Legislature(2005 - 2006)CAPITOL 106

01/24/2006 08:00 AM House STATE AFFAIRS


Download Mp3. <- Right click and save file as

Audio Topic
08:09:23 AM Start
08:11:11 AM Commissioner, Department of Administration
08:59:48 AM Lieutenant Governor Designee
09:09:29 AM Alaska Public Offices Commission (apoc)
09:19:47 AM HB278
09:22:07 AM HB194
09:32:50 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation Hearings: TELECONFERENCED
Commissioner, Dept. of Administration
Lieutenant Governor Designee
Alaska Public Offices Commission (APOC)
+= HB 278 RETIREMENT SYSTEM BONDS TELECONFERENCED
Heard & Held
+= HB 194 EXEC. BRANCH ETHICS: FINANCIAL INTERESTS TELECONFERENCED
Moved CSHB 194(STA) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
HB 194-EXEC. BRANCH ETHICS: FINANCIAL INTERESTS                                                                               
                                                                                                                                
9:22:07 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced that the  last order of business was HOUSE                                                               
BILL NO.  194, "An Act  prohibiting a public officer  from taking                                                               
official action  regarding a matter  in which the  public officer                                                               
has  a significant  financial  interest;  and defining  'official                                                               
action' for purposes of the  chapter generally referred to as the                                                               
Executive Branch Ethics Act."                                                                                                   
                                                                                                                                
9:22:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LES  GARA, Alaska State Legislature,  testified as                                                               
sponsor of  HB 194.   He reviewed that  the bill came  about last                                                               
year  because of  ethics questions  revolving  around "the  Gregg                                                               
Renkes affair."  He mentioned  Mr. Bundy, an independent counsel,                                                               
and a counsel for the Personnel Board.                                                                                          
                                                                                                                                
REPRESENTATIVE GARA reviewed the problem as follows:                                                                            
                                                                                                                                
     Even though the  law prevents you from acting  in a way                                                                    
     to benefit your own  financial interest, there's always                                                                    
     been an  exception in the  law that says,  "Except when                                                                    
     that  interest is  insignificant."   And the  attorneys                                                                    
     said maybe it's  not so clear what  insignificant is in                                                                    
     our law.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  GARA  reminded  the  committee  of  the  numerous                                                               
amendments that  were bandied about  to decide on an  amount that                                                               
could be  called significant, finally deciding  on $10,000, which                                                               
is right  in line with  what many other states  do.  He  said the                                                               
public  called  for  a  quick  fix and  "this,  I  think,  is  an                                                               
appropriate way to deal with that issue."                                                                                       
                                                                                                                                
9:24:27 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  noted that a  copy of the "Alaska  Executive Branch                                                               
Ethics Act" is in the committee packet.                                                                                         
                                                                                                                                
9:25:10 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GARA,   in   response   to   a   question   from                                                               
Representative Gatto,  confirmed that there is  a separate ethics                                                               
code for executive ethics.                                                                                                      
                                                                                                                                
9:25:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTO  asked  Representative Gara  if  he  thinks                                                               
there  should  be  one  set   of  rules  for  the  executive  and                                                               
legislative to follow.                                                                                                          
                                                                                                                                
9:25:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARA  said he  doesn't  think  so.   He  said  he                                                               
doesn't think an  executive branch member should ever  work on an                                                               
issue  that  has  a  bearing   on  his/her  financial  situation.                                                               
Legislators  on  the House  floor  declare  their conflict,  then                                                               
still have to vote.  He  said if executive [ethics] rules applied                                                               
on the  House floor, for  example, then many House  members would                                                               
not be  allowed to vote,  even on  mundane issues.   He suggested                                                               
that  the legislative  ethics rules  might  be strengthened,  but                                                               
should not be the same.                                                                                                         
                                                                                                                                
9:26:49 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  said he  thinks the  general provisions  are there,                                                               
but  how they  should  apply  to an  elected  official versus  an                                                               
administrative official are slightly different.                                                                                 
                                                                                                                                
9:27:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAMRAS said he is  an advocate of clean government                                                               
but wants to know how an amount  is decided upon - how the bright                                                               
line is set.                                                                                                                    
                                                                                                                                
9:28:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARA  said the language  of the law says  a person                                                               
cannot use  state time, property,  equipment, or  official action                                                               
to benefit his/her personal interest.  He continued:                                                                            
                                                                                                                                
     I think that should be the  end of the law; I think you                                                                    
     just shouldn't  do it  if it  benefits you.   A  lot of                                                                    
     people  had made  the point  that if  ... it's  a minor                                                                    
     financial interest, then  it's not that big  of a deal.                                                                    
     And so, there's this exception  in our law that says if                                                                    
     the amount is insignificant,  then we're just not going                                                                    
     to hassle you about it.   I ... don't know that I agree                                                                    
     with  that exception;  I think  I might  just have  the                                                                    
     flat rule that if you  do something to benefit yourself                                                                    
     or  your  financial  position,   it's  improper.    But                                                                    
     recognizing that  almost no other state  goes that far,                                                                    
     and recognizing that Mr. Bundy  and Mr. Daniel had done                                                                    
     a fair  amount of research  to try and figure  out what                                                                    
     might  be most  workable,  I decided  to  go with  what                                                                    
     seems to  fall within  the range  of what  other states                                                                    
     have done,  and they  grant the  exception for  what is                                                                    
     $5,000 or $10,000 worth of a financial interest.                                                                           
                                                                                                                                
REPRESENTATIVE GARA  said there is  no scientific reason  that he                                                               
chose  the  amount   of  $5,000,  and  he  said   he  thinks  the                                                               
committee's choice of $10,000 is fine.                                                                                          
                                                                                                                                
9:30:53 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON,  after ascertaining that  there was no one  else to                                                               
testify, closed public testimony.                                                                                               
                                                                                                                                
9:32:01 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GATTO moved  to report HB 194, as  amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHB  194(STA)  was                                                               
reported out of the House State Affairs Standing Committee.                                                                     

Document Name Date/Time Subjects