Legislature(2007 - 2008)CAPITOL 120

03/19/2008 01:00 PM House JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 368 ETHICS: LEGISLATIVE & GOV/LT GOV TELECONFERENCED
Heard & Held
+ HJR 37 CONST AM: SEC. OF STATE REFERENCES TELECONFERENCED
Moved CSHJR 37(JUD) Out of Committee
+= HB 281 CAMPAIGN FINANCE COMPLAINTS TELECONFERENCED
Moved CSHB 281(JUD) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
HB 368 - ETHICS: LEGISLATIVE & GOV/LT GOV                                                                                     
                                                                                                                                
2:25:08 PM                                                                                                                    
                                                                                                                                
CHAIR RAMRAS announced that the  final order of business would be                                                               
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."  [Before the committee was CSHB 368(STA).]                                                                                
                                                                                                                                
REPRESENTATIVE  LYNN,  speaking  as  chair  of  the  House  State                                                               
Affairs  Standing Committee,  sponsor,  noted that  HB 368  would                                                               
allow lobbyists to give gifts to their spouses.                                                                                 
                                                                                                                                
2:27:30 PM                                                                                                                    
                                                                                                                                
MIKE  SICA,  Staff  to  Representative  Bob  Lynn,  Alaska  State                                                               
Legislature, presented  HB 368 on behalf  of Representative Lynn,                                                               
chair  of the  House State  Affairs Standing  Committee, sponsor.                                                               
He explained that  current law does not allow  candidates for the                                                               
office of governor  or lieutenant governor to  engage in campaign                                                               
fund raising  during a  legislative session  held in  the capital                                                               
city.   House Bill 368 would  in part expand that  prohibition to                                                               
include  any municipality  in which  the  legislative session  is                                                               
convened.                                                                                                                       
                                                                                                                                
CHAIR RAMRAS  asked whether candidates for  federal offices would                                                               
be affected.                                                                                                                    
                                                                                                                                
MR. SICA answered  that neither current law nor  the bill address                                                               
candidates for federal  offices.  Again, the bill  in part merely                                                               
addresses campaign  fund raising  by candidates for  governor and                                                               
lieutenant governor  when legislative  sessions are  held outside                                                               
of the capital city of Juneau.                                                                                                  
                                                                                                                                
CHAIR RAMRAS asked Representative Lynn  why the bill only applies                                                               
to candidates  for governor  and lieutenant  governor and  not to                                                               
candidates campaigning for federal offices  who might also be the                                                               
governor or lieutenant governor.                                                                                                
                                                                                                                                
REPRESENTATIVE  LYNN opined  that  the  Alaska State  Legislature                                                               
should only address  Alaska issues, not federal issues.   he said                                                               
he is not  sure whether it would be constitutional  for the state                                                               
to  become involved  in telling  a candidate  for federal  office                                                               
what he/she may or may not do.                                                                                                  
                                                                                                                                
REPRESENTATIVE   GRUENBERG   recalled  other   legislation   that                                                               
attempts  to  limit campaign  fund  raising  for members  of  the                                                               
legislature who  are running  for federal office.   He  asked for                                                               
time  to research  federal case  history with  regard to  whether                                                               
doing so would be constitutional.                                                                                               
                                                                                                                                
REPRESENTATIVE LYNN  pointed out  that bills should  be discussed                                                               
on their merit and not in light of current political situations.                                                                
                                                                                                                                
CHAIR RAMRAS  noted that other  legislation has been  reactive in                                                               
nature.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  COGHILL  questioned  which  statutes  would  best                                                               
address the changes proposed in HB 368.                                                                                         
                                                                                                                                
2:31:45 PM                                                                                                                    
                                                                                                                                
MR. SICA  relayed although Section  1 was not recommended  by the                                                               
Select Committee  on Legislative Ethics,  it was included  by the                                                               
sponsor because  he felt  that the  limitations on  campaign fund                                                               
raising  by legislative  candidates  provided for  via Section  2                                                               
should  also  apply to  candidates  for  governor and  lieutenant                                                               
governor.   Section  2  of the  bill  prohibits legislators  from                                                               
campaign  fund  raising  during  a  legislative  session  in  the                                                               
municipality in which  the legislative session is  held.  Section                                                               
3 amends  AS 24.60.080(a)  to allow  a legislator  or legislative                                                               
employee  to accept  a gift  worth $250  or more  in value,  in a                                                               
calendar year,  or accept  a gift  of any  monetary value  from a                                                               
lobbyist, an  immediate family member  of a lobbyist or  a person                                                               
acting on behalf of a lobbyist,  if that gift is unconnected with                                                               
the recipient's  legislative status and  is from a member  of the                                                               
legislator's  or legislative  employee's  immediate  family.   He                                                               
noted  that  the  term  "immediate   family"  is  defined  in  AS                                                               
24.60.990(a)(6) as meaning:                                                                                                     
                                                                                                                                
     (A) the spouse or domestic partner of the person; or                                                                       
     (B)  a  parent, child,  including  a  stepchild and  an                                                                    
     adoptive child, and sibling of  a person if the parent,                                                                    
     child,  or   sibling  resides   with  the   person,  is                                                                    
     financially  dependent  on  the  person,  or  shares  a                                                                    
     substantial financial interest with the person;                                                                            
                                                                                                                                
2:34:12 PM                                                                                                                    
                                                                                                                                
MR. SICA  explained that Sections  4 and  5 merely take  the last                                                               
two sentences in existing in  AS 24.60.080(h) and place them into                                                               
a proposed new  subsection (l).  This change was  proposed by the                                                               
Select  Committee on  Legislative  Ethics in  order  to make  the                                                               
language easier to read.   Section 6 provides that the publishing                                                               
of  summaries  of decisions  and  advisory  opinions shall  occur                                                               
annually, rather  than semi-annually.   Section 7 provides  for a                                                               
fine of $100  per day, up to  a maximum of $2,500,  for a willful                                                               
late filing of a public disclosure.   He noted that CSHB 368 uses                                                               
the term, "may  impose", rather than the term,  "shall impose" as                                                               
was  used in  the original  bill;  this change  gives the  ethics                                                               
committee the  discretion to  impose that larger  fine.   He also                                                               
noted that CSHB  368 no longer contains a  proposed definition of                                                               
the term, "partisan political activity".                                                                                        
                                                                                                                                
REPRESENTATIVE  DAHLSTROM   asked  how  the  term,   "wilful"  is                                                               
defined.                                                                                                                        
                                                                                                                                
MR. SICA said  that he did not recall, but  surmised that that is                                                               
something that would be determined by the ethics committee.                                                                     
                                                                                                                                
2:36:43 PM                                                                                                                    
                                                                                                                                
DENNIS  "SKIP" COOK,  Co-chair, Select  Committee on  Legislative                                                               
Ethics, Alaska State Legislature,  informed the committee that he                                                               
did not have a definition of  the term, "willful".  However, most                                                               
problems stem  from an inadvertent  failure to file  a disclosure                                                               
in a  timely fashion rather than  knowingly failing to file  in a                                                               
timely fashion.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  LYNN  added  that  most  violations  are  due  to                                                               
oversights  or errors,  and so  the  concept was  that those  who                                                               
willfully  refuse to  file a  disclosure with  the APOC  could be                                                               
assessed the higher fine.                                                                                                       
                                                                                                                                
REPRESENTATIVE DAHLSTROM asked  whether, theoretically, she could                                                               
refuse  to  file the  required  disclosures  and simply  pay  the                                                               
maximum fine every year instead.                                                                                                
                                                                                                                                
REPRESENTATIVE  LYNN,  noting  that   there  would  be  no  other                                                               
consequences  for  failing to  file  a  disclosure -  aside  from                                                               
negative  publicity -  characterized thumbing  one's nose  at the                                                               
law as very inappropriate.                                                                                                      
                                                                                                                                
REPRESENTATIVE  DAHLSTROM  questioned  what  would  happen  if  a                                                               
legislator's religious  beliefs mandated  that he/she not  file a                                                               
disclosure.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  LYNN, remarking  on the  importance of  following                                                               
one's  religious beliefs,  suggested that  perhaps such  a person                                                               
shouldn't be running for office to begin with.                                                                                  
                                                                                                                                
2:40:20 PM                                                                                                                    
                                                                                                                                
MR.  COOK  relayed  that  the   ethics  committee  usually  makes                                                               
recommendations for  statutory penalties to the  legislature, and                                                               
that penalties are directly assessed  by the committee only under                                                               
this section.   He opined  that in the  case of a  legislator who                                                               
refuses  to file  reports, the  legislature could  impose further                                                               
sanctions.                                                                                                                      
                                                                                                                                
CHAIR RAMRAS noted that AS 24.60.010(1) in part says:                                                                           
                                                                                                                                
     Sec. 24.60.010.  Legislative findings and purpose.                                                                         
     The legislature finds that                                                                                                 
          (1) high moral and ethical standards among public                                                                     
     servants in  the legislative  branch of  government are                                                                    
     essential to assure the  trust, respect, and confidence                                                                    
     of the people of this state;                                                                                               
                                                                                                                                
CHAIR  RAMRAS  then  remarked  on  the  fact  that  the  governor                                                               
recently endorsed  the lieutenant governor,  who is in  charge of                                                               
the Division of Elections, as  a candidate for U.S. Congress, and                                                               
relayed  that at  some point  he would  be attempting  to address                                                               
such situations via an amendment.                                                                                               
CHAIR  RAMRAS, after  ascertaining  that no  one  else wished  to                                                               
testify, closed public testimony on HB 368.                                                                                     
                                                                                                                                
2:44:56 PM                                                                                                                    
                                                                                                                                
LISA  MARIOTTI, Staff  to  Representative  Max Gruenberg,  Alaska                                                               
State  Legislature, relayed  that  a  memorandum, dated  1/25/08,                                                               
from Legislative  Legal and Research  Services that  was produced                                                               
for HB  305 explains  that the Federal  Election Campaign  Act of                                                               
1971  (FECA),  as amended,  preempts  state  law with  regard  to                                                               
election to federal office, and that  this has been upheld by the                                                               
11th  Circuit Court  of Appeals  in a  case addressing  a Georgia                                                               
state law concerning campaign contributions for federal office.                                                                 
                                                                                                                                
REPRESENTATIVE  SAMUELS surmised  that although  activities of  a                                                               
candidate  [for federal  office] can  not be  regulated by  state                                                               
law, the  activities of a  state official  can be regulated.   He                                                               
suggested that a  law could be created that prohibits  one to run                                                               
for Congress while one holds an elected state position.                                                                         
                                                                                                                                
MS. MARIOTTI indicated that that is her understanding.                                                                          
                                                                                                                                
REPRESENTATIVE  GRUENBERG   called  members'  attention   to  the                                                               
dissenting opinion  by Judge  Hill in  the aforementioned  case -                                                               
Teper V.  Miller -  and noted  that it  states that  [the Georgia                                                             
state law did] not attempt to  regulate the person as a candidate                                                               
for federal office, but rather as a holder of state office.                                                                     
                                                                                                                                
MS. MARIOTTI, in response to a request, reiterated her comments.                                                                
                                                                                                                                
REPRESENTATIVE SAMUELS reiterated his  comments, adding that if a                                                               
person  who holds  state office  is precluded  by state  law from                                                               
engaging  in  activities  related   to  campaigning  for  federal                                                               
office, he/she can simply relinquish his/her state position.                                                                    
                                                                                                                                
2:51:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG noted  that the  concurring opinion  by                                                               
Judge Carnes in  the aforementioned case in part  read  [original                                                               
punctuation provided along with some formatting changes]:                                                                       
                                                                                                                                
      I concur in the Court's holding that O.C.G.A. § 21-5-                                                                     
     35,  which has  the  effect of  limiting  the time  for                                                                    
     making  contributions to  some  candidates for  federal                                                                    
     office, is  preempted by the Federal  Election Campaign                                                                    
     Act,  2 U.S.C.  § 431  et  seq. ("FECA").   However,  I                                                                    
     would base  that conclusion  upon the  express language                                                                    
     of the  preemption clause in  the act, 2 U.S.C.  § 453,                                                                    
     which states  unambiguously that the provisions  of the                                                                    
     act  and  rules  prescribed under  it,  "supersede  and                                                                    
     preempt  any provision  of State  law  with respect  to                                                                    
     election to  Federal office." (emphasis added)  A state                                                                    
     law  regulating  the  time   in  which  a  category  of                                                                    
     citizens can  accept contributions to run  for election                                                                    
     to  federal office  is  a "State  law  with respect  to                                                                    
     election to Federal office."  It is as simple as that.                                                                     
                                                                                                                                
REPRESENTATIVE GRUENBERG  said this seems  to him to  pretty well                                                               
trump the  dissenting opinion.   He predicted  that if  either HB
305 or  HB 368  were challenged  in court, it  would rule  as the                                                               
majority did  in Teper, and  that either bill, if  enacted, would                                                             
likely invite  legal challenges  in federal  court, and  then the                                                               
issue  would be  resolved,  perhaps  even by  the  U. S.  Supreme                                                               
Court.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  SAMUELS  asked  whether,   if  the  state  cannot                                                               
regulate an individual  citizen, it can prohibit  a public office                                                               
holder from running for two offices at the same time.                                                                           
                                                                                                                                
REPRESENTATIVE  GRUENBERG  offered  his  recollection  that  when                                                               
Lyndon B.  Johnson ran for  Vice President,  he also ran  for re-                                                               
election to the U.S. Senate.                                                                                                    
                                                                                                                                
2:55:31 PM                                                                                                                    
                                                                                                                                
MR.  SICA,  on  the  issue   of  the  definition  of  "a  willful                                                               
violation,"  noted  that a  memorandum  dated  1/7/08 written  by                                                               
Herman  Walker,  chair of  the  Select  Committee on  Legislative                                                               
Ethics, states  that the Select  Committee on  Legislative Ethics                                                               
would make the determination of  whether there has been a willful                                                               
omission or a blatant failure to file the required reports.                                                                     
                                                                                                                                
MR.  COOK noted  that proposed  AS 15.13.072(g)  and proposed  AS                                                               
24.60.031(a)(1)  both  use  the  term "solicit  or  accept",  but                                                               
proposed AS 24.60.031(a)(3) instead uses the term, "expend".                                                                    
                                                                                                                                
REPRESENTATIVE SAMUELS  opined that it  makes sense for  the bill                                                               
to make that  distinction.  For example, if a  special session is                                                               
called  on  short  notice,  a candidate  for  office  could  have                                                               
already arranged for advertising.                                                                                               
                                                                                                                                
2:59:53 PM                                                                                                                    
                                                                                                                                
MR. COOK  said he is  unsure whether proposed  AS 24.60.031(a)(3)                                                               
is meant  to apply to  all candidates,  or just to  those already                                                               
holding office.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  GRUENBERG referred  to Footnote  28 in  the Teper                                                             
opinion, and  offered his understanding  that the  key difference                                                               
between  [HB  305]  and  the  Georgia  law  is  that  the  latter                                                               
prohibits  the raising  of money  anywhere during  the time  of a                                                               
special session,  whereas HB 305  prohibits fund raising  only in                                                               
the  capital city.    He  opined that  the  fact  that a  smaller                                                               
population  will  be  affected  by  HB  305  may  strengthen  the                                                               
standing  of the  Alaska law  if challenged.   He  then suggested                                                               
that a severability clause should be included in the bill.                                                                      
                                                                                                                                
CHAIR RAMRAS relayed that CSHB 368(STA) would be held over.                                                                     

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