I'd like to call the House State Affairs Committee to order. The time is 3.15 PM on Tuesday, February 3, 2026, and we're here in room 120. Please mute your cell phones today. Representatives present include Representative St. Clair, Representative Holland, Representative Vance, Vice Chair Story and myself, Chair Kerrick. Let the record reflect, we do have a quorum to conduct business. Our record secretary today is Lori Roland, and our moderator from the June LIO is Jude Augustin, or Zachary Lawhorn, actually. Sorry, Zach. And our committee aid for today's hearing is my staff, Stuart Relay. Thank you to all of you for helping us today. On today s agenda, we do have four items. We ll have a first hearing on House Bill 202 on establishing a state vegetable from then we'll have a continued discussion and complete our presentation from the Alaska Industrial Development and Export Authority for House Bill 124. And then, we will have two resolutions today. First, will be House Resolution 6 from Representative St. Clair on celebrating USA's 250th anniversary which is also on the same topic from our office. So with that said, we've just been joined by Representative Hymshoe as well. So I would like to invite Representative Johnson and her staff to the committee table. And please go ahead and begin your presentation. Just for committee members' awareness too, have a committee substitute that after this presentation we will adopt at the request of the sponsor. So just to give folks an awareness and we've just also been joined by Representative McCabe. Thank you. All right, all right very good. Thank you so much for the opportunity to be here today to present HB 202 which is vegetable for the state of Alaska. And you would say, well, whatever, what other possible vegetable could it be? You know, I've had a number of people that maybe come up with things like for record introduction. Oh, excuse me. I think for a record, if my name is Delina Johnson, I refer to Palmer area. Just so everybody knows that is also where the Alaska State Fair, the cabbage. So it's in a very long bill. It's pretty fun for words maybe. Probably the most significant five or six words of legislation this year. But This bill was brought to me by a local resident, Richard Estelle. Richard is one of my favorite people. Richard's mother was the original cooperative extension agent that was hired to come up with the Alaska, with a Matanuska colony project. And I hope people learn how to can and take care of their, their goods and so on. and his father was one of the Ph.D. scientists that came with the Alaska with a Matinuska colony project. And as it would be that they found that they fell in love, got married, and at that time, because those were two government jobs, That was a federal government requirement of that colony and so anyway Richard Richard is a wonderful constituent and Thought this and works at the Palmer Visitor Center and would like to for me to bring this bill forward and I feel privileged to do so Some things about the cabbage well first of all the first Cabbage way off of the fair was in 19. I believe it was the 1935 The first state fair It may have been the 1936, and so they've had a cabbage way off at the State Fair, and an Alaskan cabbage has been the largest cabbage in the world every year that they had us way off. There was a couple years during World War II, they did not have the giant cabbage way-off in Alaska, but other than that, that's been one of the show pieces there at the state fair. There has been a gentleman in Wales that's tried to to beat our record that has never been quite able to pull it off Although I'm keeping an eye on him to make sure that he doesn't come up with some other kind of kind Of way cut other other variety to two to be just that anyway Many states have a vegetable, Alaska does not have a state vegetable. It's really a marketing piece. It is about talking about our agriculture. It was about showcasing something that is special and different about the agriculture in Alaska. So that was one of the main reasons of having a State vegetable and so on. As far as agriculture goes, we have about 91 million in agricultural products. From about eleven hundred and seventy farms are each year that's produced about ninety one million dollars in agriculture Products at about one hundred seventy Farms and many of those farms a lot of these farms They're not like the farms in the rest of the country and most of them are smaller We just don't have these huge large-tracked industrial farms, in Alaska. They are oftentimes Family-owned farms they grow a wide range of crops including the green cabbage. Cabbages are a centerpiece of the agricultural attractions at the Alaska State Fair which I just talked about and add worldwide media attention and I hopefully will have some photos to show you that. In fact the current Guinness World Book of Records holds largest green cabbage was 138 pounds, 138.25 pounds and grown in 2012. We have a state bird, we flour, a tree, and I think we have a state rifle. I don't have that on my list, but we do not have a State vegetable. So I would bring this forward to highlight our success in agriculture in Alaska and highlight the produce that we cultivate here. And in that case, there's none more iconic than Again, we have 16 other states that highlight their vegetables this way. Giant, there's turnips, there are onions and so on, but I think it's high time that Alaska joins the other states with a with the giant green cabbage and showing our offer as our state's official living in So with that, that's my official presentation. I have a lot more fun things I could talk about and I think maybe my staff has that There's been questions. Well, why not the carrot? Well. You know carrots get up to all kinds of things You can't see them all the time underground Cabbage is cabbages certainly it's Cabbage is certainly out there well-known and well represented there's was a question about a kelp one time I said well that's a seaweed come on our state seaweeds although it could maybe act as a vegetable at times so anyway I look forward to having you all listen this bill and appreciate the time that you take out of your the seriousness of the legislature to have a little bit of I know we have a couple of slides here, did we want to go through those before we take a couple questions? Yeah, I will go ahead and do that. I was to say good afternoon, Madam Chair, esteemed members of the committee. For the record, my name is Andrew Evans. I am staff to Representative Johnson. If it pleases the Committee, I'll read a very short section all, and then we do have a brief little presentation for you. House Bill 202, the sectional is as follows. Section 1 amends AS44.09 to add a new section. Section 4409.055, which would establish the giant cabbage as Alaska's official state vegetable. Section 2 sets an immediate effective date under AS0110.0070 section C. And I do have a short little presentation, some of this is probably going to be something that the representative already went over here, but we'll go ahead and do it. And, I just want to clear I have nothing on seaweed for anybody. Okay, so vegetable cultivation in Alaska actually began in the 1870s and expanded to In 1935, with the establishment of the Manonuska colony in Palmer, actual sustainable agriculture became firmly established in Alaska. Today Alaska produces millions of dollars in agricultural products for more than 1,100 farms, but the most iconic of these crops is the giant green cabbage. These cabbages are centerpiece at the Alaska State Fair and garner worldwide media attention. In fact, the current Guinness World Record for the largest green cabbage ever grown belongs to 138 and a quarter pound giant cabbage grown in Palmer in 2012 and that record stands right through to today. Sixteen other states, in fact showcase their agriculture with official vegetables ranging But Alaska, of course, has an official state bird, dog, fish, flower, mammal, and even a tree, but we have no official-state vegetable representative of our long history of success and agriculture. Of all the produce grown in Alaska there really is none more iconic than our giant green cabbage. Thank you for listening to that and I'm here for any questions. Thanks. Yeah, through the chair. Let less of a question and more of comment. Where's the samples? I mean, this is state affairs. We don't pass bills without samples. I do not pardon me for the record. Andrew Evans staff to representative Johnson. I actually thought about bringing some corned beef and cabbage to the committee, but I thought better of it, I guess. Follow-up? Just do that. Follow up? So I think I just heard an invite for St. Patrick's Day in the Minority Leaders Office. Perfect. Absolutely. I will be cooking, sir. You will, fortunately, have one more opportunity, I believe, to bring samples to the House State Affairs Committee. So, we can make that happen. We can accomplish that? Representative Hymshoot. Thank you, Chair Kerrick. I had some concerns about this bill through the chair We don't get giant cabbages in southeast due to our soil conditions our cavages don't become giant So I was thinking is this really representative of the whole state and then I realized it really is and so I've kind of embraced the cabbage And so, I might amend the bill given the chance to include the requirement for a lapel pin for the legislature, featuring the giant cabbage. I was just curious if the sponsor had any. You know, they call it the stinking rose. That's another name for cabbage, I think it could. I'd think could be almost a flower, it can be a lapel pen, absolutely. All right, so I might have to put an amendment into, but I'm afraid you'll pick up a fiscal note if I do that, so, I still thinking about what to do, but appreciate the thoughtfulness in your bill, thank you. I would just note too that the lapel pins are a ledge council thing and so if we want to do a new legislative pin that's a cabbage There is actually a mechanism for that. And just for the record, for those listening online, our percent of him, she was currently holding up a couple of potential lapel pin designs. What is a cabbage universal to the state? We got the whole state covered right here, but if we want to go giant cabbage, which I'm curious if you guys can pronounce the scientific name, but anyway, if go a giant cabbage, then you got to have the wheelbarrow for context. Thank you. for the questions and for the levity today, it's really nice to have. I think at this time we're going to go ahead and roll out the committee substitute, which just for a head nod on the record here, the sponsor has requested from us for this legislation. So, can I get a motion from the vice chair and then my committee aid will just mention what the change is after we? Thank you, Madam Chair, I move that the State Affairs Committee adopt CS for HB 202, also known as 3-4-LS-0753-N as our working document. And I'm going to object and ask Stuart Relay to just tell us what the, our committee aid to tell what that change is. And thank you, Representative Johnson and Mr. Evans. Thank you Madam Chair for the record, Stuart Relaystaff for Representative Carrick. The summary of changes, it updates the scientific name, the committee substitute updates a scientific name. The names are spelled out in your summaries of the changes and I am not good at Latin, so I will let all of you read the name changes. I'll I will leave it at that and have it to take any questions. I'm just gonna go ahead and remove my objection. Is there any objection to adopting the CS? Seeing none. House Bill 202 version N has been adopted as our working document. With the C.S. adopted we're going to go head and move to public testimony and so we'll open that. I see no public testimony online or in the room on House Bill 202, so we will go ahead and close public testimony. Is there any additional discussion on house bill 202? Vice Chair Story. Hi, yes. Thank you, Chair Kerrick. I just wanted to point out that there are letters of support for the cabbage being our Thank you for that note. Yes, there are several letters of support in your packet Additional comments representative Vance. I just want to thank the sponsor of the bill moving this forward she is definitely the one that that sees the value of these marketing approaches and would like to just also make note of past history of how she prioritized getting Elizabeth Perretovich on it minted on a coin and telling that story for Alaska and for our civil rights. So this again you never know where the cabbage is gonna go. We're all looking forward to the lapel pins too. House State Affairs is back on the record. We just took a brief at ease and just to briefly summarize those comments, there was some discussion about moving House Bill 202 along today and there seems to be some pretty strong support for the legislation. So we are gonna go ahead and do that and seeing no further discussion. Is there any further discussions or comments? Seeing none. I'm going to turn to Vice Chair Story for a motion. Thank you, Madam Chair. I move that the House State Affairs Committee move three, four dash LS0753 backslash N as amended with attached fiscal notes. Seeing no objection, House Bill 202 version N has been moved from committee. Take a very brief at ease to sign the paperwork. House State Affairs is back on the record. And next on our agenda, we have continued discussion on House Bill 124, the Alaska Industrial Development and Export Authority Bill from my office. Today, we are just going to continue the presentation that we had to hold over from a previous hearing with Executive Director Randy Raro and finish that presentation today. I just wanna thank Mr. Rarro and staff, Edra Moore-ledges, here in the room as well, for being flexible with the committee on scheduling the continuation of this presentation. And thank you for bein' available for us today. As I recall, when we were last hearing the presentation, we had left off on slide 16. And just for the Committee's awareness, we do have one other item on our agenda today, so we will need to conclude the presentation and discussion. on House Bill 124 today by 445. So we have about an hour. And Mr. Raro, if you'd like to go ahead and continue our presentation. Thank you, Madam Chair, members of the committee for the record. My name is Randy Ruharu, R-U-A-R-O. I am the Executive Director for ADA, the Alaska Industrial Development and Export Authority. Page 16 of the presentation chair is simply a example of numerous projects that Ada has financed or funded in some ways across the state of Alaska and our projects span from the far southeast from Ketchikan, the shipyard, all the way to the north slope expand our presence out to the chain, the elution chain as well, and other locations. So geographically, we have a fairly significant reach throughout the state, although we are working on stronger presence in southwest Alaska and the Aleutian chain largely through Potential of the chain is pretty significant. We're working on a couple projects in the chain, the other locations in Alaska. So slide 17. And we're going to pause really quick, Mr. Ruaro. I'm going try to say that right from We have a question from Representative Holland. Great, thank you through the chair. Ms. Roar, I'm curious if there is available to us, particularly in light of the context of this bill, we're working on an accounting of all the assets of authority and the status of those different loans and other instruments that you've entered into. I noted that under AS44, 88-205 that that would be available to us by January 10th. I've gone through the report that was submitted on the 10 and did not notice there of this complete accounting of all the assets. I did also go to the BDO financial reports that were linked and published there and again list of all the assets. So I'm wondering if those are available and if so, where we can go to find those or could you make those available to us? Sure. Through the chair, Representative Holland, I can provide the committee with the letter that was transmitted to the Senate and House clerks that is separate from the annual report and separate form the financial audit that did walk through our assets, and I can also perhaps provide another summary that, with a little more detail, that breaks down between the different loan programs, the IGU loan, different categories, so I may be able to help clarify a lot of that even beyond what was provided to the House and Senate clerks. But I will get that document into the committee aid today. That's great and very helpful. Thank you for that. It would be helpful, I don't know, you know if it's convenient, if any of that could be updated. I noticed that what was available and I believe in those documents were from the end of June of last year. update through the end of the year that would be helpful and in particular I'm curious as you consider being able to provide that list if we can see both what is committed and any terms in terms of when those agreements or contracts will be completed so that we Through the Chair, Representative Holland can definitely provide the information in that format that you described. We have projects that are committed that are in progress, mainly the Alias chem loans, the PEX cook inlet revolving loan, and some And others so I can definitely provide a breakdown in the format. You know you request Representative McCabe thanks through the chair mr. Roraro, so Ada's fiscal year follows the same fiscal years of state so The end of June would be the end the fiscal here so that I assume is what you're reporting on when you drop the report Through the chair, Representative Kay, that's correct. I can provide the update, I think, fairly quickly. Follow-up? Follow up. So thanks, and through the Chair, Mr. Raro. So it would be fair to say that if you are in negotiations for other projects right now, bar the LES chem, which has all been. publicly. Some of that stuff that we were asking you to provide might be sort of close hold or sort maybe not wanting to be out in the public because the maybe the business doesn't want their LPP loan to be known. Through the chair, Representative McCabe, we do have a pipeline of projects Some of those project sponsors probably would prefer their projects remain confidential Others are okay with the project being publicly made aware of The project been made to wear to the public so it's a bit of a mixed bag there, but we do have right now a very robust Pipeline of potential projects that include everything from geothermal to hydroelectric to small business loans, you know, our whole our whole gamut of a program. So we have a lot of projects in that pending form right now. Thanks and one more follow up. That's all right. One more follow-up. Thank you. Yeah, I appreciate that. I can understand a small-business that's angling for a loan might not necessarily want it to be out in the public. Or you know because of our meddling so final question is when was the last time and this is based on some public comment that came Last week when? Was the Last time that the state general fund ever gave Ada any money worth from grants or? You know from us to Ada Through the chair represented McCabe the laughs occasions that I can recall were probably I think 12 to 15 years ago for the Amla Road project and then after that I think more recently perhaps 2018-2019 there were some funds appropriated for the west to sit in a road. Thanks. Representative Holland and then, after this question, we're gonna go, at least go through a few slides before we take. Questions? Great. Thank you through the chair. And just I want to clarify, I think Mr. Lara understood my request, but to clarify because of this recent discussion we had, the update I was looking for through the end of the year are going to be for executed investments. I separately later going ask for a separate report outlining the pipeline. because I would like to understand what is in the pipeline. I do understand the nature of the confidentiality, and again, under 448805, there's some criteria there. So I'm not looking for names of individual firms and anything that would be disclosing anything, but to the degree that the statute also says that we have to annually review the authority's assets to determine whether or not it has the Authority required to fulfill the purposes of Authority. We kind of need to also see what's in The Pipeline. in addition to what's already been deployed. So there's actually two requests. One is for executed deals. So you can see the status of what has been obligated because it's not very apparent from the financial statements. And secondly, the pipeline, but with attention and the pipe line reporting to maintain confidentiality. But I'd still like us to be able to see as it relates to the bill's intent to perhaps change the amount of total capitalization that the authority has. We need to know what they're invested in Pipeline of future investments might be in order to actually answer the question of how much should their Capitalization be and whether or not the current amount is sufficient or no, so thank you for giving me a chance to clarify that request Through the chair Representative Holland if it's okay with the committee and the Chair I can provide a pipeline summary that rather than referring to or identifying individual project sponsors that categorizes the project as a renewable energy project slash geothermal or oil and gas, the North Slope. I can try to categorize it that way. Thank you, Mr. O'Rara, and feel free to continue. Sure, so slide 17 chair is some examples of. health care projects or projects in the health care field that data has participated in some large projects, the blood bank, the YK Health Corporation project, the chief Andrew Isaac Health Center in Fairbanks. So we've been active in that category of projects as well. Slide 18 is the Handler Access Project. It's been around decades, frankly Congress decided in 1980 that there should be an access corridor from the Dalton Highway to the Ambler Mining District. The area has been mined for decades I think, starting around the turn of the previous century and lots of historical records finding minerals in that district. When Congress got to a NILCA in 1980, it was one of the few minds that the Congress said specifically in a section that there should, there shall be access. It was not a discretionary access, right? It wasn't a there-shall-be access language in section 201 of a I think in the committee files we do visit those communities, we hold meetings in those communities and we usually, after the meeting, will usually do a dinner or an event in those community. So the financial side of that is significant state revenue, perhaps more importantly the which would make jobs particularly for those communities close to the project that have high unemployment, low employment participation rates, make those jobs particular important for the communities, some of which anecdotally have unemployment rates running into the 70s or 80% level. That's the Ambler Project, slide 19 is the Anwar Project. This one in Congress in 2017 and the Tax Account and Job Act directed the Department of Interior to hold the lease sales. In AnWar, Congress has again peated that requirement for the department of Interior to holding, I think, four more sales, ADA recognizing the value of the oil and gas in stepped up and bid on the leases. We have some preliminary reports from our geologist that the lease holds $4 billion barrels of oil recoverable and 7 trillion cubic feet of natural gas. Of course, it's in a remote spot of Alaska, and so we have to spend significant funds not only confirming the resource with 3D seismic, but we We'll need to find a partner with to develop those reserves, but the revenue or estimated revenue and these numbers from the Biden administration, SEIS, meet the document was roughly between taxes and royalties at $2 billion a year, so very significant oil deposits there and we're And we do work with CAC TOVIC, talk to the only community in ANWR, they support us and they support development in an ANR. Slide 20 is the Web to Sit and Access project. This is a project that I believe it was 2019 or 2020, the legislature gave ADA funding and direction to develop this road. This road reaches into the yet in the mining district. Also provides recreational access and access to burrow selected lands for housing and other things. So this road accesses several mines and would provide recreational access an access for Housing and Other Things for this project. Slide 21 is managed. Mr. Raro we're actually going to pause on slide 20 here and go to Representative McCabe for questions on any of the last couple sides. Yeah, thanks. So through the Chair, Mr. Raurro, I'm just kind of wondering, I know that, let's see, I think I have been to at least 20 meetings on the west to sit in access. Probably six of them were at the Big Lake Community Council. I knew you've had meetings at various places for people and Some of the commenters the other day were commenting that you hadn't had that you don't have any meetings so maybe if there are more meetings, public input meetings coming up for the west to sit in access you could provide us with a list of those so that we could somehow get those out into the open so that the commenters that said that you don't provide meetings or input or meaningful public input would realize that maybe it's just a communication or maybe they're not watching the Can you kind of highlight where you're at right now on the on the west to sit in access for some of my constituents who might be watching as far as seemed to me you did some sort of a surveying last summer if I'm not mistaken? Through the chair representing McCabe it's correct that the engineers and field work have been ongoing for this project design location of bridges Outreach, some stakeholders, there will be a core permit application that has been filed and there'll be formal declaration, I guess, or public notice by the Army Corps that they're officially starting their permit process and at that point they'll not only be public participation opportunities through ADA, but they will public participation opportunity And that's the usual case for our resource development projects. There's a number of permits that have to be obtained from both federal and state agencies. And so you'll have public hearings and notices ongoing through multiple avenues for these projects Thanks. Follow-up? Thanks, so one more follow- up, I appreciate it, Mr. Rauras. This is all on on burl land. I believe it's not even on state land and I I know about the EPA and all the permits but in the Corps of Engineers But maybe the one thing I don't know There's us the wetlands. I think I was told once it was one percent of the entire project crosses or covers Wetlands is that right or is it 10% I can't remember Through the Chair and Representative McCabe, most of the land that the project runs across and access is actually state land. There's some burrow land at Alexander Creek, some Burrow selections, and then as far as federal jurisdictional wetlands, the U.S. Supreme Court case and Sacket greatly reduced Several under day for some believe Thank you Representative him shoot Thank You chair character the chair mr. Raro. I'm back on slide 18 with the Amblor access project and We heard in public testimony a lot of folks who are concerned about this road being open to the public versus being private and I Seems like the regarantees given that the road would be private How do we achieve that? How is how is a road? Made public versus made private. Is that through legislation or how can we guarantee for those folks who've been told it will be private that it is private? Sure through this chair represented of him. She I think there's probably three layers of assurance that the road will Kept at an industrial access and limited commercial access Only, and the first layer is the need for permitting process, which, you know, the permitting the road starts on federal land, that permitting processes resulted in a formal agency decision by the BLM that the Road would be limited access. That limited-access designation was then adopted by President Trump and incorporate in his subject to appeal under the Anilka statutes, and so we have now an agency decision and a presidential decision that says the road will be limited access and the third layer of assurance is frankly that the project, the Road has to run through several segments I think there might be one more land holder, but to my knowledge, none of those entities have agreed to allow anything but limited access and limited commercial access across their land for the road. So several layers of protection, I guess, to make sure the Road is limited-access industrial and commercial use, and if there's a medevac need, that is another use that's allowed. Thank you. Thanks for that answer. And then through the chair, my follow-up question is, do we know what this road will cost? Like, there's all kinds of benefits spelled out here, but what's the cost of the road? And who pays it? Sure. So, through a chair to the costs of road, we have some really only rough estimates anywhere from between $500 million and $1 billion. This year, we're hoping to get out in the field and take geotechnical surveys of and drill samples of the bridge sites, particularly the large bridge site. And depending on the results of those geo-technical samples, the engineers will be able to design bridges and give us cost estimates. to determining, you know, or producing a very solid cost estimate for this entire project. But we're hoping to get out in the field, get that geotechnical work done, and then be able to provide everyone with a much firmer cost estimates for the road. In terms of who pays for road, the Road is intended to follow the red dog model. which is ADA would not advance with the project until the mine companies had agreed and provided assurances, assurances that they will back the cost of the road, whatever the financing vehicle is. So regardless of whether at that point the mines go forward or not, ADA would be assured that the mines would cover the costs of the projects. So we won't advance it until we have those types of assurances similar to the Red Dog Road. Thank you. One more follow-up. Through the chair, a concern that I've heard in my district for projects across the state, so a lot of these are ADA projects, but not all of them, for example, taps. At the community level when I was on the assembly, anytime we leased land and somebody wanted to develop something, there had to be some kind of a bond in place The area to the state it was in prior to their use so I keep hearing it's a temporary road, and it will be taken out or whatever What's the guarantee of that is there some kind of bond or how do we know? That the road in this case the Road, but really all projects that Ada's funding if they're not considered permanent What the method for guaranteeing that those will, be so to speak cleaned up Sure, through the chair, Representative Hymn-Shoot data will follow the existing federal rules for federal lands on reclamation and bonding, and will followed the state rules as well on state lands for reclamation and bondings. So that issue or that cost of reclaiming the road will be managed through those existing statutes and requirements. Thank you. I don't see any additional questions at this time. Mr. Rorro, if you want to continue, I think let's maybe hold the rest of our questions until we've completed the presentation, and then we can take questions for as long as we have time for after that. Thank you, Madam Chair. Slide 21 is a slide on the ketchikan shipyard. This is the facility in Ketchikan that ate his own for several decades. receiving it from DOT at some point in the past. We recently changed operators from a company called Zigger to a Company called Jag, Jag Marine, and they have increased business and from roughly 15 jobs I think when they took over the and some other facilities to create a training pipeline to get locals into those jobs as much as we can, and more also looking at potential home porting or at least the ability to haul out the fast response cutters and the middle-sized medium-class icebreakers of which the common in a committee hearing to Senators Sullivan just last week, said he's looking at home porting for more medium class ice breakers in Alaska. So we're hoping to be able to add some improvements to the shipyard that would allow those icebreakers and fast response cutters to be hauled out in Ketchikan and maintenance work done there. We estimate, rough estimate is that could add another 150 jobs. We might be able to go from 15 jobs just a few months ago to 300 in two years. We've been working with them. We just financed not too long ago the purchase of the LNG trucks. They're now trucking from the float versus taking gas out of the inlet. That provides about one and a half percent of total demand needs out of Cook Inlet back to South Central. And then Cook in Let Tech's Fury is a company that aid is established they just drilled two successful wells this last year. I think they're up from bankruptcy under a previous owner and zero production. And I believe they are now up to 12% of all production out of the inlet with ADA's financing. We think if they were successful this next year they can We're also looking into projects, these would be pipeline projects but we're looking into other projects that are transmission or renewable energy projects geothermal hydroelectric and I'll add those to the list that representative Paul and asked about. Life 23 is just a representation of how the dollars flow in and in a project, so the red The project produces, has produced, I think nearly $2 billion in 7I, 7J funds, revenue sharing, because the project is on nanoland, so those funds flow through all the other native corporations and assist them in their operations, 800 to 1,000 I'd think share 50 million a year at least in wages, we have a village improvement fund that's been very helpful for the small communities and of course the Northwest Arctic Burroughs Pilt arrangement with tech I think produces almost 80 percent of their annual budget at roughly 25 million ADA's investments can produce benefits that probably aren't measured solely in financial return to ADA, but they do accomplish our statutory mission of creating economic development and jobs. Slide 24 has some emerging investment areas that we're looking into. A.I. Edge Computing, that's a project that we're working on in Cordova with a company called Greenspark. That project, when up and running, would absorb some excess hydro capacity in the community and at the same time provide revenue for the Community and bring down energy costs for the people in Córdova. Edge data center model is something that we'd like to try to repeat in other communities. We're working with AML to get some data from other community's on whether they have excess hydro or excess energy and would be a good potential target for repeating that project. others and in the chain, the Lucian chain. Methanol is a product that can be made from natural gas. We just closed the funding with Aliaskin for a new methanol plant on the North Slope, and we're looking at opportunities for marine methanol in other locations. If A-K-L-N-G Build other projects off of that gas supply That's it for those slides on projects Madam chair if I my next these slides are my comments on how aid it would be affected by hg 124 and I can proceed with those if if that's the will of the chair Yeah, let do we have any questions before we go into those last couple slides, okay representative Holland great. Thanks Mr. Raur, I just wanted to follow up, you know, I planned on talking about kind of the pipeline at this point, but we got into it a little bit earlier. But with regard to the state's adopted comprehensive economic development strategy, which identifies a state level set of strategies around economic diversification and areas of investment, And, you know, I think you and I have chatted before about the idea of ADA perhaps being able to help leverage, catalyze, and grow the early stage business opportunity so that we can have more LASMs in the world. I'm just wondering, what are your views right now on how we might do more to use the resources significantly invest in those diversification and emerging sector efforts. You know, Ada gets a lot of attention because of its major projects in kind of the engines as the feds would refer to them. But I think we both realize that there's a lot more work we could be doing to create a lot earlier stage businesses and the velocity of that. What's your current strategy or the board's thoughts use the assets you have to both align with the said's plan but you know perhaps lean into increasing the velocity quantity and quality of early stage businesses so a better pipeline for more of your established products at later stages. subsidiary of ADA, which were allowed to own subsidiary company, it's a tech subsidiary, which is focused on being able to zest and review and hopefully promote businesses engaged in tech activities from AI to quantum, whatever it is that they're working on. I think Aida should participate, find other partners to work with four people with ideas and small businesses, you know, those ideas are going to come faster and faster and faster with AI. I mean, I can think you can almost literally come up with a question or a business thought, plug it into AI and the research, that used to take months. you know, may be able to just come back to you in minutes, and so I think we do need to work, aid that doesn't even work with partners, beyond the tech subsidiary, instead of somehow set up a central location, I guess, almost incubator site, where Alaskans with ideas can submit those and try to advance those to grow a business. Follow-up great. Thank you for that. That's Interesting and good news. I wonder do you have or can you share information about that new subsidiary strategy perhaps as a follow-ups to this Discussion today, I'd be interested in learning more when and if that's appropriate to share that Sure through the chair representative Paul and I can definitely get you the resolution Establishing the subsidiary and i think we have a public memo on it as well And I'm happy to meet with you and talk about, you know, how that's going to evolve. Representative McCabe. Thanks. Yeah. So, Mr. Marrero, you, and I have talked significantly about the loan participation, or partner participation in the LPP program. And I think you told me that there may be as many more than 1,000 businesses in Alaska that have benefited or are benefiting from that program. I wonder if there's a way to get that list of people that are or businesses that have benefitted from them into our hands. if not by name, maybe at least by geographic region. So say if there was, you know, a thousand businesses in the Big Lake area that had used data successfully, got a loan. bought some equipment, made their business go and then paid back their loan, which paid back the general fund. Kind of like to know, you know we hear from public testimony that there's the lack of transparency and people don't know what ADA does and a lot of misinformation and it would be helpful to us if we had a list of even a geographic list that would even for our districts that'd be as helpful. Is that possible do you suppose? Through the chair, Representative McCabe, I can check, we'll check. I have seen reports run of our borrowers before. I'd have to look at the loan agreements to see what it says about disclosing names or information, but I could definitely look at that issue and get back to you. follow up. Thanks. Yeah, I don't want to scare anybody or make anybody nervous that we're going to disclose their loans or anything. So maybe just the aggregate numbers of how many loans and you know, it's just something to give us an idea. So we can take back to our constituents and let them know you know how money loans that the big lake areas had and how many businesses we've benefited for Ada and maybe an aggregate amount of money that has come back. Ada from from each district. Through the chair to represent a McCabe, I will look at that issue and see what the language says about confidentiality and talk to our in-house council and I know we can generate the report I just have to make sure we're not violating any long-term. Thanks. And Mr. Roor I Just want to echo representative McCabe's request and again I don't think the request is for the business names per se or the loan amounts, but just the I guess a heat map regionally would be a cool way to see it or You know if we can say just how many loans We've had in the LPP program by you know, not even by district, but just by region and Alaska. That'd be really That be great to See Representative Holland great. Thank you if I can just offer a thought on this To the degree that we can see the amounts that actually would be helpful, the purpose of this bill is to help us to understand the amount of money that aid out of needs in order to do its work. And I genuinely want to understand what is currently outstanding in loans, as opposed to what might have been loaned a couple decades ago. Sometimes, you know, the information we see talks about projects that are very successful, but long since kind of mostly done. So I'm trying to, I think it would be very useful to have that kind of broader report of all the stuff that was done, but I am specifically trying to get down to brass tacks here in terms of how much money is currently obligated existing loans that were in place. So, so I just want to throw that out there, and I don't necessarily want not specific, not with names, not something that's identifiable, but I do think we need to know what's obligated to understand. We go back and look at the balance sheet to know that those numbers mean in terms of how much of the money is actually currently at work in Alaska. Yeah. I'll leave it to Mr. Raro and staff to figure out how best to prepare that list, but numbers would be great. De-identified information is perfectly acceptable. I also just want to respond to Representative McCabe regarding some of the public testimony that I think one of things I want highlight, even though this is a bill that one could say clips Aida's wings a little bit. One of those things that highlight is some that small business development and loan participation program that is working really well within AIDA and just kind of also get have a lot of public support but maybe the public doesn't really know very much about other than the folks that have used it and so I would be very happy to get that information and also just highlight that work that Ada is doing and has done for a long time around the state. I'd like Mr. Aurora to get through the slides regarding House Bill 124 and take questions once he's completed that and then open it up for questions one more time. So I think we're on slide 26. Right. We, Madam Chair, we are on Slide 26, if I could, there's sections, the fourth section committee that's made what opposed and one of those is section two which changes up the makeup of the board and puts on to the Board a member of a specific environmental group or advocacy group and also adds on members who are former legislators but as I read the bill those individuals would requirement that's in statute now. And so we have some concerns about that section number two. All board members now are required to make decisions under a reasonable and prudent Esther standard and objective standard regardless of their background or where they are, what groups they're a member of. Section 3, this changes up the staggering of the board terms and then allows for a removal of some board members once some appointments are made by, would be made by the Speaker or the Senate President. Some politicization of the board and the decision-making process that we want to post section 3, section 4, is requiring ADA to adopt personnel rules. But most personnel rule, I can't think of any exempt ADA now. whistle-blowers, or any of those existing personnel rules for any other state agency do apply to ADA now. And so we're not sure that that's a section 4 requirement that is needed for ADA. could file a complaint to protect its interests under a contract or a loan or some other agreement. And this is another section that Ada would oppose. We think our in-house council and our outside council are best suited to make decisions about whether Ada should file a lawsuit and we don't, I can't think of a. situation recently where ADA has filed a lawsuit. We have been sued under different lawsuits for different things, but I can't remember ADA bringing a law suit or abusing, you know, in some way it's right now under the statutes to bring a lawsuits. So we would ask that Section 5 be deleted. Section 6 talks We don't oppose that. That language talks about ADA responding with written responses to comments on RAGs that we donít oppose to that requirement, either thatís something we can do. Section 8, this is probably one of the main sections that will not reform ADA, but stop it from performing its functions entirely. This section requires ADA to sell off roughly $1.2 million in assets, whatever those are, loans, six assets that the kitchen can shipyard, FedEx, Hanger, whatever it is, ADA would have to sale those assets by the end of 2026. If I read the effective date right, that type of a sale for sale would result We would then, even if we stayed at the 500 million level of allowed assets, we would then be unable to make any further investments because that could, or even accept the grant, for example, for the shipyard, because, that counts as an asset under GASB, and that would put us over the $500 million limit, so we'd be stuck. Not only incurring hundreds of millions in losses, but we would be stuck at being unable to conduct any new loans or business. Section 9 is a section that also we have serious concerns with. It contains provisions about requiring you to get a certified resolution of a political subdivision in which a project is located in. As we see with the Amla Road, you know, there's multiple political subdivisions. There's probably, I think, seven or eight communities within 50 or 75 miles of the road. Some of those support it. We've got resolutions of support into the record on Alec Hackett and Hughes and Shug Mac and Tobuck, Ruby and some others. But, it's very difficult to hit 100%. And there are communities that oppose the project, Evansville-Bettles-Alatna and some others. So this requirement, if it's applied to require 100 percent approval, will result in a lot of projects, not advancing, even though a majority of the communities with perhaps not Section 9, so 2 requires ADA to make findings that the project would create jobs and is economically feasible. Those are current requirements that are imposed on ADA now, finance plan and due diligence, et cetera, all through those current Ada would have to compile a study of economic, social, and environmental effects of a project. And that is something we're interested in for sure. And we do work on and study. It's largely done for any resource development project that's largely gone through the NEPA studies of the Army Corps, the BLM, or whatever federal agency is managing the project, I think in the case of the Envelope Road, I think there are over 1,000 pages of economic, social, and environmental effects of a project in there. But so the work is that type of work, that analysis is done. It's just done for, in a way, a data project, but through a federal agency conducting a NEPA study. Section 9-4 and 9 sub-5 talks about providing the information to the legislature. We submit annual reports, audits, and have for decades into the Legislature. I was struggling on this section to understand exactly what new information would be provided. It doesn't see how sections 9, sub 4, and 9 sub 5 are needed. Section 10 is a requirement that prohibits a board member from voting on a resolution. If their interest in a lease or contract is direct or indirect, the language currently in statute talks about a direct interest. So I can't really comment on the effect of section 10. Section 11 repeals and re-imposes a requirement about providing and accounting of assets. Again, it was unclear to me what new requirements are created by section 11. Section 12 talks about data creating and developing missions and majors for performance results and getting those into the legislature. I think that would be fine. We should be have missions and majors. I don't know if they're called anymore. That's what they were back in 2002 when I was working on those with house as of house financing. But Ada does not object to creating and then reporting on missions in majors for performance. I read the language one way, it seems to require business information, tax information and other things, financial information to be considered a public record. What I couldn't tell was whether the normal protections under the public records statute would apply or if it was just to Obviously, you know, a lot of loan and project borrows and sponsors would be unlikely to come to A to if they knew their business information would release. So that's a section I think that could be clarified. Section 14 talks about A, to being able to bring a lawsuit only if approved by the attorney for the reasons I mentioned earlier, paid a draft, its own contracts within house council. We use out of house, out-of-house council for reviews as well. And we think we're in the best position to decide, you know, whether to bring a complaint to protect our interests. So we would oppose making that ability subject to the Section 15 removes the standard protection for every other state employee, I think, in every state in the nation, that if they're doing their job, you know, they are not subject to being sued and held personally liable for some complaint or claim. So, this is a section we would encourage the committee to remove. working hard doing a great job and following the rules and should not be singled out, I guess, for being subject to personal liability for decisions that they make in their capacity. I think the effective date, section 17, January 1, 2027, what was unclear here, chair, and members projects, investments, things that ADA has under contract now would be subject to the forced sale of assets under Section 8 that would or could result in significant losses and ADA having to breach a number of contracts. funds and investments that are currently under a valid contract are exempted from Section 8 that makes the impact less, but it's still a significant negative impact on ADA. That's my review of the sections, Chair. Thank you, Mr. Horaro, for walking through that. That was a very clear presentation. Let's see, do we have any questions or comments from committee members? And we'll have about tenish minutes. So Representative Holland, and then we will go to. Great, thanks. statements just so I can go back later and do some more work on this. In the statement and that position, there's a section referred to as deferred inflows of resources. Could you clarify what is currently being stated under this category deferred inflow of resources? It looks like it's got 163 million dollars in there. I'm just curious what it is. I've tried researching it, but I couldn't get down to the bottom of it. is listening in and may be available to answer that question. If she's not able to jump on right away, would ask the indulgence of the chair and the committee to get a written response in after that. Okay. The follow-up is fine. The second follow up. Follow-ups. Thank you. And the same question, again, fine, if you want to follow up on it, when we look at the A statement of revenues, there's a section on non-operating revenues versus operating revenues. I'm assuming non operating revenue may be other investments and activities, but it would be helpful if you could give us some breakdown of the difference between the two. It looks like the non operate revenues or if take out the dividend to the state slightly higher than the operating revenues which I assume are mission related activities. Quick thought on that, that's great if you want to follow up with that. Through the chair representative all and that is correct and we will get a specific breakdown to you as part of the follow-up from today's hearing. Thanks and then thank you for that and through the Chair going back to the statement of net position and I've And this gets back to the question of this, you know, possible forced sale divestiture in order if we were to try and implement the bill as it currently states. It looks to me, but this get back to those other reports I think you're going to work on, that there is about $1.05 billion worth of items on the statement funds in different investments, whether that is firm capital equity investments or open loans, which would seem to suggest that there is another almost 600 million dollars. that is not invested in anything right now and that if we were to be looking at some changes in the total capitalization, then I certainly agree that we went down below what I think is 1.0, 4.7, 1 point 0.5, that would definitely start forcing things to have to get divested But if in the reports you're going to work on, if you could help us clarify how much of the total 1.75 is actually tied up in things versus what I think is about $600 million that may just be sitting in cash and other investments would be helpful. Thank you. Through the Chairman, Representative Pollack, we will definitely get to. That breakdown, the amount of money sitting in cash is very low. Most of our funds, over 95%, I would say, are all either working in a project or invested in bonds, treasury notes, things of that nature. So very little actual cash, I think, comparatively. But we will get you that breakdown. Thank you. Representative McCabe. Thanks. So, Mr. Raro, staying on the on slide 26 here with the Section 8 and the divesting of 1.2 billion. You said million. I think you meant billion in assets. I want to focus on one in particular just because I happen to know the details of it. I want to focus on inlet gas utility, interior gas utility. I keep saying inlets. I don't know why. It's definitely not in in life. I know, right? So the interior, gas, utility and I want highlight this for people that are listening was a loan that you gave to a company or an entity in the Fairbanks natural gas to Fairbanks to mitigate the PM 2.5 and to provide cheaper natural gas or to fairbanks for heat and if I remember right that was a hundred and thirty nine million dollars it was at 35 year loan the first 15 years were payment and interest free and the next the rest of the loan period which would a quarter of a point for payment if I remember right. So that would be considered a low performing or low hanging fruit for divestiture. If you had to get rid of assets, that would one of the first that will be part of fire sale would be my guess. So how does that work? You sell that to another company and then they immediately force the IGU to start making payments or does the or or in other words is our meddling here or is this bill going to create issues for Fairbanks people in heat and in cheap natural gas? Through the chair representative McCabe so if we were forced to sell assets we would have to do so under the statutory taking steps that a reasonable and ordinary prudent investor would take and so we would be organizing our assets in the ranking them from highest performing to least Performing and as you mentioned by statute the direction of the legislature The IGU loan is a very low performing asset By design, you know by law It's it's that in that way, but we will have to analyze it from that objective standard, it would be an asset that we would be forced to see if we could sell or remove from our total assets under this bill and it's unlikely I think that, we may not even be able to find a buyer. If we and that buyer I'm sure would be looking at those terms to see if there was a way to force a change in those terms at some point in time and negotiate for a higher rate of return otherwise you know they would probably be unlikely to want the asset. Thank you so I appreciate that and so you also what I see as a fire sale anytime you take a big financial package or a group like you have and and are forced to sell assets within a really fixed tight time period. It's the buyers look at I wonder if there's estimates of, I mean, could you find a buyer for the catch-a-can, you know, for, the, power down there or for the shipyard? How would that work? I, mean would you just put it up for sale, you put it on Craigslist or something, or, um, you know it just seems to me that we would be offering these assets up on the chopping block and a fire sale. reach out to some private investors that may have expressed interest in an asset at some time, but we would be at a disadvantage because they would know that they could simply wait and wait for the deadline to get closer and closer, and force, you know, more leverage would become big stats at them even loans that we would be forced to sell thanks I appreciate it one more one More very brief okay so should the people that are employed by the is it snettish am the power plant and the shipyard and red dog mind should they be worried for their jobs would you think if we should pass this bill if through the chair represented McCabe if the bill It would force Aida into a number of positions. I guess the first position is we would obviously retain legal counsel to take a look at whether the provisions of the bill can actually force aida to break contracts and sell assets because to break a contract, so one of the first things we would do is hire the attorneys and start looking at the constitutionality of a bill, there's also a Contract Clause protection in the Alaska Constitution, and we'd look at that, before we gave notice of great concern We would definitely take a very hard look at the legality of the bill and have to decide whether to challenge it. I think it's likely we would, but it would be definitely, you know, I think still turning for employees of A to assets, A-to assets that this has happened and, the location where they were could be forcibly sold. We have a couple more questions. I had put myself in the queue, then I have Vice Chair's story in that representative Vance will get the last question today. Mr. Bararo, I'd be remiss if I didn't ask about the Northern Economic Study that the legislature paid a quarter of a million dollars for. And my understanding is it was released two years late when I looked at it the other day. less robust than the ADA Annual Report for this last year and was about 16 pages long. What can you tell me about why that study was so delayed and why it is so skimpy for lack of a better word? Sure, through the chair, a couple of notes on that Northern Economic Study. What I guess study is due any day and it will be hundreds of pages long. Part of the delay in getting the study out was because we were trying to address a number of allegations, I would call it jello, throwing at the wall by the salmon state economist, push back and present facts on those types of allegations takes a lot more research. And so we were, you know, in that instance we we're calling Vancouver Archives to get business records of Kaminko and the legislative librarian was helping us look up the bill files from 1983, to compile what we think is a good factual representation of ADA and just drug on and then we had to update it because it had some time it passed and we have another annual reporter, another fiscal year that passed, and you know we wanted to updated to show the current status of ADA and so it has taken longer ADA paid the funding from its own receipts for the study. It was brought about because of the salmon state report and the desire of the board to have a rebuttal to that report out there. So I'm hopeful that we can get that to everyone this week. We think it's going to show a very different picture of ADA than what was represented in the other report. Thank you for that response, mr. Raro. I I have a question from that I Mean is Ada's role with public dollars that was provided to prepare that report Is the role of Ada using those public Dollars to provide a report that is two years late and is a rebuttal to public groups in Alaska? Through the chair, it was a policy decision the fund or all ADA receipts which, by statute, are separate from the state treasury. It was a policy decision to try to inform the public, I guess, of accurate facts about ADA. So that was the policy decisions that were made. I would say that it was policy call, but it is important for the public to have accurate information. when attacked or alleged to have perhaps not met its mission or other things. So, I think there will be a significant benefit to the public of having the report completed. Thank you for that response and for the slight trajectory off of the bill. I appreciate you answering those questions. We have to be fairly quick with the last couple of questions. I've got Vice Chair Story, then Representative Vance. Representative Hymshoot, you can have the Last One. Will there be another opportunity or this is kind of? We will ask Mr. Raro to come back and be available for questions, this kind is likely our last opportunity for his direct testimony, but we will definitely invite Ada to present for the rest of the discussion. Or vice-chair story. Thank you, Chair Kerrick. And I wanted to just comment and say that I agree with Rep. Holland's quest to get more information. I think people have been asking for that, and I appreciate Director Raro, your, you know. to saying that you're going to be having that more thorough information for us. I think one thing that I really wanted to ask was about the public process, as you can read the letters about this bill. Rep. Kerrick's attempt in the bill to make sure public comment time is recognized. There's a few suggestions in there, just about the public process in general, and I'm sure you have heard some concerns too. And so I am wondering what you feel should be done or how your organization is looking at being more responsive to the inquiries for public processes. I would appreciate hearing about that. Sure, through the chair representative story, the public process at ADA and I can provide a one page of our notice and agenda. We always have at least one opportunity for public comment. Will of the chair to allow some leniency and allow comment to go beyond that time limit But we do always have a public comment opportunity our meetings are publicly noticed usually at least a month in advance And and frankly will I I did hear and I don't doubt the People who testified that they're frustrated with our process. I think it's more a That's a result of the fact that we don't, the board doesn't engage in a back and forth public debate with people commenting, they listen and take in the comment but you know we're not, I'm not then the Board is not engaging in public debate over the merits of a project at our meetings. It doesn t mean their public comments aren t important or they haven t been heard. It's just not part of our process to get into that type of a back-and-forth debate. And I would also add that, you know, the nature of organization, corporation, is that our statutory mission is to advance economic development, including the development of our natural resources and to create jobs. that's maybe at odds with a lot of the people commenting and they may be frustrated that you know they're not feel like they are not heard that the projects are continuing but you don't in all due respect that mission that we've been given by the legislature is to create revenue for the state, create jobs and support economic development so having that I think that's where the board is going to land in most instances. Follow-up? Follow up? Thank you for that. And I didn't... I heard some thoughts about why you thought the public maybe didnít feel there was a thorough public process. I think is if there's a limit on time to how long you hear people for two minutes, I'm wondering about the public process of like if a technology went down as it a goal at the next meeting to have more public comment time. Our pack is posted. are the letters you get that are pro or con for a project posted. I was looking for sort of those kind of elaborations. Sure, through the chair. So on the agenda, there will be a notice for public comment. There's no limit to the length of time that's allowed for the public comments overall. Two minutes, but like I said, it's very common for the chair to just allow some leave leeway and people to finish their comments. I can also look up some statistics, but I think at many of our meetings, there is no comment. It's not uncommon for no one to show up at our hearings at comments, other times we do have four or five, so it kind of varies. Our public notice process is always the same. We do post agendas, we do post resolutions in advance of the meeting. We could post the comments themselves, so that's something we could start doing is just posting the comment as part of the record, they are part of record. So that is something we can do. One last follow-up, and then we're going to go to repert. Okay. One less follow up. Yes, I guess when I was thinking about, oh, through the chair, I think about the information about the comments being posted, but I was just curious, too, about their projects and background information that was completed, any environmental things that people are wanting to read and know that those processes were done. Are they put up on the internet to wherever you post them? Through the fair, we do post publicly post and have a lot of information available, for example, biologist and that results of his study were posted publicly and provided out in a press release. So we do have a fair amount of information out. I'd have to go back and look at each project see what we have posted but we try to get things like that out so the public can read that. Thank you. I know we have questions from representative Vance and representative him shoot I'd like to invite mr. Raro back for Thursday's meeting I believe he will be joining us at that meeting Online we hope so anyway. We will make sure that there is an opportunity for members to continue asking questions For our time constraint today, we are going to set house bill 124 aside For members information, my intention is at our Thursday hearing to bring forward a committee substitute for the committee that my office has been working on and Then use that as our working document for A meant for members to then offer amendments to So we will at the next Hearing on Thursday Bring this bill back forward continue some committee discussion and present a Committee substitute for consideration just so folks know what we're doing next. Thank you again to Mr. Bararo and to Miss Morlage for being here today. Um thank you. Thank You. Uh so we are setting House Bill 124 aside and the next item on our agenda. I'm very glad we got to it is from Representative St. Clair House Resolution 6, honoring America's and both of us are going to have to get really good at saying this word. Thank you for being here. For the record, Steve St. Clair, Representative District 26. House Resolution 6, I'm just going to read the title real quick and then I'll go into some comments. I know that we're short on time. House resolution 6 recognize and commemorate the 250th. I am not going say that long word. anniversary of the founding of United States of America, encouraging participation in commemorative events and encouraging educational institutes to enhance civics education. I was asked by a HR 6 is a celebratory resolution that recognizes the birthday of the United States of America, our Constitution, and the founding of our great nation. This resolution is near and dear to my heart as a service member who spent twenty years in the Army. I'm going to read the oath of enlistment for the army. that I will support and defend the Constitution of the United States against all enemies, foreign and domestic, and that I bear true faith and allegiance to the same, and I obey the orders of President of the US and the orders the officers appointed over me according to regulations and uniform code of military justice so help me God. And then recently I took another oath for state representative. I do solemnly swear that I will support and defend the Constitution of the United States and the constitution of the state of Alaska, and that i will faithfully discharge my duties as a representative to the best of my ability. Both of these oaths include the U.S. constitutional as the foundational element. I have never been relieved of my military oath, and I fully intend to uphold my oath for state office. This is a vital resolution that encourages discussion of the United States Constitution and the founding of this great nation. Thank you very much, Representative St. Clair, and just to add some context, we both saw on the floor about a week or so ago that we introduced the same subject. Both members of this committee, both sitting next to each other. We've both been in communication with our offices and with the other body and have kind of a pathway forward here. So do you have any further comments, Representative St. Clair? No Madam Chair. Thank you, thank you so much for your service and for your presentation. I think that just exemplifies why. This is so important. What we have done working together, our two offices, is take a lot of the language from House Resolution 6 and add it to House Concurrent Resolution 9, made a few other small changes to that resolution to reflect the intent of both of resolutions. So, we are setting House Resolution 6 aside, and we are now going to present a CS Committee substitute for House Concurrent Resolution 9. Just for the public's awareness, listening, a concurrent resolution goes through both bodies, while a Senate resolution go through just the Senate body and the House resolutions just go through the house body. My office has decided to move forward with House Concurrent Resolution 9, as it is the only resolution right now introduced in either body that must go through both bodies. But I just want to say for House concurrent resolution 9 before we present the committee substitute that I'm extremely grateful for both Senator Tilton and Representative St. Clair for also introducing resolutions. I don't think we can have too many of these on this subject And it's a very important recognition. And a bipartisan recognition celebrating America's greatest milestones is something that belongs to all of us. And that's the heritage we all have as United States citizens. So thank you, Representative St. Clair. I'm going to ask for a motion to adopt the committee substitute for House Concurrent Resolution 9. object after that motion is made so that my staff can describe some of the changes our offices have worked together on. Addis. How soon fares is back on the record? We only have a few minutes left, so I just wanna be really clear. We had noticed two resolutions today, House Resolution 6 from Representative St. Clair, which we've just had a good overview on The Semi-Quincentennial Resolution. We also have House Concurrent Resolution 9, noticed for today for our first hearing, which is on, the same topic. It is substantively the same resolution, and we have introduced it for substantifully the same reasons. It's an extremely important milestone. The resolution highlights some of the most important reasons why we should reflect on the United States Constitution and the progress that has been made over the course of America's 250-year anniversary. At this time, I'm going to ask for a motion to adopt a committee substitute on House Concurrent Resolution 9, which substantively merges the resolutions from both offices today. Thank you, Madam Chair. I move that the House State Affairs Committee adopt CS I, as our work, or is it L, or's it one? Sorry. Brief at ease. Briefed ease, j- There's a house state affairs is back on the record. One more time vice chair story, sorry about that. Yes, I'm good. With the committee's indulgence, I am just going to say, HCR nine also known as three four dash LS one zero nine one backslash. I as a working document I think you might want to restate the whole motion again since we were at ease for a moment there. Okay I'm glad to do that. Thank you, madam chair I move that the house state affairs committee adopt CS for hcr nine Also known, as 3 4 dash l s one 0 9 1 back slash i as our working documents Thank you. I'm going to object so that our committee aid can walk through the changes on house concurrent resolution 9 Thank You, Madam chair for the records to a relay staff representative Carrick The summary of changes just kind of outlines the various whereas statements that were included in House Resolution 6 that were then merged in house, concurrent resolution 9. I could go through all of the listed whereas statements and their changes if that is the indulgence, if the committee would like me to do that. But Mr. Realy, can you just summarize some of the main additions? We were back on the record. Yes. Thank you, madam chair. I apologize to everybody again for the records to a relay staff representative Carrick Whereas is from representative St. Clair's resolution that have been included into house control resolution number nine Just talk about At emphasis to the timeless principles that were included in the declaration of independence Including the rights to life liberty in pursuit of happiness It discusses the principle of federalism which was, which is obviously a very critical component of the United States structure of government and it's founding 250 years ago. It talks about the importance of decentralized government. And it adds whereas is again encouraging commemorative activities. It also includes both where at, excuse me, resolve statements from House Resolution 6 that encourages educational institutions to enhance civics education. And Madam Chair, those are the very broad strokes. Thank you for that. It's appreciated. And I need to correct myself because it's the anniversary of the Declaration of Independence, not the Constitution, important distinction. um for both resolutions. We do have public testimony noticed today. I'm gonna just quickly open public testimony. Oh, I am so sorry. I was getting ahead of my skis there. I had a head of skies. We actually have not finished adopting the committee substitute, which again both off Both sponsor's office had worked on the changes. I removed my objection. Is there any further objection to adopting the committee substitute as the working document? Seeing and hearing no objection, the House Concurrent Resolution 9 version I has been adopted as a working document. Now we did have public testimony notice, so I am going to open public testimony. or in the room. And just in case there was any confusion, I'll just note that there's also nobody online or, in The Room for House Resolution 6 either. So we're not missing anybody inadvertently. I am going to close public testimony on House Concurrent Resolution 9. And we are setting an amendment deadline for As a reminder, please draft any amendments you may have to version I. I would also encourage coordination with my office and with Representative St. Claire's office. I'd like us to continue working together on any potential changes for the resolution. And at this time, we are going to set the Resolution aside until Thursday. That concludes House State Affairs today. Our next hearing is Thursday, February 5 at 3.15. We only have an hour for that hearing as a reminder, because we are yielding time for the Department of Administration Subcommittee. We will take up House Concurrent Resolution 9 again, as well as, a committee substitute and continued discussion on House Bill 124 on ADA. With nothing else before the committee we are adjourned at 5 10 p.m.