Legislature(1995 - 1996)
04/27/1995 04:10 PM Senate STA
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SENATE STATE AFFAIRS COMMITTEE
April 27, 1995
4:10 p.m.
MEMBERS PRESENT
Senator Bert Sharp, Chairman
Senator Randy Phillips, Vice-Chairman
Senator Loren Leman
Senator Jim Duncan
MEMBERS ABSENT
Senator Dave Donley
[Due to a coinciding Finance Committee meeting, Senator Donley was
not present.]
COMMITTEE CALENDAR
SENATE BILL NO. 141
"An Act relating to legislative ethics; and providing for an
effective date."
SENATE BILL NO. 118
"An Act relating to credits against certain taxes for contributions
to certain public educational radio and television networks and
stations; and providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
SB 141 - See State Affairs minutes dated 4/20/95.
SB 118 - See State Affairs minutes dated 4/20/95.
WITNESS REGISTER
Margie MacNielle, Chairperson
House Subcommittee
Select Committee on Legislative Ethics
P.O. Box 101468, Anchorage, AK 99501-1468¶258-8172
POSITION STATEMENT: supports SB 141
Susie Barnett, Professional Assistant
Select Committee on Legislative Ethics
P.O. Box 101468, Anchorage, AK 99501-1468¶258-8172
POSITION STATEMENT: testified on SB 141
Brooke Miles, Juneau Branch Administrator
Alaska Public Offices Commission
P.O. Box 110222, Juneau, AK 99811-0222¶465-4864
POSITION STATEMENT: testified on SB 141
Senator John Torgerson
State Capitol, Juneau, Alaska, 99801-1182¶465-2828
POSITION STATEMENT: prime sponsor of SB 118
Bob Bartholomew, Deputy Director
Income & Excise Audit Division
Department of Revenue
P.O. Box 110420, Juneau, AK 99811-0420¶465-4773
POSITION STATEMENT: testified on SB 118
Diane S. Kaplan
KOAHNIC Broadcasting Corporation
P.O. Box 100108, Anchorage, AK 99510¶272-7997
POSITION STATEMENT: supports SB 118
ACTION NARRATIVE
SSTA - 4/27/95
TAPE 95-21, SIDE A
Number 001
SB 141 LEGISLATIVE ETHICS
CHAIRMAN SHARP calls the Senate State Affairs Committee to order at
4:10 p.m. and brings up SB 141 as the first order of business
before the committee. The chairman calls the first witness.
Number 020
MARGIE MACNIELLE, Chairperson of the House Subcommittee, Select
Committee on Legislative Ethics, testifying from Anchorage, informs
the committee that most changes made by SB 141 to the Legislative
Ethics law are simply technical changes. The full Ethics Committee
has reviewed the draft changes, and has voted unanimously to
forward the draft to the legislature for legislative consideration.
MS. MACNIELLE lists the substantive changes:
1) Increasing the gift threshold from $100 to $250;
2) Permitting the Ethics Committee to impose fines of $2 a day,
for a maximum $25 for late disclosures;
3) Listing possible sanctions for violations of the ethics code;
4) Changing the contract and lease section to allow those
covered by the ethics code to participate in contracts for
less than $5,000, with an added disclosure of participation.
MS. MACNIELLE lists the minor changes:
1) In Section 13, add "spousal equivalent", and replace the word
"clientele" with "employer", to avoid requiring reporting
every individual member of an association or trade group that
employs a lobbyist;
2) In Section 16, (c)(4) was added to the reference;
3) In Section 30, change the word "to" to "of."
Number 080
MS. MACNIELLE asks for support of SB 141 on behalf of the Select
Committee on Legislative Ethics.
Number 105
SUSIE BARNETT, Professional Assistant, Select Committee on
Legislative Ethics, states she does not have specific comments, but
is available to answer questions.
SENATOR LEMAN refers to Section 37. Senator Leman would like to
see the term "substantial interest" clarified to reflect
legislative intent at the time the Legislative Ethics Law was
passed. The current interpretation of "substantial interest" means
that legislators who earn money from businesses that pay more than
$5,000 in taxes to the State of Alaska, but who do not hire a
lobbyist, aren't involved in the legislative process, and do not
have any more interest in state government than would any citizen,
are required to report those sources and the amount of income
earned from those sources.
Number 152
MS. MACNIELLE responds that Section 37 deals with APOC, so the
Legislative Ethics Committee does not really have a position or an
interest in that section.
Number 215
BROOKE MILES, Juneau Branch Administrator for the Alaska Public
Offices Commission, responds that the status of the proposed
adopted regulations is 2.5 years down the line; they still have not
been finalized through the Department of Law. The regulations are
currently undergoing significant changes to the earliest drafts,
and Ms. Miles states she is not completely up-to-date on the
definition of "substantial interest." Ms. Miles states she will
get an answer from the Anchorage office of APOC for Senator Leman.
If the statute contained a definition for "substantial interest",
that would also solve the problem.
Number 245
SENATOR LEMAN suggests that the committee consider defining
"substantial interest", while it is working on SB 141. Senator
Leman asks if, since the regulations are not signed and are not
final, legislators are required to follow the booklet put out by
the APOC for filing disclosures.
Number 258
MS. MILES replies that the only thing that can be used as guidance
by APOC in preparing the manual and the form are the proposed
regulations. However, it is Ms. Miles understanding that proposed
regulations do not have the force of law.
Number 265
CHAIRMAN SHARP asks Senator Leman to work on a definition for
"substantial interest."
Number 288
SENATOR RANDY PHILLIPS asks Ms. Miles what percentage of requests
for financial disclosure reports are public requests.
Number 297
MS. MILES estimates that 15% of the requests are public requests.
Number 318
SENATOR LEMAN states he does not like the term "spousal
equivalent." He knows that term is already in statute, but he
thinks it destroys the sanctity of marriage. Senator Leman thinks
that to equate spousal equivalent to marriage and put it in the
force of law is inappropriate.
Number 333
SENATOR RANDY PHILLIPS informs the committee he will be offering an
amendment that will disallow spouses and spousal equivalents of
legislators from being lobbyists.
CHAIRMAN SHARP asks Senator Phillips if he has an opinion from
Legislative Legal Services regarding the legality of that
amendment.
SENATOR RANDY PHILLIPS responds he has received a verbal opinion
from Legal Services that the prohibition for money is legal, but
prohibition for nonprofit might interfere with freedom of speech.
Number 355
CHAIRMAN SHARP would like to address Section 36. He thinks some of
the recommended sanctions might disenfranchise voters. Chairman
Sharp announces that SB 141 will be set aside.
SSTA - 4/27/95
Number 368
SB 118 TAX CREDIT: GIFTS TO PUBLIC BROADCASTING
SENATOR SHARP brings up SB 118 as the next order of business before
the Senate State Affairs Committee and calls the first witness.
Number 373
SENATOR TORGERSON, prime sponsor of SB 118, informs the committee
that SB 118 is an attempt to plug some of the gaps in funding for
public broadcasting that were created by budget cuts. The original
intent of the bill was to allow up to a $100,000 tax credit. It is
his intent to create a true public-private partnership in the face
of declining revenue. Senator Torgerson understands there might be
a motion to adopt the house version of this legislation, which is
quite different from SB 118.
Number 390
SENATOR LEMAN states he has not seen a proposed committee
substitute.
CHAIRMAN SHARP does not have one either.
SENATOR LEMAN comments that SB 118 seems to be reasonably
consistent with existing tax credits. But if it [the house
version?] is substantially different, he would want to give it
careful scrutiny.
SENATOR TORGERSON states it [the house version?] will increase the
amount available for a tax credit to $350,000, and includes other
categories. It also has a sunset at five years.
SENATOR LEMAN asks if it [the house version?] keeps the credit at
50% of the amount given.
SENATOR TORGERSON replies he would have to defer to his staff on
that question.
Number 427
BOB BARTHOLOMEW, Deputy Director of the Income & Excise Audit
Division, Department of Revenue, informs the committee that there
is currently in statute a provision for taking a tax credit for
contributions to postsecondary educational institutions. This bill
would expand that credit to cover public broadcasting
contributions. The estimated fiscal impact of SB 118 is about
$845,000. This figure is included in the department's fiscal note.
CHAIRMAN SHARP asks what amount was taken for education credits
last year.
MR. BARTHOLOMEW responds that $944,000 in education tax credits
were taken last year.
SENATOR RANDY PHILLIPS asks Ms. Kaplan to convey her concerns to
the committee.
Number 460
DIANE KAPLAN, KOAHNIC Broadcasting Corporation, states the purpose
of SB 118 is to encourage increased private contributions from
corporations in Alaska. The goal is to begin an endowment fund to
begin to replace some of the state funding that has been lost over
the last ten years, and to preserve essential services throughout
the state. The house version of the bill that was adopted
originally had a $500,000 cap, with no sunset date. The committee
substitute that was reported from the House Finance Committee
places a $350,000 maximum on tax credits, with a five-year sunset
provision. It also includes the fish-landing tax as one of the
eligible taxes. We consider this to be the most important piece of
legislation for public broadcasting this year: in addition to
encouraging new private contributions, it also increases the
ability of corporations to donate to higher education. Ms. Kaplan
hopes that the Senate State Affairs Committee will adopt a senate
committee substitute that matches the house version of the bill.
She thinks it is important that public broadcasting and higher
education not be put in competition for the same level of
contributions.
Number 483
SENATOR LEMAN asks, why not allow for donations to primary and
secondary education, in addition to donations for postsecondary
education?
Number 499
SENATOR RANDY PHILLIPS comments he would like to keep the bill
moving, and asks if a committee substitute can be presented when
the bill is in the Finance Committee.
CHAIRMAN SHARP adds that he would be more comfortable moving the
original bill, than something he hasn't seen.
Number 510
SENATOR LEMAN states he is not on the Finance Committee, and he
thinks the committee should consider expanding SB 118 to include
contributions towards primary and secondary education.
CHAIRMAN SHARP notes that any diversion from the general fund is a
dilution of funds available for appropriation.
Number 545
SENATOR LEMAN states he intends to offer an amendment to include K-
12 education in the state.
SENATOR RANDY PHILLIPS asks if that would be constitutional,
especially if the money was contributed to a private, religious
school.
SENATOR LEMAN responds that it's not unconstitutional to make tax-
deductible contributions to a church.
SENATOR TORGERSON adds that Senator Leman's suggestion would also
require a title change.
Number 563
CHAIRMAN SHARP states he would just as soon hold the bill over to
work on those suggestions, if it is the desire of the committee to
make such substantial changes to the bill.
Number 567
MS. KAPLAN expresses concern that if too many items, or even any
other beneficiaries are added to SB 118, it would so dilute the
amount of money that would go to any one entity, that it would not
make a meaningful difference. She also thinks adding on other
items would make it harder to pass the bill.
Number 580
SENATOR LEMAN expresses disagreement with Ms. Kaplan's previous
statement.
CHAIRMAN SHARP states the committee will hear SB 118 again, as soon
as the committee substitute for the bill is prepared.
Number 590
CHAIRMAN SHARP adjourns the Senate State Affairs Committee meeting
at 4:55 p.m.
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