05/07/2007 05:30 PM Senate JUDICIARY
| Audio | Topic |
|---|---|
| Start | |
| HB109 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 109 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE JUDICIARY STANDING COMMITTEE
May 7, 2007
6:23 p.m.
MEMBERS PRESENT
Senator Hollis French, Chair
Senator Charlie Huggins, Vice Chair
Senator Bill Wielechowski
Senator Lesil McGuire
Senator Gene Therriault
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CS FOR HOUSE BILL NO. 109(JUD) am
"An Act relating to bribery, receiving unlawful gratuities, and
campaign contributions; denying public employee retirement
pension benefits to certain legislators, legislative directors,
and public officers who commit certain offenses, and adding to
the duties of the Alaska Retirement Management Board and to the
list of matters governed by the Administrative Procedure Act
concerning that denial; relating to campaign financing and
ethics, including disclosures, in state and municipal
government, to lobbying, and to employment, service on boards,
and disclosures by certain public officers and employees who
leave state or municipal service or leave certain positions in
state or municipal government; restricting representation of
others by legislators and legislative employees; relating to
blind trusts approved by the Alaska Public Offices Commission;
and providing for an effective date."
MOVED SCS CSHB 109(JUD) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 109
SHORT TITLE: DISCLOSURES & ETHICS/BRIBERY/RETIREMENT
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/25/07 (H) READ THE FIRST TIME - REFERRALS
01/25/07 (H) STA, JUD
01/30/07 (H) STA AT 8:00 AM CAPITOL 106
01/30/07 (H) Heard & Held
01/30/07 (H) MINUTE(STA)
02/03/07 (H) STA AT 10:00 AM SPEAKER'S CHAMBER
02/13/07 (H) STA AT 8:00 AM CAPITOL 106
02/13/07 (H) <Postponed Pending Subcommittee Report>
02/15/07 (H) STA AT 8:00 AM CAPITOL 106
02/15/07 (H) <Postponed Pending Subcommittee Report>
02/20/07 (H) STA AT 8:00 AM CAPITOL 106
02/20/07 (H) <Postponed Pending Subcommittee Report>
02/22/07 (H) STA AT 8:00 AM CAPITOL 106
02/22/07 (H) Heard & Held
02/22/07 (H) MINUTE(STA)
02/27/07 (H) STA AT 8:00 AM CAPITOL 106
02/27/07 (H) Heard & Held
02/27/07 (H) MINUTE(STA)
03/01/07 (H) STA AT 8:00 AM CAPITOL 106
03/01/07 (H) Heard & Held
03/01/07 (H) MINUTE(STA)
03/03/07 (H) STA AT 10:00 AM CAPITOL 106
03/03/07 (H) Moved CSHB 109(STA) Out of Committee
03/03/07 (H) MINUTE(STA)
03/07/07 (H) STA RPT CS(STA) NT 3DP 1NR 3AM
03/07/07 (H) DP: ROSES, DOLL, LYNN
03/07/07 (H) NR: JOHANSEN
03/07/07 (H) AM: JOHNSON, COGHILL, GRUENBERG
03/19/07 (H) JUD AT 1:00 PM CAPITOL 120
03/19/07 (H) Heard & Held
03/19/07 (H) MINUTE(JUD)
03/20/07 (H) JUD AT 1:00 PM CAPITOL 120
03/20/07 (H) Heard & Held
03/20/07 (H) MINUTE(JUD)
03/21/07 (H) JUD AT 1:00 PM CAPITOL 120
03/21/07 (H) Heard & Held
03/21/07 (H) MINUTE(JUD)
03/22/07 (H) JUD AT 1:00 PM CAPITOL 120
03/22/07 (H) Heard & Held
03/22/07 (H) MINUTE(JUD)
03/23/07 (H) JUD AT 1:00 PM CAPITOL 120
03/23/07 (H) Moved CSHB 109(JUD) Out of Committee
03/23/07 (H) MINUTE(JUD)
03/28/07 (H) JUD RPT CS(JUD) NT 3DP 1NR 3AM
03/28/07 (H) DP: LYNN, SAMUELS, RAMRAS
03/28/07 (H) NR: COGHILL
03/28/07 (H) AM: GRUENBERG, DAHLSTROM, HOLMES
04/02/07 (H) TRANSMITTED TO (S)
04/02/07 (H) VERSION: CSHB 109(JUD) AM
04/04/07 (S) READ THE FIRST TIME - REFERRALS
04/04/07 (S) STA, JUD, FIN
04/24/07 (S) STA AT 9:00 AM BELTZ 211
04/24/07 (S) Moved CSHB 109(JUD)am Out of Committee
04/24/07 (S) MINUTE(STA)
04/25/07 (S) STA RPT 1DP 3NR 1AM
04/25/07 (S) DP: BUNDE
04/25/07 (S) NR: MCGUIRE, FRENCH, STEVENS
04/25/07 (S) AM: GREEN
04/26/07 (S) STA AT 9:00 AM BELTZ 211
04/26/07 (S) <Bill Moved Out of Committee 4/24/07>
04/26/07 (S) MINUTE(STA)
05/02/07 (S) JUD AT 1:30 PM BELTZ 211
05/02/07 (S) Heard & Held
05/02/07 (S) MINUTE(JUD)
05/07/07 (S) JUD AT 5:30 PM BELTZ 211
WITNESS REGISTER
David Jones, Senior Assistant Attorney General
Opinions, Appeals, & Ethics
Civil Division
Department of Law (DOL)
Alaska Court System
Juneau, AK
POSITION STATEMENT: Provided information related to Senate CS
for CSHB 109.
Cindy Smith, Staff to Senator French
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Highlighted changes in the Senate CS for
CSHB 109.
Joyce Anderson, Chair
Select Committee on Legislative Ethics
Anchorage, AK
POSITION STATEMENT: Responded to questions related to Senate CS
for CSHB 109.
ACTION NARRATIVE
CHAIR HOLLIS FRENCH convened the Senate Judiciary Standing
Committee meeting at 6:23:54 PM. Present at the call to order
were Senator Therriault, Senator Wielechowski, and Chair French.
Senator McGuire arrived shortly thereafter.
CSHB 109(JUD)AM- DISCLOSURES & ETHICS/BRIBERY/RETIREMENT
6:24:12 PM
CHAIR FRENCH announced the consideration of HB 109 and asked for
a motion to adopt version "W" committee substitute (CS) as the
working document.
SENATOR WIELECHOWSKI motioned to adopt the Senate CS for CSHB
109, labeled 25-GH1059\W.
CHAIR FRENCH announced that without objection version "W" is
adopted. He asked Ms. Smith and Mr. Jones to provide
introductions and explain the changes that had been made since
the committee last heard the bill.
CINDY SMITH, Staff to Senator French, directed attention to the
first change on page 2, lines 8-10. The reference to the
definition of official action was changed from a citation of AS
39.52.960 to an expanded definition of official action that was
used in SB 19. The Department of Law requested the change to
correct an error made in a House floor amendment. The bill was
also amended on page 41, Section 70 to adopt the same expanded
definition of official action.
Language was also added on page 2, line 28, to clarify that a
state legislator may not receive membership credit for
legislative service on or after the date the legislator commits
a criminal offense that results in a pension forfeiture. The
Division of Retirement and Benefits requested the change.
Conforming changes occur in several places throughout the bill.
Page 4, lines 4-7, add language exempting candidates who commit
to raise $5,000 or less from the e-file requirements. They will
still be required to report income and expenditures, but there
will be the option to file on paper.
6:26:44 PM
SENATOR HUGGINS joined the meeting.
CHAIR FRENCH added that just this year it's a requirement that
all individuals who run for office, whether they raise more or
less than $5,000, must submit detailed income and expenditure
reports. The amendment in this CS says that once e-filing is a
requirement, candidates that raise less than $5,000 can file a
handwritten report. Soon after the report is submitted it will
be available electronically, he said.
6:27:45 PM
MS. SMITH said the next change occurs in new Section 8. It
requires APOC to scan and post handwritten reports in a PDF type
format within two working days after the commission receives the
information. The thought is that although e-filing will be more
commonplace, there's still an interest in seeing handwritten
reports. This will allow APOC to put them online so people can
review them as soon as possible.
6:28:29 PM
Senator McGuire joined the meeting.
MS. SMITH explained that new Section 12 requires lobbyists to
report food or beverage provided or paid for for immediate
consumption by legislators or legislative employees unless it's
part of an event that's open to all legislators and employees,
or the cost is $10 or less. Lobbyists will be required to report
the names of the recipients, the date the food or beverage was
provided, and the amount paid.
6:29:30 PM
SENATOR WIELECHOWSKI asked if the $10 threshold is cumulative.
6:29:48 PM
DAVID JONES, Assistant Attorney General, Department of Law, said
he understands it was intended to be per event so a legislator
could receive a $10 cup of coffee one day and the next without
violating the reporting requirement.
SENATOR McGUIRE questioned how the $10 amount came about.
CHAIR FRENCH replied it was his decision.
MS. SMITH directed attention to pages 9 and 11 and explained
that language about telephone and facsimile use by legislators
or employees was deleted because it's already covered under
existing legislative ethics provisions. The Legislative Ethics
Committee requested the change.
CHAIR FRENCH added there was a conflict between the de minimis
standard, which applies to all usage of state equipment, and
this particular provision. Removing the provision makes just one
standard across the board, he said.
MR. JONES clarified the changes appear on page 9, lines 7-8, and
page 11, lines 1-2.
MS. SMITH highlighted a deletion following Section 19, on page
19, and explained it's former Section 27, relating to
representation. It also applies to legislative employees.
Current Section 29, which was included in SB 13, already
prohibits a legislator from doing work that's associated with
legislative, administrative, or political action. This change
requires a title change, she said.
CHAIR FRENCH added the House thoroughly worked over the deletion
section and the Senate heard it was practically impossible to
implement the section without boxing legislators out of ordinary
activity in the course of their lives. He believes Section 29
picks up the largest majority of that disputed area.
SENATOR McGUIRE asked for further explanation.
6:33:55 PM
MR. JONES explained that Section 29 would expand the
restrictions on outside activities by legislators by prohibiting
additional compensation from anyone other than the state for
conducting those official activities. Rather than cinching down
the outside activity restriction so tightly that a person
couldn't go to the DMV to apply for a license, this bill would
include the restriction in Section 29, which prevents receiving
compensation from anyone other that the state for performing
official duties. Also, it continues the existing requirement
that representation for compensation before state bodies would
be disclosed.
6:35:40 PM
MS. SMITH directed attention to page 22, line 27, through page
23, line 3, where language was added to create a first time
course for new staff and legislators and a refresher course for
returning staff and legislators. There's also language on page
42, an uncodified law, to clarify that everyone must first
attend the full basic course.
CHAIR FRENCH said the idea is to get people to attend class and
learn about ethics problems that are new to them.
SENATOR McGUIRE asked if the idea of a manual or book containing
new rules had been incorporated.
CHAIR FRENCH replied it's on page 22, line 22.
SENATOR McGUIRE opined it would be nice to have that handbook
incorporated into the training session.
CHAIR FRENCH asked if anyone online could confirm that that
could be done.
6:38:17 PM
JOYCE ANDERSON, Legislative Ethics Committee, said that the
manual could certainly be incorporated into the training program
for a refresher course or a first-time training course.
6:38:40 PM
MS. SMITH referred to page 25-26 and said the first citation is
on line 25. Deferred income is added to the financial disclosure
requirements. Language regarding disclosure requirements has
been modified to accommodate the deferred income requirements.
Also, there's a conforming change on page 28, Section 46 adding
deferred income to the definition of income. Legislative Ethics
requested the change, she said.
On page 29, lines 8-12, the criteria for the ARM Board review of
spouse or dependent benefits has been rewritten. The first
criterion is retained and the financial benefit to the spouse
criteria was replaced by the criteria asking whether the spouse
had knowledge of the conduct. The third criteria regarding
restitution was dropped. Also, language was changed to discuss
the conduct for which the person was convicted, rather than the
conduct for which the person was charged as the standard used
for pension forfeiture.
CHAIR FRENCH commented that the language is conforming.
6:40:35 PM
MS. SMITH highlighted page 29, lines 20-23, which has more
conforming language related to the credits for service that the
Division of Retirements and Benefits asked for.
MS. SMITH said on pages 38-39, Sections 62 and 63 of the bill
add the Senate Judiciary Committee language from SB 64 regarding
the use of state aircraft.
CHAIR FRENCH commented the committee is well familiar with those
amendments.
SENATOR THERRIAULT asked if the language is identical.
MS. SMITH said it was taken directly from the bill. Continuing,
she said Section 66 beginning on page 39 through page 40, line
22, was amended to include language passed by the Senate
regarding which positions in the executive branch may not lobby
for one year. That language includes division directors,
legislative liaisons, and certain state board and commission
members and offices of public corporations that weren't included
in the House bill. She described it as a deeper list that was
developed in the Senate State Affairs and Senate Finance
committees and passed on the Senate floor.
6:42:32 PM
MS. SMITH said page 41 has a new Section 69. It clarifies the
issues brought by the laborers union in testimony in both
bodies. The language has been approved by the administration and
the union representatives who highlighted the issue. It
clarifies the ground rules under which the Executive Ethics Act
applies to nepotism.
CHAIR FRENCH said he understands the language was agreed to by
the Department of Law and the interested labor unions.
MR. JONES agreed.
MS. SMITH said Section 70, page 41, lines 24-25 expands the
definition of official action to include what was contained in
SB 19.
6:44:06 PM
MS. SMITH said the uncodified section on page 42 states that
everyone is required to attend the first round of the ethics
course. That concludes the changes in the CS, she said.
CHAIR FRENCH stated that the CS has been adopted and is before
the committee. He asked if there were questions.
SENATOR McGUIRE mentioned that earlier that day she brought up
the concept of conflicts related to citizen legislatures. She
would probably address this in a separate bill, but one idea is
to have a citizen task force look at how other states address
compensation for lawmakers, and what the restrictions are on
outside labor. Another idea is to allow an option in much the
same way as is done when filing a campaign report. The option is
to file either as a citizen lawmaker or as a fulltime lawmaker.
Someone who files as a fulltime lawmaker would agree to only
work for the state. Someone who files as a citizen lawmaker
would be a lawmaker during the session and have outside
disclosures. "Lots of folks in the building don't want
restrictions on being able to work outside and yet we know that
there are some very real concerns about that," she said. This is
an opportunity for both the public and those running for office
to reflect on what they want and expect. "This is a very broad
concept and it's not fleshed out, but it's something that would
come in a different bill," she stated.
6:46:30 PM
SENATOR WIELECHOWSKI opined that this comprehensive bill is a
good start toward restoring the public trust. However, more
needs to be done. "I'm sure there will be projects over the
Interim to try to deal with some of the situations that have
occurred in the last couple days," he said. He noted that he has
a bill that deals with campaign finance reform to achieve
publicly funded elections. "It's time, I think, that we started
the conversation on getting big money out of campaigns," he
stated. I'll introduce a bill on that soon, he added.
CHAIR FRENCH stated appreciation for the work that Mr. Jones,
Ms. Smith, and the committee did. "I think this committee is
committed to getting some ethics reform this year," he said.
6:47:44 PM
MR. JONES said:
Pardon me for butting in, but I read and heard some
stories over the weekend about Friday's arrests and
indictments that left me a bit perplexed because in
some of the stories it indicated that the "Ethics
Bill" was stalled in the legislature and I knew
differently. It was very clear to me last week that
even before the arrests and indictments that you and
this committee intended to move forward with the
ethics bill. That it wasn't stalled. You scheduled a
hearing last week. You held it and it was clear to me
that day, based on my conversations with Ms. Smith
that you intended to continue consideration tonight,
at this meeting. So I think it's unfair to say that
the bill was stalled and that any action the
legislature takes now on the Ethics Bill has been
motivated by Friday's events. It's very clear to me
that that's not true. In fact you did intend to move
the bill forward and we appreciate that and appreciate
the leadership and statesmanship that you and the
other members of the committee have shown. So thank
you.
CHAIR FRENCH thanked Mr. Jones and said he believes the record
speaks for itself. The bill went through the Senate State
Affairs Committee a couple weeks ago and it was scheduled here.
"I very much thank you and the administration for saying so on
the record though."
6:49:09 PM
SENATOR McGUIRE motioned to report version "W" SCS CSHB 109 from
committee with individual recommendations and attached zero
fiscal note(s).
CHAIR FRENCH announced that without objection SCS CSHB 109(JUD)
is moved from committee. He asked for a motion to move the title
change concurrent resolution.
6:49:42 PM
SENATOR McGUIRE motioned to pass the Senate Concurrent
Resolution from committee.
CHAIR FRENCH announced that without objection the Senate
Concurrent Resolution is moved from committee.
SENATOR THERRIAULT asked if he knows for a fact that the fiscal
note is zero.
CHAIR FRENCH said he understands that the bill is scheduled in
finance tomorrow and he can't answer whether it will be analyzed
overnight to reflect the latest numbers.
6:50:28 PM at ease 6:52:51 PM
The meeting was adjourned at 6:52:58 PM.
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