Legislature(2005 - 2006)BUTROVICH 205
03/21/2006 03:30 PM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB489 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 489 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
March 21, 2006
3:48 p.m.
MEMBERS PRESENT
Senator Gene Therriault, Chair
Senator Thomas Wagoner, Vice Chair
Senator Charlie Huggins
Senator Bettye Davis
Senator Kim Elton
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CS FOR HOUSE BILL NO. 489(RLS)
"An Act relating to the treatment of charity events by the
Alaska Public Offices Commission and under the law governing
legislative ethics; and providing for an effective date."
MOVED SCS CSHB 489 (STA) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 489
SHORT TITLE: APOC/LEG ETHICS EXEMPTION: CHARITY EVENTS
SPONSOR(s): FINANCE
03/08/06 (H) READ THE FIRST TIME - REFERRALS
03/08/06 (H) RLS
03/14/06 (H) RLS AT 11:00 AM BELTZ 211
03/14/06 (H) Moved CSHB 489(RLS) Out of Committee
03/14/06 (H) MINUTE(RLS)
03/15/06 (H) RLS RPT CS(RLS) NT 4DP 2NR
03/15/06 (H) DP: COGHILL, HARRIS, KOHRING, ROKEBERG;
03/15/06 (H) NR: BERKOWITZ, GUTTENBERG
03/15/06 (H) TRANSMITTED TO (S)
03/15/06 (H) VERSION: CSHB 489(RLS)
03/16/06 (S) READ THE FIRST TIME - REFERRALS
03/16/06 (S) RLS
03/17/06 (S) STA REFERRAL REPLACED RLS REFERRAL
03/17/06 (S) STA WAIVED PUBLIC HEARING NOTICE, RULE
23
03/21/06 (S) STA AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
Sue Wright, Staff
Representative Mike Chenault
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Introduced HB 489
Joyce Anderson, Administrator
Select Committee on Legislative Ethics
P.O. Box 101468
Anchorage, AK 99510-1468
POSITION STATEMENT: Commented on HB 489
Tammy Kempton, Regulator of Lobbying
Alaska Public Offices Commission (APOC)
Department of Administration
PO Box 110200
Juneau, AK 99811-0200
POSITION STATEMENT: Commented on HB 489
ACTION NARRATIVE
CHAIR GENE THERRIAULT called the Senate State Affairs Standing
Committee meeting to order at 3:48:18 PM. Present were Senators
Thomas Wagoner, Charlie Huggins, Bettye Davis, Kim Elton and
Chair Gene Therriault.
CSHB 489(RLS)-APOC/LEG ETHICS EXEMPTION: CHARITY EVENTS
CHAIR GENE THERRIAULT announced HB 489 to be up for
consideration.
3:48:53 PM
SUE WRIGHT, Staff to Representative Mike Chenault, presented HB
489 on behalf of the House Finance Committee. It relates to the
issue of lobbyists giving donations of money or items to events
in which the proceeds are donated to 501(c)(3) charities.
Specifically it relates to the Fahrenkamp Golf Classic.
JOYCE ANDERSON, Administrator of the Select Committee on
Legislative Ethics, told members that in 1994 the ethics
committee issued Advisory Opinion 94-06, which allows
legislators and legislative staff to receive charitable
contributions from lobbyists as long as the contributions are on
behalf of a charity. Such contributions don't fall within the
gift statute restrictions because, technically, they're not
gifts to a legislator or legislative staff member. She clarified
that private individuals and organizations are not prohibited
from giving either.
She reported that the ethics committee supports the change based
on the aforementioned advisory opinion but that it had not met
formally on this topic in particular.
MS. ANDERSON offered the opinion that there ought to be a
disclosure when gifts are received for pre-approved charity
events. It would be similar to disclosures that are required now
from legislators and staff when they or a family member receive
a gift for travel hospitality. Disclosures are due within 30
days and provide accountability and transparency for both sides.
CHAIR THERRIAULT summarized that it isn't an issue with the
ethics law; rather it's an inconsistency with the lobbying
statute.
MS. ANDERSON agreed.
3:52:51 PM
TAMMY KEMPTON, Regulator of Lobbying for APOC, advised that she
testified when the bill was heard in the House Rules Committee
and she had nothing to add unless amendments were forthcoming.
She informed the committee that at this point the commission has
a neutral position and has submitted a zero fiscal note.
CHAIR THERRIAULT directed attention to page 4, line 10 and
questioned whether legislative employees ought to be
specifically included.
MS. KEMPTON said yes because the lobbying law prohibits a
lobbyist from doing anything that would cause anyone under AS
24.60.080 from breaking that law. If legislative employees
aren't specifically included and they solicit gifts then it's an
open question as to whether the employee has broken the law or
not.
CHAIR THERRIAULT noted that letters were recently sent from
legislative offices soliciting donations and more than likely
staff members were involved. If we want to allow the activity
then it ought to be clear that it's allowed, he said.
SENATOR KIM ELTON agreed and made the point that if the change
isn't made, it could be argued that the intention is that staff
are not included.
3:55:58 PM
CHAIR THERRIAULT moved to insert "or legislative employee" after
"legislator" on page 4, line 10. There was no objection and
Amendment 1 was adopted.
MS. WRIGHT asked about non-political charitable events such as
"Thanksgiving in March" and the "Legislative Skits" that aren't
held in a state facility.
CHAIR THERRIAULT asked Ms. Kempton to comment on the issue.
MS. KEMPTON said she wasn't comfortable responding on issues
unrelated to lobbying law, but she interpreted "in a state
facility" to mean that if the legislator or legislative employee
was in the state facility they could ask for the contribution.
She didn't interpret it to mean that the charity event would
take place in the state facility.
CHAIR THERRIAULT asked Ms. Anderson to speak to the
interpretation of that language.
MS. ANDERSON said that particular language was included in 2001
legislation. A legislator or staff member may solicit and
receive charitable donations anytime anyplace. The language "in
the state facility" means where the solicitation occurs and not
where the event takes place.
3:59:01 PM
CHAIR THERRIAULT directed attention to page 6, line 29, which
deals with calendar year limits and posed a hypothetical
situation. He went to "Thanksgiving in March" and spent money to
bid in several silent auctions. He also entered his name in a
drawing and paid nothing to do so. He won the drawing and the
prize was a cruise. He asked whether the prize would fall under
the charitable limit or, whether it would even be considered a
gift since the drawing was a game of chance.
MS. ANDERSON replied a past advisory opinion says that receiving
a gift from a game of chance or from a random drawing would not
fall under the $250 gift limit. She recommended deleting the
words "or gifts received at" and leaving the word "ticket." When
this was passed she recalled that the discussion was to place
the $250 limit on lobbyists when giving gifts to legislators for
charity events.
4:01:03 PM
SENATOR ELTON observed that this year a lobbyist won the cruise
and subsequently gave it to a second place person who wasn't a
legislator or a legislative employee. If that language is
removed he questioned whether it would allow the lobbyist to
give the cruise to a legislator.
MS. ANDERSON replied no it wouldn't. The gift statute prohibits
a legislator or legislative staff member from receiving a gift
from a lobbyist during the session that is valued at more than
$250.
CHAIR THERRIAULT stated that because this is the last committee
of referral, he didn't want to delete the language and in doing
so trigger an unintended consequence. He questioned whether
leaving the language might be a problem in terms of interpreting
that a game of chance is not a gift.
MS. ANDERSON replied that's possible and it's possible that the
intent for this was a gift other than those that would be
available to everyone else - gifts that would be specific to
legislators and staff.
4:03:07 PM
CHAIR THERRIAULT raised the question of a putting tournament
goody bag containing golf tees, golf balls and a cap. Because
it's not clear how that kind of gift might be impacted, perhaps
the language should be left in.
MS. ANDERSON clarified that $250 is the gift limit from one
person so if the contents of the goody bag came from four
corporations, she couldn't see how it would add up to the $250
limit.
CHAIR THERRIAULT remarked that it would work either way so he'd
play it safe and keep the language in.
Directing attention to page 4, line 18 he asked if the new text
ought to include "legislator or legislative employee."
MS. ANDERSON said it's clear to her but it could go either way.
SENATOR ELTON said he wasn't sure it would be necessary.
CHAIR THERRIAULT said if it's clear then no change is necessary.
He then asked Ms. Wright whether the effective date ought to be
retroactive.
MS. WRIGHT replied she already sent 263 letters and that could
be construed as 263 violations. However, the entire event is
done with goodness of heart and she couldn't see anyone filing a
complaint. If they do then shame on them, she said.
4:07:53 PM
CHAIR THERRIAULT asked Ms. Anderson for her opinion.
MS. ANDERSON replied if no lobbyist contributions have been
accepted then the immediate effective date is fine, but if
lobbyist contributions have already been received then the
effective date ought to be retroactive.
CHAIR THERRIAULT noted that no contributions have been accepted
and hopefully this will be signed into law before there's an
issue.
He noted there were no further questions and mentioned the two
zero fiscal notes.
SENATOR THOMAS WAGONER motioned to report SCS CSHB 489(STA) and
attached fiscal notes from committee with individual
recommendations. There being no objection, it was so ordered.
There being no further business to come before the committee,
Chair Therriault adjourned the meeting at 4:09:19 PM.
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