Legislature(2025 - 2026)GRUENBERG 120
01/22/2026 03:15 PM House STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| HB133 | |
| HB124 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 133 | TELECONFERENCED | |
| *+ | HB 124 | TELECONFERENCED | |
HB 124-AIDEA
3:55:00 PM
CHAIR CARRICK announced the final order of business would be
HOUSE BILL NO. 124 "An Act relating to the Alaska Industrial
Development and Export Authority; and providing for an effective
date."
She said this would be just an introductory session to HB 124
and a chance to gather questions. Next week, the committee will
hear directly from Alaska Industrial Development and Export
Authority (AIDEA) for the staff to answer questions and have
further discussion.
3:55:51 PM
The committee took an at-ease from 3:56 p.m. to 3:58 p.m.
[During the at-ease, Chair Carrick turned the gavel over to Vice
Chair Story.]
3:58:41 PM
CHAIR CARRICK, as prime sponsor, said that she was excited to
bring forward HB 124. She noted that AIDEA had provided many
documents for the committee to review [in the committee file].
She began a PowerPoint presentation [hard copy included in the
committee files] entitled "The AIDEA Accountability Act HB 124."
The presentation reviewed the mission, brief history and
economic impact of AIDEA. She said this proposed legislation is
not about getting rid of AIDEA but about striking a balance.
CHAIR CARRICK continued, on slide 3, "AIDEA projects and loans."
She shared that a small number of projects are under $10 million
to some that are over $50 million. She highlighted some
projects.
CHAIR CARRICK said the purpose of HB 124 is to strike a balance
between AIDEA's mission while enhancing oversight. Other state-
owned organizations don't have the same oversight, but AIDEA is
a bit fundamentally different.
CHAIR CARRICK said she is trying to help juxtapose public
backlash against AIDEA with the desire for AIDEA to move
forward.
4:05:09 PM
STUART RELAY, Staff, Representative Ashley Carrick, Alaska State
Legislature, on behalf of Representative Carrick presented the
sectional analysis of HB 124 [included in the PowerPoint and as
a separate document that read as follows, original punctuation
provided]:
Section 1: Short title; The AIDEA Accountability Act.
Section 2: Amends AS 44.88.030(a)
• Requires legislative confirmation for Board Members
• Increases the size of the board from 7 to 9 members.
• Designates at least one board (1) board seat for
someone representing an environmental advocacy
organization.
• Adds two (2) board members: one (1) appointed by the
Speaker of the House, and one (1) appointed by the
President of the Senate.
Section 3: Amends AS 44.88.030(c)
• Conforming language relating to the increased number
of board members.
• Increases the length of board terms from two (2) to
three (3) years.
• Prohibits Governor's from removing board members. •
Section 4: Requires the AIDEA Board to establish a
personnel policy and minimum qualifications for the
executive director.
Section 5: Conforming language relating to Section 14.
Section 6: Requires the AIDEA Board to adopt
regulations by passing a resolution.
Section 7: Amends AS 44.88.085(d)
• Increases public notice requirement from 15 to 30
days for board meetings.
• Requires the Board to give each testifier at least
two (2) minutes for their testimony.
• Requires the Board to publish written responses to
public comments.
• Requires the Board to publish a written
justification when they adopt, amend, or repeal
regulations.
Section 8: Adds new section AS 44.88.107,
Caps the size of the AIDEA Revolving Fund, and all its
sub funds at $500 million. If the fund goes over $500
million, surplus funds go into the general fund.
Section 9: Adds new section AS 44.88.179 requiring
the following actions to be taken for all projects
over $10 million.
• Seek approval from a municipality or borough if
a project is within their boundaries.
• Produce the following findings relating to a
project
• It is economically advantageous.
• The project applicant is financially
responsible. • Address concerns about demand
on public roadways and facilities relating
to this project.
• Employment projections and data.
The project is economically and
financially feasible.
• The project is legal.
• Produce a report about the projected economic,
social, and environmental effects of the project
• Host a public hearing on the project.
• Submit a report to the legislature that
includes all documents relating to the findings
required in this section.
• Gain approval from the legislature by law.
Section 10: Prohibits AIDEA Board members from voting
on measures in which they have an indirect ownership
interest.
Section 11-12: Updates annual reporting requirements
to the Legislature.
• (Sec. 11) Specifies that AIDEA's annual report
is due to the Legislature on January 10. This
requirement is already in statute; this is a
conforming change suggested by Legal Services.
• (Sec. 12) Requires AIDEA to develop performance
metrics, and those metrics must be included in
the annual report. Those metrics include an
analysis of:
• Job creation
• Industry growth
• Financial and technical assistance
provided to state business and private
investment increases.
• (Sec. 12) Requires the annual report to include
the findings of AIDEA's annual audit.
• (Sec. 12) Requires the annual report to include
a summary of actions taken at all board meetings.
Section 13: Requires AIDEA to be subject to the Alaska
Public Records Act. •
Section 14: Requires the Attorney General to approve
all lawsuits pursued by AIDEA. If the Attorney General
approves a lawsuit, the legislature must be notified.
Approval by the AG is not required for AIDEA to
respond to a lawsuit.
Section 15: Repeals AS 44.88.380, which provides
immunity for AIDEA employees for damages for acts done
while performing the duties of their position.
Section 16: Transition; Appointment of Board Members
• The terms of board members (except the Commissioners
of DCCED and DOR) expire when the Legislature confirms
at least two of the Governor's appointments.
• The term lengths of newly appointed AIDEA Board
members, appointed by the governor after the effective
date of this act are as follows.
• Two members for one-year terms.
• Two members for two-year terms.
• One member for a three-year term.
• The Speaker of the House and President of the Senate
shall appoint board members on or before the 30th day
of the first regular session of the 35th legislature.
• Previous board members are not prohibited from
serving on the Board.
Section 17: Effective date, January 1, 2027.
4:10:51 PM
REPRESENTATIVE MCCABE asked, "What did AIDEA do to make you so
mad?" He said that this is not a minor adjustment, but "rips the
guts out" of a program and puts it under supervision of the
legislature. He questioned the need to micromanage AIDEA.
CHAIR CARRICK countered that this is essentially dissolving
AIDEA's capacity to do its work. A lot of reforms are broad and
sweeping but are for the public's benefit not just the
legislature, such as timely public notice, allowing for public
testimony for regulation changes, and submitting the board for
the Public Records Act.
REPRESENTATIVE MCCABE asked for confirmation that AIDEA was one
of only five or six of the public corporations that returned a
dividend to the state, in the amount of $20 million.
CHAIR CARRICK agreed that AIDEA did return a dividend and was
the only corporation to do so. Historically, over the last
number of years, AIDEA has returned a low dividend considering
the range available for returning a dividend. She didn't want
to comment on their specific investment and economic factors
that led to that distribution. This proposed legislation is a
mechanism for the legislature to be a little more involved in
AIDEA's governance, therefore allowing for more development.
REPRESENTATIVE MCCABE said that this could be fleshed out when
AIDEA comes to visit.
4:13:37 PM
REPRESENTATIVE HOLLAND first asked a clarifying question on the
sectional analysis, regarding two elements in section 9. On the
findings related to a project, he asked whether one would be
compliant with comprehensive plans that would be applicable to
that jurisdiction. The second question is how the prime sponsor
would expect the approval of the legislature on these larger
projects, as the legislature only meets once a year.
CHAIR CARRICK said she did not see that the proposed legislation
is specifically addressing comprehensive plans. Many of the
communities affected by most projects don't have municipal
governance. She addressed concerns on public roadways that the
local community would be consulted. She asked Representative
Holland to restate the second question.
REPRESENTATIVE HOLLAND said he was curious about the last
bullet, gain approval by the legislature by law. He wondered
how this would impact AIDEA on processing large projects in a
timely manner.
CHAIR CARRICK said this is a great question and the biggest
policy question: At what threshold does the legislature set the
project's approval to ensure AIDEA is able to do its work in a
timely fashion? She said that projects over a size that the
legislature determines are "large projects" would receive an
additional level of approval and oversight. The threshold is
currently set at $10 million as a large project." It is my
intent that a project the size of Ambler Road would qualify as a
large project. The Interior gas buildout in Fairbanks, $139
million project, is a very large project. There could be
different interpretations and balance on how it would affect
timelines. The legislature wants AIDEA to be able to "strike
while the iron is hot" within reason.
4:18:15 PM
REPRESENTATIVE HIMSCHOOT had a couple questions as far as the
idea of using a comprehensive plan of the community on page 4 of
the bill. If there were a comprehensive plan, it wouldn't be
difficult to make a resolution. She asked if that would cover
the need to align with the comprehensive plan for a project.
CHAIR CARRICK answered probably and a lot of the legislation is
policy calls in terms of what the intent was and what would take
place. She said this may be an area that needs to be worked on.
REPRESENTATIVE HIMSCHOOT said the next question is about AIDEA
itself having a long history and has AIDEA been reviewed in this
way.
CHAIR CARRICK said that her staff could answer this question,
and it is a great question for AIDEA when its representative
presents to us next week.
4:20:16 PM
STUART RELAY stated that in his research, there was some reform
in the '80s related to bonding which was the last big reform of
AIDEA.
REPRESENTATIVE HIMSCHOOT said she has not thoroughly read the
statutes, but it is only the corporation that is required to
share a dividend.
CHAIR CARRICK said she believes it is the only one required.
4:21:17 PM
REPRESENTATIVE VANCE explained she is trying to understand the
motivation and goal of the bill. A few years ago, there was a
bill about public processes, as AIDEA was always going into
executive sessions. She said that she sees components in this
bill as indicating that there isn't transparency with AIDEA.
This bill gives the perception of micromanaging AIDEA, anti-
economic development, and it looks like overregulation. She
stated that if the bill was about creating a clearer public
process and transparency, then she could support it.
CHAIR CARRICK said that she appreciated that question. She
reviewed the mission of AIDEA. The proposed legislation is just
a starting point for hearing from peers and colleagues and to
strike a better balance. She confirmed that there have been a
lot of public pushbacks, especially on some hot button topics.
She would like to elevate the good work and heavily supported
work that AIDEA does across the state, while not ignoring the
need for transparency, or people's concerns. Some of the large
projects have more scrutiny as the projects impact a lot of
communities involved. She stated her intention to put out a
bill that strikes a better balance.
4:25:50 PM
REPRESENTATIVE MCCABE said his staff did a little research in
this period of budgetary issues and found that AIDEA has
returned about a half billion dollars to state. He said AIDEA
is a good source for revenue and should be left alone. He
asked, "Would you be supportive of AIDEA being a good place for
the spur project?"
CHAIR CARRICK responded that nothing in HB 124 says that a
project couldn't go forward; it would require more oversight.
She said with the spur line, AIDEA would be a great mechanism.
She stated that the threshold for qualifying as a project needs
extra scrutiny by the legislature.
REPRESENTATIVE MCCABE said another concern involves an
environmental person on the board to further hamstring AIDEA.
CHAIR CARRICK said this was a direct request from constituents,
objecting to insertion that it would be a hamstring mechanism.
Many projects in the state are not going forward because the
legislature does not have the expertise in this area. She
wondered if having an environmental advocacy person would spur
additional energy projects.
4:31:14 PM
REPRESENTATIVE HOLLAND noted that AIDEA's assets total about
$1.7 billion. A dividend of 5 percent would be about $70
million instead of $20 million this year. The statute gives the
AIDEA board a decision about that percentage of dividend to
return to the state. He asked, "Is there consideration of
dividend as part of the look at AIDEA?"
CHAIR CARRICK responded that she was open to considering it.
REPRESENTATIVE HOLLAND stated that the bill would require AIDEA
to divest two-thirds of its current portfolio. He asked for
more clarity of what is in the AIDEA portfolio.
CHAIR CARRICK answered that this is a great question for when
AIDEA is before the committee. She added that this information
is not easily available.
4:37:44 PM
VICE CHAIR STORY thanked Representative Carrick for bringing
forward HB 124, the legislature wants to ensure all the entities
are sound and the public have confidence in them. She received
e-mails about the lack of public process and how that can be
improved. Also, e-mails say in recent years there have not been
as many jobs as the legislature thought there was to be. Moody
downgraded AIDEA's credit rating in 2019 due to a lack of
transparency. Building public confidence in AIDEA is something
to strive for as well as with whatever agency the legislature is
working with.
[HB 124 was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| CS HB 133 STA Ver. L.pdf |
HSTA 1/22/2026 3:15:00 PM |
HB 133 |
| HB133.Summary of Changes Ver. T to Ver. L.pdf |
HSTA 1/22/2026 3:15:00 PM |
HB 133 |
| HB 133 Fiscal Note Packet Updated 1-22-26.pdf |
HSTA 1/22/2026 3:15:00 PM |
HB 133 |
| HB 124 Sponsor Statement Ver. A.pdf |
HSTA 1/22/2026 3:15:00 PM |
HB 124 |
| HB 124 Ver. A.pdf |
HSTA 1/22/2026 3:15:00 PM |
HB 124 |
| HB 124 Sectional Analysis Ver. A.pdf |
HSTA 1/22/2026 3:15:00 PM |
HB 124 |
| HB 124 Backup Whitepaper Ver. A.pdf |
HSTA 1/22/2026 3:15:00 PM |
HB 124 |
| HB 124 Presentation 1-22-26.pdf |
HSTA 1/22/2026 3:15:00 PM |
HB 124 |
| HB 124 Written Testimony 2025.pdf |
HSTA 1/22/2026 3:15:00 PM |
HB 124 |
| HB 124 Backup - Docs from AIDEA.pdf |
HSTA 1/22/2026 3:15:00 PM |
HB 124 |
| HB 124 Backup AIDEA Annual Report 2025.pdf |
HSTA 1/22/2026 3:15:00 PM |
HB 124 |
| HB124-DCCED-AIDEA-01-21-26.pdf |
HSTA 1/22/2026 3:15:00 PM |
HB 124 |