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HB 326: "An Act requiring a legislator to abstain from voting on questions affecting an enterprise if the legislator or member of the legislator's immediate family has a substantial financial interest in the enterprise, and requiring a legislator to refrain from taking or withholding official action or exerting official influence in certain matters in which the legislator's action or influence could benefit or harm another person; adding a definition of 'financial interest' to the Legislative Ethics Act; making this Act conditionally effective; and providing for an effective date."

00 HOUSE BILL NO. 326 01 "An Act requiring a legislator to abstain from voting on questions affecting an 02 enterprise if the legislator or member of the legislator's immediate family has a 03 substantial financial interest in the enterprise, and requiring a legislator to refrain from 04 taking or withholding official action or exerting official influence in certain matters in 05 which the legislator's action or influence could benefit or harm another person; adding a 06 definition of 'financial interest' to the Legislative Ethics Act; making this Act 07 conditionally effective; and providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 24.60.030(e) is amended to read: 10 (e) A legislator may not directly, or by authorizing another to act on the 11 legislator's behalf, 12 (1) agree to, threaten to, or state or imply that the legislator will take or 13 withhold a legislative, administrative, or political action, including support for or

01 opposition to a bill, employment, nominations, and appointments, as a result of a 02 person's decision to provide or not provide a political contribution, donate or not 03 donate to a cause favored by the legislator, or provide or not provide a thing of value; 04 (2) state or imply that the legislator will perform or refrain from 05 performing a lawful constituent service as a result of a person's decision to provide or 06 not provide a political contribution, donate or not donate to a cause favored by the 07 legislator, or provide or not provide a thing of value; or 08 (3) except as provided in (g) of this section or while participating 09 in a public discussion or debate [UNLESS REQUIRED BY THE UNIFORM 10 RULES OF THE ALASKA STATE LEGISLATURE], take or withhold official 11 action or exert official influence that could substantially benefit or harm the financial 12 interest of another person 13 (A) by [WITH] whom the legislator is employed; 14 (B) with whom the legislator is negotiating for employment; 15 or 16 (C) from whom the legislator has received more than 17 $10,000 of income within the immediately preceding 12-month period. 18 * Sec. 2. AS 24.60.030(g) is amended to read: 19 (g) A [UNLESS REQUIRED BY THE UNIFORM RULES OF THE 20 ALASKA STATE LEGISLATURE, A] legislator may not vote on a question if the 21 legislator or a member of the legislator's immediate family has a financial [AN 22 EQUITY OR OWNERSHIP] interest in a business, investment, real property, lease, or 23 other enterprise if the interest is substantial and the effect on that interest of the action 24 to be voted on is greater than the effect on a substantial class of persons to which the 25 legislator or the family member, whichever one has the financial interest, belongs 26 as a member of a profession, occupation, industry, or region. However, 27 notwithstanding (e)(3) of this section and the limitations of this subsection, a 28 legislator may vote on an appropriation bill that meets the requirements of 29 AS 37.07.020(a) or 37.07.100 (Executive Budget Act). 30 * Sec. 3. AS 24.60.030(j) is amended to read: 31 (j) In this section,

01 (1) "administrative hearing" means a quasi-judicial hearing before an 02 agency; "administrative hearing" does not include an informal conference or review 03 held by an agency before a final decision is issued or a rate-making proceeding or 04 other nonadjudicative public hearing; 05 (2) "substantially benefit or harm" means the effect on the 06 person's financial interest is greater than the effect on the financial interest of a 07 substantial class of persons to which the person belongs as a member of a 08 profession, occupation, industry, or region. 09 * Sec. 4. AS 24.60.990(a) is amended by adding a new paragraph to read: 10 (17) "financial interest" means ownership of an interest or an 11 involvement in a business, including a property ownership, or a professional or private 12 relationship, that is a source of income, or from which, or as a result of which, a 13 person has received or expects to receive a financial benefit. 14 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 CONDITIONAL EFFECT. This Act takes effect only if Rule 34(b), Uniform Rules of 17 the Alaska State Legislature, is amended to require a member to request to abstain from 18 voting when the member reasonably believes that casting a vote would violate AS 24.60 19 (Legislative Ethics Act), and allowing a member's abstention to be approved by a majority 20 vote. 21 * Sec. 6. If, under sec. 5 of this Act, this Act takes effect, it takes effect on the later of the 22 effective date of the amendment made to Rule 34(b), Uniform Rules of the Alaska State 23 Legislature, as described in sec. 5 of this Act or on the date described in AS 01.10.070(c).