Legislature(2017 - 2018)HOUSE FINANCE 519

04/17/2017 01:30 PM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 4/18/17 at 9:45 AM --
+ HB 124 BENEFIT CORPORATIONS TELECONFERENCED
Heard & Held
+ HB 91 APOC REGISTRATION FEES; LOBBYIST TAX TELECONFERENCED
Heard & Held
+ HB 25 INSURANCE COVERAGE FOR CONTRACEPTIVES TELECONFERENCED
Heard & Held
+ SB 88 AK MENTAL HEALTH TRUST LAND EXCHANGE TELECONFERENCED
Scheduled but Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 91                                                                                                             
                                                                                                                                
     "An  Act relating  to fees  for certain  persons filing                                                                    
     disclosure statements or other  reports with the Alaska                                                                    
     Public  Offices  Commission;  relating   to  a  tax  on                                                                    
     legislative lobbyists;  and providing for  an effective                                                                    
     date."                                                                                                                     
                                                                                                                                
1:34:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SAM KITO,  introduced  HB  91. He  explained                                                                    
that the Alaska Public  Office Commission (APOC) was granted                                                                    
increased receipt authority but  not the statutory authority                                                                    
to  adjust  its  fees.  The   bill  provided  the  statutory                                                                    
authority, a  $50 financial disclosure  form filing  fee per                                                                    
legislative or  public official, a $100  fee for candidates,                                                                    
and a  fee schedule  for lobbyist  registrations based  on a                                                                    
contracted amount.  The fees added up  to approximately $280                                                                    
thousand of additional receipt authority.                                                                                       
                                                                                                                                
CRYSTAL KOENEMAN,  STAFF, REPRESENTATIVE SAM KITO,  read the                                                                    
sectional analysis:                                                                                                             
                                                                                                                                
     Section   1:   Amends  AS   15.13.054.   Administrative                                                                    
     registration fee.  Adds a new  section that  requires a                                                                    
     candidate,  group, or  nongroup  entity to  pay a  $100                                                                    
     registration   fee.  This   does   not  apply   judges,                                                                    
     constitutional  convention delegates,  exempt municipal                                                                    
     candidates,  or  nongroup  entities with  an  operating                                                                    
     budget of $250 or less.                                                                                                    
                                                                                                                                
     Section 2: Amends AS  15.13.390(a). Civil penalty; late                                                                    
     filing   of   required   reports.   Includes   language                                                                    
     referencing the administrative registration fee.                                                                           
                                                                                                                                
     Section  3:  Amends  AS 24.45.041(g)  Include  language                                                                    
     referencing  the  administrative registration  fee  and                                                                    
     removes the  current $250 registration  fee and  sets a                                                                    
     fee of  $350 for a contract  with a value of  less than                                                                    
     $30,000; $650  for a contract  with a value  of between                                                                    
     $30,000 and  $60,000; and  $850 for  a contract  with a                                                                    
     value of over $60,000.                                                                                                     
                                                                                                                                
     Section 4: Amends AS 24.60  to include a new section AS                                                                    
     24.60.238.  Administrative  registration fee.  Requires                                                                    
     legislators,  public  members  or  the  committee,  and                                                                    
     legislative directors  filing financial  disclosures to                                                                    
     pay an administrative registration fee of $50.                                                                             
                                                                                                                                
     Section  5: Amends  24.60.240. Civil  penalty for  late                                                                    
     filing. Allows  APOC to assess  a civil penalty  of not                                                                    
     more  than   $10  a   day  for   failure  to   pay  the                                                                    
     administrative   registration  fee   as  levied   under                                                                    
     section 4 of the bill.                                                                                                     
                                                                                                                                
     Section 6:  Amends 37.03.146(c). Definition  of program                                                                    
     receipts  and  non-general   fund  receipts.  Add  fees                                                                    
    collected by APOC to the list of program receipts.                                                                          
                                                                                                                                
     Section 7: Amends AS 39.50  to include a new section AS                                                                    
     39.50.132  Administrative  registration  fee.  Requires                                                                    
     governors  and  lieutenant governors  filing  financial                                                                    
     disclosures to  pay an administrative  registration fee                                                                    
     of $50.                                                                                                                    
                                                                                                                                
     Section  8:  Civil  penalty; late  filing  of  required                                                                    
     reports. Allows APOC  to assess a civil  penalty of not                                                                    
     more  than   $10  a   day  for   failure  to   pay  the                                                                    
     administrative   registration  fee   as  levied   under                                                                    
     section 7 of the bill.                                                                                                     
                                                                                                                                
     Section  10: Establishes  a January  1, 2018  effective                                                                    
     date.                                                                                                                      
                                                                                                                                
1:40:43 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster noted that  Representative Neuman joined the                                                                    
committee.                                                                                                                      
                                                                                                                                
Co-Chair Foster asked whether the fees were payable online.                                                                     
                                                                                                                                
TOM  LUCAS,  PARALEGAL  II,  ADMINISTRATION,  ALASKA  PUBLIC                                                                    
OFFICES  COMMISSION (APOC),  responded in  the negative  and                                                                    
indicated  that the  reason was  due to  a lack  of funding.                                                                    
Currently,   payments  were   mailed  or   brought  to   the                                                                    
commission's   office.  Co-Chair   Foster   asked  how   the                                                                    
collection  system   worked.  Mr.  Lucas  answered   that  a                                                                    
provision in  the legislation required payment  on or before                                                                    
registration.                                                                                                                   
                                                                                                                                
Representative Kawasaki  asked what  amount of  funding APOC                                                                    
needed to operate each year.  Mr. Lucas was unable to answer                                                                    
the question  due to lost  positions caused by the  last two                                                                    
fiscal year's budget cuts. He  noted that the commission was                                                                    
"struggling to hire a data person."                                                                                             
                                                                                                                                
1:44:08 PM                                                                                                                    
                                                                                                                                
Representative  Kito replied  that  APOC's  FY17 budget  was                                                                    
$1.05  million. He  detailed that  $800 million  was general                                                                    
funds (GF)  and $245 thousand in  program receipt authority.                                                                    
However,  the   current  statutory  authority   for  program                                                                    
receipts was limited to $107 thousand.                                                                                          
                                                                                                                                
Representative   Kawasaki   asked   in  regards   to   APOCs                                                                    
historical budget,  what the highest  level of  full funding                                                                    
was.  Ms. Koeneman  replied that  in  FY 15  the budget  was                                                                    
approximately $1.3  million GF resulting in  actuals of $1.1                                                                    
million GF and $119 thousand in program receipts.                                                                               
                                                                                                                                
Representative  Kawasaki  asked  whether the  bill  impacted                                                                    
"representational"  lobbyists. Representative  Kito answered                                                                    
in the  negative and added that  a fee was also  not charged                                                                    
to volunteer lobbyists.  Representative Kawasaki appreciated                                                                    
the bracketing  for lobbyist  fees, which  he thought  was a                                                                    
fairer  system.  He  suggested a  smaller  fee  bracket  for                                                                    
lobbyists  making a  very small  fee. He  asked whether  the                                                                    
fiscal  note reflected  the fee  brackets. Ms.  Koeneman was                                                                    
aware that  APOC was working  on a revised fiscal  note. She                                                                    
added that  the fiscal note  from the Department  of Revenue                                                                    
(DOR)  FN  2 (REV)  was  no  longer  applicable due  to  the                                                                    
changes in the House State Affairs Committee version.                                                                           
                                                                                                                                
Representative  Guttenberg commented  that  he thought  APOC                                                                    
had  suffered from  budget cuts.  He  wondered whether  APOC                                                                    
differentiated   between   program   receipts   and   fines.                                                                    
Representative Kito replied that  currently the only program                                                                    
receipts available  were the  lobbying registration  fees of                                                                    
$250 and were used for  the commission's work. The penalties                                                                    
that were  assessed by APOC  were deposited into the  GF and                                                                    
were  not used  to  support  the commission.  Representative                                                                    
Guttenberg  asked whether  the additional  fees in  the bill                                                                    
were program receipts. Representative  Kito responded in the                                                                    
affirmative.  Representative  Guttenberg asked  whether  the                                                                    
program  receipts resulting  from the  bill would  cover the                                                                    
additional administrative  costs or  were more  available to                                                                    
cover  other APOC  functions. Representative  Kito responded                                                                    
that the  legislation allowed for a  slightly higher receipt                                                                    
authority in  anticipation of the same  budget. He indicated                                                                    
that the objective  was for APOC to  eventually hire another                                                                    
person with  policy experience  to address  lobbying issues.                                                                    
He  wanted the  commission  to  ultimately strengthen  their                                                                    
mission.                                                                                                                        
                                                                                                                                
1:50:24 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Gara  asked what  proportion  of  the fess  were                                                                    
generated  from  lobbying  and what  proportion  from  other                                                                    
fees.  Representative  Kito  was   uncertain  of  the  exact                                                                    
percentages  but  relayed that  a  much  higher portion  was                                                                    
received  from  lobbying and  a  much  smaller portion  from                                                                    
candidate and financial disclosure fees.                                                                                        
                                                                                                                                
Ms. Koeneman  shared that an  updated fiscal note  from APOC                                                                    
was not available. However, she  confirmed that the previous                                                                    
fiscal  note  reported that  APOC  expected  to receive  $15                                                                    
thousand  from  candidates,  $18 thousand  from  groups,  $3                                                                    
thousand   from  entities,   $67.6   thousand  from   public                                                                    
officials,  and   $3  thousand  from   legislators  totaling                                                                    
$106,600.  The figure  did not  included  the $120  thousand                                                                    
from lobbying. Vice-Chair Gara  had received complaints from                                                                    
school  board members  and  "public  officials from  smaller                                                                    
governmental  entities" that  they  had to  comply with  the                                                                    
same  reporting  requirements  as  legislators.  He  queried                                                                    
whether the entities were subject  to the fees. Ms. Koeneman                                                                    
responded  in   the  affirmative.   She  offered   that  she                                                                    
completed a  historical review of  the genesis of  APOC. The                                                                    
commission  was established  via a  citizens' initiative  in                                                                    
1974 and  was upheld by  a court decision,  which determined                                                                    
that the citizens  had the right to know  whether a conflict                                                                    
of interest  existed with any  elected official,  "no matter                                                                    
how  great or  small"  the position.  Vice-Chair Gara  asked                                                                    
whether  the  financial   disclosures  included  information                                                                    
regarding sources  of income  and investments.  Ms. Koeneman                                                                    
responded in the affirmative.                                                                                                   
                                                                                                                                
Vice-Chair  Gara commented  that  the reporting  requirement                                                                    
became more stringent after  the 2006 legislative corruption                                                                    
issue. He did  not agree with charging  school board members                                                                    
for  financial  disclosure  reporting.  Representative  Kito                                                                    
responded that the  fees were a legislative  policy call. He                                                                    
elaborated  that  some  of the  financial  disclosures  were                                                                    
reviewed  and  reported  on  and  he  wanted  the  reporting                                                                    
supported  by fees.  Currently,  the  Division of  Elections                                                                    
charged  a  $30  registration  fee  for  its  administrative                                                                    
costs. Campaigns  and candidates were currently  not charged                                                                    
an APOC fee.                                                                                                                    
                                                                                                                                
1:54:54 PM                                                                                                                    
                                                                                                                                
Representative  Neuman asked  whether APOC  was planning  to                                                                    
hire additional personnel in the  future. Mr. Lucas answered                                                                    
that APOC was currently seeking  an individual to fill an IT                                                                    
position. Representative  Neuman asked whether  the position                                                                    
was  funded   but  unfilled.  Mr.   Lucas  replied   in  the                                                                    
affirmative.                                                                                                                    
                                                                                                                                
Representative Neuman referred to FN  2 (REV) and noted that                                                                    
DOR  would  have  to  alter its  tax  management  system  to                                                                    
accommodate  the fee  collection and  wondered how  it would                                                                    
integrate  into  the  department's existing  tax  collection                                                                    
system.  He  wondered  whether   HB  91  created  additional                                                                    
administrative  costs  for  the  department.  Representative                                                                    
Kito recounted  that the State Affairs  Committee discovered                                                                    
complications with implementing  a tax instead of  a fee. In                                                                    
response,   the  committee   substitute   removed  the   tax                                                                    
component, which  eliminated the need for  DOR's fiscal note                                                                    
and  a forthcoming  updated APOC  fiscal note  would reflect                                                                    
the change from a tax  to a fee. Representative Neuman asked                                                                    
whether  the APOC  fee collection  could be  integrated into                                                                    
DOR's tax  system. Representative Kito relayed  that another                                                                    
issue identified with  a tax was the  inability to designate                                                                    
the  revenue  to  APOC.  He   preferred  to  leave  the  tax                                                                    
component  out  of  the  bill due  to  the  difficulties  of                                                                    
administering a  dedicated tax  and ensuring  APOC's receipt                                                                    
authority from the fee revenue.                                                                                                 
                                                                                                                                
1:59:25 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton  had a question  on page  1, line 11  of the                                                                    
bill and read the following:                                                                                                    
                                                                                                                                
     …a candidate  shall pay an  administrative fee  of $100                                                                    
     to  the commission  when the  candidate files  the name                                                                    
     and  address  of  the  candidate's  campaign  treasurer                                                                    
     under AS 15.13.060(c).                                                                                                     
                                                                                                                                
Co-Chair Seaton assumed that the  fee was in addition to the                                                                    
fee  charged by  the Division  of Elections.  Representative                                                                    
Kito responded in the affirmative.                                                                                              
                                                                                                                                
Co-Chair  Seaton  asked  whether  the  fee  applied  if  the                                                                    
candidate  was acting  as her  own  campaign treasurer.  Ms.                                                                    
Koeneman  responded that  all  candidates  were required  to                                                                    
register  with  APOC  and  pay   the  fee  regardless  if  a                                                                    
candidate  was  acting  as  their  own  treasurer.  Co-Chair                                                                    
Seaton   wondered   whether   the  provision   was   written                                                                    
adequately  to ensure  that a  candidate acting  as his  own                                                                    
treasurer  was  required  to  pay   the  fee.  Ms.  Koeneman                                                                    
responded that  AS 15.13.060 (a)  required the  candidate or                                                                    
group to designate a campaign treasurer.                                                                                        
Co-Chair Seaton referred  to page 3, Section 4  and read the                                                                    
following:                                                                                                                      
                                                                                                                                
     A person  required to report  under this  chapter shall                                                                    
     pay an  administrative registration  fee of $50  to the                                                                    
     Alaska Public  Offices Commission each year  in which a                                                                    
     report is due.                                                                                                             
                                                                                                                                
Co-Chair  Seaton  queried  whether   the  fee  included  the                                                                    
candidate.  He cited  page 3,  line  26 [27  through 29]  as                                                                    
follows:                                                                                                                        
                                                                                                                                
     … a public official  or former public official required                                                                    
     to  file a  report  under AS  39.50.020  shall pay  the                                                                    
     commission  an annual  administrative registration  fee                                                                    
     of $50 each year in which a report is due.                                                                                 
                                                                                                                                
Co-Chair Seaton wanted to ensure  that candidates and public                                                                    
officials were  both covered under the  bill. Representative                                                                    
Kito  answered   that  the   bill  contained   two  separate                                                                    
provisions:  candidates were  required to  register and  pay                                                                    
the $100  fee and public  officials were required to  file a                                                                    
financial  disclosure  form  costing  $50.  Co-Chair  Seaton                                                                    
asked whether  the $50  fee in section  4 was  an additional                                                                    
fee.  Representative Kito  responded  in  the negative.  The                                                                    
section  addressed a  different group  of filers  other than                                                                    
candidates or elected officials.                                                                                                
                                                                                                                                
2:03:32 PM                                                                                                                    
                                                                                                                                
Representative Wilson asked whether  the fees collected were                                                                    
deposited  into a  specific designated  fund. Representative                                                                    
Kito replied that the fees  were designated program receipts                                                                    
which enabled APOC to receive and expend the funds.                                                                             
                                                                                                                                
Ms. Koeneman  interjected that the fees  were deposited into                                                                    
fund code 1005 program receipts.                                                                                                
                                                                                                                                
Representative  Wilson  wondered  whether  program  receipts                                                                    
were  able  to  be   spent  as  needed  without  legislative                                                                    
appropriation.  Representative   Kito  explained   that  the                                                                    
legislature  authorized  the  receipt  and  expenditure  for                                                                    
program receipts via the fund source  code on a line item in                                                                    
the appropriation bill.  Representative Wilson asked whether                                                                    
the sponsor intended to back  out undesignated general funds                                                                    
(UGF) and replace them with  the additional fees or the fees                                                                    
were  in addition  to  UGF. Ms.  Koeneman  replied that  the                                                                    
intent was  to offset a  portion of APOC UGF.  She furthered                                                                    
that   the  amount   depended  on   the  level   of  funding                                                                    
appropriated by the legislature.  Ms. Koeneman detailed that                                                                    
any amount  collected in fees  that were above the  level of                                                                    
funding  APOC  needed to  function  could  replace UGF  with                                                                    
program receipts.                                                                                                               
                                                                                                                                
2:06:24 PM                                                                                                                    
                                                                                                                                
Representative Kito added  that the legislature appropriated                                                                    
GF  and  an  amount   for  program  receipt  authority.  The                                                                    
legislation enabled APOC to increase  its ability to collect                                                                    
the higher amount  of program receipts in order  to meet its                                                                    
budget   obligations.  Representative   Wilson  provided   a                                                                    
hypothetical scenario  where APOC collected a  higher amount                                                                    
in fees than  the amount authorized by  the legislature. She                                                                    
deduced that  APOC could  not expend  the amount  above what                                                                    
was  authorized.  Representative  Kito  answered  that  APOC                                                                    
could expend  the additional fee  revenue through  a request                                                                    
for  authorization approved  by the  Legislative Budget  and                                                                    
Audit Committee.  Representative Wilson  asked what  the fee                                                                    
schedule   was   for   state   and   municipal   candidates.                                                                    
Representative  Kito  indicated   that  the  bill  contained                                                                    
separate provisions for state  and municipal candidates. The                                                                    
state  candidates were  required to  pay a  $30 fee  for the                                                                    
Division of Elections  and an additional $100  fee for APOC.                                                                    
Candidates were not required to  file a financial disclosure                                                                    
form; only elected  officials were mandated to  file the $50                                                                    
fee for financial disclosures. He  noted that aside from the                                                                    
APOC and  Division of Elections  fee, a  municipal candidate                                                                    
was required to file an  APOC financial disclosure form that                                                                    
carried the $50 filing fee  in some municipalities where the                                                                    
disclosure was mandated by law.                                                                                                 
                                                                                                                                
2:09:15 PM                                                                                                                    
                                                                                                                                
Representative  Grenn thought  APOC  provided  a low  income                                                                    
exemption for  the candidates filing  fee and  asked whether                                                                    
the  bill covered  the exemption.  Ms. Koeneman  answered in                                                                    
the affirmative and elucidated that  the legislation did not                                                                    
remove or alter the exemption.                                                                                                  
                                                                                                                                
Representative  Pruitt  asked  about the  fiscal  notes  and                                                                    
whether  they  were current.  Ms.  Koeneman  relayed that  a                                                                    
revised APOC fiscal note was  forthcoming and the DOR fiscal                                                                    
note  would be  zeroed out.  Representative Pruitt  spoke to                                                                    
the difficulties  for some  public officials  especially for                                                                    
certain  boards and  commissions that  had a  difficult time                                                                    
finding members.  He asked about  the sponsor's  thoughts on                                                                    
every public  official paying  the $100  fee. Representative                                                                    
Kito  corrected that  the applicable  fee would  be the  $50                                                                    
financial disclosure fee. He  acknowledged that although the                                                                    
legislature  was trying  to protect  the public  from "undue                                                                    
outside   interests,"  on   "low  level   boards"  financial                                                                    
disclosures  and  conflicts of  interest  "might  not be  as                                                                    
pertinent." He reported that the  issue was discussed in the                                                                    
previous committee and  they were unable to  determine a way                                                                    
to equitably identify what public  officials could be waived                                                                    
from the  filing fees. The  process to separate  out certain                                                                    
public    officials   became    "unbelievably   cumbersome."                                                                    
Representative  Pruitt asked  whether the  fee would  hinder                                                                    
the  ability  of boards  and  commissions  to find  members.                                                                    
Representative  Kito  believed   that  the  requirement  for                                                                    
financial disclosure was  more of an obstacle  than the fee.                                                                    
He  opined  that  once  the   individual  committed  to  the                                                                    
requirement  for  financial disclosure  the  $50  fee was  a                                                                    
negligible determinate.  Representative Pruitt  relayed that                                                                    
APOC was  not able to  collect fees online. He  wondered how                                                                    
the  inability   to  pay  APOC  fees   online  would  affect                                                                    
potential  filers. Representative  Kito  was concerned  with                                                                    
the  issue and  wanted to  address the  issue with  APOC. He                                                                    
felt online filing was preferred.                                                                                               
                                                                                                                                
2:14:32 PM                                                                                                                    
                                                                                                                                
Representative  Pruitt  questioned  the  potential  for  all                                                                    
people to be able  to run for office with a  fee of $100. He                                                                    
wondered what impact the fee  would have on people's ability                                                                    
to   run    for   office.   Representative    Kito   thought                                                                    
Representative Pruitt  brought up a fair  point and revealed                                                                    
that the  issue was  discussed in  a previous  committee. He                                                                    
explained that  a candidate who  planned to raise  less than                                                                    
$5 thousand  were exempted from  the APOC fees.  He believed                                                                    
that the  APOC fees were  nominal, once a  candidate reached                                                                    
the  $5  thousand  threshold  and  was  still  raising  more                                                                    
campaign  funds.  Representative  Pruitt asked  whether  the                                                                    
APOC fees could be  paid with campaign funds. Representative                                                                    
Kito responded  in the affirmative  and added that  the fees                                                                    
were "an  eligible campaign expense."  Representative Pruitt                                                                    
inquired  about  the  lobbyist's  fees  and  the  number  of                                                                    
lobbyists in  each of the  listed fee brackets in  the bill.                                                                    
He  asked how  many  lobbyists in  the  lower brackets  were                                                                    
required to pay the  APOC fees. Representative Kito answered                                                                    
that the  fee was  based on the  "client value"  or contract                                                                    
amount. He  explained that  if the  lobbyist had  10 clients                                                                    
the contracts might  vary from $10 thousand  to $60 thousand                                                                    
or more.  The fees had  been split  up in order  to minimize                                                                    
the costs  for clients paying  a lower lobbying  contract as                                                                    
opposed   to  the   clients  paying   the  higher   lobbying                                                                    
contracts.  He  indicated that  changing  the  fees were  in                                                                    
recognition that clients  who could pay more  for a lobbying                                                                    
contract  could  pay  a  higher  registration  fee  for  its                                                                    
lobbyist.                                                                                                                       
                                                                                                                                
2:19:29 PM                                                                                                                    
                                                                                                                                
Representative  Pruitt thanked  Representative Kito  for the                                                                    
clarification.    He   asked    for   the    definition   of                                                                    
"Representational  Lobbyist." Representative  Kito explained                                                                    
that a representational lobbyist  was a lobbyist who lobbied                                                                    
on behalf  of an organization without  receiving any payment                                                                    
for    services,   including    per   diem    and   lodging.                                                                    
Representative Pruitt wondered how  the APOC fees applied to                                                                    
lobbyists  who received  a salary  from and  worked for  the                                                                    
organization    she    represented.   Representative    Kito                                                                    
communicated that  the employee  lobbyist had to  report how                                                                    
much of their salary was  attributed to lobbying and the fee                                                                    
was calculated on the amount.                                                                                                   
                                                                                                                                
Representative Pruitt  asked whether  the language in  HB 91                                                                    
covered the  employee salary situation  and what  the amount                                                                    
the fees were based on.  Ms. Koeneman related that currently                                                                    
the  lobbyist  reported their  entire  salary  but the  bill                                                                    
required that the lobbyist would  have to determine how much                                                                    
of the  lobbyists salary was  related to  lobbying services.                                                                    
The  registration fee  was  based on  the  amount of  salary                                                                    
related to lobbying.                                                                                                            
                                                                                                                                
Representative Pruitt  restated his  concern about  the term                                                                    
"Lobbying  Contract"   covering  the   situation  described.                                                                    
Representative   Kito   stated   he   would   confirm   with                                                                    
Legislative  Legal Services  that the  language matched  the                                                                    
intent of the provision.                                                                                                        
                                                                                                                                
2:23:21 PM                                                                                                                    
                                                                                                                                
Representative Kawasaki queried whether  a lobbyist with two                                                                    
$10 thousand  contracts would pay the  $350 registration fee                                                                    
for   each  $10   thousand  contract.   Representative  Kito                                                                    
responded  in   the  affirmative.   Representative  Kawasaki                                                                    
wondered whether a lobbyist would  ask for a contract fee of                                                                    
$59,999  in  order   to  save  $200  for   the  higher  fee.                                                                    
Representative  Kito deduced  that the  fee would  be up  to                                                                    
negotiations    between    the    client    and    lobbyist.                                                                    
Representative  Kawasaki  remembered  that  members  of  the                                                                    
planning  commission in  the  Fairbanks  North Star  Borough                                                                    
were required to  fill out a financial  disclosure. He asked                                                                    
whether  the  intent  of  the   sponsor  was  for  municipal                                                                    
planning  commission members  to pay  the $100  registration                                                                    
fee.  Representative Kito  relayed that  they would  not pay                                                                    
the $100  registration fee required of  candidates but would                                                                    
pay the $50 fee for  the financial disclosure form. He added                                                                    
that the previous committee discussed  the burden for public                                                                    
officials serving voluntarily but could  not find a fair way                                                                    
to exempt them. The members  determined that the $50 fee was                                                                    
nominal  and   that  actually  filling  out   the  financial                                                                    
disclosure  was "a  higher hurdle."  Representative Kawasaki                                                                    
assumed  that lobbyists  were not  supportive  of the  bill.                                                                    
Representative  Kito  replied  that he  heard  "very  little                                                                    
opposition" but  was aware of  some who were opposed  to the                                                                    
bill.                                                                                                                           
                                                                                                                                
Ms.  Koeneman interjected  that some  lobbyists acknowledged                                                                    
the  state's financial  situation and  were "willing  to pay                                                                    
their fair share" to keep APOC in operation.                                                                                    
                                                                                                                                
Representative Wilson  cited page  3, lines  1 through  5 of                                                                    
the  bill  relating to  the  fee  schedule. She  provided  a                                                                    
hypothetical scenario where the  client divided the contract                                                                    
into two $30  thousand contracts and offered  the second one                                                                    
at  a  later date  in  order  to  save  money in  fees.  She                                                                    
wondered whether the language  applied to the scenario since                                                                    
the  bill   provision  was  by  contract   and  not  client.                                                                    
Representative   Kito  responded   that  the   scenario  was                                                                    
possible under the bill. He  did not anticipate the scenario                                                                    
in actual  practice. Representative  Wilson opined  that the                                                                    
scenario was likely to occur due to cost savings.                                                                               
                                                                                                                                
Vice-Chair  Gara thought  that  APOC  required lobbyists  to                                                                    
report their  annual income from lobbying.  He asked whether                                                                    
an  alternative fee  schedule could  be based  on lobbyists'                                                                    
yearly  income to  quell the  concern over  split contracts.                                                                    
Representative  Kito relayed  that the  original bill  based                                                                    
fees  on  yearly  compensation   therefore;  the  fees  were                                                                    
considered  a   tax.  He  delineated   that  a   tax  became                                                                    
problematic  for   reasons  previously   discussed.  Revenue                                                                    
collection based  on compensation  might be realized  in the                                                                    
future through inception of a statewide income tax.                                                                             
2:29:26 PM                                                                                                                    
                                                                                                                                
Vice-Chair Gara  was "struggling with charging  someone" for                                                                    
financial  disclosures.  Representative  Kito  reminded  the                                                                    
committee that  someone running an  exempt campaign  - $5000                                                                    
or less  - was excused  from paying a registration  fee. The                                                                    
sponsor felt that  the fee was nominal in  support of APOC's                                                                    
function.  Vice-Chair   Gara  asked   whether  all   of  the                                                                    
Political  Action Committees  (PACS) were  required to  pay.                                                                    
Representative  Kito  responded   that  anyone  required  to                                                                    
register would pay the same  fees. Vice-Chair Gara wanted to                                                                    
see  additional  fees  towards PACs  or  other  groups  that                                                                    
contributed "soft money."  He stated that 65  percent of all                                                                    
soft   money  was   spent   for   negative  campaign   adds.                                                                    
Representative  Kito  thought  a  "carve  out"  for  certain                                                                    
groups created "constitutional equitability issues."                                                                            
                                                                                                                                
2:31:35 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster OPENED Public Testimony.                                                                                        
                                                                                                                                
Co-Chair Foster CLOSED Public Testimony.                                                                                        
                                                                                                                                
Co-Chair Foster  reported that amendments  were due  by 5:00                                                                    
p.m. on Wednesday, April 19, 2017.                                                                                              
                                                                                                                                
HB  91  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
HB124 Explanation of changes from ver A to ver D 4.6.17.pdf HFIN 4/17/2017 1:30:00 PM
HB 124
HB124 Sectional Analysis ver D 4.6.17.pdf HFIN 4/17/2017 1:30:00 PM
HB 124
HB124 Sponsor Statement 3.22.17.pdf HFIN 4/17/2017 1:30:00 PM
HB 124
HB124 Support Documents - Letters of Support 4.11.17.pdf HFIN 4/17/2017 1:30:00 PM
HB 124
HB091 Supporting Document - APOC Funding 031317.pdf HFIN 4/17/2017 1:30:00 PM
HB 91
HB091(STA) Sectional Analysis.pdf HFIN 4/17/2017 1:30:00 PM
HB 91
HB091(STA) Sponsor Statement.pdf HFIN 4/17/2017 1:30:00 PM
HB 91
HB025 Opposing Document-Emails 4.14.17.pdf HFIN 4/17/2017 1:30:00 PM
HB 25
HB025 Opposing Document-Letter NFIB 4.14.17.pdf HFIN 4/17/2017 1:30:00 PM
HB 25
HB025 Sectional Analysis ver O 4.14.17.pdf HFIN 4/17/2017 1:30:00 PM
HB 25
HB025 Sponsor Statement 4.14.17.pdf HFIN 4/17/2017 1:30:00 PM
HB 25
HB025 Summary of Changes 4.14.17.pdf HFIN 4/17/2017 1:30:00 PM
HB 25
HB025 Supporting Document-ADN Commentary 4.14.17.pdf HFIN 4/17/2017 1:30:00 PM
HB 25
HB025 Supporting Document-Cost Savings Study 4.14.17.pdf HFIN 4/17/2017 1:30:00 PM
HB 25
HB025 Supporting Document-Emails 4.14.17.pdf HFIN 4/17/2017 1:30:00 PM
HB 25
HB025 Supporting Document-Guttmacher Alaska Statistics 4.14.17.pdf HFIN 4/17/2017 1:30:00 PM
HB 25
HB025 Supporting Document-Guttmacher Public Costs from Unintended Pregnancies 4.14.17.pdf HFIN 4/17/2017 1:30:00 PM
HB 25
HB025 Supporting Document-Letters 4.14.17.pdf HFIN 4/17/2017 1:30:00 PM
HB 25
HB025 Supporting Document-UCSF Study Newspaper Article 4.14.17.pdf HFIN 4/17/2017 1:30:00 PM
HB 25
HB025 Supporting Document-Unintended Pregnancies Study 4.14.17.pdf HFIN 4/17/2017 1:30:00 PM
HB 25
SB88_Oppose_041417.pdf HFIN 4/17/2017 1:30:00 PM
SB 88
HF SB 88 4-15-17 v1_0.pdf HFIN 4/17/2017 1:30:00 PM
SB 88
CSSB 88 revised Maps - 4.3.2017.pdf HFIN 4/17/2017 1:30:00 PM
SB 88
CSSB 88 - Sponsor Statement - version R.pdf HFIN 4/17/2017 1:30:00 PM
SB 88
CSSB 88 - Sectional Analysis.pdf HFIN 4/17/2017 1:30:00 PM
SB 88
CSSB 88 - Letters of Support.PDF HFIN 4/17/2017 1:30:00 PM
SB 88
CSSB 88 - letters of opposition.PDF HFIN 4/17/2017 1:30:00 PM
SB 88
CSSB 88 - letters of opposition.PDF HFIN 4/17/2017 1:30:00 PM
SB 88
CSSB 88 - federal bill.pdf HFIN 4/17/2017 1:30:00 PM
SB 88
CSSB 88 - Fact Sheet.pdf HFIN 4/17/2017 1:30:00 PM
SB 88
CSSB 88 - Explanation of Changes version J to version R.pdf HFIN 4/17/2017 1:30:00 PM
SB 88
HB25_Support_04172017.pdf HFIN 4/17/2017 1:30:00 PM
HB 25
HB25_Oppose_04172017.pdf HFIN 4/17/2017 1:30:00 PM
HB 25
HB 25 - Support Document Letter 3-3-17.pdf HFIN 4/17/2017 1:30:00 PM
HB 25