Legislature(2005 - 2006)BELTZ 211
03/14/2006 11:00 AM House RULES
| Audio | Topic |
|---|---|
| Start | |
| HB489 | |
| SB186 | |
| HB273 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| = | HB 273 | ||
| + | SB 186 | TELECONFERENCED | |
| *+ | HB 489 | TELECONFERENCED | |
HB 489-APOC/LEG ETHICS EXEMPTION: CHARITY EVENTS 11:06:48 AM CHAIR ROKEBERG announced that the first order of business would be HOUSE BILL NO. 489, "An Act relating to the exemption of charity events from regulation by the Alaska Public Offices Commission and to the treatment of charity events under the law governing legislative ethics; and providing for an effective date." 11:07:20 AM REPRESENTATIVE COGHILL moved to adopt CSHB 489, Version 24- LS1753\G, Wayne, 3/11/06, as the working document. There being no objection, Version G before the committee. 11:07:50 AM LALANYA SNYDER, Staff to Representative Mike Chenault, Alaska State Legislature, explained that HB 489 would amend current statute to allow lobbyists to contribute to charitable events as long as they have been approved by the Legislative Council Committee. Furthermore, the legislation would allow those covered by the Legislative Ethics Code to solicit and accept contributions to charity events from lobbyists so long as it has been approved by the Legislative Council Committee. 11:08:44 AM REPRESENTATIVE KOHRING related his assumption that Version G incorporates the recommendations by the Alaska Public Offices Commission (APOC). MS. SNYDER replied yes. 11:08:58 AM REPRESENTATIVE HARRIS related his understanding that HB 489 came about due to the Fahrenkamp Classic and the Thanksgiving in March charitable events. He related his further understanding that this legislation is not meant to change the rules affecting lobbyist contributions to legislators. MS. SNYDER noted her agreement. CHAIR ROKEBERG explained that the legislation will allow what the legislature has been doing with regard to soliciting donations for charity and using staff to invite others to participate in the events. 11:10:27 AM TAMMY KEMPTON, Regulator for Lobbying, Alaska Public Offices Commission (APOC), Department of Administration, confirmed that Version G has incorporated the concerns she had expressed. She referred to page 2, line 25 and page 7, paragraph (11), which refer to "a contribution to a charity event". She informed the committee that what brought this matter to the attention of APOC was a letter soliciting for the Fahrenkamp Classic. She explained that an area of concern was in regard to the request in the letter for donations of items for goody bags for those putting. The goody bag is possibly something that isn't going to the charity. In other words, whoever putts will benefit from the gifts in the good bags. Therefore, she inquired as to whether the aforementioned language includes gifts in goody bags that are possibly distributed to staff and legislators. If so, she said that would be of concern. 11:13:19 AM CHAIR ROKEBERG, speaking as a past participant in the Fahrenkamp Classic, said he didn't recall goody bags. However, if there was such, he assumed that the goody bags would [include items] donated from a business through the tournament to the participant. Furthermore, he pointed out the restriction by which an active legislator can't receive a gift for which the value is over $250. He surmised that the aforementioned is a cap in the other sections of the statute. MS. KEMPTON agreed. 11:14:34 AM REPRESENTATIVE COGHILL also pointed out that under the Legislative Ethics rules, while in session legislators can't take anything from a lobbyist that can't be consumed. 11:14:50 AM REPRESENTATIVE HARRIS surmised that anything in the goody bag would be from the company not from a lobbyist and would have the company's logo on it. Therefore, the gifts [for the goody bag] wouldn't be from the lobbyist at all. Although the lobbyists represent the company within the system, the lobbyist is merely a figure for the corporation that actually does the donating. 11:15:51 AM MS. KEMPTON said then that the law doesn't prohibit the employer or client of the lobbyist from giving such a gift. REPRESENTATIVE HARRIS further surmised then that a goody bag could be put together so long as the items came from the corporation. MS. KEMPTON replied yes. 11:16:34 AM REPRESENTATIVE BERKOWITZ referred to page 5, Section 3, which seems to create an exception that allows minimal gifts of hospitality. He pointed out that these gifts could be consumed under [paragraph] (6) and not connected with the recipient's legislative status or are [gifts of] hospitality. He inquired as to the definition of hospitality. MS. KEMPTON pointed out that this particular section applies to legislators. Under the current lobbying law, a lobbyist is only allowed to give food and beverage for immediate consumption or tickets to a preapproved charity event during session. The problem with the Fahrenkamp Classic is that there isn't a need for tickets, which is why the issue has been brought forth. CHAIR ROKEBERG noted that there are tickets for the team entering in which the captain, the underwriter, of the team pays the entry fee. MS. KEMPTON said she wasn't aware of that. REPRESENTATIVE HARRIS related his understanding that this would allow a lobbyist, who might sponsor [a team], to be able to contribute to the charity. CHAIR ROKEBERG said that would be his assumption. 11:19:09 AM REPRESENTATIVE HARRIS related his understanding that Section 3 is already in law, the only change is the addition of [paragraph] (11), which refers back to [paragraph] 10. CHAIR ROKEBERG stated that the intent of HB 489 is to sanction the activities of charitable fundraising on the part of the legislature in order not to inhibit the legislature's ability to be a conduit for contributions that go to charity. 11:20:36 AM JOYCE ANDERSON, Administrator, Select Committee on Legislative Ethics, informed the committee that in 1994 the Select Committee on Legislative Ethics issued an advisory opinion, 94-06, allowing legislators and legislative staff to solicit and accept charitable donations from lobbyists. To date, there hasn't been a problem with the issue, as far as [the Select Committee on Legislative Ethics] is concerned. The aforementioned advisory opinion specified that as long as the contribution received from a lobbyist by legislators and legislative staff had no financial benefit to the legislator or legislative staff, then there was no problem. That advisory opinion further said that the identity of the recipient of a gift does matter in regard to whether the solicitation is prohibited. Therefore, Ms. Anderson said she agreed with Chair Rokeberg in that the intent of the legislation is not to allow solicitations for the goody bag but rather just on behalf of the charity itself. She, too, mentioned that this legislation isn't really changing what is in place with regard to organizations, corporations, and private individuals who contribute to charitable events. The legislation merely clears up an inconsistency in the ethics law in relation to the lobbying law. MS. ANDERSON highlighted that in the advisory opinion the following was noted: Therefore, you may solicit a charitable contribution from a lobbyist during a legislative session. The committee notes that the potential for the appearance of impropriety is high when legislators and legislative employees request favors of lobbyists even on behalf of worthwhile organizations. The committee therefore urges you to use caution in making a decision about whether to approach a lobbyist, especially during a legislative session. MS. ANDERSON then inquired as to whether the reference to "contribution" in statute should be changed to "charitable contribution", which would limit it to donations that go to the charity. She pointed out that there are many disclosure requirements currently in the ethics statutes regarding gifts. Therefore, she inquired as to whether the committee would want to also consider including [a provision requiring] the disclosure of gifts received by legislatures and legislative staff from lobbyists for preapproved charity events. 11:24:34 AM CHAIR ROKEBERG, speaking to Ms. Anderson's suggested language change, opined that the syntax in the sentence would make the change redundant. 11:25:23 AM REPRESENTATIVE HARRIS strongly disagreed with Ms. Anderson's latter suggestion regarding disclosure. He opined that if he has to disclose every time he asks someone to do something for charity, he would stop doing it. He mentioned the hard work involved in these charitable events. 11:26:06 AM CHAIR ROKEBERG opined that it would be difficult and unnecessary to disclose such. 11:26:29 AM REPRESENTATIVE COGHILL said that if the member actually received the contribution, then he could see the need for the disclosure. However, the legislator doesn't actually receive the [contribution]. 11:27:27 AM CHAIR ROKEBERG, upon determining no one else wished to testify, [closed public testimony]. 11:27:36 AM REPRESENTATIVE HARRIS moved to report CSHB 489, Version LS1753\G, Wayne, 3/11/06, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 489(RLS) was reported from the House Rules Standing Committee.
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