HB 1-SPECIE AS LEGAL TENDER  3:48:02 PM CHAIR CARRICK announced that the next order of business would be HOUSE BILL NO. 1, "An Act relating to specie as legal tender in the state; and relating to borough and city sales and use taxes on specie." [The committee adopted two amendments to HB 1 on 5/15/25.] CHAIR CARRICK noted that during its last consideration of the bill, the committee had queried whether the definition of "person" included a government entity. Her office broached the question to Legislative Legal Services, which responded with a memorandum [included in the committee file] advising that governmental entities are not expressly included nor excluded from the definition of "person" in the proposed legislation. To address the concern, she said her office drafted an amendment. CHAIR CARRICK began a motion but paused to call an at-ease. 3:50:38 PM The committee took a brief at-ease at 3:50 p.m. 3:50:48 PM CHAIR CARRICK moved to adopt [Conceptual] Amendment 3 to HB 1, [as amended], [a handwritten amendment in the committee file], which read as follows [original punctuation provided]: Page 3 line 8 following "person" Insert: "or governmental entity" 3:51:28 PM REPRESENTATIVE VANCE objected for the purpose of discussion. 3:51:43 PM REPRESENTATIVE MCCABE considered the amendment to be a friendly amendment to HB 1. He said that definitions can often be ambiguous, and the proposed amendment would make the bill stronger. 3:52:08 PM REPRESENTATIVE HOLLAND said that he supported the amendment, especially given discussions in previous bill hearings. The proposed amendment would address the Alaska Municipal League's (AML's) concerns regarding whether government agencies would be required to accept gold and silver specie as tender. 3:52:36 PM REPRESENTATIVE VANCE withdrew her objection. There being no further objection, Conceptual Amendment 3 was adopted. 3:52:57 PM REPRESENTATIVE MCCABE expressed hope that the committee received information pertaining to the proposed bill. He said that this was the fourth or fifth year that this bill concept has been in legislative works. He said that considerable research was made on the bill topic, including clarification of any tax implications that were part of AML's concerns in the committee's previous bill hearing. 3:53:52 PM REPRESENTATIVE VANCE commented that she was unsure why she was not yet listed as a co-sponsor for HB 1, as amended, indicating that she would be soon. She said that one of the basic functions of government is to provide a means for people to manage their money and assets. She said that formalizing gold and silver as legal tender would support individuals attempting to retain value in an uncertain fiscal climate. She often said the value of money changes more quickly than people realize, and having gold and silver tender as an option would provide a sense of security for people. She remarked that Alaska was a national leader in gold and precious metal production. She expressed optimism about passing the proposed bill into law. 3:55:41 PM CHAIR CARRICK commented that the amendments to the bill had made it even stronger and with more transparent intent. She noted that many of the concerns from previous bill hearings were addressed. She was confident that the bill could be passed to the next committee of referral, the House Standing Committee on Finance. Chair Carrick said that one reason that she was supportive of the proposed legislation was because she understood the sales tax dynamics. Furthermore, she said that many Alaskans are currently using this type of tender as a barter item, with no consumer protection in place. She said that having a definition of specie would provide some transactional protection. She understood the difference of opinion regarding the proposed legislation, and remarked that the committee had done a good job of addressing concerns. 3:58:21 PM REPRESENTATIVE STORY said that she appreciated the information made available to the committee [included in committee file]. She said that one of her outstanding questions pertained to potential premiums charged when buying specie, and asked for what a typical premium might be. REPRESENTATIVE MCCABE replied that if specie were purchased online from JM Bullion, it would be like purchasing any coin online. There would be a precious metal spot price and a premium attached. He reiterated that it would be similar when changing United States Dollars (USD) at a foreign hotel. He said that this is covered in the bill with reference to the "melt value" of the gold and silver tender. He said Mr. Diaz provided some clarifying information to the committee on this topic [included in committee file]. 4:00:14 PM CHAIR CARRICK remarked that this was a good question to continue discussions, since it was an outstanding concern regarding the proposed legislation. 4:00:44 PM REPRESENTATIVE HOLLAND said that he enjoyed this bill discussion very much and enjoyed the opportunity to work with Representative McCabe, the prime sponsor of the proposed legislation. He reminded the committee that the value of the USD fluctuates every day, and mentioned gas stations as an example. He said that it was important to recognize that there is already a system of money in place that is prone to fluctuations. 4:01:46 PM REPRESENTATIVE STORY remarked that she appreciated the consumer protection associated with the proposed legislation, but it was important for the public to understand any attached premiums when purchasing specie. 4:02:15 PM REPRESENTATIVE HOLLAND moved to report HB 1, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 1(STA) was reported out of the House State Affairs Standing Committee. 4:02:54 PM The committee took an at-ease from 4:03 p.m. to 4:06 p.m.