Legislature(2017 - 2018)SENATE FINANCE 532

03/24/2017 09:00 AM FINANCE

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09:02:29 AM Start
09:03:46 AM SB66
09:56:32 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 66 ST. COUNCIL ON THE ARTS: PUBLIC CORP. TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
SENATE BILL NO. 66                                                                                                            
                                                                                                                                
     "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."                                                                          
                                                                                                                                
9:03:46 AM                                                                                                                    
                                                                                                                                
SENATOR SHELLEY HUGHES, SPONSOR, offered a sponsor                                                                              
statement:                                                                                                                      
                                                                                                                                
     Senate  Bill  66   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.  This   effort  responds  to   the  widespread                                                                    
     interest in governmental entities,  as much as they are                                                                    
     able, to at least  partially privatize their operations                                                                    
     and increase their operating efficiency.                                                                                   
                                                                                                                                
     Under SB 66, ASCA will  remain within the Department of                                                                    
     Education  & Early  Development.  Changes  to the  ASCA                                                                    
     include  exemption  from  the State  Procurement  Code,                                                                    
     while   still   providing   for   formal,   appropriate                                                                    
     procurement  protocols  for  ASCA.  Restructuring  will                                                                    
     keep  ASCA's  operating   budget  under  the  Executive                                                                    
     Budget  Act for  openness and  transparency. Transition                                                                    
     language   in  SB   66  will   allow  ASCA's   advisory                                                                    
     committees, public processes,  and public participation                                                                    
     to  remain   in  place  as  ASCA   administers  grants,                                                                    
     programs, and services.                                                                                                    
                                                                                                                                
     As the  State of Alaska  evolves and grows  in response                                                                    
     to fiscal challenges,  ASCA wants to ensure  that it is                                                                    
     in a  position to  expand its  important work  to serve                                                                    
     all  Alaskans. Private  funders across  the nation  are                                                                    
     increasingly approaching ASCA to  offer support for the                                                                    
     work   of  the   Council,   and  carefully   considered                                                                    
     restructuring efforts  have the potential to  allow the                                                                    
     Council  to   advance  the  opportunity  to   grow  the                                                                    
     development  base  of  ASCA,  as  well  as  reduce  its                                                                    
     reliance  on State  funds, including  in its  work with                                                                    
     students in Alaska's schools.                                                                                              
                                                                                                                                
     SB  66 will  improve the  ability of  ASCA to  leverage                                                                    
     non-state funding and represents  a real opportunity to                                                                    
     realign  ASCA  to  better perform  in  the  environment                                                                    
     which exists in Alaska today.                                                                                              
                                                                                                                                
9:06:49 AM                                                                                                                    
                                                                                                                                
JOSHUA BANKS, STAFF, SENATOR SHELLEY HUGHES, discussed the                                                                      
Sectional Analysis (copy on file):                                                                                              
                                                                                                                                
     Section 1  (Pages 1-4): Amends AS  39.25.110 concerning                                                                  
     exempt  state employees  to add  all  employees of  the                                                                    
     Alaska State  Council on the  Arts (ASCA),  thus making                                                                    
     employees of ASCA exempt from the State Personnel Act.                                                                     
                                                                                                                                
     Section 2  (Pages 5-7): Adds artists'  submissions made                                                                  
     in response to an  inquiry or solicitation initiated by                                                                    
     the Alaska  State Council on  the Arts, to the  list of                                                                    
     records that  are exempt  from public  inspection under                                                                    
     AS 40.25.120.                                                                                                              
                                                                                                                                
     Section 3 (Page 7):  Repeals and re-enacts AS 44.27.040                                                                  
     regarding  the  creation  of  ASCA,  to  establish  the                                                                    
     Council   as   a   separate  and   independent   public                                                                    
     corporation  of   the  state   of  Alaska   within  the                                                                    
     Department of Education and Early Development (DEED).                                                                      
                                                                                                                                
     Section 4 (Page 7): Amends  AS 44.27.041 to charge ASCA                                                                  
     to be governed by an  11 member board of trustees, adds                                                                    
     literary arts as a field  represented within the board,                                                                    
     and a  member's expertise,  rather than interest,  as a                                                                    
     factor for consideration for board membership.                                                                             
                                                                                                                                
     Section 5 (Page 7): Amends  AS 44.27.042 to replace the                                                                  
     term "members"  with the term "trustees"  and "council"                                                                    
     with "board of trustees".                                                                                                  
                                                                                                                                
     Section 6 (Page 8): Amends  AS 44.27.043 to replace the                                                                  
     term "member" with "trustee".                                                                                              
                                                                                                                                
     Section 7  (Page 8): Replaces  the term  "members" with                                                                  
     the  term  "trustees"  in  AS  44.27.044  and  replaces                                                                    
     language that  entitles trustees  to be  reimbursed for                                                                    
     travel expenses  at the same  rate of members  of state                                                                    
     boards under AS 39.20.180.                                                                                                 
                                                                                                                                
     Section 8 (Page 8): Amends  AS 44.27.045 to use gender-                                                                  
     neutral terms for board members.                                                                                           
                                                                                                                                
     Section 9  (Page 8-9): Amends  AS 44.27.050  to require                                                                  
     the  council  to encourage  literary  arts  as well  as                                                                    
     other  disciplines,  invest   in  arts  throughout  the                                                                    
     state, and conduct research  into artistic and cultural                                                                    
     activities throughout the state.                                                                                           
                                                                                                                                
     Section 10 (Page 9): Amends  AS 44.27.052(a) to replace                                                                  
     "educational"  objectives  with "strategic"  objectives                                                                    
     as  it  relates to  the  council's  ability enter  into                                                                    
     contracts   and   accept  gifts,   contributions,   and                                                                    
     bequests.                                                                                                                  
                                                                                                                                
     Section 11 (Page 9-10): Amends  AS 44.27.054 to replace                                                                  
     language with  the proper terms "chair"  and "trustees"                                                                    
     previously   established   and   makes   a   conforming                                                                    
     amendment to Section 1.                                                                                                    
                                                                                                                                
     Section 12  (Page 10): Adds  a new section to  AS 44.27                                                                  
     detailing the  administration of  affairs of  the board                                                                    
     of  trustees. The  board of  trustees shall  manage the                                                                    
     assets  of  the  council, establish  and  amend  bylaws                                                                    
     governing the  business of the corporation,  and employ                                                                    
     an executive  director to supervise  the administration                                                                    
     of ASCA. This section also  exempts ASCA from the State                                                                    
     Procurement  Code (AS  36.30), instructs  the board  of                                                                    
     trustees to  establish procedures for  procurement, and                                                                    
     requires   consistency   with   the   Alaska   Veterans                                                                    
     preference   established   in   AS   36.30.32(f).   The                                                                    
     operating budget  of ASCA is subject  to the provisions                                                                    
    established in the Executive Budget Act (AS 37.07).                                                                         
                                                                                                                                
     Section 13  (Page 10): Amends  AS 44.27.058  to require                                                                  
     that ASCA comply with the  20 U.S.C 951 - 960 (National                                                                    
     Foundation on the Arts and  the Humanities Act of 1965)                                                                    
     as it relates to the  receipt and disbursement of funds                                                                    
     from the National Endowment for the Arts.                                                                                  
                                                                                                                                
     Section  14 (Page  10-11): Amends  AS 44.27.060  to add                                                                  
     new subsections  (e) and (f)  regarding confidentiality                                                                    
     of artist  submissions and adds a  provision for public                                                                    
     disclosure to submissions when the  artist is awarded a                                                                    
     commission   for   said  submission.   However,   under                                                                    
     subsection (g),  subsections (e)  and (f) do  not apply                                                                    
     if the submission was created  as a work for hire under                                                                    
     17 U.S.C.  101 or  if the  artist's copyright  has been                                                                    
     transferred under 17 U.S.C. 204.                                                                                           
                                                                                                                                
     Section  15   (Page  11):  Amends   AS  44.27   to  add                                                                  
    definitions for "board of trustees" and "council".                                                                          
                                                                                                                                
     Section  16 (Page  11-12): Creates  transition language                                                                  
     for  ASCA to  allow council  members to  remain on  the                                                                    
     board  of trustees  until their  term  is over,  allows                                                                    
     current   employees  to   remain   with  ASCA,   allows                                                                    
     regulations,   contracts,   rights,  liabilities,   and                                                                    
     obligations  created under  current  law  to remain  in                                                                    
     effect,  and   allows  ASCA  to  retain   all  records,                                                                    
     equipment, appropriations, and other property.                                                                             
                                                                                                                                
     Section  17 (Page  12): Creates  an effective  date for                                                                  
     this legislation as July 1, 2017.                                                                                          
                                                                                                                                
9:12:56 AM                                                                                                                    
                                                                                                                                
Senator Hughes  noted Page 10, section  13, which referenced                                                                    
the National Foundation  and the Arts and  Humanities Act of                                                                    
1965. She  stated that the section  was unnecessary, because                                                                    
the compliance  was required regardless of  the legislation.                                                                    
She  remarked  that the  reason  for  the larger  number  of                                                                    
members  was to  create ambassadors  from across  the state.                                                                    
She stated  that there could  be "regional  ambassadors" who                                                                    
could represent the ASCA.                                                                                                       
                                                                                                                                
Co-Chair   MacKinnon  wondered   whether  the   creation  of                                                                    
trustees required a different  appointment process than that                                                                    
of the current board.                                                                                                           
                                                                                                                                
Mr. Banks deferred to Mr. Brown.                                                                                                
                                                                                                                                
Senator Dunleavy  wondered whether there  was a time  in the                                                                    
future when the corporation could be privatized completely.                                                                     
                                                                                                                                
Senator Hughes  replied that  Mr. Brown  could speak  to the                                                                    
question.  She  shared  that  state  funding  was  currently                                                                    
required to maintain eligibility for federal funding.                                                                           
                                                                                                                                
Senator  Dunleavy  wondered  whether   per  diem  for  board                                                                    
members  had been  removed  and wondered  how  per diem  was                                                                    
addressed in the bill.                                                                                                          
                                                                                                                                
Mr. Banks  directed committee attention to  Section 7, which                                                                    
contained language consistent with  the restructuring of the                                                                    
council to a corporation.                                                                                                       
                                                                                                                                
9:17:09 AM                                                                                                                    
                                                                                                                                
BEN  BROWN,  CHAIR,  ALASKA  STATE   COUNCIL  ON  THE  ARTS,                                                                    
responded   to  Senator   Dunleavy's  question   about  full                                                                    
privatization,  and stated  that  it would  not be  possible                                                                    
under  current  federal  law.  He  said  that  the  National                                                                    
Foundation  on the  Arts and  Humanities  Act required  that                                                                    
recipients of National Endowment of  the Arts funds (NEA) be                                                                    
state  agencies, and  that a  state  appropriation would  be                                                                    
made to match  each dollar the amount set out  in the three-                                                                    
year partnership  agreement. He stated that  the board would                                                                    
be happy to explore ways  to augment earned income, but that                                                                    
they would  not be able to  match at 50 percent.  He relayed                                                                    
that  the current  appropriation was  approximately $700,000                                                                    
and would not  increase. He explained that  the arts license                                                                    
plate  program  that  was  soon   to  be  established  would                                                                    
generate some  income. He  related that  there was  also the                                                                    
possibility of eventually raising  funds through art rentals                                                                    
through the Alaska Contemporary  Art Bank. He expounded that                                                                    
the  possibilities  for  raising funds  would  be  furtively                                                                    
explored.  He   explained  that   the  bill   contained  new                                                                    
conforming  language pertaining  to per  diem terms  but was                                                                    
not a change from the current practice.                                                                                         
                                                                                                                                
9:19:30 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon   reiterated  her  question   about  how                                                                    
current  board  members  were  appointed,  and  whether  the                                                                    
process changed with the use of the word "trustee."                                                                             
                                                                                                                                
Mr.  Brown   replied  that  the  nomenclature   change  from                                                                    
"council"  to "trustee"  was necessary  to reflect  the fact                                                                    
that  the council  would become  a  board of  trustees of  a                                                                    
corporation,  with the  fiduciary  duties  attached to  that                                                                    
role. He  furthered that the selection  process would remain                                                                    
the same going forward.                                                                                                         
                                                                                                                                
9:20:10 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon wondered whether  the list of boards came                                                                    
before the legislature for approval.                                                                                            
                                                                                                                                
Mr. Brown  replied no. He  said that council  members served                                                                    
at the pleasure of the governor.                                                                                                
                                                                                                                                
9:20:25 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  felt that the  legislature would  want a                                                                    
voice in confirming trustees.                                                                                                   
                                                                                                                                
Mr.   Brown   replied   that  the   issue   of   legislative                                                                    
confirmation had been carefully  examined by the council. He                                                                    
relayed that the council had  decided that things had worked                                                                    
well without  legislative confirmation. He felt  that having                                                                    
11  members, rather  than 9,  provided more  opportunity for                                                                    
the governor  to find people  from a variety  of communities                                                                    
across the state.                                                                                                               
                                                                                                                                
9:22:26 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon queried  the  attendance  record of  the                                                                    
council  and  wondered  if  there   had  been  any  problems                                                                    
establishing quorums.                                                                                                           
                                                                                                                                
Mr. Brown replied that he  had only ever missed one meeting.                                                                    
He could not  speak to a single council member  who had been                                                                    
problematic.                                                                                                                    
                                                                                                                                
9:23:04 AM                                                                                                                    
                                                                                                                                
Co-Chair   MacKinnon  restated   her  question   surrounding                                                                    
whether  there had  been trouble  to establish  a quorum  at                                                                    
board meetings.                                                                                                                 
                                                                                                                                
Mr. Brown replied in the negative.                                                                                              
                                                                                                                                
9:23:15 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Bishop wondered  whether the  trustees would  be                                                                    
trained in a different manner from the current process.                                                                         
                                                                                                                                
Mr. Brown  replied that  the trustees  would most  likely be                                                                    
given primer on  the fiduciary duties of being  a trustee on                                                                    
the  board of  a  public corporation.  He  asserted that  he                                                                    
would personally                                                                                                                
                                                                                                                                
9:24:21 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon solicited comments on the legislation.                                                                       
                                                                                                                                
9:24:30 AM                                                                                                                    
                                                                                                                                
Mr.  Brown expressed  appreciation  for the  sponsor of  the                                                                    
legislation and noted the companion  bill in the other body.                                                                    
He  shared  that art  councils  in  other jurisdictions  had                                                                    
moved to  commerce departments in  order to  become economic                                                                    
development  agencies. He  believed that  the council  had a                                                                    
good working  relationship with the Department  of Education                                                                    
and  Early  Childhood  Development,   and  he  stressed  the                                                                    
importance of assuring that Alaska's  students had access to                                                                    
the arts. He relayed  that educational opportunities offered                                                                    
by  the council  were what  had drawn  some of  the greatest                                                                    
interest   from  private   funders.  He   stated  that   the                                                                    
procurement code  had been  one of the  main drivers  of the                                                                    
legislation  because   it  had  hamstrung  the   council  in                                                                    
operating  efficiently  in  spending  foundation  money  for                                                                    
beneficial  programs.   He  provided  the  example   of  the                                                                    
difficulties the  Children's Trust had faced  when operating                                                                    
as a  line state  agency before  specific reforms  were done                                                                    
that enable it to do a  better job expending money on behalf                                                                    
of  its  intended  purpose.  He thought  that  it  would  be                                                                    
foolish to downsize the members of  the council for 11 to 9,                                                                    
when  staff had  decreased from  6.5  to 4.5  over the  past                                                                    
several years.  He said  that 11  members were  necessary as                                                                    
working  trustees  and  council   members  to  maximize  the                                                                    
potential  impact  that  the  agency had  on  the  lives  of                                                                    
Alaskans. He said that he  had been in contact with Alaska's                                                                    
federal representatives  concerning the  continued existence                                                                    
of  the National  Endowment for  the Arts  (NEA). He  shared                                                                    
that the  leveragability of federal  dollars would  serve to                                                                    
help prevent  the elimination of the  National Endowment for                                                                    
the Arts.  He noted that  the administration of  the federal                                                                    
level was unpredictable, but he  felt confident that the NEA                                                                    
would continue to  exist and would remain a  partner for the                                                                    
council into the future.                                                                                                        
                                                                                                                                
9:29:33 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman asked  whether  appointment  to the  board                                                                    
were staggered.                                                                                                                 
                                                                                                                                
Mr. Brown  replied that the appointments  were staggered and                                                                    
explained that there were 4  positions up for appointment in                                                                    
2017. He said that 3, 3, 3,  and 2, was the general order of                                                                    
rotation.                                                                                                                       
                                                                                                                                
9:30:32 AM                                                                                                                    
                                                                                                                                
Vice-Chair Bishop  understood that  Mr. Brown  was referring                                                                    
to the National Endowment for the Arts when he said "NEA".                                                                      
                                                                                                                                
Mr. Brown replied in the affirmative.                                                                                           
                                                                                                                                
9:31:08 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon probed  how the  1 percent  for art  was                                                                    
being  utilized in  Alaska. She  expressed concern  that the                                                                    
state was paying  for foreign artists to bring  their art to                                                                    
Alaska.                                                                                                                         
                                                                                                                                
Mr. Brown  replied that  when there  was a  capital project,                                                                    
the percent for art if 1  percent of the cost of the project                                                                    
be set  aside for artistic  enhancements to the  project. He                                                                    
relayed that  the role  that the  council provided  were the                                                                    
administrative expertise to convene  a panel that would help                                                                    
the agency that  was building whatever was  being built come                                                                    
up  with  a  merit-based  process  to put  out  to  bid  the                                                                    
opportunities for the percent  for art project. He continued                                                                    
that  then people  would make  submissions, which  the panel                                                                    
would review  and then make  a recommendation. He  felt that                                                                    
it could be  nice to say that only Alaskans  could apply for                                                                    
the bids, but he thought that  action would run afoul of the                                                                    
Privileges  and  Immunities  Clause. He  stressed  that  the                                                                    
council did  not aggressively solicit out-of-state.  He said                                                                    
that ultimately the panel would  decide which artist was the                                                                    
best based  on merit.   He concluded that there  were limits                                                                    
of  what the  agency  could do  to  promote Alaskan  artists                                                                    
only,  but that  promoting  the possibilities  as widely  as                                                                    
possible in the  state would lead to a  higher proportion of                                                                    
Alaskans getting the bids successfully.                                                                                         
                                                                                                                                
9:35:51 AM                                                                                                                    
                                                                                                                                
Senator von  Imhof cited a  letter from  Andrea Noble-Pelant                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     SB66 provides flexibility for  the Alaska State Council                                                                    
     on the  Arts to manage  fast flow projects in  a timely                                                                    
     manner and  to increase  our work across  sectors, such                                                                    
     as   health,   economic   development,   tourism,   and                                                                    
     transportation.                                                                                                            
                                                                                                                                
Senator von Imhof asked Mr. Brown to clarify the language.                                                                      
                                                                                                                                
Mr.  Brown replied  that the  procurement  code created  red                                                                    
tape for  the council. He  offered the example  of "Creative                                                                    
Forces" a  new initiative  of the  NEA, in  conjunction with                                                                    
the Department  of Defense, and  elaborated on the  way that                                                                    
the  procurement code  complicated  the flow  of funding  to                                                                    
programs.                                                                                                                       
                                                                                                                                
9:38:41 AM                                                                                                                    
                                                                                                                                
Vice-Chair Bishop noted  that Page 10, section  12, spoke to                                                                    
the dealing  outside the state procurement  code for veteran                                                                    
issues.                                                                                                                         
                                                                                                                                
Mr. Brown replied  that the language had been  added to make                                                                    
sure  that  if  the  council   was  exempt  from  the  state                                                                    
procurement  code, which  had a  veterans' preference,  that                                                                    
the council's  self-adopted procedures  would also  have the                                                                    
preference.  He  elaborated on  the  goals  of the  Creative                                                                    
Forces program to  meet the acute needs of  veterans to heal                                                                    
and be productive  members for society; he  stressed that it                                                                    
would be  beneficial to have  veterans on both sides  of the                                                                    
transaction.                                                                                                                    
                                                                                                                                
9:40:02 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon asked  whether the  bill had  an Alaskan                                                                    
bidder preference.                                                                                                              
                                                                                                                                
Mr. Brown replied  that he could see no good  reason why the                                                                    
provision could not be written into the legislation.                                                                            
                                                                                                                                
9:40:55 AM                                                                                                                    
                                                                                                                                
Senator Micciche apologized for being late to the meeting.                                                                      
                                                                                                                                
9:41:32 AM                                                                                                                    
                                                                                                                                
Senator  von  Imhof  announced  that she  sat  on  both  the                                                                    
Rasmussen  Foundation and  Atwood  Foundation boards,  which                                                                    
had provided financial  support to the council  in the past.                                                                    
She thought  that if money  could be leverages  more quickly                                                                    
and with more flexibility that the state would benefit.                                                                         
9:42:38 AM                                                                                                                    
                                                                                                                                
ALICE BIOFF, COUNCIL MEMBER, ALASKA STATE COUNCIL ON THE                                                                        
ARTS, NOME (via teleconference), spoke in support of the                                                                        
legislation. She offered prepared testimony:                                                                                    
                                                                                                                                
     My  name  is Alice  Bioff,  resident  of Nome,  Alaska,                                                                    
     currently employed  at Kawerak,  Inc. and  Alaska State                                                                    
     Council on  the Arts  (ASCA) council member.  Thank you                                                                    
     all for the opportunity to  testify in support of SB66.                                                                    
     I  am  testifying  today  in my  capacity  as  an  ASCA                                                                    
     council  member. I  am a  tribal member  of the  Native                                                                    
     Village of  Koyuk, and  grew up there  and in  Nome. My                                                                    
     family and I have lived in  Nome for the last 17 years.                                                                    
     For  much  of  that  time,  I  have  been  employed  by                                                                    
     Kawerak,   Inc.,   the   regional   Native   non-profit                                                                    
     consortium of  tribes for the Bering  Strait region, as                                                                    
     a Business Planning Specialist.                                                                                            
                                                                                                                                
     Through  our work  here at  Kawerak, I  am honored  and                                                                    
     privileged  to work  with  artist entrepreneurs  within                                                                    
     our   communities.   We    provide   direct   technical                                                                    
     assistance  offering  tools  and  resources  to  assist                                                                    
     artists  to  continue  their  work  so  that  they  can                                                                    
     sustain   themselves,   their    families   and   their                                                                    
     communities. It is  through this work that  I have seen                                                                    
     firsthand how  important it is  for theses  artists who                                                                    
     live  in  communities  with   very  few  resources  and                                                                    
     infrastructure,   to   grow  their   business   through                                                                    
     opportunities  such  as  those  that  become  available                                                                    
     through ASCA and others.                                                                                                   
                                                                                                                                
     Artist Entrepreneurs  are economic  development drivers                                                                    
     in their  communities and the  Alaska State  Council on                                                                    
     the Arts supports these  communities through their work                                                                    
     and  advocacy. With  their partnerships,  resources and                                                                    
     programs,   we  see   a   bright   future  and   growth                                                                    
     opportunity to support all artists across the State.                                                                       
                                                                                                                                
     Through  the  restructuring  initiative,  we  see  ASCA                                                                    
     services  continued  and  strengthened to  support  the                                                                    
     artists through  improved ability  to react  to funding                                                                    
     opportunities   and  better   represent,  support   and                                                                    
     advance the artists by offering  the tools and services                                                                    
     needed   to  strengthen   and   already  existing   and                                                                    
     important  economy. This  is critical  to strengthening                                                                    
     and   sustaining   our   rural  communities   in   this                                                                    
     financially challenging time.                                                                                              
                                                                                                                                
     SB66 streamlines  the process ASCA will  use to present                                                                    
     opportunities  to artists  all  over Alaska,  including                                                                    
     those artists  we have  worked with  for years  here in                                                                    
     the  Bering Strait  region. From  my perspective,  this                                                                    
     will  be  a great  benefit  for  all artists  including                                                                    
     those in rural Alaska.                                                                                                     
                                                                                                                                
Ms. Bioff  recommended against changing the  council from 11                                                                    
to 9  members. She  believed that  minimizing the  number of                                                                    
trustees would be detrimental to  the overall functioning of                                                                    
the board.                                                                                                                      
                                                                                                                                
9:47:15 AM                                                                                                                    
                                                                                                                                
ANDREA  NOBLE-PELANT,   EXECUTIVE  DIRECTOR,   ALASKA  STATE                                                                    
COUNCIL ON  THE ARTS, ANCHORAGE (via  teleconference), spoke                                                                    
in support of  the bill. She spoke to the  1 percent for art                                                                    
program and elaborated on the  evolution of the program. She                                                                    
read from a prepared statement:                                                                                                 
                                                                                                                                
     Thank  you  all  for  the  opportunity  to  testify  in                                                                    
     support  of  SB66.  My  name  is  Andrea  Noble-Pelant,                                                                    
     Executive Director  of the Alaska State  Council on the                                                                    
     Arts (ASCA). I  have worked for this  agency for eleven                                                                    
     years and in the arts sector for almost thirty years.                                                                      
                                                                                                                                
     The Alaska State  Council on the Arts, now  in its 51st                                                                    
     year, is  ready for  organizational change.  The timing                                                                    
     of SB66  is opportune  as Alaska's  creative industries                                                                    
     are  growing   due  to  targeted  public   and  private                                                                    
     investment  in our  cultural infrastructure  during the                                                                    
     past ten years.  As a result, the  Alaska State Council                                                                    
     on  the Arts  has experienced  rapid growth  in grants,                                                                    
     programs and public/private partnerships.                                                                                  
                                                                                                                                
     We  wish   to  continue  this  effort,   and  with  the                                                                    
     provisions  in SB66,  the Alaska  State Council  on the                                                                    
     Arts  is poised  to continue  grant-making as  a public                                                                    
     corporation  that will  also support  new and  existing                                                                    
     programs to  reach more Alaskans with  increased impact                                                                    
     and efficiency.                                                                                                            
                                                                                                                                
     Our staff  works on  local, national  and international                                                                    
     levels  to oversee  projects, initiatives  and policies                                                                    
     that  build capacity  for  arts organizations,  provide                                                                    
     practical  professional  development and  opportunities                                                                    
     for  individual artists,  and  boost students'  chances                                                                    
     for success  through arts  in education.  SB66 provides                                                                    
     flexibility for  the Alaska State  Council on  the Arts                                                                    
     to manage fast flow projects  in a timely manner and to                                                                    
     increase  our  work  across sectors,  such  as  health,                                                                    
    economic development, tourism, and transportation.                                                                          
                                                                                                                                
     In  the past  ten  years, our  mission  has evolved  to                                                                    
     expand  access to  arts experiences.  Our programs  now                                                                    
     reach military  service members and their  families who                                                                    
     experience PTSD,  incarcerated individuals who  plan to                                                                    
     produce  and sell  their  artwork  after release,  pre-                                                                    
     service  teachers   from  rural   communities,  Alaskan                                                                    
     children  and youth  who  want  opportunities to  learn                                                                    
     through  arts  and culture,  and  parents  who want  to                                                                    
     raise their families  in safe, sustainable communities.                                                                    
     We have  been very fortunate that  partners with mutual                                                                    
     goals have  approached us with these  initiatives. SB66                                                                    
     allows  for  responsive  project  implementation  which                                                                    
     affects our performance and the  ability for the Alaska                                                                    
     State Council  on the  Arts to  seek and  secure future                                                                    
     private funding.                                                                                                           
                                                                                                                                
     Keeping  with our  mission, revenue  from funders  goes                                                                    
     back to  Alaskan residents  and communities  as grants,                                                                    
     programs and  resources. Longstanding  partnerships are                                                                    
     in place with The  Rasmuson Foundation, The Alaska Arts                                                                    
     and Culture  Foundation, The Atwood Foundation  and The                                                                    
     National Endowment  for the Arts. New  partners include                                                                    
     Margaret   A.   Cargill    Philanthropies,   The   CIRI                                                                    
     Foundation,  and  Sealaska  Heritage  Institute.  Other                                                                    
     partners include  the Alaska  Humanities Forum  and The                                                                    
     Western States  Arts Federation  and Americans  for the                                                                    
     Arts  who  contribute  in-kind support,  resources  and                                                                    
     funding.                                                                                                                   
                                                                                                                                
     Thank you.                                                                                                                 
                                                                                                                                
9:54:56 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon solicited further public testimony.                                                                          
                                                                                                                                
9:55:15 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
9:55:39 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon announced that the fiscal notes would be                                                                     
discussed at a later date, and amendments were due the                                                                          
following Monday by 5pm. She discussed housekeeping.                                                                            
                                                                                                                                
SB 66 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
SB 66 ASCA Executive Director Letter of Support.Senate Finance.pdf SFIN 3/24/2017 9:00:00 AM
SB 66