Legislature(2007 - 2008)BUTROVICH 205

04/05/2008 09:00 AM Senate JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 305 CAMPAIGN FUND RAISING DURING SESSIONS TELECONFERENCED
Heard & Held
+ HB 50 CHILD PLACEMENT COMPACT TELECONFERENCED
Moved CSHB 50(JUD) Out of Committee
+ HB 400 MITIGATING FACTOR: CARE FOR DRUG OVERDOSE TELECONFERENCED
Moved HB 400 Out of Committee
+ HJR 37 CONST AM: SEC. OF STATE REFERENCES TELECONFERENCED
Moved CSHJR 37(JUD) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
= HB 163 PROPERTY FORECLOSURES AND EXECUTIONS
Moved SCS CSHB 163(JUD) Out of Committee
= HB 268 MOTOR VEHICLE ARSON ON PUBLIC LAND
Moved HB 268 Out of Committee
= HB 359 PROBATION AND MINOR CONSUMING
Moved CSHB 359(FIN) Out of Committee
    CSHB 305(RLS) am -CAMPAIGN FUND RAISING DURING SESSIONS                                                                 
                                                                                                                                
CHAIR FRENCH announced  the consideration of HB  305 dealing with                                                               
campaign finance. [Before the committee was CSHB 305(RLS) am.]                                                                  
                                                                                                                                
9:14:57 AM                                                                                                                    
MIKE POWLOWSKI,  Staff to Representative Kevin  Meyer, sponsor of                                                               
HB 305, described  Section 3 as the meat of  the bill. It extends                                                               
to  other  races the  prohibition  against  a legislator  raising                                                               
money for  a statewide office  during a legislative  session. The                                                               
current version  provides a  blanket prohibition  against raising                                                               
money:  for another  candidate for  municipal, state,  or federal                                                               
office; to influence  a ballot proposition or question;  or for a                                                               
political  party. When  the  legislature is  not  in session  the                                                               
legislator regains the right to solicit for those activities.                                                                   
                                                                                                                                
9:17:16 AM                                                                                                                    
MR.  POWLOWSKI said  that  subparagraph  (A) in  Section  3 is  a                                                               
little different in  that a legislator can solicit  funds for his                                                               
or her own  campaign for office as  long as it is  within 90 days                                                               
of that  election and not  in the  location where the  session is                                                               
being held or in the capital city.                                                                                              
                                                                                                                                
Section  1  repeals  and  reenacts  AS  15.13.072(d)  to  provide                                                               
continuity between the APOC laws  and ethics laws. Subsection (d)                                                               
originally  applied  the  prohibition  to  both  legislators  and                                                               
candidates,   but    the   court    determined   that    it   was                                                               
unconstitutional to apply the prohibition  to candidates who were                                                               
not sitting  legislators, so the  section was never  enforced. In                                                               
working through  the process they  decided to repeal  and reenact                                                               
the statute, meet the court  order and apply the prohibition only                                                               
to legislators.  The APOC laws  are amended to clarify  that this                                                               
applies to  not only  a legislative race,  but also  a municipal,                                                               
state, or federal races.                                                                                                        
                                                                                                                                
9:19:06 AM                                                                                                                    
CHAIR  FRENCH added  that Title  15 is  the APOC  statutes so  to                                                               
contravene the  statute is an  APOC violation. He asked  what the                                                               
penalty is for that and Mr.  Powlowski said he would provide that                                                               
information later.                                                                                                              
                                                                                                                                
MR. POWLOWSKI explained that Section  2 relates to the ethics law                                                               
and applies only  to legislative employees. It does  not apply to                                                               
legislators.  The  reasoning  is  that  Section  3  places  broad                                                               
prohibitions on  legislators and  that section wouldn't  apply in                                                               
its entirety to legislative employees  since they aren't decision                                                               
makers.                                                                                                                         
                                                                                                                                
MR. POWLOWSKI said he hopes  there is some conversation about the                                                               
issue  of federal  preemption  as  it relates  to  the bill.  The                                                               
sponsor  recognizes that  federal law  preempts this  bill as  it                                                               
applies to federal  office, but he believes that the  state has a                                                               
compelling interest in governing  the conduct of its legislators,                                                               
so a challenge is warranted.                                                                                                    
                                                                                                                                
9:21:11 AM                                                                                                                    
SENATOR THERRIAULT asked  if the issue is  that it's questionable                                                               
that this  state law can preempt  him from raising money  for his                                                               
or someone else's federal campaign.                                                                                             
                                                                                                                                
MR.  POWLOWSKI replied  he understands  that  it would  be for  a                                                               
candidate's  own  campaign  for federal  office.  Candidates  for                                                               
federal  office  fall  under the  federal  election  code,  which                                                               
applies  only to  a candidacy.  "We  do believe  that the  bill's                                                               
prohibitions on  your solicitation of  funds in favor  of someone                                                               
for  federal office  would not  fall under  the federal  election                                                               
code."                                                                                                                          
                                                                                                                                
CHAIR FRENCH asked if the  federal preemption pertains in Section                                                               
3 because the  bill states that "on any day  when either house of                                                               
the legislature  is in regular  or special session,  a legislator                                                               
may not solicit  or accept a contribution or a  promise or pledge                                                               
to  make a  contribution for  the legislator's  own campaign  for                                                               
public office."  The sponsor interprets  "public office"  to mean                                                               
local, state, or federal.                                                                                                       
                                                                                                                                
MR. POWLOWSKI said that's correct.                                                                                              
                                                                                                                                
9:22:45 AM                                                                                                                    
CHAIR FRENCH referred  to the legal opinion dated  1/25/08 on the                                                               
issue  of federal  preemption  that cites  a  case from  Georgia,                                                               
Tepper  v.  Miller.  In  that  case the  U.S.  Court  of  Appeals                                                             
affirmed  an  injunction against  enforcement  of  a Georgia  law                                                               
prohibiting  Georgia  General  Assembly  members  from  accepting                                                               
contributions for  federal election campaigns while  the assembly                                                               
was in  session. The court of  appeals held that the  statute was                                                               
preempted by the Federal Election Campaign Act of 1971.                                                                         
                                                                                                                                
CHAIR  FRENCH said  that in  bald terms  "preemption" means  that                                                               
you're pushed  out of the way.  In this country U.S.  federal law                                                               
is supreme  and in  this issue  it sits on  top of  anything this                                                               
state  might do,  particularly with  respect to  federal election                                                               
laws.  Basically, the  state  is powerless  to  tell the  federal                                                               
government how  to run federal  elections. The last  paragraph of                                                               
that opinion says: "The express  language of the federal election                                                               
laws preemption  provision, the provision's  legislative history,                                                               
and  the  FEC's  interpretation  make  plain  that  a  state  law                                                               
operating to regulate the period  in which a category of citizens                                                               
can accept  contributions for  a campaign  for federal  office is                                                               
preempted."                                                                                                                     
                                                                                                                                
CHAIR  FRENCH  observed that  the  foregoing  doesn't leave  much                                                               
wiggle room  and it makes  him nervous to  set up a  statute that                                                               
invites a challenge and legal  proceedings that would require the                                                               
state to  defend the law.  Ultimately he  said he feels  that the                                                               
district attorney who tries to defend this law will lose.                                                                       
                                                                                                                                
9:25:32 AM                                                                                                                    
MR. POWLOWSKI  responded that the  sponsor appreciates  the issue                                                               
and did take pause when  he received the opinion from legislative                                                               
legal. The  packets also  contain a  research report  pointing to                                                               
three  other states  that have  a similar  provision that  either                                                               
have not been  struck down or have not been  challenged. When the                                                               
sponsor saw that, he decided to go forward with that provision.                                                                 
                                                                                                                                
SENATOR  THERRIAULT  asked  if the  similar  provision  in  other                                                               
states hadn't been struck down or hadn't been challenged.                                                                       
                                                                                                                                
MR. POWLOWSKI said the Tepper  v. Miller challenge in Georgia was                                                             
overturned  and in  another state  the  attorney general  decided                                                               
that the provision would not be  enforced. "It's the same way the                                                               
state  currently operates  under the  way the  existing APOC  law                                                               
applies  to candidates."  The law  says one  thing and  the state                                                               
court  says it  won't be  enforced. The  other three  states have                                                               
similar  provisions  in  law,  but a  challenge  has  never  been                                                               
brought so they remain in effect.                                                                                               
                                                                                                                                
CHAIR  FRENCH said  it's an  interesting  intersection of  what's                                                               
right, what's legal,  and what you can get away  with. "It may be                                                               
that we  can't stop  sitting legislators  from raising  money for                                                               
federal office  while the  legislature is in  session. It  may be                                                               
that those individuals  would think twice about  the propriety of                                                               
doing so  since we're all banned  from raising money for  our own                                                               
campaigns while we're here doing  the state's business. It may be                                                               
that…the whole  welter of  laws is  beside the  point. It  may be                                                               
that total and  complete disclosure is really the way  to go," he                                                               
said.                                                                                                                           
                                                                                                                                
9:28:40 AM                                                                                                                    
CHAIR FRENCH asked  if subparagraph (B) in Section  3 prohibits a                                                               
legislator from making a contribution for another candidate                                                                     
                                                                                                                                
MR. POWLOWSKI replied  their understanding of (A),  (B), (C), and                                                               
(D) is that they fall  under paragraph (1). That says legislators                                                               
may not  "on a  day when  either house of  the legislature  is in                                                               
regular or special  session, solicit or accept  a contribution or                                                               
a promise  or pledge to  make a contribution" so  the prohibition                                                               
applies  to  solicitation or  acceptance  of  funds and  not  the                                                               
ability to make a contribution.                                                                                                 
                                                                                                                                
CHAIR FRENCH  said he couldn't,  for example, raise money  for an                                                               
assembly candidate in Anchorage.                                                                                                
                                                                                                                                
MR. POWLOWSKI  agreed and said  the fundraising events  that take                                                               
place  during  the  campaign  season  provide  an  easy  example.                                                               
Oftentimes  you'll see  members hosting  events to  solicit funds                                                               
for a  candidate. That would  be prohibited during  a legislative                                                               
session, but  a legislator  would continue to  have the  right to                                                               
appear and  endorse the candidate as  long as it isn't  linked to                                                               
the solicitation of funds.                                                                                                      
                                                                                                                                
CHAIR  FRENCH asked  about the  circumstance  of his  going to  a                                                               
fundraiser  and  standing  up  and  asking  folks  to  get  their                                                               
checkbooks out because this guy is worth electing.                                                                              
                                                                                                                                
MR. POWLOWSKI replied  that would be over the  line. In governing                                                               
conduct  for  this  section,  the  point is  to  not  attend  the                                                               
fundraiser  in  favor  of  that candidate.  When  it  applies  to                                                               
candidates it's a  little different than ballot  measures but the                                                               
principle  is similar.  Legislators could  appear in  commercials                                                               
supporting  the  policy of  an  initiative,  but they  could  not                                                               
appear in a  commercial asking to raise money  for the initiative                                                               
because that  is a  solicitation for  funds. It's  separating the                                                               
act of soliciting money versus the act of supporting the policy.                                                                
                                                                                                                                
9:31:34 AM                                                                                                                    
SENATOR  McGUIRE expressed  the view  that this  is an  important                                                               
policy when you think about  the principle behind why legislators                                                               
can't raise money  while in Juneau. At heart it's  so there isn't                                                               
an  appearance that  legislators  are being  influenced in  their                                                               
deliberations.  It could  be  carried a  step  further with  poor                                                               
motive. "I  think putting it into  law is a great  approach," she                                                               
said.                                                                                                                           
                                                                                                                                
MR. POWLOWSKI added  that legislators used to  be prohibited from                                                               
raising  money for  legislative, municipal  and statewide  office                                                               
and HB 305  initially tried to take  the law back to  what it was                                                               
before.  The problem  was extending  that prohibition  to federal                                                               
law.                                                                                                                            
                                                                                                                                
9:33:52 AM                                                                                                                    
SENATOR   WIELECHOWSKI  said   he  doesn't   disagree  with   the                                                               
philosophy, but  he questions  whether it's any  better to  get a                                                               
$1,000 check  the day  before the session  versus getting  it the                                                               
day the session starts.                                                                                                         
                                                                                                                                
MR.  POWLOWSKI replied  we felt  that  when members  put on  hold                                                               
their role as  a citizen to take up the  people's business is the                                                               
defining  line  for  saying  that  this  is  a  time  not  to  be                                                               
soliciting funds.                                                                                                               
                                                                                                                                
SENATOR WIELECHOWSKI asked  if this would also  apply to governor                                                               
candidates, lieutenant governor  candidates and perhaps municipal                                                               
candidates.                                                                                                                     
                                                                                                                                
MR. POWLOWSKI  said the  provision is  in the  Legislative Ethics                                                               
Act and it  applies only to the conduct of  legislators. That was                                                               
the sponsor's focus.                                                                                                            
                                                                                                                                
SENATOR WIELECHOWSKI  asked if  he would  object to  amending the                                                               
bill to include the Executive Branch Ethics Act.                                                                                
                                                                                                                                
MR.  POWLOWSKI replied  he doesn't  know the  sponsor's position,                                                               
but when that  was discussed in previous  committees his position                                                               
was that the executive branch should deal with that.                                                                            
                                                                                                                                
9:36:53 AM                                                                                                                    
SENATOR  THERRIAULT  said  Mr.  Pawlowski  made  the  point  that                                                               
legislators  shift  roles  from  being   a  citizen  to  being  a                                                               
legislator  when the  session starts,  and  if you  wanted to  go                                                               
beyond that  you'd have to  make the prohibition year  around and                                                               
that  would be  a complete  loss  of a  constitutional right.  As                                                               
currently  drafted, the  line  is very  bright  and distinct,  he                                                               
stated.                                                                                                                         
                                                                                                                                
CHAIR  FRENCH observed  that the  further you  get from  the core                                                               
activity  you're trying  to  prevent, the  more  you'll get  into                                                               
legal trouble.  He can't  see any  court upholding  a ban  on the                                                               
ability  to raise  money  for good  causes  during a  legislative                                                               
session, even if you have a bad motive for doing so.                                                                            
                                                                                                                                
9:39:08 AM                                                                                                                    
SENATOR McGUIRE said she believes  the distinction is that you're                                                               
in a  political context asking  for money as opposed  to speaking                                                               
on behalf of a good cause.                                                                                                      
                                                                                                                                
CHAIR  FRENCH said  that's  the exact  tension  because there  is                                                               
nothing more protected  than political speech. It's  at the heart                                                               
of the  First Amendment. The  First Amendment isn't  about asking                                                               
for  money for  the Red  Cross  or an  advertisement for  selling                                                               
soap; it's  about a person's  right to  stand up and  state their                                                               
political principles  with as much  vigor and enthusiasm  as they                                                               
like.                                                                                                                           
                                                                                                                                
MR. POWLOWSKI relayed that the  next subsection, AS 24.60.030(e),                                                               
speaks  to that  very conduct.  It talks  about a  legislator not                                                               
trading  his  or her  vote  and  it  speaks  to donating  or  not                                                               
donating to  a cause favored  by the legislator. Extending  it to                                                               
cover  things  like  the  Red   Cross  was  discussed  but  those                                                               
individuals are not policy makers;  that is a legislator role. As                                                               
long as  you limit  it to  things that  are political  in nature,                                                               
you're  within  reasonable  bounds,  he said.  We  haven't  heard                                                               
significant  constitutional  questions  on   the  issue  of  free                                                               
speech.  The  legal  memorandums   say  that  the  constitutional                                                               
questions are related to the  federal election issues rather than                                                               
free speech.                                                                                                                    
                                                                                                                                
SENATOR McGUIRE added  that the courts have  said that reasonable                                                               
restrictions  are  allowed  because  it's  the  compelling  state                                                               
interest.                                                                                                                       
                                                                                                                                
9:42:21 AM                                                                                                                    
CHAIR  FRENCH agreed,  and  then  set HB  305  aside for  further                                                               
consideration.                                                                                                                  
                                                                                                                                

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