Legislature(2005 - 2006)CAPITOL 120

04/13/2005 01:00 PM House JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 257 STATE PROCUREMENT ELECTRONIC TOOLS TELECONFERENCED
Heard & Held
+= HB 183 CAMPAIGN FINANCE: SHARED EXPENSES TELECONFERENCED
Moved CSHB 183(JUD) Out of Committee
*+ HB 260 TOBACCO: BONDS; TAX; POSSESSION BY MINORS TELECONFERENCED
Moved CSHB 260(JUD) Out of Committee
+ HB 133 LOCAL BOUNDARY COMMISSION REGS & POWERS TELECONFERENCED
<Bill Hearing Postponed to 4/18>
Bills Previously Heard/Scheduled
= HB 53 CHILDREN IN NEED OF AID/REVIEW PANELS
Moved CSSSHB 53(JUD) Out of Committee
HB 183 - CAMPAIGN FINANCE: SHARED EXPENSES                                                                                    
                                                                                                                                
1:12:47 PM                                                                                                                    
                                                                                                                                
CHAIR McGUIRE  announced that the  first order of  business would                                                               
be HOUSE  BILL NO. 183, "An  Act relating to the  use of campaign                                                               
contributions  for  shared  campaign  activity  expenses  and  to                                                               
reimbursement  of those  expenses."   [Before  the committee  was                                                               
CSHB 183(STA).]                                                                                                                 
                                                                                                                                
REPRESENTATIVE  MIKE HAWKER,  Alaska State  Legislature, sponsor,                                                               
relayed  that while  Alaska has  some of  the strongest  campaign                                                               
finance laws in the nation,  there is an ambiguity regarding, for                                                               
example, two candidates participating  in the same activity, such                                                               
as a fundraiser, in which one  candidate writes the check for the                                                               
caterer  and  the  other  candidate  reimburses  him/her.    This                                                               
legislation inserts  language specifying  that one  candidate may                                                               
reimburse  another candidate  for  shared  campaign expenses,  as                                                               
long as the reimbursement occurs  within three working days after                                                               
the  original expense  is paid.    He highlighted  that the  main                                                               
intent is to  shift the burden for compliance  with campaign laws                                                               
from vendors to candidates.                                                                                                     
                                                                                                                                
CHAIR  McGUIRE inquired  as to  the rationale  for the  three-day                                                               
requirement.                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER relayed that he  wanted there to be a tight                                                               
window,  and  after  extensive  discussion  in  the  House  State                                                               
Affairs  Standing Committee,  reimbursement within  three working                                                               
days was deemed a reasonable length of time.                                                                                    
                                                                                                                                
1:15:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARA said  that he would like  to include language                                                               
in  HB   183  to  allow   one  [candidate]  to   provide  another                                                               
[candidate] with his/her fundraising list.                                                                                      
                                                                                                                                
REPRESENTATIVE HAWKER  indicated that  his only  reservation with                                                               
regard to  adding such language is  that he is not  familiar with                                                               
[current law] on that issue.                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARA suggested  that the  committee could  either                                                               
address  this now  with a  conceptual amendment  or [a  committee                                                               
substitute] could be  drafted before the legislation  gets to the                                                               
House floor.                                                                                                                    
                                                                                                                                
CHAIR McGUIRE  suggested instead that  the committee move  HB 183                                                               
out of committee  today and then draft  appropriate language with                                                               
help from the Alaska Public  Offices Commission (APOC).  She said                                                               
that she would  agree to help obtain  support for [Representative                                                               
Gara's] suggested change.                                                                                                       
                                                                                                                                
REPRESENTATIVE  HAWKER said  he  would be  willing to  co-sponsor                                                               
[such an  amendment] on  the House  floor or  in the  House Rules                                                               
Standing Committee.                                                                                                             
                                                                                                                                
1:18:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  opined that the requirement  to repay a                                                               
candidate  within  three working  days  could  be too  short  for                                                               
candidates  from the  Bush who  have a  fundraiser in  Anchorage.                                                               
Therefore, he asked whether the  sponsor would view changing that                                                               
requirement to a week as a friendly amendment.                                                                                  
                                                                                                                                
REPRESENTATIVE  HAWKER indicated  his preference  for having  the                                                               
shortest, tightest time period possible.                                                                                        
                                                                                                                                
REPRESENTATIVE GRUENBERG reiterated  the potential problems those                                                               
in the Bush could face with the three-day requirement.                                                                          
                                                                                                                                
REPRESENTATIVE GRUENBERG made  a motion to adopt  Amendment 1, to                                                               
delete  "three working  days" from  page 2,  line 18,  and insert                                                           
"five working days".   There being no objection,  Amendment 1 was                                                           
adopted.                                                                                                                        
                                                                                                                                
1:20:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER,  in response  to comments,  specified that                                                               
the intent of  HB 183 is to merely cleanup  areas of the campaign                                                               
finance laws  that are universally supported  by both Republicans                                                               
and Democrats.                                                                                                                  
                                                                                                                                
1:22:17 PM                                                                                                                    
                                                                                                                                
BROOKE   MILES,  Executive   Director,   Alaska  Public   Offices                                                               
Commission (APOC),  Department of Administration  (DOA), informed                                                               
the  committee that  the  APOC  has reviewed  HB  183 and  didn't                                                               
believe there  would [be an  issue] with the  repayment happening                                                               
within three working days.   However, changing it to five working                                                               
days or  one working day  might be  cause concern because  of the                                                               
possibility  of the  well-funded  candidate virtually  supporting                                                               
the   non-funded  [candidate]   pending   the   outcome  of   the                                                               
fundraising event.   Furthermore, there may be  some confusion if                                                               
the repayment crosses  reporting periods.  Ms.  Miles opined that                                                               
the APOC  would favor the shorter  time period.  However,  if the                                                               
committee believes  additional time  is necessary, the  APOC will                                                               
administer whatever the law specifies.                                                                                          
                                                                                                                                
MS. MILES,  in response to  earlier comments, noted that  the law                                                               
does permit  candidates to  make contributions  to the  party for                                                               
events.   With regard to Representative  Gara's request regarding                                                               
the  sharing of  fundraising lists,  Ms. Miles  pointed out  that                                                               
there is some value to  those lists, but characterized that value                                                               
as  de  minimis.    Ms.  Miles concluded  by  saying  that  these                                                               
aforementioned issues  are matters  of policy  and thus  the APOC                                                               
will support whatever laws the legislature.                                                                                     
                                                                                                                                
1:25:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG said he doesn't  see that there would be                                                               
a problem changing  the repayment time period from  three days to                                                               
five days.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  DAHLSTROM, noting  Ms.  Miles's  comments on  the                                                               
issue, moved  that the committee  rescind its action  in adopting                                                               
Amendment 1.                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GRUENBERG   offered   changing   the   three-day                                                               
requirement to a five-day requirement  within a reporting period.                                                               
He  relayed his  understanding that  Ms. Miles's  concern was  in                                                               
regard  to  the  disclosures  being   reported  within  the  same                                                               
[reporting] period.                                                                                                             
                                                                                                                                
MS.  MILES  said such  [language]  would  completely address  her                                                               
concern.                                                                                                                        
                                                                                                                                
CHAIR  McGUIRE  inquired as  to  how  the individual  [candidate]                                                               
would know [when a reporting period change].                                                                                    
                                                                                                                                
REPRESENTATIVE   GRUENBERG   offered   his   belief   that   that                                                               
information  would be  shared between  candidates who  know their                                                               
reporting periods.                                                                                                              
                                                                                                                                
REPRESENTATIVE  HAWKER   opined  that  there  is   little  to  no                                                               
difference between three days overlapping  the end of a reporting                                                               
period and five  days overlapping the end of  a reporting period.                                                               
He  relayed  his  understanding   that  the  current  statute  is                                                               
intended to prevent one candidate  from making a loan to another,                                                               
and  so  if statute  authorizes  the  reimbursement of  a  shared                                                               
campaign   expense,  the   [date]  specified   on  the   campaign                                                               
disclosure form would apply.                                                                                                    
                                                                                                                                
1:27:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG   offered  his  understanding   that  a                                                               
candidate  who has  been  reimbursed would  show  receipt of  the                                                               
check, otherwise  it would  appear to  be a loan  and need  to be                                                               
reported.                                                                                                                       
                                                                                                                                
REPRESENTATIVE GARA  explained that  technically, if  a candidate                                                               
receives  something  and  pays  for  it  three  days  later,  the                                                               
candidate's books would have to refer  to those [funds] as a loan                                                               
or a  contribution during that  period.  Therefore,  he suggested                                                               
that  the legislation  specify that  as long  as [the  candidate]                                                               
pays  for [the  shared  expenses] within  [a  certain period  of]                                                               
days, then  it doesn't have to  be reported as something  else in                                                               
the meantime.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HAWKER specified  that the  trigger mechanism  is                                                               
when  one candidate  writes a  check and  gives cash  [to another                                                               
candidate].   He opined  that [Representative  Gara's suggestion]                                                               
adds  an unnecessary  level of  complication.   Until a  check is                                                               
actually  written,  both candidates  could  decide  to split  the                                                               
payment.                                                                                                                        
                                                                                                                                
CHAIR McGUIRE clarified  that there is no intention  for there to                                                               
be  any additional  reporting  than there  [currently  is].   She                                                               
indicated  her agreement  that the  three-day requirement  may be                                                               
difficult for  those in the Bush  and thus the change  to a five-                                                               
day requirement makes sense.                                                                                                    
                                                                                                                                
REPRESENTATIVE DAHLSTROM withdrew her motion.                                                                                   
                                                                                                                                
MS.  MILES, in  response to  a question,  reiterated that  if the                                                               
[compensation is  received] during the same  reporting period, it                                                               
would be fine;  however, if one candidate owes  another for costs                                                               
paid in advance  of a shared fundraising event  and the reporting                                                               
period is closed, then the other  candidate would need to show it                                                               
as a debt.                                                                                                                      
                                                                                                                                
CHAIR McGUIRE  surmised that what  Ms. Miles is describing  is no                                                               
different than if  the candidate owed it to the  vendor and there                                                               
were no shared expenses.                                                                                                        
                                                                                                                                
MS. MILES agreed.                                                                                                               
                                                                                                                                
1:31:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DAHLSTROM  moved  to  report  CSHB  183(STA),  as                                                               
amended,  out of  committee with  individual recommendations  and                                                               
the accompanying  fiscal notes.   There being no  objection, CSHB
183(JUD)  was   reported  from   the  House   Judiciary  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                

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