Legislature(2003 - 2004)
05/17/2003 04:29 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
May 17, 2003
4:29 P.M.
TAPE HFC 03 - 100, Side A
CALL TO ORDER
Co-Chair Williams called the House Finance Committee meeting
to order at 4:29 P.M.
MEMBERS PRESENT
Representative John Harris, Co-Chair
Representative Bill Williams, Co-Chair
Representative Kevin Meyer, Vice-Chair
Representative Ethan Berkowitz
Representative Mike Chenault
Representative Mike Hawker
Representative Beth Kerttula
Representative Carl Moses
Representative Bill Stoltze
Representative Jim Whitaker
MEMBERS ABSENT
Representative Croft
Representative Richard Foster
Representative Joule
ALSO PRESENT
Representative Bruce Weyhrauch; Kevin Jardell, Assistant
Commissioner, Department of Administration
PRESENT VIA TELECONFERENCE
Brooke Miles, Director, Alaska Public Officers Commission,
Anchorage
SUMMARY
CS SB 102(L&C) An Act increasing the amount of revenue
received by the state from charitable gaming
activities; relating to taxes on pull-tabs; and
providing for an effective date.
CS SB 102 (L&C) was scheduled but not HEARD.
SB 117 An Act eliminating the longevity bonus program and
making related conforming changes; and providing
for an effective date.
SB 117 was scheduled but not HEARD.
CSSB 119(FIN) An Act authorizing the Alaska Public Offices
Commission to issue advisory opinions; amending
campaign financial disclosure and reporting
requirements, campaign contribution limits,
provisions related to contributions after
elections, and provisions related to unused
campaign contributions; providing for expedited
consideration of, and modifying procedures for
determining, violations of state election campaign
laws; amending the time period within which to
file an administrative complaint of a violation of
state election campaign laws; amending the
definitions of 'express communication' and
'political party' for state election campaigns;
amending the registration fee for lobbyists;
providing for increased use of electronic filing
for reports to the Alaska Public Offices
Commission; adding a definition of 'commission' in
the regulation of lobbying laws; amending the
requirements for the reporting of financial
interests by public officials; adding a definition
of 'domestic partner' in the legislative ethics
code and in the public official financial
disclosure requirements; allowing classified
employees to take an active part in political
party management; making conforming amendments;
and providing for an effective date.
HCS CS SB 119 (FIN) was reported out of Committee
with "no recommendations" and with fiscal note #5
by the Department of Administration.
CS FOR SENATE BILL NO. 119(FIN)
An Act authorizing the Alaska Public Offices Commission
to issue advisory opinions; amending campaign financial
disclosure and reporting requirements, campaign
contribution limits, provisions related to
contributions after elections, and provisions related
to unused campaign contributions; providing for
expedited consideration of, and modifying procedures
for determining, violations of state election campaign
laws; amending the time period within which to file an
administrative complaint of a violation of state
election campaign laws; amending the definitions of
'express communication' and 'political party' for state
election campaigns; amending the registration fee for
lobbyists; providing for increased use of electronic
filing for reports to the Alaska Public Offices
Commission; adding a definition of 'commission' in the
regulation of lobbying laws; amending the requirements
for the reporting of financial interests by public
officials; adding a definition of 'domestic partner' in
the legislative ethics code and in the public official
financial disclosure requirements; allowing classified
employees to take an active part in political party
management; making conforming amendments; and providing
for an effective date.
Co-Chair Harris MOVED to ADOPT work draft #23-GS1090\Q,
Craver, 5/13/03, as the version of the legislation before
the Committee. Representative Berkowitz OBJECTED for
purposes of discussion.
KEVIN JARDELL, ASSISTANT COMMISSIONER, DEPARTMENT OF
ADMINISTRATION, explained that the proposed committee
substitute represented the bill before the Senate Finance
Committee had amended it. He requested that Ms. Miles speak
to the legislation.
BROOKE MILES, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
ALASKA PUBLIC OFFICERS COMMISSION (APOC), ANCHORAGE, pointed
out the two changes contained in the committee substitute.
The first one identifies how campaign contributions are
recorded. That language begins on Page 4, Line 30 through
Page 5, Line 6. Under the "Q" version, disclosure of the
names and addresses of the groups contributing would not be
required to be reported unless the criteria described in
Section 7 was met.
The second change speaks to the financial disclosure laws.
That language begins on Page 19, Line 18, with deleting
"$5,000" and inserting "$10,000"; the change would follow
through on Pages 19, 20, & 21.
Co-Chair Williams asked why a change was made from $1,000
dollars to $5,000 dollars. Ms. Miles advised that change
had been made before the Senate Finance Committee and was
increased from $5,000 to $10,000 dollars.
In response to Co-Chair Williams, Ms. Miles commented that
the agency supports increasing the threshold for many
reasons. The public official financial disclosure law
applies to the members on boards and commissions. The
Administration thought that it would be difficult recruiting
for those positions with inclusion of that requirement.
Representative Berkowitz WITHDREW his OBJECTION. There
being NO further OBJECTION, Version "Q" was adopted as the
working document.
Representative Stoltze MOVED to ADOPT Amendment #1. Co-
Chair Williams OBJECTED for purposes of discussion.
Representative Stoltze stated that the amendment would
delete the exemption for "AS 39.25.160(a)" on Line 22, Page
23. He noted that language was already in existing law.
Currently, there is a bill on the House side, which
addresses that concern.
Representative Berkowitz pointed out that classified
employees are currently prohibited from participating above
those levels. Representative Stoltze agreed, stating that
he wanted to guarantee that continue to remain the case.
Representative Berkowitz OBJECTED to Amendment #1. He asked
if the other repeallers would be similar prohibitions on a
person's right to participate. Ms. Miles responded that
they are not and explained the sections. Representative
Berkowitz WITHDREW his OBJECTION, suggesting that it would
protect the employees.
Co-Chair Williams advised that the Alaska Public Officers
Commission (APOC) would like to see the bill before the
Committee adopted.
REPRESENTATIVE BRUCE WEYRAUCH commented that the provisions
of the House State Affairs version provided for the status
quo, HB 157 versus SB 119. There are limits on lobbyist's
contributions in both bills. There are more status quo
decisions regarding how much could be given to political
parties between the Senate and the House versions. When the
process was in the House State Affairs Committee, there had
been 30 amendments on the bill given no quantitative
reasoning. Those have been reduced in the House version of
the bill.
Representative Berkowitz stated that he had sat through the
discussion during the House State Affairs consideration of
the bill. Representative Weyhrauch interjected that there
are good aspects of each bill. Ms. Miles added that the
st
reporting period would end February 1 for the final
disbursement of campaign assets.
Representative Weyhrauch inquired if there was a comparison
between the House and Senate numbers. Ms. Miles advised
that she had not prepared a "side by side" but recalled that
an aspect of the House State Affairs version would keep
political campaign limits the same as current law.
Co-Chair Williams inquired if Representative Weyhrauch
wanted it to remain the same as the House version.
Representative Weyhrauch explained that would be a Committee
decision. He noted that he had not supported many of the
reductions, noting that there is a benefit to increase some
numbers to accommodate for change over time, but however,
that was not the majority vote.
Representative Berkowitz offered to walk through the House
and Senate versions of the bills. He mentioned areas of
concern.
· An increase from $100 to $250 dollars of the annual
amount paid before it is reported regarding who made
the contribution. That language begins on Page 3,
Sections 2 & 3, and if someone is given $250 dollars
a year, the number must be reported. Currently, the
limit is $100; a jump to $250 dollars would be a
significant contribution.
Ms. Miles countered that in the proposed version, a
candidate or group would be reporting all contributors by
name and address and amount of that contribution. If the
contributor gives more than $250 dollars, that person would
also be identified by occupation and employer information.
Representative Berkowitz responded that would address his
concern.
Representative Berkowitz pointed out an additional worrisome
area:
· Sections 8 & 9, increased contribution limits from
$500 to $1,000 and from $5,000 to $10,000. Those
types of increases will advantage an incumbent and
would stack the deck against people wanting to get
into politics. He stated that the lower limits are
preferable. The proposed change provides for a
laundry machine of "soft money".
Ms. Miles advised that the Commission's concern with
doubling the limit was inflationary. They were looking at
how much $500 dollars could buy in 1996 and how much it buys
in 2003. They considered it was timely for the limits to
increase.
Representative Berkowitz questioned if there had been an
increased number of $500 dollar contributions. Mr. Miles
replied that there had not been a study done. Before 1996,
contributions amounted to $1,000 dollars and after 1996,
$500 dollars. There are more contributors giving now than
were in 1996.
Representative Weyhrauch interjected that both bills contain
good ideas especially regarding the advisory opinion
portion.
Representative Berkowitz acknowledged that is good that
there are more small contributors than there had been in the
past, which indicates that more people are participating in
the process.
Representative Berkowitz stated that Section 11 was of
concern regarding to the amount of contribution that can be
made in a calendar year. Ms. Miles explained that the way
in which they had been administered, the resident limit was
per calendar year. When the language was being drafted, the
attorneys felt that without the clarification, they could
become lifetime limits.
Representative Berkowitz pointed out that was also in the
House version. He added that in the House version, Section
19 speaks to the amount of time that someone could be a
lobbyist and is not contained in the Senate version.
Representative Berkowitz recommended keeping the limits as
they currently are. He MOVED to delete Sections 8, 9 & 10,
which would leave the campaign contribution limits as they
are today. Co-Chair Williams OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Moses, Whitaker, Berkowitz, Hawker
OPPOSED: Stoltze, Chenault, Meyer, Harris, Williams
Representative Foster and Representative Kerttula were not
present for the vote.
The MOTION FAILED (4-5).
Co-Chair Harris MOVED to report HCS CS SB 119 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
HCS CS SB 119 (FIN) was reported out of Committee with "no
recommendations" and with fiscal note #5 by the Department
of Administration.
ADJOURNMENT
The meeting was adjourned at 4:59 P.M.
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