Legislature(2005 - 2006)CAPITOL 106
01/20/2005 08:00 AM House STATE AFFAIRS
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| Department of Administration, Alaska Public Offices Commission | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
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ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
January 20, 2005
8:01 a.m.
MEMBERS PRESENT
Representative Paul Seaton, Chair
Representative Jim Elkins
Representative Carl Gatto
Representative Bob Lynn
Representative Jay Ramras
Representative Berta Gardner
Representative Max Gruenberg
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
OVERVIEW(S): DEPARTMENT OF ADMINISTRATION, ALASKA PUBLIC OFFICES
COMMISSION (APOC)
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
BROOKE MILES, Executive Director
Alaska Public Offices Commission (APOC)
Department of Administration
Juneau, Alaska
POSITION STATEMENT: Presented an overview of APOC.
ACTION NARRATIVE
CHAIR PAUL SEATON called the House State Affairs Standing
Committee meeting to order at 8:01:55 AM. Representatives
Elkins, Gatto, Ramras, Gardner, and Seaton were present at the
call to order. Representatives Lynn and Gruenberg arrived as
the meeting was in progress.
^OVERVIEW(S)
^DEPARTMENT OF ADMINISTRATION, ALASKA PUBLIC OFFICES COMMISSION
8:02:59 AM
CHAIR SEATON announced that the only order of business was the
overview regarding the Alaska Public Offices Commission (APOC).
8:03:29 AM
BROOKE MILES, Executive Director, Alaska Public Offices
Commission (APOC), said she thinks the agency is unique, because
the legislature interacts with it. She said she would provide a
brief overview, including a history of APOC and summary of the
activities during the calendar year 2004.
8:05:02 AM
CHAIR SEATON asked Ms. Miles to address the computer recording
system that candidates use to record their campaign funds. He
asked if APOC has plans to change the system and make it more
user friendly.
[Chair Seaton turned the gavel over to Acting Chair Gatto.]
8:06:26 AM
MS. MILES responded that the action of the legislature last year
in removing the ability of the commission to mandate electronic
filing, compounded with the loss of $100,000 and a loss of 20
percent of the staff, was a blow to her and to the agency.
However, because of problems with the old system, the agency did
receive funding for a new system. She said the old electronic
filing system (ELF) is almost obsolete.
8:07:53 AM
MS. MILES told the committee that the new system is web-based,
and she emphasized that it is user friendly. She stated her
belief that the system is a lot better. She offered examples.
8:09:15 AM
CHAIR SEATON suggested the House State Affairs Standing
Committee would be willing to test the new system.
8:10:19 AM
REPRESENTATIVE LYNN said he supports electronic filing. He said
his own personal checking account allows him to bank online. He
suggested that candidates have an online bank account in which
they could deposit contributions, and he stressed the importance
of having a password to use for such accounts.
8:12:33 AM
MS. MILES said she thinks continual, real-time reporting is
something that may evolve from electronic filing, and the
commission would support that idea.
8:13:23 AM
REPRESENTATIVE GATTO mentioned TurboTax and Quicken [computer
software]. He related two instances where a bank made a
mistake. He requested that APOC get something that is so
intuitive that it won't let a person continue if he/she has made
a mistake. He mentioned a "dichotomous key" - a system that
creates questions with easy answers.
8:17:15 AM
MS. MILES indicated that the new system will allow a person to
use Quicken, or other software programs. Returning to
Representative Lynn's comments about passwords, she said people
will be able to read the new system on the Internet without a
password, but those [candidates] filing will have protected
space behind a firewall.
8:19:21 AM
MS. MILES said the APOC is a quasi-judicial regulatory agency
responsible for administering the following four disclosure
laws: AS 15.13 - the campaign disclosure law; AS 24.45 - the
regulation of lobbying law; AS 39.50 - the public official
disclosure law; and AS 24.60.200 - the section of the
legislative ethics law which requires annual financial
disclosure by legislators and legislative directors. Ms. Miles
offered details regarding each law.
8:21:22 AM
REPRESENTATIVE GRUENBERG noted that administrative law judges
were created last year. He asked if they are required to file.
8:21:56 AM
MS. MILES answered no, because the enabling legislation did not
include that requirement. In response to a follow-up question,
she said she believes that the function of the individual who
acts as the chief administrator law judge should be required to
report. In regard to the other judges, she said she has no
opinion as to whether or not they should be required to file,
although she said there would be little harm in it. With
respect to people employed by the State of Alaska, she said
their sources of income and indebtedness are generally
straightforward. She noted that all of the investment officers
who work at the Department of Revenue file the statements.
8:23:38 AM
REPRESENTATIVE GRUENBERG mentioned blind trusts. He asked Ms.
Miles if she has any feeling as to whether the blind trust
statutes and other related statutes need to be reworked.
MS. MILES said she doesn't know, but would look into it.
8:24:28 AM
MS. MILES, in response to a request for clarification from
Representative Gatto, confirmed that she administers the law and
her opinions about who should be checked and who shouldn't are
"no different than the opinion of any citizen."
8:24:47 AM
MS. MILES noted that AS 24.60 has basically the same
requirements as AS 39.50, except that legislators must report
their gift activity to the legislative ethics committee.
Financial disclosure is required from elected municipal
officials in more municipalities than do campaign disclosures.
8:26:31 AM
MS. MILES, in response to a question from Representative Gatto,
said the lobbying law would allow a lobbyist to give a gift to a
public official, but it requires that gift be reported. She
stated her belief that most of the laws would say that gifts of
transportation are gifts, but may vary regarding when a gift
must be limited or reported.
8:28:49 AM
MS. MILES, in response to a question from Representative
Gruenberg, said there is always coordination between herself and
the coordinator of the Legislative Ethics Committee and they are
happy to compare what's not working and take suggestions on how
to make the two laws more synonymous.
8:30:44 AM
MS. MILES said the agency is always looking for ways to
streamline the filing process. When a report is substantially
complete, the staff will not audit someone. If a complaint was
filed over missing information, Ms. Miles explained, APOC would
do its best to get the missing information from the filer.
8:33:55 AM
MS. MILES stated that all of the reports filed with APOC and the
financial disclosures from municipalities that are housed with
municipal clerks are public record. The staff of APOC spends
considerable time making reports available to the public.
8:34:40 AM
MS. MILES turned to the history of APOC. She said the result of
the occurrence of Watergate in the 1970s was that concerned
citizens nationwide sought laws to make politicians more
accountable. In 1974, two citizen petitions were scheduled for
the ballot: one regarding campaign finance and the other
regarding campaign disclosure, which was then called conflict of
interest. In 1974, the Alaska State Legislature enacted a law
that was later found by the Alaska Supreme Court to be similar
to the citizens' petition regarding campaign finance, and the
legislation became law. However, no law similar to the
financial disclosure initiative was passed, thus that initiative
became law through the public process.
8:35:43 AM
MS. MILES noted that Alaska's lobbying law dates back to
territorial days; the Alaska State Constitution requires that
the lobbying activities be regulated and assigns that
responsibility to the legislature. In 1976, the legislature
tuned up the lobbying law and gave the responsibility for it to
APOC.
8:36:23 AM
MS. MILES said the mission of APOC is to encourage citizens'
confidence in their appointed and elected public officials, by
administering and enforcing the disclosure laws and the rules of
conducting campaign activities, and by filing the annual
financial disclosure statement.
8:37:02 AM
MS. MILES mentioned a landmark case called, Buckley v. Valejo,
which threw out the whole idea of spending limits by finding in
the U.S. Supreme Court that limiting the ability of a candidate
to spend money on his/her campaign is a violation of the First
Amendment. Ms. Miles said there still are contribution limits.
In 1996, there was a campaign finance reform, which took out
business and corporate interests from giving to state
candidates. It also removed the ability of lobbyists to give to
legislative candidates outside of the district in which the
lobbyist is registered to vote.
8:38:59 AM
MS. MILES offered her understanding that APOC is the only state
agency created as a result of the public. By law, the
commission is within the Department of Administration; however,
APOC regulates the governor when he is a candidate. She said
APOC has its own voice when speaking with the media on subjects
relating to the laws that it administers.
8:40:48 AM
MS. MILES mentioned the names and specialties of several of her
staff members and commission members. The staff administers the
law, but only the commission can set policy, grant a waiver or a
reduction in a civil penalty, or make the ultimate decision in
advisory opinion and the final decision with respect to
complaints.
8:42:42 AM
MS. MILES stated that APOC has just filed regulations with the
lieutenant governor that are - for the most part -
noncontroversial and conforming. The new regulations were put
in place to make the new complaint process work. She noted that
during the 2004 election, seven administrative complaints were
filed. She said there is a short timeline requiring that
complaints be concluded within 60-75 days. She said this was
difficult with the loss of an investigator, but worked well all
the same.
8:44:22 AM
MS. MILES noted that the last two complaints are being
continued, because legislators are involved. Legislators are
subject to immunity; however, an attorney general said that a
legislator cannot waive his/her own legislative immunity in
matters of civil process.
8:44:53 AM
REPRESENTATIVE GARDNER said she has always been impressed with
APOC.
8:45:27 AM
ACTING CHAIR GATTO noted that it's easy for a person to file a
complaint without having to back it up, which often results in
attention from the press, even when it turns out that the
complaint was unwarranted. He asked if there is any way to
address the problem.
MS. MILES said she isn't sure how to handle that, because there
is a risk - especially during campaigning time - of
disenfranchising the public by not accepting complaints.
8:48:29 AM
MS. MILES, in response to a question from Representative Elkins,
said it's a coincidence that many of the people on the board of
the commission happen to be attorneys.
8:48:36 AM
REPRESENTATIVE GRUENBERG said the filing of frivolous lawsuits
has been a problem that the courts have dealt with for a long
time. He offered his understanding that there are two remedies:
abuse of process and malicious prosecution, the latter of which
requires a non-meritorious litigation pursued for malicious
purposes. He asked what Ms. Miles thinks about having such a
remedy in place for APOC.
8:49:39 AM
MS. MILES said she hasn't given the matter much thought, but
something like that may be helpful. In response to a follow-up
question, she said she would send a copy of the previously
mentioned remarks of the attorney general. She confirmed that
those remarks are constitutionally based.
8:51:16 AM
MS. MILES, in response to a question from Representative
Gruenberg, said she doesn't think APOC feels undue influence
from the [Department of Administration]. She said that before
1979, APOC was in the governor's office. She stated that APOC
works with the Department of Law. The Department of Law is also
the attorney for the executive branch. Ms. Miles said if there
were an instance when APOC couldn't use its counsel, it could
request independent counsel.
8:54:10 AM
MS. MILES, in response to questions from Acting Chair Gatto,
said when a person testifies in public and says who he/she works
for, that testimony is "in sunlight." Conversely, when
lobbyists wine and dine public decision makers, that is not in
the open. She said there is a limit of 40 hours in a lobbying
law. She mentioned a limit of 4 hours that was judged as too
short a time.
8:57:33 AM
MS. MILES answered a series of questions from Acting Chair
Gatto, regarding the use of [Public Office Expense Term (POET)
account] and non-POET [account] campaign funds. She indicated
that there are grey areas. She said APOC doesn't always have an
answer, and she recommended that the candidate always consider
whether his/her spending will be looked at in a negative light.
Due to technical difficulties, the committee took an at-ease
from 9:03 a.m. to 9:07 a.m.
9:08:33 AM
MS. MILES answered a question from Representative Gruenberg
regarding surplus payments or deposits that are not paid back
until later.
9:09:05 AM
REPRESENTATIVE RAMRAS said he was struck by hearing APOC's
mission statement. He asked Ms. Miles if she is familiar with
HB 21, which he said is coined, "the liars' bill."
9:10:14 AM
MS. MILES said she is familiar with HB 21 and, although the
commission has not discussed it, they would agree that people
who are conducting campaigns should be telling the truth. She
said, "To us, it's an enforcement quandary." She stated that
truth in advertising is a great idea. She noted that the finer
point is to ask how much of the truth is the truth.
9:12:04 AM
REPRESENTATIVE RAMRAS said sometimes airwaves are littered with
horrible things. He asked if it would be possible for APOC to
handle these issues of outright falsehoods in an expedited
fashion.
9:13:24 AM
MS. MILES responded that the commission can issue a cease and
desist order, which would work if the person giving to the
candidate was breaking the law in some way. However, she said
the commission wouldn't have the ability to "do that just on the
fact of it being untrue."
9:14:39 AM
ACTING CHAIR GATTO talked about the fine line between
ascertaining what is true and what is not. He offered examples.
9:16:19 AM
MS. MILES, in response to questions from Representative
Gruenberg, noted that four of her board members could act as
administrative law judges. She said anybody who is dissatisfied
with a decision by APOC can go to the courts.
9:17:40 AM
MS. MILES answered another question from Acting Chair Gatto
regarding the use of campaign surplus funds and office accounts.
9:18:34 AM
MS. MILES said the big question is whether an action abides
within the guidelines of the law. She noted that many
legislators in both bodies are dealing with surplus funds in
their accounts.
9:20:10 AM
MS. MILES explained that if a legislator has surplus campaign
funds, he/she can put $5,000 per term of office into the POET
account. She offered a brief history of the use of the reserve
account and the POET account.
9:23:43 AM
ACTING CHAIR GATTO asked further questions regarding money left
in various accounts. He talked about not wanting to violate the
law but wanting to use the money.
9:24:54 AM
MS. MILES told of a person who used POET account money to pay
home bills, and the commission's decision that that was in
violation of the law.
9:26:27 AM
MS. MILES offered an example of a case where a complaint was
filed. She suggested that one question to ask is, "How would a
contributor want money spent?"
9:28:08 AM
MS. MILES, in response to a question from Representative Ramras,
said APOC can enforce civil penalties and file complaints. When
a complaint is adjudicated, the commission can assess civil
penalties. If the violation is substantial, the commission can
hand it over to the Department of Law.
9:30:15 AM
MS. MILES, in response to a question from Acting Chair Gatto,
said a candidate cannot accept contributions for a future
campaign until "18 months out." She addressed what could be
considered campaigning.
9:31:35 AM
MS. MILES, in response to a question from Representative Elkins,
said APOC does not go public with violations. She talked about
the benefit of the open public process. In response to
questions from Representative Elkins and Acting Chair Gatto
regarding a particular case, she explained how the media found
out about it.
[Acting Chair Gatto turned the gavel back over to Chair Seaton.]
9:34:55 AM
CHAIR SEATON thanked Ms. Miles and said that, judging by the
type of bills introduced to the House, the committee would be
seeing much more of her.
ADJOURNMENT
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at
9:35:23 AM.
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