ALASKA STATE LEGISLATURE  HOUSE STATE AFFAIRS STANDING COMMITTEE  February 24, 2026 03:20 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 COMMITTEE CALENDAR  HOUSE BILL NO. 130 "An Act relating to flexible time credit for classified employees in the executive branch who are not eligible for overtime compensation." - HEARD & HELD HOUSE BILL NO. 278 "An Act establishing the Alaska-Ireland Trade Commission; and providing for an effective date." - HEARD & HELD HOUSE JOINT RESOLUTION NO. 23 Proposing an amendment to the Constitution of the State of Alaska requiring the governor to submit a balanced budget to the legislature. - HEARD & HELD HOUSE BILL NO. 290 "An Act relating to delivery of resolutions by the governor." - HEARD & HELD HOUSE CONCURRENT RESOLUTION NO. 10 Proposing an amendment to the Uniform Rules of the Alaska State Legislature relating to resolutions. - HEARD & HELD HOUSE BILL NO. 250 "An Act establishing the crime of wearing a mask in public while acting as a peace officer; and providing for an effective date." - BILL HEARING CANCELED PREVIOUS COMMITTEE ACTION  BILL: HB 130 SHORT TITLE: STATE EMPLOYEES: FLEXIBLE TIME CREDIT SPONSOR(s): REPRESENTATIVE(s) JOSEPHSON 03/10/25 (H) READ THE FIRST TIME - REFERRALS 03/10/25 (H) STA, FIN 02/10/26 (H) STA AT 3:15 PM GRUENBERG 120 02/10/26 (H) Heard & Held 02/10/26 (H) MINUTE(STA) 02/17/26 (H) STA AT 3:15 PM GRUENBERG 120 02/17/26 (H) Scheduled but Not Heard 02/24/26 (H) STA AT 3:15 PM GRUENBERG 120 BILL: HB 278 SHORT TITLE: ECONOMIC DEV:AK-IRELAND TRADE COMM. SPONSOR(s): REPRESENTATIVE(s) COSTELLO 01/23/26 (H) READ THE FIRST TIME - REFERRALS 01/23/26 (H) STA 02/17/26 (H) STA AT 3:15 PM GRUENBERG 120 02/17/26 (H) Scheduled but Not Heard 02/24/26 (H) STA AT 3:15 PM GRUENBERG 120 BILL: HJR 23 SHORT TITLE: CONST. AM: GOVERNOR'S PROPOSED BUDGET SPONSOR(s): REPRESENTATIVE(s) UNDERWOOD 04/28/25 (H) READ THE FIRST TIME - REFERRALS 04/28/25 (H) STA, JUD, FIN 02/21/26 (H) STA AT 3:15 PM GRUENBERG 120 02/21/26 (H) Heard & Held 02/21/26 (H) MINUTE(STA) 02/24/26 (H) STA AT 3:15 PM GRUENBERG 120 BILL: HB 290 SHORT TITLE: DELIVERY OF RESOLUTIONS SPONSOR(s): REPRESENTATIVE(s) HOLLAND 02/04/26 (H) READ THE FIRST TIME - REFERRALS 02/04/26 (H) STA 02/21/26 (H) STA AT 3:15 PM GRUENBERG 120 02/21/26 (H) Heard & Held 02/21/26 (H) MINUTE(STA) 02/24/26 (H) STA AT 3:15 PM GRUENBERG 120 BILL: HCR 10 SHORT TITLE: UNIFORM RULES: RESOLUTION DISTRIBUTION SPONSOR(s): REPRESENTATIVE(s) HOLLAND 02/04/26 (H) READ THE FIRST TIME - REFERRALS 02/04/26 (H) STA 02/21/26 (H) STA AT 3:15 PM GRUENBERG 120 02/21/26 (H) Heard & Held 02/21/26 (H) MINUTE(STA) 02/24/26 (H) STA AT 3:15 PM GRUENBERG 120 WITNESS REGISTER TINA WESTFALL, representing self Anchorage, Alaska POSITION STATEMENT: Testified in support of HB 130. KEN ALPER, Staff Representative Andy Josephson Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Answered questions during the hearing on HB 130 on behalf of Representative Josephson, prime sponsor. REPRESENTATIVE ANDY JOSEPHSON Alaska State Legislature Juneau, Alaska POSITION STATEMENT: As prime sponsor, answered questions during the hearing on HB 130. REPRESENTATIVE MIA COSTELLO Alaska State Legislature Juneau, Alaska POSITION STATEMENT: As prime sponsor, introduced HB 278. ZACH YOUNG, Staff Representative Mia Costello Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Reviewed the sectional analysis of HB 278 on behalf of Representative Costello, prime sponsor. SENATOR MARK DALY Seanad ireann [Ireland Senate] Dublin, Ireland POSITION STATEMENT: Provided invited testimony on HB 278. HANNAH LAGER, Director Division of Administrative Services Department of Commerce, Community and Economic Development Juneau, Alaska POSITION STATEMENT: Answered questions on HB 278. BRETT HUBER, State Director Americans for Prosperity - Alaska POSITION STATEMENT: Testified during the hearing on HB 278. REPRESENTATIVE JUBILEE UNDERWOOD, Alaska State Legislature Juneau, Alaska POSITION STATEMENT: As prime sponsor, reintroduced HJR 23. BUDDY WHITT, Staff Representative Jubilee Underwood Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Answered questions on HJR 23, on behalf of Representative Underwood, prime sponsor of the bill. AYDEN NICHOL, Staff Representative Ky Holland Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Reintroduced HB 290 and HCR 10 on behalf of Representative Holland, prime sponsor. ACTION NARRATIVE 3:20:06 PM CHAIR ASHLEY CARRICK called the House State Affairs Standing Committee meeting to order at 3:20 p.m. Representatives Himschoot, Holland, Vance, McCabe, St. Clair, and Carrick were present at the call to order. Representative Story arrived as the meeting was in progress. HB 130-STATE EMPLOYEES: FLEXIBLE TIME CREDIT  3:21:05 PM CHAIR CARRICK announced that the first order of business would be HOUSE BILL NO. 130, "An Act relating to flexible time credit for classified employees in the executive branch who are not eligible for overtime compensation." 3:21:27 PM The committee took a brief at-ease at 3:21 p.m. 3:21:44 PM CHAIR CARRICK opened public testimony on HB 130. 3:22:28 PM TINA WESTFALL, representing self, testified in support of HB 130. She said that Alaska should compensate workers for the hours that the workers work. Some of these workers are doing manual labor off site away from family. She thanked the committee for considering HB 130. 3:23:50 PM CHAIR CARRICK, after ascertaining there was no one else who wished to testify, closed public testimony on HB 130. REPRESENTATIVE ST. CLAIR asked whether this could be done via Collective Bargaining. KEN ALPER, Staff, Representative Andy Josephson, Alaska State Legislature, on behalf of Representative Josephson, prime sponsor of HB 130, replied these could be part of a contract; it could be something bargained for. This change would be a minimum standard for the state to give as a benefit. REPRESENTATIVE ST. CLAIR asked, "How many people would this impact?" MR. ALPER replied about 2,000 people are in this exempt status in addition to 1,800 in supervisory union. REPRESENTATIVE ST. CLAIR asked whether the majority are in supervisory positions. MR. ALPER replied that some of them are in the supervisory union. Others are in the General Government Unit (GGU) and are higher end professionals. 3:26:33 PM REPRESENTATIVE MCCABE asked, "Do you know if this was attempted to be fixed in the last contract bargaining." He said he thinks it is a mistake to use the legislative process. MR. ALPER replied that he doesn't know. It was not brought by the union but by a couple specific employees. The union is generally supportive. REPRESENTATIVE MCCABE asked, "Is there a way to find that out?" He expressed that it is too bad that the committee doesn't have a union member here to ask. He is hesitant to put it into statute. MR. ALPER said the union didn't bring it to the legislature but is generally supportive. He doesn't know if the union was seeking this change during the last round of negotiation. REPRESENTATIVE ANDY JOSEPHSON, Alaska State Legislature, answered questions on HB 130, as prime sponsor. He said he didn't know if this was a topic. This issue came from a constituent who received a promotion and ended up working without pay. 3:30:28 PM CHAIR CARRICK noted the salary study that the legislature just conducted and that now the administration is doing an implementation study. She asked Representative Josephson if it is his impression that this might result in potential salary changes. REPRESENTATIVE JOSEPHSON said it was an anomaly. It was a constituent who was classified and promoted with less income and no time off to compensate. He thinks that the cost of the salary study was $30 million but this is a separate issue. He said it is a matter of previously receiving lots of overtime pay and now working in a donut hole with no compensatory time. MR. ALPER stated that the number of potentially impacted employees is 4,000. The number of truly impacted workers would be much less than those that are potentially impacted. 3:33:12 PM REPRESENTATIVE VANCE asked if this won't cost the state additional money but would give employees time off, so it would cost the state. She stated that she is all about people receiving just compensation. She asked whether the department would need additional positions if these people were off. REPRESENTATIVE JOSEPHSON replied it was the individual's problem to confront. The department hasn't produced a positive fiscal note. He said over time the department would likely have to make some adjustments. He stated one conclusion of the salary schedule is that employees are not getting paid enough. Another issue is pension reform for recruitment and retention. This is a basic fairness issue working from 37.5 hours to 42 hours without compensation. REPRESENTATIVE VANCE asked whether other states use this flexible time credit. REPRESENTATIVE JOSEPHSON replied that he doesn't know the answer. 3:37:15 PM REPRESENTATIVE HOLLAND said he has been a non-exempt worker and managed exempt and non-exempt workers. When he implemented flexible (flex) time policies, he had to address three key points: How is the banking tracked, are their limits, and who controls the use of that time? REPRESENTATIVE JOSEPHSON replied there was a restricted amount of time to use it. Management would need to approve it and dictate it. REPRESENTATIVE HOLLAND asked whether organizational management would address this program. MR. ALPER stated that the legislature is not altering the structure. He offered his understanding that it is like leave and must be approved by the supervisor. REPRESENTATIVE HOLLAND said he recognized that there is administrative language in the bill itself. REPRESENTATIVE JOSEPHSON replied that the language says that the state must accommodate this, but it doesn't dictate how. MR. ALPER said that statewide personnel rules would be set up. 3:42:05 PM REPRESENTATIVE STORY said she looked at this bill as a way to help with retention and to ensure there are people who qualify for seniority positions and take them because it is desirable to have people with experience in those positions. She said if staff are aware they will be paid less by accepting advancement, she doesn't understand why the legislature would not correct this as it is a morale issue. 3:43:15 PM REPRESENTATIVE MCCABE asked if this isn't a problem that a supervisor could solve. MR. ALPER said that as a division director there was not a lot of autonomy or flexibility to make decisions. 3:44:21 PM REPRESENTATIVE HIMSCHOOT asked the bill sponsor to clarify whether the person he had offered in the example had been promoted but was making less because it was an exempt position REPRESENTATIVE JOSEPHSON answered that the individual made $18,000 in overtime but the opportunity for overtime isn't there any longer. He said instead there is compensatory time, but he is not fully getting that because of the donut hole from 37.5 hours to 42 hours. 3:45:55 PM CHAIR CARRICK announced that HB 130 was held over. HB 278-ECONOMIC DEV:AK-IRELAND TRADE COMM.  3:46:22 PM CHAIR CARRICK announced that the next order of business would be HOUSE BILL NO. 278, "An Act establishing the Alaska-Ireland Trade Commission; and providing for an effective date." 3:46:58 PM REPRESENTATIVE MIA COSTELLO, as prime sponsor, introduced HB 278. This bill creates an Alaska-Ireland Trade Commission for economic development. It is made up of five members and is housed in the Department of Commerce, Community, and Economic Development (DCCED). Ireland has become a hub for many technology companies. She said it is the gateway into the European union. The bill is intended to provide trade opportunities. Twenty-five other states have similar trade commissions. ZACH YOUNG, Staff, Representative Mia Costello, Alaska State Legislature, on behalf of Representative Costello, prime sponsor, reviewed the sectional analysis for HB 278 [included in the committee file] which read as follows [original punctuation provided]: Section 1. Establishes the Alaska-Ireland Trade Commission within the Department of Commerce, Community, and Economic Development as a state commission. States the overall purpose: to promote, develop, and expand economic, educational, and cultural relations between Alaska and Ireland. Specifies that the commission consists of five members appointed by the governor, with members serving at the pleasure of the governor for two-year terms. Requires the commission to elect a chair from among its members and allows it to meet as necessary, subject to public notice and Alaska's open meetings requirements. Authorizes the department to accept and spend gifts, donations, and grants from public and private sources on behalf of the commission to carry out its work, thereby limiting reliance on general fund appropriations. Section 2. Requires the commission to submit a written report of its activities, findings, and recommendations to the governor and the legislature by the 30th day of the First Regular Session of the 35th Alaska Legislature. Section 3. Sets and immediate effective date 3:50:05 PM SENATOR MARK DALY, Seanad ireann [Ireland Senate], provided invited testimony on HB 278. He said Ireland is a gateway to Europe, a market of 450 million people. Ireland is the sixth largest investor in the United States. This bill would provide an education partnership. In their committee, they look at proposals coming out of Europe that affect Alaska. Through the commission proposed under HB 278, Alaska would be creating contacts in Ireland and the Ireland Cabinet. Northern Ireland is involved in this work as well. Northern Ireland can access the United Kingdom (UK) market, as well as the Europe market. 3:55:30 PM REPRESENTATIVE STORY said thanks to Representative Costello for bringing the bill forward. She wondered about other trade commissions with staggering terms to allow continuity. Also, she asked whether someone should be appointed by the Senate President or Speaker of the House. She further asked whether the Department of Commerce, Community and Economic Development (DCEED) would need to be on the commission. REPRESENTATIVE COSTELLO replied that she would be open to allowing for staggered positions. The drafters of the legislation indicated they would have to be appointed by the governor. MR. DALY stated each state does it differently and sometimes they do stagger terms. Generally, the commission meets four times a year. There are a lot of events with briefing of information. Every August, the commission is invited to come to Ireland. The commission doesn't require much support. The commissioners of Ireland have come to the state of the state event and meet with various committees, as well as companies. REPRESENTATIVE STORY stated that DCCED supports the commission to help with the logistics but doesn't need a seat. REPRESENTATIVE COSTELLO replied there is no need for staff. The commission can raise its own funds. She pointed out that DCEED provided a fiscal note [included in the committee file]. Other states have a commission without state assistance. 4:01:04 PM REPRESENTATIVE HOLLAND said he was contacted by someone to set up a trade commissioner for Southeast Asia. He expressed interest in the focus on Ireland and asked how this fits in formal trade structures. REPRESENTATIVE COSTELLO said that the origination is because she's Irish. Mr. Daly contacted her about a Friends of Ireland caucus opportunity. Further, she noted that she had gone on a trade mission to Asia with the former governor. REPRESENTATIVE HOLLAND stated he is curious about the fiscal note. There are lots of trade trips going on by the administration. He asked whether there was a way to modify the fiscal note. 4:03:55 PM HANNAH LAGER, Director, Division of Administrative Services, Department of Commerce, Community and Economic Development, answered questions on HB 278. There are other trade activities, and the department has an international trade director using existing travel authority. This fiscal note has the travel costs. There is a place for program receipts for donations. 4:05:20 PM REPRESENTATIVE VANCE said she spent two weeks in Ireland. In her conversations with locals, Irishmen are very similar to Alaskans. Ireland has lots of workforce development. Ahe opined that HB 278 is brilliant and a good match for Alaska. She asked, "When it comes to trade, what does the sponsor see as opportunities?" REPRESENTATIVE COSTELLO replied innovation and economic growth. One way is to attract a large company to come to the state. Most of the economic growth is through small business. There is also educational opportunity. She said when she was on the delegation to Asia, she saw the opportunities for trade. This is a person-to-person instead of a government-to-government endeavor. REPRESENTATIVE VANCE said she wanted to highlight her experience as she spent her time outside of the cities in Ireland. 4:09:00 PM MR. DALY stated that Ireland is a very small place. Barriers can be lifted easily. He discussed Alaska seafoods not being able to get into the Europe Markets. He said Ireland went from beer and biscuits economy with a transformation of education through workforce training. Ireland can be the gateway to the European Union. He highlighted the West Virginia workforce training program. There are 20 more states in the pipeline to have commissions. 4:11:59 PM REPRESENTATIVE HIMSCHOOT said she recognizes the trade commission's purpose. She mentioned that Alaska is working on language revitalization. MR. DALY replied this is an area where Alaska and Ireland could work together. 4:14:45 PM CHAIR CARRICK opened public testimony on HB 278. BRETT HUBER, State Director, Americans for Prosperity - Alaska testified that the organization has conditional support for HB 278. He offered his understanding that some states don't use any state funding and said he doesn't see a necessity to spend state funds if the report is left to the discretion of the committee. The governor could select members for the trade commission, and the members could serve on their own dime. He opined that this is a great opportunity to be funded by the private sector. 4:18:30 PM CHAIR CARRICK, after ascertaining there was no one else who wished to testify, closed public testimony on HB 278. 4:19:10 PM CHAIR CARRICK announced that HB 278 was held over. HJR 23-CONST. AM: GOVERNOR'S PROPOSED BUDGET  4:19:25 PM CHAIR CARRICK announced that the next order of business would be HOUSE JOINT RESOLUTION NO. 23, Proposing an amendment to the Constitution of the State of Alaska requiring the governor to submit a balanced budget to the legislature. 4:19:47 PM REPRESENTATIVE JUBILEE UNDERWOOD, Alaska State Legislature, as prime sponsor reintroduced HJR 23. This is an amendment to the constitution to submit a balanced budget without the constitutional budget reserve (CBR). 4:20:44 PM REPRESENTATIVE HIMSCHOOT asked whether this would require a signature from the governor. 4:20:55 PM MR. WHITT, Staff, Representative Jubilee Underwood, Alaska State Legislature, on behalf of Representative Underwood, prime sponsor of HJR 23, replied that it requires a three-quarter vote of the floor. It does not require the governor's signature. REPRESENTATIVE HIMSCHOOT asked whether it would have to have a three-quarter vote of each body. MR. WHITT replied yes. 4:21:55 PM REPRESENTATIVE HOLLAND said Alaskans have been concerned about the budgets with a huge deficit. School districts use fund accounts; individuals use their savings; and private businesses use their savings. It is very normal to use savings and fund reserves. He said that this is an everyday strategy that many organizations use. This resolution is a constitutional guardrail. Alaska's savings were intended to keep things balanced from year to year. REPRESENTATIVE UNDERWOOD replied this joint resolution would not take away the power of the legislature. She said the purpose is just to see if it is the will of Alaskans to start out with more constraints. Again, it does take away the legislature's ability to appropriate and use the CBR. MR. WHITT replied that most jurisdictions have some sort of balancing requirement. The budgeting process is quite unique with the expectation of a large dividend. This is only for the initial budget and doesn't take away the ability to appropriate. 4:26:02 PM REPRESENTATIVE VANCE expressed caution about revenue sources for appropriations and asked for clarification regarding those listed under HJR 23. MR. WHITT responded that by law, the legislation has ways to access the permanent fund for appropriation. The power of the legislature is to determine how to appropriate. REPRESENTATIVE VANCE stated right now the state has the percent of market value (POMV) draw that deposits money into the general fund (GF). The legislation has the authority to appropriate money directly from the earnings reserve account (ERA). She asked which one is this according to this legislation. MR. WHITT said this legislation does not make these decisions. REPRESENTATIVE VANCE stated that confusion can come from what is determined as income. The legislature can use the POMV and ERA. MR. WHITT said he doesn't have the ability to answer a hypothetical question. The appropriations bill is its own bill. 4:31:07 PM REPRESENTATIVE VANCE said a key factor is the legislature holds the power of the purse and can make the appropriations. This legislature is putting side bars on the governor. She asked if the courts put any restrictions on using the ERA as a source of income. MR. WHITT said he doesn't know whether the next governor is going to be looking at the appropriation. Currently, the legislature has been running off the POMV that has been passed. CHAIR CARRICK said she appreciated the discussion. Regarding Representative Vance's Points, she said it could be unclear for the executive branch. She said the trend of upfront budgeting using the CBR seems dishonest. Hopefully, the House Judiciary Standing Committee will have a further look at case law. She said, "It doesn't feel adequate when you're in the legislature and then you get a budget that's a huge CBR draw." 4:35:45 PM CHAIR CARRICK announced that HJR 23 was held over. HB 290-DELIVERY OF RESOLUTIONS  HCR 10-UNIFORM RULES: RESOLUTION DISTRIBUTION  4:36:07 PM CHAIR CARRICK announced that the final order of business would be HOUSE BILL NO. 290, "An Act relating to delivery of resolutions by the governor." and HOUSE CONCURRENT RESOLUTION NO. 10, Proposing an amendment to the Uniform Rules of the Alaska State Legislature relating to resolutions. 4:36:27 PM AYDEN NICHOL, Staff, Representative Ky Holland, Alaska State Legislature, provided a brief reintroduction of HB 290 and HCR 10 on behalf of Representative Holland, prime sponsor. HE said HB 290 places a timeline on the governor's signature on resolutions of 15 days or 20 days out of session. The second measure, HCR 10 moves the distribution of resolutions from the Office of the Lieutenant Governor to the Senate Secretary' Office and Office of the Chief Clerk. 4:37:27 PM REPRESENTATIVE HOLLAND, as prime sponsor, said that regarding the timelines on flow of measures passed, he has distributed information. He commented it was interesting how fast the legislature can move on some measures and how long it can drag out on other measures. He is still interested in figuring out how to streamline the processes of the legislature. 4:38:04 PM REPRESENTATIVE VANCE asked a question about the role of the Office of the Lieutenant Governor as this removes them from the process. MR. NICHOL stated that the sponsor has no additional information. REPRESENTATIVE VANCE stated she is uneasy to eliminate an elected official from the process without understanding why and what consequences there may be. The legislation would make it an administrative procedure. She noted that the House State Affairs Standing Committee is the only committee of referral for the legislation. She asked, "Why just resolutions; what about all communications?" MR. NICHOL clarified that the sponsor's office spoke with the Office of the Lieutenant Governor, which had no issues with this function being removed from its control. REPRESENTATIVE HOLLAND said that the office discussed this on Saturday with the lieutenant governor. The office was trying to find out whether there is a long-term issue with the process; but that history is lost. 4:42:30 PM REPRESENTATIVE HOLLAND said he is looking only at joint resolutions and the timeline. This resolution would create greater alignment with other processes and timelines as well as continuity regarding who has responsibilities. 4:44:10 PM REPRESENTATIVE STORY said she appreciated the maker of the legislation bringing this forward. She was unaware of the timelines and said this would make government processes more efficient. CHAIR CARRICK said she liked both items because they put up sidebars of what could be a political decision. 4:45:36 PM REPRESENTATIVE HOLLAND said he appreciated the discussion and Mr. Nicol for the research done. This is a small but important step to get the message transmitted. [HB 290 and HCR 10 were held over] 4:46:49 PM CHAIR CARRICK made committee announcements. 4:47:26 PM The committee took a brief at-ease at 4:47 p.m. 4:48:26 PM ADJOURNMENT  There being no further business before the committee, the House State Affairs Standing Committee meeting was adjourned at 4:48 p.m.