Legislature(2011 - 2012)CAPITOL 106

02/07/2012 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
*+ HB 311 REPORTS TO APOC TELECONFERENCED
Moved CSHB 311(STA) Out of Committee
+= HB 190 PFD ALLOWABLE ABSENCE TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    HB 311- REPORTS TO APOC                                                                                 
                                                                                                                                
8:06:21 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  announced that the first  order of business  was HOUSE                                                              
BILL NO. 311,  "An Act relating to certain information  filed with                                                              
the  Alaska  Public  Offices  Commission;  and  providing  for  an                                                              
effective date."                                                                                                                
                                                                                                                                
8:07:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MIKE  HAWKER, Alaska State Legislature,  presenting                                                              
HB 311 on behalf  of the House Rules Standing  Committee, sponsor,                                                              
stressed  the importance  of transparency  and  disclosure to  the                                                              
public.   He  said  the legislature  makes  detailed and  specific                                                              
statutory policies  regarding who has to disclose, what  has to be                                                              
disclosed,  and when  and how  disclosures  must be  made, and  it                                                              
charges  the  Alaska  Public Offices  Commission  (APOC)  to  keep                                                              
track.   He  said  HB 311  is  the outcome  of  a reevaluation  of                                                              
established policies.                                                                                                           
                                                                                                                                
8:09:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HAWKER  reviewed  that in  2007,  the  legislature                                                              
gave a  policy directive  to APOC  that all  state office  filings                                                              
were  to be  submitted electronically.   The  exception made  that                                                              
still exists  today is that  local election candidates  still have                                                              
to file  disclosures,  but do not  have to  do so  electronically.                                                              
He  said  historically  APOC  offered   a  proprietary  electronic                                                              
filing  system (ELFS)  and accepted  Excel  spreadsheets that  the                                                              
commission then uploaded  to the its system and  made available to                                                              
the  public.   He  said  ELFS  became "cranky  and  difficult  for                                                              
legislators"  and was  discontinued a  couple years  ago.   In the                                                              
interim, the  commission has accepted  filing on  spreadsheet and,                                                              
through the past campaign, filing via paper.                                                                                    
                                                                                                                                
8:11:46 AM                                                                                                                    
                                                                                                                                
CHAIR  LYNN clarified  that which  must be  reported are  campaign                                                              
expenditures and campaign contributions received.                                                                               
                                                                                                                                
8:12:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HAWKER said for  the past  couple years,  APOC has                                                              
been working on  a new proprietary online system.   He said he and                                                              
many others  received notice  on 12/29/11 -  just days  before the                                                              
first  ferry  departed for  Juneau  for  session -  that  everyone                                                              
involved in  the current campaign  had to retroactively  adopt the                                                              
new system  for reports  due 2/15/12,  and he  imparted that  many                                                              
legislators  he spoke to  upon arriving  in Juneau indicated  that                                                              
they  were  not  even  aware  that   the  filing  requirement  had                                                              
changed.   Representative  Hawker offered  his understanding  that                                                              
the   new  system   requires  users   to   manually  enter   every                                                              
transaction  legislators  have had  over the  course  of the  past                                                              
summer  directly  onto a  state  mainframe computer,  without  any                                                              
record  being kept  on  legislators'  own personal  computers  for                                                              
review,  editing, or  database  management.   He  said  that is  a                                                              
policy  call  in  how APOC  has  established  the  new  electronic                                                              
system, but  it is a departure  from the past when  the commission                                                              
allowed  legislators  to manage  their  own  data and  ensure  its                                                              
accuracy before it  was recorded onto a state computer.   He noted                                                              
that   the  commission   has   subsequently   come   up  with   an                                                              
import/export  feature  for  that   system,  but  he  said  he  is                                                              
currently in  the middle  of session  and, therefore,  not legally                                                              
able to  engage in  campaign activity  outside  of reporting.   He                                                              
opined  that APOC's  plan is  too late  to be  instigated for  the                                                              
current campaign cycle.                                                                                                         
                                                                                                                                
CHAIR  LYNN  offered his  understanding  that  during  legislative                                                              
session, legislators  are allowed  to make campaign  expenditures,                                                              
but not allowed to take campaign contributions,.                                                                                
                                                                                                                                
8:14:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HAWKER said while  greatly respecting  the efforts                                                              
of APOC  in coming  up with a  new, functional electronic  system,                                                              
legislators  began  to  question  whether APOC  was  carrying  out                                                              
legislative  policy  the way  in  which  it  was intended  or  was                                                              
becoming  prescriptive   in  its  efforts.     He  said   all  the                                                              
legislators  he spoke  with  think APOC  is  not implementing  the                                                              
legislature's   disclosure  policies   in  the  intended   manner.                                                              
Representative Hawker  emphasized the importance  of accommodating                                                              
reasonable latitude  by which individuals with varying  degrees of                                                              
skills  and   experience   are  able  to   comply  with   campaign                                                              
disclosure policy.                                                                                                              
                                                                                                                                
8:16:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER  said the  proposed bill would  require APOC                                                              
to  accept  campaign  finance  reports   in  the  following  three                                                              
formats:    a  paper format  designed  by  APOC;  a  user-friendly                                                              
electronic  system,  which would  encourage  others  to switch  to                                                              
electronic  filing;  and  spreadsheets  or  other  databases,  for                                                              
which  APOC could  set the  guidelines  to facilitate  disclosure.                                                              
As under existing  statute, APOC has 2 working days  from the time                                                              
it receives  a paper filing  to scan it  and make it  available to                                                              
the public  on line.  Representative  Hawker said the  language in                                                              
the bill  [on page  2, line  7], says  10 days,  and he  explained                                                              
that is a mistake for which an amendment is necessary.                                                                          
                                                                                                                                
8:19:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   HAWKER  said  the   proposed  legislation   would                                                              
accelerate  the   deadline  for  APOC  to  submit   a  summary  of                                                              
electronic  reports from  30 days  after  an election  to 30  days                                                              
after the report  has been filed.  The bill would  further provide                                                              
a  safe harbor  so  that  those who  have  not complied  with  the                                                              
mandate  for the new  system during  the last  deadline would  not                                                              
have violated the law.                                                                                                          
                                                                                                                                
REPRESENTATIVE  HAWKER  relayed  his  recent  campaign  disclosure                                                              
activity.   In  response  to Chair  Lynn,  he  confirmed that  the                                                              
proposed  legislation  is  necessary  to ensure  that  his  recent                                                              
filing  method  is  accepted  by  APOC, and  he  explained  he  is                                                              
sharing this information as a possible conflict of interest.                                                                    
                                                                                                                                
8:22:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER,  in response to a question,  confirmed that                                                              
under HB  311, no  changes would  be made  regarding what  must be                                                              
reported, and  the only  change that would  be made  regarding the                                                              
requirements  of APOC  to make  the information  available to  the                                                              
public  would  be   acceleration  of  the  summer   reporting  for                                                              
electronic filing.                                                                                                              
                                                                                                                                
8:23:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BETH   KERTTULA,  Alaska  State   Legislature,  on                                                              
behalf of  the House Rules  Standing Committee, sponsor,  said she                                                              
supports HB 311  because she believes in transparency  and because                                                              
without  the bill  she thinks  there will  be "a  big problem"  in                                                              
eight days when  the reports are due.  She remarked  that APOC has                                                              
a thankless  job.   She opined  that it  was the legislature  that                                                              
caused the  current problem  when, five years  ago, it  decided it                                                              
wanted  electronic  filing.    However,  after  consideration  and                                                              
informal   polling,  she   said   she  is   convinced  that   many                                                              
legislators are  not yet in a position  to be able to  use the new                                                              
system  properly.   She  said at  this point  in  time, she  would                                                              
choose to  still allow  paper filing, which  would put  the burden                                                              
on APOC to  accept that form of  filing and get it  transferred to                                                              
a form accessible via computer.                                                                                                 
                                                                                                                                
8:25:44 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN offered  an example of a problem that  occurred when he                                                              
filed for office.   He said he filed by paper  in Anchorage, then,                                                              
in response  to the upcoming  electronic filing requirement,  went                                                              
to the  commission's office in  Juneau to file electronically  and                                                              
was  told he  had  not  previously  filed.   He  said  he had  the                                                              
paperwork in his hands at that time to prove that was not true.                                                                 
                                                                                                                                
8:26:50 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KERTTULA related that because she has a computer-                                                                
savvy  bookkeeper,  she  does  not  anticipate  having  a  problem                                                              
filing  electronically;  therefore, she  said  she currently  does                                                              
not  have a  conflict of  interest with  HB 311.   She  reiterated                                                              
that it was  the legislature that directed APOC,  through statute,                                                              
to create  the electronic filing  system.  She  said it is  now up                                                              
to the legislature to figure out how to go forward from here.                                                                   
                                                                                                                                
8:27:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PETERSEN  said he supports  HB 311 and  agrees with                                                              
the  idea of  allowing time  to  get the  bugs worked  out of  the                                                              
system.   He offered  his understanding  that several  legislators                                                              
do not  have computer  access in  their session residences,  which                                                              
makes it difficult to get caught up on filing information.                                                                      
                                                                                                                                
CHAIR  LYNN clarified  that although  legislators  have access  to                                                              
computers in  their offices,  they are not  allowed to  use state-                                                              
supplied computers to conduct campaign business.                                                                                
                                                                                                                                
8:28:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON said he  agrees with  the direction  of the                                                              
proposed legislation,  but is looking for clarification  on points                                                              
within it.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  KERTTULA, in  response  to Representative  Seaton,                                                              
confirmed that  currently and under HB  311, APOC is and  would be                                                              
required to accept paper filing and scan it into the system.                                                                    
                                                                                                                                
8:30:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HAWKER,  in  response  to  Representative  Seaton,                                                              
said HB  311 was  crafted with  the intent  to not interfere  with                                                              
APOC   policies,  procedures,   and   determinations  related   to                                                              
information  submitted; the  proposed bill  would change  only the                                                              
methodology of reporting.   He said it would be a  policy call for                                                              
the committee  whether to  provide further  statutory guidance  on                                                              
the   acceptance    of   written    reports,   spreadsheets,    or                                                              
electronically submitted data.                                                                                                  
                                                                                                                                
REPRESENTATIVE  KERTTULA, in  response  to Representative  Seaton,                                                              
offered  her   understanding  that  [matters  pertaining   to  the                                                              
posting date  of reports] are  within the regulatory  authority of                                                              
APOC; however, she deferred to APOC for confirmation.                                                                           
                                                                                                                                
REPRESENTATIVE HAWKER  said he absolutely  believes that  "that is                                                              
the  sort  of  thing  that  is  best  managed  through  regulatory                                                              
activity."                                                                                                                      
                                                                                                                                
8:32:24 AM                                                                                                                    
                                                                                                                                
CHAIR  LYNN   compared  the   timing  of   sending  in   a  report                                                              
electronically versus through the mail.                                                                                         
                                                                                                                                
8:33:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   HAWKER,   in   response   to  a   question   from                                                              
Representative  Seaton,  said  language   [on  page  1,  line  13,                                                              
through  page  2,  line  1] would  require  in  statute  that  the                                                              
spreadsheets  or  data files  submitted  to  APOC conform  to  the                                                              
standard  of the commission.   He  added that  it is not  intended                                                              
that APOC  would require any spreadsheets  or data files  that are                                                              
not readily available to the public.                                                                                            
                                                                                                                                
8:37:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  said he  supports  and appreciates  the                                                              
proposed  legislation, because  he fills  out his reports  himself                                                              
and  submits them  on paper.   He  directed attention  to page  2,                                                              
line 25,  regarding retroactivity.   He noted  that under  HB 311,                                                              
Sections 1 and  2 would be retroactive, and he  questioned whether                                                              
Section  3 -  the transition  section -  on page  2, lines  15-22,                                                              
should  also be  retroactive.   He  said Section  3 would  protect                                                              
people who  may have been filing  in good faith under  the current                                                              
system from being subject to a civil penalty.                                                                                   
                                                                                                                                
8:39:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   HAWKER   said   the  retroactivity   dates   were                                                              
structured by  Legislative Legal  and Research Services,  but said                                                              
he sees  no reason not  to accept an  amendment to make  Section 3                                                              
retroactive.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG mentioned  an  unlabeled amendment,  and                                                              
asked whether it would impact the current fiscal note from APOC.                                                                
                                                                                                                                
8:41:28 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER  told Representative Gruenberg  that the day                                                              
before,  he  received  a  fiscal note  from  APOC  requesting  one                                                              
additional  employee  for an  annual  estimated cost  of  $62,800.                                                              
Based on  his prior  experience as co-chair  of the  House Finance                                                              
Committee  in  charge of  the  operating  budget,  he said  he  is                                                              
having  difficulty  accepting  the  need for  increased  cost  for                                                              
purposes  of HB 311.   He  said he  is cognizant  that there  is a                                                              
cyclical  increase in  the need  for extra  staff during  election                                                              
years.  He recommended  that HB 311 be forwarded  without a fiscal                                                              
note, because  he said  he believes it  would be more  appropriate                                                              
for APOC  to discuss its aggregate  needs for this  election cycle                                                              
and the coming  fiscal budget before the House  and Senate Finance                                                              
Committees.                                                                                                                     
                                                                                                                                
8:44:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER said  he supports  HB 311.   He stated,  "I                                                              
believe you  said ... that this  could become a bar  impediment to                                                              
people ...  in the  state of  Alaska who  may not have  computers,                                                              
and this  may be  an impediment  to run  for office."   He  opined                                                              
that that  is a significant  element, and  ventured that  it could                                                              
become a  legal question.  He  indicated that the  issue increases                                                              
his support of the proposed legislation.                                                                                        
                                                                                                                                
8:45:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   KERTTULA   said   she   thinks   APOC's   current                                                              
regulations would  cover a situation in which  someone was without                                                              
a computer.   She  said the  problem is  more about bandwidth  and                                                              
whether people are able to upload the new program.                                                                              
                                                                                                                                
8:45:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  said  her bookkeeper  keeps abreast  of                                                              
technology,  but  if  she  had  to  [figure  out  the  new  filing                                                              
requirements]  herself, it would  be hard.   She commented  on the                                                              
difficulty  of  meeting  reporting  requirements  during  session.                                                              
She said she supports the bill.                                                                                                 
                                                                                                                                
8:46:44 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN stated  that there would be no conflict  of interest by                                                              
anyone on the  committee when the  time came to move the  bill out                                                              
of committee.                                                                                                                   
                                                                                                                                
8:46:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   HAWKER,   in   response   to  a   question   from                                                              
Representative Gruenberg,  said he  would advise the  committee to                                                              
formally adopt the zero fiscal note in the committee packet.                                                                    
                                                                                                                                
8:47:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON said  she would like  to hear  from APOC                                                              
whether  the reason  it would  need to  hire a  person is  because                                                              
they released a person last year.                                                                                               
                                                                                                                                
8:48:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PETERSEN remarked  that there  are some  potential                                                              
post office  closures across the  state, so candidates  across the                                                              
state may  not have a  way to mail in  their reports, and  if they                                                              
do not  have access  to computers,  they may  have to  travel down                                                              
river  to  a  bigger community  to  complete  submittal  of  their                                                              
reports.                                                                                                                        
                                                                                                                                
8:49:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KERTTULA  said   she  knows  that  APOC  has  been                                                              
willing to  work with candidates  in similar circumstances  in the                                                              
past.  She  said the bill is  not just about incumbents,  but also                                                              
affects candidates.   She  said she  has not had  a chance  to ask                                                              
APOC for  the reason  behind its  fiscal note,  and she  indicated                                                              
that  she  would like  the  bill  to  move  on the  House  Finance                                                              
Committee, where  she would work to  "be sure that we  figure that                                                              
out."                                                                                                                           
                                                                                                                                
REPRESENTATIVE   HAWKER  clarified   for  the   record  that   his                                                              
recommendation is that  the committee pass the bill  with the zero                                                              
fiscal  note,   and  that  APOC   bring  forward  its   needs  and                                                              
considerations for  the coming fiscal  year in its  regular budget                                                              
request for 2013.                                                                                                               
                                                                                                                                
8:51:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON noted  that the APOC  fiscal note  analysis                                                              
read,  "This   bill  may   require  revision   of  newly   enacted                                                              
regulations."  He  asked for clarification.  He then  asked if the                                                              
bill  would  affect   municipal  candidates,  as   well  as  state                                                              
candidates.                                                                                                                     
                                                                                                                                
8:52:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HAWKER  responded  that  the  regulatory  activity                                                              
undertaken  by  all  agencies  is an  ongoing  process,  and  "the                                                              
capability  to manage  that  regulatory  activity  is inherent  in                                                              
their  baseline  budgets."   He  noted  that  the request  in  the                                                              
fiscal  note analysis  was for a  position that  would "engage  in                                                              
the  activities required  by this  bill;  namely scanning,  manual                                                              
data input,  and direct  customer service."   Regarding  municipal                                                              
candidates, he said  current statute excludes candidates  from the                                                              
office of  borough, mayor, and  municipal, assembly  councils from                                                              
electronic reporting.   He said the rewriting of  that statute, as                                                              
reflected  in  Section   1  of  HB  311  "grandfathers,   for  any                                                              
candidate,  the  ability  to  file  on  paper  or  a  spreadsheet,                                                              
encompasses  those  elections, and  makes  ...  no change  in  how                                                              
those  elections and  those candidates  are  administered ...  for                                                              
the  disclosure  requirements currently."    He added,  "It  gives                                                              
state office  candidates essentially  the same choices  that local                                                              
candidates have under current statutes."                                                                                        
                                                                                                                                
REPRESENTATIVE  HAWKER  emphasized   that  he  does  not  see  the                                                              
proposed legislation  as a retrograde motion; the  manner in which                                                              
people have  filed in the  past is the  manner in which  they will                                                              
most likely file  for the upcoming deadline.  He  opined that from                                                              
the standpoint of  affecting the operations of the  agency, HB 311                                                              
is a benign proposal.                                                                                                           
                                                                                                                                
8:55:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG said he  had just  received a  note from                                                              
Mark Higgins,  staff to the  House Rules Standing  Committee, that                                                              
explains that because  Section 4 of the bill lists  Sections 1 and                                                              
2  - "triggering  sections"  - it  is  probably  not necessary  to                                                              
include Section  3.  For that reason,  he said he would  not offer                                                              
an amendment to include Section 3.                                                                                              
                                                                                                                                
8:56:24 AM                                                                                                                    
                                                                                                                                
PAUL  DAUPHINAIS,   Executive  Director,  Alaska   Public  Offices                                                              
Commission  (APOC),  prefaced  his  remarks by  stating  that  the                                                              
commission  understands and  respects the  legislature's need  and                                                              
ability to  make changes [to  statutes] as it  sees fit.   He said                                                              
the  commission  is  charged  with   enforcing  and  administering                                                              
statutes to the best  of its ability.  He stated  that HB 311 will                                                              
make  access to  public  documents more  difficult  and will  make                                                              
APOC an inefficient organization.                                                                                               
                                                                                                                                
MR.  DAUPHINAIS   said  when  he  began  his   role  as  executive                                                              
director,  on February  22,  2011, the  message  he received  from                                                              
legislators was  that getting the  [reporting] system  working was                                                              
the priority,  and he said  APOC spent  the last year  making that                                                              
happen.   He  said the  public is  dissatisfied  with the  current                                                              
system of reporting,  because the current method  of scanning does                                                              
not allow  the public to  compare reports side  by side.   He said                                                              
APOC currently  uses FoxPro  database, which  is an old,  unstable                                                              
database.  The impetus  behind the electronic system  is to have a                                                              
system  where the data  is readily  available  and where there  is                                                              
greater security.                                                                                                               
                                                                                                                                
9:00:13 AM                                                                                                                    
                                                                                                                                
MR. DAUPHINAIS  said as  currently written,  components of  HB 311                                                              
would  be extended  to municipal  filers.   He  said a  three-year                                                              
average shows there  are 145 municipality candidates  that have to                                                              
file multiple  reports annually.   He indicated there are  a great                                                              
number  of   municipalities  that   will  change  between   filing                                                              
electronically  and  not filing  electronically.    Under HB  311,                                                              
municipalities  under 15,000  will be  allowed to  file by  paper.                                                              
He  said  statistical   data  from  national   campaign  oversight                                                              
organizations  has  shown  that  when electronic  filing  is  made                                                              
optional, only  15 percent  of filers use  that system.   He noted                                                              
that that is just  statistical data from the state  of Alaska.  He                                                              
said reports  are amended,  and when reports  are filed  on paper,                                                              
those  amendments  all  have  to be  done  manually,  which  takes                                                              
between  10 minutes  to 5-6 hours.   He  offered further  details.                                                              
Mr. Dauphinais said  that between July 1 and December  31 of 2011,                                                              
APOC spent over 1,100 hours on data input alone.                                                                                
                                                                                                                                
MR. DAUPHINAIS  talked about the  time that APOC  spends assisting                                                              
the  public,  dealing   with  complaints,  and  keeping   up  with                                                              
statutory  requirements.   He  said APOC  wants  to complete  more                                                              
audits, but  was only  able to spend  330 hours conducting  audits                                                              
in the  last six  months.   He indicated  that under  HB 311,  the                                                              
number of those  filing by paper may increase, which  would add to                                                              
the  workload of  the  commission  and make  it  inefficient.   He                                                              
offered his  understanding that  APOC has to  have reports  in its                                                              
possession by  the filing deadline, but  he said he would  like to                                                              
check  statute  to  be  certain.    Mr.  Dauphinais  relayed  that                                                              
reports  sent electronically  sometimes  have  to be  transcribed,                                                              
and he said  he cannot guarantee  no mistakes will be  made in the                                                              
process.                                                                                                                        
                                                                                                                                
9:05:32 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  pointed out  that the  Internal Revenue Service  (IRS)                                                              
accepts  tax  return forms  that  have  been  post marked  by  the                                                              
deadline.                                                                                                                       
                                                                                                                                
MR.  DAUPHINAIS  reiterated  that  he needs  to  look  up  statute                                                              
regarding the deadline for reports.                                                                                             
                                                                                                                                
9:06:21 AM                                                                                                                    
                                                                                                                                
MR.  DAUPHINAIS  offered  his  understanding   that  the  proposed                                                              
legislation would not  allow filing via [the State  of Alaska's on                                                              
line  system  called,]  "myAlaska."    He  directed  attention  to                                                              
language  on page 1,  line 11,  which states  that the  commission                                                              
shall  accept   electronically   submitted  information   that  is                                                              
"entered  onto a  version of  the  form accessed  on the  Internet                                                              
website  of the  commission",  and  he said  myAlaska  is not  the                                                              
Internet web site  of the commission.  He opined  that if APOC has                                                              
to create a security  system similar to myAlaska,  based on APOC's                                                              
website, it would  be time consuming, expensive,  and inefficient.                                                              
In response to Chair Lynn, he offered further details.                                                                          
                                                                                                                                
9:11:17 AM                                                                                                                    
                                                                                                                                
MR. DAUPHINAIS,  in response to Representative Keller,  said there                                                              
are   many   states,   including   Massachusetts,   that   require                                                              
electronic filing,  and many others  that will require  electronic                                                              
filing in the next  two to three years, and he  offered to procure                                                              
a list for the committee.                                                                                                       
                                                                                                                                
CHAIR LYNN  commented that  the geography  of Alaska is  different                                                              
from that of any other state.                                                                                                   
                                                                                                                                
REPRESENTATIVE KELLER  explained that  he was wondering  if Alaska                                                              
is on the leading edge of this issue.                                                                                           
                                                                                                                                
9:13:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  returned   attention  to  Mr.  Dauphinais'                                                              
previously stated  concern regarding the language on  page 1, line                                                              
11.   He asked him if  it would help  to change the  language from                                                              
"the  Internet website  of  the commission"  to  "the Internet  as                                                              
designated by the commission".                                                                                                  
                                                                                                                                
MR. DAUPHINAIS answered yes.                                                                                                    
                                                                                                                                
9:14:01 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG recalled  Mr. Dauphinais  had said  that                                                              
currently  municipal candidates  in  communities with  populations                                                              
over  15,000  are   required  to  file  electronically,   and  the                                                              
proposed  legislation   would  be   a  step  backward   for  those                                                              
communities.                                                                                                                    
                                                                                                                                
MR. DAUPHINAIS confirmed that is correct.                                                                                       
                                                                                                                                
REPRESENTATIVE  GRUENBERG said he  would like  to know if  that is                                                              
the sponsor's intent.                                                                                                           
                                                                                                                                
9:15:49 AM                                                                                                                    
                                                                                                                                
MR.  DAUPHINAIS  shared  that  he was  confused  by  the  proposed                                                              
regulation  after   having  been   given  the  directive   by  the                                                              
legislature  last year  to go  forward with  an electronic  filing                                                              
system.   He said he  understands that  "APOC is the  organization                                                              
that everybody loves  to hate," but said APOC wants  to "do things                                                              
right and conform to the law."                                                                                                  
                                                                                                                                
CHAIR LYNN  interjected that he  thinks those who make  reports to                                                              
APOC want to do things right.                                                                                                   
                                                                                                                                
MR. DAUPHINAIS  said many  of the  complaints APOC addresses  stem                                                              
from ignorance,  and the  electronic filing  that APOC  envisioned                                                              
would  allow  the commission  to  devote  more time  to  training,                                                              
outreach, and auditing.                                                                                                         
                                                                                                                                
9:17:20 AM                                                                                                                    
                                                                                                                                
MR. DAUPHINAIS  directed  attention to APOC's  fiscal note,  dated                                                              
2/3/12 [included in  the committee packet].  He  said the increase                                                              
in reports  that APOC would  have to do if  HB 311 passes  was the                                                              
impetus for the  fiscal note.  He noted that not  reflected in the                                                              
fiscal note is the  cost to replace the FoxPro  database, which he                                                              
reiterated  works at  present but  is  not going  to be  supported                                                              
much longer.                                                                                                                    
                                                                                                                                
9:18:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG,  regarding   the  filing  deadline  for                                                              
financial  disclosures,  cited   2AAC  50.785(c),  which  read  as                                                              
follows:                                                                                                                        
                                                                                                                                
     (c)  If a  filer files  a disclosure  statement by  hand                                                                   
     delivery or  facsimile, the date  of filing is  the date                                                                   
     on  which  an  office of  the  commission  receives  the                                                                   
     statement.  If the  filer files  a disclosure  statement                                                                   
     by  mail,  the  date  of  filing  is  the  date  of  the                                                                   
     postmark. If  a disclosure  statement filed by  mail has                                                                   
     a postmark  on which the  date is missing or  illegible,                                                                   
     the date  of the postmark  is rebuttably presumed  to be                                                                   
     10  calendar   days  before   the  date  on   which  the                                                                   
     disclosure   statement  is   received.  (Eff.   7/20/95,                                                                   
     Register 135)                                                                                                              
                                                                                                                                
MR. DAUPHINAIS said  he would like to review that  before giving a                                                              
definitive answer.                                                                                                              
                                                                                                                                
9:19:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HAWKER  said  he disagrees  with  Mr.  Dauphinais'                                                              
previous statement that  HB 311 may prohibit use of  myAlaska.  He                                                              
returned attention  to the language  on page 1, lines  11-12 [text                                                              
provided previously],  and he emphasized the word  "accessed".  He                                                              
indicated that  the top line  of APOC's  web site provides  a link                                                              
to access electronic filing of APOC documents.                                                                                  
                                                                                                                                
9:21:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KERTTULA posited  that  "we" have  a common  goal.                                                              
She said the agency  is doing a good job trying  to get ahead, but                                                              
without  delaying the  impending  APOC filing  requirement,  there                                                              
will be "a real  pile-up."  She opined that using  the phrase "the                                                              
form accessed"  would give  APOC great  latitude.  She  concluded,                                                              
"It was  never our intent  to do away  with the work  that they've                                                              
done."                                                                                                                          
                                                                                                                                
REPRESENTATIVE  HAWKER concurred.    He emphasized  that he  wants                                                              
all candidates  to know that the  single point of  information for                                                              
compliance filing is  APOC's web site.  He said the  mission is to                                                              
make  the filing  system  work for  both  the  candidates and  the                                                              
public.   He stated that the  bill would codify  current practice,                                                              
and he stated his  belief that the bill would not  be a retrograde                                                              
motion.    He  clarified  that   there  has  been  a  mandate  for                                                              
electronic filing, and  those who file on paper have  been able to                                                              
do so  because of  an exception  allowed in statute.   He  said he                                                              
encourages APOC  to continue to implement electronic  systems that                                                              
are  sufficiently  effective, attractive,  and  user-friendly,  so                                                              
that  an   increasing  number   of  candidates   choose   to  file                                                              
electronically.                                                                                                                 
                                                                                                                                
9:25:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PETERSEN   offered  his  understanding   that  the                                                              
proposed legislation  does allow  the commission to  use myAlaska,                                                              
because  of the language  beginning  on page  1, line 13,  through                                                              
page 2, line 1, which read as follows:                                                                                          
                                                                                                                                
                    (2) submitted to the commission in the                                                                      
     form  of an  electronic spreadsheet  or  data file  that                                                                   
     contains field  names and data  types that conform  to a                                                                   
     standard defined by the commission.                                                                                        
                                                                                                                                
REPRESENTATIVE  PETERSEN indicated  that if  APOC wants  people to                                                              
use myAlaska, then  the commission would just need  to define that                                                              
as a standard.                                                                                                                  
                                                                                                                                
9:26:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON offered  his  understanding  that under  HB
311, municipalities  with populations  above 15,000 could  file by                                                              
paper.  He  asked whether that is  a change or whether  because of                                                              
"waiver ability" it is not considered a change.                                                                                 
                                                                                                                                
REPRESENTATIVE  HAWKER  responded  that current  statute  requires                                                              
candidates   for    state   and   municipal   offices    to   file                                                              
electronically,  and under  HB 311,  state  office candidates  and                                                              
candidates in municipalities  larger than 15,000 would  be able to                                                              
file a  paper report  without having  to avail  themselves  of the                                                              
other statutory provisions  that allow APOC to  make exceptions to                                                              
[the requirement  to] report electronically.   He stated,  "We are                                                              
revisiting  the standard  and,  through this  legislation,  saying                                                              
that  electronic filing  is the  desired outcome,  but we  respect                                                              
the  relative skills,  abilities, and  circumstances of  potential                                                              
candidates who may  not be able to avail themselves  of electronic                                                              
filing or may not choose to."                                                                                                   
                                                                                                                                
9:29:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  said he is in favor of  bill, but expressed                                                              
concern that it will result in a lot more paper filing.                                                                         
                                                                                                                                
9:30:32 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   KERTTULA    offered   her    understanding   that                                                              
"everyone"  was under  the old  system,  which allowed  electronic                                                              
and paper  filing, and APOC  came up with  a new system,  which is                                                              
what HB 311  would address.  She  said the one point  on which she                                                              
is not  clear is  whether or  not the  municipalities are  "in the                                                              
same place"  that legislators  are in, but  said if they  are, she                                                              
questions that anybody would "move backward."                                                                                   
                                                                                                                                
9:31:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   HAWKER  concurred.     He  said,  "I   think  the                                                              
mandatory electronic  filing has disenfranchised a  certain cohort                                                              
of  the  state's population  that  I  think  we  have to  be  very                                                              
careful  to  protect."    He  emphasized  the  importance  of  not                                                              
discouraging anyone in Alaska from running for public office.                                                                   
                                                                                                                                
9:33:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  directed attention  to the wording  of a                                                              
sentence on page 2, line 9, which read as follows:                                                                              
                                                                                                                                
      Each summary must [SHALL] use uniform categories of                                                                   
     reporting.                                                                                                                 
                                                                                                                                
REPRESENTATIVE GRUENBERG  pointed out that under HB  311, the word                                                              
"shall"  would  be   changed  to  "must".    He   said  "must"  is                                                              
mandatory,  whereas  "shall" is  directory.    He said  he  thinks                                                              
"shall" should be changed to "must" on page 1, line 6.                                                                          
                                                                                                                                
REPRESENTATIVE  HAWKER confirmed  that the  intent of the  sponsor                                                              
was  that the  commission must  accept  "any information  required                                                              
under this chapter".                                                                                                            
                                                                                                                                
9:36:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KERTTULA, in  response  to Representative  Keller,                                                              
said  the directive  from the  legislature  to APOC  to create  an                                                              
electronic filing system  is in statute.  She  reiterated that the                                                              
goal has not changed, but the timing is problematic.                                                                            
                                                                                                                                
9:38:45 AM                                                                                                                    
                                                                                                                                
MR.  DAUPHINAIS, in  response to  Representative  P. Wilson,  said                                                              
the rule  regarding municipalities  with a population  over 15,000                                                              
was  in place  before he  took his  current position  with APOC  a                                                              
year ago.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  P.   WILSON  asked  if  APOC  has   received  much                                                              
feedback  in the past  from municipalities  with populations  over                                                              
15,000 that the electronic filing process is too difficult.                                                                     
                                                                                                                                
MR. DAUPHINAIS answered  that he is not aware of  any, but said he                                                              
would canvas  staff to  find out  if they  have received  any such                                                              
comments in the past.                                                                                                           
                                                                                                                                
9:41:42 AM                                                                                                                    
                                                                                                                                
CHAIR  LYNN, after  ascertaining that  there was  no one else  who                                                              
wished to testify, closed public testimony.                                                                                     
                                                                                                                                
9:42:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  moved to  adopt Amendment 1,  which read                                                              
as follows:                                                                                                                     
                                                                                                                                
     Page 2, line 7, following "within"                                                                                         
          Delete "10"                                                                                                           
          Insert "two working"                                                                                                  
                                                                                                                                
There being no objection, Amendment 1 was adopted.                                                                              
                                                                                                                                
9:42:34 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG moved to  adopt Conceptual  Amendment 2,                                                              
to change  "shall" to  "must", on  page 1, line  6.  He  explained                                                              
that  he would  like  to  leave it  up  to Legislative  Legal  and                                                              
Research Services to determine if the change is necessary.                                                                      
                                                                                                                                
CHAIR LYNN  suggested that  the next  committee of referral  could                                                              
ask  Legislative Legal  and  Research Services  if  the change  is                                                              
necessary and act accordingly.                                                                                                  
                                                                                                                                
REPRESENTATIVE  HAWKER  noted that  if  HB 311  moves  out of  the                                                              
House  State Affairs  Standing Committee  without  a fiscal  note,                                                              
then  the next  committee of  referral  would be  the House  Rules                                                              
Standing Committee;  however, if  a fiscal  note is attached,  the                                                              
bill would  have to be heard by  the House Finance Committee.   He                                                              
stated that  if the committee  researches the question  brought by                                                              
Representative  Gruenberg and determines  that the language  needs                                                              
to be  changed, then he  would ensure that  the issue is  heard by                                                              
the House Rules Standing Committee.                                                                                             
                                                                                                                                
9:44:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  withdrew his motion to  adopt Conceptual                                                              
Amendment 2.                                                                                                                    
                                                                                                                                
9:44:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   KERTTULA,    in   response    to   Representative                                                              
Gruenberg, said  both municipalities and the legislature  were "in                                                              
the  same boat,"  and then  municipalities with  less than  15,000                                                              
were exempted.   She said  she would continue  to work  to improve                                                              
the bill.                                                                                                                       
                                                                                                                                
9:46:01 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  moved  to  attach  the  zero  fiscal  note                                                              
prepared by the  House State Affairs Standing Committee,  with the                                                              
understanding  that APOC  would use the  normal budgetary  process                                                              
to explain any budgetary needs.                                                                                                 
                                                                                                                                
9:47:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON  objected  to  make  a  comment.    She                                                              
cautioned the committee  to carefully consider the  effects of the                                                              
bill on  municipalities.  She  said she  thinks it makes  sense to                                                              
allow  municipalities with  populations  under 15,000  to file  by                                                              
paper.   She talked  about the difficulty  of changing  gears mid-                                                              
election cycle.                                                                                                                 
                                                                                                                                
REPRESENTATIVE P.  WILSON removed her  objection.  There  being no                                                              
further  objection, the  motion  to attach  the  zero fiscal  note                                                              
prepared  by  the  House  State  Affairs  Standing  Committee  was                                                              
accepted.                                                                                                                       
                                                                                                                                
9:49:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  commented on the  rapid nature of  the bill                                                              
hearing and  the possible  effect of  allowing everyone  to choose                                                              
between paper  and electronic  filing.  He  stated, "I  think that                                                              
this is  a drastic  change in  direction from  where we  have been                                                              
going  in  trying  to  make our  system  of  reporting  quick  and                                                              
available to the  public."  He recommended consideration  be given                                                              
to  change the  bill  so  that there  still  is a  presumption  of                                                              
electronic filing with a possible variance for paper filing.                                                                    
                                                                                                                                
9:52:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  posited that the  common goal is to  have a                                                              
user-friendly method of clear reporting.                                                                                        
                                                                                                                                
REPRESENTATIVE KELLER  moved to report HB 311, as  amended, out of                                                              
committee with  individual recommendations  and the  attached zero                                                              
fiscal  note.    There  being  no  objection,  CSHB  311(STA)  was                                                              
reported out of committee.                                                                                                      
                                                                                                                                
9:54:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON said she thinks  there is a fear  of the                                                              
process, but it is not that difficult.  She offered examples.                                                                   
                                                                                                                                

Document Name Date/Time Subjects
07 HB 190 Legal Memo Lisa Kirsch 3-18-11.pdf HSTA 2/7/2012 8:00:00 AM
SSTA 4/11/2012 9:00:00 AM
SSTA 4/12/2012 9:00:00 AM
HB 190
08 2012 Sponsor Substitute HB 190 Version X.pdf HSTA 2/7/2012 8:00:00 AM
HB 190
08a 2012 HB 190 Version Change Summary.pdf HSTA 2/7/2012 8:00:00 AM
HB 190
09 2012 HB 190 CS SS Version 27-LS0564R.pdf HSTA 2/7/2012 8:00:00 AM
HB 190
10 2012 HB 190 Sectional Analysis CS Version 27-LS0564R.pdf HSTA 2/7/2012 8:00:00 AM
HB 190
11 2012 HB 190 PFD 2011 Extended Absence Questionnaire.pdf HSTA 2/7/2012 8:00:00 AM
SSTA 4/11/2012 9:00:00 AM
SSTA 4/12/2012 9:00:00 AM
HB 190
12 2012 HB 190 Residency and Allowable Absences15 AAC 23 .pdf HSTA 2/7/2012 8:00:00 AM
SSTA 4/12/2012 9:00:00 AM
HB 190
13 2012 HB 190 PFD Allowable Absences.pdf HSTA 2/7/2012 8:00:00 AM
SSTA 4/12/2012 9:00:00 AM
HB 190
14 2012 HB190SS-DOR-PFD-02-02-12.pdf HSTA 2/7/2012 8:00:00 AM
HB 190
01 HB 311.B.pdf HSTA 2/7/2012 8:00:00 AM
HB 311
02 HB 311 Sectional Analysis.pdf HSTA 2/7/2012 8:00:00 AM
HB 311
03 HB 311 Sponsor Statement.pdf HSTA 2/7/2012 8:00:00 AM
HB 311
04 HB311-DOA-APOC-2-3-12.pdf HSTA 2/7/2012 8:00:00 AM
HB 311