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CSSB 191(JUD): "An Act relating to election campaigns, election campaign financing, the oversight and regulation of election campaigns, the activities of lobbyists that relate to election campaigns, the definitions of offenses of campaign misconduct, and to the use of the net proceeds of charitable gaming activities in election campaigns; and providing for an effective date."

00CS FOR SENATE BILL NO. 191(JUD) 01 "An Act relating to election campaigns, election campaign financing, the 02 oversight and regulation of election campaigns, the activities of lobbyists that 03 relate to election campaigns, the definitions of offenses of campaign misconduct, 04 and to the use of the net proceeds of charitable gaming activities in election 05 campaigns; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. FINDINGS AND PURPOSE. (a) The legislature finds that, under existing 08 laws, 09 (1) campaigns for elective public office last too long, are often uninformative, 10 and are too expensive; 11 (2) highly qualified citizens are dissuaded from running for public office due to 12 the high cost of election campaigns; 13 (3) organized special interests are responsible for raising a significant portion of 14 all election campaign funds and may thereby gain an undue influence over election campaigns

01 and elected officials, particularly incumbents; 02 (4) incumbents enjoy a distinct advantage in raising money for election 03 campaigns, and many elected officials raise and carry forward huge surpluses from one campaign 04 to the next, to the disadvantage of challengers; 05 (5) because, under existing laws, candidates are completely free to convert 06 campaign funds to personal income, there is great potential for bribery and political corruption; 07 and 08 (6) penalties for violations of the existing campaign finance laws are far too 09 lenient to deter misconduct. 10 (b) It is the purpose of this Act to substantially revise Alaska's election campaign 11 finance laws in order to restore the public's trust in the electoral process and to foster good 12 government. 13 * Sec. 2. AS 05.15.150(a) is amended to read: 14  (a) The authority to conduct the activity authorized by this chapter is contingent 15 upon the dedication of the net proceeds of the charitable gaming activity to the awarding 16 of prizes to contestants or participants and to political, educational, civic, public, 17 charitable, patriotic, or religious uses in the state. "Political, educational, civic, public, 18 charitable, patriotic, or religious uses" means uses benefiting persons either by bringing 19 them under the influence of education or religion or relieving them from disease, 20 suffering, or constraint, or by assisting them in establishing themselves in life, or by 21 providing for the promotion of the welfare and well-being of the membership of the 22 organization within their own community, or through aiding candidates for public office 23 or groups that support candidates for public office, or by erecting or maintaining public 24 buildings or works, or lessening the burden on government, but does not include 25  (1) the direct or indirect payment of any portion of the net proceeds of 26 a bingo or pull-tab game to a lobbyist registered under AS 24.45; [OR] 27  (2) the erection, acquisition, improvement, maintenance, or repair of real, 28 personal, or mixed property unless it is used exclusively for one or more of the permitted 29 uses; or 30  (3) the direct or indirect payment of any portion of the net proceeds 31 of a charitable gaming activity, except the proceeds of a raffle and lottery,

01  (A) to aid candidates for public office or groups that support 02 candidates for public office; 03  (B) to a political party or to an organization affiliated with 04 a political party; or 05  (C) to a group, as that term is defined in AS 15.13.400, that 06 seeks to influence the outcome of an election. 07 * Sec. 3. AS 15.13.010(a) is amended to read: 08  (a) This chapter applies 09  (1) in every election for governor, lieutenant governor, a member of the 10 state legislature, a delegate to a constitutional convention, or judge seeking electoral 11 confirmation; 12  (2) [. IT ALSO APPLIES] to every candidate for election to a municipal 13 office in a municipality with a population of more than 1,000 inhabitants according to 14 the latest United States census figures or estimates of population certified as correct for 15 administrative purposes by the Department of Community and Regional Affairs unless 16 the municipality has exempted itself from the provisions of this chapter; a [. A] 17 municipality may exempt its elected municipal officers from the requirements of this 18 chapter if a majority of the voters voting on the question at a regular election, as defined 19 by AS 29.71.800(20), or a special municipality-wide election called for that purpose, 20 votes [VOTE] to exempt its elected municipal officers from the requirements of this 21 chapter; the [. THE] question of exemption from the requirements of this chapter may 22 be submitted by the governing body by ordinance or by initiative election. [THIS 23 CHAPTER DOES NOT PROHIBIT A MUNICIPALITY FROM REGULATING BY 24 ORDINANCE CAMPAIGN CONTRIBUTIONS AND EXPENDITURES.] 25 * Sec. 4. AS 15.13.010 is amended by adding new subsections to read: 26  (c) This chapter does not prohibit a municipality from regulating by ordinance 27 election campaign contributions and expenditures in municipal elections, or from 28 regulating those campaign contributions and expenditures more strictly than provided in 29 this chapter. 30  (d) This chapter does not limit the authority of a person to make contributions 31 to influence the outcome of a voter proposition submitted to the public for a vote at a

01 municipal election. In this subsection, in addition to its meaning under AS 15.13.065(b), 02 "proposition" means a municipal reclassification, proposal to adopt or amend a home rule 03 charter, a unification proposal, a boundary change proposal, or the approval of an 04 ordinance when approval by public vote is a requirement for the ordinance. 05 * Sec. 5. AS 15.13.040(a) is amended to read: 06  (a) Except as provided in (g) of this section, each [EACH] candidate shall 07 make a full report, upon a form prescribed by the commission, listing the date and 08 amount of all expenditures made by the candidate, the total amount of all contributions, 09 including all funds contributed by the candidate, and for all contributions in excess of 10 $100 in the aggregate a year, the name, address, principal occupation, and employer of 11 the contributor and the date and amount contributed by each contributor. The report 12 shall be filed in accordance with AS 15.13.110 and shall be certified correct by the 13 candidate or campaign treasurer. 14 * Sec. 6. AS 15.13.040(d) is amended to read: 15  (d) Every individual, person, or group making a contribution or expenditure shall 16 make a full report, upon a form prescribed by the commission, of the following 17 contributions or expenditures: 18  (1) any contribution of cash, goods, or services valued at more than $250 19 a year to any group or candidate; or 20  (2) unless exempted from reporting by (h) of this section, any 21 expenditure whatsoever for advertising in newspapers or other periodicals, on radio, or 22 on television; or, for the publication, distribution, or circulation of brochures, flyers, or 23 other campaign material for any candidate or ballot proposition or question. 24 * Sec. 7. AS 15.13.040 is amended by adding new subsections to read: 25  (g) The provisions of (a) of this section do not apply if a candidate 26  (1) indicates, on a form prescribed by the commission, an intent not to 27 raise and not to expend more than $2,500 in seeking election; 28  (2) accepts contributions totaling not more than $2,500 in seeking 29 election; and 30  (3) makes expenditures totaling not more than $2,500 in seeking 31 election.

01  (h) The provisions of (d)(2) of this section do not apply to one or more 02 expenditures made by an individual acting independently of any group and 03 independently of any other individual if the expenditures 04  (1) cumulatively do not exceed $250 during a calendar year; and 05  (2) are made only for billboards, signs, or printed material concerning 06 a ballot proposition. 07 * Sec. 8. AS 15.13.050 is amended to read: 08  Sec. 15.13.050. REGISTRATION BEFORE EXPENDITURE [GROUPS]. 09 Before [EACH GROUP, BEFORE] making an expenditure in support [ON BEHALF] 10 of [,] or in opposition to [,] a candidate or before making an expenditure in support 11 of or in opposition to a ballot proposition or question, each person, publicly-funded 12 entity, or group [A CONTRIBUTION TO A CANDIDATE] shall register, on forms 13 provided by the commission, with the commission. If the group intends to support or 14 oppose only one candidate, or to contribute to or expend on behalf of, or in opposition 15 to, one candidate 33 1/3 [50] percent or more of its funds, the name of the candidate 16 shall be a part of the name of the group. Promptly upon receiving the registration, the 17 commission shall notify the candidate of the group's organization and intent. 18 * Sec. 9. AS 15.13 is amended by adding new sections to read: 19  Sec. 15.13.065. CONTRIBUTIONS. (a) A political party may contribute to a 20 subordinate unit of the political party, and a subordinate unit of a political party may 21 contribute to the political party of which it is a subordinate unit. 22  (b) Except for reports required by AS 15.13.040 and 15.13.110 and except for 23 the requirements of AS 15.13.050, 15.13.060, and 15.13.112 - 15.13.114, the provisions 24 of AS 15.13.010 - 15.13.116 do not apply to limit the authority of a person to make 25 contributions to influence the outcome of a ballot proposition. In this subsection, in 26 addition to its meaning in AS 15.60.010, "proposition" includes an issue placed on a 27 ballot to determine whether 28  (1) a constitutional convention shall be called; 29  (2) a debt shall be contracted; 30  (3) an advisory question shall be approved or rejected; or 31  (4) a municipality shall be incorporated.

01  Sec. 15.13.067. WHO MAY MAKE EXPENDITURES. Only the following may 02 make an expenditure in an election for candidates for elective office: 03  (1) the candidate; 04  (2) individuals who are registered under AS 15.13.050; and 05  (3) a group that, if required by AS 15.13.050 to register, is registered, 06 or a group not required to register under AS 15.13.050. 07 * Sec. 10. AS 15.13.070 is repealed and reenacted to read: 08  Sec. 15.13.070. LIMITATIONS ON AMOUNT OF POLITICAL 09 CONTRIBUTIONS. (a) An individual or group may make contributions, subject only 10 to the limitations of this chapter and AS 24.45, including the limitations on the maximum 11 amounts set out in this section. 12  (b) An individual may contribute not more than 13  (1) $500 per year to a candidate, to a person who conducts a write-in 14 campaign as a candidate, or to a group that is not a political party; 15  (2) $5,000 per year to a political party. 16  (c) A group that is not a political party may contribute not more than $1,000 per 17 year 18  (1) to a candidate, or to a person who conducts a write-in campaign as 19 a candidate; or 20  (2) to another group or to a political party. 21  (d) A political party may contribute to a candidate, or to a person who conducts 22 a write-in campaign, for the following offices an amount not to exceed 23  (1) $100,000 per year, if the election is for governor or lieutenant 24 governor; 25  (2) $15,000 per year, if the election is for the state senate; 26  (3) $10,000 per year, if the election is for the state house of 27 representatives; and 28  (4) $5,000 per year, if the election is for 29  (A) delegate to a constitutional convention; 30  (B) judge seeking retention; or 31  (C) municipal office.

01 * Sec. 11. AS 15.13 is amended by adding new sections to read: 02  Sec. 15.13.072. RESTRICTIONS ON SOLICITATION AND ACCEPTANCE 03 OF CONTRIBUTIONS. (a) A candidate or an individual who has filed with the 04 commission the document necessary to permit that individual to incur election-related 05 expenses under AS 15.13.100 may not solicit or accept a contribution from a person not 06 authorized by law to make a contribution. 07  (b) A candidate or an individual who has filed with the commission the 08 document necessary to permit the individual to incur election-related expenses under 09 AS 15.13.100, or a group, may not solicit or accept a cash contribution that exceeds 10 $100. 11  (c) An individual, or one acting directly or indirectly on behalf of that individual, 12 may not solicit or accept a contribution 13  (1) before the date for which contributions may be made as determined 14 under AS 15.13.074(c)(1) - (3); or 15  (2) later than the day after which contributions may not be made as 16 determined under AS 15.13.074(c)(4). 17  (d) A candidate or an individual who has filed with the commission the 18 document necessary to permit that individual to incur election-related expenses under 19 AS 15.13.100 may not solicit or accept a contribution if the legislature is convened in 20 a regular or special legislative session, and the candidate or individual is a member of 21 the legislature, or employed by a legislator or employed as a member of the legislator's 22 staff or as a member of the staff of a legislative committee. 23  Sec. 15.13.074. PROHIBITED CONTRIBUTIONS. (a) A person or group may 24 not make a contribution if the making of the contribution would violate this chapter. 25  (b) A person or group may not make a contribution anonymously, using a 26 fictitious name, or using the name of another. 27  (c) A person or group may not make a contribution 28  (1) to a candidate for governor or lieutenant governor or an individual 29 who files with the commission the document necessary to permit that individual to incur 30 certain election-related expenses as authorized by AS 15.13.100 for governor or 31 lieutenant governor, when the office is to be filled at a general election, before the later

01 of the following dates: 02  (A) the date the individual 03  (i) becomes a candidate; or 04  (ii) files with the commission the document necessary to 05 permit the individual to incur certain election-related expenses as 06 authorized by AS 15.13.100; or 07  (B) January 1 of the year of the general election; 08  (2) to a candidate for the state legislature or an individual who files with 09 the commission the document necessary to permit that individual to incur certain 10 election-related expenses as authorized by AS 15.13.100 for the state legislature, when 11 the office is to be filled at a general election, before the later of the following dates: 12  (A) the date the individual 13  (i) becomes a candidate; or 14  (ii) files with the commission the document necessary to 15 permit the individual to incur certain election-related expenses as 16 authorized by AS 15.13.100; or 17  (B) June 1 of the year of the general election; 18  (3) to a candidate or an individual who files with the commission the 19 document necessary to permit that individual to incur certain election-related expenses 20 as authorized by AS 15.13.100 for an office that is to be filled at a special election or 21 municipal election before the later of the following dates: 22  (A) the date the individual 23  (i) becomes a candidate; or 24  (ii) files with the commission the document necessary to 25 permit that individual to incur certain election-related expenses as 26 authorized by AS 15.13.100; 27  (B) is five months before the date of the general or regular 28 municipal election or that is before the date of the proclamation of the special 29 election at which the candidate or individual seeks election to public office; or 30  (4) to any candidate later than the 45th day 31  (A) after the date of a primary election if the candidate

01  (i) has been nominated at the primary election or is 02 running as a write-in candidate; and 03  (ii) is not opposed at the general election; 04  (B) after the date of the primary election if the candidate was not 05 nominated at the primary election; or 06  (C) after the date of the general election, or after the date of a 07 municipal or municipal runoff election, if the candidate was opposed at the 08 general, municipal, or municipal runoff election. 09  (d) A person or group may not make a contribution to a candidate or a person 10 or group who is prohibited by AS 15.13.072(c) from accepting it. 11  (e) A person or group may not make a cash contribution that exceeds $100. 12  (f) A corporation, labor union, or publicly funded entity that does not satisfy the 13 definition of group in AS 15.13.400 may not make a contribution to a candidate. 14  Sec. 15.13.076. AUTHORIZED RECIPIENTS OF CONTRIBUTIONS. A 15 contribution to a 16  (1) candidate may be received only by 17  (A) the candidate; or 18  (B) the candidate's campaign treasurer or a deputy campaign 19 treasurer; 20  (2) group may be received only by the group's campaign treasurer or a 21 deputy treasurer. 22  Sec. 15.13.078. CONTRIBUTIONS AND LOANS FROM THE CANDIDATE. 23 (a) The provisions of this chapter do not prohibit the person who is a candidate from 24 giving any amount of the candidate's own money or other thing of value to the campaign 25 of the candidate. Donations made by the candidate to the candidate's own campaign 26 shall be reported as contributions in accordance with AS 15.13.040 and 15.13.110. 27  (b) The provisions of this chapter do not prohibit the person who is a candidate 28 from lending any amount to the campaign of the candidate. Loans made by the 29 candidate shall be reported as contributions in accordance with AS 15.13.040 and 30 15.13.110. However, the candidate may not 31  (1) recover, under this section and AS 15.13.116(a)(5), the amount of a

01 loan made by the candidate to the candidate's own campaign that exceeds 02  (A) $25,000, if the candidate ran for governor or lieutenant 03 governor; 04  (B) $10,000, if the candidate ran for 05  (i) the legislature; or 06  (ii) delegate to a constitutional convention; 07  (C) $10,000, if the candidate was a judge seeking retention; 08  (D) $5,000, if the candidate ran in a municipal election; or 09  (2) repay a loan that the candidate has made to the candidate's own 10 campaign unless, within five days of making the loan, the candidate notifies the 11 commission, on a form provided by the commission, of the candidate's intention to repay 12 the loan under AS 15.13.116(a)(5). 13  (c) On and after the date determined under AS 15.13.110 as the last day of the 14 period ending three days before the due date of the report required to be filed under 15 AS 15.13.110(a)(1) and until the date of the election for which the report is filed, a 16 candidate may not give or loan, or both, to the candidate's campaign the candidate's 17 money or other thing of value of the candidate in an amount that exceeds $5,000. 18  (d) The provisions of this section apply only to the person who is a candidate, 19 as that term is defined by AS 15.13.400(1)(A), and do not apply to authorize a 20 contribution or loan under this section by a person described in the definition of the term 21 "candidate" under AS 15.13.400(1)(B). 22 * Sec. 12. AS 15.13.080 is amended to read: 23  Sec. 15.13.080. STATEMENT BY CONTRIBUTOR. (a) Each of the 24 following shall file statements as required by this section: 25  (1) an individual who contributes to a candidate 26  (A) more than [A PERSON OR GROUP CONTRIBUTING TO 27 A CANDIDATE OVER] $250; or 28  (B) [CONTRIBUTING] goods or services [TO A CANDIDATE] 29 with a value of more than $250; 30  (2) an individual who, during the period between the 90th day before 31 an election and the date of the election, contributes to more than one group and

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

01 commission: 02  (1) the name, address, principal occupation, and employer of the 03 contributor; and 04  (2) the date and amount of the contribution. 05  Sec. 15.13.084. PROHIBITED EXPENDITURES. A person may not make an 06 expenditure 07  (1) anonymously, unless the expenditure is 08  (A) paid for by an individual acting independently of any group 09 and independently of any other individual; 10  (B) made to influence the outcome of a ballot proposition as that 11 term is defined by AS 15.13.065(b); and 12  (C) made for 13  (i) a billboard or sign; or 14  (ii) printed material, other than an advertisement made in 15 a newspaper or other periodical; 16  (2) using a fictitious name or using the name of another. 17  Sec. 15.13.086. AUTHORIZED MAKERS OF EXPENDITURES. An 18 expenditure 19  (1) authorized by or in behalf of a candidate may be made only by 20  (A) the candidate; or 21  (B) the candidate's campaign treasurer or a deputy campaign 22 treasurer; 23  (2) authorized by AS 15.13.067(3) by or in behalf of a group may be 24 made only by the group's campaign treasurer. 25 * Sec. 14. AS 15.13.090 is amended by adding a new subsection to read: 26  (b) The provisions of (a) of this section do not apply when the advertisement 27  (1) is paid for by an individual acting independently of any group and 28 independently of any other individual; 29  (2) is made to influence the outcome of a ballot proposition as that term 30 is defined by AS 15.13.065(b); and 31  (3) is made for

01  (A) a billboard or sign; or 02  (B) printed material other than an advertisement made in a 03 newspaper or other periodical. 04 * Sec. 15. AS 15.13.110(a) is amended to read: 05  (a) Each candidate and group shall make a full report in accordance with 06 AS 15.13.040 for the period ending three days before the due date of the report and 07 beginning on the last day covered by the most recent previous report. If the report is a 08 first report, it shall cover the period from the beginning of the campaign to the date three 09 days before the due date of the report. If the report is a report due February 15, it shall 10 cover the period beginning on the last day covered by the most recent previous report 11 or on the day that the campaign started, whichever is later, and ending on December 31 12 of the prior year. The report shall be filed 13  (1) 30 days before the election; however, this report is not required if the 14 deadline for filing a nominating petition or declaration of candidacy is within 30 days 15 of the election; 16  (2) one week before the election; 17  (3) 10 days after the election; and 18  (4) February 15 for expenditures made and contributions received that 19 were not reported during the previous year, including, if applicable, all amounts 20 expended from a legislative office account established under AS 15.13.116(a)(9), or 21 when expenditures were not made or contributions were not received during the previous 22 year. 23 * Sec. 16. AS 15.13.110(b) is amended to read: 24  (b) Each contribution [OR EXPENDITURE] that exceeds $250 and that is made 25 within nine days of the election shall be reported to the commission by date, amount, and 26 contributor [OR RECIPIENT] within 24 hours of receipt [OR EXPENDITURE] by the 27 candidate, group, [OR] campaign treasurer, or deputy campaign treasurer. 28 * Sec. 17. AS 15.13.110(c) is amended to read: 29  (c) [THE REPORTS OF CANDIDATES SHALL BE FILED WITH THE 30 COMMISSION'S CENTRAL OFFICE.] All reports required by this chapter shall be 31 filed with the commission's central office and shall be kept open to public inspection.

01 Within 30 days after each election, the commission shall prepare a summary of each 02 report which shall be made available to the public at cost upon request. Each summary 03 shall use uniform categories of reporting. 04 * Sec. 18. AS 15.13 is amended by adding new sections to read: 05  Sec. 15.13.112. USES OF CAMPAIGN CONTRIBUTIONS HELD BY 06 CANDIDATE OR GROUP. (a) Except as otherwise provided, campaign contributions 07 held by a candidate or group may be used only to pay the expenses of the candidate or 08 group, and the campaign expenses incurred by the candidate or group, that reasonably 09 relate to election campaign activities, and in those cases only as authorized by this 10 chapter. 11  (b) Campaign contributions held by a candidate or group may not be 12  (1) used to give a personal benefit to the candidate or to another person; 13  (2) converted to personal income of the candidate; 14  (3) loaned to a person; 15  (4) knowingly used to pay more than the fair market value for goods or 16 services purchased for the campaign; 17  (5) used to pay a criminal fine; or 18  (6) used to pay civil penalties; however, campaign contributions held by 19 a candidate or group may be used to pay a civil penalty assessed under this chapter if 20 authorized by the commission after it first determines that 21  (A) the candidate, campaign treasurer, and deputy campaign 22 treasurer did not cause or participate in the violation for which the civil penalty 23 is imposed and exercised a reasonable level of oversight over the campaign; and 24  (B) the candidate, campaign treasurer, and deputy campaign 25 treasurers cooperated in the revelation of the violation and in its immediate 26 correction. 27  Sec. 15.13.114. DISPOSITION OF PROHIBITED CONTRIBUTIONS. (a) A 28 candidate or group that receives and accepts a contribution given in violation of 29 AS 15.13.072 or 15.13.074 shall immediately, upon discovery that the contribution is 30 prohibited, return it to the contributor. A candidate or group that receives and accepts 31 a contribution in excess of the limitation on contributions set out in AS 15.13.070 shall

01 immediately, upon discovery of the prohibited excess contribution, return the excess to 02 the contributor. If the contribution or excess amount cannot be returned in the same 03 form, the equivalent value of the contribution or excess amount shall be returned. 04  (b) An anonymous contribution is forfeited to the state unless the contributor is 05 identified within five days of its receipt. Money that forfeits to the state under this 06 subsection shall be delivered immediately to the Department of Revenue for deposit in 07 the general fund. 08  Sec. 15.13.116. DISBURSEMENT OF CAMPAIGN ASSETS AFTER 09 ELECTION. (a) A candidate who, after the date of the general, special, municipal, or 10 municipal runoff election or after the date the candidate withdraws as a candidate, 11 whichever comes first, holds unused campaign contributions shall distribute the amount 12 held within 60 days. The distribution may only be made to 13  (1) pay bills incurred for expenditures reasonably related to the campaign 14 and the winding up of the affairs of the campaign, and to pay expenditures associated 15 with post-election fund raising that may be needed to raise funds to pay off campaign 16 debts; 17  (2) pay for a victory or a thank you party costing less than $500, or to 18 give a thank you gift of a value of less than $50 to a campaign employee or volunteer; 19  (3) make donations, without condition, to 20  (A) a political party; 21  (B) the state's general fund; 22  (C) a municipality of the state; or 23  (D) the federal government; 24  (4) make donations, without condition, to organizations qualified as 25 charitable organizations under 26 U.S.C. 501(c)(3), provided the organization is not 26 controlled by the candidate or a member of the candidate's immediate family; 27  (5) repay loans from the candidate to the candidate's own campaign 28 under AS 15.13.078(b); 29  (6) repay contributions to contributors, but only if repayment of the 30 contribution is made pro rata in approximate proportion to the contributions made using 31 one of the following, as the candidate determines:

01  (A) to all contributors; 02  (B) to contributors who have contributed most recently; or 03  (C) to contributors who have made larger contributions; 04  (7) establish a fund for, and from that fund to pay, attorney fees or costs 05 incurred in the prosecution or defense of an administrative or civil judicial action that 06 directly concerns a challenge to the victory or defeat of the candidate in the election; 07  (8) transfer all or a portion of the unused campaign contributions to an 08 account for a future election campaign; a transfer under this paragraph is limited to 09  (A) $50,000, if the transfer is made by a candidate for governor 10 or lieutenant governor; 11  (B) $10,000, if the transfer is made by a candidate for the state 12 senate; 13  (C) $5,000, if the transfer is made by a candidate for the state 14 house of representatives; and 15  (D) $5,000, if the transfer is made by a candidate for an office 16 not described in (A) - (C) of this paragraph; 17  (9) transfer all or a portion of the unused campaign contributions to a 18 legislative office account; a transfer under this paragraph is subject to the following: 19  (A) the authority to transfer is limited to candidates who are 20 elected to the state legislature; 21  (B) the legislative office account established under this paragraph 22 may be used only for expenses associated with the candidate's serving as a 23 member of the legislature; 24  (C) all amounts expended from the legislative office account shall 25 be annually accounted for under AS 15.13.110(a)(4); and 26  (D) a transfer under this paragraph is limited to $2,500 per 27 election district represented by the candidate elected to the state legislature 28 multiplied by the number of years in the term to which the candidate is elected. 29  (b) After a general, special, municipal, or municipal runoff election, a candidate 30 may retain the ownership of one computer and one printer and of personal property, 31 except money, that was acquired by and for use in the campaign. The current fair

01 market value of the property retained, exclusive of the computer and printer, may not 02 exceed $2,500. All other property shall be disposed of, or sold and the sale proceeds 03 disposed of, in accordance with (a) or (c) of this section. 04  (c) Property remaining after disbursements are made under (a) - (b) of this 05 section is forfeited to the state. Within 30 days, the candidate shall deliver the property 06 to the Department of Revenue. The Department of Revenue shall deposit any money 07 received into the general fund and dispose of any other property in accordance with law. 08 * Sec. 19. AS 15.13.120(d) is repealed and reenacted to read: 09  (d) A member of the commission, the commission's executive director, or a 10 person or group who believes a violation of this chapter or a regulation adopted under 11 this chapter has occurred or is occurring may file an administrative complaint with the 12 commission within four years of the date of the alleged violation. If a member of the 13 commission has filed the complaint, that member may not participate as a commissioner 14 in any proceeding of the commission with respect to the complaint. If the commission 15 accepts the complaint and opens a preliminary investigation, it shall do so within 90 days 16 of the filing date of the complaint and shall investigate the complaint. After affording 17 the respondent notice and an opportunity to be heard, if the commission finds that the 18 respondent has engaged in or is about to engage in an act or practice that constitutes or 19 will constitute a violation of this chapter or a regulation adopted under it, the commission 20 shall enter an order requiring the violation to be ceased or to be remedied, and shall 21 assess civil penalties under AS 15.13.125. A commission order may be appealed to the 22 superior court by either the complainant or respondent within 30 days. The commission 23 or the commission's executive director shall promptly report to the attorney general 24 concerning any acts or practices that may constitute violations of this chapter or 25 regulations adopted under this chapter, or concerning the violation of any order of the 26 commission. 27 * Sec. 20. AS 15.13.120(e) is repealed and reenacted to read: 28  (e) If the commission does not open a preliminary investigation within 90 days 29 of the filing date of the complaint or complete action on the complaint within 120 days 30 of the filing, the complaint is rejected. A complainant whose complaint is rejected may 31 file a complaint in superior court alleging a violation of this chapter by a person charged

01 in the administrative complaint. The superior court summons and complaint shall be 02 served on the commission and the attorney general. The state shall have the right to 03 intervene in a timely manner. A complaint may not be filed in superior court under this 04 subsection if more than two years have elapsed from the date of the alleged violation. 05 This subsection does not create a private cause of action against the commission. 06 * Sec. 21. AS 15.13.125 is amended to read: 07  Sec. 15.13.125. CIVIL PENALTY: LATE FILING OF REQUIRED REPORTS. 08 A person who fails to file a properly completed and certified report within the time 09 required by AS 15.13.040(d) - (f), 15.13.050, 15.13.060(b) - (d), 15.13.080(c) 10 [AS 15.13.040(f)], 15.13.110(a)(1), (3), or (4), (e), or (f) [OR 15.13.110(f)] is subject 11 to a civil penalty of not more than $50 [$10] a day for each day the delinquency 12 continues as determined by the commission subject to right of appeal to the superior 13 court. A person who fails to file a properly completed and certified report within the 14 time required by AS 15.13.110(a)(2) or 15.13.110(b) is subject to a civil penalty of not 15 more than $500 [$50] a day for each day the delinquency continues as determined by the 16 commission subject to right of appeal to the superior court. A person who violates a 17 provision of this chapter, except a provision requiring filing of a report within a 18 time required as otherwise specified in this subsection, is subject to a civil penalty 19 of not more than $50 a day for each day the violation continues as determined by 20 the commission, subject to right of appeal to the superior court. An affidavit stating 21 facts in mitigation may be submitted to the commission by a person against whom a civil 22 penalty is assessed. However, the imposition of the penalties prescribed in this section 23 or in AS 15.13.120 does not excuse that person from filing reports required by this 24 chapter. 25 * Sec. 22. AS 15.13.125 is amended by adding new subsections to read: 26  (b) When an administrative complaint has been filed under AS 15.13.120(d), the 27 commission shall give the person against whom the complaint has been filed due notice 28 and an opportunity to be heard. If, at the conclusions of the hearing, the commission 29 determines that the person against whom the complaint was filed engaged in the alleged 30 violation, the commission shall assess 31  (1) civil penalties under (a) of this section;

01  (2) the commission's costs of investigation and adjudication; and 02  (3) reasonable attorney fees. 03  (c) The commission's determination under (b) of this section may be appealed 04 to the superior court under AS 44.62 (Administrative Procedure Act). 05  (d) If the commission or superior court finds that the violation was not a repeat 06 violation or was not part of a series or pattern of violations, was inadvertent, was quickly 07 corrected, and had no adverse effect on the campaign of another, the commission or the 08 court may 09  (1) suspend imposition of the penalties; and 10  (2) order the penalties set aside if the person does not engage in a similar 11 violation for a period of one year. 12  (e) A party who has filed a civil action under AS 15.13.120(e) 13  (1) is not entitled to trial by jury on the civil action; 14  (2) is not entitled to be represented by legal counsel at public expense. 15 * Sec. 23. AS 15.13 is amended by adding new sections to read: 16  Sec. 15.13.135. INDEPENDENT EXPENDITURES FOR OR AGAINST 17 CANDIDATES. (a) Only an individual or group may make an independent expenditure 18 supporting or opposing a candidate for election to public office. An independent 19 expenditure supporting or opposing a candidate for election to public office shall be 20 reported in accordance with AS 15.13.040 and 15.13.100 - 15.13.110 and other 21 requirements of this chapter. 22  (b) An individual or group who makes independent expenditures for a mass 23 mailing, for distribution of campaign literature of any sort, for a television, radio, 24 newspaper or magazine advertisement, or any other communication that supports or 25 opposes a candidate for election to public office 26  (1) shall comply with AS 15.13.090; and 27  (2) shall place the following statement in the mailing, literature, 28 advertisement, or other communication so that it is readily and easily discernible: 29  This NOTICE TO VOTERS is required by Alaska law. (I/we) 30 certify that this (mailing/literature/advertisement) is not authorized, paid 31 for, or approved by the candidate.

01  Sec. 15.13.137. RESTRICTIONS ON CONTRIBUTIONS TO INDIVIDUALS 02 MAKING INDEPENDENT EXPENDITURES FOR OR AGAINST CANDIDATES. 03 An individual who makes an independent expenditure supporting or opposing a candidate 04 may not accept a contribution to help pay for the expenditure from another individual 05 or group that exceeds the amount an individual may contribute to a group under 06 AS 15.13.070(b)(2). 07  Sec. 15.13.140. INDEPENDENT EXPENDITURES FOR OR AGAINST 08 BALLOT PROPOSITION OR QUESTION. (a) This chapter does not prohibit a person, 09 or a publicly funded entity, from making independent expenditures in support of or in 10 opposition to a ballot proposition or question. 11  (b) An independent expenditure for or against a ballot proposition or question 12  (1) shall be reported in accordance with AS 15.13.040 and 15.13.100 - 13 15.13.110 and other requirements of this chapter; and 14  (2) may not be made if the expenditure is prohibited by AS 15.13.145. 15  Sec. 15.13.145. MONEY OF THE STATE AND ITS POLITICAL 16 SUBDIVISIONS. (a) Except as provided in (b) and (c) of this section, each of the 17 following may not use money held by the entity to influence the outcome of the election 18 of a candidate to a state or municipal office: 19  (1) the state, its agencies, and its corporations; 20  (2) the University of Alaska and its Board of Regents; 21  (3) municipalities, school districts, and regional educational attendance 22 areas, or another political subdivision of the state; and 23  (4) an officer or employee of an entity identified in (1) - (3) of this 24 subsection. 25  (b) Money held by an entity identified in (a)(1) - (3) of this section may be used 26 to influence the outcome of an election concerning a ballot proposition or question, but 27 only if the funds have been specifically appropriated for that purpose by a state law or 28 a municipal ordinance. 29  (c) Money held by an entity identified in (a)(1) - (3) of this section may be used 30  (1) to disseminate information about the time and place of an election 31 and to hold an election;

01  (2) to provide the public with nonpartisan information about a ballot 02 proposition or question or about all the candidates seeking election to a particular public 03 office. 04  (d) When expenditure of money is authorized by (b) or (c) of this section and 05 is used to influence the outcome of an election, the expenditures shall be reported to the 06 commission in the same manner as an individual is required to report under 07 AS 15.13.040. 08  Sec. 15.13.150. ELECTION EDUCATIONAL ACTIVITIES NOT 09 PROHIBITED. This chapter does not prohibit a person from engaging in educational 10 election-related communications and activities, including 11  (1) the publication of the date and location of an election; 12  (2) the education of students about voting and elections; 13  (3) the sponsorship of open candidate debate forums; 14  (4) participation in get-out-the-vote or voter registration drives that do 15 not favor a particular candidate, political party, or political position; 16  (5) the dissemination of the views of all candidates running for a 17 particular office. 18  Sec. 15.13.155. RESTRICTIONS ON EARNED INCOME AND HONORARIA. 19 (a) A candidate for the state legislature, for governor, or for lieutenant governor, 20 including a person campaigning as a write-in candidate for the office, may not 21  (1) seek or accept compensation for personal services that involves 22 payments that are not commensurate with the services rendered taking into account the 23 higher rates generally charged by specialists in a profession; or 24  (2) accept a payment of anything of value, except for actual and 25 necessarily incurred travel expenses, for an appearance or speech; this paragraph does 26 not apply to the salary paid to the candidate for making an appearance or speech as part 27 of the candidate's normal course of employment. 28  (b) Notwithstanding (a) of this section, a candidate for the state legislature, for 29 governor, or for lieutenant governor, including a person campaigning as a write-in 30 candidate for the office, may accept a payment for an appearance or speech if the 31 appearance or speech is not connected with the person's status as a state official or as a

01 candidate. 02  Sec. 15.13.400. DEFINITIONS. In this chapter, 03  (1) "candidate" 04  (A) means a person who files for election to the state legislature, 05 for governor, for lieutenant governor, for municipal office, for retention in 06 judicial office, or for constitutional convention delegate, or who campaigns as a 07 write-in candidate for any of these offices; and 08  (B) when used in a provision of this chapter that limits or 09 prohibits the donation, solicitation, or acceptance of campaign contributions, or 10 limits or prohibits an expenditure, includes 11  (i) a candidate's campaign treasurer and a deputy 12 campaign treasurer; 13  (ii) a member of the candidate's immediate family; 14  (iii) a person acting as agent for the candidate; 15  (iv) the candidate's campaign committee; and 16  (v) a group that makes expenditures or receives 17 contributions with the authorization or consent, express or implied, or 18 under the control, direct or indirect, of the candidate; 19  (2) "commission" means the Alaska Public Offices Commission; 20  (3) "contribution" 21  (A) means a purchase, payment, promise or obligation to pay, 22 loan or loan guarantee, deposit or gift of money, goods, or services for which 23 charge is ordinarily made and that is made for the purpose of influencing the 24 nomination or election of a candidate, and in AS 15.13.010(b) for the purpose of 25 influencing a ballot proposition or question, including the payment by a person 26 other than a candidate or political party, or compensation for the personal 27 services of another person, that are rendered to the candidate or political party; 28  (B) does not include 29  (i) services provided without compensation by individuals 30 volunteering a portion or all of their time on behalf of a candidate or 31 ballot proposition or question, but it does include professional services

01 volunteered by individuals for which they ordinarily would be paid a fee 02 or wage; 03  (ii) services provided by an accountant or other person to 04 prepare reports and statements required by this chapter; or 05  (iii) ordinary hospitality in a home; 06  (4) "expenditure" 07  (A) means a purchase or a transfer of money or anything of 08 value, or promise or agreement to purchase or transfer money or anything of 09 value, incurred or made for the purpose of 10  (i) influencing the nomination or election of a candidate 11 or of any individual who files for nomination at a later date and becomes 12 a candidate; 13  (ii) use by a political party; 14  (iii) the payment by a person other than a candidate or 15 political party of compensation for the personal services of another person 16 that are rendered to a candidate or political party; or 17  (iv) influencing the outcome of a ballot proposition or 18 question; 19  (B) does not include a candidate's filing fee or the cost of 20 preparing reports and statements required by this chapter; 21  (5) "group" means 22  (A) every state and regional executive committee of a political 23 party; and 24  (B) any combination of two or more individuals acting jointly 25 who organize for the principal purpose to influence the outcome of one or more 26 elections and who take action the major purpose of which is to influence the 27 outcome of an election; a group that makes expenditures or receives contributions 28 with the authorization or consent, express or implied, or under the control, direct 29 or indirect, of a candidate shall be considered to be controlled by that candidate; 30 a group whose major purpose is to further the nomination, election, or candidacy 31 of only one person, or intends to expend more than 50 percent of its money on

01 a single candidate, shall be considered to be controlled by that candidate and its 02 actions done with the candidate's knowledge and consent unless, within 10 days 03 from the date the candidate learns of the existence of the group the candidate 04 files with the commission, on a form provided by the commission, an affidavit 05 that the group is operating without the candidate's control; a group organized for 06 more than one year preceding an election and endorsing candidates for more than 07 one office or more than one political party is presumed not to be controlled by 08 a candidate; however, a group that contributes more than 50 percent of its money 09 to or on behalf of one candidate shall be considered to support only one 10 candidate for purposes of AS 15.13.070, whether or not control of the group has 11 been disclaimed by the candidate; 12  (6) "immediate family" means the spouse, parents, children, including a 13 stepchild and an adoptive child, and siblings of an individual; 14  (7) "independent expenditure" means an expenditure that is made without 15 the direct or indirect consultation or cooperation with, or at the suggestion or the request 16 of, or with the prior consent of, a candidate, a candidate's campaign treasurer or deputy 17 campaign treasurer, or another person acting as a principal or agent of the candidate; 18  (8) "individual" means a natural person; 19  (9) "person" has the meaning given in AS 01.10.060, and includes a labor 20 union and a group; 21  (10) "political party" means 22  (A) an organized group of voters that represents a political 23 program and that nominated a candidate for governor who received at least three 24 percent of the total votes cast at any one of the last five preceding general 25 elections for governor; and 26  (B) a subordinate unit of the organized group of voters qualifying 27 as a political party under (A) of this paragraph if, consistent with the rules or 28 bylaws of the political party, the unit conducts or supports campaign operations 29 in a municipality, neighborhood, election district, or precinct; 30  (11) "publicly funded entity" means a person, other than an individual, 31 that receives half or more of the money on which it operates during a calendar year from

01 government, including a public corporation. 02 * Sec. 24. AS 15.56 is amended by adding new sections to read: 03  Sec. 15.56.012. CAMPAIGN MISCONDUCT IN THE FIRST DEGREE. (a) 04 Except as provided in AS 15.56.014 and 15.56.016, a person commits the crime of 05 campaign misconduct in the first degree if the person knowingly engages in conduct that 06 violates a provision of AS 15.13 or a regulation adopted under authority of AS 15.13. 07  (b) Violation of this section is a corrupt practice. 08  (c) Campaign misconduct in the first degree is a class A misdemeanor. 09  Sec. 15.56.014. CAMPAIGN MISCONDUCT IN THE SECOND DEGREE. (a) 10 A person commits the crime of campaign misconduct in the second degree if the person 11  (1) knowingly circulates or has written, printed or circulated a letter, 12 circular, or publication relating to an election, to a candidate at an election, or an election 13 proposition or question without the name and address of the author appearing on its face; 14  (2) except as provided by AS 15.13.090(b), knowingly prints or publishes 15 an advertisement, billboard, placard, poster, handbill, paid-for television or radio 16 announcement or other communication intended to influence the election of a candidate 17 or outcome of a ballot proposition or question without the words "paid for by" followed 18 by the name and address of the candidate, group or individual paying for the advertising 19 or communication and, if a candidate or group, with the name of the campaign chair; 20  (3) knowingly writes or prints and circulates, or has written, printed and 21 circulated, a letter, circular, bill, placard, poster or advertisement in a newspaper, on 22 radio or television 23  (A) containing false factual information relating to a candidate for 24 an election; 25  (B) that the person knows to be false; and 26  (C) that would provoke a reasonable person under the 27 circumstances to a breach of the peace or that a reasonable person would 28 construe as damaging to the candidate's reputation for honesty, integrity, or the 29 candidate's qualifications to serve if elected to office. 30  (b) Violation of this section is a corrupt practice. 31  (c) Campaign misconduct in the second degree is a class B misdemeanor.

01  Sec. 15.56.016. CAMPAIGN MISCONDUCT IN THE THIRD DEGREE. (a) 02 A person commits the crime of campaign misconduct in the third degree if 03  (1) the person violates a provision of AS 15.13 or a regulation adopted 04 under AS 15.13; or 05  (2) during the hours the polls are open and after election judges have 06 posted warning notices as required by AS 15.15.170 or at the required distance in the 07 form and manner prescribed by the chief municipal elections official in a local election, 08 the person is within 200 feet of an entrance to a polling place, and 09  (A) violates AS 15.15.170; or 10  (B) circulates cards, handbills, or marked ballots, or posts 11 political signs or posters relating to a candidate at an election or election 12 proposition or question. 13  (b) Campaign misconduct in the third degree is a violation. 14  Sec. 15.56.018. APPLICABILITY OF CAMPAIGN MISCONDUCT 15 PROVISIONS. (a) For purposes of AS 15.56.012(a) and 15.56.016(a)(1), each day a 16 violation continues constitutes a separate offense. 17  (b) When a person is convicted of violating AS 15.56.012, in addition to 18 imposition of a sentence as authorized by AS 12.55.015, notwithstanding 19 AS 12.55.015(c), the court shall order suspension, for a period of one year, of any 20 license held by the defendant that allows the defendant to do business in the state. 21  Sec. 15.56.019. DEFINITION. In AS 15.56.012 - 15.56.018, the term 22 "knowingly" has the meaning given in AS 11.81.900(a). 23 * Sec. 25. AS 24.45.121(a) is amended to read: 24  (a) A lobbyist may not 25  (1) engage in any activity as a lobbyist before registering under 26 AS 24.45.041; 27  (2) do anything with the intent of placing a public official under personal 28 obligation to the lobbyist or to the lobbyist's employer; 29  (3) intentionally deceive or attempt to deceive any public official with 30 regard to any material fact pertinent to pending or proposed legislative or administrative 31 action;

01  (4) cause or influence the introduction of a legislative measure solely for 02 the purpose of thereafter being employed to secure its passage or its defeat; 03  (5) cause a communication to be sent to a public official in the name of 04 any fictitious person or in the name of any real person, except with the consent of that 05 person; 06  (6) accept or agree to accept any payment in any way contingent upon 07 the defeat, enactment, or outcome of any proposed legislative or administrative action; 08  (7) serve as a member of a state board, or commission, if the lobbyist's 09 employer may receive direct economic benefit from a decision of that board or 10 commission; 11  (8) serve as a campaign manager or director, serve as a campaign 12 treasurer or deputy campaign treasurer on a finance or fund-raising committee, host a 13 fund-raising event, directly or indirectly collect contributions for, or deliver 14 contributions to, a candidate or otherwise [ACTIVELY] engage in the fund-raising 15 activity of a legislative campaign or campaign for governor or lieutenant governor 16 if the lobbyist has registered, or is required to register as a lobbyist, under this 17 chapter, during the calendar year; this paragraph does not apply to a representational 18 lobbyist as defined in the regulations of the Alaska Public Offices Commission, and does 19 not prohibit a lobbyist from making personal contributions to or personally advocating 20 on behalf of a candidate; 21  (9) offer, solicit, initiate, facilitate, or provide to or on behalf of a person 22 covered by AS 24.60, during a legislative session, a gift, other than food or beverage for 23 immediate consumption; 24  (10) make or offer a gift or a campaign contribution whose acceptance 25 by the person to whom it is offered would violate AS 24.60. 26 * Sec. 26. AS 24.60.031(b) is amended to read: 27  (b) In this section, "contribution" has the meaning given in AS 15.13.400 28 [AS 15.13.130]. 29 * Sec. 27. AS 15.13.120(a), 15.13.130; AS 15.56.010, and 15.56.020 are repealed. 30 * Sec. 28. CONSTRUCTION AND APPLICATION. Each provision of this Act shall be 31 construed to avoid a conflict with any federal law that, under the supremacy clause of art. VI

01 of the United States Constitution, prevails over the state provision. 02 * Sec. 29. SEVERABILITY. Under AS 01.10.030, if any provision of this Act, or the 03 application thereof to any person or circumstance, is held invalid, the remainder of this Act and 04 the application to other persons or circumstances is not affected thereby. 05 * Sec. 30. TAKING EFFECT OF ACT MADE CONDITIONAL. Sections 1 - 29 of this Act 06 take effect only if, under art. XI, sec. 4, Constitution of the State of Alaska, and AS 15.45.210, 07 the lieutenant governor determines that secs. 1 - 29 of this Act are substantially the same as the 08 law proposed to be enacted by the Initiative entitled "An Initiative relating to election campaign 09 financing and the Alaska Public Offices Commission; and providing for an effective date," 10 identified by the division of elections as Initiative Petition 95 CFPO, filed with the lieutenant 11 governor by the Initiative sponsors under AS 15.45.140 on December 15, 1995. 12 * Sec. 31. If secs. 1 - 29 of this Act take effect, they take effect January 1, 1997.