Legislature(2025 - 2026)ADAMS 519
05/12/2025 09:00 AM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB30 | |
| HB34 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 64 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 30 | TELECONFERENCED | |
| += | HB 34 | TELECONFERENCED | |
HOUSE BILL NO. 30
"An Act establishing the office of entrepreneurship;
relating to new businesses in the state; relating to
reports concerning procurements by agencies; and
relating to initial business license fees for new
businesses in the state."
9:11:03 AM
REPRESENTATIVE KY HOLLAND, SPONSOR, explained that both HB
30 and HB 34 were intended to begin and expand a
conversation on diversifying the economy, supporting
emerging sectors, and aligning state actions with the
vision, plans, and recommendations. He noted that the
recommendations were already articulated in the
Comprehensive Economic Development Strategy (CEDS) [created
by the Department of Commerce, Community and Economic
Development (DCCED)] and other similar reports. He
explained that the purpose was to establish a framework by
which strategies could be developed and plans supported, as
well as to strengthen the existing economic ecosystem.
Representative Holland stated that HB 30 created the Office
of Entrepreneurship and was modeled after efforts in other
states that recognized the role of state government in
fostering and supporting startups. The bill required that a
small 5 percent portion of the state's economic development
investments be directed specifically toward startups. He
explained that a past version of the bill also required
that an impact study be conducted to determine the extent
to which businesses younger than five years were accessing
state contracts and opportunities. However, he intended to
eliminate the reporting requirement and its accompanying
fiscal note after receiving negative community feedback on
the requirement.
Representative Holland emphasized that the overall goal of
HB 30 was to ensure that DCCED provided renewed focus and
support for startups. He stated that ten years prior, the
department had operated with approximately $2 million and a
number of staff dedicated to economic development, but the
resources had since been reallocated or eliminated. The
state's current allocation for economic development was
zero dollars, which meant that Alaska was not investing in
emerging sectors. He explained that HB 30 was an attempt to
restore modest support. The bill carried a fiscal note
(copy on file) for a small number of staff positions, but
the positions already existed and were vacant. He clarified
that the positions were transferred to the Office of the
Governor and remained unfilled.
Representative Holland stated that he stood behind the
fiscal note and stressed the importance of investing in
Alaska's future economy and job opportunities. He explained
that the bill was intended to re-engage the state in
creating opportunities that would encourage families to
remain in Alaska and give students reasons to be optimistic
about their future in the state. He noted that Ms.
Jacqueline Summers was available online if committee
members had more detailed questions.
9:15:11 AM
Co-Chair Foster OPENED public testimony.
Representative Allard stated that she needed to step out
for a meeting and emphasized that she did not want anyone
to interpret her departure as rudeness. She would return as
soon as the other meeting concluded.
Co-Chair Foster explained that individuals wishing to
provide written testimony on HB 30 could do so by emailing
the House Finance Committee.
9:16:45 AM
JACQUELINE SUMMERS, EXECUTIVE DIRECTOR, HEALTH TESTBED
INNOVATIVE ENTERPRISES, ANCHORAGE (via teleconference),
indicated that she supported Representative Holland's
statements. She shared that she had been conducting a
series of informal interviews and her research confirmed
that entrepreneurship played an important role in
developing new ideas and solving problems in Alaska. She
noted that entrepreneurs often became business owners by
accident and needed support to succeed. She added that
without assistance, entrepreneurs frequently made mistakes
that jeopardized their success. She emphasized that HB 30
and HB 34 were important for supporting entrepreneurship
efforts. She expressed her strong support for both bills.
She indicated that she would remain available for
questions.
9:17:44 AM
Co-Chair Foster CLOSED public testimony.
Co-Chair Josephson asked Representative Holland to clarify
whether the amendment he intended to propose would leave
the bill unchanged except for striking the annual report
requirement on page 4.
Representative Holland responded in the affirmative. He
deferred to his staff for additional detail.
CAMERON EBERSOLD, STAFF, REPRESENTATIVE KY HOLLAND,
explained that the bill contained two separate reporting
requirements. The first was a procurement report conducted
by the Department of Administration (DOA). As currently
written, the bill required the department to identify
whether businesses less than five years old in Alaska were
receiving procurement contracts. The provision carried a
fiscal note of $500,000 [FN1 by DOA, control code
Ztaay](copy on file) for an impact study, which the
possible amendment would remove. The second report that
examined how legislation affected new businesses would
remain unchanged.
Representative Galvin expressed support for the concept
behind HB 30. She agreed that Alaska needed to explore new
types of revenue sources. She noted that other states had
invested strategically in order to generate greater long-
term returns and she thought that Alaska needed to follow a
similar model. She reminded the committee that the state
was expected to experience reduced revenue from oil and gas
over the next three to four years because of ongoing
investment in growth. She emphasized that the state must
consider innovative approaches to diversify its revenue
base.
Representative Stapp recommended that if Representative
Holland intended to introduce an amendment, the committee
should instead consider adopting a committee substitute
(CS).
Co-Chair Foster agreed that the suggestion was reasonable
and that the change would be easy to incorporate.
Representative Holland noted there had been questions from
members during a previous committee meeting and he had made
a document available earlier that day (copy on file)[titled
"HB 30 HFIN questions"] that he hoped had answered the
questions.
Co-Chair Foster set an amendment deadline for HB 30 for
Thursday, May 15, 2025, at 5:00 p.m. He noted that it was
likely that the committee would consider a CS for the bill.
9:23:02 AM
AT EASE
9:24:08 AM
RECONVENED
Co-Chair Foster relayed that the committee would likely
incorporate the amendment into the bill rather than
considering a CS.
Co-Chair Josephson observed that subsections (4), (5), and
(6) of the bill were being repealed, but when he looked at
the 2024 version of the statutes, the subsections did not
appear to exist. He commented that the matter could be
addressed offline but asked if Representative Holland could
clarify.
Mr. Ebersold asked Co-Chair Josephson if he could repeat
the question.
Co-Chair Josephson clarified that the bill repealed a law
on page 4, he did not see the laws being repealed in the
2024 version of the statutes. He observed that the
subsections were added on page 2 of the bill. He suggested
that he might be missing something.
Mr. Ebersold responded that the subsections were added by
the bill. He explained that the House Labor and Commerce
Committee had introduced and adopted an amendment that
sunset the program after five years. He explained that the
sections being repealed were the same sections being added
in Section 3, which established the Office of
Entrepreneurship.
HB 30 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 30 HFIN questions 051225.pdf |
HFIN 5/12/2025 9:00:00 AM |
HB 30 |
| HB 30 Public Testimony Rec'd by 051225.pdf |
HFIN 5/12/2025 9:00:00 AM |
HB 30 |