Legislature(2025 - 2026)BARNES 124
02/10/2025 03:15 PM House LABOR & COMMERCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Housing in Alaska, Opportunities and Challenges | |
| HB80 | |
| HB34 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HB 80 | TELECONFERENCED | |
| *+ | HB 34 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 34-AK INNOVATION COUNCIL
[Contains discussion of HB 30.]
4:52:54 PM
CO-CHAIR FIELDS announced that the final order of business would
be HOUSE BILL NO. 34, "An Act establishing the Alaska Innovation
Council; and relating to financial disclosures for members of
the Alaska Innovation Council."
4:54:04 PM
REPRESENTATIVE KY HOLLAND, Alaska State Legislature, as prime
sponsor, presented HB 34. He shared that he has been involved
in the Alaska entrepreneurial and innovation ecosystem for
approximately 10 years. He stated that innovation is the center
of the economy in the United States. He said that the U.S.
economy has grown two-thirds since World War II, largely due to
innovation and the evolution of technology. He stated the
opportunity for innovation has resulted in the development of
new businesses. He cited the creation of General Communications
Incorporated (GCI) as an example of entrepreneurial innovation.
REPRESENTATIVE HOLLAND asserted that the opportunity in Alaska
is in diversifying the economy and investing in high-growth
emerging sectors, such as mariculture, seafood technologies &
logistics, et cetera. He explained that Alaska published a
Comprehensive Economic Development Strategy (CEDS) in 2022 and
highlighted goals including: cultivating growth sectors,
supporting an entrepreneurial ecosystem, building & updating
foundations, developing Alaska's workforce, building a resilient
economy, and strengthening Alaska's economic engine. He
emphasized that 89 percent of net job creation in Alaska over 10
years is generated from businesses that are less than five years
old. He argued that Alaska's economy has been relatively
stagnant for about 15 years, stating that the number of
companies has been "relatively flat" and that the working
population has decreased.
REPRESENTATIVE HOLLAND referred to a PowerPoint presentation
[hard copy included in committee file], to highlight the
proposed provisions of HB 34. He drew attention to the fifth
slide, which read as follows [original punctuation provided]:
Creates a 19-member Alaska Innovation Council with
representatives from government, industry, academia,
labor, and investment sectors.
Develops an annual Innovation & Economic
Competitiveness Plan for the Governor and Legislature.
Establishes an Innovation Index to benchmark Alaska's
progress against national metrics.
REPRESENTATIVE HOLLAND stated that HB 34 would be tied to the
Department of Commerce, Community and Economic Development
(DCCED) for the purpose of developing new businesses and
allowing them to thrive. He referenced the Joint Legislative
Seafood Task Force, the [2024] Sustainable Energy Task Force,
and the Mariculture Task Force - all of which identify a need
for innovation and growth acceleration of new businesses.
REPRESENTATIVE HOLLAND shared that he drew inspiration for HB 34
from Calgary and Alberta, Canada, which utilized an "innovation
council type of structure." He explained that Calgary's economy
was heavily reliant on oil, gas, and mining approximately 15
years ago. He stated that Calgary, upon the realization that
there was little growth in oil, gas, and mining, brought
together a group of people with the aim of creating 1,000 new
technology startups by 2030. He maintained that Calgary is
still supporting their legacy economies [oil, gas, mining] in
addition to developing data science, energy technologies, and
healthcare technology. He further referenced innovation
councils established in Utah and Washington.
REPRESENTATIVE HOLLAND concluded by describing the outcomes of
the proposed legislation, including job creation and business
development. Additionally, he offered his hope that HB 34 would
help to keep young people in Alaska and excite them regarding
future prospects. Finally, he noted that HB 30 includes an
entrepreneurship office and includes provisions for DCCED to
support emerging entrepreneurial activities. He stated that HB
34 and HB 30 are complimentary and do not overlap with each
other.
5:04:31 PM
JACQUELINE SUMMERS, Executive Director, Health TIE, gave invited
testimony during the hearing on HB 34. She explained that
Health TIE is an Alaska-based healthcare innovative hub. She
reported that Alaska has some of the highest healthcare costs in
the country. She stated that, through work with startups both
in and outside of Alaska, she has launched a series of pilot
projects with new methods for addressing opioid use/treatment,
independence for those with intellectual/developmental
disabilities, those with traumatic brain injuries (TBIs), and
senior care. She emphasized that there is a need for
coordination of activities within the entrepreneurial ecosystem.
She described challenges to connecting healthcare startups with
local nonprofit organizations and social services. She
concluded by offering strong support for HB 34.
5:06:32 PM
LINDA JANES, Managing Director, gBETA, gener8tor, gave invited
testimony during the hearing on HB 34. Since 2021, Ms. Janes
stated, gBETA at gener8tor helped raise over $5.5 million to
initiate 30 companies and sustain 91 jobs. She gave a list of
the various industries she works with, including housing in
rural communities, clean outdoor air technology, aviation
weather monitoring, food preservation, industrial facilities,
sustainable energy generation, oil and gas, and many more. She
said that a strong support network is critical to success,
especially in an "islanded place" like Alaska. A strong support
network entails access to early capital, mentorships, exposure
to like-minded entrepreneurs, and innovation-supported
infrastructure. She offered her belief that HB 34 addresses the
need [for a strong support network] by assembling a council of
investors, entrepreneurs, and industry leaders who would advise
on best practices, enhance commercialization efforts, promote
capital formation in Alaska, and identify opportunities for
action.
MS. JANES opined that the cost attached to HB 34 should be
looked at as an investment, not "throwing money away," and noted
that the investment of time and money create returns. She
argued that there is a false sense of security in Alaska and
further stated that the demand for medical jobs is increasing,
primarily due to the aging population in Alaska that is expected
to peak in 2035. However, she argued that the long-term
economic landscape shows an out-migration of young, working
people due to a lack of "ongoing opportunities." Ms. Janes
concluded that people in Alaska need to see the State of Alaska
invest in long-term opportunities for the state.
5:10:10 PM
CO-CHAIR FIELDS invited questions from committee members.
5:10:19 PM
REPRESENTATIVE COULOMBE asked how the Alaska Small Business
Development Center (ASBDC) is different from the proposed
council.
5:10:58 PM
REPRESENTATIVE HOLLAND answered that ASBDC provides a broad
array of services, particularly for "bankable" local businesses
or businesses that are eligible for a loan or are
"bootstrap[ped]." He offered commentary that technology
businesses and technology transfers require a different set of
skills. He noted that Path to Prosperity [Business Competition]
has been a successful program in Southeast Alaska (SEAK) in
helping local entrepreneurs develop businesses, and programs
like that would be complemented by ASBDC. He stated that ASBDC
is one of many tools that aspiring entrepreneurs/businessowners
can utilize for aid. He stated that in many cases,
entrepreneurs need additional help with customer
validation/discovery work.
REPRESENTATIVE HOLLAND provided an example, stating that GBeta
would help an aspiring entrepreneur with creating an investable
business model, which might eventually lead to a small business
opportunity that is "bankable" and thus could use help from the
ASBDC. He stated that, throughout the country, it is common to
see the entrepreneurial ecosystems feed into the SBDCs.
5:13:30 PM
REPRESENTATIVE SADDLER remarked that HB 34 would create a 19-
member council. He asked what would oblige the legislature or
the administration to follow or implement the recommendations of
the Alaska Innovation Council.
REPRESENTATIVE HOLLAND explained that he did not intend to
create required action in statute. He stated that the function
of the Alaska Innovation Council would be advisory, and the
Council could identify potential state action.
REPRESENTATIVE SADDLER clarified that the function of the Alaska
Innovation Council would be to generate advice. He asserted
that the cost of the proposed legislation would be "significant"
at $500,000.
REPRESENTATIVE HOLLAND responded that the Alaska Innovation
Council would be a "next step" in developing methodologies for
implementing Alaska's 2022 CEDS, for example. He agreed with
Representative Saddler, asserting that whether action is taken
would be dependent on the will of the commissioners, the
governor, and the legislature. He reiterated that HB 34 would
not be "binding" but argued that Alaska "would have to go beyond
plans on a shelf that are ignored."
REPRESENTATIVE SADDLER asserted that he does not see how the
advice would be taken into action with the voluntary model of
the proposed legislation.
REPRESENTATIVE HOLLAND gave an anecdotal response, stating that
when starting a business, one typically writes a business plan.
He added that enforcement of a business plan is not mandatory.
He continued that, if a business plan is well thought out and
given to the right people, people would commit time and
resources towards action, such as getting said business afloat.
He further noted that there is no end to business plans that
have been thought out and never acted upon. He concluded by
offering his hope that the legislature would pursue action
recommendations of the proposed Alaska Innovation Council.