Legislature(2007 - 2008)CAPITOL 106

01/29/2008 08:00 AM House STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 317 COMPASSIONATE GIFT EXEMPTION TELECONFERENCED
Moved Out of Committee
*+ HB 293 LEGISLATIVE SESSIONS TO BE IN ANCHORAGE TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
HB 317-COMPASSIONATE GIFT EXEMPTION                                                                                           
                                                                                                                                
8:08:05 AM                                                                                                                    
                                                                                                                                
VICE CHAIR ROSES  announced that the first order  of business was                                                               
HOUSE  BILL   NO.  317,   "An  Act   eliminating  the   limit  on                                                               
compassionate  gifts that  a legislator  or legislative  employee                                                               
may  solicit, accept,  or receive  under  the Legislative  Ethics                                                               
Act; and providing for an effective date."                                                                                      
                                                                                                                                
8:08:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL  introduced HB 317  as prime sponsor.   He                                                               
said  the Select  Committee on  Legislative Ethics  asked him  to                                                               
sponsor the  proposed legislation,  which would remove  the limit                                                               
from compassionate giving.  He  related that currently there is a                                                               
legislative  member who  may  not  be able  to  receive a  needed                                                               
kidney donation, because the value  of getting the organ would be                                                               
over  $250 -  the  limit currently  in  statute.   Representative                                                               
Coghill  explained that  a kidney  is  priceless; therefore,  the                                                               
value  in  question  is  related   to  the  cost  of  making  the                                                               
compassionate   gift,  including   travel   and  medical   costs.                                                               
Representative  Coghill paraphrased  the  last  paragraph of  the                                                               
sponsor statement, which read [original punctuation provided]:                                                                  
                                                                                                                                
     HB  317   eliminates  the  less  than   $250  limit  on                                                                    
     compassionate  gifts from  AS  24.60.075(c) and  allows                                                                    
     unlimited compassionate  contributions, including organ                                                                    
     and frequent  flyer donations.  Mandatory  reporting of                                                                    
     the compassionate fits is still required.                                                                                  
                                                                                                                                
REPRESENTATIVE COGHILL said  it had been suggested to  him that a                                                               
cap should be placed on the gift  value.  He stated, "If for some                                                               
reason it's  inordinate, you still  have the  Legislative Council                                                               
who will be  looking at it, and  certainly if it gets  way out of                                                               
order [the  Internal Revenue  Service (IRS)]  will be  looking at                                                               
it."    He   said  the  legislature  anticipated   the  need  for                                                               
compassionate  gifts,  but  the  $250 was  "conforming  to  other                                                               
areas."                                                                                                                         
                                                                                                                                
8:11:33 AM                                                                                                                    
                                                                                                                                
VICE  CHAIR ROSES  noted that  there had  been discussion  in the                                                               
Ethics Committee  regarding the $250  limit, and while  some felt                                                               
the limit  was not  necessary, others  felt the  need to  close a                                                               
loophole.                                                                                                                       
                                                                                                                                
8:12:10 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  said  he  had been  concerned  that  the                                                               
legislature not  try to establish the  value of a kidney,  and he                                                               
expressed appreciation that the  bill sponsor had established for                                                               
the record  that indeed that  is not what  the bill is  trying to                                                               
do.                                                                                                                             
                                                                                                                                
8:13:11 AM                                                                                                                    
                                                                                                                                
JOYCE ANDERSON, Ethics  Committee Administrator, Select Committee                                                               
on Legislative Ethics, Legislative  Agencies & Offices, confirmed                                                               
Vice Chair  Roses' remark  regarding the  concerns of  the Ethics                                                               
Committee.   She  relayed that  she  has received  three or  four                                                               
phone calls  regarding the donation of  air miles.  The  $250 cap                                                               
limits the donation of air  miles to Representative Foster to use                                                               
for round  trip travel  to Seattle [for  medical purposes].   She                                                               
said Northwest Airlines assigned a  value of $100 for each 10,000                                                               
miles.  Ms.  Anderson said another concern was  a fundraiser held                                                               
in Nome, during  which the Lion's Club raised $7,000.   There was                                                               
no  accounting of  where  the money  came from,  she  said.   She                                                               
added, "And if  there was [a] $250 limit, we  would have no idea,                                                               
because  the Lion's  Club  just  had a  chicken  barbeque and  so                                                               
forth."   She  said  she thinks  the $250  limit  puts an  unfair                                                               
burden  on  the  individual  who  is  having  the  health-related                                                               
problem,  catastrophe,  or  tragedy,  and that  limit  should  be                                                               
lifted.  She said the person  should be required simply to report                                                               
the dollar amount or air miles received.                                                                                        
                                                                                                                                
MS. ANDERSON, in  response to Vice Chair  Roses, acknowledged the                                                               
reporting requirement  exists in  the proposed legislation.   The                                                               
recipient would be  required to report the gift within  30 days -                                                               
the  disclosure is  public.   It would  not be  published in  the                                                               
Legislative Journal;  however, it would  be posted on  the Ethics                                                               
website and  listed with  all the other  disclosures.   She added                                                               
that there is some oversight provided, as well.                                                                                 
                                                                                                                                
8:15:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  stated that his  only concern is  the 30-                                                               
day  reporting  period.   He  questioned  whether that  would  be                                                               
enough  time for  someone who  is recovering  from a  potentially                                                               
life-threatening disease,  for example.   He  used Representative                                                               
Foster as an  example, commenting that he  hopes the legislator's                                                               
top  priority when  going  for  a live  transplant  would not  be                                                               
filling out a form, but rather getting well.                                                                                    
                                                                                                                                
8:16:42 AM                                                                                                                    
                                                                                                                                
MS. ANDERSON  said the 30-day reporting  requirement was included                                                               
because that's  what all the  other deadlines are; it's  a matter                                                               
of consistency.   Notwithstanding that, she said  she can foresee                                                               
no problem in  amending that to a 60-day  requirement or whatever                                                               
the committee  decides is  realistic.  She  stated, "This  is not                                                               
the type  of reporting  that would  be similar  to, let's  say, a                                                               
gift of travel or some of those that need the 30-day reporting."                                                                
                                                                                                                                
8:17:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON asked  what  the response  of the  Ethics                                                               
Committee would  be if someone were  late to report in  this type                                                               
of situation.                                                                                                                   
                                                                                                                                
MS. ANDERSON  answered that there  is one "free"  disclosure that                                                               
comes  in  late.    Furthermore, the  Ethics  Committee  has  the                                                               
discretion  to  say  that there  were  inadvertent  circumstances                                                               
regarding the disclosure,  in which case, there would  be no fine                                                               
filed at all.                                                                                                                   
                                                                                                                                
REPRESENTATIVE JOHNSON  said he  is comfortable knowing  that the                                                               
committee has that latitude.                                                                                                    
                                                                                                                                
8:18:08 AM                                                                                                                    
                                                                                                                                
VICE CHAIR ROSES,  speaking as a member of  the Ethics Committee,                                                               
said  the  group   of  people  serving  on   that  committee  are                                                               
compassionate, and  "there isn't any  way in the  world anybody's                                                               
going to  be fined or  be found in  violation of the  ethics laws                                                               
under those kinds of circumstances."                                                                                            
                                                                                                                                
8:18:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL said  he is content to  keep the reporting                                                               
requirement at  30 days  for the sake  of consistency,  given the                                                               
latitude of the committee.                                                                                                      
                                                                                                                                
8:19:37 AM                                                                                                                    
                                                                                                                                
VICE CHAIR ROSES,  after ascertaining that there was  no one else                                                               
to testify, closed public testimony.                                                                                            
                                                                                                                                
8:19:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL  moved to report  HB 317 out  of committee                                                               
with individual recommendations and  the accompanying zero fiscal                                                               
note.  There  being no objection, HB 317 was  reported out of the                                                               
House State Affairs Standing Committee.                                                                                         

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