Legislature(2007 - 2008)BELTZ 211

04/08/2008 09:00 AM Senate STATE AFFAIRS


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09:09:18 AM Start
09:10:00 AM State Commission for Human Rights
09:27:08 AM HB414
09:33:53 AM HB368
10:15:09 AM HJR40
10:30:42 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 4/09/08 --
Confirmation Hearing:
State Commission for Human Rights
+ HB 305 CAMPAIGN FUND RAISING DURING SESSIONS TELECONFERENCED
Heard & Held
+ HB 414 CRIME VICTIM COMPENSATION FUND TELECONFERENCED
Moved HB 414 Out of Committee
+ HB 368 ETHICS: LEGISLATIVE & GOV/LT GOV TELECONFERENCED
Heard & Held
+ HJR 40 ELECTROMAGNETIC PULSE ATTACK DEFENSE TELECONFERENCED
Moved HJR 40 am Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
            HB 368-ETHICS: LEGISLATIVE & GOV/LT GOV                                                                         
                                                                                                                                
CHAIR  MCGUIRE announced  consideration  of HB  368. [Before  the                                                               
committee was CSHB 368(FIN)am.]                                                                                                 
                                                                                                                                
9:33:53 AM                                                                                                                    
REPRESENTATIVE BOB  LYNN, Alaska  State Legislature, said  HB 386                                                               
makes it legal for  a lobbyist to give a gift  to a legislator or                                                               
legislative employee  as long  as the  recipient is  an immediate                                                               
family  member   and  the  gift   has  no  connection   with  the                                                               
recipient's legislative  status. It  is common sense  and matches                                                               
ethics   codes  around   the  country,   and  it   is  based   on                                                               
recommendations from  the legislative ethics committee.  The bill                                                               
also includes  an exemption for  compassionate gifts, and  it has                                                               
some  cleanup language.  It also  establishes a  maximum fine  of                                                               
$2,500 for  willful late disclosure.  That is in line  with other                                                               
states. A  case in Alaska  illustrates that the existing  fine is                                                               
too low to have any affect  whatsoever on the most egregious late                                                               
filing. It is not practical for  the Attorney General to pursue a                                                               
few  hundred  dollars. The  bill  also  expands the  sections  on                                                               
campaign fundraising during sessions.  The prohibition expands to                                                               
any place where the session is convened.                                                                                        
                                                                                                                                
9:36:11 AM                                                                                                                    
SENATOR  FRENCH  asked about  raising  money  90 days  before  an                                                               
election.                                                                                                                       
                                                                                                                                
MIKE  SICA,  Staff  to  Representative  Lynn,  said  there  is  a                                                               
prohibition currently about  raising money in the  capital when a                                                               
special session  occurs 90 days  preceding an election.  That has                                                               
not changed.  The bill  simply extends  that to  any municipality                                                               
where a special session is held.                                                                                                
                                                                                                                                
SENATOR FRENCH said that was done in a bill yesterday.                                                                          
                                                                                                                                
9:37:48 AM                                                                                                                    
CHAIR MCGUIRE said that bill  is also before the committee today,                                                               
and she asked the difference between the two.                                                                                   
                                                                                                                                
MR. SICA said  he hasn't seen the final version,  but he believes                                                               
the  fundraising   prohibition  extends  to  local   and  federal                                                               
offices, unlike HB 386.                                                                                                         
                                                                                                                                
CHAIR MCGUIRE said  the core parts of the bills  are similar, and                                                               
HB 386  goes beyond,  addressing gifts that  are given  under the                                                               
legislative ethics act. "It now says  that you are allowed to buy                                                               
your  spouse  a  gift  if   the  gift  is  unconnected  with  the                                                               
recipient's  legislative  status and  is  from  a member  of  the                                                               
legislative  or  legislative's  employee's immediate  family  and                                                               
they happen to be a lobbyist."                                                                                                  
                                                                                                                                
MR. SICA said that is correct.                                                                                                  
                                                                                                                                
9:39:06 AM                                                                                                                    
CHAIR  MCGUIRE said  the  old  language used  to  have a  blanket                                                               
caveat regarding  gifts unconnected  to legislative  status, like                                                               
from a longtime friend. Did you look at that?                                                                                   
                                                                                                                                
MR. SICA said he didn't.                                                                                                        
                                                                                                                                
CHAIR MCGUIRE said this is a big  family and people go in and out                                                               
of  lobbying  jobs  and  legislative jobs.  There  was  a  recent                                                               
wedding of  two legislative  staffers and  no gifts  were allowed                                                               
from many of their friends who  were lobbyists, yet they had been                                                               
lifelong friends.                                                                                                               
                                                                                                                                
JOYCE  ANDERSON,  Administer,  Select  Committee  on  Legislative                                                               
Ethics, said the ethics committee did  not look at that issue and                                                               
felt  it was  up  to  the legislature  to  decide  the extent  of                                                               
allowable gifts from lobbyists. There  are two definitions of the                                                               
immediate family in the ethics  statute. One includes the spouse,                                                               
domestic  partner,   parents,  children  and  siblings   who  are                                                               
financially dependent. The other  definition extends it to aunts,                                                               
uncles,  and grandparents.  No definition  has included  lifelong                                                               
friends. The ethics  committee wants to let  the legislature make                                                               
that decision.                                                                                                                  
                                                                                                                                
CHAIR MCGUIRE  said when  she arrived at  the legislature  it was                                                               
about giving a  gift to influence a legislator. The  test was the                                                               
nature of  the gift,  a baby  shower or birthday,  and if  it was                                                               
given in order to influence the legislator or out of friendship.                                                                
                                                                                                                                
9:42:19 AM                                                                                                                    
MS. ANDERSON  said previous statute limited  gifts from lobbyists                                                               
during the session.  During the interim the  advisory opinion was                                                               
about whether a gift was from  a lifelong friend or someone known                                                               
outside of  the legislative  arena. So  there have  been advisory                                                               
opinions based on previous statutes on that issue.                                                                              
                                                                                                                                
CHAIR  MCGUIRE  said  she  wants  to hold  the  bill  to  address                                                               
concerns and to avoid absurd results.                                                                                           
                                                                                                                                
SENATOR STEVENS asked  if HB 386 will allow  fundraising during a                                                               
special session  within 90 days  of an  election in a  city where                                                               
the  session  occurs. What  is  theory  or principle  behind  not                                                               
allowing money to be raised or spent during a special session?                                                                  
                                                                                                                                
MS. ANDERSON  clarified that  in the 90  days before  an election                                                               
there is an  exemption that campaigning can occur,  but the three                                                               
legislators  in Juneau  are  not allowed  to  do any  fundraising                                                               
during a special  session. This bill is extending  it to wherever                                                               
the  special session  is  held.  Last year  there  was a  special                                                               
session for one day in Anchorage,  and if it had been an election                                                               
year,  under HB  386, those  legislators in  Anchorage would  not                                                               
have been able to campaign on that one day.                                                                                     
                                                                                                                                
9:45:48 AM                                                                                                                    
SENATOR FRENCH  said Section 2 seems  to be contrary to  what Ms.                                                               
Anderson is saying.                                                                                                             
                                                                                                                                
MS. ANDERSON  said she forgot.  "That is not a  recommendation by                                                               
the  ethics  committee,  but  it  was  added  in  --  in  another                                                               
committee."  She  continued. "Section  2  does  not prohibit  the                                                               
legislator from  soliciting or accepting a  campaign contribution                                                               
during a special session in  the 90 days immediately preceding an                                                               
election. So  it would allow  those Juneau legislators  and those                                                               
Anchorage legislators,  if it  was held  there, to  campaign, but                                                               
not during the session, but, in  the building that the session is                                                               
being held, but outside of that building."                                                                                      
                                                                                                                                
SENATOR  FRENCH said,  "We  can't have  fundraisers  here in  the                                                               
capital."                                                                                                                       
                                                                                                                                
MS. ANDERSON said, "Right."                                                                                                     
                                                                                                                                
SENATOR FRENCH  said that is  good - "but  you can go  across the                                                               
street and  have a  fundraiser." How did  this come  about? There                                                               
are funny lines being drawn.                                                                                                    
                                                                                                                                
9:47:16 AM                                                                                                                    
MS.  ANDERSON said  the prohibition  against campaigning  where a                                                               
session is held started in the  1980s. There was an exemption for                                                               
Juneau members,  but that was  changed and she doesn't  know why.                                                               
Now Juneau legislators can't campaign  even in the 90 days before                                                               
an election  when everyone else is  exempt. It was to  prevent an                                                               
appearance  of impropriety.  "You  are making  decisions in  your                                                               
legislative body, and  then you're walking across  the street and                                                               
technically  you   could  have  a  sign   saying  I'm  soliciting                                                               
contributions  for   my  office."   There  was  the   chance  for                                                               
violations. The  ethics committee has  not looked at  this issue,                                                               
and  the others  sections in  HB 386  are recommendations  by the                                                               
committee. She  has been the  administrator since 2001  and knows                                                               
that the ethics committee doesn't like exceptions to the rules.                                                                 
                                                                                                                                
9:49:31 AM                                                                                                                    
SENATOR FRENCH asked if constant  electronic disclosures might be                                                               
the  solution.  The old  rules  allow  a  person  to have  a  big                                                               
fundraiser one night and hop on  a plane to a special session the                                                               
very  next  morning.  Many  would  not do  that  because  of  the                                                               
appearance of impropriety,  but the law allows it.  There will be                                                               
more  special sessions  because of  the 90-day  session. Why  not                                                               
require  a legislator  to  disclose  every campaign  contribution                                                               
within 24  hours in a  searchable database?  Bloggers, reporters,                                                               
and  the opposite  party will  know,  within 24  hours, what  the                                                               
candidate got right before voting.  It would collapse these weird                                                               
lines about where a person can raise  money. "It is as if we want                                                               
to  put a  little  buffer around  the capitol  and  say no  money                                                               
changing hands around  the capitol because that's  bad." It looks                                                               
bad to  walk across the street  and have a fundraiser.  But it is                                                               
legal. Constant  electronic disclosure  will let the  public know                                                               
what a legislator is doing.                                                                                                     
                                                                                                                                
9:51:42 AM                                                                                                                    
MS. ANDERSON said a disclosure allows  the public to know what is                                                               
going on,  and it  may be  a very  good alternative.  She doesn't                                                               
know what  kind of burden  it would  be on a  campaign treasurer.                                                               
"But I  think disclosure  is what the  public is  interested in."                                                               
Individuals  call  and  check  the  website  all  the  time.  She                                                               
explained that this section will  allow the Anchorage legislators                                                               
to campaign  if a special session  were held there, and  it would                                                               
not  allow any  other legislators  to  campaign in  that area.  A                                                               
legislator  from  the  Kenai  couldn't  hold  a  fundraiser,  but                                                               
Senator French and Representative  Lynn could. That is important,                                                               
and she doesn't think people realize that.                                                                                      
                                                                                                                                
9:53:12 AM                                                                                                                    
CHAIR  MCGUIRE   said  everyone  understands  the   principle  of                                                               
removing  the appearance  of impropriety.  She is  sponsoring the                                                               
Clean Elections bill because there  is a perception, real or not,                                                               
that if  a person  gives money  to an election,  there will  be a                                                               
trade off. The current system  allows contributions to help get a                                                               
candidate's message  out. So the  idea is  to remove it  far away                                                               
from  the  deliberations so  it  doesn't  feel  like a  vote  was                                                               
influenced by money. Kevin Meyer's  bill goes one step further by                                                               
not  allowing  fundraising  for  a friend.  The  absurdity  is  a                                                               
speaker, president,  or governor thinking  about where to  hold a                                                               
special  session  to influence  where  some  members can't  raise                                                               
money  and  others  can.  She   reflects  on  the  loopholes  and                                                               
absurdities.  Political   speech  is  the  heart   of  the  first                                                               
amendment and maybe disclosure is a  way to balance it. She wants                                                               
to spend time discussing the gift language on page 3.                                                                           
                                                                                                                                
9:56:02 AM                                                                                                                    
SENATOR FRENCH  noted contributions  to charities  on page  3 and                                                               
whether someone  strongholds a person  into giving to  a favorite                                                               
charity. Subsection (d) is intriguing and  he wants a list of the                                                               
recognized  non-political  organizations.   He  asked  about  the                                                               
American Civil  Liberties Union,  Defenders of  Wildlife, Planned                                                               
Parenthood, Big Brothers Big Sisters, and the Outdoor Council.                                                                  
                                                                                                                                
CHAIR MCGUIRE asked Representative Lynn  to explain that [Page 3,                                                               
Line 5].                                                                                                                        
                                                                                                                                
SENATOR STEVENS said these things  are important because they can                                                               
make a  violator "out  of all  of us  so easily."  He is  his own                                                               
campaign treasurer and wouldn't  like to immediately report every                                                               
check  he gets.  There  is a  difference  between campaigning  in                                                               
rural Alaska  and Anchorage. He  doesn't like  anyone fundraising                                                               
or  spending funds  during a  special session.  "I would  be more                                                               
likely to say  no one, either the incumbent or  the opponent, can                                                               
do  anything  if  there's  a  special session  going  on  in  the                                                               
community." The repercussions can be enormous. He urged caution.                                                                
                                                                                                                                
9:58:25 AM                                                                                                                    
MS. ANDERSON  said the sections  added into the bill  are already                                                               
in statute.  It would be  nice if  all of the  exemptions dealing                                                               
with lobbyists  were listed under  this section instead  of other                                                               
parts  of the  statute.  Line 5  refers to  language  that is  in                                                               
AS24.60.030 and 080.  The language was put in  for the Fahrenkamp                                                               
classic.  A  gift  that  is   unconnected  with  the  recipient's                                                               
legislative status is  being added. Allowing legislators  to be a                                                               
go-between for  a charitable  donation has  also been  in statute                                                               
for some time. Those have been  in statute and she just wanted to                                                               
put  them together.  The compassionate  gift language  references                                                               
the statute. The drafter didn't reference the others.                                                                           
                                                                                                                                
10:01:00 AM                                                                                                                   
CHAIR MCGUIRE  said Line 5 is  the procedure and there  is no big                                                               
problem with it. But  "the things that come up on  the fly, and I                                                               
wonder why  we say you have  to go through leg  council; I wonder                                                               
why we don't just say you  can receive these tickets to a charity                                                               
event from  any person at  any time, and  then we go  through and                                                               
describe" what  a charity is. She  noted that a Red  Cross dinner                                                               
that comes up the last minute,  for example, may not get approved                                                               
and officially  sanctioned, but  things like  the skits  are. The                                                               
public would find that absurd that  a legislator couldn't go to a                                                               
Red Cross dinner for people in need.                                                                                            
                                                                                                                                
MS. ANDERSON said  a legislator can receive a  ticket from anyone                                                               
to go to a  Red Cross dinner, except a lobbyist.  There are a lot                                                               
of  events  that  aren't  501(c)(3),  and  it  would  go  through                                                               
legislative counsel to  be approved. The chair can  approve it as                                                               
long as there is 501(c)(3) status.                                                                                              
                                                                                                                                
10:03:04 AM                                                                                                                   
CHAIR  MCGUIRE  asked if  a  lobbyist  gave  her  a ticket  to  a                                                               
charitable event, could  she walk down the hall to  the Chair and                                                               
say "501(c)(3)" and go.                                                                                                         
                                                                                                                                
MS. ANDERSON said yes.                                                                                                          
                                                                                                                                
SENATOR STEVENS said there will be  a special session in June and                                                               
July in Juneau. If this were  to pass, will Juneau legislators be                                                               
able to have fundraisers?                                                                                                       
                                                                                                                                
MS. ANDERSON said yes.                                                                                                          
                                                                                                                                
SENATOR STEVENS said  Senator French will be in  Juneau and can't                                                               
raise funds.  Can he expend  funds in Anchorage during  a special                                                               
session in Juneau?                                                                                                              
                                                                                                                                
MS. ANDERSON said yes, but he can't hold a fundraiser in Juneau.                                                                
                                                                                                                                
10:04:45 AM                                                                                                                   
CHAIR MCGUIRE  gave a hypothetical situation:  Senator French has                                                               
raised money  in Anchorage, and in  Juneau he works on  a placard                                                               
to be mailed in his district;  he works on a campaign computer in                                                               
a campaign  office in  downtown Juneau; he  mails the  check from                                                               
Juneau to pay for it.                                                                                                           
                                                                                                                                
MS. ANDERSON said, "Senator French would  be allowed to go out of                                                               
the state  building and  work on a  campaign flier,  contact your                                                               
treasurer …  and email  back and  forth, and  so forth.  And then                                                               
have the flyer  mailed from the Anchorage area  because you can't                                                               
solicit here, so  technically what we've said in the  past is you                                                               
really shouldn't be sending anything out from here."                                                                            
                                                                                                                                
SENATOR  FRENCH said  the solicitation  rule is  clear, but  what                                                               
about  the expenditures?  If a  check is  mailed from  Juneau and                                                               
sent to  a delivery  service in  Anchorage to  stamp a  flyer and                                                               
mail it out, where is the expenditure being made?                                                                               
                                                                                                                                
MS. ANDERSON suggested it would be Anchorage.                                                                                   
                                                                                                                                
SENATOR FRENCH asked if he could  use an Anchorage mail house but                                                               
not one in Juneau.                                                                                                              
                                                                                                                                
MS. ANDERSON  said yes.  "You are not  allowed to  solicit funds.                                                               
You're not allowed to expend  funds during a special session here                                                               
in the  capital." Senator  French could send  out his  flyer from                                                               
Anchorage soliciting funds from his  constituents. "I don't see a                                                               
problem with  you writing a  check, sending it to  the individual                                                               
in Anchorage  who's going  to be  printing the  flyer to  pay for                                                               
that. Because  you're not  having somebody  here do  that. You're                                                               
sending it to Anchorage to have somebody to do that."                                                                           
                                                                                                                                
10:07:29 AM                                                                                                                   
SENATOR STEVENS surmised that he  would be precluded from using a                                                               
Juneau printing company.                                                                                                        
                                                                                                                                
MS. ANDERSON  said, "Exactly,  because you're  not allowed  to do                                                               
anything here."                                                                                                                 
                                                                                                                                
SENATOR FRENCH  asked about using  his cell phone  to communicate                                                               
with a  campaign worker. Where  are the long distance  charges on                                                               
his  phone? That  is  why  he wants  the  disclosure rule.  These                                                               
questions will come up sooner or later.                                                                                         
                                                                                                                                
CHAIR MCGUIRE  asked about Senator  French asking for  a donation                                                               
in that same phone conversation.                                                                                                
                                                                                                                                
10:08:53 AM                                                                                                                   
MS. ANDERSON  said she would  do some  research, but the  way the                                                               
statute reads: you  shall not solicit in the  capital city during                                                               
a special session.  So you should not be  soliciting. She doesn't                                                               
see a problem  with sending a check, having  something printed in                                                               
Anchorage, or  calling a treasurer  and working on a  flyer. That                                                               
is different from making a phone call to ask for a contribution.                                                                
                                                                                                                                
CHAIR MCGUIRE said  the nuances can trip people  up. During these                                                               
sessions everyone  is hard at  work, and  there is pressure  on a                                                               
member to make those decisions. It creates some challenges.                                                                     
                                                                                                                                
MS. ANDERSON said  the distinction is if someone is  setting up a                                                               
fundraiser  or designing  a  flyer versus  calling  a person  and                                                               
asking for money.                                                                                                               
                                                                                                                                
10:10:45 AM                                                                                                                   
SENATOR STEVENS  said it is  anti incumbency  because challengers                                                               
don't need to go through this. What's the principle I'm missing?                                                                
                                                                                                                                
MS. ANDERSON said  a legislator is under  a different microscope.                                                               
Legislators  have certain  restrictions based  on their  position                                                               
and the  work they do on  bills and issues. The  restrictions are                                                               
the  nature  of the  job.  The  Alaska  vs.  ACLU case  stated  a                                                             
compelling state interest to restrict legislators.                                                                              
                                                                                                                                
CHAIR MCGUIRE  said there is a  similar bill and both  don't need                                                               
to go forward.  HB 386 gets into  the gift act, but  it takes out                                                               
other provisions that are important to the other bill's sponsor.                                                                
                                                                                                                                
MR.  SICA said  the  law  used to  prohibit  all candidates  from                                                               
fundraising during  special sessions.  It was challenged  and the                                                               
court determined that  there was not a  compelling state interest                                                               
to restrict a  non-incumbent. But for legislators  and staff, who                                                               
are  acting  on  legislation,   there  is  concern  for  improper                                                               
influence.                                                                                                                      
                                                                                                                                
10:14:10 AM                                                                                                                   
SENATOR FRENCH recalled that it also includes regular sessions.                                                                 
                                                                                                                                
MR.  SICA   said  there  are  disadvantages   and  advantages  to                                                               
incumbency.                                                                                                                     
                                                                                                                                
CHAIR MCGUIRE held CSHB 368(FIN) am in committee.                                                                               
                                                                                                                                

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