Legislature(2007 - 2008)BELTZ 211

04/10/2008 10:00 AM Senate STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Meeting Continued from 04/09/08 --
+= HB 368 ETHICS: LEGISLATIVE & GOV/LT GOV TELECONFERENCED
Moved SCS CSHB 368(STA) Out of Committee
+ HJR 41 REPEAL OF SEC. 511 OF P.L. 109-222 TELECONFERENCED
Moved CSHJR 41(RLS) Out of Committee
Bills Previously Heard/Scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         April 10, 2008                                                                                         
                           10:16 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lesil McGuire, Chair                                                                                                    
Senator Gary Stevens, Vice Chair                                                                                                
Senator Hollis French                                                                                                           
Senator Lyda Green                                                                                                              
Senator Con Bunde                                                                                                               
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR HOUSE BILL NO. 368(FIN) am                                                                                               
"An  Act  amending  the  Legislative Ethics  Act  to  modify  the                                                               
limitation  on   political  fund   raising  by   legislators  and                                                               
legislative  employees  during  legislative  sessions,  to  allow                                                               
legislators  and legislative  employees to  accept certain  gifts                                                               
from  lobbyists, to  clarify  the Legislative  Ethics  Act as  it                                                               
relates to  legislative volunteers  and educational  trainees, to                                                               
reduce the  frequency of publication  of summaries by  the Select                                                               
Committee  on Legislative  Ethics, and  to revise  procedures and                                                               
fines related to  the late filing of disclosures  required by the                                                               
Legislative Ethics Act."                                                                                                        
     MOVED SCS CSHB 368(STA) OUT OF COMMITTEE                                                                                   
                                                                                                                                
CS FOR HOUSE JOINT RESOLUTION NO. 41(RLS)                                                                                       
Urging  the United  States Congress  to repeal  sec. 511  of P.L.                                                               
109-222  (Tax  Increase  Prevention  and  Reconciliation  Act  of                                                               
2005).                                                                                                                          
     MOVED CSHJR 41 (RLS) OUT OF COMMITTEE                                                                                      
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 368                                                                                                                  
SHORT TITLE: ETHICS: LEGISLATIVE & GOV/LT GOV                                                                                   
SPONSOR(S): STATE AFFAIRS                                                                                                       
                                                                                                                                
02/19/08       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/19/08       (H)       STA, JUD, FIN                                                                                          
02/26/08       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
02/26/08       (H)       Moved CSHB 368(STA) Out of Committee                                                                   
02/26/08       (H)       MINUTE(STA)                                                                                            
02/27/08       (H)       STA RPT CS(STA) NT 3DP 4NR                                                                             
02/27/08       (H)       DP: ROSES, GRUENBERG, LYNN                                                                             
02/27/08       (H)       NR: JOHNSON, JOHANSEN, COGHILL, DOLL                                                                   
03/19/08       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
03/19/08       (H)       Heard & Held                                                                                           
03/19/08       (H)       MINUTE(JUD)                                                                                            
03/26/08       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
03/26/08       (H)       Moved CSHB 368(JUD) Out of Committee                                                                   
03/26/08       (H)       MINUTE(JUD)                                                                                            
03/27/08       (H)       JUD RPT CS(JUD) NT 4DP 3NR                                                                             
03/27/08       (H)       DP: GRUENBERG, LYNN, HOLMES, RAMRAS                                                                    
03/27/08       (H)       NR: COGHILL, DAHLSTROM, SAMUELS                                                                        
03/31/08       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
03/31/08       (H)       Heard & Held                                                                                           
03/31/08       (H)       MINUTE(FIN)                                                                                            
04/02/08       (H)       FIN AT 8:30 AM HOUSE FINANCE 519                                                                       
04/02/08       (H)       Moved CSHB 368(FIN) Out of Committee                                                                   
04/02/08       (H)       MINUTE(FIN)                                                                                            
04/03/08       (H)       FIN RPT CS(FIN) NT 7DP 2NR 1AM                                                                         
04/03/08       (H)       DP: HAWKER, CRAWFORD, JOULE, KELLY,                                                                    
                         NELSON, GARA, MEYER                                                                                    
04/03/08       (H)       NR: STOLTZE, CHENAULT                                                                                  
04/03/08       (H)       AM: THOMAS                                                                                             
04/05/08       (H)       TRANSMITTED TO (S)                                                                                     
04/05/08       (H)       VERSION: CSHB 368(FIN) AM                                                                              
04/06/08       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/06/08       (S)       STA                                                                                                    
04/08/08       (S)       STA AT 9:00 AM BELTZ 211                                                                               
04/08/08       (S)       Scheduled But Not Heard                                                                                
04/09/08       (S)       STA AT 9:00 AM BELTZ 211                                                                               
04/09/08       (S)       -- Rescheduled from 04/08/08 --                                                                        
04/10/08       (S)       STA AT 10:00 AM BELTZ 211                                                                              
                                                                                                                                
BILL: HJR 41                                                                                                                  
SHORT TITLE: REPEAL OF SEC. 511 OF P.L. 109-222                                                                                 
SPONSOR(S): RULES                                                                                                               
                                                                                                                                
04/07/08       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/07/08       (H)       RLS                                                                                                    
04/08/08       (H)       RLS AT 4:00 PM CAPITOL 120                                                                             
04/08/08       (H)       Moved CSHJR 41(RLS) Out of Committee                                                                   
04/08/08       (H)       MINUTE(RLS)                                                                                            
04/09/08       (H)       RLS RPT CS(RLS) 5DP                                                                                    
04/09/08       (H)       DP:   KERTTULA,   JOHNSON,   FAIRCLOUGH,                                                               
                        SAMUELS, COGHILL                                                                                        
04/09/08       (H)       TRANSMITTED TO (S)                                                                                     
04/09/08       (H)       VERSION: CSHJR 41(RLS)                                                                                 
04/09/08       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/09/08       (S)       STA                                                                                                    
04/10/08       (S)       STA AT 10:00 AM BELTZ 211                                                                              
                                                                                                                                
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JOYCE ANDERSON, Administrator                                                                                                   
Select Committee on Legislative Ethics                                                                                          
Juneau AK                                                                                                                       
POSITION STATEMENT: Answered questions regarding HB 368.                                                                      
                                                                                                                                
DENEEN TUCK, Staff                                                                                                              
to Representative Max Gruenberg                                                                                                 
Alaska State Legislature                                                                                                        
Juneau AK                                                                                                                       
POSITION STATEMENT: Presented HJR 41.                                                                                         
                                                                                                                                
KIM GARNERO, Director                                                                                                           
Division of Finance                                                                                                             
Department of Administration                                                                                                    
Juneau AK                                                                                                                       
POSITION STATEMENT: Presented HJR 41.                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  LESIL MCGUIRE  called the  Senate  State Affairs  Standing                                                             
Committee  meeting  to  order at  10:16:55  AM.  Senators  Bunde,                                                             
Stevens, French, and  McGuire were present at the  call to order.                                                               
Senator Green arrived  later. The meeting is  a continuation from                                                               
yesterday.                                                                                                                      
                                                                                                                                
            HB 368-ETHICS: LEGISLATIVE & GOV/LT GOV                                                                         
                                                                                                                              
10:17:35 AM                                                                                                                   
CHAIR  MCGUIRE  announced  the consideration  of  HB  368.  [CSHB
368(FIN) AM was before the  committee.] She asked Ms. Anderson to                                                               
tell the committee what this bill needs to accomplish.                                                                          
                                                                                                                                
JOYCE  ANDERSON, Administrator,  Select Committee  on Legislative                                                               
Ethics, said Sections  1 and 2 of Version N.a  were deleted by an                                                               
amendment  at  the  previous  hearing.  Section  3  is  the  gift                                                               
statute, and  her committee recommends relaxing  it for immediate                                                               
family  members  "because of  the  strict  prohibition last  year                                                               
regarding gifts  from lobbyists -- even  immediate family members                                                               
of legislative staffers  were not allowed to receive  a gift from                                                               
their  spouse or  their  sibling  or parent.  And  so the  ethics                                                               
committee  made  a  recommendation  that that  is  an  unintended                                                               
consequence, and so we're recommending [it] be changed."                                                                        
                                                                                                                                
10:18:51 AM                                                                                                                   
SENATOR FRENCH  asked, "Does that  pertain to just  those spouses                                                               
and immediate  family members  who are  lobbyists, or  all family                                                               
members?"                                                                                                                       
                                                                                                                                
MS.  ANDERSON said  it pertains  to  just those  spouses who  are                                                               
lobbyists. "Lobbyist  spouses or immediate family  members, which                                                               
would  be a  parent/child and  siblings. Also,  since legislators                                                               
are not allowed, by statute last year,  to have a spouse who is a                                                               
[registered lobbyist], they were not included in this."                                                                         
                                                                                                                                
CHAIR MCGUIRE said,  "We haven't done anything to  change the old                                                               
rule that you  can give gifts to each other  within a family unit                                                               
with no lobbyist,  so long as they are not  intended to influence                                                               
you."  "This is  simply for  the  case of  a member  that has  an                                                               
immediate family member who's a lobbyist?"                                                                                      
                                                                                                                                
MS. ANDERSON  said that is  correct. Section 4 refers  to interns                                                               
and volunteers,  "and all we  did in  that section was  split the                                                               
two; there's absolutely no language  change at all." Section 5 is                                                               
the split of Section 4 and  5. Section 6 changes the summaries of                                                               
public decisions, which  have to do with  complaints and advisory                                                               
opinions  from a  semiannual publication  to an  annual one.  The                                                               
committee has  not published semiannual  reports since  2001, "so                                                               
it is  a change to just  make it to current  practice." Section 7                                                               
was recommended by  the committee to add a  third fine structure.                                                               
There is  one fine of  $2.00 per day up  to a maximum  of $100.00                                                               
for a late disclosure, and a  $25.00 fine for an inadvertent late                                                               
disclosure. "The ethics  committee is suggesting that  there be a                                                               
very hefty  fine when there  is a willful late  disclosure." That                                                               
will go to $100.00  per day and up to a  maximum of $2,500.00. It                                                               
is based on an experience from last year.                                                                                       
                                                                                                                                
10:21:48 AM                                                                                                                   
CHAIR MCGUIRE said Amendment 1  deleted portions of the bill that                                                               
are in HB 305. She withdrew Amendment 2 from the prior meeting.                                                                 
                                                                                                                                
SENATOR STEVENS asked about the definition of willful.                                                                          
                                                                                                                                
MS.  ANDERSON said  there is  a definition  in statute.  A former                                                               
legislator  refused to  file the  end-of-service disclosures.  He                                                               
refused a  certified letter.  He signed for  the second  one, and                                                               
said he  would not file  the disclosures. The committee  issued a                                                               
fine, and  he will  not pay it.  He hung up  on her.  Because the                                                               
maximum  fine  was  only  $100.00 for  each  fine,  the  Attorney                                                               
General's  office will  not  follow  up because  it  is not  over                                                               
$500.00. The ethics committee feels  there needs to be some teeth                                                               
in the ethics law for those leaving.                                                                                            
                                                                                                                                
10:24:36 AM                                                                                                                   
SENATOR FRENCH  moved to report  CSHB 368(FIN), as  amended, from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s). There  being no objection,  SCS CSHB 368(STA)  moved out                                                               
of committee.                                                                                                                   
                                                                                                                                
The committee took an at-ease at 10:25:28 AM.                                                                                 
                                                                                                                                
           HJR 41-REPEAL OF SEC. 511 OF P.L. 109-222                                                                        
                                                                                                                                
10:27:51 AM                                                                                                                   
CHAIR MCGUIRE  announced the consideration of  HJR 41.[Before the                                                               
committee was CSHJR 41(RLS).]                                                                                                   
                                                                                                                                
DENEEN TUCK, Staff to Representative  Max Gruenberg, Alaska State                                                               
Legislature,  said the  Fairbanks mayor  alerted them  that there                                                               
were  strong implications  to  Section 511  of  the Tax  Increase                                                               
Prevention and  Reconciliation Act.  This provision was  added by                                                               
Congress in  2005. If it remains  in law in 2011,  the state will                                                               
start withholding an  extra 3 percent from vendors to  pay to the                                                               
federal  government for  Alaska communities  that make  more than                                                               
$100 million  on goods and  services. It  would cost the  city of                                                               
Anchorage $250,000  to start  replacing the  system, and  then it                                                               
would cost  them from  $100,000 to $200,000  per year  to operate                                                               
it. Anchorage  would have  to hire another  person. It  will take                                                               
away procurement cards. She provided  a handout estimating a cost                                                               
of $6.2 billion.                                                                                                                
                                                                                                                                
10:30:05 AM                                                                                                                   
KIM  GARNERO,  Director,  Division   of  Finance,  Department  of                                                               
Administration,  said that  figure is  nationwide for  all state,                                                               
federal, and local governments.                                                                                                 
                                                                                                                                
MS. TUCK said it could cost the state quite a bit of money.                                                                     
                                                                                                                                
SENATOR FRENCH asked who might be opposed to this.                                                                              
                                                                                                                                
MS. TUCK said only federal  people. The cities, universities, and                                                               
school districts are in support of it.                                                                                          
                                                                                                                                
SENATOR FRENCH asked if there are any resolutions.                                                                              
                                                                                                                                
MS. TUCK  said she has  emails. The  only resolution was  a draft                                                               
and it came from the Fairbanks mayor.                                                                                           
                                                                                                                                
10:31:51 AM                                                                                                                   
MS. GARNERO said  she is a member of the  National Association of                                                               
State Auditors,  Controllers, and  Treasurers. It  represents all                                                               
50 states and passed a resolution  in 2006 to repeal this federal                                                               
law.                                                                                                                            
                                                                                                                                
SENATOR  GREEN  moved  to  report  HJR  41  from  committee  with                                                               
individual  recommendations and  attached  fiscal note(s).  There                                                               
being no objection, CSHJR 41(RLS) passed out of committee.                                                                      
                                                                                                                                
There being  no further  business to  come before  the committee,                                                               
Chair McGuire adjourned the meeting at 10:32:39 AM.                                                                           

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