SB2143 SD1.DOC

SECTION 1. The legislature finds that the state foundation on culture and the arts was established by the legislature in 1965, to promote, perpetuate, preserve, and encourage culture and the arts, history, and the humanities as central to the quality of life of the people of Hawaii.

Since its inception, the foundation has provided millions of dollars to arts and cultural programming statewide, and the art in public places program, established in 1967, was the first such program in the nation created to help local artists through a separate method of funding the arts by accessing one per cent of the construction cost of new state buildings. Currently, the foundation is responsible for: the artists in the schools program, which provides opportunities for K-12 public school students to work with professional artists (established in 1970); the folk arts program, initiated through a grant from the National Endowment for the Arts, to promote and perpetuate traditional folk arts throughout the State (1983); the works of art special fund, which created a non-lapsing fund allowing for the long-term planning and completion of public art projects (1989); the individual artist fellowship program to recognize and honor exceptionally talented visual and performing artists (1993); and the Hawaii state art museum, which opened in the fall of 2002 with three galleries featuring artworks from the art in public places collection.

In 2008, foundation grants comprised $249,000 in state general funds and generated matching funds of $1,026,000 from private, federal, and other sources. Artists in the schools received $215,000 in general funds and $225,000 in private matching funds. Arts first received $640,391 in state funding and $1,828,963 in private and federal funds. These three programs alone generated $3,079,963 in non-state revenue to match $1,104,391 in state support. It is estimated that these grants partially funded more than 2,300 tax-paying jobs and resulted in arts organizations attracting more than $12,000,000 to the State's economy.

The legislature is concerned that cuts in either program funding or personnel to support these programs will have a widespread detrimental effect on Hawaii's diverse array of culture and arts network of artists, performing arts organizations, museums, galleries and art retailers, ethnic neighborhoods, entertainers, musicians, and school arts programs throughout the State. In addition, Hawaii's unique cultural and arts offerings play an important role in enhancing the Hawaii visitor experience and maintaining a steady flow of visitors to Hawaii's shores from the mainland and overseas.

The state foundation on culture and the arts is also the designated arts agency for partnership with the National Endowment for the Arts, and in its forty-four-year association, the foundation has consistently met the National Endowment for the Arts criteria to receive and distribute federal funds. The legislature is concerned that the loss of foundation staff may jeopardize the foundation's ability to satisfactorily meet federal requirements, which could result in the foundation losing its status as the National Endowment for the Arts partner and eliminate the largest source of public funding for arts in the State.

The purpose of this Act is to enhance the fiscal stability of the state foundation on culture and the arts by authorizing use of the works of art special fund to fund the position costs of the executive director of the state foundation on culture and the arts and grants-making and contracts administration employees of the foundation, for a five‑year period.

SECTION 2. Section 103-8.5, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (b) to read:

"(b) The works of art special fund shall be used solely for the following purposes:

(1) Costs related to the acquisition of works of art, including any consultant or staff services required to carry out the art in public places and relocatable works of art programs;

(2) Site modifications, display, and interpretive work necessary for the exhibition of works of art;

(3) Upkeep services, including maintenance, repair, and restoration of works of art;

(4) Storing and transporting works of art[.]; and

(5) Paying the personnel costs of administrative, grants, and contracts personnel of the foundation hired pursuant to chapter 9."

2. By amending subsections (d), (e), and (f) to read:

"(d) The comptroller and the state foundation on culture and the arts shall decide on the specific art objects to acquire, giving first consideration to placing appropriate pieces of art at the locations of the original appropriation.

The selection of, commissioning artists for, reviewing of design, execution, and placement of, and the acceptance of works of art shall be the responsibility of the [~~comptroller and the~~] state foundation on culture and the arts in consultation with the affected agency or department.

Expenditures from the works of art special fund shall be made by the comptroller.

(e) The comptroller shall:

(1) Provide each agency receiving capital improvement appropriations with information regarding items that shall be included [~~and excluded from~~] in the one per cent amount;

(2) Ensure that each agency calculates its one per cent amount correctly; and

(3) Ensure that each agency transfers the correct amount to the works of art special fund in a timely manner.

(f) The comptroller and the executive director shall track amounts due from each agency under the one per cent requirement as provided in this section[.] and shall report the information required under this subsection and subsection (c) annually to the governor and the legislature."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2050; provided that the amendments made to section 103-8.5(b), Hawaii Revised Statutes, shall be repealed on June 30, 2015, and section 103-8.5(b), Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the effective date of this Act.

THE SENATE	S.B. NO.	2143
TWENTY-FIFTH LEGISLATURE, 2010		S.D. 1
STATE OF HAWAII