HB 30-OFFICE OF ENTREPRENEURSHIP  4:24:05 PM CHAIR CARRICK announced that the next order of business would be 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." 4:24:50 PM REPRESENTATIVE STORY moved to adopt the proposed committee substitute (CS) for HB 30, Version 34-LS0320\I, Gunther, 3/5/25, as a working document. 4:25:10 PM REPRESENTATIVE MCCABE objected. 4:25:28 PM STUART RELAY, Staff, Representative Ashley Carrick, Alaska State Legislature, presented the summary of changes in the proposed committee substitute, Version I, for HB 30 [included in the committee file], which read as follows [original punctuation provided, and the original bill version referred to as "Version N"]: Section 1: Version N would have changed Department of Administration's procurement report from biennial to annual. This change has been eliminated. Section 2: no changes Section 3: Deleted entirely: removing the business license exemption for new businesses. Section 4 from version N is now section 3. Section 3: Rewrites Sec. 44.33.853. Duties to clarify the goals of the Office of Entrepreneurship with more specific language. These specific duties are: • Provide a central point of contact for new businesses seeking information, resources and state services. • Coordinate with community entrepreneurship programs, economic development organizations, local governments, military installations, regional development organizations, small business development centers and the university to improve delivery of services to new businesses to identify and address the needs of new businesses. • Assist local jurisdictions with development of their own small business liaison. Note these changes do not change the scope of the legislation but do address committee feedback for enhanced program focus. Section 3: 44.33.859. Definitions now includes preexisting statutory definition that applies to Alaska Bidder Preference to tighten definition of "New Business in the State." 4:27:21 PM CHAIR CARRICK offered her understanding that the changes proposed under Version I would significantly reduce the fiscal impact of the legislation. She invited the bill sponsor's staff to speak to that. 4:27:38 PM CAMERON EBERSOLE, Staff, Representative Ky Holland, Alaska State Legislature, on behalf of Representative Holland, prime sponsor of HB 30, stated that one of more considerable fiscal costs under the original bill version was the cost of business license exemptions for new businesses. Since the value of the that provision weighed against the cost was dubious, that section was removed in Version I. 4:28:46 PM REPRESENTATIVE MCCABE asked if updated fiscal notes were available. MR. RELAY answered that he spoke with the department, whose representative said that "the new fiscal notes will be for the new version of the bill in its next committee of referral." REPRESENTATIVE MCCABE maintained his objection to the motion to adopt Version I to HB 30. 4:29:17 PM A roll call vote was taken. Representatives Holland, Himschoot, Story, and Carrick voted in favor of the motion to adopt the proposed CS for HB 30, Version 34-LS0320\I, Gunther, 3/5/25, as a working document. Representatives McCabe, Moore, and Vance voted against it. Therefore, Version I was before the committee by a vote of 4-3. 4:30:15 PM REPRESENTATIVE VANCE said that she loved idea of helping new businesses, but questioned why the sponsor feels it the government's role to establish an office of entrepreneurship to address this issue when typically this is addressed by non- profit organizations and the private sector. REPRESENTATIVE HOLLAND, as prime sponsor of HB 30, responded that the new language offers requested specificity and may result in a "smaller fiscal note." He said the government plays an essential role in developing "the entrepreneurial and innovation ecosystem." He opined that HB 30, Version I, would be a step in accelerating desired diversification of the economy and supporting needed emerging sectors. He mentioned multiple reports supporting the idea of increased state involvement in developing industries, and he said the proposed legislation would create some of the resources by which to make this happen. 4:34:37 PM REPRESENTATIVE MCCABE said he struggles with idea of directing how state agencies should spend money. He said he cannot think of a worse body to direct state agencies than the legislature even though he allowed that that is the job of the legislature. He further expressed his unease about "streamlining government by adding more government." He added that he started new businesses without the help of government. He concluded that he would be a "no" vote on HB 30, Version I. 4:35:42 PM REPRESENTATIVE STORY talked about "the excitement of public testifiers in room" when sharing their experience starting businesses. She said she thinks it's time for state to grow its innovative spirit, and she stated her support for HB 30, Version I. 4:36:44 PM REPRESENTATIVE STORY moved to report CSHB 30, Version 34- LS0320\I, Gunther, 3/5/25, out of committee with individual recommendations and the accompanying fiscal notes. 4:37:00 PM REPRESENTATIVE MCCABE objected. 4:37:04 PM A roll call vote was taken. Representatives Holland, Himschoot, Story, and Carrick voted in favor of the motion to report CSHB 30, Version 34-LS0320\I, Gunther, 3/5/25 out of committee with individual recommendations and the accompanying fiscal notes. Representatives Moore, McCabe, and Vance voted against it. Therefore, CSHB 30(STA) was reported out of the House State Affairs Standing Committee by a vote of 4-3.