Legislature(2003 - 2004)

05/01/2003 08:06 AM House STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 215- ONE PERCENT FOR ART                                                                                                   
                                                                                                                                
CHAIR WEYHRAUCH  announced that  the next  order of  business was                                                               
HOUSE BILL  NO. 215,  "An Act repealing  statutes that  relate to                                                               
art works in  public buildings and facilities and  that require a                                                               
set percentage of construction costs to be spent on art."                                                                       
                                                                                                                                
Number 1464                                                                                                                     
                                                                                                                                
BARBARA  BITNEY, Staff  to  Representative  Bill Stoltze,  Alaska                                                               
State Legislature, testified on behalf  of the sponsor of HB 215,                                                               
Representative Stoltze.  She explained  that the sponsor has been                                                               
working with  committee members and  the Alaska State  Council on                                                               
the  Arts to  try  to  make the  changes  requested  at the  last                                                               
hearing  on HB  215.   Ms.  Bitney pointed  out that  one of  the                                                               
changes  encompassed  in [the  committee  substitute  (CS)] is  a                                                               
tighter title.   Another change can  be found on page  2, line 3,                                                               
where  language  that  clarified  the 5  percent  set  aside  for                                                               
maintenance would come from the 1 percent for art program.                                                                      
                                                                                                                                
REPRESENTATIVE  HOLM  moved  to   adopt  CSHB  215,  Version  23-                                                               
LS0605\H, Kurtz, 4/30/03,  as the working document.   There being                                                               
no objection, Version H was before the committee.                                                                               
                                                                                                                                
MS. BITNEY returned  to her review of the  changes encompassed in                                                               
Version H.   She directed  attention to  page 2, lines  7-11, and                                                               
said:                                                                                                                           
                                                                                                                                
     It's  for  the 1  percent  applying  to projects  under                                                                    
     $250,000  or not  subject  to  substantial public  use.                                                                    
     Requiring  a 1  percent deposit  in the  Art in  Public                                                                    
     Places fund.                                                                                                               
                                                                                                                                
MS. BITNEY  pointed out that  on page 3,  lines 1-2, is  a change                                                               
that merely  requires that photo  identification be added  to the                                                               
list of monitoring.   On page 4, lines 1-3,  the change clarifies                                                               
that the  original total construction costs  doesn't include cost                                                               
overruns.     Basically,  this  simplifies  the   monitoring  and                                                               
applicability of  the statute.  On  page 4, line 31  through page                                                               
5, lines 1-4,  the change again clarifies that the  5 percent for                                                               
maintenance is coming from the 1 percent for art program.                                                                       
                                                                                                                                
Number 1729                                                                                                                     
                                                                                                                                
REPRESENTATIVE GRUENBERG  turned attention  to the  definition of                                                               
"construction cost" in  Section 6 and asked if  it includes total                                                               
costs,  including federal  funds,  donated  funds, (indisc.),  or                                                               
state appropriated  funds.  If so,  he asked if it  also includes                                                               
state (indisc.).                                                                                                                
                                                                                                                                
MS. BITNEY answered that the  specifics that the sponsor has been                                                               
working  with  have  been  strictly  general  funds  and  general                                                               
obligation bonds.                                                                                                               
                                                                                                                                
Number 1810                                                                                                                     
                                                                                                                                
KATHRYN KURTZ,  Attorney, Legislative Legal  Counsel, Legislative                                                               
Legal   and  Research   Services,  Legislative   Affairs  Agency,                                                               
informed the  committee that she  is the drafter  of HB 215.   In                                                               
response   to  Representative   Gruenberg's  question   regarding                                                               
whether  this definition  of "construction  cost"  is limited  to                                                               
state  funding  and  exclusive  of  federal  funding,  Ms.  Kurtz                                                               
pointed out that the definition  of state funding is specified in                                                               
Section  7  where the  language  discusses  the appropriation  of                                                               
state  funds by  the legislature  as well  as general  obligation                                                               
bond proceeds.   Therefore, Ms.  Kurtz asked if that  would cover                                                               
[Representative Gruenberg's  concerns].   She explained  that the                                                               
specific  reference to  state funds  carries the  intention [that                                                               
"construction cost" is limited to state funds].                                                                                 
                                                                                                                                
REPRESENTATIVE  GRUENBERG related  his belief  [Section 7]  would                                                               
cover his [concerns];  however, he emphasized the  need to ensure                                                               
that  there  are no  unintended  consequences.   He  then  turned                                                               
attention  to page  4,  lines 29-30,  which  he characterized  as                                                               
ambiguous.   He  asked if  this language  is specifying  that the                                                               
money deposited  in the art  in public places fund  doesn't lapse                                                               
in a particular year or that it never lapses.                                                                                   
                                                                                                                                
REPRESENTATIVE BILL  STOLTZE, Alaska State Legislature,  spoke as                                                               
the sponsor of  HB 215.  He  related that his intent  was to have                                                               
continuity  and not  be subject  to  reappropriation and  lapsing                                                               
[agreements].                                                                                                                   
                                                                                                                                
REPRESENTATIVE GRUENBERG  asked if  this is a  fund that  will be                                                               
project-specific  or will  it  be  one fund.    If it's  project-                                                               
specific,  then presumably  at the  end of  the project  the fund                                                               
would end.   However, if it's a general accounting  fund, then it                                                               
wouldn't go away.                                                                                                               
                                                                                                                                
REPRESENTATIVE  STOLTZE clarified  that it's  not intended  to be                                                               
project-specific.   He  explained that  some projects  won't ever                                                               
need maintenance  and might help  those projects that  do require                                                               
maintenance.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG suggested  that the  language would  be                                                               
more clear  if on page 4,  lines 29-30, after "lapse",  a "," was                                                               
inserted and "at the end of a fiscal year" was deleted.                                                                         
                                                                                                                                
MS. KURTZ remarked that such a change could be made.                                                                            
                                                                                                                                
REPRESENTATIVE BERKOWITZ pointed out that  this is all subject to                                                               
appropriation,  and therefore  he  suggested  inserting a  period                                                               
after "lapse".                                                                                                                  
                                                                                                                                
MS. KURTZ  said that she  wouldn't take out the  language "unless                                                               
otherwise provided  by an  appropriation." due  to the  nature of                                                               
the fund  and its structure.   This is  an existing fund  and the                                                               
change is  to the lapse state.   Arguably, the lapse  state isn't                                                               
changing because  there is  the issue of  the funds  getting into                                                               
the  fund as  an implied  term  of the  appropriation of  capital                                                               
funds.    Therefore, because  this  fund  is related  to  capital                                                               
appropriations, it's important  to keep the link  to the original                                                               
capital appropriation.                                                                                                          
                                                                                                                                
REPRESENTATIVE BERKOWITZ withdrew his suggestion.                                                                               
                                                                                                                                
REPRESENTATIVE  GRUENBERG  moved  that the  committee  adopt  the                                                               
following amendment:                                                                                                            
                                                                                                                                
     Page 4, lines 29-30, after "lapse":                                                                                        
          Insert  ","                                                                                                           
          Delete "at the end of a fiscal year"                                                                                  
                                                                                                                                
Number 2170                                                                                                                     
                                                                                                                                
REPRESENTATIVE SEATON  asked if there  is any lapse  that doesn't                                                               
occur at the end of the fiscal year.                                                                                            
                                                                                                                                
REPRESENTATIVE  GRUENBERG said  that the  language was  ambiguous                                                               
because  of the  use  of  "a" before  "fiscal  year".   Normally,                                                               
[funds] don't lapse until five years after being appropriated.                                                                  
                                                                                                                                
REPRESENTATIVE  HOLM  pointed  out that  these  are  construction                                                               
projects that don't end on a fiscal year basis.                                                                                 
                                                                                                                                
REPRESENTATIVE  GRUENBERG   interjected  that  the  lapse   is  a                                                               
statutory lapse  that runs  from the  date of  the appropriation,                                                               
not the completion of the project.                                                                                              
                                                                                                                                
REPRESENTATIVE  STOLTZE  pledged  to  review this  in  the  House                                                               
Finance  Committee where  much  more expertise  in  this area  is                                                               
available.                                                                                                                      
                                                                                                                                
REPRESENTATIVE GRUENBERG withdrew his amendment.                                                                                
                                                                                                                                
Number 2277                                                                                                                     
                                                                                                                                
REPRESENTATIVE   BERKOWITZ  moved   that   the  committee   adopt                                                               
[Amendment 1], as follows:                                                                                                      
                                                                                                                                
     Page 1, lines 6-7:                                                                                                         
           Delete "or, in the case of a rural school                                                                            
     facility, at least one-half of one percent"                                                                                
                                                                                                                                
     Page 1, lines 9-10:                                                                                                        
           Delete ", or in the case of a rural school                                                                           
     facility, one-quarter of one percent"                                                                                      
                                                                                                                                
REPRESENTATIVE STOLTZE said the  aforementioned isn't an issue he                                                               
cares about.   He  noted that the  one-half percent  language was                                                               
inserted by rural Democratic legislators back in the 1970s.                                                                     
                                                                                                                                
There being no objection, Amendment 1 was adopted.                                                                              
                                                                                                                                
Number 2332                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON  moved to  report  CSHB  215, Version  23-                                                               
LS0605\H,  Kurtz,  4/30/03, as  amended,  out  of committee  with                                                               
individual recommendations and the accompanying fiscal notes.                                                                   
                                                                                                                                
CHAIR  WEYHRAUCH announced  that at  this time  he would  turn to                                                               
public testimony before the motion is completed.                                                                                
                                                                                                                                
Number 2385                                                                                                                     
                                                                                                                                
JOCELYN YOUNG, Curator,  1 percent for art  program in Anchorage,                                                               
informed  the committee  that she  had  just received  a copy  of                                                               
Version H.   Ms.  Young commended  most of  the additions  to the                                                               
legislation because  she believes  they clarify some  aspects and                                                               
authority  of the  program.    However, the  caps  placed in  the                                                               
legislation are  complicated and,  in some  ways, seem  to defeat                                                               
the purpose of the program.   She suggested that the cap could be                                                               
done on  a case-by-case basis.   For  example, the 1  percent for                                                               
art budget  for a large  construction project is generally  for a                                                               
project such as an airport,  which would have extensive corridors                                                               
where  art  work  is  needed.    With  regard  to  working  on  a                                                               
corrections institute, Ms. Young  related her experience with the                                                               
public art in  the Anchorage jail.  She explained  that those who                                                               
really use the  facility daily are employees  and those employees                                                               
have often commented  on their enjoyment of the art  in the staff                                                               
and  public areas  of the  facility.   She  highlighted that  the                                                               
program used  its own  formulas and  created a  partial exemption                                                               
for  the Anchorage  jail  and  thus artwork  was  only placed  in                                                               
public and staff areas.   Ms. Young viewed the aforementioned use                                                               
of good sense as a better approach to the project.                                                                              
                                                                                                                                
MS. YOUNG recalled that at  the last hearing there was discussion                                                               
of changing AS  35.27.020(c) from "rural school  facility" to the                                                               
correct term.                                                                                                                   
                                                                                                                                
CHAIR WEYHRAUCH  advised witnesses that  HB 215 will be  heard in                                                               
the House Finance Committee where  issues of concern that haven't                                                               
been addressed  in the  CS from this  committee could  be brought                                                               
up.                                                                                                                             
                                                                                                                                
MS.  YOUNG continued  by pointing  out that  the language  in the                                                               
legislation referring to the commissioner  may need some work due                                                               
to  the changes  in the  state's procurement  code, which  allows                                                               
various commissioners responsibility  over their own construction                                                               
of facilities.  She suggested  that perhaps the aforementioned is                                                               
an area in which the authority  could go the Alaska State Council                                                               
on the Arts.                                                                                                                    
                                                                                                                                
Number 2629                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GRUENBERG, in  response  to  Ms. Young's  concern                                                               
regarding the references to the  commissioner highlighted page 2,                                                               
line 26, of Version H.   He also highlighted the language on page                                                               
4, lines 25-28.                                                                                                                 
                                                                                                                                
MS.  BITNEY commented  that  one  of the  ways  in  which the  [1                                                               
percent for art program] was  strengthened was by requiring it to                                                               
report to the  Alaska State Council on the Arts  for the funding,                                                               
artwork,  and location.   With  regard  to the  reference to  the                                                               
commissioner,  Ms.  Bitney  agreed  that  each  commissioner  has                                                               
control,  however   she  pointed  out  that   the  Department  of                                                               
Transportation & Public Facilities  (DOT&PF) has the expertise in                                                               
building and  thus [the sponsor]  likes [the  current construct].                                                               
She noted that  [Ms. Jocelyn's notion] was  discussed during work                                                               
on this CS, but it would require further scrutiny.                                                                              
                                                                                                                                
REPRESENTATIVE  HOLM related  his  belief that  the reference  to                                                               
[the commissioner  of DOT&PF]  has to  do with  the architectural                                                               
cleanliness of a project.                                                                                                       
                                                                                                                                
Number 2724                                                                                                                     
                                                                                                                                
MIKE ANDERSON, Cordova  Visual Artists, said that he  likes a lot                                                               
of what Version H does.                                                                                                         
                                                                                                                                
JOAN JACKSON,  sculptor, expressed her  desire for the  1 percent                                                               
for art program  to be run under the Alaska  State Council on the                                                               
Arts because she has seen  schools and public buildings that have                                                               
"twitched"  out of  putting  in  artwork.   She  said she  didn't                                                               
believe the aforementioned would happen  if the program was under                                                               
the  Alaska State  Council on  the Arts.   She  viewed the  other                                                               
changes to the legislation as improvements.                                                                                     
                                                                                                                                
ALYSSA KLEISSLER,  Cordova Arts &  Pageants, said that  she likes                                                               
the  changes encompassed  in  Version  H and  is  happy that  the                                                               
legislation is no longer a repeal of the program.                                                                               
                                                                                                                                
Number 2865                                                                                                                     
                                                                                                                                
CHAIR WEYHRAUCH, upon determining no  one else wished to testify,                                                               
reminded  the committee  that before  it was  a motion  to report                                                               
Version H,  as amended.  He  asked if there were  any objections.                                                               
There being  no objection,  CSHB 215(STA)  was reported  from the                                                               
House State Affairs Standing Committee.                                                                                         
                                                                                                                                

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