02/10/2025 03:15 PM House LABOR & COMMERCE
| Audio | Topic | 
|---|---|
| Start | |
| Presentation(s): Housing in Alaska, Opportunities and Challenges | |
| HB80 | |
| HB34 | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HB 80 | TELECONFERENCED | |
| *+ | HB 34 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                       February 10, 2025                                                                                        
                           3:15 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Zack Fields, Co-Chair                                                                                            
Representative Carolyn Hall, Co-Chair                                                                                           
Representative Ashley Carrick                                                                                                   
Representative Robyn Niayuq Burke                                                                                               
Representative Dan Saddler                                                                                                      
Representative Julie Coulombe                                                                                                   
Representative David Nelson                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION(S):  HOUSING IN ALASKA, OPPORTUNITIES AND                                                                          
CHALLENGES                                                                                                                      
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 80                                                                                                               
"An Act relating to minimum  standards for residential buildings;                                                               
relating to  construction contractors and  residential contractor                                                               
endorsements; establishing the  Alaska State Residential Building                                                               
Safety Council; and providing for an effective date."                                                                           
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 34                                                                                                               
"An Act establishing the Alaska Innovation Council; and relating                                                                
to financial disclosures for members of the Alaska Innovation                                                                   
Council."                                                                                                                       
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  80                                                                                                                  
SHORT TITLE: RESIDENTIAL BUILDING CODE                                                                                          
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
01/31/25       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/31/25       (H)       L&C                                                                                                    
02/03/25       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/03/25       (H)       <Bill Hearing Canceled>                                                                                
02/10/25       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB  34                                                                                                                  
SHORT TITLE: AK INNOVATION COUNCIL                                                                                              
SPONSOR(s): HOLLAND                                                                                                             
                                                                                                                                
01/22/25       (H)       PREFILE RELEASED 1/10/25                                                                               
01/22/25       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/22/25       (H)       L&C, FIN                                                                                               
01/29/25       (H)       L&C AT 3:15 PM BARNES 124                                                                              
01/29/25       (H)       <Bill Hearing Canceled>                                                                                
02/10/25       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
MELANIE BAHNKE, Board Member                                                                                                    
Housing Alaskans:  A Public-Private Partnership                                                                                 
Nome, Alaska                                                                                                                    
POSITION STATEMENT:  Co-offered the presentation on Housing in                                                                
Alaska, Opportunities and Challenges.                                                                                           
                                                                                                                                
MIKE ROBBINS, Executive Director                                                                                                
Anchorage Community Development Authority                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Co-offered  the presentation on  Housing in                                                             
Alaska, Opportunities and Challenges  and presented a PowerPoint,                                                               
titled   "Creating   an   Environment  For   Attainable   Housing                                                               
Development."                                                                                                                   
                                                                                                                                
SHAUN DEBENHAM, Real Estate Developer                                                                                           
Debenham LLC                                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Co-offered the presentation on Housing in                                                                
Alaska, Opportunities and Challenges.                                                                                           
                                                                                                                                
GRIFFIN HAGLE-FORSTER, Executive Director                                                                                       
Alaska Association of Housing Authorities                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Co-offered the presentation on Housing in                                                                
Alaska, Opportunities and Challenges.                                                                                           
                                                                                                                                
MINDY O'NEALL, Executive Director                                                                                               
Cold Climate Housing Research Center                                                                                            
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:   Co-offered  the presentation on  Housing in                                                             
Alaska, Challenges  and Opportunities  via PowerPoint  [hard copy                                                               
included   in   committee   file],   titled   "Housing   in   AK:                                                               
Opportunities & Challenges"; gave invited testimony on HB 80.                                                                   
                                                                                                                                
TRISTAN WALSH, Staff                                                                                                            
Representative Carolyn Hall                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Presented  HB  80 on  behalf  of the  bill                                                             
sponsor, House  Labor and Commerce  Standing Committee,  on which                                                               
Representative Hall serves as co-chair.                                                                                         
                                                                                                                                
JEFF TWAIT, Builder                                                                                                             
Cornerstone Custom Homes & Design                                                                                               
Kenai, Alaska                                                                                                                   
POSITION  STATEMENT:   As  an  invited  testifier, testified  and                                                             
answered questions during the hearing on HB 80.                                                                                 
                                                                                                                                
JIMMY ORD, Director of Research & Rural Development                                                                             
Alaska Housing Finance Corporation                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Gave invited  testimony during  the hearing                                                             
on HB 80.                                                                                                                       
                                                                                                                                
REPRESENTATIVE KY HOLLAND                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   As  prime sponsor  gave presentation  on HB
34.                                                                                                                             
                                                                                                                                
JACQUELINE SUMMERS, Executive Director                                                                                          
Health TIE                                                                                                                      
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:    As an  invited  testifier,  testified  in                                                             
support of HB 34.                                                                                                               
                                                                                                                                
LINDA JANES, Humanity Director                                                                                                  
gBETA                                                                                                                           
gener8tor                                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Gave invited testimony in support of HB 34.                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:15:47 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  ZACK  FIELDS  called   the  House  Labor  and  Commerce                                                             
Standing   Committee    meeting   to    order   at    3:15   p.m.                                                               
Representatives Nelson, Coulombe,  Saddler, Burke, Carrick, Hall,                                                               
and Fields were present at the call to order.                                                                                   
                                                                                                                                
^PRESENTATION(S):     Housing   in   Alaska,  Opportunities   and                                                               
Challenges                                                                                                                      
     PRESENTATION(S):  Housing in Alaska, Opportunities and                                                                 
                           Challenges                                                                                       
                                                                                                                              
3:16:16 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS announced that the  first order of business would                                                               
be  a  presentation  on  Housing  in  Alaska,  Opportunities  and                                                               
Challenges.                                                                                                                     
                                                                                                                                
3:16:47 PM                                                                                                                    
                                                                                                                                
MELANIE BAHNKE, Board Member,  Housing Alaskans: A Public-Private                                                               
Partnership  (HAPPP), began  by explaining  that HAPPP  formed in                                                               
2022,  making  Alaska the  forty-eighth  state  to have  such  an                                                               
organization.   She  stated  that HAPPP  takes  both private  and                                                               
public funding to  leverage funds and provide  housing in Alaskan                                                               
communities.   She thanked the legislature  for its appropriation                                                               
in fiscal year 2023 (FY 23)  of $1 million.  Ms. Bahnke explained                                                               
that those funds  were used to launch HAPPP's  first grant cycle,                                                               
with  a $150,000  top-off grant.    Within two  weeks, she  said,                                                               
HAPPP received over 35 applications,  ultimately resulting in the                                                               
construction of over 80 homes  and apartments in Juneau, Nikolai,                                                               
Nome,  Sitka,  Soldotna, and  Wasilla.    She stated  that  HAPPP                                                               
estimated a need for 27,580  new and rehabilitated homes over the                                                               
next 10 years to keep up with housing needs in Alaska.                                                                          
                                                                                                                                
MS.  BAHNKE  asserted  that  housing  should  be  thought  of  as                                                               
"necessary  community infrastructure"  such as  roads or  schools                                                               
due to  the significant impact  on economics and wellbeing.   She                                                               
reported  HAPPP's research  revealed that  there are  hundreds of                                                               
housing  units that  remain stalled  due to  major challenges  of                                                               
accumulating  "capital   stacks"  -  typically  from   dozens  of                                                               
sources,  all  with  differing  timelines,  processes,  reporting                                                               
schedules, and restrictions.   She stated that it  can take years                                                               
to get a  project underway and years further to  completion.  She                                                               
explained that HAPPP connects private  and public funding sources                                                               
to get projects across the finish line quickly.                                                                                 
                                                                                                                                
MS. BAHNKE  concluded that HAPPP  needs more [access  to] patient                                                               
capital  and   incentive  loan  rates  to   assist  more  housing                                                               
developers, private or  public.  She explained  that other states                                                               
accomplish  this  with  housing  and land  trusts,  green  banks,                                                               
established during a prior legislature,  and working with private                                                               
financial sectors  to improve financial  products.   She asserted                                                               
that  local  governments and  tribal  entities  know the  housing                                                               
needs of the community better  than statewide or federal agencies                                                               
reviewing "disparate applications."   She concluded that planning                                                               
for  community infrastructure  should occur  at the  local level,                                                               
and  that HAPPP's  focus would  be on  assisting with  supply for                                                               
housing.                                                                                                                        
                                                                                                                                
3:21:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER asked  about  the  funding sources  other                                                               
than the State of Alaska for HAPPP.                                                                                             
                                                                                                                                
3:22:01 PM                                                                                                                    
                                                                                                                                
MS. BAHNKE  explained that  the HAPPP  board consists  of members                                                               
from both  non-profit and  private industries.   She  stated that                                                               
she is the  President of Kawerak.  She stated  that HAPPP acts as                                                               
a vehicle  to receive private  and public funding.   She reported                                                               
that  Wells  Fargo  recently  committed  funds  to  HAPPP.    She                                                               
explained that  HAPPP's first priority  with initial  funding was                                                               
to  provide  top-off grants  for  "shovel-ready  projects."   She                                                               
noted that  the existence of  public-private partnerships  is not                                                               
new  and  reported that  47  other  states  have these  types  of                                                               
entities.                                                                                                                       
                                                                                                                                
MS.   BAHNKE,  in   response  to   a   follow-up  question   from                                                               
Representative Saddler, directed him to housingalaskans.com.                                                                    
                                                                                                                                
3:23:39 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  HALL   asked  about  plans  for   private  fundraisers.                                                               
Further,  she asked  what kind  of  public funds  HAPPP might  be                                                               
seeking, local, state, or federal.                                                                                              
                                                                                                                                
3:24:10 PM                                                                                                                    
                                                                                                                                
MS. BAHNKE responded  that HAPPP is always open to  funding.  She                                                               
reported that the legislature provided  HAPPP with its initial $1                                                               
million  in funding.    She stated  that,  until HAPPP's  funding                                                               
source  is large  enough  to support  whole  projects, its  focus                                                               
would  be primarily  top-off projects  i.e. getting  construction                                                               
past the finish line.                                                                                                           
                                                                                                                                
3:25:23 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HALL  offered her understanding that  HAPPP helped bring                                                               
80 homes online and thanked Ms. Bahnke for her work.                                                                            
                                                                                                                                
MS. BAHNKE responded that in  her hometown, Nome, Alaska, she saw                                                               
firsthand  the positive  impact of  HAPPP, as  she witnessed  the                                                               
opening  of  HomePlate  Nome,  LLC  -  a  Housing  First  project                                                               
designed to provide homes for the previously unhoused.                                                                          
                                                                                                                                
3:26:43 PM                                                                                                                    
                                                                                                                                
MIKE   ROBBINS,    Executive   Director,    Anchorage   Community                                                               
Development  Authority  (ACDA),  presented a  PowerPoint,  titled                                                               
"Creating  an Environment  For  Attainable Housing  Development."                                                               
He started  by thanking the  committee for its support  of Senate                                                               
Bill 179  from the Thirty-Third Alaska  State Legislature, which,                                                               
he  stated, has  allowed communities  across the  state to  offer                                                               
economic development assistance for housing.   He argued that the                                                               
housing crisis  in Alaska  has become an  economic crisis.   From                                                               
the second slide  of the PowerPoint, he reported  that 47 percent                                                               
of employers surveyed  in Anchorage felt that  the housing market                                                               
is  impacting  their  worker  shortage   or  ability  to  attract                                                               
workers.  Additionally, he reported  that 15 percent of employers                                                               
had  job  candidates decline  to  relocate  to Anchorage  due  to                                                               
housing-related issues.   Finally, [only] 8  percent of employees                                                               
reported  high satisfaction  with  housing  options available  in                                                               
Anchorage.  Mr.  Robbins stated that ACDA is  focused on creating                                                               
an  environment for  attainable housing  development.   He stated                                                               
that,  in  focusing on  "affordable  housing,"  many have  missed                                                               
"attainable housing."                                                                                                           
                                                                                                                                
MR.  ROBBINS  stated  that  a  house  is  typically  the  largest                                                               
investment that one  will make in their life.   He reported, from                                                               
the fourth  slide, that in 2022,  the average price of  a home in                                                               
Anchorage  was $456,000.   He  emphasized that  to afford  such a                                                               
home,  one  would  have  to  make over  $120,000  annually.    He                                                               
asserted that attainable  housing in not available  in the Alaska                                                               
marketplace.                                                                                                                    
                                                                                                                                
MR. ROBBINS,  referencing the sixth  slide, concluded  that there                                                               
are many  ways the legislature  could help.   He stated  that the                                                               
legislature  could  not control  the  cost  of goods,  labor,  or                                                               
financing; however,  he argued, it could  control the environment                                                               
created for laborers.   He stated one of the  largest expenses in                                                               
the  construction of  a new  home is  the infrastructure  - sewer                                                               
system, water  tank, sidewalk, et  cetera.  He proposed  that the                                                               
legislature  consider  an  infrastructure  bank,  and  additional                                                               
property  taxes could  be levied.   Finally,  Mr. Robbins  stated                                                               
that  there are  currently dueling  opinions  on the  use of  tax                                                               
increment financing (TIF).   He reported that every  state in the                                                               
country except  for Alaska  uses TIF financing.   He  stated that                                                               
TIF  financing  is commonly  used  for  multi-family housing  and                                                               
homeownership in  other states.   He echoed an  earlier presenter                                                               
stating that access to affordable  capital is a large barrier for                                                               
builders.  Mr.  Robbins suggested the issuance of  bonds to bring                                                               
down  the  cost  to  the builders  in  creating  more  affordable                                                               
housing.   He concluded by  offering his belief  that legislators                                                               
do not  need to appropriate  additional funds; rather,  they need                                                               
to aid  in creating an  environment for builders and  laborers to                                                               
thrive.                                                                                                                         
                                                                                                                                
3:31:33 PM                                                                                                                    
                                                                                                                                
CO-CHAIR   FIELDS   asked   how   ACDA   looks   at   development                                                               
opportunities and  how ACDA  might use  funds appropriated  to an                                                               
infrastructure bank to complete projects.                                                                                       
                                                                                                                                
3:32:03 PM                                                                                                                    
                                                                                                                                
MR. ROBBINS provided an anecdote  with a company called Debenham,                                                               
LLC.   He explained  that ACDA purchased  land, cleaned  the lot,                                                               
and  provided  the  environmental  work.   He  stated  that  ACDA                                                               
provided  the  land at  a  reasonable  lease.   Additionally,  he                                                               
stated that  ACDA provided more  capital to aid the  developer in                                                               
securing  commercial  financing from  a  bank.   He  stated  that                                                               
providing for  and ensuring property is  "ready to go" is  one of                                                               
many ways that ACDA can help in the development of projects.                                                                    
                                                                                                                                
3:33:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK asked  about attainable housing thresholds                                                               
[on  the fifth  slide  of  the PowerPoint].    She asked  whether                                                               
rising utility  costs were  factored in  for numbers  provided on                                                               
the columns,  titled "Maximum Monthly Housing  Costs" or "Maximum                                                               
Cost of Attainable Home[s]."                                                                                                    
                                                                                                                                
3:33:54 PM                                                                                                                    
                                                                                                                                
MR. ROBBINS  responded that the  chart [on the fifth  slide] does                                                               
include  some  allowance  for utilities.    He  reiterated  that,                                                               
currently, the  Alaska Multiple Listing Service  (AK MLS) reports                                                               
only 53 homes available in Anchorage that cost under $400,000.                                                                  
                                                                                                                                
3:35:02 PM                                                                                                                    
                                                                                                                                
SHAUN DEBENHAM, Real Estate Developer,  Debenham LLC, stated that                                                               
he  specializes   in  multi-family,  market-rate  housing.     He                                                               
reported  that Debenham  LLC recently  finished a  public/private                                                               
partnership  with  ACDA,  in  which  the  company  completed  the                                                               
construction  of 48  units in  downtown Anchorage.   He  reported                                                               
that, within 3 months, every  unit was occupied, and he continues                                                               
to report  a high occupancy.   He  stated that Debenham  LLC will                                                               
construct 107  town homes in  Anchorage in  the coming year.   He                                                               
commented   that   single-family   housing  is   typically   very                                                               
expensive, and  he characterized his developments  as "affordable                                                               
luxury."                                                                                                                        
                                                                                                                                
MR. DEBENHAM  stated that, in spite  of high demand for  the type                                                               
of  housing  that he  provides,  there  are significant  barriers                                                               
slowing  down  the  process.     He  emphasized  two  significant                                                               
barriers:    location [it  is  expensive  to do  construction  in                                                               
Alaska]  and "red  tape" [bureaucracy].   He  concluded that  the                                                               
public sector  could make a  large difference in  the development                                                               
of  housing  projects, by  providing  both  finances and  patient                                                               
capital  or low-interest  bridge  funding for  developments.   He                                                               
noted that  financing at  the state level  is typically  done for                                                               
commercial, not residential, housing.                                                                                           
                                                                                                                                
3:38:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER asked Mr.  Debenham to provide examples of                                                               
recent developments in Anchorage, Alaska.                                                                                       
                                                                                                                                
3:38:28 PM                                                                                                                    
                                                                                                                                
MR.  DEBENHAM  responded that  Block  96,  on  8th Avenue  and  K                                                               
Street, is  most recent development  completed by his  company in                                                               
Anchorage,  Alaska.   Additionally, he  stated that  Debenham LLC                                                               
built a  27-unit complex in southwest  Anchorage called Northwood                                                               
Apartments.    He  provided  the  websites  associated  with  the                                                               
residences.                                                                                                                     
                                                                                                                                
MR.  DEBENHAM,  in response  to  a  question from  Representative                                                               
Saddler on  whether HB 80  would help or hinder  the construction                                                               
of  affordable housing,  posed another  question:   Will [HB  80]                                                               
increase or  decrease the cost of  housing?  He noted  that he is                                                               
typically  against  anything  that  might increase  the  cost  of                                                               
housing.   Notwithstanding, he noted  that Anchorage  already has                                                               
very strict building and land-use  codes, and he anticipated that                                                               
HB 80  would likely not be  as prescriptive and difficult  as the                                                               
existing codes in Anchorage.                                                                                                    
                                                                                                                                
MR DEBENHAM,  in response to Co-Chair  Fields' question regarding                                                               
the  location of  the 107-town  home development,  responded that                                                               
the  development  is  adjacent  to the  residences  on  Northwood                                                               
Street, off of Raspberry Road in Anchorage, Alaska.                                                                             
                                                                                                                                
3:41:20 PM                                                                                                                    
                                                                                                                                
GRIFFIN HAGLE-FORSTER, Executive  Director, Alaska Association of                                                               
Housing Authorities  (AAHA), explained that AAHA  is a membership                                                               
organization comprised  of the  14 regional  housing authorities.                                                               
He  stated that  AAHA  also  has a  strong  partnership with  the                                                               
Alaska  Housing  Finance  Corporation  (AHFC).   He  stated  that                                                               
housing  in Alaska,  particularly  rural Alaska,  is too  scarce,                                                               
expensive, crowded, and in need of  repair.  He asserted that the                                                               
Build  America,  Buy  America  (BABA)  Act,  a  federal  law,  is                                                               
exacerbating the aforementioned issues in  housing in Alaska.  He                                                               
stated that the regional housing  authorities in Alaska have been                                                               
developing and managing affordable housing  for over 50 years and                                                               
AAHA was  founded in 1994.   He highlighted that AAHA  focuses on                                                               
collaboration,  not competition,  and fosters  an environment  of                                                               
shared  resources,  best   practices,  technical  assistance  and                                                               
training amongst its members.                                                                                                   
                                                                                                                                
MR. HAGLE-FORSTER  explained that  most of  the housing  stock in                                                               
the state was  developed in the '70s and '80s,  either due to the                                                               
oil boom  in urban centers, or  infusions of money from  the U.S.                                                               
Department of Housing  and Urban Development.   He asserted that,                                                               
beginning in  the late '90s  going into 2022,  federal investment                                                               
in affordable housing did not keep  up with inflation.  He stated                                                               
that  from 2000-2023,  the purchasing  power of  regional housing                                                               
authorities  was  down  30  percent   due  to  "stagnant  federal                                                               
funding."    He reported  that  consumer  prices in  Alaska  have                                                               
increased by 20  percent since 2020.  He  added that construction                                                               
prices in  the United States  have increased  by 30 percent.   He                                                               
asserted that Alaska  is behind in population growth  due to lack                                                               
of investment in housing and  the natural decline of construction                                                               
materials in the last two decades.   He noted that, since federal                                                               
reform in the  late '90s, regional housing  authorities have been                                                               
able  to   exercise  self-determination  and  local   control  in                                                               
developing homes suited for Alaska's varying climates.                                                                          
                                                                                                                                
MR.  HAGLE-FORSTER circled  back  to BABA,  which, he  explained,                                                               
mandated that all construction materials  - iron, steel, lumber -                                                               
be American-made or American-sourced.   He argued that, while the                                                               
goals of BABA  are allottable, the pace of  the implementation of                                                               
such has been  too fast.  He stated that  the manufacturing bases                                                               
in America could  not reach the demand in  the short-term without                                                               
a  price increase  of, he  estimated, around  15-30 percent.   He                                                               
reiterated   that,  with   the  cost   of  construction   already                                                               
significant,  increasing the  cost  of  materials would  decrease                                                               
available and affordable housing in Alaska.                                                                                     
                                                                                                                                
MR.  HAGLE-FORSTER  stated that  the  state  funding is  used  by                                                               
housing authorities  to provide for programs  like weatherization                                                               
and senior  and rural housing  grants.  He asserted  that housing                                                               
and energy  are closely tied to  each other.  He  argued that the                                                               
value of energy efficiency should  be regarded similarly to other                                                               
fuel sources.  Further, he  maintained that high-performing homes                                                               
allow for the postponement of  transporting liquified natural gas                                                               
(LNG) into Alaska.                                                                                                              
                                                                                                                                
3:46:57 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FIELDS  stated  that   historically,  energy  has  been                                                               
separated from housing.   He noted that rising  heat and electric                                                               
costs significantly  increase the cost  of housing.  He  asked if                                                               
it was cheaper to incorporate  higher standards for insulation at                                                               
the start  of construction or  to weatherize the  residence after                                                               
construction.                                                                                                                   
                                                                                                                                
MR. HAGLE-FORSTER responded  that it is largely  dependent on the                                                               
cost of  fuel, whose cost  is expected to  increase significantly                                                               
in the  coming years.   In 2012,  after the conclusion  of AHFC's                                                               
Home Energy  Rebate Program [as  a part of  AHFC's Weatherization                                                               
Program],  there was  a 28-percent  average reduction  in housing                                                               
costs.   Further, he anecdotally  commented that every  couple of                                                               
weatherized  houses  represents  one  tank of  LNG  that  is  not                                                               
shipped into the state.                                                                                                         
                                                                                                                                
CO-CHAIR FIELDS asked  how the cost of utilities  compares to the                                                               
cost of mortgages.                                                                                                              
                                                                                                                                
MR. HAGLE-FORSTER  believed that data  was available in  the 2018                                                               
Housing  Assessment  and  stated  he  would  follow-up  with  the                                                               
information.                                                                                                                    
                                                                                                                                
3:49:21 PM                                                                                                                    
                                                                                                                                
MR.  HAGLE-FORSTER,  in   response  to  Representative  Saddler's                                                               
question  on the  duties of  housing authorities,  explained that                                                               
housing authorities  were chartered  under Alaska statues  in the                                                               
early  '70s  as  public  corporations.   He  explained  that  the                                                               
legislature  created them  primarily to  serve needs  of villages                                                               
and  communities  around  Alaska  where the  private  market  was                                                               
insufficient.  He  stated that AAHA members  operate and maintain                                                               
housing  programs  around  the state,  including  rehabilitation,                                                               
weatherization,  and  modernization of  unites.    He noted  that                                                               
there is variation among the  regional housing authorities in the                                                               
type of aid  that is available.  He stated  that he would follow-                                                               
up with more information for the committee.                                                                                     
                                                                                                                                
REPRESENTATIVE  SADDLER   further  queried  the  nature   of  the                                                               
relationship between AHFC and AAHA.                                                                                             
                                                                                                                                
MR.  HAGLE-FORSTER   explained  that  the   supplemental  housing                                                               
authority grant  is used by  regional housing authorities  on 1:4                                                               
ratio, meaning  they must secure  U.S. Department of  Housing and                                                               
Urban Development  (HUD) funding to qualify  for the Supplemental                                                               
Housing Development Grant Program (SHDG)  from AHFC.  Further, he                                                               
explained  that funds  from  the  supplemental housing  authority                                                               
grant are  not used  for overhead costs;  rather, funds  are used                                                               
for   energy  efficient   building   techniques,  or   electrical                                                               
infrastructure, making AHFC a critical funding partner.                                                                         
                                                                                                                                
3:52:52 PM                                                                                                                    
                                                                                                                                
MINDY O'NEALL, Executive Director,  Cold Climate Housing Research                                                               
Center  (CCHRC),   as  an   invited  testifier,   co-offered  the                                                               
presentation on  Housing in Alaska, Challenges  and Opportunities                                                               
via  PowerPoint [hard  copy included  in committee  file], titled                                                               
"Housing in  AK:  Opportunities  & Challenges."  She  stated that                                                               
CCHRC  is a  non-profit located  in Fairbanks,  Alaska, that  has                                                               
been active for  approximately 25 years.  As shown  on the second                                                               
and third slides,  she described the makeup  of the organization.                                                               
Drawing attention to  the fourth slide, she stated  that the work                                                               
of CCHRC  focuses on  three main areas:   education,  policy, and                                                               
research,  with  the  shared  goal  of  promoting  solutions  for                                                               
healthy, resilient homes  in cold climates.  To  the fifth slide,                                                               
she stated that  approximately 60 percent of the  work that CCHRC                                                               
does   is   education,   providing   educational   opportunities,                                                               
including  an educational  hotline  and  public lectures  series.                                                               
Additionally, as shown  on the seventh slide,  the center created                                                               
an  owner-builder  masterclass  in  Fairbanks,  Alaska,  in  fall                                                               
[2024].   Pointing  to the  eighth  slide, she  noted that  CCHRC                                                               
developed  a 25-module  online platform  called the  Cold Climate                                                               
Weatherization  Installer Badges,  which allows  people to  enter                                                               
the industry  and be placed  with contractors upon  completion of                                                               
badges.   She  reported that  CCHRC has  13,000 followers  on its                                                               
YouTube [channel],  where CCHRC  posts videos ranging  from short                                                               
tutorials to hour-long lectures.                                                                                                
                                                                                                                                
MS.  O'NEALL  stated that  CCHRC  has  many partners  around  the                                                               
state,   including  AAHA,   HAPPP,  the   Alaska  Native   Tribal                                                               
Consortium (ANTC),  and many other regional  housing authorities,                                                               
and  with those  partners,  drafts various  manuals and  programs                                                               
that establish  standardized methods of  building.  On  the sixth                                                               
slide, Ms.  O'Neall reported that  60 percent of  CCHRC's current                                                               
funding comes  from grants.  She  stated that CCHRC is  a partner                                                               
with AHFC and recipients of annual dividends.                                                                                   
                                                                                                                                
MS. O'NEALL  gave an  overview of key  research areas  for CCHRC,                                                               
found  on the  eleventh slide,  which read  as follows  [original                                                               
punctuation provided, with some format changes]:                                                                                
                                                                                                                                
     Investment Challenges for Afforadable [sic] Housing                                                                        
                                                                                                                                
      Supply Chain Tracker, Best Practices for Building in                                                                      
     Rural AK                                                                                                                   
                                                                                                                                
      Manufacturing and Distribution of local, lightweight                                                                      
     materials                                                                                                                  
                                                                                                                                
     Design buildings to enable deconstruction, reassembly                                                                      
     and reuse                                                                                                                  
                                                                                                                                
      Build Houses to withstand stronger and more frequent                                                                      
     weather events                                                                                                             
                                                                                                                                
      Involve occupants' needs and profiles in the design                                                                       
     and operation                                                                                                              
                                                                                                                                
MS.  O'NEALL,  referring  to  the  fourteenth  slide,  cited  the                                                               
history of housing  in Alaska, echoing a prior  speaker in noting                                                               
that Alaska  experienced a housing  boom shortly after  World War                                                               
II (WWII) and  into the 1970s, particularly in urban  areas.  She                                                               
stated that AAHA  was established in the 1970s,  and, when Alaska                                                               
experienced major  building failures in  the 1990s, the  State of                                                               
Alaska  incorporated AHFC's  age  of efficiency  standards.   She                                                               
stated that  the Alaska State  Home Building  Association (ASHBA)                                                               
established  CCHRC in  1999.   She  reported that,  in 2016,  the                                                               
first rural  village in Alaska  relocated due to  climate change.                                                               
In  the  same   year,  30  other  rural   villages  were  labeled                                                               
"imminently threatened."  A 2018  housing assessment conducted by                                                               
AHFC found the following [original punctuation provided]:                                                                       
                                                                                                                                
     Overcrowding                                                                                                             
      More than 1/2 of rural homes are overcrowded, twice                                                                       
     the national average                                                                                                       
                                                                                                                                
     Energy Inefficiency                                                                                                      
    Approximately   14,600   housing   units   are   energy                                                                     
     inefficient, burdening residents with high costs.                                                                          
                                                                                                                                
     High Housing Costs                                                                                                       
     Nearly 79,000 households spend more than 30 percent on                                                                     
     their income on costs related to housing;                                                                                  
                                                                                                                                
     Housing Construction Needed                                                                                              
      Broadly, the current rate of construction in housing                                                                      
      is insufficient to keep pace with Alaska's projected                                                                      
     population                                                                                                                 
                                                                                                                                
MS.  O'NEALL, on  the sixteenth  and seventeenth  slides, further                                                               
reported that  nearly half of  Cook Inlet's 2023 gas  demand went                                                               
toward heating  buildings and  the region  cannot fully  meet the                                                               
gas  demand forecast  beyond 2026  with current  proved reserves.                                                               
She asserted that it is critical  to regard housing as a solution                                                               
to the energy crisis.                                                                                                           
                                                                                                                                
MS.  O'NEALL  gave an  overview  of  the health/quality  of  life                                                               
effects  of  inadequate/nonexistent  housing on  the  eighteenth,                                                               
through twenty-first slides.  Some  of the outcomes include  poor                                                               
indoor air quality  due to lack of adequate  ventilation; lack of                                                               
in-home  piped  water  in  20  percent  of  rural  Alaska  homes;                                                               
increased mental health  issues; and an aging  population that is                                                               
not supported  by residential infrastructure.   She reported that                                                               
bringing  the entire  Yukon  Kuskokwim Delta  to  full water  and                                                               
sewer service is estimated to save  $5.6 million a year in health                                                               
care cost  savings.   Additionally, she  reported that  the elder                                                               
population in Alaska is expected  to double by 2030, representing                                                               
nearly  one-fifth of  the  total population.    She stated  that,                                                               
without mechanisms for senior  living, fall-related injuries cost                                                               
$135  million  in   2016.    She  argued   that  housing  reduces                                                               
recidivism in  prisons and  the State of  Alaska could  save over                                                               
$40,000  per person  per year  by designating  housing for  those                                                               
coming  out  of the  prison  system.    Finally, she  showed  the                                                               
twenty-second  slide, which  listed  other challenges  associated                                                               
with  housing   in  Alaska,  as  follows   [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
                 Labor & Workforce Development                                                                                  
                   Logistics & Transportation                                                                                   
                 Poor Quality Housing to Start                                                                                  
                        Aging Population                                                                                        
                  Expensive Development Costs                                                                                   
                          Overcrowding                                                                                          
                        Extreme Climates                                                                                        
                             Health                                                                                             
           Higher Frequency of Extreme Weather Events                                                                           
                      High Costs of Energy                                                                                      
                     Short Building Season                                                                                      
                         Affordability                                                                                          
                       Workforce Housing                                                                                        
                                                                                                                                
MS.  O'NEALL,  referring  to the  twenty-fourth  through  twenty-                                                               
seventh slides,  concluded by discussing three  opportunities for                                                               
housing  development:    prioritizing construction,  using  local                                                               
materials, and developing the workforce.                                                                                        
                                                                                                                                
4:04:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK  queried the  impact of  short-term rental                                                               
markets on  housing availability in  Alaska.  Further,  she asked                                                               
if  there  has  been  an   increase  in  long-term  renters  over                                                               
homeowners in Alaska due to housing costs/market conditions.                                                                    
                                                                                                                                
4:05:22 PM                                                                                                                    
                                                                                                                                
MR. HAGLE-FORSTER  stated his experience is  filtered through his                                                               
primary residence in Utqiagvik for the last 10 years.                                                                           
                                                                                                                                
REPRESENTATIVE CARRICK  offered her belief that  the availability                                                               
of  housing  is  affected  by the  short-term  rental  market  in                                                               
Alaska.                                                                                                                         
                                                                                                                                
4:06:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  queried  CCHRC's   range  and  scope  of                                                               
research and policy.  Additionally,  he asked Ms. O'Neall whether                                                               
she was an elected official to a body.                                                                                          
                                                                                                                                
MS.  O'NEALL  responded that  she  is  an assemblymember  in  the                                                               
Fairbanks  North   Star  Borough   (FNSB).     Additionally,  she                                                               
responded that  CCHRC's research  focus has  shifted in  the past                                                               
five years  from technical  research to  the economic  and social                                                               
benefits of  housing.  In  response to a follow-up  question from                                                               
Representative  Saddler,   Ms.  O'Neall  stated   that,  although                                                               
CCHRC's  headquarters  is  located  in  Fairbanks,  the  work  is                                                               
applicable statewide.                                                                                                           
                                                                                                                                
4:07:51 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS  asked how to protect  homeowners from increasing                                                               
natural gas cost burdens.                                                                                                       
                                                                                                                                
4:08:12 PM                                                                                                                    
                                                                                                                                
MR. HAGLE-FORSTER  described a  "heat pump  belt" from  Kodiak to                                                               
Ketchikan,  whereas  the  energy  is  relatively  affordable  and                                                               
clean.   He  commented that  on  the Railbelt  and going  further                                                               
north, the cost  of electricity is six times  the equivalent cost                                                               
of  gas.   He explained  that natural  gas costs  are, currently,                                                               
highly  location dependent.    He offered  his  belief that  heat                                                               
pumps  will become  more worthwhile  in the  next five  years, as                                                               
prices will likely converge.                                                                                                    
                                                                                                                                
4:09:37 PM                                                                                                                    
                                                                                                                                
MS. O'NEALL added  that the cold climate heat  pumps are evolving                                                               
fast.  She  offered her belief that more cold  climate heat pumps                                                               
will be  used in the future  in the regions far  north of Alaska.                                                               
She suggested investment into the  workforce development of those                                                               
that install heat pumps.                                                                                                        
                                                                                                                                
4:10:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COULOMBE asked about CCHRC's total annual budget.                                                                
                                                                                                                                
MS. O'NEALL  responded that CCCHRC's  budget is about  $2 million                                                               
with 60  percent of the  budget funded through state  and federal                                                               
grants.   She  stated that  the majority  of the  center's grants                                                               
come  from AHFC.    She further  stated  that approximately  [30]                                                               
percent of CCHRC's budget is driven by revenue.                                                                                 
                                                                                                                                
REPRESENTATIVE COULOMBE asked whether  the funding over the years                                                               
has been stable, or fluctuating.                                                                                                
                                                                                                                                
MS. O'NEALL offered  her belief that grants are  not stable funds                                                               
by  nature.   She  noted that,  in every  year  prior, CCHRC  had                                                               
successfully advocated for  funding, but that had yet  to come to                                                               
fruition in the current fiscal year.                                                                                            
                                                                                                                                
4:11:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NELSON  referred  to   the  sixth  slide  of  the                                                               
PowerPoint, titled "Housing in AK:   Opportunities & Challenges,"                                                               
and asked about the sources of income.                                                                                          
                                                                                                                                
MS. O'NEALL  responded that CCHRC  owns a facility that  it rents                                                               
out  to the  National Renewable  Energy Laboratory  (NREL), which                                                               
constitutes the  majority of CCHRC's  income.   Additionally, she                                                               
explained that CCHRC has a consulting firm.                                                                                     
                                                                                                                                
4:12:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NELSON  asked whether the  educational initiatives                                                               
were well received.                                                                                                             
                                                                                                                                
MS.  O'NEALL responded  that  as  the price  of  energy goes  up,                                                               
homeowners are looking  into ways that they can save  money.  She                                                               
stated that CCHRC's online lecture  series typically has about 30                                                               
participants and has drawn attention from outside of Alaska.                                                                    
                                                                                                                                
4:13:47 PM                                                                                                                    
                                                                                                                                
MS.  O'NEALL,  in  response to  a  question  from  Representative                                                               
Saddler  regarding the  facility that  CCHRC rents  out to  NREL,                                                               
stated  that the  building  was constructed  in  1999 and  funded                                                               
through an Economic Development  Administration (EDA) grant and a                                                               
United  States  Department  of Agriculture  (USDA)  grant.    She                                                               
stated  that the  land  is  owned by  the  University [of  Alaska                                                               
Fairbanks], which stipulates  the usage of the  facility shall be                                                               
in  alignment with  CCHRC's mission.   She  stated that  NREL has                                                               
contributed   significantly   to   cold  climate   research   and                                                               
innovation in partnership with CCHRC.                                                                                           
                                                                                                                                
CO-CHAIR FIELDS thanked the invited testifiers.                                                                                 
                                                                                                                                
                HB 80-RESIDENTIAL BUILDING CODE                                                                             
                                                                                                                                
4:15:10 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS announced  that the next order  of business would                                                               
be HOUSE BILL  NO. 80, "An Act relating to  minimum standards for                                                               
residential buildings;  relating to construction  contractors and                                                               
residential  contractor  endorsements;  establishing  the  Alaska                                                               
State Residential  Building Safety Council; and  providing for an                                                               
effective date."                                                                                                                
                                                                                                                                
4:16:00 PM                                                                                                                    
                                                                                                                                
TRISTAN WALSH,  Staff, Representative Carolyn Hall,  Alaska State                                                               
Legislature,  presented HB  80  on behalf  of  the bill  sponsor,                                                               
House   Labor  and   Commerce   Standing   Committee,  on   which                                                               
Representative Hall  serves as co-chair.   He began  a PowerPoint                                                               
[hard  copy  included in  the  committee  file], titled  "HB  80:                                                               
State Residential  Building Code."   He stated that the  State of                                                               
Alaska has  local jurisdictions with  building codes.   He stated                                                               
that,  outside of  local  jurisdictions,  the International  Code                                                               
Council (ICC)  acts as  the governing body  for regulations.   He                                                               
reported  that  the  Alaska Housing  Finance  Corporation  (AHFC)                                                               
adopted  ICC's International  Building Code  of 2018  and further                                                               
reported that AHFC is in  the process of considering the adoption                                                               
of  ICC's International  Building Code  of 2024.   He  stated the                                                               
[ICC] code is updated every three years.                                                                                        
                                                                                                                                
MR.  WALSH stated  that building  codes create  minimum standards                                                               
with  the  primary  goal  being  the  safety  of  the  occupants.                                                               
According  to  studies done  by  ICC  and the  Federal  Emergency                                                               
Management  Agency (FEMA),  65 percent  of counties,  cities, and                                                               
towns across the  United States have not  adopted modern building                                                               
codes.   He reported that  50 percent of construction  done post-                                                               
2000  follows the  standard set  by  the ICC.   Additionally,  he                                                               
reported  that   30  percent  of   new  construction   occurs  in                                                               
communities with no codes or codes  that have not been updated in                                                               
at least 20 years.  He stated  that AHFC has adopted both the ICC                                                               
and the  International Residential Code (IRC)  with modifications                                                               
to accommodate for "local context."                                                                                             
                                                                                                                                
MR.  WALSH gave  an  overview  of the  benefits  of the  proposed                                                               
legislation.   He reported  that studies  done by  the [National]                                                               
Institute  of Building  Sciences (NIBS)  in 2019  found that  the                                                               
adoption of IRC codes were  cost-saving, with $11 saved for every                                                               
$1  invested.    Additionally,  these studies  found  that  cost-                                                               
savings  extended  to retrofits  and  use  of federal  mitigation                                                               
grants.  He  stated that, as communities face  challenges such as                                                               
flooding, hurricane  surges, high  wind events,  earthquakes, and                                                               
fires related  to climate  change, the  adoption of  modern codes                                                               
increases  the  resiliency  of  structures  and  creates  a  more                                                               
durable  housing stock  for Alaska.    Additionally, he  asserted                                                               
that  building to  a higher  code would  save money  in terms  of                                                               
state/federal emergency  appropriations in  times of crisis.   He                                                               
cited  a graph  on  slide 6,  displaying how  much  the State  of                                                               
Alaska has invested  in retrofits, and he noted that  there is $4                                                               
saved for  every $1  invested in retrofits.   Finally,  Mr. Walsh                                                               
cited a study  conducted by the U.S. Department  of Energy across                                                               
seven states that found the  adoption of modern codes resulted in                                                               
"significant savings."                                                                                                          
                                                                                                                                
MR. WALSH, referencing slide 8,  outlined consumer protections of                                                               
the  proposed  legislation,  which   read  as  follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
          Requires residential contractors to test and show                                                                     
         expertise in state building code for ongoing licensing                                                                 
         in residential contracting.                                                                                            
          Exempts owner-builds and recreational cabins.                                                                         
          Creates protections for consumers by ensuring                                                                         
         compliance by residential constructors with a uniform                                                                  
         code outside of local jurisdictions.                                                                                   
MR. WALSH,  in conclusion, talked about  the relationship between                                                               
HB 80  and AHFC.   He reiterated that  AHFC has adopted  the 2018                                                               
ICC Standards  and is  considering the adoption  of the  2024 ICC                                                               
Standards.  He  noted that financiers typically  look at building                                                               
codes in determination  of loan applications.  He  stated that HB
80  would authorize  AHFC to  enforce regulations.   Finally,  he                                                               
stated that  HB 80 would  establish the Alaska  State Residential                                                               
Building  Safety Council  with the  purpose of  advising AHFC  on                                                               
regulations through public feedback on the proposed changes.                                                                    
                                                                                                                                
4:22:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  clarified that this is  the first hearing                                                               
on  HB  80  and  the   committee  had  previously  heard  invited                                                               
testimony on housing, but not on building codes.                                                                                
                                                                                                                                
CO-CHAIR FIELDS  stated that proposed legislation  was the result                                                               
of  a  request from  the  Alaska  State Homebuilding  Association                                                               
(ASHBA).                                                                                                                        
                                                                                                                                
4:22:57 PM                                                                                                                    
                                                                                                                                
JEFF  TWAIT, Builder,  Cornerstone  Custom Homes  & Design,  gave                                                               
invited testimony  and answered  questions during the  hearing on                                                               
HB 80.   He stated that he  is a builder in Kenai,  Alaska, and a                                                               
member of the Alaska State  Home Building Association.  He stated                                                               
that ASHBA has been attempting to  involve the State of Alaska in                                                               
residential building codes for about  two decades.  Initially, he                                                               
explained,  the  system  was voluntary,  with  paid  inspections.                                                               
After  that,  the  statewide building  code  was  constructed  to                                                               
include everyone,  homeowners and  builders, and was  intended to                                                               
serve  as  the  code  for   every  residential  home  in  Alaska.                                                               
Finally, the scope  of the building code was  narrowed, to target                                                               
just   residential   contractors    with   continuing   education                                                               
requirements such  that they  would be  required to  meet minimum                                                               
standards.                                                                                                                      
                                                                                                                                
MR.  TWAIT  asserted  that  residential  codes  exist  for  life,                                                               
safety, health, and  sustainability.  He provided  an anecdote on                                                               
smoke  detectors and  egress windows,  emphasizing that  there is                                                               
potential for death due to not building to a minimum code.                                                                      
                                                                                                                                
MR.  TWAIT  further  stated  that  it  is  difficult  to  totally                                                               
quantify the increased  cost of building to code as  it is highly                                                               
dependent on  how far one  deviates from  the building code.   He                                                               
maintained  that, although  it may  be  cheaper up  front not  to                                                               
build to  code, in the  long-term, the payback  is insurmountable                                                               
with regard  to sustainability, maintenance, heating  costs, life                                                               
safety issues, et cetera.  He  asserted that ASHBA should do more                                                               
consumer outreach  and education to  aid in raising  the standard                                                               
for building.  He stated that he is in support of HB 80.                                                                        
                                                                                                                                
4:27:59 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS  stated that home insurance  markets are changing                                                               
rapidly  and there  are  insurers refusing  to  insure homes  not                                                               
built to  minimum standards.   He noted that some  weather events                                                               
in Alaska  include wildfires  and high wind  events.   He further                                                               
asked  Mr. Twait  how building  to minimum  standards might  help                                                               
with insurance coverage.                                                                                                        
                                                                                                                                
MR. TWAIT  commented that licensed  residential builders  are not                                                               
building to code due to  affordability, as consumers are not able                                                               
to  afford  it.    To  address the  issue  of  affordability,  he                                                               
suggested an  inclusion of a  disclosure statement  with detailed                                                               
code deficiencies as a possible amendment to the legislation.                                                                   
                                                                                                                                
4:29:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COULOMBE  reiterated  that  one  of  the  biggest                                                               
barriers to  construction is  red tape.   She offered  her belief                                                               
that  HB 80  would  increase  red tape  and  cost for  [licensed]                                                               
builders.   She asked whether the  extension of a bond  could fix                                                               
the  problem of  "bad  actors"  in the  building  industry.   She                                                               
queried whether HB  80 would help increase  available housing and                                                               
pondered  on the  impacts of  the proposed  legislation in  rural                                                               
Alaska.                                                                                                                         
                                                                                                                                
MR.  TWAIT  responded that  the  proposed  legislation would  not                                                               
require  additional  permits;  rather, all  licensed  contractors                                                               
with continuing education  credits would be required  to build to                                                               
a certain  minimum standard.   He  provided an  anecdote, stating                                                               
that, currently,  a licensed builder could  legally build outside                                                               
of  city  limits  without  a   minimum  standard.    Further,  he                                                               
continued  that, were  an  earthquake to  destroy  a house  built                                                               
outside  of local  jurisdictions,  the homeowners  would have  no                                                               
legal standing against  the licensed contractor.   He stated that                                                               
extending  a bond  could help;  however,  he opined  that may  be                                                               
harder to implement than a residential statewide building code.                                                                 
                                                                                                                                
4:32:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BURKE commented that  a statewide residential code                                                               
would provide  necessary structure.   She noted  that there  is a                                                               
lack of  resources and emergency  services in rural Alaska.   She                                                               
asserted that  fewer codes  put more  residential units  and more                                                               
residents at risk.  She offered her appreciation for HB 80.                                                                     
                                                                                                                                
4:33:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COULOMBE  asked  why  local  governments  do  not                                                               
create their own building standards,  and offered her belief that                                                               
adopting standards would  raise the costs.  She  noted that there                                                               
are municipalities with existing building codes.                                                                                
                                                                                                                                
CO-CHAIR FIELDS offered his belief  that the codes proposed by HB
80 are  not as strict as  those of the Municipality  of Anchorage                                                               
(MOA).                                                                                                                          
                                                                                                                                
4:34:32 PM                                                                                                                    
                                                                                                                                
MR.  WALSH stated  that HB  80, as  currently drafted,  would not                                                               
preclude local jurisdictions from adopting another standard.                                                                    
                                                                                                                                
4:34:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COULOMBE  clarified  that,   were  HB  80  to  be                                                               
implemented in  a community that  doesn't have a local  code, not                                                               
in a  community that already  has one, that  particular community                                                               
would not  have a  lot of  flexibility in  the adoption  of local                                                               
codes.                                                                                                                          
                                                                                                                                
4:35:22 PM                                                                                                                    
                                                                                                                                
MR.  TWAIT responded  that  a community  could  adopt a  stricter                                                               
code.  If  the Kenai Peninsula Borough decided to  adopt the 2021                                                               
ICC Standards,  it could  amend certain  stipulations out  of the                                                               
code; however, once the standard  is set, licensed builders could                                                               
not build to less than the adopted standards.                                                                                   
                                                                                                                                
MR. TWAIT further stated that  typically ASHBA is a right-leaning                                                               
organization  and prefers  limited government,  which underscores                                                               
the  gravity of  the  issue.   He emphasized  that  the State  of                                                               
Idaho,  a  state  that is  more  conservative  leaning,  recently                                                               
adopted  a statewide  building  code.   He  reiterated that  only                                                               
licensed builders  would be subject  to the  proposed legislation                                                               
under HB 80, not owner builders.                                                                                                
                                                                                                                                
4:37:51 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS asked Mr. Twait  to speak to specific examples of                                                               
extreme weather  in Alaska  and that houses  built to  a standard                                                               
are less  likely to  need repair or  "fall apart"  during extreme                                                               
weather events.                                                                                                                 
                                                                                                                                
MR.  TWAIT responded  that, from  the foundation  up, there  is a                                                               
pathway of  connections built into  a residence.  He  stated that                                                               
there  is a  vast  array  of climates  and  conditions in  Alaska                                                               
identified in the codebook, such  as seismic events, extreme cold                                                               
and darkness, and high wind events.   Further, he stated that the                                                               
codebook  has  outlined   methodologies  for  addressing  region-                                                               
specific weather events.                                                                                                        
                                                                                                                                
4:39:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK  asked if  all construction  projects, new                                                               
and existing, would be subject to the proposed legislation.                                                                     
                                                                                                                                
4:39:44 PM                                                                                                                    
                                                                                                                                
MR. WALSH  offered his belief that  HB 80 would apply  to all new                                                               
construction going  forward.  He  repeated that AHFC  had already                                                               
implemented the ICC's International Building  Code of 2018 and is                                                               
considering the implementation of the ICC's 2024 code.                                                                          
                                                                                                                                
4:40:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CARRICK  echoed Representative  Burke's  comments                                                               
about the  importance of a building  code in rural areas  for the                                                               
protection  of  the residents.    Further,  she asked  about  the                                                               
barriers to the adoption of local codes.                                                                                        
                                                                                                                                
4:41:00 PM                                                                                                                    
                                                                                                                                
MR. TWAIT reported  that Kenai, Soldotna, and  Homer have adopted                                                               
local  building codes,  which represent  approximately two-thirds                                                               
of  the   population  on  the   Kenai  Peninsula  Borough.     He                                                               
highlighted the importance of education  in the adoption of local                                                               
codes, as  there are residents that  view the adoption of  a code                                                               
as intrusive governance, not as a measure of ensuring safety.                                                                   
                                                                                                                                
REPRESENTATIVE  CARRICK  queried  whether  a  statewide  standard                                                               
would actually  be easier  than local  codes in  every community.                                                               
She  noted  that most  [licensed]  contractors  work in  multiple                                                               
communities.                                                                                                                    
                                                                                                                                
MR. TWAIT  explained that  the State Fire  Marshal has  adopted a                                                               
statewide  building code  for commercial  buildings.   He offered                                                               
his  belief that  it would  not  be a  "big stretch"  to adopt  a                                                               
statewide    building    code    for    residential    buildings.                                                               
Additionally,  he  noted that  local  communities  could adopt  a                                                               
stricter code than HB 80.                                                                                                       
                                                                                                                                
4:42:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER clarified that if  a small town or village                                                               
had to  follow a statewide  building code  but wanted to  adopt a                                                               
local building  code, the  code could not  be "less  strict" than                                                               
the statewide  building code.   Further,  he asked  whether there                                                               
were exemptions  to adherence to the  proposed statewide building                                                               
code.                                                                                                                           
                                                                                                                                
MR. TWAIT deferred to AHFC.                                                                                                     
                                                                                                                                
4:43:38 PM                                                                                                                    
                                                                                                                                
JIMMY  ORD,  Director of  Research  &  Rural Development,  Alaska                                                               
Housing Finance  Corporation, as  an invited  testifier, answered                                                               
questions during  the hearing on HB  80.  He responded  that AHFC                                                               
has  adopted  a  statewide  building  code  [ICC's  International                                                               
Building Code  of 2018]  with some  "Alaska-specific" amendments.                                                               
He offered his understanding that, under  Section 9 of HB 80, the                                                               
statewide  building   code  would  be  the   ICC's  International                                                               
Building Code of 2018 that AHFC has already adopted.                                                                            
                                                                                                                                
4:44:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER clarified  that a  village or  town could                                                               
have its  own code,  but it  must still  adhere to  the statewide                                                               
code.                                                                                                                           
                                                                                                                                
MR. TWAIT confirmed that was his understanding.                                                                                 
                                                                                                                                
REPRESENTATIVE  SADDLER, looking  at slide  7 of  the PowerPoint,                                                               
titled "HB  80:   State Residential  Building Code,"  queried the                                                               
commensurate estimate of costs of  implementing new technology or                                                               
standards.  He quoted the bullet  point, stating that there is an                                                               
estimated "5-7 percent  efficiency gained by the  adoption of new                                                               
technology or standards."                                                                                                       
                                                                                                                                
MR.  WALSH stated  that he  would  follow-up with  Representative                                                               
Saddler.                                                                                                                        
                                                                                                                                
4:45:35 PM                                                                                                                    
                                                                                                                                
MINDY O'NEALL, Executive Director,  Cold Climate Housing Research                                                               
Center (CCHRC), gave  invited testimony during the  hearing on HB
80.  She began by stating,  in [2018], a 7.0 magnitude earthquake                                                               
struck Anchorage, Alaska.  She  reported that, within the MOA, 40                                                               
buildings  suffered significant  structural  failure  due to  the                                                               
earthquake.   She stated that  of the 40 buildings  that suffered                                                               
structural  failure, 95  percent (38  of the  40 buildings)  were                                                               
located in areas without [residential] code enforcement.                                                                        
                                                                                                                                
MS. O'NEALL stated  that CCHRC is in support of  the enactment of                                                               
a   statewide    building   code   with    "sensible,   compliant                                                               
alternatives" to "account for regional  differences."  She stated                                                               
that weatherization programs have saved  an average of 28 percent                                                               
on  energy bills  for  residents  in Alaska.    With the  stunted                                                               
projections  of  natural  gas availability  in  Cook  Inlet,  Ms.                                                               
O'Neall asserted, prioritizing  energy efficiency reduces heating                                                               
loss.   She noted that in  Fairbanks, heating loss leads  to poor                                                               
air quality and  poor health conditions.  In  rural Alaska, where                                                               
diesel  is  barged into  communities,  communities  are paying  a                                                               
"premium price" to stay warm.                                                                                                   
                                                                                                                                
MS.   O'NEALL  asserted   that  the   adoption  of   a  statewide                                                               
residential  code would  increase  safety  standards and  protect                                                               
homeowners.     She  maintained  that  a   statewide  code  would                                                               
establish a  standard, so  that, regardless  of region,  town, or                                                               
village,  the "basics  are  the  same."   She  stated that  local                                                               
jurisdictions without  statewide standards create a  patchwork of                                                               
codes,  such  as  the  State  of  Missouri,  which  is  currently                                                               
instituting  a statewide  building  code to  simplify and  reduce                                                               
barriers of different codes per jurisdiction.                                                                                   
                                                                                                                                
MS. O'NEALL stated there are  proven techniques readily available                                                               
to  apply region-specific  codes  to avoid  increasing costs  and                                                               
burden  of construction.   She  offered a  few examples,  such as                                                               
optional  exemptions  for  communities  with  small  populations,                                                               
using performance-based codes  over prescriptive-based codes, and                                                               
allowing   a  longer   timeframe   for   compliance  from   local                                                               
jurisdictions.   She reported that  CCHRC is a good  resource for                                                               
best practices  that meet  environmental conditions  and climates                                                               
that vary  widely across  Alaska.  She  stated the  existing AHFC                                                               
"Alaska-specific"  amendments  were  written  with  the  goal  of                                                               
ensuring  sustainable  and durable  homes.    She argued  that  a                                                               
statewide building code would not  create barriers to residential                                                               
construction, rural or urban.   She echoed other speakers, saying                                                               
that  HB  80 would  not  affect  anyone  who  is not  a  licensed                                                               
contractor.   She  concluded  that swift  and  certain action  is                                                               
necessary to meet the [housing] needs of Alaska residents.                                                                      
                                                                                                                                
4:49:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER commented  that  HB 80  would  be a  far-                                                               
reaching  change  to housing  and  construction  in Alaska.    He                                                               
stated his desire  to hear more testimony  regarding the proposed                                                               
legislation.                                                                                                                    
                                                                                                                                
CO-CHAIR  FIELDS   stated  his   intention  to  hear   from  more                                                               
homebuilders.                                                                                                                   
                                                                                                                                
4:51:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COULOMBE  stressed  the  importance  of  weighing                                                               
public  safety   issues  against  increased  housing   costs  and                                                               
regulatory burden.   She maintained  that Anchorage is  a perfect                                                               
example  [of the  increased regulatory  burden].   She  cautioned                                                               
that the  proposed legislation could increase  both housing costs                                                               
and regulatory burden.                                                                                                          
                                                                                                                                
CO-CHAIR  FIELDS  stated  the  committee  would  like  additional                                                               
follow-up on the  cost gap between meeting a  minimum standard as                                                               
proposed under  HB 80 and  current costs for  building throughout                                                               
Alaska.                                                                                                                         
                                                                                                                                
CO-CHAIR FIELDS announced that HB 80 was held over.                                                                             
                                                                                                                                
                  HB 34-AK INNOVATION COUNCIL                                                                               
                                                                                                                                
[Contains discussion of HB 30.]                                                                                                 
                                                                                                                                
4:52:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS announced that the  final order of business would                                                               
be HOUSE BILL NO. 34,  "An Act establishing the Alaska Innovation                                                               
Council;  and relating  to financial  disclosures for  members of                                                               
the Alaska Innovation Council."                                                                                                 
                                                                                                                                
4:54:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KY HOLLAND,  Alaska State  Legislature, as  prime                                                               
sponsor, presented  HB 34.  He  shared that he has  been involved                                                               
in  the  Alaska  entrepreneurial  and  innovation  ecosystem  for                                                               
approximately 10 years.  He  stated that innovation is the center                                                               
of  the economy  in the  United States.   He  said that  the U.S.                                                               
economy has grown  two-thirds since World War II,  largely due to                                                               
innovation  and  the evolution  of  technology.   He  stated  the                                                               
opportunity  for innovation  has resulted  in the  development of                                                               
new businesses.  He cited  the creation of General Communications                                                               
Incorporated (GCI) as an example of entrepreneurial innovation.                                                                 
                                                                                                                                
REPRESENTATIVE HOLLAND  asserted that  the opportunity  in Alaska                                                               
is  in  diversifying the  economy  and  investing in  high-growth                                                               
emerging  sectors, such  as mariculture,  seafood technologies  &                                                               
logistics,  et cetera.    He explained  that  Alaska published  a                                                               
Comprehensive Economic  Development Strategy  (CEDS) in  2022 and                                                               
highlighted  goals   including:    cultivating   growth  sectors,                                                               
supporting  an  entrepreneurial  ecosystem, building  &  updating                                                               
foundations, developing Alaska's  workforce, building a resilient                                                               
economy,  and   strengthening  Alaska's  economic  engine.     He                                                               
emphasized that 89 percent of net  job creation in Alaska over 10                                                               
years is generated from businesses  that are less than five years                                                               
old.    He  argued  that Alaska's  economy  has  been  relatively                                                               
stagnant  for  about  15  years,   stating  that  the  number  of                                                               
companies  has  been  "relatively  flat"  and  that  the  working                                                               
population has decreased.                                                                                                       
                                                                                                                                
REPRESENTATIVE  HOLLAND  referred  to a  PowerPoint  presentation                                                               
[hard  copy  included  in  committee   file],  to  highlight  the                                                               
proposed provisions  of HB 34.   He  drew attention to  the fifth                                                               
slide, which read as follows [original punctuation provided]:                                                                   
                                                                                                                                
       Creates a 19-member Alaska Innovation Council with                                                                       
      representatives from government, industry, academia,                                                                      
     labor, and investment sectors.                                                                                             
                                                                                                                                
    Develops    an    annual    Innovation    &    Economic                                                                     
     Competitiveness Plan for the Governor and Legislature.                                                                     
                                                                                                                                
     Establishes an Innovation Index to benchmark Alaska's                                                                      
     progress against national metrics.                                                                                         
                                                                                                                                
REPRESENTATIVE HOLLAND  stated that  HB 34 would  be tied  to the                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED)  for  the  purpose  of   developing  new  businesses  and                                                               
allowing them  to thrive.   He  referenced the  Joint Legislative                                                               
Seafood  Task Force,  the [2024]  Sustainable Energy  Task Force,                                                               
and the  Mariculture Task Force  - all  of which identify  a need                                                               
for innovation and growth acceleration of new businesses.                                                                       
                                                                                                                                
REPRESENTATIVE HOLLAND shared that he  drew inspiration for HB 34                                                               
from Calgary  and Alberta, Canada, which  utilized an "innovation                                                               
council type of structure."   He explained that Calgary's economy                                                               
was  heavily reliant  on oil,  gas, and  mining approximately  15                                                               
years ago.   He  stated that Calgary,  upon the  realization that                                                               
there  was  little  growth  in  oil,  gas,  and  mining,  brought                                                               
together a  group of people  with the  aim of creating  1,000 new                                                               
technology  startups by  2030.   He  maintained  that Calgary  is                                                               
still  supporting their  legacy economies  [oil, gas,  mining] in                                                               
addition  to developing  data science,  energy technologies,  and                                                               
healthcare   technology.     He  further   referenced  innovation                                                               
councils established in Utah and Washington.                                                                                    
                                                                                                                                
REPRESENTATIVE HOLLAND  concluded by  describing the  outcomes of                                                               
the  proposed legislation,  including job  creation and  business                                                               
development.  Additionally, he offered  his hope that HB 34 would                                                               
help to  keep young  people in Alaska  and excite  them regarding                                                               
future  prospects.   Finally, he  noted  that HB  30 includes  an                                                               
entrepreneurship  office and  includes  provisions  for DCCED  to                                                               
support emerging  entrepreneurial activities.  He  stated that HB
34  and HB  30 are  complimentary and  do not  overlap with  each                                                               
other.                                                                                                                          
                                                                                                                                
5:04:31 PM                                                                                                                    
                                                                                                                                
JACQUELINE SUMMERS, Executive Director,  Health TIE, gave invited                                                               
testimony  during the  hearing  on  HB 34.    She explained  that                                                               
Health TIE  is an  Alaska-based healthcare  innovative hub.   She                                                               
reported that Alaska has some  of the highest healthcare costs in                                                               
the country.   She stated  that, through work with  startups both                                                               
in and  outside of  Alaska, she  has launched  a series  of pilot                                                               
projects with  new methods  for addressing  opioid use/treatment,                                                               
independence    for    those   with    intellectual/developmental                                                               
disabilities,  those with  traumatic brain  injuries (TBIs),  and                                                               
senior  care.     She  emphasized  that  there  is   a  need  for                                                               
coordination of activities  within the entrepreneurial ecosystem.                                                               
She described  challenges to connecting healthcare  startups with                                                               
local  nonprofit   organizations  and   social  services.     She                                                               
concluded by offering strong support for HB 34.                                                                                 
                                                                                                                                
5:06:32 PM                                                                                                                    
                                                                                                                                
LINDA JANES,  Managing Director,  gBETA, gener8tor,  gave invited                                                               
testimony during  the hearing on  HB 34.   Since 2021,  Ms. Janes                                                               
stated,  gBETA at  gener8tor helped  raise over  $5.5 million  to                                                               
initiate 30  companies and sustain 91  jobs.  She gave  a list of                                                               
the  various  industries she  works  with,  including housing  in                                                               
rural  communities,   clean  outdoor  air   technology,  aviation                                                               
weather  monitoring,  food preservation,  industrial  facilities,                                                               
sustainable energy generation,  oil and gas, and many  more.  She                                                               
said  that  a strong  support  network  is critical  to  success,                                                               
especially in an "islanded place"  like Alaska.  A strong support                                                               
network entails  access to  early capital,  mentorships, exposure                                                               
to    like-minded    entrepreneurs,   and    innovation-supported                                                               
infrastructure.  She offered her  belief that HB 34 addresses the                                                               
need [for  a strong support  network] by assembling a  council of                                                               
investors, entrepreneurs,  and industry leaders who  would advise                                                               
on  best practices,  enhance  commercialization efforts,  promote                                                               
capital  formation  in  Alaska, and  identify  opportunities  for                                                               
action.                                                                                                                         
                                                                                                                                
MS.  JANES opined  that  the cost  attached to  HB  34 should  be                                                               
looked at as an investment,  not "throwing money away," and noted                                                               
that  the investment  of  time  and money  create  returns.   She                                                               
argued that  there is  a false  sense of  security in  Alaska and                                                               
further stated  that the demand  for medical jobs  is increasing,                                                               
primarily due to the aging  population in Alaska that is expected                                                               
to  peak  in  2035.    However, she  argued  that  the  long-term                                                               
economic  landscape  shows  an out-migration  of  young,  working                                                               
people  due to  a lack  of  "ongoing opportunities."   Ms.  Janes                                                               
concluded that people  in Alaska need to see the  State of Alaska                                                               
invest in long-term opportunities for the state.                                                                                
                                                                                                                                
5:10:10 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS invited questions from committee members.                                                                       
                                                                                                                                
5:10:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COULOMBE  asked  how the  Alaska  Small  Business                                                               
Development  Center  (ASBDC)  is   different  from  the  proposed                                                               
council.                                                                                                                        
                                                                                                                                
5:10:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLLAND  answered  that ASBDC  provides  a  broad                                                               
array of  services, particularly for "bankable"  local businesses                                                               
or   businesses   that  are   eligible   for   a  loan   or   are                                                               
"bootstrap[ped]."     He   offered  commentary   that  technology                                                               
businesses and  technology transfers  require a different  set of                                                               
skills.  He noted that  Path to Prosperity [Business Competition]                                                               
has  been a  successful  program in  Southeast  Alaska (SEAK)  in                                                               
helping  local  entrepreneurs  develop businesses,  and  programs                                                               
like that would  be complemented by ASBDC.  He  stated that ASBDC                                                               
is one  of many tools that  aspiring entrepreneurs/businessowners                                                               
can  utilize   for  aid.     He  stated   that  in   many  cases,                                                               
entrepreneurs    need     additional    help     with    customer                                                               
validation/discovery work.                                                                                                      
                                                                                                                                
REPRESENTATIVE HOLLAND  provided an  example, stating  that GBeta                                                               
would help  an aspiring entrepreneur with  creating an investable                                                               
business model, which  might eventually lead to  a small business                                                               
opportunity that is  "bankable" and thus could use  help from the                                                               
ASBDC.  He  stated that, throughout the country, it  is common to                                                               
see the entrepreneurial ecosystems feed into the SBDCs.                                                                         
                                                                                                                                
5:13:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  remarked that  HB 34  would create  a 19-                                                               
member council.   He asked  what would oblige the  legislature or                                                               
the administration to follow or  implement the recommendations of                                                               
the Alaska Innovation Council.                                                                                                  
                                                                                                                                
REPRESENTATIVE  HOLLAND  explained  that  he did  not  intend  to                                                               
create required action  in statute.  He stated  that the function                                                               
of  the Alaska  Innovation  Council would  be  advisory, and  the                                                               
Council could identify potential state action.                                                                                  
                                                                                                                                
REPRESENTATIVE SADDLER clarified that  the function of the Alaska                                                               
Innovation  Council would  be to  generate advice.   He  asserted                                                               
that the cost of the  proposed legislation would be "significant"                                                               
at $500,000.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLLAND  responded  that  the  Alaska  Innovation                                                               
Council would  be a "next  step" in developing  methodologies for                                                               
implementing Alaska's  2022 CEDS,  for example.   He  agreed with                                                               
Representative Saddler,  asserting that  whether action  is taken                                                               
would  be  dependent  on  the  will  of  the  commissioners,  the                                                               
governor, and  the legislature.   He reiterated that HB  34 would                                                               
not be "binding" but argued that  Alaska "would have to go beyond                                                               
plans on a shelf that are ignored."                                                                                             
                                                                                                                                
REPRESENTATIVE  SADDLER asserted  that he  does not  see how  the                                                               
advice would  be taken  into action with  the voluntary  model of                                                               
the proposed legislation.                                                                                                       
                                                                                                                                
REPRESENTATIVE HOLLAND  gave an anecdotal response,  stating that                                                               
when starting a  business, one typically writes  a business plan.                                                               
He added  that enforcement of  a business plan is  not mandatory.                                                               
He continued  that, if a  business plan  is well thought  out and                                                               
given  to  the  right  people,   people  would  commit  time  and                                                               
resources towards  action, such as getting  said business afloat.                                                               
He further  noted that  there is  no end  to business  plans that                                                               
have been  thought out  and never  acted upon.   He  concluded by                                                               
offering  his  hope  that the  legislature  would  pursue  action                                                               
recommendations of the proposed Alaska Innovation Council.                                                                      
                                                                                                                                
5:18:36 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS announced that HB 34 was held over.                                                                             
                                                                                                                                
5:18:42 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
5:18 p.m.