Legislature(1997 - 1998)

05/05/1998 02:00 PM House FIN

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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SENATE BILL NO. 105                                                            
                                                                               
"An Act relating to legislative ethics; relating to the                        
filing of disclosures by certain legislative employees                         
and officials; and providing for an effective date."                           
                                                                               
Representative Kelly MOVED to ADOPT work draft #0-LS0074\J,                    
dated 5/4/98.  There being NO OBJECTION, it was so ordered.                    
                                                                               
BEN BROWN, STAFF, SENATOR KELLY reviewed the sectional                         
analysis for HCS CSSB 105 (FIN), #0-LS0074\J.                                  
                                                                               
SECTION 1: AS 15.13.040(i)  DONATION OF SPACE NOT CONSIDERED                   
A  CONTRIBUTION  This section adds a new subsection which                      
allows donation of space for the posting of political signs,                   
for storage, or for an event without consideration of the                      
donation as a campaign contribution.                                           
                                                                               
SECTION 2: AS 15.13.070(e)  LIMITED USE OF CAMPAIGN FUNDS                      
FOR PARTY-RELATED EXPENSES  This section adds a new                            
subsection which allows a candidate to expend up to $1000                      
annually from a campaign account to pay for attendance at                      
political party events, for party membership, or to sponsor                    
party functions.                                                               
                                                                               
SECTION 3: AS 15.13.072(d)  PROHIBITED SOLICITATION &                          
ACCEPTANCE OF CONTRIBUTIONS  This section prohibits                            
legislative candidates from soliciting or accepting                            
contributions while the Legislature is convened in regular                     
or special session, unless the candidate's election is                         
within 90 days and the solicitation or acceptance takes                        
place somewhere other than the capital city.                                   
                                                                               
SECTION 4: AS 15.13.072(g)  PROHIBITED SOLICITATION &                          
ACCEPTANCE OF CONTRIBUTIONS  This section adds a new                           
subsection which prohibits candidates for governor and                         
lieutenant-governor from soliciting or accepting                               
contributions in the capital city while the Legislature is                     
convened in regular or special session.                                        
                                                                               
SECTION 5: AS 15.13.074(c)  PROHIBITED CONTRIBUTIONS  This                     
section prohibits a person or group from contributing to a                     
candidate for governor or lieutenant- governor before the                      
1st of January of a general election year or before the date                   
of a proclamation calling for a special election.  It                          
prohibits a person or group from contributing to a                             
legislative candidate while the legislature is convened in                     
regular or special session, unless the candidate's election                    
is within 90 days and the solicitation or acceptance takes                     
place somewhere other than the capital city.  Section 5                        
lengthens the period of time after an election in which a                      
candidate may continue to raise money to the earlier of                        
either 60 days after the election or the end of the calendar                   
year.                                                                          
                                                                               
Sections 6 - 27 were not changed in work draft J.                              
                                                                               
SECTION 28: AS 24.60.080(c)  GIFT RESTRICTION EXEMPTIONS  A                    
new subsection 8 was added on page 20.  It clarifies that a                    
stay in a vacation home located outside Alaska is not an                       
exempted gift.  It allows legislators and legislative                          
employees to accept discounts while on State business if the                   
discount benefits the State.  It allows legislators and                        
their personal staff (but not other legislative employees)                     
to accept discounts and welcoming gifts in the capital city                    
during session.  Section 28 allows receipt of a gift worth                     
more than $250 of legal services related to a matter of                        
legislative concern.                                                           
                                                                               
SECTION 29: AS 24.60.080(d)  GIFT REPORTING  This section                      
increases the reference to the maximum cumulative annual                       
gift limit from $100 to $250.  It mandates reporting of                        
gifts of travel or legal services within 30 days of receipt.                   
It changes the reporting deadline for gifts not related to                     
legislative status to the 15th of March of the following                       
year, and specifies that the disclosure need include only a                    
description of the gift and the giver's identity (not the                      
actual value).  Section 29 also calls for the Ethics                           
Committee to forward gift disclosures by legislators and                       
legislative directors to the Alaska Public Offices                             
Commission (APOC).                                                             
                                                                               
Sections 30 through 43 were not changed by the committee                       
substitute.                                                                    
                                                                               
SECTION 44: AS 24.60.170(a)  INITIATION OF COMPLAINTS                          
Section 44 removes the committee's ability to initiate                         
complaints on its own aggregate motion, but does not remove                    
any individual committee member's right to initiate a                          
complaint.                                                                     
                                                                               
Sections 45 through 47 remained the same.                                      
                                                                               
SECTION 48: AS 24.60.170(g) CORRECTIVE ACTIONS  New language                   
was added on lines 8 - 13, on page 30.  This section allows                    
the ethics committee to issue an opinion (which must go to                     
both the complainant and the subject) recommending                             
corrective action after finding probable cause that a                          
violation occurred.  It lets the subject request a                             
confidential meeting with the committee within 20 days of                      
receipt of the opinion, at which the committee must explain                    
its reasons for recommending corrective action.  It then                       
allows the subject to comply with the opinion or request a                     
hearing under subsection (j), and lets the committee amend                     
or affirm the opinion after this hearing.  Section 48 sets                     
out that if a subject agrees to comply with an opinion but                     
fails to do so in a timely manner, the committee may                           
formally charge the person under subsection (h) or refer the                   
matter to a supervisory authority.  It empowers the                            
supervisory authority to enforce corrective actions, or                        
decline to do so and refer the matter back to the committee,                   
which retains the power formally to charge the person.                         
                                                                               
Sections 49 and 50 remain the same.                                            
                                                                               
SECTION 51: AS 24.60.170(l)  CONFIDENTIALITY  New language                     
that was added to the end of Section 51 was deleted by the                     
committee substitute.  The Department of Law advised that                      
the new language was unnecessary.  This section provides                       
that ethics committee proceedings are confidential until the                   
determination of probable cause, and that complaints and all                   
documents produced or disclosed in the course of an                            
investigation are confidential as well.  It mandates that                      
the committee transmit information obtained in the course of                   
an investigation to appropriate enforcement authorities.                       
Section 51 clarifies that all meetings of the committee                        
concerning complaints are closed to the public and non-                        
members of the committee, though the committee may permit                      
the subject of a complaint to attend a meeting other than                      
deliberation on probable cause.  It allows the subject to                      
waive the confidentiality provisions of this section.                          
                                                                               
Sections 52 through 58 were not changed.                                       
                                                                               
SECTION 59: AS 24.60.210  DEADLINES FOR FILING  This section                   
changes the deadline for filing an LFD from the 15th of                        
April to the 15th of March.                                                    
                                                                               
SECTION 60: AS 24.60.240  CIVIL PENALTY FOR LATE FILING                        
This section changes the reference to who must file an LFD                     
to include public members of the ethics committee as well as                   
legislative directors and legislators.                                         
                                                                               
SECTION 61: AS 24.60.250(a), (b) & (c)  EFFECTS OF FAILURE                     
TO FILE  This section sets out what APOC must do if an                         
incumbent legislator fails to file an LFD by the 15th of                       
March.  It establishes that APOC notifies the candidate that                   
the report is late, and if the candidate still refuses to                      
file within 30 days, APOC informs the Lieutenant Governor of                   
the failure to file.  The candidate then forfeits nomination                   
to office and may not be seated.  The lieutenant governor                      
may not certify the person's nomination, and the results of                    
the person's election are certified according to                               
39.50.060(b).  Subsection (b) sets out that if a public                        
member fails to file, APOC must notify the appropriate                         
presiding officer.  Subsection (c) sets out that APOC must                     
notify Leg Council or LB&A if a legislative director fails                     
to file.                                                                       
                                                                               
In response to a question by Representative Mulder, Mr.                        
Brown explained that if a disclosure is not made by the 15th                   
of March there is a civil fine of $10 dollars a day.  If                       
disclosure is not made within 30 days of the 15th of March                     
the penalty would be the inability to run for office or a                      
lose of office.                                                                
                                                                               
In response to a question by Representative Martin, Mr.                        
Brown noted that a subject might ask that confidentiality be                   
waived.                                                                        
                                                                               
Representative Mulder noted that the end of year financial                     
report is due on February 15th.  Close economic                                
relationships and LFD's are due on March 15th.  Mr. Brown                      
observed that two reports are being consolidated.                              
                                                                               
Representative Martin emphasized that the public should have                   
the proper information before a person is elected.  He                         
stated that he supported an amendment to require candidates                    
to disclose relationships of themselves, spouse or spousal                     
equivalent with lobbyists.  Mr. Brown noted that candidates                    
file public official disclosure forms under AS 39.50.                          
                                                                               
Sections 62 through 68 were not changed by the committee                       
substitute.                                                                    
                                                                               
SECTION 69: AS 39.50.020 REPORT OF FINANCIAL AND BUSINESS                      
INTERESTS  This section changes the requirements for Public                    
Official Financial Disclosure reports, setting out that                        
public officials listed in 39.50.200 must file reports                         
within 30 days after taking office and in each following                       
year.  It changes the annual filing deadline to the 15th of                    
March, and specifies that all non-municipal officials file                     
with APOC, while municipal officials file with appropriate                     
local authorities.                                                             
                                                                               
References to spouse in AS 39.50 have been amended to                          
include the spousal equivalent.  The definition of                             
"immediate family" has been changed to include the parent,                     
child, or sibling that resides with the person, is                             
financially dependent on the person or shares a substantial                    
financial interest with the person who is filing.                              
                                                                               
Sections 70 through 72 were not changed.                                       
                                                                               
SECTION 73: AS 39.50.060  THIRTY DAY PERIOD AFTER FILING                       
DEADLINE  This section establishes that APOC must notify a                     
candidate that the report is late.  If the candidate does                      
not within 30 days, APOC informs the Lieutenant Governor of                    
the failure to file.  The candidate then forfeits nomination                   
to office and may not be seated.  The lieutenant governor                      
may not certify the person's nomination, and the results of                    
the person's election are certified according to                               
39.50.060(b).  Subsection (b) sets out that if a public                        
member fails to file, APOC must notify the appropriate                         
presiding officer.  Subsection (c) sets out that APOC must                     
notify the Legislative Council or the Legislative Budget and                   
Audit Committee if a legislative director fails to file.                       
New language was added to clarify that a person is                             
considered to have complied if they comply within 30 days                      
after the due date.                                                            
                                                                               
Section 74 remains the same.                                                   
                                                                               
SECTION 75: AS 39.50.090(a)  PROHIBITION ON USE OF OFFICIAL                    
POSITION  This section disallows the use of official                           
position to obtain financial gain for a spousal equivalent.                    
                                                                               
Sections 76 and 77 were not changed in the committee                           
substitute.                                                                    
                                                                               
SECTION 78: AS 39.50.200(a)(9)  DEFINITIONS  This section                      
expands the definition of 'source of income' to include                        
spousal equivalents.                                                           
                                                                               
SECTION 79: AS 39.50.200(a)(10)  DEFINITIONS  This section                     
adds a new definition of 'spousal equivalent' for the                          
purposes of 39.50.                                                             
                                                                               
Statutes relating to the Executive Branch Ethics Act begin                     
in section 80.  Sections 80 through 98 were not changed in                     
the committee substitute.                                                      
                                                                               
SECTION 99: AS 39.52.960(2)  DEFINITION OF AGENCY  This                        
section adds the Alaska Railroad Corporation to the                            
definition of 'agency' for the purposes of the Executive                       
Branch Ethics Act.  Audits by the Legislative Budget and                       
Audit Committee recommended this change.                                       
                                                                               
SECTION 100: AS 39.52.960(4)  DEFINITION OF BOARD OR                           
COMMISSION  This section adds the Alaska Railroad                              
Corporation Board of Directors to the definition of board or                   
commission for the purposes of the Executive Branch Ethics                     
Act.                                                                           
                                                                               
SECTION 101: AS 39.52.960(11)  DEFINITION OF IMMEDIATE                         
FAMILY  This section changes the general definition of                         
immediate family member for the purposes of the Executive                      
Branch Ethics Act.                                                             
                                                                               
SECTION 102: 42.40.710  ALASKA RAILROAD EMPLOYEES  This                        
section specifies that the Executive Branch Ethics Act                         
applies to Railroad employees, although the remaining                          
provisions of Title 39 do not.                                                 
                                                                               
(Tape Change, HFC 98 - 155, Side 1)                                            
                                                                               
SECTION 103: AS 42.40.230  ALASKA RAILROAD ETHICS CODE                         
REPEALER  This section repeals 42.40.230, which is no longer                   
needed as the Railroad is brought under the Executive Branch                   
Ethics Act by the bill.                                                        
                                                                               
The remaining sections were not changed by the committee                       
substitute.                                                                    
                                                                               
NEIL SLOTNICK, ASSISTANT ATTORNEY GENERAL, COMMERCIAL                          
SECTION, DEPARTMENT OF LAW stated that he had not discussed                    
the addition of the Alaska Railroad with the Attorney                          
General or the Alaska Railroad Corporation.  He anticipated                    
that a memorandum of agreement would be reached that would                     
allow the Corporation's general counsel to advise them on                      
legal issues.  He anticipated that complaints would be                         
handled through the Attorney General's Office.  He                             
emphasized that the Department of Law would charge attorney                    
time through an RSA from the Alaska Railroad Corporation.                      
                                                                               
Representatives Mulder and Martin spoke in support of the                      
addition.                                                                      
                                                                               
Representative Davies suggested that a contractual                             
relationship be arranged to allow for statutory designated                     
receipts instead of program receipts.                                          
                                                                               
In response to a question by Representative Mulder, Mr.                        
Slotnick stated that the Department is supportive of the                       
amendments made to the Executive Branch Ethics Act.                            
                                                                               
SB 105 was HELD in Committee for further consideration.                        

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