Legislature(1997 - 1998)

01/21/1998 08:05 AM House CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
         HOUSE COMMUNITY AND REGIONAL AFFAIRS                                  
                  STANDING COMMITTEE                                           
                   January 21, 1998                                            
                      8:05 a.m.                                                
                                                                               
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Representative Ivan Ivan, Chairman                                             
Representative Fred Dyson                                                      
Representative Jerry Sanders                                                   
Representative Al Kookesh                                                      
Representative Reggie Joule                                                    
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
Representative Scott Ogan                                                      
Representative Joe Ryan                                                        
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
EXECUTIVE ORDER NO. 100                                                        
Moving the "Silver Hand" Program from DCED to DOE                              
                                                                               
     - HEARD AND HELD                                                          
                                                                               
(* First public hearing)                                                       
                                                                               
PREVIOUS ACTION                                                                
                                                                               
No previous action to record                                                   
                                                                               
WITNESS REGISTER                                                               
                                                                               
TOM LAWSON, Juneau Section Chief                                               
Division of Trade and Development                                              
Department of Commerce                                                         
  and Economic Development                                                     
P.O. Box 110804                                                                
Juneau, Alaska 99811-0904                                                      
Telephone:  (907) 465-2017                                                     
POSITION STATEMENT:  Explained Executive Order 100.                            
                                                                               
VERNON CHIMEGALREA, Director                                                   
Native Arts Program                                                            
Alaska State Council on the Arts                                               
Department of Education                                                        
411 West Fourth Avenue, Suite 1E                                               
Anchorage, Alaska 99501                                                        
Telephone:  (907) 269-6610                                                     
POSITION STATEMENT:  Testified in support of Executive Order 100.              
                                                                               
HELEN HOWARTH, Executive Director                                              
Alaska State Council on the Arts                                               
Department of Education                                                        
411 West Fourth Avenue, Suite 1E                                               
Anchorage, Alaska 99501                                                        
POSITION STATEMENT:  Testified on Executive Order 100.                         
                                                                               
ACTION NARRATIVE                                                               
                                                                               
TAPE 98-1, SIDE A                                                              
Number 0001                                                                    
                                                                               
CHAIRMAN IVAN IVAN called the House Community and Regional Affairs             
Standing Committee meeting to order at 8:05 a.m.  Members present              
at the call to order were Representatives Ivan, Dyson, Sanders and             
Kookesh.  Representative Joule arrived at 8:07 a.m.                            
                                                                               
EO 100 - MOVING THE "SILVER HAND" PROGRAM FROM DCED TO DOE                     
                                                                               
Number 0053                                                                    
                                                                               
CHAIRMAN IVAN announced the committee would hear Executive Order               
100 which moves the "Silver Hand" Program from the Department of               
Commerce and Economic Development to the Department of Education.              
He said according to AS 24.08.210, the legislature has 60 days,                
until March 12, 1998, to disapprove the order if it so chooses.  He            
indicated that the committee would hear a briefing from the                    
departments.                                                                   
                                                                               
Number 0132                                                                    
                                                                               
TOM LAWSON, Juneau Section Chief, Division of Trade and                        
Development, Department of Commerce and Economic Development, came             
before the committee.  He stated he would give a brief overview of             
the program, talk about the history of the program within the                  
Department of Commerce and Economic Development and also speak                 
about why the department believes the program should be moved to               
the Alaska State Council on the Arts (ASCA) within the Department              
of Education.  Mr. Lawson noted the director of the council, Helen             
Howarth, was listening via teleconference.                                     
                                                                               
Number 0172                                                                    
                                                                               
MR. LAWSON informed the committee members that the Silver Hand                 
Program certifies handicrafts as being made by a Native Alaskan,               
Eskimo, Aleut or Indian.  He noted the emblem is a silver hand with            
a black oval background.  Mr. Lawson explained that a product that             
shows up in a store with the emblem on it is supposed to be                    
guaranteed that it is made by a Native.                                        
                                                                               
MR. LAWSON referred to the operation of the program and said there             
are four basic areas that has to be covered when the program is                
being run.  The first area is the processing of the permits, which             
ensures that the applicant is indeed eligible to be part of the                
program.  The second area is the education of those Native                     
handicrafters that are not yet in the program or who do not know of            
the program.  He said they want to get those people to be a part of            
the program.  Mr. Lawson explained the third area is the promotion             
of the program so that when tourists, or any other buyer of Native             
handicrafts, goes into stores that sell handicrafts that they                  
specifically ask for handicrafts with the emblem on them.  Mr.                 
Lawson explained the fourth and last part of the operation of the              
program is basically the enforcement aspects.  He said there are               
people that try to counterfeit Native handicrafts.  They try to                
represent handicrafts as being authentic Native handicrafts.                   
                                                                               
Number 0325                                                                    
                                                                               
MR. LAWSON informed the committee members that the program was set             
up in statute in 1961.  It has been changed a few times since then,            
the most recent being in 1993.  At that point, regulations were set            
up to clarify and strengthen the eligibility rules and to make it              
easier to have enforcement for anyone who violated the program.                
Mr. Lawson stated that in fiscal year `97, the department's budget             
for the program was $5,000.  He said over the years, the Silver                
Hand Program has had its "ups and downs" in the Department of                  
Commerce and Economic Development.  Over the past several years,               
they have had to really scrape money together to pay for the                   
printing of the stickers and tags that are issued, and to do                   
whatever they can in terms of promoting the program.  Mr. Lawson               
said a very small portion of one staff person's time was assigned              
to the program.  He said they weren't able to commit the resources             
to the program that it needed.                                                 
                                                                               
Number 0446                                                                    
                                                                               
MR. LAWSON said a year ago, there were about 600 Native                        
"handicrafters" that were part of the program.  There is also a                
part of the program where you can be a "Silver Hand" agent which               
would make you eligible to issue individual permits.  There were 27            
agents.  He noted those figures are about a year old.                          
                                                                               
Number 0479                                                                    
                                                                               
MR. LAWSON referred to the terms of how the department decided to              
move the program to the ASCA and explained in 1995, the Governor               
started the Marketing Alaska Program which was basically a                     
public/private sector effort.  The Governor named a seven sector               
working group made up of public and private sector leaders.  One of            
the working groups that the Governor named was the cultural                    
resource sector working group which was made up of about 12 to 15              
people who were leaders in the arts and crafts industry in Alaska              
and were cultural experts.  Their recommendation, after studying               
several issues within their charge, was that the Silver Hand                   
Program was much better suited to be in the ASCA than in the                   
Department of Commerce and Economic Development.  Their thought was            
that it would probably thrive more with the council than it did in             
the department.                                                                
                                                                               
MR. LAWSON referred the committee members to information titled,               
"Marketing Alaska, The Governor's Economic Development Initiative,             
1996 Summary."  He said recommendation 15 basically says that the              
Silver Hand Program should be moved to the ASCA.  Mr. Lawson said              
he would be happy to answer any questions the committee may have.              
                                                                               
Number 590                                                                     
                                                                               
CHAIRMAN IVAN said the bottom line in reviewing the transfer is to             
try and protect the program and let it be where it will have the               
most support.  He said he wants the program to stay in a recognized            
state department and it should continue, as it does have some                  
economic impacts on some of the artists from communities throughout            
the state.  Chairman Ivan noted he isn't against the order, but he             
wants make sure the Silver Hand Program continues to be a viable               
program.  He said there has been a misunderstanding that the                   
legislature was attacking the program and that is far from the                 
truth.  They just want to make sure the program is being handled               
correctly.                                                                     
                                                                               
Number 0756                                                                    
                                                                               
REPRESENTATIVE FRED DYSON asked if it is Chairman Ivan's intention             
to act on the order.                                                           
                                                                               
CHAIRMAN IVAN stated his intention is to basically get a briefing,             
learn what the program is and learn why the transfer is being                  
suggested.                                                                     
                                                                               
Number 0799                                                                    
                                                                               
REPRESENTATIVE DYSON asked Chairman Ivan if the committee does                 
nothing, the transfer will happen.                                             
                                                                               
CHAIRMAN IVAN responded that is correct.  If the committee opposes             
the action, the committee would have to introduce a concurrent                 
resolution and pass it.  It would have to go through the                       
legislative process like legislation does.                                     
                                                                               
Number 0838                                                                    
                                                                               
REPRESENTATIVE DYSON asked if the artists have been notified that              
this may happen.  He inquired if the artists have any problems with            
the transfer, would the committee hear about them.                             
                                                                               
CHAIRMAN IVAN said there are two parts.  He said he doesn't know if            
the Department of Commerce and Economic Development has notified               
the artists.  He referred to the legislative hearing being noticed,            
but said he thinks there should be more committee time to address              
Representative Dyson's concern.                                                
                                                                               
REPRESENTATIVE DYSON said his recommendation would be that the                 
committee make an effort to get the word out through the media,                
journals, et cetera, to let the artists know this is pending and               
they should notify the committee if they have concerns.                        
                                                                               
Number 0958                                                                    
                                                                               
REPRESENTATIVE ALBERT KOOKESH said he doesn't mean to be unfair to             
anybody, but he believes time can be wasted by letting the order               
drag on.  He stated it makes sense for the program move to the                 
ASCA.  Representative Kookesh said he thinks Native artists could              
care less which department the program is in as long as the program            
is in place.  He asked why the committee should have hearing after             
hearing on something that is so simple.  Representative Kookesh                
indicated if there are 600 artists in the program, he probably                 
knows at least one-third of them.  Nobody has contacted him with               
concerns about moving the program.                                             
                                                                               
Number 1011                                                                    
                                                                               
REPRESENTATIVE REGGIE JOULE said Mr. Lawson mentioned there is one             
staff person who puts part of their time into the program and asked            
at what level.                                                                 
                                                                               
MR. LAWSON responded that the department has done a contract with              
the council for this year to actually informally have them operate             
the program.  The order is the final step to segregate the statute             
from the Department of Commerce and Economic Development to the                
council's statute.  He said the council is currently operating the             
program.  Mr. Lawson said he is pretty sure that every one of the              
Silver Hands Program people, who are certified, were notified of               
the change several months ago.  He said when the department                    
operated the program, it was a range 20 and they probably allocated            
less than 5 percent of their time towards the program.  Mr. Lawson             
also noted there was also some clerical assistance.  The department            
believed that not enough was being done to really push the program.            
                                                                               
Number 1112                                                                    
                                                                               
REPRESENTATIVE JOULE referred to the Governor's Economic                       
Development Initiative for Marketing Alaska and said there are                 
three different areas.  There are priorities, action items and                 
those things where they believed further dialogue was needed which             
is in the recommendations 1 through 17.  He said while                         
recommendation 15 did call for revamping of the Silver Hand                    
Program, that still fell under recommendation 3.  He said, "Any                
further dialogue was needed because I guess there just wasn't                  
consensus among the people that were involved."  He read                       
recommendation 17, "Move the Alaska State Council on the Arts and              
the Silver Hand program to a cultural resources entity in the                  
Department of Commerce and Economic Development...."  He asked if              
that was just something to look at because people couldn't make up             
their minds of what to do.  Representative Joule said one of the               
suggestions is to move the program to the council, but another                 
suggestion is to move the council back to the Department of                    
Commerce and Economic Development.                                             
                                                                               
Number 1195                                                                    
                                                                               
MR. LAWSON said, "There was a lot of discussion about that and I               
think that the arts council has had its ups and downs with where it            
is and I think at the time that was drafted it was still - the arts            
council - I think the people who studied - studied the cultural                
resources, issues and opportunities at that point felt that the                
arts council might actually thrive in commerce.  Now since that                
recommendation was made, I think that the feeling is more that it's            
fine where it is and so that's why at this point in time there                 
isn't any effort to transfer the arts council."                                
                                                                               
Number 1245                                                                    
                                                                               
REPRESENTATIVE JERRY SANDERS asked Mr. Lawson if he believes the               
Silver Hand Program will receive more money or more dedicated                  
facilities if it is in the Department of Education than it does                
where it currently is.                                                         
                                                                               
MR. LAWSON stated it is the department's feeling that the answer is            
"yes."  The reason is that they feel the arts council focuses on               
arts.  They have staff who are currently operating in the program              
and are experts on Native handicrafts which the Department of                  
Commerce and Economic Development never had.  Mr. Lawson said he               
believes the State Council on the Arts is more geared and poised               
toward looking for other sources of funding, such as federal                   
grants, to operate their various programs in the world of art.  He             
said that is what the program needs.  Mr. Lawson said his                      
department didn't have staff to pro-actively chase other sources of            
funding.                                                                       
                                                                               
Number 1343                                                                    
                                                                               
REPRESENTATIVE SANDERS said he sees the program as a commercial                
enterprise.  He said he doesn't see how it fits as well under the              
council.  He said when you talk about more money and facilities                
being dedicated to it, it is his impression that the arts,                     
nationally and statewide, are in an ebbing situation.  The support             
hasn't been there over the last four to six years and he doesn't               
see that changing.  Representative Sanders said he believes it is              
connected to commerce.  It is an art, but the object of the art is             
the commerce.  He said, "They're not doing this to grow their                  
culture, they're doing it to make some money."                                 
                                                                               
Number 1262                                                                    
                                                                               
MR. LAWSON said he is hopeful that staff for the ASCA can convince             
him otherwise.  He stated he can only speak about where the program            
was over the last several years.  He noted in the late 1980s, the              
program was inactive for awhile.  The biggest criticism is the lack            
of enforcement.  There has been a growing problem with what is                 
called "knock-off art" where artisans from other countries are                 
imported into the state or the Lower 48 and they basically imitate             
Native art.  He said he hopes the ASCA can put more resources                  
towards the program than the department was able to do.                        
                                                                               
Number 1476                                                                    
                                                                               
REPRESENTATIVE SANDERS stated he is in favor of the Silver Hand                
Program.  He said he just has to be convinced that the program                 
would be better off in the Department of Education.                            
                                                                               
Number 1487                                                                    
                                                                               
REPRESENTATIVE KOOKESH said, "I just wanted to make a comment about            
the question of commerce versus the question of art.  I would                  
probably be concerned, as my colleague here, if the state was                  
giving those artists resources from the state.  Then I would                   
probably say 'yeah, maybe it should stay in the Department of                  
Commerce.'  But all this is is a Silver Hand Program which is used             
for identifying Native art.  The state does not give any resources             
to these artists.  The only thing the state does is just spend a               
little money to have the silver hand printed.  The question then is            
a question of art.  It just seems to me to make more sense to have             
something -- this kind of a program in an area that people are                 
interested and involved and want to see the program work.  And it              
doesn't matter to me whether it's under the Department of                      
Education, just that it's with the council of arts in the state of             
Alaska.  That makes a lot more sense to me.  Like I say, if they               
were getting money from the state, hey, I think it should stay in              
Department of Commerce myself, but they're not.  This is not a                 
finance program, it's an art program."                                         
                                                                               
Number 1547                                                                    
                                                                               
REPRESENTATIVE DYSON said he appreciates knowing the participants              
in the Silver Hand Program have been notified of the change.  He               
indicated the bill just confirms what has been the practice.                   
Representative Dyson said he believes Representative Kookesh has               
made it clear that all the council is doing is certifying the                  
authenticity of handicrafts and they aren't doing much promotion.              
He said, "If the people who are doing it like it to be transferred             
and the artisans have been notified and have not raised any                    
objections, it doesn't seem to me that we should either.  But I am             
comforted by the Chair telling us that if indeed a whole bunch of              
objections show up, we have some time to rectify the situation so              
let's move."                                                                   
                                                                               
Number 1625                                                                    
                                                                               
VERNON CHIMEGALREA, Director, Native Arts Program, Alaska State                
Council on the Arts, Department of Education, testified via                    
teleconference from Anchorage.  He read the following statement                
into the record:                                                               
                                                                               
"Thank you for this opportunity to address you about the Silver                
Hand Program.                                                                  
                                                                               
"The Alaska State Council on the Arts is in support of the                     
Governor's Marketing Alaska recommendation to transfer the Silver              
Hand Program from the state Alaska Department of Commerce and                  
Economic Development to the Alaska State Council on the Arts.                  
                                                                               
"The economic impact of the arts have been on a state -- have been             
proven on a state and national level.  In Alaska, the arts are a               
viable industry with an annual income or an annual economic impact             
over $23.5 million.  The importance of the arts industry is                    
especially evident in rural Alaska where it may be a family's                  
primary source of income.                                                      
                                                                               
"ASCA has long recognized that communities and artisans need                   
assistance in developing and marketing local and regional cultural             
opportunities.  It provides grant funds, technical assistance and              
leadership to help develop the arts industry in Alaska.  For                   
example, ASCA is in its third year of a partnership with Department            
of Community and Regional Affairs to support community-based                   
efforts to diversify and strengthen rural economies through arts-              
related economic development projects.  The ASCA Rural Arts                    
Initiative Grant Program has funded three arts cooperatives being              
developed through the Association of Village Council Presidents in             
the Yukon-Kuskokwim Delta, the Tribal Council of St. Paul Island               
and in the future the Tribal Council of Pt. Hope.                              
                                                                               
"ASCA is co-sponsoring a technical assistance workshop in February             
for the planning and management of Alaska Native Museums and                   
Culture Centers.  The workshop will include sessions on the role of            
tourism, role of gift shops, collections management and exhibit                
planning.                                                                      
                                                                               
"Last fiscal year ASCA made over $500,000 in grants to                         
organizations and individuals.  Every grant we issued supports                 
Alaskan jobs and creates economic impact in the community it was               
awarded.                                                                       
                                                                               
"The Master Artist and Apprenticeship Program pairs apprentices.               
This is one of our other programs and it provides for serious study            
of a Native art with acknowledged master artists.  This program                
encourages the creation of high quality products by master artists             
in traditional Native art forms.                                               
                                                                               
"The Silver Hand Program was established to authenticate Native                
arts for the retailers and consumers while protecting the work of              
Native artists.  The program began with good intentions.  It has               
languished due to lack of commitment and resources at the                      
Department of Commerce and Economic Development.  The Governor's               
Marketing Alaska task force identified significant problems with               
the program calling it 'outdated, vague and ineffective.'  The                 
Silver Hand Program has been repeatedly criticized for failing to              
carry out its obligations.                                                     
                                                                               
"It is estimated that over 85 percent of art merchandise sold as               
Native made is not authentic.  In addition, Native artists lack                
trust in the program and retailers are not educated on how to                  
market Native arts and crafts without misrepresenting the art and              
its cultural origin.                                                           
                                                                               
"In response to the Governor's Marketing Alaska findings, it was               
recommended that the Alaska State Council on the Arts take over                
management of the Silver Hand Program.  This program goes hand in              
hand with our existing Native Arts Program.  As the Native Arts                
Program director, I apply my art and language expertise as well as             
a statewide networking to enhance and build the program.  Since the            
beginning of the fiscal year, ASCA has devoted considerable staff              
resources to revitalize this important program.  To begin, we                  
convened the advisory committee of both Native artists and                     
retailers.  We incorporated the Silver Hand Program into a                     
statewide Native arts outreach through exhibitions at major                    
conferences, for  example, the AFN [Alaska Federation of Natives]              
Convention, the (Indisc.) Conference, and such.  And as well as our            
travel -- we incorporate as well as our travel to hub areas for                
other travel purposes.  We've produced video public service                    
announcements describing the program and the purpose of the Silver             
Hand Program.  We've increased enrollment in the program by 50                 
percent to over 600 artists.  We contacted the Federal Trade                   
Commission to discuss enforcement issues and are working to make               
the Silver Hand Program locally accessible by developing                       
partnerships with the village corporations.  We've placed                      
advertisements in major tourist publications alerting travelers to             
the importance of the Silver Hand tag when purchasing authentic                
Native arts.  And we've also publicized the announcement in our                
'communica' which comes out on a (indisc.) monthly basis.                      
                                                                               
"The council feels strongly that the Silver Hand Program will be               
best served under the direction of the Alaska State Council on the             
Arts.  We will seek the public and private resources necessary to              
enhance the economies of rural Alaska through arts-related program             
like the Silver Hand Program."                                                 
                                                                               
MR. CHIMEGALREA informed the committee members that the council has            
received applications from a group of Chevak High School students              
in regards to the Silver Hand Program.  He thanked the committee               
for listening to him and offered to answer questions.                          
                                                                               
Number 1894                                                                    
                                                                               
REPRESENTATIVE JOULE said it sounds like not only does Mr.                     
Chimegalrea have a commitment for putting time and financial                   
resources into this effort, but they have already been doing that.             
                                                                               
MR. CHIMEGALREA explained that what they have done is they have                
taken a percentage of his existing pay and staff time and                      
incorporated the Silver Hand Program into existing programs.                   
                                                                               
REPRESENTATIVE JOULE said, "Within the Department of Commerce and              
Economic Development, you know, understanding that this Silver Hand            
is to certify authentic Native art.  Was there a Native person                 
working with the program?"                                                     
                                                                               
Number 1935                                                                    
                                                                               
MR. LAWSON responded in the negative.                                          
                                                                               
REPRESENTATIVE JOULE asked if the program was to move to the                   
council, would there be a Native person working with the program.              
                                                                               
MR. CHIMEGALREA answered in the affirmative and added the Native               
Arts Program director would be working with the program.                       
                                                                               
Number 1962                                                                    
                                                                               
HELEN HOWARTH, Executive Director, Alaska State Council on the                 
Arts, Department of Education, testified via teleconference from               
Anchorage.  She informed the committee that the council has a                  
dedicated staff person position devoted to Native arts and it is               
one of the only staff positions within the agency.  She stated that            
Native arts and Native arts development is a very important part of            
their mission and an important part of what the council does.                  
                                                                               
Number 1986                                                                    
                                                                               
CHAIRMAN IVAN thanked Mr. Chimegalrea and Ms. Howarth for their                
participation.  He announced he would hold the executive order.  He            
said it would be addressed in the future.  He asked the committee              
members if they hear from artists from their districts who have                
recommendations to improve the program to inform him about them.               
                                                                               
Number 2036                                                                    
                                                                               
REPRESENTATIVE JOULE said the order would be held for the purpose              
of trying to reach some of the artists around the state.  He asked             
if there will be an opportunity for action.                                    
                                                                               
CHAIRMAN IVAN said the committee does have an opportunity for                  
action.  If action isn't taken on the executive order, it would go             
forward.  If there is opposition, then action needs to come out in             
the form of a resolution.  He thanked everyone for their                       
participation.                                                                 
                                                                               
ADJOURNMENT                                                                    
                                                                               
Number 2083                                                                    
                                                                               
CHAIRMAN IVAN adjourned the House Community and Regional Affairs               
Standing Committee meeting at 8:37 a.m.                                        

Document Name Date/Time Subjects