9:06:49 AM SENATE BILL NO. 97 "An Act relating to identification seals for certain articles created or crafted in the state by Alaska Native persons; relating to the Alaska State Council on the Arts; and making certain identification seal violations unfair trade practices." This was the first hearing for this bill in the Senate Finance Committee. 9:07:23 AM SENATOR GARY STEVENS, Sponsor of the bill, introduced Mr. Lamkin. 9:07:36 AM TIM LAMKIN, Staff to Senator Gary Stevens, presented a slideshow to "personalize" the issue, while reading his testimony into the record as follows. It is with great pride that Senator Stevens and myself offer SB 97 on behalf of the Alaska State Council on the Arts. Despite its existence of for decades, I venture to say that many people in our great state don't recognize this emblem right here. It's known simply as the Silver Hand. It's a marketing tool that's used to represent a piece of art as being authentically made by an Alaskan Native in Alaska. It's origins date back to at least the 1930s when market demand for authentic Alaskan Native arts and crafts was clearly increasing. Since that time there's been an ongoing effort to bring credibility to the program currently embodied by the Silver Hand and to honor Alaska Native artists wishing to sell their wares. Unfortunately, that effort has been repeatedly thwarted by fraud. A new line of thinking has emerged that with some success that puts focus on the artist instead of the art. Senate Bill 97 embraces those efforts made by the Arts Council to simply clean house. There's no motivation here other than to strengthen and modernize the statutes relating to the Silver Hand permitting and to help rejuvenate a program that's poised to reblossom. Personally, I have 16 years of experience in the private sector of the summer tourism business where I receive daily requests for authentic Native art and thus I believe that SB 97 and the efforts of the State Arts Council will help make the Silver Hand emblem more readily recognizable and sought for by the buying public. 9:10:16 AM Senator Gary Stevens noted the slideshow contains photographs of well known Alaska Native artists as well as some of their creations. 9:11:46 AM Co-Chair Hoffman asked how this bill would clarify existing language. 9:12:04 AM Mr. Lamkin replied that "generally speaking", the changes would "make the language modern". 9:12:24 AM BENJAMIN BROWN, Vice Chair, Alaska State Council on the Arts, testified that he collaborated with Saunders McNeil, staff of the Council and whose portfolio of activities includes the Silver Hand program. Current statutory language refers to "Alaskan art and handicrafts". The inclusion of handicraft was determined to be "inaccurate", as it represents a "lesser form of creativity than art". The products being created by Alaskan Native artists deserve to be referred to as art or artwork. This bill clarifies those references. 9:13:40 AM Senator Elton asked whether an "exceptional" non-Native artist who produces traditional Native style artwork and who has been adopted into a tribe could qualify for the Silver Hand program. 9:14:16 AM Mr. Brown replied that unless that artist were a tribal member of a tribe recognized by the federal government or was granted special tribal recognition through an act of the Legislature, that person would not qualify for participation in the Silver Hand program. Such legislative action has not occurred but this bill accommodates possible future practices. The non-Native artist could take advantage of other marketing opportunities, including the Made in Alaska program. 9:15:16 AM Co-Chair Hoffman noted language in the bill which references a list of federally recognized tribes and asked if the Committee had this list. Mr. Brown indicated he would provide a copy of the list of federally recognized tribes. 9:15:52 AM Senator Thomas asked about the deletion of existing statutory language noted on page 3, line 13 of the bill and asked the reasoning. 9:16:18 AM Mr. Brown answered that the original statute had been written to allow Silver Hand seals to be issued by an agent of the Alaska State Council on the Arts. The use of agents has never occurred and because of the possibility of fraud, the Council recommended the removal of this provision. 9:16:52 AM Senator Thomas asked how artists residing in remote areas of the state participate in the program. 9:17:02 AM Mr. Brown explained how residents of all communities other than Anchorage, which houses the Council, would contact the Council office. Seals are mailed to participating artists. 9:17:36 AM Senator Olson deemed it a "stretch" to have to authenticate art and asked the necessity of the program. 9:17:50 AM Senator Gary Stevens replied that the program "makes it clear" that Alaska Native art is authentic. Otherwise, items manufactured elsewhere, such as Taiwan, could be "passed off" as Alaskan Native. Senator Olson asked whether the fraud or "fear of fraud" was so significant as to threaten the artists' livelihood. Senator Gary Stevens surmised it was. A consumer would have no other method to determine if an ivory polar bear was carved in Alaska or in the Orient. The problem exists. 9:18:38 AM Senator Olson asked the assessment of this program by artists themselves. Senator Gary Stevens responded that the Alaska State Council on the Arts has overseen this program for many years. The Council reviewed the language of existing statute and identified shortcomings. Although he was not an Alaskan Native artist, he as well as many present share a concern about these arts. 9:19:35 AM Mr. Lamkin emphasized that this bill was offered on behalf of the Council. The issue is the protection of Alaskan Native artists as well as consumers. 9:19:57 AM Mr. Brown declared that many items sold in shops located on South Franklin Street in Juneau and at other tourism shopping localities could be conceived to be created by Alaskan Natives if not identified otherwise. A large group of Alaskan Native artists conceived the Silver Hand program. The current chair of the Alaska State Council on the Arts is himself an Alaskan Native and an artist. 9:20:47 AM Senator Olson asked about the input from artists. He cited the adage, "Don't protect me from myself", surmising that artists could interpret this program as needless or a hindrance. 9:21:24 AM Senator Gary Stevens reiterated the credentials of the Council chairperson. 9:21:59 AM Co-Chair Stedman noted the inclusion of substantial supporting documentation for this legislation. 9:22:11 AM SAUNDERS MCNEIL, Chair, Alaska State Council on the Arts, testified via teleconference from an offnet location that Native Alaskan artists support the Silver Hand program, especially those who subscribe to the program. The Council polled artists on this matter and received "overwhelming support" from "across the state." Many of those who responded to the questionnaire also took the opportunity to renew their seal permits. 9:23:10 AM Senator Elton ascertained that the provision of Section 4 would allow the Council to collect a fee from participants of the Silver Hand program. He asked the amount of the fee and whether it would impose an impediment to the ability for the artists to earn a livelihood. 9:23:39 AM Mr. Lamkin reported that the $20 fee is paid bi-annually, so the cost of participation is $10 per year. The funds are utilized to cover the expense of the stickers. He perceived that this amount would not be cost prohibitive. 9:24:22 AM Co-Chair Stedman deduced that no further testimony was forthcoming. 9:24:29 AM Co-Chair Stedman, noting the zero fiscal note, asked if the enactment of this legislation would incur any additional cost to the Arts Council. 9:24:56 AM Mr. Brown relayed the Council's goal to utilize the nominal amount of funding it receives from the Legislature, the National Council on the Arts and other sources to promote Alaskan art. Council staff prepared the fiscal note as an "honest prediction" of the financial implication. The Council would not submit a supplemental appropriation request to implement the changes. 9:25:52 AM Co-Chair Stedman discerned that the Committee would not expect any additional funding requests pertaining to this legislation. Mr. Brown affirmed. 9:26:10 AM Co-Chair Hoffman offered a motion to report the bill, 25- LS0405\M, from Committee with individual recommendations and accompanying fiscal note. There was no objection and SB 97 was REPORTED from Committee with zero fiscal note #1 from the Department of Education and Early Development. AT EASE 9:26:36 AM / 9:31:29 AM