HB 45-CONTRIBUTIONS, LOBBYISTS, DISCLOSURE 8:07:07 AM CHAIR SEATON announced that the first order of business was HOUSE BILL NO. 45, "An Act amending the definition of the term 'lobbyist' in the Regulation of Lobbying Act; and providing for an effective date." [Before the committee was CSHB 45, Version 24-LS0312\F, Wayne, 3/10/06.] 8:07:19 AM CHAIR SEATON, after ascertaining that there was no one to testify, closed public testimony. 8:08:22 AM CHAIR SEATON moved to adopt Amendment 1, labeled 24LS0312\F.2, Wayne, 3/27/06, which read as follows: Page 1, line 1: Delete "contribution limits, lobbyists, and  disclosure" Insert "lobbyists and campaign disclosure" Page 1, line 4, through page 3, line 10: Delete all material and insert:  "* Section 1. AS 15.13.040(b) is amended to read: (b) Except as provided in (l) of this section, each group shall make a full report, by electronic  means upon a form prescribed by the commission, listing (1) the name and address of each officer and director; (2) the aggregate amount of all contributions made to it; (3) for contributions  (A) up to and including $250 in the  aggregate during a calendar year, the name, address, [DATE,] and amount contributed by each contributor; (B) [AND, FOR CONTRIBUTIONS] in excess of $250 in the aggregate during a calendar year, the contributor's name, address, principal occupation, [AND] employer, and amount contributed [OF THE CONTRIBUTOR]; and (4) the date and amount of all contributions made by it and all expenditures made, incurred, or authorized by it.  * Sec. 2. AS 24.45.171(10) is amended to read: (10) "lobbyist" means a person who (A) engages in the business, occupation, or profession of influencing legislative or administrative action; or (B) receives wages or other economic consideration, including reimbursement of travel and living expenses, to communicate directly with any public official (i) for the express purpose of influencing legislative or administrative action; and (ii) during more than 16 [40] hours in any 30-day period in one calendar year;" Renumber the following bill section accordingly. 8:08:39 AM REPRESENTATIVE LYNN objected for discussion purposes. 8:08:49 AM CHAIR SEATON said Amendment 1 would do the following: require that financial reports by groups be by electronic means on forms prescribed by the Alaska Public Offices Commission (APOC); change from 40 to 16 the hours that a person may lobby the legislature in a 30-day period before having to register as a lobbyist with APOC; and change the contribution reporting requirements. 8:09:33 AM CHAIR SEATON moved Amendment 1 to Amendment 1, labeled 24- LS0312\F.3, Wayne, 3/29/06, which read as follows: Page 1, lines 13 - 19, of Amendment F.2: Delete all material and insert: "(A) up to and including $100 in the  aggregate during a calendar year, the name, address, date, and amount contributed by each contributor;  (B) in excess of $100 and up to and  including $250 in the aggregate during a calendar  year, the name, address, date, principal occupation,  and amount contributed by each contributor;  (C) [AND, FOR CONTRIBUTIONS] in excess of $250 in the aggregate during a calendar year, the name, address, principal occupation, [AND] employer, and amount  contributed by each [OF THE] contributor; and" 8:09:49 AM REPRESENTATIVE LYNN objected for discussion purposes. 8:10:16 AM CHAIR SEATON spoke to Amendment 1 to Amendment 1. He reminded the committee that HB 45 was offered as legislation substantially similar to an initiative that will be on the ballot. He said, "If we would have approved HB 45 ... throughout the entire process, it would have eliminated the initiative from the ballot." With the aforementioned amendments, he said, the bill will not be substantially similar. The change proposed in Amendment 1, to change the time period from 40 hours to 16 hours, would mean that the lobbyist would have two workdays in which to lobby. He opined that that is a reasonable amount of time, whereas 40 hours is not. He said if the initiative passes, it would amalgamate [subparagraphs] (B) and (C) of Amendment 1 to Amendment 1, but would not delete [subparagraph] (A). Therefore, there would still be reporting of amounts from zero and $100 in the aggregate per year. 8:15:53 AM CHAIR SEATON, in response to Representative Gatto, clarified: If this passes and the initiative passes, the initiative will take and supersede [subparagraphs] (B) and (C), so that a group would have to report the employer and his occupation for everything over $100, but [subparagraph] (A), which is reporting only the name, address, date, and the amount, would remain in play. 8:16:22 AM REPRESENTATIVE LYNN asked what would be wrong with requiring all the information for all the contributions. 8:16:43 AM CHAIR SEATON explained that current law stipulates that a person must report the information, but does not have to report the occupation or employer until the amount of $150 is reached. He said there is nothing in the amendment that would prevent someone from reporting the additional information by choice, but he/she would not be required to do so. 8:17:50 AM REPRESENTATIVE LYNN reiterated his question. 8:18:04 AM REPRESENTATIVE GARDNER suggested that the reason not to require the entire scope of information in all circumstances is that at some point the requirement becomes too onerous. She said it would be impractical to ask for all that information for every nickel that is contributed. CHAIR SEATON asked the committee to realize that HB 45 and the aforementioned initiative address contributions to groups and do not change the information required by candidates. 8:19:00 AM REPRESENTATIVE ELKINS asked if there has been abuse regarding this issue, because "this almost seems like additional harassment." 8:19:27 AM CHAIR SEATON told Representative Elkins that currently groups are required to report "all the information" for every donation. He said: This will clarify and make it easier for [the Alaska Public Offices Commission (APOC)], and yet there will still be full reporting, even if the initiative passes. The initiative currently is unclear as to whether, since there's not another category of up to $100, ... any reporting would be required under $100 by group. And so this makes it clear that the groups would still be required to report the lesser amount of information, but they would report that information. REPRESENTATIVE ELKINS questioned if the committee is taking the bill in a different direction than the sponsor anticipates. CHAIR SEATON said the bill sponsor has expressed his acceptance of amendments to the bill. 8:21:31 AM CHAIR SEATON, in response to a question from Representative Gatto, said the amendment affects those groups that are structured to support candidates and election positions and have to report to APOC. Those organizations that are 501(3)(c), [nonprofit], do not report to APOC. 8:22:07 AM REPRESENTATIVE LYNN removed his objection to Amendment 1 to Amendment 1. There being no further objection, Amendment 1 to Amendment 1 was adopted. 8:22:47 AM REPRESENTATIVE GARDNER, regarding the time spent as a lobbyist, said 16 hours of lobbying really equals more than two days. She explained that that time is not the time spent in Juneau or in the capitol building, but it is the amount of time spent face to face with legislators. Therefore, 16 hours could be spread out over four or five days. 8:23:17 AM CHAIR SEATON said the 16 hours would allow people who frequently come to Juneau for two days to not be concerned about keeping track of their lobbying time. He reiterated his understanding that testifying before a committee doesn't count towards lobbying time. He invited a representative from APOC to testify and confirm his understanding or correct it. 8:24:21 AM TAMMY KEMPTON, Regulation of Lobbying, Alaska Public Offices Commission (APOC), Department of Administration, stated: With all due respect [Chair] Seaton, time spent testifying does count towards the 16 hours, the 40 hours, or whatever it is. That's one of the biggest misunderstandings in the lobbying law. MS. KEMPTON referenced [AS 24.45.161(a)(1)(A) and (B)], which read: (a) This chapter does not apply to (1) an individual (A) who lobbies without payment of compensation or other consideration and makes no disbursement or expenditure for or on behalf of a public official to influence legislative or administrative action other than to pay the individual's reasonable personal travel and living expenses; and (B) who limits lobbying activities to appearances before public sessions of the legislature, or its committees or subcommittees, or to public hearings or other public proceedings of state agencies; MS. KEMPTON emphasized that the word "and" appears between subparagraphs (A) and (B). She added that telephone time also counts towards lobbying time. CHAIR SEATON thanked Ms. Kempton for the clarification. 8:26:36 AM MS. KEMPTON, in response to a question from Representative Lynn, explained that if a person is only being reimbursed for expenses, is not receiving a salary, and is not an employee for the organization for which he/she is lobbying, then he/she is called a representational lobbyist and must register before beginning to lobby. The representational lobbyist does not have to pay the $250 registration, file reports, or be subject to the other prohibitions in terms of prohibitions and fundraising for legislative campaigns. She said the organization reimbursing the expenses of the representational lobbyist has to report the reimbursements. In response to a follow-up question from Representative Lynn, she said a lobbyist who was only being reimbursed for his/her airfare would still be considered a representational lobbyist. 8:28:19 AM CHAIR SEATON asked where the lobbying law comes in to play. 8:28:32 AM MS. KEMPTON said basically what APOC does is follow the money; therefore, if there is no money changing hands, there is nothing for APOC to follow and there is nothing to be reported. Lobbyists don't report with whom they meet; they report how much they are paid to meet with people and how much they spend. 8:29:25 AM MS. KEMPTON, in response to a question from Representative Gatto, said she herself is representing a state office and, thus, is not acting as a lobbyist. She cited AS 24.45.161 as being an exemption for state officials and employees who are acting in the course of their duties. The same applies for municipal employees and officials. 8:30:25 AM REPRESENTATIVE GATTO asked about the oil companies. MS. KEMPTON responded, "The oil companies are probably the best we have at registering and reporting; they are almost never a problem. And if there should happen to be a mistake and they've done something wrong, they immediately correct it." 8:30:59 AM REPRESENTATIVE GATTO asked if lobbyist are allowed to round numbers or must report time precisely. 8:31:08 AM MS. KEMPTON replied that the reporting is done on the honor system. She said she tells people if there is ever a complaint filed she will ask for some sort of accounting; however, if the person doesn't keep accounting, then APOC will have to ask everyone with whom the lobbyist met to verify the meeting and time involved. 8:31:51 AM CHAIR SEATON offered his understanding that the hour requirement had been 4 hours and was changed to 40. He asked Ms. Kempton if, at the time of that change, there were a lot of people who no longer registered. 8:32:18 AM MS. KEMPTON answered that APOC did see a significant drop. The year the number changed to 40 hours there were 213 registered lobbyists. Before the oil companies started registering, there were approximately 120 registered, and there are about 130 now. 8:32:45 AM CHAIR SEATON asked if the proposed change from 40 to 16 would result in requiring most of those lobbying currently to register with APOC. 8:33:05 AM MS. KEMPTON answered yes. The drop was not in professional lobbyists with multiple clients, but with part-time lobbyists and attorneys. 8:34:12 AM REPRESENTATIVE LYNN removed his objection to Amendment 1, [as amended]. There being no further objection, Amendment 1, as amended, was adopted. 8:34:48 AM REPRESENTATIVE GARDNER moved to report HB 45, as amended, out of committee with individual recommendations and the accompanying fiscal notes. REPRESENTATIVE LYNN said he has no objection, but stated that about three years ago he had objected strongly regarding raising [individual] contributions to candidates from $500 to $1,000, because he thought it put a chilling effect on the entire process. He talked about the advantage that incumbents have over other candidates. 8:36:30 AM CHAIR SEATON, in response to a remark by Representative Lynn, clarified that HB 45, [as amended], would not change any of the [individual] contribution amounts to which Representative Lynn had referred. He added, "But if an initiative later passes, it would have [the effect of lowering the individual contribution amounts.]" REPRESENTATIVE GATTO observed that Representative Gardner had made the motion to move the original bill out of committee rather than Version F. 8:37:52 AM REPRESENTATIVE GARDNER withdrew her motion to move HB 45 out of committee. 8:38:04 AM REPRESENTATIVE GARDNER moved to report CSHB 45, Version 24- LS0312\F, Wayne, 3/10/06, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 45(STA) was reported out of the House State Affairs Standing Committee.