businesses are in survival
mode, struggling to stay afloat. This not only threatens
the stability of the industry but also eliminates a key
source of new revenue-generating businesses for the state
of Alaska.
While legal marijuana businesses continue to close, the
illicit market is thriving. In 2024, the Department of
Public Safety seized 316 pounds of illegal marijuana, a
significant increase from the 186 pounds seized in 2023.
These figures are particularly alarming because the
department does not actively investigate or prosecute
marijuana-related offensesthese seizures occurred
incidentally, not through targeted enforcement. We have not
seen illicit market activity at this level since before
legalization, underscoring the urgent need for regulatory
and tax reforms to support the legal industry and curb the
illegal market.
Compounding this issue is the gray market, which is being
driven by unregulated intoxicating hemp products that
exploit a loophole in the 2018 Farm Bill. Despite recent
regulatory changes by the Division of Agriculture, which
prohibit any amount of THC in hemp products, these items
continue to enter the Alaska marketplace through retail
stores and online sales with little to no enforcement.
The legal industry wants to contribute. They want to pay
taxes, create jobs, and support the state economy. But it
cannot do so under the weight of a tax system that is
unsustainable. Without reform, more businesses will close.
Fewer tax dollars will be collected. And the illicit market
will continue to expand.
Senate Bill 73 is a necessary step to stabilizing this
industryan industry that the state depends on for revenue,
that employs Alaskans, and that was built on the promise of
a fair and regulated marketplace.
With that, I thank you for your time and consideration. I
am happy to answer any questions.
10:00:00 AM
Ms. Stuart continued her testimony. She contended that
cultivation was the foundation of a regulated supply chain,
and the absence of new applicants reflected a crisis in the
industry. She said that regulatory and tax reforms were
necessary for the survival of the legal market.
10:01:22 AM
Ms. Stuart proposed that without reform businesses would
close. She reiterated her support of the bill.
10:02:33 AM
Co-Chair Stedman OPENED public testimony.
10:02:41 AM
LACY WILCOX, VICE PRESIDENT, ALASKA MARIJUANA INDUSTRY
ASSOCIATION, JUNEAU (via teleconference), testified in
support of the bill. She relayed that the current tax
structure was unsustainable. She thought the bill provided
a needed reduction in the excise tax. She urged the
committee to support the bill. She believed that without
the tax reduction the industry would suffer and reminded
the committee of the revenue that the industry generated
for the state.
10:04:33 AM
LLOYD STIASSNY, OWNER, EGAN MANAGEMENT GROUP, ANCHORAGE
(via teleconference), spoke in support of the bill. He
thought the industry was heavily burdened with tax at all
levels, which prohibited growth. He stressed that the bill
was vital to the long-term health of the industry. He noted
that the industry was statewide. He pondered his history
working in various areas of the state. He noted the many
sectors that the industry intersected with. He reiterated
his strong support for the legislation.
10:08:34 AM
Co-Chair Stedman CLOSED public testimony.
Co-Chair Stedman asked the bill sponsor to offer final
comments.
Senator Claman relayed that he was available after the
meeting for questions.
Senator Cronk asked about the tax rates in other states.
Senator Claman relayed that Alaska had the highest tax
rates in the country. He offered to provide more
information to the committee.
SB 73 was HEARD and HELD in committee for further
consideration.
10:09:49 AM
AT EASE
10:11:00 AM
RECONVENED
Co-Chair Stedman relayed that there was one item left on
the agenda, that the committee would move to the agenda on
the following meeting.
ADJOURNMENT
10:12:21 AM
The meeting was adjourned at 10:12 a.m.