01/30/2007 08:00 AM House STATE AFFAIRS

HB 109-DISCLOSURES & ETHICS                                                                                                   
                                                                                                                                
8:05:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN  announced that  the first order  of business                                                               
was HOUSE BILL  NO. 109, "An Act relating to  the requirement for                                                               
candidates,  groups,  legislators,  public officials,  and  other                                                               
persons  to submit  reports electronically  to the  Alaska Public                                                               
Offices  Commission;  relating  to  disclosures  by  legislators,                                                               
public  members of  the Select  Committee on  Legislative Ethics,                                                               
legislative directors,  public officials, and  certain candidates                                                               
for public office concerning  services performed for compensation                                                               
and  concerning  certain  income,   gifts,  and  other  financial                                                               
matters;  requiring legislators,  public  members  of the  Select                                                               
Committee  on Legislative  Ethics, legislative  directors, public                                                               
officials,  and  municipal  officers to  make  certain  financial                                                               
disclosures  when they  leave office;  relating to  insignificant                                                               
ownership interest in a business  and to gifts from lobbyists for                                                               
purposes of the  Alaska Executive Branch Ethics  Act; relating to                                                               
certain restrictions  on employment  after leaving  state service                                                               
for  purposes of  the  Alaska Executive  Branch  Ethics Act;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
8:06:05 AM                                                                                                                    
                                                                                                                                
JOHN  BITNEY,  Legislative  Liaison,   Office  of  the  Governor,                                                               
introduced HB  109 on behalf  of Governor  Sarah Palin.   He said                                                               
the  bill  was   crafted  for  the  purpose   of  fulfilling  the                                                               
governor's  campaign  promises,   including:    filing  political                                                               
campaign reports electronically, asking  for more detail in terms                                                               
of  financial  disclosure,  banning  gifts  from  lobbyists,  and                                                               
tightening  restrictions  regarding  who can  become  a  lobbyist                                                               
after working for the legislature.                                                                                              
                                                                                                                                
MR. BITNEY explained  that the bill would  require lawmakers paid                                                               
more than  $1,000 for work  to specify  how much they  were paid,                                                               
how many hours  they worked, and describe in detail  what kind of                                                               
work they  did to earn that  money.  The bill  also would require                                                               
those  lawmakers  leaving  office  to report  all  financial  and                                                               
business interests within 90 days upon leaving office.                                                                          
                                                                                                                                
MR. BITNEY  stated that under  the bill,  those who work  for the                                                               
executive branch  would have   standards defining when  the value                                                               
of  their   stock  or  ownership   interest  in  a   business  is                                                               
significant.    The   bill  would  set  the   amount  at  $5,000.                                                               
Regarding the  ban on gifts  from lobbyists, he noted  that gifts                                                               
from  immediate  family or  a  neighbor  at Christmas  time,  for                                                               
example, where  there is no  intent to influence, would  not come                                                               
under this language.                                                                                                            
                                                                                                                                
MR. BITNEY said  the bill tightens the  restriction regarding who                                                               
can become a  lobbyist after leaving service.   He drew attention                                                               
to  Sections 10  and 11.   Section  10 addresses  whether or  not                                                               
someone can  go to work  for compensation after  leaving service,                                                               
and where  the conflict may exist  in terms of where  that person                                                               
is  allowed to  work.   Current language  in state  law makes  an                                                               
exception for  those who worked  on consideration of  matters for                                                               
legislative bills,  resolutions, or regulations, while  in public                                                               
service.     The  proposed  legislation   would  not   make  that                                                               
exception.  Mr.  Bitney noted that current  law prohibits certain                                                               
officials going into  lobbying for up to one  year after service,                                                               
and he said Section 11 would  add the following positions to that                                                               
prohibition:  deputy commissioners  and employees of the governor                                                               
who  are  in a  policy-making  position.    He stated  that  both                                                               
[Sections 10  and 11] are  designed to create more  confidence in                                                               
the public  that those  in office  are looking  out for  the best                                                               
interest of the state and its citizens.                                                                                         
                                                                                                                                
8:14:58 AM                                                                                                                    
                                                                                                                                
MR. BITNEY noted  that the effective date would be  July 1, 2007,                                                               
for  electronic  filing,  in  order   to  give  the  Division  of                                                               
Elections time to implement the system.                                                                                         
                                                                                                                                
8:15:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN,   regarding  Section  11,   stated  his                                                               
concern that the definition of  lobbyist and consultant is a grey                                                               
area.                                                                                                                           
                                                                                                                                
[HB 109 was heard and held.]