HB 333-CAMPAIGN CONTRIBUTIONS/POET ACCTS  8:05:37 AM CHAIR LYNN announced that the first order of business was HOUSE BILL NO. 333, "An Act relating to public office expense term accounts and public office expense term account reserves." 8:05:59 AM REPRESENTATIVE MIKE HAWKER, Alaska State Legislature, as sponsor, presented HB 333. In response to the chair, he noted that the one change in the proposed committee substitute (CS), Version 27-LS1289\B, Bullard, 2/24/12, is in subparagraph (E), [in Section 1], on page 3, [lines 14-17], which read as follows: (E) unused campaign contribution  transferred under this paragraph must be disposed of  as provided in (2), (3), or (5) of this subsection at  the end of the term of office immediately following  the campaign for which the contributions were  received; and  REPRESENTATIVE HAWKER said the difference is the word "at", between "subsection" and "the end of the term"; he said the original bill read, "by the end of the term". 8:06:51 AM REPRESENTATIVE KELLER moved to adopt the proposed committee substitute (CS), Version 27-LS1289\B, Bullard, 2/24/12, as a work draft. There being no objection, Version B was before the committee. 8:07:13 AM REPRESENTATIVE SEATON asked for confirmation that the change to "at" would not prevent anyone from disposing of a public office expense term (POET) account in the approved manner before the certain date on which the term of office ended. 8:07:55 AM JULIE LUCKY, Staff, Representative Mike Hawker, Alaska State Legislature, on behalf of Representative Hawker, sponsor, referred to a memorandum from the Alaska Public Offices Commission (APOC), included in the committee packet, which confirmed for the sponsor that [the use of the word "at", in Version B], would allow the disposal of POET funds to be handled under the same regulations and guidelines as the disposal of POET reserve funds. 8:09:12 AM PAUL DAUPHINAIS, Executive Director, Alaska Public Offices Commission (APOC), in response to Representative Seaton, explained that APOC wanted the phrase "at the end of the term of  office" used, because the commission does not want people to dispose of the funds during their term of office. He said one appropriate method of dispersal is through a political party. He stated, "There does exist the opportunity for the money to go to a political party and then back to the candidate. While we do not believe anyone would do that purposefully, we wanted to make sure that even the perception of something like that happening wouldn't be here." He said [the proposed language in Version B] "deals with that appropriately by not allowing the political party time to get it back during the campaign period." REPRESENTATIVE SEATON expressed concern regarding the interpretation of the language. 8:11:26 AM REPRESENTATIVE HAWKER said the incorporation of the word "at" in Version B would make the wording the same as in current statute. REPRESENTATIVE SEATON said he realizes it does that, but the purpose of the bill is to clarify what is done with POET funds. REPRESENTATIVE HAWKER said the idea of having the transfer occur at the end of term of office is to prevent the potential rolling over of POET funds from candidate to political party and back to candidate. REPRESENTATIVE SEATON said he wants APOC on record as saying that is the intent of this. 8:13:35 AM MS. LUCKY stated her assumption that the proposed language means any time after the election but before the swearing in date of the new legislature. 8:14:05 AM MR. DAUPHINAIS concurred with what both Representative Hawker and Ms. Lucky articulated. 8:14:29 AM REPRESENTATIVE HAWKER reviewed the purpose of a POET account. He said he does not think anyone really understands why the POET reserve account exists; therefore, it could be eliminated. 8:17:38 AM REPRESENTATIVE GRUENBERG echoed that he does not think anyone knows why the reserve account is necessary. He mentioned that APOC is planning to update its legislative financial disclosure (LFD). In response to the sponsor, he explained that he was imparting information related to easing "our" burden without sacrificing financial disclosure. 8:20:46 AM CHAIR LYNN, after ascertaining that there was no one else who wished to testify, closed public testimony. 8:20:57 AM REPRESENTATIVE SEATON moved to adopt Amendment 1, which read as follows [original punctuation provided]: Page 1, line 1, following "Act": Insert "relating to the disposition of certain  unused campaign contributions; and" Page 3, line 27: Delete "and" Insert "[AND]" Page 3, line 28, following "$5,000": Insert "; and  (E) unused campaign contributions  transferred under this paragraph must be disposed of  as provided in (2), (3), or (5) of this subsection at  the end of the term of office immediately following  the campaign for which the contributions were  received" REPRESENTATIVE JOHANSEN objected for the purpose of discussion. REPRESENTATIVE SEATON said there are municipal POET accounts, and Amendment 1 clarifies that municipal POET accounts would be covered under the same rules as legislative POET accounts. 8:22:04 AM REPRESENTATIVE HAWKER said he welcomes Amendment 1. 8:22:15 AM REPRESENTATIVE GRUENBERG said Mr. Dauphinais had recommended the amendment. CHAIR LYNN removed his objection. There being no further objection, Amendment 1 was adopted. 8:22:43 AM REPRESENTATIVE GRUENBERG moved to report CSHB 333, Version 27- LS1289, Bullard, 2/24/12, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 333(STA) was reported out of the House State Affairs Standing Committee.