Legislature(1997 - 1998)

03/11/1997 03:40 PM Senate STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                 SENATE STATE AFFAIRS COMMITTEE                                
                         March 11, 1997                                        
                            3:40 p.m.                                          
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
 Senator Lyda Green, Chairman                                                  
 Senator Jerry Ward, Vice-chair                                                
 Senator Jerry Mackie                                                          
 Senator Jim Duncan                                                            
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
 Senator Mike Miller                                                           
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
 SENATE BILL NO. 105                                                           
 "An Act relating to legislative ethics; relating to the filing of             
 disclosures by certain legislative employees and officials; and               
 providing for an effective date."                                             
                                                                               
  HEARD AND HELD                                                               
                                                                               
  PREVIOUS SENATE COMMITTEE ACTION                                             
                                                                               
 SB 105 - No previous Senate committee action.                                 
                                                                               
  WITNESS REGISTER                                                             
                                                                               
 Ben Brown, Legislative Assistant                                              
 Senate Rules Committee                                                        
 Alaska State Capitol                                                          
 Juneau, Alaska  99801-1182                                                    
  POSITION STATEMENT:   Testified for the Senate Rules Committee,              
 sponsor of SB 105.                                                            
                                                                               
 Senator Drue Pearce                                                           
 Alaska State Capitol                                                          
 Juneau, Alaska  99081-1182                                                    
  POSITION STATEMENT:   Provided a sectional analysis of SB 105.               
                                                                               
 Terry Cramer                                                                  
 Legislative Legal and Research Services                                       
 Legislative Affairs Agency                                                    
 130 Seward St., Ste. 409                                                      
 Juneau, Alaska  99801-2105                                                    
  POSITION STATEMENT:   Answered questions on SB 105.                          
                                                                               
 Susie Barnett, Professional Assistant                                         
 Select Committee on Legislative Ethics                                        
 P.O. Box 101468                                                               
 Anchorage, AK   99510-1468                                                    
  POSITION STATEMENT:   Answered questions on SB 105.                          
                                                                               
 Joe Donahue, Member                                                           
 Select Committee on Legislative Ethics                                        
 P.O. Box 101468                                                               
 Anchorage, AK  99510-1468                                                     
  POSITION STATEMENT:   Answered questions on SB 105.                          
                                                                               
 Carol Olson                                                                   
 11641 Paddock Lane                                                            
 Anchorage, AK  99516                                                          
  POSITION STATEMENT:   Commented on SB 105.                                   
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
 TAPE 97-10, SIDE A                                                            
 Number 00                                                                     
                                                                               
  CHAIRMAN LYDA GREEN  called the Senate State Affairs Committee               
 meeting to order at 3:40 p.m.  Present were Senators Mackie, Ward,            
 and Green.  SB 105 was before the committee.                                  
             SB 105 LEGISLATIVE ETHICS CODE REFORM                            
                                                                              
  BEN BROWN , staff to Senator Tim Kelly, chairman of the Senate Rules         
 Committee, gave the following overview of SB 105.  SB 105 was                 
 introduced by request of the Select Committee on Legislative Ethics           
 and represents the purest consensus that could be arrived at by               
 that committee.  Since the Legislature enacted the Legislative                
 Ethics Code four years ago, oversights in the Code have become                
 apparent.  A few subsequent changes, as well as a few housekeeping            
 changes, are necessary to improve the law, and protect the public,            
 legislature, and others involved in the political process from                
 misuses and to ensure it is applied in a realistic, meaningful way.           
                                                                               
  SENATOR DRUE PEARCE , a member of the Legislative Ethics Committee,          
 gave a brief history of ethics legislation.  The ethics committee             
 began drafting legislation in 1994; a bill was introduced in both             
 the House and Senate in 1995.  The Senate State Affairs Committee,            
 chaired by Senator Sharp, heard the bill once in 1995, and several            
 times in 1996.  Senator Donley recommended many of the amendments             
 made to the bill in that committee.  The Senate Rules Committee               
 then substantially amended the bill to include the Executive Branch           
 and the bill passed the Senate 17 to 3.  House Finance heard the              
 bill in the final week of session and adopted several amendments.             
 A few members of that committee recommended rewriting the section             
 dealing with the Executive Branch to eliminate any overlap and                
 other identified problems.  The bill was held over on the last                
 night of the regular session and did not receive a hearing.  Part             
 of the controversy centered on the provision disallowing spouses of           
 legislators from lobbying.  SB 105 is the product of a subcommittee           
 of the Legislative Ethics Committee that worked during the interim            
 in 1996 to revise the measure.  The Executive Branch section has              
 been deleted because that is not within the purview of the                    
 Legislative Ethics Committee.  In addition, the bill contains many            
 housekeeping provisions.                                                      
                                                                               
 Number 130                                                                    
                                                                               
  CHAIRMAN GREEN  asked Senator Pearce to provide an overview of the           
 provisions in the bill.                                                       
                                                                               
  SENATOR PEARCE  referred the committee to a memo from Susie Barnett,         
 staff to the Select Committee on Legislative Ethics, dated February           
 28, 1997, and explained the sections of SB 105 as follows.                    
                                                                               
 Section 1 has been in the bill since 1994, and grants the ethics              
 committee subpoena powers.  It amends the statute that sets out               
 general authority for subpoena power to the ethics committee,                 
 Legislative Council, and Legislative Budget and Audit Committee by            
 removing the requirement that the Senate President or Speaker of              
 the House concur with the ethics committee before it can issue a              
 subpoena. The other two committees were exempted from that                    
 requirement and the ethics committee believes its exclusion from              
 that exemption was an oversight.                                              
                                                                               
 Section 2 allows legislators to store and maintain campaign                   
 records, such as APOC reports, in legislative offices, provided the           
 records are not displayed publically.  A strict reading of the                
 current statute prohibits keeping any APOC records in legislative             
 offices.  The ethics committee has made a liberal reading of the              
 current statute and has requested this change.                                
                                                                               
 Section 3 expands the prohibition against the use of state funds              
 for printing or distributing mass mailings from, or about, a                  
 legislator who is a candidate for state office to legislators and             
 legislative employees who are candidates for federal or municipal             
 offices, and to candidates for telephone or electrical                        
 cooperatives.  Senator Pearce explained if a legislator entered the           
 Anchorage mayoral race, he/she would not be able to use state funds           
 to send a mass mailing during the 90 days prior to the election.              
                                                                               
 Number 199                                                                    
                                                                               
 Section 4 adds fundraising notices to the list of prohibitions on             
 distributing or posting campaign literature in state facilities.              
                                                                               
 Section 5 increases the disclosure period for appointment to a                
 board from 30 to 60 days, and requires the ethics committee to                
 publish the disclosures in the journal.                                       
                                                                               
 Section 6 changes the prohibition on taking legislative,                      
 administrative, or political action to a disclosure requirement               
 prior to taking action if one has any of the following interests              
 listed in the amendment: equity or ownership interest, an                     
 employment interest, an interest in a contract, or an interest                
 created by board membership.  It also sets out that the disclosure            
 is to be publically announced if the action taken is during a                 
 committee meeting or on the floor.                                            
                                                                               
  SENATOR PEARCE  said the discussion on this section focussed on the          
 fact that if one can take action that could create a personal gain            
 by disclosing a conflict of interest, the disclosure should be                
 informative as to what the conflict is.  Disclosures must reveal              
 the nature of one's financial interest and a short description of             
 how the action might affect that interest.  She noted many                    
 legislators already disclose conflicts of interest at the committee           
 level; Section 6 requires that disclosure.                                    
                                                                               
 Section 7 adds a new subsection that requires the ethics committee,           
 when determining whether an employee was performing a task on                 
 government time, to consider the employee's work schedule set by              
 the employee's supervisor.  It requires an employee to take leave             
 time for periods he or she is engaged in campaign activities.                 
 Campaign activities are permissible on government time if those               
 activities are part of the normal legislative duties, including               
 answering phone calls and handling incoming correspondence.                   
  SENATOR PEARCE  commented legislative members of the ethics                  
 committee pointed out to the committee there is no way to stop mail           
 from coming, some of which is campaign related, nor can one stop              
 all incoming phone calls on campaign related matters, especially              
 during the campaign season.                                                   
                                                                               
 Section 8 clarifies restrictions on fundraising activities.  Funds            
 can not be raised while either house is in regular or special                 
 session.  The proposed language removes the phrase "campaign                  
 purposes" to clarify this restriction is limited to state                     
 legislative political purposes.   SENATOR PEARCE  explained two years         
 ago some legislators received campaign contributions before session           
 began, but did not deposit those checks until after session                   
 started.  The ethics committee advised those legislators to refund            
 the contributions.  Section 8 clarifies the cut-off time for                  
 receipt of contributions and was in last year's bill.                         
                                                                               
 Number 266                                                                    
                                                                               
  SENATOR MACKIE  asked if the restriction is in effect from gavel to          
 gavel of the 120 day session.                                                 
                                                                               
  MS. TERRY CRAMER , Division of Legal Services, Legislative Affairs           
 Agency, answered the time period would begin on midnight of the day           
 of the first gavel to midnight on the day of the last gavel of the            
 120 day session.                                                              
                                                                               
  SENATOR PEARCE  clarified a legislator cannot hold a fundraising             
 breakfast on the day session begins, nor on the day of adjournment.           
                                                                               
  SENATOR MACKIE  questioned whether removal of the phrase "campaign           
 purposes or to raise money for"  would allow a person running for             
 a municipal race to raise money during the legislative session,               
 whereas that activity is prohibited now.    MS. CRAMER  said the              
 change allows for fundraising for elections other than state                  
 legislative races.   SENATOR MACKIE  confirmed a legislator, under            
 current law, cannot do any fundraising for a municipal or                     
 legislative race right now.                                                   
                                                                               
 Number 300                                                                    
                                                                               
  SENATOR WARD  asked whether a sitting legislator could sponsor a             
 fundraiser in Juneau for a mayoral candidate.                                 
                                                                               
  SUSIE BARNETT,  professional assistant to the Select Committee on            
 Legislative Ethics, explained Section 8 pertains to accepting money           
 from an event held during the legislative session and advised a               
 legislator could sponsor a fundraiser for a mayoral candidate.   MR.          
 CRAMER  added soliciting is covered in Section 8(a)(1) and limits             
 the prohibition to state legislative campaigns so a legislator may            
 solicit funds for another, as long as the candidate is not running            
 for a legislative seat.                                                       
                                                                               
  SENATOR MACKIE  asked whether there is another section of the Ethics         
 Act that prohibits a legislator from soliciting funds for another             
 candidate.   MS. CRAMER  read AS 24.60.031 (a)(1) and interpreted             
 existing language to mean a legislator cannot solicit or accept               
 funds for any state legislative campaign, whether their own or not.           
  SENATOR MACKIE  affirmed that the absence of any reference to                
 mayoral or gubernatorial races means funds could be raised for                
 those races.   MS. CRAMER  thought that was correct.                          
                                                                               
 Number 334                                                                    
                                                                               
  SENATOR DUNCAN  commented he was informed, through an informal               
 advisory opinion from the Ethics Committee, that he, as a sitting             
 legislator, could not hold a fundraiser for a non-legislator. The             
 reasoning was that as a sitting legislator, he might influence who            
 would attend and contribute.   MS. BARNETT  explained that issue was          
 different because the contributions the Senator would have been               
 soliciting would have been gifts, not campaign contributions.                 
  SENATOR DUNCAN  clarified it would have been okay had Fred Zharoff           
 filed to run for Mayor of Anchorage, but not for other reasons.               
                                                                               
  SENATOR PEARCE  said Senator Lincoln was able to hold fundraisers            
 during last session when she was running for a congressional seat             
 because of the federal preemption.   Current language in the Ethics           
 Code prohibits fundraising for campaign purposes, and although                
 federal campaigns are preempted, the current prohibition still                
 applies to mayoral and gubernatorial races.                                   
  Number 360                                                                   
                                                                               
 SENATOR DUNCAN  questioned why a Representative who ran for                   
 Lieutenant Governor was able to raise money during a session two or           
 three years ago.   MS. BARNETT  replied that person was not allowed           
 to accept money from events being held during sessions, but was               
 allowed to accept money from political mailings.                              
                                                                               
  SENATOR MACKIE  believed another section of the Ethics Code                  
 specifically pertains to statewide offices, and the change in SB
 105 is specific to legislative seats.                                         
                                                                               
  CHAIRMAN GREEN  asked whether any of the provisions in the campaign          
 finance reform law that passed last year overlay SB 105 and create            
 greater prohibitions.                                                         
                                                                               
  SENATOR PEARCE  said no legislator can raise money this year for a           
 legislative race but those legislators who are up for re-election             
 next year will be able to raise money during restricted time                  
 periods.  Under the new campaign finance reform law, mayoral                  
 candidates can raise money for 90 or 120 days prior to the                    
 election.  She thought, but was not sure, legislators can start               
 raising money after session is over.                                          
                                                                               
  SENATOR PEARCE  said fixing some of the inequities and                       
 contradictions in the Ethics Code so that Alaskans feel complaints            
 are dealt with fairly will hopefully keep     the Legislature from            
 finding itself faced with the same situation created by the                   
 initiative for campaign finance reform.  She thought an initiative            
 ethics bill would be much more difficult to live with than a bill             
 drafted by the Legislature.  She cautioned if legislative action is           
 not taken, it is possible an initiative will be filed.                        
                                                                               
  SENATOR MACKIE  commented he served on the ethics committee for the          
 past four years, and the bill provisions can be interpreted in                
 different ways by different people because it was put together in             
 hastily.  The bill dealt with a lot of necessary changes under the            
 Ethics Code, but the actual application of some provisions became             
 very confusing.  The ethics committee spent a lot of time reviewing           
 sections to come to a consensus about what those sections meant.              
 He believed it is very important to clarify exactly what the                  
 sections mean for the committee's and public's benefit.                       
                                                                               
 Number 422                                                                    
                                                                               
  CHAIRMAN GREEN  stated her goal is to complete the sectional                 
 analysis of SB 105 today, then allow a short amount of time for               
 anyone interested to prepare and submit amendments, but not to                
 spend a lot of time rehashing the same conversations.                         
                                                                               
  SENATOR PEARCE  explained Section 9 gives the ethics committee the           
 right to refer an employment discrimination complaint directly to             
 the Human Rights Commission (HRC) and to defer any consideration              
 until that proceeding is completed to prevent two proceedings from            
 occurring simultaneously.                                                     
                                                                               
  CHAIRMAN GREEN  asked if the complainant can file a lawsuit after            
 those proceedings.   MS. CRAMER  said yes.   SENATOR PEARCE  explained        
 if the HRC finds that a legislative employer has committed a                  
 violation, it would make recommendations to the ethics committee.             
 The HRC does not have the power of enforcement against a                      
 legislator.  She added the last employment discrimination case                
 filed against a legislator was handled by the Legislative Council             
 because both the legislator left office and the employee left the             
 job.                                                                          
                                                                               
 Number 458                                                                    
                                                                               
  SENATOR PEARCE  continued with the sectional analysis.  Section 10           
 broadens the contract and lease requirement beyond the current                
 code.   The new language allows participation in contracts or                 
 leases that are let under AS 36.30 (Procurement Code), including              
 sole source awards, and applies to contracts with other agencies              
 such as the Alaska Railroad Corporation and University of Alaska.             
 The new language increases the reporting threshold from $1,000 to             
 $5,000 and eases the family member disclosure requirement.                    
                                                                               
  SENATOR MACKIE  questioned whether the family member disclosure              
 requirement would apply to immediate family members only.   SENATOR           
 PEARCE  said it only applies to immediate family members.                     
                                                                               
 Section 11 clarifies that a grant, contract, or lease, issued under           
 AS 24.60.050, is not subject to the requirement in Section 10.                
                                                                               
 Section 12 allows the ethics committee to protect an individual's             
 right to privacy concerning participation in state loan or benefit            
 programs regarding disclosure.  Section 12 follows a 1994 advisory            
 opinion issued by the ethics committee explaining why it chose not            
 to publish the name of a person who received a benefit from the               
 Violent Crimes Compensation Committee.  The ethics committee did              
 disclose that a person covered under the ethics code did receive a            
 benefit, but did not disclose the name.  Section 12 codifies                  
 previous activity.                                                            
                                                                               
 Section 13 allows the ethics committee to broaden discovery while             
 still protecting any innocent or non-involved parties.  Allegations           
 have been made in which people who were not part of the actual                
 complaint had to become involved.  Section 13 would protect the               
 privacy of those people.  The subject of the complaint would have             
 access to that information but could not release it if a protective           
 order was issued.                                                             
                                                                               
 Section 14 establishes a February 15 disclosure deadline for                  
 existing close economic associations, and a 60 day disclosure                 
 requirement for new close economic associations.  These disclosure            
 deadlines are consistent with other disclosure requirements in SB
 105.                                                                          
                                                                               
 Section 15 requires legislators, or legislative employees, who are            
 married to lobbyists, or to spousal equivalents who lobby, to                 
 disclose the name and address of each of the lobbyist's clients and           
 the total monetary value received from the clients annually.                  
 Changes to the list would have to be reported within 48 hours.  The           
 nine-member ethics committee did not have the votes to recommend a            
 ban on spousal lobbying but did agree on the disclosure                       
 requirements.                                                                 
                                                                               
 Number 523                                                                    
                                                                               
  SENATOR WARD  asked for the definition of a "spousal equivalent."            
  MS. CRAMER  answered the definition is included at the end of the            
 bill.                                                                         
                                                                               
 Section 16 increases the annual gift limit from $100 to $250 and              
 clarifies that the gifts covered under subsection (c) are excepted            
 from the general prohibition on accepting gifts.  The gifts on                
 behalf of charitable organizations is a new subsection.  Charitable           
 organizations would be exempted from prohibitions on both accepting           
 and soliciting gifts.  Senator Pearce explained that she, as a                
 board member of the Alaska Special Olympics Committee, could                  
 solicit money for that organization.   Other new language restricts           
 legislators and legislative employees from accepting, from                    
 lobbyists during session, anything of monetary value, other than              
 food or beverages for immediate consumption.                                  
                                                                               
  CHAIR GREEN  asked if legislators can accept any gifts during                
 session.   MS. CRAMER  clarified no gifts can be accepted from                
 lobbyists, but subsection (c) lists those gifts that are acceptable           
 from others, with disclosure.                                                 
                                                                               
  SENATOR PEARCE  explained Section 17 pertains to hospitality and             
 allows legislators to accept incidental transportation or to stay             
 at the residence of a person, but not at a vacation home outside of           
 the state.  She commented legislators would not be able to stay at            
 a lobbyist's home in Palm Springs for two months.  Also legislators           
 and legislative employees would be allowed to accept discounts                
 while on state business if the discount benefits the state.                   
                                                                               
 Number 557                                                                    
                                                                               
  SENATOR MACKIE  asked whether the prohibition against hospitality at         
 a vacation home pertains to lobbyists' homes only.   MS. CRAMER               
 explained it is not limited to lobbyists' homes only.   SENATOR               
 MACKIE  asked if that would apply to the home of a friend.   MS.              
 CRAMER  said subsection (6) would apply, and requires that the                
 hospitality not be connected to the recipient's legislative status.           
  SENATOR WARD  asked if he could accept an invitation on                      
 Representative Cowdery's boat for a fishing trip, which might be              
 valued at $2500 per day.   SENATOR PEARCE  said the committee                 
 discussed whether legislators can accept gifts from other                     
 legislators, and assumed those invitations are not for the purpose            
 of getting something in return.  She explained if BP invites a                
 legislator to take a trip on one its tankers from Valdez to Long              
 Beach, as opposed to a trip from Valdez to the Mediterranean, the             
 trip could be considered acceptable because the legislator would be           
 learning about state business.                                                
                                                                               
  SENATOR DUNCAN  questioned whether a legislator could accept an              
 invitation from a lobbyist to go out fishing on a lobbyist's boat             
 during session.  He noted that is a common occurrence.   SENATOR              
 PEARCE  replied page 9, line 9 pertains to social events.   She               
 explained the provision for incidental travel and hospitality                 
 within the state was included to cover situations where a                     
 legislator travels to rural areas of the state and stays with                 
 friends or associates because other accommodations are not                    
 available.  She said legislators must use common sense and decide             
 whether the invitation is only connected to one's legislative                 
 status.                                                                       
                                                                               
 TAPE 97-10, SIDE B                                                            
                                                                               
  SENATOR DUNCAN  asked Ms. Barnett how the fishing trip on a                  
 lobbyist's boat would be viewed.   MS. BARNETT  answered one could            
 eliminate the invitation as a gift by contributing to the                     
 experience, meaning if the legislator contributes gas money, or               
 food for the trip in an equal manner, it would not be considered a            
 gift.   SENATOR DUNCAN  asked, if the lobbyist invited five                   
 legislators, whether they would all have to provide food or gas.              
  MS. BARNETT  said they would have to make some contribution                  
 otherwise it would considered a gift and would fall under the $250            
 limit under SB 105.                                                           
                                                                               
  SENATOR WARD  asked if he could accept an invitation from a lobbyist         
 to take a float plane trip to Petersburg to fish for the day.   JOE           
 DONAHUE  commented it is difficult to make on-the-spot advisory               
 opinions because all of the facts are not available, but he added             
 legislators must view such a trip from the public's perspective.              
 He added he cannot speak for the committee, but expressed concern             
 about the fact that the trip would be with a lobbyist.                        
                                                                               
  SENATOR WARD  repeated his question about accepting an invitation            
 for a plane or boat trip from another legislator.   MS. BARNETT               
 replied those invitations would be viewed as gifts, and if the                
 value is over $100, under current law, one must reduce the value of           
 the gift, or not accept it.                                                   
                                                                               
  SENATOR PEARCE  commented some legislators' friendships began long           
 before they came to the legislature, and that invitations among               
 those legislators are not related to legislative status.   MS.                
 BARNETT  answered if Senator Ward and the other legislator could              
 clarify that relationship is unrelated to their legislative status            
 and disclose it under Section 17(c)(6), then the gift would be                
 acceptable.                                                                   
                                                                               
  SENATOR PEARCE  noted some states have dealt with the problem of             
 trying to define what constitutes a gift by prohibiting legislators           
 from accepting anything, including a cup of coffee, from anyone.              
 Section 17 is an effort to create a common sense approach to one's            
 actions.                                                                      
                                                                               
  SENATOR MACKIE  felt the gift provision needs further clarification          
 because legislators should not have to discard friendships or other           
 relationships.  He noted Alaska is a small state and many                     
 legislators have been long-time friends.  He said under SB 105, a             
 legislator could not go fishing on a lobbyist's boat because                  
 Section 16 only allows the legislator to accept food or beverages             
 for immediate consumption. Senator Mackie believed the legislation            
 should be specific so that a legislator does not have to wait until           
 a complaint is filed and then have to justify the acceptance of a             
 particular invitation.                                                        
                                                                               
 Number 460                                                                    
                                                                               
  SENATOR PEARCE  suggested Senator Mackie head up a subcommittee on           
 the issue.   SENATOR MACKIE  responded SB 105 goes a long way to              
 correct some existing problems, but the opportunity to discuss                
 actual scenarios has never occurred.  He stated the original bill             
 was very poorly crafted.                                                      
                                                                               
  SENATOR PEARCE  explained Section 18 corresponds to changes made to          
 the previous section and raises the gift limit to $250 and requires           
 disclosure of the donor's name and a description of the gift.                 
                                                                               
 Section 19 makes a technical change in response to the new campaign           
 finance reform law and allows certain contributions to small budget           
 campaigns to fall within the contribution definition.  In that law,           
 small budget campaigns were exempted from the reporting                       
 requirement; Section 19 conforms to that provision.                           
                                                                               
 Section 20 allows acceptance of a gift from a foreign government,             
 or the U.S. or a state government, for protocol purposes, but                 
 requires that those gifts be transferred to the legislative                   
 council.                                                                      
                                                                               
 Section 21 defines who is considered an immediate family member,              
 and includes spousal equivalents.                                             
                                                                               
 Section 22 contains several provisions pertaining to gifts.  It               
 permits legislators to accept gifts on behalf of charitable                   
 organizations; and requires the reporting of an inheritance, but              
 not its value, from a person other than a family member.  It                  
 establishes that a gift of volunteer services may be accepted by a            
 legislator as a gift to the state.  It also requires volunteers and           
 those involved in educational training to comply with the ethics              
 code.  A nepotism extension allows family members to volunteer                
 their time.  The proposed language in subsection (k) pertains to              
 gifts to family members of legislators or legislative employees, so           
 that if the gift was received because of the connection, it                   
 requires disclosure.  The language "or reasonably should know" in             
 subsection (k) is intended to relieve the burden on those covered             
 from researching gifts to family members whom they have little or             
 no contact with.                                                              
                                                                               
 Number 397                                                                    
                                                                               
  SENATOR MACKIE  asked whether subsection (k) only refers to minor            
 children, or children living at home, or those one has some                   
 semblance of control over.   MS. CRAMER  said they do not have to be          
 dependent children but the gift does have to be received by a                 
 family member because of the relationship to the legislator.                  
                                                                               
  CAROL OLSON , representing herself, testified via teleconference             
 from Anchorage and made the following comments.  Section 8 needs              
 greater clarification.  She suggested retaining the words "during             
 a legislative," "either," and "campaign purposes or to raise money            
 for."  She questioned why the phrase "through competitive sealed              
 bidding" was removed from Section 10 and thought its removal to be            
 unacceptable from the public's perspective.  With regard to Section           
 16, she expressed concern about the large increase, from $100 to              
 $250, for the value of gifts.  Also, public employees are barred              
 from accepting food or beverages for immediate consumption so there           
 is no reason legislators should have that ability.  She felt those            
 who are more in need of discounts under section 17(c)(7) are                  
 prohibited from accepting them.  Regarding the question about                 
 accepting a fishing trip on a lobbyist's boat, she felt that would            
 be inappropriate, despite any contribution to the trip made by the            
 legislator.                                                                   
                                                                               
  CHAIR GREEN  clarified that state employees are not prohibited from          
 accepting food or beverages for immediate consumption, although               
 federal employees may be.   MS. OLSON  noted she was referring to             
 municipal employees who are unable to accept such gifts.                      
                                                                               
 Number 294                                                                    
                                                                               
  SENATOR PEARCE  explained Section 23 allows legislators and                  
 legislative employees to accept compensation less than fees                   
 generally charged, to allow an attorney to do pro bono work, or an            
 engineer to review plans, for a non-profit organization.                      
                                                                               
  SENATOR PEARCE  stated current law does not set reporting deadlines          
 for representation before a state agency.  Section 24 corresponds             
 to other deadline changes of February 15 and 60 days for new                  
 representation.                                                               
                                                                               
 Section 25 sets out a reporting deadline of February 15 for                   
 disclosures of interests in state contracts, board memberships,               
 close economic associations, and representation of clients.                   
                                                                               
 Section 26 corrected a drafting oversight by formalizing                      
 entitlement of the public members of the ethics committee to                  
 receive per diem and travel compensation.  The public members are             
 not entitled to be paid for their time in service to the committee.           
                                                                               
 Sections 27 and 28 prohibit an ethics committee member from                   
 participating in a complaint against one who is supervised by that            
 member and establishes a procedure for appointment.  Current law              
 sets out that if a member is disqualified during the legislative              
 session, the presiding officer must have two-thirds concurrence to            
 appoint another member for that proceeding.  If disqualification              
 occurs during the interim, the presiding officer appoints a new               
 member with the concurrence of the House subcommittee.  Involving             
 either body of the Legislature defeats confidentiality.  Section 28           
 directs presiding officers to appoint alternates for two-year terms           
 who would serve when appointed by the committee chair.                        
                                                                               
 Section 29 clarifies prohibitions of participation in political               
 management or in a political campaign extend to ballot initiatives            
 and to campaigns for federal, state and local offices, regardless             
 of whether the campaign is partisan or nonpartisan.  A public                 
 member, employee, or contractor of the committee may not attend a             
 fundraiser or make a political contribution to a political party,             
 legislative candidate, incumbent legislator, or legislative                   
 employee running for another public office, or to their opponents             
 in legislative races.                                                         
                                                                               
  SENATOR MACKIE  asked if a committee member's spouse could                   
 contribute or participate in a campaign.   SENATOR PEARCE  did not            
 know how the federal law worked on that issue, but did not think              
 the state has the authority to reach that far.                                
                                                                               
  SENATOR PEARCE  stated Section 30 permits a contractor with the              
 ethics committee to request the committee to exempt some members of           
 the corporation or partnership from having to comply with some or             
 all prohibitions against political activity.  The committee has               
 contracted for outside legal counsel with an attorney who is part             
 of a large firm with branch offices outside of Alaska.  A strict              
 reading of current law might mandate all employees of that law firm           
 to comply with Alaska's ethic code.                                           
                                                                               
 Section 31 permits the committee to adopt guidelines to implement             
 this chapter under a public process and provides that a person who            
 acted within the guidelines could not be penalized for violating              
 the ethics code.  The current procedure of issuing advisory                   
 opinions allows interpretations based only on the facts presented             
 to the requestor.  Senator Pearce explained when someone asks for             
 an advisory opinion, the ethics committee must give an opinion                
 based only on the information provided.   The committee feels if it           
 had the ability to set guidelines, based on a broad set of                    
 circumstances, it could assist the requestor and others covered by            
 the code, to avoid inadvertent violations.                                    
                                                                               
 Number 190                                                                    
                                                                               
  SENATOR MACKIE  questioned if the committee would provide those              
 covered with a set of guidelines and have them apply their own                
 circumstances, rather than issue advisory opinions.   SENATOR PEARCE          
 replied the committee would continue to give advisory opinions but            
 could then adopt guidelines to apply to everyone.                             
                                                                               
    SENATOR PEARCE  said she was responsible for the amendments last           
 year which pertained to the Executive Ethics Act.  She urged the              
 committee to adopt a code of ethics, in SB 105, for the executive             
 branch, that mirrors the standards in the legislative ethics law.             
 The current Executive Ethics Act is extremely loose, and in some              
 cases there is reason to believe that behavior that should be dealt           
 with is never reviewed by anyone.  She offered to work with the               
 committee to provide language to amend the bill.                              
                                                                               
 Number 145                                                                    
                                                                               
  CHAIR GREEN  requested anyone interested in submitting draft                 
 amendments or suggestions to provide those to committee staff.                
                                                                               
  SENATOR MACKIE  said he would be interested in using language                
 regarding gifts, discussed in the past, from the Open Meetings Act,           
 that allows for participation in events that are purely social and            
 not connected with legislative business.  He noted legislative                
 basketball and bowling leagues exist, as well as other                        
 circumstances, that should be discussed.                                      
                                                                               
  CHAIR GREEN  announced SB 105 would be heard again on Thursday,              
 March 13.  There being no further business, the meeting was                   
 adjourned at 5:09 p.m.                                                        
                                                                               

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