Legislature(2013 - 2014)Anch Temporary LIO

10/28/2014 08:30 AM Senate SELECT COMMITTEE ON LEGISLATIVE ETHICS

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08:40:11 AM Start
09:53:38 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Location: 733 West 4th, Main Floor Conf. Rm.
Full Committee - 8:30am - 10:30am
+ Welcome New Administrator - Jerry Anderson TELECONFERENCED
+ Public Comments TELECONFERENCED
+ Chair/Staff Report TELECONFERENCED
+ -Informal Advice Staff Report TELECONFERENCED
+ -Ethics Disclosures TELECONFERENCED
+ -Public Member & Legislator Terms for 2015 TELECONFERENCED
+ -Ethics Training 2015 TELECONFERENCED
+ -COGEL December 2014 Conference TELECONFERENCED
+ -Anchorage LIO Renovation Update TELECONFERENCED
+ Budget TELECONFERENCED
+ Contract Subcommittee Report TELECONFERENCED
+ Discussion: 2015 Statutory Changes TELECONFERENCED
EXECUTIVE SESSION
+ Public Session TELECONFERENCED
+ Other Business TELECONFERENCED
                  ALASKA STATE LEGISLATURE                                                                                    
           SELECT COMMITTEE ON LEGISLATIVE ETHICS                                                                             
                                                                                                                              
                MINUTES from October 28, 2014                                                                                 
                   FULL COMMITTEE MEETING                                                                                     
             ANCHORAGE LIO, Conference Room 105                                                                               
                                                                                                                                
                                                                                                                                
1. CALL THE MEETING TO ORDER: 8:40:11 AM Committee Chair Gary                                                               
   Turner  called the meeting  to order  at 8:40 a.m.  Members                                                                  
   present:  Senator  Cathy Giessel,  Senator  Berta  Gardner,                                                                  
   Representative  Andy  Josephson,  Representative   Charisse                                                                  
   Millett,  Janie   Leask,  H.  Conner  Thomas,   Chair  Gary                                                                  
   Turner;   Staff    present:   Joyce   Anderson    Committee                                                                  
   Consultant,    Ethics   Administrator    Jerry    Anderson;                                                                  
   Teleconference:  Dan  Wayne,   LAA  Legal;  Absent:  Dennis                                                                  
   "Skip" Cook and Herman G. Walker, Jr.                                                                                        
                                                                                                                                
2. APPROVAL OF AGENDA: 8:41:21 AM There were no changes made                                                                
   to  the agenda;  Senator Gardner  motioned  to approve.  No                                                                  
   Objection.  Motion passes.                                                                                                   
                                                                                                                                
   Chair  Turner  welcomed  new  Ethics   Administrator  Jerry                                                                  
   Anderson and introduced him to the floor.                                                                                    
                                                                                                                                
   8:42:13 AM Mr. Anderson  provided  members  his  background                                                                
   stating  that he's been  an attorney  for 25 years  and has                                                                  
   been  in public  and private  practice  and experienced  in                                                                  
   both  civil   and  criminal.  He  stated  that   he  was  a                                                                  
   magistrate  in Galena and  Kenai for  five years, prior  to                                                                  
   working  for  APOC  (Alaska  Public  Offices   Commission),                                                                  
   where  he  was  an  Assistant  Director  for  five  years--                                                                  
   almost  six--before  coming  here. He  stated  that he  was                                                                  
   pleased   to  be  onboard  and   is  appreciative   of  Ms.                                                                  
   Anderson's  organized training.  Members verbally  welcomed                                                                  
   him to the committee.                                                                                                        
                                                                                                                                
Representative Charisse Millett joins meeting.                                                                                  
                                                                                                                                
3. APPROVAL OF MINUTES: 8:43:23 AM                                                                                          
   a. October 28, 2013 Full Committee - Chair Turner noted                                                                    
      that Metlakatla was misspelled; motion to approve the                                                                     
      minutes with spelling correction. No objection. Motion                                                                    
      passed.                                                                                                                   
   b. January 23, 2014 Full Committee - Senator Gardner                                                                       
     motioned to approve. No objections. Motion passed.                                                                         
   c. May 29, 2014  Full Committee - Member Leask  motioned to                                                                
      approve. No objections. Motion passed.                                                                                    
   d. May 29, 2014 Senate Subcommittee - Member Thomas                                                                        
     motioned to approve. No objections. Motion passed.                                                                         
   e. May 29, 2014 House Subcommittee - Member Leask                                                                          
     motioned to approve. No objections. Motion passed.                                                                       
   f. June 19, 2014 Full Committee - Representative Millett                                                                   
     motioned to approve. No objections. Motion passed.                                                                       
   g. September 25, 2014 Full Committee - Member Thomas                                                                       
      stated that he attended this meeting but the minutes                                                                      
      do not reflect this. Senator Gardner motioned to                                                                          
      approve with correction. No objections. Motion passes.                                                                  
                                                                                                                                
8:46:31 AM                                                                                                                    
                                                                                                                                
4. PUBLIC COMMENT: None.                                                                                                    
                                                                                                                                
8:48:02 AM                                                                                                                    
                                                                                                                                
5. CHAIR/STAFF REPORT                                                                                                         
   a. Informal Advice - Ms. Anderson reported that members                                                                    
      should have received June's staff reports, the July 1-                                                                    
      11 staff  report,  and  September's  staff  report.  The                                                                  
      staff entries  with initials  RD  are Reggie  Drummond's                                                                  
      informal   advice   entries.   Ms.   Anderson   provided                                                                  
      comments   to  some   of   entries   for   clarification                                                                  
      purposes.  Staff reports  for  July  12-31 and  for  the                                                                  
      month of August will  follow later. These  were prepared                                                                  
      by  Reggie  Drummond  and  are  being  reviewed  by  Ms.                                                                  
      Anderson.                                                                                                                 
                                                                                                                              
   b. Ethics Disclosures - A report of late disclosures was                                                                   
      provided  in the  committee  packet. Ms.  Anderson  also                                                                  
      referred members to  the report in the committee  packet                                                                  
      reflecting  the number  and  type of  disclosures  filed                                                                  
      from January - September 30, 2014.                                                                                        
                                                                                                                                
     Representative Josephson 8:50:15 AM asked Ms. Anderson                                                                 
      the most common reason  for receiving late  disclosures.                                                                  
      Ms. Anderson  replied  that  in  regards to  filers  who                                                                  
      file late "Gift of  Travel/Hospitality" disclosures  the                                                                  
      reason  is   usually  because   the  person  forgot   or                                                                  
      sometimes a  late filing  is due to  staff change  over,                                                                  
      versus waiting for information from the donor.                                                                            
                                                                                                                              
   c. Committee Member Vacancies for 2015 - 8:52:16 AM                                                                    
     Ms.  Anderson announced  that two  public members'  terms                                                                  
     will  be  expiring  in  January  of  2015--Dennis  "Skip"                                                                  
     Cook and  Herman G. Walker,  Jr. Members Cook  and Walker                                                                  
     have  been notified  but  neither has  indicated  whether                                                                  
     or  not  he will  re-submit  his  name to  Chief  Justice                                                                  
     Dana  Fabe  for  reconsideration  of  another  term.  Ms.                                                                  
     Anderson  proceeded  to provide  members  the  procedures                                                                  
     of   the  nomination   process  for   vacancies  on   the                                                                  
     committee.  A letter  will be sent  to the Chief  Justice                                                                  
     notifying  her  of  the  two  terms  that  are  expiring.                                                                  
     Chief  Justice Dana  Fabe will not  appoint anyone  until                                                                  
     after session  has begun. If  the Chief Justice  provides                                                                  
     the names  prior to session,  the member will  only serve                                                                  
     for  the first  30 days  of the  legislative session.  If                                                                  
     the  names   are  provided  after  session   starts,  the                                                                  
     members   will   serve  until   a  successor   has   been                                                                  
     appointed.  Additionally,  Ms.  Anderson  stated that  by                                                                  
     November  1, 2014, the  committee will  be sending  out a                                                                  
     notice  announcing the two  vacancies. It will  be posted                                                                  
     on  our  website,  in  our newsletter,  and  be  sent  to                                                                  
     legislators,  as  well  as  all  of  the  LIOs.  The  two                                                                  
     members  with  expiring  terms  need to  be  approved  by                                                                  
     two-thirds   vote   of  the   full  senate   and   house.                                                                  
     Leadership  involved in the  process has been  contacted.                                                                  
     Ms.  Anderson also  stated the terms  of the  legislators                                                                  
     who are  currently serving  on the Ethics Committee  will                                                                  
     expires  the first day of  session. The Ethics  Committee                                                                  
     has  recommended  that   the  House  and  Senate  approve                                                                  
     appointments  to  the  committee  on  the  first  day  of                                                                  
     session,  as the Ethics  Committee  is scheduled  to meet                                                                  
     on the  second day of session.  The floor was  opened for                                                                  
     questions. No questions.                                                                                                   
                                                                                                                                
   d. Ethics Training 2015 8:55:52 AM                                                                                       
     Ms. Anderson  stated 2015 ethics  training would  be held                                                                  
     at  Centennial  Hall due  to  construction  of the  Terry                                                                  
     Miller  Office Building. Training  begins on  January 13,                                                                  
     2015, for  agency staff and  other staff who do  not work                                                                  
     directly  for legislators. On  January 15, training  will                                                                  
     be   available   for   new   and   returning   staff   to                                                                  
     legislators.  Training for new  legislators will  be held                                                                  
     during  the week of orientation.  She and Jerry  Anderson                                                                  
     will  be conducting  the  training sessions.  There  will                                                                  
     be  "make-up" sessions  in the  Capitol on  the 22nd  and                                                                  
     23rd  as well as  a teleconference  training session  for                                                                  
     LIO staff  who are not in  Juneau in early February.  Ms.                                                                  
     Anderson  stated  that she  would primarily  conduct  the                                                                  
     training  for  "new"  legislators   with  Mr.  Anderson's                                                                  
     assistance.   The  training   for   new  legislators   is                                                                  
     personalized.   For  example,  the  backgrounds   of  new                                                                  
     legislators   will  be   reviewed  to   include  in   the                                                                  
     examples  presented; if  a new legislator  is serving  as                                                                  
     a  board  member  of  an  organization,   then  she  will                                                                  
     explain  how  that  legislator  is  required  to  file  a                                                                  
     "board   membership"  disclosure.   Mr.  Anderson   would                                                                  
     conduct training for staff and returning legislators.                                                                      
                                                                                                                                
     Mr.  Anderson  interjected  that  LIO training  was  also                                                                  
     coming  up on December  2, 2014. It  will be held  at the                                                                  
     Westmark  in Anchorage. Mr.  Anderson will speak  briefly                                                                  
     and provide a short overview of questions and answers.                                                                     
                                                                                                                                
     Senator  Gardner  asked  members  if  staff would  be  in                                                                  
     Juneau  early  enough for  training  on January  15.  Ms.                                                                  
     Anderson  replied  that  week  is  orientation  week  and                                                                  
     traditionally  staff  travel  to  Juneau  a  week  before                                                                  
     session starts.                                                                                                            
                                                                                                                                
     Member  Thomas and  Chair Turner asked  for more  details                                                                  
     on  the   Ethics  Committee   meeting  in  January.   Ms.                                                                  
     Anderson  stated it  is on  January 21,  and that  public                                                                  
     members  are asked  to arrive  early  to provide  support                                                                  
     and  input during  legislator training  and also  to meet                                                                  
     their   statutory   requirement   to   attend   training.                                                                  
     Members  may  arrive in  Juneau  Sunday night  or  Monday                                                                  
     morning.  There  will be  a  Full Committee  meeting  and                                                                  
     likely  a   Senate  Subcommittee  meeting   and  a  House                                                                  
     Subcommittee meeting.                                                                                                      
                                                                                                                                
   e. COGEL December 2014 Conference - 9:02:49 AM                                                                           
     A  handout  of  the  COGEL  conference  and  registration                                                                  
     form   was  distributed  to   committee  members.   Chair                                                                  
     Turner  stated  that the  conference  was  being held  in                                                                  
     Pittsburgh,   PA,   December   7-10.  Funds   have   been                                                                  
     allocated  or budgeted for up  to two or three  to attend                                                                  
     and   the   committee  formally   requests   that   Jerry                                                                  
     Anderson attend.                                                                                                           
                                                                                                                                
     Ms.  Anderson  added   that  if  anyone  else  wanted  to                                                                  
     attend,  s/he would  need to  act on it  asap. A  certain                                                                  
     number  of rooms  are  allocated for  the  event and  are                                                                  
     booked  early.  Several  members  of the  committee  have                                                                  
     attended  in the past and  found the conference  helpful.                                                                  
     Please  contact Ms. Leigh  of the  Ethics office  and she                                                                  
     will assist in the registration and reserving a room.                                                                      
                                                                                                                                
     The  Chair extended  the offer to  attend the  conference                                                                  
     to  Ms. Anderson.  Ms.  Anderson  stated  that she  would                                                                  
     think  it over. The  Chair thanked  Ms. Anderson  for her                                                                  
     consideration.                                                                                                             
                                                                                                                                
   f. Anchorage LIO Renovation Update  9:06:28 AM                                                                           
     Juli  Lucky was  introduced  by Chair  Turner to  provide                                                                  
     an   overview.  Ms.   Lucky  introduced   Andrew   Weiss,                                                                  
     Project  Architect of  KPB Architects  in Anchorage,  and                                                                  
     distributed a handout.                                                                                                     
                                                                                                                                
     Mr.  Weiss provided  an overview of  the project  stating                                                                  
     that  they began  less than  a year ago,  taking over  of                                                                  
     the Anchor  Pub, demolishing  it, and began building  the                                                                  
     new  tower. They  are  on schedule  to  be complete  mid-                                                                  
     December.  Target   date  for  the  office  furniture  is                                                                  
     December  15,  2014.  Occupancy of  building  will  occur                                                                  
     during the move to Juneau.                                                                                                 
                                                                                                                                
     Ms.  Lucky   interjected  that  the  furniture   for  the                                                                  
     Ethics   office   has  been   ordered   with  one   piece                                                                  
     outstanding,   which  is  a  privacy  panel.   Year-round                                                                  
     employees  should  be  moving  around  January  8  or  9,                                                                  
     depending  on how  long  it takes  to load  the vans  for                                                                  
     Juneau.                                                                                                                    
                                                                                                                                
     Mr.  Weiss stated  that there will  be some  coordination                                                                  
     with  the IT  Department. The  lights on  floors 2-6  are                                                                  
     lit  up  now, the  front  of  the building  is  a  little                                                                  
     behind  as far  as  the lighting  goes,  but stated  they                                                                  
     will catch  up and meet  our schedule. Mr. Weiss  offered                                                                  
     to provide tours to interested parties.                                                                                    
                                                                                                                                
     Ms.  Anderson interjected  that  she,  Mr. Anderson,  and                                                                  
     Ms.  Leigh  toured the  building  yesterday,  led by  Mr.                                                                  
     Kendell.                                                                                                                   
                                                                                                                                
     Member  Leask  asked Mr.  Weiss if  they  were on  budget                                                                  
     and  he replied  yes, they  were on budget  and on  time;                                                                  
     he  also stated  that often  times  when you  dig into  a                                                                  
     project  that's  been  around  for  a  while,  and  start                                                                  
     over,  there's  usually a  lot  of surprises  but  having                                                                  
     done  these  in  the  past, they  knew  that  that  could                                                                  
     happen  and made  provisions for  it. They  are past  the                                                                  
     "unknowns"  and  now it's  just a  matter  of getting  it                                                                  
     done.                                                                                                                      
                                                                                                                                
     Ms.  Anderson commented  that there  were two  conference                                                                  
     rooms  on the  second floor  that  were a  good size  and                                                                  
     could  accommodate  an Ethics  Committee  meeting -  very                                                                  
     convenient  to  be  on  the  same  floor  as  the  Ethics                                                                  
     office.  Ms.  Anderson  noted  that  the  carpet  on  the                                                                  
     second  floor had  been installed  and was covered  while                                                                  
     the  work continued.  She also noted  that the walls  had                                                                  
     been  painted--Mr. Weiss  confirmed this.   Ms.  Anderson                                                                  
     asked Mr. Weiss for details on the sound proofing.                                                                         
                                                                                                                                
     Mr. Weiss  stated that all  walls between the  suites had                                                                  
     high,  sound proof  (STC rating)  walls.  It's more  than                                                                  
     your  typical  sheet-rock  wall.  There have  been  other                                                                  
     provisions  put into  the wall to  help sound going  from                                                                  
     room  to  room;  the  carpet  helps  absorb  sound,  they                                                                  
     installed  high-end  ceiling  tiles  to help  with  sound                                                                  
     bouncing  over the  top, and  the  partitions (or  walls)                                                                  
     between  suites go  from floor  to  the structure  above,                                                                  
     so  there is  no gapping  space above  the ceiling  tile.                                                                  
     They  took every  provision  they could  to separate  the                                                                  
     suites going down the corridor.                                                                                            
                                                                                                                                
     There is  white noise in any  project that will  help but                                                                  
     they  can only do  so much  if you choose  to leave  your                                                                  
     door  open. He  stated  he felt  that they  did a  pretty                                                                  
     extensive  job with  sound  proofing from  room to  room.                                                                  
     In the  hearing rooms on  the first floor, everything  is                                                                  
     sealed  up to the  deck above  for sound,  so that  it is                                                                  
     solid jib  board walls with  insulation in between  them.                                                                  
     All  the duct work  that goes from  the public  corridors                                                                  
     that  goes  into  the  offices  has  sound  boots,  which                                                                  
     makes sound difficult to get around.                                                                                       
                                                                                                                                
     Ms.  Lucky  asked  to  return   to  the  subject  of  the                                                                  
     conference  rooms,  stating   that  when  the  architects                                                                  
     designed  the  building,  one requirement  was  that  the                                                                  
     public  hearing  rooms  all  be  situated  on  the  first                                                                  
     floor  to avoid  heavy traffic  in the  elevators and  to                                                                  
     maintain   the  public   in  the   LIO  portion   of  the                                                                  
     building.  Other  conference  rooms  would  be  upstairs.                                                                  
     The second  floor has two  fairly large-sized  conference                                                                  
     rooms,  roughly the  size of  what we  had before on  the                                                                  
     5th &  6th floors. One of  them will be set up  for video                                                                  
     conferencing,  so we won't  be doing what we  did earlier                                                                  
     and  having our video  conferencing  room and the  public                                                                  
     hearing  room be the same  space.  Either of  these rooms                                                                  
     will  be ideal  for  committee  meetings  or where  there                                                                  
     isn't  a  lot of  public  involvement  other  than a  few                                                                  
     more committee members.                                                                                                    
                                                                                                                                
     Ms.  Anderson interjected  that they  would be ideal  for                                                                  
     executive  sessions.  Ms. Lucky  agreed, stating  that it                                                                  
     would also  be easier to  control for executive  sessions                                                                  
     because  there  is  just  one   entrance,  and  it  won't                                                                  
     interfere with public hearings like before.                                                                                
     Ms.  Lucky explained  that on the  3rd-6th floors,  there                                                                  
     are   small  conference   rooms   or  small   areas/small                                                                  
     meeting rooms, not designed for committee meetings.                                                                        
                                                                                                                                
     Capacity  of rooms was  discussed; Senator Gardner  asked                                                                  
     the people capacity of the auditorium.                                                                                     
                                                                                                                                
     Mr.  Weiss  stated  they were  asked  to  lay it  out  in                                                                  
     three   basic  configurations;   a   configuration   like                                                                  
     today's  meeting   which  holds  about  100-130   people;                                                                  
     another  configuration   like  a  training  room,  and  a                                                                  
     third  style  to  have  a  testifier  and  a  note-taking                                                                  
     person.  The room  is about  2-3 times  larger than  what                                                                  
     the  conference rooms  were before  on the second  floor.                                                                  
     Mr.  Weiss added that  if the auditorium  were full,  the                                                                  
     meeting  could be  piped into the  conference rooms  next                                                                  
     to  it. Everything  has  been  laid out  to  be moved  on                                                                  
     carts and put into storage in the basement.                                                                                
                                                                                                                                
     Ms.  Anderson  asked  for  clarification   regarding  the                                                                  
     outside  door  and  inside  door  to  the  Ethics  office                                                                  
     9:21:19 AM.  She  commented   that  the  space   for  the                                                                
     entrance  door to Ethics  is very wide  but is under  the                                                                  
     impression  there  is  going to  be  a glass  panel  door                                                                  
     that will be frosted or smoked.                                                                                            
                                                                                                                                
     Mr.  Weiss  confirmed  that  the  glass  going  into  the                                                                  
     suites  will  be  translucent   which  will  allow  light                                                                  
     through  but  you  won't be  able  to  see who's  in  the                                                                  
     space unless you're right up to it.                                                                                        
                                                                                                                                
     Ms. Anderson asked about the noise barrier.                                                                                
                                                                                                                                
     Mr. Weiss  reiterated that the  noise is going  from side                                                                  
     to  side, suite  to suite,  and  the walls  going out  to                                                                  
     the  corridor  also  go up  to  the  deck above  and  are                                                                  
     sound  insulated. The  glass will  do what it's  supposed                                                                  
     to do,  but won't be  100%. He stated  that it  should be                                                                  
     fine as long as you don't talk right up to it.                                                                             
                                                                                                                                
     In  regards to the  glass, sliding  door, located  inside                                                                  
     Ethics  and the entrance  to the Administrator's  office,                                                                  
     it is  a sliding door  to save square  footage. It  has a                                                                  
     "soft close"  mechanism so you  can't slam it.  The frame                                                                  
     of  the  glass slider  will  capture  the whole  wall  so                                                                  
     there  won't be  any  gaps. When  the  door shuts,  there                                                                  
     will  be  a  gasket  that  seals   against  the  vertical                                                                  
     molding.  It will  help mitigate any  sound transfer.  He                                                                  
     believes  there was a  request for  the Ethics office  to                                                                  
     have  an  additional   feature  that  when  the  door  is                                                                  
     closed  another piece  drops out  of the  bottom to  seal                                                                  
     to the floor.                                                                                                              
                                                                                                                                
     Ms.  Anderson asked  Ms. Lucky  for  an approximate  move                                                                  
     in  date for Ethics.  Ms.  Lucky stated  that it will  be                                                                  
     January  8 or  9,  but the  furniture  will be  delivered                                                                  
     mid-December.  The  only thing  that we  will be  waiting                                                                  
     on  is the "D-mark"  (installed  after certification  for                                                                  
     occupancy),  referred  to  by  IT.  At  some  point,  the                                                                  
     "server"  has to be installed.  The difficulty  in moving                                                                  
     Ethics  is that there might  not be any phone  service or                                                                  
     computer access if Ethics moves in too soon.                                                                               
                                                                                                                                
     Mr.  Weiss  responded that  there  can be  a  conditional                                                                  
     certification  for occupancy  drawn up well before  that.                                                                  
     This  will  allow all  the  other  vendors to  enter  the                                                                  
     building at that point to complete their work.                                                                             
                                                                                                                                
     Ms. Anderson  stated that Ethics  items are contained  in                                                                  
     one  office  which  should  make  the  move  easier  than                                                                  
     others  who  have  items in  storage,  and  other  areas,                                                                  
     etc.                                                                                                                       
                                                                                                                                
     Ms.  Lucky   reiterated  that   her  concern   isn't  the                                                                  
     difficulty  of moving Ethics,  it's that she wants  to be                                                                  
     sure  that  the infrastructure  is  complete.  Ms.  Lucky                                                                  
     stated  that Wi-Fi access  might be  an option until  the                                                                  
     server  is up. When the server  is moved from  across the                                                                  
     street,  it has  to be  down 12  hours. The  plan was  to                                                                  
     have  it down  while all the  computers  were on the  van                                                                  
     because  it would  be the  least used  computer time  for                                                                  
     most  and  the least  inconvenienced  time.  Getting  the                                                                  
     office  items  moved in  before  January  shouldn't be  a                                                                  
     problem.  More discussion  is encouraged  as the  time to                                                                  
     move nears.                                                                                                                
                                                                                                                                
 6. BUDGET 9:27:12 AM                                                                                                       
     a. FY14  Final Budget  Update: Ms.  Anderson stated  that                                                                
     what you  see in the packet  are final numbers  for FY14,                                                                  
     ending  on June 30,  2014. There is  a lapse of  $32,000.                                                                  
     The  carryover was  highest  in the  services area  which                                                                  
     included  money for  Brent Cole,  outside legal  counsel,                                                                  
     investigators,  etc. She inquired  why $126 and  $15 were                                                                  
     encumbered   when  the  budget  period  is   closed.  The                                                                  
     invoices were received in FY14 but paid out of FY15.                                                                       
                                                                                                                                
     b. FY15   Budget  Update:   Ms.   Anderson  stated   FY15                                                                
     started  on July 1  and will run  through June 30,  2016.                                                                  
     $250,400  budgeted; $47,500  expended, with a  balance of                                                                  
     $205,000.     Ms.  Anderson   reported  under   "personal                                                                  
     services"  there  is  a $46,000  increase  which  is  for                                                                  
     benefits;  a  percentage  of  salary,  and  fixed  health                                                                  
     insurance  costs.  For Ms.  Leigh, the  health  insurance                                                                  
     benefit  is  50%;  Ms. Anderson  who  is  under  contract                                                                  
     receives  a reduced  percentage of  salary and no  health                                                                  
     insurance  benefit.   Ms.  Anderson  reported  there  are                                                                  
     adequate  funds  for  FY15  expenses   based  on  current                                                                  
     estimates of costs.                                                                                                        
                                                                                                                                
     c. FY16  Budget  Projections:   Ms.  Anderson  talked  to                                                                
     Executive  Director  Pam  Varni  who  has  recommended  a                                                                  
     maintenance   budget  level.  Ms.  Anderson   stated  she                                                                  
     concurred.  There will be a  1% across the board  cost of                                                                  
     living  increase that is expected  to be approved  by the                                                                  
     legislature;  the  health  insurance  monthly  rate  will                                                                  
     decrease  by  $25.  9:30:43 AM Ms.  Anderson  stated  she                                                                
     didn't  expect the  FY15 budget  to lapse  as many  funds                                                                  
     as   FY14  due  to   increased  costs   related   to  the                                                                  
     transition   of   the   administrator;   therefore,   she                                                                  
     recommended approving the maintenance budget.                                                                              
                                                                                                                                
     Members  were  asked  if there  were  any  objections  to                                                                  
     approving  the  FY16 Maintenance  Budget.  There were  no                                                                  
     objections. Motion passes.                                                                                                 
                                                                                                                                
     Representative  Josephson asked  if the motion  that just                                                                  
     passed  included  the  committee   asking  Ms.  Varni  to                                                                  
     submit   the   maintenance   budget   formally   to   the                                                                  
     legislature.                                                                                                               
                                                                                                                                
     Ms.  Anderson  clarified  that  the  committee  would  be                                                                  
     sending   a  letter  to  Ms.   Varni  stating   that  the                                                                  
     committee  recommends the  maintenance budget.  Ms. Varni                                                                  
     will  include   the  recommendation  with   the  rest  of                                                                  
     Legislative   Council's   budget  for   the   Ombudsman's                                                                  
     office, Office Victims' Right's, etc.                                                                                      
                                                                                                                                
 7. CONTRACT SUBCOMMITTEE REPORT: 9:31:57 AM Chair Turner                                                                   
     stated   that  in  May,   the  committee  established   a                                                                  
     subcommittee  to look  at "independent  consultants"  and                                                                  
     "contractors"   and  compliance   with  the   Legislative                                                                  
     Ethics  Act. Chair Turner  introduced Senator  Gardner to                                                                  
     the floor.                                                                                                                 
                                                                                                                              
     Senator  Gardner stated  that although  the  subcommittee                                                                
     did  not  officially  meet,  they  reached  out  to  each                                                                  
     other  and conducted  some  research on  the subject  and                                                                  
     have   a   proposed   recommendation.   Senator   Gardner                                                                  
     introduced   her  aid,   TJ  Presley,   to  present   the                                                                  
     proposal.                                                                                                                  
                                                                                                                                
     Mr.  Presley  introduced  himself  as  staff  to  Senator                                                                  
     Gardner,  and provided a recap  on what the  subcommittee                                                                  
     was   tasked   to   do   and    the   status   of   their                                                                  
     recommendations.  He  stated  that the  subcommittee  was                                                                  
     asked  to  look  at  a  certain  statute   that  includes                                                                  
     "consultants"   and  "independent  contractors"   in  the                                                                  
     definition  of a  legislative employee.  Currently,  this                                                                  
     means  that if you  are a consultant  or contractor,  you                                                                  
     are  required   to  take  Legislative  Ethics   Training,                                                                  
     subject  to filing ethics  disclosures, and follow  other                                                                  
     requirements of the Ethics Act.                                                                                            
                                                                                                                                
     Mr.  Presley  stated he  obtained  a legal  opinion  from                                                                  
     LAA  Legal  and had  submitted  a research  request.  The                                                                  
     recommendation  that came from  these areas is  supported                                                                  
     by  Ms.  Anderson.    The  recommendation  is  to  simply                                                                  
     change  the  definition  of  "legislative   employee"  by                                                                  
     removing   "consultant"  and   "independent   contractor"                                                                  
     from  the  definition,  and  properly  give  "consultant"                                                                  
     and "independent  contractor"  their own definitions  and                                                                  
     then determine the ethical requirements.                                                                                   
                                                                                                                                
     Mr.  Presley stated  that in 2012,  the Ethics  Committee                                                                  
     decided  that students,  interns, and  volunteers of  the                                                                  
     legislature   who   fell    under   the   definition   of                                                                  
     legislative   employees   should   be   given   different                                                                  
     ethical   requirements   than  for   those  of   employee                                                                  
     working   for  the  legislature.   The  subcommittee   is                                                                  
     recommending    the    same   for    "consultants"    and                                                                  
     "independent contractors".                                                                                                 
                                                                                                                              
     The subcommittee,  which is  made up of four  legislative                                                                  
     members,  Rep Charisse  Millett, Sen  Berta Gardner,  Rep                                                                  
     Andy  Josephson, and  Rep Chris Tuck,  as well as  Public                                                                  
     Member  Conner Thomas,  will be having  a public  meeting                                                                  
     to  discuss  definitions  and  ethical  requirements  for                                                                  
     these groups.                                                                                                              
                                                                                                                                
     Senator    Gardner   added    that   "consultants"    and                                                                  
     "independent   contractors"   technically  already   fall                                                                  
     under the  Ethics Act as  employees but in practice  they                                                                  
     haven't  actually followed the  Act so it's difficult  to                                                                  
     know  what  kind  of  an impediment  there  might  be  to                                                                  
     people  who are interested  in responding  to a  proposal                                                                  
     from  the legislature  and  whether or  not people  would                                                                  
     balk  at that  requirement and  not bid  or respond.  She                                                                  
     believes  the requirements could  create problems  if the                                                                  
     Ethics Act were enforced as it is written today.                                                                           
                                                                                                                                
     Member  Thomas  asked if  Sen  Gardner was  suggesting  a                                                                  
     statute change. She responded yes.                                                                                         
                                                                                                                                
     Senator  Gardner and Mr.  Presley suggested scheduling  a                                                                  
     meeting  date  with  a  deadline   for  a  resolution  by                                                                  
     December  before  committee terms  ended  so there  would                                                                  
     be   something  to   submit  to   the  2015   Legislative                                                                  
     Session.                                                                                                                   
                                                                                                                                
     Members  of   the  subcommittee  scheduled   to  meet  on                                                                  
     Monday,  November  10, at 10  o'clock.  The meeting  will                                                                  
     be  teleconferenced   for  those  who  cannot  attend  in                                                                  
     person.                                                                                                                    
                                                                                                                                
  8. DISCUSSION: 2015 STATUTORY CHANGES: 9:38:50 AM                                                                         
     Chair  Turner stated  that  the committee  does not  have                                                                  
     statutory  authority   to  collect  fines.  They  have  a                                                                  
     legal  opinion  from   Brent  Cole  that  says  that  the                                                                  
     committee  can levy fines but  if they are not  paid, the                                                                  
     committee  cannot statutorily  collect them. The  opinion                                                                  
     also  stated   the  committee  can  pursue   a  statutory                                                                  
     change.  Mr.  Cole  suggested referencing  a  past  suit,                                                                  
     Malone  vs. Meekins,  prior to drafting  language  as the                                                                  
     language  may be  helpful in  providing  some caution  on                                                                  
     the statutory wording.                                                                                                     
                                                                                                                                
     Chair  Turner  invited  Jerry  Anderson  to  provide  the                                                                  
     members  highlights   of  APOC's  collection   procedure.                                                                  
     9:40:22 AM                                                                                                               
                                                                                                                                
     Mr. Anderson  stated that APOC  had similar concerns  and                                                                  
     developed  a formal process  with the Department  of Law.                                                                  
     The Department  of Law prepared  a memorandum  which laid                                                                  
     out  the types of  necessary forms  for APOC to  use when                                                                  
     referring  a  matter  to the  Attorney  General's  office                                                                  
     for  collection.  That was  in 2009.  In  2010 and  2011,                                                                  
     APOC was  undergoing a major  regulation update,  and the                                                                  
     commission  adopted the  formal memorandum  in order  for                                                                  
     APOC  to  give  due  process  to  those  that  came  into                                                                  
     contact  with APOC  through  the complaint  process.  The                                                                  
     due  process is  to  notice an  opportunity  to be  heard                                                                  
     and  an  opportunity  to  appeal  any  ruling  that  APOC                                                                  
     issued.  A simple  regulation  was adopted  showing  they                                                                  
     had  the authority  to forward  a  referral. Although  it                                                                  
     would  be  different  for  Ethics,  the  due  process  is                                                                  
     what's important.                                                                                                          
                                                                                                                                
     Mr.  Anderson  stated  that  when he  was  employed  with                                                                  
     APOC,  a client who  was a  prominent attorney  commented                                                                  
     that   he   didn't   think  APOC   would   ever   enforce                                                                  
     collection which is why he didn't pay his fine.                                                                            
                                                                                                                                
     Mr.  Anderson proceeded  stating that  the Department  of                                                                  
     Law  is  looking to  make  sure  that APOC  (or  whatever                                                                  
     agency,)  has gone  through  the proper  steps. When  the                                                                  
     Department  of Law receives  a collection notice  from an                                                                  
     agency,  such  as  APOC,  they  give  the  client  notice                                                                  
     again  and verify the  copy of the  order is a  certified                                                                  
     copy and that APOC went through all the proper steps.                                                                      
                                                                                                                                
     Ms.  Anderson  asked  Mr.  Anderson  to  further  explain                                                                  
     what  happens once  the Department  of  Law receives  the                                                                  
     notice from APOC.                                                                                                          
                                                                                                                                
     Mr.  Anderson stated  that  APOC developed  form  letters                                                                  
     stating  the  matter will  be  referred to  the  Attorney                                                                  
     General  in  an  attempt  to collect  the  fine.  The  AG                                                                  
     office  in  turn sends  out  a letter  stating  they  are                                                                  
     going  to  be  filing  a  suit   against  the  person  to                                                                  
     formally  get a judgment  established.  The intent  is be                                                                  
     able  to  attach  any  bank accounts  of  which  APOC  is                                                                  
     aware of  or the PFD for  the collection. APOC,  however,                                                                  
     is   at  the  bottom   of  the   list  of  priority   for                                                                  
     collecting  money; other agencies  such as child  support                                                                  
     is high  on the list.  The matter  will go to the  courts                                                                  
     eventually,  if  the fine  is not  collected,  but it  is                                                                  
     very rare.                                                                                                                 
                                                                                                                                
     Chair  Turner   asked  Mr.  Anderson  if   fines  accrued                                                                  
     interest  the longer  they are  not paid.   Mr.  Anderson                                                                  
     stated  that  APOC  does  not   have  that  provision  in                                                                  
     statute   or  in   their  regulations.   Costs  for   the                                                                  
     collection process are added, however.                                                                                     
                                                                                                                                
     Chair  Turner asked  if a  statutory  change would  cover                                                                  
     existing  overdue fines and  accrue interest  for failure                                                                  
     to pay.   Mr. Anderson  replied that  it was his  opinion                                                                  
     it could be difficult to accomplish.                                                                                       
                                                                                                                                
     Ms. Anderson  responded that  perhaps statutory  language                                                                  
     could  be  written  with  an  effective  date  for  fines                                                                  
     currently in place.                                                                                                        
     Member  Thomas  asked  Mr.  Anderson   if  APOC  statutes                                                                  
     currently  allow  the  actual collection  of  the  fines.                                                                  
     Mr.  Anderson stated  that it exists  by regulation.  The                                                                  
     imposition  of a fine is  by statute under AS  15.13.380,                                                                  
     the complaint  process. There  are two complaint  process                                                                  
     methods;  one is an informal  process which typically  is                                                                  
     a late  filing type  of issue and  the other is  a formal                                                                  
     complaint for other than late filings.                                                                                     
                                                                                                                                
     Member Thomas  9:46:58 AM pointed   out  the  reason   he                                                                
     asks  is because  in Mr.  Cole's letter,  the Ethics  Act                                                                  
     is silent  on how  to enforce the  collection of  a fine.                                                                  
     Mr. Anderson  responded APOC  enforces the collection  of                                                                  
     a fine by regulation of a particular statute.                                                                              
                                                                                                                                
     Senator  Gardner added  that  Ethics could  do the  same,                                                                  
     because  regulatory   changes  are  sometimes  easier  to                                                                  
     make than  statutory changes.  Ms. Anderson replied  that                                                                  
     Ethics  does  not  have  regulatory   authority.  Senator                                                                  
     Gardner  stated  that  Ethics   could  perhaps  make  the                                                                  
     suggestion to whomever has the authority.                                                                                  
                                                                                                                                
     Representative  Millett  stated  that  it  would  be  her                                                                  
     understanding  that  they would  have to  have a  statute                                                                  
     change  that gives  us (Ethics)  regulatory authority  to                                                                  
     do what APOC did.                                                                                                          
                                                                                                                                
     Additionally,   in  response   to   late  fines   already                                                                  
     accrued,  Rep Millett stated  that Ethics would  run into                                                                  
     retro  activity.   She  also  asked if  Ethics  currently                                                                  
     had  a large outstanding  amount of  money in fines  or a                                                                  
     small amount of money outstanding.                                                                                         
                                                                                                                                
     Ms. Anderson  stated that there  was a large  outstanding                                                                  
     amount  owed  by  former  Representative  Alan  Dick.  He                                                                  
     paid  $5,000  of  his approximate  $17,000  fine  due  on                                                                  
     September  1,  2014. His  remaining  outstanding  balance                                                                  
     is approximately $12,000.                                                                                                  
                                                                                                                                
     Representative  Josephson  added that  he didn't  believe                                                                  
     there would  be an issue  for retroactivity because  it's                                                                  
     a collection,  and not the  punishment. The penalty  does                                                                  
     not  change, therefore,  you could  go back  and use  the                                                                  
     statute retroactively.                                                                                                     
                                                                                                                                
     Mr.  Anderson  restated  that  it  was  the  due  process                                                                  
     built  into the process,  and whether  or not you'd  have                                                                  
     to go  back and somehow  implement  that for a fine  that                                                                  
     had already occurred.                                                                                                      
                                                                                                                                
     Ms.  Anderson  responded  that  Ethics  does have  a  due                                                                  
     process.  Currently, the  person has  30 days to  respond                                                                  
     to or  appeal the  decision or fine.  In all  complaints,                                                                  
     when   there's   a   decision  issued   by   the   Ethics                                                                  
     Committee,  the  person  is notified  by  letter  stating                                                                  
     that  they  have,  by  statute,  30 days  to  appeal  the                                                                  
     decision.                                                                                                                  
                                                                                                                                
     Mr.  Anderson  added  that APOC  had  a due  process  for                                                                  
     part  of   the  process,   but  the  courts  required   a                                                                  
     separate  due process  when clients  did not pay  timely,                                                                  
     as ordered by APOC.                                                                                                        
                                                                                                                                
     Representative   Millett   stated   that   it   was   her                                                                  
     understanding   that  Ethics  has  a  due   process  that                                                                  
     notifies  people of  the fine  but no  due process  after                                                                  
     the  fine is in arrears,  and asked  members if  this was                                                                  
     correct.  Chair  Turner  and Ms.  Anderson  both  replied                                                                  
     yes.                                                                                                                       
                                                                                                                                
     9:51:04 AM Dan Wayne,  LAA Legal,  was  invited by  Chair                                                                
     Turner  to comment  or  add proposed  statutory  language                                                                  
     to  the two-step process  before them.  Mr. Wayne  stated                                                                  
     that   he   did  not   have   any  comment   on   today's                                                                  
     discussion;  that he  has not read  Mr. Cole's memo,  and                                                                  
     that this was a new issue for him.                                                                                         
                                                                                                                                
     Member  Thomas commented  that the  retroactive issue  is                                                                  
     more of  a secondary issue  and what they really  want to                                                                  
     make  sure of  is that  we have  the  authority of  going                                                                  
     forward to collect fines.                                                                                                  
                                                                                                                                
     9:52:44 AM Member  Thomas  motioned  that  the  committee                                                                
     refer  this  matter to  Mr.  Wayne for  further  research                                                                  
     and  submit a proposal  to the committee  by December  1,                                                                  
     2014,  if agreeable  to  him.   There  was no  objection.                                                                  
     Mr.  Wayne  responded  that he  would  work on  this  but                                                                  
     that  he   would  need  a  specific  question   from  the                                                                  
     committee.  Chair Turner  replied that  Ms. Anderson  and                                                                  
     Mr. Anderson would provide this to him.                                                                                    
                                                                                                                                
 9. EXECUTIVE SESSION: 9:53:38 AM Members went into                                                                         
     Executive  Session to discuss  matters which  must remain                                                                  
     confidential   pursuant  to   AS  24.60.160(b)   Advisory                                                                  
     Opinions.                                                                                                                  
                                                                                                                                
 10. PUBLIC SESSION: Members returned to Public Session.                                                                      
                                                                                                                                
                                                                                                                              
 11. OTHER BUSINESS: None.                                                                                                    
                                                                                                                                
                                                                                                                                
 12. ADJOURN: Meeting adjourned at 10:08am.                                                                                   
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
AGENDA.pdf JETH 10/28/2014 8:30:00 AM
ITEM 3.pdf JETH 10/28/2014 8:30:00 AM
MINUTES
ITEM 5a.pdf JETH 10/28/2014 8:30:00 AM
INFORMAL ADVICE STAFF REPORT
ITEM 5b.pdf JETH 10/28/2014 8:30:00 AM
DISCLOSURES
ITEM 5c.pdf JETH 10/28/2014 8:30:00 AM
COMMITTEE MEMBER VACANCIES FOR 2015
ITEM 5d.pdf JETH 10/28/2014 8:30:00 AM
ETHICS TRAINING
ITEM 6.pdf JETH 10/28/2014 8:30:00 AM
BUDGET
ITEM 8.pdf JETH 10/28/2014 8:30:00 AM
2015 STATUTORY CHANGES