HB 44-LEGISLATIVE ETHICS: VOTING & CONFLICTS  2:08:19 PM CHAIR COGHILL reconvened the meeting and announced the consideration of HB 44. [SCS CSSSHB 44(STA) was before the committee.] He noted that the State Affairs Committee significantly changed the bill. 2:08:58 PM RYAN JOHNSTON, Staff, Representative Jason Grenn, Alaska State Legislature, Juneau, Alaska, reviewed the following changes from version R to version N and for HB 44: The sections of Version R can be found in the corresponding sections of Version N ? Ver R Section 1 corresponds with Section 7 in ver N ? Ver R Section 2 corresponds with Section 8 in ver N ? Ver R Section 3 corresponds with Section 9 in ver N ? Ver R Section 4 corresponds with Section 11 in ver N The new sections of the bill include: Sections 1 and 2 prohibits foreign corporations and nationals from making political expenditures on behalf of candidates in state elections. Section 3, page 6 lines 5-12, amends AS 24.10.120(a) to implement a stricter policy on legislative foreign travel. Section 4, page 6 lines 5-12, amends AS 24.10.130(b) so there will be no per diem for legislators after 121 days if the budget has not been passed Section 5, page 6 lines 25-31, amends AS 24.10.130(c) to direct the Legislative Council to adopt a per diem policy in accordance with section 4 of the bill. Section 6, page 8 lines 1-12, amends AS 24.45.121(a) to read that a lobbyist may only purchase a non- alcoholic beverage for a legislator. Section 10, page 9, amends AS 24.10.120(a) to clarify that a Legislator can accept a non-alcoholic beverage from a lobbyist. Section 12, page 11 line 4-19, amends AS 39.23.540(d) to include the new stipulations on per diem set forth in section 4. Section 13, page 11, line 20, repeals AS 24.10.051(b). Section 14, page 11 lines 21-24, amends the uncodified law of the State of Alaska to direct the Alaska Public Office Commission to adopt the necessary regulations to implement sections 1 and 2 of this bill. Section 15, page 11 lines 27-31, amends the uncodified law of the State of Alaska to state that if any section of this bill is found invalid, then the rest of the bill will not be affected. Section 16, page 12 line 1, states that section 14 of the bill will take effect immediately upon the bill's passage. Section 17, page 12 line 2, changes the effective date to July 1, 2018. 2:11:49 PM CHAIR COGHILL said he understands that the only difference between the initiative and the bill is the de minimis value of a meal versus the $15 amount which is in statute. MR. JOHNSTON agreed. 2:12:55 PM SENATOR WIELECHOWSKI asked if the sponsor supports the Senate committee substitute. MR. JOHNSTON replied, "The Representative is appreciative of the conversation that goes on with this bill and appreciates the ability to speak before the committee and apologizes that he can't be here currently." SENATOR WIELECHOWSKI commented that it was a good political answer. CHAIR COGHILL said he'd like to dialog with the sponsor on the record about the policy calls. He offered his perspective of the per diem provision. He struggles with it because extended sessions aren't always within the legislature's control. He said he can understand why some people don't support international travel, but "whether we like it or not Alaska is an international state." Its largest trading partners are China, Japan, Korea, and Canada. Furthermore, Alaska is an Arctic state, the Pacific fishery is international, and tourism has an international flavor. He said he would study the language, but to exclude the impact an international conversation might have on a campaign might be unwise. He opined that legislators may need to be part of both national and international organizations. He said he understands that money is perceived as buying elections, but it's up to the integrity of the individual whether the money is used as a voice to communicate with constituents or if it's used to drive special interests. 2:19:40 PM SENATOR WIELECHOWSKI asked if there is any legal opinion or consultation about whether the current version of the bill would take the initiative off the ballot. MR. JOHNSTON responded that the Senate State Affairs Committee received a legal memo that said the current version of the bill satisfies the intent of the initiative. However, it would rest on a court case. He offered to supply a copy of the memo. CHAIR COGHILL advised that the 3/21/18 memorandum from legislative attorney Dan Wayne is in the packets. SENATOR WIELECHOWSKI said he read the memo and it seems to address constitutional issues as opposed to whether it would take the initiative off the ballot. 2:21:40 PM MR. JOHNSTON said any constitutional concerns will only be resolved through a court case. He offered to have someone from the lieutenant governor's office come and talk about its finding that the initiative was not unconstitutional. CHAIR COGHILL relayed that testimony in the State Affairs Committee was that being constitutional to go on the ballot is one question and whether the policy calls are constitutional is another, larger question. Legal advice on that point is warranted. SENATOR WIELECHOWSKI noted that the memo did raise the question about the effect of the bill in an initiative election. The conclusion is not a slam dunk in either direction, but it does say the court would probably find the bill passes the three-part test. CHAIR COGHILL shared that he is not a fan of either the initiative or the bill because of the restrictions that may be outside legislators' control. It also supposes the authority of lobbyists that may not be entirely accurate. He reiterated the request to have a dialog on the record with the sponsor during the 9:00 a.m. meeting tomorrow. MR. JOHNSTON said the sponsor has a Finance meeting at the same time but he would do his best. 2:26:05 PM CHAIR COGHILL held HB 44 in committee for further consideration.