Legislature(2007 - 2008)CAPITOL 120

03/26/2008 01:00 PM House JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 420 ANATOMICAL GIFTS TELECONFERENCED
Moved Out of Committee
+= HB 368 ETHICS: LEGISLATIVE & GOV/LT GOV TELECONFERENCED
Moved CSHB 368(JUD) Out of Committee
+= HB 355 DISCLOSURE OF CONTRIBUTIONS: INITIATIVES TELECONFERENCED
Moved CSHB 355(JUD) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
HB 368 - ETHICS: LEGISLATIVE & GOV/LT GOV                                                                                     
                                                                                                                                
[Contains brief mention that HB 368  is intended to clean up some                                                               
of the provisions of HB 109.]                                                                                                   
                                                                                                                                
2:49:08 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).]                                                                                
                                                                                                                                
2:49:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL moved  to  adopt  the proposed  committee                                                               
substitute (CS) for HB 368,  Version 25-LS1326\O, Wayne, 3/20/08,                                                               
as the  working document.   There being  no objection,  Version O                                                               
was before the committee.                                                                                                       
                                                                                                                                
2:50:25 PM                                                                                                                    
                                                                                                                                
JOYCE ANDERSON, Ethics  Committee Administrator, Select Committee                                                               
on Legislative  Ethics, Legislative Affairs Agency  (LAA), stated                                                               
that HB 368 is a clean up bill  from last year, HB 109, which was                                                               
an   all   encompassing   ethics  bill.      Additionally,   some                                                               
recommendations  by  ethics  committee members  are  incorporated                                                               
into HB 368.   She reviewed the changes in  Version O by section.                                                               
She  stated   that  in  Section   1,  the  Select   Committee  on                                                               
Legislative  Ethics  recommended  not   to  allow  campaign  fund                                                               
raising during  a legislative session regardless  of the location                                                               
of the fundraiser.   She noted that Section 2  of the bill refers                                                               
to gifts.  Last year, a provision  was added to HB 109 that would                                                               
prohibit  lobbyists  from  giving  gifts  to  legislative  staff.                                                               
However, the  change created an  inadvertent consequence  in that                                                               
it also  prohibited spouses  from giving gifts  to staff.   Thus,                                                               
spouses were  prohibited from giving  gifts to  their significant                                                               
others for birthdays  or anniversaries.  The  Select Committee on                                                               
Legislative Ethics  recommends that gifts should  be allowed from                                                               
immediate family members to legislative staff.                                                                                  
                                                                                                                                
MS. ANDERSON  advised that Sections 3  and 4 of the  bill are not                                                               
changed.   Section  [6]  requires that  the  Select Committee  on                                                               
Legislative  Ethics  publish  summaries   of  its  decisions  and                                                               
advisory  opinions  annually   instead  of  semi-annually,  which                                                               
reflects  current  practice and  was  recommended  by the  Select                                                               
Committee on Legislative  Ethics.  She also pointed  out that the                                                               
advisory opinions are placed in  the newsletter immediately after                                                               
issuance and  are placed in  a searchable database on  the Select                                                               
Committee on  Legislative Ethics'  website.  She  further advised                                                               
that  complaint  decisions  are   also  placed  in  the  advisory                                                               
newsletter and will soon be posted  on the website, as well.  She                                                               
highlighted that the Select Committee  on Legislative Ethics also                                                               
notifies the  press of  any decision  or opinion  as part  of its                                                               
internal policy and its rules of procedure.                                                                                     
                                                                                                                                
MS.  ANDERSON pointed  out that  the summaries  of decisions  and                                                               
advisory opinions are submitted to  the House Chief Clerk and the                                                               
Senate  Secretary  annually,  which  then  becomes  part  of  the                                                               
legislative journal.   Section  [7] of the  bill pertains  to the                                                               
fine structure.   Currently, the committee can impose  a fine for                                                               
late filing of disclosures.   The Select Committee on Legislative                                                               
Ethics  recommends adding  language that  would separate  out and                                                               
make  a  distinction  between "inadvertent"  and  "willful"  late                                                               
filings.  Currently  the fine imposed for late filings  is $2 per                                                               
day, with  a maximum  of $100  for each  disclosure.   The Select                                                               
Committee on Legislative Ethics  recommends limiting the fine for                                                               
inadvertent  late filing  to  $25  and would  impose  a fine  for                                                               
willful late  filing in the amount  of $100 for each  day, not to                                                               
exceed $2,500.   She related that a former  legislator refused to                                                               
file his/her  disclosures, eventually filed  his/her disclosures,                                                               
and was  fined.   However, the former  legislator refused  to pay                                                               
the fine  and since  the fine  consisted of  two $100  fines, the                                                               
attorney  general's office  declined  to prosecute.   The  Select                                                               
Committee  on  Legislative  Ethics  stresses  the  importance  of                                                               
filing final disclosures.   Thus, the fine  structure was changed                                                               
to encourage  timely filing of  disclosures after  leaving office                                                               
or  leaving  employment.    Ms.  Anderson  highlighted  that  her                                                               
research of other  states showed that their  fines ranged between                                                               
$5,000 and $10,000  for late filings, so the  Select Committee on                                                               
Legislative Ethics  felt that $100  per day fine  was reasonable.                                                               
She noted that  she worked with staff on an  amendment, which she                                                               
could address later on for the committee.                                                                                       
                                                                                                                                
2:57:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DAHLSTROM related  her  understanding that  under                                                               
current law the Select Committee  on Legislative Ethics could not                                                               
take  any  action with  respect  to  a  former legislator.    She                                                               
related her  own experience  with a late  filing and  offered her                                                               
view that  it was  her personal responsibility  to pay  the fine,                                                               
which she did.                                                                                                                  
                                                                                                                                
MS. ANDERSON pointed  out that the newspapers did  run an article                                                               
to  publicize the  late filing  in that  instance.   She surmised                                                               
that Representative  Dahlstrom probably was referring  to an APOC                                                               
late  filing rather  than  a  case that  came  before the  Ethics                                                               
Committee  for late  disclosure  filing.   She characterized  the                                                               
three-tier  fine structure  as meeting  the needs  of legislators                                                               
and  staff.    She  pointed  out that  the  Select  Committee  on                                                               
Legislative Ethics reviews extenuating circumstances.                                                                           
                                                                                                                                
CHAIR  RAMRAS  related  that  his  campaign  finance  manager  is                                                               
receiving treatment  for cancer  and he  said he  appreciates the                                                               
Select Committee  on Legislative Ethics' willingness  to consider                                                               
extenuating circumstances.                                                                                                      
                                                                                                                                
REPRESENTATIVE  SAMUELS  referred to  lines  1-6  in proposed  AS                                                               
15.13.072(g).  He  referred to "municipality" and  inquired as to                                                               
how  this  subsection  would  apply if  the  regular  or  special                                                               
session of  the legislature convened  in an  area that was  not a                                                               
"municipality."                                                                                                                 
                                                                                                                                
MS. ANDERSON offered  her recollection of past  discussions.  She                                                               
posed a scenario in which a  special session is held in Girdwood,                                                               
that the Select  Committee on Legislative Ethics  would not allow                                                               
fundraising  to occur  in  Anchorage.   The  Select Committee  on                                                               
Legislative  Ethics  would  view  the provision  to  include  the                                                               
entire area.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SAMUELS  inquired  as to  whether  municipalities                                                               
would  include  boroughs,  such   as  the  Fairbanks  North  Star                                                               
Borough.  He  opined that only one municipality exists  and it is                                                               
the Municipality of Anchorage.  He  further inquired as to how it                                                               
is defined.                                                                                                                     
                                                                                                                                
3:02:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GRUENBERG   recalled   that   the   Alaska   Bar                                                               
Association (ABA)  disciplines attorneys.   The  ABA can  issue a                                                               
public  reprimand, he  noted.   He suggested  that the  committee                                                               
consider  providing the  Select Committee  on Legislative  Ethics                                                               
similar power in  situations in which the  activity is considered                                                               
wilful  conduct  or  refusal.    In  response  to  Ms.  Anderson,                                                               
Representative Gruenberg  explained that the public  reprimand is                                                               
one that is provided to the  attorney and also a notice is placed                                                               
in  newspapers  of general  circulation  around  the state.    He                                                               
stated that he would be prepared to offer such an amendment.                                                                    
                                                                                                                                
MS.  ANDERSON  answered that  the  committee  has discussed  this                                                               
matter and has in its rules  of procedure that if willful conduct                                                               
of that  type occurs that the  conduct would be listed  in the in                                                               
the  advisor's   newsletter.    She  noted   that  the  advisor's                                                               
newsletter did list information on  the legislator who refused to                                                               
pay his/her fine.  She  pointed out that the advisor's newsletter                                                               
is also  posted to  the Select  Committee on  Legislative Ethics'                                                               
website.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  GRUENBERG  restated  that   he  would  offer  the                                                               
amendment   at  the   appropriate  time,   similar  to   the  ABA                                                               
disciplinary action.                                                                                                            
                                                                                                                                
REPRESENTATIVE COGHILL said  he would strongly object  to such an                                                               
amendment.  He  opined that the fine would be  enough.  He stated                                                               
that  disciplining  members should  remain  with  the body.    He                                                               
further stated  that the Select  Committee on  Legislative Ethics                                                               
has  enough authority.   However,  he  stated that  he wants  the                                                               
Select Committee  on Legislative Ethics to  perform its functions                                                               
well.                                                                                                                           
                                                                                                                                
CHAIR  RAMRAS reminded  members  of the  fourth  estate which  is                                                               
quite capable  of undermining the  reputation of members  in good                                                               
standing.                                                                                                                       
                                                                                                                                
REPRESENTATIVE LYNN  answered that the  person is no  longer part                                                               
of the  body so the  concern shouldn't  apply and would  not make                                                               
any difference.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  SAMUELS  referred  to  page  2,  in  proposed  AS                                                               
15.13.072(g),  and inquired  as to  whether "municipality"  would                                                               
also encompass the cities and boroughs.                                                                                         
                                                                                                                                
3:07:48 PM                                                                                                                    
                                                                                                                                
DAN  WAYNE,  Attorney,  Legislative  Legal  Counsel,  Legislative                                                               
Legal and  Research Services,  Legislative Affairs  Agency (LAA),                                                               
explained  that the  general definition  of municipality  means a                                                               
political subdivision  incorporated under the laws  of the state,                                                               
a  home rule  or general  law city,  a home  rule or  general law                                                               
borough or a unified municipality.                                                                                              
                                                                                                                                
CHAIR RAMRAS, after first determining  that no one else wished to                                                               
testify, closed public testimony on HB 368.                                                                                     
                                                                                                                                
3:08:36 PM                                                                                                                    
                                                                                                                                
CHAIR  RAMRAS made  a motion  to adopt  Amendment 1,  labeled 25-                                                               
LS1326\O.1, Wayne, 3/26/08, which read:                                                                                         
                                                                                                                                
     Page 1, lines 3 - 4:                                                                                                       
          Delete "who are members of their immediate                                                                          
     families"                                                                                                                
                                                                                                                                
     Page 2, line 30, following "(B)":                                                                                          
          Insert "a contribution to a charity event from                                                                    
     any person at any time, and"                                                                                           
                                                                                                                                
     Page 3, line 7:                                                                                                            
          Delete "or"                                                                                                       
                                                                                                                                
     Page 3, line 10, following "family":                                                                                   
          Insert ";                                                                                                         
               (D)  a gift delivered on the premises of a                                                                   
     state facility and accepted on behalf of a recognized                                                                  
     nonpolitical charitable organization; or                                                                               
               (E)        a   compassionate    gift    under                                                                
     AS 24.60.075"                                                                                                          
                                                                                                                                
REPRESENTATIVE HOLMES objected.                                                                                                 
                                                                                                                                
MS.  ANDERSON, in  response  to Chair  Ramras,  offered that  the                                                               
change proposed in Amendment 1  would place all of the exceptions                                                               
for a  lobbyist in one  provision of statutes for  easier access.                                                               
She explained that AS  24.60.030(a)(2)(K) and AS 24.60.080(c)(10)                                                               
currently  contain  the  language  to allow  contributions  to  a                                                               
charity event  from an person  at any  time, such that  it allows                                                               
for the  Fahrenkamp Classic to  be held.   She noted that  all of                                                               
the changes contained in the Amendment  1 are existing law.  This                                                               
amendment would place them in  the appropriate section of statute                                                               
for easier access.                                                                                                              
                                                                                                                                
REPRESENTATIVE  HOLMES removed  her  objection.   There being  no                                                               
further objection, Amendment 1 was adopted.                                                                                     
                                                                                                                                
3:12:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  made  a  motion  to  adopt  Conceptual                                                               
Amendment  2,   which  was  handwritten,  as   follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Page  5,  line 3,  add  the  following sentence:    "In                                                                    
     addition  to  any fine  that  may  be imposed,  if  the                                                                    
     committee finds  that the late  filing was  willful, it                                                                    
     may issue a private or public reprimand."                                                                                  
                                                                                                                                
Representative Gruenberg  opined that  the committee  should also                                                               
have the authority,  in addition to any fine  imposed should have                                                               
the ability to issue a private  or public reprimand.  He conveyed                                                               
that a private reprimand, similar  to the ABA rules, means simply                                                               
a letter  to the  person involved.   However, a  public reprimand                                                               
would  be same  as it  is for  the ABA,  that a  notice would  be                                                               
placed  in   the  newspaper.     He   offered,  in   response  to                                                               
Representative Coghill's comments, that it  seems to him that the                                                               
person's reputation  is important,  that the Select  Committee on                                                               
Legislative  Ethics would  not invoke  this  provision often  and                                                               
only in  egregious cases.   However, he stressed his  belief that                                                               
the  Select  Committee  on Legislative  Ethics  should  have  the                                                               
authority to do so.                                                                                                             
                                                                                                                                
REPRESENTATIVE COGHILL objected.                                                                                                
                                                                                                                                
CHAIR RAMRAS made a motion to  adopt an amendment to Amendment 2,                                                               
as  follows, to  authorize  the Select  Committee on  Legislative                                                               
Ethics to impose corporal punishment  on any member that does not                                                               
file its paperwork in a timely fashion.                                                                                         
                                                                                                                                
CHAIR RAMRAS pointed  out that his sarcasm is  intended to convey                                                               
his sense  that corporal punishment  is equally  inappropriate as                                                               
any  committee,  such  as  the   Ethics  Committee,  holding  the                                                               
authority to impose public disciplinary sanctions to this body.                                                                 
                                                                                                                                
REPRESENTATIVE GRUENBERG withdrew Amendment 2.                                                                                  
                                                                                                                                
3:15:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DAHLSTROM moved  to report the proposed  CS for HB
368,  labeled 25-LS1326\O,  Wayne,  3/20/08, as  amended, out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHB  368(JUD)  was                                                               
reported from the House Judiciary Standing Committee.                                                                           

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