Legislature(2025 - 2026)BELTZ 105 (TSBldg)

04/29/2025 03:30 PM Senate STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 37 STRATEGIC PLANS FOR STATE AGENCIES TELECONFERENCED
Moved SB 37 Out of Committee
-- Public Testimony <Time Limit May Be Set> --
*+ SB 2 AI, DEEPFAKES, CYBERSECURITY, DATA XFERS TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
*+ SB 33 SYNTHETIC MEDIA: LIABILITY; ELECTIONS TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
Bills Previously Heard/Scheduled:
+= SB 26 ELIMINATE DAYLIGHT SAVING TIME TELECONFERENCED
Moved SB 26 Out of Committee
+= SB 102 ELIMINATE DAYLIGHT SAVING TIME TELECONFERENCED
Moved SB 102 Out of Committee
**Streamed live on AKL.tv**
        SB   2-AI, DEEPFAKES, CYBERSECURITY, DATA XFERS                                                                     
                                                                                                                                
3:56:38 PM                                                                                                                    
CHAIR KAWASAKI announced  the consideration of SENATE  BILL NO. 2                                                               
"An  Act relating  to disclosure  of election-related  deepfakes;                                                               
relating  to use  of artificial  intelligence by  state agencies;                                                               
and relating to transfer of  data about individuals between state                                                               
agencies."                                                                                                                      
                                                                                                                                
3:57:17 PM                                                                                                                    
SENATOR  SHELLEY HUGHES,  District M,  Alaska State  Legislature,                                                               
Juneau, Alaska, sponsor  of SB 2 said state agencies  need to use                                                               
AI responsibly,  protect Alaskans'  data and  personal liberties,                                                               
and ensure fairness and transparency.  She said while AI can help                                                               
address workforce  and budget  challenges by  streamlining tasks,                                                               
AI use must balance innovation  with safeguards against harm. She                                                               
shared an experience serving on  the National Conference of State                                                               
Legislators Task Force on AI.  She stressed the responsibility of                                                               
state  agencies  to  apply  AI  appropriately  and  transparently                                                               
without hindering private sector innovation.                                                                                    
                                                                                                                                
4:00:11 PM                                                                                                                    
SENATOR HUGHES moved to slide  2, and defined the different types                                                               
of A.I.:                                                                                                                        
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                              
     Defining A.I.                                                                                                            
                                                                                                                              
        ARTIFICIAL INTELLIGENCE: falls into two primary                                                                       
     categories:                                                                                                                
                                                                                                                                
     GENERATIVE:  Machine-based system  designed to  operate                                                                  
     with  varying  levels  of  autonomy  that  may  exhibit                                                                    
     adaptiveness  after deployment  and that,  for explicit                                                                    
     or implicit objectives, infers  how to generate outputs                                                                    
     from input the system receives.                                                                                            
                                                                                                                                
     RULES-BASED:   Computational   program   or   algorithm                                                                  
     designed to  process information in a  logical way that                                                                    
     does   not  produce   inferential  output   beyond  its                                                                    
     original programming and query parameters.                                                                                 
                                                                                                                                
4:00:33 PM                                                                                                                    
SENATOR HUGHES moved to slide 3, Why Now Why Here, and discussed                                                                
the following points:                                                                                                           
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     WHY  NOW? A.I.  is here.  It is  evolving at  lightning                                                                  
     speed. We cannot stop it. We cannot ignore it.                                                                             
                                                                                                                                
     "A.I. is a  tool and in itself is  not inherently evil.                                                                    
     Our job  is to protect  against bad actors  and harness                                                                    
     A.I. for  good the  very best we  can."-Senator Shelley                                                                    
     Hughes                                                                                                                     
                                                                                                                                
     WHY HERE?  Congress is unlikely to  unite on parameters                                                                  
     and  best practices  anytime  soon. State  legislatures                                                                    
     are  more nimble  and ready  to mitigate  the harm  and                                                                    
     bridle the benefits of A.I.                                                                                                
                                                                                                                                
4:01:11 PM                                                                                                                    
SENATOR HUGHES moved to slide 4, Why this Focus, and discussed                                                                  
the following points:                                                                                                           
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     1. State Agency Use of A.I.                                                                                              
        a) Targeting private sector development and                                                                             
        deployment would stifle innovation and be a fool's                                                                      
        errand for a state with a small population.                                                                             
        b) Setting the parameters for state agency use is                                                                       
        necessary                                                                                                               
          i. to safeguard the public                                                                                            
          ii. to ensure appropriate deployment that will                                                                        
          offer   efficiencies   and   solutions   for   the                                                                    
          workplace                                                                                                             
                                                                                                                                
     2. Political Deepfakes                                                                                                   
        a) No time to waste. Elections occur every year.                                                                        
        b) In general, lack of trust     chaos.                                                                                 
                                                                                                                                
SENATOR HUGHES said when SB 2  was first drafted, it was the only                                                               
legislation   addressing   political   deepfakes.   Since   other                                                               
legislation  now covers  that issue,  the committee  may want  to                                                               
remove the political deepfake section  and allow it to be handled                                                               
separately  to  ensure  proper  disclosure  and  accurate  public                                                               
information.                                                                                                                    
                                                                                                                                
4:01:53 PM                                                                                                                    
SENATOR  HUGHES moved  to slide  5,  A Good  Starting Point,  and                                                               
discussed the following points:                                                                                                 
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     AGREEING ON AI PRINCIPLES                                                                                                
                                                                                                                                
        • Differentiate between tool and actor                                                                                  
          -Protect against bad actors                                                                                           
          -Support innovation for beneficial uses                                                                               
        • Aim for tech neutrality                                                                                               
        • Assign human oversight and responsibility                                                                             
        • Maintain transparency                                                                                                 
        • Avoid harm/injury                                                                                                     
        • Respect sensitive personal data privacy and                                                                           
          security                                                                                                              
        • Embrace data hygiene                                                                                                  
        • Avoid creating/reinforcing unfair bias                                                                                
        • Uphold laws and protect individual rights                                                                             
                                                                                                                                
4:03:19 PM                                                                                                                    
EIELIA  PRESTON,  Staff,  Senator  Shelly  Hughes,  Alaska  State                                                               
Legislature, Juneau, Alaska, co-presented  the slideshow for SB 2                                                               
and moved to slide 6, What it Does-High Level:                                                                                  
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
    1.   Adds   disclosure   statement   requirements   for                                                                     
     political deepfake communications.                                                                                         
                                                                                                                                
      2.  Adds new sections regarding state agency use of                                                                       
     artificial intelligence and individuals' data.                                                                             
                                                                                                                                
     3.  Adds  section to allow persons who  suffers harm to                                                                    
     bring civil action to superior court.                                                                                      
                                                                                                                                
4:04:03 PM                                                                                                                    
MS. PRESTON moved to slide 7, What it Does-a bit in the weeds:                                                                  
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Requires biennial  inventory and  report of  AI systems                                                                  
     being used by state agencies published on DOA website.                                                                     
                                                                                                                                
     1.Name and vendor of system                                                                                                
     2.General capabilities and uses                                                                                            
     3.Most recent impact assessment completed date                                                                             
                                                                                                                              
     Requires  biennial  impact   assessments  to  determine                                                                  
     efficacy and continued use of systems.                                                                                     
                                                                                                                                
4:04:35 PM                                                                                                                    
MS. PRESTON moved to slide 8, What it Does-a bit in the weeds:                                                                  
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Impact Assessment                                                                                                        
                                                                                                                                
     1.System efficacy                                                                                                          
     2.Human oversight                                                                                                          
     3.Accountability mechanisms                                                                                                
     4.Decision appeals process                                                                                                 
     5.Benefits, liability, and risks to state                                                                                  
     6.Effects   on  liberty,   finances,  livelihood,   and                                                                    
      privacy interests of individuals, including effects                                                                       
      from geolocation data use.                                                                                                
     7.Unlawful  discrimination   or  disparate   impact  on                                                                    
      individual or group                                                                                                       
     8.Policies  and procedures  governing  process of  A.I.                                                                    
      system use for consequential decision-making.                                                                             
                                                                                                                                
4:05:07 PM                                                                                                                    
MS. PRESTON moved to slide 9, What it Does-a bit in the weeds:                                                                  
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Requires state agencies to                                                                                               
                                                                                                                                
     1.Notify   individuals   who    may   be   legally   or                                                                    
     significantly affected                                                                                                     
       2.Obtain individual's consent before soliciting or                                                                       
     acquiring sensitive personal data or sharing data with                                                                     
     another state agency*                                                                                                      
        3.Provide appeals process including manual human                                                                        
     review                                                                                                                     
       4.Inform and acquire consent if AI used in hiring                                                                        
     interview video                                                                                                            
      5.When outsourced, multi-factor authentication must                                                                       
     secure system and stored data                                                                                              
                                                                                                                                
MS. PRESTON said these matters  require transparency, such as the                                                               
Department of Public Safety  sharing legally required information                                                               
with the court system.                                                                                                          
                                                                                                                                
4:05:49 PM                                                                                                                    
SENATOR  HUGHES  commented  that   the  asterisk  on  the  slides                                                               
explains  there is  an  exemption for  the  Department of  Public                                                               
Safety.                                                                                                                         
                                                                                                                                
4:05:55 PM                                                                                                                    
MS. PRESTON moved to slide 10, What it Does-a bit in the weeds:                                                                 
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Prohibits* state agencies from using.                                                                                    
                                                                                                                              
     1.Biometric identification e.g., facial recognition                                                                        
     2.Emotion recognition                                                                                                      
     3.Cognitive behavioral manipulation of individuals or                                                                      
     groups                                                                                                                     
     4.Social scoring                                                                                                           
     5.AI systems that use data hosted in hostile nations                                                                       
                                                                                                                                
     *With provisional exceptions for Department of Safety                                                                      
                                                                                                                                
4:06:24 PM                                                                                                                    
SENATOR  HUGHES recommended  an amendment  to reference  the U.S.                                                               
Code for defining foreign adversary  nations. She said this would                                                               
avoid  updates  and  provide  clarity,  since  views  on  hostile                                                               
nations may differ.                                                                                                             
                                                                                                                                
4:06:53 PM                                                                                                                    
MS.  PRESTON moved  to  slide  11 and  showed  examples of  other                                                               
countries with issues from deepfakes during an election.                                                                        
                                                                                                                                
4:07:17 PM                                                                                                                    
MS. PRESTON moved to slide 12, and read the following quote:                                                                    
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     "The  fact-checkers trying  to  hold  the line  against                                                                    
     disinformation on  social media  in Slovakia  say their                                                                    
     experience  shows  AI  is already  advanced  enough  to                                                                    
     disrupt elections,  while they lack the  tools to fight                                                                    
     back." (Morgan Meaker, The Wired, 2023)                                                                                    
                                                                                                                                
4:07:40 PM                                                                                                                    
SENATOR  HUGHES noted  that while  deepfakes disrupted  elections                                                               
abroad   in   2024,   U.S.  research   found   deepfakes   spread                                                               
misinformation yet did not change  outcomes. Still, 52 percent of                                                               
Americans struggle  to distinguish fact from  fiction in election                                                               
news,  and  studies  show  2550   percent  of  deepfakes  aim  to                                                               
mislead.  She  said  growing awareness  has  helped  people  spot                                                               
fakes,  but disclosure,  enforcement,  penalties, and  injunctive                                                               
relief remain important parts of the proposal.                                                                                  
                                                                                                                                
4:09:49 PM                                                                                                                    
CHAIR KAWASAKI opined  that 52 percent is a low  number of people                                                               
that struggle to identify misinformation.  He referenced slide 13                                                               
stating  that with  AI filters  everything would  need a  content                                                               
disclosure requirement. He asked for  her views on how disclosure                                                               
laws should apply to deepfakes.                                                                                                 
                                                                                                                                
4:10:57 PM                                                                                                                    
SENATOR HUGHES reiterated the definition of a deepfake:                                                                         
                                                                                                                                
     It would  have to  be something that  creates something                                                                    
     false  that  would appear  to  a  reasonable person  to                                                                    
     depict  a real  individual  saying  or doing  something                                                                    
     that   did   not   actually  occur   and   provides   a                                                                    
     fundamentally different understanding  or oppression of                                                                    
     an individual's appearance, conduct, or spoken words.                                                                      
                                                                                                                                
SENATOR HUGHES replied  that that AI was also  used positively in                                                               
the last  election, such as  translating candidate  speeches into                                                               
other  languages. She  wanted to  keep SB  2 narrowly  focused on                                                               
deceptive  uses,  like  making  someone   appear  to  say  or  do                                                               
something that never happened.                                                                                                  
                                                                                                                                
4:12:11 PM                                                                                                                    
CHAIR KAWASAKI announced invited testimony on SB 2.                                                                             
                                                                                                                                
4:13:17 PM                                                                                                                    
SPENCE   PURNELL,   Resident   Senior  Fellow,   Technology   and                                                               
Innovation,  R Street  Institute,  Tampa,  Florida, testified  by                                                               
invitation on SB  2. He agreed that deepfakes are  a real problem                                                               
and  supports a  narrow definition  to avoid  overreach, favoring                                                               
disclosure  over  bans.  He   stressed  government  roles  beyond                                                               
regulation, such as education and  awareness. He endorsed SB 2 as                                                               
a  well-written bill  that  sets  responsible boundaries  without                                                               
discouraging  beneficial  AI  use.  He noted  the  importance  of                                                               
careful regulation given the technology's early stage.                                                                          
                                                                                                                                
4:15:51 PM                                                                                                                    
CHAIR KAWASAKI  stated his belief  that disclosure  is effective,                                                               
though it must be done  carefully. He said if everything requires                                                               
a  disclosure,  people may  start  ignoring  them altogether.  He                                                               
asked for an explanation on  how other states have set guidelines                                                               
for  the  use  of artificial  intelligence,  particularly  around                                                               
disclosure.                                                                                                                     
                                                                                                                                
4:16:22 PM                                                                                                                    
MR.  PURNELL  warned  that  to avoid  liability,  many  will  add                                                               
disclosure  statements to  political communications,  which could                                                               
lessen the impact. While not a  bad outcome, he stressed that the                                                               
need  is  for  digital  literacy and  civic  education,  enabling                                                               
citizens to critically evaluate information.  He noted that AI is                                                               
just  the  first of  many  emerging  technologies, and  long-term                                                               
resilience  depends on  fostering  cultural  change and  critical                                                               
thinking rather than relying solely on policy or technology.                                                                    
                                                                                                                                
4:19:06 PM                                                                                                                    
DANIEL  CASTRO,   Vice  President,  Information   Technology  and                                                               
Innovation Foundation, Washington,  D.C., testified by invitation                                                               
on  SB 2  and emphasized  that generative  AI offers  significant                                                               
benefits  while  posing  risks, particularly  with  deepfakes  in                                                               
elections. He  highlighted the need  for narrowly  tailored state                                                               
policies  that   focus  on   harmful  manipulation   rather  than                                                               
legitimate AI use. Key  principles include meaningful disclosure,                                                               
timely   enforcement,   accountability   for  bad   actors,   and                                                               
preserving  beneficial uses  like translation  and accessibility.                                                               
He stressed that  government use of AI should  be transparent and                                                               
accountable, and that policies  should protect election integrity                                                               
without stifling innovation.                                                                                                    
                                                                                                                                
4:22:56 PM                                                                                                                    
CHAIR KAWASAKI  shared an example  of Alaska's overly  broad cell                                                               
phone law  that unintentionally restricted common  screen devices                                                               
and had to  correct the next year. He asked  if other states have                                                               
similarly overregulated technology and later  had to roll back or                                                               
amend the laws.                                                                                                                 
                                                                                                                                
4:24:02 PM                                                                                                                    
MR. CASTRO answered yes and said  some states passed AI laws with                                                               
poor definitions that  overreached, creating ineffective labeling                                                               
requirements.  He said  over-labeling can  dilute trust  signals,                                                               
and  such rules  only  bind legitimate  actors,  not foreign  bad                                                               
actors spreading  misinformation. He cautioned  against imbalance                                                               
and urged  for technology-neutral  policies focused  on deceptive                                                               
media in elections rather than AI specifically.                                                                                 
                                                                                                                                
4:26:21 PM                                                                                                                    
NATE   PERSILY,  Professor,   Stanford   Law  School,   Stanford,                                                               
California, testified  by invitation on  SB 2 and stated  that AI                                                               
amplifies  the   abilities  of  all   actorselection   officials,                                                               
candidates,  or   foreign  adversariesto   pursue   goals.  While                                                               
Americans  are  especially  pessimistic   about  AI's  effect  on                                                               
democracy,  evidence from  recent elections  shows little  actual                                                               
use of  deepfakes to sway voters.  He said the greater  danger is                                                               
eroding  trust in  authentic media,  as people  become better  at                                                               
spotting  falsehoods   and  worse  at  recognizing   truth.  This                                                               
distrust   could  harm   democracy   more   than  the   deepfakes                                                               
themselves.  He stated  that some  states have  banned deepfakes,                                                               
while  many  others,  including  bills   like  SB  2,  are  under                                                               
consideration and focus on disclosure.  Disclosure is viewed as a                                                               
modest  yet   important  first  step,  giving   voters  tools  to                                                               
understand  what content  is AI-generated  without overregulating                                                               
rapidly evolving technology.                                                                                                    
                                                                                                                                
4:31:23 PM                                                                                                                    
CHAIR KAWASAKI  asked how  the public can  be educated  to better                                                               
discern truth  from misinformation,  especially when  many people                                                               
no  longer trust  what they  see in  the news  or online  and can                                                               
easily be misled.                                                                                                               
                                                                                                                                
4:33:05 PM                                                                                                                    
MR.   PERSILY   responded   that  social   media   has   replaced                                                               
authoritative  news   sources,  creating  an   environment  where                                                               
misinformation spreads easily. While  empowering users with tools                                                               
to  identify  synthetic  content   is  a  step  forward,  lasting                                                               
solutions require  building widespread critical  thinking skills.                                                               
He said  however, repeatedly warning  people not to  trust online                                                               
content  risks is  leading people  to  distrust everything,  even                                                               
information that is accurate.                                                                                                   
                                                                                                                                
4:35:37 PM                                                                                                                    
CHAIR KAWASAKI asked from a  legal perspective, whether penalties                                                               
for  misinformation  or  AI  misuse can  serve  as  an  effective                                                               
deterrent.                                                                                                                      
                                                                                                                                
4:36:03 PM                                                                                                                    
MR. PERSILY  replied that a  blanket ban on AI  in communications                                                               
would  be  unconstitutional  as  overly  broad  under  the  First                                                               
Amendment.  However,  disclosure  requirements are  a  recognized                                                               
constitutional  safe harbor.  Courts, including  in the  Citizens                                                               
United case,  have upheld strong  disclosure rules. SB  2 follows                                                               
that model, treating failure to  disclose AI use, especially when                                                               
intended  to manipulate  images,  similarly  to other  regulatory                                                               
contexts where nondisclosure can trigger enforcement.                                                                           
                                                                                                                                
4:37:55 PM                                                                                                                    
CHAIR  KAWASAKI requested  an explanation  on whether  libel laws                                                               
have been  used to address  cases where  AI makes it  appear that                                                               
someone said something they did not.                                                                                            
                                                                                                                                
4:38:21 PM                                                                                                                    
MR.   PERSILY  replied   that  libel   laws  have   seen  limited                                                               
application  in   AI  contexts,  primarily   with  non-consensual                                                               
intimate imagery,  which poses significant risks,  especially for                                                               
young people.  For public figures, libel  requires proving actual                                                               
malice, making it  harder to pursue cases  involving AI deepfakes                                                               
of officials. He said while  libel shows some promise, disclosure                                                               
requirements  are  often a  more  practical  regulatory tool  for                                                               
election-related AI content.                                                                                                    
                                                                                                                                
4:40:16 PM                                                                                                                    
CHAIR KAWASAKI opened public testimony on SB 2.                                                                                 
                                                                                                                                
4:40:30 PM                                                                                                                    
MIKE  COONS, representing  self,  Wasilla,  Alaska, testified  in                                                               
support  of  SB 2  and  shared  personal challenges  adapting  to                                                               
technology and  noted that AI  is far  more advanced today.  SB 2                                                               
provides  initial protection  for responsible  government use  of                                                               
AI. He  said while AI  can accelerate information  processing and                                                               
improve accuracy, the  final product must rely  on human judgment                                                               
and innovation.  He named his concerns  that include overreliance                                                               
on AI,  the potential  for deepfakes to  mislead the  public, and                                                               
the risk that students may  lose critical skills to discern truth                                                               
from  misinformation.   He  opined   that  human   oversight  and                                                               
responsibility are  essential to  ensure AI supports  rather than                                                               
undermines decision-making and public trust.                                                                                    
                                                                                                                                
4:43:12 PM                                                                                                                    
SENATOR HUGHES  stated that SB 2  is technology-neutral, covering                                                               
AI and other forms of  manipulation like Photoshop for deepfakes,                                                               
with disclosure required for any  altered content. She said state                                                               
agencies   using  AI,   especially  in   consequential  decisions                                                               
affecting  individuals, should  follow  clear parameters,  obtain                                                               
consent, and  ensure transparency. The fiscal  note imposing high                                                               
costs  is  seen as  unnecessary,  as  responsible AI  use  should                                                               
streamline  work  rather  than   require  additional  staff.  She                                                               
emphasized  that  AI  use  must  remain  transparent,  fair,  and                                                               
practical,  with common-sense  guidelines  rather than  excessive                                                               
regulation.  Properly implemented,  AI offers  long-term benefits                                                               
and potential savings for state operations.                                                                                     
                                                                                                                                
4:46:57 PM                                                                                                                    
CHAIR KAWASAKI stated that the  fiscal note includes staffing and                                                               
resources totaling  $5.6 million for operations  and $2.5 million                                                               
for  contractual services.  He said  the Finance  Committee would                                                               
need to  review SB 2 and  then it would continue  to Judiciary as                                                               
the second committee of referral. He  said he would work with the                                                               
bill sponsor on accelerating SB 2.                                                                                              
                                                                                                                                
4:47:52 PM                                                                                                                    
SENATOR  GRAY-JACKSON  stressed  the urgency  of  addressing  AI,                                                               
noting  it moves  too  quickly  for a  task  force approach,  and                                                               
expressed willingness to help reduce  the fiscal note to move the                                                               
bill forward.                                                                                                                   
                                                                                                                                
4:48:27 PM                                                                                                                    
CHAIR KAWASAKI kept public testimony open for SB 2.                                                                             
                                                                                                                                
4:49:05 PM                                                                                                                    
CHAIR KAWASAKI held SB 2 in committee.                                                                                          

Document Name Date/Time Subjects
SB0002A.pdf SSTA 4/29/2025 3:30:00 PM
SB 2
SB 2 AI Sponsor Statement.pdf SSTA 4/29/2025 3:30:00 PM
SB 2
SB 2 Sectional Analysis.pdf SSTA 4/29/2025 3:30:00 PM
SB 2
SB 33 version A.pdf SSTA 4/29/2025 3:30:00 PM
SB 33
SB 33 Sponsor Statement version A.pdf SSTA 4/29/2025 3:30:00 PM
SB 33
SB 33 Sectional Analysis version A.pdf SSTA 4/29/2025 3:30:00 PM
SB 33
2025 - Testimony of Daniel Castro - AK AI Deepfakes.pdf SSTA 4/29/2025 3:30:00 PM
SB 2
SB 2 AI Presentation S STA.pdf SSTA 4/29/2025 3:30:00 PM
SB 2