SFLR-20260506-1100

[FOREIGN LANGUAGE] Will the Senate come to order, please? And will members please signify your presence by voting?

The roll shows 20 members present. Thank you. With 20 members shown as present, we have a quorum to conduct business. The invocation this morning will be given by Adam Bauer with the Juneau Baha'i Assembly. Members, please rise.

O thou Lord of the Kingdom, though our bodies be gathered here together, yet our spellbound hearts are carried away by thy love. And yet we are transported by the rays of Thy Splendent Face. Weak though we be, we await the revelations of Thy Might and Power. Poor though we be, with neither goods nor means, still we take riches from the treasures of Thy Kingdom. Drops though we be, still do we draw from— out from Thy Ocean Depths.

Motes though we be, still do we gleam in the glory of Thy Splendid Sun. O Thou, our Provider, send down Thine aid that each one gathered here may become a lighted candle, each one a center of attraction, each one a summoner of Thy Heavenly Realms, till at last we make this nether world the mirror image of thy paradise. Amen.

Thank you, Secretary Bauer. Senator Tilton, will you please lead us in the Pledge of Allegiance? I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.

Thank you, Senator Hilton. Will the Secretary please certify the journals? I certify as to the correctness of the journals for the 105th and 106th legislative days. Madam Majority Leader. Mr. President, I move and ask unanimous consent that the journals be approved as certified by the Senate Secretary.

Hearing no objection, the journals have been approved. Senator Hoffman. Good morning, Mr. President. I move and ask unanimous consent that the prayer be spread on the journal. Thank you, seeing no objection, the prayer has been spread upon the journal.

At this time, are there guests for introduction?

Seeing none, Madam Secretary, are there messages from the Governor? A message dated May 5th stating the Governor has noted the following resolution and he is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing. Senate Concurrent Resolution Number 19, amended House, extend West Coast storm disaster. Legislative Resolve Number 27. Those are all the messages from the governor this morning, Mr. President.

Thank you, Madam Secretary. Are there messages from the House? I have no messages from the House today. Are there communications? There are no communications today.

And are there reports of standing committees? Report dated May 4th stating, in accordance with AS3905080, the Education Committee held a hearing on the following appointee. A signature on this report does not reflect intent by any of the to vote for or against the confirmation of the individual during any further sessions. Board of Education and Early Development, Joy Cogburn-Smith. Signing the report, Senator Tobin, Chair, Senators Yunt, Bjorkman, Kiel, Stevens.

Report dated May 4th stating in accordance with AS3905080, the Finance Committee held a hearing on the following appointee. A signature on this report does not reflect intent by any of the members to vote for or against the confirmation of the individual during any further sessions. State Assessment Review Board, Jana Weltzin. Signing the report, Senators Olson, Steadman, Hoffman. Co-chairs, Senators Kaufman, Cronk, Merrick, Kiel.

Report dated May 5th stating in accordance with AS3905080, the Health and Social Services Committee held a hearing on the following.

Appointees. A signature on this report does not reflect intent by any of the members to vote for or against the confirmation of the individuals during any further sessions. State Medical Board: Hannah Milkey, Robert Scala. Signing the report: Senator Dunbar, Chair, Senators Myers, Clayman, Tobin, Giesel. Report dated May 5 stating in accordance with AS3905080, the State Affairs Committee held a hearing on the following appointee.

A signature on this report does not reflect intent by any of the members to vote for or against the confirmation of the individual during any further sessions. Alaska Police Standards Council, Michael Craig. Signing the report, Senator Kawasaki, Chair. Senators Wilkowski, Gray Jackson, Tilton, Bjorkman. The State Affairs Committee considered Senate Bill Number 169, Welcoming Alaska Office, and recommended it be replaced with the State Affairs Committee substitute.

New fiscal and zero fiscal notes. Signing amend, Senator Kawasaki, Chair. Signing do pass, Senator Gray Jackson. Signing no recommendation, Senators Wilkowski, Tilton, Bjorkman. The bill has a further referral to the Finance Committee.

The Finance Committee considered Senate Bill 174, invasive species management, previous fiscal note. Signing do pass, Senators Olson, Hoffman, cochairs. Signing no recommendation, Senator Steadman, co-chair, Senators Kaufman, Cronk, Merrick, Kiel. The bill has no further referral. It is in the Rules Committee.

The Finance Committee considered Senate Bill 208, agricultural land leases, and recommended the adoption of the previous Resources Committee substitute New zero fiscal note. Signing do pass, Senators Olson, Hoffman, co-chairs. Senator Keele signing no recommendation. Senator Steadman co-chair. Senators Kaufman, Cronk, Merrick.

The bill has no further referral. It is in the Rules Committee. The Labor and Commerce Committee considered Senate Bill 234, Uniform Fiduciary Income and Principal Act. New zero fiscal note. Signing do pass, Senator Bjorkman, chair.

Senator Gray Jackson. Signing no recommendation, Senators Dunbar, Merrick, Yunt. The bill has a further referral to the Judiciary Committee. The Health and Social Services Committee considered House Bill Number 14, repeal catastrophic illness medical assistance, new zero fiscal note. Signing no recommendation, Senator Dunbar, chair.

Signing do pass, Senators Myers, Clayman, Kiesel, Tobin. The bill has a further referral to the Finance Committee. The State Affairs Committee considered CS for House Bill Number 25, Labor and Commerce amended. Disposable food serviceware. New zero fiscal note.

Signing do pass, Senator Kawasaki. Chair, Senator Gray Jackson. Signing no recommendation, Senators Bjorkman, Tilton. The bill has a further referral to the Labor and Commerce Committee. The State Affairs Committee considered House Bill Number 176, University of Alaska fees.

Previous zero fiscal note. Signing amend, Senator Kawasaki. Chair, signing do pass, Senators Gray Jackson, Tilton. Signing no recommendation, Senator Bjorkman. The bill has no further referral.

It is in the Rules Committee. The Labor and Commerce Committee considered House Joint Resolution 38, Public Safety Telecommunications— Telecommunicators. Previous zero fiscal note, signing do pass. Senator Bjorkman, chair. Senators Dunbar, Gray, Jackson, signing no recommendation.

Senators Merrick, Yunt. The resolution has no further referral. It is in the Rules Committee. The Education Committee considered House Joint Resolution 45, Support Special Education Funding. Previous zero fiscal note, signing do pass.

Senator Tobin, chair. Senators Bjorkman, Stevens. The resolution has no further referral. It is in the Rules Committee. Those are all the standing committee reports this morning, Mr. President.

Thank you, Madam Secretary. Are there reports of special committees? I have no special committee reports today. Are there Senate resolutions for introduction? Senate Concurrent Resolution Number 24 by the Senate Finance Committee, suspending Rules 24C, 35, 41B, and 42E, Uniform Rules of the Alaska State Legislature, concerning House Bill Number 184, relating to financing by the Alaska Industrial Development and Export Authority for workforce housing development projects.

Senate Concurrent Resolution 24 will lay on the Secretary's desk. Those are all the resolutions for introduction today, Mr. President. Thank you. Are there Senate bills for introduction? Senate Bill 288 by the Senate Finance Committee, an act relating to loans made from the Bulk Fuel Loan Account and providing for an effective date.

Referred to the Finance Committee. Those are all the Senate bills for introduction today, Mr. President. Thank you, Madam Secretary. Please read the first item on today's calendar. See us for House Bill number 263, Finance, amended by the House Finance Committee, an act making appropriations for the operating and loan program expenses of state government and for certain programs, capitalizing funds, making supplemental appropriations, and providing for an effective date.

The Finance Committee considered the bill and recommended it be replaced with a Finance Senate Committee substitute, new title with SCR 23. Signing do pass, Senators Olson, Hoffman, co-chairs. Senators Merrick, Keel signing amend. Senators Kaufman, Cronk, there is a Finance Senate Committee substitute. Thank you.

Senator Hoffman. Mr. President, I move and ask unanimous consent that the Senate Finance Committee substitute for House Bill 263 be adopted in lieu of the original bill. Thank you, Senator Hoffman. Would you please explain the changes? Yes, I'd be glad to, Mr. President.

Before I get into the details of some of the changes from the other body, the big picture differences are these: the Senate operating budget, when combined with spending agreements for the capital budget, balances the budget on a $73 a barrel oil, with $47.5 million left over for next year's supplemental. The other bodies' budget, when combined with spending agreements for the capital budget, has close to a $320 million deficit at $75 a barrel oil. In short, Mr. President, we have a budget that accounts for wide swings in oil prices and leaves money on the table to take care of— starts to take care of some of the supplementals that we anticipate next year.

The other body's budget requires a draw from the Constitutional Budget Reserve Account by over $300 million. Some of the changes, Mr. President, in the Department of Administration, we did not centralize payroll and shared services and leave this decision to the next Legislature and the next administration. We've added one Attorney V to provide legal support for leadership for the Public Guardian section, which is a cost of $242,000. We did not authorize a geographic differential study. In the Department of Commerce, Community and Economic Development, we've added $20 million from the general— from the general fund to make additional community assistance base payments in fiscal year '25 with the intent, with the intent of helping communities with higher cost of fuel and shipping.

We did not fund the AGDC operating costs, which totaled $2.2 million. We added multi-year grant to the Alaska Farmers Marketing Association for SNAP backslash WIC, Seniors Nutritional Incentive Program. In the Department of Corrections, we funded a cost driver study, $650,000, to procure an independent third-party study to identify, evaluate, and analyze the primary cost drivers within the Department of Corrections. This will be going to the Legislative Budget and Audit Committee. We've added an increment of $2.8 million for Community and Regional Affairs jails increment.

In the Department of Education and Early Development, Mr. President, we've added $29.1 million to school District grants for the purposes of energy relief. The House added $147.6 million of outstanding— of outstanding— outside the formula for the BSA and $10.9 million for public transportation, totaling $158.5 million. We added $111 million in FY $26 million outside the BSA funding, plus $29.1 million in school energy relief, for a total of $140.1 million. We've increased funding for Head Start grants by $2 million. We removed excess funding from the residential school program which was $1.6 million.

We did not match the House increment for Parents as Teachers, uh, program of $355,000.

In Family and Community Services, we did not match the House increment of $260,000 for retention bonuses for frontline social workers. In the Department of Fish and Game, we did not match the House removal of $2.2 million in general funds from sports fisheries, sports fish hatcheries. We also did not match the House.

And added $400,000 in UGF authority for Port Moller. Mr. President, in the Office of the Governor, we bifurcated the governor's budget. This is in line with what the legislature did last gubernatorial election. Approximately half of the governor's budget is contained in the numbers section, effective July 1, 2026 through December 31, In addition, a new appropriation was created for the Lieutenant Governor. The remainder of the Office of Governor's budget is in effect July— January 1, 2027, and is in the language section.

In the Department of Health, Mr. President, the Division of Public Assistance, we increased maintenance of effort for Tribal Temporary Assistance for Needy Families, known as TANF, and the Alaska Temporary Assistance Program by a little over $3 million in UGF. We did not match the House increment of $7.5 million for child care benefits discretionary funds for workforce recruitment and retention. We did not match increments to for restoring the Alaska Affordable Heating Program of $7.5 million. We did not match the House increments of $3.7 million in UGF and $4.3 million for the Public Assistance Field Service Virtual Contact Center. Senior and Disability Services, Mr. President, we did not match the House increment in adult day services of $1.5 million, centers for independent living of $403,000, or the senior centers for $700,000.

We did not match the House increment of $382,000 for general relief temporary assistance living payments and did not match the House increments of $15.4 million in various Medicaid-related items. In the Department of Labor, we added $1.5 million in general fund to maintain workers' compensation operations. In the Department of Public Safety, we've accepted the governor's increments for a net zero funding source change for trooper housing of a little under $2 million in designated general funds to unrestricted general funds. We've accepted the governor's amendment to dispatch services of $924.8 thousand in UGF for increased contract costs. In the Department of Revenue Tax Division, we've added $900,000 for 5 new auditors.

In Department of Transportation Public Facilities, we did not accept the structural reorganization of the department. We've accepted half of the highways and aviation maintenance and state equipment fleet that was cut in FY '26 for a total of $2.6 million. In the University of Alaska, we added $1.2 million for student recruitment and expansion at 3 campuses. We added $15 million in federal receipts and $750,000 in university receipts for the creation and operation of Critical Minerals Acceleration Program. We added $2.4 million in salary adjustments for non-union employees.

In the judiciary, Mr. President, we added $300,000 $63.5 million in UGF for tribal court visitors program. In the legislature, we added a public school funding adequacy study of $400,000. We added $197,800 as a one-time increment to replace program receipts due to the expiration of the Wells Fargo lease in Anchorage. In the permanent fund, we've added a permanent fund dividend of $1,000 at a cost of— $1,000 per individual at a cost of $674 million. The House had $1,500.

In fund capitalization, Mr. President increased the appropriation for the disaster relief from $38 million to $48 million.

$30 Million more than the House in the Community Assistance Fund to bring the Community Assistance Fund in FY '27, the year-end balance back to the $90 million so that FY28 community assistance payout will be $30 million. In fire suppression, we increase the general fund appropriation from $54.8 million to $60.6 million to bring the fund up to the 5-year average, uh, of the cost of fighting wildlife fires in Alaska. Salaries, uh, and benefits Adjustments, we added new contract— contracts for approval. Public Safety Employment Association, representing the regularly commissioned public safety officers unit members within the Department of Transportation and Public Facilities. Public Safety Employees Association, representing the regular commissioned public safety union Public Safety Officers Union members within the Department of Public Safety.

We've added the CBR reverse sweep provisions.

Adding to the FY26 supplementals that came in as amendments after March 13th from the governor, There were $11.5 million requests. $4 Million to defend the Val lawsuit, which is inmate care. $2.1 Million for judgments and settlements. $1.25 Million for the VPSOs. $5.2 Million to pay for assistance at the Pioneer Homes.

Supplemental debt and other obligations. The governor's amendment that was accepted reduced the interest expense due to bond refinancing, which saved the state of Alaska $1.25 million. In summary, Mr. President, in education funding, the House used FY27 funds of $147.6 million to the BSA as a one-time grant and $10.9 million in people transportation as a one-time grant for a total of $158.5 million. The Senate used $111 million in FY26 funds to the BSA as a one-time grant $29.1 million in FY '27 for school discretionary grants for energy relief as a total of $140.1 million. Because of the war in Iraq, fuel prices have spiked, causing general financial burden across the state of Alaska, which resulted in additional revenues to the state.

To help address this, we've included what we could in this budget to address energy relief to individuals, to school districts, and to communities. In addition to $1,000 BS— the Permanent Fund Dividend— we've added $150 in energy relief payments in using FY26 revenues of $96 million. We've included $29.1 million in FY27 to go out to grants to school districts to help defray high fuel costs. We've doubled the FY27 base payment of $20 million for community assistance to assist communities across the state of Alaska with high costs of energy. Those are the changes that are included in this bill.

From the House. Thank you. Thank you, Senator Hoffman. Hearing no objection, the Senate Finance Committee substitute has been adopted. This bill will advance to third reading on our next legislative calendar, which time we'll return to second if there are amendments.

Madam Secretary, please read the next item on today's calendar.

CS for House Bill 265, Finance, amended by the House Finance Committee. An act making appropriations for the operating and capital expenses of the state's integrated comprehensive mental health program and providing for an effective date. The Finance Committee considered the bill, recommended it be replaced with the Finance Senate Committee substitute. Signing do pass: Senators Olson, Steadman, Hoffman. Co-chairs: Senators Merrick, Keele.

No recommendation. Senators Kaufman, Cronk, there is a Finance Senate Committee substitute. Thank you. Senator Hoffman. Mr. President, I move and ask unanimous consent that Senate Finance Committee substitute for House Bill 265 Finance be adopted in lieu of the original bill.

Thank you, Senator. Would you please explain the changes? Yes, Mr. President. We did not match the House decrement of $3 million in recidivism reduction funds from the community residential centers, which is in the Department of Corrections, and corresponding increment of $3 million in recidivism reduction funds to treatment and recovery grants. We did not add matching— we did not add match the following House increments totaling $4.7 million.

$3.5 Million in behavioral health treatment and recovery grants, $500,000 for the operation of the crisis call centers, $723,000 behavioral health prevention and early prevention programs. We added $5.15 million to the, uh, Homeless Assistance Program to match the Mental Health Trust recommendations. We approved language to use existing mental health resources to increase the rate per service increments of private duty nurses' services from $20 to $30 for registered nurses and from $18.75 to $26.25 for licensed practical or vocational nurses. We increased funding of $5.9 million to the early prevention and infant learning programs, $200,000 more than what the House added. We approved the PSEA contract for the public— Department of Public Safety and the Department of Transportation and Public Facilities.

Mr. President, those are the changes. Thank you, Senator Hoffman. Hearing no objection, The Senate Finance Committee substitute has been adopted. This bill also will advance to third reading on our next legislative calendar. Madam Secretary, please read the next item on today's calendar.

CS for Senate Bill 200, Resources, an act relating to municipal assessments of farm or agricultural land and providing for an effective date before the Senate in third reading on final passage. There is an amendment number 1 by Senator Giesel on members' desks. Thank you. Senator Giesel. Mr. President, I move and ask unanimous consent that Senate Bill 200 be returned to second reading for the specific purpose of considering Amendment Number 1.

Thank you. Hearing no objection, Senate Bill 200 is back in second reading and will remain in second reading until all amendments have been considered. Senator Giesel. Mr. President, I move Amendment Number 1. There has been an objection.

Senator Giesel. Thank you, Mr. President. Mr. President, you may recall that when we talked about Senate Bill 200 and the changes that were made in it, that I stated that the Resources Committee made a change to this bill that excludes municipalities with populations over 200,000 people— that's effectively Anchorage— to be exempted from having to provide municipal property tax deferral. To eligible agricultural operations. Mr. President, Amendment Number 1 would rescind that change.

In other words, it would allow this property tax deferral, which is controlled by local communities, Mr. President, to apply to Anchorage as well. It also will return the definition of a farm to the pre-2024 definition. This would add back agricultural operations that do not produce food products per se, but do generate revenue from agricultural activities such as horse barns. So that's what the amendment would do. Mr. President.

Thank you, Senator Giesel. Is there further discussion? Please, Senator Dunbar. Thank you, Mr. President. I rise in opposition to this amendment.

It undoes the work that was done at the Resources Committee. And I think it— there's a misunderstanding about what that did and what this amendment would do. It is not the case that Anchorage was excluded from, from the ability to provide this exemption. It is not the case that we need this amendment to allow Anchorage to do so, to, to extend the farm tax exemption to non-food producing properties such as horse farms, peony farms, commercial greenhouses growing flowers. That is not the case.

What was done at the Resources Committee was give, in this case Anchorage, the option to choose or not choose to do that. This bill is a mandate on local governments. And what the amendment— I'm sorry, the revisions at Resources did was say that in— for Anchorage, and certainly other communities could expand it to themselves as well, but For Anchorage, it would be optional. In the municipality of Anchorage, their local government could decide whether or not to extend this property tax exemption. So again, unfortunately it's been described as an exclusion.

That was the case, I saw that reported in the media as well. That is not the case. The work done at the Resources Committee did not exclude Anchorage. It said that Anchorage has the option to choose or not choose. And the reason it has to be in state law is because the state law has unusual amount of control in Alaska over property taxes and what you can and can't do.

So in Anchorage, we are at or almost always at our tax cap. And the practical effect of excluding— I'll use the term excluding— of exempting a lot of new property is to, through the mill rate, raise property taxes on other properties. So in Anchorage, if we were to expand, as this bill does, to a large number of new properties, and we don't know exactly how many new properties this expansion of the exemption will, will rope in, it might just be a handful of properties. Only a handful of properties, Mr. President, have taken this exemption in the past. In 2024, it was about $5.6 million worth of properties.

They had $1.3 million deferred. That $1.3 million was shared through the, by the other residential, primarily residential property taxpayers in Anchorage. And I think that were the local government given the control to decide whether they want to do that or not, I suspect that for food-producing properties, they would do so. But I want to give them that local control. If you were to ask them to expand it beyond to non-food-producing commercial greenhouses, to horse farms, they might choose, they might not.

If you go to the average homeowner in Spinard and say— or the renter in Mountain View or the mobile home owner in Muldoon and ask them, would you be willing to have higher property taxes so that we can exclude commercial greenhouses and horse farms and other non-food-producing agricultural properties, they might say yes. I'll say in my experience they have said no. But they might say yes. And I'm not trying to prevent that conversation from happening. I'm saying that it should happen at the local level, particularly in Anchorage, where we have such a shortage of buildable land for affordable housing.

The Anchorage Assembly, the local administration, are trying to find ways to promote affordable housing. And again, they might choose that this expansion to non-food-producing agricultural lands is appropriate. But I think they should have that choice. And that is the compromise we reached at the Resources Committee. That is what is currently in the bill.

They will get to choose through ordinance what part of this exemption they want to extend to these properties. What this amendment does is remove that optionality and turn it back into a mandate so that property taxpayers, residential property taxpayers primarily, because they're the, they're the largest group in Anchorage, They will be mandated that their property taxes will go up, not by a lot, but by some amount in order to extend this to non-food-producing properties. And for that reason, because I promote local control and I want the local government has a decision to choose all or part of it, I oppose this amendment. Thank you, Mr. President. Thank you, Senator Dunbar.

On Amendment Number 1, Senator Bjorkman. Thank you very much, Mr. President. I rise in support and urging a yes vote on this amendment brought to us by the chair of the Resources Committee. I think it's important to note, in response to comments we just heard, the amount of deferred tax that was deferred or put off in Anchorage in 2023 due to the, the farm tax provisions in law was a little over $11,000. $11,000.

Not millions. $11,000. The following year, after we enacted— the following year, I should say, that amount was a little over $21,000 that was deferred. Very, very small in comparison to the overall municipal budget of Anchorage. But that amount of money was absolutely a big deal to the farmers that it benefited, allowing them to produce food, allowing them to do the things that they need to do.

The.

The changes made in the Resources Committee did not simply stop at changing the legislation before us. The changes made in the Resources Committee, they stripped out the guarantee in current law, the law that sits on the books today, that farmers in Anchorage would receive a property tax deferment. It's a deferment. It is not a reduction forever in their property taxes. It's a deferment only that stays in place if they maintain their property for the purposes of farming.

So let's talk a little bit more about the history of this bill and how I came to it, as well as the farmers and stakeholders that are involved. In the previous legislature, this idea was brought to me that the current farm tax deferment program, which only applied to the land, should be extended to also apply to buildings used for the purposes of growing food, so that those buildings could be assessed at a farm use rate. This is not a wholesale exemption. This is not a complete elimination of property taxes for farm properties. It gives a municipality a very significant amount of local control to set their farm use rate that every individual municipality gets to set at their local option to assess properties that farm, that grow food, that also raise flowers, or also have horses.

The laws offering that deferment for the growth of flowers, hay for horses, for the horse property themselves— that was part of the law up until we changed it last legislature. Those deferments, they were in place. The underlying bill— and I'll talk about it more in my comments— in the underlying bill would restore that deferment to those those purposes. I want to highlight, however, the cost of this deferment being taken away from the farmers that currently exists in law is, is very small on the bottom line for those— for the Municipality of Anchorage, but it's a very high cost for those farmers. Also, I showed a few members, and I believe The, the member from Anchorage to my left received a memo from Legal Services about special and local legislation, as well as an equal protection cause issue with carving out the municipality of Anchorage in this law.

That's an issue. This is a mandate statewide and has been for years. To provide for a farm use rate that local municipalities can set. I think it's very important that that remain in place, that those provisions under the mandated program are not taken away from people in Anchorage. And that's why I support securing that protection for farmers in Anchorage as made by the Senate Resources Committee chair.

I urge members to vote yes. Uh, what is currently a statewide rule should become optional for one municipality only. And I don't understand. Thank you, Senator Keogh. Is there further discussion?

Does anyone want to take that? Senator Dunbar. Mr. President, I wasn't sure on the procedure. I didn't want to have to speak twice, but because I've been asked directly, I'll say it doesn't specifically say Anchorage in the language. It says municipalities with a population of 200,000 or more.

Which I believe actually does resolve the equal protection issue because we do have different rules for rural communities, for example. We have different ways to do school funding. We have a lot of different rules in different parts of this, of this, this state. Were an amendment to be offered for other localities to make this optional— and it hasn't been mandatory forever, let's be clear, and we're expanding what is mandatory to non-food-producing items. I would certainly support that.

But, you know, I'm working in my community. I understand my tax cap. And I think an optional program actually would make more sense for the whole state. But because we were working in a time-constrained manner and I was speaking with folks in Anchorage and thinking about the ways it would specifically impact my community, I wrote it for 200,000 or more. That's the answer.

Thank you, Mr. Chair. Thank you, Senator Dunbar, for answering that question. Is there further discussion on Amendment Number 1?

Madam Majority Leader, uh, and wrap up. Thank you, Mr. President. Mr. President, I stand in support of agriculture all over our state. This amendment is a targeted amendment. It is making sure that there This applies to all areas of our state.

It is a reduction in tax rate that the municipalities themselves control. It also is consistent with state policy, Mr. President. I don't support exempting Anchorage from this legislation. I think a statewide agricultural policy should be applied uniformly across all municipalities. Anchorage is not separate.

From Alaska's agricultural system. It's central to it. So excluding Anchorage would ignore that reality. Mr. President, I stand in support and ask for a yes vote on Amendment Number 1. Thank you, Senator Giesel.

Is the objection maintained? Yes. The objection has been maintained. If you are ready for the question, the question being Shall the Senate adopt Amendment Number 1? Senators may proceed to vote.

The Secretary will now lock the roll. Do any Senators wish to change their vote? And the Secretary will announce the vote. 15 Yeas, 5 nays. And so by a vote of 15 yeas to 5 nays, Amendment Number 1 has passed the Senate.

Madam Secretary. I have no further amendments. That brings the bill back before the Senate in third reading on final passage. Thank you. We are back in third reading.

Senator Bjorkman, to carry your bill.

Thank you very much, Mr. President. I'll reprise a bit of my remarks from earlier and be brief by saying the bill before us seeks to ensure that farmers across the state are able to grow food and that they can be secure in what it is that they are doing and not overly burdened by property taxes. This bill clarifies the work that we did in the last legislature to make sure that farms that file their taxes as S corporations are able to receive this property tax deferment. It was an oversight working with stakeholders on the last bill that we left out farms that file as S corporations. We heard information from those stakeholders in the Farm Bureau that farmers file a Schedule F to their 1040 and that would be sufficient.

However, we learned as the process moved forward that there was also many folks who filed as an S corporation and such, they need to be able to qualify for this deferment as well. Also, around the state and in my community on the Kenai Peninsula, I learned of many people who grow flowers as well as vegetables. And this is a very strategic decision that many farmers make to supplement their income, but also to serve as a hedge against weather. We had a very, very bad winter on the Kenai Peninsula recently, not this past winter, but the winter before, which killed a significant portion of the peony crop there. And in response to that, and even before that, farmers had been starting to grow more vegetables to kind of shore up their farm income.

And as they grow vegetables alongside of flowers, having a system that incorporates the ability to have a property tax deferment for both flowers and vegetables streamlines that process and allows the process to more orderly move forward so that the deferment can be in place. And we're not out having an assessor measure how much How much soil did you use to grow the vegetables and how much did you use to grow the flowers? Having a unified system makes, makes a lot of sense. Also, when folks are growing hay for horses, when they're growing feed for those horses, they're farming the ground. They are tilling the soil and making that ground good for growing food.

That secures agriculture in our state. That's more of what we need. I like farms. Please vote yes. Thank you, Senator Bjorkman.

Senator Dunbar. Under discussion. Yes, thank you, Mr. President. Um, you know, it's unfortunate the way that this has, uh, unfolded on the floor today. Uh, I, I believe I, I could have supported this bill, um, had it provided more local control and local options.

I have in the past spoken in favor of local control, and I still feel that way. The, the member of Juneau mentioned that Perhaps this should apply in other localities. I, I agree, that kind of local control. Um, the truth is we don't know how many additional properties will be included. Now we do this expansion, we're expanding beyond just food.

Producing properties to horse farms, to flower farms, potentially to other commercial operations and commercial greenhouses. And for that reason, this, this bill is of course opposed by the Alaska Municipal League. Permission to read, Mr. President? Without objection, so ordered. This, this is a letter dated March 25th from the Alaska Municipal League.

From municipal perspective, this is a significant policy change. It moves the bill beyond a narrow food security rationale and toward a broader tax preference for a wider range of private business activities. This is an expansion in principle, not merely a clarification. The targeted response to support food production is now broad and imprecise. The intent to support small, local agricultural producers is lost in the broadness of this bill.

The shift away from a clearly food-oriented standard, combined with the broader inclusion of horses and flowers, risks turning a limited policy into a subsidy for certain businesses rather than a focused measure to strengthen local food systems. So, uh, again, with that being said, I, I still might have been willing to support this, um, were there an ability for local governments to decide whether or not they wanted to put forward this potentially very large expansion. And I'll say there are a number of us that are working for affordable housing in Alaska. I think that is a shared goal by many folks. I like affordable housing.

I want to build more affordable housing. And so myself and others have put forward a number of proposals in this building. And every time we have done so, we've been told by not everyone, but by most folks, you have to make it a local option. Do not mandate that cities and municipalities do this. If we're going to be changing municipal tax code, which is what this does, you must make it— available for local control.

You must provide that optionality. And now here we are. And it turns out that local control isn't actually a value that we share as much. To quote Animal Farm, it turns out all animals are created equal, but some animals are more equal than others. And maybe affordable housing just isn't as valued.

And so we can't mandate that. And because I am worried about the impact, particularly on my community, and I wanted that optionality— ultimately, it did not— the work we did in resources did not exclude did not exclude this from the ability to, to provide this tax deferment. What it did is say this local government should have the control. And because I do not like it when the state government mandates things on municipal property taxes, and maybe I'll have to grow to like it now that that's the new policy, I unfortunately have to vote against this bill. Thank you, Mr. President.

Thank you, Senator Dunbar. Is there further discussion? Senator Giesel. Thank you, Mr. President. Mr. President, it is true Anchorage doesn't have a very diverse revenue portfolio.

However, Anchorage area farmers, through this property tax reduction, will support economic development and diversification as well as value-added manufacturing. An example is Far North Fungi, or fungi, I'm not sure how to pronounce that word, not only grows and sells mushrooms, but they also produce tinctures and other value-added health products. Rhodiola has opportunity to expand processing and manufacturing. The P&E industry is working on oil extracts that can be used in pharmaceuticals and food additives as well as cosmetics. These all need processing and manufacturing.

They also don't take acres and acres of land, Mr. President. Personally, I'm all for hay production for horses. Not because I have a horse, but this— the food— or keeping the costs down for farmers expands these kinds of operations even on small pieces of property such as might be found in Anchorage. So I do support this bill, Mr. President. Thank you.

Thank you, Senator Giesel. Is there further discussion?

Senator Bjorkman, wrap up.

Thank you very much, Mr. President. Appreciate the discussion today. It's important to note that under the mandatory provisions of the farm use and farm tax deferment program, that every community has the option and the flexibility to set their own farm use rate.

The assembly and the assessor can work together to set what the farm use rate is. That's local control. Taking away a tax deferment program that encourages agriculture, and agriculture that might not grow food directly but definitely supports the growth of other food on farms, it's a pretty dangerous precedent to set. When we passed the bill, it was included in Senate Bill 160— 179 in the last legislature. We repealed that deferment program for flowers and horses, and I supported that.

And that was a mistake that I made. And I came to understand that when farmers are growing hay for horses and when folks are growing flowers, when they are doing that, they support growing food as well. Because like I mentioned earlier, oftentimes those flowers grow right next to vegetables in one plot over. The hay for horses is supporting other horse functions that are growing food. And those things, keeping the law uniform and consistent, just as it was in law for many years before 2024, is a great way to promote substantial and strategic food security policy here in Alaska.

So that's why I think we need to highlight and think about if municipalities feel that they are squeezed by the farm tax deferment program. They can and do have the local option to set the farm use rate for what that does. And I would hate to think, Mr. President, that we would, we would seek to deny people a deferment because they think differently than we do, or that maybe we just don't like one economic activity over another.

I think it's pretty important that we value food production and security here in our state. We move forward with a small— again, it is, it is a very small on balance of what the total budget is for these municipalities when we talk about deferred revenue. But it's a big deal to those farmers, and that's why I urge members to vote yes. Thank you. Thank you, Senator Bjorkman.

If you are ready for the question, the question being, shall CS for Senate Bill 200 Resources as amended has passed the Senate. Senators may proceed to vote.

The secretary will lock the roll. Do any senators wish to change their vote? The secretary will announce the vote. 18 Yeas, 2 nays. And so by a vote of 18 yeas to 2 nays, CSRS Senate Bill 200 Resources as amended has passed the Senate.

There's an effective date. Madam Majority Leader. Mr. President, I move and ask unanimous consent that the vote on the bill be considered the vote on the effective date clause. Thank you. Hearing no objection, the effective date clause has been adopted.

Madam Secretary, please read the next item on today's calendar. House Bill number 48, an act relating to appropriations to the Civil Legal Services Fund, before the Senate in third reading on final passage. Thank you. Senator Dunbar.

Thank you, Mr. President. Speaking a little bit more than usual today. I'll keep this brief. I rise today in support of HB 48, a bill to increase funding for the Alaska Legal Services Corporation, a statewide organization that is a crucial piece of our social safety net. Alaska Legal Services, or ALC, provides free civil legal assistance on issues ranging, ranging from family law to public benefits to Alaska Native law and more.

Importantly, they are the largest provider of free legal services to Alaska's survivors of domestic violence. Mr. President, while the number of low-income individuals eligible for services has increased in the years since ALC was founded, the state's funding is only a fraction of what it once was. As a result, ALC must turn— currently turn away roughly 50% of applicants.

ALC is funded through a combination of public and private funds, with the state's portion coming primarily from the 10% of court filing fees that are deposited into a statutorily mandated civil legal services fund. HB 48 will amend the relevant statute, increasing the percentage dedicated to the Civil Legal Services Fund to 25% of those fees. I'll note that the court system is not opposed to this change because none of those filing fees are currently designated for the judiciary. Furthermore, we have received letters of support from the AARP, Cook Inlet Housing Authority, the Alaska Children's Trust, and the Alaska Federation of Natives. Uh, ALC is often where other organizations send their most vulnerable clients when they can't get help they need or the services they require.

Passage of this bill will help ensure that struggling Alaskans, particularly survivors of domestic violence, will have access to legal aid and legal aid in times of crisis. Thank you, Mr. President. I urge support for HB 48. Thank you, Senator Dunbar. Is there further discussion?

Seeing none, if you are ready for the question. The question being is, shall House Bill 48 pass the Senate? Senators may proceed to vote.

The secretary will lock the roll. Do any senators wish to change their vote? The secretary will announce the vote. 17 Yeas, 3 nays. And so by a vote of 17 yeas to 3 nays, House Bill 48.

Has passed the Senate. Madam Secretary, please read the next item on today's calendar. Citations honoring Dick Randolph. Madam Majority Leader. Mr. President, I move and ask unanimous consent that the citation on today's calendar be approved.

Hearing no objection, the citation is approved. Madam Secretary. There are no further items for consideration on today's daily calendar. Thank you. Is there unfinished business at this time?

Unfinished business, Senator Giesel. Mr. President, I move and ask unanimous consent that you, Senator Stevens, and I, Senator Giesel, be excused from May 30th AM plane time through June 3rd evening plane time for state business and not subject to a call of the Senate. I have a second motion as well. Without objection, so ordered then. Senator Giesel.

My second motion, Mr. President, is to move and ask unanimous consent that Senator Olson be excused on May 7th evening plane time through May 8th evening plane time for personal business and not subject to a call of the Senate. Thank you. Without objection, so ordered. Senator Gray Jackson. Thank you, Mr. President.

I move and ask unanimous consent to be shown as a cross-sponsor on HB 126 regarding reinstatement of Native corporations. Thank you, Mr. President. Thank you very much. And Senator Diesel to that, Senator Clayman, Senator Cronk. Senator Merrick— no, not Senator Merrick— and Senator Stevens.

Thank you. Senator Cronk. Thank you, Mr. President. I move and ask unanimous consent to be listed as a co-sponsor on Senate Bill 230, the Jonesville Public Use Area. Without objection, so ordered.

Along with Senator Yunt, Senator Merrick. Thank you. And then Senator Merrick. Thank you, Mr. President. I have two House bills to cross-sponsor.

I move and ask unanimous consent to be a cross-sponsor on House Bill 36 regarding foster children and psychiatric treatment. Without objection, so ordered. We will add to that Senator Kawasaki, Senator Giesel, Senator Gray Jackson, Senator Steadman, Senator Dunbar— I'm sorry— and Senator Clayman. Thank you, Mr. President. I move and ask unanimous consent to be listed as a cross-sponsor for House Bill 52 regarding regarding minors and psychiatric hospitals.

Thank you, Senator. We will also add Senator Giesel to that, Senator Gray Jackson, Senator Clayman, Senator Stedman, Senator Kawasaki, Senator Dunbar. Thank you. Senator Hoffman, did you want to be added to that? No?

Okay. Then under unfinished business, Senator Hoffman. Mr. President, I move and ask unanimous consent that I be excused and not subject to the call of the Senate for personal business from May 21st to May 31st. Without objection, so ordered. Senator Hoffman, further unfinished business?

Seeing none, are there committee announcements? Seeing no committee announcements, are there any other announcements?

Senator Rauchert. Thank you, Mr. President. I'd like to take a moment to invite colleagues and all Alaskans to join us tomorrow, Thursday, May 7th, at noon at the Alaska State Capitol near the William H. Seward statue for the National Day of Prayer. This marks the 75th anniversary of the congressional tradition I hope to see you all there. It starts at noon again.

So thank you. And a second announcement: Legislative Prayer Caucus will meet tomorrow, Thursday, May 7th, at 6— at 7:00 a.m. in the Butchavis Room, 205. All legislators and staff administration are invited. All faiths are as well. Thank you.

Thank you, Senator Rauscher. Under other announcements, Senator Keele. Thank you, Mr. President. I'd like to draw the members' attention to a flyer they were given to invite you tomorrow, Thursday, May 7th, to a photo exhibit, The Call for Understanding and Action. It's a special opportunity from 5:30 PM to 7 PM.

It's at the Indigenous Science Building, just this side of City Hall, down the hill from us. Photos and writing from more than 200,000 Southeast Alaska students, 2nd grade through 11th grade. Come, please listen and see our communities through young eyes. Thank you, Senator Kiehl. Seeing no further other announcements, are there special orders at this time?

Senator Cronk. Thank you, Mr. President. I move and ask unanimous consent for the special privilege of the floor to speak on the topic of Always a Nanook. Without objection, so ordered. Senator Crown.

Thank you, Mr. President. I wanted to recognize the UAF graduating class of 2026. This past Saturday, May 2nd, UAF held its 104th commencement ceremony at the Carlson Center in Fairbanks and issued 1,263 degrees to over 1,100 students. Preliminary numbers show that the 1,263 degrees UAF issued, 58 were occupational endorsements, 189 certificates, 216 associate degrees, 491 bachelor degrees, 23 master's degrees, 38 doctorates, and 48 recommendations for educational licensure. I'd also like to congratulate the 16 retiring staff and faculty, faculty who have been granted emeritus status.

I just wanted to take this moment to congratulate all the new graduates and retirees at UAF for all their hard work and dedication to make it to the finish line. Thank you, Mr. President. Thank you, Senator Cronk. Any additional special orders? Madam Majority Leader.

Mr. President, I move and ask unanimous consent that the Senate stand in adjournment until tomorrow at 10:30 AM. That's Thursday, May 7th, 2026. Thank you. Hearing no objection, the Senate is adjourned.