Legislature(2007 - 2008)HOUSE FINANCE 519

03/31/2008 01:30 PM House FINANCE


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01:45:39 PM Start
01:47:10 PM HB368
02:33:17 PM HB281
03:12:34 PM 1 - KEEPING THE BEVERAGE RECEIPTS || 2 – THE ISSUE OF THE STATUTES OF LIMITATIONS
03:27:44 PM HB366
03:54:09 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 281 CAMPAIGN FINANCE COMPLAINTS TELECONFERENCED
Heard & Held
+ HB 366 DISCLOSURE : APPROPRIATIONS FROM PFD FUND TELECONFERENCED
Heard & Held
+ HB 368 ETHICS: LEGISLATIVE & GOV/LT GOV TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
1:47:10 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 368                                                                                                            
                                                                                                                                
     An  Act  modifying  the limitations  on  political  fund                                                                   
     raising  during legislative  sessions by candidates  for                                                                   
     governor  or for lieutenant  governor, and  amending the                                                                   
     Legislative  Ethics  Act  to modify  the  limitation  on                                                                   
     political  fund raising by  legislators and  legislative                                                                   
     employees   during   legislative  sessions,   to   allow                                                                   
     legislators and legislative  employees to accept certain                                                                   
     gifts  from lobbyists within  their immediate  families,                                                                   
     to clarify  the Legislative Ethics Act as  it relates to                                                                   
     legislative  volunteers  and  educational  trainees,  to                                                                   
     reduce the frequency of publication  of summaries by the                                                                   
     Select  Committee  on  Legislative   Ethics,  to  revise                                                                   
     procedures and  penalties related to the  late filing of                                                                   
     disclosures required by the  Legislative Ethics Act, and                                                                   
     to add a definition to that Act.                                                                                           
                                                                                                                                
MIKE SICA, STAFF, REPRESENTATIVE BOB LYNN, introduced the                                                                       
legislation & Ms. Joyce Anderson from the Select Committee                                                                      
on Legislative Ethics.                                                                                                          
                                                                                                                                
JOYCE   ANDERSON,   ADMINISTRATOR,    SELECT   COMMITTEE   ON                                                                   
LEGISLATIVE ETHICS,  advised that the State  Ethics Committee                                                                   
had recommended  and requested  that the House  State Affairs                                                                   
Committee bring  the bill forward.  The  legislation contains                                                                   
recommendations  by  the  Committee  &  provides  a  clean-up                                                                   
measure from HB 109, the major ethics bill last year.                                                                           
                                                                                                                                
   ·    Section 1                                                                                                               
                                                                                                                                
Section  1  addresses  campaigning while  in  a  municipality                                                                   
where the session  is being convened, presently,  stating the                                                                   
"capital  city".  She  noted that  following discussion,  the                                                                   
Ethics  Committee   determined  that   there  should   be  no                                                                   
campaigning  in the place  where the  legislative session  is                                                                   
being held.                                                                                                                     
                                                                                                                                
1:49:10 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault addressed the  issue of whether campaigning                                                                   
comes into play  within 90-days of a special  session or only                                                                   
the primary general election.   Ms. Anderson explained during                                                                   
a   regular   session,  legislators   are   prohibited   from                                                                   
campaigning and  that 90-days of a primary  election, becomes                                                                   
the  start  point  for  the 90-days.    Within  that  period,                                                                   
legislators are  allowed to send solicitation  letters & hold                                                                   
fund  raisers   but  not  the   legislators  living   in  the                                                                   
municipality, where special session is to be held.                                                                              
                                                                                                                                
Co-Chair Chenault  asked if any  legislator would  be allowed                                                                   
to  have a  fund  raiser  while in  the  capital  city.   Ms.                                                                   
Anderson said yes as long as it  is not convened in the place                                                                   
of that session.                                                                                                                
                                                                                                                                
1:51:29 PM                                                                                                                    
                                                                                                                                
   ·    Section 2                                                                                                               
                                                                                                                                
Ms.  Anderson explained  that  Section 2  addresses the  gift                                                                   
statute,  which   the  Select  Committee  recommends   to  be                                                                   
relaxed.  Last  year a section was inserted,  prohibiting any                                                                   
gifts from lobbyists unless it  fits into certain exceptions.                                                                   
She  pointed  out  that  statute   affects  some  spouses  of                                                                   
lobbyists.   The  language  proposed  in Section  2  provides                                                                   
clean-up language  allowing gift  exchange for that  class of                                                                   
employee.  She  pointed out that legislators  are not allowed                                                                   
to have spouses that are registered lobbyists.                                                                                  
                                                                                                                                
Ms. Anderson  continued, language was  added to Page  2, Line                                                                   
30, "a contribution to a charity  event", attempting to place                                                                   
all   exceptions   regarding   lobbyists   into   one   area.                                                                   
Additional language  was added to (d) & (e)  from other parts                                                                   
of  statute,  loosening  gift  restrictions  from  lobbyists,                                                                   
placing all other restrictions into that section as well.                                                                       
                                                                                                                                
1:53:37 PM                                                                                                                    
                                                                                                                                
Representative  Joule   referenced  Section   1,  reiterating                                                                   
concerns  about  fundraising   in  the  capital  city.    Ms.                                                                   
Anderson  stressed that  would not be  okay.   Representative                                                                   
Joule stressed  that the three legislators from  Juneau would                                                                   
not have a level  playing field with other  legislators.  Ms.                                                                   
Anderson agreed.                                                                                                                
                                                                                                                                
Representative  Nelson  commented  that  is a  disservice  to                                                                   
those  constituents.   Ms. Anderson  referenced the  campaign                                                                   
year  which three  special sessions  happened  in which  many                                                                   
concerns  were voiced  by the  Juneau  legislators, who  were                                                                   
unable to campaign during those sessions.  It was an issue.                                                                     
                                                                                                                                
Representative  Nelson  worried  that  the  proposed  special                                                                   
session could last up to 60-days,  reiterating the challenges                                                                   
to  the  local  legislators  in   the  area.    Ms.  Anderson                                                                   
clarified that  only those covered by the  Legislative Ethics                                                                   
Acts would be prohibited from campaigning.                                                                                      
                                                                                                                                
Representative  Nelson inquired if  the sponsor was  amenable                                                                   
to  amending that  language.   Mr.  Sica  requested that  Ms.                                                                   
Anderson explain  the intent of  that section.   Ms. Anderson                                                                   
stated  that  the  intent  was   to  prohibit  fund  raising,                                                                   
preventing the appearance  of impropriety.  She  did not know                                                                   
a "good  amendment" to address  the concern but  acknowledged                                                                   
the unfair playing field.                                                                                                       
                                                                                                                                
Co-Chair Meyer agreed with the  need level the playing field,                                                                   
however,    worried    about   fund    raising    activities.                                                                   
Representative  Nelson  mentioned   what  could  happen  when                                                                   
special  sessions occur  in  other cities;  she  asked if  it                                                                   
would apply to  Anchorage legislators when it  happens there.                                                                   
Ms. Anderson restated  that nothing can occur  in any borough                                                                   
of the place where the session is being held.                                                                                   
                                                                                                                                
1:57:59 PM                                                                                                                    
                                                                                                                                
Representative  Joule  interjected that  the  issue is  short                                                                   
sighted.    Co-Chair  Chenault  directed  comments  regarding                                                                   
"any"  municipality and  asked  if Juneau  legislators  could                                                                   
campaign and  fund raise in Douglas.   Ms. Anderson  read the                                                                   
definition of municipality:                                                                                                     
                                                                                                                                
   "A political  subdivision incorporated  under the  laws                                                                      
   of the State  that is a home rule or general  law city,                                                                      
   a  home  rule or  general  law  borough, or  a  unified                                                                      
   municipality".                                                                                                               
                                                                                                                                
Representative  Thomas recommended  considering an  amendment                                                                   
that  if  the  Legislature  called  themselves  into  special                                                                   
session,  then any  legislator  would not  be  able to  raise                                                                   
money; however,  if the Governor called the  special session,                                                                   
it would  be difficult.   He  pointed out  that most  special                                                                   
session issues  are related to  oil.  Ms. Anderson  commented                                                                   
on past legislation,  which provides an exemption  for Juneau                                                                   
legislators.    Representative  Thomas  recommended  language                                                                   
specific to the location of the special session.                                                                                
                                                                                                                                
2:01:52 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  pointed out  that the Juneau  legislators                                                                   
have not  requested the addition  of changed language  to the                                                                   
current ethic standards.                                                                                                        
                                                                                                                                
2:04:07 PM                                                                                                                    
                                                                                                                                
Representative  Crawford echoed  the sentiments expressed  by                                                                   
Representative  Joule and  recommended that  an exemption  be                                                                   
made for  local legislators.   Co-Chair Meyer  encouraged Ms.                                                                   
Anderson  to   provide  the   appropriate  language   for  an                                                                   
amendment.                                                                                                                      
                                                                                                                                
Mr. Sica  pointed out that  Representative Lynn  was carrying                                                                   
the  bill on  behalf  of the  House State  Affairs  Committee                                                                   
(HSA)  and that  the Legislative  Ethics  Committee would  do                                                                   
whatever is advised by them.                                                                                                    
                                                                                                                                
2:05:29 PM                                                                                                                    
                                                                                                                                
Representative  Gara emphasized that  having a rule  in place                                                                   
which  limits three  of  the sixty  legislators  is "not  the                                                                   
right  thing to  do", maintaining  that  what happens  during                                                                   
special session should  apply to all legislators.   The rules                                                                   
should be the same for everyone.                                                                                                
                                                                                                                                
Co-Chair Meyer  questioned if  it was  okay to make  campaign                                                                   
phone calls  from a hotel room.   Ms. Anderson  explained the                                                                   
legislator is prohibited from  raising funds during a regular                                                                   
session; however, during a special  session, a legislator can                                                                   
campaign as  long as it  is not in  the place of  the capital                                                                   
city.  The treasurer of each campaign  would still be able to                                                                   
make the phone calls or send out  a fund raising solicitation                                                                   
letter.                                                                                                                         
                                                                                                                                
Vice-Chair Stoltze recommended  the query be addressed by the                                                                   
Alaska  Public  Office  Commission  (APOC)  rather  than  the                                                                   
Legislative Ethics  Committee.   Ms. Anderson responded  that                                                                   
the   ethics  code   covers   legislators   with  regard   to                                                                   
campaigning and APOC covers the filing of campaign reports.                                                                     
                                                                                                                                
2:09:33 PM                                                                                                                    
                                                                                                                                
Representative  Gara  agreed with  Co-Chair  Meyer  regarding                                                                   
telephone calls,  however, maintained that the  playing field                                                                   
would  not be  level and  that the  capital city  legislators                                                                   
would  not be  able to  leave  on the  weekends to  undertake                                                                   
their campaigning.  Co-Chair Meyer  agreed it is a gray area.                                                                   
                                                                                                                                
Co-Chair Chenault  realized that the bill is  complex and has                                                                   
unintended consequences  from the one  passed last year.   He                                                                   
mentioned  the APOC  disclosure  issues.   He noted  concerns                                                                   
brought  forward   from  his  district  regarding   recording                                                                   
requirements,  an  issue which  could  over-step  legislative                                                                   
bounds.  He agreed that ethics  concerns should be tightened.                                                                   
                                                                                                                                
2:12:11 PM                                                                                                                    
                                                                                                                                
Ms. Anderson continued:                                                                                                         
                                                                                                                                
   ·    Section 3                                                                                                               
                                                                                                                                
Ms. Anderson stated there was  no change in Section 3, except                                                                   
that it  splits the  statute.  The  split language  was moved                                                                   
into the next section.                                                                                                          
                                                                                                                                
   ·    Section 4                                                                                                               
                                                                                                                                
Ms. Anderson stated that Section  4 restructures language for                                                                   
the  Act  as   it  relates  to  legislative   volunteers  and                                                                   
trainees.                                                                                                                       
                                                                                                                                
   ·    Section 5                                                                                                               
                                                                                                                                
Ms.  Anderson  pointed out  that  currently in  statute,  the                                                                   
Committee  is supposed  to  publish semiannual  summaries  of                                                                   
complaint &  advisory decisions.   To date that has  not been                                                                   
happening.   The  Committee  recommends  that requirement  be                                                                   
changed to  only annual  reports, corresponding  with current                                                                   
procedures.  There is a procedure  in place guaranteeing that                                                                   
the information does  get out.  The publication  is a booklet                                                                   
assembled by the Committee and  provided to the House Clerk &                                                                   
Senate Secretary.                                                                                                               
                                                                                                                                
   ·    Section 6                                                                                                               
                                                                                                                                
Ms.  Anderson  noted  that  Section  6  speaks  to  the  fine                                                                   
structure.  At  present time, there are two  fine; the first,                                                                   
$25  dollars for  the inadvertent  late filing  of an  ethics                                                                   
disclosure  &  the second,  a  $2 dollar  a  day  fine for  a                                                                   
maximum  of   up  to  $100   dollars.    The   Committee  has                                                                   
recommended a third  fine structure for willful  late fees in                                                                   
the amount of  $100 dollars per day, not exceeding  a maximum                                                                   
of $2,500 dollars.                                                                                                              
                                                                                                                                
2:15:41 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
PUBLIC TESTIMONY CLOSED                                                                                                         
                                                                                                                                
                                                                                                                                
2:16:07 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer referenced Section  1, proposing amendments to                                                                   
address  the  legislators  affected  by  the  area  of  where                                                                   
special sessions  are held.   He requested that  Ms. Anderson                                                                   
provide the research on that concern.                                                                                           
                                                                                                                                
Representative  Gara emphasized that  the language  should be                                                                   
worded to cover only special session  and not regular session                                                                   
and maintained  that no legislator  should fund  raise during                                                                   
regular session.  He asked about  a wedding that happened for                                                                   
a staff person and if gifts less  than $250 dollars should be                                                                   
reported.   Ms. Anderson responded  that a person  is allowed                                                                   
to receive a gift up to $250 dollars,  given their connection                                                                   
to legislative status.   If not connected to that,  such as a                                                                   
wedding, the gift could exceed  the $250 dollar amount.  If a                                                                   
group of individuals got together  to purchase a gift and the                                                                   
value of that gift exceeded $250 dollars, it would be okay.                                                                     
                                                                                                                                
2:18:59 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault MOVED to ADOPT  Amendment 1, 25-LS1326\V.1,                                                                   
Wayne, 3/28/08.   Co-Chair Meyer OBJECTED for  the purpose of                                                                   
discussion.                                                                                                                     
                                                                                                                                
Co-Chair   Chenault  explained   that  the  amendment   would                                                                   
prohibit members  of the Select Committee from  being able to                                                                   
file  complaints.   He stated  that members  from either  the                                                                   
Ethics  Committee  or APOC  should  not  be  able to  file  a                                                                   
complaint on the complaint.                                                                                                     
                                                                                                                                
Co-Chair Meyer asked the number  of members that serve on the                                                                   
Ethics Committee.   Ms.  Anderson replied  that two  from the                                                                   
House and  two from the Senate,  one minority and one  from a                                                                   
bi-partisan working group serve on the Committee.                                                                               
                                                                                                                                
Representative Gara  asked if at this time, a  member files a                                                                   
complaint, would  they then be exempt from  making a decision                                                                   
on that  complaint.  Ms.  Anderson explained that  the Ethics                                                                   
Committee  would   file  the  complaint  on   behalf  of  the                                                                   
Committee; individuals  do not file complaints.   She did not                                                                   
understand the amendment.                                                                                                       
                                                                                                                                
Representative  Gara   advised  that  the  language   of  the                                                                   
amendment  would   prohibit  the  Committee  from   filing  a                                                                   
complaint, which  he thought was  contrary to the  purpose of                                                                   
APOC.   There are  essentially two  types of complaints,  the                                                                   
first filed by a "watch-dog" committee.   The amendment could                                                                   
make the two committees close to "toothless".                                                                                   
                                                                                                                                
2:22:38 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault  countered that under the  amendment, staff                                                                   
of either committee  could still file a complaint.   Co-Chair                                                                   
Meyer  asked if  a member  finds a  violation, could  another                                                                   
legislator bring  it forward.   Co-Chair Chenault  understood                                                                   
that currently  that could  happen.   Under the amendment,  a                                                                   
member  of  the  Committee  would  not  be  able  to  file  a                                                                   
complaint but their staff member could.                                                                                         
                                                                                                                                
2:23:50 PM                                                                                                                    
                                                                                                                                
Representative Gara  referenced Section 2, pointing  out that                                                                   
in  current law,  the  Committee  can initiate  a  complaint,                                                                   
while the amendment  states the opposite.   Co-Chair Chenault                                                                   
stated  that   the  correct  wording   was  "or   take  other                                                                   
appropriate action".   Ms. Anderson interjected  that Section                                                                   
2 only  refers to the  State benefit  and loan program.   She                                                                   
agreed with Representative Gara  that removing that language,                                                                   
if the  Committee determines  unfair and improper  influence,                                                                   
the  matter  would  be referred  to  the  Attorney  General's                                                                   
office.  The other appropriate  action would be the Committee                                                                   
initiating a complaint.                                                                                                         
                                                                                                                                
Ms. Anderson  referenced  that under Section  8, regarding  a                                                                   
complaint initiated  by anyone  other than the  Committee and                                                                   
pointed out that  in the past couple years,  fewer complaints                                                                   
had  been filed  by  the public  than  in the  past,  perhaps                                                                   
because  the Federal Bureau  of Investigation  (FBI)  and the                                                                   
federal  government's  involvement  in  some of  the  current                                                                   
statewide issues.   The Ethics  Committee has  initiated some                                                                   
complaints in the past year.                                                                                                    
                                                                                                                                
Ms.  Anderson thought  to  not allow  the  Committee to  file                                                                   
complaints,  could tie  their  hands.   The  way the  statute                                                                   
reads, if proven true, there could be a violation.                                                                              
                                                                                                                                
2:29:26 PM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault commented  that if  the Committee  has the                                                                   
ability  to recommend  and also  be the "judge  and jury"  of                                                                   
that  complaint,  the  result   could  be  troublesome.    He                                                                   
recommended reviewing the amendment for the next meeting.                                                                       
                                                                                                                                
Co-Chair Chenault WITHDREW Amendment 1.                                                                                         
                                                                                                                                
2:30:33 PM                                                                                                                    
                                                                                                                                
Representative  Gara  stated that  he  opposes  Section 8  as                                                                   
currently  written, which  stipulates that  the committee  or                                                                   
APOC can  not initiate  a complaint.   He agreed  to language                                                                 
indicating that if  a member of that committee  initiates the                                                                   
proceeding, then  the person should  not be part  of deciding                                                                   
that case.                                                                                                                      
                                                                                                                                
Co-Chair Chenault  stated he  proposed the amendment  because                                                                   
it is the correct action to take.                                                                                               
                                                                                                                                
2:31:39 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer MOVED  to ADOPT Amendment 2, Page  5, Line 3 &                                                                   
Line  5, deleting  "willful" and  inserting  "willful".   Co-                                                                   
Chair Chenault OBJECTED.                                                                                                        
                                                                                                                                
Co-Chair  Meyer explained  that Amendment  2 would correct  a                                                                   
typo.  Co-Chair Chenault WITHDREW  his OBJECTION.  Vice-Chair                                                                   
Stoltze pointed out that either spelling was correct.                                                                           
                                                                                                                                
Ms. Anderson  noted that  in the rest  of the Statute,  it is                                                                   
spelled with two "l's".                                                                                                         
                                                                                                                                
2:32:51 PM                                                                                                                    
                                                                                                                                
HB 368 was HELD in Committee for further consideration.                                                                         
                                                                                                                                

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