Legislature(2025 - 2026)ADAMS 519
04/24/2025 10:00 AM House FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| HB23 | |
| Consideration of Governor's Appointees: Samuel Laffey, State Assessment Review Board | |
| HB30 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 23 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | HB 30 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
April 24, 2025
10:08 a.m.
10:08:50 AM
CALL TO ORDER
Co-Chair Foster called the House Finance Committee meeting
to order at 10:08 a.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Andy Josephson, Co-Chair
Representative Calvin Schrage, Co-Chair
Representative Jeremy Bynum
Representative Alyse Galvin
Representative Sara Hannan
Representative Nellie Unangiq Jimmie
Representative Frank Tomaszewski
MEMBERS ABSENT
Representative Jamie Allard
Representative DeLena Johnson
Representative Will Stapp
ALSO PRESENT
Representative Andy Josephson, Sponsor; Corbin Morrison,
Staff, Representative Ky Holland Staff; Representative Ky
Holland, Sponsor; Hannah Lager, Administrative Services
Director, Department of Commerce, Community and Economic
Development; Brodie Anderson, Staff, Representative Neal
Foster.
PRESENT VIA TELECONFERENCE
Samuel Laffey, Governor's Appointee, State Assessment
Review Board; Jared Reynolds, Director, Center for Economic
Development, University of Alaska, Anchorage; Tom Mayer,
Chief Procurement Officer, Department of Administration.
SUMMARY
HB 23 APPLICABILITY OF HUMAN RIGHTS COMMISSION
CSHB 23(L&C) was REPORTED out of committee with
six "do pass" recommendations and one "no
recommendation" and with one new fiscal impact
note from the Office of the Governor.
HB 30 OFFICE OF ENTREPRENEURSHIP
HB 30 was HEARD and HELD in committee for further
consideration.
CONSIDERATION OF GOVERNOR'S APPOINTEES: SAMUEL LAFFEY,
STATE ASSESSMENT REVIEW BOARD
Co-Chair Foster reviewed the meeting agenda.
HOUSE BILL NO. 23
"An Act relating to the definition of 'employer' for
the purposes of the State Commission for Human
Rights."
10:10:49 AM
Co-Chair Foster noted that the bill had been heard twice in
prior meetings [March 27, 2025, and April 9, 2025]. He
asked the bill sponsor to address the committee.
REPRESENTATIVE ANDY JOSEPHSON, SPONSOR, provided a brief
recap of the legislation. He reported that the bill made
four changes: renaming the commission to the Alaska State
Commission for Civil Rights, requiring that commissioners
may only be removed for just cause, and changing the date
and method of delivery (electronic) for the commission's
annual report to prior to the start of legislative session
and granted the commission's jurisdiction to extend to
employees of Alaska's many nonprofit organizations. He
considered the final change the most important provision in
the bill.
10:12:28 AM
Representative Galvin asked for confirmation that the
commission's name was changed in the legislation. Co-Chair
Josephson answered in the affirmative and restated the name
as the Alaska Commission for Civil Rights.
Co-Chair Schrage MOVED to REPORT CSHB 23(L&C) out of
committee with individual recommendations and the
accompanying fiscal note.
There being NO OBJECTION, CSHB 23(L&C) was REPORTED out of
committee with six "do pass" recommendations and one "no
recommendation" and with one new fiscal impact note from
the Office of the Governor.
Co-Chair Foster noted that Mr. Laffey was trying to call in
from Kenya.
^CONSIDERATION OF GOVERNOR'S APPOINTEES: SAMUEL LAFFEY,
STATE ASSESSMENT REVIEW BOARD
10:14:26 AM
Co-Chair Foster asked Mr. Laffey to introduce himself and
provide details on why he is up for the job.
SAMUEL LAFFEY, GOVERNOR'S APPOINTEE, STATE ASSESSMENT
REVIEW BOARD (via teleconference), introduced himself. [The
phone connection was lost.]
10:15:24 AM
AT EASE
10:15:54 AM
RECONVENED
Co-Chair Foster moved to the next item on the agenda.
HOUSE BILL NO. 30
"An Act establishing the office of entrepreneurship;
relating to new businesses in the state; relating to
reports concerning procurements by agencies; and
relating to initial business license fees for new
businesses in the state."
10:17:36 AM
AT EASE
10:19:11 AM
RECONVENED
CORBIN MORRISON, STAFF, REPRESENTATIVE KY HOLLAND STAFF,
reviewed the sectional analysis (copy on file) with
prepared remarks:
House Bill 30 establishes the O.notdefice of
Entrepreneurship (OOE), a new statewide effort to grow
Alaska's startup ecosystem and drive innovation in
emerging industries. This is about creating the jobs
of the futureright here, for Alaskans.
By investing in entrepreneurs and streamlining support
for new businesses, HB 30 helps remove the barriers
that hold back our homegrown talent. It ensures that
our state's resources are directed where they can have
the greatest impactsupporting those who are building,
inventing, and taking risks to create new
opportunities across Alaska.
This office will also bring much-needed accountability
by producing an annual report on how legislation
affects small businesses. And importantly, it sets a
baseline investment directing 5 percent of the state's
economic development budget toward programs that
support startups and entrepreneurs.
With HB 30, we are saying clearly: Alaska is open for
business, and Alaskans shouldn't have to leave to
pursue opportunity. Whether it's technology, clean
energy, manufacturing, or other high-growth sectors,
this bill helps ensure that innovation startsand
staysright here in our state.
REPRESENTATIVE KY HOLLAND, SPONSOR, explained the bill. He
relayed that the bill was crafted after a national approach
to increasing economic development and opportunity for
those wanting to start a new business, create jobs, etc. He
delineated that 100 percent of new jobs came from
entrepreneurs and new businesses and in Alaska, contributed
to 89 percent of new job growth. He emphasized that new
businesses created continued growth in the Alaskan economy.
Co-Chair Foster noted that Representative Tomaszewski had
joined the meeting.
Representative Holland provided a PowerPoint presentation
titled "House Bill 30: Office of Entrepreneurship" (copy on
file). He began on slide 2 titled "Economic outlook in
Alaska
Slow economic growth
Job loss in key industries
Talent and family outmigration
We cannot rely on our legacy sectors to create the
jobs of the future.
Representative Holland shared that one of the approaches to
entrepreneurship was examining economic growth and
opportunities in the future. He had worked with
entrepreneurs in Alaska for the prior 10 years and helped
start 80 businesses. He was motivated by the relatively
stagnant economic status of the state, out migration, and a
desire to help young people remain in the state by
providing opportunities. He turned to slide 3 titled
Alaska Needs To Diversify And Support Emerging Sectors
Future growth will come from value-added support of
existing economic engines and investment in emerging
sectors and jobs.
Diversification and technology growth aligns with our
CEDS, state and national economic development trends,
and history.
He proceeded to Slide 4 titled "What Is An Emerging Sector
and Why They Matter For Alaska
Small or nascent industries with high growth potential
based on Alaska's competitive advantages. They include
mariculture, aerospace, energy technology, and
agriculture.
New and young businesses create virtually all net job
growth in America Research shows that for every 1
percent increase in the U.S. entrepreneurship rate,
the poverty rate decreases by 2 percent.
New businesses
• grow local GDP
• increase community wealth
• create homegrown jobs
• diversify goods and services
Representative Holland elaborated that HB 30 was based on a
movement called "The Right to Start" operating in 30
states. The movement offered a legislative framework that
recognized entrepreneurship and creating capacity through
private market forces, and the state's role in the process.
In general, economic innovation often originated in four
areas of focus: the university, industry clusters,
community initiatives, or state involvement. He indicated
that Alaska was "struggling" in all four areas of new
innovation. He hoped that through the bill, the state would
become a catalyst for the three other sectors.
10:25:14 AM
Representative Holland moved to slide 5 titled "Alaska's
Comprehensive Economic Development Strategy (CEDS)
Developed between January and July of 2022, the CEDS
is a five-year economic development plan for Alaska,
active from 2022-2027.
.notdef The CEDS outlines several goals for a resilient
and growing Alaska economy, including
.notdef Accelerating growth in emerging sectors
.notdef support for entrepreneurial ecosystem
Representative Holland indicated that in addition to the
emerging sectors, support CEDS included 6 pillars with one
being economic development through innovation and
entrepreneurship in the state's emerging sectors. He
concluded that state policy supported entrepreneurship and
through that support emerging sectors. The bill provided
the framework for the stated policy to diversify and
support future job growth.
Co-Chair Foster noted that the governor's appointee called
in from Kenya. He asked to hear from Mr. Laffey.
HB 30 was HEARD and HELD in committee for further
consideration. [the hearing continued during the current
meeting following consideration of the governor's
appointee.]
10:26:20 AM
Co-Chair Foster asked to hear about Mr. Laffey's
qualifications for the State Assessment Review Board.
Mr. Laffey relayed that he was a licensed Alaska attorney
and worked for the Office of Public Advocacy (OPA) where he
represented indigent Alaskans. He believed that he was
qualified to serve on the board and was very interested in
serving. He discussed his qualifications. He was very
passionate about oil and gas development and finance. He
received a Master of Business Administration (MBA) degree.
His emphasis in law school was on property law. He felt
that he would be an asset to the board based on the
description of the board's duties and having interactions
with its current membership. He noted that there was
currently not an attorney on the board and much of the
board's work evaluated "factual matters" as well as
interpreting state precedent and made decisions on relative
state statutes and case law that applied to the work of the
board. He believed that his background and skill sets would
be an asset to the board.
Co-Chair Foster assumed he did not live in Kenya. He merely
wanted to ensure Mr. Laffey was an Alaska resident. Mr.
Laffey replied that he lived in Anchorage, he was currently
visiting relatives in Kenya. He shared that several years
ago he met his wife in Anchorage who was from Kenya.
10:30:11 AM
Co-Chair Josephson stated that the House Finance Committee
had reviewed the qualifications of Mr. Laffey and
recommended moving the individual's name forward.
There being NO OBJECTION, it was so ordered.
Mr. Laffey thanked the committee for its patience and time
for consideration.
10:31:38 AM
Co-Chair Foster returned to HB 30.
HOUSE BILL NO. 30
"An Act establishing the office of entrepreneurship;
relating to new businesses in the state; relating to
reports concerning procurements by agencies; and
relating to initial business license fees for new
businesses in the state."
10:32:24 AM
Representative Holland advanced to slide 6 titled "HB 30:
Support For Entrepreneurial Ecosystem And Emerging
Sectors
Creates Office of Entrepreneurship in Department of
Commerce, Community and Economic Development (DCCED).
Duties of the Office of Entrepreneurship
Promote entrepreneurship
Assist new business as they navigate interactions with
the state of Alaska
Coordinate and streamline service delivery for new
businesses
Annually review policy changes that impact new
businesses Directs state agency money to support
programs or organizations that help new businesses.
Representative Holland relayed that DCCED had the same
functions in prior years but did not specifically develop
an Office of Entrepreneurship. He explained that the
department had a $2 million per year budget in prior years
for economic development through innovation and
entrepreneurship. He had prior experience working with the
department and staff at the time. He emphasized that the
office was not meant to replace any existing programs that
he listed. The proposed office would promote
entrepreneurship and assess businesses and would be focused
on navigating different functions of the state like
licensing, setting up a corporation, and explaining how to
coordinate and streamline other state services and next
steps. He focused on the fourth point on the slide that
assessed whether the state was creating new pathways to
help new businesses start up. He continued to the final
focus of the bill that was to ask the state to specifically
examine how they could direct some of its funding to
support programs or organizations that helped new
businesses. The five percent carve out was meant to create
the environment and support new businesses.
10:35:09 AM
Representative Holland discussed slide 7 titled "What
changed from v. LS0230/G to H
The Committee Substitute for House Labor & Commerce
yielded these changes:
1. The Office of Entrepreneurship is now required to
actively seek and use volunteers to assist in the
performance of their duties.
2. Enables the department to determine whether
office facilities are necessary to perform
duties.
3.Office of Entrepreneurship enabling statutes
sunset December 2030.
Representative Holland calculated that over 50,000 hours of
volunteer work was done in the area over 10 years. He
observed that there was an energetic group of people
involved in working with startups. The role of the office
would be to lift up and support the volunteer advocacy. He
pointed to the third change and noted that there had been
some concerns regarding the original sunset in the bill.
The sunset was shortened to a period of three years. He
noted his strong support for the sunset date and wanted to
accomplish good work and show that it was valuable in a
shorter time frame.
10:36:47 AM
Representative Holland discussed slide 8 titled "Fiscal
Notes for HB 30
1. Department of Commerce, Community and Economic
Development
$661.7 first-year appropriation requested
$616.7 out-year cost estimates
This cost represents three new positions to
perform the functions of the office
2. Department of Administration
$500 only in first year only
This is the cost to conduct a disparity study to
determine whether new businesses are
underrepresented in statewide contracts
Representative Tomaszewski asked about the disparity study
and what it would entail. Representative Holland answered
that the study asked the question as to what extent Alaska
was spending money to support new businesses less than 5
years old in accessing state contracts and opportunities
for products and services versus the amount spent on
established services. He felt that the amount was too high
and would like to see a simpler study. Representative
Tomaszewski asked if there would be anything in the study
addressing how the state of Alaska was in the way or
hindering entrepreneurship progress in areas like
regulations. Representative Holland answered in the
negative and offered that the intent of the study was to
provide a snapshot of startups access to the state. He
pointed to slide 6 and read "Annually review policy changes
that impact new businesses He explained that it was the
area where the state could evaluate what it was doing for
startups or where it was hindering entrepreneurship, that
would happen on an annual basis.
10:40:44 AM
Representative Holland advanced to slide 9 titled "The
Startup Process (and where OoE will help)":
Ecosystem Building Ideation
Business Modelling - Business Strategy
Business Planning - Startup Financing
Execution - Business Exits
Representative Holland discussed the startup process from
the idea to a viable business. He reiterated that about 89
percent of Alaska's new job growth came from startups. He
communicated that much work went on prior to the business
opening and he stressed that most startups were not
bankable businesses. Businesses that could obtain a bank
loan already had revenue in operation for some time. He
noted that much work went into the business prior to its
execution through programs that helped the entrepreneur
explore ideas and learn how to create a business. He
reported that much of the work of OOE would happen at the
front end of a business' establishment and would help
create business opportunities in the emerging sector. He
addressed slide 10 titled "Alaska: State of
Entrepreneurship" by The University of Alaska Center for
Economic Development (2018)
"Over the last decade, startups in Alaska consistently
added 4,000 to 6,000 jobs to the economy each year.
Firms that are aged five years or younger accounted
for 89% of Alaska's net employment growth in the
private sector."
Co-Chair Josephson asked about Representative Holland's
professional background and what led to his interest in the
topic. Representative Holland answered that he spent 40
years involved in a wide variety of activities in the area
and to help people "create the future they wanted for
themselves." He helped create community associations,
housing development, non-profit corporations, industry
associations, etc. He shared that 10 years prior, he sold
his x-ray manufacturing business in Anchorage he operated
due to his background as a mechanical engineer. He had
accidentally fallen into teaching an entrepreneurship class
at Alaska Pacific University that supported his background
in helping people create their desired future. He used his
background in business and his love of working with people
and community and found an intersection for himself. He had
been volunteering his time over the past 10 years in this
"eco system." He committed to working in Alaska
intersecting his business background and background in
working with people.
10:45:32 AM
Representative Hannan was wondering why the first part of
the bill used the measure of procurement with state offices
as the measure of success for the office. She did not think
that many of the emerging sectors had the goal to obtain
procurement contracts with the state, yet the bill focused
heavily on that metric. She deduced that it would apply to
only a specific set of entrepreneurs. She asked why the
bill focused almost half the bill on the metric of
procurement with the state as a measure of success for the
program. Representative Holland answered that the amount of
language devoted to the topic in the bill did place more
emphasis on that than he hoped the impact of the program
would be. However, he did believe it was an important
provision. He returned to slide 6 and pointed to the duties
of the OOE and read: "Promote entrepreneurship and assist
new business as they navigate interactions with the state
of Alaska?." He believed that it represented entrepreneurs
of many various types. He acknowledged that part of the
bill was dedicated to identifying opportunities to work
with the state. He furthered that the office was not
intended to replace the rest of community entrepreneurial
activities through various established programs. However,
it was intended to open a door to the significant spending
by the state. He indicated that one area of
entrepreneurship was identifying a "steppingstone" to
initial pilot programs or existing state work. He
exemplified Launch Alaska that was focused on providing
pilot programs for energy startups with electrical
utilities and power users. He mentioned Health Tie that
helped identify business opportunities in the healthcare
industry. He felt the OOE would open a door to the public
sector and help entrepreneurs find business opportunities
with the state. He listed a few examples like helping the
Department of Transportation and Public Facilities (DOT)
with ice sensors, or in the area of housing, etc. However,
it was not intended to be the sole purview of the office
that would assist all emerging sectors.
10:50:04 AM
Representative Hannan remarked that the sponsor was not
responsible for the fiscal notes. She noted that the fiscal
note from the Department of Administration (DOA) was $500
thousand and the cost to develop the OOE was $661 thousand.
She wanted to know what businesses were helped and became
successful overall and not who got a contract with the
state as a measure of a successful business. She thought
that most creative entrepreneurs wanted to find a niche,
and it might not be via a state procurement contract. She
relayed that the piece of the bill derailed her because
most entrepreneurs likely did not set out to get a state
contract. Representative Holland agreed with Representative
Hannan's concerns. He noted that the fiscal note for the
report was a one-time expense and was estimated by the
department. He would like to work on tightening up the
report and believed that it was a significant amount. On
the other hand he thought it would be important to figure
out how to create an opportunity for more Alaskan wealth
via Alaskan businesses. He reiterated that he would like to
see the number reduced.
10:53:11 AM
Representative Jimmie asked where the office would be
located and how the OOE would help entrepreneurs in rural
areas like in her district. Representative Holland replied
that he did not specify where the office would be located,
it would be up to DCCED. He elucidated that in terms of the
benefits to rural communities; he hoped the office would
serve as a statewide door to economic opportunities. He
thought the office being housed within DCCED was a good fit
due to the Alaska Regional Development Organizations
(ARDORs) program under the department's umbrella. He
pointed out that the regional ARDORs had their own CEDS
documents, and he assumed there was a CEDS document for
Representative Jimmie's region. He discerned that much of
the spending done through the state was one of the major
economic drivers like through Alaska Energy Authority
(AEA), housing or medical assistance that was spread
through the state and particularly in rural areas. The
office would determine how it was using state money in
every part of the state, and he hoped it opened up the door
across the state in rural areas to help support local
businesses.
10:55:48 AM
Representative Jimmie noted that the bill's data was from a
2018 report. She asked if there was a post-Covid updated
report. Representative Holland answered that an invited
testifier could elaborate on the topic. He highlighted
slide 11 titled "Expected Outcomes from HB 30
New Businesses And Jobs
Reduced Costs For New Businesses
Improve State Integration With Startup Ecosystem
Economic Opportunity For The Next Generation Of
Alaskans
Representative Holland concluded that every state task
force report like the Energy Security Task Force Report,
Fisheries Report, etc. all talked about the need for
business development and creating new business
opportunities.
Representative Bynum referenced the statement on slide 4:
"research showed that for every 1 percent increase in the
U.S. entrepreneurship rate, the poverty rate decreased by 2
percent." He asked for the research source. He referenced
the sectional and read: "AS 44.33.857 requires that state
agencies must spend 5 percent of the total economic
development budget each year to support programs or
organizations that help new businesses in Alaska [Section
3]." He asked for more information on the idea behind it
and how it would reach the scope of all agencies and the
expected impact. He wondered how the bill would help
revitalize legacy industries like logging that had shrunk
dramatically in the state and new logging industries were
struggling.
11:00:06 AM
Representative Holland responded that he would follow up
with the source related to poverty. He would follow up on
the 5 percent question. He noted that the legislation was
more prescriptive on how 5 percent was distributed across
the state and in local jurisdictions. The challenge with
transition industries was that the bill was not attempting
economic redesign of the state's economy. The legislation
was more aligned to help Alaskans establish businesses and
providing new businesses and services supporting the
existing economy. He thought that new businesses and
services might support established industries like oil and
gas. He deemed that the issue of transitioning industries
was a different question and challenge than what the bill
intended to do.
11:02:15 AM
Representative Bynum related that other established
industries were changing and struggling, and he hoped the
bill could help revitalize existing industries.
Representative Holland believed Representative Bynum's
issue was a very important point and touched the heart of a
separate bill, HB 34 [Alaska Innovation Council] that was
scheduled to be heard in House Finance later in the day. He
indicated that it was focused on macro-economic issues.
House Bill 30 was a bill focused on micro-economics.
Co-Chair Foster confirmed that the discussion on both bills
would continue in the afternoon.
Representative Holland noted that the invited testifier
spoke to HB 34 as well.
Co-Chair Foster asked whether the testifier would like to
speak to both bills concurrently.
JARED REYNOLDS, DIRECTOR, CENTER FOR ECONOMIC DEVELOPMENT,
UNIVERSITY OF ALASKA, ANCHORAGE (via teleconference),
answered that he was flexible, but had separate data points
for each bill.
Co-Chair Foster chose to keep the testimony separate.
Mr. Reynolds shared that the Center for Economic
Development (CED) worked across the state to provide local
communities, economic development entities, and
entrepreneurs access to resources necessary to succeed. The
center conducted research and worked directly with
entrepreneurs and communities providing a unique
perspective on entrepreneurship in the state. The
relationship provided data and helped the center understand
the success and challenges that existed. The center was
updating it's "Alaska's State of Entrepreneurship Report"
that was first published in 2018. He shared some updated
analysis. He delineated that Alaska was a state full of
entrepreneurs and ranked eighteenth in the country in
startup density and started new businesses at a higher rate
than the national average at 7.6 startups per one thousand
residents versus 7.4 nationally. Over the last decade,
startups created 41 thousand net new jobs in Alaska. He
pointed out that without the new jobs; Alaska's economy
would have lost jobs with many middle aged firms struggling
to grow. He highlighted some areas of concern. The state
nd
ranked 42 in "scaling," the number of jobs per business
th
establishments (3.3 jobs per business) and ranked 49 for
high growth firm density. The discrepancy was especially
prevalent outside of Anchorage. He identified the issues of
expansion, business stagnation, supply chain, capital
issues, and market access that forced some businesses to
leave the state. Alaskan entrepreneurs faced barriers to
achieving growth. In addition, Alaskan entrepreneurs were
aging and nearly one-fifth were over the age of 65 and two-
fifths were over 55, which was well ahead of the national
average. He offered some recommendations to address the
challenges. He mentioned a "more coordinated ecosystem"
that addressed "some of the silos between the ARDORs and
entrepreneurship organizations and university programs. He
suggested creating opportunities to connect rural and urban
talent and help rural talent connect with statewide
resources. He commented that strengthening the "pipeline"
to assist emerging entrepreneurs between the ages of 25 to
44 that was currently underserved and underrepresented in
the state. Finally, he suggested leveraging data to guide
policy such as the State of Entrepreneurship Report.
11:09:27 AM
Co-Chair Foster held off questions until later in the
afternoon meeting. He requested a review of the three
fiscal notes.
TOM MAYER, CHIEF PROCUREMENT OFFICER, DEPARTMENT OF
ADMINISTRATION (via teleconference), relayed that he did
not have access to the fiscal note. He explained that the
Department of Administration (DOA) submitted the fiscal
note because Section 1 subsection (6) of HB 30 asked the
department to report on "?statistically underrepresented
demographic segments and geographic areas of the state
He emphasized that without a definition to assist with a
disparity study it was difficult to know exactly what the
provision was attempting to determine. He believed that the
report should be written by DCCED mainly because the
licensing was under its purview.
Representative Holland noted that the bill had been changed
from a prior committee, and the original bill modified the
biennial procurement report to an annual report, which was
reverted to biennial in the new CS. He did not believe they
had received an updated fiscal note. Mr. Mayer responded
that the department did not submit an updated fiscal note
and whether it was annual or biennial did not affect the
costs. The fiscal note reflected the cost specifically for
the disparity study and was the typical cost of around $500
thousand based on the Department of Transportation and
Public Facilities and other agencies disparity studies. He
noted that the cost was a best "guess."
11:13:13 AM
Co-Chair Foster cited the published fiscal impact note
(FN1(DOA) with a cost of $500 thousand in Services in FY
2026 allocated to the Office of Procurement and Property
Management and noted the fund source was Undesignated
General Funds (UGF).
Representative Hannan asked why he recommended that DCCED
write the report rather than DOA. Mr. Mayer answered that
his office did not manage business licensing and only
reported on all the procurement that happened in all
agencies across the state every two years. Representative
Hannan asked if his office could produce a procurement
report that would assist DCCED gather information
intersecting with businesses under licensing. Mr. Mayer
replied that his office reported as directed under
AS.36.35.40, a biannual procurement report on all
procurement activities that were undertaken by all
executive branch agencies. He delineated that the bill
mandated a report on business licenses and ages for
underrepresented demographic segments and geographic areas.
The information would be new for the report, and he could
begin to collect the data, but the department's perspective
was that the report including the disparity study should be
done through DCCED, who dealt with business licensing.
Representative Hannan noted she would take up her following
questions offline with the sponsor.
11:16:00 AM
HANNAH LAGER, ADMINISTRATIVE SERVICES DIRECTOR, DEPARTMENT
OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, reviewed
the one new fiscal impact note, dated April 4, 2025,
allocated to the Office of Entrepreneurship. She explained
that the cost included $661 thousand to support the ongoing
operations of the office in FY 26 and in subsequent fiscal
years. The fiscal note included One full-time Division
Director (range 27) at $222.7 thousand, $139.8 thousand for
one full-time Program Coordinator 2 (range 20), and $124.7
thousand for one full-time Research Analyst 3 (range 18).
The positions would be located in Juneau with the caveat
that it depended on where DCCED could find the most
qualified staff. She noted there were additional typical
costs associated with the office for travel, services, and
commodities.
Co-Chair Foster noted there were two notes in packets from
DCCED and asked if she would speak to the one allocated to
licensing. Ms. Lager noted that the other note was from a
previous bill version and was no longer applicable.
Co-Chair Josephson reported that there were previous
positions in the department and asked what happened to
them. Ms. Lager answered that previously DCCED had a
Division of Economic Development that operated for many
years and ran several programs such as; the tourism
marketing program costing $15 million to $17 million per
year and also ran the former Tok Visitors Office. The
position count specifically related to the economic
development and entrepreneurship work was roughly 11 in
2016 and due to significant budget cuts, the number was
reduced to five positions by 2019. The department attempted
to determine how best to run the program with fewer staff
and over time the positions had been reduced to the current
1.5 positions located in the Commissioner's Office. Co-
Chair Josephson asked if there was any function of the
positions in the 2016 timeframe that was similar to
entrepreneurship development. Ms. Lager responded that the
work varied in any given year. She recalled a project
focused on converting logging plants into smaller diameter
timber plants. She noted that some positions were called
evelopment Specialists Type A" that focused on small
business work but in any given year the work was based on
economic activities happening in the state.
Co-Chair Foster asked to hear from Brodie Anderson related
to the other fiscal note
BRODIE ANDERSON, STAFF, REPRESENTATIVE NEAL FOSTER,
reviewed the fiscal impact note from DCCED, allocated to
Corporations, Business and Professional Licensing
(FN3(CED). He explained that the fiscal note was referred
to the committee, but the fiscal note should have been
eliminated in the prior committee. The fiscal note was no
longer applicable to the bill.
Co-Chair Foster added that the fiscal note was not merely
zeroed out but was eliminated. Mr. Anderson answered in the
affirmative.
Representative Bynum thanked Mr. Anderson.
Co-Chair Foster thanked Representative Holland.
HB 30 was HEARD and HELD in committee for further
consideration.
Co-Chair Foster reviewed the schedule for the afternoon.
ADJOURNMENT
11:22:51 AM
The meeting was adjourned at 11:22 a.m.
| Document Name | Date/Time | Subjects |
|---|