SENATE BILL NO. 105                                                            
                                                                               
"An Act relating to legislative ethics; relating to                            
the filing of disclosures by certain legislative                               
employees and officials; and providing for an                                  
effective date."                                                               
                                                                               
PHYLLIS JOHNSON, (TESTIFIED VIA TELECONFERENCE), ALASKA                        
RAILROAD CORPORATION, ANCHORAGE, addressed comments to the                     
current version of the legislation before the Committee.                       
She noted that the Alaska Railroad agrees that they need to                    
improve the internal code of ethics, specifically in                           
regards to the enforcement and follow up on perceived                          
violations.                                                                    
                                                                               
She advised that the Alaska Railroad Corporation does not                      
object to being included in the legislation, although, the                     
Railroad is concerned with the State Personnel Board as the                    
final decision arbitrator.  She stressed that railroad                         
personnel are not State employees and should not be treated                    
as such.                                                                       
                                                                               
Representative Martin pointed out that the proposed                            
legislation provides for a compromise as called for in the                     
Constitution specified in the Executive Budget Act.                            
                                                                               
SUSIE BARNETT, (TESTIFIED VIA TELECONFERENCE), STAFF,                          
SELECT COMMITTEE ON LEGISLATIVE ETHICS, ANCHORAGE, remarked                    
that the Select Committee had not had an opportunity to                        
review the current version of the legislation before the                       
Committee.  She noted that there will be sections of the                       
bill which the Finance Committee will not like.  Ms.                           
Barnett emphasized that there has been tremendous                              
compromise during the process, and that Sections #13 and                       
                                                                               
Representative Martin questioned if there had been                             
consideration of including a "severability" clause.                            
                                                                               
JAMES BALDWIN, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF                       
LAW, explained that the statutory severability clause                          
creates a slight presumption of severability.  An express                      
severability clause would raise that presumption higher in                     
which a court would look at to determine the true intention                    
of the Legislature for those provisions to be tied                             
together.                                                                      
                                                                               
Mr. Baldwin advised that the American Civil Liberties Union                    
(ACLU) lawsuit, contesting the campaign finance provisions,                    
are similar to the ones included the proposed legislation.                     
He suggested that the bill would have a difficult time                         
defending those provisions.                                                    
                                                                               
Representative Martin asked if the State would be "safe" by                    
including a severability clause at the bottom of the                           
legislation.  Mr. Baldwin suggested that could not hurt.                       
He recommended repeating the language contained in AS                          
0.110.100(b), which would slightly raise the presumption of                    
severability.  Representative Mulder recommended that such                     
a change be made on the House floor in order to expediate                      
the process of the bill moving from Committee.                                 
                                                                               
Representative Mulder MOVED to report HCS CSSB 105 (FIN)                       
out of Committee with individual recommendations and with                      
the accompanying fiscal notes.  There being NO OBJECTION,                      
it was so ordered.                                                             
                                                                               
HCS CSSB 105 (FIN) was reported out of Committee with "no                      
recommendation" and with a fiscal note by the Department of                    
Law dated 4/23/98 and zero fiscal notes by the House                           
Finance Committee, the Department of Administration dated                      
4/23/98, and the Select Committee on Legislative Ethics                        
dated 4/23/98.