Legislature(1995 - 1996)
01/25/1996 03:30 PM Senate STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE STATE AFFAIRS COMMITTEE
January 25, 1996
3:30 p.m.
MEMBERS PRESENT
Senator Bert Sharp, Chairman
Senator Randy Phillips, Vice-Chairman
Senator Loren Leman
Senator Dave Donley
MEMBERS ABSENT
Senator Jim Duncan
COMMITTEE CALENDAR
SENATE BILL NO. 191
"An Act relating to election campaigns, election campaign
financing, the oversight and regulation of election campaigns by
the Alaska Public Offices Commission, the activities of lobbyists
that relate to election campaigns, and the definitions of offenses
of campaign misconduct; and providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
SB 191 - No previous action to record.
WITNESS REGISTER
Mike Frank
2224 Turnigain Parkway
Anchorage, Alaska 99517
POSITION STATEMENT: Discussed Initiative 95 and SB 191.
Karen Boorman, Director
Alaska Public Offices Commission
Department of Administration
2221 E Northern Lights, Rm. 128
Anchorage, Alaska 99508-4149
POSITION STATEMENT: Informed the committee of APOC's pending
written comments.
Senator Kelly, Prime Sponsor
State Capitol
Juneau, Alaska 99801-1182
POSITION STATEMENT: Discussed the effective date.
Jack Chenowith, Legislative Legal Counsel
130 Seward Street, Suite 409
Juneau, Alaska 99801-2105
POSITION STATEMENT: Clarified the effective date.
James Baldwin, Assistant Attorney General
Department of Law
PO Box 110300
Juneau, Alaska 99811-0300
POSITION STATEMENT: Offered his assistance.
ACTION NARRATIVE
TAPE 96-4, SIDE A
SSTA - 1/25/96
SB 191 ELECTION CAMPAIGN FINANCE REFORM
Number 001
CHAIRMAN SHARP called the Senate State Affairs Committee to order
at 3:30 p.m. and introduced SB 191 as the first order of business
before the committee. Chairman Sharp informed everyone that this
was a listen-only teleconference in order to receive an overview of
the initiative and a comparison to SB 191 from the sponsor of the
initiative. There will be full public participation at future
meetings. The chairman called the first witness.
Number 050
MIKE FRANK, Campaign Finance Reform Now (CFRN) testifying from
Anchorage, informed the committee that SB 191 basically duplicated
the initiative. There are a few stylistic and technical
differences which are of no great significance. He noted that
Representative James has a bill in the House which is practically
the same as the initiative. Representative Finkelstein's version
is a little different in that his version incorporates some changes
suggested during an Alaskan Public Offices Commission(APOC) meeting
this Fall.
Mr. Frank recounted the history of the campaign finance reform
initiative. In the 1980s, Governor Cooper introduced legislation
which would have restricted contributions to only individuals.
Over the years, other legislators have introduced campaign finance
reform measures. He noted that there has been litigation regarding
across district contributions. In 1993, an initiative banning
across district contributions was unsuccessful. He mentioned the
continued controversy surrounding the issue of charitable gaming
monies being used to finance political activity.
Number 090
Mr. Frank said that CFRN began in 1993 by researching this issue.
The group discovered that Representative Finkelstein had some bills
pending regarding campaign finance reform. The group contacted
Representative Finkelstein who allowed them to utilize a mailing
list of persons interested in this issue. The initial initiative
was filled in 1994. During the period between the filing of the
initiative and its certification for circulation, the group
received comments from the APOC staff. The group then tinkered
with their initial draft in order to respond to the questions and
concerns of APOC. In 1995, CFRN refiled the initiative and they
received circulation certification in April of that year. The book
was published in May of 1995. The group had over 400 volunteer
sponsors from a wide range of backgrounds with petition booklets.
CFRN began with a goal of 25,000 signatures which was raised to
28,000 signatures due to the incredible response. They received
over 32,000 signatures of which 31,500 were submitted in December
of 1995; petition booklets continued to come in after that time.
Lieutenant Governor Ulmer certified the initiative on January 17,
1996. The initiative is scheduled for the ballot in November of
1996. Mr. Frank acknowledged that the legislature has a
constitutionally-designated role and CFRN intends to cooperate.
Number 150
Mr. Frank believed that CFRN's volunteers as well as others
supporting campaign finance reform are bound by the following
beliefs: the electoral process is a captive of the undue influence
of the money interest and that elected officials should be regarded
as the village elders of the state and local governments, however
the case is quite the opposite. Campaign finance supporters
realize that corruption is a direct consequence of an electoral
system which places incumbents and challengers on an expensive,
time-consuming fund raising treadmill.
Mr. Frank explained that the initiative attempts to refocus the
electoral system back to the Alaska voter and increase the public's
faith in the system and the elected officials. The initiative
attempts to change the current system of election financing by
eliminating large contributions of private money, creating a level
playing field, and breaking the hold of powerful money interests
over the electoral and legislative processes of government. Mr.
Frank stated that only these changes would restore the faith of
Alaskans in their government.
Number 192
SENATOR RANDY PHILLIPS supported SB 191 and felt that this would
resolve the public's concern. He expressed concern with Section
15.13.116, the "DISBURSEMENT OF CAMPAIGN ASSETS AFTER ELECTION" on
page 14, line 18. Senator Randy Phillips recounted an experience
in which one of his constituents gave him $40 and a couple of
blocks later he met a single mother with three children whom he
gave that $40. However, under SB 191 Senator Randy Phillips would
not have been able to give this excess money for charitable causes
unless provided for under 26 U.S.C. 501(c)(3) which is a nonprofit
organization. He asked if there had been any discussion regarding
placing excess funds in the expense allowances in the legislature.
Senator Randy Phillips stated that almost all the legislators spend
more on their constituents or community for public purpose than the
$6,000 allowance.
MIKE FRANK explained that the initiative is designed to level the
playing field between incumbents and challengers. The excess funds
provision are intended to prevent the carry over of unnecessary
surpluses while giving incumbents with surpluses options to spend
the money.
SENATOR RANDY PHILLIPS felt that legislation could be crafted with
specific criteria for the spending of excess funds for legislative
purposes, not campaign purposes. MIKE FRANK explained that the
initiative provides for excess funds to be donated without
condition to Alaska's General Fund. The legislature could
reappropriate that money to the office account which would be
considered state funds. Mr. Frank indicated that this problem may
not be resolved under the campaign finance reform; office holders
are not given comparable expense accounts. That may be subject to
majority rule such that the minority is given less money to run
their office. Mr. Frank stated that excess campaign contributions
should not be a manner in which to adjust such inequities, they
should be a matter of tax and revenue policy.
Number 255
SENATOR RANDY PHILLIPS pointed out that if office expenses were
raised from $6,000 to $8,000 there would be public outcry that
legislators are increasing their pay which is not really the case.
MIKE FRANK reiterated that the initiative is intended to level the
playing field and to place restrictions on how surpluses can be
dispersed. This all is an attempt to eliminate the potential of
campaign contributions being used as a quid pro quo for anything
after an election. Mr. Frank expressed willingness to review
adjustments making it easier for legislators to deal with surplus
funds if those adjustments are reasonable from a public policy and
fair election standpoint. Mr. Frank said that he understood the
problem, but was unsure if it could have been addressed in this
initiative.
SENATOR RANDY PHILLIPS suggested that this could be addressed by
placing another restriction under Section 15.13.116 and there could
even be a dollar limit stated. He informed everyone of the
questionnaires that he sends to his constituents which cost more
than $6,000. Senator Randy Phillips identified the political
problem as being that an increase in the expense allowance would
create uproar in the media; the media would portray it as a pay
increase rather than an office allowance increase. How could the
previously mentioned incident regarding the $40 be handled?
MIKE FRANK stated that a private contribution of campaign funds to
a constituent in need would not be allowed under the initiative.
Number 304
CHAIRMAN SHARP noted that there is much reference in the initiative
about to whom and how much lobbyists can contribute, when inquiring
about restrictions on contributions from a lobbyist's spouse. MIKE
FRANK said that there are no express restrictions on spouses of
lobbyists. The restriction is narrowly tailored to refer to
lobbyists making a living lobbying; the restriction does not apply
to representational lobbyists. There are no restrictions on
lobbyists to make independent expenditures or to give money to
political action committees or political parties. Spouses of
lobbyists would be allowed to contribute just as any other
individual.
CHAIRMAN SHARP communicated that representational lobbyists are
governmental, bureaucratic lobbyists for departments and nonprofits
or employees lobbying for their company or organization for which
they are not paid. Chairman Sharp indicated that the level playing
field may not be as such because some districts have large numbers
of registered lobbyists. He did not have a problem with
restrictions on lobbyists, but it did seem to slant it to a certain
direction.
SENATOR RANDY PHILLIPS said that a lobbyist's spouse contributing
money is a trap door. MIKE FRANK pointed out that the trap door is
caused by the First Amendment. The trap door is utilized in many
other contexts as well. It is difficult to regulate this.
CHAIRMAN SHARP reiterated that the teleconference was listen only,
no testimony would be taken today.
KAREN BOORMAN, Director of Alaska Public Offices Commission,
informed the committee that the commission was preparing written
comments and an approved fiscal note which should be ready next
week. She mentioned that Burke Miles from the Juneau office would
be attending the hearing. She also offered to be available to
provide information or assistance.
Number 370
CHAIRMAN SHARP announced that his objective was to avoid as many
legal challenges to the initiative or the statute as possible. He
indicated that he did not want an effective date during a campaign
or a municipal election.
SENATOR KELLY, Prime Sponsor of SB 191, thanked Jack Chenowith who
had drafted the initiative petition into legislation. He asked Mr.
Frank if SB 191 was an accurate portrayal of the initiative
petition. MIKE FRANK thanked Senator Kelly and Senator Randy
Phillips for the introduction of the bill. Mr. Frank reiterated
that SB 191 and the bill by Representative James are functionally
identical to the initiative. Mr. Frank praised Jack Chenowith's
work on this legislation.
SENATOR KELLY asked when the effective date would be if the
legislature did not pass similar legislation and the initiative
passed at the November vote. JACK CHENOWITH said that it would
become effective around March 1st; the initiative provision of the
constitution states that initiatives become effective 90 days after
certification. Mr. Chenowith expected certification of the
initiative about 30 days after the November election which would be
early December. SENATOR KELLY summarized that the earliest that
the initiative petition would be in effect would be March 1, 1996.
Number 411
SENATOR LEMAN suggested that a substantial change as encompassed in
this initiative would be more appropriate to go into effect after
the campaign cycle rather than in the middle.
JAMES BALDWIN, Assistant Attorney General, offered his assistance
to the committee.
CHAIRMAN SHARP asked if anyone from the Division of Elections was
present. He noted that the committee would be working with the
division and he encouraged them to offer suggestions. He pointed
out that Ms. Boorman had referred to a change in the fiscal note;
the current fiscal note indicates that SB 191 would be referred to
the Finance Committee. He informed everyone that this would be
scheduled again and public testimony would be taken. With the
amendments offered, a committee substitute would be created in
order to keep this moving to the Judiciary Committee.
SENATOR LEMAN suggested that when APOC reviews the fiscal note,
they should review how that would change the effective date in the
fiscal year 1997.
CHAIRMAN SHARP agreed to inquire with APOC on this matter as well
as with the Division of Elections. There being no further business
before the committee, the meeting was adjourned at 4:05 p.m.
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