02/05/2025 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Overview: Department of Commerce, Community and Economic Development. | |
| SB14 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | SB 14 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
February 5, 2025
1:31 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Kelly Merrick, Vice Chair
Senator Elvi Gray-Jackson
Senator Forrest Dunbar
Senator Robert Yundt
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
OVERVIEW: DEPARTMENT OF COMMERCE~ COMMUNITY AND ECONOMIC
DEVELOPMENT.
- HEARD
SENATE BILL NO. 14
"An Act relating to the Alaska Industrial Development and Export
Authority; and relating to workforce housing development
projects."
- MOVED SB 14 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 14
SHORT TITLE: AIDEA FINANCE WORKFORCE HOUSING DEVELOP.
SPONSOR(s): SENATOR(s) DUNBAR
01/10/25 (S) PREFILE RELEASED 1/10/25
01/22/25 (S) READ THE FIRST TIME - REFERRALS
01/22/25 (S) L&C, FIN
02/03/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/03/25 (S) Heard & Held
02/03/25 (S) MINUTE(L&C)
02/05/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
JULIE SANDE, Commissioner
Department of Commerce, Community & Economic Development
Juneau, Alaska
POSITION STATEMENT: Presented the DCCED overview.
ANNA LATHAM, Deputy Commissioner
Department of Commerce, Community & Economic Development
Juneau, Alaska
POSITION STATEMENT: Co-presented the DCCED overview.
HAHLEN BEHNKEN, Staff
Senator Forrest Dunbar
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented a brief recap of SB 14.
ACTION NARRATIVE
1:31:50 PM
CHAIR BJORKMAN called the Senate Labor and Commerce Standing
Committee meeting to order at 1:31 p.m. Present at the call to
order were Senators Merrick, Gray-Jackson, Yundt and Chair
Bjorkman. Senator Dunbar arrived thereafter.
^OVERVIEW: DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT.
OVERVIEW: DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT.
1:32:41 PM
CHAIR BJORKMAN announced the overview from the Department of
Commerce, Community and Economic Development.
1:33:10 PM
JULIE SANDE, Commissioner, Department of Commerce, Community &
Economic Development (DCCED), Juneau, Alaska, presented the
department overview. She moved to slide 2 and read the mission
and organization of the Department of Commerce, Community and
Economic Development (DCCED) as follows:
[Original punctuation provided.]
"Promote a healthy economy, strong communities, and
protect consumers in Alaska."
MS. SANDE stated that the department has seven core divisions
and eight corporate agencies.
1:34:11 PM
ANNA LATHAM, Deputy Commissioner, Department of Commerce,
Community & Economic Development (DCCED), Juneau, Alaska, co-
presented the department overview. She said although DCCED is a
small department it is broad in scope, covering licensing,
marketing, investments and insurance.
1:34:38 PM
MS. SANDE moved to slide 3, DCCED structure. She said the chart
represents all the agencies and corporations under the
Commissioner's office. She stated that the core agencies are in
gray, and the corporations are in blue. She stated the Alaska
Railroad Corporation is under DCEED but is exempt from the
Executive Budget Act.
1:35:12 PM
MS. SANDE moved to slide 4, FY2026 Operating General Fund (UGF)
by department (Governors Budget). She stated that the DCCED has
the smallest amount of UGF for the state of Alaska.
1:35:48 PM
MS. SANDE moved to slide 5, Fund Sources and Division by
Department. She stated the DCCED has the most complexity within
the state of Alaska.
1:36:21 PM
MS. SANDE moved to slide 7, Commissioner's Office. She stated
that the responsibilities of the commissioner's office and
listed the different offices they have under their umbrella. The
offices are legislative relations, boards and commissions,
office of international trade, economic development, special
projects and marketing Alaska. She stated she meets with consul
generals and recently traveled to San Franciso to meet with
consul generals from several countries that have interest in
Alaska.
1:38:06 PM
MS. SANDE moved to slide 8 and she noted that while Alaska
Seafood Institute and Alaska Travel Industry Association markets
specific sectors, no one is marketing the rest of Alaska's
industries. She said she sought funding from the governor and
legislature for statewide marketing, launching the 2024 "Its
Your Business" campaign focused on tourism, mining, and oil and
gas. The request for proposal (RFP) was finalized with the
commissioner's office, SIX7 Strategies, and subcontractors Pool
House and Black Rock Group. She said their PR efforts have been
effective in supporting the agency. She said the department
needed to create a vision for the future of business in Alaska.
She explained that the next step is defining the future of
private sector growth, identifying key industry influencers in
and outside the state, and creating opportunities. She said she
is most excited about a website set to soft launch in March to
showcase Alaska's available services and resources to investors.
1:41:23 PM
MS. SANDE moved to slide 9, Administrative Services. She
explained the financial chart covering the budget and how much
Administrative Services has given back to the general fund. She
stated Director Hannah Lager is over the financial services,
budget management, human resources and procurement.
1:42:00 PM
MS. SANDE moved to slide 10, Alaska Broadband Office. She said
DCCED has a new division called the Alaska Broadband office. She
commented on the development activities in FY2025, grant program
awards in FY2026 and projects deployed for FY2026 to FY2030.
1:43:22 PM
MS. LATHAM stated that the $1 billion-dollar Broadband Equity,
Access, and Deployment (BEAD) grant program likely won't be
affected by recent federal orders, but the $5.6 million Digital
Equity grants could be impacted.
MS. SANDE stated that the DCCED expect some impact to the
Digital Equity program, its important to recognize the scale
difference of $1 billion for the BEAD program versus about $5.5
million for the Digital Equity program.
1:44:20 PM
MS. SANDE moved to slide 11 and provided details on banking,
securities, and non-depository licenses. She stated that the
Division of Banking and Securities contributed over $18 million
to the General Fund in FY2024. She said the Division Director
Robert Schmidt has focused a lot of efforts on detecting
financial fraud, and most of this growth was from increased use
of technology.
1:46:25 PM
MS. SANDE moved to slide 12, Community and Regional Affairs
Division. She listed the services that are established in
Article X of Alaska's Constitution, which the Division of
Community and Regional Affairs (DCRA) offer. She talked about
the digital community resources (data) available for communities
and people of Alaska. She said the division manages about 700
grants totaling between $1.2 billion to $2 billion.
1:48:40 PM
MS. SANDE moved to slide 13, Corporations, Business and
Professional Licensing (CBPL). She reported the statistics of
the Business Licensing, the Professional Licensing and the
Corporations sections of the Division. She credited Director
Sylvan Robb and her team for major improvements, to workload,
streamlined processes, and staffing.
1:52:07 PM
MS. LATHAM stated that all renewal licensure applications are
fully online, and the division is working to move all licensure
applications online.
MS. SANDE stated Division of Corporations, Business and
Professional Licensing (DCBPL) created online applications for
over 400 professions.
1:52:46 PM
MS. SANDE moved to slide 14, Division of Insurance. She praised
Lori Wing-Heier, the director of the Division of Insurance for
her accomplishments within the division. Ms. Wing-Heier has
processed over 62,000 license applicationsa 11 percent increase
in FY24and deposited $72 million into the general fund. Her
team handled over 1,500 consumer inquiries, complaints, and
healthcare reviews. She stated that in response to the
governor's call for healthcare reform, Commerce is partnering
with the Department of Health to improve primary care access and
identify healthcare cost drivers. She said Ms. Wing-Heier led
the state in implementing [Section 1332, State Innovation
Waivers, of the Affordable Care Act]. Saving Alaska over $700
million.
1:55:02 PM
CHAIR BJORKMAN asked if Ms. Sande would summarize what the 1332
waiver is, what it does and why it's important.
1:55:14 PM
MS. SANDE explained we're using federal funds to remove the
highest-cost component out of the system, helping to reduce,
stabilize, or even out the overall cost.
1:55:29 PM
MS. LATHAM explained the 1332 state innovation waiver is a
federal waiver that passes premium tax savings to help cover
high-cost medical conditions for people in the individual
healthcare market.
1:55:49 PM
CHAIR BJORKMAN asked if the waiver allows high-cost individuals
in the marketplace to be separated into a different risk pool.
1:55:58 PM
MS. LATHAM answered it's like creating a smaller group within
the larger insurance pool. She stated the high-cost individuals
are still part of the system, but the federal government's
premium tax savings help the state cover the individuals' care.
She explained that it helps lower overall costs for everyone in
the individual market.
1:56:19 PM
MS. SANDE moved to slide 15, Division of Investments directed by
Jim Anderson. She stated that the division has run Alaska's
revolving loan fund program for over 50 years. The loan funds
administered by investments have been very successful;
supporting job creation without using general fund dollars. She
reported there are over 2,000 active loans across 11 funds,
totaling $180 million in financing for more than 130 communities
and since inception, over 11,000 loans worth $1 billion have
supported residents and businesses. She continued stating that
since 1996, the program has helped create over 22,000 jobs
through small business startups, expansions, and
diversification. One major success is the commercial fishing
loan fund, which played a key role during tough industry
conversations last year. Mr. Anderson and his team defederalized
the Small Business Economic Development (SBED) loan program and
have been able to provide loans to commercial fishermen and
harvesters.
1:58:49 PM
CHAIR BJORKMAN stated that a past legislature gave the
commercial fishing revolving loan fund more flexibility,
creating some overlapand possible competitionwith the
Commercial Fishing and Agriculture Bank (CFAB). This issue came
up in the seafood task force. He asked whether anyone discussed
with the DCCED how to align the Division of Investments and CFAB
to work more collaboratively.
1:59:42 PM
MS. SANDE stated that CFAB exists for a reason, and she values
CFAB's contributions. She said Mr. Anderson's team has shown
strong success with the revolving loan funds, providing real
economic stability without relying on the general fund. She
stated that she wouldn't want to risk disrupting that and she's
open to continue discussions on how both programs can work
together.
2:01:19 PM
MS. SANDE moved to slide 17, and talked about the following
corporate agencies that are under DCCED:
[Original punctuation provided.]
Alaska Oil and Gas Conservation Commission: Protect
the public interest in exploration and development of
Alaska's valuable oil, gas, and geothermal resources
through the application of conservation practices
designed to ensure greater ultimate recovery and the
protection of health, safety, fresh ground waters and
the rights of all owners to recover their share of the
resource. Commissioner Greg Wilson
Alcohol and Marijuana Control Office: Promote commerce
in the licensed alcohol and marijuana industries and
provide clear, consistent standards to protect public
health and safety. Director Kevin Richard
Regulatory Commission of Alaska: Ensure that safe,
efficient, and reliable utility and pipeline services
are provided to the public at just and reasonable
rates, thereby protecting consumer interests and
promoting economic development. Commissioner John
Espindola
Ms. Sande stated that the Alaska Oil and Gas Conservation
Commission, the Alcohol and Marijuana Control Office and the
Regulatory Commission of Alaska are the three of eight
corporations that are quasi-judicial.
2:03:24 PM
MS. SANDE moved to slide 18, and continued discussion of
corporate agencies under DCCED:
[Original punctuation provided.]
Alaska Gas line Development Corporation: Advance the
development, financing, construction and operation of
a North Slope natural gas pipeline project, instate
natural gas pipelines and other transportation
mechanisms capable of delivering natural gas and other
nonoil hydrocarbons for the maximum benefit of
Alaskans. President Frank Richards
Alaska Industrial Development and Export Authority:
Promote, develop, and advance economic growth and
diversification in Alaska by providing various means
of financing and investment. Executive Director Jeremy
Woodrow
MS. SANDE stated her belief that the 2025 board approved
dividend to the state was $20 million.
2:04:18 PM
MS. SANDE moved to slide 19 and continued discussion of
corporate agencies under DCCED:
[Original punctuation provided.]
Alaska Energy Authority: Reduce the cost of energy in
Alaska. Executive Director Curtis Thayer.
Alaska Seafood Marketing Institute: Increase the
economic value of Alaska seafood resources. Executive
Director Jeremy Woodrow
Alaska Railroad: To be profitable by focusing on safe,
high-quality service to our freight, passenger and
real estate customers. To foster the development of
Alaska's economy by integrating railroad and Railbelt
community development plans. President Bill O'Leary
MS. SANDE stated that an area of focus with the Alaska Railroad
Board is promoting a strategic vision for statewide
transportation.
2:06:26 PM
CHAIR BJORKMAN commented on Alaska's transportation strategy and
how Alaska can plan for back up options if something happens to
the Port of Alaska to Anchorage. He mentioned the dock project
in Seward that would accommodate roll-on and roll-off cargo from
ships that would allow cargo to be moved by rail or road if the
Port of Alaska goes down. He said he heard it would take $10
million more to finish the project. He opined that it would be a
smart move to spend $10 million now to finish the project than
face a $100 million emergency later. He asked if there are any
options to help fund the project and what role does Commerce
place in supporting the investment.
2:08:30 PM
MS. SANDE stated that the railroad teams have been doing a great
job seeking after federal grants. She said the board challenges
the railroad to do more. She said the governor wants the
railroad to have a seat at the table and help lead the
conversations. She stated that between AIDEA and the railroad
there are opportunities to provide more direction. She said as a
board member she has been sharing feedback, and she can bring
the questions up at the next railroad board meeting and make
sure the board knows it's a priority.
2:10:09 PM
CHAIR BJORKMAN stated that often Alaska Consumer of Professional
Services run into unlicensed individuals offering professional
services but have not registered with the Department of
Commerce. He mentioned marijuana laws not being enforced, like
unlicensed contractors having operated with no consequences. He
asked what DCCED can do to improve enforcement of rules and
address the concern of the Alaska people.
2:11:31 PM
MS. SANDE stated that DCEED identified a few areas that have
loopholes and where processes need improvement. She said that
she will share the feedback with the Senate Labor and Commerce
committee offline.
2:12:49 PM
At ease.
SB 14-AIDEA FINANCE WORKFORCE HOUSING DEVELOP.
2:16:15 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SB 14 SENATE BILL NO. 14 "An Act relating to
the Alaska Industrial Development and Export Authority; and
relating to workforce housing development projects."
2:16:43 PM
HAHLEN BEHNKEN, Staff, Senator Forrest Dunbar, Alaska State
Legislature, Juneau, Alaska, presented a brief recap of SB 14.
He stated that this bill aims at allowing the Alaska
Infrastructure Development and Export Authority (AIDEA) to
finance workforce housing developments in Alaska. He said SB 14
is seen as an additional tool to help tackle the housing crisis.
2:17:36 PM
CHAIR BJORKMAN opened public testimony on SB 14; finding none,
he closed public testimony.
2:18:28 PM
CHAIR BJORKMAN solicited the will of the committee.
2:18:37 PM
At ease.
2:19:40 PM
CHAIR BJORKMAN reconvened the meeting.
2:19:48 PM
SENATOR MERRICK moved to report SB 14, work order 34-LS0142\A,
from committee with individual recommendations and attached
fiscal note(s).
2:20:08 PM
CHAIR BJORKMAN found no objection and SB 14 was reported from
Senate Labor and Commerce Standing Committee.
2:20:38 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:20 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB14 Supporting Documents - Email-Anna Brawley 02.03.25.pdf |
SL&C 2/5/2025 1:30:00 PM |
SB 14 |
| SB14 Supporting Documents - Letter AML 01.28.25.pdf |
SL&C 2/5/2025 1:30:00 PM |
SB 14 |
| SB14 Supporting Document - Letter-Shauna Hegna 02.03.25.pdf |
SL&C 2/5/2025 1:30:00 PM |
SB 14 |
| SB14 Supporting Document - Letter-Lisa Parker.pdf |
SL&C 2/5/2025 1:30:00 PM |
SB 14 |
| DCCED Overview Presentation to SLAC 02.05.25.pdf |
SL&C 2/5/2025 1:30:00 PM |
DCCED Overview Presentation 02.05.25 |