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.