04/14/2025 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB136 | |
| SB83 | |
| SB156 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 136 | TELECONFERENCED | |
| += | SB 83 | TELECONFERENCED | |
| *+ | SB 156 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 14, 2025
1:33 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Kelly Merrick, Vice Chair
Senator Elvi Gray-Jackson
Senator Forrest Dunbar
Senator Robert Yundt
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 136
"An Act relating to the privacy of firearm transactions;
relating to discrimination against firearm retailers by
financial institutions and payment networks; relating to the
disclosure of financial records by financial institutions and
payment networks; and amending Rules 65 and 82, Alaska Rules of
Civil Procedure."
- HEARD & HELD
SENATE BILL NO. 83
"An Act relating to health care insurance; relating to insurance
reimbursement for health care services provided through
telehealth; and providing for an effective date."
- MOVED CSSB 83(HSS) OUT OF COMMITTEE
SENATE BILL NO. 156
"An Act relating to the Department of Commerce, Community, and
Economic Development; relating to the Alaska Commercial Fishing
and Agriculture Bank; relating to certain loans made by the
Alaska Commercial Fishing and Agriculture Bank; and providing
for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 136
SHORT TITLE: FIREARM FINANCIAL PRIVACY
SPONSOR(s): SENATOR(s) CRONK
03/19/25 (S) READ THE FIRST TIME - REFERRALS
03/19/25 (S) L&C, JUD
04/14/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 83
SHORT TITLE: TELEHEALTH REIMBURSEMENT RATES
SPONSOR(s): SENATOR(s) CLAMAN
01/31/25 (S) READ THE FIRST TIME - REFERRALS
01/31/25 (S) HSS, FIN
02/11/25 (S) HSS AT 3:30 PM BUTROVICH 205
02/11/25 (S) Heard & Held
02/11/25 (S) MINUTE(HSS)
02/25/25 (S) HSS AT 3:30 PM BUTROVICH 205
02/25/25 (S) Heard & Held
02/25/25 (S) MINUTE(HSS)
03/13/25 (S) HSS AT 3:30 PM BUTROVICH 205
03/13/25 (S) Moved CSSB 83(HSS) Out of Committee
03/13/25 (S) MINUTE(HSS)
03/14/25 (S) HSS RPT CS 2DP 1DNP 1AM NEW TITLE
03/14/25 (S) DP: DUNBAR, CLAMAN
03/14/25 (S) DNP: HUGHES
03/14/25 (S) AM: GIESSEL
03/26/25 (S) FIN REFERRAL WAIVED
03/26/25 (S) L&C REFERRAL ADDED AFTER HSS
04/07/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/07/25 (S) Heard & Held
04/07/25 (S) MINUTE(L&C)
04/14/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 156
SHORT TITLE: AK COMMERCIAL FISHING & AG BANK; LOANS
SPONSOR(s): RULES BY REQUEST OF TASK FORCE EVAL ALASKA SEAFOOD
INDUSTRY
04/02/25 (S) READ THE FIRST TIME - REFERRALS
04/02/25 (S) L&C, FIN
04/14/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
SENATOR MIKE CRONK, District R
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 136.
PAUL MENKE, Staff
Senator Mike Cronk
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided the sectional analysis for SB 136.
AOIBHEANN CLINE, Regional Director
State and Local Legislative Affairs
National Rifle Association (NRA)
Anchorage, Alaska
POSITION STATEMENT: Testified by invitation on SB 136.
SENATOR MATT CLAMAN, District H
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 83.
EMILY NENON, Director
Alaska Government Relations
American Cancer Society
Cancer Action Network
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 83.
SENATOR JESSE KIEHL, District B
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 156.
DOUG BLUMER, Chairman
Alaska Commercial Fishing and Agriculture Bank (CFAB)
Anchorage, Alaska
POSITION STATEMENT: Testified by invitation on SB 156.
ACTION NARRATIVE
1:33:32 PM
CHAIR BJORKMAN called the Senate Labor and Commerce Standing
Committee meeting to order at 1:33 p.m. Present at the call to
order were Senators Merrick, Gray-Jackson, Dunbar, Yundt and
Chair Bjorkman.
SB 136-FIREARM FINANCIAL PRIVACY
1:34:30 PM
CHAIR BJORKMAN announced the consideration of SENATE BILL NO.
136 "An Act relating to the privacy of firearm transactions;
relating to discrimination against firearm retailers by
financial institutions and payment networks; relating to the
disclosure of financial records by financial institutions and
payment networks; and amending Rules 65 and 82, Alaska Rules of
Civil Procedure."
1:34:49 PM
SENATOR MIKE CRONK, District R, Alaska State Legislature,
Juneau, Alaska, sponsor of SB 136, presented a summary. He
stated that over the past decade, some financial institutions
and states in the Lower 48 have used codes to track firearm
related transactions. He explained that sometimes this practice
has restricted or denied lawful purchases, which is seen as
discriminatory and a violation of Second Amendment rights. In
response, SB 136 aims to protect Alaskans' privacy and Second
Amendment rights by prohibiting financial institutions and
payment networks from discriminating against law-abiding
citizens and retailers engaged in legal firearm commerce.
1:36:18 PM
PAUL MENKE, Staff, Senator Mike Cronk, Alaska State Legislature,
Juneau, Alaska, provided the sectional analysis for SB 136:
Sectional Analysis for SB 136
"An Act relating to the privacy of firearm
transactions; relating to discrimination against
firearm retailers by financial institutions and
payment networks; relating to the disclosure of
financial records by financial institutions and
payment networks; and amending Rules 65 and 82, Alaska
Rules of Civil Procedure."
Section 1:
Amends AS 06.90 to add a new section, AS 06.90.20 that
would prevent financial institutions and payment
networks from discriminating against firearm retailers
or customers by:
-Declining lawful card transactions based on a
merchant's status as a firearm retailer,
-Limiting or declining to do business with a customer,
potential customer, or merchant for lawful firearm
transactions,
-Charging higher transaction or interchange fees for
lawful firearm transactions,
-Taking an action against customers or merchants with
the intention to impede engagement in lawful
transactions involving a firearm, firearm accessory or
component, or ammunition.
1:37:03 PM
MR. MENKE continued with the sectional analysis of SB 136:
Establishes statutory provisions that:
-Prevent the disclosure of financial records collected
in violation of AS 06.90.20,
-Give the attorney general the ability to investigate
alleged violations of AS 44.99.515, created in Section
2 of this bill and, upon finding a violation, obligate
the attorney general to provide written notice to the
violator,
-State that the attorney general may file an action to
enjoin continued violators of AS 44.99.515 after 30
days,
-Establish a maximum fine of $10,000 for knowingly
violating AS 44.99.515, and legally obligates the
court to award the attorney general or petitioner full
reasonable attorney fees and any other remedy the
court deems appropriate, if their action prevails.
Provides definitions in AS 06.90.020 for "ammunition,"
"department," "disclose," "financial institution,"
"financial record," "firearm code," "firearm
retailer," "knowingly," "payment card," and "payment
network."
Section 2:
Amends AS 44.99 by adding a new section, AS 44.99.515,
to prohibit a person, the state, or a political
subdivision of the state from knowingly keeping or
causing to be kept a list, record, or registry of
privately owned firearms or owners of privately owned
firearms.
1:38:40 PM
MR. MENKE continued with the sectional analysis of SB 136:
Section 3:
Amends the uncodified law of the State of Alaska by
adding two Indirect Court Rule Amendments that change
Rule 65 and Rule 82 of the Alaska Rules of Civil
Procedure.
Section 4:
Establishes a conditional effect for AS 06.90.020(g)
and AS 06.90.020(i), enacted in Section 1, requiring a
two-thirds vote of each body for sections 3(a) and
3(b).
1:39:37 PM
SENATOR GRAY-JACKSON asked whether eliminating gun registration
is wise, suggesting that both responsible owners, court systems
and law enforcement benefit from maintaining a registry to
support gun safety.
1:40:06 PM
SENATOR CRONK replied that Alaska and the U.S. does not have a
gun registry. He said he personally opposes a gun registry and
emphasized supporting the freedom to own firearms.
1:40:33 PM
MR. MENKE replied that currently, Federal Firearms License (FFL)
holders must keep records of all firearm sales for the duration
of their business. These records can be accessed via the
National Instant Criminal Background Check System (NICS) for
criminal investigations, except federal law prohibits using them
to create a nationwide gun registry.
1:41:23 PM
SENATOR GRAY-JACKSON stated she supports the right to bear arms
and also stated her belief in responsible gun ownership and gun
safety in Alaska.
1:41:45 PM
SENATOR DUNBAR asked Mr. Menke to specify which other states had
enacted similar bills, whether the laws faced constitutional
challenges, and when was one last upheld.
1:42:03 PM
MR. MENKE replied that seven statesFlorida, Idaho, Mississippi,
Montana, North Dakota, Tennessee, Texas, and West Virginia have
passed legislation like SB 136, while California and New York
have passed laws requiring firearm codes. The constitutional
question, including potential preemption, remains unresolved and
may ultimately be decided by a federal court or the Supreme
Court. He said similar disclosure regulations already exist in
Alaska, such as the Personal Information Protection Act, AS
45.48, and healthcare data laws, AS 18.23. Though these are not
identical issues, these laws do regulate the disclosure of
financial records.
1:43:17 PM
SENATOR DUNBAR referenced a 2023 case that emphasized
constitutional rights are generally protected against government
infringement, not private action. He asked whether private
financial institutions restricting firearm transactions could
still implicate Second Amendment rights. He drew comparisons to
whether a private company could deny services tied to other
constitutional rights, such as religion or marriage.
1:44:32 PM
MR. MENKE replied that under the Dormant Commerce Clause, Alaska
would need to meet strict scrutiny by showing a compelling
government interest narrowly tailored to the law. He posed the
question of whether protecting constitutional rights such as
the Second Amendment, privacy, or religious freedom qualifies
as such an interest.
1:45:16 PM
SENATOR DUNBAR agreed that private companies should not be able
to deny services that infringe on fundamental rights, comparing
it to civil rights cases. However, he noted the Supreme Court
ruled in 2023 that companies do have the right to discriminate
in such situations. He stated that in cases involving religion
and LGBT marriage, the Supreme Court has allowed private
companies to discriminate. He compared this to firearm
transactions, where private companies might restrict Second
Amendment rights, prompting government intervention to prohibit
such actions. He highlighted that in 2023 the Supreme Court
created an exemption of that law. He asked if recent cases show
limits on restricting private companies' actions and whether the
government has constitutional authority to prohibit such
conduct.
1:46:47 PM
MR. MENKE replied that the constitutionality of the issue
remains to be determined, with states passing laws on both
sides, leaving the final decision to the courts.
1:47:08 PM
SENATOR CRONK replied that financial institutions differ from
ordinary businesses, because they handle credit cards and share
sensitive information, making this situation distinct.
1:47:28 PM
SENATOR DUNBAR acknowledged the argument that financial
institutions are distinct and noted individuals still choose
banks and credit cards. He asked whether financial institutions
retain freedom of contract to decide how and with whom they
conduct business.
1:48:06 PM
MR. MENKE replied that financial institutions do have the right
to contract and choose business partners, though a court could
allow the state to override that if it demonstrates a compelling
interest.
1:48:39 PM
SENATOR DUNBAR agreed with the distinction noted by Senator
Cronk, yet he pointed out that the Supreme Court has ruled
differently in other constitutional contexts. He noted it would
be interesting to see how a court reconciles allowing
discrimination in some cases and not others.
1:49:08 PM
SENATOR YUNDT noted a distinction between small businesses,
which use their own funds, and other businesses like lending
institutions, which use federally insured, taxpayer-backed
money. He pointed out that while firearm purchases from FFL
dealers require paperwork and background checks, private sales
between individuals do not require paperwork.
1:50:26 PM
CHAIR BJORKMAN announced invited testimony on SB 136.
1:50:37 PM
AOIBHEANN CLINE, Regional Director, State and Local Legislative
Affairs, National Rifle Association (NRA), Anchorage, Alaska,
testified by invitation on SB 136 and stated that this bill
would ban private financial institutions in Alaska from using
firearm and ammunition specific Merchant Category Codes (MCCs),
which could enable financial surveillance and the creation of
private gun registries. SB 136 provides Alaskans with legal
recourse to protect their rights under both the state and U.S.
constitutions, since federal law already prohibits national
firearm registries yet doesn't give individuals remedies against
private institutions. She stated in 2022, the International
Organization for Standardization (ISO) created a firearm-
specific MCC at the request of Amalgamated Bank, despite initial
opposition from major processors like Visa. MCCs categorize
transactions that others could use to monitor firearm purchases.
Critics argue this initiative is driven by anti-gun groups and
could significantly impact gun owners.
1:54:00 PM
MS. CLINE stated that using firearm retailer financial data
through MCCs effectively amounts to surveillance and
registration of law-abiding gun owners, potentially sharing this
information with government authorities or private gun control
organizations. She said Federal law prohibits national firearm
registries, and this approach could circumvent those
restrictions while creating risks of political abuse and First
Amendment infringements. She raised concerns about how banks
would determine "dangerous" gun stockpiles, who decides
thresholds, and who receives the data. She said collecting such
sensitive information increases the risk of theft or leaks,
citing global and U.S. examples like New Zealand (2019) and
California (concealed carry data exposure). SB 136 aims to
protect firearm privacy, prevent misuse of data, and discourage
proliferation into black markets or unregulated private
transfers.
1:57:40 PM
SENATOR DUNBAR stated that initially he thought SB 136 addressed
cases in the Lower 48 where financial institutions denied
individuals the ability to purchase firearms with credit. He
asked whether she has specific examples to support this claim.
1:58:09 PM
MS. CLINE replied that such instances exist, citing a firearms
retailer in Idaho who was "debanked" by two smaller financial
institutions after MCC codes were required. She offered to
provide specific details and connect the committee with the
retailer.
1:59:00 PM
SENATOR DUNBAR asked for retailer information to be sent to the
committee to verify if these incidents occurred. He noted that
SB 136 seems more focused on preventing registry than addressing
actual discrimination in firearm purchases. He asked whether the
primary government interest relates to federal registry concerns
rather than purchase restrictions.
1:59:43 PM
MS. CLINE replied that she will provide the committee with legal
analysis from the NRA on SB 136, focusing on the MCC issue and
its secondary constitutional effects. She emphasized that
protecting the right to keep and bear arms is paramount, and any
legislation should be narrowly tailored to prevent infringement,
noting the particular importance of the Second Amendment to the
safety and lifestyle of Alaskans.
2:01:39 PM
SENATOR CRONK gave an example of being a survivor of the 2017
Las Vegas mass shooting and concluded that the core issue is not
guns it is people. He emphasized that in Alaska, guns are viewed
as tools, he affirmed his support for Second Amendment rights
and stressed the importance of protecting privacy.
2:02:39 PM
CHAIR BJORKMAN stated that the Division of Banking and
Securities did not anticipate a fiscal impact in the fiscal
note.
2:03:16 PM
CHAIR BJORKMAN held SB 136 in committee.
2:03:26 PM
At ease.
SB 83-TELEHEALTH REIMBURSEMENT RATES
[CSSB 83(HSS) was before the committee.]
2:05:41 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 83 "An Act relating to health
care insurance; relating to insurance reimbursement for health
care services provided through telehealth; and providing for an
effective date."
2:06:20 PM
SENATOR MATT CLAMAN, District H, Alaska State Legislature,
Juneau, Alaska, sponsor of SB 83 presented a brief recap and
stated that the bill requires insurers to reimburse telehealth
services at the same rate as in-person care. This aims to reduce
barriers for rural residents, people with disabilities, and
those with limited transportation. SB 83 ensures fair payment
for telehealth, aligns with existing Alaska Medicaid practices,
and follows similar legislation in over 33 other states to
expand access and improve care.
2:07:24 PM
CHAIR BJORKMAN opened public testimony on SB 83.
2:07:50 PM
EMILY NENON, Director, Alaska Government Relations, American
Cancer Society Cancer Action Network, Anchorage, Alaska,
testified in support of SB 83 and stated that this is another
step in modernizing Alaska's telehealth laws, a process ongoing
since just before the pandemic. She said telehealth is
especially vital in Alaska. Telehealth allows patients to
consult from home and only travel for necessary exams or
treatments, while physicians and health systems still incur
costs for facilities and staff support.
2:09:45 PM
CHAIR BJORKMAN closed public testimony on SB 83.
2:10:18 PM
CHAIR BJORKMAN solicited the will of the committee.
2:10:19 PM
SENATOR MERRICK moved to report CSSB 83(HSS), work order 34-
LS0413\O, from committee with individual recommendations and
attached fiscal note(s).
2:10:37 PM
CHAIR BJORKMAN found no objection and CSSB 83(HSS) was reported
from the Senate Labor and Commerce Standing Committee.
2:10:54 PM
At ease.
SB 156-AK COMMERCIAL FISHING & AG BANK; LOANS
2:12:51 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 156 "An Act relating to the
Department of Commerce, Community, and Economic Development;
relating to the Alaska Commercial Fishing and Agriculture Bank;
relating to certain loans made by the Alaska Commercial Fishing
and Agriculture Bank; and providing for an effective date."
2:13:14 PM
SENATOR JESSE KIEHL, District B, Alaska State Legislature,
Juneau, Alaska, presented SB 156 on behalf of the sponsor. He
stated that late in the last legislative session, Alaska's
Division of Investments proposed lowering interest rates on the
Commercial Fisheries Revolving Loan Fund to help struggling
small fishing businesses for a period of three years. He said
this proposal was widely supported and saved many families
significant money. He clarified that although CFAB was created
under statute, it is not a state agency. However, it shares a
critical authority with the state's revolving loan fund: both
can place a lien on a limited entry permit, allowing loans to be
secured with this form of collateral. He said CFAB plays a
crucial role for fishing families needing larger loans beyond
the $400,000 cap of the revolving fund, helping them upgrade
vessels or acquire additional permits.
2:17:00 PM
SENATOR KIEHL said the legislature's changes to the revolving
loan fund made its terms more attractive than CFAB's, causing
many CFAB customers to refinance and new loan volume became non-
existent. SB 156 aims to keep CFAB operational through a one-
time financial infusion from capstone avionics that has sunset
with funds remaining. He said the funds will be used only for
loans mirroring the revolving fund's fixed terms and interest
rates for about two years, after which any unused funds must be
returned, and loans repaid within 20 years. SB 156 is designed
to sustain CFAB without creating an ongoing funding relationship
with the state.
2:21:09 PM
SENATOR DUNBAR noted that the fiscal note for the bill is zero
because it uses the capstone revolving loan fund. He asked how
much money is in the fund.
2:21:35 PM
SENATOR KIEHL replied that the remaining balance is $3.7
million.
2:21:46 PM
SENATOR DUNBAR praised that $3.7 million in unused funds were
available and appreciates its proposed use. He asked, if the
fishing industry remained in trouble, would there be enough
funds to keep CFAB operational and extend the favorable rates
beyond two years.
2:22:28 PM
SENATOR KIEHL opined that the $3.7 million in funds, likely
won't sustain CFAB beyond two years. To fully match the
revolving loan fund terms could require about $9 million. SB 156
is intended only to "keep the doors open," not make CFAB fully
comfortable. The bill doesn't alter the revolving loan fund's
low terms, and any future legislative changes would consider
other lenders. A key distinction is that some commercial
operators cannot use limited entry permits as collateral.
2:23:46 PM
CHAIR BJORKMAN announced invited testimony on SB 156.
2:24:04 PM
DOUG BLUMER, Chairman, Alaska Commercial Fishing and Agriculture
Bank (CFAB) Anchorage, Alaska, testified by invitation on SB
156. He stated that the CFAB, a cooperative with over 700
members, has financed Alaska's fishing, agriculture, tourism,
and natural resource businesses since 1980. Today CFAB faces a
combination of challenges threatening its survival. Declining
resources, including reduced salmon returns in Prince William
Sound and Togiak, and lower halibut quotas, are straining the
industry. These challenges are compounded by market disruptions
such as low seafood prices and the departure of Trident
Seafoods, Alaska's largest salmon processor. He said the most
critical challenge is financial competition from the state's
Commercial Fisheries Revolving Loan Fund (CFRLF), which under
House Bill 273 offers loans at 5.25 percent. Many CFAB members
refinanced with the state, leaving CFAB in weaker collateral
positions and sharply reducing new loan activity. He said with
roughly 10 percent of its portfolio paying off each year and
little new borrowing, membership could shrink by 2025 percent
annually. SB 156 offers a short-term lifeline, allowing CFAB to
access funds so it can match the state's loan terms. While not a
long-term fix, it helps keep CFAB operating and available as a
financing option for Alaska's fishing and resource-based small
businesses during a period of acute stress.
2:28:43 PM
SENATOR KIEHL noted Alaska's history of supporting its largest
private sector employer, the fishing industry, citing the early
2000s salmon task force. He said SB 156 continues that
tradition, complementing other fisheries task force
recommendations and building on last year's success with the
revolving loan fund.
2:29:36 PM
CHAIR BJORKMAN held SB 156 in committee.
2:29:57 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:29 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB136 ver A.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 136 |
| SB136 Sponsor Statement ver A.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 136 |
| SB136 Sectional Analysis ver A.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 136 |
| SB156 ver A.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 156 |
| SB156 Sponsor Statement ver A.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 156 |
| SB156 Sectional Analysis ver A.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 156 |
| SB156 Supporting Documents-Seafood Taskforce CFAB Recommendation.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 156 |
| SB156 Supporting Documents-Southwest Alaska Municipal Conference Resolution.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 156 |
| SB136 Fiscal Note-DCCED-DBS 04.11.25.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 136 |
| SB156 Fiscal Note-DCCED-DBS 04.11.25.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 156 |
| SB83 Public Testimony-Email-Sul Ross Thorward 04.09.25.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 83 |