Legislature(2009 - 2010)BELTZ 105 (TSBldg)

03/02/2010 09:00 AM Senate STATE AFFAIRS


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 190 BIOMETRIC INFORMATION FOR ID TELECONFERENCED
Heard & Held
*+ SB 284 CAMPAIGN EXPENDITURES TELECONFERENCED
Moved SB 284 Out of Committee
+ HJR 16 DISABLED VETERANS PROCUREMENT PREFERENCE TELECONFERENCED
Moved CSHJR 16(L&C) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         March 2, 2010                                                                                          
                           9:00 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Linda Menard, Chair                                                                                                     
Senator Kevin Meyer, Vice Chair                                                                                                 
Senator Hollis French                                                                                                           
Senator Albert Kookesh                                                                                                          
Senator Joe Paskvan                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 190                                                                                                             
"An Act relating to biometric information."                                                                                     
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
SENATE BILL NO. 284                                                                                                             
"An Act relating  to state election campaigns, the  duties of the                                                               
Alaska Public  Offices Commission,  the reporting  and disclosure                                                               
of  expenditures  and  independent expenditures,  the  filing  of                                                               
reports,  and the  identification  of  certain communications  in                                                               
state election campaigns; and providing for an effective date."                                                                 
                                                                                                                                
     - MOVED SB 284 OUT OF COMMITTEE                                                                                            
                                                                                                                                
CS FOR HOUSE JOINT RESOLUTION NO. 16(L&C)                                                                                       
Relating to federal procurement preferences for small businesses                                                                
in the state that are owned and controlled by service-disabled                                                                  
veterans.                                                                                                                       
                                                                                                                                
     - MOVED CSHJR 16(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 190                                                                                                                  
SHORT TITLE: BIOMETRIC INFORMATION FOR ID                                                                                       
SPONSOR(s): SENATOR(s) WIELECHOWSKI                                                                                             
                                                                                                                                
04/10/09       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/10/09       (S)       STA, JUD                                                                                               
03/02/10       (S)       STA AT 9:00 AM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 284                                                                                                                  
SHORT TITLE: CAMPAIGN EXPENDITURES                                                                                              
SPONSOR(s): JUDICIARY                                                                                                           
                                                                                                                                
02/19/10       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/19/10       (S)       STA, JUD                                                                                               
03/02/10       (S)       STA AT 9:00 AM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HJR 16                                                                                                                  
SHORT TITLE: DISABLED VETERANS PROCUREMENT PREFERENCE                                                                           
SPONSOR(s): GATTO                                                                                                               
                                                                                                                                
02/09/09       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/09/09       (H)       MLV, L&C                                                                                               
02/24/09       (H)       MLV AT 1:00 PM BARNES 124                                                                              
02/24/09       (H)       Moved Out of Committee                                                                                 
02/24/09       (H)       MINUTE(MLV)                                                                                            
02/25/09       (H)       MLV RPT 6DP                                                                                            
02/25/09       (H)       DP: KAWASAKI, OLSON, HARRIS, LYNN,                                                                     
                         BUCH, GATTO                                                                                            
03/27/09       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/27/09       (H)       Heard & Held                                                                                           
03/27/09       (H)       MINUTE(L&C)                                                                                            
04/03/09       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/03/09       (H)       Moved CSHJR 16(L&C) Out of Committee                                                                   
04/03/09       (H)       MINUTE(L&C)                                                                                            
04/06/09       (H)       L&C RPT CS(L&C) 3DP 2NR                                                                                
04/06/09       (H)       DP: LYNN, COGHILL, OLSON                                                                               
04/06/09       (H)       NR: NEUMAN, HOLMES                                                                                     
02/17/10       (H)       TRANSMITTED TO (S)                                                                                     
02/17/10       (H)       VERSION: CSHJR 16(L&C)                                                                                 
02/18/10       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/10       (S)       STA                                                                                                    
03/02/10       (S)       STA AT 9:00 AM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR BILL WIELECHOWSKI                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Sponsor of SB 190.                                                                                        
                                                                                                                                
JASON GIAIMO, representing himself                                                                                              
POSITION STATEMENT: Supported SB 190.                                                                                         
                                                                                                                                
BRENDA NATION                                                                                                                   
American Council of Life Insurers (ACLI)                                                                                        
Washington, D.C.                                                                                                                
POSITION STATEMENT: Opposed SB 190.                                                                                           
                                                                                                                                
JEFFREY MITTMAN, Executive Director                                                                                             
ACLU - Alaska                                                                                                                   
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Supported SB 190.                                                                                         
                                                                                                                                
MARILYN RUSSELL, President                                                                                                      
League of Women Voters - Alaska (LWV)                                                                                           
Fairbanks, AK                                                                                                                   
POSITION STATEMENT: Supported SB 284.                                                                                         
                                                                                                                                
MATT WALLACE, Executive Director                                                                                                
Alaska Public Interest Research Group (AKPIRG)                                                                                  
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Supported SB 284.                                                                                         
                                                                                                                                
JOHN PTACIN, Attorney                                                                                                           
Civil Division                                                                                                                  
Labor/State Affairs                                                                                                             
Department of Law                                                                                                               
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Provided information for SB 284.                                                                          
                                                                                                                                
KAREN SAWYER                                                                                                                    
Staff to Representative Carl Gatto                                                                                              
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Presented HJR 16 for the sponsor.                                                                       
                                                                                                                                
RIC DAVIDGE, National Chairman                                                                                                  
Economic Opportunities Committee for Vietnam Veterans of America                                                                
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Supported HJR 16.                                                                                         
                                                                                                                                
TIM WHEELER, National Director                                                                                                  
Economic Opportunities                                                                                                          
Veterans of Modern Warfare                                                                                                      
Washington D.C.                                                                                                                 
POSITION STATEMENT: Supported HJR 16.                                                                                         
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
9:00:34 AM                                                                                                                    
                                                                                                                                
CHAIR  LINDA  MENARD called  the  Senate  State Affairs  Standing                                                             
Committee meeting  to order at 9:00  a.m. Present at the  call to                                                               
order were Senators Paskvan, French, Meyer, Kookesh and Menard.                                                                 
                                                                                                                                
              SB 190-BIOMETRIC INFORMATION FOR ID                                                                           
                                                                                                                                
9:01:22 AM                                                                                                                    
CHAIR  MENARD  announced the  first  order  of business  to  come                                                               
before the committee would be SB 190.                                                                                           
                                                                                                                                
SENATOR BILL  WIELECHOWSKI, sponsor of  SB 190, said  the purpose                                                               
of SB  190 is to  update an  existing law, passed  unanimously in                                                               
2004, to  protect our  privacy rights.  The existing  law outlaws                                                               
the  collection, analysis  or storage  of a  law-abiding person's                                                               
genetic information  or DNA without  his or her  written consent.                                                               
Advances  in DNA  technology  have been  of  benefit to  society,                                                               
medicine  and law  enforcement but  also hold  the potential  for                                                               
misuse. DNA  is now  only one form  of biometric  information and                                                               
emerging  technologies  further   threaten  our  privacy  rights.                                                               
Physiological characteristics,  unique to  an individual,  can be                                                               
used  to obtain  information  about people  without consent.  For                                                               
example,  facial  recognition  technology   can  track  a  person                                                               
anywhere they go.  He pointed out that Great  Britain has cameras                                                               
set up  and tracks citizens  all over the country;  most Alaskans                                                               
would  find  that offensive.  Senator  Wielechowski  said he  was                                                               
motivated  to  sponsor  SB  190  after  being  approached  by  an                                                               
individual who  was refused admittance  to the  state accountancy                                                               
licensing exam  because he refused  to submit  to fingerprinting.                                                               
This man offered  his driver's license, social  security card and                                                               
passport but was told this was insufficient identification.                                                                     
                                                                                                                                
9:04:33 AM                                                                                                                    
SENATOR WIELECHOWSKI  said it is offensive  to treat law-abiding,                                                               
privacy-loving   Alaskans    like   criminals.    Once   scanned,                                                               
fingerprint data is often handed  over to private data management                                                               
firms, some  of which  sell personal  data sourced  from multiple                                                               
public and  private databases. Adding only  "fingerprints" to the                                                               
existing law protecting  our DNA, would still  allow companies to                                                               
collect   retinal   scan   information,   facial   characteristic                                                               
information  or other  private data.  Thus, the  term "biometric"                                                               
was used in drafting the law.                                                                                                   
                                                                                                                                
CHAIR  MENARD  said   she  understood  that  some   of  the  data                                                               
management firms are in Europe or East Asia.                                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI replied that is correct.                                                                                   
                                                                                                                                
SENATOR FRENCH  asked how the  practice of taking  photographs is                                                               
differentiated   from   unauthorized  collection   of   biometric                                                               
information.                                                                                                                    
                                                                                                                                
9:07:16 AM                                                                                                                    
SENATOR WIELECHOWSKI  said a facial  biometric system is  made up                                                               
of  three   components:  a  camera,   a  software   program  that                                                               
recognizes face geometry  such as placement of the  eyes and nose                                                               
and  a  system  capable  of classifying  all  those  elements  to                                                               
differentiate between people.                                                                                                   
                                                                                                                                
9:08:23 AM                                                                                                                    
CHAIR MENARD opened public testimony.                                                                                           
                                                                                                                                
JASON GIAIMO,  representing himself, said  two years ago  he went                                                               
to take the  final part of the CPA exam.  He was refused entrance                                                               
due to a lack of  proper identification, even though he presented                                                               
his driver's  license, passport and  more. Only  fingerprints, in                                                               
addition  to  other ID,  were  sufficient.  Through research,  he                                                               
found the  fingerprints would have  gone into a database  that is                                                               
transmitted  over  the internet  to  a  foreign data-mining  firm                                                               
called  Choice Point.  Choice Point  is the  largest supplier  of                                                               
information to over 7,000 different  companies including the IRS,                                                               
FBI and Department of Homeland  Security. He said big business is                                                               
masquerading as security.                                                                                                       
                                                                                                                                
9:12:25 AM                                                                                                                    
BRENDA  NATION, American  Council of  Life Insurers  (ACLI), said                                                               
the ACIL's  first concern  is the  broad definition  of biometric                                                               
information particularly in  Version P on page 3,  lines 3-4: "an                                                               
individual's     unique      behavioral     and     physiological                                                               
characteristics".  She  said  ACLI  does not  understand  how  to                                                               
comply  with this  broad definition  when collecting  information                                                               
about  a  person  wanting  to purchase  life  or  long-term  care                                                               
insurance.  Life insurers  are required  under federal  and state                                                               
privacy laws  and regulations to  obtain written consent  from an                                                               
individual  before obtaining  their  personal, non-public  health                                                               
information.   Those   regulations    include   prohibitions   on                                                               
disclosure  and  business exceptions  that  allow  ACLI to  serve                                                               
their  customers.  Exceptions  are  also  found  in  the  current                                                               
statutory definition  of DNA analysis which  allows life insurers                                                               
and others  to collect  and retain  certain information  to serve                                                               
customers.                                                                                                                      
                                                                                                                                
She  said   ACLI's  second  major   concern  is  that   under  AS                                                               
18.13.010(c), and  SB 190,  a person is  allowed to  revoke their                                                               
written consent  at any  time. She said  what information  SB 190                                                               
protects  or  does  not  is   unclear.  For  example,  would  the                                                               
information  included in  a person's  health history,  held by  a                                                               
doctor, be considered biometric  information? Without the ability                                                               
for the  insurer and  the doctor to  share information,  paying a                                                               
long-term care claim could be problematic.                                                                                      
                                                                                                                                
9:16:18 AM                                                                                                                    
Similarly,  should  a person  revoke  his  consent, an  insurance                                                               
issuer would  not know what  information is biometric  and should                                                               
be removed from the file, making  it difficult to comply with the                                                               
law. She  said she provided  two suggested amendments  to Senator                                                               
Wielechowski  regarding the  definition of  biometric information                                                               
that would alleviate ACLI's concerns with SB 190.                                                                               
                                                                                                                                
SENATOR  PASKVAN  said he  expected  that  an insurance  provider                                                               
tracks  a member  with a  plan  number and  a participant  number                                                               
rather than with biometric information.  He asked Ms. Nation what                                                               
she means  by using  biometric information to  track a  person in                                                               
relation to a payment for a medical procedure.                                                                                  
                                                                                                                                
MS.   NATION  said   ACLI  members   do  not   use  things   like                                                               
fingerprints,   hand   geometry,    voice   recognition,   facial                                                               
recognition or retinal scans. ACLI's  concern with the definition                                                               
of biometric  information is the  piece that  reads, "information                                                               
that   is  based   on  an   individual's  unique   behavioral  or                                                               
physiological characteristics". The language  is so broad that it                                                               
could potentially encompass other health information.                                                                           
                                                                                                                                
CHAIR  MENARD   asked  Senator  Wielechowski  if   he  feels  the                                                               
definition of "biometric information" is too broad.                                                                             
                                                                                                                                
SENATOR WIELECHOWSKI said the intent of  SB 190 is not to exclude                                                               
necessary health  insurance information  but to  protect people's                                                               
personal,   private  information   against  current   and  future                                                               
technologies.                                                                                                                   
                                                                                                                                
9:20:03 AM                                                                                                                    
He  said   he  would  not   object  to  taking   "behavioral  and                                                               
physiological characteristics" out of SB  190 if the committee is                                                               
concerned about the interpretation of those words.                                                                              
                                                                                                                                
SENATOR PASKVAN  suggested that  the assembly  of data  by others                                                               
and collecting that information  scientifically or by computer is                                                               
the troubling aspect.                                                                                                           
                                                                                                                                
SENATOR WIELECHOWSKI reiterated  that the intent of SB  190 is to                                                               
protect   Alaskan's  privacy   and  new   technologies  must   be                                                               
considered.  He  said   removing  "behavioral  and  physiological                                                               
characteristics  including"  out  of  SB   190  might  solve  any                                                               
problems. He  said he is happy  to work with Senator  Paskvan and                                                               
Senator Menard's offices and the insurance industry.                                                                            
                                                                                                                                
9:23:12 AM                                                                                                                    
CHAIR MENARD opened public testimony.                                                                                           
                                                                                                                                
JEFFREY  MITTMAN,   Executive  Director,   ACLU,  said   ACLU  is                                                               
generally  supportive of  the SB  190. ACLU  has one  concern: On                                                               
page 2, lines  11-12 of SB 190 would amend  AS 18.13.010(b)(6) to                                                               
read "for  background checks  as permitted  or required  by state                                                               
statute or by  federal statute or regulation".  ACLU's concern is                                                               
that that  exception is so  broad that it  completely encompasses                                                               
the rule.  ACLU hopes  to work with  Senator Wielechowski  or the                                                               
drafter  to ensure  that  necessary checks  are  allowed but  not                                                               
against an individual's consent or  knowledge. If such a revision                                                               
were made, ACLU would fully support SB 190.                                                                                     
                                                                                                                                
9:26:02 AM                                                                                                                    
CHAIR MENARD closed public testimony.                                                                                           
                                                                                                                                
CHAIR  MENARD announced  she would  hold SB  190 in  committee to                                                               
clear up some of the questions that were discussed.                                                                             
                                                                                                                                
                  SB 284-CAMPAIGN EXPENDITURES                                                                              
                                                                                                                                
9:26:38 AM                                                                                                                    
CHAIR MENARD announced the next  order of business to come before                                                               
the committee would be SB 284.                                                                                                  
                                                                                                                                
SENATOR FRENCH,  sponsor of  SB 284,  read the  following sponsor                                                               
statement:                                                                                                                      
                                                                                                                                
     In the  wake of the  recent U.S. Supreme  Court ruling,                                                                    
     Citizens  United v.  Federal  Election Commission,  the                                                                    
     Senate Judiciary Committee has  worked to determine the                                                                    
     changes  to  Alaska's  elections   laws  that  will  be                                                                    
     needed.    Corporations   have    been   banned    from                                                                    
     participating  in  Alaska's  elections  prior  to  this                                                                    
     ruling.  This means  many  of  Alaska's laws  regarding                                                                    
     disclosure  and  disclaimers  simply do  not  apply  to                                                                    
     corporations   making   independent   expenditures   to                                                                    
     support or oppose specific candidates in elections.                                                                        
                                                                                                                                
     Testimony  from  Legislative Legal  Services  attorneys                                                                    
     and from  the Alaska  Department of Law  indicated that                                                                    
     changes would be needed to  Alaska's campaign laws, and                                                                    
     this  bill  was  subsequently drafted  to  address  the                                                                    
     concerns  raised  by  the attorneys  and  by  committee                                                                    
     members.                                                                                                                   
                                                                                                                                
     Senate Bill  284 amends state election  laws to clarify                                                                    
     that  corporations   are  covered  by   all  applicable                                                                    
     reporting   requirements.   It  expands   communication                                                                    
     identification   requirements    to   ensure   accurate                                                                    
     reporting of top contributors,  to require the approval                                                                    
     of  the  content  by  the   principal  officer  of  the                                                                    
     corporation,   and  to   require  statements   in  each                                                                    
     communication that  its content  has not  authorized or                                                                    
     approved  by the  candidate. It  also speeds  reporting                                                                    
     requirements  for  communications expenditures  in  the                                                                    
     last  nine days  of the  election so  that expenditures                                                                    
     over $250 must be reported within 24 hours.                                                                                
                                                                                                                                
     Recent  opinion  surveys   show  broad  disapproval  by                                                                    
     Americans across  party lines for the  decision reached                                                                    
     by  the   U.S.  Supreme  Court.  In   order  to  retain                                                                    
     Alaskan's  trust  in  our  system   it  is  vital  that                                                                    
     legislation  be   passed  this  year  to   ensure  that                                                                    
     corporations spending money  to influence elections are                                                                    
     at least required  to disclose it in  a timely fashion.                                                                    
     I urge you to support Senate Bill 284.                                                                                     
                                                                                                                                
SENATOR MEYER  said the  U.S. Supreme  Court ruling  pertained to                                                               
corporations  and  unions.  He  asked  why  Senator  French  only                                                               
addressed corporations in his sponsor statement.                                                                                
                                                                                                                                
SENATOR FRENCH replied  that was inadvertent. SB  284 defaults to                                                               
a  definition  of 'person'  which  under  Alaska law  encompasses                                                               
individuals,    candidates,     groups,    non-group    entities,                                                               
corporations  and unions.  The  intent is  to  bring all  players                                                               
under the same set of laws and rules.                                                                                           
                                                                                                                                
9:30:03 AM                                                                                                                    
CHAIR  MENARD asked  how other  states are  reacting to  the U.S.                                                               
Supreme Court ruling.                                                                                                           
                                                                                                                                
SENATOR  FRENCH replied  that states  are hurrying  to adopt  new                                                               
disclosure  and  disclaimer  laws prior  to  upcoming  elections.                                                               
Alaska's  Attorney  General  (AG)  has  issued  an  opinion  that                                                               
largely endorses many  requirements that SB 284  puts into place.                                                               
SB  284   has  two  main   points:  disclosure   and  disclaimer.                                                               
Disclosure  means   reporting  to   the  Alaska   Public  Offices                                                               
Commission (APOC) what one is  taking in and spending. Disclaimer                                                               
means putting  a message on  the communication itself  saying who                                                               
paid for it.  Under SB 284, the top five  contributors to a group                                                               
that  paid  for   a  communication  would  have   to  list  their                                                               
contributions.                                                                                                                  
                                                                                                                                
9:32:17 AM                                                                                                                    
SENATOR  MEYER asked  if SB  284 would  affect all  corporations,                                                               
regardless of size.                                                                                                             
                                                                                                                                
SENATOR FRENCH replied yes.                                                                                                     
                                                                                                                                
SENATOR MEYER asked what the  disclosure requirements are for the                                                               
corporations.                                                                                                                   
                                                                                                                                
SENATOR  FRENCH  replied  that  on page  3,  lines  7-12  require                                                               
disclosure  of  the   candidate  or  the  title   of  the  ballot                                                               
proposition being supported  or opposed and the  name and address                                                               
of  each  officer  or  director,  when  applicable.  On  page  3,                                                               
paragraph 5,  beginning on  line 14,  requires the  name, address                                                               
and   principal  occupation   and  employer   of  an   individual                                                               
contributor. If it  is a group, non-group  entity or corporation,                                                               
the name and address of the  contributor and the name and address                                                               
of each officer and director of the contributor is required.                                                                    
                                                                                                                                
9:34:38 AM                                                                                                                    
SENATOR MEYER  asked about the  requirement for each  officer and                                                               
director on  Page 3, line  11.  He  provided an example  of Carrs                                                               
Safeway  contributing to  a  campaign to  pass  school bonds  and                                                               
asked  if Carrs  Safeway would  have  to list  all directors  and                                                               
officers nationwide or just in Alaska.                                                                                          
                                                                                                                                
SENATOR FRENCH replied that Carrs  Safeway would have to list the                                                               
officers and  directors of whatever  subdivision gave  the money.                                                               
He  provided another  example using  BP. Whichever  entity of  BP                                                               
"writes  the  check",  such  as  BP Alaska,  BP  National  or  BP                                                               
International, must list its directors and officers.                                                                            
                                                                                                                                
SENATOR MEYER asked how SB 284 would apply to unions.                                                                           
                                                                                                                                
SENATOR FRENCH replied  that the U.S. Supreme  Court decision and                                                               
SB 284  do not  effect contributions  to candidates.  The Supreme                                                               
Court  decision  opened  up   independent  expenditures  for  and                                                               
against  candidates  by  corporations  and  unions.  Corporations                                                               
still cannot give  any candidate money but can  support or oppose                                                               
candidates independently on TV, in print or radio.                                                                              
                                                                                                                                
SENATOR MEYER asked if there is a dollar amount.                                                                                
                                                                                                                                
SENATOR FRENCH responded no.                                                                                                    
                                                                                                                                
SENATOR  MEYER asked  what the  Teamsters, for  example, need  to                                                               
disclose if they want to support a candidate.                                                                                   
                                                                                                                                
SENATOR FRENCH replied that the  Teamsters would have to disclose                                                               
the name and  address of each officer and director  of the entity                                                               
that wrote the check; for example, Teamsters Alaska Local 959.                                                                  
                                                                                                                                
9:37:46 AM                                                                                                                    
SENATOR MEYER asked  Senator French to explain page  3, lines 13-                                                               
17, about the  aggregate amount not exceeding $100.  He asked why                                                               
all contributions,  regardless of  amount, aren't required  to be                                                               
disclosed.                                                                                                                      
                                                                                                                                
SENATOR  FRENCH replied  that the  report  of contributions  must                                                               
contain the  aggregate amount  of all  contributions made  to the                                                               
person. For all  contributions that exceed $100,  the report must                                                               
include the date  of the contribution and  the amount contributed                                                               
by each  contributor. An individual contributor's  name, address,                                                               
principal  occupation   and  employer   must  be  listed.   If  a                                                               
corporation  is  contributing,  the  name  and  address  of  each                                                               
officer and director is required.                                                                                               
                                                                                                                                
SENATOR  MEYER   said  currently  candidates  can   disclose  all                                                               
contributions.                                                                                                                  
                                                                                                                                
SENATOR  FRENCH   said  candidates  have  to   disclose  all  the                                                               
contributions and  the name. Some candidates  voluntarily add the                                                               
occupation  and employer  for all  contributions and  others wait                                                               
until the threshold is hit.                                                                                                     
                                                                                                                                
SENATOR MEYER  asked if Senator  French thinks SB 284  tracks the                                                               
current process.                                                                                                                
                                                                                                                                
SENATOR FRENCH replied yes.                                                                                                     
                                                                                                                                
SENATOR PASKVAN referred to page  3, paragraph 5, lines 13-17 and                                                               
asked  for   confirmation  that  a   legal  entity,  such   as  a                                                               
corporation, would  be required to divulge  whether the employees                                                               
of that  corporation are contributing  or if the  president alone                                                               
is utilizing its general funds.                                                                                                 
                                                                                                                                
9:40:56 AM                                                                                                                    
SENATOR  FRENCH  replied  that  Senator  Paskvan's  analysis  was                                                               
correct.                                                                                                                        
                                                                                                                                
SENATOR MEYER  referred to Section 11  of SB 284 on  page 5, line                                                               
23 which  says "include  a statement  from the  principal officer                                                               
approving  the  communication".  He  asked  what  Senator  French                                                               
envisions as far as a statement from the principal officer.                                                                     
                                                                                                                                
SENATOR  FRENCH  responded  that   people  are  familiar  with  a                                                               
statement following  a TV ad,  such as, "I am  Senator So-and-so,                                                               
and I  approve this ad."  He said the intention  of SB 284  is to                                                               
make certain that  voters hear from the principal  officer or the                                                               
person bringing the advertisement forth.                                                                                        
                                                                                                                                
SENATOR MEYER  asked if a  corporation's local  presiding officer                                                               
in Alaska  would be at the  end of a  TV ad or, for  example, the                                                               
president of Conoco Phillips in Houston.                                                                                        
                                                                                                                                
SENATOR FRENCH replied with an  example: If Exxon Alaska made the                                                               
ad, Marty Massey  would make the statement; if it's  Exxon USA or                                                               
Exxon  Global, whoever  rules that  particular domain  would make                                                               
the statement.  The same applies  for unions. It  helps establish                                                               
accountability.                                                                                                                 
                                                                                                                                
SENATOR MEYER said he does not  disagree but more than likely the                                                               
money came from Houston, London  or Ohio. Corporations are so big                                                               
that you can get lost in the maze.                                                                                              
                                                                                                                                
9:43:54 AM                                                                                                                    
SENATOR FRENCH  said Senator  Meyer is  anticipating some  of the                                                               
difficulties of  the new landscape and  SB 284 will not  stay its                                                               
present  form  for  long  before more  changes  will  be  needed.                                                               
However, something needs to get on the books.                                                                                   
                                                                                                                                
SENATOR MEYER said he feels full disclosure is always best.                                                                     
                                                                                                                                
CHAIR MENARD said  she is concerned about the  requirement that a                                                               
board of  directors must report  all names and asked  if officers                                                               
and secretaries must be named.                                                                                                  
                                                                                                                                
SENATOR FRENCH replied yes.                                                                                                     
                                                                                                                                
CHAIR MENARD said doing so could  be cumbersome. She asked if the                                                               
recording  criteria   for  corporations   is  identical   to  the                                                               
statutory requirements for other non-corporate groups.                                                                          
                                                                                                                                
SENATOR FRENCH said the intention is to make them all equal.                                                                    
                                                                                                                                
9:45:51 AM                                                                                                                    
MARILYN  RUSSELL,  President, League  of  Women  Voters -  Alaska                                                               
(LWV) said  LWV supports SB 284.  The goals of a  campaign system                                                               
should  be: to  ensure  the  public's right  to  know, to  combat                                                               
corruption and  undue influence, to enable  candidates to compete                                                               
more  equitably  and  to promote  citizen  participation  in  the                                                               
political process.  The LWV was  disappointed in the  recent U.S.                                                               
Supreme  Court  decision  and  polls   show  that  eight  in  ten                                                               
Americans  oppose  the  decision  to  allow  corporate  political                                                               
spending.  Alaska's campaign  laws  must be  amended, before  the                                                               
upcoming  primary   and  general   elections,  to   require  full                                                               
disclosure of  campaign contributions  by corporations  and labor                                                               
unions  which  are  currently not  covered  under  existing  laws                                                               
regarding disclosure and disclaimer.  Citizens should know who is                                                               
spending  money  supporting  or opposing  candidates  and  ballot                                                               
issues.  The information  should be  available with  the campaign                                                               
communication itself.                                                                                                           
                                                                                                                                
9:48:06 AM                                                                                                                    
MATT   WALLACE,  Executive   Director,  Alaska   Public  Interest                                                               
Research Group  (AKPIRG) said getting  something on the  books to                                                               
mitigate undue  spending in upcoming  campaigns and  elections is                                                               
critical. AKPIRG is  encouraged to see that SB  284 would require                                                               
the same type  of disclosure for independent  corporate and union                                                               
spending that  is currently  required for  campaign contributions                                                               
to candidates.  AKPIRG wants citizens  to know who is  paying for                                                               
attack  ads.  AKPRIG supports  decreasing  the  influence of  big                                                               
money  in  politics,  leveling  the  playing  field,  and  giving                                                               
citizens a voice  in the political process.  AKPIRG  is in strong                                                               
support of SB 284.                                                                                                              
                                                                                                                                
9:50:47 AM                                                                                                                    
JOHN PTACIN,  Attorney, Department of  Law, said his  main client                                                               
is the  Alaska Public Offices  Commission (APOC). He  said Alaska                                                               
may   not  prohibit   independent   expenditures  attenuated   to                                                               
political  speech outright.  That  changes the  landscape of  the                                                               
law. Currently  some disclosure and  disclaimer laws do  apply to                                                               
corporations, labor  unions and  companies attempting to  make an                                                               
independent expenditure  in a candidate  election. Other  laws do                                                               
not apply  because when legislation  was passed,  the legislature                                                               
did  not   contemplate  corporations  and  labor   unions  making                                                               
independent   expenditures   in   candidate  elections.   An   AG                                                               
memorandum, issued  about 10 days  ago, determined that  the true                                                               
source of  funds is an  issue for corporations, labor  unions and                                                               
companies   making   independent    expenditures   in   candidate                                                               
elections.                                                                                                                      
                                                                                                                                
9:53:26 AM                                                                                                                    
SENATOR  FRENCH  asked  Mr.  Ptacin  if anything  in  SB  284  is                                                               
inconsistent with the opinion put out by the AG's office.                                                                       
                                                                                                                                
MR.  PTACIN replied  that he  does not  find any  inconsistencies                                                               
between SB 284 and the AG's memo.                                                                                               
                                                                                                                                
CHAIR MENARD closed public testimony.                                                                                           
                                                                                                                                
SENATOR PASKVAN  said Senator French should  be commended because                                                               
the  change in  the legal  landscape following  the January  2010                                                               
U.S. Supreme  Court decision leaves  potential for  inequities in                                                               
the upcoming  election. A legal  entity such as a  corporation or                                                               
union should stay out of the  political debate if they don't want                                                               
to disclose  or disclaim. Citizens  have a  right to know  and SB
284 should be passed.                                                                                                           
                                                                                                                                
SENATOR  MEYER said  he  agrees with  Senator  Paskvan. His  only                                                               
concern  is that  SB 284  needs some  cleanup so  that unions  or                                                               
corporations know  the rules if  they want to participate  in the                                                               
passage of school bonds, for example.                                                                                           
                                                                                                                                
9:56:11 AM                                                                                                                    
SENATOR  MEYER  moved  to  report  SB  284  from  committee  with                                                               
individual  recommendations and  attached  fiscal note(s).  There                                                               
being no objection, the motion carried.                                                                                         
                                                                                                                                
At ease from 9:56 a.m. to 9:59 a.m.                                                                                             
                                                                                                                                
        HJR 16-DISABLED VETERANS PROCUREMENT PREFERENCE                                                                     
                                                                                                                                
9:59:16 AM                                                                                                                    
CHAIR MENARD announced  the final order of business  would be HJR
16. [CSHJR 16(L&C) was before the committee.]                                                                                   
                                                                                                                                
KAREN SAWYER, staff to Representative  Carl Gatto, sponsor of HJR
16, said a service disabled veteran  is a veteran who possesses a                                                               
disability  rating letter  issued  by the  Department of  Veteran                                                               
Affairs  establishing a  service connected  rating between  1 and                                                               
100 percent disability. A veteran-owned  business means that same                                                               
veteran owns  at least  51 percent  of the  business or  stock or                                                               
performs   management   and   daily  business   operations.   The                                                               
procurement preference refers to  the 2003 Veterans Benefits Act,                                                               
which strengthened  a law allowing  service disabled  veterans to                                                               
go into business for themselves  by bidding on federal contracts.                                                               
Three percent  of all federally  budgeted dollars were to  be set                                                               
aside for  these business,  ensuring that  small business  in the                                                               
state owned by  these veterans were able to  received sole source                                                               
and  restriction competition  contracts  for  goods and  services                                                               
used  by  the federal  government.  However,  that has  not  been                                                               
happening.                                                                                                                      
                                                                                                                                
HJR 16 urges the President to  direct all federal agencies in the                                                               
state to fully comply with  the 3 percent procurement preference.                                                               
HJR  16  also  requests  the  house  and  senate  small  business                                                               
committees  and  committees  on veteran  affairs  to  hold  joint                                                               
oversight hearings,  in Alaska,  into the  refusal or  failure of                                                               
these  agencies  to  comply.  According  to  the  Small  Business                                                               
Administration, which  oversees the  program, as  of 2008  only 4                                                               
out of 24 federal agencies nationwide were meeting the goal.                                                                    
                                                                                                                                
10:02:51 AM                                                                                                                   
CHAIR MENARD opened public testimony.                                                                                           
                                                                                                                                
RIC DAVIDGE, National  Chairman, Economic Opportunities Committee                                                               
for Vietnam  Veterans of America and  In-state Council President,                                                               
Vietnam Veterans  of America, and  founding board  member, Alaska                                                               
Veterans  Business  Alliance  said U.S.  Presidents  have  signed                                                               
executive  orders and  all  agencies have  been  directed to  put                                                               
together strategic plans showing  implementation of the 3 percent                                                               
procurement  preference. And  yet,  particularly  in Alaska,  the                                                               
procurement officers say  they are too busy and this  is too much                                                               
trouble. He  said 300 service  disabled veteran  owned businesses                                                               
from  Alaska are  registered.  These  businesses are  discouraged                                                               
about  getting  involved  in  federal  procurement  contracts  in                                                               
Alaska which  are often in the  tens of millions of  dollars. The                                                               
Army Corps  of Engineers  has made a  significant effort  and has                                                               
exceeded the 3 percent set-aside showing that it can be done.                                                                   
                                                                                                                                
10:05:40 AM                                                                                                                   
A  state  resolution, focused  on  the  problem and  calling  for                                                               
oversight hearings, would bring needed attention to the problem.                                                                
                                                                                                                                
TIM WHEELER, National  Director, Economic Opportunities, Veterans                                                               
of  Modern  Warfare, Washington  D.C.  and  board member,  Alaska                                                               
Veteran's Business  Alliance, said the  Veterans Entrepreneurship                                                               
Act was passed  nearly 11 years ago and is  still not working. He                                                               
has attended  many meetings, particularly with  the Department of                                                               
Defense (DOD) in Anchorage, who told  him the goals are being met                                                               
nationwide  but nationwide  goals  were never  met. Veterans  who                                                               
want  to go  into business  for themselves  are disheartened.  He                                                               
noted HJR 16 has no fiscal note asked for immediate passage.                                                                    
                                                                                                                                
10:08:30 AM                                                                                                                   
SENATOR  MEYER asked  Mr. Wheeler  if other  states have  similar                                                               
resolutions.                                                                                                                    
                                                                                                                                
MR. WHEELER replied yes but does  not know which states off hand.                                                               
Several organizations are involved at a national level.                                                                         
                                                                                                                                
10:09:55 AM                                                                                                                   
CHAIR MENARD closed public testimony.                                                                                           
                                                                                                                                
10:10:11 AM                                                                                                                   
SENATOR  MEYER  moved  to  report  HJR  16  from  committee  with                                                               
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
CHAIR  MENARD announced  that  without  objection, CSHJR  16(L&C)                                                               
moved from the Senate State Affairs Standing Committee.                                                                         
                                                                                                                                
10:10:36 AM                                                                                                                   
CHAIR  MENARD, seeing  no  further business  to  come before  the                                                               
committee adjourned the meeting at 10:10 a.m.                                                                                   
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects