04/22/2025 03:30 PM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB116 | |
| SB102 | |
| SB26 | |
| HB121 | |
| SB35 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 116 | TELECONFERENCED | |
| + | SB 102 | TELECONFERENCED | |
| + | SB 26 | TELECONFERENCED | |
| *+ | HB 121 | TELECONFERENCED | |
| += | SB 35 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
April 22, 2025
3:47 p.m.
MEMBERS PRESENT
Senator Scott Kawasaki, Chair
Senator Jesse Bjorkman, Vice Chair
Senator Bill Wielechowski
Senator Elvi Gray-Jackson
Senator Robert Yundt
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 116
"An Act amending campaign contribution limits for state and
local office; directing the Alaska Public Offices Commission to
adjust campaign contribution limits for state and local office
once each decade beginning in 2031; and relating to campaign
contribution reporting requirements."
- MOVED SB 116 OUT OF COMMITTEE
SENATE BILL NO. 102
"An Act exempting the state from daylight saving time; and
providing for an effective date."
- HEARD & HELD
SENATE BILL NO. 26
"An Act petitioning the United States Department of
Transportation to change the time zones of Alaska; exempting the
state from daylight saving time; and providing for an effective
date."
- HEARD & HELD
HOUSE BILL NO. 121
"An Act relating to the practice of accounting; and providing
for an effective date."
- HEARD & HELD
SENATE BILL NO. 35
"An Act relating to transportation network and delivery network
companies."
- MOVED SB 35 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 116
SHORT TITLE: CAMPAIGN FINANCE, CONTRIBUTION LIMITS
SPONSOR(s): STATE AFFAIRS
03/05/25 (S) READ THE FIRST TIME - REFERRALS
03/05/25 (S) STA, FIN
03/27/25 (S) STA AT 3:30 PM BELTZ 105 (TSBldg)
03/27/25 (S) Heard & Held
03/27/25 (S) MINUTE(STA)
04/15/25 (S) STA AT 3:30 PM BELTZ 105 (TSBldg)
04/15/25 (S) Scheduled but Not Heard
04/22/25 (S) STA AT 3:30 PM BELTZ 105 (TSBldg)
BILL: SB 102
SHORT TITLE: ELIMINATE DAYLIGHT SAVING TIME
SPONSOR(s): STATE AFFAIRS
02/19/25 (S) READ THE FIRST TIME - REFERRALS
02/19/25 (S) CRA, STA
03/11/25 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
03/11/25 (S) Heard & Held
03/11/25 (S) MINUTE(CRA)
03/18/25 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
03/18/25 (S) Heard & Held
03/18/25 (S) MINUTE(CRA)
03/25/25 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
03/25/25 (S) Moved SB 102 Out of Committee
03/25/25 (S) MINUTE(CRA)
03/26/25 (S) CRA RPT 3DP 1NR
03/26/25 (S) DP: MERRICK, DUNBAR, GRAY-JACKSON
03/26/25 (S) NR: YUNDT
04/22/25 (S) STA AT 3:30 PM BELTZ 105 (TSBldg)
BILL: SB 26
SHORT TITLE: ELIMINATE DAYLIGHT SAVING TIME
SPONSOR(s): MERRICK
01/22/25 (S) PREFILE RELEASED 1/10/25
01/22/25 (S) READ THE FIRST TIME - REFERRALS
01/22/25 (S) CRA, STA
03/11/25 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
03/11/25 (S) <Bill Hearing Canceled>
03/18/25 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
03/18/25 (S) Heard & Held
03/18/25 (S) MINUTE(CRA)
03/25/25 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
03/25/25 (S) Moved SB 26 Out of Committee
03/25/25 (S) MINUTE(CRA)
03/26/25 (S) CRA RPT 3DP 1NR
03/26/25 (S) DP: MERRICK, DUNBAR, GRAY-JACKSON
03/26/25 (S) NR: YUNDT
04/22/25 (S) STA AT 3:30 PM BELTZ 105 (TSBldg)
BILL: HB 121
SHORT TITLE: ACCOUNTING; PRACTICE PRIVILEGE
SPONSOR(s): SCHRAGE
02/28/25 (H) READ THE FIRST TIME - REFERRALS
02/28/25 (H) L&C
03/10/25 (H) L&C AT 3:15 PM BARNES 124
03/10/25 (H) -- MEETING CANCELED --
03/12/25 (H) L&C AT 3:15 PM BARNES 124
03/12/25 (H) Heard & Held
03/12/25 (H) MINUTE(L&C)
03/14/25 (H) L&C AT 3:15 PM BARNES 124
03/14/25 (H) Moved HB 121 Out of Committee
03/14/25 (H) MINUTE(L&C)
03/17/25 (H) L&C RPT 5DP 1NR
03/17/25 (H) DP: COULOMBE, BURKE, NELSON, HALL,
FIELDS
03/17/25 (H) NR: CARRICK
03/17/25 (H) L&C AT 3:15 PM BARNES 124
03/17/25 (H) <Bill Hearing Canceled>
03/24/25 (H) TRANSMITTED TO (S)
03/24/25 (H) VERSION: HB 121
03/26/25 (S) READ THE FIRST TIME - REFERRALS
03/26/25 (S) EDC, L&C
04/09/25 (S) EDC REFERRAL REMOVED
04/09/25 (S) STA REFERRAL ADDED
04/22/25 (S) STA AT 3:30 PM BELTZ 105 (TSBldg)
BILL: SB 35
SHORT TITLE: DELIVERY NETWORK COMPANIES
SPONSOR(s): BJORKMAN
01/22/25 (S) PREFILE RELEASED 1/10/25
01/22/25 (S) READ THE FIRST TIME - REFERRALS
01/22/25 (S) STA, L&C
03/18/25 (S) STA AT 3:30 PM BELTZ 105 (TSBldg)
03/18/25 (S) Heard & Held
03/18/25 (S) MINUTE(STA)
04/22/25 (S) STA AT 3:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
JOE HAYES, Staff
Senator Scott Kawasaki
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented an overview of SB 116.
HEATHER HEBDON, Executive Director
Alaska Public Office Commission (APOC)
Anchorage, Alaska
POSITION STATEMENT: Answered questions regarding SB 116.
KEVIN MORFORD, President
Alaska Move to Amend
Chugiak, Alaska
POSITION STATEMENT: Testified in support of SB 116.
BRUCE BOTELHO, Co-Chair
Citizens Against Money in Politics
Douglas, Alaska
POSITION STATEMENT: Testified in support of SB 116.
HEATHER KOPONEN, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 116.
MERCEDES ARCINIEGA, Outreach and Good Government Lead
Alaska Public Interest Research Group (APIRG)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 116.
HEATHER ARNETT, Board Member
League of Women Voters of Alaska
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 116.
MIKE COONS, representing self
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to SB 116.
FRANK BOX, Alaska Move to Amend
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 116.
JOE HAYES, Staff
Senator Scott Kawasaki
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 102.
JAY PEA, President
Save Standard Time
Phoenix, Arizona
POSITION STATEMENT: Testified by invitation on SB 102.
CINDY HITE, representing self
Willow, Alaska
POSITION STATEMENT: Testified in support of SB 102.
LISA ALEXIA, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 102.
HEATHER KOPONEN, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 102.
LYNN WILLIS, representing self
Eagle River, Alaska
POSITION STATEMENT: Testified in support of SB 102.
SENATOR KELLY MERRICK, District L
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 26.
KERRY KROCKER, Staff
Senator Kelly Merrick
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided the sectional analysis for SB 26.
AMANDA NDEMO, Staff
Representative Calvin Schrage
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the overview for HB 121.
REPRESENTATIVE CALVIN SCHRAGE, District 12
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 121.
BETH STUART, Office Managing Partner
Klynveld, PEAT, Marwick, Goerdeler (FLLC
Anchorage, Alaska
POSITION STATEMENT: Testified by invitation on HB 121.
KAREN BREWER-TARVER, Chair
Alaska Society of Certified Public
Accountants (AKCPA)
Legislative Committee
Anchorage, Alaska
POSITION STATEMENT: Testified by invitation on HB 121.
CRISTA BURSON, President
Alaska Society of CPAs
Anchorage, Alaska
POSITION STATEMENT: Testified by invitation on HB 121.
TOM NEILL, Chair
Uniform Accountancy Act Committee
American Institute of Certified Public Accountants (AICPA)
Seattle, Washington
POSITION STATEMENT: Testified by invitation on HB 121.
THERESA OBERMEYER, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 121.
ACTION NARRATIVE
3:47:06 PM
CHAIR KAWASAKI called the Senate State Affairs Standing
Committee meeting to order at 3:47 p.m. Present at the call to
order were Senators Bjorkman, Yundt and Chair Kawasaki. Senator
Gray-Jackson arrived shortly after; Senator Wielechowski arrived
thereafter.
SB 116-CAMPAIGN FINANCE, CONTRIBUTION LIMITS
3:48:31 PM
CHAIR KAWASAKI announced the consideration of SENATE BILL NO.
116 "An Act amending campaign contribution limits for state and
local office; directing the Alaska Public Offices Commission to
adjust campaign contribution limits for state and local office
once each decade beginning in 2031; and relating to campaign
contribution reporting requirements."
3:48:55 PM
JOE HAYES, Staff, Senator Scott Kawasaki, Alaska State
Legislature, Juneau, Alaska, presented an overview of SB 116 and
moved to slide 2:
[Original punctuation provided.]
Why is this bill necessary?
BACKGROUND
In 2021, a federal court ruled that Alaska's lower
than average campaign contribution limits
unconstitutionally restricted free speech. Governor
Dunleavy declined to have the matter reconsidered and
the legislature took no action.
This leaves Alaska's elections vulnerable to unlimited
contributions on state elections by wealthy donors and
having no limit magnifies the influence that these
wealthy individuals have over elected officials.
When money is speech, the average citizen's voice can
be easily drowned out. It's time for Alaska to set
reasonable limits on campaign finance.
3:49:51 PM
MR. HAYES moved to slide 3 and discussed the diagram showing
Alaska's campaign contributions began with a $1,000 limit in
1974 and now have no limits.
3:50:07 PM
MR. HAYES moved to slide 4 and explained the chart displaying
the history of campaign contribution limits in Alaska dated back
to 1974, with legislation enacted through the 2021 Advisory
Opinion, followed by the commission's 2022 rejection of the
administrative opinion.
3:50:29 PM
MR. HAYES moved to slide 5 and discussed the role, the District
Court and the Ninth Circuit Court of Appeals (Ninth Circuit),
played in the Thompson v. Hebdon case.
[Original punctuation provided.]
Thompson v. Hebdon
• Plaintiffs sued challenging Alaska's political
contribution limits and aggregate out-of-state
limits.
• The District Court and Ninth Circuit Court of
Appeals initially upheld the individual limits as
a "sufficiently important state interest" and
"closely drawn" to that end, but ruled the out-
of-state contribution limits were
unconstitutional.
• The U.S. Supreme Court remanded this decision
back to the Ninth Circuit to reconsider their
decision. They urged the Ninth Circuit to apply
the "five factor test" in the Randall v. Sorrell
(2006) decision, which ruled Vermont's $400
contribution limit unconstitutional.
• In 2021, the Ninth Circuit struck down Alaska's
statutory political contribution limits on the
basis that they were too low and had not been
adjusted for inflation since initially
implemented.
3:51:30 PM
MR. HAYES moved to slide 6 and read the following:
[Original punctuation provided.]
Where are we now?
• In 2021, the Alaska Public Offices Commission
(APOC) issued an advisory opinion under AS
15.13.374 that they would enforce annual $1,500
individual-to-candidate and $3,000 group-to-
candidate contribution limits.
• APOC's staff based the advisory opinion on the
limits established by the Alaska Legislature in
2003 ($1,000 per year for individual-to-candidate
donations) adjusted for inflation.
• On March 3rd, 2022, APOC's five commissioners
voted on whether or not to accept the staff's
advisory opinion. Three out of the five
commissioners voted in support of the advisory
opinion. Four votes were required and so the
staff's advisory opinion was not accepted.
• APOC, in their decision, "implored" the
Legislature to swiftly revisit the state's
campaign finance laws in order to balance the
federal court's order "with the desire of Alaska
voters." So far, despite efforts from proponents
of contribution limits, the Legislature has
failed to reestablish new limits.
• Now, without action by Alaska voters or the state
legislature, Alaska has no individual-to-
candidate limits, out-of-state contribution
limits, or individual-to-group limits, opening
our state and local elections to unlimited
funding from anyone, anywhere in the nation.
3:53:04 PM
MR. HAYES moved to slide 7 and read the following:
[Original punctuation provided.]
Contribution Limits Legislation Overview
• Reinstates Fair, Reasonable, and Constitutional
Contribution Limits - Reinstates campaign
contribution limits enacted by Alaskan voters.
These limits based on the 2006 limits adjusted
for inflation and the new two-year campaign
period.
• Establishes Per Campaign Period Limits - Limits
to a "per campaign" period, ensuring consistent
limits regardless of election timing or candidate
entry date.
• Are the limits indexed for inflation? - Requires
the Alaska Public Offices Commission (APOC) to
index political contribution limits every ten
years based on inflation, beginning in 2031.
3:53:58 PM
MR. HAYES moved to slide 8 and read the chart showing the
proposed contribution limits. He said the old limits were $500
per year, increasing to $2,000 per campaign under new
legislation. Group-to-group or non-group contributions rose from
$1,000 per year to $4,000 per campaign, and individual
contributions to a joint governorlieutenant governor campaign
increased from $1,000 to $4,000 per campaign.
3:54:31 PM
MR. HAYES moved to slide 9 and showed a diagram distinguishing
the difference between individual and group donation limits, and
non-group donation limits.
3:54:42 PM
MR. HAYES moved to slide 10 and read the contents of the chart
showing the constitutionality of new limits after applying the
"five factor test" from the Randall v. Sorrell decision.
3:55:41 PM
MR. HAYES moved to slide 11 and read the following:
[Original punctuation provided.]
What this legislation achieves
• Makes Alaska's Limits Constitutional - This
initiative brings Alaska's individual-to-
candidate and individual-to-group political
contribution limits in compliance with the
Thompson v Hebdon court decision.
• Reestablishes Limits Alaska's voters support -
This initiative reestablishes the contribution
limits previously enacted by voters in 2006,
adjusted for inflation.1996 initiative garnered
73 percent voter approval, and 85 percent of
those polled supported campaign finance reform.
• Immediate and Narrow - This initiative is an
immediate and narrow solution to the court's
striking down of our voter approved campaign
contribution limits.
3:56:50 PM
SENATOR YUNDT asked if SB 116 would limit campaign donations to
political action committees and independent expenditures, or
only to individuals.
MR. HAYES directed the question to the executive director of the
Alaska Public Office Commission.
3:57:56 PM
HEATHER HEBDON, Executive Director, Alaska Public Office
Commission (APOC), Anchorage, Alaska answered questions
regarding SB 116 and replied that her understanding is the bill
would limit Political Action Committee (PAC) contributions under
[AS 15.13.070(c)] as it falls under the definition of a group.
She said under [AS 15.13.070] the bill would not apply to
independent expenditure groups.
3:58:52 PM
SENATOR YUNDT asked whether SB 116 limits what PAC can give to a
candidate, and does it limit what an individual can give to PAC,
or could someone still make a large donation.
3:59:20 PM
MS. HEBDON replied that SB 116 limits what an individual can
give to PAC, it does not restrict contributions to independent
expenditure groups.
3:59:43 PM
SENATOR YUNDT requested clarification on whether an individual
could still contribute an unlimited amount to an independent
expenditure.
3:59:51 PM
MS. HEBDON replied yes.
4:00:25 PM
CHAIR KAWASAKI opened public testimony on SB 116
4:00:38 PM
KEVIN MORFORD, President, Alaska Move to Amend, Chugiak, Alaska,
testified in support of SB 116 and stated that the bill aligns
with a 2026 ballot initiative his organization helped advance.
Passing SB 116 this year would ensure limits are in place before
the 2026 election. Alaskans have historically supported strong
contribution caps, and prior limits were only removed due to a
Ninth Circuit Court decision. SB 116 has been carefully drafted
to address those legal issues and is expected to withstand
constitutional challenges. While it does not regulate
independent expenditures, SB 116 is an important step in
reducing the influence of money in Alaska's elections.
4:03:32 PM
CHAIR KAWASAKI asked for elaboration on issues with super PAC's,
noting concerns that large sums of money can flow to them, and
that individual contributions might help counterbalance their
influence.
4:04:09 PM
MR. MORFORD replied that SB 116 does not regulate independent
expenditure because the Supreme Court protects them under the
First Amendment. The bill focuses on contributions to campaigns
and ballot initiatives, where the state has an interest in
preventing corruption or its appearance.
4:05:31 PM
SENATOR YUNDT stated that the Supreme Court has deemed limits on
contributions to independent expenditure unconstitutional, while
the question of limits on individual contributions is still
pending in the Ninth Circuit.
4:06:19 PM
BRUCE BOTELHO, Co-Chair, Citizens Against Money in Politics,
Douglas, Alaska, testified in support of SB 116 and stated that
Alaskans have consistently supported campaign finance limits
since the first limits were passed in 1974. Challenges like the
Thompson v. Hebdon case highlighted that past limits were
unconstitutionally low and lacked inflation adjustments, issues
addressed in SB 116. He said public support remains strong, with
polls showing 65 percent overall approval and higher support in
regions like the Kenai Peninsula and Matsu. Independent
expenditures, protected under Citizens United, have had limited
impact in Alaska, mainly appearing in statewide or local races
rather than legislative contests.
4:11:15 PM
CHAIR KAWASAKI asked whether there was any consideration of
including a cap on out-of-state contributions.
4:11:44 PM
MR. BOTELHO replied that the Ninth Circuit struck down the out-
of-state contribution cap, and the Supreme Court did not take up
the issue. Now, both Alaska residents and out-of-state donors
are subject to the same limits, $2,000, or $4,000 for
gubernatorial and lieutenant gubernatorial races.
4:12:39 PM
SENATOR YUNDT asked if the Ninth Circuit established a specific
limit, or set a number, when they sent the ruling back to the
legislature.
4:12:49 PM
MR. BOTELHO answered the Ninth Circuit did not set a number. He
said instead the court left it to the legislature to act on the
guidance, yet the legislature chose not to take action.
4:13:07 PM
SENATOR YUNDT stated his concerned that since no exact number
was given, any limit set could be challenged and potentially
struck down by the Supreme Court, like independent expenditures.
He opined that SB 116 is only a short-term solution and
expressed frustration that candidate donations carry limits
while independents expenditures do not.
4:13:54 PM
MR. BOTELHO replied that the initiative and SB 116 were crafted
with Supreme Court and Ninth Circuit guidance in mind.
Supporters are confident the $2,000 limit is reasonable compared
to other states and will hold up if challenged, with periodic
adjustments starting in the 2030 election cycle.
4:15:03 PM
SENATOR BJORKMAN referred to SB 116, page 2, line 5 and said the
language sets a $5,000 annual limit on individual contributions
to a political party or other group. He asked whether
independent expenditure groups or PACs are considered "other
groups" under that wording.
4:15:44 PM
MR. BOTELHO replied that this legislation does not attempt to
regulate independent expenditure groups, as they are governed by
federal rather than state law.
4:15:58 PM
SENATOR BJORKMAN asked who represents the "other groups" found
in the legislation.
4:16:08 PM
MR. BOTELHO replied that organizations like the Homeowner's
Associations.
4:16:33 PM
SENATOR GRAY-JACKSON asked if the "other groups" means
organizations like Planned Parenthood.
4:16:43 PM
MR. BOTELHO answered yes.
4:17:06 PM
HEATHER KOPONEN, representing self, Fairbanks, Alaska, testified
in support of SB 116 and stated her belief that it should be one
person one vote.
4:18:08 PM
MERCEDES ARCINIEGA, Outreach and Good Government Lead, Alaska
Public Interest Research Group (APIRG), Anchorage, Alaska,
testified in support of SB 116. She said Alaska currently has no
limits on individual, out-of-state, or group contributions,
leaving elections vulnerable to corruption and outside
influence. Alaskans have historically supported strong limits,
and APOC has urged the legislature to act. She stated that SB
116 reflects voter priorities by reinstating limits with a
provision for inflation adjustments every 10 years, ensuring
they remain fair, effective, and sustainable over time.
4:20:07 PM
HEATHER ARNETT, Board Member, League of Women Voters of Alaska,
Anchorage, Alaska, testified in support of SB 116. She said the
League of Women Voters of Alaska supports reasonable campaign
contribution limits to ensure fair competition for public office
and appreciates that SB 116 includes periodic adjustments for
inflation.
4:21:18 PM
MIKE COONS, representing self, Wasilla, Alaska, testified in
opposition to SB 116. He argued it infringes on personal rights
to freely support candidates financially. He contended it won't
reduce outside or independent expenditure funding, and believes
it violates Supreme Court rulings by restricting individuals'
ability to donate as they choose. He emphasized that donations
reflect genuine support for candidates, not vote-buying, and
view the bill as politically motivated rather than protecting
voter interests.
4:23:29 PM
FRANK BOX, Alaska Move to Amend, Anchorage, Alaska, testified in
support of SB 116 and shared his recollection of when and why
the limit was dropped from $1000 to $500.
[CHAIR KAWASAKI closed public testimony on SB 116.]
4:26:41 PM
CHAIR KAWASAKI solicited the will of the committee.
4:26:43 PM
CHAIR BJORKMAN moved to report SB 116, work order 34-LS0699\A,
from committee with individual recommendations and attached
fiscal note(s).
4:27:00 PM
CHAIR KAWASAKI found no objection and SB 116 was reported from
the Senate State Affairs Standing Committee.
4:27:12 PM
At ease.
SB 102-ELIMINATE DAYLIGHT SAVING TIME
4:28:45 PM
CHAIR KAWASAKI reconvened the meeting and announced the
consideration of SENATE BILL NO. 102 "An Act exempting the state
from daylight saving time; and providing for an effective date."
4:29:06 PM
JOE HAYES, Staff, Senator Scott Kawasaki, Alaska State
Legislature, Juneau, Alaska, presented SB 102:
[Original punctuation provided.]
• SB 102 Eliminates Alaska's observation of the
twice-yearly clock change known as Daylight
Saving Time and opts to keep Alaska in Permanent
Observation of Standard Time.
-Arizona, Hawaii, five US territories and
many countries have ceased the observation
of DST yearly.
-60 percent of countries in the EU voted to
remove observation of DST in 2019.
• There are many negative health effects associated
with the annual clock change, regardless of
springing forward or falling back.
-Negative health effects include mental and
behavioral issues, risks to cardiovascular
health, circadian rhythm changes and
injuries due to the lack of light in the
morning after switching to DST
• Permanent ST is the best option for Alaskans
around the State. Many, many studies point to
Standard time being the best and healthiest
option for everyone, including Alaskans. This is
the quickest way to stop the twice annual clock
change.
-Russia tried permanent DST and it led to
increased health issues, stress and in
Northern Russia, harsher winter months due
to the lack of sunlight. There was an
increase of road accidents due to permanent
DST.
-Current federal laws allow states to exempt
themselves from observing DST which is why
Hawaii, Arizona and 5 US Territories observe
year-round Standard Time. However, states
are not allowed to move to permanent DST
until congress amends the Uniform Time Act.
4:31:16 PM
CHAIR KAWASAKI announced invited and public testimony on SB 102.
4:32:13 PM
JAY PEA, President, Save Standard Time, Phoenix, Arizona,
testified by invitation on SB 102. He stated that daylight
saving time doesn't create more daylight and forces people to
wake up earlier, leading to sleep deprivation, health risks,
safety issues, and economic costs. Permanent daylight time has
been tried and repealed due to these problems, while permanent
standard time supports circadian health, school children,
commuters, and workers. He said many states and countries have
adopted or are considering permanent standard time, which is
federally approved and provides a safe, healthy, and lasting
alternative to clock changes.
4:34:32 PM
CHAIR KAWASAKI asked for his opinion on what President Trump has
said about his preference on daylight savings.
4:34:59 PM
MR. PEA replied that President Trump has given conflicting
statements on daylight saving time, making his stance
unpredictable. He emphasized that permanent standard time,
aligning clocks with natural sunlight, is the healthiest and
safest option.
4:36:03 PM
CINDY HITE, representing self, Willow, Alaska, testified in
support of SB 102.
4:36:34 PM
LISA ALEXIA, representing self, Anchorage, Alaska, testified in
support of SB 102. She said with 25 years of Alaskan healthcare
experience, supports eliminating daylight saving time (DST) for
public health, safety, and educational benefits. She emphasized
that Alaska's displacement from solar noon causes circadian
disruptions, contributing to physical, mental, and educational
problems, especially in winter and in western regions. SB 102 is
favored because it restores morning light, unlike other
proposals that delay action or exacerbate late sunrises. She
compared returning to standard time to public health measures
such as vaccines and seatbelts. She highlighted the importance
of legislative decisions for population-level benefits.
4:40:14 PM
HEATHER KOPONEN, representing self, Fairbanks, Alaska, testified
in support of SB 102, reiterating previous testimonies. She
opined that getting rid of daylight savings is better than being
closer to Seattle time.
4:41:51 PM
LYNN WILLIS, representing self, Eagle River, Alaska, testified
in support of SB 102 and said it would immediately resolve
Alaska's time zone issues, unlike SB 26, which relies on
uncertain federal action. He urged passing SB 102 to align
clocks with the sun and eliminate unnecessary delays.
4:43:35 PM
CHAIR KAWASAKI left public testimony open for SB 102.
4:43:49 PM
CHAIR KAWASAKI held SB 102 in committee.
SB 26-ELIMINATE DAYLIGHT SAVING TIME
4:43:57 PM
CHAIR KAWASAKI announced the consideration of SENATE BILL NO. 26
"An Act petitioning the United States Department of
Transportation to change the time zones of Alaska; exempting the
state from daylight saving time; and providing for an effective
date."
4:44:14 PM
SENATOR KELLY MERRICK, District L, Alaska State Legislature,
Juneau, Alaska, sponsor of SB 26 said this legislation would
permanently exempt Alaska from daylight savings time and seek
federal approval to move the state to Pacific Standard Time. She
described it as the more practical, responsible option compared
to SB 102, noting it has strong backing from tourism and banking
industries for providing consistency and long-term benefits.
4:46:30 PM
KERRY KROCKER, Staff, Senator Kelly Merrick, Alaska State
Legislature, Juneau, Alaska, provided the sectional analysis for
SB 26:
[Original punctuation provided.]
Sectional Analysis
"An Act petitioning the United States Department of
Transportation to change the time zones of Alaska;
exempting the state from daylight saving time; and
providing for an effective date."
Section 1. Amends AS 44.12 - Exemption from Daylight
Saving Time (AS 44.12.400)
• Exempts the state of Alaska from the observation
of daylight-saving time (DST).
Section 2. Amends the Uncodified Law of the State of
Alaska - Petition to the United States Department of
Transportation to Change Alaska's Time Zone
• Directs the Alaska State Legislature to formally
petition the United States Department of
Transportation (USDOT) to move the entire state
of Alaska to the Pacific Standard Time (PST)
zone.
• Requests the USDOT to initiate proceedings under
the Uniform Time Act of 1966, following the
procedural requirements for changing time zones.
Section 3. Conditional Effect of Section 1
• States that Section 1 (the exemption from DST)
will only take effect if the USDOT places the
entire state of Alaska within the Pacific
Standard Time zone on or before January 1, 2035.
4:47:20 PM
MR. KROCKER continued with the sectional analysis of SB 26:
Section 4. Immediate Effect of Section 2
• Provides that Section 2, which initiates the
petition to the USDOT, takes effect immediately
upon the passage of the Act.
Section 5. Effective Date of Section 1
• Specifies that if Section 1 (the exemption from
DST) takes effect, it will do so on the effective
date of the placement of all of Alaska into the
Pacific Standard Time zone by the USDOT.
4:47:58 PM
CHAIR KAWASAKI held SB 26 in committee.
4:48:23 PM
CHAIR KAWASAKI opened public testimony on SB 26; he found none
and kept public testimony open.
HB 121-ACCOUNTING; PRACTICE PRIVILEGE
4:48:52 PM
CHAIR KAWASAKI announced the consideration of HOUSE BILL NO. 121
"An Act relating to the practice of accounting; and providing
for an effective date."
4:49:48 PM
AMANDA NDEMO, Staff, Representative Calvin Schrage, Alaska State
Legislature, Juneau, Alaska, presented the overview for HB 121
and moved to slide 2. She stated that Alaska faces a severe
certified public accountant (CPA) shortage, with exam candidates
down 30 percent nationwide since 2016. Current statutes create
unnecessary barriers, and HB 121 seeks to fix this by aligning
state laws with national standards.
4:50:30 PM
MS. NDEMO moved to slide 3, Section Analysis Summary, and stated
that HB 121 makes two key changes: lowers credit requirements
for CPA licensure and allows out-of-state CPA firms to practice
in Alaska through practice privilege. She said this aligns with
prior legislative updates.
4:50:55 PM
MS. NDEMO moved to slide 4, Education Requirement, and stated
that Alaska requires 150 credit hours and two years of
experience for CPA licensure, forcing candidates to complete 30
credits beyond a bachelor's degree.
4:51:20 PM
MS. NDEMO moved to slide 5 and discussed the following:
[Original punctuation provided.]
Education Requirement
HB 121:
• Removes the 150 credit hour requirement for CPA
licensure (moving to a bachelors + two years of
experience model).
• Retains essential qualification requirements
-Passing CPA exam
-Bachelor's degree with an accounting
concentration
-Two years of relevant experience
4:51:44 PM
MS. NDEMO moved to slide 6, Practice Privilege: Current
requirements for out-of-state firms, and stated that HB 121
removes the requirement for out-of-state CPA firms without a
physical office in Alaska to obtain a state firm permit,
reducing administrative burdens while still allowing them to
serve Alaskan clients.
4:52:15 PM
MS. NDEMO moved to slide 7 and discussed the following points:
[Original punctuation provided.]
Practice Privilege
Current requirements for out-of-state individuals (AS
08.04.420 and 08.04.422)
• Licensed to practice public accounting in another
state
• The individual's licensing state satisfies
substantial equivalency requirements to the
qualifications required of an applicant for a
license in Alaska.
• Principal place of business for the practice of
public accounting is in that other state
• Consent to Alaska's jurisdiction and disciplinary
authority of the board
• Assign home state's board as agent for service of
process
• Do not need to provide notice, pay a fee, or
submit documentation
CPA license: license granted by the state of
application after all education, exam, and experience
requirements have been met.
"Principal place of business" office location
designated by an individual for the purposes of
substantial equivalency and reciprocity. AS
08.04.680(17).
"Practice privilege" means a practice privilege
authorized under AS 08.04.420. AS 0
MS. NDEMO said all the standards would be the same if Alaska
implements current changes for out-of-state firms.
4:53:09 PM
MS. NDEMO moved to slide 9 and discussed the following:
[Original punctuation provided.]
Benefits of HB 121
Increases the pipeline of CPA candidates
MS. NDEMO said this is done by amending the education
qualifications by lowering the credit hour requirements.
Encourages business growth and supports business needs
Regulatory oversight remains intact
Makes Alaska a more accessible market for accounting
professionals.
4:53:40 PM
MS. NDEMO moved to slide 10, Public Protection, and stated that
HB 121 ensures that high professional standards remain a central
condition for granting practice privilege by requiring continued
oversight from both the CPA's home-state Board of Accountancy
and Alaska's Board of Public Accountancy. This dual
accountability framework helps safeguard the quality and
integrity of services provided to Alaskans. In addition, the
bill strengthens the accounting profession, supports local
businesses by creating reciprocal opportunities for firms and
professionals, and positions Alaska to remain competitive in
attracting and retaining qualified accounting talent.
4:54:27 PM
CHAIR KAWASAKI referenced the 120- and 150-credit requirements
and asked whether the additional 30 credits must meet specific
criteria or if the credits are generally accounting related
courses.
4:54:45 PM
REPRESENTATIVE CALVIN SCHRAGE, District 12, Alaska State
Legislature, Juneau, Alaska, sponsor of HB 121 replied that
there are no specific requirements for the additional 30
credits. Students typically meet them either by taking extra,
unrelated courses before committing to accounting, or by
pursuing a master's degree after completing their bachelor's
degree. He said many Alaska firms are concerned about losing
prospective accountants to out-of-state programs and would
prefer to keep candidates in state, combining education with on-
the-job training.
4:56:07 PM
SENATOR BJORKMAN stated there's separate legislation that
contemplates the idea of CPA's as conservators, without addition
training. He asked how would reducing CPA education requirements
affect the proposal to let CPAs serve as conservators without
additional training.
4:56:37 PM
REPRESENTATIVE SCHRAGE replied that reducing CPA education
requirements likely wouldn't affect their ability to serve as
conservators, since the extra 30 credits are often unrelated to
accounting. CPAs already gain significant financial expertise
through their degree, exam, and job training. He noted he isn't
an expert on conservatorship requirements.
4:58:01 PM
CHAIR KAWASAKI announced invited testimony on HB 121.
4:58:30 PM
BETH STUART, Office Managing Partner, Klynveld, PEAT, Marwick,
Goerdeler (KPMG) LLC, Anchorage, Alaska, testified by invitation
on HB 121. He shared his following testimony:
[Original punctuation provided.]
• Obtained my CPA license in 1996 and have
maintained it in good standing since that time;
nearly 30 years
• Appreciate consideration of HB121 in committee
today.
• Accounting professionals around the country are
concerned that the number of people entering the
accounting profession is declining, and studies
show this is in part because of the time and cost
of education required beyond a bachelor's degree.
• The Alaska board of accountancy is not alone in
trying to address the concern. There is a wave of
legislation across states to remove those "soft
30" additional credit hours required over a
bachelor's degree. As Rep Schrage mentioned,
these 30 credit hours are not required to be in
accounting, or even business. They could be
credits in underwater basket weaving. We do not
believe removing those 'soft 30' credits will
have an impact on quality of CPAs.
• The other element of HB121 that is supported by
the board relates to firm mobility. The purpose
of this section is to conform Alaska's firm
mobility laws with our existing individual
mobility laws, moving to a mobility model widely
recognized throughout the U.S. and recommended in
the UAA.
5:01:44 PM
KAREN BREWER-TARVER, Chair, Alaska Society of Certified Public
Accountants (AKCPA) Legislative Committee, Anchorage, Alaska,
testified by invitation on HB 121. She shared her following
testimony:
[Original punctuation provided.]
The AK SOCIETY of CPAS, overall mission is the
promotion, upgrading, continuation and unification of
the accounting profession. Society members are CPA
licensed in Alaska, as well CPA candidates.
The AK SOC OF CPAs AK legislative committee meet and
evaluated the changes proposed in HB 121. Our support
of HB121 was provided to our SOCIETY board who have
submitted a letter of support to the bill sponsors.
As previously shared regarding the education
requirements for licensure:
• HB121 allows a modernized path to licensure,
which will allow more candidates to become CPAs
and be available to serve Alaska residents and
businesses.
• Under the current statute employees working full
time often put off finishing additional credits
and reach the point of not pursuing licensure due
to the challenge of working while finishing
additional college credits. As a CPA firm
owner, I can share there is a shortage of
qualified accountants. Employees who get their
bachelor's degree (120 credits) want to start
working immediately as their work
responsibilities grow and personal obligations
increase the challenge of gaining the additional
30 credits creates a barrier to pursuing their
CPA license. The extra 30 credits also deters
many accounting students from pursuing the CPA
path and limits students entry into public
accounting as many firms will not hire students
without the 150 credits. If HB 121 were to pass
this allows candidates to pursue their CPA
licensure without the extra time and cost for the
additional 30 credits.
On a personal note, my son is graduating from high
school in May and plans to become a CPA I am
personally excited to let him know that he may only
have 4 rather than 5 years of college.
As previously shared related to FIRM mobility:
• HB121 allows CPAs licensed from other states to
serve clients in Alaska at a time when there is a
looming shortage of available service providers.
5:04:09 PM
MS. BREWER-TARVER continued with her testimony on HB 121:
Firm mobility has been a long time project for Alaska
STATE BOARD OF PUBLIC ACCOUNTANCY and the statue
changes in the past were leading up to this change to
align Alaska with other licensing jurisdictions.
During my 8 years on the state BOARD OF PUBLIC
ACCOUTANCY we worked with the AICPA and other
licensing jurisdictions to understand the impacts firm
mobility and the AK SOCIETY SUPPORTS THIS BILL AND
ALASKA ALLOWING FOR FIRM MOBILITY.
1.The changes noted in HB121 allow Alaska to
align with model national legislation, but more
importantly, changes that are being proposed and/or
enacted currently in many other jurisdictions
2.HB121 will allow more candidates to become CPAs
and be available to serve Alaska residents and
businesses.
3.HB121 allows CPAs licensed from other states to
serve clients in Alaska at a time when there is a
looming shortage of available service providers.
4.HB121 does not diminish the existing public
protection provisions contacted in the Statues and
regulations for Alaska CPAs.
5:05:32 PM
CRISTA BURSON, President, Alaska Society of CPAs, Anchorage,
Alaska, testified by invitation on HB 121. She shared her
following testimony:
[Original punctuation provided.]
Chair Kawasaki and members of the Senate State Affairs
committee my name is Crista Burson and I live in
Anchorage and I am the President & CEO of the Alaska
Society of CPAs. The Alaska Society of CPAs has over
600 members that include students, educators, and CPAs
and accountants in both public and private practice.
On behalf of our Board of Directors, the AKCPA would
like to express our support of the changes proposed in
HB 121. We are hopeful this legislation will assist in
filling the CPA pipeline shortage.
Recently I met with accounting students and faculty at
the University of Alaska Anchorage and the University
Alaska Fairbanks and discussions included HB 121.
Students were especially excited that the proposed
changes would help them enter the profession without
the additional expense and time.
Thank you for your continued efforts to protect the
public interest and for ensuring that Alaska has CPA
licensees to meet the current and future needs in
Alaska.
5:07:13 PM
TOM NEILL, Chair, Uniform Accountancy Act Committee, American
Institute of Certified Public Accountants (AICPA), Seattle,
Washington, testified by invitation on HB 121. He stated that
this legislation aligns Alaska's CPA licensing laws with the
Model Uniform Accountancy Act, bringing consistency with
national standards. Similar changes are already underway in 25
states, including Washington, Oregon, and California. HB 121
also updates firm mobility provisions, joining 37 other states
that allow out-of-state CPA firms to practice without added
permits.
5:08:23 PM
CHAIR KAWASAKI asked if most states were originally set at 150
credits and later reduced the requirement, or have they always
required 120 credits.
5:08:35 PM
MR. NEILL replied that most U.S. states currently require 150
credit hours, though recent changes to the Uniform Accountancy
Act aim to reduce that to 120. Since the extra 30 hours have no
specific requirements, the national trend is shifting back to a
four-year degree with an accounting concentration.
5:09:28 PM
CHAIR KAWASAKI opened public testimony on HB 121.
5:09:43 PM
THERESA OBERMEYER, representing self, Anchorage, Alaska,
testified in support of HB 121 and stated that the concept of
"practice privilege" originates from the legal field. She cited
Wisconsin's diploma privilege and similar rules in Washington
and Oregon that allow law graduates to practice without a bar
exam. Drawing on decades of family experience in law, she
expressed support for the bill and urged lawmakers to recognize
the parallels between accounting and legal practice.
5:11:58 PM
CHAIR KAWASAKI closed public testimony on HB 121.
5:12:11 PM
CHAIR KAWASAKI held HB 121 in committee.
SB 35-DELIVERY NETWORK COMPANIES
5:12:23 PM
CHAIR KAWASAKI announced the consideration of SENATE BILL NO. 35
"An Act relating to transportation network and delivery network
companies."
5:13:10 PM
SENATOR BJORKMAN speaking as the sponsor of SB 35, he presented
a brief recap:
[Original punctuation provided.]
SB 35 amends statutes related to workers compensation
which will align individuals who provide delivery
services through delivery network companies with
individuals who provide services through
Transportation Network Companies. The legislation will
define these workers as independent contractors.
Currently, delivery network companies are not defined
in statute, which has led to confusion and litigation
across the country, threatening these services that
customers value and depend on.
Roughly 90 percent of drivers work less than 10 hours
per week. These drivers usually provide delivery
services to supplement their income, so they can work
their full-time job, or go to school during the day,
et cetera.
Most door dashers prefer to remain working as
independent contractors so they can have the ability
to work as much or as little as they want. Thank you
for hearing Senate Bill 35 today.
5:14:27 PM
CHAIR KAWASAKI solicited the will of the committee.
5:14:30 PM
SENATOR GRAY-JACKSON moved to report SB 35, work order 34-
LS0330\A, from committee with individual recommendations and
attached fiscal note(s).
5:14:46 PM
CHAIR KAWASAKI found no objection and SB 35 was reported from
the Senate State Affairs Standing Committee.
5:15:24 PM
There being no further business to come before the committee,
Chair Kawasaki adjourned the Senate State Affairs Standing
Committee meeting at 5:15 p.m.