CS FOR SENATE BILL NO. 103(JUD) "An Act relating to election campaigns and legislative ethics." JEFF BALASH, staff to Senate State Affairs Committee, indicated that he would walk through the Judiciary Committee Substitute (CS). He explained that Section 1 codified the current interpretation and regulation of the Alaska Public Offices Commission (APOC) concerning different groups under the control of a single candidate being treated as such towards the limit for contributions. Section 2 makes some clarifications as to the types of things that can be paid for with surplus campaign funds. Senator Green requested clarification with regards to Section 1. Mr. Balash clarified that if a number of groups are under the control of a single candidate than they are all bound by the contribution limits and they are treated as one group. Senator Therriault further clarified, "Basically, for Gene Therriault, I could have, the friends and neighbors for Gene Therriault and I could also have the nonpartisans for Gene Therriault. My campaign effort could be split into different groups, but if I control them than they all fall under the contribution limit for Gene Therriault." Mr. Balash indicated that Section 2 made changes to the allowances for the use of surplus campaign funds. He explained that it allows for thank you advertisements and seasonal greeting cards and also removes the Public Office Expense Term (POET) account reserve to help eliminate additional paperwork that successful candidates have to go through each year. He added that this would allow the entire lump sum to be transferred to the POET account and would eliminate the reserve mechanism. Senator Therriault said that he believes the Alaska Public Offices Commission (APOC) supported the change. He indicated that APOC was asked for the justification of the reserve account and they thought that it came from some concern over federal taxation of the reserve and that justification was not there anymore. He expressed that it never made sense to him to have a separate checking account that he wrote one check from each year just to transfer money from the reserve account to the POET account. He referred to page 3, lines 21 and 22, pointing out that the transfer is limited to $10,000 for House seats and $20,000 for Senate seats. He noted that it use to be $5,000 per year multiplied by the number of years; in the current bill version it simply states the entire amount. Mr. Balash referred to Section 3 and indicated that it made changes to the allowances for items that would be retained by the candidate in terms of personal property, for example, seasonal greeting cards, photographs used in the campaign and campaign signs. Section 4 made a change to the uses of state funds, which was necessary to conform to a later section regarding legislator's ability to campaign for or against constitutional amendments. Section 5 clarified the definition of contribution and also allowed for a political party to send out two mass mailings per election. Section 6 covered the definition of expenditures. AT EASE 10:42 AM/10:43 AM Mr. Balash referred to Section 7, which made conforming amendments to the ethics code to allow legislators to use their offices longer before and after session. Furthermore, it made an allowance for the use of resources by a legislator toward state or federal amendments to the constitution. Finally, Section 9 is a transitional provision dealing with funds already in the POET reserve account, which needs to be transferred to the POET account. Senator Therriault pointed out that there was quite a bit of controversy originally with regards to legislators and their employees interacting with initiatives. He believed that it was appropriate that a proposed constitutional amendment come from the legislature, quite often an individual legislator, and a legislator should be able to act as advocate for that amendment. Amendment #1: Page 6, line 5: Delete "or" Page 6, line 9, following ";": Insert "or (v) any communication in the form of a newsletter from a legislator to the legislator's constituents, except a communication expressly advocating the election or defeat of a candidate;" Page 8, line 13: Delete "or" Page 8, line 16, following ";": Insert "or (K) a legislator from sending any communication in the form of a newsletter to the legislator's constituents, except a communication expressly advocating the election or defeat of a candidate;" Co-Chair Donley moved to adopt the amendment. There was no objection and Amendment #1 was adopted. Amendment #2: Page 6, line 4 delete "photographs and biographies of" insert "information about" Page 9, line 26 after "solicit" insert "or receive" Co-Chair Donley moved to adopt the amendment. Co-Chair Kelly asked if there was any objection. Senator Leman objected and offered a friendly amendment to the amendment to include photographs. Co-Chair Donley clarified that the amendment to the amendment would insert, "photographs, biographies, and information about". There was no objection and the amendment to the amendment was adopted. Co-Chair Kelly indicated that Amendment #2 was before the Committee and asked if there was any objection. There was no objection and Amendment #2 was adopted. Amendment #3: Page 5, line 23-28, as follows: Delete: (i) services provided without compensation by individuals volunteering a portion or all of their time on behalf of a political party, candidate, or ballot proposition or question [, BUT IT DOES INCLUDE PROFESSIONAL SERVICES VOLUNTEERED BY INDIVIDUALS FOR WHICH THEY ORDINARILY WOULD BE PAID A FEE OR WAGE]; Insert: (i) services provided without compensation by individuals volunteering a portion or all of their time on behalf of a political party, candidate, or ballot proposition or question, but it does include professional services, other than legal or accounting services, volunteered by individuals for which they ordinarily would be paid a fee or wage; New Text Underlined [DELETED TEXT BRACKETED] Co-Chair Donley explained that Amendment #3 would tighten up the Judiciary version of the bill, Version W, clarifying that the only exception to professional services being offered or volunteered to a campaign would be for legal or accounting services. He made a motion to adopt the amendment. Co-Chair Kelly indicated that the change would be fairly significant. He asked if there was any objection to the amendment. There was no objection and Amendment #3 was adopted. Amendment #4: Page 9, following line 26: Insert a new bill section to read: Sec. 8. AS 24.60.080(c) is amended to read: (c) Notwithstanding (a) of this section, it is not a violation of this section for a legislator or legislative employee to accept (1) hospitality, other than hospitality described in (4) of this subsection, (A) with incidental transportation at the residence of a person; however, a vacation home located outside the state is not considered a residence for the purposes of this subparagraph; or (B) at a social event or meal; (2) discounts that are available (A) generally to the public or to a large class of persons to which the person belongs; or (B) when on official state business, but only if receipt of the discount benefits the state; (3) food or foodstuffs indigenous to the state that are shared generally as a cultural or social norm; (4) travel and hospitality primarily for the purpose of obtaining information on matters of legislative concern; (5) gifts from the immediate family of the person; (6) gifts that are not connected with the recipient's legislative status; (7) a discount for all or part of a legislative session, including time immediately preceding or following the session, or other gift to welcome a legislator or legislative employee who is employed on the personal staff of a legislator or by a standing or special committee to the capital city or in recognition of the beginning of a legislative session if the gift or discount is available generally to all legislators and the personal staff of legislators and staff of standing and special committees; this paragraph does not apply to legislative employees who are employed by the Legislative Affairs Agency, the office of the chief clerk, the office of the senate secretary, the legislative budget and audit committee, or the office of the ombudsman; [OR] (8) a gift of legal services in a matter of legislative concern and a gift of other services related to the provision of legal services in a matter of legislative concern; or (9) a gift of transportation from a legislator to a legislator if transportation takes place in the state on or in an aircraft, boat, motor vehicle, or other means of transport owned or under the control of the donor; this paragraph does not apply to travel described in (4) of this subsection or travel for political campaign purposes." Senator Olson addressed Amendment #4. SFC 01 # 51, Side A 10:52 AM Senator Olson noted that in his district access to most areas is limited to air transportation and it is for this reason that he asked that the Committee adopt Amendment #4. He moved for the adoption of the amendment. Co-Chair Kelly asked if there was any objection. There was no objection and Amendment #4 was adopted. Co-Chair Donley moved to report CS SB 103 (JUD), 22-LS0148/W, as amended from Committee. Co-Chair Kelly interjected that there were people to testify on the bill that he had overlooked. BROOKE MILES, Director, Alaska Public Offices Commission (APOC), testified via teleconference, thanked the Committee for taking up Amendment #3, which addressed volunteer professional services. She referred to page 6, line 6 and explained that under the proposed language any person is prohibited from campaign contributions, other than lobbyists, to conduct a poll and give the results to a campaign unless the poll was designed to primarily benefit the candidate. She expressed concern with regards to that language and said that the Commission saw this as administratively difficult. She referred to page 5, line 6 and the Commission identified this as costly, because it recognized a major change in current policy that would substantially restrict public money either to support or oppose ballot questions. She further explained that current law required that public funds could only be used to support ballot questions specifically appropriated to that purpose by state law and municipal ordinance. Senator Green requested clarification that if after two mailings they are taken over the contribution limit, which would put them in violation and they had no part of the decision making as to what group advertisements would contain their information. Ms. Miles responded after two free mailings for each election if the state party or state party sub-division does a state mailing then yes it would be considered a state contribution. SUSIE BARNETT commented that the Ethics Committee has always supported communication with constituents when the communication relates to access to the elected official or reporting on legislative matters. She believed that was the intent of Amendment #1 was to preserve that important function. She pointed out that there is a conflict in statute, AS 24.60.030 c.2 sets out certain parameters on mass mailings using funds other than office allowance. Secondly, the amendment actually broadens the current interpretation and practice of most legislators to allow activities beyond those of legislative matters. She recommended that they consider different language. Co-Chair Kelly asked Ms. Barnett to fax those recommendations to Senator Therriault's office. Co-Chair Donley indicated that he had spoke with the drafters that morning and since the prohibition that Ms. Barnett spoke of was a specific prohibition the bill would not negate that. Ms. Barnett referred to Amendment #4 offered by Senator Olson and said that the amendment appeared to tilt the playing field in favor of those able to provide those types of gifts. She recommended that they consider requiring public disclosure of acceptance of gifts of that type. Co-Chair Kelly reported that the bill would be HELD in Committee. [Heard and Held]