Legislature(1997 - 1998)

01/29/1997 03:14 PM House RLS

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                 HOUSE RULES STANDING COMMITTEE                                
                        January 29, 1997                                       
                           3:14 p.m.                                           
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Representative Pete Kott, Chairman                                            
 Representative Irene Nicholia                                                 
 Representative Al Vezey                                                       
 Representative Gail Phillips                                                  
 Representative Brian Porter                                                   
 Representative Bill Williams                                                  
 Representative Kim Elton                                                      
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 All members present                                                           
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 Continuation of January 27, 1997, meeting:                                    
      Select Committee on Legislative Ethics                                   
      Decision H-96-02                                                         
                                                                               
 PREVIOUS ACTION                                                               
                                                                               
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 REPRESENTATIVE JERRY SANDERS                                                  
 Alaska State Legislature                                                      
 Capitol Building, Room 414                                                    
 Juneau, Alaska 99801                                                          
 Telephone:  (907) 465-4945                                                    
                                                                               
 TAMARA COOK, Director                                                         
 Legislative Legal and Research Services                                       
 Legislative Affairs Agency                                                    
 130 Seward Street, Suite 409                                                  
 Juneau, Alaska 99801-2105                                                     
                                                                               
 ACTION NARRATIVE                                                              
 TAPE 97-2, SIDE A                                                             
 Number 001                                                                    
                                                                               
 CHAIRMAN PETE KOTT called the House Rules Standing Committee to               
 order at 3:14 p.m.  All members were present.                                 
                                                                               
 CHAIRMAN PETE KOTT:  Before commencing, I want to thank everyone              
 for attending the first House Rules Committee meeting.  It may be             
 the last, but we'll see how that works.  The committee has been               
 charged with the responsibility of examining the decision and                 
 recommendations made by the Select Committee on Legislative Ethics            
 in the case H-96-02, otherwise known In Re Sanders.  Thereafter,            
 depending upon the results of this hearing, the committee will make           
 full recommendations to the House.  By way of background, on April            
 29, 1996, a complaint was filed with the Ethics Committee                     
 concerning Representative Sanders.  The committee, on September 23,           
 found probable cause to conclude that Representative Sanders, as a            
 result of a mailing, violated Alaska Statute 24.60.030(a)(2),                 
 Alaska Statue 24.60.030(a)(5) and Alaska Statute 24.60.030(b).                
 Representative Sanders was served with a copy of the charges.  He             
 also was served with a summons requiring him to answer the charges            
 within ten days.  Representative Sanders elect not to file an                 
 answer.  A hearing master was chosen on November 14 and November 15           
 a hearing was held before the House Subcommittee on Legislative               
 Ethics.  Representative Sanders, while represented by counsel,                
 elected to assert his rights under the Fifth Amendment to the                 
 United State Constitution.  On November 15, a written report was              
 issued by the House Subcommittee finding that Representative                  
 Sanders violated the mentioned three provisions of the Ethics Act.            
 The written opinion also made several recommendations concerning              
 sanctions.  This report was duly forwarded to the House where it              
 was considered on the House floor January 22, 1997.  The full House           
 elected, without objection, to forward the matter to the House                
 Rules Committee.  Consequently, the Ethics Committee findings and             
 recommendations are now before this committee for consideration.              
 At the conclusion of these proceedings, again, the Rules Committee            
 will submit a written report to the full House.  It is my goal to             
 conclude all the hearings by Monday of next week and to submit that           
 report required by this committee subsequent to that date - more              
 than likely toward the middle or end of next week.  Today, it's my            
 plan to illicit testimony from Representative Sanders concerning              
 what happened in the case.  Representative Sanders elected not to             
 testify before the House Ethics Committee, as I mentioned.  I plan            
 on giving him that opportunity at this particular time.  I've also            
 requested that personnel from the Ethics Committee be present and             
 testify and that more than likely will occur tomorrow evening.  In            
 addition to testimony, the Rules Committee has before it a copy of            
 the Ethics Committee's decision, the transcript of the proceedings            
 before the Ethics Committee and a copy of the exhibits admitted at            
 the Ethics Committee hearing, as well as copies of orders issued by           
 the hearing master.  Although this Rules Committee hearing is open            
 to the public for testimony it is my intent to have that testimony            
 by invitation only.  The core issue before the committee is, "Was             
 the Ethics Committee correct in its conclusions and are the                   
 recommended sanctions appropriate?"  Generalized policy questions             
 are not before the committee, except they might related to the                
 resolution of a specific case, and accordingly generalize public              
 input would be less than useful in this particular case.  That,               
 coupled with my desire to expeditiously resolve this long-running             
 issue, influenced my decision to limit testimony by invitation                
 only.  With that in mind, I would now like to invite Representative           
 Sanders up to the stand to give his version of what occurred.                 
 Jerry, please join us at the table.  Representative Elton.                    
                                                                               
 Number  381                                                                   
                                                                               
 REPRESENTATIVE KIM ELTON:  I mean I was prepared to make a motion,            
 but we may not need to do that.  I just have a question for the               
 Chair and then you can perhaps make up your mind.  Because of the             
 testimony before the Ethics Committee was given under oath, was               
 there any consideration on any witnesses that you call before here            
 having our testimony given on (indisc.--coughing) also?                       
                                                                               
 Number 409                                                                    
                                                                               
 CHAIRMAN KOTT:  Yes, there is that consideration.                             
                                                                               
 REPRESENTATIVE ELTON:  Has a decision been made?                              
                                                                               
 CHAIRMAN KOTT:  And the decision has been made and we will proceed            
 under that assumption that Representative Sanders will be under               
 oath.                                                                         
                                                                               
 REPRESENTATIVE ELTON:  Thanks Mr. Chairman.                                   
                                                                               
 Number 433                                                                    
                                                                               
 CHAIRMAN KOTT:  Jerry, if you would please raise your right hand              
 and do you swear to affirm that you will tell the whole truth, the            
 truth, the whole truth and nothing but the truth.                             
                                                                               
 Number 435                                                                    
                                                                               
 REPRESENTATIVE JERRY SANDERS:  I do.                                          
                                                                               
 CHAIRMAN KOTT:  Thank you.  Please proceed.                                   
                                                                               
 Number 463                                                                    
                                                                               
 REPRESENTATIVE SANDERS:  Thank you very much Mr. Chairman and                 
 committee members.  I know we have a reception at 6:00 p.m. so I'll           
 try to get through this stack of papers by 6:00 for you.  First,              
 let me think you and the committee and the entire House for                   
 allowing me to present my position and allow -- please allow me to            
 apologize for the time you have been forced to take out of your               
 busy schedules to address this decision of the Ethics Committee.              
 Already, the committee has spent over $24,000 investigating an                
 alleged misuse of $72.  It seems a little out of proportion, still,           
 there is an important issue of law that I hope you will address and           
 I ask for your indulgence to consider this decision in two parts.             
 First, I will focus on the actual merits of the case, and explain             
 how the committee unfortunately misinterpreted the statute it was             
 trying to apply.  Second, I will address the dubious procedures               
 which the committee used, through no fault of its own, but rather             
 through the fault of this statute.  This discussion will also                 
 include some additional facts which will enable you to assess who             
 cooperated and to what extent in the process.  You may be                     
 surprised.  On the first point, Mr. Chairman, I ask that you                  
 discard the chaff and take a close look at the kernel of the                  
 situation.  The issue is not my attitude towards certain members of           
 the Select Committee on Legislative Ethics.  The issue is not                 
 disagreements I have had with the committee in the past.  The issue           
 is very straightforward, Mr. Chairman:  Did I violate the                     
 Legislative Ethics Act when I authorized a particular letter to be            
 sent to some of my constituents?  I have attached a copy of my                
 letter to your paperwork and I have more copies here is anyone                
 would like to see them.  And with your permission, Mr. Chairman, I            
 would like to read this letter into the record.                               
                                                                               
 CHAIRMAN KOTT:  Please proceed.                                               
                                                                               
 REPRESENTATIVE SANDERS:                                                       
                                                                               
     March 4, 1996                                                             
                                                                               
     Dear (first name),                                                        
                                                                               
      I would like to take this opportunity to thank you for your              
      participation in the first presidential straw poll to be held            
      in Alaska.  Not only have we broken new ground historically,             
      politically we have gained prestige on the national level.               
                                                                               
      It was exciting to learn that District 19's participation was            
      among the strongest areas to go out and cast a vote for on a             
      presidential candidate.  With the inclement whether to deal              
      with, I really appreciate the interest shown by my fellow                
      Republicans.                                                             
                                                                               
      Seeing a lot of you in the halls of the polling station within           
      my district was indeed a pleasure.  If I didn't get a chance             
      to talk with you, please accept my apology.                              
                                                                               
      I have always held in high regard those people who will go               
      that `extra mile' to do what is needed.  Taking the time out             
      of your busy schedule to fulfill your civic duty is greatly              
      appreciated.                                                             
                                                                               
      With warm regard, I remain Representative Jerry Sanders                  
                                                                               
 Number 667                                                                    
                                                                               
 CHAIRMAN KOTT:  Excuse me, do members of the committee have that?             
                                                                               
 REPRESENTATIVE SANDERS:  If you don't have it...                              
                                                                               
 CHAIRMAN KOTT:  Letter?                                                       
                                                                               
 REPRESENTATIVE SANDERS:  We have it here to pass out.  Can we pass            
 it out?                                                                       
                                                                               
 CHAIRMAN KOTT:  It appears everyone has it.                                   
                                                                               
 Number 682                                                                    
                                                                               
 REPRESENTATIVE SANDERS:  This, Mr. Chairman, is the $24,000 letter.           
 This is the letter that's branded me a criminal and held me up to             
 ridicule and shame for the past four months.  The letter went to              
 about 240 people and cost about $72.  I was not running for office,           
 I had not declared a candidacy.  I had not even decided if I were             
 going to run again, or for what office if I did.  The letter                  
 doesn't urge anyone to contribute money, it doesn't urge anyone to            
 go vote, it doesn't urge anyone to vote for me, it doesn't urge               
 anyone to vote for any local, state or national candidate.  My                
 letter simply thanks a few hundred people in my district who took             
 the time to do their civic duty and participate in the presidential           
 election process.  People whom - within whom I took a great deal of           
 pride.  I was not concerned for whom thy voted, but the fact they             
 had participated.  I also felt that positive recognition and                  
 acknowledgment from their legislator would perhaps encourage them             
 to further civic and community involvement.  Mr. Chairman, this is            
 my crime - this letter.  The Ethics Committee concluded that this             
 short letter violated AS 24.60.30.  The problem is that the                   
 committee narrowed its application to exclude the letter that I               
 wrote and that we, as legislators write, every day.  The statute              
 states that we may not use public funds, facilities, and so forth             
 for a nongovernmental purpose or for the private benefit of a                 
 legislator.  The statute also has a nominal value exception, which            
 I will talk about in a moment.  The key words here are                        
 "nongovernmental purpose."  That's what the statute says.  If your            
 letter has a governmental purpose, it's okay.  If it has a                    
 nongovernmental purpose, it's not okay.  Instead of using the broad           
 term "governmental purpose," the committee instead substituted a              
 much narrower definition, namely, "legislative purpose."  In other            
 words, the committee believed that if the letter had a legislative            
 purpose which term is not found anywhere in the statute, it's okay.           
 If it has no legislative purpose, it's not okay.  Let me read from            
 their decision in quotes:                                                     
                                                                               
      "This letter does not have a legislative purpose.  It concerns           
      a function of a political party on a national level, the                 
      effort to influence the choice of the Republican nominee for             
      president.  It was sent to active members of Representative              
      Sander's political party, in his district, in a year he was              
      running for election."                                                   
                                                                               
 That's Decision II 96-02, page 4.  I take two exceptions there.  At           
 the time this letter was sent, I was not running for office.  It's            
 true in that year I ran for office, but not when I sent this                  
 letter.  I was -- the election for president was over, the votes              
 were tallied and the decision had been announced.  How could I have           
 been trying to influence this election?  The Select Committee went            
 onto conclude that legislators may use public funds, facilities and           
 staff to communicate with constituents if that communication has a            
 connection to a legislative purpose.  The letter has a political,             
 not legislative purpose.  That's what the committee found.  I                 
 respectfully suggest to the House Rules Committee that the                    
 conclusion of the Ethics Committee is simply an error.  For                   
 example, AS 24.60.030 says absolutely nothing about "political                
 purposes" nor does the statute refer to "legislative purpose."                
 Those are not the standards established by the law.  At this time             
 I would like to show you another exhibit if we could pass it out,             
 Exhibit B, from the Legislative Ethics Manual.                                
                                                                               
 Number 973                                                                    
                                                                               
 CHAIRMAN KOTT:  Would you please give it to Mr. Dozier.  Let the              
 record reflect that Exhibit B is taken from the Standards of                  
 Conduct Handbook prepared by the Select Committee on Legislative              
 Ethics and deals with Alaska Statute 24.60.030 (c).                           
                                                                               
 Number 996                                                                    
                                                                               
 REPRESENTATIVE SANDERS:                                                       
                                                                               
 Number 996                                                                    
                                                                               
 REPRESENTATIVE SANDERS:  Okay, Mr. Chairman and members of the                
 committee, I ask you if you were going to send out a mass mailing             
 and you had any question of whether or not it was ethical, where              
 would you go to find out?  Would you not go to the Ethics Manual to           
 page 13 where it says "Mass Mailings?"  And would you not read that           
 statute, and I don't have a copy of it to read it to you - to read            
 it into the record if I could.  Thank you very much Representative            
 Elton.  It says:  "State money may not be used to print or                    
 distribute a mass mailing from or about a legislator who is a                 
 candidate for state office, during the period beginning 90 days               
 before the primary and ending the day after the general or special            
 election."  I was not a candidate, this was more than six months              
 before the primary.  I didn't see any problem.  "However, a                   
 legislator's personal office allowance may be used for this mass              
 mailings at any time."  There is nothing there that made me think             
 I couldn't use my office account for this mass mailing.  Why the              
 Select Committee chooses to contrast the narrow the concept of                
 "legislative purpose" with "political purpose" is a mystery to me.            
 AS 24.60.030(a)(2) refers only to the broader term of                         
 "nongovernmental purpose," not some sort of tension between                   
 "legislative" and "political" purposes.  The Select Committee                 
 failed to properly apply the clear language of the statute.  The              
 issue is whether my March 4, 1996, letter served a governmental               
 purpose or not, and whether the letter was for the private benefit            
 of a legislator.  Those are the standards the law requires.  So the           
 statute allowed for a much broader range of letters that could be             
 written under the "governmental purpose" exception.  The committee,           
 however, used a much narrower term of "legislative purpose," which            
 term never appears in the statute, and which would make an ethics             
 violation out of just about every letter that any of us have ever             
 written to a constituent.  Mr. Chairman, if you are confident that            
 every letter you have ever written as a legislator could withstand            
 this sort of scrutiny, then you have no option, you must impose the           
 sanctions before you.  If you're confident that we could go back to           
 each of our offices and pull out a letter at random, and it would             
 pass this new test that the Ethics Committee has imposed, then                
 there's not much more to discuss.  The statute also forbids letters           
 for the "private benefit" of a legislator.  I think it's clear that           
 the term "private benefit" refers to financial benefit as in fund             
 raising and not so-called "campaign goodwill" the Select Committee            
 seems to have adopted as their definition.  If my letter is the new           
 standard for how we communicate with our constituents, then we have           
 a whole new set of problems.  Let me list a few of em for ya.  How            
 many legislators send congratulatory letters to seniors graduating            
 from high school?  Do they fit under this?  How many legislators              
 routinely use the convenient labels produced by the University of             
 Alaska to congratulate graduating Alaskans?  Can we do this?  How             
 many legislators would send a letter thanking students for                    
 volunteering their time during high school civics class activities?           
 How many times, Mr. Chairman, has the body taken up resolutions in            
 memorium or praising the work or civic dedication in our community?           
 Is that a legislative purpose?  How many times have we addressed              
 the president of the United States and Congress on issues of                  
 concern to Alaskans?  How many of us will attend the joint session            
 where our U.S. senators will address the legislature?  How many               
 Democratic candidates now serving in the legislature flew back to             
 Washington, D.C., at state expense, to attend the inaugural of                
 President Bill Clinton?  Was there a governmental purpose in flying           
 back to a Democratic Party celebration on the reelection of a                 
 Democrat president and his inaugural?  These are questions that I             
 hope you'll think about.  In the future, can any legislator thank             
 volunteers for cleaning up Campbell Creek or for forming a                    
 neighborhood watch?  If the answer to this question is, "yes, they            
 can," then I have another question.  What if the organizers of the            
 effort were the Young Republicans?  Can you now?  What if they were           
 the Bartlett Democratic Club?  Can you now?  On the first point,              
 governmental purpose, I suggest to the Rules Committee that sending           
 a letter to 240 people thanking them for participating in a                   
 presidential election process clearly has several governmental                
 purposes.  Not the least of which is encouraging people in their              
 civic duty to participate and to enhance Alaskan issues in the                
 minds of candidates for president of the United States.  In                   
 reaching this conclusion I ask the Rules Committee to consider only           
 this letter and the statute in reaching a conclusion that the                 
 committee simply did not correctly apply the law with respect to              
 this letter.  There was no violation of AS 24.60.030.  So in terms            
 of the actual merits of the charges against me, and really against            
 any one of us who has a letter like this in their office, the kind            
 of letter we send out every day to our constituents, on the merits            
 of the case, I (indisc.) is clear no violation occurred.  The                 
 Ethics Committee misapplied or misinterpreted the law, and if you             
 follow its recommendation, you will chill the warm relationship we            
 are to have with our constituents.  If we say we cannot thank this            
 particular group of people, then we can't thank anyone.  We might             
 as well tie our hands behind us and walk on egg shells every time             
 we write a letter to anyone, for fear we could be violating the               
 ethics statute.  Enough about the merits of the case.  I'd like to            
 now turn to the second point, and that is the procedures used by              
 the committee. the procedures which have the potential for the                
 greatest mischief.  At the outset, I want you all to know that I              
 have no agenda here, and no intention of attacking anyone.  I'm not           
 here to put anyone on trial, or second guess anyone's motives,                
 although certain aspects of this case, for example, the timing,               
 seems suspicious.  I also wish to bring to light, some very serious           
 flaws I see in the procedures under the statute.  If this statute             
 is perfect, if it needs no fine tuning, then let's not worry about            
 what I am about to tell you.  By the way, I think it would be the             
 first time in history that a legislature has ever produced a                  
 perfect statute.  But if we're like other legislatures, maybe the             
 statute wasn't perfect.  Maybe it needs some work.  This seems                
 especially true since not all states have an Ethics Committee, and            
 those that do haven't had them long.  Ethics committees are fairly            
 new and very powerful animals because of the premium we as                    
 legislators and our constituents place on ethics.  No one,                    
 especially a legislator, wants to be on the wrong end of an ethics            
 violation.  To make this more forceful, I have one more exhibit I'd           
 like to pass out.  This is -- and I won't read it because it takes            
 too much time, but this is an editorial from the Juneau Empire                
 which strikes at the very core of our dilemma and anyone who hasn't           
 read it I hope they will.                                                     
                                                                               
 Number 1452                                                                   
                                                                               
 CHAIRMAN KOTT:  Let the record reflect that what is being passed              
 out is in fact from the Juneau Empire.  It's offered as Exhibit C,            
 dated January 23, 1997.                                                       
                                                                               
 Number 1475                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  This article, Mr. Chairman, points out               
 precisely why we must be so careful to make sure the process is               
 fair.  This is why the standard of proof is so high, clear and                
 convincing evidence, higher than probably cause or preponderance of           
 the evidence.  Because the accusation of ethics violation carries             
 with it so much public condemnation and outrage, we must be sure              
 that accusations are not made lightly, that accusers are held to              
 the strictest scrutiny and highest burden of proof, and that the              
 committee grounds its findings in the most reliable evidence.                 
 Unfortunately, this was not the case here, nor is there any                   
 guarantee that this won't happen again.  I suggest that we approach           
 the statute the way a mechanic approaches a car that's running a              
 little rough.  The roughest part of the statute that we need to fix           
 is the fact that the same person that accuses is also the jury and            
 the judge.  In other words, the committee not only charges a                  
 person, but then they also get to rule on the merits of their own             
 charges.  At that point, it's a foregone conclusion.  Why would               
 they charge me if I wasn't guilty?  No where in our justice system            
 do we have a similar procedure.  In fact, a jury of our peers,                
 separate from the judge, was important enough to our founding                 
 fathers to put in the Bill of Rights.  How can we trust any                   
 procedure in which the same person who accuses also gets to have              
 the final say about whether they are right.  Imagine the inherent             
 unfairness if one of two political parties had the power by statute           
 to win every political argument.  Imagine if a certain segment of             
 our society had the final say in any lawsuit that it filed.  The              
 other problem, Mr. Chairman, is timing.  Even the Anchorage Daily             
 News has a moratorium of letters - moratorium on letters to the               
 editor submitted on the eve of elections.  In this way, the news              
 attempts to avoid last minute smear campaigns which do no allow for           
 rebuttal.  Similarly here, where the Ethics Committee received the            
 complaint in April, but took no action on it until the eve of the             
 election, we have a problem.  Like a mechanic, we need to fix the             
 statute to make sure that neither party can take unfair political             
 advantage.  Let me show you what I mean.  Here, Mr. Chairman, I               
 have the actual papers that were shuffled back and forth between my           
 office and the Ethics Committee during the months that led up to              
 this and I have them sorted by the month.  I want to show you.                
 This is in the month of April when it was filed.  There was nothing           
 in May.  There was no contact in June.  This was the contact in the           
 month of July.  This is the contact in the month of August.  This             
 is the contact in the month of September.  October, the month                 
 before the election.  Mr. Chairman, in the 30 days before this                
 election we had contacts every day.  In the 30 days before this               
 election, I never knocked on one door.  I spent all my time, every            
 day I was with my attorney or with these people or with -- going to           
 court.  If I had not had friends that supported me financially so             
 that I could conduct a media campaign I would not be sitting here             
 before you today and this would be a mute point.  There would be no           
 problem.  This is what we did the 30 days before the election and             
 this is what we did when we had the hearings after the election.              
 Now as far as cooperation with the Select Committee, please allow             
 me to humbly request that the Rules Committee go into executive               
 session under Rule 22, subsection (b)(2) in the Uniform Rules.                
                                                                               
 Number 1689                                                                   
                                                                               
 CHAIRMAN KOTT:  Take a brief at ease.                                         
                                                                               
 [The House Rules Committee took an at ease at 3:41 p.m.  Chairman             
 Kott called the meeting back to order at 3:42 p.m.]                           
                                                                               
 CHAIRMAN KOTT:  Would you again repeat the rule.                              
                                                                               
 REPRESENTATIVE SANDERS:  Rule 22, subsection (b)-2.                           
                                                                               
 Number 1705                                                                   
                                                                               
 CHAIRMAN KOTT:  For the record, Rule 22 dealing with open executive           
 sessions - I'll just read it for the benefit of everyone here:                
 "All meetings of a legislative body are open to legislators,                  
 whether or not they are members of the particular legislative body            
 that is meeting and to the general public except as provided in (b)           
 of this rule.  A legislative body may call an executive session at            
 which members of the general public may be excluded for the                   
 following reasons:".                                                          
                                                                               
 CHAIRMAN KOTT:  Representative Sanders has cited subsection (2)               
 which goes on to say:  "Discussion of subjects that tend to                   
 prejudice the reputation and character of a person".                          
                                                                               
 Number 1744                                                                   
                                                                               
 CHAIRMAN KOTT:  We'll take a brief at ease until I get a reading on           
 this.  So we'll take an at east for about five minutes.                       
                                                                               
 [The House Rules Committee took an at ease at 3:43 p.m.  Chairman             
 Kott called the meeting back to order at 3:55 p.m.]                           
                                                                               
 CHAIRMAN KOTT:  Tam, please come up to the table and state your               
 name and affiliation for the record and I'll tell you exactly what            
 the request is.                                                               
                                                                               
 Number 1763                                                                   
                                                                               
 TAMARA COOK, DIRECTOR, LEGISLATIVE LEGAL AND RESEARCH SERVICE,                
 LEGISLATIVE AFFAIRS AGENCY:  Mr. Chairman, for the record, I'm                
 Tamara Cook and I work for the Legislative Affairs Agency, Legal              
 Services Division.                                                            
                                                                               
 Number 1765                                                                   
                                                                               
 CHAIRMAN KOTT:  Thank you.  We are addressing the ethics complaint            
 against Representative Sanders and in accordance with Rule 22(b)(2)           
 he has requested that we go into executive session.  Can you                  
 provide some commentary on our authority and the requirement of the           
 executive session?                                                            
                                                                               
 Number 1784                                                                   
                                                                               
 MS. COOK:  Yeah, the Uniform Rules do give the committee to go into           
 executive session, but only for the three purposes that are stated            
 in the rule.  Now the open meetings law has a little bit different            
 requirements for executive session, but the Open Meetings Act, if             
 I can remind members of the committee, through the Chair, does not            
 apply to the legislature.  So all you have basically is the rule              
 before you.  When the legislative - legislative committee does go             
 into executive session, it cannot keep other members of the                   
 legislature out, but other than that it can request that any                  
 nonessential person or staff person, member of the public leave the           
 room.  If we are on teleconference, obviously you need to direct              
 that the - the person in charge of the teleconference secure the              
 other locations while you are in executive session.  You can go               
 into executive session for the purposes for discussing either of              
 the three items that are listed in the rule, but there is no                  
 ability to take action in executive session.  Generally what occurs           
 is that a committee who goes into executive session will direct               
 that the tape be turned off at that point and will request that the           
 room be vacated except for the people that the committee                      
 specifically requests attend the executive session, and they can              
 include necessary staff people.  Is there anything else?  Does that           
 clarify the matter?                                                           
                                                                               
 Number 1855                                                                   
                                                                               
 CHAIRMAN KOTT:  You bet.  Are there any requirements to retain or             
 keep notes during the executive session?                                      
                                                                               
 Number 1862                                                                   
                                                                               
 MS. COOK:  I have never heard of notes being kept during an                   
 executive session.  As a matter of fact there is one court case out           
 there.  It does not involve a situation involving a legislature, it           
 involved a hearing on a disciplinary action by I believe the                  
 University of Alaska.  But one of the Executive Branch agencies in            
 which the court pointed out that while going into a executive                 
 session in this case was probably proper, any notes generated                 
 during the executive session were still public records.  And so I             
 think -- or any other materials presented at, you know, on paper at           
 an executive session might be public records.  So far as I know,              
 the legislature does not generally take any notes or create minutes           
 or - or written history of what occurs during an executive session.           
                                                                               
 Number 1901                                                                   
                                                                               
 CHAIRMAN KOTT:  Can you comment briefly on the rules of                       
 confidentiality?                                                              
                                                                               
 Number 1908                                                                   
                                                                               
 MS. COOK:  Anyone who is invited to participate in an executive               
 session is supposed to maintain the confidentiality of what occurs            
 during that session just as members of the legislature are.  That             
 would apply to the staff members.                                             
                                                                               
 CHAIRMAN KOTT:  Okay, thank you.  Representative Porter.                      
                                                                               
 REPRESENTATIVE BRIAN PORTER:  No I don't have a question.  If --              
 when -- anytime you're ready for a motion...                                  
                                                                               
 CHAIRMAN KOTT:  Representative Elton                                          
                                                                               
 Number 1920                                                                   
                                                                               
 REPRESENTATIVE ELTON:  Thanks Mr. Chair.  Through the Chair, Tam              
 I'm assuming that this rule applies also to the Legislative Ethics            
 Committee - that they have the same latitudes that the Rules                  
 Committee has.                                                                
                                                                               
 Number 1930                                                                   
                                                                               
 MS. COOK:  Oh, that's a very large assumption.  Through the Chair,            
 I can't possible speak for the Select Committee on Legislative                
 Ethics.  What we do know about that is that there is a provision in           
 24.60, the Ethics Act, which says that the legislature is obligated           
 to abide by open meetings principles.  And that duty is contained             
 within the Ethics Act and so I presume a violation of the open                
 meetings principles could be bought to the attention of the Ethics            
 Committee and we can't, for the life of us, know how they would               
 treat any factual situation.  As you're well aware, there are no              
 open meetings guidelines in effect.  The Ethics Committee doesn't             
 have any in effect.  I presume they still have jurisdiction over an           
 open meetings question.  I cannot say that they would chose to                
 presume that something that complies with the Uniform Rules meets             
 the open meetings principles.                                                 
                                                                               
 REPRESENTATIVE ELTON:  If I could follow up.                                  
                                                                               
 CHAIRMAN KOTT:  Representative Elton.                                         
                                                                               
 Number 1971                                                                   
                                                                               
 REPRESENTATIVE ELTON:  I might be a little bit confused, but I                
 guess I assumed that since the Legislative Ethics Committee is a              
 committee of the legislature that the same rules would apply.  I'm            
 hearing you say they don't.                                                   
                                                                               
 MS. COOK:  I think that's a fairly large assumption.  The Ethics              
 Committee is charged with - with - with considering complaints that           
 may be filed regarding whether or not the legislature has violated            
 something that is very vaguely called open meetings principles and            
 we have no opinions that have been released about their                       
 interpretation about what those principles might consist of.  The             
 only thing that we do have that I know of are the proposed                    
 guidelines - the first proposed guidelines that they issued and               
 their revisions.  In looking at those in general, I can say that              
 their guidelines did not necessarily comply with what the Uniform             
 Rules set out.                                                                
                                                                               
 CHAIRMAN KOTT:  Representative Porter.                                        
                                                                               
 Number 2007                                                                   
                                                                               
 REPRESENTATIVE PORTER:  I may not -- I may be misinterpreting your            
 question, but are you asking, "Can the Ethics Committee, during               
 their procedures, go in to executive session?"                                
                                                                               
 Number 2014                                                                   
                                                                               
 REPRESENTATIVE ELTON:  Yeah.  I guess what I was trying to                    
 establish is if the avenue available to the Rules Committee would             
 have also have been available to the member when he appli -- when             
 he sat before the Ethics Committee.                                           
                                                                               
 Number 2025                                                                   
                                                                               
 MS. COOK:  That's a different question.  They have their own                  
 statute and they don't -- the rules do not apply to them at all.              
 They have their own statute that is quite specific about the                  
 process that they undergo - what part of that process is to be done           
 in a confidential basis and at what point the hearing becomes                 
 public hearing.  They have to abide by their statute.  It's                   
 entirely different.  I'm sorry I misunderstood.                               
                                                                               
 REPRESENTATIVE PORTER:  Mr. Chairman.                                         
                                                                               
 CHAIRMAN KOTT:  Representative Porter.                                        
                                                                               
 Number 2040                                                                   
                                                                               
 REPRESENTATIVE PORTER:  Perhaps be helpful to the point.  During my           
 time on the Ethics Committee, the Ethics Committee considered                 
 guidelines for open meetings and within that consideration, they              
 recognized a provision for the standard reasons for executive                 
 session.                                                                      
                                                                               
 Number 2059                                                                   
                                                                               
 CHAIRMAN KOTT:  Clarify.  Further questions for Ms. Cook?  Thank              
 you, Tam, for your assistance.  We need a motion.  Representative             
 Porter.                                                                       
                                                                               
 REPRESENTATIVE PORTER:  If I could have the book.                             
                                                                               
 UNIDENTIFIED SPEAKER (RALPH):  Excuse me sir, are you going to --             
 I've made that request.  Are you going to read that in to the                 
 record at all?  (Indisc.).                                                    
                                                                               
 REPRESENTATIVE PORTER:  Mr. Chairman.                                         
                                                                               
 CHAIRMAN KOTT:  Excuse me.                                                    
                                                                               
 REPRESENTATIVE PORTER:  I think I have the floor.                             
                                                                               
 Number 2000                                                                   
                                                                               
 CHAIRMAN KOTT:  There was a request to, if we enter into executive            
 session, to take...                                                           
                                                                               
 UNIDENTIFIED SPEAKER (RALPH):  The initial request was to delay               
 while we try to contact a lawyer.                                             
                                                                               
 CHAIRMAN KOTT:  There has been two requests.  One is to delay                 
 entering into an executive session and two, if we enter into                  
 executive session to take comprehensive notes.  Those have been               
 identified and we have addressed em.  Representative Porter.                  
                                                                               
 2099                                                                          
                                                                               
 REPRESENTATIVE PORTER:  To the two request, one, I think it's                 
 extremely clear that we have the authority to go into executive               
 session.  Two, as I think Ms. Cook just provided, if we were to               
 take comprehensive notes they probably -- they may be public                  
 documents then and would violate the whole idea of going into a               
 executive session.  So I would recommend, one, we go into                     
 executive session immediately.  Everybody is interested in getting            
 this thing continue - continued through and disposed of.  Two, that           
 we not take notes for the obvious reason that we don't want that              
 information to be public unless we deem that it was improperly done           
 under the order.  With that in mind then, I would move that the               
 Rules Committee go into executive session pursuant to Rule 22(a)(2)           
 to discuss subjects that might tend to prejudice the reputation or            
 character of a person.                                                        
                                                                               
 Number 2141                                                                   
                                                                               
 CHAIRMAN KOTT:  Okay, there is a motion to enter into executive               
 session.  Is there objection?                                                 
                                                                               
 Number 2145                                                                   
                                                                               
 REPRESENTATIVE AL VEZEY:  Object.                                             
                                                                               
 CHAIRMAN KOTT:  There is objection.  Do you want to speak to your             
 objection Representative Vezey?                                               
                                                                               
 REPRESENTATIVE VEZEY:  As I understand the rule we're (indisc.) we            
 have the option of going in.  I don't think it's mandatory.  I                
 don't interpret the rule that way and I think that the - the                  
 individual who reputation is being impugned who is the only person            
 who would really have the right to demand it my opinion and it's a            
 very humble opinion cause it's subject to a lot interpretation.  I            
 think (indisc.) we have the option of going into executive session,           
 there is no question about that.  I don't believe it's mandatory.             
                                                                               
 CHAIRMAN KOTT:  Representative Elton.                                         
                                                                               
 Number 2173                                                                   
                                                                               
 REPRESENTATIVE ELTON:  Mr. Chair, I mean I tend to agree with the             
 previous speaker.  I guess -- I just say I'm somewhat uncomfortable           
 that we're not delaying a decision it it -- on whether to go in               
 subject to other interest parties having access to their attorneys            
 in the same way we have.  So I'm uncomfortable.  I don't think that           
 (indisc.) objections are going to prevail here.                               
                                                                               
 CHAIRMAN KOTT:  Are there further objections?  Committee Secretary,           
 please call the roll.                                                         
                                                                               
 Number 2200                                                                   
                                                                               
 CATHY WOOD, COMMITTEE SECRETARY, HOUSE RECORDS, ALASKA STATE                  
 LEGISLATURE:  Representative Vezey.                                           
                                                                               
 REPRESENTATIVE VEZEY:  No.                                                    
                                                                               
 MS. WOOD:  Representative Phillips.                                           
                                                                               
 REPRESENTATIVE GAIL PHILLIPS:  Yes.                                           
 MS. WOOD:  Representative Porter.                                             
                                                                               
 REPRESENTATIVE PORTER:  Yes.                                                  
                                                                               
 MS. WOOD:  Representative Williams.                                           
                                                                               
 REPRESENTATIVE BILL WILLIAMS:  Yes.                                           
                                                                               
 MS. WOOD:  Representative Elton.                                              
                                                                               
 REPRESENTATIVE ELTON:  No.                                                    
                                                                               
 MS. WOOD:  Representative Nicholia.                                           
                                                                               
 REPRESENTATIVE IRENE NICHOLIA:  No.                                           
                                                                               
 MS. WOOD:  Chairman Kott.                                                     
                                                                               
 CHAIRMAN KOTT:  Yes.  The motion passes.  We will enter into                  
 executive session in order to determine whether Rule 22(b)(2)                 
 applies.  If it does apply, we will continue into executive                   
 session.  If it does not apply once we are in executive session               
 make that determination and discussion that have taken place will             
 be made public and we will continue to proceed on the record in an            
 open manner.  At this time I would ask that all cameras be turned             
 off and everyone except for members of the legislature and staff,             
 Mr. Dozier remain.                                                            
                                                                               
 REPRESENTATIVE SANDERS:  Mr. Chairman.                                        
                                                                               
 CHAIRMAN KOTT:  Representative Sanders.                                       
                                                                               
 REPRESENTATIVE SANDERS:  May I ask that my attorney be allowed to             
 remain in the room?                                                           
                                                                               
 CHAIRMAN KOTT:  No.                                                           
                                                                               
 REPRESENTATIVE SANDERS:  Not -- it's okay.                                    
                                                                               
 [The House Rules Committee went into executive session at 4:07 p.m.           
 Chairman Kott called the meeting back to order at 4:52 p.m.]                  
                                                                               
 TAPE 97-2, SIDE B                                                             
 Number 001                                                                    
                                                                               
 CHAIRMAN KOTT:  We are back out of executive session.  During the             
 lengthy discussion when we were in executive session.  It was                 
 determined that Rule 22(b)(2) did not apply in the sense that there           
 would be no additional information that was not already public.  So           
 in this light, we will proceed in an open fashion.  Representative            
 Sanders.                                                                      
                                                                               
 Number 050                                                                    
                                                                               
 REPRESENTATIVE SANDERS:  Thank you, Mr. Chairman.  I -- before I go           
 on with my testimony, I would like to say that the reason I called            
 for executive session is because the things that I am going to                
 discuss, while they may be facts, they may not necessarily add up             
 to what I believe they add up to and I did not want to put these              
 people on trial in the newspaper the way I've been put on trial in            
 the newspaper.  I wanted to discuss these things and if they were             
 nothing then nobody knew what was discussed.                                  
                                                                               
 Number 113                                                                    
                                                                               
 CHAIRMAN KOTT:  And I appreciate, as I think the rest of committee            
 does, your motives.                                                           
                                                                               
 Number 127                                                                    
                                                                               
 REPRESENTATIVE SANDERS:  I -- leading in, I want to point out that            
 these set of facts made an impression upon me that caused me not to           
 cooperate with the Ethics Committee.  Just as a great number of               
 people in the 30s saw a set of facts coming up on them when the               
 Nazis took over Germany and they chose not to cooperate and not to            
 walk into the ovens and a lot of people didn't see those facts and            
 a lot of people walked right on in.  I felt that I saw facts that             
 I had to turn and run, that I could not deal with this, that it was           
 overwhelming and I will begin to line them out.  To begin with, the           
 Ethics Committee refused to provide us with discovery over and over           
 and over.  This may show you that it wasn't me who failed to                  
 cooperate.  The committee absolutely wouldn't answer any discovery            
 requests.  My accusers wouldn't answer discovery requests.  In                
 addition, they had the burden of proof.  I was not inclined to                
 cooperate unless they were cooperating with me.  I was not inclined           
 to participate in a process where my accuser was guaranteed to win.           
 It's like being asked by a lynch mob to cooperate by putting a                
 noose around my neck.  The Ethics Committee did not even call the             
 complainant Mike Miller to the meeting.  The chair of the Select              
 Committee Ms. Margie MacNeille is married to another -- she is an             
 attorney and is married to another attorney, Julian Mason.  Mr.               
 Mason and his firm have - had received under $300 from the state of           
 Alaska in the three years before his wife became chair of the                 
 Select Committee.  Since her appointment, the Department of Law of            
 the state of Alaska has sent $685,212 to Mr. Mason's firm.  Most of           
 -- not all of this huge amount was by limited competition contract.           
 Mr. Chairman, on a five day week, this is over $1,000 a day.  If              
 you're wife were receiving $1,000 from the Administration and I was           
 on the opposite side of politics, do you think you could stand up             
 under this and let me off of anything?  Please let me hand out the            
 checks so that everybody sees them.  I'm not saying there is a                
 crime here.  I'm saying this scared me.  I did not want to deal               
 with someone who had this kind of obligation to the Administration.           
 That's all I'm saying.  Just using this in my defense.  Under the             
 direction of Ms. MacNeille, the Select Committee which received the           
 complaint in April of 96 didn't get around to vigorously and                  
 publicly pursuing the allegation until September of 96.  Now what             
 sort of impression is that timing supposed to make on me as a                 
 candidate for election to the State House of Representatives?  When           
 we tried to take this to the judiciary to get some kind of relief,            
 Superior Court Judge Sig Murphy indicated he suspected the                    
 motivations of the Select Committee in response to my motion to               
 delay investigation until after the election.  Ms. MacNeille asked            
 for another judge.  Recent Knowles appointee, Eric Sanders, the ink           
 still wet on his appointment papers and from all the checks he had            
 sent over the years to the Democrats bags off.  He says they have             
 no authority in this matter.  I am sitting there -- say if I were             
 up against the IRS he would have authority, if I were fighting the            
 CIA he would have authority, but over the Ethics Committee he has             
 no authority.  My question is who on the face of the earth can help           
 me fight this?  I am overwhelmed.                                             
                                                                               
 Number 504                                                                    
                                                                               
 CHAIRMAN KOTT:  Excuse me Representative Sanders.  For the record,            
 would the committee members label this last handout that's titled             
 "State Warrants" as Exhibit D.                                                
                                                                               
 REPRESENTATIVE SANDERS:  Thank you Mr. Chairman.                              
                                                                               
 CHAIRMAN KOTT:  Please proceed.                                               
                                                                               
 REPRESENTATIVE SANDERS:  When it became apparent that me and my               
 attorney and the committee and their attorney were having problems            
 agreeing on discovery and agreeing on times and things, Margie                
 MacNeille took it upon herself to appoint a special master without            
 our input.  She appointed Mr. Michael White, who in the two or                
 three weeks prior to his day of appointment and prior to the date             
 he received a $10,000 contract paid for by Alaskan taxpayers, had             
 contributed $4,000 to democratic candidates.  Am I supposed to                
 believe that this man is going to rule fairly in my situation?                
 Everyone knows the I'm a conservative Republican.  Everyone knows             
 that this is politics.  You can see it.  I could see it.  I beg               
 your pardon.  I'm not telling you what you can see.  In 93, I led             
 the opposition to Ms. MacNeille's appointment to the Legislative              
 Ethics Committee.  She has been after me ever since.  Her                     
 incredible conflict of interest with her husband receiving                    
 contracts for over a half a million dollars from Bruce Botelho and            
 now Tony Knowles does not give me much confidence in this committee           
 or in my getting a fair hearing.  Ms. MacNeille should be asked to            
 resign from the Select Committee on Legislative Ethics and                    
 reprimanded for not resigning three years ago.  If this system is             
 going to work the members of the Select Committee must common                 
 sense, avoid such obvious conflicts and attempt to deal with                  
 complaints in such a manner that the 90 days before an election we            
 don't become their special target of the year.  Even if the Select            
 Committee actually believed my March 4th letter violated AS                   
 24.60.030, it is obvious that very little harm was done to the law.           
 The committee's investigation and recommendations go way beyond               
 anything called by a letter to 240 people sent from my office                 
 account at a cost of $72 for postage.  I would not cooperate with             
 the Select Committee because I believe the Select Committee's                 
 actions are corrupted by the conflict of interest and perennial               
 revenge interests of its chair Margie MacNeille.  I regret that you           
 members of the Rules Committee must spend your time on this issue,            
 but I am left with no recourse to appeal to your judgement and ask            
 that you direct some action to eliminate the conflict of interest             
 that exists within the Ethics Committee.  Finally, since there is             
 no violation on AS 24.60.030, none of the sanctions suggested by              
 the Select Committee are appropriate.  The bottom line, Mr.                   
 Chairman, is that we have an alleged violation filed by a former              
 political opponent of mine, an unfair process and a biased                    
 committee who has made a crime out of our political differences.              
 I must ask all of you to keep in mind that if this Ethics Committee           
 can spend $24,000 to do this to me over a $72 technical violation,            
 they can spend any amount of money to do anything they wish to any            
 one of you when they choose to attack.  Thank you very much for               
 your time.  I'll be happy to answer questions.  That concludes my             
 testimony.  Anyone who would like a copy, they're welcome to it.              
                                                                               
 Number 793                                                                    
                                                                               
 CHAIRMAN KOTT:  Thank you Representative Sanders.  You made a                 
 remark during the last portion of your testimony regarding Margie             
 MacNeille and went something to the effect that you thought or that           
 she was after you.  Is this something that is a perception of yours           
 or has there been some communication between you and her that have            
 affirmed that statement?                                                      
                                                                               
 Number 830                                                                    
                                                                               
 REPRESENTATIVE SANDERS:  Mr. Chairman, I have never met Margie                
 MacNeille.  I don't believe I'd know her if she were here in the              
 room.  In the beginning when we -- when the Ethics Committee was              
 formed, there were five names -- well (indisc.) 270 people applied            
 to be on the Ethics Committee.  It was determined that they would             
 put five people on it, five public members, two Republicans, two              
 Democrats and something else.  Didn't what it just wasn't a                   
 Democrat and wasn't a Republican.  Of those 270 people, a judge               
 picked out five names and sent those names to the Governor who                
 referred them to the legislature for us to vote on.  At that time,            
 I had a -- I'd been here a long time.  I had a large concern that             
 new people were coming into the state and taking over things -                
 taking over the government.  People who didn't know what Alaska               
 was, what it was about.  So I went to the Division of Elections to            
 get their voting records to see how long they'd been in Alaska.  As           
 I remember it, my questions were satisfied.  Most of these people             
 had been here, some 30 years, everybody more than 10.  But I                  
 noticed something on their voting applications.  What I noticed was           
 that the two Democrats, on their history record, had been Democrats           
 since college days or since they'd first signed up to vote.  The              
 two Republicans and the I believe it might have been a U, I can't             
 remember for sure, had all changed parties in August before they              
 were appointed in January - at the end of August.  So I got their             
 records and they had all three been Democrats and had changed                 
 parties for some unknown reason within a week in August.  When this           
 information was brought up in the Judiciary Committee, four of                
 these people were dropped on the floor and Ms. MacNeille, being one           
 of the life-long Democrats, they felt comfortable with and it was             
 discussed in caucus and I said that I could not vote for her                  
 because she was part of a group that I felt was there to attack us            
 as conservative Republicans.  We went on the floor and it was 39              
 votes to 1.  I voted against Margie MacNeille.  I was told not by             
 Margie MacNeille, but I was told by people that I won't mention               
 that I would be sorry for that vote.  I have said this on                     
 television before and I'll say it again, I am not sorry and if she            
 drives me out of the political process, I still will not be sorry             
 that I voted against her.  This is the basis, then we come with the           
 other problems I've had.  The first one which I didn't address                
 because it was laughable.  There were four -- do we want to get               
 into old ethics things or -- I don't mind.                                    
                                                                               
 CHAIRMAN KOTT:  If you feel that it would substantiate your                   
 position.                                                                     
                                                                               
 Number 1041                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  There were four ethics violations brought            
 against me.  Three of them were dismissed.  One of them was worked            
 on to tune of over $12,000.  They interviewed 37 people and no one            
 said that I had done anything like that.  They found one individual           
 who was a fried of my aid who said he thought maybe he'd talked to            
 my aid about some business cards.  He thought maybe he'd talked to            
 my aid about em.  So they found me guilty of having my aid sell him           
 business cards.  I talked to him later.  I said, "Maybe you did               
 talk to him."  I don't know.  I said, "Was I there?"  He said, "No,           
 you weren't there."  But I think I remember talking to Ed one time            
 about it.  On that evidence, Mr. Chairman, every individual at this           
 table has pads in his office from two or three print shops here in            
 town with their name at the bottom of that pad.  If you have one of           
 mine, that's an ethics violation.  I'd had mine in here for ten               
 years before they did this, but now it's against the law for me to            
 have my pads here.  These are the background things that lead me to           
 suspect Margie MacNeille without having any numbers or figures or             
 anything like that.                                                           
                                                                               
 Number 1142                                                                   
                                                                               
 CHAIRMAN KOTT:  Thank you for answering the question.  Then if I              
 can summarize then, she has not officially, in person, indicated              
 that she was out to get you, but certainly from at least your                 
 perception the actions that have occurred over the past several               
 months or couple of years would lead you to believe that there is             
 something between ya.                                                         
 Number 1162                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  Yes sir, that's correct.                             
                                                                               
 CHAIRMAN KOTT:  Thank you.  Representative Porter.                            
                                                                               
 Number 1165                                                                   
                                                                               
 REPRESENTATIVE PORTER:  Thank you, Mr. Chairman.  Jerry, I've got             
 a question.  One that I think goes to the allegation itself or the            
 complaint violation itself of what led to your motivation for not             
 cooperating.  To the - to the violation, am I correct that -- I               
 assume I'm correct that Democrats couldn't vote in that straw poll,           
 but could Us and Ns vote in that straw poll or just Republicans?              
                                                                               
 Number 1192                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  Well, I don't think they could.  I -- you            
 know I can't - I can't answer that question.                                  
                                                                               
 REPRESENTATIVE PORTER:  Perhaps Representative Vezey can.                     
                                                                               
 Number 1198                                                                   
                                                                               
 REPRESENTATIVE VEZEY:  Mr. Chairman, the straw poll that                      
 Representative Sanders is referring to was put on by the Republican           
 Party and a requirement to vote was that you had to registered as             
 a Republican and they would register you at the polls if you so               
 desired.                                                                      
                                                                               
 REPRESENTATIVE SANDERS:  That's the way I remember it.                        
                                                                               
 Number 1217                                                                   
                                                                               
 REPRESENTATIVE PORTER:  The previous primary that was a closed                
 Republican primary Us and Ns were allowed to vote in the primary -            
 state primary election, but in this case it was not okay.  So then            
 if you wanted to thank people for going to that particular election           
 process, the only people you could have written to would be                   
 republicans.                                                                  
                                                                               
 Number 1235                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  Yes sir.  I did not pick and choose.  I              
 sent that letter to everyone that I was aware of who attended and             
 I said Republican because in my impression is that there was no one           
 there but Republicans.                                                        
                                                                               
 Number 1253                                                                   
                                                                               
 REPRESENTATIVE PORTER:  Same question if I may.  As you're aware              
 that the subcommittee on -- the House subcommittee of the                     
 Legislative Ethics that looks at violations is made up of five                
 public members and two members of the House.  Are you aware that              
 they have to have a majority vote before a violation is determined?           
                                                                               
 Number 1273                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  No sir because this was all done in                  
 executive session.  I don't know how anybody voted or if anybody              
 vote or....  I tried to find that out.                                        
                                                                               
 REPRESENTATIVE PORTER:  Well that probably explains that, alright             
 thank you very much.                                                          
                                                                               
 Number 1290                                                                   
                                                                               
 CHAIRMAN KOTT:  Just as a comment, I guess, regarding your first              
 question, "Who is eligible to vote in that straw poll," is in fact            
 true that you must be a registered Republican.  However, it is also           
 true that you could have been an N, a U, or a D or a I or a Green             
 two minutes before you cast your vote.  So you, in essence, really            
 wouldn't know what their political persuasion might be other than             
 the fact that they had to have an R next to their name as a                   
 republican to participate.  But you could switch you -- if I                  
 understand it correct and I think Representative Vezey is the - is            
 the resident expert on polls and primaries.  But I think that's               
 correct is that not - at least for this particular function                   
                                                                               
 Number 1335                                                                   
                                                                               
 REPRESENTATIVE VEZEY:  The straw poll, Mr. Chairman, the straw poll           
 that was conducted in February of 96, you could register here and             
 then step over one seat and vote.  If you were not currently                  
 registered Republican, you could register right there.  The                   
 requirement was that to participate in the vote you had to be a               
 registered Republican, but there was not length of time you had to            
 be registered as a Republican (indisc.).                                      
                                                                               
 UNIDENTIFIED SPEAKER:  Nor did you have to stay.                              
                                                                               
 Number 1360                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  Mr. Chairman, my understanding was...                
                                                                               
 CHAIRMAN KOTT:  Representative Sanders.                                       
                                                                               
 REPRESENTATIVE SANDERS:  ...when they voted, they were Republicans.           
                                                                               
 CHAIRMAN KOTT:  Representative Elton.                                         
                                                                               
 Number 1369                                                                   
                                                                               
 REPRESENTATIVE ELTON:  Thanks Mr. Chair.  I - I - I appreciate how            
 difficult this must be for you.  I mean it's difficult whether you            
 do it in this forum or before the whole House or (indisc.) the                
 Legislative Ethics Committee hearing.  I mean I think one of the              
 questions that we should ask is the one -- one of them was asked at           
 the Legislative Ethics Committee hearing in that -- because that              
 kind of gets to the first question that I think this committee                
 needs, you know, and that is whether or not you did cause that                
 letter to be written.  I mean that was probably the threshold                 
 question that was asked at the Ethics Committee and so did you                
 cause the letter to be written?                                               
                                                                               
 Number 1405                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  Representative Elton, yes I did cause that           
 letter to be written.  I composed it.  I have never told a citizen            
 on the face of the earth that I didn't write that letter.                     
                                                                               
 Number 1413                                                                   
                                                                               
 REPRESENTATIVE ELTON:  Mr. Chairman, I guess one of the things that           
 I want to make clear because - and I may have misunderstood.  When            
 you were talking about the process of selecting the public members            
 in the past, and I think it was before I was a member of this body,           
 you talked about one of the concerns that you had that some of the            
 people who were Rs had previously, several months previously, had             
 been registered Ds.  And I guess the question in my mind still                
 remains.  Were any of those short term Republicans named to the               
 committee or or did other - were other Republicans subsequently               
 named the the committee.                                                      
                                                                               
 Number 1449                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  No Representative.  None of those were at            
 that time.  Others were put before us at later dates and were                 
 confirmed.  One of those to -- leading me into something good.  One           
 of those who was also a D in August who was put up later is on the            
 committee today.                                                              
                                                                               
 Number 1475                                                                   
                                                                               
 REPRESENTATIVE ELTON:  Mr. Chair, I think another question that               
 came up in my mind and it came about when you were talking about              
 the process and you were concerned about the timing, and I'm not              
 talking about the amount of time that you had to respond,  but the            
 timing of the allegation, the notice of (indisc.) and the hearing.            
 And this -- in several of the documents that you supplied earlier,            
 you were concerned about the timing and I guess I've always felt              
 that the - the worst, you know, timing that would have been worse             
 for you would have been timing at which there had been a                      
 determination by the committee prior to the election.  I guess in             
 my mind, I've always thought that as far as timing goes, perhaps              
 you were -- if there had been a political purpose to this that that           
 political purpose would have been best served if the final                    
 determination had been made previous to the election.                         
                                                                               
 Number 1524                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  Let me address that.  The timing actually            
 starts at the time there is a determination by the committee that             
 there is reason to pursue this.  Then they can begin to hand out,             
 daily, items to the media about it.  They can release these things            
 one after another and up until Judge Sig Murphy made his -- gave              
 his restraining order, the intent was to have the meeting before              
 the election.  At that point the committee threw up their hands and           
 says, "Oh, well just have it after the election," and named a date.           
 Before that we had to get this done so that we could get get our              
 timing so that we could have this hearing immediately.  It was                
 important.  In the interest of the state of Alaska, this hearing              
 had to be held immediately if not sooner.                                     
                                                                               
 Number 1574                                                                   
                                                                               
 REPRESENTATIVE ELTON:  One last question for -- Mr. Chairman I                
 appreciate your allowing me to ask several -- Representative                  
 Sanders, where did you get the list of people who had participated?           
 I mean how did that come into you possession?                                 
                                                                               
 Number 1586                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  Either from the Republican Party or from             
 my district.  I'm not sure which, but they - they both had it and             
 we contacted em and one of em got it to me.                                   
                                                                               
 REPRESENTATIVE ELTON:  Thanks Mr. Chair.                                      
                                                                               
 Number 1600                                                                   
                                                                               
 CHAIRMAN KOTT:  Representative Sanders, on the - on the date that             
 the letter was mailed, had you done anything that would suggest               
 that you had started campaigning for office.                                  
                                                                               
 Number 1615                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  Not to my knowledge.  I know distinctly              
 that I hadn't made up my mind at that time.  I was still talking to           
 my wife.  It was probably not a month later, but it was two or                
 three weeks later before I filed for office.                                  
                                                                               
 Number 1634                                                                   
                                                                               
 CHAIRMAN KOTT:  As a result of that letter being sent, did you                
 receive any political or person gain?                                         
                                                                               
 Number 1647                                                                   
 REPRESENTATIVE SANDERS:  Again, not to my knowledge.  I - I had a             
 warm fuzzy feeling toward those people for going out and                      
 participating and I would assume that being as I didn't insult them           
 in the letter, they probably felt good toward me, but I don't know            
 that that's true.  Obviously one man didn't.                                  
                                                                               
 Number 1666                                                                   
                                                                               
 CHAIRMAN KOTT:  Well I would suggest that you did get some gain out           
 of it.  At least the personal satisfaction that...                            
                                                                               
 REPRESENTATIVE SANDERS:  Absolutely, I'll agree with that.                    
                                                                               
 CHAIRMAN KOTT:  ...communicated with constituents and patted them             
 on the back I suspect.  Further questions from committee?                     
                                                                               
 Number 1683                                                                   
                                                                               
 REPRESENTATIVE WILLIAMS:  Yes, maybe I don't know why this feeling            
 that you received, Representative Sanders, on the reason that you             
 felt that the chairman of the committee was politically doing                 
 things in a political manner because of election you mention.                 
 Could you expand a little bit more on that - the $685,212.                    
                                                                               
 Number 1716                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  I don't know if I can expand more.  I can            
 repeat it.  I mean my feeling is that this lady, who is my accuser,           
 my jury and my judge, is a registered Democrat.  She is an                    
 attorney.  Her husband is attorney and her husband is receiving,              
 since the Administration changed, he is receiving over $1,000 a day           
 from an Administration that, how can I say, I am the loyal                    
 opposition to.  I am in opposition to them.  It is not in their               
 best interest for me to be sitting here today or for me to be                 
 sitting on that floor in the Chamber.  And I just -- I believe that           
 $1,000 a day will buy a lot of loyalty.  And that's the things that           
 I wanted to have executive session about because I'm not saying               
 that these things are true.  I am saying that was my feeling and              
 still is, but that doesn't make them true.                                    
                                                                               
 Number 1777                                                                   
                                                                               
 CHAIRMAN KOTT:  One of the areas that -- sections of the law that             
 have been addressed as far an alleged violation is regarding the              
 mass mailings.  How would you define "mass mailing?"  What is your            
 definition?  One, two, five, fifty or district?                               
                                                                               
 Number 1794                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  I guess I would define a mass mailing the            
 way the post office does.  I believe it's 200 letters.  I believe             
 anything over 200 is subject to the lower rate because it's a mass            
 mailing.  Anything below that you can't get the rate.  I -- maybe             
 I'd have to hang my hat there.  I don't know that I have a logical            
 reason for -- or a logical division point on a mass mailing other             
 than that.                                                                    
                                                                               
 CHAIRMAN KOTT:  Thank you.  Representative Elton.                             
                                                                               
 Number 1817                                                                   
                                                                               
 REPRESENTATIVE ELTON:  Thanks Mr. Chair.  You may not know the                
 answer to this Representative Sanders, and if not I think the                 
 committee might when (indisc.) representatives are here, but you              
 had mentioned that - that the person who filed the complaint did              
 not - was not a witness at the hearing.  I mean I -- in my mind I             
 guess I assumed that you had - that you could request that that               
 person be there and testify at the hearing and so it was a decision           
 that was not just a unilateral decision, but you also had the                 
 decision of whether or not to compel that person to participate in            
 the hearing.                                                                  
                                                                               
 Number 1848                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  Personally, all I can say is, again, it's            
 my personal opinion, it would never cross my mind that you could              
 take anyone into court and have their accuser not be there.  I mean           
 is that - is that done in court?  I don't -- maybe it is.  I don't            
 do much of this and I'm not a lawyer, but it never crossed my mind            
 that he wouldn't be here.  I mean I -- in my mind I knew he was               
 going to be there.  Never thought about it.                                   
                                                                               
 Number 1870                                                                   
                                                                               
 REPRESENTATIVE ELTON:  Kind of a similar questions, Mr. Chair.  And           
 again I don't know the answer to this, but I'm assuming that if you           
 ask for discovery (indisc.) this person that you could compel                 
 discovery that if a person says, "I don't want to do it," that's              
 not enough, but that you have (indisc.--coughing) to compel that              
 person to participate in the process.                                         
                                                                               
 Number 1886                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  I can't answer that question.  I'm sure my           
 attorney could.  I'm not sure we want to hear from him, but I can't           
 answer the question.  I know he can.                                          
                                                                               
 Number 1899                                                                   
                                                                               
 REPRESENTATIVE PHILLIPS:  Thank you Mr. Chairman.  Representative             
 Sanders, I do have one follow up question on the person that was              
 your accuser and didn't bother to come and make the accusation at             
 the public hearing.  And I want to have this very clear for the               
 record because I think this is one area of the law that we really             
 need to focus on.  Your accuser was an opponent of you in a                   
 previous election or in that election.  Is that correct?                      
                                                                               
 REPRESENTATIVE SANDERS:  In the election of 1994 - my opponent.               
                                                                               
 REPRESENTATIVE PHILLIPS:  Alright, I want that very clear on the              
 record that this was brought by - by a political opponent.  I want            
 to restate I think this is one area of the law that we as the                 
 writers of this policy need to address.                                       
                                                                               
 Number 1933                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  Mr. Chairman.                                        
                                                                               
 CHAIRMAN KOTT:  Representative Sanders.                                       
                                                                               
 REPRESENTATIVE SANDERS:  I would point out that none of the Ethics            
 Committee's accusations that have ever been brought against me were           
 by anyone who hadn't been a previous opponent.                                
                                                                               
 CHAIRMAN KOTT:  Representative Porter.                                        
                                                                               
 Number 1950                                                                   
                                                                               
 REPRESENTATIVE PORTER:  Jerry, this question probably relevant only           
 to me, but if you want to know why I asked it I'll tell you later.            
 You've been Alaska a long time.  How long have you been here?                 
                                                                               
 REPRESENTATIVE SANDERS:  Oh 25 26 years.                                      
                                                                               
 REPRESENTATIVE PORTER:  And from where did you come?                          
                                                                               
 REPRESENTATIVE SANDERS:  When I came here or originally?  Or I mean           
 you ask me where I was born or where was I when I came to Alaska?             
                                                                               
 REPRESENTATIVE PORTER:  Where did you spend most of your adult life           
 outside of Alaska?                                                            
                                                                               
 REPRESENTATIVE SANDERS:  Well...                                              
                                                                               
 REPRESENTATIVE PORTER:  If it's a couple of places (indisc.)                  
                                                                               
 REPRESENTATIVE SANDERS:  No I -- the longest time I ever spent                
 anywhere in my life, I was raised in East Saint Louis, Illinois.              
 I lived there seven years from the time I was 8 until I was 15.               
 Other than that, I've never been anywhere more than a couple of               
 years until I came to Alaska.                                                 
                                                                               
 REPRESENTATIVE PORTER:  Okay.                                                 
                                                                               
 Number 1995                                                                   
                                                                               
 CHAIRMAN KOTT:  Does that conclude your questioning?                          
                                                                               
 REPRESENTATIVE PORTER:  Yes sir.                                              
                                                                               
 CHAIRMAN KOTT:  I'm curious too.                                              
                                                                               
 REPRESENTATIVE PHILLIPS:  Me too.                                             
                                                                               
 CHAIRMAN KOTT:  Representative Sanders, one of the areas that is of           
 concern is dealing with public funds and I know that there has been           
 a lot of discussion among many members in the legislature regarding           
 office allowance accounts and whether or not you are taking that              
 office allowance account in a lump sum which I suppose could be               
 construed then as personal income, but it's still state money that            
 has come to you, or through the mechanism that the Legislative                
 Affairs Agency has set up in the form of the accounting process and           
 keeping those monies accountable in their records.  Can you                   
 enlighten us as to which method you were using at the time?                   
                                                                               
 Number 2035                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  At the time the letter was sent, I was               
 taking the accountable method.  Now I guarantee you I am not.  I              
 still sit here before you not understanding the distinction and I             
 would remind you, Mr. Chairman, and the committee that this is some           
 kind of a technical violation that, like I say, I still don't                 
 understand and maybe I'm guilty of that.                                      
                                                                               
 CHAIRMAN KOTT:  Representative Phillips.                                      
                                                                               
 Number 2061                                                                   
                                                                               
 REPRESENTATIVE PHILLIPS:  Mr. Chairman, maybe for the public record           
 you could explain and lay on the table the differences between the            
 two accounting methods, the issue of taxation on the one accounting           
 method, and the comment from the Ethics Committee that said if you            
 had done it one way it was right and if you had done it the other             
 way, it's wrong.  And I would like a clarification on the record on           
 that please.                                                                  
                                                                               
 Number 2080                                                                   
                                                                               
 CHAIRMAN KOTT:  Would you like me to explain it or...                         
                                                                               
 REPRESENTATIVE PHILLIPS:  uh-huh, uh-huh.                                     
                                                                               
 CHAIRMAN KOTT:  Thank you, having taken it both ways, certainly we            
 are authorized as legislators a $6,000 office allowance account and           
 that $6,000 can be held by Legislative Affairs Agency at which                
 point you purchase something and submit the receipt to LAA, at                
 which point then they render payment and then they subtract that.             
 On a monthly basis, you get a receipt or at least an account of               
 what you've expended from your $6,000.  There is no taxes paid on             
 it so -- and the benefit of using that method is that you have the            
 entire $6,000 and it goes a little further than if you take it the            
 other way which is, again, you still get the $6,000 initially, but            
 before you actually get your hands on it.  It amounts to about                
 $4,300 or $4,400 depending on your individual tax bracket.  It                
 comes in one lump sum which you only get -- during the first week             
 or two of the legislative session.  You can do with that money I              
 suspect about anything you want to do with it even though the                 
 intent, I believe, is to provide a mechanism for you to purchase              
 things for your office and to perhaps purchase postage and                    
 brochures for mailings.  So that basically is the difference.                 
 You're paying taxes on one, it's a lot less, there is no account,             
 nobody ask you what you spent it on, it's none of their business.             
 It's like any other personal income.  That's my understanding of              
 the money and Representative Sanders.                                         
                                                                               
 Number 2160                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  Mr. Chairman, am I allowed to ask                    
 questions here?                                                               
                                                                               
 CHAIRMAN KOTT:  You can ask, but I'm not sure of (indisc.) answer.            
                                                                               
 REPRESENTATIVE SANDERS:  Under these conditions that you're talking           
 about, if I choose to pay the taxes, take the money.  If I spend              
 the money on my office account, can I turn that in on my income tax           
 and get the money back.                                                       
                                                                               
 REPRESENTATIVE PORTER:  Don't answer that.                                    
                                                                               
 CHAIRMAN KOTT:  For fear of incriminating or getting myself in deep           
 water with the IRS.                                                           
                                                                               
 REPRESENTATIVE PORTER:  That is (indisc.) IRS question.                       
                                                                               
 CHAIRMAN KOTT:  Yah, that would be an individual IRS question, 1-             
 800-911IRS, plural.  Further questions for Representative Sanders?            
 Representative Elton.                                                         
                                                                               
 Number 2195                                                                   
                                                                               
 REPRESENTATIVE ELTON:  Mr. Chair, thanks.  I have a feeling that we           
 may not (indisc.).  I understand, I think, the argument that your             
 making - the impulse that you had on not cooperating with the                 
 Ethics Committee and - and I think you've laid out the reasons that           
 you didn't want to cooperate with the Ethics Committee.  I guess              
 the question I have for you is - is that - is it's really difficult           
 to say what I would have done if I had that mind set, but maybe you           
 could explain to us why you didn't just say, "Given that, I'm gonna           
 make the best case that I can."  I'm going to say essentially what            
 you said to this group about the purpose of the letter and why you            
 thought the letter had a legislative purpose or a governmental                
 purpose as you framed it.  Why wouldn't you do that?  I'm assuming            
 tho -- they'll make the right decision knowing you had this avenue            
 later, especially since there are other members of the Ethics                 
 Committee, other than the chair, that you had some doubts about.              
 Number 2248                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  Suppose you'd have to call it the rabbit             
 syndrome.  All I could do was hunker down and hope that these                 
 people don't eat me alive.  And, like I say for the same reason               
 that the people in Germany didn't cooperate because I knew -- in my           
 mind I knew that there was nothing that I could do that these                 
 people were going to convict me and they were - they were - they              
 had tried to do it before the election.  Beings they couldn't do it           
 for the election, they were mad at me because they couldn't do it             
 before the election and they were going to be even more vindictive            
 toward me after the election.                                                 
                                                                               
 REPRESENTATIVE ELTON:  Thanks Mr. Chairman.                                   
                                                                               
 CHAIRMAN KOTT:  Further questions for the witness?                            
                                                                               
 Number 2287                                                                   
                                                                               
 REPRESENTATIVE WILLIAMS:  We will be able -- if we do have another            
 question, we will be able to get Representative Sanders back here?            
                                                                               
 Number 2297                                                                   
                                                                               
 CHAIRMAN KOTT:  He will be available if another issue or another              
 question comes up at a later time.  I'm sure he'll make himself               
 available and provide a timely response to the question.  I just              
 have one last question regarding the process.  We set up this                 
 Ethics Committee a few years back and I think, for the most part              
 with few exceptions, they've done an exceptional job and there is             
 probably some ambiguities in the law that needs to be clarified. I            
 think that's one of the issues that this committee may address at             
 some point in time.  One of the things we did was to establish that           
 there would be two members of the legislature to perhaps provide a            
 mechanism or a forum so that the public members would understand              
 the issues that have come before that committee.  In your                     
 understanding do know if both of the legislative members were in              
 fact in attendance and provided that forum and provided the                   
 dialogue that would have occurred.                                            
                                                                               
 Number 2333                                                                   
                                                                               
 REPRESENTATIVE SANDERS:  I did not attend the meet -- I attended              
 the meeting teleconfer - by teleconference.  It's my understanding            
 that one of the legislators had never participated in - in anything           
 having to do with my case.  I don't know that.  I can't state that            
 as fact, but that's my understanding.                                         
 Number 2363                                                                   
                                                                               
 CHAIRMAN KOTT:  Thank you.  Further questions?  Hearing none, then            
 we will go into recess until tomorrow evening at 6:00 p.m. at which           
 point we will hear from the members from the Ethics Committee.                
                                                                               
 REPRESENTATIVE SANDERS:  Thank you Mr. Chairman.  Thank you                   
 committee members.                                                            
                                                                               
 [The House Rules Committee meeting was recessed at 5:36 p.m.]                 
                                                                               

Document Name Date/Time Subjects