Legislature(2007 - 2008)BELTZ 211

05/07/2007 05:30 PM Senate JUDICIARY


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06:23:54 PM Start
06:24:12 PM HB109
06:52:58 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 109 DISCLOSURES & ETHICS/BRIBERY/RETIREMENT TELECONFERENCED
Moved SCS CSHB 109(JUD) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
    CSHB 109(JUD)AM- DISCLOSURES & ETHICS/BRIBERY/RETIREMENT                                                                
                                                                                                                              
6:24:12 PM                                                                                                                    
CHAIR FRENCH announced the consideration  of HB 109 and asked for                                                               
a motion  to adopt version  "W" committee substitute (CS)  as the                                                               
working document.                                                                                                               
                                                                                                                                
SENATOR WIELECHOWSKI  motioned to  adopt the  Senate CS  for CSHB
109, labeled 25-GH1059\W.                                                                                                       
                                                                                                                                
CHAIR  FRENCH announced  that without  objection  version "W"  is                                                               
adopted.  He   asked  Ms.   Smith  and   Mr.  Jones   to  provide                                                               
introductions and  explain the changes  that had been  made since                                                               
the committee last heard the bill.                                                                                              
                                                                                                                                
CINDY SMITH, Staff  to Senator French, directed  attention to the                                                               
first  change  on  page  2,  lines 8-10.  The  reference  to  the                                                               
definition of official  action was changed from a  citation of AS                                                               
39.52.960 to an  expanded definition of official  action that was                                                               
used in  SB 19.  The Department  of Law  requested the  change to                                                               
correct an  error made in a  House floor amendment. The  bill was                                                               
also amended  on page 41, Section  70 to adopt the  same expanded                                                               
definition of official action.                                                                                                  
                                                                                                                                
Language was  also added on  page 2, line  28, to clarify  that a                                                               
state   legislator  may   not  receive   membership  credit   for                                                               
legislative service on  or after the date  the legislator commits                                                               
a  criminal offense  that results  in a  pension forfeiture.  The                                                               
Division  of  Retirement  and   Benefits  requested  the  change.                                                               
Conforming changes occur in several places throughout the bill.                                                                 
                                                                                                                                
Page 4, lines  4-7, add language exempting  candidates who commit                                                               
to raise $5,000  or less from the e-file  requirements. They will                                                               
still be  required to report  income and expenditures,  but there                                                               
will be the option to file on paper.                                                                                            
                                                                                                                                
6:26:44 PM                                                                                                                    
SENATOR HUGGINS joined the meeting.                                                                                             
                                                                                                                                
CHAIR FRENCH  added that just  this year it's a  requirement that                                                               
all individuals  who run for  office, whether they raise  more or                                                               
less  than $5,000,  must submit  detailed income  and expenditure                                                               
reports. The  amendment in this CS  says that once e-filing  is a                                                               
requirement, candidates  that raise less  than $5,000 can  file a                                                               
handwritten report.  Soon after the  report is submitted  it will                                                               
be available electronically, he said.                                                                                           
                                                                                                                                
6:27:45 PM                                                                                                                    
MS.  SMITH said  the  next change  occurs in  new  Section 8.  It                                                               
requires APOC to scan and post  handwritten reports in a PDF type                                                               
format within two working days  after the commission receives the                                                               
information. The thought  is that although e-filing  will be more                                                               
commonplace,  there's still  an  interest  in seeing  handwritten                                                               
reports. This  will allow APOC to  put them online so  people can                                                               
review them as soon as possible.                                                                                                
                                                                                                                                
6:28:29 PM                                                                                                                    
Senator McGuire joined the meeting.                                                                                             
                                                                                                                                
MS. SMITH  explained that  new Section  12 requires  lobbyists to                                                               
report  food  or beverage  provided  or  paid for  for  immediate                                                               
consumption by  legislators or legislative employees  unless it's                                                               
part of  an event that's  open to all legislators  and employees,                                                               
or the cost is $10 or  less. Lobbyists will be required to report                                                               
the names  of the recipients, the  date the food or  beverage was                                                               
provided, and the amount paid.                                                                                                  
                                                                                                                                
6:29:30 PM                                                                                                                    
SENATOR WIELECHOWSKI asked if the $10 threshold is cumulative.                                                                  
                                                                                                                                
6:29:48 PM                                                                                                                    
DAVID JONES, Assistant Attorney  General, Department of Law, said                                                               
he understands  it was intended to  be per event so  a legislator                                                               
could receive  a $10 cup of  coffee one day and  the next without                                                               
violating the reporting requirement.                                                                                            
                                                                                                                                
SENATOR McGUIRE questioned how the $10 amount came about.                                                                       
                                                                                                                                
CHAIR FRENCH replied it was his decision.                                                                                       
                                                                                                                                
MS.  SMITH directed  attention to  pages 9  and 11  and explained                                                               
that language  about telephone and  facsimile use  by legislators                                                               
or  employees  was deleted  because  it's  already covered  under                                                               
existing  legislative ethics  provisions. The  Legislative Ethics                                                               
Committee requested the change.                                                                                                 
                                                                                                                                
CHAIR FRENCH  added there was  a conflict between the  de minimis                                                               
standard,  which applies  to all  usage of  state equipment,  and                                                               
this particular provision. Removing  the provision makes just one                                                               
standard across the board, he said.                                                                                             
                                                                                                                                
MR. JONES clarified the changes appear  on page 9, lines 7-8, and                                                               
page 11, lines 1-2.                                                                                                             
                                                                                                                                
MS. SMITH  highlighted a deletion  following Section 19,  on page                                                               
19,   and  explained   it's  former   Section  27,   relating  to                                                               
representation.  It   also  applies  to   legislative  employees.                                                               
Current  Section  29,  which  was  included  in  SB  13,  already                                                               
prohibits  a legislator  from doing  work that's  associated with                                                               
legislative,  administrative, or  political  action. This  change                                                               
requires a title change, she said.                                                                                              
                                                                                                                                
CHAIR FRENCH added the House  thoroughly worked over the deletion                                                               
section and  the Senate  heard it  was practically  impossible to                                                               
implement the section without boxing  legislators out of ordinary                                                               
activity in  the course  of their lives.  He believes  Section 29                                                               
picks up the largest majority of that disputed area.                                                                            
                                                                                                                                
SENATOR McGUIRE asked for further explanation.                                                                                  
                                                                                                                                
6:33:55 PM                                                                                                                    
MR.   JONES  explained   that  Section   29   would  expand   the                                                               
restrictions on outside activities  by legislators by prohibiting                                                               
additional  compensation from  anyone  other than  the state  for                                                               
conducting those  official activities. Rather than  cinching down                                                               
the  outside  activity  restriction  so  tightly  that  a  person                                                               
couldn't go  to the DMV to  apply for a license,  this bill would                                                               
include the  restriction in Section 29,  which prevents receiving                                                               
compensation  from anyone  other  that the  state for  performing                                                               
official  duties. Also,  it  continues  the existing  requirement                                                               
that representation  for compensation  before state  bodies would                                                               
be disclosed.                                                                                                                   
                                                                                                                                
6:35:40 PM                                                                                                                    
MS. SMITH  directed attention to  page 22, line 27,  through page                                                               
23,  line 3,  where language  was added  to create  a first  time                                                               
course for new  staff and legislators and a  refresher course for                                                               
returning staff  and legislators.  There's also language  on page                                                               
42,  an  uncodified law,  to  clarify  that everyone  must  first                                                               
attend the full basic course.                                                                                                   
                                                                                                                                
CHAIR FRENCH said  the idea is to get people  to attend class and                                                               
learn about ethics problems that are new to them.                                                                               
                                                                                                                                
SENATOR McGUIRE asked if the idea  of a manual or book containing                                                               
new rules had been incorporated.                                                                                                
                                                                                                                                
CHAIR FRENCH replied it's on page 22, line 22.                                                                                  
                                                                                                                                
SENATOR McGUIRE  opined it  would be nice  to have  that handbook                                                               
incorporated into the training session.                                                                                         
                                                                                                                                
CHAIR  FRENCH asked  if  anyone online  could  confirm that  that                                                               
could be done.                                                                                                                  
                                                                                                                                
6:38:17 PM                                                                                                                    
JOYCE  ANDERSON,  Legislative  Ethics Committee,  said  that  the                                                               
manual could certainly be incorporated  into the training program                                                               
for a refresher course or a first-time training course.                                                                         
                                                                                                                                
6:38:40 PM                                                                                                                    
MS. SMITH referred  to page 25-26 and said the  first citation is                                                               
on line 25. Deferred income  is added to the financial disclosure                                                               
requirements.  Language  regarding  disclosure  requirements  has                                                               
been modified  to accommodate  the deferred  income requirements.                                                               
Also, there's a  conforming change on page 28,  Section 46 adding                                                               
deferred income  to the definition of  income. Legislative Ethics                                                               
requested the change, she said.                                                                                                 
                                                                                                                                
On page 29, lines 8-12, the  criteria for the ARM Board review of                                                               
spouse  or  dependent  benefits has  been  rewritten.  The  first                                                               
criterion is  retained and  the financial  benefit to  the spouse                                                               
criteria was replaced  by the criteria asking  whether the spouse                                                               
had  knowledge  of  the conduct.  The  third  criteria  regarding                                                               
restitution was  dropped. Also, language  was changed  to discuss                                                               
the conduct for  which the person was convicted,  rather than the                                                               
conduct for  which the  person was charged  as the  standard used                                                               
for pension forfeiture.                                                                                                         
                                                                                                                                
CHAIR FRENCH commented that the language is conforming.                                                                         
                                                                                                                                
6:40:35 PM                                                                                                                    
MS.  SMITH  highlighted page  29,  lines  20-23, which  has  more                                                               
conforming language related  to the credits for  service that the                                                               
Division of Retirements and Benefits asked for.                                                                                 
                                                                                                                                
MS. SMITH  said on pages  38-39, Sections 62  and 63 of  the bill                                                               
add the Senate Judiciary Committee  language from SB 64 regarding                                                               
the use of state aircraft.                                                                                                      
                                                                                                                                
CHAIR FRENCH commented the committee  is well familiar with those                                                               
amendments.                                                                                                                     
                                                                                                                                
SENATOR THERRIAULT asked if the language is identical.                                                                          
                                                                                                                                
MS. SMITH said  it was taken directly from  the bill. Continuing,                                                               
she said  Section 66 beginning on  page 39 through page  40, line                                                               
22,  was  amended  to  include  language  passed  by  the  Senate                                                               
regarding which positions  in the executive branch  may not lobby                                                               
for  one   year.  That  language  includes   division  directors,                                                               
legislative  liaisons, and  certain  state  board and  commission                                                               
members and offices of public  corporations that weren't included                                                               
in the  House bill. She  described it as  a deeper list  that was                                                               
developed  in  the  Senate  State   Affairs  and  Senate  Finance                                                               
committees and passed on the Senate floor.                                                                                      
                                                                                                                                
6:42:32 PM                                                                                                                    
MS. SMITH  said page 41  has a new  Section 69. It  clarifies the                                                               
issues  brought  by  the  laborers union  in  testimony  in  both                                                               
bodies. The language has been  approved by the administration and                                                               
the  union   representatives  who   highlighted  the   issue.  It                                                               
clarifies the ground  rules under which the  Executive Ethics Act                                                               
applies to nepotism.                                                                                                            
                                                                                                                                
CHAIR FRENCH  said he understands  the language was agreed  to by                                                               
the Department of Law and the interested labor unions.                                                                          
                                                                                                                                
MR. JONES agreed.                                                                                                               
                                                                                                                                
MS.  SMITH said  Section 70,  page  41, lines  24-25 expands  the                                                               
definition of  official action to  include what was  contained in                                                               
SB 19.                                                                                                                          
                                                                                                                                
6:44:06 PM                                                                                                                    
MS.  SMITH said  the uncodified  section on  page 42  states that                                                               
everyone  is required  to attend  the first  round of  the ethics                                                               
course. That concludes the changes in the CS, she said.                                                                         
                                                                                                                                
CHAIR FRENCH  stated that the CS  has been adopted and  is before                                                               
the committee. He asked if there were questions.                                                                                
                                                                                                                                
SENATOR McGUIRE  mentioned that earlier  that day she  brought up                                                               
the  concept of  conflicts related  to citizen  legislatures. She                                                               
would probably address  this in a separate bill, but  one idea is                                                               
to have  a citizen task  force look  at how other  states address                                                               
compensation  for lawmakers,  and  what the  restrictions are  on                                                               
outside labor.  Another idea is  to allow  an option in  much the                                                               
same way as is done when  filing a campaign report. The option is                                                               
to file either  as a citizen lawmaker or as  a fulltime lawmaker.                                                               
Someone  who files  as a  fulltime lawmaker  would agree  to only                                                               
work  for the  state. Someone  who  files as  a citizen  lawmaker                                                               
would  be  a  lawmaker  during   the  session  and  have  outside                                                               
disclosures.  "Lots   of  folks   in  the  building   don't  want                                                               
restrictions on being  able to work outside and yet  we know that                                                               
there are some very real concerns  about that," she said. This is                                                               
an opportunity for  both the public and those  running for office                                                               
to reflect  on what they want  and expect. "This is  a very broad                                                               
concept and it's  not fleshed out, but it's  something that would                                                               
come in a different bill," she stated.                                                                                          
                                                                                                                                
6:46:30 PM                                                                                                                    
SENATOR  WIELECHOWSKI opined  that this  comprehensive bill  is a                                                               
good  start  toward restoring  the  public  trust. However,  more                                                               
needs  to be  done. "I'm  sure there  will be  projects over  the                                                               
Interim to  try to  deal with  some of  the situations  that have                                                               
occurred in the last couple days,"  he said. He noted that he has                                                               
a  bill  that  deals  with campaign  finance  reform  to  achieve                                                               
publicly funded elections.  "It's time, I think,  that we started                                                               
the  conversation on  getting  big money  out  of campaigns,"  he                                                               
stated. I'll introduce a bill on that soon, he added.                                                                           
                                                                                                                                
CHAIR FRENCH  stated appreciation  for the  work that  Mr. Jones,                                                               
Ms.  Smith, and  the committee  did. "I  think this  committee is                                                               
committed to getting some ethics reform this year," he said.                                                                    
                                                                                                                                
6:47:44 PM                                                                                                                    
MR. JONES said:                                                                                                                 
     Pardon me  for butting  in, but I  read and  heard some                                                                    
     stories  over the  weekend about  Friday's arrests  and                                                                    
     indictments  that left  me a  bit perplexed  because in                                                                    
     some  of  the stories  it  indicated  that the  "Ethics                                                                    
     Bill"  was  stalled  in  the  legislature  and  I  knew                                                                    
     differently. It  was very  clear to  me last  week that                                                                    
     even before  the arrests and  indictments that  you and                                                                    
     this  committee  intended  to  move  forward  with  the                                                                    
     ethics bill.  That it wasn't  stalled. You  scheduled a                                                                    
     hearing last week.  You held it and it was  clear to me                                                                    
     that  day, based  on my  conversations  with Ms.  Smith                                                                    
     that  you intended  to continue  consideration tonight,                                                                    
     at this  meeting. So  I think it's  unfair to  say that                                                                    
     the  bill   was  stalled  and   that  any   action  the                                                                    
     legislature  takes  now on  the  Ethics  Bill has  been                                                                    
     motivated  by Friday's  events. It's  very clear  to me                                                                    
     that that's  not true. In  fact you did intend  to move                                                                    
     the bill forward and we  appreciate that and appreciate                                                                    
     the  leadership  and  statesmanship that  you  and  the                                                                    
     other  members of  the committee  have shown.  So thank                                                                    
     you.                                                                                                                       
                                                                                                                                
CHAIR FRENCH  thanked Mr. Jones  and said he believes  the record                                                               
speaks  for  itself.  The  bill went  through  the  Senate  State                                                               
Affairs Committee a  couple weeks ago and it  was scheduled here.                                                               
"I very  much thank you and  the administration for saying  so on                                                               
the record though."                                                                                                             
                                                                                                                                
6:49:09 PM                                                                                                                    
SENATOR McGUIRE motioned to report  version "W" SCS CSHB 109 from                                                               
committee  with  individual  recommendations  and  attached  zero                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
CHAIR FRENCH  announced that without objection  SCS CSHB 109(JUD)                                                               
is moved from committee. He asked  for a motion to move the title                                                               
change concurrent resolution.                                                                                                   
                                                                                                                                
6:49:42 PM                                                                                                                    
SENATOR   McGUIRE  motioned   to  pass   the  Senate   Concurrent                                                               
Resolution from committee.                                                                                                      
                                                                                                                                
CHAIR  FRENCH   announced  that  without  objection   the  Senate                                                               
Concurrent Resolution is moved from committee.                                                                                  
                                                                                                                                
SENATOR THERRIAULT asked  if he knows for a fact  that the fiscal                                                               
note is zero.                                                                                                                   
                                                                                                                                
CHAIR FRENCH  said he understands  that the bill is  scheduled in                                                               
finance tomorrow and he can't  answer whether it will be analyzed                                                               
overnight to reflect the latest numbers.                                                                                        
                                                                                                                                
6:50:28 PM at ease 6:52:51 PM                                                                                               
                                                                                                                                
The meeting was adjourned at 6:52:58 PM.                                                                                      

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