Legislature(2021 - 2022)BUTROVICH 205

03/09/2021 03:30 PM Senate STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 23 INITIATIVE SEVERABILITY TELECONFERENCED
Heard & Held
*+ SB 71 COUNCIL ON ARTS: PLATES & MANAGE ART TELECONFERENCED
Heard & Held
*+ SB 76 ABANDONED VEHICLES; PRIVATE PROPERTY TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
**Streamed live on AKL.tv**
           SB 71-COUNCIL ON ARTS: PLATES & MANAGE ART                                                                       
                                                                                                                                
3:33:06 PM                                                                                                                    
CHAIR SHOWER  announced the consideration  of SENATE BILL  NO. 71                                                               
"An  Act   relating  to   special  request   registration  plates                                                               
celebrating  the arts;  relating to  artwork in  public buildings                                                               
and facilities; relating  to the management of  artwork under the                                                               
art in public  places fund; relating to the powers  and duties of                                                               
the  Alaska State  Council  on  the Arts;  and  providing for  an                                                               
effective date."                                                                                                                
                                                                                                                                
He noted who was available to answer questions.                                                                                 
                                                                                                                                
3:33:41 PM                                                                                                                    
SENATOR GARY  STEVENS, Alaska State Legislature,  Juneau, Alaska,                                                               
sponsor of  SB 71, stated  the Alaska  State Council on  the Arts                                                               
("Arts   Council")   requested   this  legislation   because   of                                                               
complications  with  their  2019   budget  due  to  COVID-19.  He                                                               
explained  that  the  bill  amends  the  existing  license  plate                                                               
program  and provides  the Arts  Council with  additional revenue                                                               
from supporters of the program.  He deferred further introduction                                                               
to Mr. Lamkin.                                                                                                                  
                                                                                                                                
3:34:38 PM                                                                                                                    
TIM   LAMKIN,  Staff,   Senator   Gary   Stevens,  Alaska   State                                                               
Legislature, Juneau, Alaska, stated that  SB 71 allows the DMV to                                                               
collect an additional fee for  the artistic license plate and use                                                               
the  money for  the Arts  Council's budget.  The intention  is to                                                               
reduce  the agency's  dependency on  the general  fund. The  bill                                                               
acknowledges  that  the  attorney   general  is  typically  legal                                                               
counsel for  the Arts  Council but  it also  provides a  means to                                                               
engage  outside   counsel  as   needed,  consistent   with  other                                                               
agencies. Importantly, the bill  holds the Arts Council's private                                                               
fundraising  activities harmless  from  vetoes  of the  Executive                                                               
Budget Act.                                                                                                                     
                                                                                                                                
MR. LAMKIN  stated that SB  71 also  removes the mandate  for the                                                               
Arts  Council   to  hold  the   artistic  license   plate  design                                                               
competition  every four  years and  makes  it discretionary.  The                                                               
Arts  Council  is also  able  to  compensate the  winning  artist                                                               
modestly for his/her artwork. Furthermore,  the bill adds clarity                                                               
to the  Arts Council's authority  to not  only manage the  art it                                                               
has  commissioned  and paid  for,  but  also to  decommission  or                                                               
retire that art when the time comes.                                                                                            
                                                                                                                                
MR. LAMKIN noted  the chair of the Arts Council  was available as                                                               
invited testimony and to answer questions.                                                                                      
                                                                                                                                
CHAIR SHOWER recognized Benjamin Brown.                                                                                         
                                                                                                                                
3:37:18 PM                                                                                                                    
BENJAMIN BROWN, Chair, Alaska State  Council on the Arts, Juneau,                                                               
Alaska, began his testimony on  SB 71 recounting his long service                                                               
volunteering   with  the   Arts   Council,   starting  with   his                                                               
appointment by then Governor Frank Murkowski to be vice chair.                                                                  
                                                                                                                                
MR. BROWN characterized SB 71  as simple but important because it                                                               
allows  the Arts  Council  to carry  more of  its  own weight  by                                                               
monetizing the Alaska Artistic License  Plate Program. He related                                                               
that the Arts Council felt  that, particularly in response to the                                                               
state's  ongoing fiscal  crisis, it  made sense  to get  a modest                                                               
amount  of  money from  the  extremely  popular artistic  license                                                               
plates  that  currently  have  no  surcharge.  This  reduces  the                                                               
agency's dependence on undesignated general funds.                                                                              
                                                                                                                                
3:39:15 PM                                                                                                                    
MR.  BROWN  reminded the  committee  of  the federal  requirement                                                               
under the  National Arts and  Humanities Act. Every state  with a                                                               
state  arts agency  must  provide  a state  match  to qualify  to                                                               
receive money  from the National  Endowment for the Arts.  In the                                                               
current budget,  slightly less  than $700,000  from the  State of                                                               
Alaska through  the legislature will  trigger a little  more than                                                               
that  from the  National  Endowment for  the  Arts. Arts  Council                                                               
partners then  more than  match those  funds. He  said he  is not                                                               
aware of any other agency in  state government that offers such a                                                               
valued proposition.  The Arts Council  is very proud of  that and                                                               
wants to  continue on that trajectory,  he said. SB 71  will help                                                               
in that effort.                                                                                                                 
                                                                                                                                
3:40:15 PM                                                                                                                    
MR. BROWN  explained that the  issue of legal counsel  arose with                                                               
the governor's veto  of the Arts Council budget in  2019. He said                                                               
the  legal  advice the  agency  was  getting from  the  assistant                                                               
attorney general  was not harmonious  with its needs.  He related                                                               
that the  administration is  amenable to  the exemption  from the                                                               
Executive  Branch  Budget Act  for  the  Arts Council  foundation                                                               
partner money because those are  neither state nor federal funds.                                                               
He recalled  that it was  Mr. Lamkin's  idea to make  the license                                                               
plate  competition non-mandatory.  He  noted that  it would  have                                                               
been  impossible to  meet  that mandate  if  the competition  had                                                               
cycled  when the  veto occurred.  He noted  that Mr.  Lamkin also                                                               
suggested the  provision to  require the  Arts Council  to assume                                                               
the duty  of managing  and adopting  policies and  procedures for                                                               
the relocation,  disposition, and exchange  of works of  art from                                                               
the  art in  public  places fund.  He said  this  is a  necessary                                                               
change  because  nothing  lasts  forever.  It  is  better  to  be                                                               
proactive in the management and  disposal of the public assets in                                                               
a manner that  respects the artist and the  public investment, he                                                               
said.                                                                                                                           
                                                                                                                                
CHAIR  SHOWER found  no questions  and asked  Mr. Lamkin  to walk                                                               
through the sectional analysis.                                                                                                 
                                                                                                                                
3:43:30 PM                                                                                                                    
MR. LAMKIN presented the sectional analysis for SB 71.                                                                          
                                                                                                                                
     Sec. 1: AS 28.10.421(a), relating to fees paid to the                                                                    
               Division of Motor  Vehicles (DMV) for vehicle                                                                    
               license  plates,  allows  for  an  additional                                                                    
               fee, set by Alaska  State Council on the Arts                                                                    
               (ASCA)  regulation, and  not  to exceed  $50,                                                                    
               when a  person chooses  a new  or replacement                                                                    
               ASCA artistic plate.                                                                                             
                                                                                                                                
               The  subsection  also   provides  that  these                                                                    
               additional   fees  will   be  accounted   for                                                                    
               separately  and that  the  total amount  that                                                                    
               exceeds  the costs  of  the Artistic  License                                                                    
               Plate  Program may  be  appropriated to  fund                                                                    
               the ASCA.                                                                                                        
3:44:30 PM                                                                                                                    
     Sec. 2: AS 35.27.020(h), relating to the Art Works in                                                                    
                Public  Buildings  and  Facilities  program,                                                                    
                adds  a new  subsection  to  specify  ASCA's                                                                    
                management responsibility for public artwork                                                                    
                created under  the program,  to include  the                                                                    
                management of  the relocation,  disposition,                                                                    
                or exchange of such artwork.                                                                                    
                                                                                                                                
     Sec. 3: AS 44.27.050(7), relating to the duties of the                                                                   
               ASCA,  is  a  cross reference  to  the  prior                                                                    
               section,    specifying   ASCA's    management                                                                    
               responsibility  for  public  artwork  created                                                                    
               through   its   programs,  to   include   the                                                                    
               management  of  the relocation,  disposition,                                                                    
               or exchange of such artwork.                                                                                     
                                                                                                                                
       Sec. 4: AS 44.27.053(a), establishes the Attorney                                                                      
               General   being  legal   counsel  for   ASCA,                                                                    
               similar to  other state agencies,  and allows                                                                    
               the ASCA  to retain additional  legal counsel                                                                    
               as  needed, subject  to the  approval of  the                                                                    
               Attorney General.                                                                                                
                                                                                                                                
     Sec. 5: AS 44.27.055(d), relating to the ASCA managing                                                                   
               its affairs, exempts from  the purview of the                                                                    
               Executive Budget Act  those funds received by                                                                    
               ASCA   from  private   non-profit  foundation                                                                    
               partners.                                                                                                        
                                                                                                                                
     Sec. 6: AS 44.27.080(a), relating to an ASCA-sponsored                                                                   
               competition for artistic  plates design, from                                                                    
               being  mandatory  to  being  optional,  every                                                                    
               four years, at the discretion of ASCA.                                                                           
     3:46:04                                                                                                                    
       Sec. 7: AS 44.27.080(c), relating to the artistic                                                                      
               plate design  competition, restores authority                                                                    
               for  the  ASCA to  award  the  artist of  the                                                                    
               winning  design  a  monetary  amount  set  in                                                                    
               regulation, from  the funds generated  by the                                                                    
               artistic plates. This  provision was repealed                                                                    
               in 2018.                                                                                                         
                                                                                                                                
     Sec. 8:  Provides an effective date of July 1, 2021.                                                                       
                                                                                                                                
3:46:24 PM                                                                                                                    
CHAIR SHOWER  asked if the  sponsor anticipated less  interest in                                                               
the ceremonial arts  license plate because it would  no longer be                                                               
free of charge.                                                                                                                 
                                                                                                                                
MR. LAMKIN  replied the expectation  is a slight drop  in demand,                                                               
but the modest  $5 fee seeks to minimize the  reduction. He noted                                                               
that  the fiscal  note acknowledges  that the  drop in  demand is                                                               
just a guess.                                                                                                                   
                                                                                                                                
CHAIR  SHOWER asked  if any  associated program  costs associated                                                               
with  this  change could  affect  the  undesignated general  fund                                                               
(UGF) budget.                                                                                                                   
                                                                                                                                
MR. LAMKIN  directed attention  to the  Arts Council  fiscal note                                                               
that  reflects a  one-time  $6,000 increment  for  legal fees  to                                                               
change the regulations.                                                                                                         
                                                                                                                                
3:49:08 PM                                                                                                                    
SENATOR REINBOLD referred  to the provision in  the new paragraph                                                               
(7) on  page 3,  line 4, and  asked if the  art in  public places                                                               
fund is the same as the one percent for art.                                                                                    
                                                                                                                                
MR. LAMKIN deferred to Mr. Brown.                                                                                               
                                                                                                                                
3:49:59 PM                                                                                                                    
MR. BROWN  replied those are  two separate programs.  The percent                                                               
for art is in  Title 35, Chapter 27. It calls for  a piece of art                                                               
to be put in a new facility.  The art in public places fund holds                                                               
the proceeds  from the one  percent allocated for  a construction                                                               
project that are not spent on  a project. When the balance in the                                                               
account reaches say  $50,000, the Arts Council will  issue a call                                                               
for pieces to accession to  their contemporary art bank. He noted                                                               
that many legislators have pieces  from the contemporary art bank                                                               
in  their   offices.  These  pieces   also  hang   in  university                                                               
buildings,   courthouses  and   other  public   facilities  where                                                               
Alaskans go  for services. The  Arts Council has  clear authority                                                               
in its enabling  statute to manage and deaccession  pieces in the                                                               
contemporary art bank but it has  no clear authority to help with                                                               
art that  is part of buildings.  He advised that this  part of SB
71 is meant  to clarify that because it makes  sense for the Arts                                                               
Council to treat all its art equally.                                                                                           
                                                                                                                                
3:51:50 PM                                                                                                                    
SENATOR REINBOLD  asked if the  bill authorizes the  Arts Council                                                               
to  work on  the art  in the  schools in  her district  that were                                                               
heavily  damaged  by  the  earthquake  and  potentially  will  be                                                               
upgraded.                                                                                                                       
                                                                                                                                
MR. BROWN replied  the bill gives the Arts  Council the statutory                                                               
authority to develop policies and  procedures and they would like                                                               
those to  include the  ability to rehabilitate  the art  in those                                                               
sorts of  public places. He described  that as a good  example of                                                               
the need for this authority for the Arts Council.                                                                               
                                                                                                                                
SENATOR REINBOLD voiced  support for the bill,  advocated for the                                                               
artists in her district, and asked  what year the one percent for                                                               
art program passed.                                                                                                             
                                                                                                                                
MR. LAMKIN recalled it was in the '70s.                                                                                         
                                                                                                                                
MR. BROWN agreed with the guestimate.                                                                                           
                                                                                                                                
3:55:07 PM                                                                                                                    
CHAIR SHOWER held SB 71 in committee for future consideration.                                                                  

Document Name Date/Time Subjects
SB 71 Arts Council Sponsor Statement.pdf SFIN 4/6/2021 9:00:00 AM
SSTA 3/9/2021 3:30:00 PM
SB 71
SB 71 Bill V.i.pdf SSTA 3/9/2021 3:30:00 PM
SB 71
SB 71 DMV License Plate Options.pdf SFIN 4/6/2021 9:00:00 AM
SSTA 3/9/2021 3:30:00 PM
SB 71
SB 71 Sample Plates Plate Demand.pdf SFIN 4/6/2021 9:00:00 AM
SSTA 3/9/2021 3:30:00 PM
SB 71
SB 71 Sectional Analysis.pdf SFIN 4/6/2021 9:00:00 AM
SSTA 3/9/2021 3:30:00 PM
SB 71
SB 23 version A.pdf SSTA 3/9/2021 3:30:00 PM
SB 23
SB 23 Sponsor Statement.pdf SJUD 2/9/2022 1:30:00 PM
SSTA 3/9/2021 3:30:00 PM
SB 23
SB 23 Fiscal Note 21.pdf SSTA 3/9/2021 3:30:00 PM
SB 23
SB 23 Research - NCSL States that Allow Severability Clauses in Ballot Initiatives.pdf SJUD 2/9/2022 1:30:00 PM
SSTA 3/9/2021 3:30:00 PM
SB 23
SB 76 FIscal Note 2348.pdf SSTA 3/9/2021 3:30:00 PM
SB 76
SB 76 Letters of Support.pdf SSTA 3/9/2021 3:30:00 PM
SB 76
SB 76 Sponsor Statement.pdf SSTA 3/9/2021 3:30:00 PM
SB 76
SB 76 Sectional Analysis ver. A.pdf SSTA 3/9/2021 3:30:00 PM
SB 76