Legislature(2025 - 2026)GRUENBERG 120

02/21/2025 01:00 PM House JUDICIARY

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Audio Topic
01:00:38 PM Start
01:01:31 PM HB77
02:09:37 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 77 MAIL THEFT TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
                       HB  77-MAIL THEFT                                                                                    
                                                                                                                                
1:01:31 PM                                                                                                                    
                                                                                                                                
CHAIR GRAY  announced that  the only order  of business  would be                                                               
HOUSE  BILL NO.  77,  "An Act  making  the theft  of  mail or  an                                                               
article within mail theft in the second degree."                                                                                
                                                                                                                                
1:02:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COULOMBE,  Alaska  State  Legislature,  as  prime                                                               
sponsor, presented HB 77.   She paraphrased the sponsor statement                                                               
[included  in  the  committee  packet],  which  read  as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Mail  theft  is  not  just  an  inconvenienceit   is  a                                                                    
     gateway  to   financial  fraud,  identity   theft,  and                                                                    
     serious  economic harm,  particularly  for our  elderly                                                                    
     and most vulnerable citizens. In  an age where personal                                                                    
     and financial information  is increasingly targeted, HB
     77   seeks  to   modernize  Alaska's   theft  laws   by                                                                    
     classifying   mail  theft   as   a   Class  C   felony,                                                                    
     strengthening  penalties, and  closing legal  loopholes                                                                    
     that have allowed criminals to exploit our residents.                                                                      
                                                                                                                                
     Mail  theft   is  on  the   rise  across   the  nation,                                                                    
     contributing  to millions  of cases  of identity  theft                                                                    
     and fraud.  According to  the Federal  Trade Commission                                                                    
     (FTC), Alaskans  report high levels of  fraud, and with                                                                    
     the increasing  sophistication of  mail-related crimes                                                                     
     including  stolen checks,  credit card  statements, and                                                                    
     government documentsit   is essential that we  act now.                                                                    
     Currently,  Alaska's  laws  do not  adequately  address                                                                    
     mail  theft   as  a   serious  crime.   Under  existing                                                                    
     statutes,   mail  theft   can   be   prosecuted  as   a                                                                    
     misdemeanor or under vague  general theft laws, leaving                                                                    
     room for lenient sentencing or  even lead to an absence                                                                    
     of sentencing.  HB 77 changes this  by clearly defining                                                                    
     mail  theft as  theft in  the second  degree, a  felony                                                                    
     offense,   ensuring   that   perpetrators   face   real                                                                    
     consequences.                                                                                                              
                                                                                                                                
     By passing  HB 77,  we equip  law enforcement  with the                                                                    
     tools  needed to  effectively  prosecute mail  thieves,                                                                    
     deter  would-be offenders,  and  protect Alaskans  from                                                                    
     the  devastating consequences  of identity  fraud. This                                                                    
     bill  ensures  that  victims of  mail  theftespecially                                                                     
     seniors and vulnerable  populationshave  stronger legal                                                                    
     protections and recourse.                                                                                                  
                                                                                                                                
     HB 77 is a common-sense,  necessary step in modernizing                                                                    
     Alaska's  theft   laws  to  keep  pace   with  evolving                                                                    
     criminal  activity.  It  ensures  stronger  deterrence,                                                                    
     clearer  legal definitions,  and harsher  penalties for                                                                    
     those who exploit our postal system.                                                                                       
     We urge  our colleagues  in the Legislature  to support                                                                    
     HB  77 to  protect Alaskans,  their privacy,  and their                                                                    
     financial security.                                                                                                        
                                                                                                                                
1:03:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOPP  moved  to   adopt  the  proposed  committee                                                               
substitute  (CS)  for HB  77,  Version  34-LS0144\H, C.  Radford,                                                               
2/20/25, as the working document.                                                                                               
                                                                                                                                
REPRESENTATIVE MINA objected for the purpose of discussion.                                                                     
                                                                                                                                
1:03:48 PM                                                                                                                    
                                                                                                                                
RYAN SHELDON, Staff, Representative  Julie Coulombe, Alaska State                                                               
Legislature,   on  behalf   of  Representative   Coulombe,  prime                                                               
sponsor, presented a  sectional analysis of changes  in Version H                                                               
[included  in  the  committee  packet],  which  read  as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Section 1:  Establishes the crime  of mail  theft under                                                                    
     AS 11.46.130(A) Theft in the Second Degree.                                                                                
                                                                                                                                
     Section   2:   provides  definitions   for   authorized                                                                    
     depository, mail, mail receptacle and postage.                                                                             
                                                                                                                                
     Section 3: The provisions of  (a)(8) of this section do                                                                    
     not apply to an act  carried out in accordance with the                                                                    
     official  duties  of  an   employee  charged  with  the                                                                    
     operation  of a  juvenile treatment  facility, juvenile                                                                    
     detention facility, or correctional facility.                                                                              
                                                                                                                                
     Section 4: Effective date clause                                                                                           
                                                                                                                                
1:06:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MINA  removed  her  objection.   There  being  no                                                               
further objection, Version H was before the committee.                                                                          
                                                                                                                                
1:07:02 PM                                                                                                                    
                                                                                                                                
MR. SHELDON  directed attention to  a PowerPoint  presentation on                                                               
HB 77 [hard  copy included in the committee packet]  and began on                                                               
slide  2,   "The  Problem,"  which  read   as  follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Mail theft is  on the rise in the United  States and in                                                                    
     Alaska.                                                                                                                    
                                                                                                                                
     Mail theft  is a precursor to  identity theft resulting                                                                    
     in financial hardship.                                                                                                     
                                                                                                                                
     Senior citizens particularly fall victim.                                                                                  
                                                                                                                                
     Alaska does not currently have a way to prosecute mail                                                                     
     theft as it is not codified in statute.                                                                                    
                                                                                                                                
     The US Attorney's office has an incredible back log of                                                                     
     cases, due in  part to a lack of  District Court Judges                                                                    
     on  the bench.  Meaning,  they  cannot prosecute  these                                                                    
     cases in a timely manner.                                                                                                  
                                                                                                                                
     Alaskan  courts  need  the   legal  backing  (HB77)  to                                                                    
     prosecute  these  cases  of mail  and  identify  theft;                                                                    
     attaching a REAL punishment to the crime.                                                                                  
                                                                                                                                
MR. SHELDON continued to slide 3, "Facts and Figures of the                                                                     
Problem," which read as follows [original punctuation provided]:                                                                
                                                                                                                                
     ~23 million persons  (~9% of all U.S.  residents age 16                                                                    
     or older) experience identify theft annually (DOJ)                                                                         
                                                                                                                                
     ~59%  of identity-theft  victims had  financial losses;                                                                    
     which totaled $16.4 billion in 2021 (DOJ)                                                                                  
                                                                                                                                
     1 in 5 persons (22%)  will experience identity theft in                                                                    
     their lifetime (DOJ)                                                                                                       
                                                                                                                                
     USPS Check fraud has nearly  doubled since 2021 to 2023                                                                    
     (DOJ)                                                                                                                      
                                                                                                                                
     DOJ released a  PSA alerting the public to  the rise of                                                                    
     mail fraud on 01/27/25                                                                                                     
                                                                                                                                
     Alaska ranks 10th  highest (out of 50  states) in Fraud                                                                    
     (FTC)                                                                                                                      
                                                                                                                                
1:09:47 PM                                                                                                                    
                                                                                                                                
MR. SHELDON  described the  graphic on  slide 4,  which indicated                                                               
that 10 percent of Alaska residents  have had a package stolen in                                                               
the  past  three  months.     He  continued  to  slide  5,  which                                                               
positioned HB 77 as the solution to protecting at-risk citizens.                                                                
                                                                                                                                
1:10:47 PM                                                                                                                    
                                                                                                                                
MR. SHELDON outlined the mechanics of the bill on slides 6 and                                                                  
7, which read as follows [original punctuation provided]:                                                                       
                                                                                                                                
     DEFINITION OF THE CRIME:                                                                                                   
      Classifies mail theft as theft in the second degree                                                                       
     via                                                                                                                        
        • Mail or mail items obtained by fraud                                                                                  
                                                                                                                                
     LEGAL CLASSIFICATION AND PENALTIES                                                                                         
     Theft in the second degree (AS 11.46.130) is a class C                                                                     
     felony in Alaska.                                                                                                          
     A class C felony carries penalties such as:                                                                                
        • Up to 5 years in prison                                                                                               
        • A fine of up to $50,000                                                                                               
        • Probation (in lieu of incarceration)                                                                                  
        • Restitution to victims                                                                                                
                                                                                                                                
     DEFENSES AGAINST & SAFEGUARDS OF MAIL THEFT CHARGES                                                                        
      HB 77 provides specific legal "affirmative" defenses                                                                      
     to avoid wrongful convictions, including:                                                                                  
        • The defendant reasonably believed they were                                                                           
          entitled to the mail.                                                                                                 
        • The stolen mail belonged to a household member if                                                                     
          dwelling together.                                                                                                    
        • The accused had power of attorney for the                                                                             
          recipient.                                                                                                            
        • The recipient explicitly gave permission to                                                                           
          collect their mail.                                                                                                   
                                                                                                                                
1:12:09 PM                                                                                                                    
                                                                                                                                
CHAIR GRAY asked whether, if the bill were to pass, people would                                                                
be prosecuted in state court in lieu of federal court.                                                                          
                                                                                                                                
MR. SHELDON said yes, the intent is for the state to be able to                                                                 
prosecute these cases.                                                                                                          
                                                                                                                                
CHAIR GRAY asked how many Alaskans have had their identity                                                                      
stolen because of mail theft.                                                                                                   
                                                                                                                                
MR. SHELDON said its hard to track the data because it's not                                                                    
currently a crime.                                                                                                              
                                                                                                                                
CHAIR  GRAY  shared  his understanding  that  identity  theft  is                                                               
largely attributable to cyber issues.                                                                                           
                                                                                                                                
REPRESENTATIVE   COULOMBE  pointed   out  that   mail  theft   is                                                               
disproportionately  affecting  seniors   because  they  don't  go                                                               
online as much.                                                                                                                 
                                                                                                                                
CHAIR  GRAY shared  his understanding  that the  bill has  a zero                                                               
fiscal note, which suggests that  there wouldn't be many cases to                                                               
prosecute.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  COULOMBE stated  that the  Alaska Court  System's                                                               
(ACS) fiscal note  is indeterminate because it's  hard to project                                                               
how many cases would be prosecuted.                                                                                             
                                                                                                                                
1:18:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MINA  asked  how  the  bill  would  impact  other                                                               
institutions,   like   Division   of   Juvenile   Justice   (DJJ)                                                               
facilities, and prisons.  She  asked whether the bill would apply                                                               
to a scenario  in which an individual at  a correctional facility                                                               
had stolen a prisoner's mail.                                                                                                   
                                                                                                                                
MR.  SHELDON said  people in  detention facilities  are protected                                                               
under Section 3 of Version H.                                                                                                   
                                                                                                                                
1:19:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COSTELLO informed  the committee  that she  was a                                                               
victim  of  identity  theft  that   occurred  while  she  was  on                                                               
maternity leave and shared her  experience.  She acknowledged the                                                               
importance of the bill for seniors in particular.                                                                               
                                                                                                                                
CHAIR GRAY opened invited testimony.                                                                                            
                                                                                                                                
1:21:59 PM                                                                                                                    
                                                                                                                                
TIFFANI LOUGHMAN,  representing self,  gave invited  testimony in                                                               
support of HB  77.  She shared her  experience investigating mail                                                               
theft  during her  tenure as  a police  officer and  detective in                                                               
Anchorage.     She   said  the   crime   continuously  ties   law                                                               
enforcement's hands  with no  ability to  make arrest  or provide                                                               
justice for  victims.   While there is  a federal  law addressing                                                               
mail  theft, constraints  on federal  resources  mean that  these                                                               
cases rarely meet the threshold  for prosecution.  She stated her                                                               
support  for  enacting a  state  level  statute to  address  mail                                                               
theft,  as   the  crime   is  becoming   increasingly  prevalent.                                                               
According to  the U.S.  Postal Inspection  Unit, there  were over                                                               
300,000 reported incidents in the  past year alone.  These crimes                                                               
typically  lead  to  identity  theft,  financial  loss,  loss  of                                                               
personal or legal documents, damages  to credit scores, increased                                                               
risk of fraud,  and delayed or missing deliveries.   She spoke to                                                               
the  disproportionate vulnerability  of  the elderly  population,                                                               
and  how  mail  theft  may   impact  them  both  financially  and                                                               
emotionally.   She said  the bill would  empower state  and local                                                               
law enforcement  with the tools  to more efficiently  combat mail                                                               
theft and serve as a deterrent to other crimes.                                                                                 
                                                                                                                                
1:26:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MINA asked  how many  calls the  Anchorage Police                                                               
Department (APD) receives related to mail theft.                                                                                
                                                                                                                                
MS. LOUGHMAN did not have an  exact number because it's not being                                                               
tracked; however, she anecdotally  reported that APD comes across                                                               
stolen mail often.                                                                                                              
                                                                                                                                
1:27:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOPP referred  to AS  11.76.120, which  prohibits                                                               
the opening of  sealed letters, and asked why Version  H would be                                                               
a better vehicle to address the issue at hand.                                                                                  
                                                                                                                                
MS. LOUGHMAN said  the bill would create a felony  crime and give                                                               
law enforcement some "teeth."                                                                                                   
                                                                                                                                
REPRESENTATIVE KOPP  further clarified  that the bill  would move                                                               
this conduct under the theft statutes.                                                                                          
                                                                                                                                
1:31:44 PM                                                                                                                    
                                                                                                                                
MR. SHELDON played  two videos that showed  police camera footage                                                               
of  officers intercepting  a person  in the  process of  stealing                                                               
mail.                                                                                                                           
                                                                                                                                
1:35:19 PM                                                                                                                    
                                                                                                                                
DAVID  LARSON,  representing self,  shared  his  experience as  a                                                               
victim of mail  fraud and attempted identity theft.   He credited                                                               
his son for  helping him and said without him,  he would not have                                                               
been able  to resolve the issue  and safeguard his accounts.   He                                                               
encouraged the legislature to fix this problem.                                                                                 
                                                                                                                                
1:42:23 PM                                                                                                                    
                                                                                                                                
KELLY  REYNOLDS,  Security  Manager, Northrim  Bank,  shared  her                                                               
experience  overseeing   and  investigating  external   fraud  at                                                               
Northrim  Bank,   indicating  that  mail  theft   has  become  an                                                               
increasingly serious  issue that warrants attention  at the state                                                               
level.  Despite the gravity of  the issue, she said mail theft is                                                               
often  treated as  a low-level  crime, with  federal jurisdiction                                                               
being the  only recourse for offenders.   By making mail  theft a                                                               
state crime, it would allow  law enforcement to address the issue                                                               
more  affectively  and  without  delay.     She  added  that  the                                                               
consequences of  mail theft extend beyond  individual victims and                                                               
has  broader societal  implications,  including  distrust in  the                                                               
mail   system,  local   law  enforcement,   and  public   safety.                                                               
Classifying  mail  theft  as  a state  crime  would  empower  law                                                               
enforcement to  act swiftly; enable quicker  responses and faster                                                               
prosecution; send a clear message  of intolerance; establish more                                                               
substantial penalties  and deter potential criminals;  and ensure                                                               
a more consistent and uniform approach to the crime.                                                                            
                                                                                                                                
1:47:37 PM                                                                                                                    
                                                                                                                                
CHAIR GRAY  asked whether  a person  would be  charged separately                                                               
for each item of stolen mail in their possession.                                                                               
                                                                                                                                
KACI  SCHROEDER, Assistant  Attorney General,  Criminal Division,                                                               
Department  of  Law  (DOL),  said  they  could  be;  however,  an                                                               
individual cannot be  punished more than once for an  act, so the                                                               
charges would likely merge upon conviction.                                                                                     
                                                                                                                                
CHAIR GRAY sought  to confirm that the crime is  a Class C felony                                                               
regardless of what  was stolen, whether that be a  post card or a                                                               
laptop, for example.                                                                                                            
                                                                                                                                
MS. SCHROEDER answered yes.                                                                                                     
                                                                                                                                
1:48:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  VANCE  asked  whether  there  would  be  multiple                                                               
charges if the mail was stolen from different people.                                                                           
                                                                                                                                
MS. SCHROEDER  said a charge could  be brought for each  act that                                                               
satisfies all  the criminal  elements; however,  upon conviction,                                                               
the  charges  would  likely  merge because  a  person  cannot  be                                                               
punished more than once.                                                                                                        
                                                                                                                                
1:51:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COSTELLO asked  whether there  would be  value in                                                               
differentiating mail theft from  mail theft that's performed with                                                               
the intent to steal a person's identity.                                                                                        
                                                                                                                                
MS.  SCHROEDER  said  Alaska  has  other  statutes  that  may  be                                                               
applicable to conduct that could be described as identity theft.                                                                
                                                                                                                                
1:53:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOPP asked about  the practical application of the                                                               
law and how discretion works for police and prosecutors.                                                                        
                                                                                                                                
MS.  SCHROEDER   explained  that  the   crime  of  theft   is  an                                                               
intentional crime.   Currently, without  being able to  value the                                                               
mail,  the  conduct  would  likely  be charged  with  a  Class  B                                                               
misdemeanor.  The  bill, however, would make mail  theft a felony                                                               
crime regardless of the mail's valuation.                                                                                       
                                                                                                                                
CHAIR  GRAY  said it  sounds  like  the  bill is  being  proposed                                                               
because  currently,  mail theft  is  not  being prosecuted  as  a                                                               
federal crime.                                                                                                                  
                                                                                                                                
MS. SCHROEDER  clarified that mail  theft would remain  a federal                                                               
crime but codifying  it would give state  prosecutors the ability                                                               
to prosecute  mail theft as  a Class C felony  without performing                                                               
the valuation  that's required  under current  law.   She pointed                                                               
out  that the  federal  government is  a  separate sovereign,  so                                                               
potentially, the  offender could be charged  under both; however,                                                               
given existing resources, it's unlikely.                                                                                        
                                                                                                                                
CHAIR GRAY asked whether state  prosecutors have the bandwidth to                                                               
process additional cases.                                                                                                       
                                                                                                                                
MS. SCHROEDER said DOL submitted  a zero fiscal note because they                                                               
already  have  the ability  to  prosecute  this conduct  and  the                                                               
belief is that  there wouldn't be an increase in  caseload to the                                                               
degree that another prosecutor would be needed.                                                                                 
                                                                                                                                
CHAIR GRAY  asked how the  time to disposition would  be impacted                                                               
by the bill.                                                                                                                    
                                                                                                                                
MS.  SCHROEDER  acknowledged that  more  cases  slow the  system;                                                               
however, that  shouldn't discourage the legislature  from passing                                                               
the bill, creating new crimes, or trying to protect the public.                                                                 
                                                                                                                                
2:01:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MINA asked  whether the  affirmative defense  was                                                               
removed from Version H.                                                                                                         
                                                                                                                                
MR. SHELDON  explained that the  affirmative defense  was removed                                                               
from Version  H based on  counsel from  Ms. Schroeder.   He added                                                               
that  the affirmative  defense was  confining the  bill with  too                                                               
much specificity.                                                                                                               
                                                                                                                                
CHAIR GRAY  sought to  confirm that  the goal of  the bill  is to                                                               
stop identity  theft; however, the bill  reclassifies mail theft,                                                               
which is  more frequent and not  related to identity theft,  to a                                                               
felony crime.                                                                                                                   
                                                                                                                                
MR.  SHELDON  said that's  correct,  adding  that this  would  be                                                               
another tool in the toolbox.                                                                                                    
                                                                                                                                
2:04:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COSTELLO requested  a  visual  of the  sentencing                                                               
ranges.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  MINA   requested  information  on   the  existing                                                               
statutes related to theft and identity theft.                                                                                   
                                                                                                                                
2:05:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE  stated that  one-third of her  district are                                                               
seniors who rely  on medication and other  important documents in                                                               
the  mail.   She expressed  appreciation for  the bill  and shock                                                               
that it's  not currently  in statute.   She  said the  bill would                                                               
offer a tool for prosecutors to take on larger crimes.                                                                          
                                                                                                                                
CHAIR GRAY sought to confirm that  the bill would make it a crime                                                               
to steal mail,  whereas under existing statute, the  mail must be                                                               
opened to be charged with a crime.                                                                                              
                                                                                                                                
MS. SCHROEDER stated  that under current law, mail  theft that is                                                               
subject to valuation is considered  theft.  In addition, there is                                                               
another statute that deals with the opening of mail.                                                                            
                                                                                                                                
2:08:56 PM                                                                                                                    
                                                                                                                                
CHAIR GRAY offered closing remarks.                                                                                             
                                                                                                                                
[HB 77 was held over.]                                                                                                          

Document Name Date/Time Subjects
HB 77 FN Public Defender Agency.pdf HJUD 2/21/2025 1:00:00 PM
HB 77
HB 77 FN DPS.pdf HJUD 2/21/2025 1:00:00 PM
HB 77
HB 77 Explanation of Changes Ver.N to Ver.H.pdf HJUD 2/21/2025 1:00:00 PM
HB 77
HB 77 FN Courts.pdf HJUD 2/21/2025 1:00:00 PM
HB 77
HB 77 FN Law.pdf HJUD 2/21/2025 1:00:00 PM
HB 77
HB 77 FN Office of Public Advocacy.pdf HJUD 2/21/2025 1:00:00 PM
HB 77
HB 77 Sectional Analysis Ver.H.pdf HJUD 2/21/2025 1:00:00 PM
HB 77
HB 77 Version N.pdf HJUD 2/21/2025 1:00:00 PM
HB 77
HB 77 Sectional Analysis Ver.H.pdf HJUD 2/21/2025 1:00:00 PM
HB 77
HB 77 Supporting Doc 1 Victims of Identity Theft, 2021 DOJ.pdf HJUD 2/21/2025 1:00:00 PM
HB 77
HB 77 Supporting Doc 2 Mail Theft-Related Check Fraud is on the Rise.pdf HJUD 2/21/2025 1:00:00 PM
HB 77
HB 77 Version H CS.pdf HJUD 2/21/2025 1:00:00 PM
HB 77
HB77 Powerpoint.pdf HJUD 2/21/2025 1:00:00 PM
HB 77
HB 77 Explanation of Changes Ver.N to Ver H.pdf HJUD 2/21/2025 1:00:00 PM
HB 77
HB 77 Sponsor Statement Ver.H.pdf HJUD 2/21/2025 1:00:00 PM
HB 77