Legislature(1997 - 1998)

01/30/1997 06:07 PM House RLS

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                 HOUSE RULES STANDING COMMITTEE                                
                        January 30, 1997                                       
                           6:07 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 PRESENT                                                               
                                                                               
 All members present                                                           
                                                                               
 OTHER HOUSE MEMBERS PRESENT                                                   
                                                                               
 Representative Jerry Sanders                                                  
 Representative Joe Green                                                      
 Representative John Cowdery                                                   
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 Continuation of January 29, 1997, meeting:                                    
      Select Committee on Legislative Ethics                                   
      Decision H96-02                                                          
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 MARGIE MACNEILLE, Chair                                                       
 House Subcommittee                                                            
 Select Committee on Legislative Ethics                                        
 P.O. Box 101468                                                               
 Anchorage, Alaska  99510-1468                                                 
 Telephone:  (907) 258-8172                                                    
                                                                               
 SUSIE BARNETT, Professional Assistant                                         
 Select Committee on Legislative Ethics                                        
 P.O. Box 101468                                                               
 Anchorage, Alaska  99510-1468                                                 
 Telephone:  (907) 258-8172                                                    
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 97-3, SIDE A                                                             
 Number 001                                                                    
                                                                               
 CHAIRMAN PETE KOTT called the House Rules Committee meeting back to           
 order at 6:07 p.m.  All members were present.                                 
                                                                               
 CHAIRMAN KOTT:  This evening, we will continue the hearings on the            
 Ethics Case H96-02, also known as Re Sanders.  We have invited two          
 members from the Ethics Committee to be with us this evening,                 
 Margie MacNeille and Susie Barnett.  We really appreciate you                 
 taking the time from your schedule.  I'm sure you probably had                
 other things that you could have done this evening, and we                    
 certainly appreciate you coming to Juneau and offering us some                
 information regarding this particular matter.  What I would like to           
 do is, as I have done with previous individuals who have testified,           
 is to ask you to raise your right hand, and we'll do it jointly.              
 Do you solemnly swear to tell the truth, the whole truth and                  
 nothing but the truth about the information you're about to give to           
 this committee, so help you God?                                              
                                                                               
 MARGIE MACNEILLE, CHAIR, HOUSE SUBCOMMITTEE, SELECT COMMITTEE ON              
 LEGISLATIVE ETHICS:  I do.                                                    
                                                                               
 SUSIE BARNETT, PROFESSIONAL ASSISTANT, SELECT COMMITTEE ON                    
 LEGISLATIVE ETHICS:  I do.                                                    
                                                                               
 CHAIRMAN KOTT:  Thank you.  And for the record, would you initially           
 state your name and affiliation.                                              
                                                                               
 Number 120                                                                    
                                                                               
 MS. MACNEILLE:  My name is Margie MacNeille.  I am here as the                
 chair of the House Subcommittee of the Select Committee on                    
 Legislative Ethics.  With me is Susie Barnett, who is our sole,               
 loyal and wonderful staffer.  And I'd just like to introduce to the           
 committee, also here is Shirley McCoy, who is a public member of              
 the committee as well.  I think a lot of you know her.  She lives             
 in Juneau, so she didn't have to make the trek to come down here.             
                                                                               
 Number 177                                                                    
                                                                               
 CHAIRMAN KOTT:  I know this is a thankless job that you're in, so             
 on behalf of the committee, and I guess the entire legislature, we            
 want to say thanks for your efforts in this matter and every other            
 matter you've been involved with.  What I would like to offer is              
 the opportunity for you to make some opening remarks, and I think,            
 with the indulgence of the committee, we will just open it up for             
 questions from the committee and get right to the issues.                     
                                                                               
 Number 222                                                                    
                                                                               
 MS. MACNEILLE:  Okay.  If -- I would thank you for the opportunity            
 to make some opening remarks, and I hope -- I hope we can get                 
 through them promptly enough for you all to still be awake.  I want           
 to thank the committee sincerely for the opportunity to come and              
 talk to you.  Thank you for choosing to, as the -- the House --               
 choosing to refer this to Rules and have a hearing on it, because             
 this is the first time that an Ethics Committee recommendation for            
 sanctions has come to the House, only the second time that this               
 Ethics Committee has made any recommendations.  And I think it is             
 very appropriate for the House, through a committee, to assure                
 itself that this has worked the way it wanted it to go.  Under the            
 Alaska Constitution, Article II, Section 12, each house is the                
 judge of its own members' qualifications.  To me, that means that             
 you members of the House are the final authority in this matter.              
 And you are the people responsible for making the decision, and you           
 need to know what -- what information you require in order to make            
 that decision.  In 1992, as -- as I remember it, among a period of            
 concern about legislative ethics, the existing model of an ethics             
 committee which was dominated by legislators was changed to one               
 where the initial steps of an ethics investigation were given to an           
 ethics committee with mostly public members, because the -- that              
 committee was meant to be a nonpolitical body.  That committee was            
 meant to make an independent decision which would not be considered           
 tarred, in any way, by a partisan political brush.  It -- the                 
 thinking, as I remember, was to give credibility to the process,              
 give the legislature some way to deal with the situation without it           
 looking as though it were just a question of power politics.  Now             
 that process comes to you, and I think it's important for you to              
 understand that process and to assure yourself that the Ethics                
 Committee is, in fact, the nonpolitical, independent, nonpartisan             
 body that it was designed to be.  First, I want to deal with the              
 question of political bias of the committee.  And here, I have to             
 deal with personal issues first.  And there are things that will --           
 there are -- I will get angry tonight, and I apologize for that,              
 and I want to say to begin with that I'm not angry at you.  And the           
 first concern of mine is the allegations about a conflict of                  
 interest of mine because of my husband and the work he has done for           
 the state.  I am proud of what my husband has done for this state.            
 In 1989, I was appointed to this Ethics Committee.  In 1990, my               
 husband, Julian Mason, began work on the state royalty and tax                
 settlements under the Cooper Administration.  He brought in $290              
 million in settlements.  In '92 and '93, there were settlements               
 with BP and Exxon, and their tax settlements imposed between two              
 and three billion dollars.  Now, my husband didn't do this all by             
 himself, no doubt, but I feel that he was instrumental.  That was             
 under the Hickel Administration and the attorney general at that              
 point was Charlie Cole.  In 1994, my husband began work on the                
 mental health settlement which was finally settled in a special               
 session of this legislature and then tried in the -- in the winter            
 of that year.  Then, later on, under the Knowles Administration,              
 he's undertaken some role in the subsistence issues.  When and how            
 money came to his firm on behalf of the service he has done for               
 this state, I don't know.  It's not my business what their billing            
 situation is.  All I can tell you is, if you care when or how that            
 money came, you need to look at when the work was done.  My husband           
 assures me, and it's my recollection, that the bulk of work he did            
 was under the Hickel Administration.  And how does this relate to             
 me?  What does this have to do with my role on this committee?                
 First, you should know this is old news.  I raised this issue with            
 the legislature repeatedly.  At my confirmation hearings in 1993,             
 the first time this committee was constituted in its current form,            
 I discussed it at my confirmation hearings on January 12th, I filed           
 a letter asking for an advisory committee -- advisory opinion from            
 this committee about whether there was a difficulty, my being on              
 the committee with my husband having -- doing the work he was                 
 doing.  In 1995, I asked again for an advisory opinion on the same            
 issue.  And both times, those -- the Ethics Committee, without me             
 participating and without me being in the room, decided that there            
 was no problem.  Secondly, I've been on this committee since 1989,            
 an ethics committee in one form or another.  I've been confirmed by           
 this legislature four times.  I've worked with lots of legislators            
 on lots of cases.  If I were in some form a lackey of an                      
 administration, I think you might have noticed it by now.  I was              
 not beholden to the Cooper Administration.  I was not beholden to             
 the Hickel Administration.  I am not beholden to the Knowles                  
 Administration.  And it's difficult for me not to resent that                 
 implication.  I am not a robot here carrying out some governor's              
 orders.  I want to also address the question of whether I had                 
 personal revenge motives against Representative Sanders because he            
 voted against me in a confirmation hearing.  I didn't even know               
 that he had done that until well into this particular proceeding              
 this fall.  As best I can find out, I didn't know it until a -- a             
 letter that his attorney wrote to the master, Michael White, on the           
 16th of October.  But it doesn't matter 'cause I didn't care.  I              
 don't care why people would vote for me or against me.  There are             
 all kinds of reasons, many of which may be trivial, some of which             
 may be significant.  It is not a problem for me.  I was not after             
 Representative Sanders because of that.  Finally, this is a                   
 committee.  It is ludicrous to me to suggest that I could persuade            
 six committee members to violate their legal obligations for some             
 nefarious purpose of mine.  The members on this committee come from           
 all over this state.  And if you know Cynthia Toohey, or Joe                  
 Donohue, or Shirley McCoy, or Ed Granger, or Edith Vorderstrasse,             
 you know how strong-willed these people are.  You know that they're           
 not sheep that I led astray, and they'll be glad to tell you so.              
 You confirmed them.  You chose people who are not politically                 
 active in a partisan way.  They're active in their communities but            
 not on a partisan basis.  Once we're on the committee, we're                  
 politically neutered.  We can't post yard signs.  We can't go to              
 fund raisers.  We can't give money.  We can't do anything.  And we            
 don't.  The people on this committee work hard for no pay at                  
 considerable personal sacrifice.  They don't do that for some                 
 political reason that they've hidden.  I want to try to get off my            
 high horse here for a minute and -- and go through the process we             
 went through so you understand why we did some of the things we               
 did, not out of political motivation, and so you can assess some of           
 the issues that Representative Sanders raised yesterday.  And to do           
 that I wanted some charts and time lines.  I hope they'll be of               
 some help.                                                                    
 MS. BARNETT:  Would you like these handed out?                                
                                                                               
 MS. MACNEILLE:  Yeah.  We're recycle.  This chart is the same chart           
 that some of you may have seen at the [indisc.--simultaneous-                 
 speech].                                                                      
                                                                               
 REPRESENTATIVE PHILLIPS:  I can't see it the way it is.                       
                                                                               
 MS. MACNEILLE:  We had a lot of trouble figuring out where to put             
 it, so that anybody could ...                                                 
                                                                               
 MS. BARTLETT:  Here, you don't have to read.                                  
                                                                               
 Number 750                                                                    
                                                                               
 CHAIRMAN KOTT:  For the record, we will label this particular                 
 handout Exhibit E.  It's the case review H96-02.                              
                                                                               
 MS. MACNEILLE:  What I want to do with both this chart, which is              
 the generic chart of how the complaint process, and the time line,            
 kind of walk through what we did.  And I think one of the concerns            
 is that we, the committee, in some way changed the timing of the              
 process for some political purpose.  And I hope when this is                  
 through, you'll see why we did what we did and -- and with what               
 timing.  The statute -- the Ethics Committee statute sets out a               
 series of steps that we have to go through, and we also have                  
 procedures adopted which define some of those and set some time               
 lines as well.  The first thing that happens when a complaint comes           
 in to the little mailbox up there is that it's checked to see if it           
 meets the surface requirements for a complaint.  Is it notarized,             
 that kind of thing.  And then -- and that's done at staff level.              
 The committee doesn't see it -- the subcommittee committee, let's             
 say, doesn't see the complaint at that point.  The next step is               
 that it comes to the committee to say if true, if we just assumed             
 the facts here were true, would there be a violation.  And then you           
 adopt -- the committee -- if it's yes, it adopts a resolution for             
 scope of investigation.  Now, if you'll look at this, on this                 
 complaint, we received it April 19, 1996.  So -- and it appeared to           
 be okay on its face.  It met the -- the initial statutory                     
 requirements.  The question was when were we going to schedule a              
 committee meeting to go to the step of, if true, is it a violation.           
 Well, we're looking at the last three weeks of session.  In my                
 experience, that's never been a good time to try and schedule a               
 committee meeting with legislators in it.  In scheduling this                 
 committee, it's not easy.  We have people from all over the state.            
 But most important, we have legislators, and you all have a                   
 different life schedule than the rest of us.  You have a very                 
 intense period of work, when you're really busy with other things,            
 understandably, to you more important than -- than our committee              
 meetings.  And then you have the summer off to make a living or,              
 you know, to take a deep breath, and you're not all that interested           
 in coming to an Ethics Committee meeting.  So it's always tough.              
 In this case, it was even harder because then you had the special             
 session.  So we worked it so we thought we could have a meeting               
 June 7th, the day after the last day of session, and our                      
 legislative members would be available.  In fact, due to                      
 Representative Toohey's situation on June 7th and this -- this                
 special session, we couldn't have the meeting.  It was cancelled.             
 We were unable to reschedule that meeting until July 24th.  And               
 that is not a question of deliberate timing on our part.  That was            
 the question, it's the first time we could get us -- we could                 
 schedule all of us at a meeting, or think we could.  Let me make              
 clear that during this proceeding, Representative Toohey was the              
 person, the legislator who made the quorum.  Representative Mackie            
 participated in one meeting but not in the others, and he's -- he             
 was busy on the campaign trail and other things, and to come to us            
 from Craig is -- to Anchorage from Craig is a -- a problem, a                 
 logistics problem.  So, July 24th we went to the second step, which           
 was adopt a scope of resolution, if that's what we were going to              
 do.  We met and we did.  The next phase is investigation.  In this            
 instance, we asked our law firm, Bogle and Gates, Mike Spaan, I               
 don't know if many of you are familiar with him, but he was the               
 U.S. Attorney under Republican Administration, to -- to supervise             
 the investigation.  And this chart here shows, in very summary                
 form, some of the things that went on to try and get that                     
 investigation going.  Because by statute this phase is                        
 confidential, we have not given you any kind of detail here,                  
 although some of these documents, I think, might have come -- or              
 discussions of this might have come from Representative Sanders.              
 There is a more detailed version available, but we certainly                  
 couldn't do that without Representative Sanders waiving the                   
 confidentiality.  The next thing that happens is, after                       
 investigation, we have to look at the results of the investigation            
 to see what the story is.  And then we call that the probable                 
 cause.  We can either say, yes, there's probably cause; no, there             
 isn't.  And that meeting was set on September 9th, for September              
 23rd, which was another time we were able to get everyone together.           
 At that point, we had some indication that Representative Sanders             
 was eager to tell his side of the story, which he had not so far.             
 His attorney attended the meeting but did not make a presentation.            
 At the meeting we addressed the question of whether there was                 
 probable cause, and at that -- once you -- if you determine there             
 is, then the committee has to make a choice, by statute, between              
 corrective action or issuing formal charges.  In this case, the               
 committee determined that some -- that formal charges were                    
 appropriate.  And those formal charges were issued September 24th.            
 They were sent and received September 26th.  Then you get to                  
 October, where the fun begins.  So, to -- to recap here, the                  
 committee has seen the complaint once when it decided whether or              
 not to investigate and once again on the probable cause                       
 determinations.  The way our committee operates is that the                   
 material is there for securing and then we give it back to Susie.             
 It's not something we take home and dwell over.  The -- once --               
 once we've issued the formal charges, we issue the summons, the               
 complaint.  Our procedures required us to hold a hearing within a             
 20- to 60-day window: not sooner than 20 days, not later than 60              
 days after formal charges were issued.  On October 1st, Susie sent            
 out a request to all of us for our calendar information for the               
 months of October and November and December to indicate our                   
 availability.  And those came back promptly.  And at that point,              
 somewhere in the second week of October, it became clear to me that           
 we had to have this hearing before November 19th, and here's why.             
 Ed Granger, a Republican member of our committee, was going first             
 to Boston and then to South Africa on the 19th of November; he's              
 still there now.  If we were to have this hearing with Mr. Granger            
 present, we had to have it before the 19th.  Otherwise, we'd be               
 into this year, and the existing members on the -- of the committee           
 would be gone.  Cynthia Toohey and Jerry Mackie would no longer be            
 on the committee, since she was not running, and now Senator Mackie           
 was hoping to move up in the world, if that's what it is, I ....              
 And so, we were stuck.  We had -- we had to have it completed by              
 November 19th, before Ed left.  I think that if we'd chosen to have           
 this hearing without Ed there, you'd all be looking at this in the            
 -- you would be just as angry with us.  I don't know.  So that's              
 the story of how we came up with the hearing date.   The time that            
 members were available that we could have the hearing.  The                   
 decision was made, as you can see on this time chart, October 10th.           
 We sent a letter to Representative Sanders' attorney, Mr. Syren,              
 and to Mike Spaan in his capacity as representing the -- sort of              
 the investigative or prosecutor side of the committee, on November            
 14th and 15th.  That decision was not made when Judge Murphy issued           
 some kind of stay.  That decision was made October 10th.  That                
 week, Representative Sanders, who had not answered the formal                 
 charges, sent through his attorney a letter to the subcommittee               
 objecting to the summons for the charges and raising a variety of             
 procedural concerns.  And also that week, and it doesn't show on              
 here, we didn't put everything on here, we started getting                    
 discovery requests.  I got one on the 8th and one on the 9th,                 
 voluminous discovery requests.  And people started asking for us to           
 release public documents.  Let me talk -- this is -- goes to the              
 question of who is Michael White and what's the story about the               
 hearing officer.  The only -- the hearing we had before, in the               
 Jacko matter, we had used a hearing officer to run the hearing so             
 that the chair, in that case, Joe Donohue, could have a hearing and           
 not -- listen to the evidence and not have to rule on procedural              
 motions and things like that.  And that was our intent also in this           
 case, if there was going to be a hearing.  That week we didn't have           
 an indication from Representative Sanders whether or not a hearing            
 was going to be required.  But we were piling up these -- these               
 motions and challenges to various things the committee had done.              
 We had two choices:  I could rule on them myself or I could get               
 someone else, a lawyer who is a litigator, a person who had been a            
 judge, to deal with this.  Now, you know, it's no secret to me that           
 Representative Sanders, you know, gets upset when he sees my                  
 signature.  I was not going to be the person to rule on these                 
 things, especially because some of them were about interrogatories            
 addressed to me.  So I decided we would use the procedure we have             
 for selecting a hearing officer.  We pulled the list of 11                    
 potential masters and officers -- hearing officers that we had used           
 in the Jacko matter and sent them out to -- to Representative                 
 Sanders' attorney and to Mike Spaan.  The normal procedure is, when           
 a master is appointed or [indisc.] thing, that a list goes out,               
 people strike off the people they don't like or, you know, give               
 reasons why certain people should be recused, and say, well, here             
 are some people you should use.  And that's a reasonably prompt               
 process.  What we heard in response from Representative Sanders'              
 attorney is that he wanted to wait two weeks while he interviewed             
 the candidates.  That kind of delay, given our necessity to have              
 the hearing on November 14th, was not going to work.  Mr. Spaan               
 recommended that we use either David Stewart or Peter Partnow as              
 masters.  Both people -- Mr. Stewart served us beautifully in the             
 Jacko matter, and I would have loved to have used him.  He was                
 unavailable on vacation.  Came home, opened the mail, there was a             
 fund raising letter, a political fund raising letter, and on the              
 bottom, among the list of names were David Stewart and Peter                  
 Partnow.  I thought, Oh, great, these are the last people I'm going           
 to choose because there's going to be some allegation that they               
 have some political axe to grind.  So I took them off the list and            
 went with Mr. White.  Mr. White was a prosecutor for a long time.             
 He was a district court judge at, I believe at the same time as Mr.           
 Stewart, and a person who I knew to be a competent litigator and              
 someone who could handle the hearing.  So I picked him.  As far as            
 I know, the last personal contact I'd had with Mr. White before               
 that time was in 1988.  He and I served on a bar committee                    
 together.  It was not some effort to pick someone with a political            
 axe to grind.  Then from there we moved -- we moved towards the               
 hearing.  Fortunately, Mr. White took over a continual barrage of             
 procedural motions from Mr. -- from Representative Sanders'                   
 attorney, from Mr. Syren.  That -- that's -- that was what we hired           
 him to do.  Mr. Spaan, Mr. Syren and Mr. White, have at it.  That             
 was fine as far as we were concerned.  Orders came out.  Not a                
 problem.  We had, on October 22nd, a committee teleconference about           
 procedural matters.  I believe at the same time, I'm not sure                 
 exactly when it was, I guess it was October 21st Representative               
 Sanders filed, in superior court, a request for stay of                       
 proceedings.  And Judge Murphy was assigned.  Judge Murphy is a               
 district court judge sitting as a superior court judge because they           
 were short of judges at that time.  This court case raised an issue           
 that I think is of really central importance to the legislature,              
 and that's the question of whether the superior court has any                 
 business telling the legislature what to do on disciplining its               
 members.  To me, the Alaska Supreme Court has said in earlier                 
 cases, that it is the legislature's job, under the constitution, to           
 deal with its own internal matters.  And I think that's an                    
 important distinction to be made.  And so the committee responded             
 to Representative Sanders' efforts to get the superior court to               
 intervene in this proceeding.  There has been some discussion from            
 Representative Sanders that we, in some political way, went to                
 change the judge from one person to another.  Now I want to talk              
 about how that happened in case there's anything I can do to clear            
 that up.  When I heard that Judge Murphy had been assigned to the             
 case I knew that Judge Murphy is a district court judge.  The kind            
 of case this is, which is -- can -- might be characterized as an              
 appeal -- oh, it'd certainly have to do with requesting an                    
 injunction, is the kind of case that belongs in superior court, and           
 without any disrespect to Judge Murphy, I wanted a judge who had              
 had experience in those particular kinds of issues.  When you file            
 a notice for change of judge you have no idea who you're going to             
 end up with.  You can end up with any judge that's -- you know,               
 whoever comes up next.  I don't even know what the process is the             
 superior court goes through, but you have no control, and who we              
 would have gotten next, we would, from our point of view, we were             
 stuck with.  We had no idea that Judge Eric Sanders was going to              
 end up with the case.  For all I knew, he and Representative                  
 Sanders were cousins.  But the -- at that point, once he was                  
 assigned to the case, if Representative Sanders had felt that Judge           
 Sanders was not able to give him a fair hearing, he could have                
 filed a change of judge and we would have ended up with whoever               
 else we would've [sic] ended up with, and the committee would have            
 had no further opportunity to change it.  So I don't think it's               
 appropriate for this committee to think there's some political                
 motive that we were angling for some kind of Democratic judge to              
 help out here.  That is not what happened, and then we had no                 
 control over who we ended up with.  You know, I was looking for               
 someone who had experience in these things, but I didn't think I              
 was going to get the freshest judge on the bench, either.  There's            
 -- in the event Judge Sanders agreed that the superior court did              
 not have any business telling the legislature how to address                  
 qualifications or -- or discipline of its members, and meanwhile              
 the hearing preparation went on.  And we had the hearing November             
 14th and 15th.  All the public members and Representative Toohey              
 were present.  Representative Mackie was unable to attend, and, you           
 know, then we rendered a decision.  Before I get to that, I want to           
 address the concern that the committee is both the accuser and the            
 judge.  First, you need to look at what the actual level of                   
 committee member involvement in the case is.  As I said, we've                
 looked at this three times.  We've seen the complaint three times.            
 We've looked at it at the time of making the resolution to                    
 investigate, and we looked at it at the time of probable cause, and           
 we looked at it at the hearing.  We didn't take the documents home.           
 We weren't involved in the investigation.  We weren't involved in             
 the prehearing preparation.  We weren't in control of what                    
 witnesses were going to be called or the presentation of the case.            
 That -- I don't mean to blame it all on Susie, but that was Mike              
 Spaan's job and Susie's job, and we carefully observed the line               
 there.  I didn't know what she was doing as far as the                        
 investigations were going, and I didn't want to know.  I wanted to            
 see what was going to happen at the hearing.  I think committee               
 members -- we all have kids, you know the first story you hear                
 isn't necessarily the whole story.  And I think we can keep an open           
 mind about -- you know, here's what we have now, but what turns out           
 to be the evidence in front of us is something entirely different.            
 There's no pressure on us, or among us, to say that once we've                
 brought a charge we have to carry it out or else we'll look dumb.             
 If we were worried about how we looked we wouldn't be doing this.             
 There's no -- there's -- in the Jacko case, as I recall, we brought           
 a number of claims.  And in the end, I think maybe only two of                
 those proved out.  And we didn't feel like that had been a failure.           
 We felt like we'd done what we needed to do.  The model of using a            
 commission or committee to do both the charges -- the                         
 investigation, the charges and then the hearing, is one that's used           
 elsewhere.  And there are two examples that I could find by running           
 through my book real quickly without doing legal research on this             
 is, as I understand, the APOC committee -- the APOC, the first                
 stages of investigation are done by the staff, but the commission             
 itself does the probable cause determination and then it does the             
 hearing.  The Judicial Conduct Commission does all the stages.                
 They do investigation, they do probable cause and then they do the            
 hearing.  The alternative to that, and I'm -- I'm not opposed to              
 it, but I think an alternative to that is something a lot more                
 expensive than what we have now.  This Ethics Committee is a                  
 shoestring operation.  We have a part-time staff.  We keep telling            
 her she's part-time, although she doesn't get to work part-time;              
 she has to work all the time, and then volunteer members, and we              
 don't get paid.  We -- you know, we run on practically nothing.  If           
 you want to have independent staff do investigation, or if you want           
 to go to an executive-director-with-staff model that makes a                  
 recommendation to a committee that meets once in awhile, it's going           
 to be a lot more expensive.  You have the weigh the benefit of that           
 with what we're talking about here.  If you look at the history of            
 violations or corrective action or things like that in this Ethics            
 Committee, this legislature is clean.  I grew up in Maryland.  I              
 mean, you know, there's a history of minor violations, and if you             
 want to put a lot of money into a more elaborate procedure, fine,             
 but you have to decide whether that's going to do a lot for the -             
 or do enough additional, for public and legislative faith in the              
 process.  Now, I'm close to getting to the merits.  The first thing           
 I want to say is, listening to Representative Sanders yesterday, I            
 thought it was very unfortunate that he never made these arguments            
 or explained himself to us.  The first time we heard this was on              
 Gavel to Gavel yesterday.  How much better off we all would have              
 been if he could have admitted to us that he wrote the letter, and            
 explained why, instead of us having to go through -- Susie and Mike           
 Spaan went through all these hoops and things to try and                      
 demonstrate to us that the letter came.  And if, instead of going             
 through this taking the Fifth Amendment, going through this                   
 evidentiary 'round-the-corner stuff, the lawyers could have debated           
 the distinction between non-governmental and legislative.  We could           
 have had a hearing on the law or the questions of policy instead of           
 whether the Fifth Amendment applied.  But here we are.  Our                   
 committee did the best it could with the evidence we had in front             
 of us.  I'm afraid that what we've brought to you is a circus.  We            
 had a lot of wild allegations about the committee.  We've had a               
 committee defending its every decision, [indisc.] here.  We have              
 public attention on this way out of proportion to what happened.              
 And I'm sorry, but it wasn't because we wanted it that way.  We               
 have to look at Representative Sanders' role in creating that.  I             
 don't think it's fair to suggest that if this committee or the                
 legislature finds a violation for Representative Sanders here that            
 you're all condemned, to raise some sort of specter of mass                   
 condemnation of innocent letters you all have written.  The                   
 committee is on record in favor of constituent communication as               
 being a legislative function.  We've said that it's all right to              
 use staff time to address Christmas cards.  We've said it's okay to           
 write letters to high school graduates.  I don't know about the               
 people cleaning up Campbell Creek, but -- you know, it's -- that is           
 not the problem here.  Listening to Senator Stevens, I couldn't               
 think of a more appropriate thing for a member of the legislature             
 to do.  The Ethics Act draws a line between governmental actions              
 and political party, or campaign activities.  This letter is on the           
 political party side of that line.  This letter, that we're talking           
 about here, thanks Republican residents in Representative Sanders'            
 district for their participation in an exclusively Republican party           
 event.  It's not even a part of the state candidate selection                 
 process.  It wasn't voting at a primary.  It wasn't being a                   
 delegate to a convention.  It was participating in a straw poll on            
 a presidential candidate influence situation.  This is a party, a             
 partisan purpose, not a government purpose.  Now, Representative              
 Sanders could certainly have written this letter without any                  
 complaint from us if he didn't use state resources and money to do            
 so.  But what he did use is two staffers significant time.  I think           
 it's important to remember here that we're talking about staff time           
 in addition to postage.  He used the state letterhead, the                    
 authority of his position in this legislature.  And if you                    
 remember, Senator Jacko got himself in trouble for using his                  
 position by -- just by calling up and saying, "Hello, I'm Senator             
 Jacko", it's not even a question of letterhead.  And he used his              
 accountable office account.  The question that I think the                    
 committee and the -- the Rules Committee and the legislature has to           
 consider:  Is it all right for a legislator to use his office or              
 position, his employees and the state postage for a political party           
 purpose.  In the committee's view, the statute says no.  It says              
 you can't use it for a non-governmental purpose.  Now, the                    
 distinction that Representative Sanders raised between the                    
 legislative purpose language we used in our discussion in the -- in           
 the decision is a valid and interesting issue.  And I would love to           
 have heard debate about it at the hearing.  But we think here, in             
 this case, that distinction between those things is without                   
 importance because a party purpose is not a governmental purpose.             
 Representative Sanders raised the point about private benefit.  The           
 statute reads, "non-governmental purpose or private benefit."  And            
 he's -- in his view, the question was; did that private benefit               
 only mean his financial benefit.  The committee has found to the              
 contrary in the past.  We found Senator Jacko in violation for                
 using his position, not staff or postage, his position to attract             
 female attention, not a financial benefit, let's put -- say it that           
 way.  I think also that you need to look at charges two and three,            
 which are on page 5 of the decision, which I put a paper clip on so           
 I could turn to it right away.  And now, let me just read the                 
 statutes here for you.  In charge three, Representative Sanders               
 required an employee to assist in political party or candidate                
 activities, campaigning or fund raising on government time.  I                
 think that -- I don't know how you -- how you individually feel               
 about governmental or non-governmental purpose, but under this                
 section of the statute, which is a separate section, the question             
 is, isn't this a political party activity.  And to the committee's            
 way of thinking, it was.  Let me also address the questions of                
 sanctions here because I know there's concern that the sanctions              
 seem inappropriately severe given the size of the -- the nature of            
 the violation.  There are a couple of things to think about here.             
 First, the committee had no evidence from Representative Sanders              
 about why -- what he thought, what his situation was, whether he --           
 you know, which part of the handbook he read, or anything like                
 that.  He chose to tell us nothing and we were bound to deal with             
 the evidence we had before us.  What we did see was a pattern of              
 not only failure to cooperate with the committee but an effort to             
 make the committee go through as many hoops and to spend as much              
 money as possible, as far as I could see, in efforts to keep the              
 committee from functioning.  We looked at the prior cases that he'd           
 had.  In the first one, Representative Sanders wrote a letter to us           
 in response to a request for corrective action, and in his                    
 newsletter to his constituents, he misrepresented what the                    
 committee had done.  He did it again yesterday.  If you read that             
 decision, you see that it was not just a question about him using             
 his -- the note pads, but a question of his using a state employee            
 for his -- to conduct his personal business, to solicit business              
 for his print shop.  That is not the story that Representative                
 Sanders tells.  So we imposed corrective action in that case.  We             
 got a letter, and then we got, essentially, renunciation of that              
 letter.  And then in the second case, which was a really minor,               
 minor case, a violation, but tiny, we got a more grudging letter of           
 -- that he would be happy to come to our training, he was glad we             
 invited him.  So now, when we had to look at our -- look at                   
 sanctions, we knew the first thing we weren't going to do was we              
 weren't going to ask for a letter.  We'd been that route a couple             
 of times and it wasn't working.  And we thought about -- that what            
 was happening was essentially an injury to the legislators.  We               
 were concerned that not only had Representative Sanders spent some            
 amount of state resources, state money, or the public's money, on             
 what we thought was a political party activity, but that he had               
 brought some disrepute on you all.  And so we thought an apology to           
 the legislature would be the way to deal with the letter issue; the           
 question of taking responsibility for his actions.  The                       
 reimbursement, if we had simply asked for reimbursement alone, we             
 were in a situation of allowing someone to buy, or permit to                  
 violate the -- to violate the Ethics Act.  Oh, gee, I'll violate it           
 and then I'll just pay the money and it'll be all right, and if               
 they don't catch me, I'm fine.  So, that alone was not a sufficient           
 sanction.  We put in the -- the question about the sanction about             
 using the accountable account or non-accountable account as a                 
 preventative matter so we wouldn't have to have that problem come             
 up again.  And we asked that he have a written policy about the use           
 of staff time.  That's a standard thing we've done in corrective              
 actions, and so forth.  So, we came down to -- those were sort of             
 standard corrective actions activities.  We felt that given the               
 lack of cooperation and the prior cases on misuse of state                    
 resources, some other punitive sanction was appropriate and these             
 are the two we came up with.  I have a concern that my appearance             
 here tonight, and my discussing with you frankly, what went into              
 our decisions is bad precedent.  I think that exhaustive inquiry              
 into individual committee members and analysis of decisions made              
 time and again, if it were done again, would damage the process;              
 would drive off committee members and destroy the independence that           
 the Ethics Committee has and that you all rely on.  I don't want              
 any other chair of any committee to have to do this.  I think                 
 there's only one other thing I -- I want to say in my remarks.  I             
 appreciate the committee's indulgence for letting me talk so long.            
 And this is back to a personal point.  I am not Jewish, but there             
 are people dear to me who are, people whose -- who have lost their            
 families in Germany and Eastern Europe under the Nazis.                       
                                                                               
                                                                               
 TAPE 97-3, SIDE B                                                             
 Number 001                                                                    
                                                                               
 MS. MACNEILLE (continued): ... think to characterize anything that            
 goes on in this proceeding, or in this legislature as somehow                 
 analogous to what happened there is to trivialize their suffering.            
 I know that it's of considerable concern to different ones of you             
 about how to change the legislation or how to change the ethics act           
 -- possible legislative changes.  I'm open to questions on that,              
 I've done -- and -- or anything else the committee would like to              
 ask.  I thank you for your -- your patience in hearing me.                    
                                                                               
 CHAIRMAN KOTT:  Thank you.  That concludes your testimony, and                
 Susie do you have anything you want to add at this time?                      
                                                                               
 SUSIE BARNETT, PROFESSIONAL ASSISTANT, SELECT COMMITTEE ON                    
 LEGISLATIVE ETHICS:  I'm here to answer questions.                            
                                                                               
 REPRESENTATIVE KOTT:  I hope the committee has some questions for             
 you.  Representative Porter.                                                  
                                                                               
 Number 023                                                                    
                                                                               
 REPRESENTATIVE BRIAN PORTER:  Thank you Mr. Chairman.  Margie, to             
 say that serving on the Legislative Ethics Committee is a thankless           
 job is probably the understatement of the year, and I have the                
 ability that members of this committee don't have because I served            
 with you for two years.  Probably the -- the only benefit that                
 accrues to the public members of the Ethics Committee is that they            
 can't have yard signs ...                                                     
                                                                               
 MS. MACNEILLE:  [Indisc.] a benefit, I agree ...                              
                                                                               
 REPRESENTATIVE PORTER:  ... that is far outweighed by everything              
 else.  And I think it's only fair for me -- I feel compelled to say           
 that having served on this committee with the same five public                
 members that are there now that -- that two years was an education            
 process for me on just how difficult these kinds of things can be,            
 especially given, as we noted, I think, in the first thing that               
 came in front of the committee that the statute was woefully full             
 of holes.  We had a list when I left about this long of things that           
 we wanted to change and I'm sure it's longer now.  And I think as             
 an adjunct to a resolution to this particular thing we would want             
 to re-enter that fray either through this committee or some other -           
 - really take a look at filling those holes so that your job can be           
 a little bit easier.                                                          
                                                                               
 REPRESENTATIVE PORTER:  To me this case basically comes down to two           
 things, and that is, one; the merits of the allegation, and two,              
 the participation by Representative Sanders in the process.  I                
 guess, I bite my tongue when I say it, but I almost wish that I had           
 been on the committee when this came because I would be really                
 interested in knowing the -- to the extent that you can, the debate           
 and the thought of balancing what on one hand is a pretty important           
 constitutional right of free speech and communication with the                
 notion that governmental, non-governmental activities equals                  
 political, equals bi-partisan, which equals a violation.  Can you -           
 - I don't know how much of that you can share, but ....                       
                                                                               
 Number 122                                                                    
                                                                               
 MS. MACNEILLE:  I guess we talk about, you know, what was in the              
 committee's mind.  Lots of times I don't have a clue, you know.               
 There are a lot of us and we have a lot of minds.  All I can say is           
 what we agree on when we're done.  To me, the key here is who paid            
 for the communication, not the communication itself.  Do I think              
 it's, generally speaking, without a question of who paid for it.              
 Okay for Representative Sanders to send that letter to people?                
 Sure.  Do I think it's okay to use state staff and money to do it?            
 No.  And so to me, I don't see a free speech problem, I see a money           
 problem.  I hesitate to say what went through everyone else's                 
 minds.                                                                        
                                                                               
 REPRESENTATIVE PORTER:  Well Margie, I don't have any other                   
 particular questions except to say I'm sorry that you guys have to            
 go through all of this.  We'll get through it and get onto the next           
 one.                                                                          
                                                                               
 Number 181                                                                    
                                                                               
 MS. BARNETT:  And we had a lovely flight down.  It was sunny.  It             
 was great.                                                                    
                                                                               
 CHAIRMAN KOTT:  Further questions?  Speaker Phillips.                         
                                                                               
 Number 187                                                                    
                                                                               
 REPRESENTATIVE PHILLIPS:  Thank you, Mr. Chairman.  And I have lots           
 of questions.                                                                 
                                                                               
 MS. MACNEILLE:  Good.                                                         
                                                                               
 REPRESENTATIVE PHILLIPS:  So please bare with me.  I'm going to go            
 -- I -- I hope I've written them down as you spoke.  The first                
 question I have to ask, and I'll have to jog your memory going back           
 in the record.  And I'm looking at a record of the House Joint --             
 Joint House and Senate Judiciary Committee meetings of February 4th           
 in 1993, and that was a confirmation hearing.  And I -- and what              
 I'm going to try to get to in -- in the root of my question is the            
 issue of appearance of conflict of interest.  The idea that there             
 is a possible conflict of interest in your position that we did not           
 correct in the law.  So that's where I'm going to try to get to in            
 my question.                                                                  
                                                                               
 REPRESENTATIVE PHILLIPS:  In the record, Chairman Taylor, Robin               
 Taylor, Senator Taylor, asked you about your husband's law firm               
 contractual relationship with the state.  You replied that you had            
 filed a request for a non-confidential advisory opinion about that            
 confidential -- that contractual relationship.  What I want to know           
 is, who did you file that request with?  Do you have a copy of that           
 record?  Do we have -- can we have a copy of that record?  But, who           
 did you file it with?                                                         
                                                                               
 Number 242                                                                    
                                                                               
 MS. MACNEILLE:  Okay.  I'm -- I'm  more than happy to -- to address           
 that.  I have -- you have to understand, I -- I don't have an                 
 office, I just have my house.  I fax everything to everybody so I             
 end up with the originals.  I have the original request for the               
 advisory opinion, which is addressed on January 12th, to the Select           
 Committee for Legislative Ethics, which at that point didn't really           
 exist because it didn't have any members.  And I telecopied it to             
 Terry Kramer at -- I always get this wrong -- which, Legal Affairs            
 ...                                                                           
                                                                               
 REPRESENTATIVE PHILLIPS:  Legislative Legal Affairs ...                       
                                                                               
 MS. MACNEILLE:  ... Legislative Legal, on -- on the 12th day of               
 January 1993.  And then -- and my confirmation hearing,  I had this           
 in front of me and I read whole chunks of it into the record and              
 discussed it.  I remember specifically Senator Taylor saying,                 
 "Well, gosh we think Julian's great, go for it", I mean, something            
 like that.  There was -- it was clear that that question was raised           
 and -- and there wasn't any particular problem raised.  The reason            
 it came up was not addressed specifically as a conflict of                    
 interest, but there is this provision in the statute limiting what            
 family members of legislative employees, which we count as, can do            
 as far as the state's concerned.  And so there was a -- there was             
 an issue there ...                                                            
                                                                               
 REPRESENTATIVE PHILLIPS:  And that's -- that is the issue I want to           
 get to ...                                                                    
 MS. MACNEILLE:  Okay.  And then ...                                           
                                                                               
 REPRESENTATIVE PHILLIPS:  ... and you -- and you have said, in your           
 -- in your testimony, you have said that you have requested --                
 okay, so the first time you asked for a request for an advisory               
 position on whether or not you were in conflict of interest was               
 from the Ethics Committee and from the Legislative Legal Affairs.             
                                                                               
                                                                               
 MS. MACNEILLE:  Yeah.  I filed -- yeah ...                                    
                                                                               
 REPRESENTATIVE PHILLIPS:  And subsequent years, who did you file              
 that request with?                                                            
                                                                               
 Number 320                                                                    
                                                                               
 MS. MACNEILLE:  In April 15, 1993, the Ethics Committee, which by             
 then was functioning, Joe Donahue was the chair, held a meeting               
 about this and issued an advisory opinion which was public and                
 published ...                                                                 
                                                                               
 REPRESENTATIVE PHILLIPS:  And so, subsequent years, did you file              
 your request with the Ethics Committee?                                       
                                                                               
 MS. MACNEILLE:  Yes, I did.                                                   
                                                                               
 Number 332                                                                    
                                                                               
 REPRESENTATIVE PHILLIPS:  Mr. Chairman, I think that this is one of           
 the basic problems of what we're dealing with because in no where             
 in the law, that I am able to find, is there ever the provision               
 that it should be a member of the Ethics Committee, going to that             
 Ethics Committee to see if there is a conflict of interest.                   
 Certainly that request should have come back to the legislature.              
 The legislature wrote the law.  The legislature would have had the            
 intent of the law.  And I think that is a basic problem because               
 Mrs. MacNeille, you say you don't have -- MacNeille, I'm sorry --             
 you don't have any idea of when your husband gets paid or anything            
 -- any of that.  But in 1995 your husband received $289,000 from              
 the State of Alaska.  And in 1996 he received over $300,000 from              
 the State of Alaska.  Now certainly these payments have nothing to            
 do with the -- with the Hickel or the Cowper, or any other                    
 administration.  They are with the current administration.  You are           
 a state employee.  Your husband is taking -- I mean, you ...                  
                                                                               
 MS. MACNEILLE:  I am not a state employee.                                    
                                                                               
 REPRESENTATIVE PHILLIPS:  You are not a state employee.  But you              
 are -- and -- you are working for the State of Alaska.  And in this           
 case there is, in my mind, an appearance of a conflict of interest.           
  The appearance is there.  And I think, Mr. Chairman, our problem             
 here is the fact that we didn't make this a specific point at all             
 in the law.  We didn't say to the Ethics Committee, if you have a             
 problem with the appearance of a conflict, it must come back to the           
 legislature who wrote the law, who made the intent on the law.                
 And so that's one question.  That's one issue.                                
                                                                               
 MS. MACNEILLE:  Speaker Phillips, I might -- you all reconfirmed me           
 I believe in 1995 ...                                                         
                                                                               
 REPRESENTATIVE PHILLIPS:  Right, right ...                                    
                                                                               
 MS. MACNEILLE: ... so, I've come around again on this issue ...               
                                                                               
 REPRESENTATIVE PHILLIPS:  ... but -- but -- the -- we never                   
 received a -- I never saw a formal request, shall you -- shall this           
 be declared a conflict or not.  I never saw that.  And  you know,             
 that's possibly my own fault.                                                 
                                                                               
 MS. MACNEILLE:  Well, I -- I just did everything that was in my               
 power to do, to flag the issue and I don't think there are any                
 surprises.                                                                    
                                                                               
 REPRESENTATIVE PHILLIPS:  Right, and I'm not -- you know, I'm                 
 saying this is something that I think we have a problem in the law,           
 and this needs to be clarified.  I have a whole bunch of other                
 questions, Mr. Chairman, can I continue?                                      
                                                                               
 CHAIRMAN KOTT:  At this point I'd like to ask you to hold those in            
 abeyance and we'll take a five minute recess.                                 
                                                                               
 [The committee went off record at 7:04 p.m. and resumed at 7:17               
 p.m.]                                                                         
                                                                               
 CHAIRMAN KOTT:  Call the House Rules Committee back into session              
 and I will again remind you, you're still under oath.                         
 Representative Phillips -- Speaker Phillips.                                  
                                                                               
 Number 445                                                                    
                                                                               
 REPRESENTATIVE PHILLIPS:  Thank you Mr. Chairman.  These committees           
 -- or these next questions -- series of questions are going to be             
 on the law itself, so either of you please feel to answer.  We all            
 have recognized, over the years, that there exists a problems with            
 decisions -- ethics charges and decisions that come down during a             
 campaign season.  And the champaign season let's say being from oh,           
 at least July through the election in November.  Have you -- have             
 you investigated whether or not that there is any flexibility in              
 the law itself, or have you come to any kind of conclusions as how            
 the law might be changed that would allow you to take the election            
 season into consideration as you're making your time-lines?  And,             
 you know, I can follow your time-line and see that it was almost              
 impossible to get this in.  But in the middle of all of these                 
 schedules there was an election season and that becomes a very                
 divisive thing on these kind of decisions.  So, have you -- have              
 you, as a committee, considered that?  Have you thought of any kind           
 of changes that should be made?  Anything.                                    
                                                                               
 MS. MACNEILLE:  Yeah.  I'd love to address that.  When I was on,              
 what I call the old committee, under the old ethics law, there was            
 I believe a 30 day -- 45 day, I can't remember, exclusion in the              
 statute that said that the committee couldn't accept any complaints           
 under a certain time period, before the election, and in fact                 
 complaints were sent back because of that.                                    
                                                                               
 REPRESENTATIVE PORTER:  Sixty ...                                             
                                                                               
 MS. MACNEILLE:   Sixty.  And -- and then this statute doesn't have            
 that in it.  I don't think it's -- I'm speaking for myself,                   
 personally, because, you know, the committee hasn't formally                  
 addressed its legislative package for this year.   We were going to           
 do that today at 1:00, except we were in the air.  But, for me                
 personally, I don't want to see the Ethics Committee used as a                
 political football.  And I don't have any trouble.  I think it's a            
 fine idea to have some kind of blackout period before the election            
 on accepting complaints.  The last thing that I want to see as an             
 Ethics Committee member is somebody filing the week before                    
 election, you know, getting a lot of press out of it, and then                
 we're left to clean up the mess, you know, much later.  And maybe             
 it's garbage, maybe it's not.  And it can be used -- the -- we can            
 be offensively and defensively, and I don't want to be used either            
 way.  So, I think that -- that should the legislature choose to do            
 that, it would probably be a good idea.  I would be concerned if              
 there were some kind of moratorium put on the committee doing                 
 anything because July to November, or some period like that is, you           
 know, a big chunk of the year.  I -- I was joking about [indisc.--            
 coughing.] like halibut openers, you know, we have 24 hours to get            
 complaints in and then we'll close it cause elections -- the                  
 primaries, the elections -- I think the legislature has to balance            
 the functioning of the committee with the size of the blackout                
 period you wanted to use.  But I -- I share your concern, and -- my           
 personal point of view, an amendment like that would be a great               
 idea.                                                                         
                                                                               
 Number 595                                                                    
                                                                               
 CHAIRMAN KOTT:  Any further questions?                                        
                                                                               
 Number 598                                                                    
                                                                               
 REPRESENTATIVE PHILLIPS:  And again, on the law as it -- the law              
 that we have on the books today that you must operate under -- and            
 I want to go to the subject of the hearing officer or the                     
 arbitrator or the master and, you know, whatever you're going to              
 call that person.  And I understand that you made a request of                
 Representative Sanders' attorney to -- to get with you on -- go               
 through the names, and to get with you -- and so there was a time-            
 line involved there.  They couldn't do it within a certain period             
 of time.  I think what I'm trying to get to -- does the law allow             
 you to, independently, make that decision on who that person will             
 be?  Or is the law not specific -- I mean, is the law specific or             
 not, that both parties should be taken into consideration when you            
 make the choice on the arbitrator or the master, or the hearings              
 officer as is the normal case when you are doing arbitration.  You            
 have an agreement from both.  But, does our law not cover that?  Is           
 the law not clear on that?                                                    
                                                                               
 MS. MACNEILLE:  The statute says we can hire people, but doesn't              
 say anything about hearing officers.  We have procedures which were           
 adopted, you know, back on the senate side, when we were in that --           
 in that formal hearing, about how we select hearing officers.  And            
 it provides that we give a list to both sides, and that our                   
 decision is final.  We haven't ever -- we've only chosen them                 
 twice, but we haven't ever chosen somebody -- say we couldn't have,           
 you know, beforehand, we've never gone through someone marked off.            
 So ....                                                                       
                                                                               
 Number 678                                                                    
                                                                               
 REPRESENTATIVE PHILLIPS:  So that it would be a -- possibly another           
 area of the law that we should be looking at, as far as clarifying            
 what -- the process.                                                          
                                                                               
 MS. MACNEILLE:  If -- if you wanted to, sure.                                 
                                                                               
 REPRESENTATIVE PHILLIPS:  Yeah.  Okay.                                        
                                                                               
 Number 688                                                                    
                                                                               
 CHAIRMAN KOTT:  On that point, since we're talking about hearing              
 officers, when you selected Mr. White as the hearing officer, was             
 there any consideration given to the fact that he may be                      
 politically connected, or made political contributions, or was                
 somewhat or somehow involved with a political party, or anything of           
 the nature, or perhaps even a conflict of interest?  I mean, do you           
 go through that litany of discussion?  I seem to recall that there            
 was some contributions given.                                                 
                                                                               
 MS. MACNEILLE:  Okay.  Let me go back to our time-line here.                  
 October 8th we sent the list out to -- to Mr. Syren and Mr. Spaan,            
 and that was the day that Susie started contacting the people on              
 that list.  As I said, it was an old list we had from the Jacko               
 proceeding, to -- to ask each one if they were available [indisc.]            
 charge, and whether they would have any political involvement, or             
 any problem with living up to the part of the statute that says, if           
 you're an employee of the committee you can't do it, you can't make           
 contributions, you can't put up yard signs.  You know, the whole --           
 the whole thing, and Susie can tell you about her discussions with            
 the people on the committee -- on the -- on the list, particularly            
 Mr. White.                                                                    
                                                                               
 MS. BARTLETT:  With each of the people that are ...                           
                                                                               
 CHAIRMAN KOTT:  Susie, would you identify yourself for the ...                
                                                                               
 Number 754                                                                    
                                                                               
 MS. BARNETT:  Susie Barnett, Staff to the Legislative Ethics                  
 Committee.                                                                    
                                                                               
 CHAIRMAN KOTT:  Thanks.                                                       
                                                                               
 MS. BARNETT:  With the people that I contacted from -- the list was           
 originally developed three years ago and has been changed due to              
 people moving, etcetera.  When I talked to them I would ask them if           
 they first had any conflicts in this case with Representative                 
 Sanders:  Did they give money to his opponent, did they give money            
 to him, did they -- were they involved in his opponent's campaign             
 or his campaign.  So that was, of course, key importance.  Also,              
 then, I asked them about whether they had any conflicts with Lester           
 Syren, Representative Sanders' attorney, and then further conflicts           
 are, are you involved in legislative campaigns, are you -- you                
 know, the code reads legislative campaigns.  No, no, no.  Do you              
 make contributions, have you made -- and I want to be clear about             
 this because my question to them is, have you made contributions to           
 political campaigns.                                                          
                                                                               
 MS. BARNETT:  So I come -- I cleanse the list and go through and              
 find people who, yes, at this point in time, you know, actually no            
 one on the list had any conflicts with Representative Sanders or              
 his opponents.  Some people had said, yes, I'm actively involved              
 in so and so's campaign, or such and such -- or, you know, I've               
 become involved.  So, I end up with a list.   Mike White                      
 specifically was on that list.  No conflicts.  Now, I did not ask             
 Mike White -- it didn't even occur to me with any of these people.            
 And certainly it's something I will do in the future.  But to say,            
 does your firm contribute to -- so that there is a clarification              
 there that -- that I -- I would not want to have anyone be mislead            
 that, that ...                                                                
                                                                               
 CHAIRMAN KOTT:  Representative Porter.                                        
                                                                               
 Number 850                                                                    
                                                                               
 REPRESENTATIVE PORTER:  Just to that point, you won't have to                 
 because the law has changed now and firms will not be able to make            
 [indisc.--simultaneous-laughter].                                             
                                                                               
 MS. BARNETT:  Well, thanks.  One last thing to do.  I like that.              
                                                                               
 CHAIRMAN KOTT:  Representative Elton.                                         
                                                                               
 Number 858                                                                    
                                                                               
 REPRESENTATIVE KIM ELTON:  Mr. Chair, something you can help me out           
 with maybe before I decide whether to ask a follow-up question or             
 not.  I mean, I'm -- I'm experiencing a certain amount of unease              
 that we're straying from H96-02, and into things that maybe should            
 be discussed, but maybe discussed in another forum.  I mean, I                
 appreciate the fact that this is a relatively new ethics procedure,           
 and hopefully that it evolves over time.  But I'm not sure about              
 the relevance of -- of the process and what we can do to -- to --             
 to fine tune the law in front of us.  And so I'd like to have you             
 maybe explain what the latitudes are here, and then I'll make up              
 mind whether I need to ask a follow-up question.                              
                                                                               
 CHAIRMAN KOTT:  Well certainly, since we are dealing with a time-             
 line, we have -- we have discussed Mr. White as the hearing                   
 officer.  I have given this committee, and Margie, some latitude in           
 straying.  When you stray too far you'll know.                                
                                                                               
 REPRESENTATIVE ELTON:  Okay.  But I don't think this strays too far           
 then, Mr. Chair, if -- if I can ask a follow-up question then.                
                                                                               
 CHAIRMAN KOTT:  Please.                                                       
                                                                               
 REPRESENTATIVE ELTON:  What -- what would have happened if                    
 Representative Sanders, or Mr. Syren, his attorney, had said, "You            
 know, look it, I think we have a problem with Mr. White."  Would --           
 would  Mr. White have been struck at that point in time, or would             
 you have had to make another determination, either at the staff               
 level or the committee level, on whether or not to strike Mr. White           
 or would he have just been gone?                                              
                                                                               
 Number 940                                                                    
                                                                               
 MS. MACNEILLE:  I'll speak to that cause I was the -- I was the               
 person with the buck at that time.  If, on October 11th, either Mr.           
 Syren or Mr. Spaan had sent a list saying, you know, not this                 
 person, not this person, not this person, I would have gone from              
 the people that were listed.  After October 11th, after I had made            
 the selection, Representative Sanders' attorney did raise what I              
 thought was way too tenuous a claim of conflict that -- that                  
 Michael White had.  But if just for -- you know, for whatever                 
 reason, I had gotten back the list on October 11th and Mike White             
 scratched off, I wouldn't have used him, you know.  I was looking             
 for somebody [indisc.--coughing] I turned away from David Stewart,            
 who -- who I knew would do a good job, to try and go as far as they           
 could to have no appearance of problem.  And -- and I -- I just --            
 I was trying to make this as easy and smooth as I could.                      
                                                                               
 REPRESENTATIVE ELTON:  Thanks, Mr. Chairman.                                  
                                                                               
 Number 995                                                                    
                                                                               
 CHAIRMAN KOTT:  Representative Phillips ...                                   
                                                                               
 REPRESENTATVE PHILLIPS:  Thank you, Mr. Chairman ...                          
                                                                               
 CHAIRMAN KOTT:  ... Speaker Phillips.                                         
                                                                               
 REPRESENTATIVE PHILLIPS:  Again, this -- either one of you answer             
 this because it pertains to the law itself, and unfortunately in my           
 opinion, one of the great ambiguities of the law, which is only our           
 fault, only ours because we wrote the law.  It is the issue of the            
 definition of non-governmental purpose, versus your interpretation            
 of legislative purpose.  Do the law -- in your mind, is the law               
 clear on what you can determine to be a non-governmental purpose              
 and then you came in and used the definition, legislative purpose,            
 and I'm wondering where did you pick up legislative purpose.  I               
 think the statute says non-governmental purpose.  But in your -- in           
 your understanding of the law itself, is there any definition of              
 those two terms, and -- and why did you choose legislative versus             
 non-governmental?                                                             
                                                                               
 MS. MACNEILLE:  Let me see if I can answer that.  Is there                    
 definition of non-governmental purpose?  No.  I mean, it's -- the             
 thing that the Ethics Committee struggles with all the time, and              
 you all get impatient with us, and -- and I don't blame you, is               
 that this is a, you know, the whole thing is a fuzzy area.  There's           
 no way -- it says in the preamble itself, there is no way you can             
 describe all the circumstances and every day people come up with              
 things and put Susie on the spot, say, well what about this                   
 situation.  You're going to have to try and figure it out.  It is             
 exceedingly difficult to draw any kind of black and white line.               
 The question is, did we, in this decision, inappropriately, you               
 know, shift from non-governmental to legislative.  I -- you know,             
 when I heard that yesterday I thought, well gosh, what's -- you               
 know, let me think about that.  [Indisc.--coughing.]   And I think            
 it's an issue we need to discuss as a committee.  But when I looked           
 at what we did in this case, in this case I don't think there's a             
 difference.  I can imagine cases where there is a difference.  And,           
 you know, we'll stick to our knitting then, we'll go back to non-             
 governmental, but it doesn't mean it's easy to define.  And that's            
 a problem with this.                                                          
                                                                               
 Number 1127                                                                   
                                                                               
 REPRESENTATIVE PHILLIPS:  And the next point that I wanted to bring           
 on this issue, I think, is the biggest question of all that must be           
 answered.  If we were not a legislator, we would not be doing these           
 -- these deeds.  If we were not a legislator, we would not be                 
 sending a letter to a constituent thanking them for being part of             
 a process.  I would not be sending a letter to high school                    
 graduates congratulating them on getting a diploma and sending them           
 a voter registration form.  I would not be sending letters to                 
 longevity bonus recipients advising them of something going on in             
 the process.  If we were not legislators we would not be doing                
 that.  Therefore, you carry the argument to the fact that we are              
 legislators.  This becomes part of our legislative or governmental            
 responsibility.  And I think that is -- really begs a clarification           
 -- main clarification, because we wouldn't be doing these things if           
 we weren't legislators.                                                       
                                                                               
 MS. MACNEILLE:  I think that we have to be careful in using that              
 analysis because if you say that you -- you wouldn't do it unless             
 you were a legislator, and therefore, if you are a legislator and             
 you do it, it's okay, you don't need us.  You're there.   You know,           
 everything you all do as legislatures is -- must be because of your           
 legislative status, and -- and so it's alright.  If that's the test           
 you use, you know, it's -- it -- it doesn't give any guidance or --           
 or comfort to the public about the use of resources.                          
                                                                               
 Number 1226                                                                   
                                                                               
 REPRESENTATIVE PHILLIPS:  I think everything we -- we've put on the           
 record, and every thing we asked brings up more of the problems               
 that we have.  And you are absolutely right, because every time an            
 issue is raised, the law is being interpreted and clarified.  And             
 there's no other process of getting to that point unless we make              
 these clarifications.  Mr. Chairman, I have one more question that            
 I'd like to ask, and then I'll wait and see if anybody else asks.             
                                                                               
 CHAIRMAN KOTT:  Please.                                                       
                                                                               
 REPRESENTATIVE PHILLIPS:  You made a statement in your closing                
 remarks that you were very, very uncomfortable, and that you                  
 believed that this was setting bad precedence that you are here               
 before us this evening.  That this is not the way the process                 
 should operate; that the Ethics Committee, itself, should be                  
 protected and -- and stay separate from the legislative function.             
 What do you feel would be an appropriate change to the law to                 
 protect the process?                                                          
                                                                               
 MS. MACNEILLE:  Okay.  I'm -- I'm sorry, I guess I didn't make                
 myself clear, because I do think it's appropriate for the House to            
 refer this to a committee and -- Rules Committee -- the Rules                 
 Committee to -- to look at it.  What I was being uncomfortable                
 about is that tonight I've been a whole lot more forthcoming and              
 explaining what it was that went on in my mind, and other people's            
 minds, that I've ever done by any ethics thing before.  You know,             
 just to inferiorate  reporters and not -- you know, say nothing,              
 and nothing and nothing.  And I'm just hoping that after this                 
 effort to -- to really open up what we've done, that it won't be              
 needed in the future.  And that -- that further chairs of                     
 subcommittees won't have to go through this detailed a process.               
 That's -- that was my concern, not that it was inappropriate for              
 you all to have ...                                                           
                                                                               
 REPRESENTATIVE PHILLIPS:  Are you referring to the detailed process           
 on defining your time-line?  Because certainly, these questions               
 that we're putting on the record, are a part of the ...                       
                                                                               
 MS. MACNEILLE:  Oh, yeah ...                                                  
                                                                               
 REPRESENTATIVE PHILLIPS:  ... process that needs to be addressed.             
                                                                               
 MS. MACNEILLE:  No, I'm -- I'm not -- I'm -- I'm not suggesting at            
 all that your -- the questions are inappropriate.  I'm happy to               
 the arrangement ...                                                           
                                                                               
 REPRESENTATIVE PHILLIPS:  So you're talking about ...                         
                                                                               
 MS. MACNEILLE:  ... I'm happy to discuss ...                                  
                                                                               
 REPRESENTATIVE PHILLIPS:  ... the detail on the time-line.                    
                                                                               
 MS. MACNEILLE:  Yeah.  And the stuff that I volunteered.  I just              
 feel like it was incumbent on me, given what had gone on in this              
 committee before, to make that kind of detailed defense of the                
 committee.  But I was hoping that in the future that -- that kind             
 of thing wouldn't be necessary.  I'm not suggesting that there                
 should be some legislative change to prevent that from happening,             
 because I came here voluntarily and opened my mouth and talked, you           
 know.  I may have said a lot more things than I should have said.             
 I don't know.  There's -- on that line, there's one more thing I              
 must say because I forgot to say it before.  I wanted to thank the            
 committee deeply for choosing not to stay in executive session                
 yesterday.  And for having Representative Sanders have this                   
 discussion of me in public because these concerns had been                    
 circulating for some time.  And I really appreciate the opportunity           
 to address them in public, and not have them dealt with in secret.            
 And I -- I really want to thank each and everyone of you for that.            
                                                                               
 Number 1410                                                                   
                                                                               
 REPRESENTATIVE ELTON:  Thanks, Mr. Chair.  I -- I -- I too have a             
 series of questions, but -- but I -- I think I want to say first              
 that I agree with Representative Phillips about the nub of the                
 questions on being, is this an activity that we would have done if            
 we weren't in the legislature.  And -- and I don't -- I think it's            
 difficult to assume what the deliberations were.  It -- it is -- as           
 we begin the process of making the deliberations and executive                
 session after -- after the hearing.  But I'm -- I guess one of the            
 things that I would have assumed would have happened, because I               
 think most of us on this panel probably cringed yesterday when we             
 were asked, what happens if you send a letter of congratulations to           
 high school -- graduating high school seniors.  Most of us have               
 done that.  And I guess, upon reflection, I -- I -- I thought,                
 well, maybe the difference is that I sent it to the entire class of           
 graduating seniors, and I didn't send it just to republicans, or              
 just to democrats, or just to -- in my case, there are two house              
 districts and graduating seniors are from both.  But -- but that I            
 would have been okay if I had sent the letter to all the graduates.           
 But I may not have been okay if I sent it only to high school                 
 graduates who had registered as democrats.  Is -- is that a fair              
 assumption on my part?                                                        
                                                                               
 MS. MACNEILLE:  I'll answer, and then Susie, the one who has to               
 deal these things to get answer.  I -- I think the thing about the            
 letter is not just who it went to but what it was about, which is             
 a republican party function.  I don't care about republican, I                
 mean, it could be democrat or green party function.  It was a -- a            
 party function.  I think that if you want to send, you know, some             
 kind of letter to some select group of your constituents, and you             
 want to talk to them about some particular, you know, some                    
 particular [indisc.--coughing], that's fine.  It's just -- I don't            
 -- in this case, this has to do with, are you sending them a letter           
 about political party activity.  And that's the -- the focus.  It's           
 not -- you know, that's the problem.  And it's the use of the state           
 money.  And the question whether you would do this if you weren't             
 a legislator, if you weren't a legislator you wouldn't have state             
 employees to use to do this.                                                  
                                                                               
 REPRESENTATIVE ELTON:  Mr. Chair, do you want me to just keep                 
 going?                                                                        
                                                                               
 CHAIRMAN KOTT:  Please.                                                       
                                                                               
 REPRESENTATIVE ELTON:  Thanks, Mr. Chair.  What would have                    
 happened, if at anytime prior to the hearing Representative                   
 Sanders, or his attorney, came to staff or -- or came to the                  
 committee and said, "You know, I'm really confused.  I thought what           
 I did was okay.  Can somebody explain to me what the possible                 
 problem is?  And if -- if there is a problem, what can I do to fix            
 it?"  What -- what would have happened?                                       
                                                                               
 MS. MACNEILLE:  You know, the old "what if" question.  We wouldn't            
 be here, you know.  That's my view.  I, personally, longed for some           
 way to get this thing resolved other than going through this.  And            
 some way to some kind of communication.  But the method that was              
 chosen was, you know, full-dress combat.  And people make choices             
 about that, and you -- and you end up with results from them.  But            
 ...                                                                           
                                                                               
 Number 1636                                                                   
                                                                               
 MS. BARNETT:  And -- and if I could ...                                       
                                                                               
 MS. MACNEILLE:  Yeah ...                                                      
                                                                               
 MS. BARNETT:  ... add -- add to this.  One of the things that --              
 that we certainly have done on an informal basis is, if somebody --           
 for example, I got mailed, inadvertently, someone's newsletter.  It           
 had a campaign picture on it.  I didn't run to the committee and              
 say, let's go get these people.  I walked up to the legislator's              
 office and said, this is the kind of thing that could, potentially,           
 get you into trouble.  Here's why, you know, and we had a good                
 discussion about it.  End of story.  Those things, prevention and             
 education, are a huge part of our responsibility.  So we aren't out           
 -- my job is not to go out and say, okay, here's a violation,                 
 here's violation, here's a violation.  If Representative Sanders              
 had walked into me prior to any of this, and talked prior to                  
 writing the letter and talked about the letter, we wouldn't be                
 here.  We've spent a lot of time giving -- I spend a tremendous               
 amount of time providing informal advise.  If, in fact, I had told            
 him that the letter was okay -- if he came in and said, "What do              
 you think about this letter?"  And -- and -- and if I had said to             
 him, looks okay to me, go for it.  Then he and I would have been at           
 the table together in front of the committee.  And I would be                 
 sitting in his defense.  It might surprise him, but I would be glad           
 to be there because that, I believe, is my responsibility.                    
                                                                               
 REPRESENTATIVE ELTON:  And there's been some allusion to this and             
 I don't know how to say it.  But -- but, reading the transcript --            
 and I -- I got the impression that the -- the process was                     
 incredibly complicated.  And -- and may have been complicated by              
 the presence of attorneys.  And -- and so, you -- you're an                   
 attorney, right?                                                              
                                                                               
 MS. MACNEILLE:  [Indisc.--Simultaneous-laughter]. ... you want to             
 give, I'm used to it.                                                         
                                                                               
 REPRESENTATIVE ELTON:  I -- I -- tried -- I tried to figure out how           
 to frame this question.  During the transcript, and in the                    
 transcript -- I mean, there was -- there was discussion about a lot           
 of things that I, frankly, don't understand.  I mean, contempt and            
 taking the Fifth, and -- and a lot of other things.  And -- and I             
 guess one of the questions that I had about the process is -- this            
 is kind of a two-part question, Mr. Chair.  First, is it usual for            
 an attorney to represent a -- a -- a person that's a subject of a             
 complaint, as well as witnesses that -- that may shed light on the            
 complaint?  Is it normal for an attorney to represent that span of            
 clients?                                                                      
                                                                               
 MS. MACNEILLE:  Not in my experience.  But not -- you understand my           
 experience is sort of odd, I mean, I'm a public utility wire, you             
 know.  So it's ...                                                            
                                                                               
 REPRESENTATIVE ELTON:  And I don't expect you to go any further.              
 The second part of the question is -- and again, it -- it doesn't             
 matter to me if you laugh at what I say next because I don't know             
 the rules.  But -- but -- but my understanding of -- of the Fifth -           
 - and part of that understanding came about through the transcript.           
 That by taking the Fifth is -- the only reason you can take the               
 Fifth is a realistic fear of -- of criminal prosecution.  And --              
 and I wonder if part of your discussions -- since part of your                
 charge is to look at whether or not there's been corroboration.  I            
 wonder if part of the discussion included any -- any decision, on             
 the committee's part, as to whether or not the Fifth was                      
 inappropriately taken by any of the people that appeared before the           
 committee.                                                                    
                                                                               
 MS. MACNEILLE:  Well, we were fortunate in that regard to have Mr.            
 White because, you know, he -- he'd been a judge, he'd been a                 
 criminal lawyer, he'd been a district attorney, he'd seen a lot of            
 people take the Fifth.  And he stated to us, various times, he                
 thought that this was appropriately taken, and I can't remember if            
 he said whether it was not appropriately taken.  But what our                 
 decision says and what we did was, we decided that taking the Fifth           
 didn't have anything do to with cooperation.  That that decision,             
 made by Representative Sanders, and his cooperation, was the only             
 thing that we had to look at under the statute.  Witnesses are, you           
 know, irrelevant to us -- that we were not going to hold that                 
 against him.  Whether or not he -- you know, that was a good                  
 decision or not.  It wasn't our decision, it was his decision and             
 we weren't -- we not only were not going to infer anything for his            
 taking it, which we were permitted to do, but we did not.  We                 
 weren't going to say that taking the Fifth was a lack of                      
 cooperation.  And so, we -- you know, we said, essentially, fine,             
 take the fifth, and -- and that's -- that's not going to be                   
 something the committee considers as lack of cooperation, or -- or            
 giving us any evidentiary basis at all.                                       
                                                                               
 REPRESENTATIVE ELTON:  That kind of -- Mr. Chair, I just have two             
 more questions and -- and one of them, I think, was partially                 
 answered.  So, I'm to understand that in your deliberations on the            
 guilt portion, as opposed to the sanction portion, that -- that               
 taking -- the invocation of the Fifth didn't influence your                   
 deliberations on establishing the guilt portion.                              
                                                                               
 Number 1894                                                                   
 MS. MACNEILLE:  That's right.  On -- on page 2 of our decision it             
 says; Although the committee is permitted, as a matter of law, to             
 draw inferences from their -- Representative Sanders and his staff            
 -- doing so, it did not do so in making it's findings and reaching            
 it's decision.                                                                
                                                                               
 REPRESENTATIVE ELTON:  And -- and I can then assume, also, that               
 when you deliberated about the sanctions that you also ...                    
                                                                               
 MS. MACNEILLE:  Yeah ...                                                      
                                                                               
 REPRESENTATIVE ELTON:  ... accept the [indisc.-simultaneous-speech]           
 ...                                                                           
                                                                               
 MS. MACNEILLE:  Yeah.  On page -- bottom of page 5 -- and I'll just           
 read from the decision; In several areas, Representative Sanders'             
 view of the applicable law is different than that of the                      
 committee's.  Specifically, -- the judicial branch stuff -- and               
 whether  one person can claim the Fifth Amendment privilege against           
 self incrimination to avoid testimony that might incriminate                  
 another person.  The subject doesn't have to agree with the                   
 committee to be considered cooperative.  And the committee does not           
 hold these differences of opinion against Representative Sanders.             
                                                                               
 REPRESENTATIVE ELTON:  And -- and the last question for now, Mr.              
 Chair -- and that kind of gets to process, and -- and -- and it               
 would be helpful to me if you could clarify the process.  I guess             
 the assumption that I have made, in the past, is that the Ethics              
 Committee, or the Ethics Subcommittee, in -- in this case, which              
 has been characterized, through testimony, as -- as being both the            
 prosecutor and the jury.  I have viewed the process a little bit              
 differently.  That the -- the Ethics Subcommittee is not the final            
 jury and -- and is maybe not the jury.  But -- but this body is the           
 jury, and -- and -- and so if we separate what our body is expected           
 to do, that would be the judicial function, based on                          
 recommendations that came from the Ethics Subcommittee.  Is that a            
 -- am I misunderstanding the process, or is -- is it more                     
 complicated than that?                                                        
                                                                               
 MS. MACNEILLE:  No, I -- I think that's a way to put it.  I think             
 you all are more than the jury.  I think you're it, you know.  I              
 mean, juries have certain limited roles, they find facts and judges           
 find law and I think you do the whole thing.  And what we are is              
 some kind of preliminary screener.  And it is -- Representative               
 Porter can tell you, it is no fun doing this stuff.  It is no fun             
 for legislators, particularly, to have to sit in judgment on their            
 peers.  And it is no fun for -- for you legislators to try and do             
 it yourselves.  I think you -- you have all kinds of -- you know,             
 personally uncomfortable issues and political issues, and                     
 appearance issues, and so that, in my view is -- is why we're in              
 this process too.  But the ultimate decision is yours.                        
                                                                               
 REPRESENTATIVE ELTON:  Mr. Chair, I -- I promised only one more               
 question, but ...                                                             
                                                                               
 CHAIRMAN KOTT:  You're quarter's about running out.                           
                                                                               
 REPRESENTATIVE ELTON:  Pardon me?                                             
                                                                               
 CHAIRMAN KOTT:  You've got your 25 cents worth.                               
                                                                               
 Number 2259                                                                   
                                                                               
 REPRESENTATIVE ELTON:  Just -- just one more, and -- and it's one             
 that I skipped over here.  I guess I've assumed when -- when you              
 talk about the decision of the subcommittee, and when you began               
 your opening remarks by saying that -- that some members of the               
 committee would be offended by the notion that somebody else was              
 leading them.  I -- I've assumed that the decision of the                     
 subcommittee was a unanimous decision.  Is that a -- is -- is my              
 inference correct?                                                            
                                                                               
 MS. MACNEILLE:  We don't record our votes.  And so -- and -- and              
 that's our policy.  So I can't say yes, it was unanimous, or no,              
 there was one person against it but I can't tell who it is.  I                
 mean, I just can't say.  And there is a policy reason for that                
 which has to do with the legislators who are on the committee not             
 being having to -- you know, stand up and state; send my -- my                
 esteemed colleague down the drain here.   But how can I say what I            
 want to say when I can't say what I want to say?  This committee              
 wrote its own decision and we all worked on it.                               
                                                                               
 CHAIRMAN KOTT:  Representative Porter.                                        
                                                                               
 REPRESENTATIVE PORTER:  The dilemma that Margie just had,                     
 unfortunately -- excuse me, I'm chewing ice water,  go through this           
 whole discussion because there are steps throughout this entire               
 process that are confidential.  They're frustrating for this kind             
 of a review, from my experience, and ...                                      
                                                                               
 [TAPE CHANGE]                                                                 
                                                                               
 TAPE 97-4, SIDE A                                                             
 Number 000                                                                    
                                                                               
 REPRESENTATIVE PORTER (continued):  ... and then make up our minds            
 whether we would have agreed with -- with their decision on that              
 violation.  I wish we would have had the benefit of the full                  
 discussion earlier, but -- but we can't because you just can't do             
 that.  So I guess, as much as I'd like to, I'm ready to move on.              
                                                                               
 Number 052                                                                    
                                                                               
 CHAIRMAN KOTT:  I've got just one or two questions here since it's            
 now coming to my turn.  It seems to me, on the report, there was              
 some discussion about the recommendations for sanctions that -- and           
 that those sanctions could be recommended based on Representative             
 Sanders not cooperating.  Am I on the right track so far?                     
                                                                               
 MS. MACNEILLE:  Uh-huh.                                                       
                                                                               
 CHAIRMAN KOTT:  And you, essentially, suggested to the committee              
 that as failure to -- to cooperate was not associated with, in                
 essence, this particular case by virtue of him pleading the Fifth.            
 Is that still correct?                                                        
                                                                               
 MS. MACNEILLE:  Yes.  I guess I should say that the lack of                   
 cooperation we considered and  enhancing recommended sanctions was            
 outside, or separate from the question of taking the Fifth 'cause             
 it -- well, with taking the Fifth, it wasn't considered in our --             
 our lack of cooperation finding.                                              
                                                                               
 CHAIRMAN KOTT:  Were there other areas regarding the lack of                  
 cooperation in this particular manner that was taken into                     
 consideration?                                                                
                                                                               
 Number 160                                                                    
                                                                               
 MS. MACNEILLE:  Yeah.  And I think we have to talk about that -- we           
 refer to in -- on page 6, that we've reviewed the pleadings and               
 correspondence in the case since the probable cause determination.            
 We saw a pattern of delaying and obstructing tactics, including               
 lack of compliance with the hearing officer's orders, which                   
 constitutes a lack of cooperation.  And there's something I want to           
 add to that.  There's been a lot of press made about how much this            
 proceeding cost compared to the size of the offense.  The reason              
 that this -- we had to spend so much money on lawyers in this was             
 dealing with the continual delaying and obstructive tactics that              
 are talked about here.  It's not our choice, and not, I think, a              
 mandatory part of any particular proceeding.  The question, I                 
 think, that we thought was at issue is, is the Ethics Committee               
 permitted, or is it appropriate for us to back off and -- and go              
 away when it looks like someone's going to make a fuss and cost a             
 lot of money.  Is that a leeway that we have to say, you know, is             
 it cost effective.  And we didn't feel that -- that it was                    
 appropriate or permitted under the law to -- to be intimidated out            
 of doing what we thought was our job.                                         
                                                                               
 Number 290                                                                    
                                                                               
 CHAIRMAN KOTT:  I'm not too familiar with the -- the legal process            
 and all the steps involved, but since Representative Sanders was              
 represented by counsel, and you've suggested that there was some              
 lack of compliance, or stalling tactics involved, isn't that kind             
 of what's part of what I would call the judicial process in -- in             
 any proceeding, those kinds of discussions or tactics, or whatever            
 you might want to call them?                                                  
                                                                               
 Number 329                                                                    
                                                                               
 MS. MACNEILLE:  I thought that -- well, let's see ...                         
                                                                               
 CHAIRMAN KOTT:  And you're talking to a layman here.                          
                                                                               
 MS. MACNEILLE:  Yeah, I know -- I know.  I guess the question is,             
 isn't this just standard litigation, and you know, in standard                
 litigation, delaying and obstructive tactics, well, maybe.  But in            
 standard litigation is the question is whether the subject                    
 cooperates part of -- part of the analysis.  To me this seemed                
 beyond even the -- the norm, but regardless, the question is, you             
 know, the statutory thing you have to consider cooperation and it -           
 - it wasn't there.  You know, it wasn't -- if Representative                  
 Sanders had said in the beginning, "Look, I think you guys are --             
 are wrong headed, just go ahead without me.  I'll just, you know,             
 deal with it later at the House", we could have done it a lot                 
 cheaper than the way we -- than the way we had to go.                         
                                                                               
 Number 455                                                                    
                                                                               
 CHAIRMAN KOTT:  Thank you.  I have one other question and -- and              
 maybe my assumption, or what I heard you testify earlier on is --             
 tell me I'm wrong, and if I am off base please correct me but,                
 seems like you did mention -- and I'm going back to the -- the law,           
 itself, regarding the letter.  It seems like you mentioned that the           
 contents of the letter was okay, but the conveyance of, was the               
 problematic area, that being using state resources.  Is -- is that            
 correct, or ....                                                              
                                                                               
 Number 494                                                                    
                                                                               
 MS. MACNEILLE:  If the letter had been done without using state               
 resources, it would have nothing to do with us.  That'd be fine.              
 If the letter had -- had in addition to what it had, some                     
 discussion of legislation or, you know, something that tied this              
 into the legislature or, you know, state government even, that                
 would have been okay.  So, there -- there are a couple different              
 ways the letter could have been okay, but, as it's written, if                
 there had been no use of state resources in producing it, not --              
 you know, not our problem.                                                    
                                                                               
 CHAIRMAN KOTT:  And that -- that somewhat brings me to my next                
 question which is extremely confusing to me in this section of law,           
 and if I might just read the first part of it, and it is in the               
 same area, "Unless approved by the committee, state funds, other              
 than funds to which a legislator is entitled to as an office                  
 allowance, may not be used to print or distribute mass mailings".             
 I mean, aren't we at somewhat of a dichotomy here, there's a                  
 dilemma in -- in the statute, some ambiguity?  On the one hand                
 we're saying one thing, and then the hand we're condoning the                 
 other.                                                                        
                                                                               
 Number 585                                                                    
                                                                               
 MS. MACNEILLE:  When you heard Representative Sanders say [indisc.]           
 you know, he -- if -- if he had looked at page 13 of the handbook             
 about mass mailings and stuff there, I wasn't clear whether that              
 was the testimony that he had, but if -- but -- I thought, gosh I             
 wish we could have been, you know, in on this process somewhere               
 because to my view, a mass mailing is sort of a bigger pool of                
 constituents.  A mass mailing about the wrong thing is still a                
 problem.  This says that any kind of mass mailing, no matter                  
 whether it's completely about the, you know, the education budget             
 or something like that is -- has a blackout period.  Now, I'm going           
 to look at Susie and she's going to tell me whether I'm way off               
 base.                                                                         
                                                                               
 Number 637                                                                    
                                                                               
 MS. BARNETT:  No that's -- that's correct.  But these -- in this              
 case we are talking about committee funds.  It's a specific --                
 taking the additional funds that you have access to as finance                
 committee chair, for example, and putting out a mailing about your            
 work as chair of the finance committee, during that blackout period           
 of time, it's -- they're too different types of monies.  It is                
 saying, you with that extra access to committee funds can't do it             
 during that period of time.  That's the way I've interpreted that             
 piece.                                                                        
                                                                               
 Number 680                                                                    
                                                                               
 CHAIRMAN KOTT:  I can -- I can understand that interpretation based           
 on, unless approved by the committee's state funds, and I would               
 interpret that the same way you're interpreting it.  That is funds            
 that are held by a committee chair, for whatever purpose, which I             
 am not aware, other than maybe the finance committee who has that             
 available to them, but then it goes on to say, "other than funds to           
 which a legislator is entitled to as an office allowance may not be           
 used."  Other than those so that ....                                         
                                                                               
 Number 716                                                                    
                                                                               
 MS. BARNETT:  There is certainly, if I could step in here, ...                
                                                                               
 MS. MACNEILLE:  Please.                                                       
                                                                               
 MS. BARNETT:  ... no intent that your -- for example, end -- this             
 is my understanding the way this statute was written, that your end           
 of the session newsletters, there's a -- those are not restricted.            
 And -- and that's the way I read the statute.                                 
                                                                               
 Number 740                                                                    
                                                                               
 REPRESENTATIVE PHILLIPS:  Mr. Chairman, could I follow-up on that?            
                                                                               
 CHAIRMAN KOTT:  Representative Phillips.                                      
                                                                               
 REPRESENTATIVE PHILLIPS:  Thank you.  The -- the statute is clear.            
 It says, "However a legislator's personal office allowance may be             
 used for these mass mailings at any time".  So had the money that             
 goes into our -- our office accounts been used for this mass                  
 mailing, where the statute says, "However the office allowance may            
 be used for these mass mailings at any time", would you have found            
 the same findings on this mailing?                                            
                                                                               
 MS. MACNEILLE:  I'm sorry.  I'm starting to fuss after ...                    
                                                                               
 REPRESENTATIVE PHILLIPS:  The statute says ...                                
                                                                               
 MS. MACNEILLE:  Okay, can you refer me to ...                                 
                                                                               
 REPRESENTATIVE PHILLIPS:  It's 24.60.030(c), and is 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", and               
 that was questioned, "during a period beginning 90 days before the            
 primary, ending a day after the general election, special election.           
 However, a legislator's personal office allowance may be used for             
 these mass mailings at any time."                                             
                                                                               
 Number 810                                                                    
                                                                               
 MS. MACNEILLE:  See if -- if it had read that way, and                        
 Representative Sanders had said to us, "Hey, this section (c) is              
 [indisc.]", you know, or we had looked at it, would we still be               
 having a problem here.                                                        
                                                                               
 Number 863                                                                    
                                                                               
 REPRESENTATIVE PHILLIPS:  Well, it is in the statute.  This is the            
 statute.                                                                      
                                                                               
 MS. MACNEILLE:  It just ...                                                   
                                                                               
 REPRESENTATIVE PHILLIPS:  So ...                                              
                                                                               
 MS. MACNEILLE:  ... I mean, yeah, I think that ...                            
                                                                               
 REPRESENTATIVE PHILLIPS:  ... this -- this is the statute that we             
 are dealing with, so ...                                                      
                                                                               
 MS. MACNEILLE:  I'm sorry.  I understood you to rephrase it a                 
 little differently, I think.                                                  
                                                                               
 REPRESENTATIVE PHILLIPS:  No, I -- I'm reading -- anyway, it says,            
 "However, a legislator's personal office allowance may be used for            
 these mass mailings at any time."  Why did that not be taken into             
 consideration in doing this mailing?                                          
                                                                               
 MS. MACNEILLE:  I'm sorry.  My statute doesn't read that way ...              
                                                                               
 MS. BARNETT:  Neither of us ...                                               
                                                                               
 CHAIRMAN KOTT:  It's on page 13.  [Indisc.--Simultaneous-speech.]             
                                                                               
 MS. BARNETT:  Oh, you're [indisc.] ...                                        
                                                                               
 MS. MACNEILLE:  Oh -- oh, I'm sorry.                                          
                                                                               
 CHAIRMAN KOTT:  Which is -- looks like it's rephrased ...                     
                                                                               
 REPRESENTATIVE PHILLIPS:  Mass mailings use of state funds -- use             
 of state funds.  So, had -- had ...                                           
                                                                               
 MS. MACNEILLE:  [Indisc.] about a legislator ...                              
                                                                               
 REPRESENTATIVE PHILLIPS:  ... had this mailing been paid out of the           
 personal office account, then there would not have been any cause             
 for any concern?                                                              
                                                                               
 Number 909                                                                    
                                                                               
 MS. MACNEILLE:  Yes, and no.  First, the question is use of staff             
 time.  If this mailing had been done not on government time ...               
                                                                               
 REPRESENTATIVE PHILLIPS:  But -- but this statute does not say                
 that.  It says, "However a legislator's personal office allowance             
 can be used for these mass mailings at any time."  A mass mailing             
 has to take somebody to produce the mass mailing.  It has to take             
 somebody to put postage on and distribute it to the post office.              
 I mean, those are all the steps that are involved in a mass                   
 mailing.                                                                      
                                                                               
 MS. MACNEILLE:  I -- I thought you were talking about the postage             
 question, which I think this -- this seems to be personal office              
 allowance has to deal with.  I don't understand that a personal               
 office allowance is being used to -- to fund the staff-time for the           
 mass mailings.  I understand this to say, a mass mailing from, or             
 about a legislator who's a candidate for -- for state office.  I,             
 you know, I -- I'm sorry I ...                                                
                                                                               
 Number 976                                                                    
                                                                               
 REPRESENTATIVE PHILLIPS:  From a legislator.  This would be a mass            
 mailing from a legislator to his constituents.  In this case, we              
 are talking about a mass mailing from a legislator to his                     
 constituents.  The question I'm asking is, had he used his personal           
 office allowance to fund this, then it would have been appropriate            
 according -- according to my interpretation of this statute.                  
                                                                               
 MS. BARNETT:  But -- but it doesn't negate (b), up above, which is            
 the political party activity.  So ...                                         
                                                                               
 REPRESENTATIVE PHILLIPS:  This -- this statute does not clarify               
 that.                                                                         
                                                                               
 MS. BARNETT:  But -- but one is not -- they don't, I mean, it                 
 doesn't negate this -- this ...                                               
                                                                               
 MS. MACNEILLE:  I think you have to read them both together.                  
                                                                               
 MS. BARNETT:  Right.  You have to read -- and -- and -- and because           
 one part -- in any part of the code you have to address all the               
 parts of the code [indisc.--coughing] activities, and in our                  
 interpretations.  So a political party -- I was trying to think,              
 Representative Phillips, earlier today about this kind of question            
 'cause I think it is confusing, and mailings are important and your           
 communication with your constituents is important.  If we were to             
 say -- and looking at; is it okay to send out invitations to the              
 Bartlett Club Forum on staff time with -- with office allowance               
 money.  I believe that everyone in here would say; no, that's not             
 okay, that's not why we have staff.  Where do you draw the line on            
 these kinds of mailings and use of state resources.  One of the               
 ways has been put into the code, and that's political party                   
 activity.                                                                     
                                                                               
 Number 1003                                                                   
                                                                               
 CHAIRMAN KOTT:  And is of the opinion, at least of the committee,             
 that sending correspondence to a constituent who participated,                
 after the fact he receives, or she receives a letter, is in fact it           
 involved with political activity?  That's the problem -- the                  
 trouble I'm having is trying to put the two together.                         
                                                                               
 Number 1105                                                                   
                                                                               
 MS. MACNEILLE:  I that's a difference between participating and a             
 national spelling bee.  Participating in an exclusive partisan, you           
 know, political party activity.                                               
                                                                               
 CHAIRMAN KOTT:  Recognizing the fact that 30 seconds before that              
 person went to the straw poll he could have been of any party                 
 affiliation, but because it's unregulated by state law, it's                  
 controlled, primarily, through procedures developed by a party,               
 that person then must change his party affiliation or registration            
 to one or the other to participate.                                           
                                                                               
 Number 1143                                                                   
 MS. MACNEILLE:  I don't understand the republican straw poll and,             
 you know, we had to work with the evidence we had and testimony of            
 the republican party official who testified.  I didn't understand             
 it to be a -- you know, an official part of the election process.             
 I understood it to be something -- in fact, you know, an effective            
 and imaginative thing to do to deal with republican party influence           
 in Alaska in -- in national -- in national politics.  And I don't             
 think that that's a governmental purpose.  It may be a desirable              
 purpose.  It may be valuable, but I don't think if it's a                     
 governmental purposes.                                                        
                                                                               
 Number 1195                                                                   
                                                                               
 REPRESENTATIVE PHILLIPS:  Mr. Chairman, one follow-up and then ...            
                                                                               
 CHAIRMAN KOTT:  Speaker Phillips ...                                          
                                                                               
 REPRESENTATIVE PHILLIPS:  ... I won't belabor the -- the fact any             
 longer.  Government is partisan.  Government in Alaska is made up             
 of republicans and democrats; used to have some green parties,                
 used to have some libertarians, but we don't right now.  Government           
 in Alaska, today, is made up of republicans and democrats.  It is             
 a partisan thing.  And when the whole government process goes                 
 through, it is the public making a selection between republicans              
 and democrats, whether it's at the presidential level, or the state           
 level or the local -- no, not the local level; presidential level             
 or the state level.  So it is partisan.  That is the nature of                
 government.  I think we have a real can of worms here.                        
                                                                               
 MS. MACNEILLE:  An now it's yours.  It's not ours.                            
                                                                               
 CHAIRMAN KOTT:  I agree.  Kind of chasing this horse by its tail.             
 Representative Williams.                                                      
                                                                               
 Number 1257                                                                   
                                                                               
 REPRESENTATIVE WILLIAMS:  Thank you, Mr. Chairman.  I -- all -- all           
 of that aside, Representative Elton played the 'if game' here.  He            
 -- so I think -- and the Chairman let him go along with it, you               
 went along with it.                                                           
                                                                               
 CHAIRMAN KOTT:  You'll know -- you'll know when you get too far               
 beyond the 'if'.                                                              
                                                                               
 REPRESENTATIVE WILLIAMS:  I understand.  I've been in the campaign            
 that started in -- when I left this legislature last June 7th, I              
 guess it was I was campaigning, and I know what it's like to                  
 campaign.  I campaigned from June through November, everyday.  And            
 for me to get off and focus on something that we're having trouble            
 here trying to interpret -- here in this committee where we've had            
 -- how long -- and there's no pressure on us other than these --              
 the news.  We're not -- our only pressure is just whether or not              
 we're going to say things right and not hurt anybody's feelings.              
 I'm not here to want to hurt anybody's feelings.  I'm not here to             
 say that you did something wrong, or anything.  But I would like to           
 play the 'if game' also.  Now I look at what the case review that             
 you -- in Exhibit E, that come up with that -- that was done on               
 April 19th, and Representative Sanders said he felt that there was            
 political under-current on -- on this.  Let's say there was, okay?            
 And I'm not saying that you did it ...                                        
                                                                               
 MS. MACNEILLE:  I understand ...                                              
                                                                               
 REPRESENTATIVE WILLIAMS:  ... but, let -- let's say that there was            
 some political under-current.  I look at -- I've called meetings in           
 -- in together by -- you know, Indian politics is probably the                
 hardest one to give it to because I've dealt with it 20 years in              
 the City of Saxon and in the Cape Fox Corporation, and I know how             
 hard it is to get people together.  But let's say if there was --             
 I -- I'm looking at this in -- in Jerry's eyes right now, and I'm             
 saying that -- and you're having a hard time trying to get all of             
 these meetings together.  You tried on June 7th to get a meeting              
 together, and I can agree with those legislators that they had a              
 week off, you know, three weeks off actually.  You know, they went            
 home and they probably all played around, at least those two                  
 legislators did, you know, and okay.  Well, you know, I think we              
 should have said, if you would have been a little bit more stern as           
 a leader, that you are, and said, we are going to have a meeting on           
 this day because this is very important.  We have election coming             
 up.  We all know that election is coming up, and we all know how              
 this affected the election, or could have affected the election,              
 that that undercurrent was there.   And I'm not saying that it was,           
 but it -- it looks like it to me.  Okay.  Being it in this manner,            
 saying, okay, "I'm the chairman, we're going to have a -- a meeting           
 and it's going to be on teleconference on this day -- on July 1st.            
 And -- well, let's get -- get this moving so that Representative              
 Sanders, if there is anything that is going to affect him in the --           
 in the primary, or the election, that it wouldn't bother him."  I             
 look at how you've made your portion of cooperation of                        
 Representative Sanders in -- in there that -- his tactics, or                 
 whatever, but -- and -- and you went through all of these areas               
 that he's fighting you with this and he's arguing about that, and             
 then he's also running a campaign.  You know, I know how it is to             
 run a campaign and be threatened by that campaign.  We are egos out           
 there on the line, whatever is out there on the line, big time.  So           
 you're not really thinking correctly.  Okay.  How -- could you have           
 done it differently?  Could you have come around and said -- been             
 a little bit -- been a little bit more stronger in your leadership?           
                                                                               
 Number 1489                                                                   
                                                                               
 MS. MACNEILLE:  I'm sure I could have been a lot stronger in my               
 leadership.  Sometimes I've been accused of being too strong.  And            
 I'm, you know -- and I don't feel like I'm -- I'm a strong leader             
 at all, I'm just kind of trying to be a sheep dog, keep these                 
 people going.  But there's one thing I want to say about the Ethics           
 Committee and elections.  If we try and speed stuff up because of             
 elections, we're accused of taking a partisan position.  If we try            
 and slow things down because of elections, we're -- we're accused             
 of -- of we help one side or the other.  We just had to just do it            
 and -- and try not to do it.  Try not to sway things one way or the           
 other.  Now, I understand what you're saying, and I -- if I've --             
 I wish there -- there was some handle I had over, specifically,               
 legislators on the Ethics Committee to make them show up because I            
 don't.  You know, I can beg, I can plead, I can order.  I don't               
 have any power over you people.  Susie can be the most assiduously            
 polite and careful staff person suggesting that they really need to           
 show up.  And I have begged and pleaded over the phone with people            
 to try and get them to come to meetings.  And they have -- you                
 know, appropriately, you all have your lives and paths to live, and           
 I don't have any handle over that.  I can't subpoena you to -- you            
 know, to show up at a meeting.  Was there some way I could have had           
 a meeting sooner?  Not that I know if, but, I -- I'm, you know, I'm           
 sure in the realm of human existence, there's somebody who could              
 have made it happen.                                                          
                                                                               
 Number 1576                                                                   
                                                                               
 MS. BARNETT:  I just wanted to add one.  The committee, in these              
 formally adopted procedures, also, early on, decided they could not           
 discuss confidential cases over teleconference for a variety of               
 reasons.  So it actually does require face-to-face.  That also                
 brings that if there is more than one case out there, we have to              
 coordinate several other things.  It's not always just one case.              
 And -- and then speaking on the committee's behalf, there -- there            
 was no indication from Representative Sanders as to whether                   
 speeding up, or slowing down was what he would prefer.                        
                                                                               
 REPRESENTATIVE WILLIAMS:  Uh-huh.  Well, I could appreciate where             
 Representative Sanders was coming, as far as paying attention to              
 what was happening here and -- on this Ethics Committee.  I mean,             
 when you're campaigning that's basically all you look at, is                  
 campaigning.  And -- and we don't have time to worry about what's             
 happening here.  I would liked to have been -- I bet we would all             
 liked to have said, okay, you know, we all understand.  And you               
 answered the question earlier when you said if we -- we would have            
 left it if -- if we could have.  We would have said, okay, we will            
 just let this go until after the election.  We'll deal with it at             
 that time.  So we know that it's there.  But, I'm -- I'm trying to            
 get an answer, or get a good feeling as far as the obstruction --             
 obstructing and not cooperating.  I would like to -- to know with             
 all that was happening since the time it went public, and since --            
 what -- what day did it go public?                                            
                                                                               
 Number 1679                                                                   
                                                                               
 MS. MACNEILLE:  The formal charges were issued September 24th,                
 because that's the ...                                                        
                                                                               
 REPRESENTATIVE WILLIAMS:  That was the day it went public.                    
                                                                               
 MS. BARNETT:  Actually, just a correction.  It -- the copy was sent           
 to Lester Syren and Representative Sanders, and -- and then I                 
 believe it was the next day that -- that if someone asked what the            
 charges were.  I may be incorrect, but there was a gap in between.            
 Possibly the same day, but not the same moment.                               
                                                                               
 REPRESENTATIVE WILLIAMS:  Okay.  I'm still on this 'if game', and             
 I'm trying to understand what was happening, and everything that              
 had happened since September 24th through election -- or through              
 what, October -- October 20th, or thereabouts.  Was that the 24th,            
 or -- where the judge ruled and the committee said, okay, we'll               
 just wait till November 14th, or whatever day that was.                       
                                                                               
 MS. MACNEILLE:  Well, okay.  Well, let -- if I can address that.              
 The committee said, November 14th.  On ...                                    
                                                                               
 REPRESENTATIVE WILLIAMS:  October 10th.                                       
                                                                               
 MS. MACNEILLE:  ... October 10th, okay.  There was no judge in this           
 picture at all until November 22nd ...                                        
 MS. BARNETT:  October ...                                                     
                                                                               
 MS. MACNEILLE:  ... oh, October 22nd.  We were always going to have           
 the hearing after the election.  We never said we wanted to have              
 the hearing before the election.  And -- and, you know, there's --            
 that's -- there are documents to -- to back that up.                          
                                                                               
 CHAIRMAN KOTT:  Further questions?                                            
                                                                               
 REPRESENTATIVE WILLIAMS:  Not right now.                                      
                                                                               
 Number 1770                                                                   
                                                                               
 CHAIRMAN KOTT:  Representative Nicholia.                                      
                                                                               
 REPRESENTATIVE NICHOLIA:  Thank you, Chair.  First I'd like to                
 thank you for your hard work.  I'm just sitting here for the past             
 two days.  I can't understand and -- and get a clear picture what             
 a difficult task that the three of you have.  And the first                   
 question I would like to ask, through the Chair, we've been talking           
 about partisan politics here and it's been said that -- that this             
 is a partisan committee aimed at protecting its own.  And I don't             
 know if you can answer this or not but, I'd like to know what is              
 the political makeup of the committee, and what was the political             
 makeup of the committee on November 14th and 15th?                            
                                                                               
 MS. MACNEILLE:  Okay.  I'd be happy to answer that.  We have five             
 public members.  I and Edith Vorderstrasse, from Barrow, are                  
 registered democrats.                                                         
                                                                               
 UNIDENTIFIED SPEAKER:  I didn't remember who ...                              
                                                                               
 MS. MACNEILLE:  Mr. Joe Donohue, from Soldotna, I guess, is where             
 he's from, is a 'U' or an 'O', or a -- you know, something.                   
 Neither of -- neither republican or democrat.  And Shirley McCoy,             
 from Juneau, and Ed Granger, from Anchorage are the registered                
 republicans.  And then our legislative participant, Cynthia Toohey,           
 is republican.                                                                
                                                                               
 REPRESENTATIVE NICHOLIA:  If I might ask questions, Mr. Chair?                
                                                                               
 CHAIRMAN KOTT:  Please.                                                       
                                                                               
 REPRESENTATIVE NICHOLIA:  Another argument that Representative                
 Sanders had yesterday was that the person who filed the complaint             
 did not show up to testify.  Is he required to testify, or can he             
 just file the complaint?                                                      
                                                                               
 MS. MACNEILLE:  He is not required to testify, and the committee as           
 -- you know, our side of it, had no particular control about                  
 whether he did or didn't testify.  The presentation of the case --            
 the decision was made by Mr. Spaan.  The way that -- that                     
 complaints work, in my experience on the varies committees, seeing            
 a lot of complaints, is that lots of times the person who files the           
 complaint may or may not have personal knowledge about what's going           
 on.  And they may or may not be at all useful to the committee in             
 making the final decision about what the -- whether there's a                 
 violation or not.  And in this instance, the committee didn't feel            
 there was any particular hole in the evidence because the person              
 who filed the complaint didn't testify.                                       
                                                                               
 MS. BARNETT:  And he was not under subpoena.                                  
                                                                               
 REPRESENTATIVE NICHOLIA:  This is a question, through the Chair, to           
 Margie MacNeille.  Did Representative Sanders ever approach you               
 before your confirmation to the Ethics Committee to discuss what he           
 -- what he perceived as a conflict of interest?                               
                                                                               
 MS. MACNEILLE:  No, I ...                                                     
                                                                               
 REPRESENTATIVE NICHOLIA:  So, when did this occur?  When did this             
 start -- start occurring?                                                     
                                                                               
 MS. MACNEILLE:  As far as I know ...                                          
                                                                               
 REPRESENTATIVE NICHOLIA:  Or let me rephrase that.  Are -- when did           
 it -- or when did it appear to you that he had this -- this charge            
 against him?                                                                  
                                                                               
 MS. MACNEILLE:  Okay.  First, I'd -- as far as I know,                        
 Representative Sanders and I spoke on the phone once about the                
 first violation, and other than that we -- we haven't ever talked.            
 But, as far as I know, the first time I heard, specifically, this             
 concern about my husband's contract was in a letter to -- to Mike             
 White, and so that must have been in -- in October.  If there's               
 been other times [indisc.] I don't know.  I think that                        
 Representative Sanders talked about the committee, and maybe about            
 me, in particular, during the campaign season, and when that was I            
 don't know.  And I didn't see it, so.  And I don't know if he                 
 raised that issue then or not.                                                
                                                                               
 REPRESENTATIVE NICHOLIA:  Okay, thank you.                                    
                                                                               
 Number 1962                                                                   
                                                                               
 CHAIRMAN KOTT:  Margie, since everybody's on the 'what if' end here           
 ...                                                                           
                                                                               
 MS. MACNEILLE:  In the perfect world, yeah ...                                
                                                                               
 CHAIRMAN KOTT:  ... in the perfect world.  What if the legislature,           
 in some previous year, would have passed some kind of resolution,             
 statute, something of that nature, or citation, if you will,                  
 honoring or establishing the existence of a straw poll in Alaska,             
 would that have made any difference in sending this letter now, to            
 a constituent who participates -- who participated in a recognized            
 straw poll?                                                                   
                                                                               
 MS. MACNEILLE:  I don't know.  You know, it certainly would have              
 been something for us to look at, but -- but I don't know.                    
                                                                               
 CHAIRMAN KOTT:  Okay, so it's still a 'what if'.  Representative              
 Vezey.                                                                        
                                                                               
 Number 2001                                                                   
                                                                               
 REPRESENTATIVE VEZEY:  Thank you, Mr. Chairman.  I have just, I               
 think, three questions and you started to answer it a minute ago,             
 but I'm confused on why the Ethics Commission did a press release.            
 Do you consider that an appropriate part of the process, or -- or,            
 I don't understand that.                                                      
                                                                               
 MS. MACNEILLE:  Okay.  Are you talking about the press release in             
 this case, or ...                                                             
                                                                               
 REPRESENTATIVE VEZEY:  In this case.                                          
                                                                               
 MS. MACNEILLE:  What happens is, we do something and -- Susie can             
 talk about it for me -- her but, my phone machine goes bezerk.                
 We've got 12 million people, I got people calling, I got people               
 saying, oh please -- you know, and -- and it seemed to us that the            
 way to deal with that is here's something, you know, and there it             
 is.  Here's a press release and -- and ...                                    
                                                                               
 MS. BARNETT:  Well, it wasn't actually a release, it was only the             
 decision.                                                                     
                                                                               
 MS. MACNEILLE:  Yeah.  And -- but, yeah, we had conference                    
 [indisc.].                                                                    
                                                                               
 MS. BARNETT:  Right.                                                          
                                                                               
 MS. MACNEILLE:  Yeah.  Press conference.                                      
                                                                               
 MS. BARNETT:  I mean, there was time for that, but there was no               
 additional spin on -- on the story.  It was -- the public decision            
 was issued and Margie and Cynthia were available to answer                    
 questions about it.  And -- and it is true that it ends up being an           
 all day event, otherwise, of the non-stop.                                    
                                                                               
 Number 2061                                                                   
                                                                               
 REPRESENTATIVE VEZEY:  And this is probably just your opinion, I              
 realize, but in your opinion, were there any criminal issues                  
 involved in this investigation or complaint?                                  
                                                                               
 MS. MACNEILLE:  In my personal view, which is the only thing, I               
 guess, I can talk about, I didn't feel that was what we were                  
 talking about [indisc.].                                                      
                                                                               
 REPRESENTATIVE VEZEY:  And I'm not exactly clear, I could --                  
 probably because I haven't read the law enough times but, you know,           
 I have read it.  But when does the process leave the area of                  
 confidentiality and become a public process?                                  
                                                                               
 MS. MACNEILLE:  Looking at Susie's chart, which you can't see                 
 anymore, their are a couple of times there's certain kinds of                 
 dismissals that are public, but in this -- in the path that this              
 followed it became public at the formal charge stage.                         
                                                                               
 REPRESENTATIVE VEZEY:  At the formal charge stage, okay.                      
                                                                               
 MS. MACNEILLE:  Yeah.                                                         
                                                                               
 REPRESENTATIVE VEZEY:  Mr. Chairman, I don't have anymore                     
 questions, but I do have some comments, or I could save them for              
 later if -- if you wish.                                                      
                                                                               
 CHAIRMAN KOTT:  If you have some comments related to the questions,           
 please continue.                                                              
                                                                               
 REPRESENTATIVE VEZEY:  First, I would like to comment that I think            
 that, you know, you used good reasoning and good logic in coming up           
 with your interpretation of a definition of governmental versus               
 non-governmental purpose.  However, I don't agree with your                   
 finding.  And the reason being is prior to the straw poll, that               
 we're talking about here being held, I don't think that I viewed              
 that as something of a political or partisan, or campaign value.              
 I viewed it as an economic activity for the ...                               
                                                                               
 TAPE 97-4, SIDE B                                                             
 Number 000                                                                    
                                                                               
 REPRESENTATIVE VEZEY (continued):  ... and I viewed it as an                  
 opportunity to bring state of Alaska issues to the National arena.            
 I don't remember the figures, but it -- it was reported that the              
 straw poll brought over half a million dollars of outside money               
 into the state of Alaska during a very, very slow time of the year,           
 and it was an economic boom to certain parts of our economy and               
 certain areas of the state.  And I look upon it strictly in -- in             
 that regard.  I -- I don't see any non-governmental purpose and a             
 campaign issue involved there.  The straw poll was simply was a               
 chance to market Alaska and to bring convention money into the                
 state of Alaska.  That happened to be the way I look at it.  Let's            
 see, I had one other comment I'd like to make if I can remember               
 what it was.  The -- and I do -- if I understand it correctly, the            
 crux of the issue here is, was state resources used to -- for a               
 non-governmental purpose -- to send out a letter for a non-                   
 governmental purpose.  Okay, so that -- that is the main thing                
 we're talking about.  And I think we've beat to death the -- the              
 fact about the personal office allowance.  I think we beat that one           
 down.  If I have another comment -- I can't remember what it was,             
 but that is, I think, something that was apparent to me right on is           
 from far before the time we actually had the straw poll, I viewed             
 as more of an economic and marketing activity than I did political.           
 And afterwards it became apparent that it was a tremendous success.           
 And -- and ...                                                                
                                                                               
 MS. MACNEILLE:  It just sticks out.  It's a political event.  It's            
 a tourist activity.  I mean ...                                               
                                                                               
 REPRESENTATIVE VEZEY:  I'm sorry, I couldn't hear.                            
                                                                               
 MS. MACNEILLE:  It's an interesting thought of a political event as           
 tourist activity.                                                             
                                                                               
 REPRESENTATIVE VEZEY:  Well, ...                                              
                                                                               
 MS. MACNEILLE:  I mean, I -- I see your point.  It's just ...                 
                                                                               
 REPRESENTATIVE VEZEY:  ... conventions are very, very big business,           
 and on a national scale cities spend a lot of government money                
 trying to market two political parties to get them to hold their              
 conventions in their city.  It is a legitimate government activity.           
 I only regret that we didn't recognize the potential that we had              
 there, and to spend more money on marketing 'cause we -- we could             
 have made it a bigger industry.                                               
                                                                               
 MS. MACNEILLE:  Well, there's next time [indisc.].                            
                                                                               
 REPRESENTATIVE VEZEY:  Thank you, Mr. Chairman.                               
                                                                               
 CHAIRMAN KOTT:  Representative Porter.                                        
                                                                               
 Number 96                                                                     
                                                                               
 REPRESENTATIVE PORTER:  I had one other question I think goes to              
 the merits, I guess.  Would you think that -- should I infer from -           
 - from  this decision that you would find -- or that generally the            
 -- the committee would find it improper for a legislator to write             
 anything to a group of constituents that were categorized by their            
 party?                                                                        
                                                                               
 MS. MACNEILLE:  No.                                                           
                                                                               
 REPRESENTATIVE PORTER:  Why is this different?                                
                                                                               
 MS. MACNEILLE:  Because what's in the letter.  If you choose to               
 write to a particular group of people, that's -- you know,                    
 republicans or democrat, you know, some particularly partisan                 
 identified, I think, about some particular issue of -- Bill such              
 and such, that's fine.                                                        
                                                                               
 Number 43                                                                     
                                                                               
 REPRESENTATIVE PORTER:  The topic then -- the only people that                
 could participate in the poll were republicans, so that's the only            
 people that he could have written to.  But it was more about                  
 [indisc.--coughing] topic of the letter and the fact that it was to           
 his party.  The topic being thanking them for participating in a              
 partisan, politic process.                                                    
                                                                               
 CHAIRMAN KOTT:  Representative Vezey.                                         
                                                                               
 REPRESENTATIVE VEZEY:  Sorry, Mr. Chairman.  I remember my other              
 comment was just that in the straw poll, to participate, you had to           
 be republican for a minute or two.  You could change your                     
 registration right there as you got your ballot to vote in the                
 straw poll, and you could walk out the door and change it back to             
 anything else right after you've left.  So, it -- I don't know how            
 many people did that.  I -- I do know that a lot of people did                
 register at the straw polls, and I -- I saw the numbers.  It was a            
 very high number.  But to say that just because they registered for           
 a period of time at the straw poll that they were republicans is,             
 I don't think, a terribly accurate statement.                                 
                                                                               
 Number 197                                                                    
 MS. MACNEILLE:  You know -- there -- all we could deal with is the            
 testimony we had before us ...                                                
                                                                               
 REPRESENTATIVE VEZEY:  I -- I understand ...                                  
                                                                               
 MS. MACNEILLE: ... they were republicans and how long, how                    
 sincerely they were republicans I don't know, don't want to know.             
 I just ....                                                                   
                                                                               
 CHAIRMAN KOTT:  Since Representative Vezey did bring up an issue              
 dealing with state funds, I want to ask you, just in general terms,           
 do you distinguish between office allowance accounts, that is, one            
 that is accountable that is held by legislative affairs agency,               
 versus one that you receive in lump sum, and is there some                    
 differentiation between the kinds of things you can spend you money           
 on, basically, is what I'm asking?                                            
                                                                               
 MS. MACNEILLE:  Yeah.  As I understand it, the $6,000, you have               
 your choice.  You can say, take the taxes out of it and -- and hand           
 it over.  And once that's done, the Ethics Committee has absolutely           
 nothing to do with what you do with that money.  You know, it is              
 yours, and have at it.  If the -- if it is kept with the state and            
 -- and issued on an approved, you know, this is a business expense            
 of -- of me as a legislator, then in our view, that's -- that's               
 state money and it's being vouchered out for -- for public purposes           
 and -- and not for personal purposes, or political purposes.  You             
 know, political party purposes.                                               
                                                                               
 CHAIRMAN KOTT:  Are you using some area in the statute, or                    
 regulation, or is it just policy in regards to let's say keeping              
 your $6,000 with the Legislative Affairs Agency in purchasing items           
 that could, or could not be associated with an office?  Do you make           
 that distinguishing difference when you look at these kinds of                
 things?  Or does it have to be when you expend this money directly            
 affiliated with your office?  And could I -- I guess what I -- what           
 I'm saying, could I take by $6,000 and buy a used car?                        
                                                                               
 MS. MACNEILLE:  If you -- if -- if you took your $6,000 and paid              
 taxes on it, you could buy a used -- you're not going to buy a new            
 car for that, that's for sure.  You're going to buy a ...                     
                                                                               
 CHAIRMAN KOTT:  Not this day and age.                                         
                                                                               
 MS. MACNEILLE:  ... used car, a rust bucket.  But -- but if you               
 left it with ...                                                              
                                                                               
 MS. BARNETT:  LAA ...                                                         
                                                                               
 MS. MACNEILLE:  ... LAA, I'm sorry, I'm really bad about who these            
 people are, and handed them a voucher and said, you know, buying a            
 used car, and I suppose if you had a reason that that used car was,           
 you know, important to your legislative function, you know, that's            
 -- that's fine.  But if you're buying a used car for your, you                
 know, teenager to drive to his job on, that's not okay.  Am I                 
 answering your question?                                                      
                                                                               
 CHAIRMAN KOTT:  Yeah, you're -- you're getting there.                         
                                                                               
 MS. MACNEILLE:  I'm sorry.                                                    
                                                                               
 CHAIRMAN KOTT:  You're getting there.                                         
                                                                               
 MS. MACNEILLE:  I wish this stuff were easy, it's -- I can't make             
 it that way.                                                                  
                                                                               
 Number 365                                                                    
                                                                               
 CHAIRMAN KOTT:  I mean, there's, I think a lot of concern among               
 many of my colleagues regarding leaving your money now in this                
 office allowance account with LAA is unfortunate because now we've            
 got to pay the tax man, you know, $1,500 or whatever it is, and we            
 don't have the amount remaining that we would like to have to                 
 provide the constituency service that, I think our constituents               
 have become -- become used to.  So, you know, it's -- it's a real             
 concern, and when we start delving into this issue I think we need            
 to look extremely close at -- at the areas involved that determine            
 what you can use your $6,000 for, versus what you can't use it for.           
 And I, you know, I suppose that anything you purchase you could               
 probably, with some stretch of your imagination, justify it as an             
 office expense if that's what we are, in fact, talking about.                 
 Something that is associated with the office, whether it's a TV or            
 a stereo, or a rug or whatever the case might be.  But, I mean,               
 certainly, interchangeably, you could use it as a personal item as            
 well.                                                                         
                                                                               
 MS. BARNETT:  And -- and I think that your -- your first check is -           
 - is with the IRS and -- and with guidelines that LAA is putting              
 forward, and perhaps they have by now.  But what are legitimate               
 offices expenses, what -- what expenses allow you to not pay tax?             
 And -- and that's your first check there.  And then the second                
 would be, is this for -- purely for my personal benefit.  I mean,             
 if those are going to obvious then -- then you can run your own               
 test.  And then again, I think that a TV is a great example of                
 something that can be purchased out of an office allowance if it's            
 sitting in the office to sit and watch Gavel to Gavel.  There --              
 there's no question that's -- I think 99 percent of the -- of the             
 questions that legislators have that they'll be able to answer                
 between the IRS, LAA and yourselves.  And if there's a fuzzy area,            
 give us a call.                                                               
                                                                               
 CHAIRMAN KOTT:  Thank you.  Representative -- Speaker Phillips.               
                                                                               
 Number 485                                                                    
                                                                               
 REPRESENTATIVE PHILLIPS:  Thank you, Mr. Chairman.  Earlier you               
 stated that a person does not have -- a person filing an ethics               
 complaint against the legislature does not have to file that ethics           
 complaint in person, nor do they have to have personal knowledge of           
 the complaint in order to be able to file a complaint.  After                 
 dealing with the law, as it is on the books today, for several                
 years, would you recommend a change in the law that says if you are           
 going to file a complaint -- an ethics complaint, number one; you             
 must have personal knowledge, you must know what you're doing                 
 personally, you must have a personal reason for filing this                   
 complaint and if you're serious about filing a complaint, you shall           
 file it in person with the Ethics Committee.                                  
                                                                               
 MS. MACNEILLE:  Okay.  I'm sorry if I was misunderstood about the             
 question of filing in person.  People do file in person.  They, you           
 know, they sign it, it's notarized.  Sometimes it comes in the                
 mail, sometimes it comes under Susie's door.                                  
                                                                               
 REPRESENTATIVE PHILLIPS:  But no, I mean -- I mean ...                        
                                                                               
 MS. MACNEILLE:  ... sometimes it comes in person, but ...                     
                                                                               
 REPRESENTATIVE PHILLIPS:  ... and, I understand that ...                      
                                                                               
 MS. MACNEILLE:  Yes ...                                                       
                                                                               
 REPRESENTATIVE PHILLIPS:  ... I mean, that's the way most people              
 will file it.  But when it comes to the -- the actual complaint               
 process that they should have to come before the Ethics Committee             
 in person to make their -- to make their case.                                
                                                                               
 Number 551                                                                    
                                                                               
 MS. MACNEILLE:  I have a couple of thoughts about that.  The first            
 one is that I think the Ethics Committee function is as a safety              
 valve.  It's a way -- a method to allow the people in the public              
 who are concerned about things they understand, or hear about                 
 legislatures, to know that that gets addressed.  That they can                
 raise it in some fashion.  And because there is -- you know, we do            
 serve that function, I think we need to be careful about narrowing            
 too carefully, who -- who gets to file complaints.  I also think              
 that -- [indisc.] daggers down my back here -- that when you have             
 a legislature that is in one place, in Juneau, and a lot of people            
 are elsewhere and the only information they have about the                    
 legislature is media, Gavel to Gavel, things like that, that if you           
 say a complainant can't -- you know, have a complainant attach a              
 newspaper clipping, that there'll be sometimes that legitimate                
 complaints don't ever get to the committee.  And I -- there                   
 certainly have been complaints filed with our committee that went             
 all the way, that came out of stuff people read the newspaper and             
 complained to us about.  And maybe the newspaper accounts turned              
 out not to be accurate from our view point, but there -- there was            
 -- there was a germ of something there and -- and we went on with             
 it.  It is exceedingly uncomfortable for legislators to be subject            
 to this kind of thing.  And it is exceedingly uncomfortable because           
 it's the legislators in power who get the complaints.  You know,              
 people don't much file complaints against anybody in the minority,            
 whoever the minority is.  But I think it is one way of -- of                  
 allowing that public concern to come up.  If you want to change it,           
 that's -- that's okay, but that's just my view.                               
                                                                               
 CHAIRMAN KOTT:  Representative Elton.                                         
                                                                               
 REPRESENTATIVE ELTON:  Thanks, Mr. Chair.  Kind of a follow-up to             
 Speaker Phillip's question.  Any complaint that you accept has to             
 be given under oath?                                                          
                                                                               
 MS. MACNEILLE:  Notarized, yeah.                                              
                                                                               
 REPRESENTATIVE ELTON:  Well, could you explain to me what                     
 notarization means.  I -- I mean, I -- I -- I used the word oath in           
 -- kind of on purpose, and ...                                                
                                                                               
 MS. MACNEILLE:  Okay.  And I ducked it.  I'll let Susie answer it.            
                                                                               
 MS. BARNETT:  Oh, great.  No, she gets the complaints.  Are you --            
 you asking what a complaint looks like and what -- what notarized             
 means.                                                                        
                                                                               
 REPRESENTATIVE ELTON:  I -- I guess I'm asking whether or -- I --             
 I -- whether or not there is a disincentive to file a false                   
 complaint.                                                                    
                                                                               
 MS. BARNETT:  Well, there is a part of the, you know, criminal code           
 that a false accusation brings -- I have to look it up and see what           
 the penalty is.  But yes, so there -- there -- there is that part,            
 that -- that certainly if you felt -- if, hypothetically, you                 
 received a complaint against you and you felt it was a false                  
 accusation, then you can go over to the criminal code and ...                 
                                                                               
 MS. MACNEILLE:  Class A misdemeanor, yeah.                                    
                                                                               
 REPRESENTATIVE ELTON:  And -- and -- and the notarization portion             
 of that is -- is what would trigger ...                                       
                                                                               
 MS. BARNETT:  Right.  They are saying that -- that I wrote this.              
 That I believe this.  That this is ...                                        
                                                                               
 REPRESENTATIVE ELTON:  And -- and I think the second point, and --            
 and I always hate restate something -- something that somebody else           
 has asked.  But the way I understood the second comment from the              
 Speaker was, could there be a -- a requirement that somebody who              
 has filed a complaint to participate in the process beyond, simply            
 filing the complaint.  And I ...                                              
 REPRESENTATIVE PHILLIPS:  That's correct.                                     
                                                                               
 REPRESENTATIVE ELTON:  And -- and is it -- can any party compel the           
 participation of another person so -- so either the person the                
 complaint was filed against, or the [indisc.--mic interference] the           
 committee, itself, can compel the attendance of anybody?                      
                                                                               
 MS. MACNEILLE:  Yeah, we have -- yeah -- can subpeona them.  And              
 I've looked at the complaint form which someone signs -- here's the           
 statement right above the signature:  I understand that a person              
 commits the crime of false accusation if the person knowingly, or             
 intentionally, initiates a false complaint with the Select                    
 Committee on Legislative Ethics; cites the statute.  The above is             
 a true, and accurate representation of my belief that a violation             
 of the legislative ethics law occurred; signature, subscribed and             
 sworn to before me this, blank -- that's the notary.  So, that's              
 the answer that you were given.                                               
                                                                               
 Number 811                                                                    
                                                                               
 CHAIRMAN KOTT:  Further questions.  Hearing none, seeing no one               
 jump to the fore front, I guess this concludes the questioning and            
 answer period.  Again, on behalf of the committee and many members            
 who are probably watching Gavel to Gavel at home, we thank you for            
 being so candid for enlightening us in the process.  I think all of           
 us have a good understanding of what you've gone through during the           
 course of this activity related to this particular matter.  Again,            
 I -- I thank you for coming down and being available to us.  It               
 certainly means a lot to -- to all of us.  Anybody else want to               
 make any ....                                                                 
                                                                               
 REPRESENTATIVE PORTER:  I -- if I may, Mr. Chairman.  I would just            
 say thank you very much for coming down and -- and taking the time            
 to help us try to deal with the situation that has gone on too                
 long, nobody's fault, but I think it's gone on too long and really            
 needs to be wrapped up and put to bed.  And you have helped that              
 process immensely.  And I -- I certainly want you to know from me,            
 and I'm sure from all the other members here, that any implication,           
 no matter how subtle, is incorrect that you're here because we feel           
 that you have done something wrong.  We, by statute, are forced to            
 deal with the recommendations that you have given us.  And in this            
 particular case, we just didn't have enough information to do that            
 appropriately.  And -- and you have helped us immensely towards               
 that end.  Our thanks.                                                        
                                                                               
 CHAIRMAN KOTT:  There was one final comment, now that I remember.             
 You made a comment that said something to the effect that, "After             
 I say this you're going to be more angry at us."  I don't think               
 that's the case.  No one is angry at you.                                     
                                                                               
 MS. MACNEILLE:  I -- I understand.  I -- I ...                                
                                                                               
 CHAIRMAN KOTT:  I remember, and ...                                           
                                                                               
 MS. MACNEILLE:  Impatience, I guess is the -- we don't -- we don't            
 often get to bring you good news.  And ...                                    
                                                                               
 REPRESENTATIVE PORTER:  I can relate to that.  [Indisc.--                     
 simultaneous-laughter].                                                       
                                                                               
 CHAIRMAN KOTT:  Okay.                                                         
                                                                               
 REPRESENTATIVE VEZEY:  Mr. Chair.                                             
                                                                               
 Number 927                                                                    
                                                                               
 CHAIRMAN KOTT:  Representative Vezey.                                         
                                                                               
 REPRESENTATIVE VEZEY:  I would like to comment that we all                    
 volunteered for this job.                                                     
                                                                               
 Number 938                                                                    
                                                                               
 CHAIRMAN KOTT:  This is true.  Thank you very much, again.  And               
 this committee will stand in recess until tomorrow at the Call of             
 the Chair.                                                                    
                                                                               
 [Chairman Pete Kott recessed the House Rules Committee meeting at             
 8:52 p.m.]                                                                    
                                                                               

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