01/27/2026 03:15 PM House STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB124 | |
| HB81 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 124 | TELECONFERENCED | |
| += | HB 81 | TELECONFERENCED | |
| *+ | HB 202 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
January 27, 2026
3:17 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 Steve St. Clair
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Representative Jeremy Bynum
COMMITTEE CALENDAR
HOUSE BILL NO. 124
"An Act relating to the Alaska Industrial Development and Export
Authority; and providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 81
"An Act restricting the release of certain records of
convictions; and providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 202
"An Act designating giant cabbage as the official state
vegetable; and providing for an effective date."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 124
SHORT TITLE: AIDEA
SPONSOR(s): REPRESENTATIVE(s) CARRICK
03/05/25 (H) READ THE FIRST TIME - REFERRALS
03/05/25 (H) STA, FIN
01/22/26 (H) STA AT 3:15 PM GRUENBERG 120
01/22/26 (H) Heard & Held
01/22/26 (H) MINUTE(STA)
01/27/26 (H) STA AT 3:15 PM GRUENBERG 120
BILL: HB 81
SHORT TITLE: ACCESS TO MARIJUANA CONVICTION RECORDS
SPONSOR(s): REPRESENTATIVE(s) D. NELSON
02/03/25 (H) READ THE FIRST TIME - REFERRALS
02/03/25 (H) STA, JUD
02/27/25 (H) STA AT 3:15 PM GRUENBERG 120
02/27/25 (H) <Bill Hearing Canceled>
03/06/25 (H) STA AT 3:15 PM GRUENBERG 120
03/06/25 (H) Heard & Held
03/06/25 (H) MINUTE(STA)
01/27/26 (H) STA AT 3:15 PM GRUENBERG 120
WITNESS REGISTER
RANDY RUARO, Executive Director
Alaska Industrial Development and Export Authority
Anchorage, Alaska
POSITION STATEMENT: Shared an AIDEA presentation and answered
questions during the hearing on HB 124.
ALEXUS KWCHKA, representing self
Kodiak, Alaska
POSITION STATEMENT: Testified in support of HB 124.
MARY GLAVES
Alaska Backcountry Hunter and Anglers
Juneau, Alaska
POSITION STATEMENT: Testified in support HB 124.
JOHN GAEDEKE, Lodge Owner
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 124.
SUSAN GEORGETTE, representing self
Kotzebue, Alaska
POSITION STATEMENT: Testified in support of HB 124.
DAVID LESLIE
Northern Alaska Environmental Center
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 124.
RON YARNELL, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 124.
MADDIE HALLORAN, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 124.
BARRY WHITEHILL, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 124.
MATTHEW JACKSON, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 124.
ANDREA FENIGER, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 124.
ASPEN FRICK, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 124.
ROBERT SHELDON, representing self
Talkeetna, Alaska
POSITION STATEMENT: Testified on HB 124.
STANLEY ROGERS, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB124.
DIOOLA ERICKSON, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support for HB 124.
REPRESENTATIVE DAVID NELSON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, reintroduced HB 81 and
answered questions.
LISA PURINTON, Director
Division of Statewide Services
Department of Public Safety
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
81.
ACTION NARRATIVE
3:17:58 PM
CHAIR ASHLEY CARRICK called the House State Affairs Standing
Committee meeting to order at 3:17 p.m. Representatives St.
Clair, McCabe, Vance, Holland, Himschoot, Story, and Carrick
were present at the call to order.
HB 124-AIDEA
3:19:42 PM
CHAIR CARRICK announced that the first order of business would
be HOUSE BILL NO. 124 "An Act relating to the Alaska Industrial
Development and Export Authority; and providing for an effective
date."
3:19:50 PM
The committee took a brief at-ease from 3:19 p.m. to 3:20 p.m.
3:20:23 PM
RANDY RUARO, Executive Director, Alaska Industrial Development
and Export Authority (AIDEA) began a PowerPoint presentation on
AIDEA and HB 124. Referring to slide 3, "The Policy Behind
AIDEA," he said AIDEA's roots go back to the Alaska Constitution
in Art VIII, Sec 1. The Alaska Statehood Act is another
important part of AIDEA's history. He said Congress wanted the
state to be successful and support itself and produce jobs.
MR. RUARO, referring to slide 4, "How did the Alaska
Constitution and the Alaska Statehood Act Produce AIDEA?," said
AIDEA was created quickly after statehood, in 1961. The
statutes have been modified but largely held as originally
written. The legislature that created AIDEA was worried about
not having enough financing and developing resources required to
access financing.
MR. RUARO, referring to slide 5, "The Policy against
unemployment and poverty," said they were worried about the
negative effects of unemployment and poverty. He said
especially in areas where the rates were extremely high such as
rural Alaska and other places. These policies are still on the
books in our findings; unemployment and poverty are bad things
for Alaska. The harmful effects of unemployment and poverty
include high suicide rates, increased mental health issues,
homelessness, and poorer educational outcomes.
MR. RUARO, referring to slide 6, "Labor participation
Rate/Earnings," said this graph shows the recent chart of labor
participation. He stated that unemployment doesn't take into
account people that have given up looking for work. He shared
that one in three Alaskans are out of work. Continuing on slide
7, "Earning Levels in Alaska," he said this chart shows that
total wages growth is higher where there is resource
development. He gave examples from the chart of various
projects.
3:25:29 PM
MR. RUARO, referring to slide 8, "How was AIDEA Designed to
Work?," said AIDEA's structure was designed to have separation
from the legislation and the legislative process. In addition,
AIDEA was to have separation from the state and state treasury,
very much like a private bank. He said AIDEA is a public
corporation under the statutes and very different from the
average agencies; it was intentionally created to have a
separate existence from the state and managed by a board of
directors appointed by the governor. He said AIDEA must manage
assets under the prudent investor statute. Additionally, AIDEA
was given broad powers to achieve its mission, including the
ability to enter contracts with third parties. He stated that
AIDEA can use its credit to lend and invest. He said AIDEA is
not a state agency in the Executive Budget Act except for the
annual operating budget. He stated AIDEA's budget exists only
as receipts. He said there is a clear structure that was used
by the legislature to give AIDEA separation.
3:28:24 PM
REPRESENTATIVE MCCABE asked a question about a previous
downgrade to AIDEA's bond or credit rating in 2018 or 2019. He
asked if Mr. Ruaro could explain about change in credit rating
and what that means.
MR. RUARO replied that AIDEA has studied the downgrade. It is
the result of an appropriation by the legislature and dividend
structure for about $2 million for a roof in Nome. Since it was
outside the statutes and rules for AIDEA, this is not a
structure that supports the bond rating. It was viewed as a
significant issue and resulted in at least a 20-point downgrade.
REPRESENTATIVE MCCABE asked if volitivity in the agency is more
important than the amount of money that AIDEA has. Investors
and bond issuing entities look to see if AIDEA is subject to
legislature actions as the legislature struggles with money. He
stated the legislature took the money and created an issue for
AIDEA; it was not about transparency.
MR. RUARO replied that is correct; AIDEA has a memo from the
financial advisors on this issue, which he said he would submit.
3:31:37 PM
REPRESENTATIVE STORY said that she had heard from a constituent
about the downgrade. She had heard that the downgrade had to do
with the lack of transparency. Also, AIDEA was providing very
limited information on its loan program participants.
MR. RUARO replied that he is not aware of either of those
concerns as the reason for the downgrade. He said he could
provide the memo.
3:32:58 PM
REPRESENTATIVE HOLLAND stated that he wanted to follow-up and he
may need to come back with this information. Directing
attention to slide 9, AS 44.88.205 operating budget compliance
with the Executive Budget Act, he asked if there was limitation
on the operating budget and AIDEA to do an annual review of
AIDEA's assets. He asked if this assessment and a report would
be available by January 10. He inquired if there is a report
available for the committee to review.
MR. RUARO stated that the report was filed with the Senate and
House clerk and he will be sure that the committee gets that
report.
MR. RUARO continued with his presentation on slide 10, "Legal
Challenges to the Statutory Structure of AIDEA." He stated that
challenges were brought almost immediately in 1961 over control
over AIDEA's assets. In the case brought against AIDEA, the
statutes were upheld and the state had the ability to create
AIDEA as it exists. The challenges to the structure were
resolved within a year.
MR. RUARO continued with slides 11 and 12, "The Policy against
How has AIDEA been doing? What Can it do in the Future?," and
"AIDEA Earns AA+ Bond Rating Highlighting Financial Strength and
Alaska Commitment." He shared AIDEA received the best credit
rating ever, AA+, and is at the top among its peers. The rating
will benefit AIDEA and Alaska as AIDEA finances projects with a
better credit rating than the State of Alaska. In the last
three years, AIDEA has resolved several issues. It has produced
two record years in a row of gross and net income which led to
this credit rating.
3:36:55 PM
REPRESENTATIVE MCCABE asked whether AIDEA evaluated whether HB
124 could negatively affect the bond rating and/or borrowing
costs by increasing perceived political risk, credit
concentration, or non-commercial decision-making.
MR. RUARO replied that AIDEA has some initial input from its
financial advisors, PFM Financial Advisors, LLC, which said it
would result in a significant downgrade and a serious effect on
the credit rating. He will forward the information to the chair
and committee members.
REPRESENTATIVE MCCABE asked if there was a list of all the
businesses geographically that have participated or are
participating in the Loan Participation Program (LPP). Further,
he asked Mr. Ruaro to comment on those projects that would be
affected by HB 124.
MR. RUARO replied that he can produce a list of LPP loan
participant program borrowers under $3 million. There are
hundreds of them and several thousand of them, if it includes
those that were paid off. It is one of AIDEA's most popular
programs and makes up a quarter of AIDEA's entire asset value.
REPRESENTATIVE MCCABE stated AIDEA's asset value is over $1.7
million and a quarter of that would be above the $500 million in
the bill. He asked if AIDEA would have to sell off these loans.
MR. RUARO replied that AIDEA's loan portfolio exceeds $500
million and includes loans in progress. To reduce its total
asset value, AIDEA would have to sell off every LPP loan or part
of the portfolio. He stated AIDEA also has fixed assets to be
considered.
REPRESENTATIVE MCCABE asked if the Interior Gas Utility (IGU)
loan is under LPP. He stated that it is a $139 million loan
with terms of 35 years. He said AIDEA has a good track record
of helping cities like Fairbanks with the Interior gas utility
to be able to acquire cheap gas or heating. He asked if it
would negate the terms of this loan.
MR. RUARO answered that the IGU loan does have very favorable
terms. It allows it to function and grow and add users. He
said IGU is a low performing loan, as LPP loans run at a
statutory rate of 6 percent and IGU is far below that
percentage. If AIDEA was forced to divest, it would keep with
the highest performance of the portfolio. The IGU would likely
rank near the bottom.
3:43:30 PM
REPRESENTATIVE ST. CLAIR asked if AIDEA has an estimate of the
impact a $500 million divestiture would have on jobs.
MR. RUARO stated it is difficult to estimate the fiscal impact
of divesting the portfolio. He said it would be significant; a
range of 30-50 percent probably is not out of the range of
possibilities. There certainly would be losses in hundreds of
millions of dollars if forced to divest on a fast schedule. He
stated there would be an employment impact due to the
divestiture.
MR. RUARO continued with slides 13, "FY 2025 Annual Report -
Record Breaking Performance." He stated that FY 2025 was the
strongest financial performance in AIDEA's history. He shared
the following statistics from the slide: Statutory Net Income
of $67.4 million; $17 million in dividend to the state plus
another $6.5 million have of the payment for the ANWR leases;
and $512 million in cumulative dividends. He said that he
anticipates the dividend payments to increase with various
sample investments given. He reiterated that the AA+ credit
rating is the highest in history.
3:48:11 PM
REPRESENTATIVE HOLLAND stated that AIDEA's average rate of
return is 3.8 percent compared to the permanent fund dividend
(PFD) which has a great return of 9.4 percent; these rates of
return are substantially different. He said using the $1.7
billion asset base of AIDEA and looking at it through a percent
of market value (POMV) lens, which is now a gold standard as a
substantiable draw from the state's assets. He stated the POMV
on $1.7 billion would be a dividend to the state of about $87
million. The state is down this year from $20 million to $17
million, despite AIDEA doing quite well. He asked Mr. Ruaro to
help the committee understand what looks like an incongruency of
the expectation of this asset and what the state might see as a
dividend. He asked, "How is the dividend determined and how did
AIDEA come up with $17 million instead of $87 million using the
POMV like the PFD?"
MR. RUARO replied by statute it is a 25-50 percent range of net
revenue. The board is not allowed to deviate outside of this
range. This year's dividend amount, there was discussion by the
board of not only the dividend but the additional funds of $6.5
million ANWR funds. He stated additionally, big projects are
putting a large demand on the assets. He gave examples of
projects across the state. There is a strong interest in Alaska
and developing energy and resource projects. Based on all the
above, the board felt that $17 million plus $6.5 million was a
fair place to land given the pressures on AIDEA on financing
other projects. The board looked at a mixture of factors. He
offered further explanation that on AIDEA oil and gas projects
are not limited to the dividends but royalties as well. He
suggested that part of the question may be how the return is
measured.
3:52:26 PM
REPRESENTATIVE HOLLAND, looking at the balance sheet, observed
that AIDEA has $50 million and maybe $400-500 million in cash
assets. He stated there is no shortage of cash available and if
the statute would have allowed, AIDEA could have given a 100
percent dividend. He said AIDEA would still have plenty of cash
to fund projects on its six-year plan.
MR. RUARO replied there are a couple more takedowns from the
gross assets that AIDEA have in our project pipeline that is
likely to be funded. He said AIDEA is still doing due diligence
on projects. The list totals billions for these projects.
There are still projects that are committed, but the cash hasn't
been dispersed because of timing issues. He said AIDEA has some
very strong projects in the pipeline across the board. He said
that not all projects would make it and AIDEA couldn't fund
every project. He said AIDEA is trying to balance the
commitment of funds.
MR. RUARO, continued with slides 14, "Loan Participation Program
(LPP) Highlights and Regional Diversity." He shared the
highlights on FY 25 LPP. He stated that banks come to AIDEA
with projects looking for matching funds; it forms a large part
of its loan portfolio. He stated that LPP are found across the
state. He said AIDEA would like to increase loans in the
southeast region as it is very light there. Delinquency rate is
0 percent and projects are working very well.
3:57:23 PM
REPRESENTATIVE MCCABE stated comparing the PFD to AIDEA is like
comparing apples and snowmachines. The PFD is designed to do
one thing and AIDEA is not designed to bring dividends. He
stated that AIDEA is designed for jobs according to the statute.
He asked if AIDEA is anticipating needing money to fund
contractors on these larger projects, like the gas pipeline.
MR. RUARO replied that the board is aware of the project and
gets updates regularly. There are several ancillary projects
that would tie into the line that would be realistic once the
project goes forward. He said AIDEA does have interested
parties that would likely come to AIDEA for the ancillary
projects, so it is something that AIDEA is thinking of while
declaring a dividend. He added further that when AIDEA funds an
oil and gas project it is the highest and best return to the
state. In this sense, the state gets a significant 25 percent
dividend but also gets all the normal production, royalty, and
property taxes.
REPRESENTATIVE MCCABE stated AIDEA has a $1.7 billion balance
sheet. He asked if AIDEA could do a 100 percent dividend
without needing to liquidate its assets. He asked, "How liquid
are AIDEA's assets?"
MR. RUARO replied it is true that AIDEA's assets contain half a
billion dollars in loans. It also has fixed assets as well as
loans. He specified that the $1.7 billion is an asset number,
not a cash value.
4:02:04 PM
REPRESENTATIVE HOLLAND wished he had AIDEA's financial
statement. He asked what AIDEA's cash balance is on hand.
MR. RUARO replied roughly five hundred to six hundred million
dollars.
REPRESENTATIVE HOLLAND asked if AIDEA could pay a $50 million
dividend without having to liquidate assets.
MR. RUARO replied yes. He added that AIDEA has a fair amount of
cash. It has committed funds that haven't been issued yet, as
well as has many energy projects in the pipeline.
MR. RUARO continued with the AIDEA presentation on slide 15,
"AIDEA Small Business Loans DCCED Managed Programs." He stated
that AIDEA is seeing a stepped-up demand for these programs.
These loans will go out very quickly and monitoring to see if it
needs additional capital. On slide 16, "AIDEA Assets, Project
Bonds and Loans," there is a map of Alaska with AIDEA projects.
He highlighted various projects across the state.
4:05:05 PM
REPRESENTATIVE HOLLAND asked if there is continued work on the
Ambler Road project, whether it expired or has been renewed.
MR. RUARO replied that it has been extended to the end of
February 2026.
4:06:02 PM
CHAIR CARRICK opened public testimony on HB 124.
4:06:40 PM
ALEXUS KWCHKA, representing self, stated that she is 100 percent
in support of HB 124. The bill will merely put guardrails on
AIDEA using public and state money. There are both success and
failures of AIDEA. This proposed bill will not hinder AIDEA but
will mitigate the failures. The proposed bill will foster trust
and accountability. He said AIDEA is not different and cautions
the legislature. He fully supports HB 124 but maybe $500
million is not appropriate.
4:08:42 PM
MARY GLAVES, Alaska Backcountry Hunter and Anglers, said the
chapter is in support of HB 124. Alaska deserves transparency,
accountability, and public input. The proposed bill would
improve trust and use of public land. The proposed bill would
not stop development and would ensure it is well-vetted. The
proposed bill would strengthen public trust and is a reasonable
step forward.
4:10:05 PM
JOHN GAEDEKE, Lodge Owner, stated AIDEA proposed Ambler Road
seventeen years ago. He has been attending numerous meetings
with federal and state agencies and occasionally AIDEA has been
there and "it has been a nonstop confusing mess." He stated
that AIDEA's perspective has been on attracting foreign mining
and out-of-state workers. He stated that communicating with
AIDEA has been consistently poor marked by a lack of
transparency. He feels responsibility and transparency are
essential. He stated there is a lack of accountability from
AIDEA, and it needs increased accountability and oversight. He
supports HB 124 as a bare minimum.
4:12:35 PM
SUSAN GEORGETTE, representing self, said she is very active in a
grassroots group, Protect the Kobuk, which is a forum for those
opposed to Ambler Road. The forum represents 70 members who are
current residents or tribal members of the Northwest Arctic
Borough. She stated that AIDEA is dismissive of public concerns
and lacks transparency. The Ambler Road is very divisive in the
Northwest region. She supports HB 124.
4:14:24 PM
DAVID LESLIE, Northern Alaska Environmental Center, said he is
the board secretary and is calling today to support HB 124. He
said HB 124 will lead Alaska towards more responsible and
ethical development of resources. The legislative confirmation
requirement will lead to more transparency. He said Alaska
Native representation would be good as they are the stewards of
the land and can include indigenous knowledge. He supports the
increase in the time for public testimony, and it is very
important especially during hunting and berry seasons. He
supports extra oversight of large financial projects. He
supports AIDEA being subject to the Public Records Act as other
state agencies are to add transparency and accountability.
4:17:17 PM
RON YARNELL representing self, said he leads wilderness trips
through the Brooks Range. He wants to thank the House State
Affairs Committee for sponsoring this bill. He provided
examples of questionable actions by AIDEA. He urges the Alaska
State Legislature to investigate AIDEA. He said AIDEA has
refused to release the full document of a report by Northern
Economics.
4:21:07 PM
MADDIE HALLORAN, representing self, said she recalls twenty
years ago when AIDEA financed a soccer field for $50 million.
She is in support of HB 124. She said AIDEA has spent millions
of dollars in the Arctic National Wildlife Refuge (ANWR). She
stated that AIDEA was made to operate separately; AIDEA should
be made accountable with Alaska money. She has tried to speak
directly to representatives of AIDEA but they mostly discuss
large projects in executive sessions. She hopes the committee
will pass HB 124 and make it fair to protect Alaska's assets.
She would repeat the previous speaker and ask for full release
of report by Northern Economics.
4:24:04 PM
BARRY WHITEHILL, representing self, said he is calling in
support of HB 124. He thanked the previous callers that have
stressed the lack of transparency and visibility. He is a
subsistence person, and the impact of Amber Road will last for
eons. He hates to see future generations saddled with the
clean-up of this project.
4:26:03 PM
MATTHEW JACKSON, representing self, said he was born and raised
in Ketchikan and currently lives in Anchorage. He is here to
support HB 124. He has tried to testify to AIDEA, and they are
uninterested in public comments. He supports expanding the
board and tribal representation. He thinks the proportion of
out-of-state workers is at an all-time high. He said AIDEA is
not creating year-round jobs for Alaskans; there are better
things that could be done with these funds. He opined that HB
124 is a step in the right direction.
4:28:14 PM
ANDREA FENIGER, representing self, said she thinks the
legislature could go farther in regulating AIDEA, but it is a
great start. She stated that AIDEA's structure has developed a
lack of transparency, and she commented that AIDEA doesn't take
public input. The legislature can offer oversight, and another
set of eyes would be good. The Northern Economics Report was
released only as a summary. She supports reigning in AIDEA
through HB 124.
4:30:13 PM
ASPEN FRICK, representing self, said that AIDEA has spent
millions of Alaska dollars on failing projects without any
public input or oversight. She stated that AIDEA has lost $11.4
billion from the PFD. She said AIDEA is more likely to lose
money than to make money. She shared AIDEA's mission from its
website. She fully supports the terms under House Bill 124.
4:31:42 PM
ROBERT SHELDON, representing self, stated that he is a life-long
Alaskan. He works across the public and private sectors
including military. He served on various boards across the last
six administrations requiring legislative approval. He stated
it was his pleasure to serve on the AIDEA board from 2010-2013.
He stated if one wants to stifle business, reduce partnering
with the military and federal government, then restrict AIDEA.
Impairing AIDEA in any way will have an immediate detrimental
effect on all Alaskans in all walks of life and areas in the
state. Many of Alaska's small businesses are participants in
LPP. He provided many examples of AIDEA's work while he was on
the AIDEA board. He summarized by saying impairing AIDEA in any
way will have a detrimental effect.
4:35:58 PM
STANLEY ROGERS, representing self, said he is a 26-year-old
carpenter, and he wholeheartedly supports HB 124. He asked how
much resources the state has lost in exchange for temporary
gains in mining and oil. He concluded by restating his support
for HB 124.
4:37:06 PM
DIOOLA ERICKSON, representing self, said she was born and raised
in Southeast and is a life-long Alaskan. She thanked
Representative Carrick for sponsoring this bill. She stated
that AIDEA has been around for 50 years. She has been trying to
engage with AIDEA and hasn't had success. The proposed bill
will provide oversight. She stated support for HB 124.
4:39:24 PM
The committee took an at-ease from 4:39 to 4:40.
4:40:16 PM
CHAIR CARRICK announced that she would leave public testimony
open on HB 124 until after Thursday's hearing.
CHAIR CARRICK announced HB 124 was held over.
HB 81-ACCESS TO MARIJUANA CONVICTION RECORDS
4:41:15 PM
CHAIR CARRICK announced that the final order of business would
be HOUSE BILL NO. 81, "An Act restricting the release of certain
records of convictions; and providing for an effective date."
4:41:48 PM
REPRESENTATIVE DAVID NELSON, Alaska State Legislature, as prime
sponsor, reintroduced and answered questions on HB 81. The bill
is an important step in providing an opportunity for people with
low level marijuana possession convictions to make a more
significant economic impact on the state. He stated that
hardworking Alaskans are facing barriers to employment, housing,
licensing, and volunteering. He shared that 28 states have
already enacted laws that apply specifically to records
confidentiality regarding certain marijuana related offenses.
At a time when Alaska really is struggling to find enough
qualified workers to fill job openings, individuals shouldn't be
excluded based on actions that are no longer illegal. He stated
that HB 81 would make certain marijuana convictions confidential
on basic background checks while keeping those convictions
available for government agencies and qualified individuals.
Individuals that are 21 years or older at the time of the crime,
possessed one ounce or less of marijuana, and not convicted of
any other crimes can request the Department of Public Safety
(DPS) to make those crimes on records confidential. The
proposed legislation doesn't remove the crimes from the records.
He said DPS would have until January 1, 2028, to amend its
database. The Alaska Court System has already amended its
records.
4:43:52 PM
CHAIR CARRICK invited committee questions.
4:44:18 PM
REPRESENTATIVE HOLLAND asked for confirmation that the bill
would apply to pre-legalization offenses in Alaska and does not
pertain to federal offenses.
REPRESENTATIVE D. NELSON confirmed that is correct. He deferred
to Lisa Purinton for further details.
4:46:12 PM
LISA PURINTON, Director, Division of Statewide Services,
Department of Public Safety, advised that it would be limited to
the state convictions and history.
CHAIR CARRICK asked if 35 other states have already done this.
REPRESENTATIVE D. NELSON replied that is correct.
REPRESENTATIVE HIMSCHOOT asked about a constituent unable to
travel overseas because of an earlier marijuana conviction and
asked whether the proposed legislation would help the person be
able to travel.
REPRESENTATIVE D. NELSON replied that he didn't know the
specific facts and there may be extenuating circumstances.
REPRESENTATIVE HIMSCHOOT added that it was a misdemeanor. He
was caught smoking marijuana when it was still illegal.
MS. PURINTON stated that it would limit the displaying
conviction information for those who are 21 years or older and
the possession was under one ounce. The statute is very
specific on when the information would be released; this is
limited to a name-based background check. If a fingerprint-
based background check or a background check for another reason
were requested, then that information would still be released.
CHAIR CARRICK asked if HB 81 was broad enough and asked how many
people would be affected.
REPRESENTATIVE D. NELSON replied around 8,500 Alaskans.
4:49:43 PM
CHAIR CARRICK opened public testimony on HB 81. After
ascertaining there was no one who wished to testify, she closed
public testimony.
4:50:03 PM
The committee took a brief at-ease at 4:50 p.m.
4:50:25 PM
CHAIR CARRICK confirmed there are no more questions from the
committee.
4:50:43 PM
The committee took an at-ease from 4:50 p.m. to 4:51 p.m.
4:51:37 PM
CHAIR CARRICK set an amendment deadline for HB 81 and thanked
the sponsor for his bill.
[HB 81 was held over.]
4:51:58 PM
The committee took an at-ease from 4:52 p.m. to 4:53 p.m.
4:53:10 PM
CHAIR CARRICK noted that HB 202 would not be heard. She related
future scheduling details.
4:54:11 PM
ADJOURNMENT
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at 4:54
p.m.