HB 325-BUSINESS LICENSE FEES  CHAIR SUMNER announced that the final order of business would be HOUSE BILL NO. 325, "An Act relating to business license fees; and providing for an effective date." 5:04:14 PM REPRESENTATIVE RUFFRIDGE moved to adopt the proposed committee substitute (CS) for HB 325, Version 33-LS1090\S, Nauman, 4/2/24, as the working document. There being no objection, Version S was before the committee. 5:04:42 PM REPRESENTATIVE GENEVIEVE MINA, Alaska State Legislature, as prime sponsor, introduced HB 325 to the committee. 5:05:06 PM REMINGTON PINELL, Staff, Representative Genevieve Mina, Alaska State Legislature, on behalf of Representative Mina, prime sponsor, began by reading the sectional analysis for Version S [included in committee packet], which read as follows [original punctuation provided]: Section 1: Removes "investigation fees" as a fee type that is set in regulation by the department for professional licenses. Section 2: Removes the definition of "regulatory costs" from AS 08.01.065(c). Section 3: The definition of "regulatory costs" is relocated to this section with an added clarification that "regulatory costs" does not include disciplinary investigations or actions involving unlicensed practice or legal and actual costs associated with complaints, hearings, mediation, and settlement. Sections 4-10 make conforming changes: Section 4: Removes reference to fees for investigations. Section 5: Removes reference to investigation fees for massage therapists. Sections 6 & 7: Removes reference to investigation fees for marine pilots. Section 8: Replaces investigation fees with evaluation fees for nursing home administrators. This is for clarity, as "investigation" means "evaluation" in this context. Section 9: Replaces investigation fees with evaluation fees for pharmacists and pharmacies. This is for clarity, same as Section 8. Section 10. Replaces investigation fees with evaluation for veterinarians. This is for clarity, same as Section 8. Section 11: HB 325 Version B specified that all first- time business license fees would be set at $0. HB 325 Version S removes this and instead adds a new subsection specifying a new exemption for paying the full business fee: if a business is a sole proprietorship, and that sole proprietor receives public assistance, then the fee is $0. Section 12. Sets the effective date to July 1, 2024 5:07:01 PM REPRESENTATIVE MINA explained that Version S aims to strengthen Alaska's economy by empowering economically disadvantaged Alaskans to receive public benefits to pursue entrepreneurial endeavors. She said that currently, business license fees in Alaska are prohibitive for some Alaskans and emphasized that HB 325, Version S, is specific to Alaskans who already receive some sort of public benefit. 5:10:06 PM REPRESENTATIVE SADDLER asked how the proposed business license price would increase levels of entrepreneurship in Alaska. REPRESENTATIVE MINA said that Version S would waive the business license fee of $50 altogether for qualified individuals. In response to a follow-up question, she said she believed that added bureaucracy could be an impediment to those wishing to start a business. 5:12:31 PM REPRESENTATIVE CARRICK asked what the cost of a business license was during the COVID-19 pandemic. REPRESENTATIVE MINA explained that business license fees were waived altogether during the pandemic. 5:13:23 PM SYLVAN ROBB, Director, Division of Corporations, Business, and Professional Licensing, Department of Commerce, Community & Economic Development, (DCCED), confirmed that Representative Mina's answer was correct and explained that business license fees in Alaska were waived entirely from April 3, 2020, through January 31, 2023. 5:13:58 PM REPRESENTATIVE CARRICK asked whether the number of licenses increased during the pandemic. MS. ROBB said she would follow up with an answer later. 5:14:28 PM REPRESENTATIVE PRAX inquired about the fiscal note associated with HB 325. MS. ROBB responded that while the division handles itself through business license fees, the majority of its funding comes from the general fund. 5:15:31 PM CHAIR SUMNER announced that HB 325, Version S, was held over.