Legislature(2021 - 2022)GRUENBERG 120

03/01/2022 03:00 PM House STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HJR 29 SUPPORT UNITED STATES POSTAL SERVICE TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+= SB 71 COUNCIL ON ARTS: PLATES & MANAGE ART TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 234 POLITICAL CONTRIBUTION LIMITS TELECONFERENCED
Moved CSHB 234(STA) Out of Committee
**Streamed live on AKL.tv**
          HJR 29-SUPPORT UNITED STATES POSTAL SERVICE                                                                       
                                                                                                                                
3:08:27 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS  announced that the first  order of business                                                               
would be HOUSE JOINT RESOLUTION  NO. 29, Urging the United States                                                               
Congress to  pass the Postal  Service Reform Act of  2021; urging                                                               
the United  States Congress to  pass the Postal Banking  Act; and                                                               
urging the  United States Postal  Service to  continue delivering                                                               
mail six days a week under historic delivery standards.                                                                         
                                                                                                                                
3:08:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GEORGE  RAUSCHER,   Alaska  State   Legislature,                                                               
introduced  HJR 29,  as the  prime sponsor.   He  paraphrased the                                                               
sponsor statement [included in the  committee packet], which read                                                               
in its entirety as follows:                                                                                                     
                                                                                                                                
     HJR  29  recognizes  that   the  United  States  Postal                                                                    
     Service  plays a  crucial  role  in communities  across                                                                    
     Alaska, especially  in areas of Alaska  accessible only                                                                    
     by air or water.                                                                                                           
                                                                                                                                
     We  have  seen  over  the years  that  prices  have  be                                                                    
     rising, while  at the  same time  delivery of  mail has                                                                    
     been  slowed.  The Postal  Service  has  also lost  $69                                                                    
     billion over the  past 11 fiscal years,  in addition to                                                                    
     unfunded  liabilities  that  are twice  the  amount  of                                                                    
     their annual revenue.                                                                                                      
                                                                                                                                
     This is  noticeable in rural Alaska,  where the Federal                                                                    
     Government's   failure  to   recognize  the   need  for                                                                    
     adequate staffing has  hit those communities especially                                                                    
     hard.                                                                                                                      
                                                                                                                                
     This resolution  would send a  formal request  from the                                                                    
     Alaska State  Legislature, to Congress, asking  them to                                                                    
     pass Senate  Bill 1720, the  Postal Service  Reform Act                                                                    
     of 2021.                                                                                                                   
                                                                                                                                
       And finally, would request that the United States                                                                        
     Congress pass Senate Bill 4616, the Postal Banking Act                                                                     
     of 2020.                                                                                                                   
                                                                                                                                
        Time is of the essence and action is required to                                                                        
       preserve the United States Postal Service and the                                                                        
     services it provides for the residents of Alaska                                                                           
                                                                                                                                
3:11:18 PM                                                                                                                    
                                                                                                                                
RYAN MCKEE,  Staff, Representative George Rauscher,  Alaska State                                                               
Legislature,   on  behalf   of  Representative   Rauscher,  prime                                                               
sponsor, indicated  that a forthcoming  change would  replace "S.                                                               
1720" [the Postal  Service Reform Act of 2021] with  "HR 3076" in                                                               
the bill language  to ensure that the  proper federal legislation                                                               
was being cited.  He  said Representative Rauscher's office would                                                               
work through the chair to draft the amendment.                                                                                  
                                                                                                                                
3:12:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CLAMAN   inquired  about  the  sponsors   of  the                                                               
corresponding federal legislation.                                                                                              
                                                                                                                                
MR. MCKEE offered to follow up with the requested information.                                                                  
                                                                                                                                
3:12:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STORY   asked  for  a  summary   of  the  federal                                                               
legislation.                                                                                                                    
                                                                                                                                
MR. MCKEE explained  that HR 3076, the Postal  Service Reform Act                                                               
of  2022, would  require the  Office of  Personnel Management  to                                                               
create  the postal  service health  benefits  program for  postal                                                               
employees  and  retirees, and  repeal  the  requirement that  the                                                               
United  States  Postal  Service (USPS)  pre-fund  future  retiree                                                               
health benefits.   He relayed that the USPS would  be required to                                                               
deliver mail  six days  per week and  create an  online dashboard                                                               
with service  performance data at  the national and  local level.                                                               
HR  3076 would  allow USPS  to form  strategic partnerships  with                                                               
state, local,  and tribal governments  to provide  non-postal and                                                               
noncommercial  services.    Additionally,  S.  4619,  the  Postal                                                               
Banking  Act of  2020,  would  create a  pilot  program aimed  at                                                               
providing for  low interest loans  to low-income  communities and                                                               
establish an alternative to predatory loans.                                                                                    
                                                                                                                                
3:14:36 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS welcomed invited testimony.                                                                                
                                                                                                                                
3:14:50 PM                                                                                                                    
                                                                                                                                
ALAN SORUM, Mayor  Pro Tem, City of Valdez, urged  passage of the                                                               
proposed  resolution.   He  opined  that  USPS worked  well  when                                                               
properly supported,  acknowledging its  vitality to the  state of                                                               
Alaska  and  its  rural  residents.     He  highlighted  existing                                                               
disruptions, such as staffing issues  and personnel shortages, at                                                               
the  local  postal  office  in   Valdez  and  other  communities.                                                               
Nationally,  USPS  was experiencing  problems  with  the cost  of                                                               
service.   He  understood  that Alaska's  federal delegation  was                                                               
working  to  resolve  some  of   these  issues,  recognizing  the                                                               
importance of  USPS to the state.   He indicated that  HJR 29 was                                                               
intended  to support  the federal  delegation in  its efforts  to                                                               
pass legislation  addressing postal service reform.   In response                                                               
to the question from Representative  Claman, he reported that The                                                               
Postal  Service  Reform Act  of  2021  was co-sponsored  by  U.S.                                                               
Senators Lisa  Murkowski and Dan  Sullivan.  Its  companion bill,                                                               
HR 3076, was co-sponsored by Congressman Don Young.                                                                             
                                                                                                                                
3:19:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN asked  why the  postal service  no longer                                                               
offered banking services.                                                                                                       
                                                                                                                                
MR.  SORUM shared  his  understanding that  in  1910, banks  were                                                               
struggling, which  created the need  for an  alternative location                                                               
where  people  could  access  their  savings  and  basic  banking                                                               
services.                                                                                                                       
                                                                                                                                
3:19:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CLAMAN  inquired  about  the  provisions  in  the                                                               
federal  bills  related  to   unfunded  liabilities  for  pension                                                               
payments and the  requirement to pre-pay the pensions.   He asked                                                               
whether  the  proposed  legislation would  maintain  the  pension                                                               
obligations while removing the pre-funding requirement.                                                                         
                                                                                                                                
MR.  SORUM answered  yes, explaining  that the  legislation would                                                               
establish an organization to oversee that.                                                                                      
                                                                                                                                
3:21:03 PM                                                                                                                    
                                                                                                                                
CHAIR  KREISS-TOMKINS  invited   additional  questions  from  the                                                               
committee for the bill sponsor.                                                                                                 
                                                                                                                                
3:21:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN  turned  attention   to  page  2  of  the                                                               
resolution, which  cited a loss of  $69 billion over the  last 11                                                               
years.  He asked whether that figure was accurate.                                                                              
                                                                                                                                
MR. MCKEE answered yes.                                                                                                         
                                                                                                                                
REPRESENTATIVE EASTMAN highlighted  USPS's unsustainable unfunded                                                               
liabilities that  were twice annual  revenues in addition  to the                                                               
loss of $69 billion.  He  sought to confirm that the proposed fix                                                               
was  for the  postal service,  which was  going bankrupt,  to get                                                               
into banking.                                                                                                                   
                                                                                                                                
MR. MCKEE  answered yes, through  the pilot program,  which could                                                               
raise  an  estimated $9  billion  annually  through low  interest                                                               
loans and banking services.                                                                                                     
                                                                                                                                
REPRESENTATIVE  EASTMAN  asked  how   they  would  fund  the  low                                                               
interest loans.                                                                                                                 
                                                                                                                                
MR. MCKEE offered to follow up with the requested information.                                                                  
                                                                                                                                
3:22:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAUFMAN requested  additional information  on the                                                               
underlying  federal legislation,  which would  clarify unanswered                                                               
questions.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  EASTMAN  requested   sectional  analyses  of  the                                                               
underlying federal legislation.                                                                                                 
                                                                                                                                
MR. MCKEE  offered to  follow up  with the  requested information                                                               
for HR 3076, as it was a current bill in Congress.                                                                              
                                                                                                                                
REPRESENTATIVE EASTMAN  sought to confirm that  HJR 29 referenced                                                               
a second piece of federal legislation.                                                                                          
                                                                                                                                
MR. MCKEE clarified that [S.4614]  the Postal Banking Act of 2020                                                               
died  in the  last session  of Congress;  however, he  understood                                                               
that parts of it could be added to existing legislation.                                                                        
                                                                                                                                
REPRESENTATIVE EASTMAN  asked which parts were  being recommended                                                               
in HJR  29 and whether  sectional analyses could be  provided for                                                               
those "parts."                                                                                                                  
                                                                                                                                
MR. MCKEE  clarified that HJR 29  was urging Congress to  pass HR
3076, the Postal Service Reform  Act of 2022, and reintroduce and                                                               
pass S. 4614, the Postal Banking Act of 2020.                                                                                   
                                                                                                                                
3:25:53 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS announced that HJR 29 was held over.                                                                       
                                                                                                                                

Document Name Date/Time Subjects
SB071_ArtsCouncil_SamplePlates_PlateDemand_07Feb2022.pdf HSTA 3/1/2022 3:00:00 PM
SB 71
HJR 29 Hearing Request memo.pdf HSTA 3/1/2022 3:00:00 PM
HJR 29
HJR 29 Version A.PDF HSTA 3/1/2022 3:00:00 PM
HJR 29
SB 71 Fiscal Note EED-ASCA-1-11-2022.pdf HSTA 3/1/2022 3:00:00 PM
SB 71
SB 71 Fiscal Note DOA-DMV-1-24-2022.pdf HSTA 3/1/2022 3:00:00 PM
SB 71
HJR 29 Sponsor Statement 03.01.2022.pdf HSTA 3/1/2022 3:00:00 PM
HJR 29
HB 234 Amendment I.10 by Kreiss-Tomkins.pdf HSTA 3/1/2022 3:00:00 PM
HB 234
HB 234 Amendment packet with votes - H STA 03.01.22.pdf HSTA 3/1/2022 3:00:00 PM
HB 234