Legislature(2007 - 2008)CAPITOL 120

03/20/2007 01:00 PM House JUDICIARY


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01:08:05 PM Start
01:08:35 PM HB109
02:39:22 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 109 DISCLOSURES & ETHICS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
HB 109 - DISCLOSURES & ETHICS                                                                                                 
                                                                                                                                
1:08:35 PM                                                                                                                    
                                                                                                                                
CHAIR RAMRAS announced  that the only order of  business would be                                                               
HOUSE  BILL NO.  109, "An  Act  relating to  the requirement  for                                                               
candidates,  groups,  legislators,  public officials,  and  other                                                               
persons  to submit  reports electronically  to the  Alaska Public                                                               
Offices  Commission;  relating  to  disclosures  by  legislators,                                                               
public  members of  the Select  Committee on  Legislative Ethics,                                                               
legislative directors,  public officials, and  certain candidates                                                               
for public office concerning  services performed for compensation                                                               
and  concerning  certain  income,   gifts,  and  other  financial                                                               
matters;  requiring legislators,  public  members  of the  Select                                                               
Committee  on Legislative  Ethics, legislative  directors, public                                                               
officials,  and  municipal  officers to  make  certain  financial                                                               
disclosures  when they  leave office;  relating to  insignificant                                                               
ownership interest in a business  and to gifts from lobbyists for                                                               
purposes of the  Alaska Executive Branch Ethics  Act; relating to                                                               
certain restrictions  on employment  after leaving  state service                                                               
for  purposes of  the  Alaska Executive  Branch  Ethics Act;  and                                                               
providing  for an  effective date."   [Before  the committee  was                                                               
CSHB 109(STA).]                                                                                                                 
                                                                                                                                
CHAIR RAMRAS outlined how the  committee would be proceeding with                                                               
regard to public testimony, the bill, and proposed amendments.                                                                  
                                                                                                                                
1:10:58 PM                                                                                                                    
                                                                                                                                
HEIDI DRYGAS, General Counsel, Public  Employees Local 71, Alaska                                                               
District Council  of Laborers, began by  explaining that Alaska's                                                               
nepotism  statute, AS  39.90.020, prohibits  family members  from                                                               
working together  in a  supervisory relationship.   In  August of                                                               
2005, the  Department of Administration  (DOA) promulgated  a new                                                               
policy,  Alaska   Administrative  Manual  (AAM)   100.050,  which                                                               
prohibits employees  from being  in an  "employment relationship"                                                               
with a  family member.   This includes conjugal  relationships up                                                               
to  a second  degree of  kindred.   She explained  that this  new                                                               
policy  was enacted  in response  to  a Department  of Law  (DOL)                                                               
memorandum  issued in  March of  2005 addressing  how the  Alaska                                                               
Executive  Branch  Ethics  Act  applies  when  a  supervisor  and                                                               
subordinate  are  in  a  conjugal  relationship.    The  Attorney                                                               
General's opinion was  that this relationship is  in violation of                                                               
the  Alaska Executive  Branch Ethics  Act.   However, she  argued                                                               
that  in  promulgating the  aforementioned  policy,  the DOA  has                                                               
taken this opinion and dramatically expanded its scope.                                                                         
                                                                                                                                
MS. DRYGAS  went on to say  that the DOA expanded  the definition                                                               
of  "employment relationship,"  to  include a  number of  actions                                                               
that are typically completed by  non-supervisory employees.  This                                                               
new  policy, based  of  the DOA's  interpretation  of the  Alaska                                                               
Executive  Branch Ethics  Act  and the  DOL  memorandum, has  had                                                               
devastating  effects  on  Alaska's public  employees,  especially                                                               
those living  and working  in rural  communities.   She explained                                                               
the actions  prohibited by  this policy,  pointing out  that many                                                               
Alaskan communities  are small,  and most individuals  are likely                                                               
to be related  in some way.   She opined that the  impact on non-                                                               
supervisory  employees  is  substantial and  unnecessary,  as  it                                                               
essentially  prohibits   both  supervisory   and  non-supervisory                                                               
relationships between family members.                                                                                           
                                                                                                                                
MS.  DRYGAS  said  this  policy  is  affecting  everyday  working                                                               
Alaskans in a way that was  never intended nor implemented by the                                                               
Alaska Executive  Branch Ethics Act  until 2006.   Family members                                                               
seeking to  work together in  a non-supervisory  relationship are                                                               
held  to  stricter standards  than  Legislative  employees.   She                                                               
explained   the  definitions   of   "supervisory  employee"   and                                                               
"supervisory  functions"  under  regulations promulgated  by  the                                                               
Alaska  Labor Relations  Agency.   She  reiterated  that the  DOA                                                               
policy prohibits  far more than  supervisory relationships.   The                                                               
realignment of this policy has  and will continue to prevent many                                                               
Alaskans from seeking employment with the state.                                                                                
                                                                                                                                
MS.  DRYGAS stated  that the  union suggests  an amendment  which                                                               
would clarify that Alaska Executive  Branch Ethics Act provisions                                                               
arise in  supervisory relationships  between family  members, and                                                               
not in all employee relationships.                                                                                              
                                                                                                                                
[Chair Ramras turned the gavel over to Vice Chair Dahlstrom.]                                                                   
                                                                                                                                
VICE  CHAIR   DAHLSTROM  offered   her  understanding   that  the                                                               
aforementioned amendment is currently in the drafting process.                                                                  
                                                                                                                                
MS. DRYGAS  explained that the  amendment would add  a subsection                                                               
(d) to AS 39.52.910.  She  read the proposed amendment as follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     "Nothing in this Act shall  supersede the provisions of                                                                    
     AS 39.90.020,  nor preclude  individuals from  being in                                                                    
     an  employment relationship  with  an immediate  family                                                                    
     member where neither family member  is a supervisor who                                                                    
     has  authority  to  act  or  to  effectively  recommend                                                                    
     action in  the interest of  the public employer  in one                                                                    
     of   the  following   supervisory  functions,   if  the                                                                    
     exercise of  that authority is  not merely  routine but                                                                    
     requires the exercise of independent judgment:                                                                             
          (a) employing, including hiring, transferring,                                                                        
               laying off, or recalling;                                                                                        
          (b) discipline, including suspension, discharge,                                                                      
               demotion, or issuance of written warnings;                                                                       
               or                                                                                                               
          (c) grievance adjudication, including responding                                                                      
               to a first level grievance under a                                                                               
               collective bargaining agreement."                                                                                
                                                                                                                                
MS.  DRYGAS said  that  the union  believes  that this  amendment                                                               
would clarify  the scope  of the  Alaska Executive  Branch Ethics                                                               
Act,  and protect  working  Alaskans.   It  would  also strike  a                                                               
balance by  highlighting the ethical issues  involved in familial                                                               
supervisory relationships.                                                                                                      
                                                                                                                                
[Vice Chair Dahlstrom returned the gavel to Chair Ramras.]                                                                      
                                                                                                                                
1:18:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MARK  NEUMAN, Alaska State  Legislature, explained                                                               
that  he  is  a  small  business  owner,  and  expressed  concern                                                               
regarding  the  possible  loss  of   customers  as  a  result  of                                                               
legislative reporting  requirements.   He shared his  belief that                                                               
those  requirements   would  also  put  his   competitors  at  an                                                               
advantage, and  questioned the fairness  of losing business  as a                                                               
result of holding public office.                                                                                                
                                                                                                                                
1:21:35 PM                                                                                                                    
                                                                                                                                
BROOKE MILES, Director, Alaska  Public Offices Commission (APOC),                                                               
Department of Administration (DOA),  explained that under current                                                               
law,  the defining  point is  not whether  goods or  services are                                                               
offered,  but how  the business  is conducted.   She  offered her                                                               
understanding   that  Representative   Neuman  does   not  create                                                               
furniture that is later sold  in a store, but works independently                                                               
with clients.   She compared  this to  work done by  an attorney,                                                               
and  reiterated that  it  is the  way in  which  the business  is                                                               
conducted that  determines how  a financial  disclosure statement                                                               
must be completed.                                                                                                              
                                                                                                                                
REPRESENTATIVE  NEUMAN commented  that while  he understands  the                                                               
importance of disclosing clients that  have a connection with the                                                               
government,  such as  a  lobbyist or  another  legislator, he  is                                                               
referring to "the average customer off the street."                                                                             
                                                                                                                                
MS.  MILES,  in response  to  a  question,  explained that  if  a                                                               
legislator  owns  a  hotel  and  restaurant, he  or  she  is  not                                                               
required  to list  each  client;  however, if  he  or  she has  a                                                               
contract with  an entity  to provide rooms,  and the  contract is                                                               
worth more than $1000, this must be reported separately.                                                                        
                                                                                                                                
CHAIR RAMRAS commented  that he is a hotel  and restaurant owner,                                                               
and explained  that he  must disclose  the sale  of a  "block" of                                                               
rooms  to the  APOC, and  this then  becomes part  of the  public                                                               
record.                                                                                                                         
                                                                                                                                
1:25:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SAMUELS asked  whether  the  contracted price  is                                                               
included.                                                                                                                       
                                                                                                                                
MS.  MILES explained  that the  amount must  be disclosed  if the                                                               
source  of  the  amount  has a  substantial  interest  in  state,                                                               
political, or administrative activities.                                                                                        
                                                                                                                                
CHAIR RAMRAS  noted that the  total dollar amount of  the account                                                               
is disclosed, but not the rate per room.                                                                                        
                                                                                                                                
REPRESENTATIVE GRUENBERG pointed out that  he is required to list                                                               
the exact dollar amount for each  client he sees.  He offered his                                                               
understanding that car sales must be reported.                                                                                  
                                                                                                                                
MS.  MILES  said   disclosure  would  be  required   on  a  fleet                                                               
transaction, but not on independent  sales; retail businesses are                                                               
not  required to  report  individual  sales.   In  response to  a                                                               
question,  she  explained that  historically,  there  has been  a                                                               
difference between retail and non-retail  clients.  This has been                                                               
the  case since  1974,  when  current law  was  enacted.   Retail                                                               
businesses  are  not   required  to  report  as   a  source  each                                                               
individual  who makes  purchases.   However, each  individual who                                                               
buys  the services  of an  attorney, an  accountant, or  a custom                                                               
furniture builder, is considered to  be "the source" [and must be                                                               
disclosed].                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GRUENBERG stated  that he  finds it  difficult to                                                               
justify a  distinction between  an individual  providing services                                                               
and  an individual  who  is  providing the  same  amount of,  and                                                               
receiving profit for, goods.  He  said he does not understand why                                                               
the former is required to report this, while the latter is not.                                                                 
                                                                                                                                
REPRESENTATIVE NEUMAN clarified that all  of his sales are retail                                                               
sales.   He  said he  feels that  he should  fall under  the same                                                               
category  as the  hotel owner  who is  not required  to report  a                                                               
guest whose bill is over $1,000.                                                                                                
                                                                                                                                
MS.  MILES   commented  that  she  understands   these  concerns;                                                               
however, currently  Representative Neuman  is required  to report                                                               
clients  who  pay more  than  $1,000  for  a piece  of  furniture                                                               
because of the way in which his business is conducted.                                                                          
                                                                                                                                
1:30:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DAHLSTROM commented that  she falls into a similar                                                               
category,  because she  and  her  husband own  a  business.   She                                                               
explained that  her husband is  a contractor, and  gains business                                                               
by  bid.   She stated  that if  she is  required to  report these                                                               
jobs, his competitors  could use this information.   She inquired                                                               
as to what is reported when  an attorney is representing a minor,                                                               
and  questioned whether  reporting  this violates  constitutional                                                               
rules, and whether reporting puts individuals at risk.                                                                          
                                                                                                                                
MS. MILES replied that anytime a  case is sealed by the court, or                                                               
if a  case affects minors,  the case is  not required to  be made                                                               
public,  as this  would violate  other laws.   Those  professions                                                               
which  are  subject  to  the  Health  Insurance  Portability  and                                                               
Accountability Act  (HIPAA) can  not disclose the  client's name.                                                               
This law overrides  the APOC reporting requirements.   She stated                                                               
that these  are huge  policy decisions  - balancing  the public's                                                               
right to know  with an individual's right to privacy  or right to                                                               
keep trade secrets and conduct a successful business.                                                                           
                                                                                                                                
REPRESENTATIVE  SAMUELS  questioned  whether  he  would  have  to                                                               
disclose all block ticket sales if  he owns a small portion of an                                                               
airline but has no authority over the business.                                                                                 
                                                                                                                                
MS. MILES  explained that if  the business is  [incorporated] and                                                               
the individual in  question does not own  a controlling interest,                                                               
he/she is  not required to  disclose the clients of  the company.                                                               
If the  business is  a professional  corporation (PC),  a limited                                                               
liability   company    (LLC),   a   partnership,   or    a   sole                                                               
proprietorship, the  business owner is required  to report client                                                               
names.                                                                                                                          
                                                                                                                                
CHAIR RAMRAS  opined that it  is important  for the public  to be                                                               
informed  of   relationships  between  legislators   and  certain                                                               
entities.   A citizen legislator  must surrender some  privacy in                                                               
exchange for  the privilege of  being a legislator.   This allows                                                               
legislators to  be forthright  regarding relationships  that "may                                                               
hold  sway for  better  or for  worse."   He  commented that  the                                                               
opportunity to "open  the APOC book comes along  ... rarely," and                                                               
questioned what might be done  to address Representative Neuman's                                                               
concerns.   He  stated  that  while he  is  comfortable with  his                                                               
personal reporting  requirements, he does not  want to discourage                                                               
legislative  service   by  those  who  have   concerns  with  the                                                               
requirement.  He requested that  this be considered and discussed                                                               
again at the next committee hearing.                                                                                            
                                                                                                                                
REPRESENTATIVE NEUMAN pointed  out that the APOC  rules deal with                                                               
individuals with  "substantial political  influence."   He opined                                                               
that  the  "average  Joe  off  the street"  does  not  meet  this                                                               
requirement.                                                                                                                    
                                                                                                                                
CHAIR RAMRAS  closed public  testimony for  the day,  and relayed                                                               
that it  would be opened  up again  at the bill's  next committee                                                               
hearing.                                                                                                                        
                                                                                                                                
REPRESENTATIVE GRUENBERG referred  to possible problems regarding                                                               
U.S. attorney generals, and  questioned whether provisions should                                                               
be added to Title 39 or  Title 44 to specifically address ethical                                                               
rules for the attorney general  in situations involving conflicts                                                               
of interest.                                                                                                                    
                                                                                                                                
1:43:47 PM                                                                                                                    
                                                                                                                                
DAVID  JONES,   Senior  Assistant  Attorney   General,  Opinions,                                                               
Appeals, & Ethics, Civil Division  (Anchorage), Department of Law                                                               
(DOL),  replied  that  he  has not  considered  this,  but  would                                                               
appreciate  the opportunity  to do  so.   He surmised  that these                                                               
concerns should be covered by existing rules and requirements.                                                                  
                                                                                                                                
REPRESENTATIVE  LYNN  questioned  whether the  issues  concerning                                                               
U.S.  attorney  generals  and  the  state  attorney  general  are                                                               
comparable.                                                                                                                     
                                                                                                                                
REPRESENTATIVE GRUENBERG replied  that he would like  to see such                                                               
issues avoided.                                                                                                                 
                                                                                                                                
1:47:13 PM                                                                                                                    
                                                                                                                                
CHAIR  RAMRAS   referred  to  Amendment  1,   which,  along  with                                                               
explanation language, read [original punctuation provided]:                                                                     
                                                                                                                                
     Page 2, Line 15 & 16                                                                                                       
                                                                                                                                
     Delete                                                                                                                     
                                                                                                                                
     Planning  & zoning  commissioners  are not  candidates,                                                                    
     they are appointed.   Although they are  subject to the                                                                    
     financial disclosure  laws (AS 39.50) they  do not file                                                                    
     campaign disclosure reports (AS 15.13).                                                                                    
                                                                                                                                
     The   campaign   disclosure    laws   apply   only   to                                                                    
     municipalities  with a  population  greater than  1000.                                                                    
     No  municipalities that  are  subject  to the  campaign                                                                    
     disclosure law have utility boards.                                                                                        
                                                                                                                                
REPRESENTATIVE SAMUELS made a motion to adopt Amendment 1.                                                                      
                                                                                                                                
REPRESENTATIVE GRUENBERG objected for the purpose of discussion.                                                                
                                                                                                                                
MS. MILES said that AS 15.13  is the campaign disclosure law, and                                                               
applies to candidates, political groups,  and ballot issues.  She                                                               
explained  that   planning  and  zoning  commissioners   are  not                                                               
candidates.  Additionally, the campaign  disclosure laws apply to                                                               
municipalities  with  a population  greater  than  1,000, and  no                                                               
municipalities  subject  to  the  campaign  disclosure  law  have                                                               
utility boards.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  GRUENBERG  offered  his understanding  that  this                                                               
would  only  apply  to  elected  utility  boards,  and  that  the                                                               
Anchorage Utility Board is appointed.                                                                                           
                                                                                                                                
MS. MILES replied that this is correct.                                                                                         
                                                                                                                                
REPRESENTATIVE GRUENBERG removed his objection.                                                                                 
                                                                                                                                
CHAIR  RAMRAS,  noting  no   further  objection,  announced  that                                                               
Amendment 1 was adopted.                                                                                                        
                                                                                                                                
1:50:00 PM                                                                                                                    
                                                                                                                                
CHAIR  RAMRAS referred  to  Amendment  2, labeled  25-GH1059\O.2,                                                               
Wayne, 3/8/07, which read:                                                                                                      
                                                                                                                                
     Page 4, lines 1 - 2:                                                                                                       
          Delete "in this paragraph, "domestic partner" has                                                                     
     the meaning given in AS 39.50.200(a);"                                                                                 
                                                                                                                                
     Page 4, line 8, following "commission":                                                                                
          Insert "[IN THIS PARAGRAPH, "DOMESTIC PARTNER"                                                                        
     HAS THE MEANING GIVEN IN AS 39.50.200(a)]"                                                                                 
                                                                                                                                
     Page 5, line 15:                                                                                                           
          Delete "a new subsection"                                                                                             
          Insert "new subsections"                                                                                              
                                                                                                                                
     Page 5, following line 19:                                                                                                 
          Insert new material to read:                                                                                          
          "(e)  The spouse or domestic partner of a                                                                             
     legislator may  not engage in  activity as  a lobbyist.                                                                    
     This  subsection  does  not   prohibit  the  spouse  or                                                                    
     domestic partner  from acting  as a  volunteer lobbyist                                                                    
    under   AS 24.45.161(a)(1)    or   a   representational                                                                     
     lobbyist, as defined in regulation by the commission.                                                                      
       * Sec. 7. AS 24.45.171 is amended by adding a new                                                                      
     paragraph to read:                                                                                                         
               (15)  "domestic partner" has the meaning                                                                         
     given in AS 39.50.200(a)."                                                                                                 
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
REPRESENTATIVE DAHLSTROM made a motion to adopt Amendment 2.                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG objected for the purpose of discussion.                                                                
                                                                                                                                
CHAIR RAMRAS  explained that this  is a  "housekeeping" amendment                                                               
with regard to spousal lobbying;  this language was inadvertently                                                               
left out of CSHB 109(STA).                                                                                                      
                                                                                                                                
1:51:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  concurred, and stated that  he would be                                                               
offering  an  amendment  to  "cure"  a  potential  constitutional                                                               
problem, and suggested a possible amendment to Amendment 2.                                                                     
                                                                                                                                
REPRESENTATIVE RAMRAS stated  that he would like  to move through                                                               
the amendments and take up other issues as they arise.                                                                          
                                                                                                                                
REPRESENTATIVE GRUENBERG withdrew his objection.                                                                                
                                                                                                                                
REPRESENTATIVE  COGHILL  commented  that   there  is  a  question                                                               
regarding   whether  there   is  a   constitutional  problem   in                                                               
prohibiting  a  legislator's   spouse  from  performing  specific                                                               
actions, and  that there is  still a concern regarding  whether a                                                               
legislator's spouse should be allowed to lobby.                                                                                 
                                                                                                                                
REPRESENTATIVE  GRUENBERG   said  that  a   forthcoming  proposed                                                               
amendment  would  not  prohibit  the spouse  from  doing  certain                                                               
things, but would prohibit legislators  and employees from having                                                               
any kind of official communications with the spouse.                                                                            
                                                                                                                                
REPRESENTATIVE COGHILL  clarified that  he is concerned  with the                                                               
language prohibiting the spouse of  a legislator from engaging in                                                               
activity  as  a   lobbyist.    He  surmised  that   this  can  be                                                               
challenged.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SAMUELS  stated  that  he is  in  agreement  with                                                               
Amendment 2, as  presented, and would prefer to simply  let it be                                                               
challenged.                                                                                                                     
                                                                                                                                
REPRESENTATIVE DAHLSTROM and REPRESENTATIVE LYNN agreed.                                                                        
                                                                                                                                
REPRESENTATIVE GRUENBERG again removed his objection.                                                                           
                                                                                                                                
CHAIR  RAMRAS, noting  that  there was  no  further objection  to                                                               
Amendment 2, announced that Amendment 2 was adopted.                                                                            
                                                                                                                                
1:55:13 PM                                                                                                                    
                                                                                                                                
CHAIR  RAMRAS  referred  to Amendment  3,  which  read  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Page 5, lines 16-19:                                                                                                       
                                                                                                                                
          Delete all material and insert:                                                                                       
               "(d) An individual may not, at any time that                                                                     
          AS 39.52  prohibits that individual  from engaging                                                                    
          in activity as a  lobbyist, register as a lobbyist                                                                    
          under this chapter or engage  in any activity as a                                                                    
          lobbyist.    This  subsection  does  not  prohibit                                                                    
          registration  or service  as a  volunteer lobbyist                                                                    
          in  AS   24.45.161(a)(1)  or   a  representational                                                                    
          lobbyist  as defined  in  the  regulations of  the                                                                    
          Alaska Public Offices Commission."                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL made a motion to adopt Amendment 3.                                                                      
                                                                                                                                
REPRESENTATIVE DAHLSTROM also moved Amendment 3.                                                                                
                                                                                                                                
CHAIR RAMRAS announced that  Representative Gruenberg objected to                                                               
Amendment 3 for the purposes of discussion.                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL  explained that Amendment 3  was requested                                                               
by the administration, and makes technical changes to the bill.                                                                 
                                                                                                                                
MR.  JONES  agreed.   He  said  that  it  cleans up  the  current                                                               
language, thus  making it "absolutely  clear" that its  intent is                                                               
to  give the  APOC the  authority to  refuse registration  to any                                                               
person  the  [Alaska  Executive  Branch  Ethics  Act]  bars  from                                                               
serving as a lobbyist.                                                                                                          
                                                                                                                                
REPRESENTATIVE GRUENBERG  inquired as  to the  difference between                                                               
the current language of the bill and Amendment 3.                                                                               
                                                                                                                                
MR. JONES said that it is  "very difficult to find any meaning in                                                               
the current provision in Section 6;  it just causes you to wonder                                                               
why it's there."  He explained that Amendment 3 returns to the                                                                  
original intent, which "mirrors" the language adopted by the                                                                    
House State Affairs Standing Committee.                                                                                         
                                                                                                                                
MS. MILES, in response to a question, stated that she has no                                                                    
objection to Amendment 3.                                                                                                       
                                                                                                                                
REPRESENTATIVE GRUENBERG removed his objection.                                                                                 
                                                                                                                                
CHAIR RAMRAS, noting that there was no further objection to                                                                     
Amendment 3, announced that Amendment 3 was adopted.                                                                            
                                                                                                                                
1:58:13 PM                                                                                                                    
                                                                                                                                
CHAIR RAMRAS referred to Amendment 4, which read [original                                                                      
punctuation provided but with some formatting changes]:                                                                         
                                                                                                                                
     Intent / Explanation:                                                                                                      
     Prohibit  legislators  or  legislative  employees  from                                                                    
     receiving  gifts  from lobbyists  at  any  time of  the                                                                    
     year.   Also  prohibit  family  members from  receiving                                                                    
     gifts from lobbyists.   Family member as  defined in AS                                                                    
     24.60.990(a)(6).                                                                                                           
                                                                                                                                
     Brings  together  language  in AS  24.60.080  regarding                                                                    
     lobbyists  and  gifts  into   one  section  to  provide                                                                    
     clarity and ease of interpreting the gift statute.                                                                         
                                                                                                                                
     Sec. 24.60.080. Gifts.                                                                                                 
                                                                                                                                
     (a)  Except as  otherwise provided  in this  section, a                                                                  
     legislator or legislative employee may not                                                                                 
                                                                                                                                
          (1)solicit, accept, or receive, directly or                                                                      
     indirectly, a gift  worth $250 or more,  whether in the                                                                    
     form    of   money,    services,   a    loan,   travel,                                                                    
     entertainment, hospitality, promise,  or other form, or                                                                    
     gifts from  the same person  worth less than  $250 that                                                                    
     in  a  calendar  year  aggregate to  $250  or  more  in                                                                    
     value[.];                                                                                                                
          (2) [EXCEPT FOR FOOD OR BEVERAGE FOR IMMEDIATE                                                                    
     CONSUMPTION, A  LEGISLATOR OR LEGISLATIVE  EMPLOYEE MAY                                                                    
     NOT SOLICIT,] accept, or  receive [DURING A LEGISLATIVE                                                                    
     SESSION]  a  gift  with  any   monetary  value  from  a                                                                    
     lobbyist  or,  or an  immediate  family  member of  the                                                                    
     lobbyist, or  a person acting  on behalf of  a lobbyist                                                                    
     except;[.]                                                                                                             
               (A) for food or beverage for immediate                                                                       
     consumption; or                                                                                                        
               (B) tickets from a lobbyist for a charity                                                                    
     event  at  any  time, including  during  a  legislative                                                                
     session, except that tickets to  or gifts received at a                                                                
     charity event  under this paragraph are  subject to the                                                                
     calendar year limit  on the value of  gifts received by                                                                
     a  legislator or  legislative employee  in (a)  of this                                                                
     section; in  this paragraph,  "charity event"  means an                                                                
     event  the  proceeds  of  which   go  to  a  charitable                                                                
     organization  with  tax-free  status  under  26  U.S.C.                                                                
     501(c)(3) and  that the Alaska Legislative  Council has                                                                
     approved  in  advance;  the  tickets  may  entitle  the                                                                
     bearer to admission to the  event, to entertainment, to                                                                
     food  or  beverages,  or to  other  gifts  or  services                                                                
     involved in the charity event.                                                                                         
                                                                                                                                
     (b) [Repealed, § 42 ch 127 SLA 1992.]                                                                                    
                                                                                                                                
     (c) Notwithstanding  (a)(1) 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;                                                                                            
          (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;                                                                                                    
          (9) a gift of transportation from a legislator to                                                                     
     a legislator  if the transportation takes  place in the                                                                    
     state on or in an  craft, 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;                                                                                               
          (10) [TICKETS FROM A LOBBYIST FOR A CHARITY EVENT                                                                     
     AT ANY  TIME, INCLUDING  DURING A  LEGISLATIVE SESSION,                                                                    
     EXCEPT THAT TICKETS  TO OR GIFTS RECEIVED  AT A CHARITY                                                                    
     EVENT UNDER THIS PARAGRAPH ARE  SUBJECT TO THE CALENDAR                                                                    
     YEAR  LIMIT  ON  THE  VALUE  OF  GIFTS  RECEIVED  BY  A                                                                    
     LEGISLATOR  OR  LEGISLATIVE  EMPLOYEE IN  (A)  OF  THIS                                                                    
     SECTION; IN  THIS PARAGRAPH,  "CHARITY EVENT"  MEANS AN                                                                    
     EVENT  THE  PROCEEDS  OF  WHICH   GO  TO  A  CHARITABLE                                                                    
     ORGANIZATION  WITH  TAX-FREE  STATUS  UNDER  26  U.S.C.                                                                    
     501(C)(3) AND  THAT THE ALASKA LEGISLATIVE  COUNCIL HAS                                                                    
     APPROVED  IN  ADVANCE;  THE  TICKETS  MAY  ENTITLE  THE                                                                    
     BEARER TO ADMISSION TO THE  EVENT, TO ENTERTAINMENT, TO                                                                    
     FOOD  OR  BEVERAGES,  OR TO  OTHER  GIFTS  OR  SERVICES                                                                    
     INVOLVED IN THE CHARITY EVENT;] or                                                                                         
          (11) a contribution to a charity event from any                                                                       
     person at any time;  in this paragraph, "charity event"                                                                    
     has  the  meaning  given in  [(10)]  (a)(2)B)  of  this                                                                
     subsection.                                                                                                                
     (d) A legislator or legislative  employee who accepts a                                                                  
     gift under (c)(4)  of this section that has  a value of                                                                    
     $250 or  more shall  disclose to the  committee, within                                                                    
     30  days  after  receipt  of the  gift,  the  name  and                                                                    
     occupation of  the donor and  the approximate  value of                                                                    
     the  gift.   A legislator  or legislative  employee who                                                                    
     accepts a  gift under (c)(8)  of this section  that the                                                                    
     recipient expects will have a  value of $250 or more in                                                                    
     the  calendar year  shall  disclose  to the  committee,                                                                    
     within 30 days after receipt  of the gift, the name and                                                                    
     occupation of  the donor, a general  description of the                                                                    
     matter  of legislative  concern with  respect to  which                                                                    
     the  gift is  made, and  the approximate  value of  the                                                                    
     gift.  The committee shall  maintain a public record of                                                                    
     the  disclosures it  receives relating  to gifts  under                                                                    
     (c)(4) and  (8) of this  section and shall  forward the                                                                    
     disclosures to  the appropriate house for  inclusion in                                                                    
     the  journal.    The  committee shall  forward  to  the                                                                    
     Alaska   Public  Offices   Commission  copies   of  the                                                                    
     disclosures concerning  gifts under  (c)(4) and  (8) of                                                                    
     this  section that  it  receives  from legislators  and                                                                    
     legislative  directors.   A  legislator or  legislative                                                                    
     employee  who  accepts  a   gift  under  (c)(6)of  this                                                                    
     section  that  has  a  value  of  $250  or  more  shall                                                                    
     disclose to  the committee annually on  or before March                                                                    
     15  the  name  and  occupation   of  the  donor  and  a                                                                    
     description of the gift.   The committee shall maintain                                                                    
     disclosures  relating to  gifts  under  (c)(6) of  this                                                                    
     section as  confidential records  and may only  use, or                                                                    
     permit  a committee  employee or  contractor to  use, a                                                                    
     disclosure  under   (c)(6)  of  this  section   in  the                                                                    
     investigation of  a possible violation of  this section                                                                    
     or  in  a proceeding  under  AS  24.60.170  .   If  the                                                                    
     disclosure under  (c)(6) of  this section  becomes part                                                                    
     of the record  of a proceeding under  AS 24.60.170, the                                                                    
     confidentiality  provisions of  that  section apply  to                                                                    
     the disclosure.                                                                                                            
                                                                                                                                
     (e) A political  contribution is not a  gift under this                                                                  
     section  if it  is reported  under AS  15.13.040 or  is                                                                    
     exempt   from  the   reporting  requirement   under  AS                                                                    
     15.13.040 (g).  The use  of a bulk mailing permit owned                                                                    
     by  a  legislator's campaign  committee  or  used in  a                                                                    
     legislator's election  campaign is  not a gift  to that                                                                    
     legislator under this section.                                                                                             
                                                                                                                                
     (f) Notwithstanding  (a) of this section,  a legislator                                                                  
     or legislative  employee may accept a  gift of property                                                                    
     worth  $250 or  more,  other than  money, from  another                                                                    
     government or  from an  official of  another government                                                                    
     if  the  person  accepts  the gift  on  behalf  of  the                                                                    
     legislature.   The person shall,  within 60  days after                                                                    
     receiving   the  gift,   deliver   the   gift  to   the                                                                    
     legislative   council,   which  shall   determine   the                                                                    
     appropriate  disposition   of  the   gift.     In  this                                                                    
     subsection,  "another   government"  means   a  foreign                                                                    
     government  or the  government  of  the United  States,                                                                    
     another    state,    a   municipality,    or    another                                                                    
     jurisdiction.                                                                                                              
                                                                                                                                
     (g) Notwithstanding  (a) of this section,  a legislator                                                                  
     or  legislative   employee  may  solicit,   accept,  or                                                                    
     receive a gift on  behalf of a recognized, nonpolitical                                                                    
     charitable organization.                                                                                                   
                                                                                                                                
     (h) A  legislator, a  legislative committee  other than                                                                  
     the  Select  Committee  on  Legislative  Ethics,  or  a                                                                    
     legislative agency may accept                                                                                              
          (1) a gift of volunteer services for legislative                                                                      
     purposes  so long  as  the person  making  the gift  of                                                                    
     services  is not  receiving  compensation from  another                                                                    
     source for the services; or                                                                                                
          (2)   the   services   of   a   trainee   who   is                                                                    
     participating  in an  educational  program approved  by                                                                    
     the committee if the services  are used for legislative                                                                    
     purposes.   The committee shall approve  training under                                                                    
     a  program of  the  University of  Alaska and  training                                                                    
     under 29  U.S.C. 2801 - 2945  (Workforce Investment Act                                                                    
     of  1998).    A legislative  volunteer  or  educational                                                                    
     trainee  shall  be  considered   to  be  a  legislative                                                                    
     employee for purposes of  compliance with this section,                                                                    
     AS   24.60.030  -   24.60.039,  24.60.060,   24.60.085,                                                                    
     24.60.158 - 24.60.170, 24.60.176,  and 24.60.178.  If a                                                                    
     person  believes   that  a  legislative   volunteer  or                                                                    
     educational trainee has violated  the provisions of one                                                                    
     of  those sections,  the person  may  file a  complaint                                                                    
     under AS  24.60.170 .   The provisions of  AS 24.60.170                                                                    
     apply to the proceeding.                                                                                                   
                                                                                                                                
     (i) A  legislator or legislative employee  who knows or                                                                  
     reasonably  should know  that [A]  an immediate  family                                                                
     member as defined in AS  24.60.990(a)(6) has received a                                                                
     gift  because of  the family  member's connection  with                                                                    
     the  legislator or  legislative  employee shall  report                                                                    
     the receipt  of the  gift by the  family member  to the                                                                    
     committee if the  gift would have to  be reported under                                                                    
     this section if it had  been received by the legislator                                                                    
     or legislative employee.   If receipt of the  gift by a                                                                    
     legislator or legislative  employee would be prohibited                                                                    
     under this section then receipt  by an immediate family                                                                    
     member is also prohibited.                                                                                                 
                                                                                                                                
     (j)  In this  section, the  value  of a  gift shall  be                                                                  
     determined by the fair market  value of the gift to the                                                                    
     extent that the fair market value can be determined.                                                                       
                                                                                                                                
     (k)  In [THIS]  subsection  (c)(6), "immediate  family"                                                          
     [OR "FAMILY MEMBER"] means                                                                                                 
          (1) the spouse of the person;                                                                                         
          (2) the person's domestic partner;                                                                                    
          (3) a child, including a stepchild and an                                                                             
     adoptive  child,  of  the person  or  of  the  person's                                                                    
     domestic partner;                                                                                                          
          (4) a parent, sibling, grandparent, aunt, or                                                                          
     uncle of the person;                                                                                                       
          (5) a parent, sibling, grandparent, aunt, or                                                                          
     uncle of  the person's spouse or  the person's domestic                                                                    
     partner;  and  a stepparent,  stepsister,  stepbrother,                                                                    
     step-grandparent,  step-aunt,  or   step-uncle  of  the                                                                    
     person, the  person's spouse, or the  person's domestic                                                                    
     partner.                                                                                                                   
                                                                                                                                
REPRESENTATIVE DAHLSTROM made a motion to adopt Amendment 4.                                                                    
                                                                                                                                
REPRESENTATIVE SAMUELS objected for the purposes of discussion.                                                                 
                                                                                                                                
REPRESENTATIVE  DAHLSTROM  explained  that Amendment  4  contains                                                               
clarifying  language  intended   to  restrict  [legislators]  and                                                               
immediate  family members  from  receiving  gifts from  lobbyists                                                               
throughout the  year, rather than  just the  legislative session.                                                               
It  also prohibits  legislative  employees  and immediate  family                                                               
members from  accepting such gifts.   She stated that  her intent                                                               
is to bring transparency to  government and the inner workings of                                                               
the legislature.  She opined  that these changes are necessary in                                                               
order to avoid the perception of improper influence.                                                                            
                                                                                                                                
REPRESENTATIVE  HOLMES pointed  out an  error in  subsection (k).                                                               
She explained  that this  section should  reference (c)(5).   She                                                               
offered this  as an  amendment to  Amendment 4.   There  being no                                                               
objection, Amendment 1 to Amendment 4 was adopted.                                                                              
                                                                                                                                
REPRESENTATIVE  GRUENBERG,  referring  to  subsection  (c)(7)  of                                                               
Amendment  4, offered  Amendment 2  to Amendment  4, to  add "the                                                               
Office  of Victims'  Rights"  following  "Legislative Budget  and                                                               
Audit Committee".                                                                                                               
                                                                                                                                
REPRESENTATIVE  DAHLSTROM  characterized   this  as  a  "friendly                                                               
amendment."  Therefore, Amendment 2 to Amendment 4 was accepted.                                                                
                                                                                                                                
REPRESENTATIVE   GRUENBERG,  referring   to  subsection   (d)  of                                                               
Amendment  4,  offered Amendment  3  to  Amendment 4,  to  change                                                               
"relating to  gifts under  (c)(4) and (8)"  to read  "relating to                                                               
gifts under (c)(4), (c)(8), and  (i)".  [Amendment 3 to Amendment                                                               
4 was treated as adopted.]                                                                                                      
                                                                                                                                
REPRESENTATIVE   GRUENBERG,  referring   to  subsection   (d)  of                                                               
Amendment  4,  offered Amendment  4  to  Amendment 4,  to  delete                                                               
"March 15", and insert "within 30 days of receipt of the gift".                                                                 
                                                                                                                                
CHAIR  RAMRAS  noted  that  Amendment  4  to  Amendment  4  is  a                                                               
"friendly amendment," and was therefore accepted.                                                                               
                                                                                                                                
[Amendment 4 to Amendment 4 was later treated as not accepted.]                                                                 
                                                                                                                                
REPRESENTATIVE DAHLSTROM commented that  Amendment 4 is currently                                                               
being drafted into  legal form by Legislative  Legal and Research                                                               
Services.                                                                                                                       
                                                                                                                                
2:04:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GRUENBERG,  referring   to  subsection   (d)  of                                                               
Amendment  4,  offered Amendment  5  to  Amendment 4,  to  delete                                                               
"annually on or  before March 15", and insert "within  30 days of                                                               
receipt of the gift".                                                                                                           
                                                                                                                                
CHAIR  RAMRAS  noted  that  Amendment  5  to  Amendment  4  is  a                                                               
"friendly amendment," and was therefore accepted.                                                                               
                                                                                                                                
REPRESENTATIVE   GRUENBERG,  referring   to  subsection   (d)  of                                                               
Amendment  4, offered  [Amendment 6  to Amendment  4], to  change                                                               
"copies  of the  disclosures  concerning gifts  under (c)(4)  and                                                               
(8)"  to  "copies  of  the  disclosures  concerning  gifts  under                                                               
(c)(4), (c)(8), and (i)".                                                                                                       
                                                                                                                                
REPRESENTATIVE  DAHLSTROM   noted  that   this  is   a  "friendly                                                               
amendment."    Therefore,  [Amendment   6  to  Amendment  4]  was                                                               
accepted.                                                                                                                       
                                                                                                                                
REPRESENTATIVE   GRUENBERG,  referring   to  subsection   (i)  of                                                               
Amendment 4,  offered [Amendment 7  to Amendment 4],  as follows:                                                               
following  "legislator  or  legislative employee  shall",  delete                                                               
"report" and insert  "disclose for publication under  (d) of this                                                               
section".                                                                                                                       
                                                                                                                                
REPRESENTATIVE  DAHLSTROM   noted  that   this  is   a  "friendly                                                               
amendment."    Therefore,  [Amendment   7  to  Amendment  4]  was                                                               
accepted.                                                                                                                       
                                                                                                                                
REPRESENTATIVE   GRUENBERG,  referring   to  subsection   (i)  of                                                               
Amendment 4,  offered [Amendment  8 to  Amendment 4]  as follows:                                                               
following "if the  gift would have to be",  delete "reported" and                                                               
insert "disclosed".                                                                                                             
                                                                                                                                
REPRESENTATIVE   DAHLSTROM   accepted   this   as   a   "friendly                                                               
amendment."    Therefore,  [Amendment   8  to  Amendment  4]  was                                                               
accepted.                                                                                                                       
                                                                                                                                
REPRESENTATIVE GRUENBERG, in response  to a question, stated that                                                               
he had no objection to Amendment 4, as amended.                                                                                 
                                                                                                                                
REPRESENTATIVE SAMUELS removed his objection.                                                                                   
                                                                                                                                
CHAIR RAMRAS objected for discussion purposes.                                                                                  
                                                                                                                                
2:10:21 PM                                                                                                                    
                                                                                                                                
JOYCE ANDERSON, Ethics  Committee Administrator, Select Committee                                                               
on Legislative  Ethics, Alaska State Legislature,  explained that                                                               
Amendment 4 would prohibit  legislators and legislative employees                                                               
from receiving gifts from lobbyists  at any time during the year.                                                               
Currently, legislators  and legislative employees  are prohibited                                                               
from  receiving gifts  during the  legislative session;  however,                                                               
during the interim, [they can receive]  gifts worth up to $250 in                                                               
a  calendar year.   She  explained  that Amendment  4 divides  AS                                                               
24.60.080(a)  into  two  subsections.     This  "cleans  up"  the                                                               
language  and offers  further clarification.   Additionally,  all                                                               
lobbyist  requirements  and  prohibitions  are  included  in  one                                                               
section.  Amendment 4 also  changes subsection (i) to include the                                                               
language "If receipt  of the gift by a  legislator or legislative                                                               
employee would be  prohibited under this section  then receipt by                                                               
an immediate family member is also prohibited".                                                                                 
                                                                                                                                
MS. ANDERSON went on to  say that subsection (a)(2) adds language                                                               
prohibiting legislators and  legislative employees from accepting                                                               
or receiving a gift of any  monetary value from a lobbyist or the                                                               
immediate family member of a lobbyist.                                                                                          
                                                                                                                                
REPRESENTATIVE  DAHLSTROM said,  "We've not  gone as  far as  the                                                               
executive branch in doing this;  we still have a full prohibition                                                               
on all  gifts, we  still have  our $250 rule  in place,  with the                                                               
exception of food and beverage."                                                                                                
                                                                                                                                
CHAIR RAMRAS removed his objection.                                                                                             
                                                                                                                                
REPRESENTATIVE GRUENBERG objected for  the purpose of discussion.                                                               
He  pointed out  that  subsection  (i) of  Amendment  4 uses  the                                                               
phrase "immediate  family member."   However,  it then  refers to                                                               
the definition  in AS  24.60.990(a)(6), which  defines "immediate                                                               
family."    He  surmised  that  this  will  require  a  technical                                                               
amendment to AS 24.60.990(a)(6)  to state that "immediate family"                                                               
or  "immediate family  member" has  this definition.   [This  was                                                               
treated and adopted as Amendment 9 to Amendment 4.]                                                                             
                                                                                                                                
REPRESENTATIVE GRUENBERG then removed his objection.                                                                            
                                                                                                                                
REPRESENTATIVE DAHLSTROM  pointed out  that in  subsection (a)(2)                                                               
of Amendment 4,  following the word "lobbyist", the  word "or" is                                                               
used twice but  should only be used once.   [This was treated and                                                               
adopted as Amendment 10 to Amendment 4.]                                                                                        
                                                                                                                                
MS.  ANDERSON,  with  regard  to  the  definition  of  "immediate                                                               
family," explained  that the definition included  AS 24.60.080 is                                                               
"very broad."   The definition of "immediate  family" included in                                                               
AS 24.60.990 is  a "more narrow definition," and  only includes a                                                               
person's spouse, domestic partner, child, or parents.                                                                           
                                                                                                                                
2:17:51 PM                                                                                                                    
                                                                                                                                
CHAIR RAMRAS,  noting that  there were  no further  objections to                                                               
Amendment 4, as amended, announced  that Amendment 4, as amended,                                                               
was adopted.                                                                                                                    
                                                                                                                                
CHAIR  RAMRAS referred  to  Amendment  5, labeled  25-GH1059\O.8,                                                               
Wayne, 3/19/07, which read:                                                                                                     
                                                                                                                                
     Page 1, lines 4 - 5:                                                                                                       
          Delete "restricting representation of others by                                                                     
     legislators and legislative employees;"                                                                                  
                                                                                                                                
     Page 13, lines 11 - 25:                                                                                                    
          Delete all material and insert:                                                                                       
        "* Sec. 16. AS 24.60.100 is amended to read:                                                                        
          Sec. 24.60.100. Representation. A legislator or                                                                     
     legislative employee who  represents another person for                                                                    
     compensation before an agency,  board, or commission of                                                                    
     the  state  shall  disclose  the  name  of  the  person                                                                    
     represented, the subject  matter of the representation,                                                                    
     and  the body  before  which the  representation is  to                                                                    
     take place  to the  committee. The disclosure  shall be                                                                    
     made   by  the   deadline   [DEADLINES]   set  out   in                                                                
     AS 24.60.105.  The committee  shall  maintain a  public                                                                    
     record of  a disclosure under this  section and forward                                                                    
     the disclosure  to the  respective house  for inclusion                                                                    
     in the  journal. A  legislator or  legislative employee                                                                    
     may  not  represent  another  person  for  compensation                                                                    
     before  an agency,  committee, or  other entity  of the                                                                    
     legislative branch."                                                                                                       
                                                                                                                                
REPRESENTATIVE DAHLSTROM made a motion to adopt Amendment 5.                                                                    
                                                                                                                                
CHAIR RAMRAS objected for discussion purposes.                                                                                  
                                                                                                                                
2:18:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  explained that Amendment 5  would amend                                                               
Section  16 of  the bill,  which he  opined is  "too broad."   He                                                               
stated that a  legislator or legislative employee  should be able                                                               
to provide  representation in  "quasi-judicial" actions,  but not                                                               
in "quasi-legislative" actions.                                                                                                 
                                                                                                                                
CHAIR RAMRAS disagreed, and said he maintains his objection.                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL  pointed out  that Section 16  prohibits a                                                               
legislator  or  legislative  employee from  representing  another                                                               
person  for  compensation  before a  municipal,  legislative,  or                                                               
executive branch.                                                                                                               
                                                                                                                                
REPRESENTATIVE GRUENBERG, in response to a question, said:                                                                      
                                                                                                                                
     Let us  say that  ... you're representing  a homeowner.                                                                    
     You practice  property law,  and you're  representing a                                                                    
     homeowner  before  the  Municipal Planning  and  Zoning                                                                    
     Commission  on a  variance.   That has  no relation  to                                                                    
     your  legislative duties  as a  state  legislator.   Or                                                                    
     you're  representing someone  who is  in an  appeal for                                                                    
     denial of  their permanent fund  dividend. ... Or  in a                                                                    
     purely private dispute for child  support.  Most of the                                                                    
     child support  actions occur before the  [Child Support                                                                    
     Enforcement  Division (CSED)].    Not that  many go  to                                                                    
     court.  They're generally  before a hearing officer, or                                                                    
     an  employee of  the [CSED].   And  that is  strictly a                                                                    
     factual question ...  it has nothing at all  to do with                                                                    
     your legislative [responsibilities].                                                                                       
                                                                                                                                
REPRESENTATIVE  COGHILL surmised,  then, that  Amendment 5  would                                                               
allow  a  legislator  to  represent   an  individual  before  the                                                               
Workers' Compensation  Board.   He then  stated his  objection to                                                               
Amendment 5.                                                                                                                    
                                                                                                                                
2:22:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SAMUELS asked if "represent" is a legal term.                                                                    
                                                                                                                                
MR. JONES  indicated that he interprets  it to be so.   He shared                                                               
his belief  that if  an individual  who is not  a lawyer  were to                                                               
"represent"  someone for  compensation, there  may be  a risk  of                                                               
practicing law without a license.                                                                                               
                                                                                                                                
REPRESENTATIVE SAMUELS said:                                                                                                    
                                                                                                                                
     So, if  my staff -  that's a legislative employee  - if                                                                    
     my staff  runs a  campground during the  summertime ...                                                                    
     and she is asked by  her employer, "Can you walk across                                                                    
     the   street   and   talk   to   [the   Department   of                                                                    
     Environmental   Conservation  (DEC)]   about  a   water                                                                    
     discharge permit  for me on  your lunch hour?"  ... Can                                                                    
     she go talk to DEC about something like that?                                                                              
                                                                                                                                
MR. JONES replied that he is  not sure whether this would qualify                                                               
as "representation."                                                                                                            
                                                                                                                                
REPRESENTATIVE   SAMUELS  opined   that   if   a  legislator   is                                                               
representing  an  individual  before  the  Workers'  Compensation                                                               
Board and is  voting on issues related  to workers' compensation,                                                               
there  is a  problem.    He stated  that  if "representation"  is                                                               
referring to  legal representation, he  is in agreement  with the                                                               
current language.   However, he  commented that there is  a "gray                                                               
area" regarding what constitutes "representation."                                                                              
                                                                                                                                
REPRESENTATIVE  HOLMES  opined  that  both Amendment  5  and  the                                                               
language  contained in  the bill  are "over  broad."   She stated                                                               
that court  proceedings are "long  and drawn out  and expensive,"                                                               
adding that many things are  done before boards, commissions, and                                                               
agencies.  She stated that  this would "hamstring" the ability of                                                               
persons  covered  by this  statute  to  practice law  during  the                                                               
interim in order to earn a living.                                                                                              
                                                                                                                                
2:26:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SAMUELS said:                                                                                                    
                                                                                                                                
     The  problem with  the amendment,  then, is  the person                                                                    
     you are talking  to knows that you're going  to vote on                                                                    
     their budget.  They know you  are.  You cannot get away                                                                    
     from the politics  of that.  And that's ...  the more I                                                                    
     think  about it,  the more  I  like the  way that  it's                                                                    
     written in the bill now.   Because, you cannot help it.                                                                    
     You walk before  any body and they all know  who we all                                                                    
     are.  They  know it.  They know who  you are, they know                                                                    
     what  you do  for  a  living, and  they  know you  have                                                                    
     inordinate  more influence  than another  attorney from                                                                    
     the outside coming  in.  And the  perception of swaying                                                                    
     that  decision will  weigh heavy.    In every  lawsuit,                                                                    
     somebody  loses.    Whoever loses  is  going  to  think                                                                    
     "Well, I'll go hire myself a legislator next time."                                                                        
                                                                                                                                
REPRESENTATIVE  GRUENBERG   stated  that  hearing   officers  and                                                               
administrative  law  judges  are  "virtually bound  by  the  same                                                               
canons of  ethics as  a judge."   He  said:   "You might  as well                                                               
prohibit lawyers  from practicing  in court,  because we  vote on                                                               
the court  budget, too. ... If  there is a threat  of your voting                                                               
on a budget, than  a person owns a hotel, or  is a contractor, or                                                               
a realtor, or anybody, they  should be absolutely prohibited from                                                               
having any  business dealings  with the  government."   He stated                                                               
that he  would prepare  an amendment to  prohibit all  persons in                                                               
the  legislature  from  dealing  with  "any  government,  at  any                                                               
level."                                                                                                                         
                                                                                                                                
REPRESENTATIVE COGHILL  stated that  the question is  whether "to                                                               
disclose" or  "to prohibit."   He opined that the  bill prohibits                                                               
representation for compensation in  areas where legislators would                                                               
carry  significant  influence.    He compared  this  to  previous                                                               
concerns  brought up  by  Representative  Neuman, and  questioned                                                               
whether  disclosing  this information  makes  a  difference.   He                                                               
opined that  disclosure may become  a way for individuals  to use                                                               
this information  as "the whipping  tool."  He shared  his belief                                                               
that the prohibition, for the public process, is better.                                                                        
                                                                                                                                
REPRESENTATIVE HOLMES,  with regard  to whether  individuals will                                                               
be influenced  by the  legislators, opined that  this is  true in                                                               
areas outside of  the government.  She said "So,  to suggest that                                                               
it's simply  a lawyer  going in  front of  an agency,  that those                                                               
people are  going to be  worried about retaliation, and  that the                                                               
same does not  hold true for people who are  not lawyers, I think                                                               
is a false distinction."  She  stated that she is not 100 percent                                                               
convinced by  Amendment 5; however,  if the amendment  fails, she                                                               
would  return with  an amendment  that is  "more in  the middle."                                                               
She shared  her belief that  [the current language]  would hinder                                                               
an individual's ability  to "have a normal life,"  adding that it                                                               
is unfair to target one profession over others.                                                                                 
                                                                                                                                
2:32:17 PM                                                                                                                    
                                                                                                                                
A  roll  call  vote  was   taken.    Representatives  Holmes  and                                                               
Gruenberg  voted  in  favor  of  Amendment  5.    Representatives                                                               
Dahlstrom, Coghill,  Samuels, Lynn, and Ramras  voted against it.                                                               
Therefore, Amendment 5 failed by a vote of 2-5.                                                                                 
                                                                                                                                
CHAIR  RAMRAS referred  to  Amendment  6, labeled  25-GH1059\O.5,                                                               
Wayne, 3/16/07, which read:                                                                                                     
                                                                                                                                
     Page 14, line 29, following "a":                                                                                           
          Insert "final"                                                                                                        
                                                                                                                                
     Page 14, line 30, following "serving":                                                                                     
          Insert ", unless the person previously disclosed                                                                      
     the  matter and,  for  that reason,  the  matter is  no                                                                    
     longer subject to disclosure"                                                                                              
                                                                                                                                
REPRESENTATIVE DAHLSTROM made a motion to adopt Amendment 6.                                                                    
                                                                                                                                
CHAIR  RAMRAS objected  for discussion  purposes.   He  explained                                                               
that  this  is a  "housekeeping  amendment,"  which will  address                                                               
disclosure after a person's final day of service.                                                                               
                                                                                                                                
REPRESENTATIVE GRUENBERG pointed out  that as written, [Amendment                                                               
6] could require an individual to  go back 20 years, which is not                                                               
the intent.  He then explained the intent.  He said:                                                                            
                                                                                                                                
     For example, let's say somebody  no longer serves after                                                                    
     the ...  [25th legislature].   The last  report [he/she                                                                    
     will  do] is  on March  15, 2008.   They'll  be out  of                                                                    
     office January 15, 2009.   The intent of this provision                                                                    
     is to  require that  by April 15,  2009, 90  days after                                                                    
     they  leave office,  they will  file a  report covering                                                                    
     January 1,  2008 through January  15, 2009.   Not going                                                                    
     back  20  years.    And  we're  technically  having  it                                                                    
     drafted to do it.  This language doesn't do it now.                                                                        
                                                                                                                                
MS.  ANDERSON  explained that  this  is  "somewhat true."    Most                                                               
disclosures are  filed either  on March  15 or  up until  30 days                                                               
prior to  the end of  session.  Therefore, the  disclosure period                                                               
is  through  January  15.    With  regard  to  Amendment  6,  she                                                               
expressed   concern  with   the  language   "unless  the   person                                                               
previously  disclosed  the matter."    She  stated that  a  final                                                               
report is  needed to  ensure that there  were not  any additional                                                               
changes.    This can  either  be  re-reporting what  was  already                                                               
reported,  or  a  final  reporting stating  that  there  were  no                                                               
changes.  She relayed her belief  that this would be true for the                                                               
APOC with regard to financial disclosure.                                                                                       
                                                                                                                                
CHAIR RAMRAS withdrew Amendment 6.                                                                                              
                                                                                                                                
2:37:26 PM                                                                                                                    
                                                                                                                                
CHAIR  RAMRAS referred  to  Amendment  7, labeled  25-GH1059\O.9,                                                               
Wayne, 3/19/07, which read [original punctuation provided]:                                                                     
                                                                                                                                
     Page 15, line 23:                                                                                                          
          Delete "part"                                                                                                         
          Insert "members"                                                                                                      
                                                                                                                                
     Page 15, line 26:                                                                                                          
          Delete "part"                                                                                                         
          Insert "a member"                                                                                                     
                                                                                                                                
REPRESENTATIVE DAHLSTROM made a motion to adopt Amendment 7.                                                                    
                                                                                                                                
REPRESENTATIVE HOLMES objected for discussion purposes.                                                                         
                                                                                                                                
REPRESENTATIVE  GRUENBERG  explained  that this  is  a  technical                                                               
amendment  which clarifies  that a  person is  a "member"  of the                                                               
majority.                                                                                                                       
                                                                                                                                
REPRESENTATIVE HOLMES withdrew her objection.                                                                                   
                                                                                                                                
CHAIR  RAMRAS,  noting  that  there  was  no  further  objection,                                                               
announced that Amendment 7 was adopted.                                                                                         
                                                                                                                                
MS. ANDERSON,  referring to Section  20, suggested that  the word                                                               
"organizational"  be   added  before  the  word   "caucus",  thus                                                               
changing it to read "majority  organization caucus" and "minority                                                               
organizational   caucus".      She  explained   that   the   term                                                               
"organizational caucus" is used in the Uniform Rules.                                                                           
                                                                                                                                
REPRESENTATIVE SAMUELS  made a  motion to  adopt Amendment  8, to                                                               
add the word "organizational" before  "caucus", thus changing the                                                               
term   to   "majority    organization   caucus"   and   "minority                                                               
organizational caucus".                                                                                                         
                                                                                                                                
REPRESENTATIVE GRUENBERG objected for discussion purposes.  He                                                                  
asked whether this would only apply to Section 20.                                                                              
                                                                                                                                
MS. ANDERSON replied that it would only apply to Section 20.                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG withdrew his objection.                                                                                
                                                                                                                                
CHAIR RAMRAS, noting that there was no further objection,                                                                       
announced that Amendment 8 was adopted.                                                                                         
                                                                                                                                
2:39:22 PM                                                                                                                    
                                                                                                                                
CHAIR RAMRAS referred to Amendment 9, which read [original                                                                      
punctuation provided]:                                                                                                          
                                                                                                                                
     Page 21, line 21:                                                                                                          
          Delete "$5,000"                                                                                                       
          Insert "$1,000"                                                                                                       
                                                                                                                                
     Page 21, line 31:                                                                                                          
          Delete "if the income was earned by the hour,"                                                                        
                                                                                                                                
     Page 22, line 1, following "worked":                                                                                       
          Insert "to earn the income"                                                                                           
                                                                                                                                
     Page 22, line 10:                                                                                                          
          Delete "$5,000"                                                                                                       
          Insert "$1,000"                                                                                                       
                                                                                                                                
     Page 22, line 17:                                                                                                          
          Delete "$5,000"                                                                                                       
          Insert "$1,000"                                                                                                       
                                                                                                                                
     Page 22, line 20:                                                                                                          
          Delete "$5,000"                                                                                                       
          Insert "$1,000"                                                                                                       
                                                                                                                                
     Page 22, line 24:                                                                                                          
          Delete "$5,000"                                                                                                       
          Insert "$1,000"                                                                                                       
                                                                                                                                
     Page 22, line 27:                                                                                                          
          Delete "$5,000"                                                                                                       
          Insert "$1,000"                                                                                                       
                                                                                                                                
CHAIR RAMRAS, in response to a request from Representative                                                                      
Samuels, stated that Amendment 9 would be tabled until a future                                                                 
time.                                                                                                                           
                                                                                                                                
CHAIR RAMRAS then referred to Amendment 10, labeled 25-                                                                         
GH1059\O.10, Wayne, 3/19/07, which read:                                                                                        
                                                                                                                                
     Page 23, line 1, following "partnership":                                                                                  
          Insert ", limited liability company,"                                                                             
                                                                                                                                
     Page 23, line 6, following "partnership":                                                                                  
          Insert ", limited liability company,"                                                                             
                                                                                                                                
     Page 23, following line 9:                                                                                                 
     Insert a new bill section to read:                                                                                         
        "* Sec. 32. AS 39.50.030(h) is amended to read:                                                                     
          (h)  In this section,                                                                                                 
               (1)  [REPEALED                                                                                                   
               (2)]  "close economic association" means a                                                                       
     financial  relationship that  exists  between a  public                                                                    
     official   required  to   disclose  a   close  economic                                                                    
     association under  (d) of this  section and  some other                                                                    
     person or  entity, including  a relationship  where the                                                                    
     public official  serves as a consultant  or advisor to,                                                                    
     is a  member or representative  of, or has  a financial                                                                    
     interest  in   an  association,   partnership,  limited                                                                
     liability company, business, or corporation;                                                                           
               (2) [(3)]  "lobbyist" has the meaning given                                                                  
     in AS 24.60.990(a);                                                                                                        
               (3) [(4)]  "public officer" has the meaning                                                                  
     given in AS 39.52.960. "                                                                                                   
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 25, following line 24:                                                                                                
     Insert a new bill section to read:                                                                                         
      "* Sec. 35. AS 39.50.200(a)(10) is amended to read:                                                                   
               (10)  "source of income" means the entity                                                                        
     for  which service  is performed  or that  is otherwise                                                                    
     the origin  of payment; if  the person whose  income is                                                                    
     being reported is employed by  another, the employer is                                                                    
     the  source  of income;  but  if  the person  is  self-                                                                    
     employed   by   means   of   a   sole   proprietorship,                                                                    
     partnership,  limited  liability company,  professional                                                                
     corporation, or a corporation in  which the person, the                                                                    
     person's spouse  or domestic  partner, or  the person's                                                                    
     dependent children,  or a combination  of them,  hold a                                                                    
     controlling  interest, the  "source" is  the client  or                                                                    
     customer  of the  proprietorship, partnership,  limited                                                                
     liability company,  or corporation, but, if  the entity                                                                
     that is  the origin of payment  is not the same  as the                                                                    
     client or  customer for whom the  service is performed,                                                                    
     both are considered the source."                                                                                           
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 27, line 29:                                                                                                          
          Delete "sec. 36"                                                                                                      
          Insert "sec. 38"                                                                                                      
                                                                                                                                
     Page 27, line 30:                                                                                                          
          Delete "sec. 36"                                                                                                      
          Insert "sec. 38"                                                                                                      
                                                                                                                                
     Page 27, line 31:                                                                                                          
          Delete "sec. 37"                                                                                                      
          Insert "sec. 39"                                                                                                      
                                                                                                                                
     Page 28, line 3:                                                                                                           
          Delete "sec. 37"                                                                                                      
          Insert "sec. 39"                                                                                                      
                                                                                                                                
     Page 28, line 4:                                                                                                           
          Delete "sec. 38"                                                                                                      
          Insert "sec. 40"                                                                                                      
                                                                                                                                
     Page 28, line 8:                                                                                                           
          Delete "sec. 38"                                                                                                      
          Insert "sec. 40"                                                                                                      
                                                                                                                                
     Page 28, line 10:                                                                                                          
          Delete "sec. 33"                                                                                                      
          Insert "sec. 34"                                                                                                      
                                                                                                                                
     Page 28, line 11:                                                                                                          
          Delete "secs. 42 and 43"                                                                                              
          Insert "secs. 44 and 45"                                                                                              
                                                                                                                                
REPRESENTATIVE DAHLSTROM made a motion to adopt Amendment 10.                                                                   
                                                                                                                                
CHAIR RAMRAS objected for discussion purposes.                                                                                  
                                                                                                                                
REPRESENTATIVE GRUENBERG explained that this cleans up changes                                                                  
made by the House State Affairs Standing Committee.  Amendment                                                                  
10 adds "limited liability company"  to the list of financial and                                                               
business  interests that  must be  reported.   He explained  that                                                               
[the  original] statute  was  drafted prior  to  the adoption  of                                                               
limited liability company (LLC) legislation.                                                                                    
                                                                                                                                
CHAIR RAMRAS removed his objection,  and, after ascertaining that                                                               
there was no  further objection, announced that  Amendment 10 was                                                               
adopted.                                                                                                                        
                                                                                                                                
CHAIR RAMRAS outlined how the  committee would be proceeding with                                                               
regard  to public  testimony, the  bill, and  proposed amendments                                                               
during  the   next  meeting  of  the   House  Judiciary  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
[CSHB 109(STA), as amended, was held over.]                                                                                     

Document Name Date/Time Subjects