SENATE BILL NO. 351 "An Act requiring the Alaska Public Offices Commission to accept documents by nonelectronic means." This was the first hearing for this bill in the Senate Finance Committee. Co-Chair Wilken stated this bill "broadens the acceptable format for the filing of APOC [Alaska Public Offices Commission] mandatory reports. It's sponsored by the Senate Finance Committee." Senator B. Stevens moved to adopt CS SB 351, 23-LS1742\I as a working draft. There was no objection and the committee substitute was ADOPTED. Co-Chair Green testified that when she received notice that further filings of public office information must be through electronic methods, she was "shocked". She remarked that campaigns should have the option of filing by either hard copy or electronic means, provided that the filing is on time and correct. She stated that the Alaska Public Offices Commission (APOC) prefers electronic filing to eliminate the process of transferring information from hard copy and subsequently make the information available to the public immediately. She disagreed this was an issue. She predicted that electronic requirement would be a deterrent for some to file for public office. She relayed that APOC is still in the process of developing electronic filing methods and could be couple more years before established. Regardless, she opined that flexibility should be provided for those to file either electronically or hard copy. Senator Bunde relayed discussion about electronic voting and the need for a paper trail. He asked how this would be assured for APOC information. BROOK MILES, Executive Director, Alaska Public Offices Commission, Department of Administration, testified via teleconference from an offnet location that although she appreciated Co-Chair Green and her staff's professionalism and cooperation, APOC opposes this legislation. She reminded that in 2003 the legislature passed SB 219, relating to campaign finance reform, after undergoing public process. She stated that full disclosure of all campaign contributions are now required of campaigns. She noted that bill provided a $450,000 capital appropriation for APOC to update the existing electronic filing system and to develop new procedures. She added that she supported the retention of the mandatory electronic filing for lobbyists. Ms. Miles spoke to the requirement to fully disclose all contributions under the new statute. She noted that certain political groups, such as labor unions, garner frequent contributes in smaller amounts, thus generating lengthy reports which APOC is required to process. She told of other significant information that APOC staff must enter into a database. She informed that today, the computer program was unable to access the system due to the high number of other users. She qualified that it is an election day for the Municipality of Anchorage. However, she emphasized the Commission operates with a limited budget, with current funding reductions resulting a 20 percent reduction to personal services. Ms. Miles informed that the project to convert to an electronic filing method is underway with planned completion for the gubernatorial election in 2006. She expressed concern that using the current paper method with the changed campaign finance statutes would result in the inability to have information available to the public before elections occur. She relayed the fundamental philosophy that to be fully accessible to the public, APOC information must be available on the Internet. Ms. Miles directed attention to the indeterminate fiscal note submitted by APOC, stating that the number of campaigns that would choose electronic filing is unknown. She listed the number of candidates and groups currently filing electronically. Senator Bunde stated he derived comfort from walking into the APOC office, having his information date stamped and receiving a stamped copy for his records. He also relayed fears of losing work done on his computer. He asked how filers would receive assurance that information submitted was received. Ms. Miles replied that confirmation of received information is sent to the filer via email. She compared this to purchases made through the Internet, whereby buyers receive an email confirmation of their order. She furthered that the filer is also able to print a hard copy of reports and that reports would be printed out by APOC to ensure a "paper trail". Co-Chair Wilken shared that he attempted to file electronically in the year 2000, but encountered difficulties with the system database. He stated he has since filed manually. He asked if the database has been changed to be more user friendly. Ms. Miles assured the upgrade project would be more user friendly. She described the planned web based system that would prompt filers based on the answers to specific questions. Co-Chair Wilken asked when the new system would be operational and implemented. Ms. Miles replied the intent is to be implemented for the 2006 gubernatorial election. Co-Chair Wilken clarified that the system would not be operational for the current year elections. Ms. Miles affirmed. Co-Chair Wilken asked how campaigns were to file electronically this year. Ms. Miles replied that the existing, albeit rudimentary, electronic filing system remains operational until a new system is in place. She pointed out that filing could still be done manually this year. Co-Chair Wilken asked if campaigns filing electronically could access and update information from previous years to avoid "starting all over again" each year. Ms. Miles affirmed this is the focus of the project. Co-Chair Wilken commented that as the system becomes more user friendly it provides incentive for use. He asked whether the Commission has considered imposing a surcharge for those who opt to file manually. Ms. Miles indicated this would be an appropriate option for the Senate Finance Committee to consider. Co-Chair Wilken asked the difference in expense of a manual filing and a recommended surcharge amount. Ms. Miles replied she would calculate this and provide information to the Committee. Senator Bunde commented that other State operations, such as the issuance of business licenses are self-supporting and he suggested APOC could implement filing fees and also become self-supporting. Co-Chair Green announced that she was unaware the electronic filing requirement would not take effect until the elections of 2006 and she therefore had the option to file manually this year. She remarked that if she had understood this she would not have sponsored this legislation. Ms. Miles apologized for the misunderstanding and emphasized that although she had directed APOC staff to encourage electronic filing, staff was not to instruct campaigns that it was required. Co-Chair Wilken clarified that the requirement for electronic filing would not be in effect until the year 2006. Ms. Miles responded this is the intent but she stressed that electronic filing would not be required until a new system is in place and not before the 2006 election. She noted that projects sometimes take longer to complete than planned. Senator B. Stevens offered a motion to move CS SB 351, 23-LS1742\I from Committee as amended, with individual recommendations and accompanying fiscal note. There was no objection and CS SB 351 (FIN) MOVED from Committee with fiscal note #1 from the Department of Administration in an indeterminate amount.