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HB 317: "An Act relating to election campaigns, election campaign financing, the oversight and regulation of election campaigns by the Alaska Public Offices Commission, the activities of lobbyists that relate to election campaigns, and the definitions of offenses of campaign misconduct; and providing for an effective date."

00HOUSE BILL NO. 317 01 "An Act relating to election campaigns, election campaign financing, the oversight 02 and regulation of election campaigns by the Alaska Public Offices Commission, the 03 activities of lobbyists that relate to election campaigns, and the definitions of 04 offenses of campaign misconduct; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. FINDINGS AND PURPOSE. (a) The legislature finds that, under existing 07 laws, 08 (1) campaigns for elective public office last too long, are often uninformative, 09 and are too expensive; 10 (2) highly qualified citizens are dissuaded from running for public office due 11 to the high cost of election campaigns; 12 (3) organized special interests are responsible for raising a significant portion 13 of all election campaign funds and may thereby gain an undue influence over election 14 campaigns and elected officials, particularly incumbents;

01 (4) incumbents enjoy a distinct advantage in raising money for election 02 campaigns, and many elected officials forward surpluses from one campaign to the next, to 03 the disadvantage of challengers; 04 (5) because, under existing laws, candidates are completely free to convert 05 campaign funds to personal income, there is great potential for bribery and political 06 corruption; and 07 (6) penalties for violations of the existing campaign finance laws are too 08 lenient to deter misconduct. 09 (b) It is the purpose of this Act to substantially revise Alaska's election campaign 10 finance laws in order to restore the public's trust in the electoral process and to foster good 11 government. 12 * Sec. 2. AS 15.13.010(a) is amended to read: 13 (a) This chapter applies 14 (1) in every election for governor, lieutenant governor, a member of the 15 state legislature, a delegate to a constitutional convention, or judge seeking electoral 16 confirmation; 17 (2) [. IT ALSO APPLIES] to every candidate for election to a 18 municipal office in a municipality with a population of more than 1,000 inhabitants 19 according to the latest United States census figures or estimates of population certified 20 as correct for administrative purposes by the Department of Community and Regional 21 Affairs unless the municipality has exempted itself from the provisions of this 22 chapter; a [. A] municipality may exempt its elected municipal officers from the 23 requirements of this chapter if a majority of the voters voting on the question at a 24 regular election, as defined by AS 29.71.800(20), or a special municipality-wide 25 election called for that purpose, votes [VOTE] to exempt its elected municipal officers 26 from the requirements of this chapter; the [. THE] question of exemption from the 27 requirements of this chapter may be submitted by the governing body by ordinance or 28 by initiative election. [THIS CHAPTER DOES NOT PROHIBIT A MUNICIPALITY 29 FROM REGULATING BY ORDINANCE CAMPAIGN CONTRIBUTIONS AND 30 EXPENDITURES.] 31 * Sec. 3. AS 15.13.010 is amended by adding a new subsection to read:

01 (c) This chapter does not prohibit a municipality from regulating by ordinance 02 election campaign contributions and expenditures in municipal elections, or from 03 regulating election campaign contributions and expenditures in municipal elections 04 when the regulation imposes a requirement or standard that is not less stringent than 05 a requirement or standard provided in this chapter. 06 * Sec. 4. AS 15.13.040(a) is amended to read: 07 (a) Except as provided in (g) of this section, each [EACH] candidate shall 08 make a full report, upon a form prescribed by the commission, listing the date and 09 amount of all expenditures made by the candidate, the total amount of all 10 contributions, including all funds contributed by the candidate, and for all contributions 11 in excess of $100 in the aggregate a year, the name, address, principal occupation, and 12 employer of the contributor and the date and amount contributed by each contributor. 13 The report shall be filed in accordance with AS 15.13.110 and shall be certified correct 14 by the candidate or campaign treasurer. 15 * Sec. 5. AS 15.13.040 is amended by adding a new subsection to read: 16 (g) The provisions of (a) of this section do not apply if a candidate 17 (1) indicates, on a form prescribed by the commission, an intent not to 18 raise and not to expend more than $1,000 in seeking election; 19 (2) accepts contributions totaling not more than $1,000 in seeking 20 election; and 21 (3) makes expenditures totaling not more than $1,000 in seeking 22 election. 23 * Sec. 6. AS 15.13.050 is amended to read: 24 Sec. 15.13.050. REGISTRATION BEFORE CONTRIBUTION OR 25 EXPENDITURE [GROUPS]. Before [EACH GROUP, BEFORE] making an 26 expenditure in support [ON BEHALF] of [,] or in opposition to [,] a candidate or 27 before making an expenditure in support of or in opposition to a ballot 28 proposition or question, each person, publicly-funded entity, or group [A 29 CONTRIBUTION TO A CANDIDATE,] shall register, on forms provided by the 30 commission, with the commission. [IF THE GROUP INTENDS TO SUPPORT OR 31 OPPOSE ONLY ONE CANDIDATE, OR TO CONTRIBUTE TO OR EXPEND ON

01 BEHALF OF, OR IN OPPOSITION TO, ONE CANDIDATE 50 PERCENT OR 02 MORE OF ITS FUNDS, THE NAME OF THE CANDIDATE SHALL BE A PART 03 OF THE NAME OF THE GROUP. PROMPTLY UPON RECEIVING THE 04 REGISTRATION, THE COMMISSION SHALL NOTIFY THE CANDIDATE OF 05 THE GROUP'S ORGANIZATION AND INTENT.] 06 * Sec. 7. AS 15.13 is amended by adding new sections to read: 07 Sec. 15.13.065. WHO MAY MAKE CONTRIBUTIONS. (a) Only an 08 individual may make a contribution to a group. 09 (b) An individual or a group may make contributions to a candidate. 10 Sec. 15.13.067. WHO MAY MAKE EXPENDITURES. Only the following 11 may make an expenditure in an election for candidates for elective office: 12 (1) the candidate; 13 (2) individuals who are registered under AS 15.13.050; and 14 (3) a group. 15 * Sec. 8. AS 15.13.070 is repealed and reenacted to read: 16 Sec. 15.13.070. LIMITATIONS ON AMOUNT OF POLITICAL 17 CONTRIBUTIONS. (a) An individual or group may make contributions, subject only 18 to the limitations of this chapter and AS 24.45, including the limitations on the 19 maximum amounts set out in this section. 20 (b) An individual may contribute 21 (1) not more than $500 per year to a candidate, or to a person who 22 conducts a write-in campaign as a candidate, for 23 (A) governor or lieutenant governor; 24 (B) the state legislature; 25 (C) delegate to a constitutional convention; 26 (D) judge seeking electoral confirmation; or 27 (E) municipal office; 28 (2) not more than $250 per year to a group that is not a political party; 29 (3) not more than $5,000 per year to a political party. 30 (c) A group that is not a political party may contribute not more than $500 per 31 year to a candidate, or to a person who conducts a write-in campaign as a candidate,

01 for 02 (1) governor or lieutenant governor; 03 (2) the state legislature; 04 (3) delegate to a constitutional convention; 05 (4) judge seeking electoral confirmation; or 06 (5) municipal office. 07 (d) A political party may contribute to a candidate, or to a person who 08 conducts a write-in campaign, for the following offices an amount not to exceed 09 (1) $50,000 per year, if the election is for governor or lieutenant 10 governor; and 11 (2) $5,000 per year, if the election is for 12 (A) the state legislature; 13 (B) delegate to a constitutional convention; 14 (C) judge seeking electoral confirmation; or 15 (D) municipal office. 16 * Sec. 9. AS 15.13 is amended by adding new sections to read: 17 Sec. 15.13.072. RESTRICTIONS ON SOLICITATION AND ACCEPTANCE 18 OF CONTRIBUTIONS. (a) A candidate may not solicit or accept a contribution from 19 (1) an individual or group not authorized by law to make a 20 contribution; 21 (2) an individual who is not a resident of the state at the time the 22 contribution is made; or 23 (3) a group organized under the laws of another state or qualified to do 24 business only under the laws of another state; however, the limitation of the paragraph 25 does not apply to a group all of whose members are residents of this state at the time 26 the contribution is made. 27 (b) A candidate or a group may not solicit or accept a cash contribution that 28 exceeds $25. 29 (c) A person, or a person acting directly or indirectly on behalf of that person, 30 may not solicit or accept a contribution 31 (1) before the date that is the later of the date that

01 (A) the person 02 (i) becomes a candidate; or 03 (ii) files with the commission the document necessary 04 to permit the person to incur certain election-related expenses as 05 authorized by AS 15.13.100; or 06 (B) is 11 months before the date of the general or regular 07 municipal election or that is before the date of the proclamation of the special 08 election at which the person seeks election to public office; or 09 (2) later than the 30th day 10 (A) after the date of a primary election if the person 11 (i) has been nominated at the primary election or is 12 running as a write-in candidate; and 13 (ii) is not opposed at the general election; or 14 (B) after the date of the general election, or after the date of a 15 municipal or municipal runoff election, if the person was opposed at the 16 general, municipal, or municipal runoff election. 17 (d) A candidate or a person who has filed with the commission the document 18 necessary to permit the person to incur election-related expenses under AS 15.13.100 19 may not solicit or accept 20 (1) a contribution if the legislature is convened in a regular or special 21 legislative session, and the candidate or person is 22 (A) the governor or lieutenant governor; 23 (B) a member of the legislature; or 24 (C) employed by 25 (i) the governor or lieutenant governor as a member of 26 the staff of their respective offices; or 27 (ii) a legislator as a member of the legislator's staff or 28 as a member of the staff of a legislative committee; or 29 (2) an honorarium if, at the time the honorarium is offered or at the 30 time of performance of the service for which the honorarium is tendered, the person 31 is a state officer described in (1)(A) or (B) of this subsection.

01 Sec. 15.13.074. PROHIBITED CONTRIBUTIONS. (a) A person may not 02 make a contribution or pay an honorarium if the making of the contribution or 03 payment of the honorarium would violate this chapter. 04 (b) A person may not make a contribution anonymously, using a fictitious 05 name, or using the name of another. 06 (c) A person may not make a contribution to a candidate 07 (1) before the date that is the later of the date that 08 (A) the person 09 (i) becomes a candidate; or 10 (ii) files with the commission the document necessary 11 to permit the person to incur certain election-related expenses as 12 authorized by AS 15.13.100; 13 (B) is 11 months before the date of the general or regular 14 municipal election or that is before the date of the proclamation of the special 15 election at which the person seeks election to public office; or 16 (2) later than the 30th day 17 (A) after the date of a primary election if the person 18 (i) has been nominated at the primary election or is 19 running as a write-in candidate; and 20 (ii) is not opposed at the general election; or 21 (B) after the date of the general election, or after the date of a 22 municipal or municipal runoff election, if the person was opposed at the 23 general, municipal, or municipal runoff election. 24 (d) A person may not make a contribution or offer or pay an honorarium to 25 a candidate or a person who is prohibited by AS 15.13.072(d) from accepting it. 26 (e) A person may not make a cash contribution that exceeds $25. 27 Sec. 15.13.076. AUTHORIZED RECIPIENTS OF CONTRIBUTIONS. A 28 contribution to a 29 (1) candidate may be received only by 30 (A) the candidate; or 31 (B) the candidate's campaign treasurer or a deputy campaign

01 treasurer; 02 (2) group may be received only by the group's campaign treasurer or 03 a deputy treasurer. 04 Sec. 15.13.078. CONTRIBUTIONS AND LOANS FROM THE CANDIDATE 05 AND THE CANDIDATE'S FAMILY MEMBERS. (a) The provisions of this chapter 06 do not prohibit a candidate from giving any amount of the candidate's own money or 07 other thing of value to the campaign of the candidate. Donations made by the 08 candidate to the candidate's own campaign shall be reported as contributions in 09 accordance with AS 15.13.040 and 15.13.110. 10 (b) The provisions of this chapter do not prohibit a candidate from lending any 11 amount to the campaign of the candidate. Loans made by the candidate shall be 12 reported as contributions in accordance with AS 15.13.040 and 15.13.110. However, 13 a candidate may not 14 (1) recover, under this section and AS 15.13.116(a)(5), the amount of 15 a loan made by the candidate to the candidate's own campaign that exceeds 16 (A) $25,000, if the candidate ran for governor or lieutenant 17 governor; 18 (B) $10,000, if the candidate ran for 19 (i) the legislature; or 20 (ii) delegate to a constitutional convention; 21 (C) $10,000, if the candidate was a judge seeking electoral 22 confirmation; 23 (D) $5,000, if the candidate ran in a municipal election; or 24 (2) repay a loan that the candidate has made to the candidate's own 25 campaign unless, within five days of making the loan, the candidate notifies the 26 commission, on a form provided by the commission, of the candidate's intention to 27 repay the loan under AS 15.13.116(a)(5). 28 (c) Each of the following may make loans to a candidate: 29 (1) the candidate's spouse; 30 (2) the candidate's parents; 31 (3) the candidate's children, including adoptive and stepchildren; and

01 (4) brothers and sisters of the candidate. 02 (d) When a person described in (c) of this section loans money to the election 03 campaign of a candidate, the money loaned to the candidate is not reportable as a 04 contribution if the 05 (1) total of all loans from a person described in (c) of this section does 06 not exceed $1,000 per year; 07 (2) money was not obtained from persons other than the makers of the 08 loan under an agreement that the money be loaned to the candidate's campaign; and 09 (3) existence of the loan is put in writing when the money is received 10 by the candidate's campaign, and a copy of the document is filed with the commission. 11 (e) A candidate may repay a loan received from a person described in (c) of 12 this section if, within five days of receipt of the loan, the candidate notifies the 13 commission, on a form provided by the commission, of the candidate's intention to 14 repay the loan under AS 15.13.116(a)(5). However, a candidate may not repay to a 15 person described in (c) of this section 16 (1) that portion of a loan or loans made by the person that exceeds 17 $1,000 per year; the amount of the excess shall be reported as a contribution in 18 accordance with AS 15.13.040 and 15.13.110; or 19 (2) a loan or loans that have not been reported under this subsection 20 or that do not qualify for treatment under (d) of this section. 21 * Sec. 10. AS 15.13.080 is amended to read: 22 Sec. 15.13.080. STATEMENT BY CONTRIBUTOR. (a) Each of the 23 following shall file statements as required by (b) - (d) of this section: 24 (1) an individual who contributes to a candidate 25 (A) more than [A PERSON OR GROUP CONTRIBUTING TO 26 A CANDIDATE OVER] $250; or 27 (B) [CONTRIBUTING] goods or services [TO A 28 CANDIDATE] with a value of more than $250; 29 (2) an individual who, during the period between the 90th day 30 before an election and the date of the election, contributes to more than one group 31 and whose contributions to all groups, in money or in the value of goods and

01 services, or both, exceed $1,000 per year [TO INFLUENCE THE ELECTION OF 02 A CANDIDATE SHALL FURNISH THE COMMISSION A SIGNED STATEMENT, 03 ON A FORM MADE AVAILABLE BY THE COMMISSION]. 04 (b) A person required to file a contributor's statement under (a) of this 05 section shall file on a form made available by the commission. The statement must 06 (1) identify the contributor and the candidate and all groups 07 receiving contributions; 08 (2) [SHALL] itemize the contributions and goods; and 09 (3) state that the contributor is not [A PERSON OR GROUP] 10 prohibited by law from contributing and that the contribution consists of funds or 11 property belonging to the contributor and has not been given or furnished by another 12 person or group. 13 (c) The contributor's statement shall be filed with the commission by the 14 contributor no later than 10 days after the contribution is made. [A COPY OF THE 15 STATEMENT SHALL BE FURNISHED THE CANDIDATE, CAMPAIGN 16 TREASURER, OR DEPUTY CAMPAIGN TREASURER AT THE TIME THE 17 CONTRIBUTION IS MADE.] 18 * Sec. 11. AS 15.13 is amended by adding new sections to read: 19 Sec. 15.13.082. LIMITATIONS ON EXPENDITURES. (a) A candidate or 20 group may not make an expenditure in cash that exceeds $100 unless the candidate, 21 or the campaign treasurer or deputy campaign treasurer, obtains from the person to 22 whom the expenditure is made a written receipt and files a copy of the receipt with 23 the commission. 24 (b) A candidate or group may not make an expenditure unless the source of 25 the expenditure has been disclosed when required by this chapter. 26 (c) If a candidate or group receives a contribution in the form of cash, check, 27 money order, or other negotiable instrument and is subject to being reported to the 28 commission under this chapter, the candidate or group may neither expend the 29 contribution nor, in the case of a negotiable instrument, convert it to cash unless the 30 candidate, campaign treasurer, or deputy campaign treasurer first records the following 31 information for disclosure to the commission:

01 (1) the name, address, principal occupation, and employer of the 02 contributor; and 03 (2) the date and amount of the contribution. 04 Sec. 15.13.084. PROHIBITED EXPENDITURES. A person may not make an 05 expenditure anonymously, using a fictitious name, or using the name of another. 06 Sec. 15.13.086. AUTHORIZED MAKERS OF EXPENDITURES. An 07 expenditure by or in behalf of 08 (1) a candidate may be made only by 09 (A) the candidate; or 10 (B) the candidate's campaign treasurer or a deputy campaign 11 treasurer; 12 (2) a group may be made only by the group's campaign treasurer. 13 * Sec. 12. AS 15.13.110(b) is amended to read: 14 (b) Each contribution or expenditure that exceeds $250 and that is made within 15 nine days of the election shall be reported to the commission by date, amount, and 16 contributor or recipient within 24 hours of receipt or expenditure by the candidate, 17 group, [OR] campaign treasurer, or deputy campaign treasurer. 18 * Sec. 13. AS 15.13.110(c) is amended to read: 19 (c) [THE REPORTS OF CANDIDATES SHALL BE FILED WITH THE 20 COMMISSION'S CENTRAL OFFICE.] All reports required by this chapter shall be 21 filed with the commission's central office and shall be kept open to public 22 inspection. Within 30 days after each election, the commission shall prepare a 23 summary of each report which shall be made available to the public at cost upon 24 request. Each summary shall use uniform categories of reporting. 25 * Sec. 14. AS 15.13 is amended by adding new sections to read: 26 Sec. 15.13.112. USES OF CAMPAIGN CONTRIBUTIONS HELD BY 27 CANDIDATE OR GROUP. (a) Campaign contributions held by a candidate or group 28 may be used 29 (1) as authorized by this chapter; or 30 (2) to pay the expenses of the candidate or group, and the campaign 31 expenses incurred by the candidate or group, that reasonably relate to election

01 campaign activities. 02 (b) Campaign contributions held by a candidate or group may not be 03 (1) used to give a personal benefit to the candidate or to another 04 person; 05 (2) converted to personal income of the candidate; 06 (3) loaned to a person; 07 (4) knowingly used to pay more than the fair market value for goods 08 or services purchased for the campaign; 09 (5) used to pay a criminal fine; 10 (6) used to pay civil penalties; however, campaign contributions held 11 by a candidate or group may be used to pay a civil penalty assessed under this chapter 12 if authorized by the commission after it first determines that 13 (A) the candidate, campaign treasurer, and deputy campaign 14 treasurer did not cause or participate in the violation for which the civil penalty 15 is imposed and exercised a reasonable level of oversight over the campaign; 16 and 17 (B) the candidate, campaign treasurer, and deputy campaign 18 treasurers cooperated in the revelation of the violation and in its immediate 19 correction; or 20 (7) used to make contributions to another candidate or to a group. 21 Sec. 15.13.114. DISPOSITION OF PROHIBITED CONTRIBUTIONS. (a) 22 A candidate or group that receives and accepts a contribution given in violation of 23 AS 15.13.074 shall immediately, upon discovery that the contribution is prohibited, 24 return it to the contributor. If the contribution cannot be returned in the same form, 25 the equivalent value of the contribution shall be returned. 26 (b) An anonymous contribution is forfeited to the state unless the contributor 27 is identified within five days of its receipt. Money that forfeits to the state under this 28 subsection shall be delivered immediately to the Department of Revenue for deposit 29 in the general fund. 30 Sec. 15.13.116. DISBURSEMENT OF CAMPAIGN ASSETS AFTER 31 ELECTION. (a) A candidate who, after the date of the general, special, municipal,

01 or municipal runoff election or after the date the candidate withdraws as a candidate, 02 whichever comes first, holds unused campaign contribution shall distribute the amount 03 held within 60 days. The distribution may only be made to 04 (1) pay bills incurred for expenditures reasonably related to the 05 campaign and the winding up of the affairs of the campaign, and to pay expenditures 06 associated with post-election fund raising that may be needed to raise funds to pay off 07 campaign debts; 08 (2) pay for a victory or a thank you party costing less than $500, or to 09 give a thank you gift of a value of less than $50 to a campaign employee or volunteer; 10 (3) make donations, without condition, to 11 (A) a political party; 12 (B) the state's general fund; 13 (C) a municipality of the state; or 14 (D) the federal government; 15 (4) make donations, without condition, to organizations qualified as 16 charitable organizations under 26 U.S.C. 501(c)(3), provided the organization is not 17 controlled by the candidate or a member of the candidate's immediate family; 18 (5) repay loans 19 (A) from the candidate to the candidate's own campaign under 20 AS 15.13.078(b); or 21 (B) from immediate family members made under 22 AS 15.13.078(c); or 23 (6) establish a fund for, and, from that fund, to pay attorney fees or 24 costs incurred in, the prosecution or defense of an administrative or civil judicial action 25 that directly concerns a challenge to the victory or defeat of the candidate in the 26 election. 27 (b) After a general, special, municipal, or municipal runoff election, a 28 candidate may retain the ownership of personal property, except money, that was 29 acquired by and for use in the campaign. The total value of the property retained may 30 not exceed $2,500. All other property shall be disposed of, or sold and the sale 31 proceeds disposed of, in accordance with (a) or (c) of this section.

01 (c) Property remaining after disbursements are made under (a) - (b) of this 02 section is forfeited to the state. Within 30 days, the candidate shall deliver the 03 property to the Department of Revenue. The Department of Revenue shall deposit any 04 money received into the general fund and dispose of any other property in accordance 05 with law. 06 * Sec. 15. AS 15.13.120(d) is repealed and reenacted to read: 07 (d) A person who believes a violation of this chapter or a regulation adopted 08 under this chapter has occurred or is occurring may file an action in superior court 09 seeking injunctive relief and civil penalties under AS 15.13.125, or may file an 10 administrative complaint with the commission under (e) of this section. An action may 11 not be commenced under this subsection after two years have elapsed from the date 12 of the alleged violation. The plaintiff in a superior court action shall serve the attorney 13 general and the commission with a copy of the summons and complaint. The 14 commission, represented by the attorney general, may intervene in the action. 15 * Sec. 16. AS 15.13.120(e) is repealed and reenacted to read: 16 (e) A member of the commission, the commission's executive director, or a 17 person who believes a violation of a provision of this chapter or a regulation adopted 18 under this chapter has occurred, may file an administrative complaint with the 19 commission. The commission shall expeditiously make an investigation of the 20 complaint. If a member of the commission has filed the complaint, then the member 21 may not participate as a commissioner in any proceeding of the commission with 22 respect to the complaint. After affording a person notice and an opportunity for 23 hearing, if the commission finds that the person has engaged in or is about to engage 24 in an act or practice that constitutes or will constitute a violation of a provision of this 25 chapter or a regulation adopted under this chapter, the commission shall enter an order 26 requiring the violation to cease and to be remedied, and shall assess civil penalties 27 under AS 15.13.125. An action may not be commenced by the commission under this 28 subsection after four years have elapsed from the date of the alleged violation. The 29 commission's exercise of jurisdiction under this subsection is not exclusive. A person 30 who files a complaint under this subsection may withdraw it at any time and, unless 31 more than two years have elapsed since the date of the alleged violation, proceed

01 under (d) of this section. 02 * Sec. 17. AS 15.13.125 is repealed and reenacted to read: 03 Sec. 15.13.125. CIVIL PENALTIES. (a) A person who violates a provision 04 of this chapter or a regulation adopted under this chapter 05 (1) is subject to a minimum civil penalty of not less than 06 (A) $1 nor more than $10 per day for the 1st through the 10th 07 day of a violation; 08 (B) $10 nor more than $50 per day for the 11th through the 09 20th day of a violation; and 10 (C) $50 per day for each day a violation continues more than 11 20 days; 12 (2) that continues more than 20 days is subject to a maximum civil 13 penalty for each 14 (A) negligent or reckless violation of not more than $250 per 15 violation per day; and 16 (B) knowing or intentional violation of not more than $500 per 17 violation per day. 18 (b) In establishing the appropriate level of penalties under (a) of this section, 19 the commission or superior court may consider 20 (1) as aggravating factors, whether 21 (A) the violator recklessly, knowingly, or intentionally caused 22 or participated in the violation; 23 (B) the violation was a repeat violation or part of a series or 24 pattern of violations in the same or past campaigns; and 25 (C) the violation may have caused any damage to the election 26 campaign of another; and 27 (2) as mitigating factors, whether 28 (A) the violator corrected the violation within five days after it 29 occurred; and 30 (B) the violator's remedial conduct, if any, taken to correct the 31 violation before the election and taken to prevent future violations.

01 (c) If the commission or superior court finds that the violation was not a repeat 02 violation or part of a series or pattern of violations, was inadvertent, was quickly 03 corrected, and had no adverse effect on the campaign of another, the commission or 04 the court may 05 (1) suspend imposition of the penalties; and 06 (2) order the penalties set aside if the person does not engage in a 07 similar violation for a period of one year. 08 (d) When an administrative complaint has been filed under AS 15.13.120(e), 09 the commission shall give the person against whom the complaint has been filed due 10 notice and an opportunity to be heard. If, at the conclusion of the hearing, the 11 commission determines that the person against whom the complaint was filed engaged 12 in the alleged violation, the commission shall assess 13 (1) civil penalties under (a) of this section; 14 (2) the commission's costs of investigation and adjudication; and 15 (3) reasonable attorney fees. 16 (e) The commission's determination under this subsection may be appealed to 17 the superior court under AS 44.62 (Administrative Procedure Act). 18 (f) When an action has been filed in the superior court under AS 15.13.120(d), 19 upon proof of the violation, 20 (1) if the court finds that, in committing the violation, the person 21 against whom the action was brought acted knowingly and did not take action to 22 correct the violation within five days after it occurred, the court shall enter a judgment 23 in the amount of three times the amount of the civil penalty authorized to be collected 24 by (a) of this section; 25 (2) unless the court finds that, in committing the violation, the person 26 against whom the action was brought, acted knowingly and did not take action to 27 correct the violation within five days after it occurred, the court shall enter a judgment 28 in the amount of the civil penalty authorized by (a) of this section; 29 (3) shall award reasonable attorney fees and costs to the prevailing 30 party. 31 (g) A person who filed a civil action under AS 15.13.120(d), upon proof of

01 the violation by the person against whom the action was filed, may recover reasonable 02 attorney fees and costs. 03 (h) In this section, when a provision prescribes a culpable mental state, the 04 culpable mental state that must be proven are the culpable mental states defined in 05 AS 11.81.900(a). 06 * Sec. 18. AS 15.13 is amended by adding new sections to read: 07 Sec. 15.13.135. INDEPENDENT EXPENDITURES FOR OR AGAINST 08 CANDIDATES. (a) Only an individual or group may make an independent 09 expenditure supporting or opposing a candidate for election to public office. An 10 independent expenditure supporting or opposing a candidate for election to public 11 office shall be reported in accordance with AS 15.13.040 and 15.13.100 - 15.13.110 12 and other requirements of this chapter. 13 (b) An individual or group who makes independent expenditures for a mass 14 mailing, for distribution of campaign literature of any sort, for a television, radio, 15 newspaper or magazine advertisement, or any other communication that supports or 16 opposes a candidate for election to public office 17 (1) shall comply with AS 15.13.090; and 18 (2) shall place the following statement in the mailing, literature, 19 advertisement, or other communication so that it is readily and easily discernible: 20 This NOTICE TO VOTERS is required by Alaska law. (I/we) 21 certify that this (mailing/literature/advertisement) is not authorized, paid 22 for, or approved by the candidate. 23 Sec. 15.13.137. RESTRICTIONS ON CONTRIBUTIONS TO INDIVIDUALS 24 MAKING INDEPENDENT EXPENDITURES FOR OR AGAINST CANDIDATES. 25 An individual who makes an independent expenditure supporting or opposing a 26 candidate may not accept a contribution to help pay for the expenditure from another 27 individual or group that exceeds the amount an individual may contribute to a group 28 under AS 15.13.070(b)(2). 29 Sec. 15.13.140. INDEPENDENT EXPENDITURES FOR OR AGAINST 30 BALLOT PROPOSITION OR QUESTION. (a) This chapter does not prohibit a 31 person, or a publicly funded entity, from making independent expenditures in support

01 of or in opposition to a ballot proposition or question. 02 (b) An independent expenditure for or against a ballot proposition or question 03 (1) shall be reported in accordance with AS 15.13.040 and 15.13.100 - 04 15.13.110 and other requirements of this chapter; and 05 (2) may not be made if the expenditure is prohibited by AS 15.13.084. 06 Sec. 15.13.145. MONEY OF THE STATE AND ITS POLITICAL 07 SUBDIVISIONS. (a) Except as provided in (b) and (c) of this section, each of the 08 following may not use money held by the entity to influence the outcome of the 09 election of a candidate to a state, municipal, municipal runoff, or federal office: 10 (1) the state, its agencies, and its corporations; 11 (2) the University of Alaska and its Board of Regents; 12 (3) municipalities, school districts, and regional educational attendance 13 areas, or another political subdivision of the state; and 14 (4) an officer or employee of an entity identified in (1) - (3) of this 15 subsection. 16 (b) Money held by an entity identified in (a)(1) - (3) of this section may be 17 used to influence the outcome of an election concerning a ballot proposition or 18 question, but only if the funds have been specifically appropriated for that purpose by 19 a state law or a municipal ordinance. 20 (c) Money held by an entity identified in (a)(1) - (3) of this section may be 21 used 22 (1) to disseminate information about the time and place of an election 23 and to hold an election; 24 (2) to provide the public with nonpartisan information about a ballot 25 proposition or question or about all the candidates seeking election to a particular 26 public office. 27 (d) When expenditure of money is authorized by (b) and (c) of this section and 28 is used to influence the outcome of an election, the expenditures shall be reported to 29 the commission in the same manner as an individual is required to report under 30 AS 15.13.040. 31 Sec. 15.13.150. ELECTION EDUCATIONAL ACTIVITIES NOT

01 PROHIBITED. This chapter does not prohibit a person from engaging in educational 02 election related communications and activities, including 03 (1) the publication of the date and location of an election; 04 (2) the education of students about voting and elections; 05 (3) the sponsorship of open candidate debate forums; 06 (4) participation in get-out-the-vote or voter registration drives that do 07 not favor a particular candidate, political party, or political position; or 08 (5) the dissemination of the views of all candidates running for a 09 particular office. 10 Sec. 15.13.199. DEFINITIONS. In this chapter, 11 (1) "candidate" 12 (A) means a person who 13 (i) files for election under AS 15.25.030 - 15.25.130 or 14 under AS 15.25.140 - 15.25.200 for the state legislature, for governor, 15 or for lieutenant governor; 16 (ii) files for municipal office; 17 (iii) files for retention in judicial office; 18 (iv) files for constitutional convention delegate; or 19 (v) campaigns as a write-in candidate for an office 20 described in (i) - (iv) of this subparagraph; and 21 (B) when used in a provision of this chapter that limits or 22 prohibits the donation, solicitation, or acceptance of campaign contributions, or 23 limits or prohibits an expenditure, includes 24 (i) a candidate's campaign treasurer and a deputy 25 campaign treasurer; 26 (ii) a member of the candidate's immediate family; 27 (iii) a person acting as agent for the candidate; 28 (iv) the candidate's campaign committee; and 29 (v) a group that makes expenditures or receives 30 contributions with the authorization or consent, express or implied, or 31 under the control, direct or indirect, of the candidate;

01 (2) "commission" means the Alaska Public Offices Commission; 02 (3) "contribution" 03 (A) means purchase, payment, promise or obligation to pay, 04 loan or loan guarantee, deposit or gift of money, goods or services for which 05 charge is ordinarily made and that is made for the purpose of influencing the 06 nomination or election of a candidate, and in AS 15.13.010(b) for the purpose 07 of influencing a ballot proposition or question, including the payment by a 08 person other than a candidate or political party, or compensation for the 09 personal services of another person that are rendered to the candidate or 10 political party; 11 (B) does not include 12 (i) services provided without compensation by 13 individuals volunteering a portion or all of their time on behalf of a 14 candidate or ballot proposition or question, but it does include 15 professional services volunteered by individuals for which they 16 ordinarily would be paid a fee or wage; 17 (ii) services provided by an accountant or other person 18 to prepare reports and statements required by this chapter; or 19 (iii) ordinary hospitality in a home; 20 (4) "expenditure" 21 (A) means a purchase or a transfer of money or anything of 22 value, or promise or agreement to purchase or transfer money or anything of 23 value, incurred or made for the purpose of 24 (i) influencing the nomination or election of a candidate 25 or of any individual who files for nomination at a later date and 26 becomes a candidate; 27 (ii) use by a political party; 28 (iii) the payment by a person other than a candidate or 29 political party of compensation for the personal services of another 30 person that are rendered to a candidate or political party; or 31 (iv) influencing the outcome of a ballot proposition or

01 question; 02 (B) does not include a candidate's filing fee or the cost of 03 preparing reports and statements required by this chapter; 04 (5) "group" means 05 (A) every state and regional executive committee of a political 06 party; and 07 (B) any combination of two or more individuals acting jointly 08 who organize for the principal purpose to influence the outcome of one or more 09 elections and who take action the major purpose of which is to influence the 10 outcome of an election; a group that makes expenditures or receives 11 contributions with the authorization or consent, express or implied, or under the 12 control, direct or indirect, of a candidate shall be considered to be controlled 13 by that candidate; a group whose major purpose is to further the nomination, 14 election, or candidacy of only one person, or intends to expend more than 50 15 percent of its money on a single candidate, shall be considered to be controlled 16 by that candidate and its actions done with the candidate's knowledge and 17 consent unless, within 10 days from the date the candidate learns of the 18 existence of the group the candidate files with the commission, on a form 19 provided by the commission, an affidavit that the group is operating without 20 the candidate's control; a group organized for more than one year preceding an 21 election and endorsing candidates for more than one office or more than one 22 political party is presumed not to be controlled by a candidate; however, a 23 group that contributes more than 50 percent of its money to or on behalf of one 24 candidate shall be considered to support only one candidate for purposes of 25 AS 15.13.070, whether or not control of the group has been disclaimed by the 26 candidate; 27 (6) "honorarium" 28 (A) means a payment of money or anything of value by any 29 person to a public official or to any other individual as consideration for an 30 appearance, speech, or article made in connection with the duties of the public 31 official or because of the individual's candidacy for a public office;

01 (B) does not include the payment of a salary or an expense 02 reimbursement to which the recipient might otherwise be entitled as an 03 employee of the person; 04 (7) "immediate family" means the spouse, parents, children, including 05 a stepchild and an adoptive child, and siblings of an individual; 06 (8) "independent expenditure" means an expenditure that is made 07 without the direct or indirect consultation or cooperation with, or at the suggestion or 08 the request of, or with the prior consent of, a candidate, a candidate's campaign 09 treasurer or deputy campaign treasurer, or another person acting as a principal or agent 10 of the candidate; 11 (9) "individual" means a natural person; 12 (10) "person" has the meaning given in AS 01.10.060, and includes a 13 labor union; 14 (11) "publicly-funded entity" means a person that receives any public 15 money. 16 * Sec. 19. AS 15.56 is amended by adding new sections to read: 17 Sec. 15.56.012. CAMPAIGN MISCONDUCT IN THE FIRST DEGREE. (a) 18 A person commits the crime of campaign misconduct in the first degree if the person 19 intentionally violates a provision of AS 15.13 or a regulation adopted under authority 20 of AS 15.13. 21 (b) Violation of this section is a corrupt practice. 22 (c) Campaign misconduct in the first degree is a class A misdemeanor. 23 Sec. 15.56.014. CAMPAIGN MISCONDUCT IN THE SECOND DEGREE. 24 (a) A person commits the crime of campaign misconduct in the second degree if the 25 person 26 (1) knowingly circulates or has written, printed or circulated a letter, 27 circular, or publication relating to an election, to a candidate at an election, or an 28 election proposition or question without the name and address of the author appearing 29 on its face; 30 (2) knowingly prints or publishes an advertisement, billboard, placard, 31 poster, handbill, paid-for television or radio announcement or other communication

01 intended to influence the election of a candidate or outcome of a ballot proposition or 02 question without the words "paid for by" followed by the name and address of the 03 candidate, group or individual paying for the advertising or communication and, if a 04 candidate or group, with the name of the campaign chair; 05 (3) knowingly writes or prints and circulates, or has written, printed and 06 circulated, a letter, circular, bill, placard, poster or advertisement in a newspaper, on 07 radio or television 08 (A) containing false factual information relating to a candidate 09 for an election; 10 (B) that the person knows to be false; and 11 (C) that would provoke a reasonable person under the 12 circumstances to a breach of the peace or damages the candidate's reputation 13 for honesty, integrity, or the candidate's qualifications to serve if elected to 14 office; or 15 (4) knowingly violates a provision of AS 15.13 or a regulation adopted 16 under AS 15.13. 17 (b) Violation of this section is a corrupt practice. 18 (c) Campaign misconduct in the second degree is a class B misdemeanor. 19 Sec. 15.56.016. CAMPAIGN MISCONDUCT IN THE THIRD DEGREE. (a) 20 A person commits the crime of campaign misconduct in the third degree 21 (1) if the person recklessly or with criminal negligence violates a 22 provision of AS 15.13 or a regulation adopted under AS 15.13; or 23 (2) if, during the hours the polls are open and after election judges 24 have posted warning notices as required by AS 15.15.170 or at the required distance 25 in the form and manner prescribed by the chief municipal elections official in a local 26 election, the person intentionally is within 200 feet of an entrance to a polling place, 27 and 28 (A) violates AS 15.15.170; or 29 (B) circulates cards, handbills, or marked ballots, or posts 30 political signs or posters relating to a candidate at an election or election 31 proposition or question.

01 (b) Campaign misconduct in the third degree is a violation. 02 Sec. 15.56.018. APPLICABILITY OF CAMPAIGN MISCONDUCT 03 PROVISIONS. (a) For purposes of AS 15.56.012(a), 15.56.015(a)(4), and 04 15.56.016(a)(1), each day a violation continues constitutes a separate offense. 05 (b) When a person is convicted of violating AS 15.56.012(a), in addition to 06 imposition of a sentence as authorized by AS 12.55.015, notwithstanding 07 AS 12.55.015(c), the court shall order suspension, for a period of one year, of any 08 license held by the defendant that allows the defendant to do business in the state. 09 Sec. 15.56.019. DEFINITIONS. In AS 15.56.012 - 15.56.018, the terms 10 "intentionally," "knowingly," "recklessly," and "with criminal negligence" have the 11 meanings given in AS 11.81.900(a). 12 * Sec. 20. AS 24.45.121(a) is amended to read: 13 (a) A lobbyist may not 14 (1) engage in any activity as a lobbyist before registering under 15 AS 24.45.041; 16 (2) do anything with the intent of placing a public official under 17 personal obligation to the lobbyist or to the lobbyist's employer; 18 (3) intentionally deceive or attempt to deceive any public official with 19 regard to any material fact pertinent to pending or proposed legislative or 20 administrative action; 21 (4) cause or influence the introduction of a legislative measure solely 22 for the purpose of thereafter being employed to secure its passage or its defeat; 23 (5) cause a communication to be sent to a public official in the name 24 of any fictitious person or in the name of any real person, except with the consent of 25 that person; 26 (6) accept or agree to accept any payment in any way contingent upon 27 the defeat, enactment, or outcome of any proposed legislative or administrative action; 28 (7) serve as a member of a state board, or commission, if the lobbyist's 29 employer may receive direct economic benefit from a decision of that board or 30 commission; 31 (8) serve as a campaign manager or director, serve as a campaign

01 treasurer or deputy campaign treasurer on a finance or fund-raising committee, host a 02 fund-raising event, directly or indirectly collect contributions for, or deliver 03 contributions to, a candidate or otherwise [ACTIVELY] engage in the fund-raising 04 activity of a legislative campaign if the lobbyist has registered, or is required to 05 register as a lobbyist, under this chapter, during the calendar year; this paragraph 06 does not apply to a representational lobbyist as defined in the regulations of the Alaska 07 Public Offices Commission, and does not prohibit a lobbyist from making personal 08 contributions to a candidate as authorized by AS 15.13 or personally advocating on 09 behalf of a candidate; 10 (9) offer, solicit, initiate, facilitate, or provide to or on behalf of a 11 person covered by AS 24.60, during a legislative session, a gift, other than food or 12 beverage for immediate consumption; 13 (10) make or offer a gift or a campaign contribution whose acceptance 14 by the person to whom it is offered would violate AS 24.60. 15 * Sec. 21. AS 24.60.031(b) is amended to read: 16 (b) In this section, "contribution" has the meaning given in AS 15.13.199 17 [AS 15.13.130]. 18 * Sec. 22. AS 15.13.120(a), 15.13.130; AS 15.56.010, and 15.56.020 are repealed. 19 * Sec. 23. CONSTRUCTION AND APPLICATION. Each provision of this Act shall be 20 construed to avoid a conflict with any federal law that, under the supremacy clause of art. VI 21 of the United States Constitution, prevails over the state provision. 22 * Sec. 24. APPLICABILITY OF AS 15.13 TO PERSONS OTHER THAN INDIVIDUALS. 23 If a court determines that, under the federal or state constitutions, persons who are not 24 individuals must be allowed to contribute to candidates or groups, then the requirements, 25 monetary limitations, and restrictions of AS 15.13 are applicable to those persons. 26 * Sec. 25. This Act takes effect immediately under AS 01.10.070(c).