SENATOR KELLY introduced SB 208 (CANDIDATES MUST RESIGN STATE                 
 EMPLOYMENT) and invited the sponsor, SENATOR DAVE DONLEY to                   
 testify.                                                                      
                                                                               
 SENATOR DONLEY explained the purpose of the bill is to require that           
 anyone who chooses to run for office and raise money to do so, must           
 resign from their state employment.  He also explained that once a            
 letter of intent has been filed with the Alaska Public Offices                
 Commission, a person becomes a candidate and can raise money for              
 their campaign.  SENATOR DONLEY thought currently state employees             
 have an unfair advantage in raising funds for their election due to           
 the position of power they might hold with their state employment.            
                                                                               
 SENATOR DONLEY said he would make a specific exception for those              
 people who currently hold elective state office, or who are running           
 for another state position, because of their place in the political           
 mainstream, being elected to that position in the first place. He             
 explained the classified, partially exempted have already been                
 prohibited from running for state office, since people in an                  
 exempt position are typically political appointees.  He thought it            
 would be a good government idea to keep them from utilizing their             
 public position as a springboard during the election process, also.           
                                                                               
 SENATOR DONLEY suggested the committee might want to narrow the               
 scope to include only those employees over a certain range, and he            
 explained his reasons.                                                        
                                                                               
 SENATOR KELLY admitted he liked the bill.                                     
                                                                               
 SENATOR SHARP asked SENATOR DONLEY about the definition of state              
 employees and whether it went into such agencies as ADA, the                  
 University of Alaska, and Alaska Housing Finance.                             
                                                                               
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 SENATOR DONLEY thought anyone who receives a salary from the state            
 government would be covered under the parameters of the bill.                 
                                                                               
 SENATOR SALO suggested there are some gray areas such as the Alaska           
 Railroad and thought there might be some questions directed at the            
 legislation.                                                                  
                                                                               
 SENATOR DONLEY said he had no problem being more specific in                  
 listing the exemptions.                                                       
                                                                               
 SENATOR KELLY directed staff to work on a committee substitute for            
 the next meeting, and he listed some of the possible inclusions to            
 the list.