Legislature(1995 - 1996)
03/05/1996 08:03 AM House STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE STATE AFFAIRS STANDING COMMITTEE March 5, 1996 8:03 a.m. MEMBERS PRESENT Representative Jeannette James, Chair Representative Scott Ogan, Vice Chair Representative Ivan Ivan Representative Brian Porter Representative Caren Robinson MEMBERS ABSENT Representative Ed Willis Representative Joe Green COMMITTEE CALENDAR * HOUSE BILL NO. 365 "An Act relating to the offense of possession of tobacco by a minor." - PASSED OUT OF COMMITTEE HOUSE BILL NO. 354 "An Act relating to a retirement incentive program for certain employees of school districts under the teachers' retirement system and the public employees' retirement system; and providing for an effective date." - PASSED CSHB 354(STA) OUT OF COMMITTEE HOUSE BILL NO. 368 "An Act relating to election campaigns, election campaign financing, the oversight and regulation of election campaigns by the Alaska Public Offices Commission, the activities of lobbyists that relate to election campaigns, and the definitions of offenses of campaign misconduct; and providing for an effective date." - HEARD AND HELD HOUSE BILL NO. 317 "An Act relating to election campaigns, election campaign financing, the oversight and regulation of election campaigns by the Alaska Public Offices Commission, the activities of lobbyists that relate to election campaigns, and the definitions of offenses of campaign misconduct; and providing for an effective date." - HEARD AND HELD (* First public hearing) PREVIOUS ACTION BILL: HB 365 SHORT TITLE: MINOR IN POSSESSION OF TOBACCO SPONSOR(S): REPRESENTATIVE(S) BUNDE, James JRN-DATE JRN-PG ACTION 12/29/95 2361 (H) PREFILE RELEASED 01/08/96 2361 (H) READ THE FIRST TIME - REFERRAL(S) 01/08/96 2361 (H) STATE AFFAIRS, JUDICIARY 02/19/96 2812 (H) COSPONSOR(S): JAMES 02/27/96 (H) STA AT 8:30 AM CAPITOL 102 02/27/96 (H) MINUTES(STA) 03/05/96 (H) STA AT 8:00 AM CAPITOL 102 BILL: HB 354 SHORT TITLE: RIP FOR SCHOOL DISTRICT EMPLOYEES SPONSOR(S): REPRESENTATIVE(S) MACKIE JRN-DATE JRN-PG ACTION 12/29/95 2359 (H) PREFILE RELEASED 01/08/96 2359 (H) READ THE FIRST TIME - REFERRAL(S) 01/08/96 2359 (H) HES, STATE AFFAIRS, FINANCE 01/16/96 (H) HES AT 3:00 PM CAPITOL 106 01/16/96 (H) MINUTE(HES) 02/15/96 (H) HES AT 3:00 PM CAPITOL 106 02/15/96 (H) MINUTE(HES) 02/16/96 2789 (H) HES RPT 3DP 2NR 02/16/96 2790 (H) DP: G.DAVIS, ROBINSON, BRICE 02/16/96 2790 (H) NR: BUNDE, TOOHEY 02/16/96 2790 (H) FISCAL NOTE (ADM) 02/27/96 (H) STA AT 8:30 AM CAPITOL 102 02/27/96 (H) MINUTES(STA) 03/05/96 (H) STA AT 8:00 AM CAPITOL 102 BILL: HB 368 SHORT TITLE: ELECTION CAMPAIGN FINANCE REFORM SPONSOR(S): REPRESENTATIVE(S) JAMES JRN-DATE JRN-PG ACTION 12/29/95 2362 (H) PREFILE RELEASED 01/08/96 2362 (H) READ THE FIRST TIME - REFERRAL(S) 01/08/96 2362 (H) STA, JUDICIARY, FINANCE 01/25/96 (H) STA AT 8:00 AM CAPITOL 102 01/25/96 (H) MINUTE(STA) 01/30/96 (H) STA AT 8:00 AM CAPITOL 102 01/30/96 (H) MINUTE(STA) 02/01/96 (H) STA AT 8:00 AM CAPITOL 102 02/01/96 (H) MINUTE(STA) 02/29/96 (H) STA AT 8:00 AM CAPITOL 102 02/29/96 (h) MINUTE(STA) 03/05/96 (H) STA AT 8:00 AM CAPITOL 102 BILL: HB 317 SHORT TITLE: ELECTION CAMPAIGN FINANCE REFORM SPONSOR(S): REPRESENTATIVE(S) FINKELSTEIN JRN-DATE JRN-PG ACTION 04/21/95 1427 (H) READ THE FIRST TIME - REFERRAL(S) 04/21/95 1427 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/08/96 2358 (H) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS 01/08/96 2358 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/25/96 (H) STA AT 8:00 AM CAPITOL 102 01/25/96 (H) MINUTE(STA) 01/30/96 (H) STA AT 8:00 AM CAPITOL 102 01/30/96 (H) MINUTE(STA) 02/01/96 (H) STA AT 8:00 AM CAPITOL 102 02/01/96 (H) MINUTE(STA) 02/29/96 (H) STA AT 8:00 AM CAPITOL 102 02/29/96 (H) MINUTE(STA) 03/05/96 (H) STA AT 8:00 AM CAPITOL 102 WITNESS REGISTER REPRESENTATIVE CON BUNDE Alaska State Legislature State Capitol, Room 108 Juneau, Alaska 99801-1182 Telephone: (907) 465-4843 POSITION STATEMENT: Sponsor of HB 365. DELISA CULPEPPER, Member Alaska Public Health Association 1874 Wickersham Drive Anchorage, Alaska 99507 Telephone: (907) 563-6426 POSITION STATEMENT: Provided testimony in support of HB 365. CHRIS STOCKARD, LT. Planning and Research Section Office of the Commissioner Department of Public Safety P.O. Box 111200 Juneau, Alaska 99811-1200 Telephone: (907) 465-4306 POSITION STATEMENT: Provided testimony on HB 365. GLEN RAY, Health Promotion Program Manager Community Health and Emergency Medical Services Division of Public Health Department of Health and Social Services P.O. Box 110616 Juneau, Alaska 99811-0616 Telephone: (907) 465-3140 POSITION STATEMENT: Provided testimony on HB 365. FOREST RAY 9278 Emily Way Juneau, Alaska 99801 Telephone: (907) 789-0729 POSITION STATEMENT: Provided testimony on HB 365. LYNDA ADAMS, Regional Board Member Seven Circles Regional Council P.O. Box 7171 Ketchikan, Alaska 99901 Telephone: (907) 225-6227 POSITION STATEMENT: Provided testimony on HB 365. MICHAEL LIVINGSTON Address not provided. Telephone not provided. POSITION STATEMENT: Provided testimony in support of HB 365. DIANE CROPPER 2006 Tudor Hills Court Anchorage, Alaska 99507 Telephone: (907) 561-0211 POSITION STATEMENT: Provided testimony on HB 365. REPRESENTATIVE JERRY MACKIE Alaska State Legislature State Capitol, Room 404 Juneau, Alaska 99801-1182 Telephone: (907) 465-4925 POSITION STATEMENT: Sponsor of HB 354. STEVE WRIGHT, Part of Executive Board Kenai Peninsula Educational Support Association P.O. Box 4645 Soldotna, Alaska 99669 Telephone: (907) 262-7355 POSITION STATEMENT: Provided testimony on HB 354. LUCY HOPE, President Mat-Su Education Association P.O. Box 870887 Wasilla, Alaska 99687 Telephone: (907) 376-4796 POSITION STATEMENT: Provided testimony on HB 354. GARY BADER, Administrative Services Director Juneau School District 10014 Crazy Horse Drive Juneau, Alaksa 99801 Telephone: (907) 463-1700 x239 POSITION STATEMENT: Provided testimony on HB 354. VERNON MARSHALL, Executive Director National Education Association-Alaska 114 2nd Street Juneau, Alaska 99801 Telephone: (907) 586-3090 POSITION STATEMENT: Provided testimony on HB 354. STEVE MCPHETRES, Executive Director Alaska Council of School Administrators 326 4th Street, Suite 404 Juneau, Alaska 99801 Telephone: (907) 586-9702 POSITION STATEMENT: Provided testimony on HB 354. WALT BROMENSCHENKEL 128 North Binkley Soldotna, Alaska 99669 Telephone: (907) 262-5846 POSITION STATEMENT: Provided testimony on HB 354. REPRESENTATIVE DAVID FINKELSTEIN Alaska State Legislature State Capitol, Room 424 Juneau, Alaska 99801-1182 Telephone: (907) 465-2435 POSITION STATEMENT: Provided testimony on HB 368 and HB 317. JACK CHENOWETH, Attorney Legislative Legal Counsel Legislative Legal and Research Services Legislative Affairs Agency 130 Seward Street, Suite 409 Juneau, Alaska 99801-2105 Telephone: (907) 465-2450 POSITION STATEMENT: Provided testimony on HB 368 and HB 317. ACTION NARRATIVE TAPE 96-27, SIDE A Number 0015 The House State Affairs Committee was called to order by Chair Jeannette James at 8:03 a.m. Members present at the call to order were Representatives Ogan, Porter, Robinson and James. Members absent were Representatives Green, Ivan and Willis. HB 365 - MINOR IN POSSESSION OF TOBACCO The first order of business to come before the House State Affairs Committee was HB 365. CHAIR JEANNETTE JAMES called on the sponsor of HB 365, Representative Con Bunde. Number 0042 REPRESENTATIVE CON BUNDE explained there were laws against minors consuming alcohol and tobacco. Unfortunately, unlike minors consuming alcohol, a glitch existed in the laws that prevented the enforcement of the prohibition against minors consuming tobacco. He explained "sting operations" were not allowed in tobacco compliance checks, and HB 365 would take care of that. The problem was addressed at the federal level with the passage of the Synar Amendment that required states to conduct local random checks for illegal sells. Alaska had been out of compliance because as the laws were written it could be conceived that the minor was breaking the law and the law enforcement official was contributing to the delinquency of a minor. Therefore, HB 365 would allow undercover minors working with law enforcement to buy tobacco under a random unannounced inspection. He said, if there were no compliance checks, there was no way to know which stores were selling tobacco to children preventing the enforcement of the law. In addition, many substance abuse prevention and treatment efforts would suffer, if federal substance abuse block grants were reduced as a result. He called HB 365 a simple bill and encouraged the support of the committee members. Number 0287 CHAIR JAMES said HB 365 was a good bill of which she signed on as a cosponsor. CHAIR JAMES called on the first witness via teleconference in Anchorage, Delisa Culpepper. Number 0335 DELISA CULPEPPER Member, Alaska Public Health Association, said the Association supported HB 365. She explained tobacco was related to a number of health problems in the United States and the world. She commented many people believed it was a common rite of passage for the youth when in actuality many of the adults that smoked started before the age of 18 and never stopped. She cited a survey in Anchorage where 31 percent of young males smoked and 34 percent of young women smoked in the age group of 18 to 24. Moreover, another survey indicated children were beginning to smoke on a regular basis at a younger age. She suggested educating children at an earlier age, increasing tobacco rates, and making sure cigarettes were not readily available as a few solutions to the problem. Laws existed that said it was illegal to smoke under the age of 19, yet cigarettes were readily available. She concluded by stating "lets stop the habit." Number 0495 CHAIR JAMES asked Representative Bunde what the penalty was in the law for a minor in possession of a tobacco product? Number 0550 REPRESENTATIVE BUNDE replied, in Anchorage according to news reports, a citation was being issued rather than making an arrest. Number 0591 REPRESENTATIVE CAREN ROBINSON replied a fine was issued in Juneau of about $300. Number 0605 REPRESENTATIVE BRIAN PORTER asked Representative Robinson if the fine amount was in a municipal ordinance or in a state statute? REPRESENTATIVE ROBINSON replied I think it is in a state statute. CHAIR JAMES called on the next witness in Juneau, Chris Stockard, Lt., Department of Public Safety, to answer her question. CHRIS STOCKARD, Lt., Research and Planning Division, Office of the Commissioner, Department of Public Safety, replied he was here to answer questions. He did not have a prepared statement. The penalty of a minor in possession of a tobacco product was a class B misdemeanor. CHAIR JAMES called on the next witness in Juneau, Glen Ray, Department of Health and Social Services. Number 0671 GLEN RAY, Health Promotion Program Manager, Community Health and Emergency Medical Services, Division of Public Health, Department of Health and Social Services, said the division was in favor of HB 365. He explained every state in the United Stated discouraged tobacco use through banning sells to minors. He cited an estimated 3,000 minors started smoking every day which translated to about 1 million addicted minors every year. He explained tobacco use usually started in early adolescence, and cited a 1992 behavioral risk survey of which 84.5 percent of the current smokers reported the use of tobacco before the age of 20. He further cited in 1995 a behavioral risk survey indicated 36.5 percent surveyed identified themselves as current smokers, defined as at least one cigarette in the last 30 days; and 21 percent identified themselves as frequent smokers, defined as at least 20 cigarettes in the last 30 day. There was a high rate of tobacco use in Alaska compared to the rest of the United States. A report by the Center for Disease Control (CDC) indicated the overall percentage of smokers was higher in 1993 than in 1989, while the trend was increasing among the youth, this was directly associated with the sell of tobacco from small vending stores. He further explained nicotine was the most difficult addiction to overcome. Therefore, if the supply was restricted, the amount of addicted smokers would decrease in the long run. A recent study indicated only 28 percent of the vendors obeyed the laws. The easy access, he asserted, sent a wrong message to minors. In conclusion, he said HB 365 would reduce the number of tobacco products acquired by minors thereby reducing the number of people becoming addicted to tobacco, and improving the health of the state. CHAIR JAMES called on the next witness in Juneau, Forest Ray. Number 1160 FOREST RAY said he was a sophomore at Juneau Douglas High School. He was part of a sting operation this summer of which 10 places were hit. He explained around six of the places sold to him easily of which only about one-half asked him for identification. He expressed his support for HB 365. He did not like to be around smokers, and to breath the smoke and chemicals. Number 1211 REPRESENTATIVE ROBINSON asked Mr. Ray if he was instructed not to lie about his age? She wondered if that was an important part of a sting operation. Number 1233 MR. RAY replied he did not hear that part. CHAIR JAMES called on the next witness via teleconference in Ketchikan, Frances Young. Number 1248 FRANCES YOUNG said she agreed with the previous testifiers, Ms. Culpepper and Mr. Ray. She said the mortality and the cost related to tobacco use added to the problem. She explained in Ketchikan a judge required a 10 page report for a first offense on the effects of tobacco. She further explained, if the minor was caught on school property with a tobacco product, a one day in-house suspension was enforced. Moreover, a second offense required a 20 page report, and a two day in-house suspension. Consequently, the smoking rate in Ketchikan appeared to be down. According to a compliance check in Ketchikan, three out of five vendors sold cigarettes to minors. The vendors did not sell the second time around, however. She called HB 365 a helpful bill. CHAIR JAMES called on the next witness via teleconference in Ketchikan, Lynda Adams. Number 1424 LYNDA ADAMS, Regional Board Member, Seven Circles Council, said the Council represented communities in Ketchikan, Juneau, and Sitka. The Council supported HB 365, and further felt the House State Affairs Committee should also hear HB 431. The Council supported HB 365 because it would make sting operations easier for communities. She reiterated the Council supported HB 365, and hoped the committee would hear HB 431 as well. CHAIR JAMES called on the next witness via teleconference in Anchorage, Michael Livingston. Number 1488 MICHAEL LIVINGSTON congratulated Representative Con Bunde on proposing HB 365. He urged the committee members to pass the bill forward to the next committee of referral. He also urged the committee members to consider the penalties for businesses cited selling tobacco products to minors. He recommended considering an optional court appearance with a $300 fine. The reason, he said, was because magistrates often dismissed businesses cited creating a waste of time for a police officer to issue a citation. Number 1550 CHAIR JAMES asked Representative Bunde to address the suggestion Mr. Livingston made regarding the optional court appearance and the $300 fine. Number 1568 REPRESENTATIVE BUNDE deferred to the experts in the Department of Public Safety to answer the question. Number 1594 LT. STOCKARD replied the Department did not handle a lot of these cases. He cited in 1995 there were 3 cases of sales and 19 cases of possession. The Department knew about the sting operations in some communities, and that Judge Peter B. Froehlich pursued the issue seriously and to the maximum in Juneau. The issue, however, laid with the court system and not with law enforcement. Number 1649 REPRESENTATIVE PORTER responded, unlike district court judges or superior court judges, magistrates did not run for confirmation. He said magistrates were employees of the court system, and suggested sending a letter to the superior court judge when the magistrate did not want to enforce the law. CHAIR JAMES called on the next witness via teleconference in Anchorage, Diane Cropper. Number 1676 DIANE CROPPER explained she was the mother of five children in Anchorage. She explained a Tesoro Northstore Company (7-Eleven) store in Anchorage sold a tobacco product to her 16 year old son. The receptionist of the Anchorage Police Department advised her to call the Borough or Alcohol and Tobacco and Firearms for information who in turn referred her to the Anchorage Police Department. She said it was amazing that there was a law that no one was enforcing. Furthermore, after several more phone calls she was passed around until she talked to a Sergeant Nelson. She explained to Sergeant Nelson she had a receipt showing the date and time of the purchase and she wanted to file a complaint. She could not identify the clerk and was told without positive identification there was nothing that could be done. However, the police could give her son a $300 ticket, and talk to the employees of the 7- Eleven. The fact that she had a receipt did not matter. In response, she said she would organize her own sting operation. The police officer explained she would go to jail for aiding and abetting a minor, receive a $300 fine, her son would receive a $300 fine, and lastly the store would get off because the evidence was gathered while she was committing a crime. She was told tobacco sells to minors were not a big enough crime to warrant anyone to enforce the law. She explained her son looked like the average 16 year old, and he shared with her that the small stores were the easiest to purchase tobacco products from. Number 1885 REPRESENTATIVE PORTER replied sometimes the police department was the messenger rather than the creator of the rules. The fact that a case could not be made using her receipt was not an arbitrary decision by the police department, but a decision made in law by the courts. House Bill 365 was trying to correct her frustrations. MS. CROPPER replied, "that's what I'd like to see happen." Number 1928 REPRESENTATIVE ROBINSON wondered if the police officer could notify the business owner a complaint had been reported. Number 1935 REPRESENTATIVE PORTER replied, according to the testimony of Ms. Cropper, that was what the officer suggested. Number 1946 REPRESENTATIVE ROBINSON reiterated her concern about minors lying about their age in a sting operation. She wondered if it needed to be clarified in the bill. Number 1976 REPRESENTATIVE BUNDE replied the individuals were lying in a sting operation, but not about their age. He cited the response, "I lost my drivers license," was a lie. He did not view this as entrapment, however. He said it was the obligation of the store clerk to investigate the age further. Number 2008 REPRESENTATIVE ROBINSON reiterated it was important to create a program that did not encourage minors participating in a sting operation to lie about their age. Number 2046 REPRESENTATIVE BUNDE replied, nonetheless, when entrapment was involved it was not a good case. Number 2066 CHAIR JAMES said it was more proper to ask for identification than to ask how old was the person. Number 2078 REPRESENTATIVE ROBINSON said, according to the experts in Juneau, the program worked because the clerks and business owners were educated to the extent of the law. Her goal was to educate the clerks to prevent the sale of tobacco products to minors. Number 2137 REPRESENTATIVE PORTER replied it was preferable to educate as Representative Robinson suggested. However, there were times when a vendor intentionally violated the law, and that was when it was important to allow law enforcement to make a case. Number 2165 REPRESENTATIVE BUNDE stated the age requirement for tobacco products should match the age requirement for alcohol. Identification was required when alcohol was purchased. Number 2189 REPRESENTATIVE ROBINSON reiterated she had a problem with creating a situation that supported a minor to lie about his or her age. Number 2199 REPRESENTATIVE BUNDE replied the fact that a minor tried to buy was a lie. He said he did not want to encourage children to be dishonest either. REPRESENTATIVE ROBINSON asked Representative Bunde to think about the issue further and to talk to the experts here in Juneau. Number 2222 REPRESENTATIVE BUNDE moving forward, responded to the $300 fine discussed earlier. He said he would consider increasing the fine to $1,000, for example. CHAIR JAMES said she would support an increase in the fine. Number 2242 REPRESENTATIVE PORTER moved that HB 365 move from committee with individual recommendations, and attached fiscal notes. Hearing no objection, it was so moved from the House State Affairs Committee. HB 354 - RIP FOR SCHOOL DISTRICT EMPLOYEES The next order of business to come before the House State Affairs Committee was HB 354. CHAIR JAMES called on the sponsor of HB 354, Representative Jerry Mackie. Number 2358 REPRESENTATIVE JERRY MACKIE read the following sponsor statement into the record. "I introduced HB 354 in response to the desire to many Alaskan school districts to achieve operational cost savings through a retirement incentive program. The program allows school districts to offer early retirement to teachers at the higher end of the district's salary scale. The savings would result from the hiring of replacement teachers that are younger and lower on the pay range. "The proposed early retirement program is similar to programs established for all public employees beginning in 1986 and ending in 1990. A November 1991 legislative audit estimated that the 1989-90 retirement incentive program saved approximately $23 million on the early retirement of 1,764 employees taking advantage of the program. In the 1986-87 program 2,327 employees participated achieving a savings of over $73 million. It should be noted that retirement incentive programs are commonly used by business corporations to attain a more efficient and economic operation. "The program established in HB 354 offers three years of service credited to eligible public school employees facing retirement. The offer is an inducement to employees near or at retirement eligibility to terminate their services. The resulting vacancies allow employers to achieve savings by filing positions with persons of lower step and pay range, down classing positions, or keeping positions vacant. A key provision requires agencies to show on a case by case basis that a three year credited service award would result in a net personnel services cost savings. It should be stressed that participation in the program is completely optional for either the employer or any employee. "The three year credit must be applied in the following order: 1. To meet the age or service required for eligibility for normal retirement; 2. to meet the age required for early retirement; 3. to reduce the actuarial adjustment required for early retirement; and 4. as years of credited service for calculating retirement benefits. "An employee awarded the benefit is required to contribute to the retirement system the amount they would have paid had they continued working the additional three years. The employer's cost is the difference between the employee's contribution and the full actuarial cost of the three year incentive. Thus, the TRS or PERS retirement system is fully compensated for the effects of an individual's early termination of service. "The employer's additional contribution to the retirement system as well as sharing in other program administration costs are primary factors in calculating whether a potential early retirement will result in a net savings and hence qualify. The calculation is based on a five year time period. "House Bill 354 has a sunset clause that terminates the incentive program on July 1, 1998. "I believe this legislature has to make a serious effort to address the state's continuing revenue shortfall and the need for long term financial stability. If education is faced with reduced or frozen budget funding levels, then we have to give the school districts the tools to make the necessary adjustments. Otherwise, the education of Alaska's youth will directly suffer. HB 354 is one of the tools that can be used to mitigate budget shortfalls and preserve the excellence in our public school system." TAPE 96-27, SIDE B Number 0023 REPRESENTATIVE MACKIE referred the committee members to the survey by the Alaska Association of School Administrators in their packet of information. He explained all school districts were surveyed of which 67 percent of the school districts responded and an overwhelmingly number responded that they would participate in a RIP program. He also referred the committee members to an audit conducted by the Alaska State Legislature, Division of Legislative Audit, estimating the savings or (costs) by the employer the last time a RIP program was instituted in 1991. Furthermore, he referred the committee members to a letter from Lawrence A. Wiget, Director, Government Relations/Legislative Liaison, Anchorage School District, that estimated there were at least 600 eligible teachers to participate in a RIP program calling for a potential of $12 million in savings. The Anchorage School District had their own retirement incentive program and it was unclear if the District would participate at this point, however. He referred the committee members to a letter from Mary Rubadeau, Superintendent, Juneau School District, that estimated a saving of $3 million. He also cited the Hoonah School District estimated a substantial savings as well. In conclusion, he explained the amendment before the committee members included the commissioner of education as part of the reviewing and certification process of a RIP plan proposed by a school district. Number 0156 CHAIR JAMES asked, if a school district got its money, up front, for the three year credit, from the regular formula funding? She was concerned the state would need to pick-up the remaining money involved. Number 0187 REPRESENTATIVE MACKIE replied, once a decision was made to retire a teacher under a RIP plan, the cost savings depended on who was hired to replace the retired teacher. There was an obvious savings if the new teacher was hired at a lower pay scale. Therefore, the district would have the money saved from that hire to put up front into the retirement account. He stated a fiscal note was never considered because of the savings. Furthermore, the teacher would have to contribute the money up front into the account as well. Number 0257 CHAIR JAMES asked Representative Mackie if he felt the amendment before them was needed? Number 0263 REPRESENTATIVE MACKIE replied, it was not a bad idea. He called it an extra safeguard. He said, a school district should have a plan and demonstrate a savings, and if by including the commissioner of education was necessary to ensure that, then he agreed with the amendment. CHAIR JAMES wondered if the state should be the entity telling the school districts they needed a RIP plan. Number 0288 REPRESENTATIVE MACKIE replied, HB 354 gave the school districts the ability to act on a local level. However, it was responsible of the state to require a demonstration of savings before implementing a RIP plan. CHAIR JAMES replied she had more faith in the school district. It was hard to believe a school district would implement a plan without demonstrating a savings. She resisted the idea of including the commissioner of education. Number 0326 REPRESENTATIVE MACKIE replied some might feel it was one more level of bureaucracy. He said it really did not matter to him if the amendment was adopted or not. Number 0348 REPRESENTATIVE SCOTT OGAN wondered about a conceptual amendment to address the cost savings issue to include a provision that did not allow the re-hire of a teacher with more than three years of experience, for example. He agreed with the concept of local control and hoped the local voters would hold their school districts accountable. However, he wondered about the school districts that were not closely watched by the local voters and felt a conceptual amendment would protect those districts. Number 0411 REPRESENTATIVE PORTER announced he supported the amendment. Moreover, he commented about specialty positions that required a high level of qualification, such as a special education teacher. He wondered how there would be a savings for a district in that case. Number 0437 REPRESENTATIVE MACKIE replied he understood Representative Ogan's concept to require a district to maximize its savings. However, he would resist going to that extreme. He explained HB 354 was only a tool for local school districts. A district would know if it was in its best interest to re-hire a teacher at the low-end of a pay scale. He did not want to suggest to a school district what was in its best interest in terms of experience to replace the retired teacher. That, he said, should be addressed at the local level. Number 0496 CHAIR JAMES expressed her support for HB 354. However, she was terrified to hear from teachers in her district that supported a RIP program because they were "burnt-out." A RIP program should not be necessary to get rid of teacher who were burnt-out. Local control was needed to give district the flexibility to manage their teachers. Number 0590 REPRESENTATIVE MACKIE replied each district and each employee was different. He said there were various reasons a teacher could take advantage of a RIP program. He further said it would be hard for a district to get rid of a good teacher, and agreed the more local control the better. Number 0639 REPRESENTATIVE ROBINSON reminded the committee members it was the teacher that would make the decision to approach the school district to retire. CHAIR JAMES called on the first witness via teleconference in Kenai, Steve Wright. Number 0663 STEVE WRIGHT member of the Kenai Peninsula Educational Support Association, read the statement from the National Education Association-Alaska (NEA-Alaska) into the record. "NEA-Alaska supports utilization of a retirement incentive program (RIP) as a cost effective means to reduce the overall cost of school district operation. This cost saving measure is needed especially at a time when student population is increasing and inflation continues to chop away at the opportunities schools offer children. Additional funding is needed to correct the problem but, in the short term, the RIP provides an option for school districts to trim already tight budgets. "In January over 400 NEA-Alaska member delegates attending our annual Delegate Assembly approved the following legislative priority: Retirement Incentive Program: NEA-Alaska shall seek legislation to support the enactment of a retirement incentive program that is actuarialy sound. Delegates also discussed the need to make the program available to all school employees in each school district. "If it is the intent of the Legislature and the Administration to reduce the cost of state and local governments, a retirement incentive program is an excellent opportunity to achieve that goal without harming employees at the upper or lower ends of the salary schedule. Absent a RIP, a school district attempting to cut operating costs through reduction in staff (RIP) would be forced to lay off less experienced employees. This option creates a hardship on younger employees and their families and disrupts initial career goals of these employees. "Previous RIPs provided certified and non-certified school employees the benefit of the retirement incentive. Lawmakers have a history that demonstrates the benefits of RIP to both the employee and employer. "NEA-Alaska represents nearly 10,000 members; 2,500 of which are non-certified Educational Support Personnel. Earlier bills extended the benefits of RIP to all school employees. We support the universal application of the RIP to all school employees. "A retirement incentive program offers school district administrators an opportunity to retire staff at the top-end of the salary schedule. Those who retire can be replaced by employees at a lower position on the salary schedule. If school administration carefully employs equally qualified but less experienced teachers and support employees, a school district will net a reduction in operating costs. "Previous RIPs offered experienced employees an early retirement option by providing them a credit of three additional years of service provided the employer and employee pay the actuarial cost of that service. Maintaining that option will not encourage large numbers of experienced school employees to retire since many would likely retire within three to five years anyway. Furthermore, it would maintain the strength of the retirement system for present and future generations of retirees. "We support a retirement incentive plan that is universal in nature. State and local governments, including school districts, can utilize a RIP to achieve cost savings in fair way to both the employer and employee. A RIP is a way to address the economic uncertainty many school districts face. The legislation presents an equitable and fair plan for the employees of Alaska's schools and state government to retire during periods of economic uncertainty." CHAIR JAMES called on the next witness via teleconference in Mat- Su, Lucy Hope. Number 0885 LUCY HOPE, President, Mat-Su Education Association, said the Association represented 852 school teachers in the Mat-Su School District. She said the District was currently facing budget difficulties. She recently received formal notification to lay-off every non-tenure school teacher, approximately 170 teachers. The RIP program was a good way to alleviate those concerns, she said. The salary schedule was built so that beginning teachers made about one-half of what most experiences teachers made. The last time the District participated in a RIP program 26 teachers retired, double the number of teachers hired in a given school year, and the District saved over one-half million dollars over three years. She called the RIP program a humane way to deal with the budget difficulties a district was faced with. She supported HB 354 as a tool for school districts to use to maintain the integrity of the schools. Number 0983 REPRESENTATIVE OGAN asked Ms. Hope if the teachers were hired at a lower salary because of seniority or because of a different pay tier? Number 1006 MS. HOPE replied a teacher was hired at a lower salary because of the number of years of experience and education the teacher brought to the District. The only way a teacher could be hired at the same salary as the retired teacher was if he or she had taught in Alaska for the same number of years. She explained the local negotiated agreement recognized only four years of out-of-state experience, and the actual number of years of Alaska experience. REPRESENTATIVE OGAN thanked Ms. Hope for the clarification. Number 1051 REPRESENTATIVE MACKIE asked Ms. Hope how many teachers received a lay-off notice? MS. HOPE replied 170 teachers. She stated she only received a formal notification and the teachers had yet to receive their individual letters of notification. Number 1070 REPRESENTATIVE MACKIE wondered if the notices were sent to clear the books so the school district was not saddled with additional tenured teachers. Number 1080 MS. HOPE said the budget would probably not be finalized by the last day of school and by statute that was the last opportunity the District had to lay-off employees. The formal notification was necessary because of the negotiated agreement that required a notification by March 1. She said the District planned to recall a number of the teachers based on qualifications. CHAIR JAMES called on the next witness in Juneau, Gary Bader. Number 1116 GARY BADER, Administrative Services Director, Juneau School District, said the District supported HB 354. He said in terms of the repayment, the District calculated the savings made on each teacher. The current contract for the Juneau School District limited a new teacher to bring four years of service to the District. He said, according to HB 354, a district did not have to start repaying until the second year after retirement, reserving a portion of the first year of savings while the rest would be available for the general expenditures of the school district. He reiterated the District favored HB 354 and hoped it would be passed out of committee today. Number 1176 REPRESENTATIVE MACKIE said the Juneau School District had a higher number of teachers at the top-end of the salary range compared to the other districts. He asked Mr. Bader if he knew the exact number of teachers at the higher-end of the salary range? MR. BADER replied the District estimated about 60 teachers would participate in a RIP program. However, not all were vested in the system. He reiterated the District had 60 eligible participants. Number 1205 REPRESENTATIVE ROBINSON asked Mr. Bader his opinion regarding the proposed amendment. Number 1214 MR. BADER replied the District did not have a difficulty with the proposed amendment. He said the bill already contained provisions to ensure there was a savings, however. He felt certain the Juneau School District RIP Plan would pass any scrutiny. CHAIR JAMES called on the next witness in Juneau, Vernon Marshall. Number 1238 VERNON MARSHALL, Executive Director, National Education Association-Alaska (NEA-Alaska), said the reality was echoed by Representative Mackie that many districts were experiencing frozen funding levels. He explained, due to inflation and demands for new programs from the state and federal governments, an immense amount of pressure was put on the employees. He called a RIP program a safety valve to relieve the pressure, and HB 354 was a step in the right direction. Number 1376 CHAIR JAMES said it was costly to incorporate new programs demanded from the state and federal governments. It was the biggest contributor to the raising cost of education, and she did not see evidence of any improvement in the system. She asked Mr. Marshall to respond to her statements. Number 1423 MR. MARSHALL said the question of who would pay for a new program needed to be answered first. He called it the mission for public education. He said 1996 presented various problems relative to children and the issues brought to the classrooms, and cited students having babies as an example. He said there were a lot of frustrated teachers who wanted to do more, but because of the demands and limited resources they were not able to. Number 1578 CHAIR JAMES said the reasons why a RIP program was needed was also necessary to discuss. She commented the schools were expected to address social issues and suggested funding them with social money as opposed to education money. She said the schools were getting a "bad rap" because they were expected to be parents, social workers, and police officers, for example. Number 1671 MR. MARSHALL agreed with the comments of Chair James. He further said HB 354 addressed the economic issues and was a mechanism to save districts money. Number 1742 CHAIR JAMES said it was important to keep the title of HB 354 tight for support. Number 1762 REPRESENTATIVE OGAN asked Mr. Marshall what he contributed the inflation issue to discussed earlier? Number 1812 MR. MARSHALL replied the inflation was the same that everyone experienced and was a factor that the school district absorbed. He cited school districts operated on a funding unit of $61,000. He said, if it was adjusted, it was worth much less. Therefore, the districts had to pay to react to the new demands. He called the bill a safety valve to allow districts to let-off steam. Number 2017 CHAIR JAMES agreed with Mr. Marshall about inflation. She said it did not relate to real income and was a serious problem. Number 2049 REPRESENTATIVE OGAN said he was concerned about the causes of inflation. He said one of the biggest problem with inflation were the negotiated salaries. He said he supported full funding for education last year, but felt it was time the districts started talking about why a RIP program was necessary. He stated the private sector absorbed inflation. He said he would support HB 354 because it would help his district, and asked Mr. Marshall to be realistic about the future salary demands. Number 2160 MR. MARSHALL said he would be glad to provide a break down of the salaries negotiated. He said the salary increases were about 2 percent. A report indicated from the University of Alaska that Alaska ranked 14th in America for inflation adjusted salaries. He said he did not see that the school districts were causing the academic inflation. CHAIR JAMES called on the next witness in Juneau, Steve McPhetres. Number 2280 STEVE MCPHETRES, Executive Director, Alaska Council of School Administrators, said the Council represented 600 school administrators and business officials across Alaska. He said the Council supported HB 354 as another tool to balance the budgets. He explained there would be a substantial savings per teacher, if the district hired an employee at the low end of the pay scale. He said it was also an opportunity to hire more faculty as the classrooms continued to grow in size because of the money saved. Number 2456 REPRESENTATIVE MACKIE thanked Mr. Mcphetres for his work done in support of HB 354. Number 2480 REPRESENTATIVE PORTER moved to adopt Amendment 1. Hearing no objection, it was so adopted. TAPE 96-28, SIDE A Number 0000 REPRESENTATIVE PORTER said some school districts needed help with their numbers, therefore, he supported the amendment. He said he did not see it as an infringement. Number 0095 CHAIR JAMES said a school district should not have to be overseen because it was suppose to house the smartest people in the state. Number 0132 REPRESENTATIVE OGAN said he agreed with Chair James. He said he would support Amendment 1 because of accountability for districts that were not as responsible or careful. Number 0216 CHAIR JAMES disagreed with Representative Ogan for the record. Number 0238 REPRESENTATIVE PORTER moved that CSHB 354(STA) move from the committee with individual recommendations and attached fiscal notes. Representative Ogan objected. CHAIR JAMES called on the next witness via teleconference in Kenai, Walt Bromenschenkel. WALT BROMENSCHENKEL said in 1986 and 1987, 39 employees chose to participate in the RIP program in Kenai; and in 1989 and 1990, about 43 employees chose to participate in the RIP program which generated over $800,000 in savings. Furthermore, HB 354 would allow money to be redirected to the education of the students. He was pleased with the motion to pass the bill out of the committee. Number 0436 REPRESENTATIVE OGAN explained he objected to the motion for the sake of further discussion. He said he supported HB 354 because he recognized the problems in his district. He hoped districts would look at local management further to hire personnel in a cost effective manner, however. He said he trusted his district to address the problems and hoped the bill would alleviate the major crisis back home. REPRESENTATIVE OGAN removed his objection. CHAIR JAMES responded hearing no further objection, CSHB 354(STA) moved from the House State Affairs Committee. Number 0512 CHAIR JAMES temporarily adjourned the House State Affairs Committee at 9:45 a.m. TAPE 96-29, SIDE A Number 0000 CHAIR JAMES opened the House State Affairs Committee meeting again at 9:50 a.m. to discuss the next items on the agenda. HB 368 - ELECTION CAMPAIGN FINANCE REFORM HB 317 - ELECTION CAMPAIGN FINANCE REFORM The next order of business to come before the House State Affairs Committee was HB 368 and HB 317. Number 0150 REPRESENTATIVE FINKELSTEIN referred the committee members to the committee substitute 9-LS1260/F. He said the committee substitute attempted to incorporate the recommendations of the House State Affairs Committee, the Alaska Public Offices Commission (APOC), Senators, and public comments. He said there were 30 amendments to the initiative and HB 368. The initiative remained substantially the same, however. He stated the amendments strengthened, broadened or liberalized the provisions and were in the best interest of public policy. Number 0257 REPRESENTATIVE PORTER wondered if Representative Finkelstein conferred with Mike Frank, Chair, Campaign Finance Reform Now, and asked if he shared the same conclusion? Number 0276 REPRESENTATIVE FINKELSTEIN said Mr. Frank had been involved. He would not say if it was or was not substantially the same because it was beyond his ability. He said Mr. Frank was concerned about the final product. The subject areas addressed were appropriate for the legislature to consider and were reasonable public policy debates. He said Mr. Frank was aware of the amendments and suggested including him at the next hearing. Number 0365 REPRESENTATIVE PORTER said he was not asking for a legal opinion, if it was substantially the same. He wondered if Mr. Frank would advertise against the committee substitute as written. Number 0390 REPRESENTATIVE FINKELSTEIN suggested asking Mr. Frank directly. He further said Mr. Frank was comfortable with the approach represented in the committee substitute. He reiterated the amendments were reasonable areas for debate. Number 0432 CHAIR JAMES said she was concerned about "clamping-down" so far that only those with their own money could participate. She said the best way to deal directly with this issue was to make sure the public knew about the APOC reporting requirements. CHAIR JAMES asked Representative Finkelstein to explain the amendments. Number 0561 REPRESENTATIVE FINKELSTEIN explained Amendment 1 deleted the indexing only of contribution limits. He called it a technical amendment. REPRESENTATIVE FINKELSTEIN explained Amendment 2 was a technical correction to clarify the registration of a contribution. He said it was not the intent of the initiative to require an individual toregister before making a contribution. He called it an odd section and said it should have been drafted better. He further explained it was a change to current law. REPRESENTATIVE FINKELSTEIN explained Amendment 3 returned the contribution limit back to $100 as written in the existing law. REPRESENTATIVE FINKELSTEIN explained Amendment 4 adopted the approach of the legislature for honorariums rather than the approach in the initiative. REPRESENTATIVE FINKELSTEIN explained Amendment 5 shortened the fund raising period in the beginning and increased it towards the end. The beginning period for a legislative race was June 1. The beginning period for a statewide race was January 1, and for all other races, five months before the date of the election. He said this area was controversial. The amendment strengthened the initiative. It was bound by constitutional limitations, however. A longer period as in the initiative was more likely to survive a constitutional challenge. He explained the amendment did not limit the funds raised, just the period of fund raising. He reiterated the issue was problematic due to past court cases. REPRESENTATIVE FINKELSTEIN explained Amendment 6 allowed contributions from out-of-state family members of up to $2,000 for a House race, $3,000 for a Senate race, and $20,000 for a statewide race. REPRESENTATIVE FINKELSTEIN explained Amendment 7 was a request by APOC to reduce paperwork. REPRESENTATIVE FINKELSTEIN explained Amendment 8 was a conforming amendment. REPRESENTATIVE FINKELSTEIN explained Amendment 9 allowed for the repayment of surplus contributions in approximate proportions. This was not allowed in the initiative. He said a carry forward was limited to $5,000 for a House race, $7,500 for a Senate race, and $50,000 for a statewide race. He further explained the amendment allowed some money to be put into an office fund. Disclosure would be necessary to meet certain standards to ensure it was not used for personal use, however. REPRESENTATIVE FINKELSTEIN explained Amendment 10 simplified the initiative. The initiative applied aggravating and mitigating criminal factors, and state of mind, for APOC to apply certain penalties. The amendment included the higher maximums when acted knowingly. Furthermore, he said APOC knew how to determine the difference between an intentional and an accidental late filing action. REPRESENTATIVE FINKELSTEIN explained Amendment 11 inserted the definition of a political party. He said it was a clarification based on complaints from the Libertarian Party. The Party was concerned it would be considered a group rather than a party. The definition was expanded to include 3 percent of the votes in the past five governor elections. The definition, if adopted, would increase the official parties to five. They were: the Green, Libertarian, Democratic, Republican and AIP Parties. REPRESENTATIVE FINKELSTEIN explained Amendment 12 was based on discussions to reduce the penalties. The initiative included a felony penalty for intentional violations. The amendment changed it to a misdemeanor. Number 1102 REPRESENTATIVE PORTER asked if the expansion of the political party definition in Amendment 11 brought in any more political parties besides the Libertarian Party? Number 1140 REPRESENTATIVE FINKELSTEIN replied he did not remember any more. He reiterated the amendment was based on a complaint from the Libertarian Party. Number 1152 CHAIR JAMES commented if there were any more parties out there, they probably were not a threat to campaign finance reform. Number 1160 REPRESENTATIVE FINKELSTEIN replied Amendment 11 was a reasonable compromise. He did believe, however, that at some time a party did become a group. REPRESENTATIVE FINKELSTEIN moving forward explained Amendment 13 removed the 24 hour reporting requirement for expenditures from law. Currently, the Commission did not require it, and the bill, he said, did not want to interfere with the reporting concepts. This was based on a recommendation from APOC. REPRESENTATIVE FINKELSTEIN explained Amendment 14 removed the requirement for a group to report a contribution worth over $250. This was based on a recommendation from APOC. REPRESENTATIVE FINKELSTEIN explained Amendment 15 was a conforming amendment to a Supreme Court decision. The amendment set the limit at $250 for an individual to use expenditures to advertise in a newspaper, for example. REPRESENTATIVE FINKELSTEIN explained Amendment 16 attempted to define a public funded entity to mean, a state, a political subdivision, and a state-funded agency. This was based on a recommendation from Jack Chenoweth, Attorney, Legislative Legal and Research Services. REPRESENTATIVE FINKELSTEIN explained Amendment 17 deleted "one- half" and inserted "one-third" of expenditures in support or in opposition to a candidate, was needed to include the name of the candidate as part of the name of the group. This was based on a recommendation from APOC. REPRESENTATIVE FINKELSTEIN explained Amendment 18 allowed political parties and their subdivisions to pass money among themselves. This was not allowed in the initiative because they organized as separate groups, whereas, the amendment viewed them as interconnected. Number 1446 REPRESENTATIVE PORTER asked, if Amendment 18 were adopted, could anyone who described himself as a subgroup, be treated as part of the party? Number 1469 REPRESENTATIVE FINKELSTEIN replied, "no." He explained the definition or status of a subgroup derived from the party. REPRESENTATIVE PORTER asked where was that explained in the bill? Number 1532 JACK CHENOWETH, Attorney, Legislative Legal Counsel, Legislative Legal and Research Services, Legislative Affairs Agency, referred the committee members to page 24, lines 12 - 13, which read "to include a subordinate unit of the organized group of voters qualifying a political party." He said the initiative did not address the relationship between the main party and subordinates. The amendment, therefore, clarified the relationship between the two. Number 1605 REPRESENTATIVE PORTER asked what the individual subordinate units could do to raise their own funds, and to distribute their own funds to candidates. He wondered if the contribution limit of $10,000 was treated individually or cumulatively. Number 1667 MR. CHENOWETH asked Representative Porter if the groups were treated as a subordinate unit? REPRESENTATIVE PORTER replied some were and some were not. Number 1658 REPRESENTATIVE FINKELSTEIN replied, if the party claimed them as a subordinate unit, it would fit under the party limits. REPRESENTATIVE PORTER wondered where that was addressed in the bill. Number 1667 MR. CHENOWETH replied, it was not addressed in the bill. Language would be needed to clarify that issue. REPRESENTATIVE FINKELSTEIN suggested it could be clarified on page 24, line 12, to read, "to include a subordinate unit as determined by the qualifying party." Number 1689 REPRESENTATIVE PORTER commented the bill should say what we mean. Number 1697 REPRESENTATIVE FINKELSTEIN replied, in defense of the language, the party itself would answer the question, if a subordinate unit was part of the party. Number 1729 CHAIR JAMES said the bottom line was the contribution. The contributions would need to be tallied from all the subdivisions to determine they did not go over the maximum. Furthermore, she was concerned it would leave groups out of the decision making process. Number 1835 REPRESENTATIVE PORTER asked how a party determined if a subgroup was officially part of the party? He also asked if a subgroup that was part of the party could give an additional $10,000? He lastly asked if the subgroup was a group could it give an additional $250? Number 1870 REPRESENTATIVE FINKELSTEIN replied he would suggest an amendment to resolve this issue so that the parent party would decide who became part of the party. Number 1887 CHAIR JAMES said the District 34 Republicans were considered a subdivision because the chair was elected and a member of the statewide central committee. The Lincoln Society, on the other hand, was an affiliate. The Lincoln Society was a fund raising group only. She called the Lincoln Society a group and said it was limited to the provisions under a group in the initiative and the bill. Number 1968 REPRESENTATIVE PORTER asked if the committee substitute raised the limits on groups also? Number 1975 REPRESENTATIVE FINKELSTEIN replied, it returned the limits to the existing law, $1,000. He further said the committee substitute addressed the issue of subordinates fitting under the overall limits. Furthermore, a group could decide to organize as a group or a party under the current law, the initiative and the bills. Therefore, the Lincoln Society had a choice to be a group or a party. Right now it was treated as a subgroup of the party according to APOC. He said most groups would chose to remain part of the party due to the $10,000 limit for a House race, $15,000 for a Senate race, and $200,000 for a statewide race. He said there were very few races where the limits had been reached in the past. He reiterated the choice could not be controlled, however. Number 2059 REPRESENTATIVE PORTER asked where it was addressed in the bill? REPRESENTATIVE FINKELSTEIN replied page 24, lines 12 - 13. The language addressed the total limit under the party. Number 2084 CHAIR JAMES replied the Lincoln Society was not part of the party in her opinion because it was a select group of people who chose to be a society, whereas the party itself was elected by the people. Number 2097 REPRESENTATIVE FINKELSTEIN replied, "right," because the Republican Party accepted them and allowed them to operate as a party subdivision now. The choice would be the same under the initiative. Number 2111 CHAIR JAMES suggested further discussion with the Democratic and Republican Parties was needed. REPRESENTATIVE FINKELSTEIN said the parties did not like a limit on any contribution amount. Number 2134 CHAIR JAMES said all contributions should come directly from the parties for grass root politics and support. She said a limit should be left to special interests and individuals and not to the parties. Number 2211 REPRESENTATIVE FINKELSTEIN said the committee substitute tried to raise the limits. CHAIR JAMES replied the limits were fine. She said she was opposed to the idea of limiting. Number 2258 REPRESENTATIVE FINKELSTEIN responded limits were included because of the fear of laundering money through the party. He said the parties would do great under the proposed system because the bulk of the $500 to $1,000 contributions would probably go to the party due to the restrictions on individual contributions. Therefore, the total amount of money would probably decrease, but the amount of money going to the parties would probably increase. Number 2300 REPRESENTATIVE PORTER asked Representative Finkelstein what the bill did again to the contribution limits? REPRESENTATIVE FINKELSTEIN said he would answer that question as he explained the amendments further. Number 2318 REPRESENTATIVE FINKELSTEIN moving forward explained Amendment 19 fixed a technical mistake. REPRESENTATIVE FINKELSTEIN explained Amendment 20 conformed to a previous provision related to a Supreme Court decision. REPRESENTATIVE FINKELSTEIN explained Amendment 21 changed the effective date to January 1, 1997. REPRESENTATIVE FINKELSTEIN explained Amendment 22 incorporated provisions from the charitable gaming bill recently passed in the House of Representatives, excluding the raffle provision. REPRESENTATIVE FINKELSTEIN explained Amendment 23 allowed out-of- state contributions of up to $2,000 for a House race, $3,000 for a Senate race, and $20,000 for a statewide race. REPRESENTATIVE FINKELSTEIN explained Amendment 24 increased the maximum contribution limit from a party to a candidate to $10,000 for a House race, and $15,000 for a Senate race. Number 2390 REPRESENTATIVE PORTER asked if Amendment 23 included individual contributions? REPRESENTATIVE FINKELSTEIN replied Amendment 23 allowed contributions from individuals from out-of-state. CHAIR JAMES explained it was the cumulative amount. REPRESENTATIVE FINKELSTEIN moving forward explained Amendment 25 increased the contribution amount from a group to a candidate from "$500" to "$1,000." A return to current law. REPRESENTATIVE FINKELSTEIN explained Amendment 26 set the maximum contribution limit at $1,000 from a group to another group. This was not allowed under the initiative. REPRESENTATIVE FINKELSTEIN explained Amendment 27 allowed the governor and lieutenant governor to raise money during the legislative session immediately prior to an election. REPRESENTATIVE FINKELSTEIN explained Amendment 28 included a delay of 60 days before going to court for a citizen suit after a complaint was filed with APOC. This was to eliminate last minute publicity. TAPE 96-29, SIDE B Number 0000 REPRESENTATIVE FINKELSTEIN explained Amendment 29 expanded the exemption for small campaigns to apply to municipal races. The approach was expanded to $2,500 for both contributions and expenditures in an attempt to reduce paperwork. REPRESENTATIVE FINKELSTEIN explained Amendment 30 attempted to reduce the conflicts if the bill and the initiative were both passed. This, was only an issue, however, if they were substantially different. Number 0093 CHAIR JAMES said HB 368 and HB 317 were scheduled again for Saturday, March 9, 1996. She asked what was the will of the committee members. She commented the next committee of referral was the House Judiciary Committee. Number 0116 REPRESENTATIVE PORTER asked what was the progress of SB 191? He stated he was concerned about the time remaining, and suggested a push for Saturday. CHAIR JAMES asked the committee members to study the committee substitute carefully before the next hearing. Number 0143 REPRESENTATIVE PORTER asked what the limits were for individuals and groups? He said a group was defined as a political action committee (PAC). He commented only individuals could give to PACs and only individuals and PACs could give to parties. He asked again what were the limitations on giving to a party? REPRESENTATIVE FINKELSTEIN replied, the contribution limits were $5,000 from an individual and $1,000 from a group. Under the initiative, however, it was $5,000 from an individual and $0 from anybody else. REPRESENTATIVE PORTER said an individual could give $5,000 to a party. He further asked how much an individual could give to a PAC? REPRESENTATIVE FINKELSTEIN replied $250. REPRESENTATIVE PORTER said a PAC could give $1,000 to a party. REPRESENTATIVE FINKELSTEIN replied a PAC could give $1,000 to a candidate. He said he did not like the word "PAC" because it had a federal definition that was not being followed. For this reason he preferred the word "group" instead. REPRESENTATIVE PORTER said the public understood the word "PAC" better than the word "group." A group could be viewed as the local Parent Teacher Association (PTA). Number 0235 REPRESENTATIVE FINKELSTEIN said it was a loaded word and was viewed negatively. Number 0255 CHAIR JAMES replied she did not like them as PACs or as groups, but understood the Supreme Court decision that allowed them. REPRESENTATIVE FINKELSTEIN said it was a technicality. Number 0258 REPRESENTATIVE ROBINSON suggested a comparison of the provisions for the next hearing of the current law, the initiative, and the committee substitute. REPRESENTATIVE FINKELSTEIN said he could provide that for the next hearing on Saturday, March 9, 1996. Number 0285 REPRESENTATIVE OGAN asked if the committee substitute had been adopted for consideration. CHAIR JAMES replied, "no." She said it would be adopted on Saturday when there was a full committee present. Number 0292 ADJOURNMENT CHAIR JAMES adjourned the House State Affairs Committee meeting at 10:45 a.m.
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