04/09/2008 09:00 AM Senate STATE AFFAIRS
| Audio | Topic | 
|---|---|
| Start | |
| HB305 | |
| HB366 | |
| HB368 | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 368 | TELECONFERENCED | |
| += | HB 305 | TELECONFERENCED | |
| + | HB 366 | TELECONFERENCED | |
| + | TELECONFERENCED | 
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         April 9, 2008                                                                                          
                           9:15 a.m.                                                                                            
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lesil McGuire, Chair                                                                                                    
Senator Gary Stevens, Vice Chair                                                                                                
Senator Hollis French                                                                                                           
Senator Lyda Green                                                                                                              
Senator Con Bunde                                                                                                               
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
CS FOR HOUSE BILL NO. 305(RLS) am                                                                                               
"An Act  relating to  campaign fund raising  during a  regular or                                                               
special  legislative  session;  and providing  for  an  effective                                                               
date."                                                                                                                          
     MOVED SCS CSHB 305(STA) OUT OF COMMITTEE                                                                                   
                                                                                                                                
HOUSE BILL NO. 366 am                                                                                                           
"An  Act  relating to  an  exemption  from public  disclosure  of                                                               
certain  appropriations  from  the  dividend  fund;  relating  to                                                               
execution  upon  permanent  fund dividends  by  civilian  process                                                               
servers  using electronic  procedures; amending  Rule 89,  Alaska                                                               
Rules of Civil Procedure; and providing for an effective date."                                                                 
     MOVED HB 366 am OUT OF COMMITTEE                                                                                           
                                                                                                                                
CS FOR HOUSE BILL NO. 368(FIN) am                                                                                               
"An  Act  amending  the  Legislative Ethics  Act  to  modify  the                                                               
limitation  on   political  fund   raising  by   legislators  and                                                               
legislative  employees  during  legislative  sessions,  to  allow                                                               
legislators  and legislative  employees to  accept certain  gifts                                                               
from  lobbyists, to  clarify  the Legislative  Ethics  Act as  it                                                               
relates to  legislative volunteers  and educational  trainees, to                                                               
reduce the  frequency of publication  of summaries by  the Select                                                               
Committee  on Legislative  Ethics, and  to revise  procedures and                                                               
fines related to  the late filing of disclosures  required by the                                                               
Legislative Ethics Act."                                                                                                        
     HEARD AND HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 305                                                                                                                  
SHORT TITLE: CAMPAIGN FUND RAISING DURING SESSIONS                                                                              
SPONSOR(S): REPRESENTATIVE(S) MEYER                                                                                             
                                                                                                                                
01/11/08       (H)       PREFILE RELEASED 1/11/08                                                                               
01/15/08       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/15/08       (H)       STA                                                                                                    
01/22/08       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
01/22/08       (H)       Moved CSHB 305(STA) Out of Committee                                                                   
01/22/08       (H)       MINUTE(STA)                                                                                            
01/23/08       (H)       STA RPT CS(STA) NT 4DP 2NR                                                                             
01/23/08       (H)       DP: JOHNSON, JOHANSEN, ROSES, LYNN                                                                     
01/23/08       (H)       NR: COGHILL, DOLL                                                                                      
02/04/08       (H)       RLS AT 4:30 PM CAPITOL 106                                                                             
02/04/08       (H)       Moved CSHB 305(RLS) Out of Committee                                                                   
02/04/08       (H)       MINUTE(RLS)                                                                                            
02/06/08       (H)       RLS RPT CS(RLS) NT 5DP 2AM                                                                             
02/06/08       (H)       DP:   FAIRCLOUGH,    HARRIS,   KERTTULA,                                                               
                        SAMUELS, COGHILL                                                                                        
02/06/08       (H)       AM: GUTTENBERG, JOHNSON                                                                                
02/06/08       (H)       RETURNED TO RLS COMMITTEE                                                                              
02/19/08       (H)       MOVED TO RETURN TO SECOND TO RESCIND                                                                   
                         ACTION                                                                                                 
02/19/08       (H)       LEDOUX ABSTAIN VOTING FLD Y18 N17 E5                                                                   
                         PER UR 34(B)                                                                                           
02/20/08       (H)       TRANSMITTED TO (S)                                                                                     
02/20/08       (H)       VERSION: CSHB 305(RLS) AM                                                                              
02/21/08       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/21/08       (S)       STA                                                                                                    
02/21/08       (S)       JUD REFERRAL ADDED BEFORE STA                                                                          
04/05/08       (S)       JUD AT 9:00 AM BUTROVICH 205                                                                           
04/05/08       (S)       Heard & Held                                                                                           
04/05/08       (S)       MINUTE(JUD)                                                                                            
04/07/08       (S)       JUD AT 2:15 PM BELTZ 211                                                                               
04/07/08       (S)       Moved   SCS   CSHB   305(JUD)   Out   of                                                               
                         Committee                                                                                              
04/07/08       (S)       MINUTE(JUD)                                                                                            
04/08/08       (S)       JUD RPT SCS  2DP 2NR    SAME TITLE                                                                     
04/08/08       (S)       DP: FRENCH, MCGUIRE                                                                                    
04/08/08       (S)       NR: THERRIAULT, HUGGINS                                                                                
04/08/08       (S)       STA AT 9:00 AM BELTZ 211                                                                               
04/08/08       (S)       Heard & Held                                                                                           
04/08/08       (S)       MINUTE(STA)                                                                                            
04/09/08       (S)       STA AT 9:00 AM BELTZ 211                                                                               
                                                                                                                                
BILL: HB 366                                                                                                                  
SHORT TITLE: PFD: EXECUTION  /DISCLOSURE OF APPROPS                                                                             
SPONSOR(S): REPRESENTATIVE(S) CRAWFORD                                                                                          
                                                                                                                                
02/13/08       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/13/08       (H)       STA, FIN                                                                                               
03/20/08       (H)       STA RPT 2DP 4NR                                                                                        
03/20/08       (H)       DP: DOLL, LYNN                                                                                         
03/20/08       (H)       NR: JOHNSON, JOHANSEN, ROSES, COGHILL                                                                  
03/20/08       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
03/20/08       (H)       Moved Out of Committee                                                                                 
03/20/08       (H)       MINUTE(STA)                                                                                            
03/31/08       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
03/31/08       (H)       Heard & Held                                                                                           
03/31/08       (H)       MINUTE(FIN)                                                                                            
04/03/08       (H)       FIN AT 8:30 AM HOUSE FINANCE 519                                                                       
04/03/08       (H)       Scheduled But Not Heard                                                                                
04/03/08       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/03/08       (H)       Moved Out of Committee                                                                                 
04/03/08       (H)       MINUTE(FIN)                                                                                            
04/04/08       (H)       FIN RPT 3DP 6NR                                                                                        
04/04/08       (H)       DP: NELSON, CRAWFORD, GARA                                                                             
04/04/08       (H)       NR: HAWKER, THOMAS, STOLTZE, JOULE,                                                                    
                        KELLY, CHENAULT                                                                                         
04/07/08       (H)       TRANSMITTED TO (S)                                                                                     
04/07/08       (H)       VERSION: HB 366 AM                                                                                     
04/08/08       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/08/08       (S)       STA, FIN                                                                                               
04/09/08       (S)       STA AT 9:00 AM BELTZ 211                                                                               
                                                                                                                                
BILL: HB 368                                                                                                                  
SHORT TITLE: ETHICS: LEGISLATIVE & GOV/LT GOV                                                                                   
SPONSOR(S): STATE AFFAIRS                                                                                                       
                                                                                                                                
02/19/08       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/19/08       (H)       STA, JUD, FIN                                                                                          
02/26/08       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
02/26/08       (H)       Moved CSHB 368(STA) Out of Committee                                                                   
02/26/08       (H)       MINUTE(STA)                                                                                            
02/27/08       (H)       STA RPT CS(STA) NT 3DP 4NR                                                                             
02/27/08       (H)       DP: ROSES, GRUENBERG, LYNN                                                                             
02/27/08       (H)       NR: JOHNSON, JOHANSEN, COGHILL, DOLL                                                                   
03/19/08       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
03/19/08       (H)       Heard & Held                                                                                           
03/19/08       (H)       MINUTE(JUD)                                                                                            
03/26/08       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
03/26/08       (H)       Moved CSHB 368(JUD) Out of Committee                                                                   
03/26/08       (H)       MINUTE(JUD)                                                                                            
03/27/08       (H)       JUD RPT CS(JUD) NT 4DP 3NR                                                                             
03/27/08       (H)       DP: GRUENBERG, LYNN, HOLMES, RAMRAS                                                                    
03/27/08       (H)       NR: COGHILL, DAHLSTROM, SAMUELS                                                                        
03/31/08       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
03/31/08       (H)       Heard & Held                                                                                           
03/31/08       (H)       MINUTE(FIN)                                                                                            
04/02/08       (H)       FIN AT 8:30 AM HOUSE FINANCE 519                                                                       
04/02/08       (H)       Moved CSHB 368(FIN) Out of Committee                                                                   
04/02/08       (H)       MINUTE(FIN)                                                                                            
04/03/08       (H)       FIN RPT CS(FIN) NT 7DP 2NR 1AM                                                                         
04/03/08       (H)       DP: HAWKER, CRAWFORD, JOULE, KELLY,                                                                    
                         NELSON, GARA, MEYER                                                                                    
04/03/08       (H)       NR: STOLTZE, CHENAULT                                                                                  
04/03/08       (H)       AM: THOMAS                                                                                             
04/05/08       (H)       TRANSMITTED TO (S)                                                                                     
04/05/08       (H)       VERSION: CSHB 368(FIN) AM                                                                              
04/06/08       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/06/08       (S)       STA                                                                                                    
04/08/08       (S)       STA AT 9:00 AM BELTZ 211                                                                               
04/08/08       (S)       Scheduled But Not Heard                                                                                
04/09/08       (S)       STA AT 9:00 AM BELTZ 211                                                                               
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
MIKE PAWLOWSKI, Staff                                                                                                           
to Representative Kevin Meyer                                                                                                   
Alaska State Legislature                                                                                                        
POSITION STATEMENT: Presented HB 305.                                                                                         
                                                                                                                                
JOYCE ANDERSON, Administrator                                                                                                   
Select Committee on Legislative Ethics                                                                                          
Anchorage AK                                                                                                                    
POSITION STATEMENT: Answered questions on HB 305 and HB 368.                                                                  
                                                                                                                                
CHRIS ELLINGSON, Acting Executive Director                                                                                      
Alaska Public Offices Commission (APOC)                                                                                         
Anchorage AK                                                                                                                    
POSITION STATEMENT: Answered questions on HB 305.                                                                             
                                                                                                                                
REPRESENTATIVE HARRY CRAWFORD                                                                                                   
Alaska State Legislature                                                                                                        
Juneau AK                                                                                                                       
POSITION STATEMENT: Presented HB 366.                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR LESIL MCGUIRE called the Senate State Affairs Standing                                                                  
Committee meeting to order at 9:15:55 AM. Senators French,                                                                    
Bunde, Stevens,  and McGuire were  present at the call  to order.                                                               
Senator Green arrived later.                                                                                                    
                                                                                                                                
          HB 305-CAMPAIGN FUND RAISING DURING SESSIONS                                                                      
                                                                                                                                
9:16:18 AM                                                                                                                    
CHAIR MCGUIRE announced the consideration  of HB 305. [Before the                                                               
committee was CSHB 305(RLS) AM.]                                                                                                
                                                                                                                                
SENATOR BUNDE  moved Version \O,  Senate CS  for CSHB 305  as the                                                               
working document. There being no objection, it was so ordered.                                                                  
                                                                                                                                
9:17:17 AM                                                                                                                    
MIKE  PAWLOWSKI,  Staff  to Representative  Kevin  Meyer,  Alaska                                                               
State Legislature,  said Section 3  is the  meat of the  bill. It                                                               
applies a  prohibition to  legislators and  extends the  logic in                                                               
current statute to say that  during a regular or special session,                                                               
legislators  may not  solicit or  accept a  campaign contribution                                                               
for their own campaign.                                                                                                         
                                                                                                                                
9:18:02 AM                                                                                                                    
MR. PAWLOWSKI  said he is speaking  about Page 3, Line  3, and it                                                               
applies to  a legislator's  own campaign  for state  or municipal                                                               
office.  "They may  not solicit  during  a session  unless it  is                                                               
within  90  days of  that  election  for that  office."  However,                                                               
during regular session or a  special session a legislator may not                                                               
solicit  for another  candidate,  for a  political  party, or  to                                                               
influence  a state  ballot proposition.  The 90-day  exception is                                                               
important for  a member's  own campaign  "to strike  that balance                                                               
between  the governor's  ability to  call a  special session  and                                                               
perhaps meddle in politics." That  is why the 90-day exception is                                                               
maintained in (A). "But really to try  and to get to the point of                                                               
eliminating  all fundraising  for political  activities during  a                                                               
session,  be it  regular or  special. So  … the  90-day exception                                                               
does  not apply  to (B),  (C),  or (D)  within this  subsection."                                                               
Section  2  only applies  to  legislative  employees and  doesn't                                                               
contain  the same  provisions in  Section 3,  because legislators                                                               
are  the  decision  makers,  and  there  is  a  compelling  state                                                               
interest to regulate a legislator's  behavior but not to get into                                                               
the  constitutional  concerns  over  free speech.  Section  1  is                                                               
conforming language with  the APOC statutes to try  to bring them                                                               
in line  with the prohibitions  in Sections  2 and 3.  The Senate                                                               
Judiciary Committee  removed application of this  bill to federal                                                               
office, which was  of great concern to many because  the bill was                                                               
preempted by federal law. The CS is better, he opined.                                                                          
                                                                                                                                
9:20:58 AM                                                                                                                    
SENATOR BUNDE  said there have  been some very  influential staff                                                               
who  have  been very  effective  gatekeepers  for access  to  the                                                               
legislature. They  basically run  some offices,  so he  asked why                                                               
the 90-day provision didn't apply to them.                                                                                      
                                                                                                                                
MR. PAWLOWSKI said it  is a good point. Section 2  is the way the                                                               
current law  is and the  bill extended  it to municipal  or state                                                               
office.  "We felt  that  the  move from  the  current statute  to                                                               
municipal or  state office  was a good  one." Getting  into staff                                                               
participation in  a ballot measure  or a political  party touches                                                               
free speech.  He noted case  law that requires  the law to  go by                                                               
the least  intrusive means. Some legislators  have concerns about                                                               
the free  speech issues  in Section  3, "and  we are  pushing the                                                               
envelope."  But Legislative  Legal Services  said the  bill isn't                                                               
crossing the  line, "but if you  did it to employees  I think you                                                               
would run into that problem."                                                                                                   
                                                                                                                                
9:23:13 AM                                                                                                                    
SENATOR FRENCH referred  to Section 1, and he  said a legislative                                                               
employee can't be a candidate for state office.                                                                                 
                                                                                                                                
MR. PAWLOWSKI  said he believes that  is correct. He or  she must                                                               
resign once  filing a letter  of intent. He believes  a municipal                                                               
office also requires a letter of intent.                                                                                        
                                                                                                                                
SENATOR FRENCH  asked if the  bill is prohibiting  something that                                                               
is already  prohibited, or  if it is  allowing something  that is                                                               
prohibited. "We  are saying  they can raise  money for  their own                                                               
election, but  there's another  provision in  law that  says they                                                               
can't be legislative employees and raise money for an election."                                                                
                                                                                                                                
MR. PAWLOWSKI said yes, that is a good point.                                                                                   
                                                                                                                                
SENATOR  FRENCH said  there are  two statutes  on the  same track                                                               
that  are  about to  collide.  He  suggested taking  "legislative                                                               
employee" out of the provision.                                                                                                 
                                                                                                                                
9:25:03 AM                                                                                                                    
JOYCE  ANDERSON, Administrator,  Select Committee  on Legislative                                                               
Ethics, said that  once a legislative employee files  a letter of                                                               
intent, they must resign.                                                                                                       
                                                                                                                                
SENATOR FRENCH asked if it is for any municipal or state office.                                                                
                                                                                                                                
SENATOR GREEN  asked if it is  just on behalf of  their employer.                                                               
Staff can't do work that the legislator is not allowed to do.                                                                   
                                                                                                                                
SENATOR FRENCH said that is right,  but Line 8, Page 1, speaks to                                                               
an election in which the employee  is a candidate. "That to me is                                                               
a legal impossibility."                                                                                                         
                                                                                                                                
MS.  ANDERSON  said  a  legislative   employee  may  not  seek  a                                                               
nomination  or become  a  candidate for  the  legislature or  any                                                               
state or national political office.                                                                                             
                                                                                                                                
SENATOR BUNDE asked about a municipal office.                                                                                   
                                                                                                                                
MS. ANDERSON  said the administrative  code states that  a letter                                                               
of  intent need  not  include  the specific  seat  for which  the                                                               
individual may file,  but must state whether  the individual will                                                               
seek state or municipal office. It  is not in the ethics code but                                                               
it is in the Administrative Code: 2AAC50.724.                                                                                   
                                                                                                                                
9:27:51 AM                                                                                                                    
MR.  PAWLOWSKI  said  AS  24.60.033   specifically  says  that  a                                                               
legislative employee  may not file a  letter of intent. So  he or                                                               
she would have to resign.                                                                                                       
                                                                                                                                
MS. ANDERSON  said an  individual is not  allowed to  raise funds                                                               
unless they have filed a letter of intent.                                                                                      
                                                                                                                                
SENATOR FRENCH suggested taking out "legislative employee".                                                                     
                                                                                                                                
The committee took a brief at-ease at 9:29:12 AM.                                                                             
                                                                                                                                
9:30:43 AM                                                                                                                    
MR. PAWLOWSKI said  he believes that this is  an important error.                                                               
The language  was written to  make it consistent with  Section 2,                                                               
which is the ethics code. Section  1 of the APOC statute probably                                                               
should not extend to an employee  since they could not be legally                                                               
raising funds for an election.                                                                                                  
                                                                                                                                
CHRIS  ELLINGSON,   Acting  Executive  Director,   Alaska  Public                                                               
Offices  Commission  (APOC),  said,  with the  exception  of  the                                                               
legislative employee,  Section 1 is  a really good fix.  It fixes                                                               
something that  has been broken  for quite a  few years. It  is a                                                               
misstatement to say that they have  to file a letter of intent to                                                               
run for municipal office because  they don't. They can wait until                                                               
the filing period opens and declare just like anyone else.                                                                      
                                                                                                                                
9:32:29 AM                                                                                                                    
SENATOR BUNDE said,  "But to raise funds they must  file a letter                                                               
of intent."                                                                                                                     
                                                                                                                                
MS. ELLINGSON  said yes, if  they are going to  start fundraising                                                               
prior  to the  filing  period.  But there  have  been cases  when                                                               
someone has waited  until the filing period opens and  just go in                                                               
and declare.                                                                                                                    
                                                                                                                                
MS. ANDERSON  said the language  needs to remain in  (d), because                                                               
an  employee  should   not  be  able  to  solicit   or  accept  a                                                               
contribution  to  be  used  for the  purpose  of  influencing  an                                                               
election. On both lines 8  and 9, "or legislative employee" needs                                                               
to be removed.                                                                                                                  
                                                                                                                                
SENATOR FRENCH  said, "The  only circumstance  under which  I can                                                               
raise money  during a regular  or special legislative  session is                                                               
if I've  somehow come  up against an  impending election  that is                                                               
about to happen. So you're going  to grant me an exception as the                                                               
most affected person  - the legislator … defending your  seat - I                                                               
can raise money if it is for  my own campaign, it's during the 90                                                               
days before  the election,  and it's away  from the  capital. But                                                               
we're going to  also let legislative employees do  that while the                                                               
session is sitting?  The finance aides, the  judiciary aides, all                                                               
the people that  run around this building … they  can raise money                                                               
as well?"                                                                                                                       
                                                                                                                                
9:34:19 AM                                                                                                                    
SENATOR  GREEN  asked  if  Senator French  is  talking  about  an                                                               
employee who has filed as a candidate.                                                                                          
                                                                                                                                
SENATOR  FRENCH said  it  has already  been  concluded that  they                                                               
can't be a candidate. But  while the legislature has bills flying                                                               
through it, should its employees  be raising money for campaigns?                                                               
He said  he could  be persuaded  either way, but  it needs  to be                                                               
discussed.                                                                                                                      
                                                                                                                                
MR. PAWLOWSKI said  Section 2 is important because  of the ethics                                                               
code that  governs the conduct  of an  employee. It says  you may                                                               
not solicit  or accept a contribution  or a promise to  pledge to                                                               
make a  contribution. So  under the  ethics code  the legislative                                                               
employee is prohibited from doing that during session.                                                                          
                                                                                                                                
9:35:27 AM                                                                                                                    
CHAIR MCGUIRE  said it should be  clear it is not  in the capital                                                               
city. "We  don't want to  muddy the water  about the fact  that a                                                               
legislative employee  cannot be  a legislative  candidate. That's                                                               
clear, so we need to remove  that reference." But Section 1 is an                                                               
attempt to reconcile through APOC  laws what is already in ethics                                                               
law, which  says that you  can't accept these contributions  in a                                                               
way that's  intended to influence.  An exception has  been carved                                                               
out for  special session. So  outside the capital city  "and it's                                                               
90 days before  - you can do  it." A similar thing  is being done                                                               
for the employee, "and I think that makes sense."                                                                               
                                                                                                                                
SENATOR FRENCH moved conceptual Amendment 1 as follows:                                                                         
                                                                                                                                
Page 1, lines 8 and 9:                                                                                                          
     Delete   "or   legislative    employee"   and   "legislative                                                               
     employees"                                                                                                                 
                                                                                                                                
Hearing no objection, conceptual Amendment 1 carried.                                                                           
                                                                                                                                
SENATOR FRENCH asked the current  rule for a legislative employee                                                               
raising money for a campaign during session.                                                                                    
                                                                                                                                
9:37:10 AM                                                                                                                    
MS. ANDERSON  said current  statute puts  the legislator  and the                                                               
employee under the same restrictions.                                                                                           
                                                                                                                                
SENATOR FRENCH said there is  an exception for a legislator's own                                                               
campaign in the  90 days before an election, and  that applies to                                                               
the employee.                                                                                                                   
                                                                                                                                
MS. ANDERSON said that is correct.                                                                                              
                                                                                                                                
SENATOR  FRENCH said  if  the  session is  pushed  up against  an                                                               
election, their  free speech rights  to participate  in elections                                                               
trumps their role as an assistant law maker.                                                                                    
                                                                                                                                
CHAIR MCGUIRE  said that is  true, but outside the  capital city.                                                               
The further you  get away from the policy making,  the better off                                                               
you are.                                                                                                                        
                                                                                                                                
SENATOR FRENCH said he has qualms, but he will let it go.                                                                       
                                                                                                                                
9:38:17 AM                                                                                                                    
SENATOR BUNDE said  he doesn't have time to fundraise,  so he can                                                               
send someone back to his district to raise money?                                                                               
                                                                                                                                
CHAIR MCGUIRE said the fix is clean elections.                                                                                  
                                                                                                                                
SENATOR FRENCH said he shares Senator Bunde's qualms.                                                                           
                                                                                                                                
CHAIR  MCGUIRE  said  this  issue  keeps  coming  back:  campaign                                                               
donations and  their influence.  It is such  a thorny  issue. The                                                               
ethics  of a  lawmaker  have  to be  relied  on.  "You put  these                                                               
structures in place and then you hope people will be honorable."                                                                
                                                                                                                                
SENATOR  FRENCH said  the prohibition  on  Page 3  says a  member                                                               
can't expend  money that was  raised on  a day where  the session                                                               
bumps   up  against   an  election.   He  asked   about  creating                                                               
subaccounts and how it will work in real life.                                                                                  
                                                                                                                                
CHAIR MCGUIRE said  it does say it doesn't apply  to money raised                                                               
in another place. So it is reconciling that principle.                                                                          
                                                                                                                                
9:40:29 AM                                                                                                                    
MR.  PAWLOWSKI  said the  prohibition  on  spending money  is  in                                                               
current  statute. In  repealing and  reenacting this  section, it                                                               
applies it to  any municipality versus the capital  city, but the                                                               
language is the same as in current statute.                                                                                     
                                                                                                                                
SENATOR FRENCH asked what money can be raised while in session.                                                                 
                                                                                                                                
MS. ANDERSON said  that is referring to Section 2,  an event held                                                               
on a  day when  the legislature  is in  session. The  Lincoln Day                                                               
dinner is a  fundraiser for the Republican Party,  and that money                                                               
goes into  their coffers. It  is later designated for  a specific                                                               
candidate. It was  raised during the session,  but not designated                                                               
for a  specific candidate, "so  you could receive that  money and                                                               
you could  expend that money …  but you cannot hold  a fundraiser                                                               
for yourself."                                                                                                                  
                                                                                                                                
9:42:15 AM                                                                                                                    
SENATOR FRENCH noted  that it is money raised by  or on behalf of                                                               
a legislator under  a declaration of candidacy, so it  is not the                                                               
Lincoln Day dinner.                                                                                                             
                                                                                                                                
MR. PAWLOWSKI  said that  is correct. The  Lincoln day  dinner is                                                               
okay,  as well  as some  other events,  because it  is not  for a                                                               
specific  candidate;  however,  if  a   party  were  to  throw  a                                                               
fundraiser  during a  session  with  specific candidates  listed,                                                               
that might run afoul of the law. That is existing language.                                                                     
                                                                                                                                
SENATOR FRENCH asked if they  would be prohibited from soliciting                                                               
or accepting that contribution.                                                                                                 
                                                                                                                                
MR. PAWLOWSKI  said there are  members of both parties  active in                                                               
fundraising  outside  of  the legislative  body.  The  Democratic                                                               
Party of  Bethel could hold  a fundraiser  as long as  it doesn't                                                               
designate it  for a specific  candidate, and that money  could go                                                               
to candidates that are running in races.                                                                                        
                                                                                                                                
9:44:00 AM                                                                                                                    
SENATOR  FRENCH said,  "So  it could  be raised  on  behalf of  a                                                               
legislator without  naming that  legislator, and  I don't  how in                                                               
the world you'd ever prove that that happened."                                                                                 
                                                                                                                                
CHAIR MCGUIRE said,  "We can't get to people who  are not already                                                               
public  servants  who are  running  for  office." It  has  really                                                               
bothered her that people who  are running against incumbents come                                                               
to Juneau  during session  and hold  fundraisers. "It  goes right                                                               
against  everything …  if you  want  to think  about intended  to                                                               
influence or  intended to intimidate  or how it makes  you feel."                                                               
She supposed  that, constitutionally,  there is nothing  that can                                                               
be done.  She suggested that APOC  filers take some sort  of oath                                                               
to incorporate  ethical principles regarding fundraising.  It may                                                               
or may not be constitutional,  but it could become something that                                                               
the public could use to judge them.                                                                                             
                                                                                                                                
9:45:40 AM                                                                                                                    
MR. PAWLOWSKI noted  the case of State v.  Alaska Civil Liberties                                                             
Union. "The problem  with candidates for office is  that that has                                                             
been ruled  unconstitutional in  the State of  Alaska -  that you                                                               
can't apply these  provisions to a candidate. You  can apply them                                                               
to incumbents."                                                                                                                 
                                                                                                                                
CHAIR MCGUIRE asked  if the legislature could ask,  as an option,                                                               
that  a person  signing  up  for office  can  make an  additional                                                               
pledge that would be in  keeping with what incumbents are already                                                               
asked to do in the compelling state interest.                                                                                   
                                                                                                                                
MR.  PAWLOWSKI said,  "I'm sure  you could."  It might  be better                                                               
done in regulation.  Perhaps APOC could draw up a  list of all of                                                               
the  prohibitions for  an incumbent.  A candidate  might want  to                                                               
know what type of ethical guidelines he or she is walking into.                                                                 
                                                                                                                                
9:47:21 AM                                                                                                                    
CHAIR MCGUIRE asked Ms. Ellingson if APOC would consider that.                                                                  
                                                                                                                                
MS. ELLINGSON said that has never been discussed.                                                                               
                                                                                                                                
CHAIR MCGUIRE  asked if APOC  would need a  legislative directive                                                               
asking  for a  document for  those filing  for office  that would                                                               
inform candidates of the ethical  guidelines of sitting lawmakers                                                               
and ask if they would like to sign to agree with that.                                                                          
                                                                                                                                
MS.  ELLINGSON  said  it  could be  done  without  a  legislative                                                               
directive. But what would the enforcement mechanism be?                                                                         
                                                                                                                                
CHAIR  MCGUIRE said  the  public would  be  the enforcement.  The                                                               
candidate can decide to follow the ethical guidelines or not.                                                                   
                                                                                                                                
MS.  ELLINGSON said  it would  probably be  better if  there were                                                               
some intent language to fall back on.                                                                                           
                                                                                                                                
9:49:12 AM                                                                                                                    
CHAIR MCGUIRE  said she  feels uncomfortable  removing candidates                                                               
from  the  bill.  We  are  starting  to  go  down  a  path  where                                                               
incumbents  are treated  disparately. She  says she  gets it  but                                                               
feels uncomfortable taking out any reference to that.                                                                           
                                                                                                                                
SENATOR  BUNDE said  they are  still  the public  until they  are                                                               
elected.  "We are  held to  a  different standard."  He once  ran                                                               
against  an incumbent.  Often people  running  for office  stress                                                               
that incumbents  have an incredible  advantage with  their access                                                               
to the press and the trappings  of office. People who are running                                                               
should have  something to balance  that perceived or  real access                                                               
to the public.                                                                                                                  
                                                                                                                                
CHAIR MCGUIRE  said a  person can  envision a  circumstance where                                                               
the reverse  occurs. If  an incumbent were  in a  hotly contested                                                               
special session  on a subject, like  a head tax on  cruise ships,                                                               
that the incumbent  supported, "you can see  a circumstance where                                                               
a candidate that was running  against you could actually leverage                                                               
that position that you were  taking and raise money in opposition                                                               
to you."                                                                                                                        
                                                                                                                                
SENATOR BUNDE  said they  already do that.  The line  is somewhat                                                               
artificial: whether  they do  it in Anchorage  or Juneau.  A non-                                                               
incumbent can  raise money during session  and legislators cannot                                                               
- and that is the balance. The public accepts that.                                                                             
                                                                                                                                
9:52:05 AM                                                                                                                    
SENATOR FRENCH said it goes  to the appearance of impropriety and                                                               
corruption. "No candidate has a vote and we do."                                                                                
                                                                                                                                
SENATOR  BUNDE  moved  to  report  Senate CS  for  CSHB  305,  as                                                               
amended,  from  committee  with  individual  recommendations  and                                                               
attached  fiscal  note(s). There  being  no  objection, SCS  CSHB
305(STA) passed out of committee.                                                                                               
                                                                                                                                
         HB 366-PFD: EXECUTION  /DISCLOSURE OF APPROPS                                                                      
                                                                                                                              
9:52:44 AM                                                                                                                    
CHAIR MCGUIRE announced the consideration  of HB 366. [Before the                                                               
committee was HB 366 AM.]                                                                                                       
                                                                                                                                
9:53:03 AM                                                                                                                    
REPRESENTATIVE HARRY CRAWFORD, Alaska  State Legislature, said HB
366 is important to the people  it affects. The law was changed a                                                               
while ago so that some  people who were incarcerated couldn't get                                                               
their permanent  fund dividend (PFD),  and it was given  to about                                                               
five  different causes,  like the  Council on  Domestic Violence.                                                               
But lawmakers  didn't realize  that the law  took the  money away                                                               
from  the children  of the  offenders. He  doesn't know  how many                                                               
kids this will  affect, but it may be up  to 5,000 children. Some                                                               
of the  children have already  been taken into the  child welfare                                                               
system or have  been adopted. There are a number  of kids who are                                                               
not getting their  incarcerated parents' PFD. This  "puts it back                                                               
on  the list."  There  is  a zero  fiscal  note  because it  just                                                               
changes the  notice requirement.  But in  the future,  money will                                                               
need to  be appropriated  to these  children. The  permanent fund                                                               
division gets 35,000 garnishments a  year, and it would like them                                                               
in  electronic form.  It  is  now not  allowed,  so the  division                                                               
handles  about 70,000  pieces  of paper  each  year, which  won't                                                               
occur if HB 366 passes.                                                                                                         
                                                                                                                                
CHAIR  MCGUIRE  said   she  appreciates  Representative  Crawford                                                               
accommodating  that in  HB  366  from another  bill  of hers.  It                                                               
didn't fit into  the new omnibus crime package.  She said Section                                                               
3 was taken out of another  bill because it made a single subject                                                               
violation.  It is  a civil  provision  that allows  the writs  of                                                               
execution  from  a   court  order  to  go   to  the  commissioner                                                               
electronically and the permanent fund to pay that out.                                                                          
                                                                                                                                
9:57:29 AM                                                                                                                    
SENATOR  BUNDE  said  the bill  could  include  game  violations,                                                               
arson, and bootlegging, but couldn't include this?                                                                              
                                                                                                                                
CHAIR MCGUIRE  said it  has to include  underlying crimes,  so if                                                               
all the writs  were criminal, then it would work.  But since some                                                               
were civil in nature, it didn't work.                                                                                           
                                                                                                                                
SENATOR  STEVENS  asked  if  there  is  any  way  that  a  repeat                                                               
miscreant would receive any portion of a PFD from this bill.                                                                    
                                                                                                                                
REPRESENTATIVE CRAWFORD said no, they  will still owe their child                                                               
support. The bill will not pay their debt in any way.                                                                           
                                                                                                                                
9:58:58 AM                                                                                                                    
SENATOR  BUNDE asked  if the  offenders  have any  access to  the                                                               
children's money.                                                                                                               
                                                                                                                                
REPRESENTATIVE CRAWFORD  said it will go  to the child or  to the                                                               
guardian.                                                                                                                       
                                                                                                                                
SENATOR BUNDE asked if the PFD division is supportive.                                                                          
                                                                                                                                
REPRESENTATIVE CRAWFORD  said they  would very  much like  to see                                                               
this pass.                                                                                                                      
                                                                                                                                
SENATOR  BUNDE  moved  to  report  HB  366  from  committee  with                                                               
individual  recommendations and  attached  fiscal note(s).  There                                                               
being no objection, the HB 366 AM passed out of committee.                                                                      
                                                                                                                                
                                                                                                                                
The committee took an at-ease from 10:00 AM until 10:37 AM.                                                                     
                                                                                                                                
                                                                                                                                
            HB 368-ETHICS: LEGISLATIVE & GOV/LT GOV                                                                         
                                                                                                                                
10:37:32 AM                                                                                                                   
CHAIR MCGUIRE announced the consideration  of HB 368. [Before the                                                               
committee was CSHB 368(FIN)am.]                                                                                                 
                                                                                                                                
She  moved  to  adopt  Amendment  1,  labeled  25-LS1326\N.A,  as                                                               
follows:                                                                                                                        
                                                                                                                                
          Page 1-2:                                                                                                             
               Delete: Section 1 and Section 2                                                                                  
                                                                                                                                
CHAIR MCGUIRE explained that Amendment  1 simply deletes the same                                                               
language that  is in HB  305 that  just passed out  of committee.                                                               
There being no objection, Amendment 1 carried.                                                                                  
                                                                                                                                
CHAIR   MCGUIRE  moved   to  adopt   Amendment  2,   labeled  25-                                                               
LS1326\NA.1, Wayne, as follows:                                                                                                 
                                                                                                                                
Page 1, line 7, following "Act":                                                                                              
     Insert "; amending prohibitions in the Regulation of                                                                     
Lobbying  Act and  the Legislative  Ethics  Act on  gifts to,  or                                                             
receipt of gifts  by, a person who is subject  to the Legislative                                                             
Ethics Act"                                                                                                                   
                                                                                                                                
Page 1, following line 8:                                                                                                       
     Insert a new bill section to read:                                                                                         
   "* Section 1. AS 24.45.121(a) is amended to read:                                                                        
          (a)  A lobbyist may not                                                                                               
               (1)  engage  in any activity as  a lobbyist before                                                               
     registering under AS 24.45.041;                                                                                            
               (2)   do  anything with  the intent  of placing  a                                                               
     public official  under personal  obligation to  the lobbyist                                                               
     or to the lobbyist's employer;                                                                                             
               (3)   intentionally deceive or attempt  to deceive                                                               
     any  public  official  with  regard  to  any  material  fact                                                               
     pertinent   to   pending    or   proposed   legislative   or                                                               
     administrative action;                                                                                                     
               (4)   cause  or  influence the  introduction of  a                                                               
     legislative  measure solely  for the  purpose of  thereafter                                                               
     being employed to secure its passage or its defeat;                                                                        
               (5)  cause a communication  to be sent to a public                                                               
     official  in the  name of  any fictitious  person or  in the                                                               
     name of  any real  person, except with  the consent  of that                                                               
     person;                                                                                                                    
               (6)  accept or agree  to accept any payment in any                                                               
     way  contingent upon  the defeat,  enactment, or  outcome of                                                               
     any proposed legislative or administrative action;                                                                         
               (7)    serve as  a  member  of  a state  board  or                                                               
     commission, if  the lobbyist's  employer may  receive direct                                                               
     economic  benefit   from  a  decision   of  that   board  or                                                               
     commission;                                                                                                                
               (8)   serve  as  a campaign  manager or  director,                                                               
     serve as  a campaign treasurer or  deputy campaign treasurer                                                               
     on a finance or  fund-raising committee, host a fund-raising                                                               
     event, directly or indirectly  collect contributions for, or                                                               
     deliver contributions  to, a candidate, or  otherwise engage                                                               
     in the  fund-raising activity of  a legislative  campaign or                                                               
     campaign  for   governor  or  lieutenant  governor   if  the                                                               
     lobbyist has  registered, or is  required to register,  as a                                                               
     lobbyist under this chapter, during  the calendar year; this                                                               
     paragraph does  not apply to a  representational lobbyist as                                                               
     defined  in the  regulations  of the  Alaska Public  Offices                                                               
     Commission,  and does  not prohibit  a lobbyist  from making                                                               
     personal  contributions  to  a candidate  as  authorized  by                                                               
     AS 15.13 or personally advocating on behalf of a candidate;                                                                
               (9)    offer,  solicit, initiate,  facilitate,  or                                                               
     provide to  or on behalf of  a person covered by  AS 24.60 a                                                               
     gift connected  with the person's legislative  status, other                                                           
     than  food  or  beverage  for  immediate  consumption  or  a                                                           
     compassionate   gift  under   AS 24.60.075;  however,   this                                                           
     paragraph  does  not  prohibit  a  lobbyist  from  providing                                                               
     tickets     to    a     charity    event     described    in                                                               
     AS 24.60.080(a)(2)(B), or a contribution  to a charity event                                                               
     under AS 24.60.080(c)(10);                                                                                                 
               (10)  make or offer a gift or a campaign                                                                         
     contribution whose  acceptance by the  person to whom  it is                                                               
     offered would violate AS 24.60 or AS 39.52."                                                                               
                                                                                                                                
Page 1, line 9:                                                                                                                 
     Delete "Section 1"                                                                                                       
     Insert "Sec. 2"                                                                                                          
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 3, lines 16 - 17:                                                                                                          
     Delete  "and  is  from  a  member  of  the  legislator's  or                                                           
legislative employee's immediate family"                                                                                    
                                                                                                                                
Page 3, following line 20:                                                                                                      
     Insert a new bill section to read:                                                                                         
   "* Sec. 5. AS 24.60.080(d) is amended to read:                                                                           
          (d) A legislator or legislative employee who accepts a                                                            
     gift from a  lobbyist under (a)(2)(C) of  this section shall                                                           
     disclose to the committee, within  30 days after the receipt                                                           
     of the gift, the name of  the donor, the name of each person                                                           
     who employs  the donor,  a description of  the gift  and the                                                           
     gift's  purpose,   and  a   statement  from   the  recipient                                                           
     affirming that the gift is  unconnected with the recipient's                                                           
     legislative  status. A  legislator  or legislative  employee                                                           
     who accepts a  gift under (c)(4) of this section  that has a                                                               
     value  of $250  or  more shall  disclose  to the  committee,                                                               
     within  30 days  after receipt  of  the gift,  the name  and                                                               
     occupation of  the donor  and the  approximate value  of the                                                               
     gift.  A legislator  or legislative  employee who  accepts a                                                               
     gift  under  (c)(8)  of  this  section  that  the  recipient                                                               
     expects will  have a value of  $250 or more in  the calendar                                                               
     year shall disclose  to the committee, within  30 days after                                                               
     receipt of the  gift, the name and occupation  of the donor,                                                               
     a general  description of the matter  of legislative concern                                                               
     with respect to which the  gift is made, and the approximate                                                               
     value of  the gift.  The committee  shall maintain  a public                                                               
     record  of the  disclosures  it receives  relating to  gifts                                                               
     under  (a)(2)(C), (c)(4),  (c)(8), and  (i) of  this section                                                           
     and shall  forward the disclosures to  the appropriate house                                                               
     for inclusion  in the journal.  The committee  shall forward                                                               
     to  the  Alaska  Public  Offices Commission  copies  of  the                                                               
     disclosures  concerning   gifts  under   (a)(2)(C),  (c)(4),                                                           
     (c)(8),  and  (i) of  this  section  that it  receives  from                                                               
     legislators  and  legislative  directors.  A  legislator  or                                                               
     legislative  employee who  accepts  a gift  under (c)(6)  of                                                               
     this section that has a value  of $250 or more shall, within                                                               
     30 days after receiving the  gift, disclose to the committee                                                               
     the name  and occupation of  the donor and a  description of                                                               
     the gift. The committee  shall maintain disclosures relating                                                               
     to  gifts  under  (c)(6) of  this  section  as  confidential                                                               
     records and may only use,  or permit a committee employee or                                                               
     contractor  to  use,  a  disclosure  under  (c)(6)  of  this                                                               
     section  in the  investigation  of a  possible violation  of                                                               
     this section or  in a proceeding under  AS 24.60.170. If the                                                               
     disclosure under (c)(6) of this  section becomes part of the                                                               
     record   of    a   proceeding   under    AS 24.60.170,   the                                                               
     confidentiality  provisions of  that  section  apply to  the                                                               
     disclosure."                                                                                                               
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
SENATOR FRENCH objected.                                                                                                        
                                                                                                                                
JOYCE  ANDERSON, Administrator,  Select Committee  on Legislative                                                               
Ethics,  said she  helped put  this amendment  together to  allow                                                               
gifts from  lobbyists for personal reasons  and for relationships                                                               
outside of the legislative arena. She  gave an example of a long-                                                               
time friend  giving a  gift during  a wedding,  or a  friend that                                                               
came outside of  the legislative context. That is  when "you just                                                               
don't  see that  particular  lobbyist within  your  context as  a                                                               
legislator.   So  you're   not  dealing   with  them   either  on                                                               
legislation or whatever. You probably  have some sort of a social                                                               
…  go to  dinner or  whatever it  happens to  be." The  term "not                                                               
connected to  legislative status"  has been  in the  statute. The                                                               
bill  is  using  the  same  language.  Amendment  2  changes  the                                                               
lobbying statute, which  needs to be done, and  it corresponds to                                                               
the ethics  statute. Page 2  of the  amendment, lines 14  and 15,                                                               
talks about  what is prohibited,  "and it would be  prohibited if                                                               
it's  connected  with  a  person's  legislative  status.  So  the                                                               
lobbying statute  is going  the other way."  Legal wanted  to add                                                               
compassionate  gift language  so  that lobbyists  are allowed  to                                                               
give compassionate gifts. "So we've added that in as well."                                                                     
                                                                                                                                
10:40:42 AM                                                                                                                   
CHAIR MCGUIRE said the language  regarding being unconnected to a                                                               
person's legislative status has been around for many years.                                                                     
                                                                                                                                
MS.  ANDERSON said  yes. There  was a  strict prohibition  during                                                               
legislative session.                                                                                                            
                                                                                                                                
SENATOR BUNDE  asked about  a person that  became a  friend later                                                               
but who met in the legislative arena.                                                                                           
                                                                                                                                
10:41:25 AM                                                                                                                   
MS. ANDERSON said  that has come up in the  past. If a legislator                                                               
deals with  a lobbyist  and then becomes  friends outside  of the                                                               
legislative  arena  and  legislation   isn't  discussed  -  "have                                                               
developed a relationship with that  individual … and you're doing                                                               
that outside of the legislative arena, then that would be okay."                                                                
                                                                                                                                
SENATOR BUNDE said it will be  under the judgment of APOC and the                                                               
ethics  committee. People  here  would say  that the  legislative                                                               
arena has infused  their entire lives. One cannot have  a life or                                                               
a conversation without legislative topics coming up.                                                                            
                                                                                                                                
CHAIR MCGUIRE  said she  agrees, "But  you know  it when  you see                                                               
it." There are people in the  building that are lobbyist that she                                                               
has no relationship with. But  there are other people who started                                                               
out as  staff who were  friends, and then they  became lobbyists.                                                               
There isn't a  lot of gift giving anyway. But  this is for events                                                               
like weddings. It was a big  stress during a wedding of two staff                                                               
people  a  few months  back  of  who was  coming  and  who was  a                                                               
lobbyist  and  how  to  record  it. She  doesn't  want  to  allow                                                               
lobbyists giving legislators gifts  irrespective of the occasion,                                                               
but "we don't want an absurd result."                                                                                           
                                                                                                                                
10:44:01 AM                                                                                                                   
SENATOR GREEN said  it is the ethics committee that  will know it                                                               
when they see it,  and that bothers her. "I have  a great deal of                                                               
problem with that."  If a person gives a gift  and reports it, "I                                                               
just don't  know how much further  you can go." She  added, "If I                                                               
can take the heat or the criticism for having received it."                                                                     
                                                                                                                                
CHAIR  MCGUIRE  asked  if  Senator Green  would  just  like  full                                                               
disclosure with no limits on gifts.                                                                                             
                                                                                                                                
SENATOR GREEN  said she feels  that way about  contributions. The                                                               
standard should  be whether  a member  can take  the heat  of the                                                               
criticism that follows. "If you're going  to take it from the big                                                               
crime boss … and you want to put your report…"                                                                                  
                                                                                                                                
SENATOR FRENCH  asked if Page 3,  Line 10, of the  amendment will                                                               
apply to any gift no matter  how small. "There's no dollar limit.                                                               
If you take a gift from a lobbyist, you must report it, period."                                                                
                                                                                                                                
MS. ANDERSON said yes.                                                                                                          
                                                                                                                                
The committee took an at-ease at 10:45:48 AM. The committee did                                                               
not reconvene that day and HB 368(FIN) am was held in committee.                                                                
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