HB 340-REPEAL BIDCO ASSISTANCE PROGRAM  3:22:46 PM CHAIR KITO announced that the first order of business would be HOUSE BILL NO. 340, "An Act repealing the Alaska BIDCO Assistance program and repealing requirements for an annual examination of a BIDCO by the Department of Commerce, Community, and Economic Development." 3:23:01 PM MIKE NAVARRE, Commissioner Designee, Department of Commerce, Community & Economic Development (DCCED), introduced HB 340 on behalf of the House Rules Committee by request of the governor. He explained that the proposed bill would repeal the BIDCO assistant program. He added that only one BIDCO had ever been licensed in Alaska, to Alaska Growth Capital. He said most of the loans are guaranteed by the United States Small Business [Administration]. 3:24:31 PM REPRESENTATIVE SULLIVAN-LEONARD asked for information on BIDCO, including what the acronym stands for. COMMISSIONER DESIGNEE NAVARRE deferred to the department. CHAIR KITO explained that he had some experience with Alaska Growth Capital in the past and the goal of Business Industrial Development Corporation (BIDCO) in the late 1980s or early 1990s was to assist businesses to get started. 3:25:58 PM PATRICE WALSH, Chief Examiner, Division of Banking and Securities, Department of Commerce, Community & Economic Development (DCCED), answered questions in the hearing on HB 340. She described the mission of BIDCO as an assistance program for capital for rural and distressed areas and minority- owned businesses. She gave the example of loans to aviation companies in Nome and Barrow. 3:27:26 PM REPRESENTATIVE SULLIVAN-LEONARD said she was looking at the fiscal note (FN) and paraphrased from the analysis [included in committee packet] which reads as follows [original punctuation provided]: "The revisions to the Alaska Business and Industrial Development Corporation (BIDCO) Act will eliminate the annual examination requirement yet retain the division's authority to conduct an examination when needed." REPRESENTATIVE SULLIVAN-LEONARD asked whether the change would fulfill the division's need for oversight. MS. WALSH answered in the affirmative. She added that the division is required to do an examination every twelve months. She said the examination usually takes about two weeks, requires around four examiners, and the process can average close to $30 thousand. She explained that having the requirement to have exams as needed would lead to big savings for the department. REPRESENTATIVE BIRCH disclosed that his son is the CEO and President of Alaska Growth Capital. 3:29:30 PM CHAIR KITO opened public testimony on HB 340 and left it open. CHAIR KITO held over HB 340.