HB 139-RENT GOVERNORS MANSION  4:42:35 PM CHAIR CARRICK announced that the final order of business would be HOUSE BILL NO. 139, "An Act relating to renting the governor's mansion; and providing for an effective date." 4:43:05 PM REPRESENTATIVE WILL STAPP, Alaska State Legislature, as prime sponsor, introduced HB 139. He said the purpose of the bill is to start looking at different programs the state utilizes for cost savings. He said the governor's mansion is an asset that the state funds. 4:44:45 PM BERNARD AOTO, Staff, Representative Will Stapp, Alaska State Legislature, on behalf of Representative Stapp, prime sponsor, presented the sectional analysis for HB 139 [included in the committee file], which read as follows [original punctuation provided]: Section 1: Amends AS 44.19 (Office of the Governor) and adds a new section (AS 44.19.032) directing that the governor's mansion shall be rented on a short term basis when the legislature is not in session. Section 2: Sets an immediate effective date 4:45:38 PM CHAIR CARRICK asked Mr. Relay to do a quick overview of the fiscal note. 4:45:54 PM STUART RELAY, Staff, Representative Ashley Carrick, Alaska State Legislature, provided an overview of the fiscal note. This bill has an indeterminate fiscal note but provides an analysis [included in the committee file], which read as follows [original punctuation provided]: This bill requires the Office of the Governor to rent the governor's mansion on a short-term basis when the legislature is not in session, and the governor has not reserved the mansion in advance. The Office of the Governor would be required to adopt regulations and establish a system for making the governor's mansion available for a person or an entity to rent and to collect the fee charged for renting the mansion. The fiscal impact of this legislation cannot be determined because occupancy by the Governor cannot reliably be determined in advance and the mansion must be available for the governor's use on short notice, both during and outside of the legislative session. Added costs associated with unsupervised occupancy would include staff time to communicate with the renter, to manage the bookings and to manage access to the building, increased insurance and maintenance cost that includes wear and tear on the facility and its furnishings, potential modifications to the historic building to ensure the privacy and security of the residents and staff, and to complete security sweeps after an event or occupancy of the building. 4:47:25 PM CHAIR CARRICK questioned limiting the legislation knowing that it must be available, and she asked why it would be rentable only on non-session days. REPRESENTATIVE STAPP replied the intent was to make it as least prescriptive as possible. He wanted it to be the least disruptive. He said, for example, that the governor's mansion could host weddings to generate revenue. He said he has no issue with amendments to monetize this asset. CHAIR CARRICK asked whether it is known how many days have been spent in Juneau at the mansion by governors while in office. REPRESENTATIVE STAPP said it varies by governor. He said that no governor in his lifetime has spent an entire year in Juneau. 4:49:46 PM REPRESENTATIVE STORY pondered what the governor may think of the idea. REPRESENTATIVE STAPP said he mentioned it for a few years, and he indicated the response was, "We will see how it goes." REPRESENTATIVE STORY asked the bill sponsor to confirm that the response to the idea was to see how it goes. REPRESENTATIVE STAPP replied that he cannot remember the exact terminology that was used, but that was his interpretation. 4:51:19 PM REPRESENTATIVE MCCABE said that when looking at the legislative assembly building the same discussion was had. At the end of day, the settlement was that if a legislator wants to store stuff there, then the legislator will pay a fee. He asked if the bill would require the removal of the governor's property. He asked, "How would this be done?" REPRESENTATIVE STAPP said that he left regulations up to the Office of Governor. It would be the least disruptive and prescriptive as possible. REPRESENTATIVE MCCABE said that it is an interesting idea. He offered his understanding that all but four or five states have a governor's mansion. He asked whether this would be managed by the legislature or the governor. MR. AOTA confirmed that all but five states have a governor's mansion. Alabama, Michigan, New Jersey, and North Carolina have two state-owned residences for their executives. The language in bill would allow the Office of the Governor to manage the regulations. REPRESENTATIVE MCCABE asked if any other states do this. MR. AOTA replied that in his research he did not find any other states. He said several states allow the executive residence to be used for special events with a rental fee. 4:55:21 PM REPRESENTATIVE VANCE asked if the vague fiscal note has been explored and why it wasn't done well. REPRESENTATIVE STAPP said that in his experience with fiscal notes, sometimes the Office of Management & Budget (OMB) writes fiscal notes like they don't like the idea. He hasn't had a chance to talk with the OMB. He said that he will explore it further. 4:56:33 PM REPRESENTATIVE VANCE said that she is feeling cranky about the fiscal notes; over time there is an inconsistency with fiscal notes. She looked at another historic house; Jorgenson house is rented $600-800 a night in the summertime. Also, they rent the place for events. If OMB needed assistance, it could calculate based off other rental portfolios. She talked about rental mechanics and asked whether there is full-time staff on property right now. MR. AOTA confirmed that is correct, there are now people on site that work in the governor's mansion. In fiscal year 2026 (FY 26), the budget for the mansion is $531,100 allocated for personal services for a resident manager, a chef, and two housekeepers. REPRESENTATIVE VANCE said that this fiscal note would increase insurance and maintenance costs. She asked if they have insurance for public events now and whether this insurance would cover rentals. REPRESENTATIVE STAPP said it depends on how they would craft regulations. The building does have insurance. He questioned what the chef does in a full-time position during the summer. REPRESENTATIVE VANCE said that she is a traditionalist and doesn't want to rent out the mansion. She raised concerns about fiscal notes and reiterated the desire for better crafted ones. Noting that this is key to whether legislation gets forward motion. 5:00:52 PM CHAIR CARRICK said that while the House State Affairs Standing Committee doesn't usually review fiscal notes closely, she agreed that the fiscal note was inadequate. 5:01:25 PM REPRESENTATIVE STORY commented that as a representative in Juneau, she is proud of the capital building complex. The governor's mansion is historic; she wants to see it treated as a historic residence. It would be very important to protect the investment the state has in this piece of history. She stated that Juneau wants the governor, no matter what year, to feel welcome in the city. She is hesitant to support the bill. [HB 139 was held over.]