Legislature(2025 - 2026)GRUENBERG 120
04/08/2025 03:15 PM House STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| HB104 | |
| HB58 | |
| HB35 | |
| HB139 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 58 | TELECONFERENCED | |
| += | HB 35 | TELECONFERENCED | |
| *+ | HB 104 | TELECONFERENCED | |
| *+ | HB 139 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 139-RENT GOVERNORS MANSION
4:42:35 PM
CHAIR CARRICK announced that the final order of business would
be HOUSE BILL NO. 139, "An Act relating to renting the
governor's mansion; and providing for an effective date."
4:43:05 PM
REPRESENTATIVE WILL STAPP, Alaska State Legislature, as prime
sponsor, introduced HB 139. He said the purpose of the bill is
to start looking at different programs the state utilizes for
cost savings. He said the governor's mansion is an asset that
the state funds.
4:44:45 PM
BERNARD AOTO, Staff, Representative Will Stapp, Alaska State
Legislature, on behalf of Representative Stapp, prime sponsor,
presented the sectional analysis for HB 139 [included in the
committee file], which read as follows [original punctuation
provided]:
Section 1: Amends AS 44.19 (Office of the Governor)
and adds a new section (AS 44.19.032) directing that
the governor's mansion shall be rented on a short term
basis when the legislature is not in session.
Section 2: Sets an immediate effective date
4:45:38 PM
CHAIR CARRICK asked Mr. Relay to do a quick overview of the
fiscal note.
4:45:54 PM
STUART RELAY, Staff, Representative Ashley Carrick, Alaska State
Legislature, provided an overview of the fiscal note. This bill
has an indeterminate fiscal note but provides an analysis
[included in the committee file], which read as follows
[original punctuation provided]:
This bill requires the Office of the Governor to rent
the governor's mansion on a short-term basis when the
legislature is not in session, and the governor has
not reserved the mansion in advance. The Office of the
Governor would be required to adopt regulations and
establish a system for making the governor's mansion
available for a person or an entity to rent and to
collect the fee charged for renting the mansion.
The fiscal impact of this legislation cannot be
determined because occupancy by the Governor cannot
reliably be determined in advance and the mansion must
be available for the governor's use on short notice,
both during and outside of the legislative session.
Added costs associated with unsupervised occupancy
would include staff time to communicate with the
renter, to manage the bookings and to manage access to
the building, increased insurance and maintenance cost
that includes wear and tear on the facility and its
furnishings, potential modifications to the historic
building to ensure the privacy and security of the
residents and staff, and to complete security sweeps
after an event or occupancy of the building.
4:47:25 PM
CHAIR CARRICK questioned limiting the legislation knowing that
it must be available, and she asked why it would be rentable
only on non-session days.
REPRESENTATIVE STAPP replied the intent was to make it as least
prescriptive as possible. He wanted it to be the least
disruptive. He said, for example, that the governor's mansion
could host weddings to generate revenue. He said he has no
issue with amendments to monetize this asset.
CHAIR CARRICK asked whether it is known how many days have been
spent in Juneau at the mansion by governors while in office.
REPRESENTATIVE STAPP said it varies by governor. He said that
no governor in his lifetime has spent an entire year in Juneau.
4:49:46 PM
REPRESENTATIVE STORY pondered what the governor may think of the
idea.
REPRESENTATIVE STAPP said he mentioned it for a few years, and
he indicated the response was, "We will see how it goes."
REPRESENTATIVE STORY asked the bill sponsor to confirm that the
response to the idea was to see how it goes.
REPRESENTATIVE STAPP replied that he cannot remember the exact
terminology that was used, but that was his interpretation.
4:51:19 PM
REPRESENTATIVE MCCABE said that when looking at the legislative
assembly building the same discussion was had. At the end of
day, the settlement was that if a legislator wants to store
stuff there, then the legislator will pay a fee. He asked if
the bill would require the removal of the governor's property.
He asked, "How would this be done?"
REPRESENTATIVE STAPP said that he left regulations up to the
Office of Governor. It would be the least disruptive and
prescriptive as possible.
REPRESENTATIVE MCCABE said that it is an interesting idea. He
offered his understanding that all but four or five states have
a governor's mansion. He asked whether this would be managed by
the legislature or the governor.
MR. AOTA confirmed that all but five states have a governor's
mansion. Alabama, Michigan, New Jersey, and North Carolina have
two state-owned residences for their executives. The language
in bill would allow the Office of the Governor to manage the
regulations.
REPRESENTATIVE MCCABE asked if any other states do this.
MR. AOTA replied that in his research he did not find any other
states. He said several states allow the executive residence to
be used for special events with a rental fee.
4:55:21 PM
REPRESENTATIVE VANCE asked if the vague fiscal note has been
explored and why it wasn't done well.
REPRESENTATIVE STAPP said that in his experience with fiscal
notes, sometimes the Office of Management & Budget (OMB) writes
fiscal notes like they don't like the idea. He hasn't had a
chance to talk with the OMB. He said that he will explore it
further.
4:56:33 PM
REPRESENTATIVE VANCE said that she is feeling cranky about the
fiscal notes; over time there is an inconsistency with fiscal
notes. She looked at another historic house; Jorgenson house is
rented $600-800 a night in the summertime. Also, they rent the
place for events. If OMB needed assistance, it could calculate
based off other rental portfolios. She talked about rental
mechanics and asked whether there is full-time staff on property
right now.
MR. AOTA confirmed that is correct, there are now people on site
that work in the governor's mansion. In fiscal year 2026 (FY
26), the budget for the mansion is $531,100 allocated for
personal services for a resident manager, a chef, and two
housekeepers.
REPRESENTATIVE VANCE said that this fiscal note would increase
insurance and maintenance costs. She asked if they have
insurance for public events now and whether this insurance would
cover rentals.
REPRESENTATIVE STAPP said it depends on how they would craft
regulations. The building does have insurance. He questioned
what the chef does in a full-time position during the summer.
REPRESENTATIVE VANCE said that she is a traditionalist and
doesn't want to rent out the mansion. She raised concerns about
fiscal notes and reiterated the desire for better crafted ones.
Noting that this is key to whether legislation gets forward
motion.
5:00:52 PM
CHAIR CARRICK said that while the House State Affairs Standing
Committee doesn't usually review fiscal notes closely, she
agreed that the fiscal note was inadequate.
5:01:25 PM
REPRESENTATIVE STORY commented that as a representative in
Juneau, she is proud of the capital building complex. The
governor's mansion is historic; she wants to see it treated as a
historic residence. It would be very important to protect the
investment the state has in this piece of history. She stated
that Juneau wants the governor, no matter what year, to feel
welcome in the city. She is hesitant to support the bill.
[HB 139 was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 139 Sponsor Statement version A.pdf |
HSTA 4/8/2025 3:15:00 PM |
HB 139 |
| HB 139 Ver A.pdf |
HSTA 4/8/2025 3:15:00 PM |
HB 139 |
| HB 139 Sectional Analysis version A.pdf |
HSTA 4/8/2025 3:15:00 PM |
HB 139 |
| HB 139 Fiscal Note OOG-HSE-4-03-25.pdf |
HSTA 4/8/2025 3:15:00 PM |
HB 139 |
| HB 139 Research FY 26 OMB Governor's House.pdf |
HSTA 4/8/2025 3:15:00 PM |
HB 139 |
| HB 35 HSTA Amendments 4-8-25.pdf |
HSTA 4/8/2025 3:15:00 PM |
HB 35 |