Legislature(2015 - 2016)BUTROVICH 205
03/12/2015 08:00 AM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB63 | |
| Confirmation Hearing: Commissioner, Department of Military and Veterans Affairs | |
| SB4 | |
| SB24 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | SB 63 | TELECONFERENCED | |
| += | SB 4 | TELECONFERENCED | |
| += | SB 24 | TELECONFERENCED | |
| += | SB 62 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 24-LEGIS. ETHICS ACT: CONTRACTORS, INTERNS
10:21:13 AM
CHAIR STOLTZE announced the consideration of SB 24.
SENATOR BERTA GARDNER, Alaska State Legislature, sponsor of SB
24, explained the bill is a "clean up bill" and is at the
request of the Legislative Ethics Office. About a year ago the
outgoing administrator of Legislative Ethics discovered a
statute that had not been enforced and deemed it needed some
changes.
T.J. PRESLEY, Staff, Senator Berta Gardner, Alaska State
Legislature, provided information on SB 24. Through a routine
advisory opinion process, the Legislative Ethics Administrator
discovered that independent contractors and consultants were
considered legislative employees in statute and were subject to
the ethics code. The statute said that all the requirements of
legislative employees must be levied on the independent
contractors and consultants. He used West Law Dictionary as an
example of a contractor and said it is not practical or feasible
to ask such a contractor or a corporation to fill out the
required paperwork.
He related that in 2012 interns and volunteers were given their
own place in the Ethics Act and now legislation is needed to fix
the problem of the contractors and consultants. The Legislative
Ethics Committee established a subcommittee with Senator Gardner
and Representative Millet to establish legislation that would
fix the problem.
10:25:12 AM
MR. PRESLEY concluded that they came up with a solution that
included a focus on conflicts of interest and unethical conduct.
He referred to recommendations by Legislative Ethics
subcommittee followed when writing SB 24. The bill puts
independent contractors and consultants into their own category
in the Ethics Act, with reasonable, enforceable requirements.
10:26:50 AM
JERRY ANDERSON, Administrator, Legislative Ethics Committee,
provided information on SB 24. He said the bill is the product
of 14 months of meetings. He noted the subcommittee did
extensive work on the bill. He said the bill is important to
delineate the exact sections of the Ethics Act that apply to
contractors. Contractors are not subject to the training
requirements. It is an important bill.
CHAIR STOLTZE asked for the Ethics Committee's opinion of the
bill.
MR. ANDERSON said the Ethics Committee supports the bill.
SENATOR WIELECHOWSKI noted the legislature hires a lot of
consultants. He voiced concern about a consultant who is a
client of the oil industry.
MR. PRESLEY replied that there is contract language in place
regarding unethical conduct. There is an expectation of no
conflict of interest in contract matters. However, enforcement
is another issue.
SENATOR WIELECHOWSKI summarized that the change SB 24 provides
is that contractors would not have to file a financial
disclosure form.
MR. PRESLEY referred to challenges other states have had when
dealing with ethics and subcontractors. He questioned the
problems with determining if contractors are legislature
employees. The Ethic Statutes list what provisions apply to
independent contractors and consultants.
10:33:47 AM
SENATOR GARDNER pointed out that this proposal is not endorsed
by the Ethics Committee as a whole, but by the administrator and
the out-going administrator, by a public member who is an ethics
attorney, and by the chair.
CHAIR STOLTZE asked for something in writing.
SENATOR GARDNER said the Ethics Committee did request the
legislation, but did not take a vote to endorse it.
CHAIR STOLTZE asked for the process in writing.
10:35:03 AM
SENATOR MCGUIRE noted the matrix of other states and she read
from Connecticut's: "For most purposes a consultant is neither a
public nor state official and therefore not subject to the State
Ethics Act." She said another provision applies to contractors
and consultants and prohibits the consultant's use of
confidential information, the acceptance of other state
contracts which would impair their judgement, or the acceptance
or giving of anything of value that influences a consultant's
actions. She said she liked that statement and saw it as getting
to the core of the issue.
She voiced concern about good people not applying for positions
because they don't want to deal with all the filing
requirements. She also had concerns about a consultant's fear of
political ramifications from ethics complaints. She gave an
example of an LB&A chair who might hire an oil and gas
consultant who is targeted with an ethics complaint by
dissatisfied opposition.
10:37:59 AM
SENATOR HUGGINS said he understands the need for ethics
committees, but they don't make dishonest people honest. He
opined it was not the oil and gas industry that had the greatest
conflicts of interest, but workers compensation consultants. He
recommended hiring consultants that are honest.
10:40:11 AM
SENATOR GARDNER summarized that currently contracts and
consultants are subject to the entire ethics code and the bill
tries to keep that which is meaningful and workable and get rid
of what does not work. She concluded, "There is a place that
protects our interest and allows us to move forward in a
meaningful way without creating mountains of data."
CHAIR STOLTZE held SB 24 in committee.