SENATE FINANCE COMMITTEE May 12, 2023 1:08 p.m. 1:08:43 PM CALL TO ORDER Co-Chair Olson called the Senate Finance Committee meeting to order at 1:08 p.m. MEMBERS PRESENT Senator Lyman Hoffman, Co-Chair Senator Donny Olson, Co-Chair Senator Bert Stedman, Co-Chair Senator Click Bishop Senator Jesse Kiehl Senator Kelly Merrick Senator David Wilson MEMBERS ABSENT None ALSO PRESENT Ken Alper, Staff, Senator Donny Olson; Senator Scott Kawasaki, Sponsor; David Dunsmore, Staff, Senator Scott Kawasaki. PRESENT VIA TELECONFERENCE Rena Miller, Special Assistant, Commissioners Office, Department of Natural Resources. SUMMARY SB 48 CARBON OFFSET PROGRAM ON STATE LAND CSSB 48(FIN) was REPORTED out of committee with three "no recommendations", three "do pass" recommendations and with one new fiscal note from the Department of Commerce, Community and Economic Development, and three previously published fiscal notes: FN 4(DNR), FN 5(DNR), FN 6(DNR). SB 138 ELECTIONS; VOTER REG.; CAMPAIGNS CSSB 138(FIN) was REPORTED out of committee with three "do pass" recommendations, two "no recommendations", one "amend" recommendation, and one new fiscal note from the Office of the Governor. SENATE BILL NO. 48 "An Act authorizing the Department of Natural Resources to lease land for carbon management purposes; establishing a carbon offset program for state land; authorizing the sale of carbon offset credits; and providing for an effective date." 1:09:28 PM KEN ALPER, STAFF, SENATOR DONNY OLSON, explained the new fiscal note from the Alaska Oil and Gas Conservation Commission (AOGCC). He noted that within the committee substitute there was a primacy section which related to the governors other carbon bill that was about carbon injection. He stated that once the other bill was enacted the state would be permitting and hold responsibility for a certain type of injection well. He remarked that it would take a few years to go through the process, so there was an immediate need for obtaining the federal tax credits that the companies would be pursuing. He stressed that the implementation of the other bill carried costs for the AOGCC. 1:10:59 PM AT EASE 1:11:19 PM RECONVENED 1:11:23 PM Co-Chair Hoffman MOVED to ADOPT Amendment 1, 33-GS1372\U.2 (Dunmire, 5/12/23). Co-Chair Olson OBJECTED for discussion. Mr. Alper explained the amendment. He stated that the Department of Natural Resources (DNR) found some technical clarifications, so the amendment held some sequencing and clarity. He stressed that the amendment had no substantive changes. Co-Chair Olson WITHDREW the OBJECTION. There being NO OBJECTION, it was so ordered. 1:12:29 PM AT EASE 1:13:03 PM RECONVENED 1:13:15 PM Senator Bishop MOVED to ADOPT Amendment 2, 33-GS1372\U.2 (Dunmire, 5/11/23). Co-Chair Olson OBJECTED for discussion. Senator Bishop remarked that the amendment would take 20 percent of the program to be deposited into the Renewable Energy Grant Fund inside of eight years. Co-Chair Olson WITHDREW the OBJECTION. There being NO OBJECTION, it was so ordered. Senator Bishop MOVED to REPORT SB 48 from committee with individual recommendations, and attached fiscal notes. Senator Kiehl OBJECTED for discussion. He felt that there were some constitutional questions related to the potential for royalty. He stressed that the questions had unsure answers. 1:18:03 PM RENA MILLER, SPECIAL ASSISTANT, COMMISSIONERS OFFICE, DEPARTMENT OF NATURAL RESOURCES (via teleconference), stated that the Department of Law (LAW) had communicated that there was no current law defining carbon as a mineral for legal purposes. She stated that the governor had agreed to request a written opinion of whether carbon was a mineral resource. She stated that DNR would conduct the program in accordance with constitution and state laws. Senator Kiehl appreciated the executive branchs desires. Ms. Miller stressed that the programs would be conducted in accordance with state rules and laws. Senator Kiehl WITHDREW his OBJECTION. There being NO further OBJECTION, it was so ordered. 1:20:13 PM AT EASE 1:20:57 PM RECONVENED CSSB 48(FIN) was REPORTED out of committee with three "no recommendations", three "do pass" recommendations and with one new fiscal note from the Department of Commerce, Community and Economic Development, and three previously published fiscal notes: FN 4(DNR), FN 5(DNR), FN 6(DNR). 1:21:13 PM AT EASE 1:38:46 PM RECONVENED SENATE BILL NO. 138 "An Act relating to elections; relating to voters; relating to voting; relating to the crime of unlawful interference with voting in the first degree; relating to campaign signs; relating to the reporting of financial and business interests by certain municipal officers and former officers and candidates for municipal office; relating to the Redistricting Board; and providing for an effective date." 1:39:16 PM AT EASE 1:39:44 PM RECONVENED 1:39:47 PM Senator Kiehl MOVED to ADOPT the committee substitute for SB 138, Work Draft 33-LS0783\U (Klein, 5/12/23). Co-Chair Olson OBJECTED for discussion. 1:40:24 PM KEN ALPER, STAFF, SENATOR DONNY OLSON, discussed the Summary of Changes (copy on file): 1. Eliminates the change that would have allowed for a perjury charge for false statements on a ballot application. This remains a misdemeanor. 2. Removes the section that would have allowed international election observers at a precinct or counting center. 3. Removes the sections related to repealing the prohibition on using images of the person's marked ballot (or "ballot selfies") for the purpose of influencing another voter. 4. Removed the changes that gave direction, if someone has voted more than once, regarding which ballot to prioritize. 5. Expands the use of observers to witness a ballot audit so that all campaigns may provide witnesses at their own expense. 6. Clarifies language regarding postmarks and barcodes on a ballot to ensure that ballots received after election day are only counted if they were mailed on or before election day. 7. Clarifies the process for curing uncounted ballots, speeding up when notices of deficiency are sent out and ensuring ballots are only counted if the form is fully completed. 8. Deleted the section adding secure drop boxes when an election is conducted by mail. 9. Within the section allowing political signs up to 32 square feet along highways, removed the prohibition on the property owner being compensated for the display. Co-Chair Olson WITHDREW the OBJECTION. There being NO OBJECTION, it was so ordered. 1:44:31 PM SENATOR SCOTT KAWASAKI, SPONSOR, remarked that it was a complex bill, and thanked the committee. 1:44:53 PM DAVID DUNSMORE, STAFF, SENATOR SCOTT KAWASAKI, agreed with Senator Kawasakis remarks. 1:45:17 PM AT EASE 1:45:31 PM RECONVENED Senator Kiehl MOVED to REPORT SB 138 from committee with individual recommendations and attached fiscal note. There being NO OBJECTION, it was so ordered. CSSB 138(FIN) was REPORTED out of committee with three "do pass" recommendations, two "no recommendations", one "amend" recommendation, and one new fiscal note from the Office of the Governor. ADJOURNMENT 1:46:30 PM The meeting was adjourned at 1:46 p.m.