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: Page 3, line 16: Delete "at least" Insert "telephonically or by electronic means" Page 3, line 17: Delete "and place" Delete "and places" Page 3, lines 18 - 20: Delete "A member of the council may attend a meeting telephonically or by electronic means if the member obtains approval from the chair." Page 3, line 23: Delete ", but are" Insert "and are not" Page 3, line 24: Delete "as provided in" Insert "under" Page 3, lines 24 - 27: 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." 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: Page 1, line 11: Delete "15" Insert "12" Page 2, lines 2 - 5: Delete all material. Renumber the following paragraphs accordingly. Page 2, line 6: Delete "five" Insert "seven" Page 2, line 12: Delete "one member who is" Insert "two members who are" Page 2, line 16: Delete "one member who has" Insert "two members who have" Delete "that was" Page 2, line 17: Delete "that used" Insert "using" Page 2, line 24, following "state;": Insert "and" Page 2, lines 25 - 28: Delete all material. Renumber the following paragraph accordingly. Page 2, line 29: Delete "two members" Insert "one member" Page 2, line 30: Delete "represent" Insert "represents" Page 2, line 30, through page 3, line 1: 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" Insert "and" Page 3, line 3: Delete "(b)(5) - (10)" Insert "(b)(3) - (6)" Page 3, lines 9 - 10: Delete all material. Reletter the following subsections accordingly. Page 3, lines 24 - 27: 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." Page 5, line 18: Delete "AS 44.33.850(b)(5)" Insert "AS 44.33.850(b)(3)(A) and (B)" Page 5, line 20: Delete "AS 44.33.850(b)(6), (7), and (10)" Insert "AS 44.33.850(b)(3)(C) and (D)" Page 5, line 22: Delete "AS 44.33.850(b)(8) and (9)" Insert "AS 44.33.850(b)(3)(E) and (4) - (6)" Page 5, line 24: Delete "AS 44.33.850(f)" Insert "AS 44.33.850(e)" 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.