AK SB251

Establishes a regulatory sandbox program allowing the state to grant innovation permits that waive specified regulations for up to 24 months, enabling businesses to test new or innovative products and services.

Creates the Office of Innovation and Economic Development within the Department of Commerce, Community, and Economic Development, and establishes the 17-member Alaska Innovation Council to review applications and provide recommendations.

Requires applicants to submit detailed applications including criminal background checks, business plans, and risk assessments; applicable state agencies have 30 days to provide written reports on potential consumer harm before permits are granted or denied.

Grants regulatory sandbox participants immunity from criminal liability and punitive state actions for violations of waived regulations, but requires consumer disclosures in English and Spanish about temporary authorization, testing status, and risks.

Exempts claims arising from regulatory sandbox participants' use of innovation permits from state liability under AS 09.50.250, and adds criminal background check requirements under AS 12.62.400 for permit applicants.