04/17/2024 03:15 PM House LABOR & COMMERCE

                  HB 325-BUSINESS LICENSE FEES                                                                              
                                                                                                                                
CHAIR SUMNER announced that the  final order of business would be                                                               
HOUSE BILL  NO. 325, "An  Act relating to business  license fees;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
5:04:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  moved to  adopt the  proposed committee                                                               
substitute (CS) for HB 325,  Version 33-LS1090\S, Nauman, 4/2/24,                                                               
as the  working document.   There being  no objection,  Version S                                                               
was before the committee.                                                                                                       
                                                                                                                                
5:04:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GENEVIEVE  MINA,  Alaska  State  Legislature,  as                                                               
prime sponsor, introduced HB 325 to the committee.                                                                              
                                                                                                                                
5:05:06 PM                                                                                                                    
                                                                                                                                
REMINGTON  PINELL, Staff,  Representative Genevieve  Mina, Alaska                                                               
State  Legislature,  on  behalf  of  Representative  Mina,  prime                                                               
sponsor, began  by reading the  sectional analysis for  Version S                                                               
[included in  committee packet], which read  as follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Section 1:  Removes "investigation fees" as  a fee type                                                                    
     that  is  set  in  regulation  by  the  department  for                                                                    
     professional licenses.                                                                                                     
     Section  2:  Removes   the  definition  of  "regulatory                                                                    
     costs" from AS 08.01.065(c).                                                                                               
     Section  3: The  definition  of  "regulatory costs"  is                                                                    
     relocated to  this section with an  added clarification                                                                    
     that "regulatory  costs" does not  include disciplinary                                                                    
     investigations   or    actions   involving   unlicensed                                                                    
     practice  or legal  and  actual  costs associated  with                                                                    
     complaints, hearings, mediation, and settlement.                                                                           
     Sections 4-10 make conforming changes:                                                                                     
     Section    4:   Removes    reference   to    fees   for                                                                    
     investigations.                                                                                                            
     Section  5:   Removes reference  to investigation  fees                                                                    
     for massage therapists.                                                                                                    
     Sections  6 &  7:  Removes  reference to  investigation                                                                    
     fees for marine pilots.                                                                                                    
     Section 8: Replaces  investigation fees with evaluation                                                                    
     fees  for  nursing  home administrators.  This  is  for                                                                    
     clarity, as "investigation"  means "evaluation" in this                                                                    
     context.                                                                                                                   
     Section 9: Replaces  investigation fees with evaluation                                                                    
     fees  for  pharmacists  and  pharmacies.  This  is  for                                                                    
     clarity, same as Section 8.                                                                                                
     Section   10.   Replaces    investigation   fees   with                                                                    
     evaluation  for  veterinarians.  This is  for  clarity,                                                                    
     same as Section 8.                                                                                                         
     Section 11: HB 325 Version  B specified that all first-                                                                    
     time business license  fees would be set at  $0. HB 325                                                                    
     Version  S   removes  this  and  instead   adds  a  new                                                                    
     subsection specifying  a new  exemption for  paying the                                                                    
     full   business  fee:   if   a  business   is  a   sole                                                                    
     proprietorship,  and  that   sole  proprietor  receives                                                                    
     public assistance, then the fee is $0.                                                                                     
     Section 12. Sets the effective date to July 1, 2024                                                                        
                                                                                                                                
5:07:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MINA  explained that Version S  aims to strengthen                                                               
Alaska's   economy  by   empowering  economically   disadvantaged                                                               
Alaskans  to receive  public benefits  to pursue  entrepreneurial                                                               
endeavors.   She said  that currently,  business license  fees in                                                               
Alaska are prohibitive  for some Alaskans and  emphasized that HB
, Version S, is specific  to Alaskans who already receive some                                                               
sort of public benefit.                                                                                                         
                                                                                                                                
5:10:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  asked how  the proposed  business license                                                               
price would increase levels of entrepreneurship in Alaska.                                                                      
                                                                                                                                
REPRESENTATIVE MINA said that Version  S would waive the business                                                               
license  fee of  $50 altogether  for qualified  individuals.   In                                                               
response  to a  follow-up question,  she said  she believed  that                                                               
added  bureaucracy could  be an  impediment to  those wishing  to                                                               
start a business.                                                                                                               
                                                                                                                                
5:12:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK asked what the  cost of a business license                                                               
was during the COVID-19 pandemic.                                                                                               
                                                                                                                                
REPRESENTATIVE  MINA explained  that business  license fees  were                                                               
waived altogether during the pandemic.                                                                                          
                                                                                                                                
5:13:23 PM                                                                                                                    
                                                                                                                                
SYLVAN ROBB,  Director, Division  of Corporations,  Business, and                                                               
Professional  Licensing,  Department  of  Commerce,  Community  &                                                               
Economic  Development,  (DCCED),  confirmed  that  Representative                                                               
Mina's  answer was  correct and  explained that  business license                                                               
fees in Alaska  were waived entirely from April  3, 2020, through                                                               
January 31, 2023.                                                                                                               
                                                                                                                                
5:13:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CARRICK  asked  whether the  number  of  licenses                                                               
increased during the pandemic.                                                                                                  
                                                                                                                                
MS. ROBB said she would follow up with an answer later.                                                                         
                                                                                                                                
5:14:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX inquired  about the  fiscal note  associated                                                               
with HB 325.                                                                                                                    
                                                                                                                                
MS.  ROBB  responded  that  while  the  division  handles  itself                                                               
through business license fees, the  majority of its funding comes                                                               
from the general fund.                                                                                                          
                                                                                                                                
5:15:31 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced that HB 325, Version S, was held over.