03/19/2025 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB123 | |
| SB79 | |
| HB30 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 132 | TELECONFERENCED | |
| += | HB 123 | TELECONFERENCED | |
| + | SB 79 | TELECONFERENCED | |
| += | HB 30 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 19, 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. 123
"An Act relating to vehicle rental taxes; relating to the
issuance of subpoenas related to tax records; and providing for
an effective date."
- MOVED HB 123 OUT OF COMMITTEE
SENATE BILL NO. 79
"An Act relating to wage payments."
- HEARD & HELD
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."
- MOVED CSHB 30(L&C) 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
PREVIOUS COMMITTEE ACTION
BILL: HB 123
SHORT TITLE: TAXATION: VEHICLE RENTALS, SUBPOENAS
SPONSOR(s): REPRESENTATIVE(s) MCCABE
03/05/25 (H) READ THE FIRST TIME - REFERRALS
03/05/25 (H) L&C, FIN
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)
03/19/25 (H) L&C AT 3:15 PM BARNES 124
BILL: SB 79
SHORT TITLE: PAYMENT OF WAGES; PAYROLL CARD ACCOUNT
SPONSOR(s): LABOR & COMMERCE
01/31/25 (S) READ THE FIRST TIME - REFERRALS
01/31/25 (S) L&C
02/07/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/07/25 (S) Heard & Held
02/07/25 (S) MINUTE(L&C)
02/12/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/12/25 (S) Moved SB 79 Out of Committee
02/12/25 (S) MINUTE(L&C)
02/14/25 (S) L&C RPT 2DP 2NR
02/14/25 (S) DP: BJORKMAN, GRAY-JACKSON
02/14/25 (S) NR: MERRICK, YUNDT
02/24/25 (S) TRANSMITTED TO (H)
02/24/25 (S) VERSION: SB 79
02/26/25 (H) READ THE FIRST TIME - REFERRALS
02/26/25 (H) L&C
03/19/25 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 30
SHORT TITLE: OFFICE OF ENTREPRENEURSHIP
SPONSOR(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
03/17/25 (H) Heard & Held
03/17/25 (H) MINUTE(L&C)
03/19/25 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE KEVIN MCCABE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, answered questions during
the hearing on HB 123.
BRANDON SPANOS, Deputy Director
Tax Division
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
123.
SENATOR JESSE BJORKMAN
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 79 on behalf of the Senate
Labor and Commerce Standing Committee, prime sponsor of SB 79,
on which Senator Bjorkman serves as chair.
SAVAYA BIEBER, Staff
Senator Jesse Bjorkman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Gave the sectional analysis for SB 79 on
behalf of the bill sponsor, the Senate Labor and Commerce
Standing Committee, on which Senator Bjorkman serves as chair.
AMY MILLER, Senior Director
Government Affairs
Automatic Data Processing, Inc.
Washington, D.C.
POSITION STATEMENT: Gave invited testimony in support of SB 79.
REPRESENTATIVE KY HOLLAND
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, answered questions during
the hearing on HB 30.
TYLER ARNOLD, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 30.
ACTION NARRATIVE
3:15:35 PM
CO-CHAIR CAROLYN HALL called the House Labor and Commerce
Standing Committee meeting to order at 3:15 p.m.
Representatives Nelson, Saddler, Burke, Coulombe, Carrick,
Fields, and Hall were present at the call to order.
HB 123-TAXATION: VEHICLE RENTALS, SUBPOENAS
3:17:02 PM
CO-CHAIR HALL announced that the first order of business would
be HOUSE BILL NO. 123, "An Act relating to vehicle rental taxes;
relating to the issuance of subpoenas related to tax records;
and providing for an effective date."
3:17:17 PM
REPRESENTATIVE KEVIN MCCABE, Alaska State Legislature, as prime
sponsor, gave a recap of HB 123, asserting that it would be a
"much needed fix to Alaska's broken vehicle rental tax system."
He explained that the bill was becoming increasingly important
due to new Internal Revenue Service (IRS) requirements for Turo
Inc. hosts. He clarified that his primary purpose for
sponsoring HB 123 was to protect people in Alaska who could be
harmed financially from the collection of retroactive taxes. He
stated that the percentage tax decrease in HB 123 was agreed
upon by members of the industry, including Turo Inc. and
Enterprise Rent-A-Car. He noted that there were letters of
support in committee packets from industry members.
REPRESENTATIVE MCCABE cautioned committee members that Alaska
could be subject to a lawsuit should the vehicle rental tax
system remain unchanged, and that a "big rental car company
could sue Alaska or quit paying taxes." He reminded committee
members that a court case, a judge had already ruled that rental
platform companies, such as Turo Inc., and rental car companies
were "similarly situated" from a legal standpoint. He stated he
would follow up with the committee with a legal memo from the
Department of Law (DOL) asserting that Alaska would lose against
a rental car company in court.
3:21:03 PM
CO-CHAIR FIELDS shared his concern with Turo Inc. hosts owing
taxes should there be a lawsuit. He asked whether HB 123 would
obviate this concern.
3:21:31 PM
REPRESENTATIVE MCCABE replied yes. He referenced Alaska Statute
(AS) stating that Turo Inc. should have been paying a tax and
further stated that the courts would put people in Alaska at
risk. He noted that there are approximately 1,500 people that
would be affected by a potential lawsuit and approximately
$6,000 that is owed.
3:23:02 PM
CO-CHAIR FIELDS offered his appreciation for HB 123.
3:23:16 PM
CO-CHAIR HALL opened public testimony on HB 123. After
ascertaining that there was no one who wished to testify, she
closed public testimony.
3:23:42 PM
REPRESENTATIVE COULOMBE noted that the fiscal note showed a
revenue change of over $1 million. She queried whether it was a
deficit.
3:24:24 PM
BRANDON SPANOS, Deputy Director, Tax Division, Department of
Revenue (DOR), answered that the fiscal note for HB 123 was
indeterminate. He explained that the platforms do not currently
pay taxes; rather, the individual would pay the tax. He
additionally explained that retail rental companies are paying
taxes. He noted that the reduction shown on page 2 of the
fiscal note is representative of the proposed rate change from
10 percent to 9 percent. He further explained that page 1 of
the fiscal note is indeterminate, as it is unknown how much of
an increase would result from the new 7 percent tax proposition
on the platforms.
3:25:24 PM
REPRESENTATIVE MCCABE noted that DOR does not know what would be
collected from Turo Inc., as the company is not currently taxed.
He further noted that DOR is uncertain whether the proposed
legislation would bring a revenue increase or be revenue
neutral. He offered his belief that it would not bring a
decrease in revenue. He suggested that after passage of the
legislation, the State of Alaska could look at adjusting the
taxes. He reminded committee members that the money collected
would go towards the Department of Transportation & Public
Facilities (DOT&PF) and the state parks system.
3:26:59 PM
REPRESENTATIVE COULOMBE clarified that the state is not
necessarily losing revenue. She referenced HB 123, stating that
at face value, it does appear to be a loss of revenue, but in
actuality, the fiscal impact is unknown.
3:27:41 PM
REPRESENTATIVE CARRICK moved to adopt Amendment [1] to HB 123,
labeled 34-LS0551\I.2, Nauman, 3/14/25, which read as follows:
Page 2, line 1:
Delete "(1)"
Page 2, lines 2 - 5:
Delete "not arranged through a vehicle rental
platform; or
(2) seven percent of the total"
Insert ", including"
3:27:47 PM
CO-CHAIR FIELDS objected.
3:27:51 PM
REPRESENTATIVE CARRICK explained that Amendment [1] would remove
the tiered tax structure in HB 123 and would add the peer-to-
peer car sharing platforms, and their own definition, at a tax
of 9 percent and would continue the reduction in traditional car
rentals at 9 percent. She shared her understanding that Turo,
Inc. and Enterprise Rent-A-Car had come to "some sort of grand
bargain agreement." She shared her concern about the potential
drop in revenue from traditional car rentals and the subsequent
decrease in state parks funding. She opined that it would be
reasonable for all rentals in Alaska to pay an equivalent tax.
She noted that ultimately it is the end consumer who pays the
tax, not the person or company who owns the vehicle. She
further noted that Turo, Inc. had testified previously that it
"shares" cars, it does not "rent" cars which she asserted was
a misnomer. She noted that both traditional car rental
companies and Turo, Inc. car owners have unique business
expenses. She asserted that Amendment [1] would preserve
revenue while maintaining an overall tax reduction. She offered
her desire to ensure equivalent rates for the end consumer.
3:30:56 PM
CO-CHAIR FIELDS concurred with Representative Carrick. He
stated that parity would be ideal without question, but that the
committee must acknowledge the reality of what the legislature
could do in the face of serious legal implications. He stated
that although the amendment was his preferred policy, he would
vote against it in the interest of advancing the bill.
3:31:51 PM
REPRESENTATIVE COULOMBE offered her agreement with Co-Chair
Fields. She reiterated that there would be a good chance that
there would be no loss of revenue. She stated that she would be
voting against the amendment.
3:32:08 PM
REPRESENTATIVE MCCABE noted that there was currently a 3 percent
tax levied on motorhomes. He noted that Enterprise Rent-A-Car
does not depend on airport services.
3:33:02 PM
REPRESENTATIVE CARRICK stated that she would support the
proposed legislation in either case but that she would prefer to
discuss it with transparency. She opined that policy decisions
should be made with respect to the end consumer, not based on
any particular company. She offered appreciation for the
companies that had contributed to the making of the proposed
legislation.
3:33:54 PM
CO-CHAIR FIELDS maintained his objection to Amendment [1] to HB
123.
A roll call vote was taken. Representative Carrick voted in
favor of the motion to adopt Amendment 1 to HB 123.
Representatives Saddler, Burke, Nelson, Coulombe, Fields, and
Hall voted against it. Therefore, Amendment 1 failed to be
adopted by a vote of 1-6.
3:34:38 PM
REPRESENTATIVE MCCABE thanked the committee for the opportunity
to present HB 123 and offered his strong belief in protecting
the people of Alaska.
3:35:10 PM
REPRESENTATIVE SADDLER offered his support for the proposed
legislation.
3:35:44 PM
REPRESENTATIVE NELSON thanked the bill sponsor for the proposed
legislation.
CO-CHAIR HALL entertained a motion.
3:36:05 PM
CO-CHAIR FIELDS moved to report HB 123 out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, HB 123 was reported out of the House
Labor and Commerce Standing Committee.
3:36:37 PM
The committee took an at-ease from 3:36 p.m. to 3:39 p.m.
SB 79-PAYMENT OF WAGES; PAYROLL CARD ACCOUNT
[Contains discussion of HB 99.]
3:39:13 PM
CO-CHAIR HALL announced that the next order of business would be
SENATE BILL NO. 79, "An Act relating to wage payments."
3:39:48 PM
SENATOR JESSE BJORKMAN, Alaska State Legislature, presented SB
79 on behalf of the bill sponsor, the Senate Labor and Commerce
Standing Committee, on which Senator Bjorkman serves as chair.
He gave the sponsor statement for SB 79 [included in the
committee file], which read as follows [original punctuation
provided]:
Senate Bill 79 would allow employers to credit wages
to an employee on a payroll card account if an
employee has voluntarily authorized this, or if an
employee has not authorized deposit of their wages to
a specified account. This legislation gives employers
another option to pay their employees that could be
less expensive than other forms of payment and avoids
the difficulties of distributing paper checks.
SB 79 requires employers to be transparent when giving
employees the option to open a payroll card account.
The bill requires that employers provide employees
with a list of fees they could
encounter with the card and a cost-free method to
access their wages, as having an ATM card that is not
connected to a specific bank can require fees for
withdrawal. Employers also cannot offer a payroll card
that charges fees for an employee's application,
initiation, or participation in the account.
The bill gives employees that don't have a bank
account another option to accept payment of their
wages and a mechanism to avoid check cashing fees.
Payroll cards will be used without fees to pay for any
store purchases and one cost-free ATM withdrawal in an
amount up to the employee's net wages per pay-period.
I urge your support of Senate Bill 79
SENATOR BJORKMAN gave a brief history of the bill in the prior
legislature, noting that it failed to pass.
3:41:53 PM
SAVAYA BIEBER, Staff, Senator Jesse Bjorkman, Alaska State
Legislature, on behalf of the bill sponsor, the Senator Labor
and Commerce Standing Committee, on which Senator Bjorkman
serves as chair, gave the sectional analysis for SB 79 [included
in the committee file], which read as follows [original
punctuation provided]:
Section 1: Amends AS 23.10.040(a) to add AS 23.10.044
allowing an employer to pay via payroll
card account.
Section 2: AS 23.10 is amended by adding section AS
23.10.044
(a) Allows an employer to pay wages to a payroll card
account if an employee has voluntarily
authorized or if an employee has not authorized
deposit of their wages to a bank account.
(b) States an employer paying wages to a payroll card
account shall notify the employee of the
terms and conditions of payroll cards.
(c) A payroll card account must provide an employee
with at least one cost-free withdrawal
each pay period, up to the amount of the employee's
net wages, and a cost-free mechanism
to check the account balance through a phone system
and an additional unlimited cost-free
electric mechanism to check account balances.
(d) An employer may not offer a payroll card account
that charges fees for employee
application or participation in the account, or
issuance of an employee's card and one
replacement each calendar year, or transfer of
employee wages to the account, or point-ofsale
purchase transactions.
(e) An employer may not offer a payroll card account
unless the wages are insured on a passthrough
basis by an entity that insures bank deposits.
(f) This section protects employees' right to bargain
collectively through representatives of
their choice to establish mechanisms for payments of
wages.
(g) Defines "payroll card" and "payroll card account"
in statute.
3:43:57 PM
AMY MILLER, Senior Director, Government Affairs, Automatic Data
Processing, Inc. (ADP), gave invited testimony in support of SB
79. She explained that ADP was the nation's largest provider of
human capital management solutions, supporting Human Resources
(HR), payroll, and benefits administration. She reported that
ADP pays one in six employees in the United States. She stated
that SB 79 would eliminate the requirement that Alaska employers
offer paper paychecks as a form of wage payment. Under SB 79,
employers would have the right to offer wages in the form of
direct deposit or payment cards. She clarified that the
proposed legislation does not prevent employees from receiving
pay via direct deposit, nor does it prohibit employers from
distributing paper checks. She further noted that SB 79 would
protect the right to collective bargaining arrangements and
would not impact payments made to state employees.
MS. MILLER asserted that alternatives to paper checks are more
timely, consistent, and secure. She noted that some employers,
if forced to offer paper checks, may be unable to fulfill the
legal requirements of timely pay laws; weather events or slow
mail processing can prevent employees from picking up their
paper checks. She noted that employees who do not qualify for a
bank account could still receive a payroll card from their
employer, asserting that payroll cards offer employees consumer
protection and convenience. She stated that payroll cards can
be used for online bill payments, online shopping, and
electronic travel arrangements, such as flights, hotels, or
rental cars. She further stated that payroll cards provide
protection against unauthorized use and fraud and cannot be
overdrawn.
MS. MILLER asserted that nearly all government payments are
electronic, such as tax refunds, social security payments, et
cetera. She cited the National Automated Clearing House
Association, reporting that 93 percent of American workers are
paid via electronic direct deposit. She additionally reported
that electronic pay is the only permitted form of wage payment
in many states, and at least 30 states have already implemented
payroll cards. She concluded by stating that employees often
welcome the change and are adaptable. She urged committee
members to pass SB 79 and thanked the committee.
3:48:12 PM
REPRESENTATIVE COULOMBE asked whether state employees would be
eligible for payroll cards under the proposed legislation.
3:48:27 PM
MS. MILLER reiterated that SB 79 would not have an impact on the
payment of wages to State of Alaska employees and further stated
that it would be up to the state if it wanted to allow payroll
cards for its employees.
3:48:39 PM
REPRESENTATIVE CARRICK noted that Section 2, [subsection] (a) of
SB 79 would allow employers to either pay wages to payroll card
account if an employee has voluntarily authorized that action or
an employer would deposit wages into a bank account if an
employee has not authorized wages to be paid into a payroll card
account. She asked which scenario would be more common under
the proposed legislation.
3:49:35 PM
MS. MILLER offered her belief that the most popular of the two
scenarios would be the direct deposit and noted that most
employees were already on a direct deposit option. She
explained that the payroll card would serve as an alternative
for those who are "unbanked." Additionally, she explained that
unbanked individuals who receive a payroll card could make
purchases online.
3:50:12 PM
REPRESENTATIVE COULOMBE asked whether an employee would receive
a single reloadable payroll card or a new payroll card every
payday.
MS. MILLER replied that the employee would receive a reloadable
payroll card.
REPRESENTATIVE COULOMBE noted that the legislation prohibits
employers from offering a payroll card account that would charge
fees. She asked who would be responsible for the payroll card
fees.
MS. MILLER responded that the issuer, such as Visa or
MasterCard, would be responsible for the payroll card fees. She
offered her belief that mobile check cashing and cash reloading
are typical kinds of associated fees. She further stated that
employees could use the payroll cards anywhere that would accept
a check without incurring fees.
3:51:31 PM
CO-CHAIR FIELDS requested a list of fees that consumers could
pay under SB 79 and queried how payroll cards interact with
banks. He asked whether ADP provides banking services.
MS. MILLER responded that ADP does not provide banking services
but that it does provide payroll cards.
MS. MILLER, in response to a follow-up question from Co-Chair
Fields clarified that ADP does not provide any other banking
services.
3:52:28 PM
REPRESENTATIVE COULOMBE asked whether payroll card users would
pay a fee for withdrawing cash from an automated teller machine
(ATM).
MS. MILLER replied that payroll card users are allowed one free
ATM withdrawal per pay period. She noted that there are in-
network ATMs that offer free, unlimited withdrawals.
Additionally, she stated that payroll card users could go to a
teller at any brick-and-mortar bank that accepts Visa or
MasterCard for unlimited cash withdrawals with no fees. She
noted that payroll card users could not use an automated teller
machine (ATM) inside of a bank.
3:53:39 PM
REPRESENTATIVE SADDLER asked whether the Federal Deposit
Insurance Corporation (FDIC) regulates payroll cards. He
further asked whether federal banking regulations are applicable
to payroll cards. He remarked that the legislation was being
presented as a simplified banking service.
MS. MILLER responded that there are regulations regarding anti-
theft protection [for payroll cards]. Additionally, she stated
that she would do more research and follow-up with the
committee.
3:54:33 PM
REPRESENTATIVE NELSON commented that access to payroll cards was
helpful for anyone without a bank account. He noted he was paid
through a payroll card at his first job.
3:54:54 PM
CO-CHAIR FIELDS offered his understanding that the Consumer
Financial Protection Bureau (CFPB) was "essentially shut down."
He asked whether CFPB had any role related to payroll cards.
MS. MILLER replied that she believed CFPB may have had a broader
federal role in providing consumer protection for payroll cards
and stated that the states typically provide consumer protection
for payroll cards. She added that the typical protections one
might expect with credit and debit cards are the same as for
payroll cards. Additionally, she stated that any fees
associated with payroll cards are no different from fees
associated with credit or debit cards, such as merchant-
generated fees or transaction fees.
3:56:17 PM
MS. BIEBER, in response to Representative Saddlers prior
question, referred to page 2, line 24, [subsection] (e) and read
"an employer may not offer a payroll card account unless
employee wages or other forms of compensation credited to the
account are insured on a passed through basis to the employee by
the Federal Deposit Insurance Corporation, the National Credit
Union Administration, or another entity that insures bank
deposits."
3:56:49 PM
SENATOR BJORKMAN, in response to Representative Saddler's prior
question, noted that state legislation regarding cryptocurrency
and money transmission modernization should also consider
including gift cards in regulation. He stated that was not the
purpose of SB 79.
3:57:33 PM
REPRESENTATIVE CARRICK referred to [subsection] (f) of SB 79 and
asked if that language was in the previous iteration of the
proposed legislation. She noted that the value of SB 79
appeared to be in "employer options" and "employee choice."
3:58:16 PM
SENATOR BJORKMAN offered his understanding that SB 79 was
identical to the previous iteration of the proposed legislation.
He noted that the provision in [subsection] (f) would preserve
collective bargaining rights of employees regarding payroll
format. He added that it is the employee's right to advocate
for and negotiate with employers regarding how they are paid.
He stated, "That provision simply protects rights of employees
who are organized and bargain collectively with their employer."
3:59:16 PM
REPRESENTATIVE CARRICK noted that members of a collective
bargaining unit might disagree with the form of pay they might
collectively accept. She suggested that the proposed
legislation was supposed to be an "employer-offered option."
SENATOR BJORKMAN, in response to Representative Carrick's
question regarding the consideration of SB 79 as conforming
language, responded yes.
4:00:09 PM
REPRESENTATIVE SADDLER asked whether HB 99 would need to be
modified were SB 79 to pass the legislature.
SENATOR BJORKMAN responded that SB 79 would not intersect with
HB 99.
4:01:20 PM
CO-CHAIR FIELDS queried the "real-world impact" of the proposed
legislation.
4:01:57 PM
MS. MILLER stated that 20 other states have passed paperless pay
legislation. She stated that it is helpful for employers, given
that the cost of issuing checks can range from $4 to $20, which
could be expensive for a small business owner. She remarked
that most employees opt for direct deposit and the payroll cards
serve as an alternative.
CO-CHAIR FIELDS further inquired whether there had been a
positive impact on reducing the rate of unbanked individuals or
other consumer gains in states where similar legislation has
been enacted.
MS. MILLER replied that the payroll cards would not "offer the
option to be banked," but the alternative allows unbanked
individuals to participate in online shopping.
4:04:00 PM
CO-CHAIR HALL announced that SB 79 was held over.
HB 30-OFFICE OF ENTREPRENEURSHIP
4:04:14 PM
CO-CHAIR HALL announced that the final 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).]
4:04:43 PM
REPRESENTATIVE COULOMBE moved to adopt Amendment 1 to CSHB
30(STA), labeled 34-LS0320\G.1, Gunther, 3/18/25, which read as
follows:
Page 2, line 23:
Delete "Department of Commerce, Community, and
Economic Development"
Insert "department"
Page 2, line 30:
Delete "and"
Page 3, line 10, following "state":
Insert new material to read:
"; and
(5) actively seek and use volunteers to
assist in the performance of the duties described in
this section"
Page 3, following line 15:
Insert a new subsection to read:
"(c) The department may provide to the office
facilities to implement the duties described under
this section. If the department determines that
facilities are not necessary to perform a duty of the
office, the office shall perform the duty using
electronic or telephonic means."
Reletter the following subsection accordingly.
Page 3, following line 16:
Insert a new paragraph to read:
"(1) "department" means the Department of
Commerce, Community, and Economic Development;"
Renumber the following paragraphs accordingly.
Page 3, line 26:
Delete "senate secretary and the"
Insert "the governor, senate secretary, and"
CO-CHAIR FIELDS objected for the purpose of discussion.
4:04:55 PM
REPRESENTATIVE COULOMBE stated that the purpose of the amendment
was to reduce the fiscal impact of the proposed legislation.
She explained that Amendment 1 would prioritize a volunteer-
driven approach within the department. and ensure that the
Department of Commerce, Community & Economic Development (DCCED)
provides necessary resources, whether a physical workspace or
remote communication tools, to support volunteers in carrying
out their duties effectively. She added that Amendment 1 would
additionally require that all generated reports be submitted to
the governor.
4:05:41 PM
REPRESENTATIVE KY HOLLAND, Alaska State Legislature, as prime
sponsor of HB 30, noted that the [entrepreneurial] ecosystem is
already heavily reliant on volunteers and could not function
without them.
4:06:30 PM
REPRESENTATIVE KY HOLLAND, in response to a question from Co-
Chair Fields, confirmed that he was in support of the proposed
amendment.
CO-CHAIR FIELDS removed his objection. There being no further
objection, Amendment [1] to CSHB 30(STA) was adopted.
4:07:30 PM
REPRESENTATIVE SADDLER moved to adopt Amendment [2] to CSHB
30(STA), as amended, labeled 34-LS0320\G.2, Gunther, 3/18/25,
which read as follows:
Page 3, line 28, through page 4, line 5:
Delete all material.
Page 4, line 10:
Delete ";"
Insert "."
Page 4, lines 11 - 13:
Delete all material.
CO-CHAIR FIELDS objected.
4:07:42 PM
REPRESENTATIVE SADDLER explained that Amendment 2 would
eliminate statutory language directing state agencies to
appropriate 5 percent [of revenue] "for a purpose." He shared
his concern that the language is "too broad." He shared his
secondary concern, noting that there was no fiscal note or
quantifier attached to that particular section of the bill. He
shared his tertiary concern that "the 5 percent shall be
appropriated for support and expansion of organizations or
programs." He queried which organizations or programs were
referred to in the legislation and asked for clarification on
the intent of the language.
4:08:58 PM
REPRESENTATIVE HOLLAND explained that the "5 percent language"
came from model national legislation. He further explained that
state and local governments' purchasing power could be an engine
for economic development. He stated that he intentionally made
the language to which Representative Saddler referred "very
general" and further stated that he would like agencies to be
purposeful in spending money on small businesses in Alaska. He
clarified that the intent was the development of different
programs for economic development to expand access of small
Alaska startups less than five years old to "bidding and
purchasing opportunities." He shared his goal of the
development of more Alaska-based products and services.
4:11:28 PM
CO-CHAIR FIELDS maintained his objection. He opined that 5
percent was not too much to ask in the name of supporting new
businesses.
A roll call vote was taken. Representatives Saddler, Coulombe,
and Nelson voted in favor of the motion to adopt Amendment 2 to
CSHB 30(STA), as amended. Representatives Burke, Carrick,
Fields, and Hall voted against it. Therefore, Amendment 2
failed to be adopted by a vote of 3-4.
4:12:21 PM
REPRESENTATIVE SADDLER moved to adopt Amendment [3] to CSHB
30(STA), as amended, labeled 34-LS0320\G.3, Gunther, 3/18/25,
which read as follows:
Page 3, line 30:
Delete "five"
Insert "two"
CO-CHAIR FIELDS objected.
REPRESENTATIVE SADDLER explained that Amendment 3 was a tiered
response to language in the proposed legislation referred to
during the motion to adopt Amendment [2] to HB 30. He stated
that without specificity, he would not know where the money is
going and exactly how much money entails 5 percent or 2 percent.
He explained that the amendment would lower 5 percent to 2
percent, thus lowering the [financial] impact.
4:13:11 PM
CO-CHAIR FIELDS asked the bill sponsor whether the amendment was
workable.
4:13:21 PM
REPRESENTATIVE HOLLAND clarified that the language addressed by
Amendment 3 would not make new appropriations; rather, it would
be a shift of money already spent on products towards "younger,
newer organizations" in Alaska. He stated that the percentage
did not matter, given the intent to direct spending into
emerging businesses. However, he also stated that the national
model legislation that CSHB 30(STA) was based on, which has been
enacted in over 30 states, had identified 5 percent as
meaningful and impactful, and he stated his preference not to
change the number.
4:15:00 PM
CO-CHAIR FIELDS maintained his objection to Amendment 3.
4:15:36 PM
The committee took a brief at-ease at 4:15 p.m.
4:16:32 PM
A roll call vote was taken. Representatives Nelson, Coulombe,
and Saddler voted in favor of the motion to adopt Amendment 3 to
CSHB 30(STA), as amended. Representatives Burke, Carrick,
Fields, and Hall voted against it. Therefore, Amendment 3
failed to be adopted by a vote of 3-4.
4:17:11 PM
REPRESENTATIVE SADDLER indicated that he would not be offering
Amendment 4 to HB 30.
4:17:25 PM
REPRESENTATIVE SADDLER moved to adopt Amendment [5] to CSHB
30(STA), as amended, labeled 34-LS0320\G.5, Gunther, 3/18/25,
which read as follows:
Page 1, line 2:
Delete "and"
Following "agencies":
Insert "; and providing for an effective date"
Page 4, following line 13:
Insert new bill sections to read:
"* Sec. 4. AS 36.30.540(a)(4), 36.30.540(a)(5),
36.30.540(a)(6), 36.30.540(b); AS 44.33.850,
44.33.853, 44.33.855, 44.33.857, and 44.33.859 are
repealed.
* Sec. 5. Section 4 of this Act takes effect
December 31, 2028."
CO-CHAIR FIELDS objected.
REPRESENTATIVE SADDLER explained that Amendment [5] would create
a three-year sunset provision for the Office of Entrepreneurship
proposed by HB 30. He shared his concern in the establishment
of a permanent council that "may or may not exceed its
aspirations." He noted that most startup businesses do not stay
open beyond three years. He asserted that a three-year sunset
gives the proposed Office of Entrepreneurship time to prove its
worth.
4:18:15 PM
CO-CHAIR FIELDS shared his concern that three years would not be
enough time to accurately assess the effectiveness of the
program. He queried whether five years would be enough time for
a sunset provision.
4:18:35 PM
REPRESENTATIVE HOLLAND noted that CSHB 30(STA) would have two
reporting mechanisms. He opined that Amendment 5 was brilliant,
noting that a startup should prove its worth. He additionally
noted that three years would be a little early for most startups
but also stated that he was comfortable with the proposed
legislation required to prove itself withing three years.
4:20:08 PM
CO-CHAIR FIELDS asked what other committee members thought
regarding a date for a sunset clause.
4:20:21 PM
REPRESENTATIVE CARRICK stated that five years would be a
reasonable amount of time for a sunset provision.
REPRESENTATIVE CARRICK moved to adopt Conceptual Amendment 1 to
Amendment 5, to change the effective date on line 10, as
numbered on Amendment 5, to 2030.
4:21:04 PM
REPRESENTATIVE COULOMBE objected.
REPRESENTATIVE COULOMBE offered her agreement with the bill
sponsor and stated that the proposed Office of Entrepreneurship
needed to prove its value relatively soon after establishment.
She stated that she would prefer a three-year sunset clause, but
that she wouldn't object to a five-year sunset clause, whether
it was the will of the committee.
4:21:43 PM
REPRESENTATIVE SADDLER stated that he would not oppose
Conceptual Amendment 1 to Amendment 5. He offered his
appreciation for the bill sponsor's conviction.
4:22:06 PM
CO-CHAIR FIELDS observed that the council might see whether the
Office of Entrepreneurship was performing well in three years,
but the legislature may require five years to see results. He
shared his preference for a five-year sunset provision.
4:22:32 PM
REPRESENTATIVE COULOMBE withdrew her objection to Conceptual
Amendment 1 to Amendment 5. There being no further objection,
it was so ordered.
4:22:52 PM
CO-CHAIR FIELDS withdrew his objection to Amendment 5, as
amended. There being no further objection, Amendment 5, as
amended, was adopted.
4:23:31 PM
REPRESENTATIVE SADDLER moved Amendment [6] to CSHB 30(STA), as
amended, labeled 24-LS0320\G.6, Gunther, 3/18/25, which read as
follows:
Page 3, lines 23 - 27:
Delete all material.
Page 3, line 28:
Delete "Sec. 44.33.857"
Insert "Sec. 44.33.855"
CO-CHAIR FIELDS objected.
REPRESENTATIVE SADDLER explained that Amendment 6 would remove
the requirement to procure a report characterizing legislation
as "helpful or harmful" for new businesses in Alaska. He argued
that the legislature's Bill Access & Status Inquiry System
(BASIS) already served that function. Further, he remarked that
people could decide for themselves whether a piece of
legislation was helpful or harmful.
4:24:44 PM
CO-CHAIR FIELDS requested the bill sponsor's opinion on
Amendment 6.
4:24:49 PM
REPRESENTATIVE HOLLAND offered his belief that this particular
report was vital to the proposed legislation. He remarked that
BASIS was an incredible resource but asserted that it was for
recordkeeping and does not analyze the legislative effects on
small and emerging businesses.
4:26:01 PM
CO-CHAIR FIELDS maintained his objection.
4:26:13 PM
REPRESENTATIVE SADDLER opined that the legislature, as a public
agency, should not "be in the business of telling people what to
think about its own enactments." He asserted that constituents
should be empowered to review legislation and come to their own
conclusions. He urged committee members to vote in support of
Amendment 6.
4:26:45 PM
A roll call vote was taken. Representatives Nelson, Coulombe,
and Saddler voted in favor of the motion to adopt Amendment [6]
to CSHB 30(STA), as amended. Representatives Carrick, Burke,
Fields, and Hall voted against it. Therefore, Amendment 6
failed to be adopted by a vote of 3-4.
4:27:53 PM
The committee took a brief at-ease at 4:27 p.m.
4:28:19 PM
CO-CHAIR HALL opened public testimony on CSHB 30(STA), as
amended.
4:28:41 PM
TYLER ARNOLD, representing self, testified in support of HB 30.
He stated that he was the founder of Tyler Systems, LLC and
worked in startups in Silicon Valley, New York, Washington,
D.C., and Europe. He explained that his business creates
innovative artificial intelligence (AI) solutions to "help
Alaskans that are being forced to do more with less in our
current economic environment." He encouraged committee members
to imagine an Alaska where "every budding entrepreneur has the
resources they need to succeed."
MR. ARNOLD offered his belief that the establishment of an
Office of Entrepreneurship should be a legislative priority,
asserting that its establishment was a strategic investment in
addressing Alaska's unique problems. He stated that the reality
of entrepreneurship in Alaska was "dark," remarking that many
entrepreneurs work for less than minimum wage. He asserted that
entrepreneurs are Alaska's hope for finding unique solutions to
Alaska's unique problems, and entrepreneurs in Alaska need a
"central hub of support" that can provide sustainable models to
help Alaska succeed, coordinate existing services, and act as a
catalyst to help individuals solve Alaska's greatest problems.
MR. ARNOLD asserted that existing support systems, federally or
locally funded, are "fragmented [with] high barriers to entry,"
with rural communities facing even higher barriers. He
additionally asserted that there is little collaboration between
existing support services. He stated that Alaska, with its
large land mass and small population, is unique. He emphasized
the importance of Alaska investing in itself. He noted that the
"global business environment [is] chang[ing] drastically,"
particularly with new technologies like AI and bureaucracies
dare being replaced with peer-to-peer help. He encouraged
committee members to vote yes on HB 30.
4:33:32 PM
CO-CHAIR HALL, after ascertaining that there was no one else who
wished to testify, closed public testimony on CSHB 30(STA).
4:33:40 PM
REPRESENTATIVE HOLLAND offered his appreciation for the
amendments and feedback on CSHB 30(STA).
CO-CHAIR HALL entertained a motion.
4:34:17 PM
CO-CHAIR FIELDS moved to report CSHB 30(STA), as amended, out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, CSHB 30(L&C) was
reported out of the House Labor and Commerce Standing Committee.
4:35:00 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:35 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 79 HL&C Hearing Packet 3.19.2025.pdf |
HL&C 3/19/2025 3:15:00 PM |
SB 79 |
| HB 30 Amendment G.1.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 30 |
| HB 30 Amendment G.2.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 30 |
| HB 30 Amendment G.3.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 30 |
| HB 30 Amendment G.4.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 30 |
| HB 30 Amendment G.5.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 30 |
| HB 30 Amendment G.6.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 30 |
| HB 123-Amendment I.2.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 123 |
| HB123 Ver A Supporting Doc-FAQs 3.19.25.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 123 |
| HB123 Ver A Supporting Doc-Vehicle Rental Statutes 3.19.25.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 123 |
| HB123 VerA Supporting Doc-DOR Brief Analysis of Turo 3.19.25.pdf |
HL&C 3/19/2025 3:15:00 PM |
HB 123 |