Legislature(1997 - 1998)

03/12/1998 08:05 AM House STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
HB 462 - USE OF STATE MONEY FOR IMAGES/MESSAGES                                
                                                                               
Number 0228                                                                    
                                                                               
CHAIR JAMES announced the next order of business is HB 462, "An Act            
relating to the contents of certain state documents."                          
                                                                               
Number 0235                                                                    
                                                                               
REPRESENTATIVE GENE THERRIAULT, Alaska State Legislature, came                 
before the committee.  He read his sponsor statement:                          
                                                                               
     House Bill 462 is designed to curtail the increasingly                    
     prevalent practice of using state publications to further                 
     personal political agendas.  HB 462 would place a number of               
     publications off-limits to state officials for personal                   
     purposes.  In the past, these documents have been used to                 
     disseminate legitimate programmatic deadline information, but             
     I believe that they have deteriorated recently into materials             
     used primarily for self promotion.  While any elected official            
     would relish the opportunity to send political and personal               
     messages to the electorate at state expense, this sort of                 
     message should be restricted to individual stationary or                  
     newsletter format purchased through the appropriate budgets.              
     The use of routine publications for this has the potential of             
     politicizing the underlying programs and I think that should              
     be curtailed.                                                             
                                                                               
Number 0253                                                                    
                                                                               
REPRESENTATIVE THERRIAULT read the following sectional analysis:               
                                                                               
     Section 1 amends AS 44.99 by adding a new section that                    
     prohibits state agencies from placing a picture of a state                
     official on an application form, warrant, or direct deposit               
     notice.  It limits the use of messages from state officials on            
     those publications to what is required by law, is necessary               
     for understanding the document, or addresses a seasonal health            
     issue.  It allows messages from the commissioner of the                   
     department, director of the division, or head of the                      
     legislative agency responsible for the program or activity for            
     which the document is issued as long as the message is limited            
     to stating the requirements of the program and providing                  
     reminders about deadlines.                                                
                                                                               
     The bill defines "state official" as the governor, lieutenant             
     governor, a legislator, a state judge, a state justice, the               
     commissioner or deputy commissioner of a state department, the            
     director or deputy director of a state department, a board                
     member of a public corporation of the state, a member of a                
     state commission, board, or the authority, an officer of the              
     University of Alaska, or an employee of the state.                        
                                                                               
REPRESENTATIVE THERRIAULT noted examples of past publications were             
provided to committee members, he believes some are appropriate                
messages some are clearly inappropriate.                                       
                                                                               
REPRESENTATIVE THERRIAULT indicated he went back and forth with the            
drafters on the wording of the bill.  If the committee has                     
suggestions on alternative wording, he would be willing to consider            
that.                                                                          
                                                                               
Number 0290                                                                    
                                                                               
REPRESENTATIVE DYSON made a motion to move HB 462 from the                     
committee with individual recommendations and attached fiscal                  
notes.                                                                         
                                                                               
REPRESENTATIVE BERKOWITZ objected for purpose of debating it.                  
                                                                               
CHAIR JAMES stated for the record that she had a similar concern               
last year.  It had to do with a mailing by governor that had to do             
with some of his credits and so forth that he was hoping to put                
through the legislature.  She pointed out that it was a fairly                 
large piece, she received as a small business and some of her                  
clients received it as well because it was (indisc.) up business               
tax.  It had a big picture of the governor on it.  Chair James                 
indicated it looked so much like a piece of campaign literature                
that she instructed her staff to call to find out how it was paid              
for because it didn't say that on it.  She said she wouldn't have              
done that had it looked like something she would have gotten from              
the governor's office, but the size of the picture, the whole thing            
looked to me like campaign material that you would see during a                
campaign season.  The ironic twist of the response she received,               
because the issue was credits against a tax and the question that              
my staff asked was, how was it paid for, and it was paid for just              
out of the governor's office funds.  She stated, "Then it was paid             
at the taxpayer's expense, he said no it wasn't because we don't               
have any taxpayers.  And the document itself was the taxpayer's                
(indisc.--coughing) we're going to get a credit if they did this.              
So I thought that statement by a staff person that was kind of                 
ironic, not that they had time to think about it, we don't have any            
personal tax but we do have a tax.  We have a corporate income tax,            
and this was definitely aimed toward them.  You know, there are                
taxpayers out there."                                                          
                                                                               
CHAIR JAMES reiterated she has never seen such a piece of                      
advertisement on an issue that didn't look so much like a campaign             
material.                                                                      
                                                                               
Number 0333                                                                    
                                                                               
REPRESENTATIVE THERRIAULT believes if we had a law that restricted             
anything that looked like "red light" campaign material, or if                 
there was a law (indisc.--background) the theft of original idea we            
would probably all would run afoul of that.  He believes it's                  
legitimate to differentiate between those things that he sends out             
on, a piece of stationary, that's purchased with state money.  He              
mentioned "We all get an office account and we can put out                     
newsletters, and certainly in my newsletter, I put my spin on the              
issues.  In letters, it has my political philosophy on a piece of              
legislation.  That's different though than an ordinary state                   
publication that's goes out once a month - and turning that into a             
personal propaganda piece."                                                    
                                                                               
Number 0351                                                                    
                                                                               
REPRESENTATIVE THERRIAULT continued, "There are lots of examples               
that I think the current Administration has taken the publications             
to a new all-time high.  Very slick, very good, at least this is               
not something that is once a month sent out to thousands of people             
in the state of Alaska who are participating in a particular                   
program.  Where did the mailing list for these publications come               
from, I don't know.  But this is not an ongoing state program that             
has been turned into a slick mailing (indisc.), that's what I'm                
getting at.  My concern is that the underlying programs become more            
and more politicized as that mailing list is used more and more to             
send out this type of application.  I think the previous                       
Administrations have resisted - maybe they just haven't been savvy             
enough to utilize that means as much as this Administration.  But              
I think with the appearance of a photo of the governor on                      
documents, the growth of that photo on documents - if we keep up               
this rate of growth pretty soon the yearly dividend application                
will be an eight by ten glossy.  I don't think we want to do that              
with that particular document and I don't think we should do that."            
                                                                               
Number 0372                                                                    
                                                                               
CHAIR JAMES remarked this is a really sensitive issue but really               
appreciates Representative Therriault bringing it forward because              
that's what she's heard from the public as well.  Regardless of                
politics, people have been making that statement, "Boy, this                   
governor sure does know how to advertise himself, and I've never               
seen it before."                                                               
                                                                               
REPRESENTATIVE BERKOWITZ stated, "There are some good ideas in your            
bill, but remember this legislative majority report to the people              
that was paid for by the people.  To me I found this probably more             
offensive than you find in these things, because this is a                     
publication that went out, that repeatedly referred to the                     
Republican led majority accomplishments, it has a web site                     
reference to the Republican organization, that didn't come out of              
personal office account, but went statewide.  Now, it would seem to            
me, in the interest of fairness, that you would close the door on              
this type of blatant partisan political advertisement as well.  And            
your bill doesn't do that."                                                    
                                                                               
REPRESENTATIVE THERRIAULT replied, "I clearly differentiate between            
that, and if that was attached to a check that you would receive               
from the government once a month, or a check that you are entitled             
to apply for once a year, I think both the Administration and the              
legislative branch have budgeted amounts to send out information in            
that format.  Certainly if you want to introduce legislation to                
curtail that, that's a step further than what this legislation                 
(indisc.).  What this legislation is designed to do is                         
differentiate between those ongoing state programs and attaching               
any kind of information, that information, this information, to                
documentation that is sent out in conjunction with an ongoing state            
program."                                                                      
                                                                               
Number 0403                                                                    
                                                                               
REPRESENTATIVE ELTON said he was curious about some instances in               
which he may run afoul of this.  He stated, "The way I read this is            
that it not only covers visage, or photo, ... Would this prohibit              
me - one of the things that I do is I send a notice to people, in              
my community, that they have not yet applied for the permanent fund            
dividend, it's a message.  I do it on letterhead, suggesting that              
if you haven't done this you ought to do it because the deadline is            
March 31.  Would this legislation prohibit me from doing that?"                
                                                                               
REPRESENTATIVE THERRIAULT responded he didn't believe so, it's not             
intended to.  He asked Representative Elton if he was using his                
office account to pay for that.                                                
                                                                               
REPRESENTATIVE ELTON replied he would be.                                      
                                                                               
REPRESENTATIVE THERRIAULT stressed you are not using the mailing of            
a dividend document and attaching your message to that document.               
                                                                               
REPRESENTATIVE ELTON referred to page 2, line 4, "program" is                  
defined as "permanent fund dividend program" and "longevity bonus              
program."  He asked if that definition only applies if it's a                  
warrant.                                                                       
                                                                               
Number 0426                                                                    
                                                                               
REPRESENTATIVE THERRIAULT referred to page 1, line 7, "may not                 
place a message from a state official on or with an application."              
He explained you can't put the message on the check stub.  You                 
can't put the message on the application form.  If you're using                
your own office account and stationary you should be allowed to do             
that.  A newsletter from your office is not on the warrant, not                
sent out with the application, or any part of the application, so              
that would not be swept in by this bill.                                       
                                                                               
REPRESENTATIVE BERKOWITZ asked what if Representative Elton, or any            
of us were to send out a PFD (permanent fund dividend) application             
with a letter.                                                                 
                                                                               
REPRESENTATIVE THERRIAULT replied, "I didn't think that would fall             
in here because, number one I would suspect that you would be using            
your own postage, and again the message -- you're right, there                 
might be something here that if you got a blank application and                
sent it out with the form - I think we could probably craft                    
language if that is a legitimate concern so that it's the mailing              
coming from the division, so you would not be able to supply the               
dividend division with ten thousand messages that they would insert            
in with their mailing.  But if you want to get a bunch of blank                
forms and you send things out yourself that would be fine.  But you            
should not be able to piggyback on the statewide postage."                     
                                                                               
Number 0454                                                                    
                                                                               
CHAIR JAMES asked if there was any reason HB 462 could be held                 
over.  Since no one was left to testify on line to teleconference,             
she asked if it could be shut down.  [Lost sound, didn't pick up               
full statement].                                                               
                                                                               
Number 0462                                                                    
                                                                               
JACK KREINHEDER, Senior Policy Analyst, Office of Management and               
Budget, Office of the Governor, came before the committee.  He said            
he would start by answering Representatives Berkowitz' and Elton's             
questions.  His understanding of the bill is that you would not be             
prohibited from the situation of sending out a PFD application with            
a message that the deadline is coming up, or what have you, because            
on line 7, page 1, it says a "state agency may not place a                     
message..." since you're not a state agency, he believed he would              
be okay there.  He noted, "However, that's notwithstanding, we do              
have some serious concerns about this bill.  Our overall concern is            
that, in addressing a couple of specific instances that legislators            
may have disagreed with the Administration on the content of                   
messages, that it's casting a very broad net and placing a very                
broad restriction on helpful communications between state                      
government and the people of the state.  A couple of specific                  
examples that they're concerned about -- the 1998 PFD application              
for example has this information from the Permanent Fund                       
Corporation that provides information about the fund's performance             
and balance and so on.  His reading of the bill is that this                   
helpful information would be prohibited because it's not addressing            
the requirements of the program or a reminder about the deadline.              
That's one concern is that this type of information would be                   
prohibited, as he reads it, as well as the brochure that's included            
with the checks themselves come from the corporation, not from the             
Administration or a message by the governor.                                   
                                                                               
MR. KREINHEDER pointed out other areas of concern is for example               
with business license applications.  As he understands, the                    
Department of Commerce [and Economic Development] doesn't provide              
routine mailings of this type, that (indisc.) situation where the              
department might want to provide information about an upcoming                 
small business conference, information on other types of assistance            
that are available from the department for small business.  So,                
again, the concern is that this is casting a very broad net if                 
there are concerns about particular messages.  He thinks that is               
something they could talk about, but to prohibit any type of                   
mailing, or additional information not related to deadlines or                 
program requirements are accessibly broad.  He asked if Nanci Jones            
had anything to add to that.                                                   
                                                                               
Number 0511                                                                    
                                                                               
NANCI JONES, Director, Permanent Fund Dividend Division, Department            
of Revenue, was next to testify.  She indicated she just wants to              
give a chronology of the dividend booklet.  Ms. Jones said,                    
"Governor Hammond, starting in 1979, started endorsing the                     
application process and he had signed letters.  Only one time in               
four years he had, on the outside cover - front and back, he had               
endorsed letters to each Alaskan.  In 1988 the dividend division               
was borne where all the services, pertaining to the application and            
the dissemination of the check was under one division - and                    
Governor Cowper then had endorsed them on the outside of the                   
booklet."                                                                      
                                                                               
MS. JONES continued, "Since the history, the booklet has looked                
like an encyclopedia and it was my desire, as the new division                 
director, to add a little bit of human service into the booklet so             
people could better relate to us.  When we first came in, and you              
all can share with me that you were getting tons of letters,                   
complaints about the type of service that we were giving to the                
applicants over in the Permanent Fund Dividend Division.  The first            
booklet had an endorsed letter by Governor Knowles, no pictures,               
the only picture, again was a survey that the Permanent Fund                   
Corporation sent out asking, 'What do you do with your dividend, do            
you spend it or do you save it,' that was the first picture.  And              
the next I asked the governor's office to give me a picture because            
I knew the corporation was going to do pictures, and I, myself,                
asked the staff to pose for a picture on the outside of the                    
booklet, so again we could have a better relationship - that people            
can see that we are humans, we're not designed to not give them a              
dividend.  Again, that was the pictorial one 1997."                            
                                                                               
MS. JONES concluded, "In 1998, then the only picture - then again              
the board of trustees, it has the page explaining what the progress            
of the dividend's fund (overall fund), and then it has a letter on             
it which just explains how much is in the fund and reminding people            
to help other people to file.  And I just sent out a letter which              
you all should have received to ask you to remind your                         
constituents, when you leave on your break, to file by the                     
deadline.  I just wanted to make that clear that it was actually               
for the dividend.  It was actually my idea to redesign the booklet,            
to make it a little friendlier, easier to read, more white space.              
So I would like to take credit for that."                                      
                                                                               
Number 0544                                                                    
                                                                               
CHAIR JAMES told Ms. Jones she has done a fine job on the booklet.             
Chair James asked her to hold up the 1997 and 1998 booklets to see             
the comparison (a little picture in 1997 and a bigger picture in               
1998).  She noted the perception of the public is what it appears              
to them to be, that the governor has been, for four years, running             
for office on government funds.  She agreed that they get nit-                 
picky, what we do to solve the problem of the perception with the              
public is we make innocent things illegal and we do it time after              
time.  Maybe where this belongs is in the ethics bill, the public              
needs to feel comfortable with the way that their state funds are              
being spent.                                                                   
                                                                               
REPRESENTATIVE BERKOWITZ said he agrees completely that those kinds            
of political messages, on government publications, are                         
inappropriate.  It doesn't matter whether it's a Democrat or                   
Republican putting them out.                                                   
                                                                               
MR. KREINHEDER said this is not a political message, he encouraged             
them to read it.  It simply talks about how successful our                     
permanent fund has been, a source of pride and security for all of             
us, be sure to fill out your application today, if you know                    
somebody who might need help please lend a hand, the deadline                  
(indisc.) filing, etcetera.                                                    
                                                                               
Number 0591                                                                    
                                                                               
REPRESENTATIVE BERKOWITZ said he understands that but some of the              
examples that Representative Therriault sited, whether it's                    
discussion of ongoing or legislative issues, he does find that                 
inappropriate.  If you're going to send something out, you send out            
what you're going to send out, he thinks to some extent rank has               
its privileges, the governor can put his picture on certain things,            
he can sign certain things, but it's not fair to log (indisc.) in              
official publications.                                                         
                                                                               
CHAIR JAMES noted she gets the Governor's Message every month on               
the longevity bonus, generally they're compassionate, but we have              
had some that were very pointed as well.  There isn't enough room              
on there to let seniors know what you're talking about.  If there's            
a hot button in there, that's a political message and is                       
inappropriate.  When it comes to ethics, we all know what's                    
ethical, but there's another level and that's what the public                  
suspects as ethical or not.                                                    
                                                                               
Number 0617                                                                    
                                                                               
MS. JONES made a plea to not relegate them back to where they are              
like an encyclopedia and it's all words and no one reads it and                
it's just a waste of money.  She stressed there are some                       
publication people in the small villages won't get except for -                
unless we put the fund information in with their dividend.                     
                                                                               
CHAIR JAMES asked about closing the fiscal gap.                                
                                                                               
MS. JONES replied it's the insert that was in with your check and              
it's all about fund transfers and the amount of the earnings...                
Corporation.                                                                   
                                                                               
CHAIR JAMES asked what's the picture about closing the fiscal gap,             
what's that issue.                                                             
                                                                               
MS. JONES reported they wanted your thoughts to establish (indisc.)            
whether you disagreed, agreed or disagree, it was a survey.  There             
is more about the fiscal gap and the difference between...                     
                                                                               
REPRESENTATIVE IVAN IVAN jokingly said, "Include all 60 legislators            
in that packet and I'll feel comfortable."                                     
                                                                               
Number 0634                                                                    
                                                                               
REPRESENTATIVE THERRIAULT reiterated, "We went around and around in            
trying to decide where to draw the line and that's why I said I'm              
not wedded to any particular language.  Maybe the sensible thing is            
no official holding an elected office.  I think that the format of             
the dividend application - it's much more pleasing to look at now.             
We've all learned constructive use of white space, I agree with the            
steps that they've taken.  He asked is there any reason why the                
picture on the front couldn't be a picture of the permanent fund               
staff, same information, same pleas, get in touch if you have a                
question.  Is there any particular reason why my picture's not on              
there?  How about me having a personal message wishing happy Easter            
to all the constituents that get a dividend check, or bonus check              
in my district signed by me.  Why can't we have the longevity bonus            
staff wishing people a Merry Christmas?  Let's take it all the way             
back to the days in, I think Chicago, when your government check               
was given to the politician and he came around, knocked on your                
door and gave you your paycheck.  Just send all the dividend checks            
to me, I'll set up a little stand on the street corner, people can             
stop by and get their dividend check from me.  They'll know where              
the money came from.  It came from me.  I think that's sort of the             
message that we put out.  I think it's inappropriate for me to have            
that access to those publications, I think it's inappropriate                  
clearly for any elected official to have access and we know that               
when you put out a newsletter.  The advice you get is put on a                 
picture, don't send anything out, a newsletter format, without                 
putting lots of pictures and use that white space.  Any elected                
official would love to have access to that.  I just think it should            
be completely disallowed."                                                     
                                                                               
Number 0658                                                                    
                                                                               
REPRESENTATIVE BERKOWITZ jokingly said the Co-chair of Finance                 
[Representative Therriault] does know that the money does come from            
him.                                                                           
                                                                               
CHAIR JAMES indicated HB 462 would be brought up at the next                   
meeting.                                                                       

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