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HB0034c -1- CSHB 34(FIN)
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CS FOR HOUSE BILL NO. 34(FIN)
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - SECOND SESSION
BY THE HOUSE FINANCE COMMITTEE
Offered: 3/18/26
Referred: Rules
Sponsor(s): REPRESENTATIVE HOLLAND
A BILL
FOR AN ACT ENTITLED
"An Act establishing the Alaska Innovation Council; and relating to financial 1
disclosures for members of the Alaska Innovation Council." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 39.50.200(b) is amended by adding a new paragraph to read: 4
(65) the Alaska Innovation Council (AS 44.33.850). 5
* Sec. 2. AS 44.33 is amended by adding new sections to read: 6
Article 13A. Alaska Innovation Council. 7
Sec. 44.33.850. Alaska Innovation Council. (a) The Alaska Innovation 8
Council is established in the Department of Commerce, Community, and Economic 9
Development. 10
(b) The council consists of 12 members as follows: 11
(1) the commissioner of commerce, community, and economic 12
development or the commissioner's designee; 13
(2) the executive director of the University of Alaska's Business 14
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Enterprise Institute or the executive director's designee; 1
(3) seven members appointed by the governor who are experienced 2
entrepreneurs, experienced investors, engaged in emerging industry operations in the 3
state, or engaged in a growth business in the state; the members appointed under this 4
paragraph must include 5
(A) one member who is experienced in community startup 6
ecosystem building and new venture creation initiatives with a rural focus; 7
(B) two members who are experienced in community startup 8
ecosystem building and new venture creation initiatives with an urban focus; 9
(C) one member who is experienced and active in angel 10
investing; 11
(D) two members who have founded a startup business in an 12
emerging industry or using a new technology or business model; and 13
(E) one member who works for or is associated with a startup 14
business that is affiliated with an Alaska Native corporation or tribal 15
government; 16
(4) one member appointed by the governor who is associated with an 17
organized labor organization in the state; 18
(5) one member appointed by the governor who is employed by a 19
regional development organization in the state; and 20
(6) one member appointed by the president of the University of Alaska 21
who represents higher education in the state and is experienced in teaching and student 22
entrepreneurship. 23
(c) The members of the council appointed under (b)(3) - (6) of this section 24
serve staggered three-year terms. An appointed member serves at the pleasure of the 25
appointing authority. An appointed member is eligible for reappointment for two 26
additional terms. If there is a vacancy for any cause, the appointing authority shall 27
make an appointment to become immediately effective for the remainder of the 28
unexpired term. 29
(d) A majority of the council constitutes a quorum for the conduct of business. 30
Official action by the council requires a majority vote of the members present. 31
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(e) The council shall annually elect a chair from among the council's 1
members. The chair serves a one-year term and may be reelected. A member of the 2
council may not serve as the chair for more than three years. 3
(f) The council shall meet telephonically or by electronic means three times a 4
year. The chair shall set the time of the meetings. The council may also meet at other 5
times specified by a call of the chair or by written request of a majority of the council. 6
(g) The Department of Commerce, Community, and Economic Development 7
shall provide staff for the council. 8
(h) Members of the council serve without compensation and are not entitled to 9
transportation and per diem expenses under AS 39.20.180. 10
Sec. 44.33.860. Duties and powers. (a) The council shall advise the governor, 11
legislature, governmental agencies, research institutions, and private sector 12
organizations on 13
(1) promoting the commercialization of research from the private 14
sector and higher education institutions; 15
(2) investment in areas of research where the state has a distinct or 16
emerging advantage; 17
(3) stimulating seed and start-up capital investment and 18
entrepreneurship that promotes economic diversification and growth in the emerging 19
industries or growth businesses in the state; in providing advice under this paragraph, 20
the council shall identify gaps in the capital markets in the state; and 21
(4) developing entrepreneurship and management capabilities in the 22
state that are critical to increasing competitiveness in the emerging industries or 23
growth businesses. 24
(b) Except as otherwise prohibited by law, the council may request a state 25
governmental agency to furnish information and provide advice to the council to the 26
extent necessary to perform the council's duties. 27
(c) The council may establish committees consisting of members of the 28
council and delegate the duties and powers of the council to the committees. 29
Sec. 44.33.870. Innovation and economic competitiveness plan. Not later 30
than November 1 of each year, the council shall prepare an innovation and economic 31
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competitiveness plan for the state and submit the report to the governor, senate 1
secretary, and the chief clerk of the house of representatives and notify the legislature 2
that the report is available. The plan must include recommendations on 3
(1) identifying and expanding the industry and core research strengths 4
of the state's emerging industries and the growth businesses and higher education 5
programs that have the highest potential for commercialization and economic impact; 6
(2) promoting the development and growth of emerging industries and 7
new innovation-based businesses and assisting existing businesses in developing new 8
products; 9
(3) stimulating seed and start-up capital investment and 10
entrepreneurship in a manner that promotes innovation-based economic development 11
in the emerging industries and growth businesses in the state; 12
(4) developing an innovation index that benchmarks the state, rural 13
areas of the state, and urban areas of the state against national innovation metrics; 14
(5) monitoring the progress and priorities of the state when 15
implementing comprehensive economic development strategies; and 16
(6) assessing the needs, recommendations, and impact of regional 17
development organizations and the effectiveness of regional development 18
organizations in supporting state and local economic development plans. 19
Sec. 44.33.880. Definitions. In AS 44.33.850 - 44.33.880, 20
(1) "council" means the Alaska Innovation Council; 21
(2) "regional development organization" means a nonprofit 22
organization or nonprofit corporation formed to encourage economic development 23
within a particular region of the state that includes the entire area of each municipality 24
within that region and that has a board of directors that represents the region's 25
economic, political, and social interests. 26
* Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 27
read: 28
TRANSITION: INITIAL TERMS OF ALASKA INNOVATION COUNCIL 29
MEMBERS. (a) Notwithstanding AS 44.33.850(c), enacted by sec. 2 of this Act, members of 30
the Alaska Innovation Council are appointed to initial terms as follows: 31
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(1) members appointed under AS 44.33.850(b)(3)(A) and (B), enacted by sec. 1
2 of this Act, shall serve one-year terms; 2
(2) members appointed under AS 44.33.850(b)(3)(C) and (D), enacted by sec. 3
2 of this Act, shall serve two-year terms; and 4
(3) members appointed under AS 44.33.850(b)(3)(E) and (4) - (6), enacted by 5
sec. 2 of this Act, shall serve three-year terms. 6
(b) Notwithstanding AS 44.33.850(e), enacted by sec. 2 of this Act, the member of 7
the Alaska Innovation Council designated under AS 44.33.850(b)(1), enacted by sec. 2 of this 8
Act, shall serve as the chair of the Alaska Innovation Council for an initial term of one year. 9
* Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 10
read: 11
TRANSITION: INNOVATION AND ECONOMIC COMPETITIVENESS PLAN. 12
Notwithstanding the deadline established in AS 44.33.870, enacted by sec. 2 of this Act, the 13
Alaska Innovation Council shall prepare the first innovation and economic competitiveness 14
plan under AS 44.33.870, enacted by sec. 2 of this Act, not later than January 1 of the year 15
following the effective date of this Act. 16