Legislature(2005 - 2006)CAPITOL 106

03/16/2006 08:00 AM House STATE AFFAIRS


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation Hearing: TELECONFERENCED
State Commission for Human Rights
<Hearing Postponed to 3/21/06>
+= HB 290 REQUIREMENTS FOR DRIVER'S LICENSE/I.D. TELECONFERENCED
Heard & Held
+= HJR 34 CONST. AM: APPROP. LIMIT/MINERAL REVENUE TELECONFERENCED
<Bill Hearing Canceled>
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 438 INITIATIVE, REFERENDUM, RECALL PETITIONS TELECONFERENCED
Heard & Held
= HB 45 CONTRIBUTIONS, LOBBYISTS, DISCLOSURE
Heard & Held
HB  45-CONTRIBUTIONS, LOBBYISTS, DISCLOSURE                                                                                   
                                                                                                                                
9:49:00 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced that the  last order of business was HOUSE                                                               
BILL  NO.  45,  "An  Act  amending the  definition  of  the  term                                                               
'lobbyist' in the  Regulation of Lobbying Act;  and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
9:49:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   BRUCE  WEYHRAUCH,   Alaska  State   Legislature,                                                               
presented  HB  45,  as  sponsor.   He  noted  that  the  bill  is                                                               
substantially  similar  to an  initiative  that  will be  on  the                                                               
ballot August 2006, with some differences.                                                                                      
                                                                                                                                
9:50:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTO  moved  to  adopt  the  proposed  committee                                                               
substitute (CS),  Version 24-LS0312\F, Wayne, 3/10/06,  as a work                                                               
draft.   There  being  no  objection, Version  F  was before  the                                                               
committee.                                                                                                                      
                                                                                                                                
9:50:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   WEYHRAUCH  said   [Version   F]  would   tighten                                                               
recording  requirements, effecting  the  amount of  contributions                                                               
that must be reported, and would  reduce the number of hours that                                                               
someone must  register as  a lobbyist  from 40, back  to 10.   In                                                               
response  to a  question  from Chair  Seaton,  he identified  the                                                               
differences between the initiative and  the bill.  First, he said                                                               
that  the initiative  has an  effective date  of 2005,  while the                                                               
proposed bill has  an effective date of 2007.   Next, he referred                                                               
to page 2,  beginning on line 20, which is  language defining the                                                               
meaning of "lobbyist", which read as follows:                                                                                   
                                                                                                                                
               (B) engages in the influencing of                                                                                
      legislative or administrative action as a business,                                                                       
     occupation, or profession.                                                                                                 
                                                                                                                                
REPRESENTATIVE WEYHRAUCH noted that  the original language of the                                                               
initiative  read:    "represents   oneself  as  engaging  in  the                                                               
influence".   He  said  that language  presents  problems to  the                                                               
Alaska Public  Office Commission (APOC) because  many times there                                                               
are lobbyists who do not  represent themselves as engaging in the                                                               
practice   of  lobbying   -  they   don't  identify   themselves.                                                               
Representative Weyhrauch  stated that  the language in  Version F                                                               
is "a clear  distinction and a better definition  for purposes of                                                               
... administering the law."                                                                                                     
                                                                                                                                
REPRESENTATIVE  WEYHRAUCH indicated  that  adopting  HB 45  would                                                               
mean  not allowing  the initiative  on the  ballot.   He said  he                                                               
respects  Representative  Harry  Crawford,  the  sponsor  of  the                                                               
initiative,  and they  have agreed  to disagree.   He  stated, "I                                                               
don't  like the  idea  that  ... the  legislature  goes back  and                                                               
changes something  once you adopt  it, simply to be  tricky about                                                               
getting  an initiative  off  the ballot,  so  I would  absolutely                                                               
oppose, as  an official in  the legislature, any changes  to this                                                               
once we do it."                                                                                                                 
                                                                                                                                
9:53:07 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  offered his understanding  that an  initiative that                                                               
is adopted  cannot be  changed for  two years, but  a law  can be                                                               
changed after  one year, and  Representative Weyhrauch  is saying                                                               
it is  not his intent  to change the law  any sooner than  if the                                                               
initiative had passed.                                                                                                          
                                                                                                                                
9:53:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WEYHRAUCH confirmed that is correct.                                                                             
                                                                                                                                
9:54:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   WEYHRAUCH,  in   response  to   a  request   for                                                               
clarification from Representative  Elkins, explained his previous                                                               
comments regarding page 2, line 20.                                                                                             
                                                                                                                                
9:54:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ELKINS  said  he  thinks some  of  the  community                                                               
delegations  that  come  to  Juneau  spend  more  than  10  hours                                                               
[lobbying] in a 30-day period.                                                                                                  
                                                                                                                                
REPRESENTATIVE  WEYHRAUCH said  that is  a policy  distinction in                                                               
the bill that is up for debate.                                                                                                 
                                                                                                                                
9:55:20 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON offered  his understanding  that the  hours counted                                                               
towards  lobbying  have  to  do with  active  meeting  time  with                                                               
legislators, excluding any public testimony.                                                                                    
                                                                                                                                
9:55:35 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ELKINS  reiterated that  a recent  delegation from                                                               
Ketchikan spent more than 10 hours.                                                                                             
                                                                                                                                
9:55:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WEYHRAUCH   said  historically  people   have  to                                                               
register as lobbyists and fill out a form.                                                                                      
                                                                                                                                
9:56:02 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON echoed Representative  Weyhrauch's statement that it                                                               
will  be the  policy call  of the  committee to  decide the  time                                                               
limit.                                                                                                                          
                                                                                                                                
9:56:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WEYHRAUCH said he thinks  the rule before was four                                                               
hours in a 30-day period, so  the proposed legislation is more of                                                               
a relaxed standard than it historically was.                                                                                    
                                                                                                                                
9:56:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  brought   attention  to  the  difference                                                               
between  [subparagraphs  (A)  and  (B),  in  paragraph  (10)]  of                                                               
Section   4.     She  said   [subparagraph  (B),   text  provided                                                               
previously]  relates  to  lobbyists  who   do  their  work  as  a                                                               
"business, occupation,  or profession."  [Subparagraph  (A)], she                                                               
said, "is when  they do it for payment."   [Subparagraph (A) read                                                               
as follows:]                                                                                                                    
                                                                                                                                
                    (A) is employed and receives payments,                                                                      
     or who contracts  for economic consideration, including                                                                    
     reimbursement   for   reasonable  travel   and   living                                                                    
     expenses,  to  communicate   directly  or  through  the                                                                    
     person's  agents  with  any  public  official  for  the                                                                    
      purpose of influencing legislation or administrative                                                                      
     action for more than 10 hours in any 30-day period in                                                                      
     one calendar year; or                                                                                                      
                                                                                                                                
REPRESENTATIVE GARDNER  said, "So,  a citizen  who comes  down to                                                               
lobby, or somebody  who is a teacher who comes  down to lobby for                                                               
education,  is  not  doing  it   as  part  of  their  profession,                                                               
business,   or   occupation;   they're  citizens   lobbying   for                                                               
something, and they wouldn't have to register as lobbyists."                                                                    
                                                                                                                                
9:56:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WEYHRAUCH suggested that  the committee obtain the                                                               
input of the Alaska Public Offices Commission (APOC).                                                                           
                                                                                                                                
9:57:21 AM                                                                                                                    
                                                                                                                                
BROOKE   MILES,  Executive   Director,   Alaska  Public   Offices                                                               
Commission  (APOC),  stated that  the  commission  has a  neutral                                                               
position regarding  HB 45.  Furthermore,  she said that if  HB 45                                                               
passes, it will have no fiscal impact on APOC.                                                                                  
                                                                                                                                
9:58:35 AM                                                                                                                    
                                                                                                                                
MS.  MILES,  in  response  to   a  question  from  Representative                                                               
Gardner, stated that elected or  appointed municipal officials or                                                               
employees  are  exempt from  the  lobbying  law; they  never  are                                                               
required to register and report.   Individuals hired to represent                                                               
a municipality  are required to  register and report  the payment                                                               
amount.                                                                                                                         
                                                                                                                                
9:59:55 AM                                                                                                                    
                                                                                                                                
MS. MILES,  in response to  a question from Chair  Seaton, stated                                                               
that when  employee lobbyists come  to Juneau to  testify, "under                                                               
this law they would be subject to the 10-hour test."                                                                            
                                                                                                                                
10:00:20 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON asked if that applies to a fisherman who is self-                                                                  
employed and lobbies on his own behalf regarding a fishing bill.                                                                
                                                                                                                                
10:00:46 AM                                                                                                                   
                                                                                                                                
MS.  MILES  responded   that  an  individual  who   is  the  sole                                                               
proprietor  of a  business or  a closely  held corporation  whose                                                               
only officers are  married partners, for example, has  not in the                                                               
past been  required to register  and report  as a lobbyist.   She                                                               
proffered:                                                                                                                      
                                                                                                                                
     You have  a good example  with Mr. Myrl  Thompson, this                                                                    
     year and  last year,  who covers all  of ...  [his] own                                                                    
     expenses to  be in Juneau  and works with  the process,                                                                    
     and testifies,  and frequently  would ask  for meetings                                                                    
     with  legislators  or  staff in  efforts  to  influence                                                                    
     legislative action.   But no  one is paying  ... [him].                                                                    
     That's how we see the  person who's representing her or                                                                    
     his own business.                                                                                                          
                                                                                                                                
MS.  MILES,  in  response  to  a  follow-up  question,  said  Mr.                                                               
Thompson is  not considered a  lobbyist and, thus, does  not have                                                               
to register,  because he is  not receiving payments from  a third                                                               
party.                                                                                                                          
                                                                                                                                
CHAIR SEATON asked if that is clear in statute.                                                                                 
                                                                                                                                
MS  MILES answered,  "It  is  in the  exemptions  section of  the                                                               
statute, which  is not part  of this bill.   But it is  clear and                                                               
has been part of that statute since 1976."                                                                                      
                                                                                                                                
10:02:36 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON asked if Ms. Miles  if she had any other suggestions                                                               
for changes that need to be made to avoid confusion.                                                                            
                                                                                                                                
10:02:45 AM                                                                                                                   
                                                                                                                                
MS.  MILES answered  no.   For the  committee's information,  she                                                               
noted  that   there  is  another   type  of  lobbyist   called  a                                                               
representational lobbyist.   She said,  "That can cover  a person                                                               
who is not employed by or under  contract for a fee by the entity                                                               
that she or he is  attempting to influence legislative action on,                                                               
but  the  entity   covers  their  expenses."     She  said  those                                                               
individuals are required  to file a registration  and make public                                                               
that they are there representing  another party, but they are not                                                               
required  to file  lobbyist reports  and are  not subject  to the                                                               
restrictions on  fundraising and  participating in  the political                                                               
process  that paid  lobbyists are,  because they  are not  really                                                               
considered  to be  paid.   The  person, company,  or entity  that                                                               
reimburses  this  person's  expenses  files  a  quarterly  report                                                               
disclosing  all expenses  connected with  the person's  activity.                                                               
Those  expenses, she  indicated, are  limited to  accommodations,                                                               
food, beverage,  and travel.   In response  to Chair  Seaton, she                                                               
said  APOC thinks  "it  does  provide a  good  protection for  an                                                               
individual  who  participates almost  as  a  volunteer with  just                                                               
having their  expenses covered in  whole or in part,  while still                                                               
giving the public the right to  know who those people are who are                                                               
attempting to influence the public decision makers."                                                                            
                                                                                                                                
10:04:31 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE GATTO asked  if allowing someone [who  has come to                                                               
Juneau  to lobby]  to use  a  spare bedroom  would be  considered                                                               
compensation.                                                                                                                   
                                                                                                                                
10:05:05 AM                                                                                                                   
                                                                                                                                
MS. MILES clarified,  "The payment must come from  the entity for                                                               
which the person is trying  to influence the legislative action."                                                               
She  offered   her  understanding  that   Representative  Gatto's                                                               
example  would be  called  a close  economic  association with  a                                                               
lobbyist if  the lobbyist was paid  to come to town.   She added,                                                               
"If  it were  a  citizen  lobbyist who  comes  to  town, and  you                                                               
permitted them to  stay in your spare bedroom -  although I can't                                                               
speak to the  Legislative Ethics Law - it  wouldn't be considered                                                               
compensation to the lobbyist."                                                                                                  
                                                                                                                                
10:05:43 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE GARDNER said  she wants to clarify  that Ms. Miles                                                               
is saying that  if she owns a small business  and comes to Juneau                                                               
specifically  to  lobby  for legislation  that  may  effect  that                                                               
business, she would not have  to register as a lobbyist; however,                                                               
if  she were  to send  a  paid employee  to  do the  same on  her                                                               
behalf, that employee would have to register as a lobbyist.                                                                     
                                                                                                                                
10:06:04 AM                                                                                                                   
                                                                                                                                
MS.  MILES answered  yes, if  that employee  has met  the 10-hour                                                               
test.                                                                                                                           
                                                                                                                                
10:06:10 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON referred  to Section 1, [subsection  (b), which read                                                               
as follows]:                                                                                                                    
                                                                                                                                
          (b) Each group shall make a full report upon                                                                          
     a form prescribed by the commission, listing                                                                               
                                                                                                                                
CHAIR  SEATON noted  that  one  of the  items  reported would  be                                                               
"contributions  in excess  of  $100".   He  asked  if this  means                                                               
campaign contributions and, if so,  if the contribution limit and                                                               
the   reporting  requirement   apply   to  individual   political                                                               
campaigns."                                                                                                                     
                                                                                                                                
10:06:34 AM                                                                                                                   
                                                                                                                                
MS. MILES outlined that Section  1 addresses reports by political                                                               
groups,  which includes  political parties  and all  varieties of                                                               
political action committees.  She continued:                                                                                    
                                                                                                                                
     Before changes to the campaign  disclosure law in 2003,                                                                    
     all campaign  contributions that  were received  from a                                                                    
     contributor that were $100 or  less were not identified                                                                    
     by  name and  address, but  simply batched  together on                                                                    
     each  report.   ...  After the  changes  in 2003,  each                                                                    
     contributor, regardless of the  amount, was required to                                                                    
     be shown by name and address.                                                                                              
                                                                                                                                
     In  Section 1,  this  reverses that  ruling for  groups                                                                    
     only, not for  candidates.  And in a way  this would be                                                                    
     helpful to  the commission, because one  of the results                                                                    
     of  that  change  in  law  -  particularly  with  group                                                                    
     activity,  and   particularly  with  the   groups  that                                                                    
     operate  on   payroll,  withholding,   [and]  check-off                                                                    
     programs, such as labor unions  and some corporations -                                                                    
     is that  ... we're  getting these  reports that  can be                                                                    
     300-500 pages,  ... showing weekly or  biweekly 75-cent                                                                    
     contributions from  the same  individual, which  as you                                                                    
     can  imagine, requires  a lot  of staff  time to  enter                                                                    
     data   into  our   database,  making   the  information                                                                    
     available to  the public.   So, this would  actually be                                                                    
     helpful to the commission.                                                                                                 
                                                                                                                                
10:08:43 AM                                                                                                                   
                                                                                                                                
MS. MILES, in response to  a request for clarification from Chair                                                               
Seaton, said this change in  law would not affect the requirement                                                               
that  each  candidate  provide  a   name  and  address  for  each                                                               
contribution.  She added, "It is the same as the initiative."                                                                   
                                                                                                                                
10:09:38 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON announced that HB 45 was heard and held.                                                                           

Document Name Date/Time Subjects