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.