02/24/2014 01:30 PM House FINANCE

HOUSE BILL NO. 32                                                                                                             
                                                                                                                                
     "An  Act providing  for the  issuance  of one  business                                                                    
     license for  multiple lines of business;  and providing                                                                    
     for  reissuance  of a  business  license  to correct  a                                                                    
     mistake on the license."                                                                                                   
                                                                                                                                
3:18:26 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Neuman MOVED  to  ADOPT  the proposed  committee                                                                    
substitute  for  HB  32,   Work  Draft  28-LS0192\R  (Martin                                                                    
2/20/14). Co-Chair Stoltze OBJECTED for discussion.                                                                             
                                                                                                                                
DANIEL  GEORGE,  STAFF,  CO-CHAIR  STOLTZE,  testified  that                                                                    
throughout the  bill the term  "lines of business"  has been                                                                    
replaced   with    "trades,   services,    professions,   or                                                                    
activities." The change could be on  Page 1, line 1; Page 1,                                                                    
line 8; Page 1, line 12; Page 2,  line 3 and 4; Page 2, line                                                                    
21 and  25. He  said that  the CS  included the  addition of                                                                    
Section  4, Page  2, lines  14 through  17, which  added the                                                                    
statutory  definition  of  "lines of  business"  within  the                                                                    
definitions of the Business Licensing Act.                                                                                      
                                                                                                                                
Co-Chair Stoltze interjected that  the changes had been made                                                                    
in consort with the sponsor  and the Department of Commerce,                                                                    
Community and Economic Development.                                                                                             
                                                                                                                                
Mr. George agreed.                                                                                                              
                                                                                                                                
Representative  Costello stated  that the  CS was  in direct                                                                    
response  to  a  line  of   questions  brought  by  Co-Chair                                                                    
Austerman at a previous hearing.                                                                                                
                                                                                                                                
Representative Guttenberg  asked whether the  definition was                                                                    
new or if it could be found elsewhere in statute.                                                                               
                                                                                                                                
Mr.  George  replied  that   the  words  "trades,  services,                                                                    
professions,  or   activities"  were  utilized   within  the                                                                    
definition in AS  43.71.10.001, but was not  within the bill                                                                    
itself. It was meant to clarify a line of business.                                                                             
3:22:29 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg understood  that defining lines of                                                                    
business as  trades and services  allowed the  department to                                                                    
better define them based on one licensing practice.                                                                             
                                                                                                                                
Mr. George deferred to the department or the sponsor.                                                                           
                                                                                                                                
CHARLES    GUINCHARD,   STAFF,    REPRESENTATIVE   COSTELLO,                                                                    
explained that  the definition of  business had  been pulled                                                                    
from  existing statute.  He understood  that the  department                                                                    
interpreted it as a direct  correlation to the federal NAICS                                                                    
codes.                                                                                                                          
                                                                                                                                
3:24:55 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg requested  assurances that  there                                                                    
were  not  two   versions  of  the  meaning   of  "lines  of                                                                    
business."                                                                                                                      
                                                                                                                                
Mr. Guinchard replied that the  intent of that change was to                                                                    
have  the definition  of the  word "business"  work together                                                                    
with the definition of "line  of business." He said that the                                                                    
bill  defined  business as  an  entity  that may  accomplish                                                                    
various different  things, whereas  the definition  of "line                                                                    
of business" would  be any one particular thing  done by the                                                                    
business.                                                                                                                       
                                                                                                                                
Co-Chair  Stoltze WITHDREW  his  OBJECTION.  There being  no                                                                    
further objection CS was adopted.                                                                                               
                                                                                                                                
Representative  Costello   stated  that  the  list   of  the                                                                    
business  that  would  be  affected  had  been  provided  to                                                                    
committee members. She noted that  the fiscal note reflected                                                                    
the need for  the administrative work. She  noted that there                                                                    
would be a loss to the  state of $37,500, which she believed                                                                    
would  be better  managed by  small  business owners  rather                                                                    
than the government.                                                                                                            
                                                                                                                                
Vice-Chair Neuman  MOVED to  REPORT HB  32 out  of committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note(s). There being NO OBJECTION, it was so ordered.                                                                           
                                                                                                                                
CSHB  32 (FIN)  was REPORTED  out  of committee  with a  "do                                                                    
pass" recommendation and with one  new fiscal impact note by                                                                    
the   Department  of   Commerce,   Community  and   Economic                                                                    
Development.                                                                                                                    
Co-Chair Stoltze discussed housekeeping.