ALASKA STATE LEGISLATURE  SENATE STATE AFFAIRS STANDING COMMITTEE  February 1, 2018 3:36 p.m. MEMBERS PRESENT Senator Kevin Meyer, Chair Senator David Wilson Senator Cathy Giessel Senator Dennis Egan MEMBERS ABSENT  Senator John Coghill COMMITTEE CALENDAR  SENATE CONCURRENT RESOLUTION NO. 10 Proclaiming 2018 to be the Alaska Year of Innovation. - MOVED CSSCR 10(STA) OUT OF COMMITTEE SENATE BILL NO. 152 "An Act establishing September 11 of each year as Patriot Day." - MOVED SB 152 OUT OF COMMITTEE PREVIOUS COMMITTEE ACTION  BILL: SCR 10 SHORT TITLE: ALASKA YEAR OF INNOVATION SPONSOR(s): SENATOR(s) COSTELLO 04/07/17 (S) READ THE FIRST TIME - REFERRALS 04/07/17 (S) L&C, STA 04/10/17 (S) L&C AT 9:00 AM BELTZ 105 (TSBldg) 04/10/17 (S) Heard & Held 04/10/17 (S) MINUTE(L&C) 04/11/17 (S) L&C AT 9:00 AM BELTZ 105 (TSBldg) 04/11/17 (S) Scheduled but Not Heard 04/11/17 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 04/11/17 (S) Moved CSSCR 10(L&C) Out of Committee 04/11/17 (S) MINUTE(L&C) 04/12/17 (S) L&C RPT CS 4DP 1AM NEW TITLE 04/12/17 (S) DP: COSTELLO, HUGHES, MEYER, GARDNER 04/12/17 (S) AM: STEVENS 02/01/18 (S) STA AT 3:30 PM BUTROVICH 205 BILL: SB 152 SHORT TITLE: SEPT. 11: PATRIOT DAY SPONSOR(s): SENATOR(s) MEYER 01/24/18 (S) READ THE FIRST TIME - REFERRALS 01/24/18 (S) STA 02/01/18 (S) STA AT 3:30 PM BUTROVICH 205 WITNESS REGISTER SENATOR MIA COSTELLO Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Sponsor of SCR 10, addressed a committee substitute for the resolution. DAKOTA ORM, Staff Senator Costello Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Provided an overview of SCR 10. NIRAV DESAI, representing self Seattle, Washington POSITION STATEMENT: Testified in support of SCR 10. MATT MORRISON, Executive Director Pacific NorthWest Economic Region Seattle, Alaska POSITION STATEMENT: Testified in support of SCR 10. ROBERT COKER, Ambassador Office of Intellectual Property and Commercialization University of Alaska-Fairbanks Fairbanks, Alaska POSITION STATEMENT: Testified in support of SCR 10. MARK BILLINGSLEY, employee Technology Transfer Office Office of Intellectual Property and Commercialization University of Alaska-Fairbanks Fairbanks, Alaska POSITION STATEMENT: Testified in support of SCR 10. LARRY HINZMAN, Vice Chancellor-Research University of Alaska-Fairbanks Fairbanks, Alaska POSITION STATEMENT: Testified in support of SCR 10. PAUL LAYER, Vice President Academic and Student Affairs University of Alaska Fairbanks, Alaska POSITION STATEMENT: Testified in support of SCR 10. NOLAN KLOUDA, Director University of Alaska Center for Economic Development University of Alaska-Anchorage Anchorage, Alaska POSITION STATEMENT: Testified in support of SCR 10. JULIET SHEPHERD, Technology Project Manager Fairbanks Economic Development Corporation Fairbanks, Alaska POSITION STATEMENT: Testified in support of SCR 10. EDRA MORLEDGE, Staff Senator Meyer Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Provided an overview of SB 152. ACTION NARRATIVE 3:36:49 PM CHAIR KEVIN MEYER called the Senate State Affairs Standing Committee meeting to order at 3:36 p.m. Present at the call to order were Senators Wilson, Giessel, Egan, and Chair Meyer. SCR 10-ALASKA YEAR OF INNOVATION  3:37:43 PM CHAIR MEYER announced the consideration of Senate Concurrent Resolution 10 (SCR 10). He asked the sponsor if she wanted the committee to adopt the committee substitute (CS). 3:38:15 PM SENATOR MIA COSTELLO, Alaska State Legislature, Juneau, Alaska, sponsor of SCR 10, explained that the proposed CS simply changes the year to 2019. 3:38:28 PM SENATOR GIESSEL moved to adopt the CS for SCR 10, version 30- LS0618\U, as the working document. 3:38:43 PM CHAIR MEYER announced that hearing no objection, the CS is before the committee. 3:39:12 PM DAKOTA ORM, Staff, Senator Costello, Alaska State Legislature, Juneau, Alaska, provided an overview of SCR 10 as follows: Senate Concurrent Resolution 10 would proclaim 2019 as the "year of innovation" in Alaska; this designation spotlights an issue or theme that is crucial to the state and highlights the work being done by the Legislature and Alaskans statewide. Innovation can help address all challenges facing Alaska whether that be harnessing technology or growing economic diversification. Alaskans are innovators by tradition and necessity. There's a pioneering spirit in our state that really requires innovation and adaptation; this goes back not only to the founders that helped build our state, but also the public policy in how we manage our resources. Declaring a "year of innovation" not only spurs conversations but allows organizations to take advantage of it in different ways; it also recognizes innovation that is already happening in our state now from the university level to groups like Lego Robotics to Lemonade Day. Alaska constructs a culture where innovation, entrepreneurship, and out-of-the-box thinking is encouraged and accepted and declaring a "year of innovation" will aid in the growth of this culture as well as Alaska's overall economy. 3:40:41 PM CHAIR MEYER opened public testimony 3:40:52 PM NIRAV DESAI, representing self, Seattle, Washington, testified in support of SCR 10. He said establishing a "year of innovation" lets the nation know that Alaska embraces innovation. He opined that Alaska's unique characteristics as the country's only Arctic state provides an environment to drive innovation and test technologies in harsh conditions. 3:42:59 PM MATT MORRISON, Executive Director, Pacific NorthWest Economic Region, Seattle, Alaska, testified in support of SCR 10. He said Alaska has a great opportunity to lead the nation in terms of arctic technologies and adapting to climate change innovations. 3:45:32 PM ROBERT COKER, Ambassador, Office of Intellectual Property and Commercialization (OPIC), University of Alaska-Fairbanks (UAF), Fairbanks, Alaska, testified in support of SCR 10. He noted that he is also an associate professor at the Institute of Arctic Biology at UAF. He added that he started a company in 2013 called Essential Blends, a company focused on the development of clinical nutrition for conditions like muscle atrophy, obesity, and substance abuse. He revealed that Essential Blends leads the state in funding from the National Institutes of Health and has worked with local health-care providers to improve the efficacy of its products. He said he is very passionate about developing a culture of academic entrepreneurship in Alaska that engages faculty, students, staff, and communities. He summarized that he fully supports SCR 10 and asserted that the state needs to promote a culture of innovation and commercialization. He emphasized that the university environment should contribute to the innovation opportunity. 3:47:48 PM MARK BILLINGSLEY, employee, Technology Transfer Office, Office of Intellectual Property and Commercialization (OIPC), University of Alaska-Fairbanks, Fairbanks, Alaska, testified in support of SCR 10. He explained that OIPC works to commercialize the research that is done at UAF. He said OIPC looks to license and sell its research, often to startup companies. He asserted that OIPC fosters innovation to keep its "pipeline flowing." He noted that the University of Alaska system is a major source of innovation and encourages everyone to look to the university for innovation. He summarized that innovation represents a great opportunity for Alaska's economy-of-tomorrow by keeping the state's best-and- brightest children in the state to develop a stronger, diversified and sustainable economy. He added that legislators are welcome to attend the Arctic Innovation Competition in Fairbanks in October. 3:49:33 PM LARRY HINZMAN, Vice Chancellor-Research, University of Alaska- Fairbanks, Fairbanks, Alaska, testified in support of SCR 10. He explained that his job is to help promote research activities throughout the campus and across the state. He asserted that SCR 10 will help in many respects. He opined that the state is in a tough time with its economy, but the state cannot cut its way out. He set forth that the state must grow by diversifying its economy. 3:51:45 PM PAUL LAYER, Vice President, Academic and Student Affairs, University of Alaska, Fairbanks, Alaska, testified in support of SCR 10. He said the University of Alaska system has a long tradition of advancing innovation and entrepreneurialism throughout Alaska. He asserted that innovation is a key component to moving Alaska to a more sustainable and diversified economy. He summarized that the University of Alaska looks forward to highlighting its activities, encourages innovation across the state, and to develop new partnerships during the Alaska "year of innovation." 3:54:41 PM NOLAN KLOUDA, Director, University of Alaska Center for Economic Development (CED), University of Alaska-Anchorage, Anchorage, Alaska, testified in support of SCR 10. He referenced Senator Costello's sponsor's statement that said startups are responsible for creating virtually all net-employment growth in the private sector in the U.S. and the same is true in Alaska. He disclosed that CED has found that startup companies annually create approximately 4,000 to 6,000 jobs in Alaska, a trend that continues during the state's recession. He asserted that the startup statistics testify to the importance of innovation by adding employment to the economy. He summarized that the "year of innovation" designation would add attention to the innovative things that Alaskans are already doing as well as direct more focus about how to support innovation in the state's economy as well as how to further position Alaska's entrepreneurs for success. 3:58:03 PM JULIET SHEPHERD, Technology Project Manager, Fairbanks Economic Development Corporation, Fairbanks, Alaska, testified in support of SCR 10. She disclosed that she works with entrepreneurs, startups, and with the extended economic development community in Fairbanks and across Alaska. She opined that combining the "year of innovation" with other institutional and university efforts will provide entry points for individuals who are interested in developing entrepreneurial skills or business idea to be able to increase their skill level, develop their team, and gain access to capital. 4:01:09 PM CHAIR MEYER closed public testimony. 4:01:44 PM SENATOR GIESSEL moved to report [CSSCR 10(STA)], version 30- LS0618\U from committee with individual recommendations and attached zero fiscal note. 4:02:04 PM CHAIR MEYER said being no objection, the motion carried. 4:02:12 PM At ease SB 152-SEPTEMBER 11: PATRIOT DAY  4:04:32 PM CHAIR MEYER called the committee back to order. He announced the consideration of Senate Bill 152 (SB 152) and noted that he is the sponsor of the bill. 4:05:00 PM EDRA MORLEDGE, Staff, Alaska State Legislature, Juneau, Alaska, explained that SB 152 designates September 11 of each year as Patriot Day in the State of Alaska. She pointed out that the definition of "patriot" from Merriam-Webster dictionary states, "One who loves his or her country and supports its authority and interests," and a second definition from Dictionary.com states, "A person who loves, supports and defends his or her country and its interests with devotion." MS. MORLEDGE provided background information as follows: On September 11, 2001, four planes were hijacked, three of which were deliberately flown into buildings in Washington D.C., which was the Pentagon, and in New York at the World Trade Center Towers, the fourth crashed into a field in Pennsylvania. Nearly 3,000 people died in these attacks making it the biggest act of terrorism ever on the United States' soil; after this time, the nation was inspired by the heroic sacrifices of the firefighters, rescue and law enforcement personnel, military service members, and other citizens that responded to the terror attacks, in many cases giving the ultimate sacrifice to save innocent victims. On October 25, 2001, a bipartisan resolution to make September 11 a "national day of mourning" was introduced in the House by Representative Vito Fossella, Republican from New York; there were 22 co- sponsors: 11 Republicans and 11 Democrats. The legislation designated September 11 as Patriot Day and passed both the House and Senate unanimously, it was signed into law by President Bush on December 18, 2001, and the first Patriot Day was observed on September 11, 2002 and it was known by that name through 2008. The following year in 2009 the Edward M. Kennedy Serve America Act was passed and signed into law by President Obama which changed the name to "Patriot Day and National Day of Service and Remembrance," and that particular act that changed the name had a large focus on expanding the programs of AmeriCorps and five other new volunteer programs in the United States; throughout this time however, it didn't change the observance of the day which is the flag of the United States is flown at half-staff at the White House and all U.S. government buildings and establishments throughout the country and the world. Flags are also encouraged to be displayed on individual American homes and a moment of silence is observed to correspond with the attacks beginning at 8:46 a.m. which was the time the first plane struck the north tower of the World Trade Center. Last year in addition to recognizing September 11 as "Patriot Day and National Day of Service and Remembrance," President Trump designated September 8 through September 10 as "national days of prayer and remembrance." What this bill is intended to do is to recognize September 11 of each year's Patriot Day in the State of Alaska, bringing the focus back to honoring and remembering those individuals that were killed, injured or that courageously provided aid on September 11 during the terror attacks, but also pays tribute to our military patriots in Alaska, nearly 2,100 of whom were just deployed last fall from Joint Base Elmendorf-Richardson to Afghanistan to continue fighting terrorism on behalf of all Americans. MS. MORLEDGE disclosed that the resolution has a zero fiscal note. 4:09:01 PM CHAIR MEYER noted that Ms. Morledge found in her research that states are "all over the place" on how they recognize September 11, but most seem to still call the day, "Patriot Day." He noted that on the federal level the day was called "Patriot Day" until 2009. MS. MORLEDGE answered correct. CHAIR MEYER said that SB 152 would specifically recognize Patriot Day in Alaska on September 11 for those based on the definitions Ms. Morledge previously noted, "Who loves, supports and defends his or her country and its interests with devotion." He asserted that the firefighters, policemen and all the first responders who gave up their lives to rescue the people in the World Trade Center were certainly patriots. He pointed out that some states recognize September 11 as "Patriot Day" while others note the day as "Patriot and Nation Day of Service." MS. MORLEDGE revealed that she sampled 11 states where 7 out of 11 recognize September 11 as "Patriot Day." 4:11:20 PM CHAIR MEYER opened and closed public testimony. 4:11:44 PM SENATOR GIESSEL moved to report SB 152, version 30-LS1014\A from committee with individual recommendations and attached zero fiscal note. 4:11:56 PM CHAIR MEYER said that being no objection, the motion carried. 4:12:09 PM At ease 4:13:20 PM CHAIR MEYER called the committee back to order. 4:14:06 PM There being no further business to come before the committee, Chair Meyer adjourned the Senate State Affairs Standing Committee at 4:14 p.m.