Legislature(1997 - 1998)
01/21/1998 08:05 AM House CRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE COMMUNITY AND REGIONAL AFFAIRS
STANDING COMMITTEE
January 21, 1998
8:05 a.m.
MEMBERS PRESENT
Representative Ivan Ivan, Chairman
Representative Fred Dyson
Representative Jerry Sanders
Representative Al Kookesh
Representative Reggie Joule
MEMBERS ABSENT
Representative Scott Ogan
Representative Joe Ryan
COMMITTEE CALENDAR
EXECUTIVE ORDER NO. 100
Moving the "Silver Hand" Program from DCED to DOE
- HEARD AND HELD
(* First public hearing)
PREVIOUS ACTION
No previous action to record
WITNESS REGISTER
TOM LAWSON, Juneau Section Chief
Division of Trade and Development
Department of Commerce
and Economic Development
P.O. Box 110804
Juneau, Alaska 99811-0904
Telephone: (907) 465-2017
POSITION STATEMENT: Explained Executive Order 100.
VERNON CHIMEGALREA, Director
Native Arts Program
Alaska State Council on the Arts
Department of Education
411 West Fourth Avenue, Suite 1E
Anchorage, Alaska 99501
Telephone: (907) 269-6610
POSITION STATEMENT: Testified in support of Executive Order 100.
HELEN HOWARTH, Executive Director
Alaska State Council on the Arts
Department of Education
411 West Fourth Avenue, Suite 1E
Anchorage, Alaska 99501
POSITION STATEMENT: Testified on Executive Order 100.
ACTION NARRATIVE
TAPE 98-1, SIDE A
Number 0001
CHAIRMAN IVAN IVAN called the House Community and Regional Affairs
Standing Committee meeting to order at 8:05 a.m. Members present
at the call to order were Representatives Ivan, Dyson, Sanders and
Kookesh. Representative Joule arrived at 8:07 a.m.
EO 100 - MOVING THE "SILVER HAND" PROGRAM FROM DCED TO DOE
Number 0053
CHAIRMAN IVAN announced the committee would hear Executive Order
100 which moves the "Silver Hand" Program from the Department of
Commerce and Economic Development to the Department of Education.
He said according to AS 24.08.210, the legislature has 60 days,
until March 12, 1998, to disapprove the order if it so chooses. He
indicated that the committee would hear a briefing from the
departments.
Number 0132
TOM LAWSON, Juneau Section Chief, Division of Trade and
Development, Department of Commerce and Economic Development, came
before the committee. He stated he would give a brief overview of
the program, talk about the history of the program within the
Department of Commerce and Economic Development and also speak
about why the department believes the program should be moved to
the Alaska State Council on the Arts (ASCA) within the Department
of Education. Mr. Lawson noted the director of the council, Helen
Howarth, was listening via teleconference.
Number 0172
MR. LAWSON informed the committee members that the Silver Hand
Program certifies handicrafts as being made by a Native Alaskan,
Eskimo, Aleut or Indian. He noted the emblem is a silver hand with
a black oval background. Mr. Lawson explained that a product that
shows up in a store with the emblem on it is supposed to be
guaranteed that it is made by a Native.
MR. LAWSON referred to the operation of the program and said there
are four basic areas that has to be covered when the program is
being run. The first area is the processing of the permits, which
ensures that the applicant is indeed eligible to be part of the
program. The second area is the education of those Native
handicrafters that are not yet in the program or who do not know of
the program. He said they want to get those people to be a part of
the program. Mr. Lawson explained the third area is the promotion
of the program so that when tourists, or any other buyer of Native
handicrafts, goes into stores that sell handicrafts that they
specifically ask for handicrafts with the emblem on them. Mr.
Lawson explained the fourth and last part of the operation of the
program is basically the enforcement aspects. He said there are
people that try to counterfeit Native handicrafts. They try to
represent handicrafts as being authentic Native handicrafts.
Number 0325
MR. LAWSON informed the committee members that the program was set
up in statute in 1961. It has been changed a few times since then,
the most recent being in 1993. At that point, regulations were set
up to clarify and strengthen the eligibility rules and to make it
easier to have enforcement for anyone who violated the program.
Mr. Lawson stated that in fiscal year `97, the department's budget
for the program was $5,000. He said over the years, the Silver
Hand Program has had its "ups and downs" in the Department of
Commerce and Economic Development. Over the past several years,
they have had to really scrape money together to pay for the
printing of the stickers and tags that are issued, and to do
whatever they can in terms of promoting the program. Mr. Lawson
said a very small portion of one staff person's time was assigned
to the program. He said they weren't able to commit the resources
to the program that it needed.
Number 0446
MR. LAWSON said a year ago, there were about 600 Native
"handicrafters" that were part of the program. There is also a
part of the program where you can be a "Silver Hand" agent which
would make you eligible to issue individual permits. There were 27
agents. He noted those figures are about a year old.
Number 0479
MR. LAWSON referred to the terms of how the department decided to
move the program to the ASCA and explained in 1995, the Governor
started the Marketing Alaska Program which was basically a
public/private sector effort. The Governor named a seven sector
working group made up of public and private sector leaders. One of
the working groups that the Governor named was the cultural
resource sector working group which was made up of about 12 to 15
people who were leaders in the arts and crafts industry in Alaska
and were cultural experts. Their recommendation, after studying
several issues within their charge, was that the Silver Hand
Program was much better suited to be in the ASCA than in the
Department of Commerce and Economic Development. Their thought was
that it would probably thrive more with the council than it did in
the department.
MR. LAWSON referred the committee members to information titled,
"Marketing Alaska, The Governor's Economic Development Initiative,
1996 Summary." He said recommendation 15 basically says that the
Silver Hand Program should be moved to the ASCA. Mr. Lawson said
he would be happy to answer any questions the committee may have.
Number 590
CHAIRMAN IVAN said the bottom line in reviewing the transfer is to
try and protect the program and let it be where it will have the
most support. He said he wants the program to stay in a recognized
state department and it should continue, as it does have some
economic impacts on some of the artists from communities throughout
the state. Chairman Ivan noted he isn't against the order, but he
wants make sure the Silver Hand Program continues to be a viable
program. He said there has been a misunderstanding that the
legislature was attacking the program and that is far from the
truth. They just want to make sure the program is being handled
correctly.
Number 0756
REPRESENTATIVE FRED DYSON asked if it is Chairman Ivan's intention
to act on the order.
CHAIRMAN IVAN stated his intention is to basically get a briefing,
learn what the program is and learn why the transfer is being
suggested.
Number 0799
REPRESENTATIVE DYSON asked Chairman Ivan if the committee does
nothing, the transfer will happen.
CHAIRMAN IVAN responded that is correct. If the committee opposes
the action, the committee would have to introduce a concurrent
resolution and pass it. It would have to go through the
legislative process like legislation does.
Number 0838
REPRESENTATIVE DYSON asked if the artists have been notified that
this may happen. He inquired if the artists have any problems with
the transfer, would the committee hear about them.
CHAIRMAN IVAN said there are two parts. He said he doesn't know if
the Department of Commerce and Economic Development has notified
the artists. He referred to the legislative hearing being noticed,
but said he thinks there should be more committee time to address
Representative Dyson's concern.
REPRESENTATIVE DYSON said his recommendation would be that the
committee make an effort to get the word out through the media,
journals, et cetera, to let the artists know this is pending and
they should notify the committee if they have concerns.
Number 0958
REPRESENTATIVE ALBERT KOOKESH said he doesn't mean to be unfair to
anybody, but he believes time can be wasted by letting the order
drag on. He stated it makes sense for the program move to the
ASCA. Representative Kookesh said he thinks Native artists could
care less which department the program is in as long as the program
is in place. He asked why the committee should have hearing after
hearing on something that is so simple. Representative Kookesh
indicated if there are 600 artists in the program, he probably
knows at least one-third of them. Nobody has contacted him with
concerns about moving the program.
Number 1011
REPRESENTATIVE REGGIE JOULE said Mr. Lawson mentioned there is one
staff person who puts part of their time into the program and asked
at what level.
MR. LAWSON responded that the department has done a contract with
the council for this year to actually informally have them operate
the program. The order is the final step to segregate the statute
from the Department of Commerce and Economic Development to the
council's statute. He said the council is currently operating the
program. Mr. Lawson said he is pretty sure that every one of the
Silver Hands Program people, who are certified, were notified of
the change several months ago. He said when the department
operated the program, it was a range 20 and they probably allocated
less than 5 percent of their time towards the program. Mr. Lawson
also noted there was also some clerical assistance. The department
believed that not enough was being done to really push the program.
Number 1112
REPRESENTATIVE JOULE referred to the Governor's Economic
Development Initiative for Marketing Alaska and said there are
three different areas. There are priorities, action items and
those things where they believed further dialogue was needed which
is in the recommendations 1 through 17. He said while
recommendation 15 did call for revamping of the Silver Hand
Program, that still fell under recommendation 3. He said, "Any
further dialogue was needed because I guess there just wasn't
consensus among the people that were involved." He read
recommendation 17, "Move the Alaska State Council on the Arts and
the Silver Hand program to a cultural resources entity in the
Department of Commerce and Economic Development...." He asked if
that was just something to look at because people couldn't make up
their minds of what to do. Representative Joule said one of the
suggestions is to move the program to the council, but another
suggestion is to move the council back to the Department of
Commerce and Economic Development.
Number 1195
MR. LAWSON said, "There was a lot of discussion about that and I
think that the arts council has had its ups and downs with where it
is and I think at the time that was drafted it was still - the arts
council - I think the people who studied - studied the cultural
resources, issues and opportunities at that point felt that the
arts council might actually thrive in commerce. Now since that
recommendation was made, I think that the feeling is more that it's
fine where it is and so that's why at this point in time there
isn't any effort to transfer the arts council."
Number 1245
REPRESENTATIVE JERRY SANDERS asked Mr. Lawson if he believes the
Silver Hand Program will receive more money or more dedicated
facilities if it is in the Department of Education than it does
where it currently is.
MR. LAWSON stated it is the department's feeling that the answer is
"yes." The reason is that they feel the arts council focuses on
arts. They have staff who are currently operating in the program
and are experts on Native handicrafts which the Department of
Commerce and Economic Development never had. Mr. Lawson said he
believes the State Council on the Arts is more geared and poised
toward looking for other sources of funding, such as federal
grants, to operate their various programs in the world of art. He
said that is what the program needs. Mr. Lawson said his
department didn't have staff to pro-actively chase other sources of
funding.
Number 1343
REPRESENTATIVE SANDERS said he sees the program as a commercial
enterprise. He said he doesn't see how it fits as well under the
council. He said when you talk about more money and facilities
being dedicated to it, it is his impression that the arts,
nationally and statewide, are in an ebbing situation. The support
hasn't been there over the last four to six years and he doesn't
see that changing. Representative Sanders said he believes it is
connected to commerce. It is an art, but the object of the art is
the commerce. He said, "They're not doing this to grow their
culture, they're doing it to make some money."
Number 1262
MR. LAWSON said he is hopeful that staff for the ASCA can convince
him otherwise. He stated he can only speak about where the program
was over the last several years. He noted in the late 1980s, the
program was inactive for awhile. The biggest criticism is the lack
of enforcement. There has been a growing problem with what is
called "knock-off art" where artisans from other countries are
imported into the state or the Lower 48 and they basically imitate
Native art. He said he hopes the ASCA can put more resources
towards the program than the department was able to do.
Number 1476
REPRESENTATIVE SANDERS stated he is in favor of the Silver Hand
Program. He said he just has to be convinced that the program
would be better off in the Department of Education.
Number 1487
REPRESENTATIVE KOOKESH said, "I just wanted to make a comment about
the question of commerce versus the question of art. I would
probably be concerned, as my colleague here, if the state was
giving those artists resources from the state. Then I would
probably say 'yeah, maybe it should stay in the Department of
Commerce.' But all this is is a Silver Hand Program which is used
for identifying Native art. The state does not give any resources
to these artists. The only thing the state does is just spend a
little money to have the silver hand printed. The question then is
a question of art. It just seems to me to make more sense to have
something -- this kind of a program in an area that people are
interested and involved and want to see the program work. And it
doesn't matter to me whether it's under the Department of
Education, just that it's with the council of arts in the state of
Alaska. That makes a lot more sense to me. Like I say, if they
were getting money from the state, hey, I think it should stay in
Department of Commerce myself, but they're not. This is not a
finance program, it's an art program."
Number 1547
REPRESENTATIVE DYSON said he appreciates knowing the participants
in the Silver Hand Program have been notified of the change. He
indicated the bill just confirms what has been the practice.
Representative Dyson said he believes Representative Kookesh has
made it clear that all the council is doing is certifying the
authenticity of handicrafts and they aren't doing much promotion.
He said, "If the people who are doing it like it to be transferred
and the artisans have been notified and have not raised any
objections, it doesn't seem to me that we should either. But I am
comforted by the Chair telling us that if indeed a whole bunch of
objections show up, we have some time to rectify the situation so
let's move."
Number 1625
VERNON CHIMEGALREA, Director, Native Arts Program, Alaska State
Council on the Arts, Department of Education, testified via
teleconference from Anchorage. He read the following statement
into the record:
"Thank you for this opportunity to address you about the Silver
Hand Program.
"The Alaska State Council on the Arts is in support of the
Governor's Marketing Alaska recommendation to transfer the Silver
Hand Program from the state Alaska Department of Commerce and
Economic Development to the Alaska State Council on the Arts.
"The economic impact of the arts have been on a state -- have been
proven on a state and national level. In Alaska, the arts are a
viable industry with an annual income or an annual economic impact
over $23.5 million. The importance of the arts industry is
especially evident in rural Alaska where it may be a family's
primary source of income.
"ASCA has long recognized that communities and artisans need
assistance in developing and marketing local and regional cultural
opportunities. It provides grant funds, technical assistance and
leadership to help develop the arts industry in Alaska. For
example, ASCA is in its third year of a partnership with Department
of Community and Regional Affairs to support community-based
efforts to diversify and strengthen rural economies through arts-
related economic development projects. The ASCA Rural Arts
Initiative Grant Program has funded three arts cooperatives being
developed through the Association of Village Council Presidents in
the Yukon-Kuskokwim Delta, the Tribal Council of St. Paul Island
and in the future the Tribal Council of Pt. Hope.
"ASCA is co-sponsoring a technical assistance workshop in February
for the planning and management of Alaska Native Museums and
Culture Centers. The workshop will include sessions on the role of
tourism, role of gift shops, collections management and exhibit
planning.
"Last fiscal year ASCA made over $500,000 in grants to
organizations and individuals. Every grant we issued supports
Alaskan jobs and creates economic impact in the community it was
awarded.
"The Master Artist and Apprenticeship Program pairs apprentices.
This is one of our other programs and it provides for serious study
of a Native art with acknowledged master artists. This program
encourages the creation of high quality products by master artists
in traditional Native art forms.
"The Silver Hand Program was established to authenticate Native
arts for the retailers and consumers while protecting the work of
Native artists. The program began with good intentions. It has
languished due to lack of commitment and resources at the
Department of Commerce and Economic Development. The Governor's
Marketing Alaska task force identified significant problems with
the program calling it 'outdated, vague and ineffective.' The
Silver Hand Program has been repeatedly criticized for failing to
carry out its obligations.
"It is estimated that over 85 percent of art merchandise sold as
Native made is not authentic. In addition, Native artists lack
trust in the program and retailers are not educated on how to
market Native arts and crafts without misrepresenting the art and
its cultural origin.
"In response to the Governor's Marketing Alaska findings, it was
recommended that the Alaska State Council on the Arts take over
management of the Silver Hand Program. This program goes hand in
hand with our existing Native Arts Program. As the Native Arts
Program director, I apply my art and language expertise as well as
a statewide networking to enhance and build the program. Since the
beginning of the fiscal year, ASCA has devoted considerable staff
resources to revitalize this important program. To begin, we
convened the advisory committee of both Native artists and
retailers. We incorporated the Silver Hand Program into a
statewide Native arts outreach through exhibitions at major
conferences, for example, the AFN [Alaska Federation of Natives]
Convention, the (Indisc.) Conference, and such. And as well as our
travel -- we incorporate as well as our travel to hub areas for
other travel purposes. We've produced video public service
announcements describing the program and the purpose of the Silver
Hand Program. We've increased enrollment in the program by 50
percent to over 600 artists. We contacted the Federal Trade
Commission to discuss enforcement issues and are working to make
the Silver Hand Program locally accessible by developing
partnerships with the village corporations. We've placed
advertisements in major tourist publications alerting travelers to
the importance of the Silver Hand tag when purchasing authentic
Native arts. And we've also publicized the announcement in our
'communica' which comes out on a (indisc.) monthly basis.
"The council feels strongly that the Silver Hand Program will be
best served under the direction of the Alaska State Council on the
Arts. We will seek the public and private resources necessary to
enhance the economies of rural Alaska through arts-related program
like the Silver Hand Program."
MR. CHIMEGALREA informed the committee members that the council has
received applications from a group of Chevak High School students
in regards to the Silver Hand Program. He thanked the committee
for listening to him and offered to answer questions.
Number 1894
REPRESENTATIVE JOULE said it sounds like not only does Mr.
Chimegalrea have a commitment for putting time and financial
resources into this effort, but they have already been doing that.
MR. CHIMEGALREA explained that what they have done is they have
taken a percentage of his existing pay and staff time and
incorporated the Silver Hand Program into existing programs.
REPRESENTATIVE JOULE said, "Within the Department of Commerce and
Economic Development, you know, understanding that this Silver Hand
is to certify authentic Native art. Was there a Native person
working with the program?"
Number 1935
MR. LAWSON responded in the negative.
REPRESENTATIVE JOULE asked if the program was to move to the
council, would there be a Native person working with the program.
MR. CHIMEGALREA answered in the affirmative and added the Native
Arts Program director would be working with the program.
Number 1962
HELEN HOWARTH, Executive Director, Alaska State Council on the
Arts, Department of Education, testified via teleconference from
Anchorage. She informed the committee that the council has a
dedicated staff person position devoted to Native arts and it is
one of the only staff positions within the agency. She stated that
Native arts and Native arts development is a very important part of
their mission and an important part of what the council does.
Number 1986
CHAIRMAN IVAN thanked Mr. Chimegalrea and Ms. Howarth for their
participation. He announced he would hold the executive order. He
said it would be addressed in the future. He asked the committee
members if they hear from artists from their districts who have
recommendations to improve the program to inform him about them.
Number 2036
REPRESENTATIVE JOULE said the order would be held for the purpose
of trying to reach some of the artists around the state. He asked
if there will be an opportunity for action.
CHAIRMAN IVAN said the committee does have an opportunity for
action. If action isn't taken on the executive order, it would go
forward. If there is opposition, then action needs to come out in
the form of a resolution. He thanked everyone for their
participation.
ADJOURNMENT
Number 2083
CHAIRMAN IVAN adjourned the House Community and Regional Affairs
Standing Committee meeting at 8:37 a.m.
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