State of Alaska
Fiscal Note
Bill Version: CSHB 325(L&C)
2024 Legislative Session
Fiscal Note Number: 1
(H) Publish Date: 4/26/2024
Identifier: HB325-DCCED-CBPL-03-29-24 Department: Department of Commerce, Community and
Title: BUSINESS LICENSE FEES Economic Development
Sponsor: MINA Appropriation: Corporations, Business and Professional
Requester: (H) LABOR & COMMERCE Licensing
Allocation: Corporations, Business and Professional
Licensing
OMB Component Number: 2360
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2025 Governor's
Appropriation FY2025 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2025 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Personal Services
Travel
Services
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Fund Source (Operating Only)
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Positions
Full-time
Part-time
Temporary
Change in Revenues
1005 GF/Prgm (DGF) (1,551.8) (1,930.4) (2,239.6) (2,239.6) (2,239.6) (2,239.6) (2,239.6)
Total (1,551.8) (1,930.4) (2,239.6) (2,239.6) (2,239.6) (2,239.6) (2,239.6)
Estimated SUPPLEMENTAL (FY2024) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2025) cost: 0.0 (separate capital appropriation required)
Does the bill create or modify a new fund or account? No
(Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
ASSOCIATED REGULATIONS
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? No
If yes, by what date are the regulations to be adopted, amended or repealed? N/A
Why this fiscal note differs from previous version/comments:
Not applicable, initial version.
Prepared By: Sylvan Robb, Division Director Phone: (907)465-2524
Division: Division of Corporations, Business and Professional Licensing Date: 03/29/2024
Approved By: Hannah Lager, Administrative Services Director Date: 03/29/24
Agency: Commerce, Community, and Economic Development
Printed 4/26/2024 Page 1 of 2 Control Code: eYJYh
 CSHB 325(L&C) - Fiscal Note 1
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. HB 325
2024 LEGISLATIVE SESSION
Analysis
This legislation removes the fee for purchasing a new Alaska business license.
The division projects that a new, no-cost business license will be more attractive to many business owners than a license
renewal that requires a fee. The division estimates that 25% of businesses will opt to obtain a new business license in
FY2025 instead of renewing their existing license. The division projects that it may take several additional years for
awareness of this option to saturate the business community. It projects an additional 5% of businesses will opt to obtain
a new license instead of renewing in FY2026 and FY2027, at which point it anticipates renewal numbers holding steady.
These projections result in the loss in general fund dollars from business license revenue as reflected in the change in
revenue.
Business licensing at CBPL is funded by General Fund/Program Receipts - fund source 1005 GF/Prgm (DGF). Business
licensing fees are set per AS 43.70, and revenue in excess of authorized budgeted expenses reverts to the State of Alaska
general fund.
(Revised 10/31/2023 OMB/LFD) Page 2 of 2
HB325-DCCED-CBPL-03-29-24 Page 2 of 2 Control Code: eYJYh


Statutes affected:
HB0325A, AM HB 325, introduced 02/14/2024: 43.70.030
HB0325B, AM CSHB 325(L&C), introduced 04/26/2024: 08.01.065, 08.13.185, 08.61.090, 08.62.040, 08.62.175, 08.62.046, 08.62.140, 08.70.150, 08.80.160, 08.80.157, 08.98.190, 43.70.030