HOUSE BILL NO. 368 "An Act modifying the limitations on political fund raising during legislative sessions by candidates for governor or for lieutenant governor, and 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 within their immediate families, 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, to revise procedures and penalties related to the late filing of disclosures required by the Legislative Ethics Act, and to add a definition to that Act." Co-Chair Chenault informed the committee that although he withdrew Amendment #1 in the previous meeting, he still maintained concerns regarding making the Committee on Legislative Ethics the prosecutor, judge, and jury for ethics violations. 9:06:50 AM Co-Chair Meyer MOVED to ADOPT Amendment #3 (Copy on File): Page 2, following line 18: Insert a new bill section to read: "*Sec. 2. AS 24.60.031 is amended by adding a new subsection to read: (c) this section does not prohibit a legislator from soliciting or accepting a contribution or making campaign expenditures during a special session held during the 90 days immediately preceding an election if the district for which the legislator has filed for office is in the municipality where the special session occurs." Renumber the following bill sections accordingly. Vice-Chair Stoltze OBJECTED. 9:07:23 AM AT EASE: 9:07:31 AM RECONVENED: 9:09:21 AM SUZZANNE ARMSTRONG, STAFF, CO-CHAIR MEYER, explained that the amendment adds a new section under AS 24.60.031 that restricts fundraising. Currently a legislator who is a candidate for office cannot raise funds during regular or special session within the municipality in which the regular or special session is occurring. Concerns were raised regarding parity of those legislators who reside in the municipality where the session occurs. Ms. Armstrong explained that there is a history of changes to the statute regarding fundraising. 9:11:00 AM JOYCE ANDERSON, ADMINISTRATOR, SELECT COMMITTEE ON LEGISLATIVE ETHICS, described an ethics statute from the 1980s that read: Members of the legislature elected to represent the capital city are exempt from the requirements of (f) of the section regarding campaigning. The statute was rewritten in 1992. At that time fundraising became prohibited. She did not find record in the ethics office that there were complaints regarding the issue. Ms. Anderson added that under Amendment #3 a legislator could campaign during a special session in the municipality in which the session is held if it were 90 days preceding an election. Legislators representing districts outside the municipality where the session is held may not campaign or raise funds in the municipality where the session is held. 9:13:58 AM Vice-Chair Stoltz emphasized his objection to the bill. He did not want loopholes created with regards to campaign fund raising. 9:15:25 AM Co-Chair Meyer did not want to put the Juneau legislators at a disadvantage for fundraising, especially in years when there are many special sessions. 9:15:55 AM REPRESENTATIVE BOB LYNN, SPONSOR, thought the amendment's intent was good, but felt the bill should remain unchanged. He wanted fewer loopholes and exceptions in order to make the law easier to follow. 9:16:46 AM Representative Hawker expressed concern that without the amendment the bill could present a discriminatory situation. He underlined the importance of maintaining equal treatment under the law. 9:17:20 AM Representative Gara discussed the timing of the fundraising. Fundraising is prohibited up until 90 days before the election. Without the amendment, an incumbent legislator could be at a disadvantage in competitive campaigns if they represent the municipality in which the special session is held. He thought the rule should be equal; either everyone or no one should be able to fundraise. He stated concerns regarding corruption without the amendment. Co-Chair Mayer stated his agreement. 9:20:02 AM Representative Thomas supported the amendment because it levels the playing field. Representative Nelson pointed out for the record that Juneau members do not support the amendment. 9:21:24 AM Representative Gara pointed out a language error and suggested amending the amendment to add legislative staff or legislative employee. 9:22:04 AM Vice-Chair Stoltze pointed out that staff has to resign in order to run for office. Ms. Anderson affirmed his statement. Representative Gara withdrew the amendment to the amendment. Ms. Armstrong explained that AS 24.60.031 (a) and (b) are the sections that outline what legislative employees cannot do on behalf of a legislator running for office. 9:23:00 AM Vice-Chair Stoltze echoed comments that Juneau legislators are opposed to the amendment. He described campaign difficulties because of being distant from his district. 9:25:02 AM Vice-Chair Stoltze MAINTAINED his OBJECTION. A roll call vote was taken on Amendment #3. IN FAVOR: Thomas, Crawford, Gara, Hawker, Joule, Meyer OPPOSED: Nelson, Stoltze, Kelly, Chenault The MOTION PASSED (6-4). Representative Thomas asked why the provision does not include the governor and lieutenant governor. 9:26:36 AM Representative Lynn reported that the issue was discussed at length in the House Judiciary Committee. The governor and lieutenant governor were taken out as it was felt that it was inappropriate to use the bill for a broader ethics concern. 9:27:40 AM Representative Thomas observed that the bill was filed before the lieutenant governor filed for office. Representative Lynn noted there had been much political debate over the issue. He felt that it was better to leave the executive branch out of the provision. 9:28:17 AM MIKE SICA, STAFF, REPRESENTATIVE BOB LYNN, said the genesis of the bill was when the Select Committee on Legislative Ethics came to the House and Senate with a request for a simple "fix it" bill. He explained that Section 1, Title 15 was not in the original bill. It was added because a change to the statute on fundraising should apply to the executive branch as well. Though well intentioned, it did not fit with the committees recommendations. Representative Lynn observed that inclusion of the executive branch created political challenges detracting from the attempt to pass an ethics bill. 9:29:38 AM Representative Thomas emphasized concern about the ability of the governor and lieutenant governor to campaign while the legislature is in session. He suggested the effective date be changed to November. He felt no one should campaign during session. Representative Lynn responded that the effective date for the entire bill would then be changed. Co-Chair Meyer did not think the legislature should concern itself with the executive branch. 9:30:44 AM Vice-Chair Stoltze MOVED to report CS HB 368 as amended out of Committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, CS HB 368 (STA) title am, as amended, was reported out of Committee with a "do pass" recommendation, a zero fiscal note from Department of Administration, and a new zero fiscal note from the Legislature. 9:32:47 AM