Legislature(2005 - 2006)CAPITOL 106

03/30/2006 08:00 AM House STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 45 CONTRIBUTIONS, LOBBYISTS, DISCLOSURE TELECONFERENCED
Moved CSHB 45(STA) Out of Committee
<Bill Hearing Rescheduled from 03/28/06>
+ SB 249 REPORTING BAIL AND RELEASE INFORMATION TELECONFERENCED
Moved Out of Committee
+= HJR 27 ALLOTMENTS FOR NATIVE VIETNAM VETERANS TELECONFERENCED
Moved CSHJR 27(MLV) Out of Committee
*+ HB 461 LEGISLATIVE DISCLOSURES TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
HB  45-CONTRIBUTIONS, LOBBYISTS, DISCLOSURE                                                                                   
                                                                                                                                
8:07:07 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON announced  that  the first  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."                                                                                                             
                                                                                                                                
[Before the  committee was CSHB  45, Version  24-LS0312\F, Wayne,                                                               
3/10/06.]                                                                                                                       
                                                                                                                                
8:07:19 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON,  after  ascertaining  that there  was  no  one  to                                                               
testify, closed public testimony.                                                                                               
                                                                                                                                
8:08:22 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON moved to adopt Amendment 1, labeled 24LS0312\F.2,                                                                  
Wayne, 3/27/06, which read as follows:                                                                                          
                                                                                                                                
     Page 1, line 1:                                                                                                            
          Delete "contribution limits, lobbyists, and                                                                         
     disclosure"                                                                                                              
          Insert "lobbyists and campaign disclosure"                                                                          
                                                                                                                                
     Page 1, line 4, through page 3, line 10:                                                                                   
          Delete all material and insert:                                                                                       
        "* Section 1. AS 15.13.040(b) is amended to read:                                                                   
          (b)  Except as provided in (l) of this section,                                                                       
     each  group shall  make a  full  report, by  electronic                                                                
     means  upon  a  form   prescribed  by  the  commission,                                                                
     listing                                                                                                                    
               (1)   the  name and  address of  each officer                                                                    
     and director;                                                                                                              
               (2)      the    aggregate   amount   of   all                                                                    
     contributions made to it;                                                                                                  
               (3)  for contributions                                                                                       
               (A)    up  to  and   including  $250  in  the                                                                
     aggregate during  a calendar  year, the  name, address,                                                                
     [DATE,] and amount contributed by each contributor;                                                                    
               (B)   [AND, FOR  CONTRIBUTIONS] in  excess of                                                                
     $250  in  the aggregate  during  a  calendar year,  the                                                                    
     contributor's  name,   address,  principal  occupation,                                                            
     [AND]   employer,  and   amount  contributed   [OF  THE                                                                
     CONTRIBUTOR]; and                                                                                                          
               (4)      the   date   and   amount   of   all                                                                    
     contributions  made by  it and  all expenditures  made,                                                                    
     incurred, or authorized by it.                                                                                             
        * Sec. 2. AS 24.45.171(10) is amended to read:                                                                        
              (10)  "lobbyist" means a person who                                                                               
               (A)  engages in  the business, occupation, or                                                                    
     profession     of     influencing    legislative     or                                                                    
     administrative action; or                                                                                                  
               (B)     receives  wages  or   other  economic                                                                    
     consideration,  including reimbursement  of travel  and                                                                    
     living  expenses,  to  communicate  directly  with  any                                                                    
     public official                                                                                                            
               (i)   for the express purpose  of influencing                                                                    
     legislative or administrative action; and                                                                                  
               (ii)  during  more than 16 [40]  hours in any                                                                
     30-day period in one calendar year;"                                                                                       
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
8:08:39 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN objected for discussion purposes.                                                                           
                                                                                                                                
8:08:49 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  said Amendment 1  would do the following:   require                                                               
that financial reports by groups  be by electronic means on forms                                                               
prescribed  by  the  Alaska  Public  Offices  Commission  (APOC);                                                               
change  from 40  to 16  the  hours that  a person  may lobby  the                                                               
legislature in  a 30-day  period before having  to register  as a                                                               
lobbyist  with  APOC;  and   change  the  contribution  reporting                                                               
requirements.                                                                                                                   
                                                                                                                                
8:09:33 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  moved Amendment  1  to  Amendment 1,  labeled  24-                                                               
LS0312\F.3, Wayne, 3/29/06, which read as follows:                                                                              
                                                                                                                                
     Page 1, lines 13 - 19, of Amendment F.2:                                                                                   
          Delete all material and insert:                                                                                       
               "(A)  up to and including $100 in the                                                                        
      aggregate during a calendar year, the name, address,                                                                  
     date, and amount contributed by each contributor;                                                                      
               (B)  in excess of $100 and up to and                                                                         
       including $250 in the aggregate during a calendar                                                                    
      year, the name, address, date, principal occupation,                                                                  
     and amount contributed by each contributor;                                                                            
     (C) [AND, FOR  CONTRIBUTIONS] in excess of  $250 in the                                                                
     aggregate during  a calendar  year, the  name, address,                                                                
     principal  occupation,   [AND]  employer,   and  amount                                                            
     contributed by each [OF THE] contributor; and"                                                                         
                                                                                                                                
8:09:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN objected for discussion purposes.                                                                           
                                                                                                                                
8:10:16 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  spoke to Amendment 1  to Amendment 1.   He reminded                                                               
the   committee   that  HB   45   was   offered  as   legislation                                                               
substantially  similar  to an  initiative  that  will be  on  the                                                               
ballot.    He  said,  "If  we  would  have  approved  HB  45  ...                                                               
throughout  the  entire process,  it  would  have eliminated  the                                                               
initiative   from  the   ballot."      With  the   aforementioned                                                               
amendments, he said, the bill  will not be substantially similar.                                                               
The change  proposed in  Amendment 1, to  change the  time period                                                               
from 40  hours to 16  hours, would  mean that the  lobbyist would                                                               
have two workdays  in which to lobby.   He opined that  that is a                                                               
reasonable amount of  time, whereas 40 hours is not.   He said if                                                               
the initiative  passes, it  would amalgamate  [subparagraphs] (B)                                                               
and  (C) of  Amendment 1  to Amendment  1, but  would not  delete                                                               
[subparagraph] (A).   Therefore,  there would still  be reporting                                                               
of amounts from zero and $100 in the aggregate per year.                                                                        
                                                                                                                                
8:15:53 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON, in response to Representative Gatto, clarified:                                                                   
                                                                                                                                
     If  this   passes  and   the  initiative   passes,  the                                                                    
     initiative will take  and supersede [subparagraphs] (B)                                                                    
     and  (C), so  that a  group  would have  to report  the                                                                    
     employer and  his occupation for everything  over $100,                                                                    
     but  [subparagraph] (A),  which is  reporting only  the                                                                    
     name, address,  date, and the  amount, would  remain in                                                                    
     play.                                                                                                                      
                                                                                                                                
8:16:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN asked what would  be wrong with requiring all                                                               
the information for all the contributions.                                                                                      
                                                                                                                                
8:16:43 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON explained that current  law stipulates that a person                                                               
must  report the  information, but  does not  have to  report the                                                               
occupation or employer  until the amount of $150 is  reached.  He                                                               
said  there  is  nothing  in the  amendment  that  would  prevent                                                               
someone from reporting the additional  information by choice, but                                                               
he/she would not be required to do so.                                                                                          
                                                                                                                                
8:17:50 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN reiterated his question.                                                                                    
                                                                                                                                
8:18:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  suggested that the reason  not to require                                                               
the entire scope  of information in all circumstances  is that at                                                               
some  point the  requirement becomes  too onerous.   She  said it                                                               
would be  impractical to ask  for all that information  for every                                                               
nickel that is contributed.                                                                                                     
                                                                                                                                
CHAIR SEATON  asked the committee to  realize that HB 45  and the                                                               
aforementioned initiative address contributions  to groups and do                                                               
not change the information required by candidates.                                                                              
                                                                                                                                
8:19:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ELKINS asked  if there  has been  abuse regarding                                                               
this   issue,  because   "this  almost   seems  like   additional                                                               
harassment."                                                                                                                    
                                                                                                                                
8:19:27 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON told  Representative Elkins  that currently  groups                                                               
are required to report "all  the information" for every donation.                                                               
He said:                                                                                                                        
                                                                                                                                
     This will  clarify and make  it easier for  [the Alaska                                                                    
     Public Offices  Commission (APOC)], and yet  there will                                                                    
     still  be  full  reporting,   even  if  the  initiative                                                                    
     passes.   The  initiative  currently is  unclear as  to                                                                    
     whether, since  there's not another  category of  up to                                                                    
     $100, ...  any reporting  would be required  under $100                                                                    
     by group.   And so this makes it clear  that the groups                                                                    
     would still be required to  report the lesser amount of                                                                    
     information, but they would report that information.                                                                       
                                                                                                                                
REPRESENTATIVE ELKINS  questioned if the committee  is taking the                                                               
bill in a different direction than the sponsor anticipates.                                                                     
                                                                                                                                
CHAIR SEATON said  the bill sponsor has  expressed his acceptance                                                               
of amendments to the bill.                                                                                                      
                                                                                                                                
8:21:31 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON,  in response  to  a  question from  Representative                                                               
Gatto,  said   the  amendment  affects  those   groups  that  are                                                               
structured to support candidates  and election positions and have                                                               
to  report to  APOC.   Those  organizations  that are  501(3)(c),                                                               
[nonprofit], do not report to APOC.                                                                                             
                                                                                                                                
8:22:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN  removed his  objection  to  Amendment 1  to                                                               
Amendment 1.   There being  no further objection, Amendment  1 to                                                               
Amendment 1 was adopted.                                                                                                        
                                                                                                                                
8:22:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER,  regarding the time spent  as a lobbyist,                                                               
said 16 hours of lobbying really  equals more than two days.  She                                                               
explained that  that time is not  the time spent in  Juneau or in                                                               
the capitol building, but it is  the amount of time spent face to                                                               
face with legislators.   Therefore, 16 hours could  be spread out                                                               
over four or five days.                                                                                                         
                                                                                                                                
8:23:17 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON said the 16  hours would allow people who frequently                                                               
come to  Juneau for two  days to  not be concerned  about keeping                                                               
track of  their lobbying time.   He reiterated  his understanding                                                               
that  testifying   before  a  committee  doesn't   count  towards                                                               
lobbying time.  He invited  a representative from APOC to testify                                                               
and confirm his understanding or correct it.                                                                                    
                                                                                                                                
8:24:21 AM                                                                                                                    
                                                                                                                                
TAMMY  KEMPTON, Regulation  of  Lobbying,  Alaska Public  Offices                                                               
Commission (APOC), Department of Administration, stated:                                                                        
                                                                                                                                
     With  all  due  respect   [Chair]  Seaton,  time  spent                                                                    
     testifying  does count  towards  the 16  hours, the  40                                                                    
     hours, or  whatever it is.   That's one of  the biggest                                                                    
     misunderstandings in the lobbying law.                                                                                     
                                                                                                                                
MS.  KEMPTON referenced  [AS 24.45.161(a)(1)(A)  and (B)],  which                                                               
read:                                                                                                                           
                                                                                                                                
          (a) This chapter does not apply to                                                                                    
          (1) an individual                                                                                                     
          (A) who lobbies without payment of compensation                                                                       
     or  other consideration  and makes  no disbursement  or                                                                    
     expenditure for  or on behalf  of a public  official to                                                                    
     influence  legislative or  administrative action  other                                                                    
     than  to  pay   the  individual's  reasonable  personal                                                                    
     travel and living expenses; and                                                                                            
          (B) who limits lobbying activities to appearances                                                                     
     before  public  sessions  of the  legislature,  or  its                                                                    
     committees or  subcommittees, or to public  hearings or                                                                    
     other public proceedings of state agencies;                                                                                
                                                                                                                                
MS.  KEMPTON  emphasized  that the  word  "and"  appears  between                                                               
subparagraphs (A)  and (B).   She added that telephone  time also                                                               
counts towards lobbying time.                                                                                                   
                                                                                                                                
CHAIR SEATON thanked Ms. Kempton for the clarification.                                                                         
                                                                                                                                
8:26:36 AM                                                                                                                    
                                                                                                                                
MS. KEMPTON, in response to  a question from Representative Lynn,                                                               
explained  that  if  a  person   is  only  being  reimbursed  for                                                               
expenses, is not  receiving a salary, and is not  an employee for                                                               
the organization  for which  he/she is  lobbying, then  he/she is                                                               
called  a  representational  lobbyist and  must  register  before                                                               
beginning to lobby.  The  representational lobbyist does not have                                                               
to pay the $250 registration, file  reports, or be subject to the                                                               
other prohibitions  in terms of prohibitions  and fundraising for                                                               
legislative  campaigns.   She said  the organization  reimbursing                                                               
the expenses of  the representational lobbyist has  to report the                                                               
reimbursements.    In  response  to  a  follow-up  question  from                                                               
Representative  Lynn, she  said  a lobbyist  who  was only  being                                                               
reimbursed  for  his/her  airfare  would still  be  considered  a                                                               
representational lobbyist.                                                                                                      
                                                                                                                                
8:28:19 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON asked where the lobbying law comes in to play.                                                                     
                                                                                                                                
8:28:32 AM                                                                                                                    
                                                                                                                                
MS. KEMPTON  said basically what  APOC does is follow  the money;                                                               
therefore, if there is no  money changing hands, there is nothing                                                               
for  APOC  to  follow  and  there  is  nothing  to  be  reported.                                                               
Lobbyists don't report with whom  they meet; they report how much                                                               
they are paid to meet with people and how much they spend.                                                                      
                                                                                                                                
8:29:25 AM                                                                                                                    
                                                                                                                                
MS.  KEMPTON,  in  response to  a  question  from  Representative                                                               
Gatto,  said she  herself  is representing  a  state office  and,                                                               
thus, is  not acting as  a lobbyist.   She cited AS  24.45.161 as                                                               
being  an exemption  for state  officials and  employees who  are                                                               
acting  in the  course of  their duties.   The  same applies  for                                                               
municipal employees and officials.                                                                                              
                                                                                                                                
8:30:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GATTO asked about the oil companies.                                                                             
                                                                                                                                
MS. KEMPTON responded,  "The oil companies are  probably the best                                                               
we have  at registering  and reporting; they  are almost  never a                                                               
problem.  And if there should  happen to be a mistake and they've                                                               
done something wrong, they immediately correct it."                                                                             
                                                                                                                                
8:30:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTO  asked if  lobbyist  are  allowed to  round                                                               
numbers or must report time precisely.                                                                                          
                                                                                                                                
8:31:08 AM                                                                                                                    
                                                                                                                                
MS.  KEMPTON replied  that the  reporting  is done  on the  honor                                                               
system.  She  said she tells people if there  is ever a complaint                                                               
filed she will  ask for some sort of accounting;  however, if the                                                               
person  doesn't  keep accounting,  then  APOC  will have  to  ask                                                               
everyone with  whom the  lobbyist met to  verify the  meeting and                                                               
time involved.                                                                                                                  
                                                                                                                                
8:31:51 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON offered his understanding  that the hour requirement                                                               
had been  4 hours and  was changed to 40.   He asked  Ms. Kempton                                                               
if, at the  time of that change,  there were a lot  of people who                                                               
no longer registered.                                                                                                           
                                                                                                                                
8:32:18 AM                                                                                                                    
                                                                                                                                
MS. KEMPTON answered  that APOC did see a significant  drop.  The                                                               
year the  number changed  to 40 hours  there were  213 registered                                                               
lobbyists.   Before the oil companies  started registering, there                                                               
were approximately 120 registered, and there are about 130 now.                                                                 
                                                                                                                                
8:32:45 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  asked if the  proposed change  from 40 to  16 would                                                               
result in requiring most of  those lobbying currently to register                                                               
with APOC.                                                                                                                      
                                                                                                                                
8:33:05 AM                                                                                                                    
                                                                                                                                
MS.  KEMPTON answered  yes.   The  drop was  not in  professional                                                               
lobbyists  with multiple  clients, but  with part-time  lobbyists                                                               
and attorneys.                                                                                                                  
                                                                                                                                
8:34:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN removed  his objection  to Amendment  1, [as                                                               
amended].   There  being no  further objection,  Amendment 1,  as                                                               
amended, was adopted.                                                                                                           
                                                                                                                                
8:34:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER moved to report  HB 45, as amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.                                                                                                                   
                                                                                                                                
REPRESENTATIVE LYNN  said he  has no  objection, but  stated that                                                               
about three years ago he  had objected strongly regarding raising                                                               
[individual]  contributions to  candidates from  $500 to  $1,000,                                                               
because  he  thought it  put  a  chilling  effect on  the  entire                                                               
process.   He  talked about  the advantage  that incumbents  have                                                               
over other candidates.                                                                                                          
                                                                                                                                
8:36:30 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON,  in response  to a  remark by  Representative Lynn,                                                               
clarified that HB  45, [as amended], would not change  any of the                                                               
[individual]  contribution amounts  to which  Representative Lynn                                                               
had referred.   He added, "But if an initiative  later passes, it                                                               
would have  [the effect of  lowering the  individual contribution                                                               
amounts.]"                                                                                                                      
                                                                                                                                
REPRESENTATIVE  GATTO observed  that  Representative Gardner  had                                                               
made  the motion  to  move  the original  bill  out of  committee                                                               
rather than Version F.                                                                                                          
                                                                                                                                
8:37:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER withdrew  her motion to move HB  45 out of                                                               
committee.                                                                                                                      
                                                                                                                                
8:38:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  moved to  report  CSHB  45, Version  24-                                                               
LS0312\F,  Wayne,  3/10/06, as  amended,  out  of committee  with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being  no objection, CSHB  45(STA) was reported out  of the                                                               
House State Affairs Standing Committee.                                                                                         
                                                                                                                                

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