Legislature(2003 - 2004)

04/06/2004 04:21 PM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                                                                                                                                
     SENATE BILL NO. 351                                                                                                        
     "An Act requiring the Alaska Public Offices Commission to                                                                  
     accept documents by nonelectronic means."                                                                                  
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Wilken stated this  bill "broadens  the acceptable  format                                                            
for the filing of APOC  [Alaska Public Offices Commission] mandatory                                                            
reports. It's sponsored by the Senate Finance Committee."                                                                       
                                                                                                                                
Senator  B. Stevens  moved  to adopt  CS SB  351,  23-LS1742\I as  a                                                            
working draft.                                                                                                                  
                                                                                                                                
There was no objection and the committee substitute was ADOPTED.                                                                
                                                                                                                                
Co-Chair Green testified  that when she received notice that further                                                            
filings  of public  office information  must  be through  electronic                                                            
methods, she was "shocked".  She remarked that campaigns should have                                                            
the  option of  filing  by either  hard  copy or  electronic  means,                                                            
provided  that the filing  is on time and  correct. She stated  that                                                            
the  Alaska Public  Offices  Commission  (APOC)  prefers  electronic                                                            
filing to  eliminate the  process of transferring  information  from                                                            
hard copy  and subsequently  make the information  available  to the                                                            
public immediately.  She disagreed this was an issue.  She predicted                                                            
that electronic  requirement would  be a deterrent for some  to file                                                            
for public office. She  relayed that APOC is still in the process of                                                            
developing electronic filing  methods and could be couple more years                                                            
before established.  Regardless, she opined that flexibility  should                                                            
be provided  for those to file either  electronically or  hard copy.                                                            
                                                                                                                                
Senator  Bunde relayed discussion  about electronic  voting  and the                                                            
need for a paper trail.  He asked how this would be assured for APOC                                                            
information.                                                                                                                    
                                                                                                                                
BROOK MILES, Executive  Director, Alaska Public Offices  Commission,                                                            
Department of  Administration, testified via teleconference  from an                                                            
offnet location  that although  she appreciated  Co-Chair Green  and                                                            
her  staff's professionalism   and cooperation,  APOC  opposes  this                                                            
legislation.  She reminded  that in 2003  the legislature passed  SB
219, relating  to campaign finance  reform, after undergoing  public                                                            
process.   She  stated  that   full  disclosure   of  all   campaign                                                            
contributions  are now required  of campaigns.  She noted that  bill                                                            
provided  a $450,000 capital  appropriation  for APOC to update  the                                                            
existing  electronic filing  system and to  develop new procedures.                                                             
She  added  that  she  supported  the  retention  of  the  mandatory                                                            
electronic filing for lobbyists.                                                                                                
                                                                                                                                
Ms.  Miles   spoke  to  the  requirement   to  fully  disclose   all                                                            
contributions  under  the  new  statute.   She  noted  that  certain                                                            
political groups, such  as labor unions, garner frequent contributes                                                            
in smaller  amounts, thus generating  lengthy reports which  APOC is                                                            
required to process. She  told of other significant information that                                                            
APOC staff must enter into  a database. She informed that today, the                                                            
computer  program was unable  to access the  system due to  the high                                                            
number of other users.  She qualified that it is an election day for                                                            
the  Municipality   of  Anchorage.   However,  she  emphasized   the                                                            
Commission  operates with  a limited  budget,  with current  funding                                                            
reductions  resulting a 20 percent  reduction to personal  services.                                                            
                                                                                                                                
Ms. Miles  informed  that the project  to convert  to an  electronic                                                            
filing  method   is  underway  with   planned  completion   for  the                                                            
gubernatorial  election in  2006. She expressed  concern that  using                                                            
the current paper method  with the changed campaign finance statutes                                                            
would result in  the inability to have information  available to the                                                            
public  before   elections  occur.   She  relayed  the  fundamental                                                             
philosophy  that  to  be  fully  accessible   to  the  public,  APOC                                                            
information must be available on the Internet.                                                                                  
                                                                                                                                
Ms.  Miles  directed attention  to  the  indeterminate  fiscal  note                                                            
submitted by APOC,  stating that the number of campaigns  that would                                                            
choose  electronic  filing  is unknown.  She  listed the  number  of                                                            
candidates and groups currently filing electronically.                                                                          
                                                                                                                                
Senator Bunde  stated he derived comfort from walking  into the APOC                                                            
office, having his information  date stamped and receiving a stamped                                                            
copy for his records.  He also relayed fears of losing  work done on                                                            
his  computer. He  asked how  filers  would receive  assurance  that                                                            
information submitted was received.                                                                                             
                                                                                                                                
Ms. Miles replied that  confirmation of received information is sent                                                            
to the filer via email.  She compared this to purchases made through                                                            
the Internet, whereby buyers  receive an email confirmation of their                                                            
order. She  furthered that  the filer is also  able to print  a hard                                                            
copy of  reports and that  reports would be  printed out by  APOC to                                                            
ensure a "paper trail".                                                                                                         
                                                                                                                                
Co-Chair Wilken  shared that he attempted to file  electronically in                                                            
the  year  2000,  but  encountered  difficulties   with  the  system                                                            
database.  He stated he has  since filed manually.  He asked  if the                                                            
database has been changed to be more user friendly.                                                                             
                                                                                                                                
Ms. Miles assured  the upgrade project would be more  user friendly.                                                            
She described the planned  web based system that would prompt filers                                                            
based on the answers to specific questions.                                                                                     
                                                                                                                                
Co-Chair Wilken  asked when the new system would be  operational and                                                            
implemented.                                                                                                                    
                                                                                                                                
Ms. Miles  replied  the intent  is to  be implemented  for the  2006                                                            
gubernatorial election.                                                                                                         
                                                                                                                                
Co-Chair Wilken  clarified that the system would not  be operational                                                            
for the current year elections.                                                                                                 
                                                                                                                                
Ms. Miles affirmed.                                                                                                             
                                                                                                                                
Co-Chair  Wilken asked  how campaigns  were to  file electronically                                                             
this year.                                                                                                                      
                                                                                                                                
Ms. Miles replied that  the existing, albeit rudimentary, electronic                                                            
filing system  remains operational  until a new system is  in place.                                                            
She pointed out that filing  could still be done manually this year.                                                            
                                                                                                                                
Co-Chair  Wilken  asked if  campaigns  filing  electronically  could                                                            
access  and  update   information  from  previous   years  to  avoid                                                            
"starting all over again" each year.                                                                                            
                                                                                                                                
Ms. Miles affirmed this is the focus of the project.                                                                            
                                                                                                                                
Co-Chair  Wilken commented  that  as the  system  becomes more  user                                                            
friendly  it  provides  incentive  for  use. He  asked  whether  the                                                            
Commission has considered  imposing a surcharge for those who opt to                                                            
file manually.                                                                                                                  
                                                                                                                                
Ms. Miles  indicated  this would be  an appropriate  option for  the                                                            
Senate Finance Committee to consider.                                                                                           
                                                                                                                                
Co-Chair Wilken  asked the difference in expense of  a manual filing                                                            
and a recommended surcharge amount.                                                                                             
                                                                                                                                
Ms. Miles replied  she would calculate this and provide  information                                                            
to the Committee.                                                                                                               
                                                                                                                                
Senator Bunde  commented that  other State  operations, such  as the                                                            
issuance of business  licenses are self-supporting  and he suggested                                                            
APOC could  implement filing fees  and also become self-supporting.                                                             
                                                                                                                                
Co-Chair Green announced  that she was unaware the electronic filing                                                            
requirement  would not take effect  until the elections of  2006 and                                                            
she  therefore  had the  option  to  file manually  this  year.  She                                                            
remarked  that  if  she had  understood  this  she  would  not  have                                                            
sponsored this legislation.                                                                                                     
                                                                                                                                
Ms. Miles apologized  for the misunderstanding  and emphasized  that                                                            
although  she  had  directed  APOC  staff  to encourage   electronic                                                            
filing, staff  was not to instruct  campaigns that it was  required.                                                            
                                                                                                                                
Co-Chair  Wilken  clarified  that  the  requirement  for  electronic                                                            
filing would not be in effect until the year 2006.                                                                              
                                                                                                                                
Ms.  Miles  responded this  is  the  intent but  she  stressed  that                                                            
electronic  filing would not  be required until  a new system  is in                                                            
place and  not before  the 2006  election. She  noted that  projects                                                            
sometimes take longer to complete than planned.                                                                                 
                                                                                                                                
Senator B. Stevens  offered a motion to move CS SB  351, 23-LS1742\I                                                            
from  Committee  as amended,  with  individual  recommendations  and                                                            
accompanying fiscal note.                                                                                                       
                                                                                                                                
There was  no objection  and CS  SB 351 (FIN)  MOVED from  Committee                                                            
with fiscal  note #1  from the  Department of  Administration  in an                                                            
indeterminate amount.                                                                                                           
                                                                                                                                

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