Legislature(2009 - 2010)HOUSE FINANCE 519

03/16/2010 01:30 PM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
Moved CSHB 36(FIN) Out of Committee
<Bill Held Over from 9:00 am Today>
HOUSE BILL NO. 36                                                                                                             
     "An Act prohibiting  initiatives that are substantially                                                                    
     similar to  those that failed  within the  previous two                                                                    
     years;  relating  to   financial  disclosure  reporting                                                                    
     dates for  persons, groups, and nongroup  entities that                                                                    
     expend  money  in  support  of   or  in  opposition  to                                                                    
     initiatives,   initiative   information  contained   in                                                                    
     election  pamphlets,  initiative petitions,  initiative                                                                    
     petition   circulators,   and   public   hearings   for                                                                    
     initiatives; and requiring a  standing committee of the                                                                    
     legislature  to  consider   initiatives  scheduled  for                                                                    
     appearance on the election ballot."                                                                                        
1:49:30 PM                                                                                                                    
Co-Chair Stoltze  informed the committee that  new Amendment                                                                    
6 would replace  Amendment 4, which had been  withdrawn in a                                                                    
previous  meeting,  and  that   Amendment  7  would  replace                                                                    
previous Amendment 1.                                                                                                           
Representative Doogan MOVED to ADOPT Amendment 6 (26-                                                                           
LS0197\S.13, Bullard, 3/16/10):                                                                                                 
     Page 1, line 1:                                                                                                            
          Delete "and to ballot initiatives"                                                                                  
          Insert   ",   to   ballot  initiatives,   and   to                                                                  
          communications made in connection with elections"                                                                   
     Page 2, following line 19:                                                                                                 
          Insert new bill sections to read:                                                                                     
     "*Sec. 4. AS 15.13.090(a) is amended to read:                                                                            
               (a) All communications shall be clearly                                                                          
          identified by the words "paid  for by" followed by                                                                    
          the  name and  address of  the person  [CANDIDATE,                                                                
          GROUP, NONGROUP ENTITY,  OR INDIVIDUAL] paying for                                                                    
          the communication. In addition,                                                                                       
                    (1) candidates and groups may identify                                                                  
         the name of the campaign chairperson; and                                                                          
                    (2) a person paying for a communication                                                                 
          relating to an initiative shall clearly                                                                           
                    (A)   if    applicable,   identify   the                                                                
          person's  principal  officer   and  the  officer's                                                                
          title; and                                                                                                        
                    (B) identify the three contributors                                                                     
          that have  contributed the largest amounts  to the                                                                
          person in excess  of $500, if any,  with the words                                                                
          "top three contributors." [.]                                                                                     
     *Sec. 5. AS 15.13.090 is amended by adding new                                                                           
     subsections to read:                                                                                                       
               (c) The contributors described in (a)(2)(B)                                                                      
          of this  section shall be  listed in order  of the                                                                    
          amount of  their contributions, except  that those                                                                    
          contributing  the  same  amount  shall  be  listed                                                                    
          alphabetically. In no case shall a person be                                                                          
          required to identify more than three contributors                                                                     
          under (a)(2)(B) of this section.                                                                                      
               (d) In this section, "contributors" means                                                                        
          the true source of the funds being contributed to                                                                     
         the person paying for the communication."                                                                              
     Renumber the following bill sections accordingly.                                                                          
     Page 7, line 13:                                                                                                           
          Delete "This Act applies"                                                                                             
          Insert "Sections 1 - 3 and 6 - 16 of this Act                                                                         
Co-Chair Hawker OBJECTED.                                                                                                       
Representative  Doogan explained  that Amendment  6 replaced                                                                    
Amendment  4 and  addressed previous  problems. Amendment  4                                                                    
removed  provisions (b)  and (c),  dealing with  a statement                                                                    
from the person approving  the communication; both are taken                                                                    
out  of   Amendment  6.  Amendment  4   also  provided  more                                                                    
information.  Amendment  6  would   make  what  used  to  be                                                                    
subsection (d)  into subsection (b)  and simplify it  to say                                                                    
that the  three contributors  that have offered  the largest                                                                    
amounts  (in excess  of $500)  must  be put  on the  record.                                                                    
Amendment   6    would   have   the    contributors   listed                                                                    
alphabetically if there is a tie among the three.                                                                               
Representative Doogan  argued that the issues  are the same;                                                                    
he  was  concerned  that  people who  listen  to  radio  and                                                                    
television ads and get mailings  would know who is providing                                                                    
the material in a "real  world" way (as real individuals and                                                                    
not as a group with a made-up name).                                                                                            
1:53:23 PM                                                                                                                    
Co-Chair Hawker  MAINTAINED his  OBJECTION. He  believed the                                                                    
issue was complex, and that  the amendment deviated from the                                                                    
core purpose of  the original bill. He  referred to separate                                                                    
bills  making their  way through  the House  and the  Senate                                                                    
that specifically address the  larger issues surrounding the                                                                    
ballot initiatives communications.                                                                                              
Co-Chair Stoltze  asked what would  happen if  an individual                                                                    
contributed  money  later in  the  process,  when the  print                                                                    
materials   were   already   done.   Representative   Doogan                                                                    
responded  that a  campaign would  have to  comply with  the                                                                    
law, including changing printed material.                                                                                       
Co-Chair Hawker  maintained that the amendment  mandates use                                                                    
of the  words "top  three contributors."  He could  think of                                                                    
circumstances applying to both  an initiative and opposition                                                                    
to an initiative where there  are not three contributors. He                                                                    
was concerned with the technical problems.                                                                                      
REPRESENTATIVE  KYLE  JOHANSEN,  SPONSOR,  agreed  with  the                                                                    
concept in the  amendment but questioned the  timing. He had                                                                    
concerns  about  practical matters  and  did  not think  the                                                                    
amendment  was   ready  to  go  into   the  legislation.  He                                                                    
supported working  with a sponsor's  amendment to put  it in                                                                    
later or into another bill.                                                                                                     
Representative  Doogan  did  not   believe  there  would  be                                                                    
opportunity to incorporate the concept  in the House version                                                                    
of the bill. He believed  the amendment was better than none                                                                    
at  all.  He  wanted  the information  to  be  available  to                                                                    
voters. He  was confident that  the Senate could  refine the                                                                    
language as needed.                                                                                                             
1:58:27 PM                                                                                                                    
Representative Joule  believed that  the sponsor  wanted the                                                                    
concept  to  mature and  perhaps  be  applied in  the  Rules                                                                    
Committee or on the floor.                                                                                                      
Co-Chair Stoltze agreed. He wanted  to promote good will and                                                                    
Vice-Chair  Thomas  agreed as  well.  He  was not  concerned                                                                    
about  what  the  Senate  would   do.  He  did  not  support                                                                    
Amendment 6  but would support  the sponsor  working further                                                                    
on the bill during the process.                                                                                                 
Representative   Austerman  wanted   to   see  Amendment   6                                                                    
incorporated into  the legislation  but had  questions about                                                                    
how  the  technicalities  would   work  for  the  initiative                                                                    
process. He did not support the amendment.                                                                                      
Representative Doogan WITHDREW  Amendment 6, commenting that                                                                    
he did not want  to hold the bill up. He  hoped to work with                                                                    
the   sponsor   to   incorporate  the   concept   into   the                                                                    
legislation.  He  stated  that  he did  not  have  a  hidden                                                                    
Co-Chair Hawker WITHDREW his OBJECTION.                                                                                         
2:02:56 PM                                                                                                                    
Co-Chair   Stoltze  MOVED   to   ADOPT   Amendment  7   (26-                                                                    
LS0197\S.12, Bullard, 3/16/10):                                                                                                 
     Page 2, following line 6:                                                                                                  
          Insert a new bill section to read:                                                                                    
     "Sec. 3. AS 15.13.050 is amended by adding a new                                                                         
     subsection to read:                                                                                                        
               (c) If a group intends to make more than 50                                                                      
          percent  of its  contributions or  expenditures in                                                                    
          support of  or opposition  to a  single initiative                                                                    
          on the  ballot, the  title or  common name  of the                                                                    
          initiative  must be  a  part of  the  name of  the                                                                    
          group. If the  group intends to make  more than 50                                                                    
          percent  of its  contributions or  expenditures in                                                                    
          opposition to  a single initiative on  the ballot,                                                                    
          the  group's  name  must clearly  state  that  the                                                                    
          group  opposes that  initiative  by  using a  word                                                                    
          such  as  "opposes,"  "opposing,"  "in  opposition                                                                    
          to," or "against" in the group's name."                                                                               
     Renumber the following bill sections accordingly.                                                                          
Co-Chair Hawker OBJECTED for discussion.                                                                                        
Representative  Johansen commented  that  the amendment  had                                                                    
been  worked  on  by  staff  in response  to  a  concern  of                                                                    
Representative Gara.                                                                                                            
SONIA    CHRISTENSEN,   STAFF,    REPRESENTATIVE   JOHANSEN,                                                                    
explained  that  the  amendment  echoed  the  sentiments  of                                                                    
Amendment 1,  but addressed  the issue  of the  word "only."                                                                    
There  had  been  concern  that  the  word  could  create  a                                                                    
loophole allowing a  group to spend 95 percent  of its money                                                                    
on an  initiative and 5  percent on something else  in order                                                                    
to avoid using the title of  the initiative in its name. She                                                                    
noted that  Amendment 7 specifies  that a group has  to have                                                                    
the ballot  measure in its  title if  it uses 50  percent or                                                                    
more of its funds towards a ballot measure.                                                                                     
Co-Chair  Hawker  WITHDREW  his OBJECTION.  There  being  NO                                                                    
further OBJECTION, Amendment 7 was ADOPTED.                                                                                     
Representative   Johansen    acknowledged   the    work   of                                                                    
Representative Gara and his staff on the amendment.                                                                             
2:06:00 PM                                                                                                                    
Co-Chair Stoltze MOVED to ADOPT Amendment 2 (26-LS0197\S.1,                                                                     
Bullard, 1/25/10) (copy on file), previously offered and                                                                        
temporarily withdrawn:                                                                                                          
     Page 1, line 1, following "initiatives":                                                                                 
          Insert "and  those who file  or organize  in order                                                                  
          to file them"                                                                                                       
     Page 4, following line 30:                                                                                                 
          Insert a new bill section to read:                                                                                    
     "*Sec. 8. AS 15.13.400(8) is amended to read:                                                                            
               (8) "group" means                                                                                                
                    (A) every state and regional executive                                                                      
          committee of a political party; [AND]                                                                                 
                    (B) any combination of two or more                                                                          
          individuals  acting jointly  who organize  for the                                                                    
          principal  purpose of  influencing the  outcome of                                                                    
          one  or more  elections  and who  take action  the                                                                    
          major  purpose  of  which   is  to  influence  the                                                                    
          outcome  of  an  election;   a  group  that  makes                                                                    
          expenditures  or receives  contributions with  the                                                                    
          authorization or  consent, express or  implied, or                                                                    
          under  the  control,  direct  or  indirect,  of  a                                                                    
          candidate shall be considered  to be controlled by                                                                    
          that candidate; a group whose  major purpose is to                                                                    
          further the nomination,  election, or candidacy of                                                                    
          only  one individual,  or intends  to expend  more                                                                    
          than  50   percent  of  its  money   on  a  single                                                                    
          candidate,  shall be  considered to  be controlled                                                                    
          by than  candidate and its  actions done  with the                                                                    
          candidate's knowledge  and consent  unless, within                                                                    
          10 days from the date  the candidate learns of the                                                                    
          existence of  the group  the candidate  files with                                                                    
          the  commission,   on  a  form  provided   by  the                                                                    
          commission,  an   affidavit  that  the   group  is                                                                    
          operating  without  the   candidate's  control;  a                                                                    
          group organized  for more than one  year preceding                                                                    
          an  election  and  endorsing candidates  for  more                                                                    
          than one  office or more than  one political party                                                                    
          is presumed  not to be controlled  by a candidate;                                                                    
          however,  a group  that contributes  more than  50                                                                    
          percent  of  its money  to  or  on behalf  of  one                                                                    
          candidate shall be considered  to support only one                                                                    
          candidate  for purposes  of AS  15.13.070, whether                                                                    
          or not  control of  the group has  been disclaimed                                                                    
          by the candidate; and                                                                                             
                    (C) any combination of two or more                                                                      
          individuals  acting jointly  who organize  for the                                                                
          principal   purpose   of  filing   an   initiative                                                                
          proposal  application under  AS  15.45.020 or  who                                                                
          file an  initiative proposal application  under AS                                                                
     Renumber the following bill sections accordingly.                                                                          
Co-Chair Hawker OBJECTED for discussion.                                                                                        
ANNETTE     KREITZER,     COMMISSIONER,    DEPARTMENT     OF                                                                    
ADMINISTRATION,  explained  that  Representative  Johansen's                                                                    
staff had asked the executive  director of the Alaska Public                                                                    
Offices  Commission   (APOC)  to  look  at   the  bill.  The                                                                    
amendments were the result of  finding things that needed to                                                                    
be  addressed.  She  stated  that  the  amendments  had  her                                                                    
Commissioner Kreitzer detailed that  Amendment 2 would amend                                                                    
the title to insert additional  words. She reported that the                                                                    
amendment  was  needed  because  the  word  "group"  is  not                                                                    
defined in a  way to include any combination of  two or more                                                                    
individuals  acting   jointly  to   organize  to   file  the                                                                    
application (page 1, lines 6 to 9).                                                                                             
Representative  Johansen   stated  that  he   supported  the                                                                    
Representative Fairclough referred  to previous conversation                                                                    
about the  amendment and  asked for  clarification regarding                                                                    
the 50 percent figure on page 2.                                                                                                
HOLLY  HILL,  EXECUTIVE   DIRECTOR,  ALASKA  PUBLIC  OFFICES                                                                    
COMMISSION,     DEPARTMENT     OF    ADMINISTRATION     (via                                                                    
teleconference),   explained   that  the   amendment   would                                                                    
incorporate the  same definition already included  for group                                                                    
in AS 15.13.400(8).                                                                                                             
Representative  Fairclough  referred   to  previous  remarks                                                                    
about the  number 33 percent.  Ms. Christensen  replied that                                                                    
the  statute referenced  with 33  percent was  AS 15.13.050,                                                                    
dealing with  groups that had  to register with  APOC before                                                                    
spending  money.  A   group  has  to  have   a  name  before                                                                    
registering. A  candidate intending to spend  more than 33.3                                                                    
percent must  have the candidate's  name in the  title; this                                                                    
was  behind the  original idea  for Amendment  7. She  added                                                                    
that one  has to do with  the definition of a  group and the                                                                    
other has to do with the name of the group.                                                                                     
Representative  Fairclough  asked  whether the  sponsor  was                                                                    
comfortable with the  50 percent rather than  the 33 percent                                                                    
threshold. Representative Johansen replied  that both are in                                                                    
existing statute and there was no attempt to change either.                                                                     
2:11:08 PM                                                                                                                    
Co-Chair  Stoltze wanted  to  clarify  cautious language  to                                                                    
make  sure the  intent was  clear. He  wanted the  amendment                                                                    
done   the   way   the  administration   wanted   it   done.                                                                    
Commissioner Kreitzer answered in the affirmative.                                                                              
Co-Chair  Hawker  WITHDREW  his OBJECTION.  There  being  no                                                                    
further objection, Amendment 2 was ADOPTED.                                                                                     
2:12:20 PM                                                                                                                    
Co-Chair  Stoltze   MOVED  to  ADOPT   previously  withdrawn                                                                    
Amendment 3 (26-LS0197\S.9, Bullard, 3/15/10):                                                                                  
     Page 1, line 1:                                                                                                            
      Delete "and to ballot initiatives"                                                                                      
        Insert ",  to ballot  initiatives and  referenda, to                                                                  
     issues  placed on  the ballot  to  determine whether  a                                                                  
     constitutional  convention  shall  be  called,  a  debt                                                                  
     shall  be contracted,  an  advisory  question shall  be                                                                  
     approved  or  rejected,  or  a  municipality  shall  be                                                                  
     incorporated,   and    to   constitutional   amendments                                                                  
     submitted to the public for a vote"                                                                                      
     Page 2, line 9, following "15.13.060":                                                                                     
      Insert "15.13.074(b),"                                                                                                
     Page 7, line 13, following "APPLICABILITY":                                                                                
      Insert "(a)"                                                                                                              
     Page 7, following line 15:                                                                                                 
      Insert a new subsection to read:                                                                                          
        "(b) This Act applies only to  a ballot proposition,                                                                    
     as  that  term  is  defined  in  AS  15.13.065(c),  but                                                                    
     excluding  an  initiative  covered under  (a)  of  this                                                                    
     section,  placed   on  the   ballot  after   the  first                                                                    
     statewide election  on or after  the effective  date of                                                                    
     this Act."                                                                                                                 
Co-Chair Hawker OBJECTED for discussion.                                                                                        
Commissioner Kreitzer  explained that Amendment  3 addressed                                                                    
previous   concerns   about  anonymous   contributions   (AS                                                                    
15.13.074(b)). She  directed attention  to page 2,  lines 13                                                                    
to 17 of the bill,  which would be applied to constitutional                                                                    
conventions;  an anonymous  contribution could  not be  made                                                                    
for any  of the  reasons listed.  She noted  the need  for a                                                                    
reference in the title.                                                                                                         
Representative  Gara requested  an explanation  of the  last                                                                    
three lines  (16 through  18) of  the amendment,  saying the                                                                    
act applies  only to subsection (c)  ballot propositions but                                                                    
not subsection (a) ballot propositions.                                                                                         
ALPHEUS  BULLARD, ATTORNEY,  LEGISLATIVE LEGAL  AND RESEARCH                                                                    
SERVICES, LEGISLATIVE  AFFAIRS AGENCY  (via teleconference),                                                                    
summarized   that   the   question   was   about   why   the                                                                    
applicability section  at the end  of the bill  was modified                                                                    
by the amendment.                                                                                                               
Representative Gara queried the  substance and effect of the                                                                    
bottom  three lines.  Mr. Bullard  replied  that before  the                                                                    
addition  of   Amendment  3,  the   bill  spoke   to  ballot                                                                    
initiatives  and  ballot initiative  proposal  applications.                                                                    
The existing  applicability section  on page  7 of  the bill                                                                    
speaks   to  ballot   initiatives   and  ballot   initiative                                                                    
applications.   The  amendment   would   work  to   prohibit                                                                    
anonymous  contributions to  ballot  propositions, which  is                                                                    
broader than  just initiatives; how  the bill would  work in                                                                    
reference to ballot propositions needed to be provided.                                                                         
2:16:05 PM                                                                                                                    
Representative Gara  summarized that  the first  sentence on                                                                    
line  16  says  that  the  bill  would  apply  to  a  ballot                                                                    
proposition as  the term is  defined in AS  15.13.065(c) but                                                                    
does  not apply  to an  initiative covered  under subsection                                                                    
(a).   He   expressed   confusion.   Commissioner   Kreitzer                                                                    
explained  that  (a)  is   the  applicability  section  that                                                                    
applied  to the  bill prior  to the  amendment; it  is still                                                                    
necessary. Subsection (b) deals  with the situation again on                                                                    
page  2,   addressing  other   issues  included   under  the                                                                    
definition  of ballot  proposition.  She  stated that  there                                                                    
must  be an  additional and  separate applicability  section                                                                    
dealing with that.                                                                                                              
Representative Gara  referred to the  last page of  the bill                                                                    
under  the applicability  section. He  thought that  without                                                                    
the  amendment,  lines 13  to  15  say  the act  applies  to                                                                    
initiatives.  He  thought  the   amendment  would  turn  the                                                                    
applicability  section  in  the bill  into  subsection  (a),                                                                    
saying  the  act  only   applies  to  initiatives.  Further,                                                                    
subsection  (b)  says  the act  excludes  initiative  coming                                                                    
under (a). He expressed confusion.                                                                                              
Representative Johansen  reported that  he was  less excited                                                                    
about Amendment 3 because it  is difficult to understand. In                                                                    
addition,  he was  uncomfortable  that  the amendment  would                                                                    
open up the title.                                                                                                              
Commissioner  Kreitzer   believed  subsection  (b)   of  the                                                                    
amendment  was  written  as  it  was  because  there  is  no                                                                    
guarantee that  a committee would  adopt the  amendment. She                                                                    
thought there could be better  language. She stated that the                                                                    
intent was  to say  that going forward,  this is  what would                                                                    
happen to the changes in the bill.                                                                                              
Co-Chair Hawker WITHDREW his OBJECTION.                                                                                         
Co-Chair Stoltze WITHDREW Amendment 3.                                                                                          
Commissioner  Kreitzer explained  the  new  fiscal note  for                                                                    
$60,200  by APOC  in the  Department of  Administration. She                                                                    
was convinced that the amount  was needed. She reported that                                                                    
APOC has had  an enormous amount of work in  the past two or                                                                    
three years. She  commended the new director,  Holly Hill in                                                                    
reclassifying positions  and increasing  efficiency. Efforts                                                                    
had been made to automate the business processes of APOC.                                                                       
2:21:46 PM                                                                                                                    
Co-Chair Stoltze  commented that  the area of  lawmaking was                                                                    
unregulated and wide open; he  believed there would be costs                                                                    
for  public  awareness  and  disclosure.  He  supported  the                                                                    
number in the fiscal note.                                                                                                      
Representative Gara  pointed to Section  15 of the  bill and                                                                    
questioned  whether the  bill would  apply  in the  upcoming                                                                    
election.  He  believed  the amendment  that  was  withdrawn                                                                    
intended to make the bill apply to the election.                                                                                
Co-Chair Stoltze  believed there was consistency  with other                                                                    
similar legislation.                                                                                                            
Representative  Johansen  added  that  he did  not  want  to                                                                    
disrupt  current practices  that conform  to current  rules,                                                                    
though he did not support the current rules.                                                                                    
2:25:23 PM                                                                                                                    
Co-Chair Hawker MOVED to report  HB 36 out of Committee with                                                                    
individual  recommendations  and   the  accompanying  fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
CSSS HB  36(FIN) was  REPORTED out of  Committee with  a "do                                                                    
pass" recommendation  and with  attached new fiscal  note by                                                                    
the Department of  Administration and two new  zero notes by                                                                    
the Office of the Governor.                                                                                                     

Document Name Date/Time Subjects
HB245 Board of Op Examiners Annual Report[1].pdf HFIN 3/16/2010 1:30:00 PM
HB 245
HB245 Highest Level Req for Licensure Survey of States Jan2010[1].pdf HFIN 3/16/2010 1:30:00 PM
HB 245
HB245 Letter D Halverson 2-22-10[1].pdf HFIN 3/16/2010 1:30:00 PM
HB 245
HB245 Sectional Analysis ver A[1].pdf HFIN 3/16/2010 1:30:00 PM
HB 245
HB245 Sponsor Statement ver A[1].pdf HFIN 3/16/2010 1:30:00 PM
HB 245
HB 36 Municipal League Letter.pdf HFIN 3/16/2010 1:30:00 PM
HB 36
HB 36 Amendment #6 Doogan.pdf HFIN 3/16/2010 1:30:00 PM
HB 36
HB 36 Amendment #7 Stoltze.pdf HFIN 3/16/2010 1:30:00 PM