03/17/2025 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB30 | |
| HB75 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 132 | TELECONFERENCED | |
| + | HB 30 | TELECONFERENCED | |
| += | HB 75 | TELECONFERENCED | |
| *+ | HB 38 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 121 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 17, 2025
3:15 p.m.
DRAFT
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
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."
- HEARD & HELD
HOUSE BILL NO. 75
"An Act relating to national criminal history record checks for
certain employees of the Department of Revenue; relating to
allowable absences for eligibility for a permanent fund
dividend; relating to the confidentiality of certain information
provided on a permanent fund dividend application; relating to
electronic notice of debt collection executed on a permanent
fund dividend; and providing for an effective date."
- MOVED CSHB 75(STA) OUT OF COMMITTEE
HOUSE BILL NO. 132
"An Act relating to loans in an amount of $25,000 or less;
relating to the Nationwide Multistate Licensing System and
Registry; relating to deferred deposit advances; and providing
for an effective date."
- BILL HEARING CANCELED
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 38
"An Act relating to supplemental employee benefits; and
providing for an effective date."
- BILL HEARING CANCELED
HOUSE BILL NO. 121
"An Act relating to the practice of accounting; and providing
for an effective date."
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: HB 30
SHORT TITLE: OFFICE OF ENTREPRENEURSHIP
SPONSOR(s): REPRESENTATIVE(s) HOLLAND
01/22/25 (H) PREFILE RELEASED 1/10/25
01/22/25 (H) READ THE FIRST TIME - REFERRALS
01/22/25 (H) STA, L&C
02/22/25 (H) STA AT 1:00 PM GRUENBERG 120
02/22/25 (H) Heard & Held
02/22/25 (H) MINUTE(STA)
02/27/25 (H) STA AT 3:15 PM GRUENBERG 120
02/27/25 (H) Heard & Held
02/27/25 (H) MINUTE(STA)
03/06/25 (H) STA AT 3:15 PM GRUENBERG 120
03/06/25 (H) Scheduled but Not Heard
03/11/25 (H) STA AT 3:15 PM GRUENBERG 120
03/11/25 (H) Moved CSHB 30(STA) Out of Committee
03/11/25 (H) MINUTE(STA)
03/12/25 (H) STA RPT CS(STA) NEW TITLE 1DP 1DNP 5NR
03/12/25 (H) DP: HOLLAND
03/12/25 (H) DNP: MCCABE
03/12/25 (H) NR: VANCE, MOORE, HIMSCHOOT, STORY,
CARRICK
03/17/25 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 75
SHORT TITLE: PERM FUND; EMPLOYMENT; ELIGIBILITY
SPONSOR(s): REPRESENTATIVE(s) BYNUM
01/31/25 (H) READ THE FIRST TIME - REFERRALS
01/31/25 (H) STA, L&C
02/18/25 (H) STA AT 3:15 PM GRUENBERG 120
02/18/25 (H) Heard & Held
02/18/25 (H) MINUTE(STA)
02/22/25 (H) STA AT 1:00 PM GRUENBERG 120
02/22/25 (H) Heard & Held
02/22/25 (H) MINUTE(STA)
02/27/25 (H) STA AT 3:15 PM GRUENBERG 120
02/27/25 (H) Moved CSHB 75(STA) Out of Committee
02/27/25 (H) MINUTE(STA)
02/28/25 (H) STA RPT CS(STA) 5DP
02/28/25 (H) DP: HOLLAND, HIMSCHOOT, MOORE, STORY,
CARRICK
03/12/25 (H) L&C AT 3:15 PM BARNES 124
03/12/25 (H) Heard & Held
03/12/25 (H) MINUTE(L&C)
03/17/25 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
CAMERON EBERSOLD, Staff
Representative Ky Holland
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Holland, prime
sponsor, gave a PowerPoint presentation on HB 30.
BRITTENY CIONI-HAYWOOD, representing self
Juneau, Alaska
POSITION STATEMENT: Gave invited testimony in support of HB 30.
JARED REYNOLDS, Director
Center for Economic Development, University of Alaska Anchorage
Anchorage, Alaska
POSITION STATEMENT: Gave invited testimony in support of HB 30.
REPRESENTATIVE KY HOLLAND
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, answered questions during
the hearing on HB 30.
REPRESENTATIVE JEREMY BYNUM
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, answered questions during
the hearing on HB 75.
TREVOR SHAW, Staff
Representative Jeremy Bynum
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Bynum, prime
sponsor, answered questions during the hearing on HB 75.
ACTION NARRATIVE
3:15:31 PM
CO-CHAIR ZACK FIELDS called the House Labor and Commerce
Standing Committee meeting to order at 3:15 p.m.
Representatives Carrick, Burke, Coulombe, Hall, and Fields were
present at the call to order. Representatives Nelson and
Saddler arrived as the meeting was in progress.
HB 30-OFFICE OF ENTREPRENEURSHIP
3:15:52 PM
CO-CHAIR FIELDS announced that the first 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).]
3:16:14 PM
The committee took an at-ease from 3:16 p.m. to 3:17 p.m.
3:17:42 PM
CAMERON EBERSOLD, Staff, Representative Ky Holland, on behalf of
Representative Holland, prime sponsor, gave a PowerPoint
presentation on HB 30 [hard copy included in committee file],
titled "House Bill 30: Office of Entrepreneurship." He began on
slide 2, an overview of Alaska's economic outlook, which read as
follows [original punctuation provided]:
Slow economic growth
Job loss in key industries
Talent and family outmigration
We cannot rely on out legacy sectors to create the
jobs of the future
MR. EBERSOLD moved to slide 3, titled "Alaska needs to diversify
and support emerging sectors," which read as follows [original
punctuation provided]:
Future growth will come
from value-added support
of existing economic
engines and investment in
emerging sectors and jobs
Diversification and
technology growth aligns
with our CEDS, state and
national economic
development trends, and
history
MR. EBERSOLD highlighted the statistics related to emerging
sectors, displayed on slide 4, which read as follows [original
punctuation provided]:
New and young businesses create virtually all net job
growth in America
Research shows that for every 1 percent increase in
the U.S. entrepreneurship rate, the poverty rate
decreases by 2 percent
New businesses
• grow local GDP
• increase community wealth
• create homegrown jobs
• diversify goods and services
MR. EBERSOLD moved to slide 5 and cited Alaska: State of
Entrepreneurship by The University of Alaska Center for
Economic Development (2018). Slide 5 read as follows
[original punctuation provided]:
"Over the last decade, startups in Alaska consistently
added 4,000 to 6,000 jobs to the economy each year.
Firms that are aged five years or younger accounted
for 89% of Alaska's net employment growth in the
private sector."
MR. EBERSOLD moved to slide 6, an overview of HB 30, which
read as follows [original punctuation provided]:
Creates Office of Entrepreneurship in DCCED and
directs them to:
? Promote entrepreneurship
? Assist new business as they navigate interactions
with the state of Alaska
? Annually review policy changes that impact new
businesses
Directs state agency money to support programs or
organizations that help new
businesses
3:21:30 PM
MR. EBERSOLD moved to slide 7, an overview of the changes made
to HB 30 in the previous committee of referral, which read as
follows [original punctuation provided]:
The Committee Substitute for House State Affairs
yielded these changes:
1. Eliminated change from v. A that would have changed
Department of Administration's procurement report from
biennial to annual
2. Removed business license exemption for new
businesses
3. Clarified the goals of the Office of
Entrepreneurship with more specific language
4. Tightened definition of "new business in the state"
using preexisting statutory definition of Alaska
Bidder Preference
MR. EBERSOLD moved to slide 8, drawing committee members'
attention to a flow chart representative of the startup process
and highlighting how HB 30 would help the process: Ecosystem
Building, Ideation, Business Modelling, Business Strategy,
Business Planning, Startup Financing, Execution, and Business
Exits. He provided an anecdote about starting a laundromat,
asserting that a unique or never-done-before business idea could
be categorized as investable, but not bankable. He stated that
the proposed Office of Entrepreneurship would focus on the first
four steps of the startup process, thus creating connectivity in
the startup ecosystem.
MR. EBERSOLD moved to slide 9, an overview of expected outcomes
of HB 30, which read as follows [original punctuation provided]:
NEW BUSINESSES AND JOBS
REDUCED COSTS FOR NEW BUSINESSES
IMPROVE STATE INTEGRATION WITH STARTUP ECOSYSTEM
ECONOMIC OPPORTUNITY FOR THE NEXT GENERATION OF
ALASKANS
CO-CHAIR FIELDS stated the committee would hear from invited
testifiers.
3:26:55 PM
BRITTENY CIONI-HAYWOOD, representing self, began her invited
testimony by stating that she is an economist and had taught
economics at several universities. Additionally, she stated
that she had formerly served as the director of the Division of
Economic Development (DED) from March 2015 to December 2018.
She explained that DED was split into three sections while she
was director: the revolving loan fund, now currently the
Division of Investments; a small group of staff that worked on
economic development projects; and a third group of staff
members that "facilitated that visitor industry and tourism
work." She reported that staff members from were laid off due
to budgetary constraints. She further explained that the
funding for travel and tourism was funneled into the Alaska
Travel Industry Association (ATIA).
MS. CIONI-HAYWOOD explained that the Division of Investments
provides support for the fishing industry and facilitates loan
programs, such as microloan, mariculture, and small business
development. She highlighted some of DED's accomplishments
during her tenure, including the development of the first
Statewide Comprehensive Economic Development Strategy (CEDS),
which allowed the Economic Development Administration (EDA) to
dispense more grants to Alaska. Additionally, she reported that
DED worked to facilitate the Alaska Regional Development
Organization (ARDOR) program. She listed many organizations
that DED has worked with, including University of Alaska
[Anchorage] (UAA) Business Enterprise [Institute] (BEI), Juneau
Economic Development Council (JEDC), Spruce Roots, Alaska
Industrial Development and Export Authority (AIDEA), the Alaska
Chamber, and the Alaska Department of Labor & Workforce
Development (DLWD). She stated that DED conducted research for
various economic organizations around Alaska.
MS. CIONI-HAYWOOD stated that as director of DED, there was a
philosophy of "growing our own." She asserted that businesses
in Alaska face many challenges and that startups are
particularly vulnerable. She offered her belief that it is
important to have an entity that facilitates and spearheads the
work to support economic development. She suggested that the
proposed Office of Entrepreneurship could pick up pieces that
are no longer happening, that were happening under DED, with
some changes. She concluded by emphasizing the importance of
"growing our own," remarking that businesses in Alaska face
unique challenges.
3:31:48 PM
REPRESENTATIVE CARRICK asked about the funds redirected to
tourism marketing through ATIA.
MS. CIONI-HAYWOOD explained that tourism industry funding has
historically swung between state funding and private funding.
She further explained that when she became the director of DED,
the funding had come from DED, and during her time, the funds
were shifted to ATIA.
REPRESENTATIVE CARRICK asked for clarification that the funds
were not "taken away"; rather, the funds were shifted around.
MS. CIONI-HAYWOOD stated that is correct and noted that funds
have resided between a state entity or an outside entity.
3:33:16 PM
MS. CIONI-HAYWOOD, in response to a question from Representative
Saddler, confirmed that she was testifying as a private citizen,
on her own time. She explained that she is a State of Alaska
employee currently on approved leave.
3:33:41 PM
JARED REYNOLDS, Director, Center for Economic Development (CED),
University of Alaska Anchorage (UAA), began his invited
testimony by stating that he had facilitated a range of
startups. He said CED was embedded in Alaska's entrepreneurial
system in three major ways. First, he explained that CED
provides direct entrepreneurial support through programs such as
Upstart Alpha, which supports emerging businesses by clarifying
business models, refining marketing strategies, and mapping out
steps for launching and scaling a business. He highlighted
CED's goal of supporting "early-stage companies" in determining
feasibility of ideas and connecting startups to resources.
MR. REYNOLDS explained that CED works closely with
municipalities and local economic development organizations,
such as ARDORs. He stated that CED conducts research spanning a
range of topics, including opportunities within targeted
industries and the State of Entrepreneurship report, which
highlights strengths and weaknesses of the current
entrepreneurial landscape. He shared some statistics from the
report, emphasizing three areas: business creation, business
survival, and scalability and growth of businesses in Alaska.
He reported that one-third of businesses in Alaska are less than
5 years old, and over half of businesses in Alaska are less than
10 years old. He reported that "nearly every job in Alaska is
created by a business that is less than 5 years old." He
additionally asserted that Alaska is successful at reaching a
wide range of entrepreneurs, reporting that young people and
women start businesses at a rate that is higher than the
national average. However, he noted that Alaska struggled with
business growth and scalability. He reported that Alaska falls
behind significantly with regards to small business innovation
research (SBIR) and small business technology transfer (STTR)
funding, which helps with the commercialization of scalable
businesses. He additionally reported that nationally, Alaska
ranked forty-ninth in high-growth density and forty-fourth in
share of supported scalable businesses. He offered his hope
that the Office of Entrepreneurship could address these poor
statistics.
MR. REYNOLDS stated that many Alaska businesses are born out of
necessity, not opportunity. He acknowledged that while
businesses born out of necessity fill important community needs,
scalable businesses "are essential for creating high-quality
jobs, increasing income in driving innovation, and developing
new industries." He concluded that Alaska has many programs and
organizations that support entrepreneurs and stated that he saw
an opportunity [with CSHB 30(STA)] to create a "robust
entrepreneurial pipeline that will support entrepreneurs at each
stage of their development and create a vibrant and more robust
Alaskan economy."
3:38:50 PM
REPRESENTATIVE SADDLER questioned what states have similar
metrics to Alaska.
3:39:09 PM
MR. REYNOLDS responded that Alaska is unique in its remoteness,
and it is expensive to run a scalable business with exports. He
noted that Alaska is similar to Hawai'i and other rural-based
states in that regard. He asserted that Alaska is pretty unique
with the challenges it faces and the areas in which it finds
success.
3:40:19 PM
REPRESENTATIVE SADDLER stated that the Department of Commerce,
Community, and Economic Development (DCCED) provides economic
development opportunities for the state. He offered his belief
that the proposed Office of Entrepreneurship under HB 30
replicates DCEED's functions. He queried the justification for
HB 30, asking where Alaska Statute (AS) falls behind.
3:40:48 PM
MR. REYNOLDS stated that economic development organizations in
Alaska are always seeking additional resources, support, and
connections. Additionally, he reported that these organizations
desire to bring programs to their regions to support local
entrepreneurs. He also spoke to leveraging university research
to support commercialization.
3:41:52 PM
MR. REYNOLDS, in response to a follow-up question from
Representative Saddler, replied that entrepreneurs in Alaska
struggle with connections, access to diverse capital, and
navigating the startup process. He reiterated that Alaska
typically ranks forty-ninth or fiftieth nationally as recipients
of SBIR and STTR funding.
3:43:32 PM
REPRESENTATIVE COULOMBE questioned the purpose of the annual
report cited on page 3, line 23 of the proposed legislation.
She asserted that the legislature should know how legislation
would impact businesses. Additionally, she asserted that the
Alaska Chamber typically reports to the legislature how proposed
legislation might affect businesses.
3:44:28 PM
REPRESENTATIVE KY HOLLAND, Alaska State Legislature, as prime
sponsor of HB 30, stated that the focus of the report would be
the impact on new businesses and "to what degree ... legislation
is helping create new business opportunities." He provided
anecdotes about people outside of Alaska doing work that he
suggested could be accomplished by Alaska residents.
3:45:58 PM
REPRESENTATIVE HOLLAND, in response to a question from
Representative Coulombe regarding fiscal notes, replied that
there are two new fiscal notes. He stated his expectation that
the proposed legislation would cost money. He reminded the
committee that the legislature had appropriated zero dollars for
the DCCED line item in previous years. He explained that the
largest change in the fiscal note was due to "the impact of
getting rid of the business license fee," reinstating
approximately $2 million of previously forgone revenue.
Additionally, he noted that in the previous committee of
referral, there was clarification made to the duties and scope
of the Office of Entrepreneurship, which allowed for the
elimination of three positions in the proposed legislation,
which significantly decreased the fiscal note. He explained
that the Office of Entrepreneurship was not meant to replicate
existing organizations as a "startup support center"; rather,
the intent was to look more strategically at connecting startups
with state programs. He also noted that he would have liked to
see an annual report on the purchasing activity of the State of
Alaska annually, but that was changed to every two years to
align with the existing two-year cycle of purchasing reports.
3:48:32 PM
CO-CHAIR FIELDS suggested that the proposed report should say
"may" instead of "shall".
3:48:46 PM
REPRESENTATIVE HOLLAND clarified that the current report is a
longstanding report on purchasing activity by request of the
legislature. He explained that CSHB 30(STA) took the existing
purchasing report in AS and added a couple new elements.
CO-CHAIR FIELDS thanked the bill sponsor for his clarification.
3:49:27 PM
REPRESENTATIVE HOLLAND, in response to a question from
Representative Saddler on the difference between the duties of
the proposed Office of Entrepreneurship and DCCED, offered
agreement that the broad scope was already outlined under
statute. He stated that CSHB 30(STA) would bring "specificity
and focus" to the startup system and new businesses, noting that
new businesses create 89 percent of "net new job creation,"
creating approximately 5,000 jobs a year. He asserted that
DCCED takes care of business licensing and corporate
transactions. He drew committee members to goal two and goal
three of CEDS, which spoke to economic and entrepreneurial
diversification, and stated that the Office of Entrepreneurship
would put these goals into action.
3:52:00 PM
REPRESENTATIVE SADDLER questioned the need to prepare reports on
past legislation and suggested that BASIS already served this
function. He referred to page 3 of HB 30.
3:52:32 PM
REPRESENTATIVE HOLLAND directed committee members' attention to
line 24 of the proposed legislation and asserted that BASIS
provides a lot of "raw data" but does not analyze the impacts of
legislation, to what degree it supports, hinders, or otherwise
affects new businesses.
[HB 30 was heard and held.]
HB 75-PERM FUND; EMPLOYMENT; ELIGIBILITY
3:53:49 PM
CO-CHAIR FIELDS announced that the final order of business would
be HOUSE BILL NO. 75, "An Act relating to national criminal
history record checks for certain employees of the Department of
Revenue; relating to allowable absences for eligibility for a
permanent fund dividend; relating to the confidentiality of
certain information provided on a permanent fund dividend
application; relating to electronic notice of debt collection
executed on a permanent fund dividend; and providing for an
effective date." [Before the committee was CSHB 75(STA).]
3:54:23 PM
CO-CHAIR FIELDS opened public testimony on CSHB 75(STA). After
ascertaining that there was no one who wished to testify, he
closed public testimony.
3:54:46 PM
REPRESENTATIVE COULOMBE asked for clarification on the status of
National Oceanic and Atmospheric Administration (NOAA) employees
under CSHB 75(STA).
3:55:04 PM
REPRESENTATIVE JEREMY BYNUM, Alaska State Legislature, stated
that his office found additional information to justify the
inclusion of NOAA employees in the proposed legislation. He
deferred to Mr. Shaw.
3:55:33 PM
TREVOR SHAW, Staff, Representative Jeremy Bynum, Alaska State
Legislature, on behalf of Representative Bynum, prime sponsor of
HB 75, stated that he found many similarities between NOAA, the
United States Public Health Service (USPHS) and traditional
armed services. He explained that both NOAA and USPHS are
required to accept orders, with exceptions for extreme hardship
in case of life-threatening illness or the death of a family
member. Otherwise, he stated, officers would be subject to
disciplinary action should they decline their orders.
Additionally, he noted that officers are allowed to attend the
Naval War College and the Army War College. He stated that NOAA
and USPHS are entitled to receive Tri-Care benefits, tuition
assistance under the GI Bill, and Arlington National Cemetery
burials. He pointed out that the primary difference between
NOAA and USPHS and members of other armed services is that
members of NOAA and USPHS do not carry a firearm.
3:57:24 PM
CO-CHAIR FIELDS stated that upon discussion with the Permanent
Fund Dividend Division, it was discovered to be more
administratively efficient to keep the proposed legislation as
is with regards to potentially wealthy students returning home
from college out-of-state.
CO-CHAIR FIELDS entertained a motion.
3:58:02 PM
CO-CHAIR HALL moved to report CSHB 75(STA) out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, CSHB 75(STA) was reported out of the
House Labor and Commerce Standing Committee.
3:59:11 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
3:59 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2. HB30vB-SponsorStatement-HL&C.pdf |
HL&C 3/17/2025 3:15:00 PM |
HB 30 |
| 3. HB30vB-Sectional-HL&C.pdf |
HL&C 3/17/2025 3:15:00 PM |
HB 30 |
| 4. HB30vB-ExplanationofChanges-HL&C.pdf |
HL&C 3/17/2025 3:15:00 PM |
HB 30 |
| 6. HB30vB-Presentation-HL&C.pdf |
HL&C 3/17/2025 3:15:00 PM |
HB 30 |
| 7. Emerging Sectors-CEDS.pdf |
HL&C 3/17/2025 3:15:00 PM |
HB 30 |
| 8. Sections from CEDS.pdf |
HL&C 3/17/2025 3:15:00 PM |
HB 30 |
| Final 2022-2027 Alaska Statewide CEDS.pdf |
HL&C 3/17/2025 3:15:00 PM |
HB 30 |
| HB030CS(STA)-DCCED-CBPL-03-14-25.pdf |
HL&C 3/17/2025 3:15:00 PM |
HB 30 |
| I.pdf |
HL&C 3/17/2025 3:15:00 PM |
HB 30 |
| 5. HB30-Letters-Testimony Updated 3.17.2025.pdf |
HL&C 3/17/2025 3:15:00 PM |
HB 30 |
| HB030CS(STA)-DCCED-OOE-03-14-25.pdf |
HL&C 3/17/2025 3:15:00 PM |
HB 30 |