Legislature(1995 - 1996)
05/03/1996 08:20 AM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
MAY 3, 1996
8:20 A.M.
TAPE HFC 96 - 157, Side 1, #000 - end.
TAPE HFC 96 - 157, Side 2, #000 - #102.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 8:20 A.M.
PRESENT
Co-Chair Hanley Representative Martin
Co-Chair Foster Representative Mulder
Representative Brown Representative Navarre
Representative Grussendorf Representative Parnell
Representative Kelly Representative Kohring
Representative Therriault was not present for the meeting.
ALSO PRESENT
Representative David Finkelstein; Wendy Redman, Vice
President, University Relations, University of Alaska;
Marjie MacNeille, (Testified via teleconference), Ethics
Committee, Anchorage; Susie Barnett, (Testified via
teleconference), Staff to the Ethics Committee, Anchorage.
SUMMARY
SB 98 An Act making changes related to the aid to
families with dependent children program, the
Medicaid program, the general relief assistance
program, and the adult public assistance program;
directing the Department of Health and Social
Services to apply to the federal government for
waivers to implement the changes where necessary;
relating to eligibility for permanent fund
dividends of certain individuals who receive state
assistance, to notice requirements applicable to
the dividend program; and providing for an
effective date.
SB 98 was rescheduled for hearing at a latter
date.
SB 134 An Act establishing an endowment for the Robert B.
Atwood journalism chair at the University of
Alaska Anchorage; and providing for an effective
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date.
SB 134 am was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note
by the Senate Finance Committee dated 2/23/96.
SB 141 An Act relating to legislative ethics; and
providing for an effective date.
SB 141 was HELD in Committee for further
consideration.
SCR 23 Relating to long range financial planning.
SCR 43 was rescheduled for hearing at a latter
date.
SENATE BILL 134
"An Act establishing an endowment for the Robert B.
Atwood journalism chair at the University of Alaska
Anchorage; and providing for an effective date."
WENDY REDMAN, VICE PRESIDENT, UNIVERSITY RELATIONS,
UNIVERSITY OF ALASKA, noted that Bob Atwood's contribution
to the State of Alaska and the community of Alaskans is
immense. SB 134 honors him by establishing an endowment for
the Robert B. Atwood Journalism Chair at the University of
Alaska-Anchorage. That action would establish for both
public and private entities to match contributions from Mr.
Atwood to permanently fund the chair.
Co-Chair Hanley asked if there were any federal funds
available for the service. He questioned if State support
would limit that ability. Ms. Redman was not aware of any
available federal monies.
Representative Brown questioned why the Legislature should
be involved in mandating this type of legislation,
suggesting that the Board of Regents should have that
responsibility. Ms. Redman replied that the bill had been
accompanied from the University with a $1 million general
fund dollar fiscal note to be matched with private funds.
Traditionally, that is how endowments have been established.
The fiscal note was dropped along the way.
Representative Brown understood that Mr. Atwood's
contribution was contingent on a State match being
appropriated. Ms. Redman agreed that had been the original
intent, although, the community council has requested that
the legislation be pursued without the fiscal note in order
to set it up in statute, thus giving it more prestige. She
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suggested that could help to raise the needed private funds.
Representative Brown inquired how the initial terms of the
bill would be carried out without any money in the fund.
Ms. Redman replied that to date $1.3 million dollars has
been donated; at this time, there is zero money in that
fund. The University is hopeful, that without the matching
money, Mr. Atwood will be compelled to contribute the money
he had committed.
In response to Representative Brown's concern, Ms. Redman
pointed out that the University of Alaska does support the
bill. Representative Brown asked if it was "normal"
protocol to mandate endowments. Ms. Redman stated that it
was not normal and that the Board of Regent's do not need
the authorization of the Legislature to set up an endowed
chair.
Representative Martin MOVED to report SB 134 am out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
SB 134 am was reported out of Committee with a "do pass"
recommendation and with a zero fiscal note by the Senate
Finance Committee dated 2/23/96.
SENATE BILL 141
"An Act relating to legislative ethics; and providing
for an effective date."
MARJIE MACNEILLE, MEMBER, ETHICS COMMITTEE, ANCHORAGE,
provided a sectional analysis of the proposed legislation.
[Copy on file]. She noted that some of the sections would
make "compliance" with the ethics law easier for the
legislators. Section #9, dealing with conflict of interest,
would be one of those sections. Sections #13, #19, #21,
make the ethics concern more easily applied.
Ms. MacNeille thought that some proposed changes could
damage the public trust in the legislators if they were
enacted. She pointed out the first concern in Section 5,
Page 4, Subsection (2), which addresses the uses of the
State's resources for personal benefit. She added that
Section 2(C) addresses telephone and facsimile use; a
section in which there is no ethical constraint indicated.
Ms. MacNeille referenced Section 5(A), Page 5, which allows
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the use of state property for personal purposes or political
fund raising and campaigning. A key portion of the ethics
effort is that campaigning be kept separate. Section 10,
Page 8, Line 29, suggests that extensive political work
could be allowed as part of a legislator staffers day. She
stressed that impression should not be allowed.
Ms. MacNeille continued, speaking to Section 20, Page 12,
Line 11. The language would permit legislators to take
discounts which are available while traveling on State
business. She disagreed with discounts taken during State
business travel. Co-Chair Hanley asked the consequences
while on per diem, taking a discounted room rate. Ms.
MacNeille stated that the amount should be reported.
Representative Kelly and Ms. MacNeille discussed discounts
and whether they should be allowed. Representative Brown
agreed with Ms. MacNeille in deleting Line 11, Page 12,
which references "state business". She saw it as a "loop
hole" which would significantly expand the opportunity for
people to receive benefits because of their legislative
status.
Representative Brown advised that there was a section in the
legislation which defines what legislators could accept for
purposes of legislative concern.
SUSIE BARNETT, (TESTIFIED VIA TELECONFERENCE), STAFF,
LEGISLATIVE ETHICS COMMITTEE, ANCHORAGE, pointed out that
language was cited on Page 12, Line 14.
REPRESENTATIVE DAVID FINKELSTEIN added that there were "gift
limits" and the referenced language would clarify that an
"in-kind" gift would not be a way to get around that
concern. Discounts could be taken up to the gift level,
although, a legislator could not go beyond that amount.
Representative Martin expressed concerns with the discounts
provided through use of the Frequent Mileage Program.
Representative Finkelstein replied that concern would not be
affected by the ethics law.
Ms. MacNeille continued overviewing the remainder of the
bill. She pointed out that Section 43 was the area of
greatest concern to the Ethics Committee. That section
relates to complaints, while they are confidential, until
the committee determines that there is probable cause to
believe that a violation has occurred.
Representative Kelly commented that the "public perception"
seemed to dominate the theme of the Ethic Committee's work.
He asked if that was the intent within committee's purpose.
Ms. MacNeille replied that it is important how the public
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sees the Legislature operating in order that the voters will
have confidence in the integrity of the system. It is part
of the Ethics Committee's role.
(Tape Change, HFC 96-157, Side 2).
In response to Representative Kelly, Representative Brown
pointed out that in statute, in the findings and purpose
section, that concern is addressed. She added that
information is significant.
Representative Brown referenced Page 23, Lines 20-28, and
asked how it would be addressed. Would the Ethics Committee
be able to impose reasonable restrictions on the release of
information that impose restrictions. Ms. MacNeille thought
that the restrictions should apply to everyone. She
suggested deletion of everything following Line 24 through
Line 28, addressing that concern.
Co-Chair Hanley asked if Ms. MacNeille thought that the
person subject to the complaint should be able to file
information. Ms. MacNeille responded, that person could
waive confidentiality. Co-Chair Hanley thought those
restrictions could be imposed on the release of any
information. Ms. MacNeille stated that could occur to
protect the privacy of the person.
Representative Kelly added that "shepparding the public
interest" was different than public disclosure and conflict
of interest. He suggested that the intent of the
documentation was to make legislators "look better" rather
than addressing conflict of interest.
SB 141 was HELD in Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 9:10 A.M.
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