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HB 261: "An Act establishing a clean elections program in the state."

00 HOUSE BILL NO. 261 01 "An Act establishing a clean elections program in the state." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 04 to read: 05 SHORT TITLE. This Act may be known as the Clean Elections Act. 06 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 FINDINGS. The legislature finds that providing a voluntary clean elections system for 09 all primary and general elections would enhance democracy in the state in the following 10 principal ways: 11 (1) it would affirm the principle of "one person, one vote," reduce the 12 disproportionate and deleterious influence of large contributors, and restore the rights of 13 citizens of all backgrounds to equal and meaningful participation in the democratic process; 14 (2) it would slow the escalating cost of elections; 15 (3) it would enable voters and candidates to hear and to be heard in the

01 political process, and restore open and robust debate on issues of public concern; 02 (4) it would diminish the public perception of corruption, strengthen public 03 confidence in democratic institutions and processes, and eliminate the danger of corruption 04 caused by the private financing of election campaigns; 05 (5) it would increase the accountability of elected officials to the constituents 06 who elect them; 07 (6) it would create genuine opportunities for qualified residents of the state to 08 run for state office and encourage more competitive elections; and 09 (7) it would free elected officials from the incessant rigors of fundraising and 10 allow them more time to carry out their official duties. 11 * Sec. 3. AS 15.13.010 is amended by adding a new subsection to read: 12 (e) This chapter does not limit the application of AS 15.14 to contributions, 13 expenditures, and communications made for the purpose of influencing the nomination 14 or election of a candidate for governor, lieutenant governor, or a member of the state 15 legislature. 16 * Sec. 4. AS 15.13.030 is amended to read: 17 Sec. 15.13.030. Duties of the commission. The commission shall 18 (1) develop and provide all forms for the reports and statements 19 required to be made under this chapter, AS 15.14, AS 24.45, and AS 39.50; 20 (2) prepare and publish a manual setting out uniform methods of 21 bookkeeping and reporting for use by persons required to make reports and statements 22 under this chapter and AS 15.14, and otherwise assist candidates, groups, and 23 individuals in complying with the requirements of this chapter and AS 15.14; 24 (3) receive and hold open for public inspection reports and statements 25 required to be made under this chapter and AS 15.14, and, upon request, furnish 26 copies at cost to interested persons; 27 (4) compile and maintain a current list of all filed reports and 28 statements; 29 (5) prepare a summary of each report filed under AS 15.13.110 and 30 AS 15.14 and make copies of this summary available to interested persons at their 31 actual cost;

01 (6) notify, by registered or certified mail, all persons who are 02 delinquent in filing reports and statements required to be made under this chapter and 03 AS 15.14; 04 (7) examine, investigate, and compare all reports, statements, and 05 actions required by this chapter, AS 15.14, AS 24.45, and AS 39.50; 06 (8) prepare and publish a biennial report concerning the activities of 07 the commission, the effectiveness of this chapter, its enforcement by the attorney 08 general's office, and recommendations and proposals for change; the commission shall 09 notify the legislature that the report is available; 10 (9) adopt regulations necessary to implement and clarify the provisions 11 of AS 15.14, AS 24.45, AS 39.50, and this chapter, subject to the provisions of 12 AS 44.62 (Administrative Procedure Act); and 13 (10) consider a written request for an advisory opinion concerning the 14 application of this chapter, AS 15.14, AS 24.45, AS 24.60.200 - 24.60.260, or 15 AS 39.50; and 16 (11) appoint a commissioner to administer AS 15.14 and to make 17 decisions authorized by that chapter or decisions delegated to the commissioner 18 by the commission. 19 * Sec. 5. AS 15.13.045(b) is amended to read: 20 (b) In conjunction with (a) of this section, the commission may compel the 21 attendance of witnesses and production of papers, books, records, accounts, 22 documents, and testimony, and may have the deposition of witnesses taken in a 23 manner prescribed by court rule or law for the taking of depositions in civil actions 24 when consistent with the powers and duties assigned to the commission by this chapter 25 and AS 15.14. 26 * Sec. 6. AS 15.13.045(c) is amended to read: 27 (c) The commission may examine the papers, books, records, accounts, and 28 documents of any person subject to this chapter and AS 15.14 to ascertain the 29 correctness of a report filed with the commission, or in conjunction with an 30 investigation or inspection conducted under (a) of this section. 31 * Sec. 7. AS 15 is amended by adding a new chapter to read:

01 Chapter 14. Clean Elections. 02 Sec. 15.14.010. Clean elections fund. (a) The clean elections fund is created 03 in the general fund. The fund shall be used by the commissioner to finance the election 04 campaigns of candidates certified under this chapter who are running for the office of 05 governor, lieutenant governor, state senator, or state representative, and to pay the 06 administrative and enforcement costs of the commission. 07 (b) The legislature may appropriate money from the following sources to the 08 fund: 09 (1) the qualifying contributions required of candidates applying for 10 certification under AS 15.14.060; 11 (2) unspent funds returned by a participating candidate under this 12 chapter; and 13 (3) fines or monetary penalties levied by the commission against 14 candidates for violations of elections laws. 15 (c) Money appropriated to the fund may be spent without further 16 appropriation. Money in the fund does not lapse. 17 Sec. 15.14.020. Limitations on participating candidates. (a) During an 18 election cycle, a participating candidate may not accept, expend, or agree to expend 19 any contributions or funds other than 20 (1) seed money contributions allowed under AS 15.14.040; 21 (2) clean elections funds received under AS 15.14.080 - 15.14.100; 22 (3) contributions from a political party under AS 15.14.130; and 23 (4) private contributions allowed under AS 15.14.150(b). 24 (b) A participating candidate who receives funds under this chapter during the 25 primary election campaign period shall comply with the requirements of this chapter 26 during the subsequent general election campaign period. 27 (c) A participating candidate may only use contributions and funds received 28 under this chapter during an election cycle to pay expenses or expenditures incurred 29 during that election cycle. Funds received under this chapter may not be used for costs 30 or legal fees related to representation before the commission or for defense of any 31 enforcement action under this chapter. Nothing in this chapter prevents a participating

01 candidate from having a legal defense fund. 02 (d) A participating candidate may not expend funds raised or received before 03 the election cycle. 04 (e) A participating candidate shall comply with the expenditure limits set out 05 in AS 15.14.070. 06 (f) A participating candidate shall continue to be bound by all other applicable 07 election and campaign finance statutes and regulations, except for provisions in 08 express or clear conflict with the provisions of this chapter. 09 Sec. 15.14.030. Declaration of intent. (a) A candidate may become a 10 participating candidate under this chapter by filing a statement declaring the 11 candidate's intent to seek certification under AS 15.14.060 and to comply with the 12 requirements of this chapter. The candidate's declaration of intent may be filed with 13 the commission at any time before the end of the qualifying period under 14 AS 15.14.035 during the election cycle. 15 (b) A candidate may not solicit or collect seed money contributions or 16 qualifying contributions before submitting a declaration of intent. 17 Sec. 15.14.035. Qualifying period. (a) A candidate for governor or lieutenant 18 governor may qualify between August 1 of the year preceeding a year in which the 19 general election is held and June 1 of the year of the general election. 20 (b) A candidate for the office of state senator or state representative may 21 qualify between October 1 of the year preceeding a year in which the general election 22 is held and June 1 of the year in which a general election is held. 23 Sec. 15.14.040. Seed money contributions. (a) A participating candidate may 24 accept contributions not to exceed $100 from an individual at any time during an 25 election cycle before filing an application for certification under AS 15.14.060. Those 26 contributions may be expended by a candidate for the purpose of soliciting qualifying 27 contributions under AS 15.14.050 and for any purpose authorized under AS 15.13. A 28 candidate may not collect or spend seed money contributions after certification as a 29 participating candidate under AS 15.14.060. 30 (b) Seed money contributions and expenditures made under this section must 31 be reported under AS 15.13.

01 (c) A participating candidate may not collect more that the following amounts 02 in seed money contributions: 03 (1) $20,000 if the candidate is seeking the office of governor; 04 (2) $10,000 if the candidate is seeking the office of lieutenant 05 governor; 06 (3) $2,000 if the candidate is seeking the office of state senator; or 07 (4) $1,000 if the candidate is seeking the office of state representative. 08 (d) A participating candidate who exceeds the applicable limit established in 09 (c) of this section shall return the excess funds to the contributors. The participating 10 candidate may return all or part of a seed money contribution, and the returned amount 11 will not be counted as part of the contribution or counted toward the candidate's seed 12 money limit under (c) of this section. The participating candidate shall refund the 13 contribution within three days after the candidate discovers that the candidate's 14 applicable seed money limit has been exceeded. The candidate shall report the receipt 15 and return of all excess seed money contributions to the commission. 16 Sec. 15.14.050. Qualifying contributions. (a) Except as provided in (d) of this 17 section, a participating candidate shall obtain the following number of contributions of 18 exactly $5, to be certified under AS 15.14.060: 19 (1) contributions from 3,000 or more registered voters in the state if 20 the candidate is seeking the office of governor; 21 (2) contributions from 1,500 or more registered voters in the state if 22 the candidate is seeking the office of lieutenant governor; 23 (3) contributions from 400 or more registered voters in the candidate's 24 state senate district if the candidate is seeking the office of state senator; and 25 (4) contributions from 200 or more registered voters in the candidate's 26 state house district if the candidate is seeking the office of state representative. 27 (b) A qualifying contribution must be accompanied by a form prescribed by 28 the commission that includes 29 (1) the name and address of the contributor; 30 (2) a signed and dated statement by the contributor supporting the 31 candidate's participation in the clean elections program; and

01 (3) the amount of the qualifying contribution. 02 (c) Contributions under this section may be accepted only by the candidate, 03 the candidate's campaign treasurer, or a deputy treasurer of the candidate's campaign. 04 A payment, gift, or anything of value may not be given in exchange for a qualifying 05 contribution. A contribution received in violation of this subsection is not a qualifying 06 contribution and may not be reported or treated by the candidate as a qualifying 07 contribution. 08 (d) The commission shall adopt regulations providing for a qualifying 09 contribution of less than $5 from a low-income registered voter, as defined by the 10 commission. The qualifying contribution form adopted by the commission under (b) 11 of this section must allow a registered voter to certify that the voter meets the 12 requirements established under this subsection. A statement supporting a candidate's 13 participation in the clean elections program that is made by a registered voter qualified 14 under this subsection shall be treated as a qualifying contribution under (a) of this 15 section, notwithstanding that the voter did not make a $5 contribution to the candidate. 16 (e) In this section, "registered voter" means a person who is a registered voter 17 at the time the person provides a qualifying contribution to the candidate or who 18 becomes a registered voter at least five days before the participating candidate applies 19 to become a certified candidate under AS 15.14.060. 20 Sec. 15.14.060. Certification of candidates. (a) To become a certified 21 candidate, a participating candidate shall apply for certification on a form prescribed 22 by the commission. The form must 23 (1) be filed during the qualifying period under AS 15.14.035; 24 (2) be signed by the participating candidate and the participating 25 candidate's treasurer; 26 (3) identify the office the participating candidate is seeking; 27 (4) identify the participating candidate's party, if any; 28 (5) include the participating candidate's declaration that the candidate 29 has abided by and will continue to abide by the requirements of this chapter through 30 the election cycle; and 31 (6) be accompanied by

01 (A) a campaign finance report as provided in (c) of this section; 02 and 03 (B) the number of qualifying contributions and accompanying 04 voter statements required under AS 15.14.050. 05 (b) The commissioner shall certify a candidate if the commissioner determines 06 that the participating candidate has 07 (1) signed and filed a declaration of intent under AS 15.14.030; 08 (2) collected the required number of qualifying contributions under 09 AS 15.14.050; 10 (3) tendered the sum of the qualifying contributions to the 11 commission; 12 (4) met all other applicable requirements for participation established 13 under this chapter; and 14 (5) agreed to abide by all requirements for participating candidates. 15 (c) The campaign finance report required under (a)(6)(A) of this section must 16 be in the form required under AS 15.13.040. The report must account for a 17 participating candidate's seed money contributions received and expenditures incurred 18 since the last report filed under AS 15.13.110, or, if no prior report has been filed, the 19 report must account for all seed money contributions received and expenditures 20 incurred through the third day before the date that the report is filed. 21 (d) A candidate who the commission determines has fewer than the required 22 number of qualifying contributions under AS 15.14.040 may submit additional 23 qualifying contributions during the qualifying period. 24 (e) In an election year, the commissioner shall certify a candidate who 25 complies with the requirements of this section not later than 26 (1) five business days after the candidate's submission of the form, 27 campaign finance report, and qualifying contributions required under (a) of this 28 section if the application is submitted before May 20; and 29 (2) 10 business days after the candidate's submission of the form, 30 campaign finance report, and qualifying contributions required under (a) of this 31 section if the application is submitted on or after May 20.

01 (f) A candidate who is denied certification by the commissioner is no longer 02 bound by the provisions of this chapter pertaining to participating candidates. The 03 commissioner shall return the qualifying contributions submitted by a candidate who 04 is denied certification. 05 (g) The director of the division of elections shall assist the commissioner in 06 carrying out the commission's duties under this section by 07 (1) verifying, within the time periods set out in AS 15.14.060(f), that 08 the maker of a qualifying contribution is a registered voter in the electoral district of 09 the candidate who has submitted the qualifying contribution; and 10 (2) verifying that the candidate has properly filed for the office the 11 candidate is seeking. 12 Sec. 15.14.070. Limits on expenditures. (a) A certified candidate shall 13 comply with the limits on campaign expenditures set out in this section, as adjusted in 14 accordance with AS 15.14.100, 15.14.130, and 15.14.230. 15 (b) Total expenditures for participating candidates during the primary election 16 campaign period may not exceed the following amounts: 17 (1) $275,000 for a candidate for the office of governor; 18 (2) $165,000 for a candidate for the office of lieutenant governor; 19 (3) $26,400 for a candidate for the office of a state senator; and 20 (4) $17,600 for a candidate for the office of a state representative. 21 (c) Total expenditures for certified candidates during the general election 22 period may not exceed the following amounts: 23 (1) $550,000 for candidates in a joint campaign for the offices of 24 governor and lieutenant governor; 25 (2) $39,600 for a candidate for the office of state senator; and 26 (3) $26,400 for a candidate for the office of state representative. 27 Sec. 15.14.080. Distribution of clean elections program funds to certified 28 candidates. (a) A candidate certified by the commission is eligible to receive 29 distributions from the fund established under this chapter up to the following amounts: 30 (1) funds for certified candidates in the primary election are limited to 31 (A) $250,000 for a candidate for the office of governor;

01 (B) $150,000 for a candidate for the office of lieutenant 02 governor; 03 (C) $24,000 for a candidate for the office of state senator; and 04 (D) $16,000 for a candidate for the office of state 05 representative; 06 (2) funds for certified candidates in the general election are limited to 07 (A) $500,000 for candidates in a joint campaign for the offices 08 of governor and lieutenant governor; 09 (B) $36,000 for a candidate for the office of state senator; and 10 (C) $24,000 for a candidate for the office of state 11 representative. 12 (b) The commission may by regulation establish procedures requiring the use 13 of debit cards by certified candidates for all or part of the funds disbursed under this 14 section. The commission may limit the use of debit cards to those election districts 15 where it determines their use is reasonable. 16 (c) A candidate who secures the nomination of a political party for an office in 17 a primary election is eligible for funds under this chapter for use in the general 18 election only if the combined votes of all of the party's candidates in the primary 19 election for that office is equal to at least 10 percent of the total number of votes cast 20 for the candidates of all parties in the primary election for that office. 21 Sec. 15.14.090. Timing of distributions. (a) The commissioner shall make 22 distributions from the fund to certified candidates as follows: 23 (1) 25 percent of the applicable amount provided in 24 AS 15.14.080(a)(1) upon a candidate's certification under AS 15.14.060; and 25 (2) an additional 75 percent of the applicable amount provided in 26 AS 15.14.080(a)(1) to each certified candidate with an opponent who will appear on 27 the primary election ballot within two business days after the end of the qualifying 28 period under AS 15.14.035 or upon the candidate's certification, whichever is later. 29 (b) Within two business days after the director's certification of the results of 30 the primary election, the commissioner shall distribute: 31 (1) 25 percent of the applicable amount provided in

01 AS 15.14.080(a)(2) to each certified candidate who will appear on the ballot in the 02 general election without an opponent; and 03 (2) 100 percent of the applicable amount provided in 04 AS 15.14.080(a)(2) to each certified candidate who will appear on the ballot in the 05 general election with an opponent. 06 (c) The commissioner shall deduct from the amount distributed under (a) of 07 this section the amount of any unspent or unobligated seed money contributions under 08 AS 15.14.040 held by a participating candidate at the time the candidate files an 09 application for certification under AS 15.14.060. The commissioner shall deduct from 10 the amounts distributed under (b) of this section the amount of any unspent or 11 unobligated primary election funds held by a certified candidate and the amount of any 12 prepaid general election expenses reported by the certified candidate. 13 (d) The commissioner shall distribute any matching funds under AS 15.14.100 14 within two business days after the earlier of 15 (1) the receipt of a spending limit report by the commission under 16 AS 15.14.095 showing that a nonparticipating opposing candidate has exceeded 17 expenditure limits under AS 15.14.070; or 18 (2) a determination by the commission of excess spending on behalf of 19 or by a nonparticipating opposing candidate. 20 Sec. 15.14.095. Spending limit reports. (a) If a nonparticipating candidate in 21 a primary or general election campaign in which there is at least one participating 22 candidate makes an expenditure or incurs an obligation that causes the 23 nonparticipating candidate's total expenses to exceed 90 percent of the applicable 24 expenditure limit for a participating candidate under AS 15.14.070, the 25 nonparticipating candidate shall, in addition to the reports required under 26 AS 15.13.040 and AS 15.13.110, within two days after exceeding that amount, begin 27 filing spending limit reports with the commission. 28 (b) If a nonparticipating candidate who is conducting a write-in campaign is 29 running against a certified candidate who does not have an opponent on the general 30 election ballot and the nonparticipating candidate makes an expenditure or incurs an 31 obligation that causes the nonparticipating candidate's total expenses to exceed 20

01 percent of the expenditure limit for the office under AS 15.14.070(c), the 02 nonparticipating candidate shall, in addition to the reports required under 03 AS 15.13.040 and AS 15.13.110, within two days after exceeding that amount, begin 04 filing spending limit reports with the commission. 05 (c) If the commissioner determines under AS 15.14.097 that a nonparticipating 06 candidate has incurred expenses that exceed 90 percent of the applicable expenditure 07 limit for a participating candidate under AS 15.14.070, after notice, the 08 nonparticipating candidate shall, in addition to the reports required under 09 AS 15.13.040 and AS 15.13.110, begin filing spending limit reports with the 10 commission. 11 (d) A nonparticipating candidate under (a), (b), or (c) of this section shall file a 12 spending limit report on the Monday of each succeeding week until 14 days before the 13 election and, beginning 14 days before the election, every two business days until the 14 day of the election. 15 (e) A spending limit report under this section must include a statement of the 16 total dollar amount of all expenses incurred through the day before the date of the 17 report. 18 (f) Spending limit reports shall be filed electronically with the commission. 19 Sec. 15.14.097. Determination of excess expenditures by the commissioner. 20 The commissioner may, after notice to a nonparticipating candidate and an 21 opportunity for a hearing, make a determination that the nonparticipating candidate 22 has incurred excess expenses based on 23 (1) a nonparticipating candidate's report of expenditures; 24 (2) a determination regarding independent expenditures under 25 AS 15.14.110; or 26 (3) the commissioner's own investigation. 27 Sec. 15.14.100. Matching funds. (a) If a nonparticipating candidate files a 28 spending limit report under AS 15.14.095(a) or if the commissioner determines under 29 AS 15.14.097 that a nonparticipating candidate has incurred expenses that exceed the 30 expenditure limits for participating candidates set out under AS 15.14.070(b) or (c), 31 the commissioner shall, within two business days, distribute to each certified candidate

01 in that election contest an amount equal to the amount of the nonparticipating 02 candidate's excess expenses. The expenditure limits set out in AS 15.14.070(b) or (c) 03 for each certified candidate in that election contest shall be increased by the amount 04 distributed to each candidate. 05 (b) The amounts distributed under (a) of this section shall be limited as 06 follows: 07 (1) the total amount of funds distributed to a certified candidate during 08 the primary election campaign, including matching funds distributed under this 09 section, may not exceed three times the primary election expenditure limits under 10 AS 15.14.070(b); 11 (2) the total amount of funds distributed to a certified candidate during 12 the general election campaign period, including matching funds distributed under this 13 section, may not exceed three times the general election expenditure limits under 14 AS 15.14.070(c); and 15 (3) in an election contest with more than one nonparticipating 16 candidate, each certified candidate shall receive matching funds under this section 17 only up to the amount of the excess expenses made by the nonparticipating candidate 18 having the highest excess expenses. 19 (c) On receipt of a spending limit report from a nonparticipating candidate 20 under AS 15.14.095(b), the commissioner shall disburse to each certified candidate 75 21 percent of the amount set out in AS 15.14.080(a)(2). 22 (d) An expenditure limit that is increased under this section is only increased 23 for the current election cycle. 24 Sec. 15.14.110. Independent expenditures. (a) Any person or group that 25 makes an independent expenditure under AS 15.13.135 exceeding $500 during an 26 election cycle involving a participating candidate shall report the expenditure to the 27 commission as provided in (b) of this section. The report shall be filed in addition to 28 any reports required under AS 15.13.040 and AS 15.13.110. The report must include a 29 signed statement from the person or group making the independent expenditure 30 identifying the candidate or candidates that the independent expenditure is intended to 31 help elect or defeat, if any, and affirming that the expenditure is totally independent

01 and does not involve cooperation or coordination with a candidate or a political party. 02 (b) If an independent expenditure is made 45 days or more before a primary or 03 general election, the report required under (a) of this section must be filed within 04 seven days. If the expenditure is made less than 45 days before a primary or general 05 election, the report must be filed within two days. 06 (c) A certified candidate may file a complaint with the commission that 07 (1) an independent expenditure has not been reported; 08 (2) the amount of an independent expenditure has been underreported; 09 or 10 (3) the report under (a) of this section does not correctly identify the 11 candidate the expenditure is intended to help elect or defeat. 12 (d) A complaint under (c) of this section must include a statement of facts 13 supporting the complaint, the name of the candidate the complainant believes the 14 expenditure is intended to help elect or defeat, and, if available to the complainant, a 15 copy of the communication alleged to have been funded by the independent 16 expenditure. The commissioner shall give the person or group making the expenditure 17 an opportunity to be heard. Within seven days after the filing of the complaint, the 18 commissioner shall decide whether the subject of the complaint is an independent 19 expenditure under this section and, if necessary, whom the expenditure is intended to 20 help elect or defeat. A decision of the commissioner under this subsection is valid only 21 for the purpose of determining the appropriate treatment of the expenditure under (e) 22 of this section. 23 (e) If an independent expenditure is reported under (a) of this section or an 24 expenditure is determined to be an independent expenditure under (d) of this section, 25 the commissioner, in determining whether a participating candidate is entitled to 26 matching funds under AS 15.14.100, shall 27 (1) treat an independent expenditure against a participating candidate 28 as the expenditure of the highest spending nonparticipating candidate in that election 29 contest; 30 (2) treat an independent expenditure made in support of a 31 nonparticipating candidate as if it were the expenditure of that candidate;

01 (3) in an election contest with more than one participating candidate, 02 treat an independent expenditure made in support of a participating candidate as if it 03 were an excess expenditure of a nonparticipating opposing candidate of any other 04 participating candidate in that election contest; 05 (4) in an election contest with more than one participating candidate, 06 treat an independent expenditure against a participating candidate as if it were an 07 excess expenditure of a nonparticipating opposing candidate of that participating 08 candidate. 09 Sec. 15.14.120. Permitted use of funds. (a) A participating candidate may use 10 contributions and clean election funds received under this chapter only for the 11 purposes set out in AS 15.13.112. 12 (b) If the commission determines that a participating candidate used clean 13 election funds in violation of AS 15.13.112, the commission shall notify the 14 participating candidate, and the candidate shall, after notice and opportunity for 15 hearing, reimburse the clean elections fund the amount determined by the commission. 16 Sec. 15.14.130. Contributions by political parties. A participating candidate 17 may accept contributions from a political party during the primary and general 18 election campaign periods if the total amount of contributions received by the 19 candidate does not exceed 10 percent of the clean elections fund disbursement for the 20 office the participating candidate seeks under AS 15.14.080(a)(1) for the primary 21 election or AS 15.14.080(a)(2) for the general election. 22 Sec. 15.14.140. Repayment of unused funds. (a) Within 14 days after the 23 director's certification of the results of the primary election, a participating candidate 24 who is not successful in the primary election shall return to the commission all clean 25 election funds that were not spent or obligated to be spent during the primary election 26 campaign period. 27 (b) Within 14 days after the certification of the results of the general election, 28 a participating candidate shall return to the commission all clean election funds that 29 were not spent or obligated to be spent during the general election campaign period. 30 Sec. 15.14.150. Candidates by petition. (a) A candidate who is seeking to be 31 nominated by petition under AS 15.25.140 - 15.25.200 may become a participating

01 certified candidate by complying with the requirements of AS 15.14.020 - 15.14.060. 02 The commissioner may not certify a candidate under this subsection until the director 03 of elections has verified that the candidate has qualified for the general election ballot. 04 A candidate nominated by petition is eligible only for funding under 05 AS 15.14.080(a)(2). 06 (b) A certified candidate who has been nominated by petition may solicit and 07 accept private contributions for the general election if the total amount of 08 contributions received by the candidate does not exceed 10 percent of the clean 09 elections fund disbursement for the office the candidate seeks under 10 AS 15.14.080(a)(2). 11 Sec. 15.14.160. Governor and lieutenant governor joined campaigns. (a) If 12 a political party nominates candidates for governor and lieutenant governor who were 13 both participating candidates during the primary election campaign period, the 14 candidates shall form a joined campaign for the general election. The joined campaign 15 is a "participating candidate" under this chapter and is eligible to receive general 16 election funding under AS 15.14.080(a)(2). 17 (b) If a political party nominates candidates for governor and lieutenant 18 governor and only one of the candidates was a certified candidate under this chapter 19 during the primary election campaign period, the candidates may form a joined 20 campaign that is eligible to receive general election funding under AS 15.14.080(a)(2) 21 if the nonparticipating candidate complies with the requirements of (c) or (d) of this 22 section. 23 (c) If a nonparticipating candidate declines to form a joined campaign with a 24 participating candidate subject to this chapter, the candidates shall maintain separate 25 campaign accounts and may not coordinate campaign expenditures. The participating 26 candidate is eligible to receive the amount authorized for a joined campaign under 27 AS 15.14.080(a)(2). An expenditure by the nonparticipating candidate during the 28 general election campaign period shall be treated as an expenditure of the participating 29 candidate under AS 15.14.110. 30 (d) If, from the beginning of the election cycle through the end of the primary 31 election campaign period, a nonparticipating candidate who has declined to form a

01 joined campaign with a participating candidate spent less than the amount set out in 02 AS 15.14.070(b)(1) or (2), the nonparticipating candidate may transfer unspent 03 contributions to the joined campaign up to the amount set out in AS 15.14.070(b)(1) or 04 (2) less the amount spent by the participating candidate and amount of general election 05 expenses prepaid by the participating candidate. Any remaining unspent or 06 unobligated private contributions held by the nonparticipating candidate shall be 07 disbursed in accordance with AS 15.13.116. 08 (e) If, from the beginning of the election cycle through the end of the primary 09 election campaign period, the nonparticipating candidate spent more than the amount 10 set out in AS 15.14.070(b)(1) or (2), the joined campaign is eligible to receive the 11 amount set out in AS 15.14.080(a)(2) less the amount the candidates spent on prepaid 12 general election expenses. 13 (f) If a political party nominates candidates for governor and lieutenant 14 governor and neither candidate was a participating candidate during the primary 15 election period, a joined campaign formed by the two nonparticipating candidates is 16 not eligible for funding under this chapter. 17 Sec. 15.14.170. Write-in candidates. (a) A candidate who is conducting a 18 write-in campaign is not eligible for clean elections funds and shall be treated as a 19 nonparticipating candidate under this chapter. 20 (b) If a candidate who is conducting a write-in campaign is running against a 21 certified candidate who has an opponent on the general election ballot, the write-in 22 candidate shall comply with the reporting requirements of AS 15.14.095. 23 Sec. 15.14.180. Withdrawal by participating candidate. (a) A candidate may 24 withdraw from participation as a clean elections candidate at any time within 10 days 25 after the end of the qualifying period under AS 15.14.035 by delivering to the 26 commission a notice of the candidate's intent to withdraw. The candidate may not 27 accept any private contributions until three days after the notice of the candidate's 28 intent to withdraw is received by the commission. A candidate who has submitted a 29 notice of the candidate's intent to withdraw may not receive any further clean elections 30 funds. 31 (b) A participating candidate who withdraws before submitting qualifying

01 contributions to the commission shall use the candidate's best efforts to return all 02 qualifying contributions the candidate has collected to the contributors within 30 days 03 after the candidate's withdrawal. If a contributor cannot be located, the qualifying 04 contributions collected by the candidate shall be remitted to the fund. Any qualifying 05 contributions already submitted by a participating candidate who withdraws shall 06 remain in the fund. 07 (c) A certified candidate who has already received clean elections funds 08 before filing a notice of an intent to withdraw shall immediately stop spending these 09 funds on submission of the notice. The candidate shall return all unspent clean 10 elections funds to the commission within five days after submitting the notice of the 11 candidate's intent to withdraw. The candidate shall repay to the commission all clean 12 elections funds received and spent by the candidate within 30 days after submitting the 13 notice of the candidate's intent to withdraw. A candidate who has not repaid all clean 14 elections funds within 30 days after withdrawing may not spend private contributions 15 for any purpose until the clean elections funds have been repaid. 16 (d) The commission shall adopt regulations governing the form of a notice of 17 an intent to withdraw. 18 Sec. 15.14.190. Ballot identification. The director of elections shall inform 19 voters of which candidates on the ballot are participating in the clean elections 20 program established under this chapter by placing the following sentence below the 21 name of each participating candidate on the ballot in the primary and general 22 elections: "This candidate is participating in the state's voluntary public financing 23 program." 24 Sec. 15.14.200. Insufficient funding. If, during the election year, the 25 commission determines that there is not enough money appropriated to fully fund all 26 participating candidates, the commission shall issue a declaration of insufficient 27 funding and authorize participating candidates to solicit and accept private 28 contributions permitted under AS 15.13. If the commission issues a declaration of 29 insufficient funding, a participating candidate may not accept more in private 30 contributions than is authorized under the candidate's spending limit under this 31 chapter.

01 Sec. 15.14.210. Civil penalties. (a) Except as provided in (b) of this section, a 02 person who violates a provision of this chapter or a regulation adopted under this 03 chapter is subject to a civil penalty not to exceed $5,000. The legislature may 04 appropriate money received to the clean elections fund. 05 (b) In addition to any other penalty imposed by law, a certified candidate who 06 exceeds the expenditure limits established under this chapter shall pay as a civil 07 penalty to the fund an amount equal to 08 (1) the amount by which the certified candidate exceeded the limit if 09 the limit is exceeded by more than one percent but less than three percent; 10 (2) three times the amount by which the certified candidate exceeded 11 the limit if the limit is exceeded by more than three percent but less than five percent; 12 or 13 (3) five times the amount by which the certified candidate exceeded 14 the limit if the limit is exceeded by more than five percent. 15 (c) A certified candidate who violates the expenditure limits established under 16 this chapter by more than 10 percent is disqualified as a candidate and, if elected, shall 17 forfeit the office to which the candidate was elected. 18 (d) In addition to any other penalty imposed by law, if a nonparticipating 19 candidate fails to file a timely and accurate report under AS 15.14.100 and the failure 20 to do so results in the late payment or nonpayment of matching funds, the 21 nonparticipating candidate shall pay as a civil penalty an amount equal to 22 (1) the amount of matching funds not paid or paid late to a single 23 certified candidate running for the same office, if the amount of the matching funds is 24 $2,000 or less; 25 (2) three times the amount of matching funds not paid or paid late to a 26 single certified candidate running for the same office, if the amount of the matching 27 funds is more than $2,000 but less than $5,000; 28 (3) five times the amount of matching funds not paid or paid late to a 29 single certified candidate running for the same office, if the amount of the matching 30 funds is $5,000 or more but less than $10,000; or 31 (4) 10 times the amount of matching funds not paid or paid late to a

01 single certified candidate running for the same office, if the amount of the matching 02 funds is $10,000 or more. 03 (e) In addition to any other penalty imposed by law, a person or group who 04 makes an independent expenditure under AS 15.14.110(a) and does not file a timely 05 and accurate report under AS 15.14.110 resulting in the late payment or nonpayment 06 of matching funds to a certified candidate, the person or group making the 07 independent expenditure shall pay as a civil penalty an amount equal to 08 (1) the amount of matching funds not paid or paid late to a single 09 certified candidate, if the amount of the matching funds is $2,000 or less; 10 (2) three times the amount of matching funds not paid or paid late to a 11 single certified candidate, if the amount of the matching funds is more than $2,000 but 12 less than $5,000; 13 (3) five times the amount of matching funds not paid or paid late to a 14 single certified candidate, if the amount of the matching funds is $5,000 or more but 15 less than $10,000; or 16 (4) 10 times the amount of matching funds not paid or paid late to a 17 single certified candidate, if the amount of the matching funds is $10,000 or more. 18 (f) In addition to a fine, the commission may require a certified candidate 19 found to be in violation of this chapter or a regulation adopted under this chapter to 20 repay to the fund all or part of the clean elections funds distributed to the candidate. 21 Sec. 15.14.220. Administrative procedure and appeals. (a) A candidate who 22 has been denied certification under AS 15.14.060, the opponent of a candidate who 23 has been granted certification under AS 15.14.060, or a registered voter residing in the 24 electoral district of a certified candidate may challenge a certification decision under 25 this chapter. 26 (b) A certification decision may be appealed to the full commission within 27 seven days after the certification decision. The appeal must be in writing and must set 28 out the reasons for the appeal. 29 (c) Within five days after an appeal is properly made and notice is given to the 30 appellant and any candidate in the electoral district, the commission shall hold a 31 hearing. The appellant has the burden of demonstrating that the commissioner's

01 decision was improper. The commission shall rule on the appeal within three days 02 after the completion of the hearing. 03 (d) A candidate whose certification is revoked on appeal shall return any 04 unspent distributions from the fund. 05 (e) A decision of the commissioner to disburse matching funds under 06 AS 15.14.100 may be appealed to the commission by a candidate opposed to the 07 distribution or by a person or group making an independent expenditure under 08 AS 15.14.110. A decision by the commissioner to disburse matching funds shall be 09 implemented, notwithstanding the filing of an appeal, unless the commission issues a 10 stay of the commissioner's decision. 11 (f) Any other decision of the commissioner may be appealed to the 12 commission. The commission shall adopt regulations establishing appeal procedures. 13 (g) A person or group who believes that a violation of this chapter or a 14 regulation adopted under this chapter has occurred or is occurring may file an 15 administrative complaint with the commission within one year after the date of the 16 alleged violation. The commission may consider a complaint on an expedited basis or 17 a regular basis. The complaint shall be considered in accordance with the procedures 18 set out at AS 15.13.380(b) - (h). 19 (h) A decision of the commission under (c) of this section may be appealed to 20 the superior court. The court may consider the appeal on an expedited basis. 21 Sec. 15.14.230. Adjustment for inflation. Beginning in January 2011 and 22 every four years thereafter, the commission shall modify the dollar values specified in 23 AS 15.14.040, 15.14.070, and 15.14.080 to account for inflation. The commission 24 shall adopt by regulation a method to determine the amount of the adjustment. 25 Sec. 15.14.240. Regulations. The commissioner shall adopt regulations to 26 ensure effective administration of this chapter. The regulations must include 27 procedures for obtaining qualifying contributions, certification of candidates, recounts, 28 withdrawal or replacement of candidates, disbursement of clean elections funds, 29 reporting of prepaid general election expenses, return of unspent fund disbursements, 30 processing complaints alleging violations of this chapter, recordkeeping, and 31 compliance with this chapter.

01 Sec. 15.14.250. Report to the legislature. By January 30, 2010, and every 02 four years after that date, the commission shall submit a report to the legislature 03 documenting, evaluating, and making recommendations relating to the administration, 04 implementation, and enforcement of this chapter and clean election fund established in 05 AS 15.14.510. 06 Sec. 15.14.400. Definitions. In this chapter, 07 (1) "clean elections" means the optional system of contribution and 08 expenditure limits and public campaign financing established under this chapter; 09 (2) "commission" means the Alaska Public Offices Commission; 10 (3) "commissioner" means the person appointed by the commission 11 under AS 15.13.030(11); 12 (4) "contribution" has the meaning given in AS 15.13.400; 13 (5) "election cycle," as applied to a candidate for state office, is the 14 period beginning on the 31st day following a general election for that office and 15 ending on the 30th day following the next general election for that office; 16 (6) "election year" means the calendar year during which a state 17 general election for a particular office is held; 18 (7) "expenditure" has the meaning given in AS 15.13.400; 19 (8) "fund" means the clean elections fund established in AS 15.14.010; 20 (9) "general election campaign period" means the period beginning the 21 day following the primary election and ending on the day of the general election; 22 (10) "independent expenditure" has the meaning given in 23 AS 15.13.400; 24 (11) "nonparticipating candidate" means a candidate, as that term is 25 defined in AS 15.13.400, who has not been certified under AS 15.14.060; 26 (12) "obligated expenditure" means an expenditure that a candidate is 27 legally obligated to make or has otherwise agreed to make, but has not yet made; 28 (13) "participating candidate" means a candidate, as that term is 29 defined in AS 15.13.400, who has agreed to participate in the clean elections program, 30 who has submitted and not withdrawn a declaration of intent, and who has not been 31 denied certification by the commission;

01 (14) "prepaid general election expenses" means payments made by a 02 candidate before the end of the primary election campaign period for goods or services 03 that will be delivered or provided during the general election campaign period and 04 includes 05 (A) rental payments; 06 (B) radio, television, newspaper, and other forms of 07 advertising; 08 (C) wages, salaries, and personnel costs; 09 (D) consulting services; 10 (E) other payments defined by the commission by regulation; 11 (15) "primary election campaign period" means the period beginning 12 the day following the qualifying period and ending the day of the primary election; 13 (16) "qualifying contribution" means an allowable contribution under 14 AS 15.14.050 to a participating candidate that is made after the candidate submits a 15 declaration of intent and before the end of the qualifying period; 16 (17) "qualifying period" means the period during which a candidate 17 may collect qualifying contributions for the purpose of becoming a certified candidate; 18 for a candidate for statewide office, the period begins on August 1 of the year 19 preceding a year in which a general election is held and ends on June 1 of the general 20 election year; for a candidate for the legislature, the period begins on October 1 of the 21 year preceding a year in which a general election is held and ends on June 1 of the 22 general election year; 23 (18) "seed money contribution" means a contribution of not more than 24 $100 from each individual made to a candidate, including a contribution from the 25 candidate or the candidate's relative; 26 (19) "statewide office" means the office of governor or lieutenant 27 governor. 28 * Sec. 8. AS 15.56.012(a) is amended to read: 29 (a) Except as provided in AS 15.56.014 and 15.56.016, a person commits the 30 crime of campaign misconduct in the first degree if the person knowingly engages in 31 conduct that violates a provision of AS 15.13 or AS 15.14, or a regulation adopted

01 under authority of AS 15.13 AS 15.14. 02 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 APPLICABILITY. This Act applies immediately to election cycles for the offices of 05 state senator and state representative, and after December 31, 2010, for election cycles for the 06 offices of governor and lieutenant governor.