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 FINANCE COMMITTEE
April 25, 2025
9:03 a.m.
9:03:19 AM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee
meeting to order at 9:03 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Donny Olson, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Mike Cronk
Senator James Kaufman
Senator Jesse Kiehl
Senator Kelly Merrick
MEMBERS ABSENT
None
ALSO PRESENT
Senator Cathy Giessel, Sponsor; Joe Felkl, Legislative
Liaison, Department of Fish and Game; IntiMayo Harbison,
Staff, Senator Cathy Giessel; Senator Forest Dunbar,
Sponsor; Sonia Kawasaki, Senate Majority Counsel; Evan
Anderson, Staff, Representative Zack Fields; Katie Capozzi,
President and Chief Executive Officer, Alaska Chamber of
Commerce.
PRESENT VIA TELECONFERENCE
Megan Wallace, Chief Counsel, Legislative Legal Services;
Geoffrey Toy, Staff Attorney, Alaska Federation of Natives,
Anchorage; Mark Richards, Executive Director, Resident
Hunters of Alaska, Fairbanks; Sam Rohrer, President, Alaska
Professional Hunters Association, Kodiak; Blue Shibler,
Executive Director, Association for the Education of Young
Children, Juneau; Stephanie Berglund, Chief Executive
Officer, Thread Alaska, Anchorage; Jenny Stucky, Chief
Operating Officer, Campfire Alaska, Anchorage; Tracey
Schaffer, Co-Executive Director, Nunakins, Kotzebue; Emily
Nauman, Director, Legislative Legal Services; Brandon
Spanos, Deputy Director, Tax Division, Department of
Revenue; Stephanie Berglund, Chief Executive Officer,
Thread Alaska, Anchorage.
SUMMARY
SB 95 CHILD CARE: ASSISTANCE/GRANTS
SB 95 was HEARD and HELD in committee for further
consideration.
SB 96 CHILD CARE: TAX CREDITS
SB 96 was HEARD and HELD in committee for further
consideration.
SB 97 BIG GAME PERMIT PROGRAM
SB 97 was HEARD and HELD in committee for further
consideration.
Co-Chair Hoffman discussed the agenda. He noted that the
three bills were considered curative legislation and were
related to the passage of SB 189 the previous year. He
relayed that Megan Wallace, Chief Counsel for the Division
of Legislative Legal Services, would provide a quick
synopsis of the necessity of the legislation before
addressing each bill.
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. 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."
9:10:33 AM
Co-Chair Hoffman relayed that this was the bills first
hearing.
SENATOR CATHY GIESSEL, SPONSOR, explained that there was a
long-standing problem on state lands that included
overhunting and conflicts between resident, subsistence,
and guided hunters. The guide concession program would
create areas much like federal concession land areas and
would limit the number of hunters in each area. The
provision would prevent an overabundance of guided hunts in
hunting areas. There was no limit placed on Alaska resident
hunters or subsistence hunters.
Senator Giessel continued that a big game guide would have
to go through a competitive process. The permit area would
be granted for a ten-year duration and applicants could
compete for concession areas. There were limited
transferability conditions provided in the bill for the
permits should there be a need for transference. There was
a fee structure that would support the program. The federal
program had been very successful, and the bill modeled that
program. She relayed that she knew resident hunters that
had felt overwhelmed by guided hunts taking place in the
areas. There was a public, competitive process and the
program would start with one game unit before expanding
after success was demonstrated.
Senator Giessel noted that the subject of the bill had been
considered over several years. She emphasized that support
for the bill had grown over the years. She noted that
guided hunts brought in a huge amount of revenue to the
state and contributed to the Department of Fish and Game
Division of Wildlife - $15.2 million per year. She noted
the committee concern that boards and commissions be self-
funded. She shared that the Big Game Board had been a
deficit of $1 million but had paid their debt and the board
was now solvent and would oversee the program.
9:15:30 AM
9:15:44 AM
Co-Chair Stedman asked for a detailed explanation of how
the initial permits would be issued. He pondered that the
permits would last ten years, and wondered how the permits
would be renewed. He asked whether the bill would lead to
the privatization of natural resources. He thought that
limited entry fishing had created problems.
Senator Giessel drew attention to Section 3 of the bill,
which addressed the open competitive permit process:
Section 3: Creates new section AS 38.05.021 empowering
the Department of Natural Resources (DNR) to
administer the implementation of the big game guide
concession area permit program on land approved by the
BOG.
Outlines that the overarching goals of the guide
concession program are to encourage long-term minded
conservation, enhance customer experience, reduce user
conflicts, and ensure responsible, professional,
economically guiding industry.
Establishes the features of the guide concession
program permits:
1. All permits are awarded an open, public, and
competitive process.
2. A guide may not hold more than three concession
permits at a time.
3. Permits are valid for 10 years.
4. Permits may not be extended or renewed without the
same open, public, and competitive process.
5. Permits may be transferred to another individual
based on conditions set in regulation that are
consistent with the overarching goals of the guide
concession program.
6. If the terms of statute or regulation are violated,
permit may be suspended or revoked after the permit
holder has been given written notice and opportunity
to be heard.
Section 3 further empowers the DNR, in consultation
with the BOG, DF&G, and BGCSB, to adopt the necessary
regulations including the qualifications for full and
limited concession permits, process for issuing the
permits, and the collection of fees; grants DNR or
their designee the authority to enforce the terms of
this program; allows DNR to keep confidential any
proprietary, commercial, and financial information
provided by concession permit applicants; and includes
definitions.
9:17:57 AM
Co-Chair Stedman understood that the system would be a bid
system with renewal possible after 10 years.
Senator Giessel deferred to Joe Felkl from the Department
of Fish and Game.
9:19:00 AM
JOE FELKL, LEGISLATIVE LIAISON, DEPARTMENT OF FISH AND
GAME, introduced himself.
Co-Chair Stedman asked for clarity regarding how the
permits would be initially issued and then renewed or
extended.
Mr. Felkl relayed that the issuance of the permits would
reside in DNR, and the Board of Game would decide how many
permits were appropriate per area. He said that when a term
expired the permit would have to go through the process all
over again.
Co-Chair Stedman hoped to hear from DNR on the matter.
Co-Chair Hoffman asked whether the Board of Game had taken
a position on the bill.
Mr. Felkl relayed that the board had adopted a proposal
which would establish a guide concession area for Dall
Sheep. He believed the board chair had provided a letter of
support the previous year.
9:20:42 AM
Senator Kiehl asked whether the state ran the risk of
pushing the overcrowding situation around.
INTIMAYO HARBISON, STAFF, SENATOR CATHY GIESSEL, relayed
that was not the intent of the bill. The intent was to
issue a first permit to see how the program worked and then
expand.
9:22:12 AM
Co-Chair Hoffman OPENED public testimony.
9:22:39 AM
GEOFFREY TOY, STAFF ATTORNEY, ALASKA FEDERATION OF NATIVES,
ANCHORAGE (via teleconference), spoke in support of the
bill.
9:23:45 AM
MARK RICHARDS, EXECUTIVE DIRECTOR, RESIDENT HUNTERS OF
ALASKA, FAIRBANKS (via teleconference), spoke in opposition
to the bill. He asserted that the state did not have the
funds to regulate the guide industry program. He noted that
the fiscal note for the bill.
Mr. Richards thought that the bill would lead to
litigation. He felt that the Big Game Board had failed to
regulate their industry.
9:26:43 AM
SAM ROHRER, PRESIDENT, ALASKA PROFESSIONAL HUNTERS
ASSOCIATION, KODIAK (via teleconference), testified in
support of the bill. He addressed an earlier question
related to how the state might avoid problems seen in
limited entry fishing. He pointed out that the permits were
limited to 10 years and were not primarily monetarily
based, but rather considered operations, safety, and
conservation measures.
9:28:58 AM
Co-Chair Hoffman CLOSED public testimony.
9:29:05 AM
Senator Kiehl addressed three fiscal notes. He spoke to FN
1, OMB Component 473. The note showed a cost of $112.3 and
included one full-time position.
Senator Kiehl addressed FN 2 from the Department of Fish
and Game, OMB Component 2048. The amount was $14.4 and was
also reflected in the governor's budget request.
Senator Kiehl addressed FN 3 from the Department of Natural
Resources, OMB Component 3002. The note showed a cost of
$341.6 in FY26, with two, full-time positions and
indeterminate revenues from permitting fees.
9:30:44 AM
Co-Chair Stedman wondered whether there was consideration
given to making the program self-sustaining, rather than
the funds coming from the general fund.
Senator Giessel could not speak definitively to what the
board would do but suspected that board would ensure that
the fees covered the program.
Co-Chair Stedman asked whether the board would cover the
costs of the three full-time positions.
Senator Giessel did not have the ability to answer the
question.
Co-Chair Stedman thought that further discussion on the
bill should include the issues brough up by Mark Richards
during his public testimony.
Co-Chair Hoffman agreed.
SB 97 was HEARD and HELD in committee for further
consideration.
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."
9:32:44 AM
Co-Chair Hoffman relayed that this was the first hearing on
the bill.
9:33:00 AM
SENATOR FOREST DUNBAR, SPONSOR, introduced the bill. He
relayed that funding for the bill was already in the
governors budget because of the passage of SB 189 the
previous session.
9:34:02 AM
SONIA KAWASAKI, SENATE MAJORITY COUNSEL, referred to the
lawsuit status as discussed by Megan Wallace at the start
of the meeting.
Co-Chair Hoffman summoned invited testifiers to the table.
9:34:50 AM
BLUE SHIBLER, EXECUTIVE DIRECTOR, ASSOCIATION FOR THE
EDUCATION OF YOUNG CHILDREN, JUNEAU (via teleconference),
read from a prepared statement:
My name is Blue Shibler, and I serve as the Executive
Director of the Southeast Alaska Association for the
Education of Young Children, or SEAAEYC. We are the
regional childcare resource and referral agency
serving families and early childhood providers across
Southeast Alaska. I'm testifying today in strong
support of SB95 because increasing the income
eligibility for the Childcare Assistance Program is a
critical step toward stabilizing our childcare system
and supporting working families across the state.
In my role, I regularly hear from families doing
everything they can to live and work in our region and
are struggling to make ends meet. Childcare is nearly
always at the center of that struggle. The current
income threshold for childcare assistance is so low
that families can be penalized for earning just a
little more. Many turn down raises or promotions for
fear of losing their assistance before they can afford
care alone. That's not how public policy should work.
Assistance programs should create a bridge, not a
cliff, supporting parents as they grow in their
careers and helping them eventually become self-
sufficient.
As this bill proposes, raising the income threshold
would allow more families to access support and more
accurately reflect the actual cost of living and
working in Alaska today. Many families earn too much
to qualify for assistance but far too little to afford
childcare without it. I understand the state's fiscal
challenges. However, investments in childcare pay
long-term dividends by enabling more Alaskans to join
and stay in the workforce. Legislative solutions to
our childcare crisis cannot wait and SB96 is a
meaningful step in the right direction. I urge you to
support this bill this session. Legislative solutions
to the childcare system cant wait. Care Can't Wait.
Thank you for your time and your work on behalf of
Alaska's children and families.
9:36:59 AM
STEPHANIE BERGLUND, CHIEF EXECUTIVE OFFICER, THREAD ALASKA,
ANCHORAGE (via teleconference), read from a prepared
statement:
Thank you, Mr. Chair and members of the committee for
hearing SB 95. I'm CEO of thread, Alaska's statewide
childcare resource and referral organization. Thread
is a 39-year-old nonprofit, and we provide services
throughout the state to strengthen access to
affordable and high-quality early childhood education
with a focus on childcare. We serve more than 12,000
families, 2,000 early educators, and over 400 early
childhood education programs each year. The childcare
sector is fragile. It's long been a sector with
institutional deficiencies for decades but has seen
increased challenges over the last five years.
Since 2020, we've seen over 25 percent of the licensed
childcare program close across the state, and those
that are open, they're not able to serve all the
children they would like due to staff shortages. Just
last week, I received the very sad news that Bright
Beginning, one of our largest childcare programs in
South Anchorage, in Sen. Kaufman's district, is
closing its doors after 30 years. That's 125 families
who are losing their childcare space this month.
thread anticipates that more childcare programs, like
Bright Beginnings, will close if we do not see
sustainable and meaningful investments in the state
for childcare. The childcare workforce is struggling
through the low wages and few benefits at the same
time that there is high competition for qualified
workers in Alaska.
Currently, fewer families can access affordable and
quality childcare services than ever before. When we
don't have a strong childcare sector, we see our
economic infrastructure struggle. Businesses are not
able to recruit and retain quality employees, and
families are not able to participate in the workforce
as they want. Our most recent research conducted with
the McKinley Group in 2023 shows that families are
greatly impacted by a struggling childcare sector.
Businesses are not able to support their employees as
they're showing poor attendance and loss of
productivity. Childcare challenges for working
families are resulting in great absence and employee
turnover and are costing businesses an estimated $152
million annually. We know when Alaskans can't work,
they don't have financial security to support their
families, and they aren't able to achieve their self-
sufficiency goals or contribute to our economy. That
not only stifles the quality of life for families but
also stalls Alaska's growth.
SB95 adds needed support for childcare and strengthens
the childcare assistance and subsidy program. While
there are many areas of the childcare system that need
support, SB95 aims to strengthen the childcare
assistance by allowing more families, earning up to
the 105th percentile of median household income, to
participate in the program and create flexibility in
childcare resources with aims to support childcare
programs with the targeted supports they need. Changes
in childcare assistance are needed.
Currently, two few families participate in the program
as they don't qualify or can't access resources under
the current structure. A change that can help is
through SB95 and increasing childcare access and
capping co-payments required for families. The bill
will allow more families to qualify for assistance and
allow more families access to quality care. These and
other barriers impacting families' ability to
participate in the workforce. Just over half of
families report that household members' ability to be
employed or work more hours are impacted by quality,
availability, and cost of childcare. That is growing
as we've seen a 29% increase in families reporting
they're not able to work because of childcare
challenges. These findings underscore the need for
childcare change to strengthen our collective
workforce and economy.
This bill also creates a program to partner with
businesses to create incentives and support them with
developing on-site or near-site childcare. Although
childcare businesses are currently reimbursed at
childcare assistance program rates set by a market
rate survey that's based on the amount that childcare
businesses charge for care, not what is the actual
cost for providing that care and education. This
creates an unstable foundation for the childcare
system. We are encouraged to see the research that was
completed through the Governor's Childcare Task Force
to understand the true cost of care and that data
shows a gap in what the state is paying for
reimbursement compared to the true cost of providing
that care.
We are encouraged to see that the bill includes the
option for the cost of care to be used in conjunction
with market rate prices and policies. That supports a
more stable and informed childcare system. SB95 is a
great and necessary step for supporting families'
affordability and this bill will have an impact in
every single one of the legislative districts in your
community, from Kotzebue to Ketchikan. Endorsing SB95
as a step toward more affordable access to more
affordable care for families. We encourage you to
consider and pass this bill as it was already passed
through strong support last session. I also urge you
to restore childcare funding in the Operating Budget
that complements this bill to provide critical
operating supports for programs. Please restore that
funding. The positive change for childcare sector
cannot come soon enough. I appreciate the sponsor for
bringing the bill forward and thanks to Chair and
Committee for considering the bill. Thank you.
9:42:54 AM
Co-Chair Hoffman OPENED public testimony.
9:43:04 AM
JENNY STUCKY, CHIEF OPERATING OFFICER, CAMPFIRE ALASKA,
ANCHORAGE (via teleconference), called to express support
for SB 95. She relayed that in 2024, the average cost of
childcare, per child, in the state was $13,500. The
previous year, Campfire Alaska had provided over $700,000
in financial assistance to families. She stressed the
importance of access to affordable childcare for Alaskas
families.
9:45:37 AM
TRACEY SCHAFFER, CO-EXECUTIVE DIRECTOR, NUNAKINS, KOTZEBUE
(via teleconference), testified in support of the bill. She
mentioned young foster children were shipped out of her
region because foster families could not afford care for a
child not yet in public school. She emphasized that
functional communities needed a workforce and pointed out
the need for childcare options. She discussed early
childhood and the importance of early childhood education.
9:48:12 AM
Co-Chair Hoffman CLOSED public testimony.
9:48:19 AM
Senator Kiehl addressed a fiscal note by the Department of
Health, OMB Component 1897. The note showed a total of $6,
920,200 in the governors budget request for the fiscal
year. The total was comprised of $225.1 in federal receipts
and matching general funds. There was $5,642.0 in
unrestricted general funds. There was also a request for
two full-time positions.
Co-Chair Stedman asked for an explanation on Section 7, and
Section 8. He asked about the current median income per
household in Alaska.
Senator Dunbar deferred to Evan Anderson from
Representative Fields office.
9:50:17 AM
EVAN ANDERSON, STAFF, REPRESENTATIVE ZACK FIELDS, spoke to
the duplicative language in Sections 7 and 8. He explained
that daycare assistance program was the former language
in statute, which would be corrected to childcare
assistance grant in SB 95.
Co-Chair Hoffman asked Emily Nauman to address the
question.
9:51:14 AM
EMILY NAUMAN, DIRECTOR, LEGISLATIVE LEGAL SERVICES (via
teleconference), affirmed that Mr. Anderson's explanation
was sufficient.
9:51:36 AM
Co-Chair Stedman asked about the state's median monthly
household income.
Ms. Nauman did not know the median monthly income of
Alaskan households.
Co-Chair Stedman shared concerns about the income
restriction in the bill. He considered the cost of daycare,
and the challenges that a single household earner would
have to meet the income restriction in the bill. He worried
that people who needed help would be excluded. He thought
the issue was impacting the economics of the state. He
thought the bill did not go far enough to assist working
families in the state. He thought the state should work to
assist a larger number of children.
Co-Chair Hoffman thought Co-Chair Stedman's comments
suggested that amendments could be made to the three pieces
of legislation. He wondered whether amending the
legislation was possible under the lawsuit.
9:55:18 AM
Ms. Nauman advised that the committee pass the legislation
as written. She thought that there was latitude to make
changes if the sections matched up to the section of
legislation that the legislature wanted to enact. She said
that the legislature was free to make any policy changes it
desired and then the court would be responsible for setting
the same subject issue. She thought the matter was a policy
call for the legislature. She stated that there was a
possibility that the legislature could lose the legal
argument and the legislation would be negated.
Co-Chair Stedman considered increasing the household income
restriction from 105 percent to 150 percent as an
enhancement of the legislation and not a matter of same
subject rule. He wanted to hear from the bill sponsor
regarding he decision to arrive at a level that would help
working families with multiple children.
Senator Dunbar deferred to Mr. Anderson.
9:58:11 AM
Mr. Anderson relayed that the previous 85 percent number
allowed for the maximum allowable for the federal pass-
through grants. He added that state support for childcare
subsidies up to this point had been entirely subsidized by
the federal government. The change from 85 percent to 105
percent represented the first time that the state had
invested in childcare subsidies. He agreed that the
percentage could be higher, some states subsidized up to
400 percent of the median income. He said that the change
in the bill represented 18,000 Alaskan children.
9:59:13 AM
Co-Chair Hoffman suggested that Mr. Anderson could provide
further information regarding what the fiscal note might be
at 150 percent.
Senator Dunbar agreed to provide the information.
SB 95 was HEARD and HELD in committee for further
consideration.
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.
ADJOURNMENT
10:17:58 AM
The meeting was adjourned at 10:17 a.m.
| 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 |