Legislature(1995 - 1996)
05/03/1996 03:30 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 191
An Act relating to election campaigns, election
campaign financing, the oversight and regulation of
election campaigns by the Alaska Public Offices
Commission, the activities of lobbyists that relate to
election campaigns, and the definitions of offenses of
campaign misconduct; and providing for an effective
date."
SENATOR TIM KELLY testified in support of SB 191. He noted
that SB 191 would replace the ballot initiative. He
acknowledged that the legislation needs changes. He
compared the initiative to SB 191. He noted that the
initiative prohibits non-resident contributions, personal,
office or other use of campaign funds, and carry forward of
campaign funds. The legislation allows limited non-resident
contributions, some transfers of campaign funds to office
use and limited carry forward.
Senator Kelly reviewed provisions identical in both the
legislation and initiative. Both prohibit lobbyists from
making contributions outside their district. He noted that
this section will be disputed in court. Candidate to
candidate campaign fund donations are prohibited. Personal
candidate contributions are not prohibited. Corporations,
partnerships, unions and companies are prohibited from
making contributions. He noted that the legislation was
passed unanimously by the Senate.
Senator Kelly provided members with a number of technical
amendments (copies on file).
REPRESENTATIVE DAVID FINKELSTEIN noted that Amendments 1 - 5
are supported by the Sponsor, the imitative committee and
Representative Finkelstein.
Representative Martin MOVED to adopt Amendment 1 (copy on
file). Representative Finkelstein noted that Amendment 1
states that groups organized on ballot propositions would
not have to adhere to the lower limits included in the
imitative. There being NO OBJECTION, it was so ordered.
Representative Martin MOVED to adopt Amendment 2 (copy on
file). Representative Finkelstein explained that Amendment
2 clarifies that there are no limits on independent
expenditures. There being NO OBJECTION, it was so ordered.
Representative Finkelstein discussed that Amendment 3 (copy
on file). Amendment 3 inserts "or group" on page 5 line 18.
Representative Navarre MOVED to adopt Amendment 3. There
being NO OBJECTION, it was so ordered.
Representative Grussendorf MOVED to adopt Amendment 4 (copy
on file). Amendment 4 increases the office account for the
House amount to $10 thousand dollars. The legislation would
allow $10 thousand dollars to be transferred from the
campaign account to the House office account.
Representative Grussendorf spoke in support of Amendment 4.
Representative Finkelstein noted that the transfer is
limited and must be disclosed to the Alaska Public Officials
Commission (APOC). Representative Finkelstein discussed the
disclosure requirements.
Representative Brown OBJECTED to the adoption of Amendment
4. A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Navarre, Kelly, Kohring, Martin,
Mulder, Therriault, Foster, Hanley
OPPOSED: Brown
Co-Chair Foster and Representative Parnell were absent for
the vote.
The MOTION PASSED (8-1).
Representative Finkelstein discussed Amendment 5 (copy on
file). He noted that fund raising time frames vary in the
legislation. The amendment clarifies that if any of the
time restraints are struck down that campaign funds could be
raised 18 months prior to the general election. There being
NO OBJECTION, it was so ordered.
Representative Parnell MOVED to adopt Amendment 6 (copy on
file). Amendment 6 would delete "and files a copy of the
receipt with the commission" on page 12, line 28. There
being NO OBJECTION, it was so ordered.
Representative Mulder maintained that complaints should be
held confidential while under investigation. Representative
Finkelstein questioned the penalty for releasing
confidential information. Representative Mulder asked if
complaints are prohibited within 60 days of an election.
Representative Finkelstein noted that the concern is
legitimate but emphasized the difficulty of legislating a
solution.
In response to a question by Representative Martin,
Representative Finkelstein discussed section 2 (3). He
stated that proceeds of charitable gaming activities, except
the proceeds of a raffle or lottery, cannot be used for
campaigning. He further explained that no municipality can
use funds to support or oppose a candidate. Ballot
propositions can only be supported or opposed by ordinance.
In response to a question by Representative Grussendorf,
Representative Finkelstein noted that campaign funds can be
given to a party, non-profit, be returned to contributors,
set aside for future campaigns or up to $10 thousand dollars
can be transferred to an office account.
Senator Kelly noted that there is a one time carry over for
1998.
Representative Brown referred to page 17, lines 15 and 16.
Representative Finkelstein clarified that a House member
could transfer $10 thousand dollars to an office account and
$5 thousand dollars to a future campaign. Any funds
remaining after the allowed distribution would be returned
to the General Fund. She noted that some candidates have
large balances.
Representative Finkelstein spoke in support of the
legislation. He noted that there are earlier effective
dates in the legislation than in the initiative.
Representative Therriault provided members with Amendment 7
(copy on file). Representative Finkelstein noted that the
legislation was amended by Representative Bunde to prohibit
personal use of campaign funds after July 1, 1996. He did
not think the amendment was needed.
JACK CHENOWETH, LEGAL COUNSEL, LEGISLATIVE AFFAIRS AGENCY
explained that the amendment would cut off the opportunity
to take campaign account money as personal income. He
explained that section 20 would supercede section 19.
Representative Finkelstein spoke against the amendment.
(Tape Change, HFC 96-162, Side 1).
Representative Mulder spoke against the amendment. He
thought that adoption would "unravel" support for the
initiative.
Representative Therriault MOVED TO WITHDRAW Amendment #7.
There being NO OBJECTION, it was withdrawn.
Senator Kelly advised that next year on January 1st, if
campaign finance reform and if the ethics bill passes, there
will be changes in the way the political system works.
Whether or not the bill passes, an initiative will pass in
the fall. He recommended that legislators should take more
time to fully understand the repercussions of choices made.
Senator Kelly preferred passage of a bill over an
initiative.
Representative Therriault asked the effective date on HB
307. Co-Chair Hanley replied it would take effect after the
election. Representative Finkelstein added, legislators
will not be able to access those funds until after January
1st. Representative Martin pointed out that HB 307 provided
an earlier implementation date and that it would not impact
this year.
Representative Mulder MOVED to report HCS CS SB 191 (FIN)
with individual recommendations and with the accompanying
fiscal notes. Representative Navarre asked if there had
been testimony regarding the office account. Representative
Finkelstein replied that a municipal office account had been
added, although there had been no input regarding that
concern. There being NO OBJECTION to moving the bill from
Committee, it was so ordered.
HCS CS SB 191 (FIN) was reported out of Committee with "no
recommendation" and with fiscal notes by the (2) Department
of Administration dated 4/9/96, the Department of Law dated
3/25/96, (2) zero fiscal notes by the Office of the Governor
dated 3/20/96 and Legislative Affairs Agency dated 3/25/96.
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