Legislature(2001 - 2002)
03/22/2001 09:11 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 103(JUD)
"An Act relating to election campaigns and legislative ethics."
JEFF BALASH, staff to Senate State Affairs Committee, indicated
that he would walk through the Judiciary Committee Substitute (CS).
He explained that Section 1 codified the current interpretation and
regulation of the Alaska Public Offices Commission (APOC)
concerning different groups under the control of a single candidate
being treated as such towards the limit for contributions. Section
2 makes some clarifications as to the types of things that can be
paid for with surplus campaign funds.
Senator Green requested clarification with regards to Section 1.
Mr. Balash clarified that if a number of groups are under the
control of a single candidate than they are all bound by the
contribution limits and they are treated as one group.
Senator Therriault further clarified, "Basically, for Gene
Therriault, I could have, the friends and neighbors for Gene
Therriault and I could also have the nonpartisans for Gene
Therriault. My campaign effort could be split into different
groups, but if I control them than they all fall under the
contribution limit for Gene Therriault."
Mr. Balash indicated that Section 2 made changes to the allowances
for the use of surplus campaign funds. He explained that it allows
for thank you advertisements and seasonal greeting cards and also
removes the Public Office Expense Term (POET) account reserve to
help eliminate additional paperwork that successful candidates have
to go through each year. He added that this would allow the entire
lump sum to be transferred to the POET account and would eliminate
the reserve mechanism.
Senator Therriault said that he believes the Alaska Public Offices
Commission (APOC) supported the change. He indicated that APOC was
asked for the justification of the reserve account and they thought
that it came from some concern over federal taxation of the reserve
and that justification was not there anymore. He expressed that it
never made sense to him to have a separate checking account that he
wrote one check from each year just to transfer money from the
reserve account to the POET account. He referred to page 3, lines
21 and 22, pointing out that the transfer is limited to $10,000 for
House seats and $20,000 for Senate seats. He noted that it use to
be $5,000 per year multiplied by the number of years; in the
current bill version it simply states the entire amount.
Mr. Balash referred to Section 3 and indicated that it made changes
to the allowances for items that would be retained by the candidate
in terms of personal property, for example, seasonal greeting
cards, photographs used in the campaign and campaign signs.
Section 4 made a change to the uses of state funds, which was
necessary to conform to a later section regarding legislator's
ability to campaign for or against constitutional amendments.
Section 5 clarified the definition of contribution and also allowed
for a political party to send out two mass mailings per election.
Section 6 covered the definition of expenditures.
AT EASE 10:42 AM/10:43 AM
Mr. Balash referred to Section 7, which made conforming amendments
to the ethics code to allow legislators to use their offices longer
before and after session. Furthermore, it made an allowance for
the use of resources by a legislator toward state or federal
amendments to the constitution. Finally, Section 9 is a
transitional provision dealing with funds already in the POET
reserve account, which needs to be transferred to the POET account.
Senator Therriault pointed out that there was quite a bit of
controversy originally with regards to legislators and their
employees interacting with initiatives. He believed that it was
appropriate that a proposed constitutional amendment come from the
legislature, quite often an individual legislator, and a legislator
should be able to act as advocate for that amendment.
Amendment #1:
Page 6, line 5:
Delete "or"
Page 6, line 9, following ";":
Insert "or
(v) any communication in the form of a
newsletter from a legislator to the legislator's
constituents, except a communication expressly
advocating the election or defeat of a candidate;"
Page 8, line 13:
Delete "or"
Page 8, line 16, following ";":
Insert "or
(K) a legislator from sending any
communication in the form of a newsletter to the
legislator's constituents, except a communication
expressly advocating the election or defeat of a
candidate;"
Co-Chair Donley moved to adopt the amendment.
There was no objection and Amendment #1 was adopted.
Amendment #2:
Page 6, line 4
delete "photographs and biographies of"
insert "information about"
Page 9, line 26
after "solicit"
insert "or receive"
Co-Chair Donley moved to adopt the amendment.
Co-Chair Kelly asked if there was any objection.
Senator Leman objected and offered a friendly amendment to the
amendment to include photographs.
Co-Chair Donley clarified that the amendment to the amendment would
insert, "photographs, biographies, and information about".
There was no objection and the amendment to the amendment was
adopted.
Co-Chair Kelly indicated that Amendment #2 was before the Committee
and asked if there was any objection.
There was no objection and Amendment #2 was adopted.
Amendment #3:
Page 5, line 23-28, as follows:
Delete:
(i) services provided without compensation by individuals
volunteering a portion or all of their time on behalf of a
political party, candidate, or ballot proposition or question
[, BUT IT DOES INCLUDE PROFESSIONAL SERVICES VOLUNTEERED BY
INDIVIDUALS FOR WHICH THEY ORDINARILY WOULD BE PAID A FEE OR
WAGE];
Insert:
(i) services provided without compensation by individuals
volunteering a portion or all of their time on behalf of a
political party, candidate, or ballot proposition or question,
but it does include professional services, other than legal or
accounting services, volunteered by individuals for which they
ordinarily would be paid a fee or wage;
New Text Underlined [DELETED TEXT BRACKETED]
Co-Chair Donley explained that Amendment #3 would tighten up the
Judiciary version of the bill, Version W, clarifying that the only
exception to professional services being offered or volunteered to
a campaign would be for legal or accounting services. He made a
motion to adopt the amendment.
Co-Chair Kelly indicated that the change would be fairly
significant. He asked if there was any objection to the amendment.
There was no objection and Amendment #3 was adopted.
Amendment #4:
Page 9, following line 26:
Insert a new bill section to read:
Sec. 8. AS 24.60.080(c) is amended to read:
(c) Notwithstanding (a) of this section, it is not
a violation of this section for a
legislator or legislative employee to accept
(1) hospitality, other than hospitality
described in (4) of this
subsection,
(A) with incidental transportation at
the residence of a person; however, a vacation home
located outside the state is not considered a residence
for the purposes of this subparagraph; or
(B) at a social event or meal;
(2) discounts that are available
(A) generally to the public or to a
large class of persons to which the person belongs; or
(B) when on official state business, but
only if receipt of the discount benefits the state;
(3) food or foodstuffs indigenous to the
state that are shared generally as a cultural or social
norm;
(4) travel and hospitality primarily for the
purpose of obtaining information on matters of
legislative concern;
(5) gifts from the immediate family of the
person;
(6) gifts that are not connected with the
recipient's legislative status;
(7) a discount for all or part of a
legislative session, including time immediately
preceding or following the session, or other gift to
welcome a legislator or legislative employee who is
employed on the personal staff of a legislator or by a
standing or special committee to the capital city or in
recognition of the beginning of a legislative session
if the gift or discount is available generally to all
legislators and the personal staff of legislators and
staff of standing and special committees; this
paragraph does not apply to legislative employees who
are employed by the Legislative Affairs Agency, the
office of the chief clerk, the office of the senate
secretary, the legislative budget and audit committee,
or the office of the ombudsman;
[OR]
(8) a gift of legal services in a matter of
legislative concern and a gift of other services related
to the provision of legal services in a matter of
legislative concern; or
(9) a gift of transportation from a legislator to a
legislator if transportation takes place in the state on
or in an aircraft, boat, motor vehicle, or other means of
transport owned or under the control of the donor; this
paragraph does not apply to travel described in (4) of
this subsection or travel for political campaign
purposes."
Senator Olson addressed Amendment #4.
SFC 01 # 51, Side A 10:52 AM
Senator Olson noted that in his district access to most areas is
limited to air transportation and it is for this reason that he
asked that the Committee adopt Amendment #4. He moved for the
adoption of the amendment.
Co-Chair Kelly asked if there was any objection. There was no
objection and Amendment #4 was adopted.
Co-Chair Donley moved to report CS SB 103 (JUD), 22-LS0148/W, as
amended from Committee.
Co-Chair Kelly interjected that there were people to testify on the
bill that he had overlooked.
BROOKE MILES, Director, Alaska Public Offices Commission (APOC),
testified via teleconference, thanked the Committee for taking up
Amendment #3, which addressed volunteer professional services. She
referred to page 6, line 6 and explained that under the proposed
language any person is prohibited from campaign contributions,
other than lobbyists, to conduct a poll and give the results to a
campaign unless the poll was designed to primarily benefit the
candidate. She expressed concern with regards to that language and
said that the Commission saw this as administratively difficult.
She referred to page 5, line 6 and the Commission identified this
as costly, because it recognized a major change in current policy
that would substantially restrict public money either to support or
oppose ballot questions. She further explained that current law
required that public funds could only be used to support ballot
questions specifically appropriated to that purpose by state law
and municipal ordinance.
Senator Green requested clarification that if after two mailings
they are taken over the contribution limit, which would put them in
violation and they had no part of the decision making as to what
group advertisements would contain their information.
Ms. Miles responded after two free mailings for each election if
the state party or state party sub-division does a state mailing
then yes it would be considered a state contribution.
SUSIE BARNETT commented that the Ethics Committee has always
supported communication with constituents when the communication
relates to access to the elected official or reporting on
legislative matters. She believed that was the intent of Amendment
#1 was to preserve that important function. She pointed out that
there is a conflict in statute, AS 24.60.030 c.2 sets out certain
parameters on mass mailings using funds other than office
allowance. Secondly, the amendment actually broadens the current
interpretation and practice of most legislators to allow activities
beyond those of legislative matters. She recommended that they
consider different language.
Co-Chair Kelly asked Ms. Barnett to fax those recommendations to
Senator Therriault's office.
Co-Chair Donley indicated that he had spoke with the drafters that
morning and since the prohibition that Ms. Barnett spoke of was a
specific prohibition the bill would not negate that.
Ms. Barnett referred to Amendment #4 offered by Senator Olson and
said that the amendment appeared to tilt the playing field in favor
of those able to provide those types of gifts. She recommended
that they consider requiring public disclosure of acceptance of
gifts of that type.
Co-Chair Kelly reported that the bill would be HELD in Committee.
[Heard and Held]
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