01/23/1996 01:40 PM House FIN

  HOUSE BILL 241                                                               
                                                                               
       "An Act relating  to the use of a  candidate's campaign                 
       account."                                                               
                                                                               
  REPRESENTATIVE CON BUNDE testified in support of HB 241.  He                 
  explained that the national trend to increase legislator and                 
  candidate accountability was  becoming more  prominent.   He                 
  noted that  citizens who contribute to campaigns, non-profit                 
  organizations, and other causes want to  know how that money                 
  was  expended.  Representative Bunde felt  that HB 241 would                 
  increase candidates accountability and  facilitate increased                 
  public  trust.   The  bill  would  provide  new  choices  to                 
  candidates for the disposal of surplus campaign funds.                       
                                                                               
  Representative  Bunde  added  that  contributions  given  to                 
  candidates before, during  and after campaigns are  given by                 
  people   who   chose   that    candidate's   representation.                 
  Currently, surplus funds can be used  in future campaigns or                 
  taken  as  personal  income.    When  a  person  decides  to                 
  deactivate a campaign,  the disposal of surplus funds  is of                 
  interest   to   the  public,   especially  those   who  have                 
  contributed.  Representative  Bunde noted that HB  241 would                 
  provide for surplus funds to be  given to charity, repaid to                 
  the   contributors,   contributed   to  another   candidate,                 
  political party or  a group supporting a  ballot proposition                 
  or question, or contributed  to the general fund.   He urged                 
  the Committee to support the proposed legislation.                           
                                                                               
  Representative Grussendorf  asked the penalty  for violation                 
  of the proposed legislation.  Representative Bunde responded                 
  that disposal of funds would  fall under jurisdiction of the                 
  Alaska Public Office Commission (APOC).                                      
                                                                               
  BROOKE MILES,  JUNEAU BRANCH  ADMINISTRATOR, REGULATIONS  OF                 
  LOBBYING,   PUBLIC   OFFICES   COMMISSION,   DEPARTMENT   OF                 
  ADMINISTRATION, informed the Committee  that violation could                 
  be punishable either as a criminal  or civil case.  If there                 
  was  a reporting  violation, it  would  be subject  to civil                 
  penalties in the amount  of $10 dollars per day  for failure                 
  to  report dispensation  of the  surplus funds.   Ms.  Miles                 
  added, if the intent was  to circumvent the requirements  of                 
  the law, it would be subject to criminal penalties.                          
                                                                               
  Representative   Therriault  noted   his   support  of   the                 
  legislation.   He questioned  if the  remaining money  could                 
                                                                               
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  legally be used  to set up  a legislator's office  allowance                 
  and   the   system  used   to   account  for   those  funds.                 
  Representative  Bunde referenced  Section E,  HB 241,  which                 
  addresses disposition of  funds.  Those  funds could not  be                 
  used  as personal  income.    Discussion followed  regarding                 
  purchase expenses made by public candidates.  Representative                 
  Bunde  stated  that  any  purchased  item which  exceeds  $5                 
  thousand  dollars   should  be  reported.     Representative                 
  Therriault agreed that a carry forward should not be allowed                 
  in a campaign.   Representative Bunde  pointed out that  the                 
  proposed limitation  would not affect  federal offices; only                 
  the State.                                                                   
                                                                               
  Representative Kohring  asked  what  prompted  the  proposed                 
  legislation.    Representative  Bunde   replied  constituent                 
  concerns which  resulted  last year  from  sixteen  accounts                 
  finishing with more than $20 thousand  dollars in each.  The                 
  public has confidence that their  contributions will be used                 
  for the public service purpose in which it was donated.                      
                                                                               
  Representative Kohring MOVED to report  CS HB 241 (STA)  out                 
  of Committee  with individual  recommendations and with  the                 
  accompanying fiscal  note.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CS  HB 241  (STA) was reported  out of Committee  with a "do                 
  pass" recommendation  and with  a fiscal note  by the  House                 
  Finance Committee.