Legislature(2025 - 2026)BUTROVICH 205
04/11/2025 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SB114 | |
| SB130 | |
| SB135 | |
| Confirmation Hearing(s): Big Game Commercial Services Board | |
| SB128 | |
| SB139 | |
| SJR19 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 128 | TELECONFERENCED | |
| *+ | SB 139 | TELECONFERENCED | |
| *+ | SJR 19 | TELECONFERENCED | |
| += | SB 114 | TELECONFERENCED | |
| += | SB 130 | TELECONFERENCED | |
| += | SB 135 | TELECONFERENCED | |
SB 135-REFUND OF FISH BUSINESS TAX TO MUNIS
3:38:08 PM
CHAIR GIESSEL announced the consideration of SENATE BILL NO. 135
"An Act relating to the sharing of tax revenue from the
fisheries business tax and fishery resource landing tax with
municipalities; relating to municipal reports on the shared tax
revenue; and providing for an effective date."
3:38:25 PM
CHAIR GIESSEL solicited a motion.
3:38:33 PM
SENATOR HUGHES moved to adopt Amendment 1, work order 34-
LS0768\A.1.
34-LS0768\A.1
Bullard
4/10/25
AMENDMENT 1
OFFERED IN THE SENATE BY SENATOR HUGHES
TO: SB 135
Page 4, following line 9:
Insert a new bill section to read:
"* Sec. 6. AS 43.75.130 is amended by adding a new
subsection to read:
(i) A municipality that receives a payment under
this section shall use 10 percent of the funds
received under this section to support or enhance
commercial fishing."
Renumber the following bill sections accordingly.
Page 4, line 22:
Delete "sec. 6"
Insert "sec. 7"
Page 5, line 25:
Delete "sec. 9"
Insert "sec. 10"
Page 7, line 9:
Delete "sec. 11"
Insert "sec. 12"
Page 8, line 19:
Delete "sec. 13"
Insert "sec. 14"
Page 8, line 25:
Delete "a new subsection"
Insert "new subsections"
Page 8, following line 31:
Insert new material to read:
"(g) A municipality that receives a payment
under this section shall use 10 percent of the funds
received under this section to support or enhance
commercial fishing.
* Sec. 17. AS 43.75.130(i) and AS 43.77.060(g) are
repealed."
Renumber the following bill sections accordingly.
Page 9, line 5:
Delete "Sections 8 and 15"
Insert "Sections 9 and 16"
Page 9, line 6:
Delete "7, 10, 12, and 14"
Insert "8, 11, 13, 15, and 17"
Page 9, line 7:
Delete "secs. 17 and 18"
Insert "secs. 19 and 20"
3:38:36 PM
CHAIR GIESSEL objected for purposes of discussion.
3:38:39 PM
SENATOR HUGHES acknowledged previous testimony from Alaska
Marine Lines (AML) that requested freedom for communities to use
the tax collected as they see fit. She said that community
revenue sharing addresses this. She pointed out that SB 135 was
brought forward by the Seafood Industry Task Force to help the
industry. She opined that it is important to ensure those funds
are used to benefit the industry. She explained that Amendment 1
would require that 10 percent of the funds (rather than the full
60 percent the communities receive) be used on projects that
directly benefit the seafood industry. She stated that Amendment
1 does not include an additional reporting requirement. She
explained that she attempted to keep the language broad enough
to allow for general application by inland communities (e.g. the
funds could be used for a road to the airport).
SENATOR HUGHES reiterated that Amendment 1 is intended to ensure
that the funds received from the tax credit are used on projects
directly related to the seafood industry. She said that the
fishing industry requested SB 135 to increase community support
for the industry. She opined that it is important to honor that
request. She pointed out that the commercial fishing industry
faces seasonal uncertainties; therefore, community support for
the industry is important. She recalled that the tax credit
distribution was previously 10 percent to communities and 90
percent to the State of Alaska. She indicated that the
distribution later changed to a 50/50 split. SB 135 would adjust
this even further, giving 60 percent to communities and 40
percent to the state. She acknowledged that the State of Alaska
is experiencing fiscal strain; however, she indicated that
supporting the seafood industry is a positive investment.
3:40:47 PM
SENATOR DUNBAR expressed a willingness to support Amendment 1.
He recalled his experience growing up around commercial
fishermen in Cordova and surmised that they would encourage him
to support this amendment. He directed attention to the phrase,
"to support or enhance commercial fishing" and stated that this
language offers a broad interpretation. He offered an example to
illustrate how the fishing industry benefits from infrastructure
that may seem unrelated. He expressed hope that Amendment 1
would be interpreted broadly and that this would give
communities flexibility. He pointed out that the amendment
applies to ten percent of the 60 percent communities would
receive, which is a relatively small amount. He stated that, for
those reasons, he would support Amendment 1. He added that he
would offer two amendments that may address the concerns of AML.
3:42:47 PM
CHAIR GIESSEL invited the sponsor of SB 135 to comment on
Amendment 1.
3:42:56 PM
TIM LAMKIN, Staff, Senator Gary Stevens, Alaska State
Legislature, Juneau, Alaska, said the sponsor does not object to
Amendment 1 or to any forthcoming amendments.
3:43:09 PM
CHAIR GIESSEL removed her objection. She found no further
objection and [Amendment 1] was adopted.
3:43:18 PM
CHAIR GIESSEL solicited a motion.
3:43:20 PM
SENATOR DUNBAR moved to adopt [Amendment 2], work order 34-
LS0768\A.2.
34-LS0768\A.2
Nauman/Bullard
4/10/25
AMENDMENT 2
OFFERED IN THE SENATE BY SENATOR DUNBAR
TO: SB 135
Page 1, line 9, following "facilities":
Insert ", if the municipality operates harbor
facilities"
Page 5, line 5, following "AS 43.75.130 - 43.75.137":
Insert ", if the municipality operates a harbor"
Page 8, line 30, following "revenue":
Insert ", if the municipality operates a harbor"
3:43:26 PM
CHAIR GIESSEL objected for purposes of discussion.
3:43:28 PM
SENATOR DUNBAR said that Amendment 2 is in response to concerns
brought forward by AML relating to communities that receive the
tax credit but do not have harbor facilities. He stated that
this amendment would add language to specify the intent for the
funds if a community has harbor facilities. If the community
does not have harbor facilities, the funds can be used in other
ways.
3:44:07 PM
CHAIR GIESSEL removed her objection; she found no further
objection and [Amendment 2] was adopted.
3:44:18 PM
CHAIR GIESSEL solicited a motion.
3:44:23 PM
SENATOR DUNBAR moved to adopt Amendment 3, work order 34-
LS0768\A.3.
34-LS0768\A.3
Wallace/Bullard
4/10/25
AMENDMENT 3
OFFERED IN THE SENATE BY SENATOR DUNBAR
TO: SB 135
Page 4, line 29:
Delete "Not"
Insert "Except as provided in (c) of this
section, not"
Page 5, following line 7:
Insert a new subsection to read:
"(c) A report is not required under this section
if 10 percent of the total tax revenue a municipality
receives under AS 43.75.130 - 43.75.137 is less than
$1,000."
Page 8, line 25:
Delete "a new subsection"
Insert "new subsections"
Page 8, following line 31:
Insert a new subsection to read:
"(g) A report is not required under this section
if 10 percent of the total tax revenue a municipality
receives under this section is less than $1,000."
3:44:25 PM
CHAIR GIESSEL objected for purposes of discussion.
3:44:27 PM
SENATOR DUNBAR expressed concerns regarding the wording of
Amendment 3. He said he would like to offer a conceptual
amendment to Amendment 3.
3:44:46 PM
SENATOR DUNBAR explained that the conceptual amendment would
correct a drafting error that resulted from a miscommunication
between himself, Alaska Marine Lines (AML), and Legislative
Legal Services. He briefly discussed the error in Amendment 3.
He pointed out that $1,000 is ten percent of $10,000; therefore,
the language could be simplified to "is less than $10,000."
3:45:14 PM
[SENATOR DUNBAR moved to adopt Conceptual Amendment 1 to
Amendment 3.]
CONCEPTUAL AMENDMENT 1 to AMENDMENT 3
Page 1, line 7:
Delete "10 percent of"
Page 1, line 8:
Delete "$1,000"
Insert "$10,000"
Page 1, line 16:
Delete "10 percent of"
Page 1, line 17:
Delete "$1,000"
Insert "$10,000"
[CHAIR GIESSEL objected for purposes of discussion.]
3:45:42 PM
SENATOR DUNBAR explained the intent behind Conceptual Amendment
1 to Amendment 3. He emphasized that reports are costly and take
time. Some communities receive a very small amount from the tax
credit (in some cases as little as $300). For those communities,
the cost of writing a report is greater than the amount
received. He surmised that $10,000 is a reasonable cutoff for
the reporting requirement. He pointed out that this is a new
reporting requirement.
3:46:37 PM
CHAIR GIESSEL directed attention to lines 14-17 of Amendment 3
and asked whether the conceptual amendment changes would also
apply to that section.
3:46:46 PM
SENATOR DUNBAR replied yes. He clarified that the same changes
would be made to both sections (lines 7-8 and 16-17) of
Amendment 3. This would remove "10 percent of" and change
"$1,000" to "$10,000" in both sections.
3:47:02 PM
SENATOR CLAMAN agreed that some communities receive a very small
amount from the tax credit. He recalled the change made by
Amendment 1 and asked whether designating how the money can be
spent is necessary for communities that only receive $100. He
opined that it is reasonable for larger amounts (e.g. $10,000).
He briefly discussed the anti-dedicated funds provisions in the
Constitution of the State of Alaska. He acknowledged that his
comments are not directly related to Amendment 3; however, he
shared that the discussion of Amendment 3 (which emphasizes that
some communities receive small amounts and therefore would
remove the reporting requirement) has brought up additional
questions regarding the need for Amendment 1.
3:47:52 PM
SENATOR DUNBAR replied that there is a push and pull between the
desire to give communities the maximum flexibility to use the
funds while ensuring communities spend the funds responsibly. He
agreed that the legislature cannot dedicate funds; however, he
suggested that intent language is useful. He shared his
understanding that similar intent language is already in statute
(e.g. intent language related to the alcohol tax).
CHAIR GIESSEL brought the discussion back to Amendment 3.
SENATOR DUNBAR encouraged support of Amendment 3.
[The committee treated Conceptual Amendment 1 to Amendment 3 as
adopted.]
3:48:46 PM
CHAIR GIESSEL removed her objection to [Amendment 3], as
amended.
CHAIR GIESSEL found no further objection and [Amendment 3], as
amended, was adopted.
3:49:20 PM
CHAIR GIESSEL opened public testimony on SB 135; finding none,
she closed public testimony.
3:49:34 PM
CHAIR GIESSEL solicited the will of the committee.
3:49:37 PM
SENATOR WIELECHOWSKI moved to report SB 135, work order 34-
LS0786\A, as amended, from committee with individual
recommendations and attached fiscal note(s). He gave
authorization for Legislative Legal Services to make technical
and conforming changes.
3:49:52 PM
CHAIR GIESSEL found no objection and CSSB 135(RES) was reported
from the Senate Resources Standing Committee.