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.