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." 2:44:04 PM Representative Galvin understood that there was a request for three new positions for the Alaska Office of Entrepreneurship. She observed that other states had similar entrepreneurship programs but generally only staffed one or two positions. She asked why the bill requested three positions rather than one or two. REPRESENTATIVE KY HOLLAND, SPONSOR, responded that the staffing had undergone changes during the bill's development. He noted that a past version of the bill included six staff positions identified as necessary by the Department of Commerce, Community, and Economic Development (DCCED). He stated that after working with the department, taking feedback, and examining the scope of the proposal in comparison to similar offices in other states, the number had been reduced to three positions. Representative Holland clarified that the bill itself did not specify the staffing level or structure because the bill was focused on policy. He suggested that representatives from the department could provide further detail on the assessment of the workload and staffing needs. He relayed that most other states already had stronger economic and business development functions in place and their entrepreneurship offices were built on existing structures. In contrast, Alaska's programs had previously been scaled back which left the state in a rebuilding phase. He explained that the three positions represented a foundational step to restore capacity rather than simply adding onto a fully developed structure. He reiterated that the department could provide more details. 2:46:54 PM HANNAH LAGER, ADMINISTRATIVE SERVICES DIRECTOR, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, agreed with Representative Holland's description. She explained that the work in Alaska was being built from the ground up. Representative Galvin understood that the work was still in the design phase. She noted that one of the positions had been specified as a research analyst and asked what the scope of the position was. Ms. Lager responded that the research analyst would primarily focus on the reporting requirements in the bill. She clarified that analyzing the impact on new businesses was a significant undertaking and there was a short timeline for the initial report. She added that the analysis would continue throughout the year and would involve reviewing different data sources to evaluate how economic actions affected small businesses. Representative Galvin noted that she did not have the fiscal notes in front of her, but she recalled that one of the fiscal notes included a request for $500,000 [FN1 by the Department of Administration (DOA), control code Ztaay](copy on file), which she believed was tied to the reporting requirements. She asked why the research analyst would carry out the reporting work and why the fiscal note reflected such a high cost for producing the report. Ms. Lager replied that there were two separate reporting requirements in the bill. One was the responsibility of DOA, while the other was the responsibility of DCCED. Co-Chair Foster relayed that some committee members needed to attend another meeting soon. There was time for one more question before the committee needed to move on to the next bill. Representative Hannan recalled that between 2016 and 2019, DCCED had an Office of Economic Development and that the positions within the office had later been moved to the Office of the Governor. She asked if any of the positions still existed at the department or in the governor's office. She assumed some coordination would be necessary. Ms. Lager responded that several of the positions had been deleted during structural changes. She stated that she was uncertain what positions remained in the Office of the Governor. She recalled that possibly two positions still existed in the office. One of the positions within DCCED still remained and was located in the Commissioner's Office. She explained that the duties covered by the position included the International Trade Assistance Program grant, as well as several other grant programs. She added that the Commissioner's Office also provided direct business assistance, helped businesses connect with different divisions, and supported marketing for the department. Representative Hannan explained that she was trying to determine the extent of the rebuilding effort. She asked whether the department would need to start over in order to rebuild the function of the positions or if there were still staff in place dedicated to economic development who could incorporate entrepreneurial development into their work. 2:51:27 PM Co-Chair Foster announced that the committee would set HB 30 aside and take it up again later so members would have the opportunity to ask further questions. HB 30 was HEARD and HELD in committee for further consideration.