Legislature(2017 - 2018)SENATE FINANCE 532
04/13/2017 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB78 | |
| HB137 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | HB 137 | TELECONFERENCED | |
| += | SB 78 | TELECONFERENCED | |
HOUSE BILL NO. 137
"An Act redesignating the Alaska State Council on the
Arts as a public corporation and governmental
instrumentality of the state; defining the powers and
duties of the Alaska State Council on the Arts;
providing exemptions from certain statutes for the
Alaska State Council on the Arts; making conforming
amendments; and providing for an effective date."
9:18:59 AM
Co-Chair MacKinnon read the bill title for HB 137 (see
above). She recalled that the committee heard the companion
bill, SB 66, on March 24, 2018. She invited the bill
sponsor to the table.
REPRESENTATIVE HARRIET DRUMMOND, SPONSOR, informed that HB
137 was sponsored by the House Education Committee. The
committee had unanimously consented to sponsoring the
legislation as a committee bill. It passed the House
unanimously. She read a portion of the sponsor statement:
House Bill 137 quasi-privatizes the Alaska State
Council on the Arts (ASCA) by restructuring it as a
public corporation in order to help the ASCA to
continue its work with self-employed Alaskan artists
and art businesses during these challenging fiscal
times. This new status will allow the ASCA to increase
its ability to leverage funds from non-governmental
contributors and better adapt to the shifting economic
climate.
Representative Drummond understood that the Senate Finance
Committee had already heard the Senate version of the bill
and would not go into detail about the bill unless the
chair directed her to.
Senator von Imhof asked if there was a difference in the
two bills.
KRISTEN KRANENDONK, STAFF, REPRESENTATIVE HARRIET DRUMMOND,
stated that the version before the committee was the same
as the Senate version. However, she thought the committee
had an amendment to offer.
Senator Olson noted Representative Drummond's mention of
quasi-privatization. He asked if she had looked at any
other places to receive funds aside from the private sector
allowed by the bill.
Representative Drummond deferred to the Chairman of the
State Council on the Arts.
9:22:00 AM
BENJAMIN BROWN, CHAIR, STATE COUNCIL ON THE ARTS, stated
that there were earned income opportunities and program
receipts such as the license plate program that passed in
the prior year. There would be a two-round competitive
process to select a license plate to celebrate the arts. He
opined the project would generate funds. He had also talked
with other legislators, including Senator Hughes, about
other ways of looking for earned income. He noted the
possibility of using the temporary art bank to provide art
to non-governmental offices for compensation. In addition
to asking for foundation funds, the council saw earned
income as a possibility going forward.
Senator Olson asked if Mr. Brown could discuss whether the
loan program was something the council planned on
participating in.
Mr. Brown did not know of any other state that had a public
art bank that used it as a service to the private sector.
However, it was certainly something the council was willing
to look at. He thought the problem was that the private
sector was not seeking to expend funds on decorating its
buildings in the current economic climate. He suggested
that it was possible in the future. He was hoping to use
the resources from the National Assembly of State Arts
Agency to see if there was an example from another state
Alaska could replicate.
Senator Olson asked about the program receipts and asked if
the council was competing with any other entities for the
program receipts.
Mr. Brown indicated that his late father had been
instrumental in founding the Children's Trust. He and his
spouse had Children's Trust license plates on both of their
cars. He would have to get art plates once they were
available, which he jokingly said would be a conflict. He
relayed that private galleries did not rent art, rather,
they sold it. He did not see any possible unfair
competition.
Senator Olson suggested Mr. Brown get a second car.
Mr. Brown replied, "Maybe a third car."
Co-Chair MacKinnon reminded members and testifiers to relay
their remarks through the chair. She asked Representative
Drummond if she had a statement on whether the trustees
should be confirmed. Alaska had several corporations with
trustees confirmed by the legislature in state statute. She
used the examples of Alaska Gasline Development Corporation
(AGDC) and the Alaska Housing Finance Corporation (AHFC).
Additionally, Alaska had some corporations whose trustees
were not confirmed such as the Alaska Permanent Fund
Corporation.
Representative Drummond did not have an opinion on the
matter. She thought there were 11 members on the council
each having an area of expertise defined in the bill. The
idea was for the council to best serve the needs of the
organization. Skills in the area of art were unique to that
business.
Co-Chair MacKinnon asked if Mr. Brown had an opinion on
whether the council members should be confirmed.
Mr. Brown relayed that the council had researched examples
from other states and jurisdictions. Some council members
were appointed by legislative bodies. In other states the
governor appointed members who were confirmed by the
legislature. The council concluded that the number of
council members and the way in which they were appointed
worked well for Alaska and did not need to be changed. He
thanked Co-Chair MacKinnon for the example of the Permanent
Fund Board of Trustees.
Co-Chair MacKinnon asked the committee if it was of like
mind that there did not need to be a confirmation at the
legislative level for the new corporation.
9:27:06 AM
Co-Chair MacKinnon relayed that public testimony had been
heard previously.
Co-Chair MacKinnon MOVED to ADOPT Amendment 1 ((copy on
file):
Page 10, lines 16-17
Delete "an Alaska veterans' preference that is
consistent with the Alaska veterans' preference
in AS 36.30.321(f)"
Insert "the preferences of an Alaska bidder and
an Alaska veteran that are consistent with the
preferences in AS 36.30.32 1"
Vice-Chair Bishop OJBJETED for discussion.
Co-Chair MacKinnon explained that there was a preference in
the previous version of the bill. The amendment would add
the Alaska bidder preference. She thought if there was
going to be a preference the others should be included.
9:27:47 AM
AT EASE
9:31:09 AM
RECONVENED
Co-Chair MacKinnon confirmed that the Alaska bidder
preference was combined with the Alaska Veteran's
preference consistent with AS 36.30.321. She wanted both
preferences listed to ensure that local artists could
compete with national and international artists. She would
provide the definition of "Alaska bidder preference" before
the bill went to the Senate floor for a vote.
Vice-Chair Bishop WITHDREW his OJBECTION. There being NO
further OBJECTION, Amendment 1 was ADOPTED.
Vice-Chair Bishop discussed the fiscal note. The fiscal
note by the Department of Education and Early Development
with an appropriation of commissions and boards and an
allocation of the Alaska State Council on the Arts had an
OMB component number of 192. It was essentially a zero
fiscal note. The fiscal note removed all state funding
within the state council. The funding was being transferred
to the new state council appropriation. The second fiscal
note, currently without an OMB component number, had an
appropriation and allocation of Alaska State Council on the
Arts. The annual cost was $2,768.5 million. The analysis
indicated that the positive impact of cost reductions could
not be determined until the agency restructured.
Efficiencies that were anticipated in operating costs could
not be quantified at present.
Co-Chair MacKinnon commented that the council received
funds and leveraged other funds from out of state from the
National Arts Endowment.
9:34:10 AM
AT EASE
9:34:22 AM
RECONVENED
Co-Chair MacKinnon conveyed the definition of an Alaska
bidder in at AS 36.30.990:
(2) "Alaska bidder" means a person who
(A) holds a current Alaska business license;
(B) submits a bid or proposal for goods, services,
or construction under the name appearing on the
person's current Alaska business license;
(C) has maintained a place of business in the state
staffed by the bidder or offeror or an employee of the
bidder or offeror for a period of six months
immediately preceding the date of the bid or proposal;
(D) is incorporated or qualified to do business
under the laws of the state, is a sole proprietorship
and the proprietor is a resident of the state, is a
limited liability company organized under AS 10.50 and
all members are residents of the state, or is a
partnership under former AS 32.05, AS 32.06, or AS
32.11 and all partners are residents of the state; and
(E) if a joint venture, is composed entirely of
ventures that qualify under (A) (D) of this
paragraph.
Senator Olson asked Co-Chair MacKinnon to repeat the
statute reference. Co-Chair MacKinnon repeated the statute
reference.
Vice-Chair Bishop MOVED to report SCS HB 137(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes.
There being NO OBJECTION, it was so ordered.
SCS HB 137 was REPORTED out of committee with a "do pass"
recommendation and with two previously published fiscal
impact notes: FN2 (EED) and FN3 (EED).
9:36:13 AM
AT EASE
9:38:11 AM
RECONVENED
Co-Chair MacKinnon discussed the schedule for the afternoon
meeting.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 78 Amendment 1 Bishop.pdf |
SFIN 4/13/2017 9:00:00 AM |
SB 78 |
| HB 137 Amendment 1 MacKinnon.pdf |
SFIN 4/13/2017 9:00:00 AM |
HB 137 |