Legislature(1993 - 1994)

02/10/1994 08:00 AM STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
             HOUSE STATE AFFAIRS STANDING COMMITTEE                            
                        February 10, 1994                                      
                            8:00 a.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Al Vezey, Chairman                                            
  Representative Pete Kott, Vice Chairman                                      
  Representative Bettye Davis                                                  
  Representative Gary Davis                                                    
  Representative Harley Olberg                                                 
  Representative Jerry Sanders                                                 
  Representative Fran Ulmer                                                    
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  None                                                                         
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  *HCR 29:    Relating to the military operations                              
              areas environmental impact statement                             
              of the United States Air Force.                                  
                                                                               
  *HCR 30:    Relating to the twenty-sixth annual                              
              Girls' State.                                                    
                                                                               
  *HB 395:   "An Act relating to retirement benefits                           
              for the administrative director of courts;                       
              and providing for an effective date."                            
                                                                               
  *HB 411:   "An Act relating to the art in public places                      
              requirements for state-owned and state-leased                    
              buildings and facilities."                                       
                                                                               
  (* First public hearing)                                                     
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  COLONEL RICHARD HASSEN                                                       
  ALCOM-J4                                                                     
  5800 6th Street, Ste 203                                                     
  Elmendorf AFB, AK  99506-2150                                                
  Position Statement:  Testified in support of HCR 29                          
                                                                               
  PAULA DITTON, Staff                                                          
  Representative Gail Phillips                                                 
  Alaska State Capitol, Room 216                                               
  Juneau, AK  99811                                                            
  Phone:  465-2689                                                             
  Position Statement:  Testified in support of HCR 30                          
                                                                               
  BOB STALNAKER, DIRECTOR                                                      
  Division of Retirement and Benefits                                          
  Department of Administration                                                 
  P.O. Box 110203                                                              
  Juneau, AK  99811                                                            
  Phone:  465-4471                                                             
  Position Statement:  Answered questions on HB 395                            
                                                                               
  TIM WILSON, Executive Director                                               
  Alaska State Arts Council                                                    
  411 W. 4th Ave. Suite 1E                                                     
  Anchorage, AK  99501                                                         
  Phone:  279-1558                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
                                                                               
  PATRICIA WOLF, Director                                                      
  Anchorage Museum                                                             
  121 W. 7th Ave.                                                              
  Anchorage, AK  99501                                                         
  Phone:  343-4326                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  ALDONA JOHAITI, Director                                                     
  University of Alaska Fairbanks Museum                                        
  907 Yukon Dr.                                                                
  Fairbanks, AK  99775                                                         
  Phone:  474-6939                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  JANEL THOMPSON, Director                                                     
  Alaska Arts Association                                                      
  P.O. Box 72786                                                               
  Fairbanks, AK  99707                                                         
  Phone:  456-6485                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  KATHLEEN BERNTSON                                                            
  1260 Sayles St.                                                              
  Ketchikan, AK  99901                                                         
  Phone:  225-2944                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  MARGARET ORTIZ                                                               
  3204 S. Tongass Hwy.                                                         
  Ketchikan, AK  99901                                                         
  Phone:  225-6321                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  JOAN JACKSON, Board Member                                                   
  Alaska State Council on the Arts                                             
  P.O. Box 374                                                                 
  Cordova, AK  99574                                                           
  Phone:  424-7591                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  GAIL PARSONS                                                                 
  P.O. Box 2397                                                                
  Homer, AK  99603                                                             
  Phone:  235-3978                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  RICHARD "TOBY" TYLER                                                         
  P.O. Box 1281                                                                
  Homer, AK  99603                                                             
  Phone:  Not given                                                            
  Position Statement:  Opposed HB 411                                          
                                                                               
  SANDY STOLLE                                                                 
  P.O. Box 2363                                                                
  Seward, AK  99664                                                            
  Phone:  224-5857                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  MICHAEL OLSON                                                                
  P.O. Box 2152                                                                
  Seward, AK  99664                                                            
  Phone:  224-7161                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  JOAN NUGENT                                                                  
  P.O. Box 8141                                                                
  Ketchikan, AK  99901                                                         
  Phone:  225-4350                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  MOLLY JONES, Manager                                                         
  Anchorage One Percent For Art Project                                        
  121 W. 7th Ave.                                                              
  Anchorage, AK  99501                                                         
  Phone:  343-6473                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  JOCELYN YOUNG, Director                                                      
  Arts and Education Program                                                   
  Alaska State Council on the Arts                                             
  715 L St. Suite 6                                                            
  Anchorage, AK  99501                                                         
  Phone:  276-8844                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  JOAN CAHILL, Representing                                                    
  Sealaska Heritage Foundation AND                                             
  NAA Kahidi Theater                                                           
  One Sealaska Plaza                                                           
  Juneau, AK  99801                                                            
  Phone:  586-9262                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  NATALEE ROTHAUS, Executive Director                                          
  Juneau Arts and Humanities Council                                           
  P.O. Box 20562                                                               
  Juneau, AK  99802                                                            
  Phone:  586-2787                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  BARBARA SHORT, Coordinator                                                   
  Fairbanks North Star Borough School District                                 
  Chair, Alliance of Arts in Education                                         
  253 Hawk Rd.                                                                 
  Fairbanks, AK  99712                                                         
  Phone:  457-1299                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  WANDA CHIN                                                                   
  P.O. Box 82148                                                               
  Fairbanks, AK  99708                                                         
  Phone:  474-0131                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  VICTORIA LORD, Executive Director                                            
  Ketchikan Arts and Humanities Council                                        
  P.O. Box 7342                                                                
  Ketchikan, AK  99901                                                         
  Phone:  247-8617                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  RAY TROLL                                                                    
  P.O. Box 8874                                                                
  Ketchikan, AK  99901                                                         
  Phone:  225-5954                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  LYNN NADEN, Board Member                                                     
  Homer Council on the Arts                                                    
  P.O. Box 2776                                                                
  Homer, AK  99603                                                             
  Phone:  235-5966                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  JIMMIE WILES                                                                 
  P.O. Box 734                                                                 
  Homer, AK  99603                                                             
  Phone:  235-3492                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  IRA PERMAN                                                                   
  1041 W. 23rd Ave.                                                            
  Anchorage, AK  99503                                                         
  Phone:  272-8938                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  PAT PETRIVELLI, Executive Director                                           
  Institute of Alaska Native Arts                                              
  P.O. Box 70769                                                               
  Fairbanks, AK  99707                                                         
  Phone:  456-7491                                                             
  Position Statement:  Opposed HB 411                                          
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  HCR 29                                                                
  SHORT TITLE: COMMEND AIR FORCE: ENVIR IMPACT STATEMENT                       
  SPONSOR(S): REPRESENTATIVE(S) JAMES,Vezey                                    
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/24/94      2137    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/24/94      2137    (H)   STATE AFFAIRS                                    
  02/10/94              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
  BILL:  HCR 30                                                                
  SHORT TITLE: TWENTY-SIXTH ANNUAL GIRLS STATE                                 
  SPONSOR(S): REPRESENTATIVE(S)                                                
  PHILLIPS,Ulmer,Grussendorf,Navarre                                           
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  02/02/94      2217    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  02/02/94      2217    (H)   STATE AFFAIRS                                    
  02/10/94              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
  BILL:  HB 395                                                                
  SHORT TITLE: COURT ADMINISTRATIVE DIRECTOR IN PERS                           
  SPONSOR(S): REPRESENTATIVE(S) VEZEY                                          
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/24/94      2137    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/24/94      2137    (H)   STATE AFFAIRS, JUDICIARY                         
  02/10/94              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
  BILL:  HB 411                                                                
  SHORT TITLE: REPEAL ART IN PUBLIC PLACES REQUIREMENT                         
  SPONSOR(S): REPRESENTATIVE(S) VEZEY                                          
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/20/93              (H)   MINUTE(RES)                                      
  01/28/94      2177    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/28/94      2177    (H)   STATE AFFAIRS, FINANCE                           
  02/10/94              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
  ACTION NARRATIVE                                                             
  TAPE 94-10, SIDE A                                                           
  Number 000                                                                   
                                                                               
  CHAIR Al VEZEY called the meeting to order 8:01 a.m.                         
  REPRESENTATIVES KOTT, B. DAVIS, G. DAVIS, H. OLBERG, and J.                  
  SANDERS were announced present.  REPRESENTATIVE ULMER joined                 
  the meeting at 8:02 a.m.  CHAIR VEZEY, co-sponsor of HCR 29                  
  with REPRESENTATIVE JEANNETTE JAMES, deferred the customary                  
  sponsor statement and began testimony on HCR 29.                             
                                                                               
  Number 044                                                                   
  HCR 29 COMMEND AIR FORCE: ENVIR IMPACT STATEMENT                             
                                                                               
  COLONEL RICHARD HASSEN, ALCOM, ELMENDORF AIR FORCE BASE,                     
  testified by offnet teleconference in favor of HCR 29.  He                   
  stated the Air Force's approach is to gain approval for the                  
  necessary training areas that are essential to their mission                 
  in Alaska, but the overall goal is to seek a balance between                 
  necessary training and respect for the environment.  To                      
  illustrate how they seek this balance, COLONEL HASSAN spoke                  
  about the Air Force Military Operations Area Environmental                   
  Impact Statement (EIS) process.  He said last year the Air                   
  Force announced their intent to prepare an EIS with proposed                 
  adjustments to military air space in Alaska.  The purpose of                 
  the EIS was to analyze potential environmental impacts on                    
  these proposed changes in accordance with the National                       
  Environmental Policy Act (NEPA).  COLONEL HASSAN stressed                    
  that from the beginning of the EIS effort the Air Force has                  
  sought maximum participation from the Alaskan public by                      
  holding meetings in locations throughout the state.  The                     
  input gathered will be considered and addressed in the EIS                   
  and will become a part of the Environmental Impact Statement                 
  analysis.                                                                    
                                                                               
  COLONEL HASSEN mentioned four significant points about the                   
  Air Force Military Operations Area EIS:  1) the changes are                  
  only proposed, the Air Force is more than a year away from                   
  any decisions; 2) the proposal is not expected to increase                   
  the overall firing military activity in Alaska; 3) the                       
  proposal will not change the public's existing right to                      
  access any air space; and 4) the Air Force is serious about                  
  public involvement.  He said several adjustments have                        
  already been incorporated into the original proposal because                 
  of issues raised by concerned Alaskans.  The draft EIS is                    
  scheduled to be released this coming summer.                                 
                                                                               
  Number 136                                                                   
                                                                               
  CHAIR VEZEY asked COLONEL HASSAN to characterize the safety                  
  aspects of the proposal.                                                     
                                                                               
  Number 149                                                                   
                                                                               
  COLONEL HASSEN noted there are two very significant                          
  outcomes.  First, the Air Force believes that turning                        
  temporary military operations areas into permanent military                  
  operations air space is simply a terminology change as far                   
  as the FAA and most citizens are concerned.  He said a                       
  significant sidelight is, when changing temporary to                         
  permanent air space, that air space then becomes charted on                  
  air space maps, which are available to all pilots.  He                       
  further stated that when air space is charted, it acts as an                 
  additional advisory so people know where the Air Force is                    
  allowed to train.  Secondly, the Air Force believes that                     
  over $1 million can be saved by not having to obtain                         
  approval from the FAA for temporary air space.  He gave an                   
  example of how the Air Force requested approval for the same                 
  space nine times over the last three years.                                  
                                                                               
  Number 185                                                                   
                                                                               
  REPRESENTATIVE B. DAVIS asked CHAIR VEZEY to affirm that HCR
  29 is a letter of support for this action to take place and                  
  asked if the actual change had to be done at the federal                     
  level.                                                                       
                                                                               
  Number 192                                                                   
                                                                               
  CHAIR VEZEY told REPESENTATIVE B. DAVIS she was correct.  He                 
  added HCR 29 commends the Air Force for the open nature of                   
  the EIS in support of a change in the federal declaration of                 
  Alaskan airspace.                                                            
                                                                               
  Number 199                                                                   
                                                                               
  REPRESENTATIVE B. DAVIS asked if there were any current                      
  bills in Congress which HCR 29 could be tied to.                             
                                                                               
  Number 201                                                                   
                                                                               
  CHAIR VEZEY did not believe so.                                              
                                                                               
  Number 203                                                                   
                                                                               
  COLONEL HASSEN was not aware of any bills.  He noted that                    
  the Air Force operates under and received guidance for                       
  preparing the EIS from NEPA.  COLONEL HASSAN pointed out                     
  that the Air Force elected to proceed with the full EIS                      
  approach in order to get the up-front, whole public                          
  environment in their proposal, and going through the EIS                     
  process provided this opportunity for public particpation.                   
                                                                               
  CHAIR VEZEY asked for a recommendation from the committee.                   
                                                                               
  Number 229                                                                   
                                                                               
  REPRESENTATIVE B. DAVIS moved that HCR 29 be passed out of                   
  committee with individual recommendations.                                   
                                                                               
  Number 231                                                                   
                                                                               
  CHAIR VEZEY recognized REPRESENTATIVE B. DAVIS' motion.  The                 
  committee secretary called the roll and HCR 29 passed                        
  unanimously from the House State Affairs Committee with                      
  individual recommendations.  HCR 29 will proceed to the                      
  House Rules Committee.                                                       
  HCR 30 - TWENTY-SIXTH ANNUAL GIRLS STATE                                     
                                                                               
  Number 256                                                                   
                                                                               
  CHAIR VEZEY opened discussion on HCR 30.                                     
                                                                               
  Number 265                                                                   
                                                                               
  PAULA DITTON, representing sponsor REPRESENTATIVE GAIL                       
  PHILLIPS, read the following sponsor statement:                              
                                                                               
  "House Concurrent Resolution 30 salutes the participants in                  
  the 26th Annual Girls' State Program, to be held June 10-17                  
  at the University of Alaska Fairbanks.  The resolution                       
  salutes the sponsors, the American Legion Auxiliary and                      
  recognizes government officials and agencies, including our                  
  own Legislative Affairs Agency, as well as private                           
  individuals and organizations who support and participate in                 
  the program.                                                                 
                                                                               
  "I strongly support Girls' State as an exercise of youth                     
  citizenship where delegates from all over the state learn                    
  the duties of the various offices connected with city,                       
  borough and state government.                                                
                                                                               
  "House Concurrent Resolution 30 has a zero fiscal note                       
  attached."                                                                   
                                                                               
  Number 282                                                                   
                                                                               
  REPRESENTATIVE KOTT asked if HCR 30 was the same resolution                  
  as was presented in 1993.                                                    
                                                                               
  Number 285                                                                   
                                                                               
  MS. DITTON stated HCR 30 was the same.                                       
                                                                               
  CHAIR VEZEY clarified that last year was the 25th Annual                     
  Girls' State.                                                                
                                                                               
  Number 293                                                                   
                                                                               
  REPRESENTATIVE KOTT moved to pass HCR 30 out of committee                    
  unanimously.                                                                 
                                                                               
  Number 304                                                                   
                                                                               
  CHAIR VEZEY recognized REPRESENTATIVE KOTT's motion.  The                    
  committee secretary called the roll and HCR 30 passed from                   
  the House State Affairs Committee with unanimous "do pass"                   
  recommendation.                                                              
  HB 395 - COURT ADMINISTRATIVE DIRECTOR IN PERS                               
                                                                               
  Number 314                                                                   
                                                                               
  CHAIR VEZEY recognized himself as the sponsor of HB 395, and                 
  turned the gavel over to VICE CHAIRMAN PETE KOTT.                            
                                                                               
  REPRESENTATIVE VEZEY began with, "This bill says that in the                 
  future when the court system hires an administrative                         
  director, if that person is hired after the effective date                   
  of this legislation, that person will not have the option of                 
  participating in the judicial retirement system."  He                        
  explained the reason the bill is so lengthy is to keep the                   
  clarification in the statutes that there is indeed, or has                   
  been in the past, an administrator of the Alaska Court                       
  System that has been in the Judicial Retirement System.                      
  Therefore, when the administration changes, there would be                   
  continuity in the administration of the benefits.                            
                                                                               
  REPRESENTATIVE VEZEY said the Judicial Retirement System is                  
  certainly the most generous retirement system, with the                      
  state of Alaska paying 50.2 percent of an employees' salary,                 
  on an annual basis, toward retirement benefits.  He stated                   
  the administrator of the Alaska Court System is the only                     
  public employee of the state of Alaska, other than a judge                   
  or a justice, who is allowed to participate in this system.                  
  He explained that benefactors in this system receive a five                  
  percent per year credit toward the retirement of their                       
  salary, with a maximum of 15 years or 75 percent.  This                      
  retirement benefit is adjusted for every pay increase that                   
  future employees in that position receive, with inflation                    
  adjusted.  He compared this with an employee in the PERS                     
  system, who would receive after 30 years, approximately 66                   
  percent of their salary retirement.  He stated there were a                  
  lot of inequities between the way this employee is treated                   
  and other employees in the court system and the state of                     
  Alaska.  He felt this was an issue of equity and treating                    
  our state employees in an equitable manner and was not the                   
  kind of statute we should have especially, when the state is                 
  in a budget cutting mode.                                                    
                                                                               
  Number 377                                                                   
                                                                               
  REPRESENTATIVE HARLEY OLBERG inquired why REPRESENTATIVE                     
  VEZEY restrained from changing the entire system, and asked                  
  if he intended to do so in the future.                                       
                                                                               
  Number 387                                                                   
                                                                               
  REPRESENTATIVE VEZEY replied the Senate currently has a bill                 
  which evaluates  the state's retirement system and that is                   
  probably the primary reason why he has not worked on                         
  proposing an overhaul of the state's retirement system.  He                  
  said the Judicial Retirement System, compared to the Public                  
  Employees Retirement System and the Teachers Retirement                      
  System, is a modestly small program.  He suggested if                        
  revisions are made to pension programs, that it be done as a                 
  total package.                                                               
                                                                               
  REPRESENTATIVE VEZEY recognized there are reasons for having                 
  a special retirement program for the Judiciary.  At one                      
  time, members of our Judiciary were members of the Public                    
  Employees Retirement System.                                                 
                                                                               
  Number 410                                                                   
                                                                               
  REPRESENTATIVE JERRY SANDERS liked the idea of HB 395, but                   
  wondered if it was not scrutinizing one individual for a cut                 
  and if there was a benefit to the state.                                     
                                                                               
  Number 415                                                                   
                                                                               
  REPRESENTATIVE VEZEY reiterated that HB 395 did not single                   
  out one individual, because under the current interpretation                 
  of Alaska's Constitution, a person's retirement system                       
  cannot be changed once they're employed.  REPRESENTATIVE                     
  VEZEY pointed out there is some legal argument to that, but                  
  that is the legal guideline the state is operating under.                    
  HB 395 says that future employees in this position would not                 
  be brought into this program.                                                
                                                                               
  REPRESENTATIVE SANDERS reaffirmed HB 395 only applies to one                 
  position.                                                                    
                                                                               
  Number 427                                                                   
                                                                               
  REPRESENTATIVE VEZEY emphasized there may be severe                          
  constitutionality questions if HB 395 applied to one person,                 
  but at this time, the consensus is that since it applies to                  
  a position and more than one person could fill that                          
  position, it is constitutional.                                              
                                                                               
  REPRESENTATIVE OLBERG asked REPRESENTATIVE VEZEY if it has                   
  been deemed unconstitutional to change a person's retirement                 
  benefits after being employed.                                               
                                                                               
  Number 438                                                                   
                                                                               
  REPRESENTATIVE VEZEY replied that was the definition of a                    
  couple of court decisions he had read.                                       
                                                                               
  Number 444                                                                   
                                                                               
  VICE CHAIRMAN KOTT introduced BOB STALNAKER as the next                      
  witness.                                                                     
                                                                               
  Number 445                                                                   
                                                                               
  BOB STALNAKER, DIRECTOR, DIVISION OF RETIREMENT & BENEFITS,                  
  DEPARTMENT OF ADMINISTRATION, stated his department has a                    
  neutral opinion of HB 395.                                                   
                                                                               
  Number 450                                                                   
                                                                               
  VICE CHAIRMAN KOTT asked for further questions.                              
                                                                               
  Number 468                                                                   
                                                                               
  REPRESENTATIVE B. DAVIS asked, if a new person is hired as                   
  administrator for the court system, would that person be                     
  hired under the Supervisors PERS System?                                     
                                                                               
  Number 473                                                                   
                                                                               
  REPRESENTATIVE VEZEY stated HB 395 would eliminate the                       
  current administrative director's option to opt out of PERS                  
  and go into the Judicial Retirement System.                                  
                                                                               
  Number 479                                                                   
                                                                               
  REPRESENTATIVE OLBERG moved that HB 395 be moved out of                      
  committee with individual recommendations and unanimous                      
  consent.                                                                     
                                                                               
  Number 481                                                                   
                                                                               
  VICE CHAIRMAN KOTT recognized REPRESENTATIVE OLBERG's motion                 
  and moved HB 395 out of the House State Affairs Committee                    
  with individual recommendations.                                             
                                                                               
  Number 498                                                                   
  HB 411 - REPEAL ART IN PUBLIC PLACES REQUIREMENT                             
                                                                               
  Recognizing CHAIR VEZEY as prime sponsor of HB 411, VICE                     
  CHAIRMAN KOTT retained the gavel.  He opened HB 411 for                      
  discussion.                                                                  
                                                                               
  Number 500                                                                   
                                                                               
  REPRESENTATIVE VEZEY said HB 411 removes the mandate that                    
  one percent of the funding for state-owned or leased                         
  facilities go to the arts council for the procurement of                     
  art.  HB 411 does not prohibit the procurement of art, but                   
  it does allow the state greater flexibility to administer                    
  capital improvement funds.                                                   
                                                                               
  Number 516                                                                   
                                                                               
  VICE CHAIRMAN KOTT opened teleconference sites for                           
  testimony, beginning with Anchorage.                                         
                                                                               
  Number 519                                                                   
                                                                               
  TIM WILSON, EXECUTIVE DIRECTOR, ALASKA STATE COUNCIL OF THE                  
  ARTS, testified in opposition to HB 411.  (A copy of his                     
  written testimony is on file).  He said currently there are                  
  over 100 "Percent for Art" programs across the nation,                       
  operated by the federal government, 29 states and numerous                   
  cities.  Anchorage is the only city in Alaska to operate a                   
  municipal program, and it is managed by a full-time position                 
  at the Anchorage Museum of History and Art.                                  
                                                                               
  MR. WILSON further stated that at the state level, the                       
  Percent for Art program operates without a direct                            
  administrative expense and every dollar spent in the program                 
  goes directly to the art project.  The program has no staff;                 
  responsibility for compliance is that of the department                      
  constructing the building or facility.  He stated HB 411                     
  would have a negative effect on the public and the artists,                  
  but the biggest public impact of HB 411 would be on Alaska's                 
  schools and children.  In FY 93, every project in the                        
  Percent for Art program was in either a school or university                 
  building.  He emphasized that  the current fiscal impact                     
  would be zero with the passage of this bill because all the                  
  projects are already obliged under the FY 94 budget.                         
                                                                               
  REPRESENTATIVE ULMER asked how many states operate a Percent                 
  for Art programs.                                                            
                                                                               
  MR. WILSON replied 29.                                                       
                                                                               
  Number 573                                                                   
                                                                               
  PATRICIA WOLF, DIRECTOR, ANCHORAGE MUSEUM, testified in                      
  opposition to HB 411.  She stated the art acquired from the                  
  Percent for Art programs has been successful in improving                    
  the aesthetic environment of Alaska.   She said the One                      
  Percent for Art program established in 1978 by the                           
  Municipality of Anchorage and administered by the Anchorage                  
  Museum has provided art for more than 70 municipal                           
  buildings, 47 schools, as well as facilities used by                         
  residents and tourists.  She stressed that children are                      
  inspired by artistic projects in school.  Art enhances the                   
  children's learning environment by giving them daily contact                 
  with art work with which they can identify.                                  
                                                                               
                                                                               
  MS. WOLF stated she understood the concern for fiscal                        
  responsibility, but the money that would be saved by                         
  eliminating the Percent for Art program is based on a                        
  cyclical nature of construction budgets available to state                   
  agencies and local governments, and is minimal.  She                         
  suggested the program be improved by more effective                          
  administration instead of eliminated.  She offered the                       
  assistance of those involved in Anchorage's Percent for Art                  
  program.                                                                     
                                                                               
  Number 615                                                                   
                                                                               
  VICE CHAIRMAN KOTT moved to the Fairbanks teleconference                     
  site.                                                                        
                                                                               
  Number 615                                                                   
                                                                               
  ALDONA JOHAITI, DIRECTOR, UNIVERSITY OF ALASKA FAIRBANKS                     
  MUSEUM, testified that art exemplifies Alaska's lifestyle,                   
  enhances a person's environment and makes a significant                      
  statement about what we value; what we think is important.                   
  She emphasized that the Percent for Art program enhances                     
  Alaska has a tourist destination.  She said she is opposed                   
  to HB 411.                                                                   
                                                                               
  Number 642                                                                   
                                                                               
  JANEL THOMPSON, DIRECTOR, FAIRBANKS ARTS ASSOCIATION,                        
  testified in opposition of HB 411.  She said the association                 
  presents an artist in schools program each year, which                       
  allows them to go into the schools and see how art in the                    
  schools really affects the children.  She commented that the                 
  art in public places program provides a better environment                   
  for individuals who are otherwise deprived of art work.                      
                                                                               
  Number 659                                                                   
                                                                               
  VICE CHAIRMAN KOTT moved to the Ketchikan teleconference                     
  site.                                                                        
                                                                               
  Number 664                                                                   
                                                                               
  KATE BERNTSON, a watercolor artist and graphic designer,                     
  testified in opposition to HB 411.  (Her written testimony                   
  is on file).  She mentioned that some of the finest works of                 
  art in Ketchikan are located in the public health center and                 
  the schools, giving the Alaskan children an opportunity to                   
  grow up with the knowledge and expectation that art is an                    
  important quality of life.  She stated that her experience                   
  in creating art work for two public buildings in Ketchikan                   
  provided her with employment, stimulated the local economy,                  
  and provided a piece of artwork that tells the story of the                  
  community.                                                                   
                                                                               
  Number 679                                                                   
                                                                               
  MARGARET ORTIZ testified in opposition to HB 411.  She                       
  explained that people in most small communities are deprived                 
  of artwork and greatly benefit from the art in public places                 
  program.  Communities do have a need for art to enhance                      
  their quality of life and the education of our young people.                 
  She requested the committee not eliminate the Percent for                    
  Art program.                                                                 
                                                                               
  TAPE 94-10, SIDE B                                                           
  Number 000                                                                   
                                                                               
  VICE CHAIRMAN KOTT moved to the Cordova teleconference site.                 
                                                                               
  JOAN JACKSON, BOARD MEMBER, ALASKA STATE COUNCIL ON THE                      
  ARTS, testified in opposition to HB 411.  She said the                       
  Percent for Art program provides a means of background and                   
  history which is immediately visible to visitors.  Without                   
  Percent for Art, building owners may tend to opt out of                      
  artistic projects in their buildings.  MS. JACKSON suggested                 
  the State Arts Council be allowed the opportunity to revamp                  
  the program instead of using HB 411 to delete it.  She also                  
  suggested the one percent be reduced to half of one percent                  
  if HB 411 was proposed to save money.                                        
                                                                               
  VICE CHAIRMAN KOTT moved to the Homer teleconference site.                   
                                                                               
  GAIL PARSONS testified in opposition to HB 411.  She                         
  emphasized the importance of art, especially in Alaska.  She                 
  noted that without the One Percent for Art program, our                      
  children would be shortchanged.  She urged the committee to                  
  "reconsider the bill and instead of repealing the One                        
  Percent For Art; support it in the interest of a better                      
  educated, healthier, more beautiful Alaska."                                 
                                                                               
  Number 123                                                                   
                                                                               
  RICHARD "TOBY" TYLER testified in opposition to HB 411.  He                  
  expressed his support of MS. JACKSON's testimony.  MR. TYLER                 
  said to the best of knowledge the local college in Homer was                 
  the only building in his area that housed Percent for Art                    
  work, but the addition of art made the building more                         
  attractive.  He mentioned, while most of the art in Homer is                 
  donated, most places in Alaska do not have this benefit.                     
                                                                               
  Number 156                                                                   
                                                                               
  VICE CHAIRMAN KOTT moved to the Seward teleconference site.                  
                                                                               
  Number 161                                                                   
                                                                               
  SANDY STOLLE testified in opposition to HB 411.  She                         
  remarked that her participation in the One Percent for Art                   
  program had allowed her personal growth, as well as the                      
  opportunity to work on a much larger scale.  She pointed out                 
  the educational benefits included in the program; e.g., when                 
  the artist goes into a school to do a piece of artwork, they                 
  normally give a lecture that goes along with the artwork.                    
  MS. STOLLE spoke of a prison project which required the                      
  inmates to participate in the fabrication of the art piece.                  
  Once the project was completed the inmates continued to work                 
  on various projects that enhanced the community.                             
                                                                               
  MICHAEL OLSON testified in opposition to HB 411.  He agreed                  
  art is a quality of life issue and it should be enhanced.                    
  Seward does not have any One Percent for Art in their                        
  schools.  He remarked that artwork in public places has a                    
  positive impact on tourism and suggested a revamping of the                  
  program and a fulltime administrator on the state level to                   
  manage the program.                                                          
                                                                               
  Number 241                                                                   
                                                                               
  VICE CHAIRMAN KOTT moved to the Ketchikan teleconference                     
  site.                                                                        
                                                                               
  JOAN NUGENT testified in opposition to HB 411.  She shared                   
  her experience of working on the One Percent for Art project                 
  at the health center in Ketchikan.  She said while the                       
  budget was small, the art selected changed the facility from                 
  a nice, but sterile building to a warm, welcoming building.                  
  MS. NUGENT commented that the aesthetics of a community                      
  influence where people go to vacation.  She emphasized that                  
  artists are residents of the state; they are a labor force                   
  and an industry that is deserving of public support.  She                    
  maintained that removing the mandate would eliminate the One                 
  Percent for Art program.                                                     
                                                                               
  Number 308                                                                   
                                                                               
  VICE CHAIRMAN KOTT moved to the Anchorage teleconference                     
  site.                                                                        
                                                                               
  MOLLY JONES, MANAGER, ANCHORAGE ONE PERCENT FOR ART PROJECT,                 
  testified in opposition to HB 411.  She stated the activity                  
  of Anchorage's One Percent for Art program has gone up and                   
  down with the economy, but Anchorage now has art located in                  
  more than 70 buildings, including neighborhood recreation                    
  centers, parking garages, swimming pools, utility buildings,                 
  senior centers and 47 schools.  More than 400 people have                    
  served as volunteers on the art selection juries that have                   
  chosen the works of art.  She observed there has been very                   
  little vandalism, which she believes is a testament to the                   
  respect the public has for art in public places.  She                        
  offered, from an historical point, that Alaska was one of                    
  the first states in the nation to have mandatory Percent for                 
  Art legislation; now more than half of the states have such                  
  laws.                                                                        
                                                                               
  Number 357                                                                   
                                                                               
  JOCELYN YOUNG, DIRECTOR, ARTS & EDUCATION PROGRAM FOR THE                    
  ALASKA STATE COUNCIL ON THE ARTS, testified in opposition to                 
  HB 411.  She stated since 1982 she has coordinated many art                  
  in schools residency programs where artists go into a                        
  community and share their ideas and arts with students,                      
  interacting in a very personal way.  She affirmed that this                  
  interaction has a strong impact on the artists' work, as                     
  well as on the students.  MS. YOUNG offered several examples                 
  of how the Percent for Arts program has impacted rural                       
  schools in Alaska.                                                           
                                                                               
  Number 391                                                                   
                                                                               
  VICE CHAIRMAN KOTT moved back to Juneau for testimony.                       
                                                                               
  Number 397                                                                   
                                                                               
  JOAN CAHILL, representing the NAA KAHIDI THEATER and                         
  SEALASKA HERITAGE FOUNDATION, testified in opposition to HB
  411.  (A copy of her written testimony is on file).  She                     
  believes "artistic expression is one of the few distinctive                  
  factors that characterize human beings from all other life                   
  forms."  She considers artwork to be as important to                         
  buildings as "bricks, glass, and concrete."  Art in public                   
  places "lends value, longevity, and pride in the buildings                   
  we create."                                                                  
                                                                               
  Number 430                                                                   
                                                                               
  NATALEE ROTHAUS, EXECUTIVE DIRECTOR, JUNEAU ARTS &                           
  HUMANITIES COUNCIL, testified in opposition to HB 411.  She                  
  stated the purpose of the percent for art program is to                      
  "foster culture and the arts, and for the viable development                 
  of its artists and craftsmen."   She pointed out that in FY                  
  93 every project was either in a school or a university                      
  building.  The result of these programs have improved the                    
  environment of public buildings and made art accessible on a                 
  daily basis to people from all walks of life.  It has also                   
  given artists work, support, and a place to display their                    
  work.  She further stated the Juneau Arts & Humanities                       
  Council believes that public officials have a responsibility                 
  to enhance the quality of life in Alaska.                                    
                                                                               
  Number 452                                                                   
                                                                               
  VICE CHAIRMAN KOTT moved to the Fairbanks teleconference                     
  site.                                                                        
                                                                               
  BARBARA SHORT, ART COORDINATOR, FAIRBANKS NORTH STAR BOROUGH                 
  SCHOOL DISTRICT and CHAIR for the ALLIANCE OF ARTS IN                        
  EDUCATION, testified in opposition to HB 411.  Ms. Short                     
  stated that half of the 30 schools in Fairbanks have Percent                 
  for Art pieces.  She gave examples of Percent for Art                        
  projects currently in process that would not be possible if                  
  this bill is passed.  Ms. Short noted that North Pole                        
  Elementary in Representative Vezey's district is in need of                  
  artwork.  She did not agree with the idea of reducing the                    
  funding to a half of a percent, but instead suggested more                   
  enforcement so it is more widely used.                                       
                                                                               
  Number 505                                                                   
                                                                               
  REPRESENTATIVE ULMER thanked BARBARA SHORT for her testimony                 
  and the rest of the testifiers for their contributions.                      
                                                                               
  Number 509                                                                   
                                                                               
  WANDA CHIN testified in opposition to HB 411.  She remarked                  
  that each community chooses art that is suitable for their                   
  environment.  She spoke of her own experience whereby she                    
  was commissioned to produce a work of art.  She suggested                    
  that the program be improved, not eliminated.                                
                                                                               
                                                                               
  VICE CHAIRMAN KOTT moved to the Ketchikan teleconference                     
  site.                                                                        
                                                                               
  Number 555                                                                   
                                                                               
  VICTORIA LORD, EXECUTIVE DIRECTOR, KETCHIKAN ARTS &                          
  HUMANITIES COUNCIL, testified in opposition to HB 411.  MS.                  
  LORD stated the Ketchikan Arts Council has been directly                     
  involved in the Percent for Art project in Ketchikan and is                  
  proud of the artwork displayed in the local public                           
  buildings.  She stressed that artists should not have to                     
  donate their work, and she believes Percent for Art should                   
  be expanded to include outdoor projects.                                     
                                                                               
  Number 584                                                                   
                                                                               
  RAY TROLL stated he is strongly opposed to HB 411.  (A copy                  
  of his written testimony is on file).  He felt the state                     
  office building in Ketchikan, which was built before the                     
  Percent for Art program was established, is very bleak and                   
  oppressive and needs the added improvement.                                  
                                                                               
  Number 595                                                                   
                                                                               
  VICE CHAIRMAN KOTT moved to the Homer teleconference site.                   
                                                                               
  Number 597                                                                   
                                                                               
  LYNN NADEN, ARTIST and BOARD MEMBER, HOMER COUNCIL ON THE                    
  ARTS, testified in opposition to HB 411.  MS. NADEN                          
  mentioned that most of the individuals testifying are art                    
  educators, artists, or interested in promoting the arts.                     
  She noted REPRESENTATIVE VEZEY's occupation is in                            
  construction and questioned if he had any self-interest in                   
  HB 411.                                                                      
                                                                               
  Number 609                                                                   
                                                                               
  REPRESENTATIVE VEZEY could not recall the last time he may                   
  have participated in a project that was subject to the One                   
  Percent for Art.  He said it is possible that there have                     
  been projects, but he works primarily on power plants,                       
  sewage treatment plants, highways and bridges, all of which                  
  are not included in the Percent for Art program.                             
                                                                               
  Number 616                                                                   
                                                                               
  VICE CHAIRMAN KOTT asked to continue with JIMMIE WILES in                    
  Homer.                                                                       
                                                                               
  Number 617                                                                   
                                                                               
  JIMMIE WILES testified in opposition to HB 411.  He felt the                 
  percent for art program should expand to two percent over                    
  time as a statement of our commitment to cultural expansion                  
  in Alaska.                                                                   
                                                                               
  Number 625                                                                   
                                                                               
  VICE CHAIRMAN KOTT moved to the Anchorage teleconference                     
  site.                                                                        
                                                                               
  Number 628                                                                   
                                                                               
  IRA PERMAN testified as the parent of a child who goes to                    
  Denali Elementary School in Anchorage.  Mr. Perman stated                    
  the recent renovation of the school included a mural on the                  
  exterior of the building, which was paid for by the Percent                  
  for Arts program.  He noted that the improvements to the                     
  building, as well as the neighborhood, were a result of the                  
  artwork.   Mr. Perman concluded that as long as there is                     
  money to build schools and other capital projects, the One                   
  Percent for Art program should continue to make these                        
  projects attractive.                                                         
                                                                               
  Number 644                                                                   
                                                                               
  VICE CHAIRMAN KOTT moved to the Fairbanks teleconference                     
  site.                                                                        
                                                                               
  Number 650                                                                   
                                                                               
  PAT PETRIVELLI, EXECUTIVE DIRECTOR, INSTITUTE OF ALASKA                      
  NATIVE ARTS, testified that without the Percent for Art                      
  program, the work of Alaska's artists would be limited to                    
  museums and private collectors.  She noted that artwork in                   
  schools and public places conveys a message to the children,                 
  emphasizing creativity and opportunity, while empty                          
  buildings send a very different message.  She encouraged the                 
  committee to maintain the current level of support for art                   
  programs throughout the state.                                               
                                                                               
  TAPE 94-11, SIDE A                                                           
  Number 000                                                                   
                                                                               
  Hearing the end of teleconference testimony, VICE CHAIRMAN                   
  KOTT called for a short recess at 9:33 a.m.                                  
                                                                               
  Number 018                                                                   
                                                                               
  VICE CHAIRMAN KOTT reconvened the meeting at 9:42 a.m.                       
  Public testimony was closed and HB 411 was opened for                        
  committee debate and discussion.                                             
                                                                               
  Number 031                                                                   
                                                                               
  REPRESENTATIVE B. DAVIS commented she would liked to have                    
  heard from children, particularly from some of the schools,                  
  and some of the experiences they have had with this program.                 
  As Chair of the Childrens' Caucus and a past School Board                    
  Member, REPRESENTATIVE B. DAVIS expressed her strong support                 
  for the Percent for Art program.                                             
                                                                               
  Number 049                                                                   
                                                                               
  REPRESENTATIVE ULMER added the testimony heard was very                      
  persuasive.  She related the importance of viewing art in                    
  the context of an economic development activity.  She noted                  
  that many of the artists that testified would not be able to                 
  survive unless they are paid for what they do.  She pointed                  
  out that other people in other professions are not expected                  
  to volunteer their work, so why should artists be expected                   
  to volunteer their work.  She commented that artists should                  
  be recognized as providing a very essential function in a                    
  public building; it is important to have art create the kind                 
  of environment that makes people feel good about where they                  
  are, that helps them do their job, and that helps students                   
  get inspired in the classroom.  REPRESENTATIVE ULMER                         
  commented it's part of a whole that makes this state a                       
  better state and makes Alaskans unique.  She further stated                  
  that tourists don't come here just to see the mountains, but                 
  also to learn about our culture; and one of the ways they do                 
  that is through the art they see in the public buildings.                    
  She reiterated that art is a very important part of our                      
  economy, as well as the quality of life, and expressed her                   
  opposition to moving HB 411 from committee.                                  
                                                                               
  Number 101                                                                   
                                                                               
  REPRESENTATIVE SANDERS believed he would vote to move HB 411                 
  out of committee, and felt the one percent would be better                   
  used not being mandated, but left to the discretion of                       
  administrators and the public for use on buildings, building                 
  maintenance, athletic programs or other programs that are in                 
  danger of being cut in the school system under the present                   
  economic condition.                                                          
                                                                               
  Number 117                                                                   
                                                                               
  REPRESENTATIVE VEZEY commented that his overall impression                   
  from the testimony presented was the testifiers believed if                  
  the mandated formula was to go away, the funding for art                     
  would go away.  He emphasized the purpose of HB 411 is to                    
  remove a mandated formula and to allow art projects to be                    
  funded as determined by the demands of the public.                           
  REPRESENTATIVE VEZEY related to the Greeks, who devoted a                    
  tremendous amount of their resources to art; however, they                   
  did not have a mandatory program.  Each project was done on                  
  a case by case basis.  He reiterated that "this bill is not                  
  a statement against art, it is really a statement that says                  
  the appropriating bodies and the administrators are going to                 
  have to address the situation of art on every case by case                   
  basis."                                                                      
                                                                               
  REPRESENTATIVE G. DAVIS appreciated REPRESENTATIVE VEZEY'S                   
  comments; however, he felt the testimony was very strong and                 
  in-depth and had probably changed his mind.  He stated while                 
  he would be interested in hearing a discussion of HB 411 on                  
  the House floor, he still would not want it to pass.                         
                                                                               
  VICE CHAIRMAN KOTT noted the importance of our culture and                   
  recognized the tourist aspect of art in Alaska.                              
                                                                               
  REPRESENTATIVE VEZEY moved HB 411 be passed out of committee                 
  with individual recommendations.                                             
                                                                               
  VICE CHAIRMAN KOTT asked if there were objections.                           
                                                                               
  REPRESENTATIVES ULMER and B. DAVIS objected.                                 
                                                                               
  VICE CHAIRMAN KOTT asked for explanation.                                    
                                                                               
  Number 216                                                                   
                                                                               
  REPRESENTATIVE ULMER explained all of the testimony given                    
  was opposed to HB 411 with exception of the sponsor,                         
  REPRESENTATIVE VEZEY.  She remarked if the people favor the                  
  mandate and don't want it changed, there is a good reason                    
  for the bill not to move forward.                                            
                                                                               
  Number 230                                                                   
                                                                               
  VICE CHAIRMAN KOTT recognized REPRESENTATIVE VEZEY'S motion.                 
  The committee secretary called the roll, and HB 411 passed                   
  out of the House State Affairs Committee with individual                     
  recommendations.  HB 411 moved to House Finance Committee.                   
                                                                               
  ANNOUNCEMENTS                                                                
                                                                               
  CHAIR VEZEY announced the State Affairs Subcommittee on the                  
  Alaska Railroad would meet Saturday, February 12, to review                  
  a draft report.                                                              
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  Hearing no more business before the committee, VICE CHAIRMAN                 
  KOTT adjourned the meeting at 9:52 a.m.                                      

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