02/14/2025 03:15 PM House LABOR & COMMERCE

                  HB 34-AK INNOVATION COUNCIL                                                                               
                                                                                                                                
3:17:26 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS announced that the  first 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."                                                                                                 
                                                                                                                                
CO-CHAIR  FIELDS  announced  the  committee  would  hear  invited                                                               
testimony.                                                                                                                      
                                                                                                                                
3:18:05 PM                                                                                                                    
                                                                                                                                
JON   BITTNER,   Executive   Director,  Alaska   Small   Business                                                               
Development Center (ASBDC), gave  invited testimony in support of                                                               
HB 34.  He began by stating  that ASBDC has been in operation for                                                               
over 30 years,  with 8 offices around Alaska.   He stated ASBDC's                                                               
goal is  to help  start and support  small businesses  in Alaska.                                                               
He stated that  approximately 99 percent of  businesses in Alaska                                                               
qualify  as small  businesses under  the definition  used by  the                                                               
Small  Business Administration  (SBA).   He explained  that ASBDC                                                               
provides  a  variety of  services  to  support small  businesses,                                                               
including  individual advising,  workshops, training,  the Alaska                                                               
State Small Business Credit Initiative  (SSBCI), the Tribal SSBCI                                                               
consortium, and various buy-local programs.                                                                                     
                                                                                                                                
MR. BITTNER  stressed the importance of  small businesses, noting                                                               
that small  businesses in Alaska  drive new job creation  and the                                                               
existing  workforce.   He  asserted  that  small businesses  help                                                               
diversify  the economy,  making it  more stable  and robust.   He                                                               
stated that ASBDC  approves of any efforts to  focus attention on                                                               
how to support small businesses  in communities across the state.                                                               
He stated that ASBDC supported HB 34.                                                                                           
                                                                                                                                
3:20:32 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS opened public testimony on HB 34.                                                                               
                                                                                                                                
3:21:38 PM                                                                                                                    
                                                                                                                                
NORRIS  KRUEGER,  PhD,  Executive  Director,  Leadership  Council                                                               
Member, Ecosystem  Building Leadership Network  (EBLN), testified                                                               
in support  of HB 34.   He stated  that the biggest  complaint he                                                               
hears from  innovators is that  governments are not  listening to                                                               
them.   He asserted  that, if  executed well, HB  34 would  be an                                                               
inexpensive  way  to   both  guide  policy  and   give  voice  to                                                               
innovators in Alaska.  He shared  that he was involved in efforts                                                               
in Idaho  to create  a similar  innovation plan  approximately 20                                                               
years   ago,    called   the    Idaho   State    Innovation   and                                                               
Entrepreneurship Strategy.  He shared  an anecdote about Canada's                                                               
efforts  to  focus  on  innovation   policy.    He  concluded  by                                                               
reiterating that [HB 34] is "a  huge opportunity for a very small                                                               
amount of money  to make a real difference for  the people ... in                                                               
the  trenches  ...  whether  a  start-up  founder  [or]  a  small                                                               
business owner."                                                                                                                
                                                                                                                                
DR.  KRUEGER,  in  response to  a  question  from  Representative                                                               
Saddler regarding credentials, stated that  he has a research PhD                                                               
in entrepreneurship, and  he is on the leadership  network of the                                                               
EBLN.   Additionally, Dr. Krueger  said he mentors  start-ups and                                                               
advocates  for  innovation-friendly  policies at  the  state  and                                                               
national level.                                                                                                                 
                                                                                                                                
3:28:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  asked what  benefits small  businesses in                                                               
Alaska would receive with the passage of HB 34.                                                                                 
                                                                                                                                
3:28:52 PM                                                                                                                    
                                                                                                                                
DR.  KRUEGER  responded  that  a dozen  major  surveys  of  small                                                               
business owners  concluded that small business  owners would like                                                               
to be  heard, as opposed to  being told what to  do by government                                                               
entities.   He  offered an  anecdote to  Google Mapping,  arguing                                                               
that too often  in economic planning, every  "route" is carefully                                                               
planned without  a destination, whereas,  in Google  Mapping, the                                                               
beginning and end of a journey are clearly defined.                                                                             
                                                                                                                                
3:31:18 PM                                                                                                                    
                                                                                                                                
LAURA ODEN,  Owner/Founder, Pandere  Shoes, testified  in support                                                               
of  HB 34.   She  explained that  Pandere Shoes  makes expandable                                                               
footwear  for individuals  with medical  conditions.   She stated                                                               
that she has  owned multiple businesses and been  involved in the                                                               
startup community  in Alaska for 10  years.  She stated  that she                                                               
had mentored and counseled many start-ups in Alaska.                                                                            
                                                                                                                                
MS.  ODEN  emphasized  the inconsistency  in  support  for  small                                                               
businesses/start-ups in  Alaska.   She offered  appreciation that                                                               
the  Alaska  Innovation  Council  would  have  stakeholders  with                                                               
dedicated  annual meetings.   She  opined that  Alaska businesses                                                               
could use  intentional planning and  support on the  state level.                                                               
She is in support of HB 34.                                                                                                     
                                                                                                                                
3:33:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COULOMBE  asked  which types  of  supports  small                                                               
businesses in Alaska need the most.                                                                                             
                                                                                                                                
MS. ODEN  responded that she understood  that [identifying needed                                                               
types  of  support] to  be  a  function  of the  proposed  Alaska                                                               
Innovation  Council.   She  provided  some  personal examples  of                                                               
support:   having the right person  to talk to; having  the right                                                               
person to network  with; and financial support.   She offered her                                                               
belief that one of the  biggest needs for small businesses/start-                                                               
ups is access  to loans.  She stated, for  example, that a person                                                               
could get a $150,000 loan for a start-up but not a $15,000 loan.                                                                
                                                                                                                                
3:35:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  asked whether support requested  would be                                                               
"advice" or  "money."   Further, he  questioned what  the council                                                               
could  offer  that  current public  and/or  private  institutions                                                               
cannot.                                                                                                                         
                                                                                                                                
MS.  ODEN  replied  that  entrepreneurs are  always  in  need  of                                                               
advice, money, and  people.  She said she is  unsure what type of                                                               
support the council  would offer via the state.   She stated that                                                               
she could  offer what her business  needs but could not  speak to                                                               
every small business in Alaska.                                                                                                 
                                                                                                                                
3:37:12 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS,  after ascertaining that  there was no  one else                                                               
who wished to testify, closed public testimony on HB 34.                                                                        
                                                                                                                                
CO-CHAIR FIELDS announced that HB 34 was held over.