01/31/2017 03:30 PM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB5 | |
| SB1 | |
| SB2 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 1 | TELECONFERENCED | |
| += | SB 2 | TELECONFERENCED | |
| *+ | SB 5 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
January 31, 2017
3:30 p.m.
MEMBERS PRESENT
Senator Mike Dunleavy, Chair
Senator David Wilson
Senator Cathy Giessel
Senator John Coghill
Senator Dennis Egan
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 5
"An Act prohibiting groups controlled by a legislator from
soliciting and accepting contributions or from making certain
contributions and expenditures during a regular or special
legislative session; and prohibiting some lobbyists from making
campaign contributions to certain groups."
- HEARD & HELD
SENATE BILL NO. 1
"An Act making a special appropriation from the earnings reserve
account for the payment of permanent fund dividends; and
providing for an effective date."
- MOVED CSSB 1(STA) OUT OF COMMITTEE
SENATE BILL NO. 2
"An Act increasing the amount of the 2016 permanent fund
dividend and directing the Department of Revenue to pay a
supplemental dividend to eligible individuals; and providing for
an effective date."
- MOVED SB 2 OUT OF COMMITTE
PREVIOUS COMMITTEE ACTION
BILL: SB 5
SHORT TITLE: POLITICAL CONTRIBUTION LIMITS/PROHIBITION
SPONSOR(s): SENATOR(s) MEYER
01/09/17 (S) PREFILE RELEASED 1/9/17
01/18/17 (S) READ THE FIRST TIME - REFERRALS
01/18/17 (S) STA, JUD
01/31/17 (S) STA AT 3:30 PM BUTROVICH 205
BILL: SB 1
SHORT TITLE: APPROP: 2016 PFD SUPPLEMENTAL PAYMENT
SPONSOR(s): SENATOR(s) DUNLEAVY
01/09/17 (S) PREFILE RELEASED 1/9/17
01/18/17 (S) READ THE FIRST TIME - REFERRALS
01/18/17 (S) STA, FIN
01/24/17 (S) STA AT 3:30 PM BUTROVICH 205
01/24/17 (S) Heard & Held
01/24/17 (S) MINUTE(STA)
01/28/17 (S) STA AT 10:00 AM BUTROVICH 205
01/28/17 (S) Heard & Held
01/28/17 (S) MINUTE(STA)
01/31/17 (S) STA AT 3:30 PM BUTROVICH 205
BILL: SB 2
SHORT TITLE: 2016 PFD SUPPLEMENTAL PAYMENT
SPONSOR(s): SENATOR(s) DUNLEAVY
01/09/17 (S) PREFILE RELEASED 1/9/17
01/18/17 (S) READ THE FIRST TIME - REFERRALS
01/18/17 (S) STA, FIN
01/24/17 (S) STA AT 3:30 PM BUTROVICH 205
01/24/17 (S) Heard & Held
01/24/17 (S) MINUTE(STA)
01/28/17 (S) STA AT 10:00 AM BUTROVICH 205
01/28/17 (S) Heard & Held
01/28/17 (S) MINUTE(STA)
01/31/17 (S) STA AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
SENATOR KEVIN MEYER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 5, explained the bill's
intent.
EDRA MORLEDGE, Staff
Senator Meyer
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided an overview of SB 5.
JERRY BURNETT, Deputy Commissioner
Alaska Department of Revenue
Juneau, Alaska
POSITION STATEMENT: Addressed the fiscal note for SB 2.
GINA RITACCO, Staff
Senator Mike Dunleavy
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Reviewed SB 1 and SB 2.
ACTION NARRATIVE
3:30:30 PM
CHAIR MIKE DUNLEAVY called the Senate State Affairs Standing
Committee meeting to order at 3:30 p.m. Present at the call to
order were Senators Giessel, Wilson, Egan, and Chair Dunleavy.
Senator Coghill arrived shortly thereafter.
3:30:50 PM
CHAIR DUNLEAVY reviewed the committee's agenda.
SB 5-POLITICAL CONTRIBUTION LIMITS/PROHIBITION
3:31:09 PM
CHAIR DUNLEAVY announced the consideration of SB 5 and asked for
a motion to adopt the proposed committee substitute (CS).
3:31:22 PM
SENATOR GIESSEL moved to adopt the work draft CS for SB 5, 30-
LS0112\O, as the working document.
3:31:41 PM
CHAIR DUNLEAVY objected for discussion purposes.
3:31:54 PM
SENATOR KEVIN MEYER, Alaska State Legislature, sponsor of SB 5,
explained that the bill's intent is to eliminate the appearance
of corruption in the campaign-finance system in order to
maintain and keep the public's trust. In 1996 the Alaska
Legislature passed sweeping campaign finance reforms in response
to actual and apparent corruption. One purpose was to limit
soft-money contributions from lobbyists and special interest
groups. The 1996 Act included the following statement: "It is
the purpose of this Act to substantially revise Alaska's
campaign finance laws in order to restore the public's trust in
the electoral process and to foster good government."
SENATOR MEYER explained that lobbyists' contributions to
candidates were limited to only those candidates from the
district from which the lobbyist is allowed to vote; this was to
allow individuals to exercise their first amendment right to
support a political candidate within their voting district, but
not to influence other elections throughout the state. What was
not considered in 1996 were contributions by lobbyists to
political action groups (PACs) controlled by a legislator or
candidate; SB 5 aims to address that loophole.
He provided examples of how a lobbyist could potentially
influence decisions by sitting legislators on which bills will
be heard in a committee, scheduled for a floor vote, or even how
a legislator votes on a particular bill. He concluded that SB 5
will close the loophole that allows lobbyists to contribute to
PACs controlled by a legislator or candidate and places a
restriction on when these groups can engage in political
fundraising.
He summarized that the bill aims to make raising money for PACs
similar to what it is for candidates running for office.
Legislators cannot accept money during the session, nor accept
money from lobbyists that live outside the legislator's
district.
CHAIR DUNLEAVY requested that Ms. Morledge explain the changes
in the bill.
3:36:37 PM
EDRA MORLEDGE, Staff, Senator Meyer, Alaska State Legislature,
Juneau, Alaska, explained that SB 5 prohibits soliciting or
accepting contributions and prohibits making expenditures or
contributions during the legislative session by groups that are
controlled by a legislator or a candidate for the state
legislature. The bill also limits the ability of lobbyists to
contribute to those groups.
She detailed that Section 1 places a restriction on the
solicitation or acceptance of contributions. The original draft
also had the restriction on making contributions and was placed
in the wrong section of statute.
Section 2 discusses the prohibited contributions.
Section 3 adds a new section to the prohibited contributions and
places back into the statute the exceptions for lobbyists to
make contributions to candidates from their own voting district.
Section 4 places the limitation on expenditures during the
legislative session.
Section 5 is the definition section. The CS changes a sentence
to "unless the context clearly requires otherwise, these
definitions apply."
3:39:22 PM
CHAIR DUNLEAVY removed his objection.
3:39:35 PM
CHAIR DUNLEAVY found no further objection and announced that the
CS for SB 5, version O, was adopted.
CHAIR DUNLEAVY asked if the bill prohibits lobbyists from
donating to a PAC.
SENATOR MEYER answered yes.
CHAIR DUNLEAVY pointed out that lobbyists cannot donate to an
individual now.
SENATOR MEYER replied yes.
CHAIR DUNLEAVY detailed that lobbyists currently can donate to a
PAC controlled by an individual and the bill would prohibit
that. He added that the bill would also prohibit the PAC from
raising funds during the session, but a PAC controlled by a
legislator can raise funds after the session.
SENATOR MEYER answered yes, but noted that a lobbyist cannot
contribute to a PAC even after session is over.
SENATOR GIESSEL noted in Section 3 that an individual lobbyist
cannot contribution unless they live in the district in which
the individual is eligible to vote. She requested clarification.
MS. MORLEDGE answered that Section 3 in the CS is the same
language as in current law that allows a lobbyist to contribute
to a legislator. She added that Section 2 prohibits a
contribution to a group controlled by a legislator or candidate.
SENATOR WILSON asked for clarification on the registered address
of a PAC.
SENATOR MEYER deferred to Ms. Morledge to answer. He said he has
concerns about that because it would prohibit a spouse to have a
PAC and receive donations from lobbyists. He suggested that an
open-ended full disclosure might work better due to all the
possible loopholes.
3:43:11 PM
SENATOR COGHILL joined the committee meeting.
MS. MORLEDGE referred to page 5 of the CS beginning on line 24,
the definition of "group" is provided and it also states when a
group is considered controlled by a candidate.
CHAIR DUNLEAVY asked if the bill impacts the situation where a
legislator has a PAC whose purpose is informational only.
SENATOR MEYER replied that it is treated the same as any PAC;
the legislator would not be able to accept funds during the
session.
CHAIR DUNLEAVY said the purpose of the PAC has nothing to do
with whether they can raise money or not.
MS. MORLEDGE answered correct.
CHAIR DUNLEAVY asked if the prohibitions would be in place for a
legislator who is a member of a PAC.
MS. MORLEDGE referred back to the definition of the "group." She
said unless the legislator is in control of the group it would
not prohibit their activity within a PAC.
3:46:53 PM
CHAIR DUNLEAVY announced he would hold SB 5 in committee for
further consideration.
3:47:04 PM
At ease
SB 1-APPROP: 2016 PFD SUPPLEMENTAL PAYMENT
3:48:19 PM
CHAIR DUNLEAVY called the committee back to order and announced
the consideration of SB 1. He noted that the committee heard
public testimony on SB 1 at the previous meeting.
3:48:39 PM
CHAIR DUNLEAVY closed public testimony.
3:48:50 PM
SENATOR GIESSEL moved to report CSSB 1(STA), version D, from
committee with individual recommendations and attached fiscal
notes.
3:49:06 PM
CHAIR DUNLEAVY announced that without objection, CSSB 1(STA)
moved from the Senate State Affairs Standing Committee.
3:49:15 PM
At ease.
SB 2-2016 PFD SUPPLEMENTAL PAYMENT
3:51:20 PM
CHAIR DUNLEAVY called the committee back to order. He announced
the consideration of SB 2. He noted that public testimony was
still open.
3:51:50 PM
JERRY BURNETT, Deputy Commissioner, Alaska Department of Revenue
(DOR), addressed the fiscal note for SB 2 that indicates a
$279,000 operating cost primarily for mail. He added that the
amount of the dividend in the fiscal note is $1,030. He added
that the amount of the dividend would be adjusted to the total
appropriation in SB 1.
He noted that two issues were not addressed in SB 2 nor in the
DOR fiscal note. The Alaska Department of Health and Social
Services (DHSS) is not sure how beneficiaries will be effected
and has not brought forward a fiscal note.
He explained that the second issue pertained to the historical
calculation for the felon funds where the amount goes to the
Department of Corrections. He detailed that the calculation for
felon funds for the $1,022 dividend in the FY18 budget was $12.4
million. He said with the larger amount the calculation would
have been $25 million. He added that the bill, as written, does
not address the supplemental dividend.
He concluded that the next committee may want to address the two
issues that he noted.
CHAIR DUNLEAVY asked Mr. Burnett if he had additional comments.
MR. BURNETT replied that the appropriation is contrary to the
Governor's fiscal plan so everyone should think about whether
that money is needed for other purposes. The issues he mentioned
are the only administrative issues. He added that in response to
a comment from Chair Dunleavy, there is no intentional delay.
CHAIR DUNLEAVY noted that the next committee of referral is
Senate Finance.
SENATOR COGHILL asked if garnishing the PFD would be a part of
the second issuance, as well.
MR. BURNETT answered yes and noted the cost of one-time
garnishment includes 48 hours of programming time.
SENATOR COGHILL asked if it was administrative costs.
MR. BURNETT replied yes.
3:57:02 PM
CHAIR DUNLEAVY asked if SB 2 is still contrary to the governor's
fiscal plan.
MR. BURNETT answered that the budget documents before the
Legislature are consistent with not paying the second dividend.
CHAIR DUNLEAVY noted that there was a majority vote in both the
House and the Senate for the appropriation last session and the
governor vetoed it. SB 2 is an attempt to restore that
appropriation.
SENATOR COGHILL asked about contingency language and whether
there is legal precedent for passing a bill that is contingent
upon another one.
CHAIR DUNLEAVY deferred to his staff to answer.
3:59:08 PM
GINA RITACCO, Staff, Senator Dunleavy, Alaska State Legislature,
Juneau, Alaska, explained that SB 1 is the appropriation bill
for $683,234,813 for a dividend of about $1,030 for 2016. SB 2
is a directive to DOR to issue the check immediately. SB 2 has
an effective date of May 1, 2017, for both bills to pass in
order to use FY18 funds. SB 2 also has a section that provides
if SB 1 fails, SB 2 is not enacted.
SENATOR COGHILL confirmed that Ms. Ritacco's review answered his
previous question.
MS. RITACCO explained that the reason SB 2 directs DOR to pay
immediately is that if it didn't the appropriation would go in
with next year's dividend, rather than as a supplemental, and
end up adjusting 2017's dividend amount.
4:01:25 PM
SENATOR GIESSEL moved to report SB 2, version A, from committee
with individual recommendations and attached fiscal notes.
4:01:36 PM
CHAIR DUNLEAVY announced that without objection, SB 2 moved out
of Senate State Affairs Standing Committee.
4:01:47 PM
At ease.
4:03:19 PM
CHAIR DUNLEAVY called the committee back to order and reviewed
the next meeting's agenda.
4:04:12 PM
There being no further business to come before the committee,
Chair Dunleavy adjourned the Senate State Affairs Standing
Committee at 4:04 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 5- Written Testimony Willis.pdf |
SSTA 1/31/2017 3:30:00 PM |
SB 5 |
| SB 5 Version D.pdf |
SSTA 1/31/2017 3:30:00 PM |
SB 5 |
| SB 5 Sponsor Statement.pdf |
SSTA 1/31/2017 3:30:00 PM |
SB 5 |
| SB 5 Sectional Summary.pdf |
SSTA 1/31/2017 3:30:00 PM |
SB 5 |
| SB 5 Contribution Limit Chart.pdf |
SSTA 1/31/2017 3:30:00 PM |
SB 5 |
| SB 5 AS 15.13.400 Group Definition.pdf |
SSTA 1/31/2017 3:30:00 PM |
SB 5 |
| SB 5 Changes from V.D to V.O.pdf |
SSTA 1/31/2017 3:30:00 PM |
SB 5 |
| SB 5 - Fiscal Note.pdf |
SSTA 1/31/2017 3:30:00 PM |
SB 5 |
| SB 5 Comparison V.D & V.O.pdf |
SSTA 1/31/2017 3:30:00 PM |
SB 5 |
| CS for SB 5 Version O.PDF |
SSTA 1/31/2017 3:30:00 PM |
SB 5 |
| SB 1 & SB 2 - Letters of Opposition 02.01.17.pdf |
SSTA 1/31/2017 3:30:00 PM |
SB 1 SB 2 |
| SB 1 & SB 2 - Letters of Support 02.01.17.pdf |
SSTA 1/31/2017 3:30:00 PM |
SB 1 SB 2 |