Legislature(2017 - 2018)SENATE FINANCE 532
04/13/2017 09:00 AM FINANCE
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HOUSE BILL NO. 137 "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." 9:18:59 AM Co-Chair MacKinnon read the bill title for HB 137 (see above). She recalled that the committee heard the companion bill, SB 66, on March 24, 2018. She invited the bill sponsor to the table. REPRESENTATIVE HARRIET DRUMMOND, SPONSOR, informed that HB 137 was sponsored by the House Education Committee. The committee had unanimously consented to sponsoring the legislation as a committee bill. It passed the House unanimously. She read a portion of the sponsor statement: House Bill 137 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. Representative Drummond understood that the Senate Finance Committee had already heard the Senate version of the bill and would not go into detail about the bill unless the chair directed her to. Senator von Imhof asked if there was a difference in the two bills. KRISTEN KRANENDONK, STAFF, REPRESENTATIVE HARRIET DRUMMOND, stated that the version before the committee was the same as the Senate version. However, she thought the committee had an amendment to offer. Senator Olson noted Representative Drummond's mention of quasi-privatization. He asked if she had looked at any other places to receive funds aside from the private sector allowed by the bill. Representative Drummond deferred to the Chairman of the State Council on the Arts. 9:22:00 AM BENJAMIN BROWN, CHAIR, STATE COUNCIL ON THE ARTS, stated that there were earned income opportunities and program receipts such as the license plate program that passed in the prior year. There would be a two-round competitive process to select a license plate to celebrate the arts. He opined the project would generate funds. He had also talked with other legislators, including Senator Hughes, about other ways of looking for earned income. He noted the possibility of using the temporary art bank to provide art to non-governmental offices for compensation. In addition to asking for foundation funds, the council saw earned income as a possibility going forward. Senator Olson asked if Mr. Brown could discuss whether the loan program was something the council planned on participating in. Mr. Brown did not know of any other state that had a public art bank that used it as a service to the private sector. However, it was certainly something the council was willing to look at. He thought the problem was that the private sector was not seeking to expend funds on decorating its buildings in the current economic climate. He suggested that it was possible in the future. He was hoping to use the resources from the National Assembly of State Arts Agency to see if there was an example from another state Alaska could replicate. Senator Olson asked about the program receipts and asked if the council was competing with any other entities for the program receipts. Mr. Brown indicated that his late father had been instrumental in founding the Children's Trust. He and his spouse had Children's Trust license plates on both of their cars. He would have to get art plates once they were available, which he jokingly said would be a conflict. He relayed that private galleries did not rent art, rather, they sold it. He did not see any possible unfair competition. Senator Olson suggested Mr. Brown get a second car. Mr. Brown replied, "Maybe a third car." Co-Chair MacKinnon reminded members and testifiers to relay their remarks through the chair. She asked Representative Drummond if she had a statement on whether the trustees should be confirmed. Alaska had several corporations with trustees confirmed by the legislature in state statute. She used the examples of Alaska Gasline Development Corporation (AGDC) and the Alaska Housing Finance Corporation (AHFC). Additionally, Alaska had some corporations whose trustees were not confirmed such as the Alaska Permanent Fund Corporation. Representative Drummond did not have an opinion on the matter. She thought there were 11 members on the council each having an area of expertise defined in the bill. The idea was for the council to best serve the needs of the organization. Skills in the area of art were unique to that business. Co-Chair MacKinnon asked if Mr. Brown had an opinion on whether the council members should be confirmed. Mr. Brown relayed that the council had researched examples from other states and jurisdictions. Some council members were appointed by legislative bodies. In other states the governor appointed members who were confirmed by the legislature. The council concluded that the number of council members and the way in which they were appointed worked well for Alaska and did not need to be changed. He thanked Co-Chair MacKinnon for the example of the Permanent Fund Board of Trustees. Co-Chair MacKinnon asked the committee if it was of like mind that there did not need to be a confirmation at the legislative level for the new corporation. 9:27:06 AM Co-Chair MacKinnon relayed that public testimony had been heard previously. Co-Chair MacKinnon MOVED to ADOPT Amendment 1 ((copy on file): Page 10, lines 16-17 Delete "an Alaska veterans' preference that is consistent with the Alaska veterans' preference in AS 36.30.321(f)" Insert "the preferences of an Alaska bidder and an Alaska veteran that are consistent with the preferences in AS 36.30.32 1" Vice-Chair Bishop OJBJETED for discussion. Co-Chair MacKinnon explained that there was a preference in the previous version of the bill. The amendment would add the Alaska bidder preference. She thought if there was going to be a preference the others should be included. 9:27:47 AM AT EASE 9:31:09 AM RECONVENED Co-Chair MacKinnon confirmed that the Alaska bidder preference was combined with the Alaska Veteran's preference consistent with AS 36.30.321. She wanted both preferences listed to ensure that local artists could compete with national and international artists. She would provide the definition of "Alaska bidder preference" before the bill went to the Senate floor for a vote. Vice-Chair Bishop WITHDREW his OJBECTION. There being NO further OBJECTION, Amendment 1 was ADOPTED. Vice-Chair Bishop discussed the fiscal note. The fiscal note by the Department of Education and Early Development with an appropriation of commissions and boards and an allocation of the Alaska State Council on the Arts had an OMB component number of 192. It was essentially a zero fiscal note. The fiscal note removed all state funding within the state council. The funding was being transferred to the new state council appropriation. The second fiscal note, currently without an OMB component number, had an appropriation and allocation of Alaska State Council on the Arts. The annual cost was $2,768.5 million. The analysis indicated that the positive impact of cost reductions could not be determined until the agency restructured. Efficiencies that were anticipated in operating costs could not be quantified at present. Co-Chair MacKinnon commented that the council received funds and leveraged other funds from out of state from the National Arts Endowment. 9:34:10 AM AT EASE 9:34:22 AM RECONVENED Co-Chair MacKinnon conveyed the definition of an Alaska bidder in at AS 36.30.990: (2) "Alaska bidder" means a person who (A) holds a current Alaska business license; (B) submits a bid or proposal for goods, services, or construction under the name appearing on the person's current Alaska business license; (C) has maintained a place of business in the state staffed by the bidder or offeror or an employee of the bidder or offeror for a period of six months immediately preceding the date of the bid or proposal; (D) is incorporated or qualified to do business under the laws of the state, is a sole proprietorship and the proprietor is a resident of the state, is a limited liability company organized under AS 10.50 and all members are residents of the state, or is a partnership under former AS 32.05, AS 32.06, or AS 32.11 and all partners are residents of the state; and (E) if a joint venture, is composed entirely of ventures that qualify under (A) (D) of this paragraph. Senator Olson asked Co-Chair MacKinnon to repeat the statute reference. Co-Chair MacKinnon repeated the statute reference. Vice-Chair Bishop MOVED to report SCS HB 137(FIN) out of Committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. SCS HB 137 was REPORTED out of committee with a "do pass" recommendation and with two previously published fiscal impact notes: FN2 (EED) and FN3 (EED). 9:36:13 AM AT EASE 9:38:11 AM RECONVENED Co-Chair MacKinnon discussed the schedule for the afternoon meeting.
|SB 78 Amendment 1 Bishop.pdf||
SFIN 4/13/2017 9:00:00 AM
|HB 137 Amendment 1 MacKinnon.pdf||
SFIN 4/13/2017 9:00:00 AM