Legislature(2025 - 2026)GRUENBERG 120

03/11/2025 03:15 PM House STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to a Call of the Chair --
+= HB 91 MARIJUANA: TAX/RETAIL STORES/REGISTRATION TELECONFERENCED
Moved CSHB 91(STA) Out of Committee
+= HB 43 ELECTIONS, VOTING, BALLOTS TELECONFERENCED
Heard & Held
*+ HB 104 ADDRESS CONFIDENTIALITY PROGRAM TELECONFERENCED
Scheduled but Not Heard
+= HB 119 GAS PIPELINE FAIRBANKS SPUR TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 30 OFFICE OF ENTREPRENEURSHIP TELECONFERENCED
Moved CSHB 30(STA) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
             HOUSE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         March 11, 2025                                                                                         
                           3:49 p.m.                                                                                            
                                                                                                                                
                             DRAFT                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Ashley Carrick, Chair                                                                                            
Representative Andi Story, Vice Chair                                                                                           
Representative Rebecca Himschoot                                                                                                
Representative Ky Holland                                                                                                       
Representative Sarah Vance                                                                                                      
Representative Kevin McCabe                                                                                                     
Representative Elexie Moore                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 91                                                                                                               
"An  Act relating  to the  lawful operation  of retail  marijuana                                                               
stores;  relating  to  marijuana  cultivation;  relating  to  the                                                               
registration of  marijuana establishments; relating  to marijuana                                                               
taxes; relating to  the duties of the Department  of Revenue; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED CSHB 91(STA) OUT OF COMMITTEE                                                                                      
                                                                                                                                
HOUSE BILL NO. 30                                                                                                               
"An Act establishing the office  of entrepreneurship; relating to                                                               
new  businesses  in the  state;  relating  to reports  concerning                                                               
procurements  by  agencies;  and  relating  to  initial  business                                                               
license fees for new businesses in the state."                                                                                  
                                                                                                                                
     - MOVED CSHB 30(STA) OUT OF COMMITTEE                                                                                      
                                                                                                                                
HOUSE BILL NO. 119                                                                                                              
"An Act  relating to an  in-state natural gas  pipeline developed                                                               
by the Alaska Gasline Development  Corporation; and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 43                                                                                                               
"An Act relating to elections; relating to voters; relating to                                                                  
the crime of unlawful interference with voting; and providing                                                                   
for an effective date."                                                                                                         
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 104                                                                                                              
"An Act creating and relating to the address confidentiality                                                                    
program; and providing for an effective date."                                                                                  
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  91                                                                                                                  
SHORT TITLE: MARIJUANA: TAX/RETAIL STORES/REGISTRATION                                                                          
SPONSOR(s): REPRESENTATIVE(s) CARRICK                                                                                           
                                                                                                                                
02/10/25       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/10/25       (H)       STA, FIN                                                                                               
02/18/25       (H)       STA AT 3:15 PM GRUENBERG 120                                                                           
02/18/25       (H)       Scheduled but Not Heard                                                                                
02/22/25       (H)       STA AT 1:00 PM GRUENBERG 120                                                                           
02/22/25       (H)       Heard & Held                                                                                           
02/22/25       (H)       MINUTE(STA)                                                                                            
02/25/25       (H)       STA AT 3:15 PM GRUENBERG 120                                                                           
02/25/25       (H)       Heard & Held                                                                                           
02/25/25       (H)       MINUTE(STA)                                                                                            
03/06/25       (H)       STA AT 3:15 PM GRUENBERG 120                                                                           
03/06/25       (H)       Heard & Held                                                                                           
03/06/25       (H)       MINUTE(STA)                                                                                            
03/11/25       (H)       STA AT 3:15 PM GRUENBERG 120                                                                           
                                                                                                                                
BILL: HB  30                                                                                                                  
SHORT TITLE: OFFICE OF ENTREPRENEURSHIP                                                                                         
SPONSOR(s): REPRESENTATIVE(s) HOLLAND                                                                                           
                                                                                                                                
01/22/25       (H)       PREFILE RELEASED 1/10/25                                                                               

01/22/25 (H) READ THE FIRST TIME - REFERRALS

01/22/25 (H) STA, L&C 02/22/25 (H) STA AT 1:00 PM GRUENBERG 120 02/22/25 (H) Heard & Held 02/22/25 (H) MINUTE(STA) 02/27/25 (H) STA AT 3:15 PM GRUENBERG 120 02/27/25 (H) Heard & Held 02/27/25 (H) MINUTE(STA) 03/06/25 (H) STA AT 3:15 PM GRUENBERG 120 03/06/25 (H) Scheduled but Not Heard 03/11/25 (H) STA AT 3:15 PM GRUENBERG 120 BILL: HB 119 SHORT TITLE: GAS PIPELINE FAIRBANKS SPUR SPONSOR(s): REPRESENTATIVE(s) STAPP 02/26/25 (H) READ THE FIRST TIME - REFERRALS 02/26/25 (H) STA, RES 03/06/25 (H) STA AT 3:15 PM GRUENBERG 120 03/06/25 (H) Heard & Held 03/06/25 (H) MINUTE(STA) 03/11/25 (H) STA AT 3:15 PM GRUENBERG 120 BILL: HB 43 SHORT TITLE: ELECTIONS, VOTING, BALLOTS SPONSOR(s): REPRESENTATIVE(s) SCHRAGE

01/22/25 (H) PREFILE RELEASED 1/17/25

01/22/25 (H) READ THE FIRST TIME - REFERRALS

01/22/25 (H) STA, FIN 02/11/25 (H) STA AT 3:15 PM GRUENBERG 120 02/11/25 (H) Heard & Held 02/11/25 (H) MINUTE(STA) 02/13/25 (H) STA AT 3:15 PM GRUENBERG 120 02/13/25 (H) Heard & Held 02/13/25 (H) MINUTE(STA) 03/11/25 (H) STA AT 3:15 PM GRUENBERG 120 WITNESS REGISTER BRANDON SPANOS, Deputy Director Tax Division Department of Revenue Anchorage, Alaska POSITION STATEMENT: Offered information during the hearing on HB 91. STUART RELAY, Staff Representative Ashley Carrick Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Presented the summary of changes in the proposed committee substitute for HB 30, Version I. CAMERON EBERSOLE, Staff Representative Ky Holland Alaska State Legislature Juneau, Alaska POSITION STATEMENT: On behalf of Representative Holland, prime sponsor, spoke to the fiscal impacts of HB 30. DANIEL HECKMAN, Regulatory Manager Golden Valley Electric Association (GVEA) Fairbanks, Alaska POSITION STATEMENT: Testified in support of HB 119. DAVID GUTTENBERG, Assembly Member Fairbanks North Star Borough Fairbanks, Alaska POSITION STATEMENT: Testified in support of HB 119. JOMO STEWART, President Fairbanks Economic Development Corporation Fairbanks, Alaska POSITION STATEMENT: Testified in support of HB 119. GRIER HOPKINS, Mayor Fairbanks North Star Borough Fairbanks, Alaska POSITION STATEMENT: Testified in support of HB 119. ELENA SUDDUTH, General Manager Interior Gas Utility Fairbanks, Alaska POSITION STATEMENT: Testified in support of HB 119. STUART RELAY, Staff Representative Ashley Carrick Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Presented the summary of changes for the proposed committee substitute for HB 43, Version I. ACTION NARRATIVE 3:49:15 PM CHAIR ASHLEY CARRICK called the House State Affairs Standing Committee meeting to order at 3:49 p.m. Representatives Moore, Vance, Holland, Himschoot, Story, and Carrick were present at the call to order. Representative McCabe arrived as the meeting was in progress. HB 91-MARIJUANA: TAX/RETAIL STORES/REGISTRATION 3:50:44 PM CHAIR CARRICK announced that the first order of business would be HOUSE BILL NO. 91, "An Act relating to the lawful operation of retail marijuana stores; relating to marijuana cultivation; relating to the registration of marijuana establishments; relating to marijuana taxes; relating to the duties of the Department of Revenue; and providing for an effective date." 3:51:09 PM REPRESENTATIVE VANCE moved to adopt Amendment 1 to HB 91, labeled 34-LS0528\A.2, C. Radford, 3/5/25,. Which read as follows: Page 5, line 17: Delete "a new subsection" Insert "new subsections" Page 5, following line 17: Insert a new subsection to read: "(g) The K-12 public education fund is established in the general fund. In addition to the accounting under (c) and (f) of this section, the Department of Administration shall separately account for 25 percent of the tax collected under this section and deposit it into the K-12 public education fund. The legislature may use the annual estimated balance in the fund to make appropriations to the Department of Education and Early Development for grants to school districts for classroom resources, teacher salaries, student support services, and educational infrastructure improvements." Reletter the following subsection accordingly. CHAIR CARRICK objected for the purpose of discussion. REPRESENTATIVE VANCE explained that Amendment 1 would place 25 percent of the tax collected under "this section" into the K-12 public education fund. She shared that although typically she does not like to designate funds, she would like "to align this with the public expectation." 3:52:42 PM CHAIR CARRICK asked for confirmation that the funding pinpointed under Amendment 1 is money that would otherwise be allocated to the undesignated general fund (UGF), not money allotted to address recidivism reduction or marijuana treatment. REPRESENTATIVE VANCE confirmed that is correct. 3:53:36 PM REPRESENTATIVE HIMSCHOOT asked if there is an added expense associated with establishing a fund. REPRESENTATIVE VANCE answered, "I'm under no impression that this is a new fund." REPRESENTATIVE HIMSCHOOT observed that the amendment specifies "is established in the general fund". REPRESENTATIVE VANCE said it was her intent to use a pre- existing account and "divert it that direction." REPRESENTATIVE HIMSCHOOT pointed to lines 12-14, as numbered in Amendment 1, and she said it sounds like a different grant system. CHAIR CARRICK suggested a representative from the Department of Revenue may be able to shed some light on the topic. 3:55:52 PM BRANDON SPANOS, Deputy Director, Tax Division, Department of Revenue, stated that he is not the best person to ask about funds. He said he is familiar with funds that the department currently deposits "the marijuana money" into. He indicated that that is set up in statute but said he is "not familiar enough to know if that's necessary every time." He said he does not see a specific K-12 fund discussed in the fiscal notes. He recommended asking the question of the Office of Management & Budget (OMB). That said, he said there would be no additional cost for the Tax Division to administer a new fund after the initial cost of setting it up. 3:57:17 PM CHAIR CARRICK said that as prime sponsor of the bill, she liked the Amendment 1. REPRESENTATIVE VANCE, in response to Chair Carrick, said she thinks the key is that "the legislature may" [emphasis on "may"] us [the 25 percent specified under Amendment 1 and it would "go to education." 3:59:14 PM REPRESENTATIVE HIMSCHOOT asked what might be taken away from the Department of Health (DOH) if Amendment 1 were adopted. REPRESENTATIVE VANCE answered that there would be no "taking away" because the 25 percent Amendment 1 proposes to use for education is currently going into the general fund. 4:00:30 PM REPRESENTATIVE STORY commented that she really liked Amendment 1 but cautioned that it could make another grant program to administer. 4:01:43 PM REPRESENTATIVE HIMSCHOOT asked if the funding from DEED is always called a grant. 4:02:05 PM The committee took an at-ease from 4:02 p.m. to 4:09 p.m. 4:09:28 PM CHAIR CARRICK moved to adopt Conceptual Amendment 1 to Amendment 1, with the following pages and lines as numbered in Amendment 1: Page 1, line 7 Delete "The K-12 public education fund is established in the general fund." Page 1, line 10 Delete "K-12" Page 1, line 10, following "fund." Delete "The legislature may use the annual estimated balance in the fund to make appropriations to the Department of Education and Early Development for grants to school districts for classroom resources, teacher salaries, student support services, and educational infrastructure improvements." 4:10:40 PM CHAIR CARRICK announced, there being no objection, Conceptual Amendment 1 to Amendment 1 was adopted. 4:10:52 PM REPRESENTATIVE HOLLAND expressed that although he was not opposed to Amendment 1, as amended, he has always been hesitant to tie education funding to [sin] taxes. He said putting education on the back of these kinds of taxes puts him in an uneasy state. Further, he expressed concern that revenue from the marijuana industry is decreasing. He followed that by emphasizing his support for a focus on the issues of recidivism and "the marijuana misuse prevention component." 4:13:11 PM REPRESENTATIVE STORY said she understood that the bill in its current form would drop tax [revenue] significantly and questioned whether the general fund would be needed to make up the lost revenue for the behavioral health treatment and recidivism grants. She asked what the existing grants would be losing. 4:14:16 PM CHAIR CARRICK remarked that it is hard to anticipate potential increase or decreases. She stated that the 6 percent has been modeled to "neutralize" the current revenue for those programs. She noted that other legislation could affect outcomes but speculated there would not be a loss. 4:15:14 PM REPRESENTATIVE MCCABE inquired whether the [marijuana] industry had paid back the start-up money the legislature had [designated]. If not, he stated, he does not think the legislature should give the industry more money. 4:16:13 PM MR. SPANOS, at the invitation of Chair Carrick, said that "this was a voter initiative" and DOR did not have a fiscal note; therefore, he does not know what the costs were. That said, he reported that DOR collected the following from the Alaska marijuana industry, 25 percent of which goes to the GF: $27.2 million in fiscal year 2024 (FY 24); $29.5 million in FY 23; $28.6 in FY 22; and $30 million in FY 21. 4:17:58 PM CHAIR CARRICK removed her objection to Amendment 1, as amended. There being no further objection, Amendment 1, as amended, was adopted. 4:18:19 PM REPRESENTATIVE VANCE said she shares concerns of others regarding "making the right move." She said it would be better to collect tax "on the retail end," which is what is supported under HB 91. She indicated that she would recommend a sunset date to the next committee of referral to allow reconsideration of the tax in 10 years. She said she would not object to the bill moving forward but expressed that it needs further review. 4:20:48 PM CHAIR CARRICK entertained a motion. 4:20:59 PM The committee took a brief at ease at 4:21 p.m. 4:21:10 PM REPRESENTATIVE STORY moved to report HB 191, as amended, out of committee with individual recommendations and the accompanying fiscal notes and to allow Legislative Legal Services to make any necessary conforming changes. There being no objection, CSHB 91(STA) was reported out of the House State Affairs Standing Committee. 4:21:43 PM The committee took an at-ease from 4:21 p.m. to 4:24 p.m. HB 30-OFFICE OF ENTREPRENEURSHIP 4:24:05 PM CHAIR CARRICK announced that the next order of business would be HOUSE BILL NO. 30, "An Act establishing the office of entrepreneurship; relating to new businesses in the state; relating to reports concerning procurements by agencies; and relating to initial business license fees for new businesses in the state." 4:24:50 PM REPRESENTATIVE STORY moved to adopt the proposed committee substitute (CS) for HB 30, Version 34-LS0320\I, Gunther, 3/5/25, as a working document. 4:25:10 PM REPRESENTATIVE MCCABE objected. 4:25:28 PM STUART RELAY, Staff, Representative Ashley Carrick, Alaska State Legislature, presented the summary of changes in the proposed committee substitute, Version I, for HB 30 [included in the committee file], which read as follows [original punctuation provided, and the original bill version referred to as "Version N"]: Section 1: Version N would have changed Department of Administration's procurement report from biennial to annual. This change has been eliminated. Section 2: no changes Section 3: Deleted entirely: removing the business license exemption for new businesses. Section 4 from version N is now section 3. Section 3: Rewrites Sec. 44.33.853. Duties to clarify the goals of the Office of Entrepreneurship with more specific language. These specific duties are: • Provide a central point of contact for new businesses seeking information, resources and state services. • Coordinate with community entrepreneurship programs, economic development organizations, local governments, military installations, regional development organizations, small business development centers and the university to improve delivery of services to new businesses to identify and address the needs of new businesses. • Assist local jurisdictions with development of their own small business liaison. Note these changes do not change the scope of the legislation but do address committee feedback for enhanced program focus. Section 3: 44.33.859. Definitions now includes preexisting statutory definition that applies to Alaska Bidder Preference to tighten definition of "New Business in the State." 4:27:21 PM CHAIR CARRICK offered her understanding that the changes proposed under Version I would significantly reduce the fiscal impact of the legislation. She invited the bill sponsor's staff to speak to that. 4:27:38 PM CAMERON EBERSOLE, Staff, Representative Ky Holland, Alaska State Legislature, on behalf of Representative Holland, prime sponsor of HB 30, stated that one of more considerable fiscal costs under the original bill version was the cost of business license exemptions for new businesses. Since the value of the that provision weighed against the cost was dubious, that section was removed in Version I. 4:28:46 PM REPRESENTATIVE MCCABE asked if updated fiscal notes were available. MR. RELAY answered that he spoke with the department, whose representative said that "the new fiscal notes will be for the new version of the bill in its next committee of referral." REPRESENTATIVE MCCABE maintained his objection to the motion to adopt Version I to HB 30. 4:29:17 PM A roll call vote was taken. Representatives Holland, Himschoot, Story, and Carrick voted in favor of the motion to adopt the proposed CS for HB 30, Version 34-LS0320\I, Gunther, 3/5/25, as a working document. Representatives McCabe, Moore, and Vance voted against it. Therefore, Version I was before the committee by a vote of 4-3. 4:30:15 PM REPRESENTATIVE VANCE said that she loved idea of helping new businesses, but questioned why the sponsor feels it the government's role to establish an office of entrepreneurship to address this issue when typically this is addressed by non- profit organizations and the private sector. REPRESENTATIVE HOLLAND, as prime sponsor of HB 30, responded that the new language offers requested specificity and may result in a "smaller fiscal note." He said the government plays an essential role in developing "the entrepreneurial and innovation ecosystem." He opined that HB 30, Version I, would be a step in accelerating desired diversification of the economy and supporting needed emerging sectors. He mentioned multiple reports supporting the idea of increased state involvement in developing industries, and he said the proposed legislation would create some of the resources by which to make this happen. 4:34:37 PM REPRESENTATIVE MCCABE said he struggles with idea of directing how state agencies should spend money. He said he cannot think of a worse body to direct state agencies than the legislature even though he allowed that that is the job of the legislature. He further expressed his unease about "streamlining government by adding more government." He added that he started new businesses without the help of government. He concluded that he would be a "no" vote on HB 30, Version I. 4:35:42 PM REPRESENTATIVE STORY talked about "the excitement of public testifiers in room" when sharing their experience starting businesses. She said she thinks it's time for state to grow its innovative spirit, and she stated her support for HB 30, Version I. 4:36:44 PM REPRESENTATIVE STORY moved to report CSHB 30, Version 34- LS0320\I, Gunther, 3/5/25, out of committee with individual recommendations and the accompanying fiscal notes. 4:37:00 PM REPRESENTATIVE MCCABE objected. 4:37:04 PM A roll call vote was taken. Representatives Holland, Himschoot, Story, and Carrick voted in favor of the motion to report CSHB 30, Version 34-LS0320\I, Gunther, 3/5/25 out of committee with individual recommendations and the accompanying fiscal notes. Representatives Moore, McCabe, and Vance voted against it. Therefore, CSHB 30(STA) was reported out of the House State Affairs Standing Committee by a vote of 4-3. 4:37:45 PM The committee took a brief at-ease at 4:37 p.m. HB 119-GAS PIPELINE FAIRBANKS SPUR 4:37:52 PM CHAIR CARRICK announced that the next order of business would be HOUSE BILL NO. 119, "An Act relating to an in-state natural gas pipeline developed by the Alaska Gasline Development Corporation; and providing for an effective date." 4:41:02 PM CHAIR CARRICK opened public testimony on HB 119. 4:41:23 PM DANIEL HECKMAN, Regulatory Manager, Golden Valley Electric Association (GVEA), testified in support of HB 119, which aligns with GVEA's goals and supports measures to ensure short-term certainty for inputting liquified natural gas (LNG) to Cook Inlet and state efforts to assess the feasibility of connecting a gas line connecting the North Slope to the Railbelt, including a spur to the Fairbanks North Slope Borough. 4:44:25 PM MR. HECKMAN, in response to Representative McCabe, noted that GVEA's plant in North Pole, Alaska, is slated for a dual fuel fired set-up that would allow for both oil and natural gas. To a follow-up question, he noted that the cost of this conversation would be significant. 4:46:36 PM CHAIR CARRICK noted that powerplant on University of Alaska Fairbanks (UAF) campus can burn coal or natural gas. 4:47:03 PM DAVID GUTTENBERG, Assembly Member, Fairbanks North Star Borough, noted that the assembly has passed numerous resolutions in support of a spur line into Fairbanks, and he expressed frustration that it was not a part of the project from the beginning. He talked about the state's constitution requiring the state's resources to be of maximum benefit to all Alaskans. He said the Alaska Gasline Development Corporation (AGDC) "has always given the concept of a spur line built into the project kind of a sideways glance." 4:50:32 PM JOMO STEWART, President, Fairbanks Economic Development Corporation (FEDC), testified in support of HB 119 as a much needed "conversation starter." He spoke about AGDC's indication that Fairbanks lateral is not integral to the overall gasline project and the concern that causes for the Fairbanks North Star Borough. He said that while FEDC understands that highest priority of the State of Alaska is to monetize North Slope gas "to the good of all residents" and its secondary concern is to get gas down to Southcentral Alaska, it would be "a tragedy" if Fairbanks were bypassed or the gas was too expensive to use or the borough were not in the position to support the gas line with its demands. He stated that while HB 119 is not a solution, it is a start of a valuable conversation. 4:53:44 PM GRIER HOPKINS, Mayor, Fairbanks North Star Borough, testified in support of HB 119. He emphasized the importance of not bypassing Fairbanks and noted that the borough has been developing a natural gas market. He emphasized the high cost of heating in Interior Alaska. He said HB 119 would ensure that those in the greater borough area are "not left behind" and do not see increased costs for natural gas "at their doorstep." 4:57:17 PM MR. HOPKINS, in response to Representative Vance, described the role of the Fairbanks North Star Borough as making certain that the project is economical at the local level and to begin working on all projects necessary to ensure access for the spur line. He indicated that HB 119 would give ensure the spur is going to happen. In response to a follow-up question, he added that the borough would also need to see headway with the project as a whole. Knowing that they would be part of project would allow the borough to plan. In response to encouragement from Representative Vance to begin community engagement, he shared that community financial assistance plans and educational programs have been created. 5:00:42 PM REPRESENTATIVE MCCABE talked local improvement districts, talked about resistance to put gas lines into some of his districts. Said low income people have not been able to pay, asked if this would be an issue. MR. HOPKINS, in response to Representative McCabe regarding the lack of financial means in some communities, said the borough received federal funding for line expansion and price to hook up is paid by those who want to hook up. He talked about density mapping and a process for figuring out interest. He said the borough is allowing residential and business choice, needs to be economical. He offered further details about service areas. 5:05:09 PM ELENA SUDDUTH, General Manager, Interior Gas Utility, testified in support of HB 119. She Interior climate is harsh and the price of available fuel sources is high. She stated that currently IGU supplies approximately 1.5 billion cubic feet (bcf) of natural gas annually, and she explained the involved process that must happen to supply that gas because there is no natural gas pipeline that comes to the region. This process more than doubles the price of natural gas to the Interior compared to the Southcentral region. She said a Wood Mackenzie study projected that Fairbanks could transition to natural gas and achieve a 90 percent penetration rate from 2031 to 2033, for a total demand of 11 bcf. She compared that to the current demand of 1.5 bcf. She stated, "Reaching this level of adoption requires an affordable rate." She said without the infrastructure, the Interior might not reach the projected level, which could result in increased costs for the rest of the state during phase I of the project. She said the mandate under HB 119 for the spur to Fairbanks as essential, and given the already high cost of energy in this region, she said it is crucial that financial responsibility for this lateral not fall on its residents. She concluded that HB 119 would establish the spur as a statewide priority. 5:08:50 PM CHAIR CARRICK, after ascertaining there was no one else who wished to testify, closed public testimony on HB 119. 5:09:02 PM CHAIR CARRICK set an amendment deadline and announced that HB 119 was held over. HB 43-ELECTIONS, VOTING, BALLOTS 5:10:04 PM CHAIR CARRICK announced that the final order of business would be HOUSE BILL NO. 43, "An Act relating to elections; relating to voters; relating to the crime of unlawful interference with voting; and providing for an effective date." 5:10:46 PM REPRESENTATIVE STORY moved to adopt the proposed committee (CS) for HB 43, Version 34-LS0231\I, Dunmire, 3/10/25, as a working document. 5:11:03 PM REPRESENTATIVE VANCE objected. REPRESENTATIVE VANCE said that HB 43 is essentially the Senate Rules Standing Committee's election bill and she worked extensively with that committee to produce an election bill with which everyone can agree. She said the topic of election reform has been worked on for six years with no agreement reached. She indicated that the proposed committee substitute was supposed to reflect the agreements that were made but does not. She stated that Alaska needs common sense election reform. She talked about cleaning up the voter rolls and noted that issue is not addressed under the proposed CS. She allowed that there are "a lot of good ideas" but expressed grave concern that "the good ideas don't have security measures in place," which can result in error. She said she would have numerous amendments to reach compromise. 5:13:32 PM A roll call vote was taken. Representatives Holland, Himschoot, Story, and Carrick voted in favor of the motion to adopt the proposed CS for HB 43, Version 34-LS0231\I, Dunmire, 3/10/25, as a working document. Representatives Vance and McCabe voted against it. Therefore, Version I was before the committee by a vote of 4-[2]. 5:14:25 PM CHAIR CARRICK expressed appreciation of Representative Vance's remarks. She explained that HB 43, Version I, is a product of combining aspects of the governor's bill on elections, the Senate version, and the original version of HB 43. She said she looks forward to a robust amendment process. 5:16:14 PM STUART RELAY, Staff, Representative Ashley Carrick, Alaska State Legislature, presented the summary of changes for the proposed committee substitute for HB 43, Version I [included in the committee file], which read as follows [original punctuation provided]: Page 1 line 1, Updates title to reflect additions to the bill Section 1, unchanged. Section 2, new section. Clarifies the residency requirements to define a residence as a place where a voter has a reasonable and articulable plan to return to whenever they are absent and provides that the presumption that a voter's registered address is correct may be rebutted by evidence that the voter has established residency at a different location. Section 3, replaces language in former section 2 with the following language. Adds two subsections related to voter registration. • Subsection (g) allows voters to designate a language to receive election materials in from the languages that the Division of Elections (Division) is required to provide language assistance in. • Subsection (h) requires voters registering within 30 days of the election to confirm that they have resided in their house district since at least 30 days before the election. Section 4, new section. Clarifies that electronic signatures are valid of the voter or a person acting with power of attorney on behalf of the voter. Section 5, formerly Section 3. Section 6, formerly Section 4. Section 7, formerly Section 5. Section 8, formerly Section 6. Section 9, formerly Section 7. Section 10, formerly Section 8. Section 11, new section. Requires the Division to send a single forwardable notice as part of voter list maintenance and adds additional categories of voters to receive notices. Section 12, formerly Section 9. Section 13, new section. Requires the director to develop a process for voters to cancel their registrations and require that instructions for how to cancel one's registration be prominently posted at polling places. (Sect 15 SB 64 Ver I) Section 14, new section. Requires the division to employ 5 rural community liaisons and have one assigned to each of the elections regions. The liaisons shall collaborate with tribes, municipalities, community organizations and other key stakeholders to facilitate access to early and absentee voting in rural areas and ensure that rural precincts are fully staffed. Section 15, new section. Repeals requirement that the Alaska Public Offices Commission have offices in each senate district. Section 16 and 17, new sections. Removes size and number requirements for voting booths. Section 18, new section. Requires that notices be posted informing voters of language assistance available at precincts where it is required by federal law. Section 19, new section. Codifies the procedure for when a person who requested an absentee ballot attempts to vote in person. Section 20, makes changes to section 10. Clarifies that the division must include results for all rank levels on the precinct results, including unofficial results. Section 21, new section. Enacts a new subsection related to unofficial results and ballot review data. • Subsection (b) requires the Division to release data for which ballots have been counted along with unofficial results. Section 22, new section. Relates to pay for election board members. The director may increase pay for election workers but pay decreases must be done by regulation. Section 23, new section. Allows candidates and ballot proposition campaigns to observe the State Review Board process. Section 24, new section. Allows the Division to adopt additional risk limiting audit procedures as part of the State Review Board process. Section 25, formerly section 11. Section 26, formerly section 12. Section 27, formerly section 13. Section 28, formerly section 14. Changes the period that a qualified voter may apply in person for an absentee ballot from 30 days in Ver N to 20 days. Section 29, formerly section 15. Changes the early voting period from 30 days in Ver N to 20 days. Section 30, formerly section 16. Section 31, formerly section 17. Section 32, new section. Provides that special needs ballots may not be rejected because of errors made by poll workers or representatives. Section 33, formerly section 18. Section 34, new section. States that a ballot received after the day of the election that is not postmarked or postmarked after the election may be counted if it is marked with a United States Postal Service tracking barcode that indicates it was mailed on or before the day of the election. Section 35, new section. Adds subsection (m) to allow voters to request by-mail ballots in any language for which the division is required to provide language assistance by federal law. Section 36, formerly section 19. Section 37, new section. Requires the division to begin counting absentee ballots at least seven days before the election and to release the first tabulated results when polls close at 8pm on Election Day. Section 38, formerly section 20. Section 39, formerly section 21. Section 40, formerly section 22. Section 41, new section. Requires that the director provide secure ballot drop boxes at every DOE office and every community with 20,000 residents. Section 42. formerly section 23. Section 43, formerly section 24. Section 44, new section. Requires the director to develop a cybersecurity program to defend the voter registration records kept by the division. Section 45, new section. Codifies the settlement in ACLU of Alaska v. State of Alaska related to campaign signs along state highways. Section 46, new section. Conforming language for section 15 relating to the repeal of the requirement for APOC of have offices in each Senate District. Section 47, formerly section 25. Section 48, formerly section 26. Section 49, new section. Removes a requirement that certain municipal candidates file their public official financial disclosure twice. Section 50, formerly section 27. Section 51, formerly section 28. Section 52, formerly section 29. 5:22:11 PM CHAIR CARRICK announced that HB 43, Version I, was held over. 5:23:39 PM ADJOURNMENT There being no further business before the committee, the House State Affairs Standing Committee meeting was adjourned at 5:23 p.m.

Document Name Date/Time Subjects
HB 91 Fiscal Note DCCED-AMCO-03-10-25.pdf HSTA 3/11/2025 3:15:00 PM
HB 91
CSHB30 Ver I HSTA.pdf HSTA 3/11/2025 3:15:00 PM
HB 30
HB 30 HSTA Summary of Changes Ver N to I.pdf HSTA 3/11/2025 3:15:00 PM
HB 30
CSHB 43 HSTA Ver I.pdf HSTA 3/11/2025 3:15:00 PM
HB 43
HB 43 Written Testimony 2-13-25 Packet 2.pdf HSTA 3/11/2025 3:15:00 PM
HB 43
HB 43 Support LTR ACLU 2-13-25.pdf HSTA 3/11/2025 3:15:00 PM
HB 43
HB104 Sponsor Statement Version N 2.26.2025.pdf HSTA 3/11/2025 3:15:00 PM
HB 104
HB104 Version N.pdf HSTA 3/11/2025 3:15:00 PM
HB 104
HB104 Version N Sectional Analysis 2.26.2025.pdf HSTA 3/11/2025 3:15:00 PM
HB 104
HB104 Fiscal Note DOA-SSOA-03-07-2025.pdf HSTA 3/11/2025 3:15:00 PM
HB 104
HB104 Fiscal Note DPS-AST-3-7-2025.pdf HSTA 3/11/2025 3:15:00 PM
HB 104
HB104 Fiscal Note DPS-CDVSA-3-7-25.pdf HSTA 3/11/2025 3:15:00 PM
HB 104
HB104 Fiscal Note DPS-VCCB-3-7-25.pdf HSTA 3/11/2025 3:15:00 PM
HB 104
HB104 Version N Written Testimony as of 3.01.2025.pdf HSTA 3/11/2025 3:15:00 PM
HB 104
HB119 Support Letter GVEA 3-5-25.pdf HSTA 3/11/2025 3:15:00 PM
HB 119
HB119 Support Letter IGU 3-5-25.pdf HSTA 3/11/2025 3:15:00 PM
HB 119
HB 119 Backup FNSB Resolution.pdf HSTA 3/11/2025 3:15:00 PM
HB 119
CSHB43 Summary of Changes Ver N to I.pdf HSTA 3/11/2025 3:15:00 PM
HB 43
HB 91 Amendment A.2.pdf HSTA 3/11/2025 3:15:00 PM
HB 91
HB 30 Support LTR Launch Alaska 3-10-25.pdf HSTA 3/11/2025 3:15:00 PM
HB 30
HB 119 HSTA Follow Up AGDC 3-11-25.pdf HSTA 3/11/2025 3:15:00 PM
HB 119