Legislature(2025 - 2026)BARNES 124

02/28/2025 09:00 AM House LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
*+ HB 113 TAX EXEMPTION: SMALL BUSINESS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+= HB 34 AK INNOVATION COUNCIL TELECONFERENCED
Moved CSHB 34(L&C) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
                  HB 34-AK INNOVATION COUNCIL                                                                               
                                                                                                                                
9:22:01 AM                                                                                                                    
                                                                                                                                
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."  [Before  the committee, adopted                                                               
as  a working  document on  2/24/25, was  the proposed  committee                                                               
substitute (CS)  for HB 34, Version  34-LS0353\G, Gunter, 2/24/25                                                               
("Version G").]                                                                                                                 
                                                                                                                                
9:22:12 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 9:22 a.m. to 9:25 a.m.                                                                       
                                                                                                                                
9:25:44 AM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS invited questions  from committee members.  There                                                               
being  no  questions,  Co-Chair Fields  invited  amendments  from                                                               
committee members.                                                                                                              
                                                                                                                                
9:26:01 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COULOMBE  moved to adopt  Amendment [1] to  HB 34,                                                               
Version G,  labeled 34-LS0353\G.3,  Gunther, 2/27/25,  which read                                                               
as follows:                                                                                                                     
                                                                                                                                
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      meeting telephonically or by electronic means if the                                                                      
     member obtains approval from the chair."                                                                                   
                                                                                                                                
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     entitled to  only transportation and per  diem expenses                                                                    
     as   provided  in   AS 39.20.180  when   not  otherwise                                                                    
     entitled  to transportation  or  per  diem expenses  by                                                                    
     another law."                                                                                                              
                                                                                                                                
9:26:07 AM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS objected for the purpose of discussion.                                                                         
                                                                                                                                
9:26:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COULOMBE  stated  her primary  concern  with  the                                                               
proposed legislation  was the cost.   She further  explained that                                                               
she  worked   with  the   sponsor  [Representative   Holland]  on                                                               
Amendment 1.   She explained that Amendment [1]  would change the                                                               
meetings under HB  34 from in-person to  electronic, removing any                                                               
costs associated with travel.                                                                                                   
                                                                                                                                
9:26:44 AM                                                                                                                    
                                                                                                                                
REPRESENATIVE  KY   HOLLAND,  Alaska  State   Legislature,  prime                                                               
sponsor of  HB 34, stated that  he was supportive of  Amendment 1                                                               
to HB 34.  He stated that  Amendment 1 would bring clarity to the                                                               
proposed legislation.                                                                                                           
                                                                                                                                
9:27:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CARRICK asked  whether the  meetings would  still                                                               
take place in person with the  option to telephone in, or whether                                                               
the meeting  would be entirely  electronic.  She  voiced concerns                                                               
about meetings taking place in the same place every time.                                                                       
                                                                                                                                
REPRESENTATIVE  COULOMBE replied  that  it would  be optional  to                                                               
meet in-person or  electronically and that she  intended to leave                                                               
the decision up  to the Alaska Innovation  Council proposed under                                                               
HB 34.                                                                                                                          
                                                                                                                                
9:27:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  noted  that HB  34  includes  provisions                                                               
stating that  the proposed Alaska  Innovation Council  shall meet                                                               
at  least three  times a  year and  does not  designate an  upper                                                               
limit to  the number  of meetings.   He  offered his  support for                                                               
Amendment 1.                                                                                                                    
                                                                                                                                
9:28:07 AM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS  withdrew his  objection to  the motion  to adopt                                                               
Amendment  1  to HB  34,  Version  G.    There being  no  further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
9:28:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COULOMBE  moved to adopt  Amendment [2] to  HB 34,                                                               
Version G,  as amended, labeled 34-LS0353\G.5,  Gunther, 2/27/25,                                                               
which read as follows:                                                                                                          
                                                                                                                                
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          Delete "; the members appointed under this                                                                            
      paragraph must include one member who is experienced                                                                      
        in applied-research focused on the state and one                                                                        
     member who"                                                                                                                
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          Delete "A legislator serving on the council is                                                                        
     entitled to  only transportation and per  diem expenses                                                                    
     as   provided  in   AS 39.20.180  when   not  otherwise                                                                    
     entitled  to transportation  or  per  diem expenses  by                                                                    
     another law."                                                                                                              
                                                                                                                                
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9:28:24 AM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS objected for the purpose of discussion.                                                                         
                                                                                                                                
REPRESENTATIVE COULOMBE  explained that Amendment 2  would reduce                                                               
the total  membership in the  proposed Alaska  Innovation Council                                                               
by two.   She explained that the proposed  amendment would remove                                                               
the executive  director of the Alaska  Industrial Development and                                                               
Export Authority  (AIDEA) or designee and  the executive director                                                               
of  the Alaska  Commission on  Postsecondary Education  (ACPE) or                                                               
designee.    She stated  Amendment  2  would add  two  additional                                                               
members to  the private sector,  one with  a rural focus  and one                                                               
with  an urban  focus. She  stated  that Amendment  2 would  also                                                               
remove the legislators from the  commission and reduce the number                                                               
of members  from the University of  Alaska (UA) from two  to one.                                                               
She further  explained that Amendment  2 would remove  the member                                                               
from UA  who is  experienced in applied  research focused  on the                                                               
state.   She  advised that  her intention  in reducing  the total                                                               
membership  of  the proposed  Alaska  Innovation  Council was  to                                                               
reduce the cost.                                                                                                                
                                                                                                                                
9:29:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLLAND  shared  that  he is  supportive  of  the                                                               
changes in Amendment  2 but stated that the  proposed changes are                                                               
not without  cost.   He offered his  belief that  Alaska's future                                                               
would  be  dependent  on how  research  translates  to  practical                                                               
ventures and  the proposed amendment  would remove the  seat that                                                               
would bring in  more focused research.  He recalled  that some of                                                               
the  goals of  the  proposed Alaska  Innovation  Council were  to                                                               
identify   opportunities  from   commercialized  research.     He                                                               
additionally stated  his hope that legislators  would be involved                                                               
in  the proposed  Alaska  Innovation Council,  as  well as  AIDEA                                                               
playing a larger role in  supporting economic diversification and                                                               
emerging sectors.  He acknowledged  the desire to reduce the size                                                               
of the  proposed Alaska Innovation Council,  thereby reducing the                                                               
fiscal  note.   He  offered  his  hope  in recognizing  that  the                                                               
meetings that  would take place  under HB 34 would  be purposeful                                                               
in inviting  the individuals  that are taken  off the  council in                                                               
the  legislative process.   He  further noted  that the  proposed                                                               
Alaska  Innovation  Council   was  not  meant  to   be  a  tight,                                                               
functioning  group; rather,  it  would serve  as  a convening  of                                                               
individuals.                                                                                                                    
                                                                                                                                
9:32:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK  clarified that  Amendment 2  would result                                                               
in a net  reduction of three individuals.  She  further asked how                                                               
much the amendment would reduce the fiscal note.                                                                                
                                                                                                                                
9:32:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COULOMBE  replied  that the  proposed  amendments                                                               
could bring  the fiscal note  down to $130,000 from  the original                                                               
fiscal note of $500,000.                                                                                                        
                                                                                                                                
9:32:48 AM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS withdrew  his objection to Amendment 2  to HB 34,                                                               
Version G, as amended.                                                                                                          
                                                                                                                                
9:32:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK objected.                                                                                                
                                                                                                                                
REPRESENTATIVE CARRICK stated that  she appreciates the work that                                                               
the  amendment sponsor  put  into reducing  the  fiscal note  and                                                               
shares  concern over  costs.   She further  stated that  the bill                                                               
sponsor made  a good argument  related to retaining  the research                                                               
position  from  UA  and  the   executive  director  of  ACPE,  as                                                               
essential to  the innovation environment.   She further clarified                                                               
that she  would oppose the  amendment, with some  hesitation, due                                                               
to the removal of those two specific aforementioned members.                                                                    
                                                                                                                                
9:33:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COULOMBE  reminded   members  that  the  proposed                                                               
Alaska  Innovation Council  was  being requested  "on the  states                                                               
dime."   She asserted that  the removed members could  be invited                                                               
to meetings.  She urged committee members to vote yes.                                                                          
                                                                                                                                
9:34:22 AM                                                                                                                    
                                                                                                                                
CO-CHAIR   FIELDS  stated   that  he   understood  Representative                                                               
Carrick's concerns but would vote  yes because he worked with the                                                               
amendment sponsor in good faith.                                                                                                
                                                                                                                                
9:34:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  stated that he appreciated  the amendment                                                               
and  felt   that  it  was   reflective  of  the   state's  fiscal                                                               
environment.                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK  maintained her  objection to  Amendment 2                                                               
to HB 34, Version G, as amended.                                                                                                
                                                                                                                                
9:35:31 AM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.   Representatives Coulombe, Saddler,                                                               
Burke, Hall,  and Fields voted  in favor  of the motion  to adopt                                                               
Amendment 2  to HB  34, Version G,  as amended.   Representatives                                                               
Carrick voted against  it.  Therefore, Amendment  [2] was adopted                                                               
by a vote of 5-1.                                                                                                               
                                                                                                                                
9:35:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  shared concerns  about the powers  of the                                                               
proposed  Alaska Innovation  Council.   He  further stated  that,                                                               
philosophically,  he  felt  uncomfortable  with  the  legislature                                                               
formalizing and channeling drive for innovation.                                                                                
                                                                                                                                
9:37:12 AM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS entertained a motion.                                                                                           
                                                                                                                                
9:37:18 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  HALL  moved to  report  CSHB  34, Version  34-LS0353\G,                                                               
Gunter,  2/24/25, as  amended, out  of committee  with individual                                                               
recommendations and the accompanying fiscal notes.                                                                              
                                                                                                                                
9:37:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER objected.                                                                                                
                                                                                                                                
A  roll call  vote was  taken.   Representatives Burke,  Carrick,                                                               
Coulombe,  Hall, and  Fields  voted  in favor  of  the motion  to                                                               
report  CSHB   34,  Version  34-LS0353\G,  Gunter,   2/24/25,  as                                                               
amended,  out of  committee with  individual recommendations  and                                                               
the  accompanying fiscal  notes.    Representative Saddler  voted                                                               
against  it.   Therefore, CSHB  34(L&C) was  reported out  of the                                                               
House Labor and Commerce Standing Committee by a vote of 5-1.                                                                   

Document Name Date/Time Subjects
HB0113A.pdf HL&C 2/28/2025 9:00:00 AM
HB 113
HB 113 Sponsor Statement 2.27.2025.pdf HL&C 2/28/2025 9:00:00 AM
HB 113
HB 113 Ver A Sectional Analysis 2.27.2025.pdf HL&C 2/28/2025 9:00:00 AM
HB 113
HB 113 Supporting Document-PPT 2.27.2025.pdf HL&C 2/28/2025 9:00:00 AM
HB 113
HB 34_HLC_CS.pdf HL&C 2/24/2025 3:15:00 PM
HL&C 2/28/2025 9:00:00 AM
HB 34
HB34_G_explanation of changes.pdf HL&C 2/24/2025 3:15:00 PM
HL&C 2/28/2025 9:00:00 AM
HB 34
HB 34 Amendment G.3.pdf HL&C 2/28/2025 9:00:00 AM
HB 34
HB 34 Amendment G.4.pdf HL&C 2/28/2025 9:00:00 AM
HB 34
HB 34 Amendment G.5.pdf HL&C 2/28/2025 9:00:00 AM
HB 34