SCR 10-ALASKA YEAR OF INNOVATION  3:37:43 PM CHAIR MEYER announced the consideration of Senate Concurrent Resolution 10 (SCR 10). He asked the sponsor if she wanted the committee to adopt the committee substitute (CS). 3:38:15 PM SENATOR MIA COSTELLO, Alaska State Legislature, Juneau, Alaska, sponsor of SCR 10, explained that the proposed CS simply changes the year to 2019. 3:38:28 PM SENATOR GIESSEL moved to adopt the CS for SCR 10, version 30- LS0618\U, as the working document. 3:38:43 PM CHAIR MEYER announced that hearing no objection, the CS is before the committee. 3:39:12 PM DAKOTA ORM, Staff, Senator Costello, Alaska State Legislature, Juneau, Alaska, provided an overview of SCR 10 as follows: Senate Concurrent Resolution 10 would proclaim 2019 as the "year of innovation" in Alaska; this designation spotlights an issue or theme that is crucial to the state and highlights the work being done by the Legislature and Alaskans statewide. Innovation can help address all challenges facing Alaska whether that be harnessing technology or growing economic diversification. Alaskans are innovators by tradition and necessity. There's a pioneering spirit in our state that really requires innovation and adaptation; this goes back not only to the founders that helped build our state, but also the public policy in how we manage our resources. Declaring a "year of innovation" not only spurs conversations but allows organizations to take advantage of it in different ways; it also recognizes innovation that is already happening in our state now from the university level to groups like Lego Robotics to Lemonade Day. Alaska constructs a culture where innovation, entrepreneurship, and out-of-the-box thinking is encouraged and accepted and declaring a "year of innovation" will aid in the growth of this culture as well as Alaska's overall economy. 3:40:41 PM CHAIR MEYER opened public testimony 3:40:52 PM NIRAV DESAI, representing self, Seattle, Washington, testified in support of SCR 10. He said establishing a "year of innovation" lets the nation know that Alaska embraces innovation. He opined that Alaska's unique characteristics as the country's only Arctic state provides an environment to drive innovation and test technologies in harsh conditions. 3:42:59 PM MATT MORRISON, Executive Director, Pacific NorthWest Economic Region, Seattle, Alaska, testified in support of SCR 10. He said Alaska has a great opportunity to lead the nation in terms of arctic technologies and adapting to climate change innovations. 3:45:32 PM ROBERT COKER, Ambassador, Office of Intellectual Property and Commercialization (OPIC), University of Alaska-Fairbanks (UAF), Fairbanks, Alaska, testified in support of SCR 10. He noted that he is also an associate professor at the Institute of Arctic Biology at UAF. He added that he started a company in 2013 called Essential Blends, a company focused on the development of clinical nutrition for conditions like muscle atrophy, obesity, and substance abuse. He revealed that Essential Blends leads the state in funding from the National Institutes of Health and has worked with local health-care providers to improve the efficacy of its products. He said he is very passionate about developing a culture of academic entrepreneurship in Alaska that engages faculty, students, staff, and communities. He summarized that he fully supports SCR 10 and asserted that the state needs to promote a culture of innovation and commercialization. He emphasized that the university environment should contribute to the innovation opportunity. 3:47:48 PM MARK BILLINGSLEY, employee, Technology Transfer Office, Office of Intellectual Property and Commercialization (OIPC), University of Alaska-Fairbanks, Fairbanks, Alaska, testified in support of SCR 10. He explained that OIPC works to commercialize the research that is done at UAF. He said OIPC looks to license and sell its research, often to startup companies. He asserted that OIPC fosters innovation to keep its "pipeline flowing." He noted that the University of Alaska system is a major source of innovation and encourages everyone to look to the university for innovation. He summarized that innovation represents a great opportunity for Alaska's economy-of-tomorrow by keeping the state's best-and- brightest children in the state to develop a stronger, diversified and sustainable economy. He added that legislators are welcome to attend the Arctic Innovation Competition in Fairbanks in October. 3:49:33 PM LARRY HINZMAN, Vice Chancellor-Research, University of Alaska- Fairbanks, Fairbanks, Alaska, testified in support of SCR 10. He explained that his job is to help promote research activities throughout the campus and across the state. He asserted that SCR 10 will help in many respects. He opined that the state is in a tough time with its economy, but the state cannot cut its way out. He set forth that the state must grow by diversifying its economy. 3:51:45 PM PAUL LAYER, Vice President, Academic and Student Affairs, University of Alaska, Fairbanks, Alaska, testified in support of SCR 10. He said the University of Alaska system has a long tradition of advancing innovation and entrepreneurialism throughout Alaska. He asserted that innovation is a key component to moving Alaska to a more sustainable and diversified economy. He summarized that the University of Alaska looks forward to highlighting its activities, encourages innovation across the state, and to develop new partnerships during the Alaska "year of innovation." 3:54:41 PM NOLAN KLOUDA, Director, University of Alaska Center for Economic Development (CED), University of Alaska-Anchorage, Anchorage, Alaska, testified in support of SCR 10. He referenced Senator Costello's sponsor's statement that said startups are responsible for creating virtually all net-employment growth in the private sector in the U.S. and the same is true in Alaska. He disclosed that CED has found that startup companies annually create approximately 4,000 to 6,000 jobs in Alaska, a trend that continues during the state's recession. He asserted that the startup statistics testify to the importance of innovation by adding employment to the economy. He summarized that the "year of innovation" designation would add attention to the innovative things that Alaskans are already doing as well as direct more focus about how to support innovation in the state's economy as well as how to further position Alaska's entrepreneurs for success. 3:58:03 PM JULIET SHEPHERD, Technology Project Manager, Fairbanks Economic Development Corporation, Fairbanks, Alaska, testified in support of SCR 10. She disclosed that she works with entrepreneurs, startups, and with the extended economic development community in Fairbanks and across Alaska. She opined that combining the "year of innovation" with other institutional and university efforts will provide entry points for individuals who are interested in developing entrepreneurial skills or business idea to be able to increase their skill level, develop their team, and gain access to capital. 4:01:09 PM CHAIR MEYER closed public testimony. 4:01:44 PM SENATOR GIESSEL moved to report [CSSCR 10(STA)], version 30- LS0618\U from committee with individual recommendations and attached zero fiscal note. 4:02:04 PM CHAIR MEYER said being no objection, the motion carried.