2024-01-24                     House Journal                      Page 1346
HB 289                                                                                                                        
HOUSE BILL NO. 289 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
    "An Act relating to business license fees; and providing for an                                                             
    effective date."                                                                                                            
                                                                                                                                
was read the first time and referred to the Labor & Commerce and                                                                
Finance Committees.                                                                                                             
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1. Fiscal, Dept. of Commerce, Community, & Economic                                                                             
 Development                                                                                                                    
                                                                                                                                

2024-01-24                     House Journal                      Page 1347
The Governor's transmittal letter dated January 22 follows:                                                                     
                                                                                                                                
"Dear Speaker Tilton:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill increasing business license fees.                                                        
The Alaska Business License Act (Act) requires that a person obtain                                                             
and pay for a business license from the Department of Commerce,                                                                 
Community, and Economic Development (DCCED), prior to engaging                                                                  
in business in the State. The Act sets the fees for business licenses and                                                       
for license endorsements that permit a business to sell tobacco                                                                 
products. This bill would increase these statutory fees.                                                                        
                                                                                                                                
The bill would increase the fee for a business license from $50 to $100                                                         
per year. The Act includes an exception for certain sole                                                                        
proprietorships owned by individuals 65 years or older and disabled                                                             
veterans, which sets a lower fee of $25 for these businesses. The bill                                                          
would increase those licenses to $50. Tobacco endorsements would be                                                             
increased from $100 to $200 annually.                                                                                           
                                                                                                                                
The bill would have an effective date of October 1, 2024, to allow                                                              
DCCED time to update its forms and public information in advance of                                                             
license renewals at the start of the upcoming calendar year.                                                                    
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Mike Dunleavy                                                                                                                   
Governor"