Legislature(2007 - 2008)BELTZ 211
01/22/2007 01:30 PM Senate JUDICIARY
Audio | Topic |
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Start | |
SB19 | |
SB20 | |
SB13 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
*+ | SB 19 | TELECONFERENCED | |
*+ | SB 20 | TELECONFERENCED | |
*+ | SB 13 | TELECONFERENCED | |
SB 20-LEGISLATIVE DISCLOSURES 2:02:40 PM CHAIR HOLLIS FRENCH announced SB 20 to be up for consideration and read the following sponsor statement into the record: SB 20 is a simple bill designed to clarify Alaska Public Offices Commission (APOC) reporting requirements for legislators and other public officials. Under the current legislative ethics code a public official must disclose the nature of any work performed as personal services for which compensation greater than $1,000 is received. SB 20 simply adds language to the existing statute to require the filer to provide a substantive description of what was done for the contract, as well as the approximate number of hours spent. The public has repeatedly appealed for more substantive disclosures, and SB 20 provides the increased degree of openness they are calling for. This will assure the public that the compensation public officials receive for outside work does not conflict in any way with their public duties, without unduly burdening citizen legislators who perform legitimate duties outside of the public realm. The clarification the bill provides will also help APOC fulfill its mission of encouraging the public's confidence in their elected and appointed officials. CHAIR FRENCH related that on page 2, lines 3 and 4 add dividend income received from a limited liability company to the types of income that must be reported. Also page 2, lines 6 through 9 add the requirement that the services performed must be described such that a person of ordinary understanding is able to grasp what was done, outside the Legislature, in exchange for the money that was received. Page 2, lines 10 and 11 require reporting the number of hours spent performing the service. That way the public is able to cross-reference and thereby decide whether the remuneration is market based. Finally, page 2, line 12 outlines that the amount of income received from the source must be disclosed if the recipient is a legislator or a legislative director. Section 2 adds a definition for "professional license" to mean one that is required for a profession regulated by a state or the federal government. Lists of such professions are published and readily available. Basically, the disclosure is increased so that anyone who reads the statement is able to determine what the legislator is doing in exchange for the money that he or she is receiving outside the Legislature. CHAIR FRENCH recognized Brooke Miles and noted that she was available to answer questions. 2:05:20 PM BROOKE MILES, Executive Director, Alaska Public Offices Commission (APOC), said she did not have anything to add to the bill overview and reminded members that it is not the commission's policy to support or oppose legislative changes. However, everyone appreciates when there is an effort to codify clarification to existing language that has been difficult to interpret. This measure does just that, she said. Section 1 makes it clear that dividend income from a limited liability company must be reported on the legislative financial disclosure statement. It also clarifies that when a legislator or a legislative director receives income from a professional service, a detailed description of the services must be provided. She noted the zero fiscal note and said the measure would make it easier for APOC administer. 2:07:01 PM CHAIR FRENCH said he had two questions. First, he questioned whether it might be useful to set a threshold, such as $1,000, for disclosing dividend income from a limited liability company. MS. MILES said she presumed the threshold would be $1,000 since Alaska voters established the $1,000 threshold for legislative disclosure in the 2006 primary. CHAIR FRENCH said he would prepare an amendment to address that point. He asked Ms. Miles to explain the "unless clause" on page 2, lines 8 and 9 that provides an exception if the services require issuance of a state or federal professional license. MS. MILES related that some services, such as analyst or consultant, are broadly defined and the idea is to make more information available to the public in those broader areas of self employment. The intent is not to add requirements for professions that already report payments in excess of $1,000. CHAIR FRENCH summarized that if the work that is done is pursuant to a state license, then no further description of the services provided is necessary. However, if the services fall in the broader realm of consultant, advisor, or analyst, then there is need for a more complete description of what is done for the money. MS. MILES agreed. 2:10:44 PM SENATOR GENE THERRIAULT asked Ms. Miles to comment on the fact that on page 2, paragraphs (2)(A),(B), and (C) disclose the basic information, but do nothing to address whether or not the compensation is outrageous. MS. MILES agreed that the bill does not place control on that issue, but a section of the legislative ethics laws speaks to employment being commensurate to the amount paid. APOC has the disclosure and provides the information for the public so the hours that are reported would provide a useful tool to the Legislative Ethics Committee in the event that a complaint is filed. She advised that Joyce Anderson could better address that question. SENATOR THERRIAULT said understanding how this section works with the other section may satisfy that concern, but the public might still find the disclosed information upsetting. CHAIR FRENCH closed public testimony and announced he would hold SB 20 until Wednesday. He noted that he would prepare an amendment to page 2, lines 3 and 4 and Senator Therriault might offer one as well.
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