(a) The art in public places fund is established. The council shall manage the fund.

(b) The commissioner of a department responsible for the design and construction of a building or facility shall deposit into the art in public places fund one percent of the construction cost of a building or facility if the building or facility is exempt from the requirements of AS 35.27 and the exemption is because

(1) the estimated construction cost of the building or facility is less than $250,000; or

(2) the building or facility is not designed for substantial public use.

(c) The council may use the money in the art in public places fund

(1) to commission or purchase a work of art that is to be made a permanent part of, or placed on loan in, a building or facility owned or leased by the state that has substantial public use; and

(2) to meet expenses for a commissioned work of art for a building or facility that has substantial public use if the cost of the work of art exceeds the amount reserved under AS 35.27.020(c).

(d) In (c) of this section, “building” or “facility” means

(1) a building or facility of the state, as defined by AS 35.27.030, that is designed for and that is subject to substantial public use; and

(2) a building or facility that is leased by the state and subject to substantial public use.

(e) Except as provided in (f) and (g) of this section, an artist's submission made in response to an inquiry or solicitation initiated by the council under this section is confidential and not subject to public inspection or disclosure under AS 40.25.100 - 40.25.295 (Alaska Public Records Act).

(f) If the council awards a commission for an artist's submission that is confidential under (e) of this section, the submission is no longer confidential and the council shall disclose the submission to any person who requests the disclosure. If the council does not award a commission for the submission, the council shall notify the artist and return the submission at the artist's request.

(g) The provisions of (e) and (f) of this section do not apply to an artist's submission if the council finds that the artist

(1) created the submission as a work made for hire, as that term is defined in 17 U.S.C. 101; or

(2) has transferred the artist's copyright for the work under 17 U.S.C. 204.