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.