Legislature(2025 - 2026)BARNES 124
03/19/2025 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB123 | |
| SB79 | |
| HB30 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 132 | TELECONFERENCED | |
| += | HB 123 | TELECONFERENCED | |
| + | SB 79 | TELECONFERENCED | |
| += | HB 30 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 30-OFFICE OF ENTREPRENEURSHIP
4:04:14 PM
CO-CHAIR HALL announced that the final order of business would
be HOUSE BILL NO. 30, "An Act establishing the office of
entrepreneurship; relating to new businesses in the state; and
relating to reports concerning procurements by agencies."
[Before the committee was CSHB 30(STA).]
4:04:43 PM
REPRESENTATIVE COULOMBE moved to adopt Amendment 1 to CSHB
30(STA), labeled 34-LS0320\G.1, Gunther, 3/18/25, which read as
follows:
Page 2, line 23:
Delete "Department of Commerce, Community, and
Economic Development"
Insert "department"
Page 2, line 30:
Delete "and"
Page 3, line 10, following "state":
Insert new material to read:
"; and
(5) actively seek and use volunteers to
assist in the performance of the duties described in
this section"
Page 3, following line 15:
Insert a new subsection to read:
"(c) The department may provide to the office
facilities to implement the duties described under
this section. If the department determines that
facilities are not necessary to perform a duty of the
office, the office shall perform the duty using
electronic or telephonic means."
Reletter the following subsection accordingly.
Page 3, following line 16:
Insert a new paragraph to read:
"(1) "department" means the Department of
Commerce, Community, and Economic Development;"
Renumber the following paragraphs accordingly.
Page 3, line 26:
Delete "senate secretary and the"
Insert "the governor, senate secretary, and"
CO-CHAIR FIELDS objected for the purpose of discussion.
4:04:55 PM
REPRESENTATIVE COULOMBE stated that the purpose of the amendment
was to reduce the fiscal impact of the proposed legislation.
She explained that Amendment 1 would prioritize a volunteer-
driven approach within the department. and ensure that the
Department of Commerce, Community & Economic Development (DCCED)
provides necessary resources, whether a physical workspace or
remote communication tools, to support volunteers in carrying
out their duties effectively. She added that Amendment 1 would
additionally require that all generated reports be submitted to
the governor.
4:05:41 PM
REPRESENTATIVE KY HOLLAND, Alaska State Legislature, as prime
sponsor of HB 30, noted that the [entrepreneurial] ecosystem is
already heavily reliant on volunteers and could not function
without them.
4:06:30 PM
REPRESENTATIVE KY HOLLAND, in response to a question from Co-
Chair Fields, confirmed that he was in support of the proposed
amendment.
CO-CHAIR FIELDS removed his objection. There being no further
objection, Amendment [1] to CSHB 30(STA) was adopted.
4:07:30 PM
REPRESENTATIVE SADDLER moved to adopt Amendment [2] to CSHB
30(STA), as amended, labeled 34-LS0320\G.2, Gunther, 3/18/25,
which read as follows:
Page 3, line 28, through page 4, line 5:
Delete all material.
Page 4, line 10:
Delete ";"
Insert "."
Page 4, lines 11 - 13:
Delete all material.
CO-CHAIR FIELDS objected.
4:07:42 PM
REPRESENTATIVE SADDLER explained that Amendment 2 would
eliminate statutory language directing state agencies to
appropriate 5 percent [of revenue] "for a purpose." He shared
his concern that the language is "too broad." He shared his
secondary concern, noting that there was no fiscal note or
quantifier attached to that particular section of the bill. He
shared his tertiary concern that "the 5 percent shall be
appropriated for support and expansion of organizations or
programs." He queried which organizations or programs were
referred to in the legislation and asked for clarification on
the intent of the language.
4:08:58 PM
REPRESENTATIVE HOLLAND explained that the "5 percent language"
came from model national legislation. He further explained that
state and local governments' purchasing power could be an engine
for economic development. He stated that he intentionally made
the language to which Representative Saddler referred "very
general" and further stated that he would like agencies to be
purposeful in spending money on small businesses in Alaska. He
clarified that the intent was the development of different
programs for economic development to expand access of small
Alaska startups less than five years old to "bidding and
purchasing opportunities." He shared his goal of the
development of more Alaska-based products and services.
4:11:28 PM
CO-CHAIR FIELDS maintained his objection. He opined that 5
percent was not too much to ask in the name of supporting new
businesses.
A roll call vote was taken. Representatives Saddler, Coulombe,
and Nelson voted in favor of the motion to adopt Amendment 2 to
CSHB 30(STA), as amended. Representatives Burke, Carrick,
Fields, and Hall voted against it. Therefore, Amendment 2
failed to be adopted by a vote of 3-4.
4:12:21 PM
REPRESENTATIVE SADDLER moved to adopt Amendment [3] to CSHB
30(STA), as amended, labeled 34-LS0320\G.3, Gunther, 3/18/25,
which read as follows:
Page 3, line 30:
Delete "five"
Insert "two"
CO-CHAIR FIELDS objected.
REPRESENTATIVE SADDLER explained that Amendment 3 was a tiered
response to language in the proposed legislation referred to
during the motion to adopt Amendment [2] to HB 30. He stated
that without specificity, he would not know where the money is
going and exactly how much money entails 5 percent or 2 percent.
He explained that the amendment would lower 5 percent to 2
percent, thus lowering the [financial] impact.
4:13:11 PM
CO-CHAIR FIELDS asked the bill sponsor whether the amendment was
workable.
4:13:21 PM
REPRESENTATIVE HOLLAND clarified that the language addressed by
Amendment 3 would not make new appropriations; rather, it would
be a shift of money already spent on products towards "younger,
newer organizations" in Alaska. He stated that the percentage
did not matter, given the intent to direct spending into
emerging businesses. However, he also stated that the national
model legislation that CSHB 30(STA) was based on, which has been
enacted in over 30 states, had identified 5 percent as
meaningful and impactful, and he stated his preference not to
change the number.
4:15:00 PM
CO-CHAIR FIELDS maintained his objection to Amendment 3.
4:15:36 PM
The committee took a brief at-ease at 4:15 p.m.
4:16:32 PM
A roll call vote was taken. Representatives Nelson, Coulombe,
and Saddler voted in favor of the motion to adopt Amendment 3 to
CSHB 30(STA), as amended. Representatives Burke, Carrick,
Fields, and Hall voted against it. Therefore, Amendment 3
failed to be adopted by a vote of 3-4.
4:17:11 PM
REPRESENTATIVE SADDLER indicated that he would not be offering
Amendment 4 to HB 30.
4:17:25 PM
REPRESENTATIVE SADDLER moved to adopt Amendment [5] to CSHB
30(STA), as amended, labeled 34-LS0320\G.5, Gunther, 3/18/25,
which read as follows:
Page 1, line 2:
Delete "and"
Following "agencies":
Insert "; and providing for an effective date"
Page 4, following line 13:
Insert new bill sections to read:
"* Sec. 4. AS 36.30.540(a)(4), 36.30.540(a)(5),
36.30.540(a)(6), 36.30.540(b); AS 44.33.850,
44.33.853, 44.33.855, 44.33.857, and 44.33.859 are
repealed.
* Sec. 5. Section 4 of this Act takes effect
December 31, 2028."
CO-CHAIR FIELDS objected.
REPRESENTATIVE SADDLER explained that Amendment [5] would create
a three-year sunset provision for the Office of Entrepreneurship
proposed by HB 30. He shared his concern in the establishment
of a permanent council that "may or may not exceed its
aspirations." He noted that most startup businesses do not stay
open beyond three years. He asserted that a three-year sunset
gives the proposed Office of Entrepreneurship time to prove its
worth.
4:18:15 PM
CO-CHAIR FIELDS shared his concern that three years would not be
enough time to accurately assess the effectiveness of the
program. He queried whether five years would be enough time for
a sunset provision.
4:18:35 PM
REPRESENTATIVE HOLLAND noted that CSHB 30(STA) would have two
reporting mechanisms. He opined that Amendment 5 was brilliant,
noting that a startup should prove its worth. He additionally
noted that three years would be a little early for most startups
but also stated that he was comfortable with the proposed
legislation required to prove itself withing three years.
4:20:08 PM
CO-CHAIR FIELDS asked what other committee members thought
regarding a date for a sunset clause.
4:20:21 PM
REPRESENTATIVE CARRICK stated that five years would be a
reasonable amount of time for a sunset provision.
REPRESENTATIVE CARRICK moved to adopt Conceptual Amendment 1 to
Amendment 5, to change the effective date on line 10, as
numbered on Amendment 5, to 2030.
4:21:04 PM
REPRESENTATIVE COULOMBE objected.
REPRESENTATIVE COULOMBE offered her agreement with the bill
sponsor and stated that the proposed Office of Entrepreneurship
needed to prove its value relatively soon after establishment.
She stated that she would prefer a three-year sunset clause, but
that she wouldn't object to a five-year sunset clause, whether
it was the will of the committee.
4:21:43 PM
REPRESENTATIVE SADDLER stated that he would not oppose
Conceptual Amendment 1 to Amendment 5. He offered his
appreciation for the bill sponsor's conviction.
4:22:06 PM
CO-CHAIR FIELDS observed that the council might see whether the
Office of Entrepreneurship was performing well in three years,
but the legislature may require five years to see results. He
shared his preference for a five-year sunset provision.
4:22:32 PM
REPRESENTATIVE COULOMBE withdrew her objection to Conceptual
Amendment 1 to Amendment 5. There being no further objection,
it was so ordered.
4:22:52 PM
CO-CHAIR FIELDS withdrew his objection to Amendment 5, as
amended. There being no further objection, Amendment 5, as
amended, was adopted.
4:23:31 PM
REPRESENTATIVE SADDLER moved Amendment [6] to CSHB 30(STA), as
amended, labeled 24-LS0320\G.6, Gunther, 3/18/25, which read as
follows:
Page 3, lines 23 - 27:
Delete all material.
Page 3, line 28:
Delete "Sec. 44.33.857"
Insert "Sec. 44.33.855"
CO-CHAIR FIELDS objected.
REPRESENTATIVE SADDLER explained that Amendment 6 would remove
the requirement to procure a report characterizing legislation
as "helpful or harmful" for new businesses in Alaska. He argued
that the legislature's Bill Access & Status Inquiry System
(BASIS) already served that function. Further, he remarked that
people could decide for themselves whether a piece of
legislation was helpful or harmful.
4:24:44 PM
CO-CHAIR FIELDS requested the bill sponsor's opinion on
Amendment 6.
4:24:49 PM
REPRESENTATIVE HOLLAND offered his belief that this particular
report was vital to the proposed legislation. He remarked that
BASIS was an incredible resource but asserted that it was for
recordkeeping and does not analyze the legislative effects on
small and emerging businesses.
4:26:01 PM
CO-CHAIR FIELDS maintained his objection.
4:26:13 PM
REPRESENTATIVE SADDLER opined that the legislature, as a public
agency, should not "be in the business of telling people what to
think about its own enactments." He asserted that constituents
should be empowered to review legislation and come to their own
conclusions. He urged committee members to vote in support of
Amendment 6.
4:26:45 PM
A roll call vote was taken. Representatives Nelson, Coulombe,
and Saddler voted in favor of the motion to adopt Amendment [6]
to CSHB 30(STA), as amended. Representatives Carrick, Burke,
Fields, and Hall voted against it. Therefore, Amendment 6
failed to be adopted by a vote of 3-4.
4:27:53 PM
The committee took a brief at-ease at 4:27 p.m.
4:28:19 PM
CO-CHAIR HALL opened public testimony on CSHB 30(STA), as
amended.
4:28:41 PM
TYLER ARNOLD, representing self, testified in support of HB 30.
He stated that he was the founder of Tyler Systems, LLC and
worked in startups in Silicon Valley, New York, Washington,
D.C., and Europe. He explained that his business creates
innovative artificial intelligence (AI) solutions to "help
Alaskans that are being forced to do more with less in our
current economic environment." He encouraged committee members
to imagine an Alaska where "every budding entrepreneur has the
resources they need to succeed."
MR. ARNOLD offered his belief that the establishment of an
Office of Entrepreneurship should be a legislative priority,
asserting that its establishment was a strategic investment in
addressing Alaska's unique problems. He stated that the reality
of entrepreneurship in Alaska was "dark," remarking that many
entrepreneurs work for less than minimum wage. He asserted that
entrepreneurs are Alaska's hope for finding unique solutions to
Alaska's unique problems, and entrepreneurs in Alaska need a
"central hub of support" that can provide sustainable models to
help Alaska succeed, coordinate existing services, and act as a
catalyst to help individuals solve Alaska's greatest problems.
MR. ARNOLD asserted that existing support systems, federally or
locally funded, are "fragmented [with] high barriers to entry,"
with rural communities facing even higher barriers. He
additionally asserted that there is little collaboration between
existing support services. He stated that Alaska, with its
large land mass and small population, is unique. He emphasized
the importance of Alaska investing in itself. He noted that the
"global business environment [is] chang[ing] drastically,"
particularly with new technologies like AI and bureaucracies
dare being replaced with peer-to-peer help. He encouraged
committee members to vote yes on HB 30.
4:33:32 PM
CO-CHAIR HALL, after ascertaining that there was no one else who
wished to testify, closed public testimony on CSHB 30(STA).
4:33:40 PM
REPRESENTATIVE HOLLAND offered his appreciation for the
amendments and feedback on CSHB 30(STA).
CO-CHAIR HALL entertained a motion.
4:34:17 PM
CO-CHAIR FIELDS moved to report CSHB 30(STA), as amended, out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, CSHB 30(L&C) was
reported out of the House Labor and Commerce Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 79 HL&C Hearing Packet 3.19.2025.pdf |
HL&C 3/19/2025 3:15:00 PM |
SB 79 |
| HB 30 Amendment G.1.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 30 |
| HB 30 Amendment G.2.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 30 |
| HB 30 Amendment G.3.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 30 |
| HB 30 Amendment G.4.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 30 |
| HB 30 Amendment G.5.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 30 |
| HB 30 Amendment G.6.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 30 |
| HB 123-Amendment I.2.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 123 |
| HB123 Ver A Supporting Doc-FAQs 3.19.25.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 123 |
| HB123 Ver A Supporting Doc-Vehicle Rental Statutes 3.19.25.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 123 |
| HB123 VerA Supporting Doc-DOR Brief Analysis of Turo 3.19.25.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 123 |