Legislature(2025 - 2026)ADAMS 519
05/12/2025 09:00 AM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB30 | |
| HB34 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 64 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 30 | TELECONFERENCED | |
| += | HB 34 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
May 12, 2025
9:09 a.m.
9:09:48 AM
CALL TO ORDER
Co-Chair Foster called the House Finance Committee meeting
to order at 9:09 a.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Andy Josephson, Co-Chair
Representative Calvin Schrage, Co-Chair
Representative Jamie Allard
Representative Jeremy Bynum
Representative Alyse Galvin
Representative Sara Hannan
Representative Will Stapp
Representative Frank Tomaszewski
MEMBERS ABSENT
Representative DeLena Johnson
Representative Nellie Unangiq Jimmie
ALSO PRESENT
Representative Ky Holland, Sponsor; Cameron Ebersold,
Staff, Representative Ky Holland.
PRESENT VIA TELECONFERENCE
Jacqueline Summers, Executive Director, Health Testbed
Innovative Enterprises, Anchorage.
SUMMARY
HB 30 OFFICE OF ENTREPRENEURSHIP
HB 30 was HEARD and HELD in committee for further
consideration.
HB 34 AK INNOVATION COUNCIL
HB 30 was HEARD and HELD in committee for further
consideration.
SB 64 ELECTIONS
SB 64 was SCHEDULED but not HEARD.
Co-Chair Foster reviewed the meeting agenda.
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."
9:11:03 AM
REPRESENTATIVE KY HOLLAND, SPONSOR, explained that both HB
30 and HB 34 were intended to begin and expand a
conversation on diversifying the economy, supporting
emerging sectors, and aligning state actions with the
vision, plans, and recommendations. He noted that the
recommendations were already articulated in the
Comprehensive Economic Development Strategy (CEDS) [created
by the Department of Commerce, Community and Economic
Development (DCCED)] and other similar reports. He
explained that the purpose was to establish a framework by
which strategies could be developed and plans supported, as
well as to strengthen the existing economic ecosystem.
Representative Holland stated that HB 30 created the Office
of Entrepreneurship and was modeled after efforts in other
states that recognized the role of state government in
fostering and supporting startups. The bill required that a
small 5 percent portion of the state's economic development
investments be directed specifically toward startups. He
explained that a past version of the bill also required
that an impact study be conducted to determine the extent
to which businesses younger than five years were accessing
state contracts and opportunities. However, he intended to
eliminate the reporting requirement and its accompanying
fiscal note after receiving negative community feedback on
the requirement.
Representative Holland emphasized that the overall goal of
HB 30 was to ensure that DCCED provided renewed focus and
support for startups. He stated that ten years prior, the
department had operated with approximately $2 million and a
number of staff dedicated to economic development, but the
resources had since been reallocated or eliminated. The
state's current allocation for economic development was
zero dollars, which meant that Alaska was not investing in
emerging sectors. He explained that HB 30 was an attempt to
restore modest support. The bill carried a fiscal note
(copy on file) for a small number of staff positions, but
the positions already existed and were vacant. He clarified
that the positions were transferred to the Office of the
Governor and remained unfilled.
Representative Holland stated that he stood behind the
fiscal note and stressed the importance of investing in
Alaska's future economy and job opportunities. He explained
that the bill was intended to re-engage the state in
creating opportunities that would encourage families to
remain in Alaska and give students reasons to be optimistic
about their future in the state. He noted that Ms.
Jacqueline Summers was available online if committee
members had more detailed questions.
9:15:11 AM
Co-Chair Foster OPENED public testimony.
Representative Allard stated that she needed to step out
for a meeting and emphasized that she did not want anyone
to interpret her departure as rudeness. She would return as
soon as the other meeting concluded.
Co-Chair Foster explained that individuals wishing to
provide written testimony on HB 30 could do so by emailing
the House Finance Committee.
9:16:45 AM
JACQUELINE SUMMERS, EXECUTIVE DIRECTOR, HEALTH TESTBED
INNOVATIVE ENTERPRISES, ANCHORAGE (via teleconference),
indicated that she supported Representative Holland's
statements. She shared that she had been conducting a
series of informal interviews and her research confirmed
that entrepreneurship played an important role in
developing new ideas and solving problems in Alaska. She
noted that entrepreneurs often became business owners by
accident and needed support to succeed. She added that
without assistance, entrepreneurs frequently made mistakes
that jeopardized their success. She emphasized that HB 30
and HB 34 were important for supporting entrepreneurship
efforts. She expressed her strong support for both bills.
She indicated that she would remain available for
questions.
9:17:44 AM
Co-Chair Foster CLOSED public testimony.
Co-Chair Josephson asked Representative Holland to clarify
whether the amendment he intended to propose would leave
the bill unchanged except for striking the annual report
requirement on page 4.
Representative Holland responded in the affirmative. He
deferred to his staff for additional detail.
CAMERON EBERSOLD, STAFF, REPRESENTATIVE KY HOLLAND,
explained that the bill contained two separate reporting
requirements. The first was a procurement report conducted
by the Department of Administration (DOA). As currently
written, the bill required the department to identify
whether businesses less than five years old in Alaska were
receiving procurement contracts. The provision carried a
fiscal note of $500,000 [FN1 by DOA, control code
Ztaay](copy on file) for an impact study, which the
possible amendment would remove. The second report that
examined how legislation affected new businesses would
remain unchanged.
Representative Galvin expressed support for the concept
behind HB 30. She agreed that Alaska needed to explore new
types of revenue sources. She noted that other states had
invested strategically in order to generate greater long-
term returns and she thought that Alaska needed to follow a
similar model. She reminded the committee that the state
was expected to experience reduced revenue from oil and gas
over the next three to four years because of ongoing
investment in growth. She emphasized that the state must
consider innovative approaches to diversify its revenue
base.
Representative Stapp recommended that if Representative
Holland intended to introduce an amendment, the committee
should instead consider adopting a committee substitute
(CS).
Co-Chair Foster agreed that the suggestion was reasonable
and that the change would be easy to incorporate.
Representative Holland noted there had been questions from
members during a previous committee meeting and he had made
a document available earlier that day (copy on file)[titled
"HB 30 HFIN questions"] that he hoped had answered the
questions.
Co-Chair Foster set an amendment deadline for HB 30 for
Thursday, May 15, 2025, at 5:00 p.m. He noted that it was
likely that the committee would consider a CS for the bill.
9:23:02 AM
AT EASE
9:24:08 AM
RECONVENED
Co-Chair Foster relayed that the committee would likely
incorporate the amendment into the bill rather than
considering a CS.
Co-Chair Josephson observed that subsections (4), (5), and
(6) of the bill were being repealed, but when he looked at
the 2024 version of the statutes, the subsections did not
appear to exist. He commented that the matter could be
addressed offline but asked if Representative Holland could
clarify.
Mr. Ebersold asked Co-Chair Josephson if he could repeat
the question.
Co-Chair Josephson clarified that the bill repealed a law
on page 4, he did not see the laws being repealed in the
2024 version of the statutes. He observed that the
subsections were added on page 2 of the bill. He suggested
that he might be missing something.
Mr. Ebersold responded that the subsections were added by
the bill. He explained that the House Labor and Commerce
Committee had introduced and adopted an amendment that
sunset the program after five years. He explained that the
sections being repealed were the same sections being added
in Section 3, which established the Office of
Entrepreneurship.
HB 30 was HEARD and HELD in committee for further
consideration.
HOUSE BILL NO. 34
"An Act establishing the Alaska Innovation Council;
and relating to financial disclosures for members of
the Alaska Innovation Council."
9:26:37 AM
Representative Holland explained that HB 34 was a
macroeconomic bill. He remarked that HB 30 focused on the
success of individuals, their ability to access resources,
and their potential to grow and expand businesses and their
impact in Alaska, while HB 34 provided a broader
perspective by establishing the Alaska Innovation Council
(AIC). He relayed that the council would bring together key
leadership across the state, including the university, the
State of Alaska, entrepreneurs, industry leaders, and
providers of risk capital. The economic leaders would
collaborate to identify strategic opportunities for Alaska,
determine the unique areas where Alaska had the potential
to grow, and establish the policies and programs necessary
to support diversification of the economy and the growth of
emerging sectors.
Representative Holland emphasized that initiatives already
identified as priorities included energy, technology,
mariculture, logistics, and unmanned aerial vehicles. He
asserted that the priority areas represented the future of
Alaska's economy and required support to develop and
expand. He noted that over the past ten years, 89 percent
of net new job creation had come from businesses less than
five years old. He stressed the importance of creating new
jobs in emerging industries that would attract young
workers and would provide the foundation for the state's
future.
Representative Holland clarified that traditional
industries such as oil, gas, and mining would remain
essential components of the state's economy. However,
growth would come from emerging sectors identified in the
state's economic development strategy. He remarked that
Alaska needed to position itself where the future
opportunities lay, while continuing to invest in its legacy
economic engines. He stated that AIC would serve as the
convening body to bring together both public and private
leadership and resources to identify, prioritize, and
implement actions that would move the state forward.
Representative Holland explained that the bill was modeled
after the Oregon Innovation Council, which began with
similar legislation to create convening power. He added
that Oregon had leveraged the council into an economic
driver that fostered significant growth. He noted that the
model followed examples in Alberta and Calgary, where a
decline caused by the loss of 35 percent of oil, gas, and
mining workforce and leadership had been reversed through a
strategy of identifying innovation opportunities,
partnering with universities, and aligning local talent. He
remarked that Calgary had transformed into an economic
leader in North America.
Representative Holland compared Alberta's economy to
Alaska's, noting that both were remote and dependent on
natural resources. He explained that Alberta had built on
its resource base to create a future economy and had become
a model for innovation, entrepreneurship, job growth, and
new business creation. He hoped to build a similar model in
Alaska.
9:31:34 AM
Co-Chair Foster OPENED public testimony. He asked if Ms.
Summers wished to provide testimony.
9:31:59 AM
Ms. Summers remarked that there was an unbelievable
opportunity to look at the future for Alaska, but a guiding
group was needed to lead the work. She observed that many
efforts were underway in the state but the efforts were not
coordinated or aligned toward a common goal. She asserted
that the council would be instrumental in avoiding a
"scattershot" approach and would enable a focused effort
that could gain traction and succeed. She reiterated her
support for the bill.
Co-Chair Foster thanked Ms. Summers and asked for
confirmation that she served as the executive director of
the Health Testbed Innovation Enterprises in Anchorage.
Ms. Summers responded in the affirmative and added that she
also conducted consulting work.
9:33:10 AM
Co-Chair Foster CLOSED public testimony.
Representative Galvin understood that several similar
organizations and federal programs already existed,
including the federal Small Business Innovation Research
Program and the U.S. Economic Development Administration.
She asked how AIC would work with federal entities to
ensure that the efforts were complementary rather than
duplicative.
Representative Holland responded that the two organizations
referenced by Representative Galvin were among a dozen or
more similar entities. He noted that each program carried
out important work but the essential piece that was missing
was the convening ability to bring all of the organizations
into the same room. He stressed that it was essential to
link and leverage the programs. He explained that the
strength of a startup ecosystem came from helping people
identify the next relevant program or step and guiding them
through the process. He stated that building an economic
ecosystem was different from replicating existing work.
Representative Holland relayed that there were no current
efforts to convene the organizations. He compared the need
to convene the organizations to a similar need at the
Alaska Workforce Investment Board (AWIB), which linked and
leveraged individual workforce development efforts. He
emphasized that connecting the development efforts provided
pathways for students moving from high school to dual
credit, into post-secondary training, and for those with
apprenticeship or military training who sought to complete
degrees. He asserted that the same type of coordinated
pathway was needed for business development. He added that
several programs were in danger due to lack of funding and
could be lost soon. He remarked that while avoiding
duplication was important, the more urgent matter was the
strategic discussion of what would happen if the essential
programs disappeared.
Co-Chair Foster set an amendment deadline for HB 34 for
Thursday, May 15, 2025, at 5:00 p.m.
HB 34 was HEARD and HELD in committee for further
consideration.
9:39:23 AM
Co-Chair Foster reviewed the meeting agenda for the
afternoon.
ADJOURNMENT
9:39:47 AM
The meeting was adjourned at 9:39 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 30 HFIN questions 051225.pdf |
HFIN 5/12/2025 9:00:00 AM |
HB 30 |
| HB 30 Public Testimony Rec'd by 051225.pdf |
HFIN 5/12/2025 9:00:00 AM |
HB 30 |