Legislature(2007 - 2008)BELTZ 211

02/05/2008 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 122 MUNICIPAL PROPERTY TAX EXEMPTION TELECONFERENCED
Moved SB 122 Out of Committee
+= SB 182 CLEAN ELECTIONS TELECONFERENCED
Heard & Held
+= SB 204 MUNI TAX EXEMPTION: COMBAT DEATHS TELECONFERENCED
Scheduled But Not Heard
+= SB 235 ALCOHOL: LOCAL OPTION/LICENSING/MINORS TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
                     SB 182-CLEAN ELECTIONS                                                                                   
                                                                                                                                
CHAIR OLSON announced the consideration of SB 182.                                                                              
                                                                                                                                
3:34:43 PM                                                                                                                    
SENATOR  WIELECHOWSKI   said  a  group  was   pursuing  a  ballot                                                               
initiative  on   this  subject.  The  initiative   was  initially                                                               
rejected by  the Lieutenant Governor  because he said it  had two                                                               
topics, and only one is  allowed. An Alaskan cartoon spoofed that                                                               
there indeed  were two  topics: clean and  elections. He  said SB
182  provides for  public funding  of elections.  He referred  to                                                               
candidates  for state  office who  demonstrate a  strong base  of                                                               
support and  agree to  forego most private  funding. He  said the                                                               
most  important  thing  is  that a  person  can  still  privately                                                               
fundraise. "You  have the option of  forgoing private fundraising                                                               
in exchange  for public  financing." To show  the strong  base of                                                               
public support  a candidate must  get a specific number  of $5.00                                                               
qualifying  contributions from  registered voters  in his  or her                                                               
district. For the State House a  person needs $200, for the State                                                               
Senate it  is $400, and  for the  governor's race a  person needs                                                               
$3,000  in qualifying  contributions.  The one  exception to  the                                                               
private fundraising rule is that  candidates are allowed to raise                                                               
a  limited amount  of  seed money  to aid  in  the collection  of                                                               
qualifying  contributions. The  bill  provides for  $1,000 for  a                                                               
house  seat,  $2,000 for  a  senate  seat,  and $20,000  for  the                                                               
governor  race.  Any one  contribution  cannot  exceed $100.  The                                                               
amounts are based on what it takes to run a campaign in Alaska.                                                                 
                                                                                                                                
3:36:54 PM                                                                                                                    
SENATOR WIELECHOWSKI  said a goal  of clean elections is  to slow                                                               
down  the escalating  campaign  costs.  Primary candidates  would                                                               
receive $16,000  for the house,  $24,000 for the senate,  and the                                                               
gubernatorial candidates would receive  $250,000. For the general                                                               
elections,  candidates  will  receive   $24,000  for  the  house,                                                               
$36,000 for the senate, and  $500,000 for the governor's race. If                                                               
a "clean elections"  candidate is outspent by an  opponent, he or                                                               
she  receives  up  to  three   times  that  limit  to  match  the                                                               
opponent's expenditures. The provision  provides an incentive for                                                               
all  candidates  to participate  in  the  system. He  added  that                                                               
political  parties  can  give  an   extra  10  percent  to  their                                                               
candidates.  Candidates without  a  recognized  party receive  70                                                               
percent of the  limit, while minor party  candidates receive full                                                               
funding. An unopposed  candidate will only receive  25 percent of                                                               
the funding limits.  Other states have adopted  a similar system.                                                               
Maine and  Arizona use  it statewide, "and  they've had  quite an                                                               
experience with it."                                                                                                            
                                                                                                                                
3:38:41 PM                                                                                                                    
SENATOR  WIELECHOWSKI said  Arizona and  Maine have  gone through                                                               
four election  cycles, and voters  and candidates like  the clean                                                               
elections system - including 80  percent of the public. In Maine,                                                               
more  candidates opt  for  the  system every  year.  In 2002,  62                                                               
percent used it,  and in 2006, 81 percent of  all candidates used                                                               
it. More  people are voting  in Arizona since  implementing clean                                                               
elections.  Voter turnout  has increased  by 34  percent in  non-                                                               
presidential  years.  The  number of  campaign  contributors  has                                                               
skyrocketed in Arizona  -- three times more people  have given to                                                               
gubernatorial races.  It opens  it up to  lower income  people to                                                               
contribute.  It  is  nonpartisan. Arizona  elected  22  publicly-                                                               
funded  Republicans and  17  publicly-funded  Democrats in  2002,                                                               
and, in 2006, it was 34 Republicans and 50 Democrats.                                                                           
                                                                                                                                
3:40:25 PM                                                                                                                    
SENATOR WIELECHOWSKI  said Arizona has the  first publicly-funded                                                               
governor now. Nine  of the eleven public offices  are filled with                                                               
publicly-funded  candidates.   The  concept  is  to   reduce  the                                                               
influence of large  donors and increase the  influence of voters.                                                               
It will force  a candidate to be out with  the voters, as opposed                                                               
to  spending  time fundraising.  A  recent  poll showed  that  70                                                               
percent  of Alaskans  favored the  idea. In  2006, more  than $17                                                               
million  was spent  on campaigns  for Alaska  state offices.  The                                                               
cost of clean elections depends  on the number of candidates. The                                                               
Supreme Court requires that participation  must be voluntary. The                                                               
fiscal  note  decreases  as  more  people  participate  in  clean                                                               
elections  because  if  the  "non-clean"  candidates  raise  more                                                               
money,  the others  get more  public  money. He  has requested  a                                                               
fiscal note from  the Administration for "months  and months" and                                                               
hopes to have one soon.                                                                                                         
                                                                                                                                
3:43:04 PM                                                                                                                    
SENATOR WIELECHOWSKI  said he estimates  that it will  cost about                                                               
$5 million. There is also  a citizen's initiative by Alaskans for                                                               
Clean  Elections,   and  it  has   collected  more   that  32,000                                                               
signatures. It will  likely appear on the  August primary ballot.                                                               
The Division of  Elections has to verify the  signatures. He gave                                                               
a quote from  Bill Moyers: "People who have more  money should be                                                               
free  to buy  more cars,  more  homes, more  vacations, and  more                                                               
gizmos than the rest  of us. They should not be  able to buy more                                                               
democracy."  That is  the  goal behind  the  bill. Every  citizen                                                               
should be  able to have  an active  role in selecting  their next                                                               
legislator.  Statistics show  that  90 percent  of  the time  the                                                               
candidate  with  the most  money  wins.  SB  182 will  level  the                                                               
playing field.                                                                                                                  
                                                                                                                                
3:44:28 PM                                                                                                                    
SENATOR  WIELECHOWSKI said  this  is an  educational process.  It                                                               
will likely  be on  the ballot,  so if  the legislature  wants to                                                               
discuss it  and add amendments, this  is the time. If  it were to                                                               
pass in  August it will be  enacted in 2010. He  said changes can                                                               
be made to the legislation so that it fits well in Alaska.                                                                      
                                                                                                                                
3:45:42 PM                                                                                                                    
CHAIR OLSON asked the last time a state implemented this.                                                                       
                                                                                                                                
SENATOR  WIELECHOWSKI  said Maine  and  Arizona  passed it  about                                                               
eight   years   ago.   Other  states,   including   New   Jersey,                                                               
Massachusetts, and  Connecticut, just recently passed  it. Voters                                                               
typically do  it through the  initiative process.  Connecticut is                                                               
the first state to do it legislatively.                                                                                         
                                                                                                                                
3:46:46 PM                                                                                                                    
SENATOR  WAGONER  asked  about  Maine's  former  restrictions  on                                                               
donations   from   PACS   [Political   Action   Committees]   and                                                               
corporations. "We've  got pretty  stringent requirements  of what                                                               
people  have  to  report  and  also what  you  can  receive  from                                                               
different  people and  also  what  you can  receive  from out  of                                                               
state."                                                                                                                         
                                                                                                                                
SENATOR  WIELECHOWSKI said  he will  look into  it. Someone  from                                                               
Arizona is on line.                                                                                                             
                                                                                                                                
ERIC  EHST,   Executive  Director,  Clean   Elections  Institute,                                                               
Arizona, said the institute is  the successor organization to the                                                               
committee  that created  Arizona's Clean  Elections Act  of 1988.                                                               
Since  the  1980s  Arizona  had   limits  on  contributions  from                                                               
individuals  and PACs.  They are  fairly low,  and they  were not                                                               
really  changed by  the act.  The limits  exist along  with clean                                                               
elections. In  2008, an individual or  PAC can give no  more than                                                               
$390 to  a state  legislative candidate. A  "super" PAC  can give                                                               
more. Corporations can not give to any candidate race.                                                                          
                                                                                                                                
3:49:19 PM                                                                                                                    
SENATOR  STEVENS  asked  how  much was  spent  in  Alaska's  last                                                               
election. People  he knows  run and  spend up  to $100,000  for a                                                               
senate seat.  Without counting the  gubernatorial race,  "I would                                                               
guess we're  currently spending a  lot more than $5  million. Can                                                               
you clarify that?"                                                                                                              
                                                                                                                                
3:50:15 PM                                                                                                                    
SENATOR  WIELECHOWSKI said  he estimated  that about  $17 million                                                               
was  spent  on  state  elections.  "The money  that  we  give  is                                                               
limited," but there isn't a fiscal  note yet. He is estimating $5                                                               
million or more.  It will depend on how  many people participate,                                                               
and it  will be  more in  gubernatorial years.  He expects  it to                                                               
decrease over the years.                                                                                                        
                                                                                                                                
SENATOR STEVENS  said he  is blessed  by living  in a  rural area                                                               
because he can't  purchase television ads if he  wanted to. Urban                                                               
candidates would need more than $40,000 to run a campaign.                                                                      
                                                                                                                                
3:51:45 PM                                                                                                                    
SENATOR WIELECHOWSKI  said one of the  goals is to keep  costs in                                                               
check. Candidates should go door to  door rather than buy ads. He                                                               
spent  $147,000 when  he ran  for his  seat. Urban  candidates do                                                               
spend more because  of television access. That is  what the clean                                                               
elections system  is trying to  get away from: the  candidate who                                                               
buys 30-second  sound bites. It  is hard to  get a good  grasp of                                                               
what  he or  she  stands for.  It is  better  to have  one-on-one                                                               
contact  like town  hall meetings.  It will  change the  way that                                                               
candidates run, and that is one of the goals of SB 182.                                                                         
                                                                                                                                
3:52:39 PM                                                                                                                    
SENATOR  STEVENS said  he spent  less  than his  opponent in  his                                                               
first election  and won. It would  be interesting to know  if the                                                               
person who spends the most money usually wins.                                                                                  
                                                                                                                                
SENATOR  WIELECHOWSKI said  his  statistics  are from  California                                                               
where 90 percent  of the people who raise the  most money win. It                                                               
is usually the  incumbent, who has a  fundraising advantage. Four                                                               
years ago every  incumbent that ran in Alaska won.  Two years ago                                                               
about 90  percent won. "If  you add more  money to the  system it                                                               
helps incumbents,  if you take  more money  out of the  system it                                                               
probably helps  incumbents as well."  An incumbent can  raise any                                                               
money that is  out there more easily, and if  there is less money                                                               
out  there,   an  incumbent  has   the  advantage  of   the  name                                                               
recognition. Either  way is a wash.  In Maine and Arizona  it has                                                               
not had the effect of  "wiping incumbents out." It simply reduces                                                               
the mass amount of money spent on elections.                                                                                    
                                                                                                                                
3:55:08 PM                                                                                                                    
SENATOR WAGONER  said he is  from a  rural district. In  his last                                                               
primary he  raised under $25,000,  and his opponent  put $140,000                                                               
into his campaign account. What will the state pay in that case?                                                                
                                                                                                                                
SENATOR  WIELECHOWSKI  said,  "If  you  were  a  clean  elections                                                               
candidate  and your  opponent was  not …  you would,  as a  state                                                               
senator  in the  general election,  be eligible  for $36,000.  If                                                               
your opponent raised more than that,  you would get a match up to                                                               
three times that amount." That is what the state would pay.                                                                     
                                                                                                                                
3:56:33 PM                                                                                                                    
SENATOR  WAGONER said  he is  talking  about the  primary, so  it                                                               
would only be up to three times the primary amount.                                                                             
                                                                                                                                
SENATOR  WIELECHOWSKI said  the  primary allows  for three  times                                                               
$24,000, or $72,000.                                                                                                            
                                                                                                                                
SENATOR WAGONER said his opponent  could continue to raise money.                                                               
He said to be careful because  that does concerns him. He is also                                                               
concerned about using public money to pay for elections.                                                                        
                                                                                                                                
3:57:31 PM                                                                                                                    
SENATOR  KOOKESH  asked  if the  initiative  process  requires  a                                                               
fiscal note.                                                                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI said the state is preparing one.                                                                           
                                                                                                                                
SENATOR  KOOKESH said  under the  Frank initiative,  the cost  is                                                               
required, so "people  would be maybe reluctant to  give that kind                                                               
of money  to elect me to  be a senator  if they knew that  it was                                                               
going to  cost the state that  much money." He wants  to know the                                                               
costs of the commission and the administrator, as well.                                                                         
                                                                                                                                
SENATOR WIELECHOWSKI said that is factored in.                                                                                  
                                                                                                                                
3:59:02 PM                                                                                                                    
TIM JUNE, Chair, Alaskans for  Clean Elections, Haines, said when                                                               
the  petition was  submitted,  the  lieutenant governor's  office                                                               
prepared a fiscal  note that was attached to all  of the petition                                                               
books.  That  cost  estimate  was  between  $5  million  and  $10                                                               
million.  His group's  estimate is  from  $3 to  $5 million.  The                                                               
lieutenant governor's office was calling for two or three full-                                                                 
time and eight part-time employees, which is $460,000 per year.                                                                 
                                                                                                                                
4:00:29 PM                                                                                                                    
BROOK   MILES,   Executive   Director,  Alaska   Public   Offices                                                               
Commission (APOC), said she will provide a fiscal note.                                                                         
                                                                                                                                
The committee took a brief at-ease at 4:01:16 PM.                                                                             
                                                                                                                                
4:01:47 PM                                                                                                                    
MS.  MILES   said  there  will   be  one   high-level  accountant                                                               
overseeing two  other accountants.  There will be  two compliance                                                               
officers and  one administrative assistant. The  commission would                                                               
certify  that candidates  qualify,  and it  will disseminate  the                                                               
money. The commission has no  experience in giving out money. She                                                               
said the commission has worked hard  on this and will continue to                                                               
follow it and report estimated costs.                                                                                           
                                                                                                                                
CHAIR  OLSON asked  how long  her office  has had  to review  the                                                               
numbers that she is presenting.                                                                                                 
                                                                                                                                
MS.  MILES said,  "These numbers  are based  on the  same numbers                                                               
that we were asked to provide  through the petition process - the                                                               
Office  of Budget  and  Management asked  our  agency to  prepare                                                               
costs along  these lines, so that  was back in the  late summer."                                                               
There  were  some  communication  breakdowns  in  preparing  this                                                               
particular fiscal note, but it is not just a last minute guess.                                                                 
                                                                                                                                
CHAIR OLSON said he is asking about its accuracy.                                                                               
                                                                                                                                
4:03:45 PM                                                                                                                    
MS. MILES said she is sure it reflects those personnel costs.                                                                   
                                                                                                                                
SENATOR KOOKESH said the fiscal  note only covers administration,                                                               
and he asked about the costs for the candidates.                                                                                
                                                                                                                                
MS MILES  said, "This is  just APOC's administration of  it." She                                                               
doesn't know  who is responsible  for preparing the  fiscal note.                                                               
When  trying   to  determine  how   much  it  would  cost   in  a                                                               
gubernatorial election  if every  single candidate  qualified for                                                               
the funding, the estimate came to $10 to $12 million.                                                                           
                                                                                                                                
4:04:51 PM                                                                                                                    
SENATOR STEVENS asked how much money was spent in 2000.                                                                         
                                                                                                                                
MS. MILES said she will get back to the committee.                                                                              
                                                                                                                                
4:06:02 PM                                                                                                                    
SENATOR  WIELECHOWSKI said  the fiscal  note doesn't  include the                                                               
cost  of  elections,  and  Ms. Miles  said  $10-$12  million.  He                                                               
doesn't think it is that high -- probably $3-$12 million.                                                                       
                                                                                                                                
SENATOR WAGONER  said that is  quite a  range. He wants  staff to                                                               
form estimates based on the initiative.                                                                                         
                                                                                                                                
4:07:07 PM                                                                                                                    
MR. JUNE said he will work with Chair Olson's staff.                                                                            
                                                                                                                                
MR. EHST  said the information  was covered well. There  were two                                                               
purposes to  Arizona's clean  election system.  One was  to allow                                                               
more  candidates to  run by  leveling the  playing field  between                                                               
those  with money  and those  without.  That was  a success;  the                                                               
number  of candidates  is  up by  20 percent,  and  there are  no                                                               
uncontested  statewide races  anymore. The  other purpose  was to                                                               
reduce  the influence  of special  interests. That  is harder  to                                                               
quantify, but a number of legislators  "will be happy to tell you                                                               
that  now when  the lobbyists  come  into their  office they  can                                                               
listen to the merits of the  argument and not worry about whether                                                               
they are raising  the money or not." Some lobbyists  say they are                                                               
happy not to have to raise money for candidates.                                                                                
                                                                                                                                
MR. EHST  said the expense  had been a  concern, but in  the 2006                                                               
elections, clean elections cost about  $1.50 per resident or $9.5                                                               
million. The  system's constitutionality  was questioned,  but it                                                               
won many  court cases  because it  actually increases  freedom of                                                               
speech   "because  when   somebody   attacks  a   clean-elections                                                               
candidate, they get money to respond  to the attack." It has been                                                               
called   the  incumbent-protection   act,  but   the  number   of                                                               
incumbents  has  declined  somewhat.   All  statewide  seats  are                                                               
contested  now, which  wasn't true  before. The  races are  a lot                                                               
closer  than  they  used  to   be.  The  system  allows  credible                                                               
candidates from a minority party  to "run a credible campaign and                                                               
be available  in case the  majority party candidate turns  out to                                                               
have a  fatal flaw." That has  happened, he said. People  said it                                                               
was going  to be free  money for candidates,  but it is  not easy                                                               
collecting  those $5.00  contributions.  A  number of  incumbents                                                               
have not been able to qualify  for the program. A nephew of Barry                                                               
Goldwater  ran for  governor,  and he  barely  qualified for  the                                                               
program at the last minute.                                                                                                     
                                                                                                                                
4:11:35 PM                                                                                                                    
MR. EHST  said the system is  set up so that  all finance reports                                                               
are  reviewed by  the  commission. There  are  random audits.  If                                                               
anyone violates the system, there  are hefty fines that come from                                                               
the  candidate's  personal money.  The  Alaska  bill is  similar.                                                               
People are afraid to violate  it. One legislator was removed from                                                               
office  for going  over 10  percent  of the  spending limit.  One                                                               
obvious  case of  abuse involved  three 20-something  libertarian                                                               
candidates who  all qualified, and  they spent most of  the money                                                               
in nightclubs.  They were caught  and had  to pay back  the money                                                               
and pay fines. One is still a fugitive from justice.                                                                            
                                                                                                                                
MR. EHST said there was a  concern that the system would increase                                                               
the   power   of   independent  expenditure   "527"   committees.                                                               
Candidates  unable  to  raise  enough  money  to  run  their  own                                                               
campaigns would allow  these committees to come in  and take over                                                               
everything, but  that hasn't happened. "In  actuality, the clean-                                                               
elections  system  does  give participating  candidates  matching                                                               
funds to respond to attacks on  them that are made by independent                                                               
expenditure committees." It levels the playing field.                                                                           
                                                                                                                                
4:13:21 PM                                                                                                                    
MR. EHST  said the system works  amazingly well and is  popular -                                                               
polls  show that  83  percent  support it.  A  number of  elected                                                               
legislators in Arizona would never have been able to run.                                                                       
                                                                                                                                
4:14:12 PM                                                                                                                    
TIM JUNE, Chair,  Alaskans for Clean Elections,  Haines, said his                                                               
group  of  Alaskans  obtained  over   33,000  signatures  for  an                                                               
initiative.  He expects  it  to  appear on  the  2008 ballot.  He                                                               
listed  the number  of verified  signatures  from several  senate                                                               
districts.  "It is  abundantly clear  that tens  of thousands  of                                                               
Alaskans from every district and  from every political persuasion                                                               
want to  afford the people of  Alaska the opportunity to  vote on                                                               
this  voluntary and  alternative system  of campaign  financing."                                                               
There may be concerns about the  cost, which will be variable. He                                                               
estimates it  to cost  between $3  and $6  million per  year. The                                                               
lieutenant  governor estimated  between  $6 and  $11 million.  It                                                               
will take  a few election  cycles to come  into its own,  but the                                                               
higher the  candidate participation,  the lower  the cost  to the                                                               
state.  As more  candidates  participate --  Maine  has about  83                                                               
percent  clean-election  candidates  --   the  less  matching  is                                                               
needed.                                                                                                                         
                                                                                                                                
4:17:32 PM                                                                                                                    
MR.  JUNE said  the  total  state operating  budget  is over  $10                                                               
billion per  year. Legislators are  money managers  for Alaskans,                                                               
and  if  these elected  officials  can  make financial  decisions                                                               
based  on  merit  without   considering  obligations  to  wealthy                                                               
campaign donors  and lobbyists, spending  $10 million "is  a very                                                               
worthwhile  expense." It  is  one  tenth of  one  percent of  the                                                               
capital operating  budget. A private  money manager  charges much                                                               
more.  If there  had  been clean-election  legislators voting  on                                                               
Alaska's 2006 petroleum tax, it is  very likely that a higher tax                                                               
rate would have prevailed, increasing  state revenues by at least                                                               
$2 billion per year. "Just one  year's revenue on one vote on one                                                               
bill could have paid for  every clean-election candidate campaign                                                               
for every  legislative seat  and every  statewide office  for the                                                               
next 200 years." The current  campaign financing system sometimes                                                               
allows and  encourages millions to  be spent on  special interest                                                               
projects that directly benefit a  campaign donor - not unlike the                                                               
ongoing  investigation of  Congressman  Don  Young's $10  million                                                               
appropriation  to a  road in  Florida. Clean  elections eliminate                                                               
this  unproductive  relationship  between elected  officials  and                                                               
special  interest  donors.  The clean  elections  initiative  was                                                               
drafted  well before  the indictments  of  Alaska legislators  in                                                               
March 2007. Alaska needs to  make significant changes because the                                                               
briberies  and corruption  was not  discovered by  APOC, Alaska's                                                               
attorney general,  the state troopers,  or the  ethics committee;                                                               
it  was  uncovered by  the  FBI  and  the federal  Department  of                                                               
Justice.  Alaskans need  to protect  its  democratic system,  and                                                               
clean elections is the positive step.                                                                                           
                                                                                                                                
4:20:26 PM                                                                                                                    
SENATOR STEVENS said he may  take advantage of clean elections if                                                               
this were  to pass. He  asked if Mr.  June said there  would have                                                               
been a higher tax on oil if there had been clean elections.                                                                     
                                                                                                                                
MR.  JUNE  suggested that  with  an  unencumbered legislature,  a                                                               
different tax  would have  prevailed -  without getting  into the                                                               
specifics of "influence versus those  that have been convicted of                                                               
bribery." Most votes that a  legislator makes have a fiscal cost,                                                               
and the  states with clean elections  unencumber legislators from                                                               
donor and  lobbyist influence.  An Arizona  republican legislator                                                               
extols the virtues  of being able to show a  lobbyist to the door                                                               
with  no repercussions;  he's  responsible  to his  constituents.                                                               
Clean elections  allows all legislators  to act  more responsibly                                                               
and in the best interest of Alaskans.                                                                                           
                                                                                                                                
4:22:26 PM                                                                                                                    
SENATOR  WAGONER said  if this  bill  passes, it  won't make  him                                                               
think all  legislators are going  to be honest.  It is up  to the                                                               
electorate to  elect honest  legislators. This  will not  stop an                                                               
unethical  legislator  from  promoting legislation  for  personal                                                               
benefit. That  idea should be taken  off the table. This  is more                                                               
about  giving an  equal footing  to candidates.  "I can  buy that                                                               
argument."                                                                                                                      
                                                                                                                                
4:23:59 PM                                                                                                                    
MR. JUNE said he completely  agrees that clean elections will not                                                               
stop bribery or some of the  acts recently witnessed. But it gets                                                               
to  the  relationship  between large  campaign  contributors  and                                                               
office  holders.  He said  he  has  run  for  office, and  he  is                                                               
familiar  with  the  difficulties  fundraising  and  the  implied                                                               
obligations that some  of that fundraising allows.  It won't stop                                                               
bribery but  it breaks  that politician/large  donor relationship                                                               
from  the beginning.  That relationship  won't  start during  the                                                               
campaign,  a  relationship  that  may imply  an  open  door  once                                                               
someone is  elected. A candidate  with personal wealth  cannot be                                                               
blocked  from  spending  his  or  her  own  money.  There  is  no                                                               
constitutional way to do that.                                                                                                  
                                                                                                                                
4:25:59 PM                                                                                                                    
MR. JUNE looked  at the house and senate races  of 2004 and 2006,                                                               
which  averaged about  $53,000  across the  state.  He noted  the                                                               
Anchorage races  that use television  ads and spend  $60,000 just                                                               
on a media campaign, and he  tried to create a balance. He didn't                                                               
want  to overspend  public money,  but he  wanted to  make clean-                                                               
election candidates  competitive. The program will  not guarantee                                                               
there won't  be candidates  that will  outspend an  opponent with                                                               
his  or  her   own  money,  but  it  will   guarantee  others  an                                                               
opportunity to  put their foot  forward and let the  public learn                                                               
who they are.                                                                                                                   
                                                                                                                                
CHAIR OLSON asked if SB 182 restricts personal spending.                                                                        
                                                                                                                                
SENATOR WIELECHOWSKI  said a  person can't put  any of  their own                                                               
money in, same as the initiative.                                                                                               
                                                                                                                                
4:27:24 PM                                                                                                                    
PAT  LUBY,  Advocacy  Director, AARP-Alaska,  said  AARP  doesn't                                                               
contribute to any candidates, but  AARP encourages its members to                                                               
get involved  and be informed.  He said he called  his colleagues                                                               
in  Maine, Arizona,  and New  Jersey to  find out  how the  clean                                                               
election system  is working out.  In places with  clean elections                                                               
more people  voted and more got  involved - even people  who just                                                               
gave $5.00  to a candidate  began to  pay more attention  to what                                                               
that candidate and his or her  opponent had to say. AARP endorses                                                               
that. "We think  more and more citizens should get  more and more                                                               
involved in  our political process." He  thinks many constituents                                                               
would be delighted with less  television ads during elections. SB
182  is  a good  idea.  More  people  will become  involved,  and                                                               
elected officials can spend more  time on public policy decisions                                                               
instead of fundraising. It will be good for all Alaskans.                                                                       
                                                                                                                                
4:29:50 PM                                                                                                                    
STEVE   CLEARY,  Executive   Director,  Alaska   Public  Interest                                                               
Research  Group (AKPIRG),  said  AKPIRG, with  1,500 members,  is                                                               
very much in favor of clean elections  and sees it as a great way                                                               
to  reinvigorate  democracy. It  will  level  the playing  field,                                                               
inspiring  more   and  different   people  to  run   for  office.                                                               
Candidates  will no  longer have  to rely  on a  small number  of                                                               
large  donors to  fund  their  campaigns. They  will  be able  to                                                               
interact more  with constituents.  Most money spent  in political                                                               
campaigns is used  to raise money in the campaign.  The bill will                                                               
free the  candidate from that  time and  expense and allow  for a                                                               
more direct campaign  with voters. Corporations will  not be able                                                               
to  buy their  way  into government.  Special  interest money  is                                                               
taken out of  the equation, putting people back in  charge of the                                                               
electoral process.  Alaska needs that  right now, he  said. Clean                                                               
elections  will  be  a positive  step  toward  political  reform.                                                               
Candidates will  be able  to present  ideas of  what is  best for                                                               
Alaska, and that  is what the founders of this  country and state                                                               
had in mind.                                                                                                                    
                                                                                                                                
4:32:02 PM                                                                                                                    
SENATOR WIELECHOWSKI  said the bill  will start a good  debate on                                                               
the topic. He  believes clean elections will  keep legislators in                                                               
closer  touch   with  constituents.  He  said   he  doesn't  have                                                               
"tremendous illusions  that this bill  will pass." It will  be on                                                               
the ballot in August, and  he suggested fixing this legislatively                                                               
rather than having it imposed on them by the people.                                                                            
                                                                                                                                
SENATOR KOOKESH asked for the fiscal note.                                                                                      
                                                                                                                                
MICHELLE  SYDEMAN,  Staff  to   Senator  Wielechowski,  said  the                                                               
administration said APOC will provide it by the next meeting.                                                                   
                                                                                                                                
4:34:29 PM                                                                                                                    
SENATOR STEVENS  said the thing  he hates the most  about running                                                               
for office  is asking friends and  family for money. The  bill is                                                               
interesting,  but he  suggested that  the term  "clean elections"                                                               
implies that the other candidates are dirty.                                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI  said that is  a good  point. It is  used in                                                               
other states.  He noted  that terms like  "no child  left behind"                                                               
and the Clean Skies Act do not necessarily reflect the truth.                                                                   
                                                                                                                                
4:35:59 PM                                                                                                                    
CHAIR OLSON said he will  hold the bill until further information                                                               
is available.                                                                                                                   
                                                                                                                                

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