Protecting Your Rights: Serving West Anchorage

March 22, 2024

In this issue:


  • The vote to override the Governor's vetoes fails
  • Mental Health Legislation passes the Senate
  • Bipartisan Vehicle Rental Tax Legislation
  • Community Information





Dear Friends and Neighbors,


On Monday, the veto override vote on the Governor's veto of Senate Bill 140 failed by one vote. The Legislature will keep working to increase school funding despite this setback.


In better news, the Senate voted to pass Senate Bill 24, a bill that reasonably combines mental health with physical health in public school health classes.


And finally, one of our bills, Senate Bill 127, passed the Senate on Monday. This bipartisan legislation will help Turo owners comply with existing state vehicle rental tax law by requiring Turo to collect and remit the tax on behalf of vehicle owners. This legislation will protect the Turo vehicle owners from onerous back taxes.

Legislature Fails to Override the Governor's Veto

The final vote to override the Governor's vetoes failed by just one .

On Monday, I voted to override the governor’s veto of Senate Bill 140. The override failed 39-20 in a joint session of the House and Senate. 40 votes were required to override. I’m disappointed that the Legislature failed to override the governor’s veto, especially by a single-vote margin.

 

The governor’s veto is particularly troubling for rural school districts. SB 140 was meant to secure federal funding for rural broadband to increase internet speeds for eligible schools. To receive funding, we must meet an end-of-March deadline.


We are working to pass less-complicated legislation that will help secure federal funding for rural broadband by the end-of-March deadline. And I will continue to work with my colleagues to increase funding for public education. Public education is our best investment in Alaska’s future.

Legislation Updates in the Senate

Vehicle Rental Tax Update Protects Turo Owners from Onerous Back Taxes

On Monday, the Senate passed SB 127, bipartisan legislation introduced by our office, by a vote of 15-4.


Currently, Alaska levies a 10% tax on all passenger vehicle rentals. While traditional car rental companies like Hertz, Avis, and Enterprise have collected this tax from their customers for years, the newer vehicle rental platform companies like Turo do not collect this tax on behalf of their vehicle owners. Many Alaskans renting cars through Turo are not aware they owe the tax, and it has been challenging to collect the tax without Turo's cooperation.


Senate Bill 127 will require Turo to collect the vehicle rental tax. It does not create a new tax. In fact, it lowers the tax rate to 8% for vehicle rental platforms like Turo, while keeping the rate at 10% for traditional rental companies.


Importantly, the bill protects Turo owners who haven't been collecting the tax by preventing the Department of Revenue from going after Turo owners to collect back taxes from previous years.


The revenue from the vehicle rental tax is historically appropriated to the Department of Transportation and that Alaska State Parks. It makes good sense that the folks who are renting cars to drive on our roads and visit our parks also pay to help maintain those services.

The Senate Passes Mental Health Education Bill


Last week, the Senate passed legislation to help address the youth mental health crisis. Senate Bill 24, sponsored by Senator Elvi Gray-Jackson, would require the State Board of Education to develop guidelines for including mental health along with physical health in public school health classes.

 

Good mental health is an essential part of good physical health. Unfortunately, the rates of depression and suicide among our youth have increased dramatically over the past few years. In 2019, suicide was the leading cause of death for Alaskans aged 15-24, and 22% of high school students reported planning a suicide attempt in the past year. These numbers are concerning to every Alaskan.

 

Including mental health education in public school health guidelines will help de-stigmatize mental health and equip our youth with the tools they need to thrive. Importantly, this bill does not make massive changes to our education system. With a total cost of only $256,000, this bill makes an important addition to Alaska's curriculum without overhauling our current model.

Reducing the Legislature's Override Threshold for Budget Items


This week, the Senate State Affairs Committee advanced Senate Joint Resolution 15, a resolution that we introduced to amend the Alaska Constitution to lower the veto threshold for a budgetary veto override so that it's the same as all other legislation.


When the Governor vetoes a bill passed by the Legislature, the Legislature can vote to override that veto. For non-spending bills, the constitution requires a 2/3 vote, or 40 out of 60 Legislators voting yes. For appropriations bills, however, that threshold is 3/4, or 45 out of 60 legislators. This 3/4 threshold on appropriation bills is the highest in the country, and it gives the executive branch disproportionate power over appropriations. SJR 15 would call for a statewide vote to decide whether to lower the veto override threshold from 3/4 to 2/3.


You can read more about our proposed resolution in this recent ADN article.

Community Information


Municipal Ballots

The Anchorage Municipal Election is Tuesday, April 2nd.


The League of Women's Voters published a helpful guide to candidates and propositions on the ballot. You can view their guide at this link:


League of Women Voters Anchorage


To vote in this year's election, you must return your ballot by mail (postmarked by April 2nd) or in one of the Municipal drop boxes. Check out the Muni's elections webpage or call 907-243-VOTE (8683) if you have questions.

Community Events


Mark your calendar for these upcoming events:


City Nerd Nite

Join for a night of finance fun at City Nerd Nite: Money Money Money! Just in time for First Quarter Budget Revisions, come down to King Street Brewing Company for an evening of nerdy discussions about all things public finance: bonds, taxes and budgets! Grab a drink, meet fellow money nerds, and expand your financial knowledge. I will be there to talk about the alternative avenues to fund public education.

When: Thursday, March 28th from 6:00 - 8:00 PM

Where: In person at King Street Brewing (9050 King Street Anchorage, AK 99515). Click here for details.

Spenard Community Council

When: April 3rd from 7:00 - 8:00 PM

Where: In person at Spenard Rec Center (2020 W 48th Ave, Anchorage AK 99517). Click here for details.

Turnagain Community Council

When: April 4th from 6:30 - 9:00 PM

Where: Online via zoom. Click here for details.

As always, please let us know if you have any questions or concerns.


Sincerely,

Sen. Matt Claman

CONTACT INFORMATION

(907) 465-4919

Sen.Matt.Claman@akleg.gov

State Capitol Bldg. Rm 429

Juneau, Alaska 99801

https://www.alaskasenate.org/matt-claman/

CONTACT THE GOVERNOR
(907) 465-3500
550 West 7th Ave. Suite 1700
Anchorage, Alaska 99501
STATE OF ALASKA
State Info: (907) 269-5111
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