HB 317-COMPASSIONATE GIFT EXEMPTION 8:08:05 AM VICE CHAIR ROSES announced that the first order of business was HOUSE BILL NO. 317, "An Act eliminating the limit on compassionate gifts that a legislator or legislative employee may solicit, accept, or receive under the Legislative Ethics Act; and providing for an effective date." 8:08:19 AM REPRESENTATIVE COGHILL introduced HB 317 as prime sponsor. He said the Select Committee on Legislative Ethics asked him to sponsor the proposed legislation, which would remove the limit from compassionate giving. He related that currently there is a legislative member who may not be able to receive a needed kidney donation, because the value of getting the organ would be over $250 - the limit currently in statute. Representative Coghill explained that a kidney is priceless; therefore, the value in question is related to the cost of making the compassionate gift, including travel and medical costs. Representative Coghill paraphrased the last paragraph of the sponsor statement, which read [original punctuation provided]: HB 317 eliminates the less than $250 limit on compassionate gifts from AS 24.60.075(c) and allows unlimited compassionate contributions, including organ and frequent flyer donations. Mandatory reporting of the compassionate fits is still required. REPRESENTATIVE COGHILL said it had been suggested to him that a cap should be placed on the gift value. He stated, "If for some reason it's inordinate, you still have the Legislative Council who will be looking at it, and certainly if it gets way out of order [the Internal Revenue Service (IRS)] will be looking at it." He said the legislature anticipated the need for compassionate gifts, but the $250 was "conforming to other areas." 8:11:33 AM VICE CHAIR ROSES noted that there had been discussion in the Ethics Committee regarding the $250 limit, and while some felt the limit was not necessary, others felt the need to close a loophole. 8:12:10 AM REPRESENTATIVE JOHNSON said he had been concerned that the legislature not try to establish the value of a kidney, and he expressed appreciation that the bill sponsor had established for the record that indeed that is not what the bill is trying to do. 8:13:11 AM JOYCE ANDERSON, Ethics Committee Administrator, Select Committee on Legislative Ethics, Legislative Agencies & Offices, confirmed Vice Chair Roses' remark regarding the concerns of the Ethics Committee. She relayed that she has received three or four phone calls regarding the donation of air miles. The $250 cap limits the donation of air miles to Representative Foster to use for round trip travel to Seattle [for medical purposes]. She said Northwest Airlines assigned a value of $100 for each 10,000 miles. Ms. Anderson said another concern was a fundraiser held in Nome, during which the Lion's Club raised $7,000. There was no accounting of where the money came from, she said. She added, "And if there was [a] $250 limit, we would have no idea, because the Lion's Club just had a chicken barbeque and so forth." She said she thinks the $250 limit puts an unfair burden on the individual who is having the health-related problem, catastrophe, or tragedy, and that limit should be lifted. She said the person should be required simply to report the dollar amount or air miles received. MS. ANDERSON, in response to Vice Chair Roses, acknowledged the reporting requirement exists in the proposed legislation. The recipient would be required to report the gift within 30 days - the disclosure is public. It would not be published in the Legislative Journal; however, it would be posted on the Ethics website and listed with all the other disclosures. She added that there is some oversight provided, as well. 8:15:31 AM REPRESENTATIVE JOHNSON stated that his only concern is the 30- day reporting period. He questioned whether that would be enough time for someone who is recovering from a potentially life-threatening disease, for example. He used Representative Foster as an example, commenting that he hopes the legislator's top priority when going for a live transplant would not be filling out a form, but rather getting well. 8:16:42 AM MS. ANDERSON said the 30-day reporting requirement was included because that's what all the other deadlines are; it's a matter of consistency. Notwithstanding that, she said she can foresee no problem in amending that to a 60-day requirement or whatever the committee decides is realistic. She stated, "This is not the type of reporting that would be similar to, let's say, a gift of travel or some of those that need the 30-day reporting." 8:17:17 AM REPRESENTATIVE JOHNSON asked what the response of the Ethics Committee would be if someone were late to report in this type of situation. MS. ANDERSON answered that there is one "free" disclosure that comes in late. Furthermore, the Ethics Committee has the discretion to say that there were inadvertent circumstances regarding the disclosure, in which case, there would be no fine filed at all. REPRESENTATIVE JOHNSON said he is comfortable knowing that the committee has that latitude. 8:18:08 AM VICE CHAIR ROSES, speaking as a member of the Ethics Committee, said the group of people serving on that committee are compassionate, and "there isn't any way in the world anybody's going to be fined or be found in violation of the ethics laws under those kinds of circumstances." 8:18:59 AM REPRESENTATIVE COGHILL said he is content to keep the reporting requirement at 30 days for the sake of consistency, given the latitude of the committee. 8:19:37 AM VICE CHAIR ROSES, after ascertaining that there was no one else to testify, closed public testimony. 8:19:43 AM REPRESENTATIVE COGHILL moved to report HB 317 out of committee with individual recommendations and the accompanying zero fiscal note. There being no objection, HB 317 was reported out of the House State Affairs Standing Committee.