Legislature(2017 - 2018)SENATE FINANCE 532
03/24/2017 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB66 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 66 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 24, 2017
9:02 a.m.
9:02:29 AM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 9:02 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Anna MacKinnon, Co-Chair
Senator Click Bishop, Vice-Chair
Senator Mike Dunleavy
Senator Peter Micciche
Senator Natasha von Imhof
MEMBERS ABSENT
Senator Donny Olson
ALSO PRESENT
Senator Shelley Hughes, Sponsor; Joshua Banks, Staff,
Senator Shelley Hughes; Ben Brown, Chair, Alaska State
Council on the Arts.
PRESENT VIA TELECONFERENCE
Alice Bioff, Council Member, Alaska State Council on the
Arts, Nome; Andrea Noble-Pelant, Executive Director, Alaska
State Council on the Arts, Anchorage.
SUMMARY
SB 66 ST. COUNCIL ON THE ARTS: PUBLIC CORP.
SB 66 was HEARD and HELD in committee for further
consideration.
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.
ADJOURNMENT
9:56:32 AM
The meeting was adjourned at 9:56 a.m.
| 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 |