05/12/2025 09:00 AM House FINANCE

HOUSE BILL NO. 34                                                                                                             
                                                                                                                                
     "An Act establishing the Alaska Innovation Council;                                                                        
     and relating to financial disclosures for members of                                                                       
     the Alaska Innovation Council."                                                                                            
                                                                                                                                
9:26:37 AM                                                                                                                    
                                                                                                                                
Representative   Holland  explained   that  HB   34  was   a                                                                    
macroeconomic bill.  He remarked that  HB 30 focused  on the                                                                    
success of  individuals, their ability to  access resources,                                                                    
and their potential to grow  and expand businesses and their                                                                    
impact   in  Alaska,   while  HB   34  provided   a  broader                                                                    
perspective  by establishing  the Alaska  Innovation Council                                                                    
(AIC). He relayed that the  council would bring together key                                                                    
leadership across  the state, including the  university, the                                                                    
State  of  Alaska,   entrepreneurs,  industry  leaders,  and                                                                    
providers  of  risk  capital.  The  economic  leaders  would                                                                    
collaborate to identify  strategic opportunities for Alaska,                                                                    
determine the  unique areas where  Alaska had  the potential                                                                    
to grow,  and establish the policies  and programs necessary                                                                    
to support diversification of the  economy and the growth of                                                                    
emerging sectors.                                                                                                               
                                                                                                                                
Representative Holland  emphasized that  initiatives already                                                                    
identified  as   priorities  included   energy,  technology,                                                                    
mariculture,  logistics, and  unmanned  aerial vehicles.  He                                                                    
asserted that  the priority areas represented  the future of                                                                    
Alaska's  economy  and  required   support  to  develop  and                                                                    
expand. He  noted that over  the past ten years,  89 percent                                                                    
of net new  job creation had come from  businesses less than                                                                    
five years old.  He stressed the importance  of creating new                                                                    
jobs  in  emerging  industries   that  would  attract  young                                                                    
workers  and would  provide the  foundation for  the state's                                                                    
future.                                                                                                                         
                                                                                                                                
Representative    Holland    clarified   that    traditional                                                                    
industries  such  as  oil,  gas,  and  mining  would  remain                                                                    
essential  components  of   the  state's  economy.  However,                                                                    
growth would  come from emerging  sectors identified  in the                                                                    
state's  economic  development  strategy. He  remarked  that                                                                    
Alaska   needed  to   position  itself   where  the   future                                                                    
opportunities lay, while continuing  to invest in its legacy                                                                    
economic  engines. He  stated that  AIC would  serve as  the                                                                    
convening  body to  bring together  both public  and private                                                                    
leadership  and  resources   to  identify,  prioritize,  and                                                                    
implement actions that would move the state forward.                                                                            
                                                                                                                                
Representative Holland  explained that the bill  was modeled                                                                    
after  the  Oregon  Innovation  Council,  which  began  with                                                                    
similar  legislation to  create  convening  power. He  added                                                                    
that  Oregon  had leveraged  the  council  into an  economic                                                                    
driver that  fostered significant growth. He  noted that the                                                                    
model  followed examples  in Alberta  and  Calgary, where  a                                                                    
decline caused  by the loss of  35 percent of oil,  gas, and                                                                    
mining workforce and leadership  had been reversed through a                                                                    
strategy    of    identifying   innovation    opportunities,                                                                    
partnering with universities, and  aligning local talent. He                                                                    
remarked  that  Calgary  had transformed  into  an  economic                                                                    
leader in North America.                                                                                                        
                                                                                                                                
Representative   Holland  compared   Alberta's  economy   to                                                                    
Alaska's,  noting that  both were  remote  and dependent  on                                                                    
natural resources.  He explained  that Alberta had  built on                                                                    
its resource base to create  a future economy and had become                                                                    
a model  for innovation,  entrepreneurship, job  growth, and                                                                    
new business creation. He hoped  to build a similar model in                                                                    
Alaska.                                                                                                                         
                                                                                                                                
9:31:34 AM                                                                                                                    
                                                                                                                                
Co-Chair  Foster OPENED  public testimony.  He asked  if Ms.                                                                    
Summers wished to provide testimony.                                                                                            
                                                                                                                                
9:31:59 AM                                                                                                                    
                                                                                                                                
Ms.  Summers   remarked  that  there  was   an  unbelievable                                                                    
opportunity to look at the  future for Alaska, but a guiding                                                                    
group was  needed to lead  the work. She observed  that many                                                                    
efforts were underway in the  state but the efforts were not                                                                    
coordinated or  aligned toward a  common goal.  She asserted                                                                    
that  the  council  would  be  instrumental  in  avoiding  a                                                                    
"scattershot"  approach and  would enable  a focused  effort                                                                    
that  could gain  traction and  succeed. She  reiterated her                                                                    
support for the bill.                                                                                                           
                                                                                                                                
Co-Chair   Foster  thanked   Ms.  Summers   and  asked   for                                                                    
confirmation that  she served as  the executive  director of                                                                    
the Health Testbed Innovation Enterprises in Anchorage.                                                                         
                                                                                                                                
Ms. Summers responded in the  affirmative and added that she                                                                    
also conducted consulting work.                                                                                                 
                                                                                                                                
9:33:10 AM                                                                                                                    
                                                                                                                                
Co-Chair Foster CLOSED public testimony.                                                                                        
                                                                                                                                
Representative  Galvin   understood  that   several  similar                                                                    
organizations   and   federal  programs   already   existed,                                                                    
including  the federal  Small  Business Innovation  Research                                                                    
Program  and the  U.S. Economic  Development Administration.                                                                    
She  asked  how AIC  would  work  with federal  entities  to                                                                    
ensure  that  the  efforts were  complementary  rather  than                                                                    
duplicative.                                                                                                                    
                                                                                                                                
Representative Holland responded  that the two organizations                                                                    
referenced by  Representative Galvin  were among a  dozen or                                                                    
more similar  entities. He noted  that each  program carried                                                                    
out important work but the  essential piece that was missing                                                                    
was the convening ability to  bring all of the organizations                                                                    
into the  same room.  He stressed that  it was  essential to                                                                    
link  and  leverage  the programs.  He  explained  that  the                                                                    
strength  of a  startup ecosystem  came from  helping people                                                                    
identify the next relevant program  or step and guiding them                                                                    
through  the process.  He stated  that building  an economic                                                                    
ecosystem was different from replicating existing work.                                                                         
                                                                                                                                
Representative Holland  relayed that  there were  no current                                                                    
efforts to  convene the organizations. He  compared the need                                                                    
to  convene  the organizations  to  a  similar need  at  the                                                                    
Alaska Workforce  Investment Board (AWIB), which  linked and                                                                    
leveraged  individual  workforce   development  efforts.  He                                                                    
emphasized that connecting  the development efforts provided                                                                    
pathways  for  students  moving from  high  school  to  dual                                                                    
credit,  into post-secondary  training, and  for those  with                                                                    
apprenticeship or  military training who sought  to complete                                                                    
degrees.  He  asserted that  the  same  type of  coordinated                                                                    
pathway was  needed for business development.  He added that                                                                    
several programs were  in danger due to lack  of funding and                                                                    
could  be  lost  soon.  He   remarked  that  while  avoiding                                                                    
duplication was  important, the more  urgent matter  was the                                                                    
strategic discussion of what would happen if the essential                                                                      
programs disappeared.                                                                                                           
                                                                                                                                
Co-Chair Foster set an amendment deadline for HB 34 for                                                                         
Thursday, May 15, 2025, at 5:00 p.m.                                                                                            
                                                                                                                                
HB 34 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                
9:39:23 AM                                                                                                                    
                                                                                                                                
Co-Chair Foster reviewed the meeting agenda for the                                                                             
afternoon.