SB 66-ST. COUNCIL ON THE ARTS: PUBLIC CORP.  9:10:59 AM CHAIR HUGHES related that SB 66 is a committee bill that would quasi-privatize the Alaska State Council on the Arts (ASCA) by restructuring it as a public corporation to allow ASCA to increase its ability to leverage funds from non-governmental contributors and better adapt to the shifting economic climate in Alaska. This effort responds to the widespread interest in governmental entities to at least partially privatize their operations and increase their operating efficiency. 9:11:30 AM JOSHUA BANKS, Staff, Senator Shelly Hughes, Alaska State Legislature, presented the sectional analysis of SB 66 on behalf of the sponsor. He read: 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. 9:14:22 AM 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 to 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). 9:15:39 AM 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". 9:16:53 AM 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. 9:17:31 AM CHAIR HUGHES noted that Section 12 allows for the hiring of an executive director; it is not adding a new position. MR. BANKS said that was correct. ASCA currently has an executive director. 9:18:03 AM SENATOR COGHILL asked if there is a timeline for members to become trustees. MR. BANKS deferred the question to Mr. Brown or Ms. Nobel- Pelant. SENATOR COGHILL said he is reluctant to put U.S. Code requirements into state statute because it unknown whether the state is in compliance. He suggested those requirements be spelled out in Section 13. He also inquired whether trustees have new responsibilities. MR. BANKS offered to work on those issues. 9:19:13 AM BENJAMIN BROWN, Chair, State Council on the Arts (ASCA), presented information on SB 66. He said the reason behind the request to restructure ASCA was due to the state fiscal crisis and issues that have arisen even before the budget situation. Due to ASCA receiving more private foundation money, they have been hamstrung by the State Procurement Code. They decided to put together a package of the best ways to make ASCA more effective. He thanked the committee for taking up their request. He noted the House Education Committee has a companion bill. He concluded that ASCA is trying to be part of the solution, not part of the problem. He addressed Senator Coghill's question. He said the National Arts and Humanities Act mandates that state art agencies be under the auspices of state government. Their funding must be matched dollar for dollar. It also mandates that 40 percent of funding pass through state arts agencies. He emphasized that SB 66 references federal requirements for purposes of clarity. It does not add any more requirements of the legislature. He offered to answer questions. 9:23:19 AM CHAIR HUGHES noted the bill will be held over and questions could be considered at the next meeting. 9:23:44 AM ALICE BIOFF, Member, State Council on the Arts (ASCA), testified in support of SB 66. She shared her personal background and work with Kawerak, the regional non-profit consortium of tribes for the Bering Straits region as a business planning specialist. She spoke of her work with artists within the region. Kawerak provides direct technical assistance to artist entrepreneurs. She has seen firsthand how important ASCA is to artists in supporting their work. The restructuring of ASCA strengthens this support and will provide better funding opportunities and better tools and services. SB 66 streamlines the process ASCA will use to present opportunities to artists all over Alaska. 9:26:38 AM ANDREA NOBLE-PELANT, Executive Director, Alaska State Council on the Arts, testified in support of SB 66. She shared her personal background. She said the timing of SB 66 is opportune, as Alaska's creative industry is currently growing due to targeted public and private investments in the past ten years. She described the efforts of ASCA and the grants, programs, and private programs it provides to Alaskan artists. SB 66 will allow new and existing programs to reach more Alaskans with increased impact and efficiency. She related that ASCA works with constituents to oversee projects and initiatives that build capacity for arts organizations and provide practical and professional development and opportunities for artists. She named several programs ASCA works with, such as those with PTSD, incarcerated persons, and more. They have long-standing partnerships with the Rasmuson Foundation, the Alaska Arts and Culture Foundation, and the Atwood Foundation. She listed new partners, which were inspired by ASCA's work. Other partners include the Alaska Humanities Forum, and the Western States Arts Federation. Funding from partners goes back to Alaska residents and communities as grants, programs, and services. She concluded that SB 66 provides flexibility for ASCA to manage projects in a timely manner and to work across sectors, and it strengthens ASCA's ability to secure future funding. CHAIR HUGHES thanked the presenters. MR. BROWN addressed Senator Coghill's question about expertise of council members. He stated that everyone currently on the council has expertise in one of the enumerated art areas and qualifies to continue. 9:31:28 AM CHAIR HUGHES held SB 66 in committee.