Alaska Legislature: Senate Floor Session - July 16, 2026 11:00am

Will the Senate please come to order?

Looking around, you much look like— much like you did in January when we first started this, and here we are in July. It's a pleasure to see you all. Members, please signify your presence by voting.

The roll shows 19 members present. Thank you, Madam Secretary. With 19 members shown as present, we have a quorum to conduct business. For members' and public information, No notice of reconsideration may be given on a conference committee report. Madam Majority Leader.

President, I move and ask unanimous consent that Senator Bjorkman be excused today and not subject to a call of the Senate. Thank you. Hearing no objections, Senator Bjorkman will be excused. The invocation will be given this afternoon by Senator Clayman. Members, please rise.

Just a moment while I get some reading assistance.

With respect for the religious beliefs of all Alaskans, were she still alive today, my mother would have turned 100 last month on June 29th, and I offer one of my mother's favorite prayers. We are thankful for our many blessings, for our families and friends, and for the opportunity for public service. As we move forward on this day, let us remember the lesson of the Good Samaritan who stopped to help an injured man by the road who others had walked past. Ask not what will happen to me if I help this man. Ask what will happen to this man if I do not help him.

On this day when so many in our country are descendants of immigrants, may we reflect on those who are navigating the green card immigration process. May they have peace that surpasses all understanding during the waiting. May every document be processed safely. May every officer be filled with fairness. And may every case move forward without delay.

I pray that their steps be wise and their families thrive. Let us reflect on the common mission of all religions around the world: to feed the hungry, find homes for the homeless, heal the sick, fix the broken, Help everyone find a place for love in their heart and peace in their lives. And finally, let us remember the message from the angels when they appear in Scripture: Have no fear. Have no fear. I ask all these things in the name of all those present and absent, remembered and forgotten, all who are helpers of mankind, as we may say together, Amen.

Senator Tolman, would 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 Tolman. Will the Secretary please certify the journals? I certify as to the correctness of the journal for the 30th day of the 2nd special session, for days 1 through 26 of the 3rd special session. Thank you, 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. Mr. President, I move and ask unanimous consent that the prayer be spread on the journal. Thank you, Senator Hoffman. Seeing no objection, the prayer has been spread upon the journal.

At this time, are there guests for introduction? Senator Kaufman. Thank you, Mr. President. Yes, I'd like to introduce today my wife, Zahn, and my daughter, Minthu. We've navigated the whole immigration process successfully, and they're here on permanent resident status now.

And I tell you, I've never felt so reassured in a spouse. She's had a criminal background check, full physical, Immunizations, I mean, they're checked out. So we know all that's good. So Xan, my wife, is an incredible cook, an amazingly hardworking woman. She— her parents died early and she raised her brothers and kind of, you know, pulled all that up by the bootstraps.

Had a restaurant that got destroyed by the closure responses to COVID and just been through a lot of things and is a remarkable character, resilient character, strong. And I'm so proud to have her as my wife. And my daughter, Mintu, is an excellent student and very artistically inclined. Her handwriting will make you never want to touch a pen again in your life. It's just amazing.

And she's very interested in in science, technology, and the arts. And she's going to be enrolling in South High School now. We were service, but we've gotten redistricted. So we're looking forward to getting all that going and, you know, living life in Anchorage. And then, of course, I'll, I'll come here and probably they'll come down spring break and we'll be able to be together again.

And hopefully Mintu can do the guest page process and all that stuff and have the full experience. So if you would, please welcome my wife and daughter to the Senate.

Mr.

President, just—. Yes, please continue, Senator. I forgot to mention, the gown my wife is wearing is the traditional ao dai, which is a traditional form of dress in Vietnam. And it's part of the respect for their enduring culture through all the adversity that it's seen. So she wears it today not only as an expression of her culture, but an expression of respect to ours.

So thank you. Thank you, Senator Kaufman. And your daughter is a great translator as well. Her English is quite wonderful. Other guests for introduction?

Seeing none, Madam Secretary, are there messages from the governor? Message dated June 30th stating, under the authority of Article 2, Section 17 of the Alaska Constitution, I have let the following bill become law without signature. Senate CS for CS for House Bill 173, Finance Amended Senate Licensure Occupational Physical Therapy Speech Audiology Chapter 41, SLA 2026. Message dated June 30th stating, under the authority of Article 2, Section 17 of the Alaska Constitution, I have let the following bill become law without signature. Senate Committee Substitute for House Bill 216, Community and Regional Affairs, Transfer of Railroad Land to Whittier, Chapter 42, SLA 2026.

Message dated June 30th, stating under the authority of Article 2, Section 17 of the Alaska Constitution, I have let the following bill become law without signature. House Bill 243, Barbers and Hairdressers Board Licensing, Chapter 43, SLA 2026. 2026. Message dated June 30 stating, under the authority of Article 2, Section 17 of the Alaska Constitution, I have let the following bill become law without signature: House Bill number 244, Certified Nurse Aide Training, Chapter 44, SLA 2026. Message dated June 30 stating, under the authority of Article 2, Section 17 of the Alaska Constitution, I have let the following bill become law without signature: House Bill 246, Special Education Service Agency, Chapter 45, SLA 2026.

Message dated June 30, stating under the authority of Article 2, Section 17 of the Alaska Constitution, I have let the following bill become law without signature. House Bill 262, Number of Superior Court Judges, Chapter 46, SLA 2026. Message dated June 30, stating under the authority of Article 2, Section 17 of the Alaska Constitution, I have let the following bill become law without signature. CS for House Bill 388, Finance, Bulk Fuel Loan Account, Chapter 47, SLA 2026. Message stated June 30th, stating under the authority of Article 2, Section 17 of the Alaska Constitution, I have let the following bill become law without signature.

HCS CS SB 86, Finance, Money Transmission, Virtual Currency, Chapter 48, SLA 2026. 2026. Message dated June 30 stating under the authority of Article 2, Section 17 of the Alaska Constitution, I have let the following bill become law without signature. Senate Bill 252, Uniform Commercial Code, Secured Transactions, Electronic Records, Chapter 49, SLA 2026. Message dated June 30 stating under the authority of Article 2, Section 17 of the Alaska Constitution, I have let the following bill become law without without signature.

House Committee Substitute for Committee Substitute for Senate Bill 249, Labor and Commerce, Virtual Currency Kiosks, Chapter 50, SLA 2026. Message dated June 30th stating, under the authority of Article 2, Section 17 of the Alaska Constitution, I have let the following bill become law without signature. CSHB 221, State Affairs, Alaska Arts and Culture Day, Chapter 51, SLA SLA 2026. Message stated June 30th, stating under the authority of Article 2, Section 17 of the Alaska Constitution, I have let the following bill become law without signature. Senate Committee Substitute for Committee Substitute for House Bill 302, Transportation, amended Senate Travel Insurance Unemployment Benefits, Chapter 52, SLA 2026.

Message stated June 30th, stating under the authority of Article 2, Section 17 of the Alaska Constitution, I have let the following bill become law without signature. Committee substitute for Senate Bill 163, Labor and Commerce, Repeal Certain Inactive Funds Accounts, Chapter 53, SLA 2026. Message dated June 30th stating under the authority of Article II, Section 17 of the Alaska Constitution, I have let the following bill become law without signature. Senate Bill number 181, Employment Information Disclosure, Chapter 53, Chapter 54, SLA 2026, message dated June 30th, stating under the authority of Article 2, Section 17 of the Alaska Constitution, I have let the following bill become law without signature. CSSB 237 Judiciary amended House re-engrossed electronic driver's licenses data sharing.

Chapter 55, SLA 2026, message dated June 30th, stating under the authority of Article 2, Section 17 of the Alaska Constitution, I have let the following bill become law without signature. HCS/CS SB 282, State Affairs, Military, Joint Armed Services Committee, Chapter 56, SLA 2026. Message dated July 13th stating under the authority of Article 2, Section 17 of the Alaska Constitution, I have let the following bill become law without signature. House Bill 14, amended Senate, effective date added Senate, Medical Assistance Assistance, Insurance, Disability, Workers' Comp. Chapter 57, SLA 2026.

Message dated July 2 stating, under the authority vested in me by Article 2, Section 15 of the Alaska Constitution, I have vetoed the following bill: Senate Bill 63, amended, Local Boundary Commission. Message dated July 9 stating, under the authority vested in me by Article 2, Section 15 of the Alaska Constitution, I have vetoed The following bill: CSHB 16, State Affairs, amended Senate, effective date failed House. Campaign finance contribution limits, APOC. Those are all the messages from the governor this afternoon, Mr. President. Thank you, Madam Secretary.

The governor has been very busy while we were gone. Are there messages from the House? I have no messages from the House this afternoon. Thank you. Are there communications?

The following report is on file. From the Department of Commerce, Community and Economic Development, Alaska Seafood Marketing Institute Annual Report, fiscal year 2025, in accordance with AS 1651-100. Those are all the communications this afternoon. Thank you. Are there reports of standing committees?

I have no standing committee reports today. Thank you. And are there reports of special committees? Message dated June 26th. Mr. President, Mr. Speaker: The conference committee considering CS for House Bill 381 Finance amended and Senate CS for CS for House Bill 381 Finance amended Senate Oil and Gas Property Tax Municipal Tax AGDC respectfully requests limited powers of free conference on the language that is not identical in the House and Senate versions of HB 381.

Signing the request: Representative Schragg, Chair, Representatives Edgeman, Ruffridge. Senator Hoffman, Chair. Senators Steadman, Cronk. Thank you, Madam Secretary. I'm granting the limited powers of free conference as requested.

Madam Secretary.

Conference Committee report received in the Senate July 16th at 11:39 a.m. Mr. Speaker, Mr. President, the Conference Committee with limited powers of free conference considering CS for House Bill 381 Finance amended Senate CS for CS for House Bill 381 Finance Amended Senate Oil and Gas Property Tax Municipal Tax AGDC recommends conference committee substitute for House Bill 381 be adopted. Signing the report: Representative Schraggy, Chair; Representative Edgeman; Senator Hoffman, Chair; Senators Steadman, Cronk. Thank you, Madam Majority Leader. Mr. President, I move that the Senate adopt the conference committee substitute substitute for House Bill 381 and recommend that members vote yes. Thank you, Senator Hoffman.

You have a lot of explaining to do here. Yes, Mr. President. May we have a brief at ease? A brief at ease.

Will the Senate come back to order, please? Uh, Senator Hoffman, you were about to explain the changes. Please continue. Yes, Mr. President, I passed out H— it's entitled HB 381 Summary of Changes from the Senate Floor, S.A.2CS, the conference committee E. Many of them are technical. I think they're self-explanatory.

The biggest change that everyone is well aware of is the inclusion of the S corp provision. Thank you, Mr. President. Thank you, Senator Hoffman. Is there discussion?

If you are— Senator Yunt. Ah, thank you, Mr. President, for giving me a brief moment here to visit with you about HB 381 and I think maybe touch on where many of us are at. You know, I really wish that this bill had been given to us last year. I think a lot of us do. Not receiving something— this is arguably the fourth most consequential piece of legislation in the history of the state behind statehood, TAPs, and the PFD.

And more time would have been nice, but unfortunately that just wasn't the cards that we were dealt. And so, you know, I was very very proud to vote for this bill last month, not because I thought it was perfect or even that I thought it was really that good, but because I knew it would lead to conference committee and that we would have another crack at it.

And so I got no regret with that. But I can tell you, as a proud father to 6 beautiful kids, a lot of nieces, and coach to hundreds and hundreds, actually well over 1,000 wrestlers, I have in my life seen a few ugly babies. And I will never admit to them which ones they were, but what I will tell you is they all grew up to be very beautiful, productive members of society. And that's where I think this bill could go. It's got a little bit of an odor.

We need to change its diaper. Does that mean another special session? Does that mean the powers of free conference? I'm not quite sure, but I know everyone here is willing and ready to get back after it, so I do hope that we we continue on with this. I will be a no vote today because it's got a bad odor.

Thank you, sir. Thank you, Senator Young. Senator Clayman. Thank you, Mr. President. I rise to make some comments about the legislation, and I speak in particular because I remind myself regularly that we both think about the state as a whole, but we also represent our districts.

And I have a very interesting district with the general My perspective is not— I mean, I know there's individuals, but in large measure I look at the southern half of my district and I think about how the southern half really dislikes the S corp provisions but likes the portions about the gas line. And I look at the northern half of my district and they like the S corp provisions but they dislike the gas line provisions. So I largely see my district as very sort of divided on what to do about this bill. I am continually troubled, as I've said before, that much of the discussion has been what they call the Hillcorp loophole and suggesting that in our existing tax structure here in Alaska there was some loophole created for Hillcorp when it bought the BP assets and became one of the major operators on the North Slope. But of course there was no loophole.

They were set up as a limited liability company. Company like over 11,000 companies in Alaska and because we have no personal income tax, when they came to Alaska there was no tax on them. There was no loophole. They came up with the existing structure. And if we wanted to talk about a loophole, we could talk about a Moose's Tooth loophole for the pizzeria in Anchorage that is an LLC that I think is quite profitable and keeps building more restaurants around the city.

We could talk about a Mount Alyeska loophole because They too are set up as the kind of company that doesn't pay corporate taxes but instead would be taxed if there was a personal income tax, but we don't have that. We could talk about the Pikes Waterfront Lodge loophole. They too are an LLC or a different form that is not paying taxes. And we could talk about countless construction companies and enterprises across the state that are not paying taxes because they're set up as as the kind of companies that are not what we call C corporations in the tax world. So these are all entities that don't pay taxes.

So it's not a Hillcorp loophole, it's almost every business in Alaska loophole. The only real exception is marijuana businesses. And the marijuana businesses that start out today typically do set up as what we think of as traditional corporations because their personal liability issues, because they're selling marijuana, is illegal federally makes it very appealing for them to be set up with a corporation so they have the protections that those provide. So I have continued to be troubled by the discussion about closing the S corp loophole because we have 11,000— way more than 11,000 that will not have that loophole closed. This is just really targeted at 1 or 2 or 3 businesses that are in the oil industry.

And the vast majority of the income they provide to of the state for state revenue are in royalties and production taxes, not in any kind of corporate taxes as some of the other providers. So I find myself very, very troubled by that structure. I have always said I'm pro-choice, and part of being pro-choice means a business gets to come to the state and pick what kind of entity they're gonna have. So the S corp provisions of this legislation continue to trouble me, and it, And that also is reflected in the division that I see within my district. I also recognize the importance, Mr. President, as you and I have spoken about, the importance when we— in the majority that we work together.

So I'm going to reflect carefully on this vote. I do think this bill is, as I think many have said, far less than perfect. It raises in some respects more questions than answers. I was concerned that we never heard from Department revenue during the conference committee meeting this morning. So all those things are concerns of mine.

I am pleased we are going to take a vote on this bill and see what happens from here. Thank you very much, Mr. President. Thank you, Senator Clayman. Is there further discussion?

I'm sorry, Senator Kaufman. Thank you, Mr. President. I appreciate the the comments from the senator next to me with regards to the negative way of calling a very productive company's presence here a loophole, as if it's somehow to be discredited. And instead of the bill that we should have been working on, I believe, to deal with the tax treatment to enable the lifeblood of energy in Alaska for its citizens and the potential for monetizing that and really changing the game fiscally for the state became instead a bit of an attack on the ongoing situation that we have, which if we want to try and resolve our tax structure broadly with respect to the S corp, that's a worthy issue. Do it separately.

But I believe this bill should have been about trying to enable the gas line, keep it as tight as we could to this subject, and not veer off into the other issues that end up thwarting or at least stalling it. So I hope we can get there. I guess I don't think this will be it, so I'll be a no on this. For the reasons that I've mentioned. And I don't know how we're going to get there, but I certainly hope we do because, well, we have pro-choice.

I'm pro-life. I'm pro-life of the state of Alaska. And it takes energy to do that. We need to be pretty clear with what it takes to deliver it. But we've got people that will complain about $100 a barrel oil, but they'll gleefully pay hundreds of dollars a barrel equivalent for a sports drink, which is mostly water.

So in an energy state, we need to get our, our heads clear about how we produce the energy, what it does for the state, and all of the benefits that increased production that we've gotten from the companies that have been working hard to deliver it, and not veer off into that when we're really just trying to bring at least durable economic gas to the state hopefully get to an even higher operating state with the process of monetizing that as LNG. Thank you. Thank you, Senator Coffman. Is there further discussion?

Senator Hoffman, wrap up. Very well. If you are ready for the question, the question being: shall the conference committee substitute for House Bill 381 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. I'm sorry, Senator Clayman. Nay to yea. Senator Clayman, nay to yea.

And now will the Secretary lock the roll? And will the Secretary announce the vote? 11 Yeas, 8 nays. And so by a vote of 11 yeas to 8 nays, the Conference Committee substitute for House Bill 381 has passed the Senate. Madam Majority Leader.

Mr. President, I move the effective date clause Hearing no objection, the effective date clause has been adopted. Sorry. I'm sorry, we need to take a vote on that. If you are ready for the question, the question being, shall the effective date be adopted?

Senators may proceed to vote.

The Secretary will lock the roll. Now we lock the roll. Do any Senators wish to change their vote? The Secretary will announce the vote. 19 Yeas, 0 nays.

So by a vote of 19 yeas, 0 nays, the effective date— the effective date clause has been adopted.

Madam Secretary, are there any Senate resolutions for introduction? I have no Senate resolutions for introduction today. You are the Senate Bills for introduction? There are no Senate bills for introduction. Under consideration of the daily calendar?

There are no items to consider on today's daily calendar. Thank you. Is there unfinished business?

Yes, please, Senator Kelly. Thank you, Mr. President. I ask unanimous consent to be excused from a call of the Senate on Thursday, August 20th through Sunday, August 30th. I think without objection. So ordered.

Senator Kaufman. Thank you, Mr. President. To speak on the subject of unfinished business. Yes, under unfinished business, yes. Unfinished business is— I forgot to mention what this is, and I apologize to anyone that may have thought it was ophthalmic ointment, because that would go terribly wrong.

This is a kind of a clove-based cream, an ointment that's used in Vietnam. If you've ever seen the movie My Big Fat Greek wedding where the father's spraying Windex on everything. This is kind of the Vietnamese equivalent. It's good for everything. I don't care if a mosquito bites you or if you've got some aches or pains or if you've got stuffed nose, just rub a little on your lip and you breathe it in.

And so it's kind of a clove-based thing. My wife wanted everyone here on the floor today to have a little piece of Vietnam, so we brought these back. So that's what this is all about. Thank you. Thank you, Senator Kaufman.

At least we stopped Senator Rauscher from swallowing it. So— Senator Clayman.

Thank you, Mr. President. I move and ask unanimous consent to be excused from a call of the Senate from Saturday, July 25th through August August 24th and also from August 22nd through September 3rd. Thank you, Senator Keele. Thank you, Mr. President. I move and ask unanimous consent that I be excused and not subject to a call of the Senate from morning ferry time August 14th to evening ferry time August 24th for personal business.

Thank you. Objection is ordered. Senator Keele and Senator Clayman, if I didn't say that. Senator Hoffman. Mr. President, I move and ask unanimous consent that I be excused from the call of the Senate for the rest of my life.

And we hope that's a very long time. Senator Dunbar. Thank you, Mr. President. I move and ask unanimous consent to be excused from the call of the Senate from July 31st until August 2nd for other state business and military service. Without objection, so ordered.

Any additional unfinished business? Please go ahead, Senator Gray Jackson. Thank you, Mr. President. I move and ask unanimous consent to be excused from the call of the Senate from July 24th through August 3rd for state and personal business. Thank you, Mr. President.

Thank you, Senator Gray Jackson. Without objection, so ordered. Any additional unfinished business? Seeing none, are there committee announcements? Seeing none, are there any other announcements?

And are there special orders?

Seeing no special orders, Madam Majority Leader. Mr. President, I move that the Senate adjourn sine die. Thank you. Hearing no objection, the Senate is adjourned.