Legislature(2003 - 2004)
05/08/2003 08:07 AM House STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 157-ELIMINATE APOC CHAIR WEYHRAUCH announced that the first order of business would be HOUSE BILL NO. 157, "An Act eliminating the Alaska Public Offices Commission; transferring campaign, public official, and lobbying financial disclosure record-keeping duties to the division of elections; relating to reports, summaries, and documents regarding campaign, public official, and lobbying financial disclosure; providing for enforcement by the Department of Law; making conforming statutory amendments; and providing for an effective date." Number 0264 REPRESENTATIVE GRUENBERG moved to adopt CSHB 157, Version 23- GH1090\H, Craver, 5/7/03, as the working document. There being no objection, Version H was before the committee. CHAIR WEYHRAUCH announced that HB 157 would be set aside. [HB 157 was taken up again later in this meeting.] HB 157-ELIMINATE APOC CHAIR WEYHRAUCH returned the committee's attention to HOUSE BILL NO. 157, "An Act eliminating the Alaska Public Offices Commission; transferring campaign, public official, and lobbying financial disclosure record-keeping duties to the division of elections; relating to reports, summaries, and documents regarding campaign, public official, and lobbying financial disclosure; providing for enforcement by the Department of Law; making conforming statutory amendments; and providing for an effective date." REPRESENTATIVE HOLM moved to adopt CSHB 157, Version 23- GH1090\H, Craver, 5/7/03, as the working document. There still being no objection, Version H was before the committee. [This motion was made earlier in the meeting by Representative Gruenberg. Number 1382 TAMMY KEMPTON, Regulation of Lobbying, Alaska Public Offices Commission (APOC), Department of Administration, explained that the reason for the amendment being proposed by APOC is that in Version H there were some changes to the title. One of the changes to the title says, "Allowing a candidate to make a loan to the candidate's own campaign without notifying the commission." However, APOC still needs to be notified, although the notification provisions have been changed not eliminated. REPRESENTATIVE LYNN surmised, "But that doesn't change the fact that notification we have to make to get our loan paid back." MS. KEMPTON agreed, but pointed out that the title makes it sound as if the candidate no longer needs to notify APOC at all. REPRESENTATIVE LYNN related his understanding then that if he makes a loan to his campaign and subject to the limits he could be repaid from his campaign contributions later on without turning in a piece of paper to APOC. MS. KEMPTON agreed and specified that the candidate would notify APOC on the candidate's next due report. Number 1493 REPRESENTATIVE HOLM informed the committee that when he filed [for candidacy] he didn't realize he had to do this. Therefore, when he filed he put money in to start his campaign and because he didn't notify APOC, the money was considered a campaign contribution and he couldn't reimburse himself. He said that such requirements should be made apparent during filing. MS. KEMPTON noted that the requirement of notifying APOC within five days has been eliminated. Number 1586 REPRESENTATIVE SEATON moved that the committee adopt Amendment 1, which read: Page 1, lines 5-6 Delete "allowing a candidate to make a loan to the candidate's own campaign without notifying the commission;" Insert "amendment the notice provision when a candidate makes a loan to the candidate's own campaign;" There being no objection, Amendment 1 was adopted. Number 1640 REPRESENTATIVE HOLM moved to report CSHB 157, Version 23- GH1090\H, Craver, 5/7/03, as amended, out of committee with individual recommendations and the accompanying fiscal notes. REPRESENTATIVE GRUENBERG objected for the purposes of discussion. He noted that [the committee] recently received the memorandum dated May 7, 2003, from Barbara Craver, the drafting attorney for HB 157. He asked if Ms. Craver found any problem. REPRESENTATIVE BERKOWITZ related his understanding that Ms. Craver's memorandum says that everything is okay. REPRESENTATIVE GRUENBERG related his understanding that Ms. Craver is making a suggestion to change Section 8. REPRESENTATIVE BERKOWITZ requested Representative Gruenberg's indulgence on this matter [indicating the need to forward the legislation from committee] because there are two other committees of referral in which any concerns could be raised. REPRESENTATIVE GRUENBERG obliged and withdrew his objection. CHAIR WEYHRAUCH [indicated that there were no further objections to the motion to report Version H, as amended from committee]. Therefore, CSHB 157(STA) was reported from the House State Affairs Standing Committee. DAVID FINKELSTEIN, Volunteer, Campaign Finance Reform Now, noted his appreciation to the committee for its previous action on some of the amendments. Number 1941 ANDREE McLEOD provided the following testimony. She recalled the beginning of this legislature when, at a Chamber of Commerce meeting, the House Minority leader expressed his desire to hold the legislature to a higher standard as Alaskans expect and demand more from the legislature. "And I come to you with that in mind," she said. She highlighted that the legislature is present to legislate, to appropriate, and to advocate. However, this legislation allows lobbyists to contribute to candidates as well as to engage in campaigns. Permitting lobbyists to again engage in campaign activities goes back to the time Mr. Finkelstein spoke of when, prior to 1996, lobbyists gave out directly and indirectly between $25,000-$100,000 each election cycle. Therefore, there will be a large influx of money from special interest [groups], she predicted. This will occur at a time when state resources are limited. Ms. McLeod said, "The way you advocate and whom you advocate for will be circumspect by removing the prohibition." She charged that [this legislation] is breaking down the integrity of the political process. She expressed concern that once the control of disallowing candidates to give money to candidates outside their district is eliminated, the control that keeps things running smoothly is being eliminated. MS. McLEOD recalled that this morning Chair Weyhrauch correlated free speech of HB 230 with HB 157. However, she pointed out that free speech is only free speech if no one is paying for that speech. On one end of the lobbyists, businesses and special interests are paying for that speech and thus it's not free. When that free speech is influencing and impacting public policy, it's not free speech because people end up paying for the costs of whatever the special interest [groups] want. Ms. McLeod pleaded with the committee to not increase the number of hours for lobbyist activity from 4 to 16. She indicated that [passage of this legislation] means that those in the legislature will now be influenced by special interest [groups] and advocate for them, and therefore legislation and appropriations for special interest groups will follow. Number 2210 REPRESENTATIVE GRUENBERG directed attention to page 18, lines 23, 27, and 30, where there seems to be a drafting error. He said the figures should refer to "$5,000" per one of the amendments the committee adopted. [CSHB 157(STA) was reported from the committee.]
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