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SSHB 261: "An Act establishing a program of public funding for the financing of election campaigns of candidates for state elected offices, to be known as the Clean Elections Act."

00 SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 261 01 "An Act establishing a program of public funding for the financing of election 02 campaigns of candidates for state elected offices, to be known as the Clean Elections 03 Act." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 FINDINGS. The legislature finds that providing a voluntary clean elections system for 08 all primary and general elections would enhance democracy in the state in the following 09 principal ways: 10 (1) it would affirm the principle of "one person, one vote," reduce the 11 disproportionate and deleterious influence of large contributors, and restore the rights of 12 citizens of all backgrounds to equal and meaningful participation in the democratic process; 13 (2) it would slow the escalating cost of elections; 14 (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. 2. AS 15 is amended by adding a new chapter to read: 12 Chapter 70. Clean Elections. 13 Sec. 15.70.010. Clean elections fund. (a) The clean elections fund is created 14 in the general fund. The administrator shall use the fund to finance the election 15 campaigns of candidates certified under this chapter who are running for the office of 16 governor, lieutenant governor, state senator, or state representative, and to pay the 17 administrative and enforcement costs of this chapter incurred by the commission. 18 (b) The legislature may appropriate money from the following sources to the 19 fund: 20 (1) the amount of the qualifying contributions required to be tendered 21 by candidates applying for certification under AS 15.70.070; 22 (2) unspent funds returned by a participating candidate under this 23 chapter; and 24 (3) fines or monetary penalties levied by the commission against 25 candidates for violations of this chapter. 26 (c) Money appropriated to the fund may be spent without further 27 appropriation. 28 (d) Money in the fund does not lapse. 29 Sec. 15.70.020. Limitations on participating candidates. (a) During an 30 election cycle, a participating candidate may not accept, expend, or agree to expend 31 any contributions or funds other than

01 (1) seed money contributions allowed under AS 15.70.050; 02 (2) funds received under AS 15.70.090 - 15.70.130; 03 (3) contributions from a political party under AS 15.70.160; and 04 (4) private contributions allowed under AS 15.70.180(b). 05 (b) A participating candidate who receives funds under this chapter during the 06 primary election campaign period shall comply with the requirements of this chapter 07 during the subsequent general election campaign period. 08 (c) A participating candidate may only use contributions and funds received 09 under this chapter during an election cycle to pay expenses or expenditures incurred 10 during that election cycle. 11 (d) A participating candidate may not use funds received under this chapter for 12 costs or legal fees related to representation before the commission or for defense of 13 any enforcement action under this chapter. 14 (e) A participating candidate may not expend funds raised or received before 15 the election cycle. 16 (f) A participating candidate shall comply with the expenditure limits set out 17 in AS 15.70.080. 18 (g) A participating candidate shall continue to be bound by all other applicable 19 election and campaign finance statutes and regulations, except for provisions in 20 express or clear conflict with the provisions of this chapter. 21 (h) Nothing in this chapter prevents a participating candidate from having a 22 legal defense fund. 23 Sec. 15.70.030. Declaration of intent. (a) A candidate may become a 24 participating candidate under this chapter by filing a statement declaring the 25 candidate's intent to seek certification under AS 15.70.070 and to comply with the 26 requirements of this chapter. The candidate may file the candidate's declaration of 27 intent with the commission at any time before the end of the qualifying period under 28 AS 15.70.040 during the election cycle. 29 (b) Before submitting a declaration of intent under (a) of this section, a 30 candidate who intends to participate in the clean elections program may not solicit or 31 collect

01 (1) seed money contributions; or 02 (2) qualifying contributions. 03 Sec. 15.70.040. Qualifying period. (a) A candidate for governor or lieutenant 04 governor may qualify between August 1 of the year preceding a year in which the 05 general election is held and June 1 of the year of the general election. 06 (b) A candidate for the office of state senator or state representative may 07 qualify between October 1 of the year preceding a year in which the general election is 08 held and June 1 of the year in which a general election is held. 09 Sec. 15.70.050. Seed money contributions. (a) A participating candidate may 10 accept a contribution not to exceed $100 from an individual at any time during an 11 election cycle before filing an application for certification under AS 15.70.070. A 12 participating candidate may expend the seed money contributions for the purpose of 13 soliciting qualifying contributions under AS 15.70.060 and for any purpose authorized 14 by AS 15.13. A candidate may not accept or expend seed money contributions after 15 the candidate is certified under AS 15.70.070. 16 (b) Seed money contributions and expenditures made under this section must 17 be reported under AS 15.13. 18 (c) A participating candidate may not collect more than the following amounts 19 in seed money contributions: 20 (1) $20,000 if the candidate is seeking the office of governor; 21 (2) $10,000 if the candidate is seeking the office of lieutenant 22 governor; 23 (3) $2,000 if the candidate is seeking the office of state senator; or 24 (4) $1,000 if the candidate is seeking the office of state representative. 25 (d) A participating candidate who exceeds the applicable limit established in 26 (c) of this section shall return the excess funds to the contributors. The participating 27 candidate may return all or part of a seed money contribution, and the returned amount 28 is not counted as part of the contribution or counted toward the candidate's seed 29 money limit under (c) of this section. The participating candidate shall refund the 30 contribution within three days after the candidate discovers that the candidate's 31 applicable seed money limit has been exceeded. The candidate shall report to the

01 commission the receipt and return of all excess seed money contributions. 02 Sec. 15.70.060. Qualifying contributions. (a) Except as provided in (d) of this 03 section, to be certified under AS 15.70.070, a participating candidate shall obtain the 04 following number of contributions of exactly $5: 05 (1) contributions from 3,000 or more registered voters in the state if 06 the candidate is seeking the office of governor; 07 (2) contributions from 1,500 or more registered voters in the state if 08 the candidate is seeking the office of lieutenant governor; 09 (3) contributions from 400 or more registered voters in the candidate's 10 state senate district if the candidate is seeking the office of state senator; and 11 (4) contributions from 200 or more registered voters in the candidate's 12 state house district if the candidate is seeking the office of state representative. 13 (b) A qualifying contribution may only be accepted if accompanied by a form 14 prescribed by the commission that includes 15 (1) the name and address of the contributor; 16 (2) a signed and dated statement by the contributor supporting the 17 candidate's participation in the program; and 18 (3) the amount of the qualifying contribution. 19 (c) A contribution under this section may be accepted only by the candidate, 20 the candidate's campaign treasurer, or a deputy treasurer of the candidate's campaign. 21 A payment, gift, or anything of value may not be given in exchange for a qualifying 22 contribution. A contribution received in violation of this subsection is not a qualifying 23 contribution and may not be reported or treated by the candidate as a qualifying 24 contribution. 25 (d) The commission shall adopt regulations providing for a qualifying 26 contribution of less than $5 from a low-income registered voter, as defined by the 27 commission. The qualifying contribution form required under (b) of this section must 28 allow a registered voter to certify that the voter meets the requirements established 29 under this subsection. A statement supporting a candidate's participation in the 30 program that is made by a registered voter qualified under this subsection shall be 31 treated as a qualifying contribution under (a) of this section, notwithstanding that the

01 voter did not make a $5 contribution to the candidate. 02 (e) In this section, "registered voter" means a person who is a registered voter 03 at the time the person provides a qualifying contribution to the candidate or who 04 becomes a registered voter at least five days before the participating candidate applies 05 to become a certified candidate under AS 15.70.070. 06 Sec. 15.70.070. Certification of candidates. (a) To become a certified 07 candidate, a participating candidate shall apply for certification on a form prescribed 08 by the commission. The form must 09 (1) be filed during the qualifying period under AS 15.70.040; 10 (2) be signed by the participating candidate and the participating 11 candidate's treasurer; 12 (3) identify the office the participating candidate is seeking; 13 (4) identify the participating candidate's party, if any; 14 (5) include the participating candidate's declaration that the candidate 15 has abided by and will continue to abide by the requirements of this chapter through 16 the election cycle; and 17 (6) be accompanied by 18 (A) a campaign finance report as provided in (c) of this section; 19 and 20 (B) the number of qualifying contributions and accompanying 21 voter statements required under AS 15.70.060. 22 (b) The administrator shall certify a candidate if the administrator determines 23 that the participating candidate has 24 (1) signed and filed a declaration of intent under AS 15.70.030; 25 (2) collected the required number of qualifying contributions under 26 AS 15.70.060; 27 (3) tendered the sum of the qualifying contributions to the 28 commission; 29 (4) met all other applicable requirements for participation established 30 under this chapter; and 31 (5) agreed to abide by all requirements for participating candidates.

01 (c) The campaign finance report required under (a)(6)(A) of this section must 02 be in the form required under AS 15.13.040. The report must account for a 03 participating candidate's seed money contributions received and expenditures incurred 04 since the last report filed under AS 15.13.110, or, if no prior report has been filed, the 05 report must account for all seed money contributions received and expenditures 06 incurred through the third day before the date that the report is filed. 07 (d) A candidate who the commission determines has fewer than the required 08 number of qualifying contributions under AS 15.70.050 may submit additional 09 qualifying contributions during the qualifying period. 10 (e) In an election year, the administrator shall certify a candidate who 11 complies with the requirements of this section not later than 12 (1) five business days after the candidate's submission of the form, 13 campaign finance report, and qualifying contributions required under (a) of this 14 section if the application is submitted before May 20; and 15 (2) 10 business days after the candidate's submission of the form, 16 campaign finance report, and qualifying contributions required under (a) of this 17 section if the application is submitted on or after May 20. 18 (f) A candidate who is denied certification by the administrator is no longer 19 bound by the provisions of this chapter pertaining to participating candidates. The 20 administrator shall return to the candidate the qualifying contributions submitted by a 21 candidate who is denied certification. 22 (g) The director of elections shall assist the administrator in carrying out the 23 commission's duties under this section by 24 (1) verifying, within the time periods set out in (e) of this section, that 25 the maker of a qualifying contribution is a registered voter in the election district of 26 the candidate who has submitted the qualifying contribution; and 27 (2) verifying that the candidate has properly filed for the office the 28 candidate is seeking. 29 Sec. 15.70.080. Limits on expenditures by participating candidates. (a) A 30 participating candidate shall comply with the limits on campaign expenditures set out 31 in this section, as adjusted in accordance with AS 15.70.130, 15.70.160, and

01 15.70.260. 02 (b) Total expenditures for participating candidates during the primary election 03 campaign period may not exceed the following amounts: 04 (1) $275,000 for a candidate for the office of governor; 05 (2) $165,000 for a candidate for the office of lieutenant governor; 06 (3) $26,400 for a candidate for the office of a state senator; and 07 (4) $17,600 for a candidate for the office of a state representative. 08 (c) Total expenditures for participating candidates during the general election 09 period may not exceed the following amounts: 10 (1) $550,000 for candidates in a joint campaign for the offices of 11 governor and lieutenant governor; 12 (2) $39,600 for a candidate for the office of state senator; and 13 (3) $26,400 for a candidate for the office of state representative. 14 Sec. 15.70.090. Distribution of program funds to certified candidates. (a) A 15 candidate certified by the commission is eligible to receive distributions from the fund 16 established under this chapter of not more than the following amounts: 17 (1) funds for a certified candidate in the primary election are limited to 18 (A) $250,000 for a candidate for the office of governor; 19 (B) $150,000 for a candidate for the office of lieutenant 20 governor; 21 (C) $24,000 for a candidate for the office of state senator; and 22 (D) $16,000 for a candidate for the office of state 23 representative; 24 (2) funds for a certified candidate in the general election are limited to 25 (A) $500,000 for candidates in a joint campaign for the offices 26 of governor and lieutenant governor; 27 (B) $36,000 for a candidate for the office of state senator; and 28 (C) $24,000 for a candidate for the office of state 29 representative. 30 (b) The commission may by regulation establish procedures requiring the use 31 of debit cards by certified candidates for all or part of the funds disbursed under this

01 section. The commission may limit the use of debit cards to those election districts 02 where it determines their use is reasonable. 03 (c) A candidate who secures the nomination of a political party for an office in 04 a primary election is eligible for funds under this chapter for use in the general 05 election only if the combined votes of all of the party's candidates in the primary 06 election for that office is equal to at least 10 percent of the total number of votes cast 07 for the candidates of all parties in the primary election for that office. 08 Sec. 15.70.100. Timing of distributions. (a) The administrator shall make 09 distributions from the fund to certified candidates as follows: 10 (1) 25 percent of the applicable amount provided in 11 AS 15.70.090(a)(1) upon a candidate's certification under AS 15.70.070; and 12 (2) an additional 75 percent of the applicable amount provided in 13 AS 15.70.090(a)(1) to each certified candidate with an opponent who will appear on 14 the primary election ballot within two business days after the end of the qualifying 15 period under AS 15.70.040 or upon the candidate's certification, whichever is later. 16 (b) Within two business days after the director of elections certifies the results 17 of the primary election, the administrator shall distribute: 18 (1) 25 percent of the applicable amount provided in 19 AS 15.70.090(a)(2) to each certified candidate who will appear on the ballot in the 20 general election without an opponent; and 21 (2) 100 percent of the applicable amount provided in 22 AS 15.70.090(a)(2) to each certified candidate who will appear on the ballot in the 23 general election with an opponent. 24 (c) The administrator shall deduct from the amount distributed under (a) of 25 this section the amount of any unspent or unobligated seed money contributions under 26 AS 15.70.050 held by a participating candidate at the time the candidate files an 27 application for certification under AS 15.70.070. The administrator shall deduct from 28 the amounts distributed under (b) of this section the amount of any unspent or 29 unobligated primary election funds held by a certified candidate and the amount of any 30 prepaid general election expenses reported by the certified candidate. 31 (d) The administrator shall distribute any matching funds under AS 15.70.130

01 within two business days after the earlier of 02 (1) the receipt of a spending limit report by the commission under 03 AS 15.70.110 showing that a nonparticipating opposing candidate has exceeded 04 expenditure limits under AS 15.70.080; or 05 (2) a determination by the commission of excess spending on behalf of 06 or by a nonparticipating opposing candidate. 07 Sec. 15.70.110. Spending limit reports by nonparticipating candidates. (a) 08 If a nonparticipating candidate in a primary or general election campaign in which 09 there is at least one participating candidate makes an expenditure or incurs an 10 obligation that causes the nonparticipating candidate's total expenses to exceed 90 11 percent of the applicable expenditure limit for a participating candidate under 12 AS 15.70.080, the nonparticipating candidate shall, in addition to the reports required 13 under AS 15.13.040 and 15.13.110, within two days after exceeding that amount, 14 begin filing spending limit reports with the commission. 15 (b) If a nonparticipating candidate who is conducting a write-in campaign is 16 running against a certified candidate who does not have an opponent on the general 17 election ballot and the nonparticipating candidate makes an expenditure or incurs an 18 obligation that causes the nonparticipating candidate's total expenses to exceed 20 19 percent of the expenditure limit for the office under AS 15.70.080(c), the 20 nonparticipating candidate shall, in addition to the reports required under 21 AS 15.13.040 and 15.13.110, within two days after exceeding that amount, begin 22 filing spending limit reports with the commission. 23 (c) If the administrator determines under AS 15.70.120 that a nonparticipating 24 candidate has incurred expenses that exceed 90 percent of the applicable expenditure 25 limit for a participating candidate under AS 15.70.080, after notice, the 26 nonparticipating candidate shall, in addition to the reports required under 27 AS 15.13.040 and 15.13.110, begin filing spending limit reports with the commission. 28 (d) A nonparticipating candidate under (a), (b), or (c) of this section shall file a 29 spending limit report on the Monday of each succeeding week until 14 days before the 30 election and, beginning 14 days before the election, every two business days until the 31 day of the election.

01 (e) A spending limit report under this section must include a statement of the 02 total dollar amount of all expenses incurred through the day before the date of the 03 report. 04 (f) Spending limit reports shall be filed electronically with the commission. 05 Sec. 15.70.120. Determination by the administrator of excess expenses 06 incurred by a nonparticipating candidate. The administrator may, after notice to a 07 nonparticipating candidate and an opportunity for a hearing, make a determination that 08 the nonparticipating candidate has incurred excess expenses based on 09 (1) a nonparticipating candidate's report of expenditures; 10 (2) a determination regarding independent expenditures under 11 AS 15.70.140; or 12 (3) the administrator's own investigation. 13 Sec. 15.70.130. Matching funds. (a) If a nonparticipating candidate files a 14 spending limit report under AS 15.70.110(a) or if the administrator determines under 15 AS 15.70.120 that a nonparticipating candidate has incurred expenses that exceed the 16 expenditure limits for participating candidates set out under AS 15.70.080, the 17 administrator shall, within two business days, distribute to each certified candidate in 18 that election contest an amount equal to the amount of the nonparticipating candidate's 19 excess expenses. The expenditure limits set out in AS 15.70.080 for each participating 20 candidate in that election contest shall be increased by the amount distributed to each 21 certified candidate. The amounts distributed under this subsection are limited as 22 follows: 23 (1) the total amount of funds distributed to a certified candidate during 24 the primary election campaign period, including matching funds distributed under this 25 section, may not exceed three times the primary election expenditure limits under 26 AS 15.70.080(b); 27 (2) the total amount of funds distributed to a certified candidate during 28 the general election campaign period, including matching funds distributed under this 29 section, may not exceed three times the general election expenditure limits under 30 AS 15.70.080(c); and 31 (3) in an election contest with more than one nonparticipating

01 candidate, each certified candidate shall receive matching funds under this section 02 only up to the amount of the excess expenses incurred by the nonparticipating 03 candidate having the highest excess expenses. 04 (b) On receipt of a spending limit report from a nonparticipating candidate 05 under AS 15.70.110(b), the administrator shall disburse to each certified candidate 75 06 percent of the amount set out in AS 15.70.090(a)(2). 07 (c) An expenditure limit that is increased under this section is only increased 08 for the current election cycle. 09 Sec. 15.70.140. Independent expenditures. (a) A person or group that makes 10 an independent expenditure under AS 15.13.135 supporting or opposing a 11 participating candidate exceeding $500 during an election cycle shall report the 12 expenditure to the commission as provided in (b) of this section. The report shall be 13 filed in addition to any reports required under AS 15.13.040 and 15.13.110. The report 14 must include a signed statement from the person or group making the independent 15 expenditure identifying the candidate or candidates that the independent expenditure is 16 intended to help elect or defeat, if any, and affirming that the expenditure is totally 17 independent and does not involve cooperation or coordination with a candidate or a 18 political party. 19 (b) If an independent expenditure is made 45 days or more before a primary or 20 general election, the report required under (a) of this section must be filed within 21 seven days. If the expenditure is made less than 45 days before a primary or general 22 election, the report required under (a) of this section must be filed within two days. 23 (c) A certified candidate may file a complaint with the commission that 24 (1) an independent expenditure has not been reported; 25 (2) the amount of an independent expenditure has been underreported; 26 or 27 (3) the report under (a) of this section does not correctly identify the 28 candidate the expenditure is intended to help elect or defeat. 29 (d) A complaint under (c) of this section must include a statement of facts 30 supporting the complaint, the name of the candidate the complainant believes the 31 expenditure is intended to help elect or defeat, and, if available to the complainant, a

01 copy of the communication alleged to have been funded by the independent 02 expenditure. The administrator shall give the person or group making the expenditure 03 an opportunity to be heard. Within seven days after the filing of the complaint, the 04 administrator shall decide whether the subject of the complaint is an independent 05 expenditure under this section and, if necessary, whom the expenditure is intended to 06 help elect or defeat. A decision of the administrator under this subsection is valid only 07 for the purpose of determining the appropriate treatment of the expenditure under (e) 08 of this section. 09 (e) If an independent expenditure is reported under (a) of this section or an 10 expenditure is determined to be an independent expenditure under (d) of this section, 11 the administrator, in determining whether a participating candidate is entitled to 12 matching funds under AS 15.70.130, shall 13 (1) treat an independent expenditure against a participating candidate 14 as the expenditure of the highest spending nonparticipating candidate in that election 15 contest; 16 (2) treat an independent expenditure made in support of a 17 nonparticipating candidate as if it were the expenditure of that candidate; 18 (3) in an election contest with more than one participating candidate, 19 treat an independent expenditure made in support of a participating candidate as if it 20 were an excess expenditure of a nonparticipating opposing candidate of any other 21 participating candidate in that election contest; 22 (4) in an election contest with more than one participating candidate, 23 treat an independent expenditure against a participating candidate as if it were an 24 excess expenditure of a nonparticipating opposing candidate of that participating 25 candidate. 26 Sec. 15.70.150. Permitted use of funds. (a) A participating candidate may use 27 contributions and funds received under this chapter only for the purposes set out in 28 AS 15.13.112. 29 (b) If the commission determines that a participating candidate used funds 30 received under this chapter in violation of AS 15.13.112, the commission shall notify 31 the participating candidate, and the candidate shall, after notice and opportunity for

01 hearing, reimburse the fund the amount determined by the commission. 02 Sec. 15.70.160. Contributions by political parties. A participating candidate 03 may accept contributions from a political party during the primary and general 04 election campaign periods if the total amount of contributions received by the 05 candidate from all political parties does not exceed 10 percent of the fund distribution 06 for the office the participating candidate seeks under AS 15.70.090(a)(1) for the 07 primary election or AS 15.70.090(a)(2) for the general election. 08 Sec. 15.70.170. Repayment of unused funds. (a) Within 14 days after the 09 director of elections certifies the results of the primary election, a certified candidate 10 who is not successful in the primary election shall return to the commission all funds 11 received by the candidate under this chapter that were not spent or obligated to be 12 spent during the primary election campaign period. 13 (b) Within 14 days after the certification of the results of the general election, 14 a certified candidate shall return to the commission all funds received by the candidate 15 under this chapter that were not spent or obligated to be spent during the general 16 election campaign period. 17 Sec. 15.70.180. Candidates by petition. (a) A candidate who is seeking to be 18 nominated by petition under AS 15.25.140 - 15.25.200 may become a certified 19 candidate by complying with the requirements of AS 15.70.020 - 15.70.070. The 20 administrator may not certify a candidate under this subsection until the director of 21 elections has verified that the candidate has qualified for the general election ballot. A 22 candidate nominated by petition is eligible only for funding under AS 15.70.090(a)(2). 23 (b) A certified candidate who has been nominated by petition may solicit and 24 accept private contributions and contributions from political parties for the general 25 election if the total amount of contributions received by the candidate does not exceed 26 10 percent of the fund distribution for the office the candidate seeks under 27 AS 15.70.090(a)(2). 28 Sec. 15.70.190. Governor and lieutenant governor joined campaigns. (a) If 29 a political party nominates candidates for governor and lieutenant governor who were 30 both participating candidates during the primary election campaign period, the 31 candidates shall form a joined campaign for the general election. The joined campaign

01 is a "participating candidate" under this chapter and is eligible to receive general 02 election funding under AS 15.70.090(a)(2). 03 (b) If a political party nominates candidates for governor and lieutenant 04 governor and only one of the candidates was a certified candidate under this chapter 05 during the primary election campaign period, the candidates may form a joined 06 campaign that is eligible to receive general election funding under AS 15.70.090(a)(2) 07 if the nonparticipating candidate complies with the requirements of (c) or (d) of this 08 section. 09 (c) If a nonparticipating candidate declines to form a joined campaign with a 10 participating candidate subject to this chapter, the candidates shall maintain separate 11 campaign accounts and may not coordinate campaign expenditures. The participating 12 candidate is eligible to receive the amount authorized for a joined campaign under 13 AS 15.70.090(a)(2). An expenditure by the nonparticipating candidate during the 14 general election campaign period shall be treated as an expenditure of the participating 15 candidate under AS 15.70.140. 16 (d) If, from the beginning of the election cycle through the end of the primary 17 election campaign period, a nonparticipating candidate who has declined to form a 18 joined campaign with a participating candidate spent less than the amount set out in 19 AS 15.70.080(b)(1) or (2), the nonparticipating candidate may transfer unspent 20 contributions to the joined campaign up to the amount set out in AS 15.70.080(b)(1) or 21 (2) less the amount spent by the participating candidate and amount of general election 22 expenses prepaid by the participating candidate. Any remaining unspent or 23 unobligated private contributions held by the nonparticipating candidate shall be 24 disbursed in accordance with AS 15.13.116. 25 (e) If, from the beginning of the election cycle through the end of the primary 26 election campaign period, the nonparticipating candidate spent more than the amount 27 set out in AS 15.70.080(b)(1) or (2), the joined campaign is eligible to receive the 28 amount set out in AS 15.70.090(a)(2) less the amount the candidates spent on prepaid 29 general election expenses. 30 (f) If a political party nominates candidates for governor and lieutenant 31 governor and neither candidate was a participating candidate during the primary

01 election period, a joined campaign formed by the two nonparticipating candidates is 02 not eligible for funding under this chapter. 03 Sec. 15.70.200. Write-in candidates. (a) A candidate who is conducting a 04 write-in campaign is not eligible for funds authorized to be distributed under this 05 chapter and shall be treated as a nonparticipating candidate under this chapter. 06 (b) If a candidate who is conducting a write-in campaign is running against a 07 certified candidate who has an opponent on the general election ballot, the write-in 08 candidate shall comply with the reporting requirements of AS 15.70.110. 09 Sec. 15.70.210. Withdrawal by participating candidate. (a) A candidate may 10 withdraw from participation as a participating candidate at any time within 10 days 11 after the end of the qualifying period under AS 15.70.040 by delivering to the 12 commission a notice of the candidate's intent to withdraw. The candidate may not 13 accept any private contributions until three days after the notice of the candidate's 14 intent to withdraw is received by the commission. A candidate who has submitted a 15 notice of the candidate's intent to withdraw may not receive any further funds 16 authorized to be distributed under this chapter. 17 (b) A participating candidate who withdraws before submitting qualifying 18 contributions to the commission shall use the candidate's best efforts to return all 19 qualifying contributions the candidate has collected to the contributors within 30 days 20 after the candidate's withdrawal. If a contributor cannot be located, the qualifying 21 contributions collected by the candidate shall be remitted to the fund. Any qualifying 22 contributions already submitted by a participating candidate who withdraws shall 23 remain in the fund. 24 (c) A certified candidate who has already received funds authorized to be 25 distributed under this chapter before filing a notice of an intent to withdraw shall 26 immediately stop spending the funds on submission of the notice. The candidate shall 27 return all the unspent funds to the commission within five days after submitting the 28 notice of the candidate's intent to withdraw. The candidate shall repay to the 29 commission all the funds received and spent by the candidate within 30 days after 30 submitting the notice of the candidate's intent to withdraw. A candidate who has not 31 repaid all the funds distributed to the candidate under this chapter within 30 days after

01 withdrawing may not spend private contributions for any purpose until the funds have 02 been repaid. 03 (d) The commission shall adopt regulations governing the form of a notice of 04 a candidate's intent to withdraw. 05 Sec. 15.70.220. Ballot identification. The director of elections shall inform 06 voters of which candidates on the ballot are participating in the program established 07 under this chapter by placing the following sentence below the name of each 08 participating candidate on the ballot in the primary and general elections: "This 09 candidate is participating in the state's voluntary public financing program." 10 Sec. 15.70.230. Insufficient funding. If, during the election year, the 11 commission determines that there is not enough money appropriated to fully fund all 12 participating candidates, the commission shall issue a declaration of insufficient 13 funding and authorize participating candidates to solicit and accept private 14 contributions permitted under AS 15.13. If the commission issues a declaration of 15 insufficient funding, a participating candidate may not accept more in private 16 contributions than is authorized under the candidate's spending limit under this 17 chapter. 18 Sec. 15.70.240. Civil penalties. (a) Except as provided in (b) of this section, a 19 person who violates a provision of this chapter or a regulation adopted under this 20 chapter is subject to a civil penalty not to exceed $5,000. 21 (b) In addition to any other penalty imposed by law, a certified candidate who 22 exceeds the expenditure limits established under this chapter shall pay as a civil 23 penalty to the fund an amount equal to 24 (1) the amount by which the certified candidate exceeded the limit if 25 the limit is exceeded by more than one percent but not more than three percent; 26 (2) three times the amount by which the certified candidate exceeded 27 the limit if the limit is exceeded by more than three percent but not more than five 28 percent; or 29 (3) five times the amount by which the certified candidate exceeded 30 the limit if the limit is exceeded by more than five percent. 31 (c) A certified candidate who violates the expenditure limits established under

01 this chapter by more than 10 percent is disqualified as a candidate and, if elected, shall 02 forfeit the office to which the candidate was elected. 03 (d) In addition to any other penalty imposed by law, if a nonparticipating 04 candidate fails to file a timely and accurate report under AS 15.70.110 and the failure 05 to do so results in the late payment or nonpayment of matching funds, the 06 nonparticipating candidate shall pay as a civil penalty an amount equal to 07 (1) the amount of matching funds not paid or paid late to a single 08 certified candidate running for the same office, if the amount of the matching funds is 09 $2,000 or less; 10 (2) three times the amount of matching funds not paid or paid late to a 11 single certified candidate running for the same office, if the amount of the matching 12 funds is more than $2,000 but less than $5,000; 13 (3) five times the amount of matching funds not paid or paid late to a 14 single certified candidate running for the same office, if the amount of the matching 15 funds is $5,000 or more but 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 running for the same office, if the amount of the matching 18 funds is $10,000 or more. 19 (e) In addition to any other penalty imposed by law, a person or group who 20 makes an independent expenditure under AS 15.70.140(a) and does not file a timely 21 and accurate report under AS 15.70.140 resulting in the late payment or nonpayment 22 of matching funds to a certified candidate, the person or group making the 23 independent expenditure shall pay as a civil penalty an amount equal to 24 (1) the amount of matching funds not paid or paid late to a single 25 certified candidate, if the amount of the matching funds is $2,000 or less; 26 (2) three times the amount of matching funds not paid or paid late to a 27 single certified candidate, if the amount of the matching funds is more than $2,000 but 28 less than $5,000; 29 (3) five times the amount of matching funds not paid or paid late to a 30 single certified candidate, if the amount of the matching funds is $5,000 or more but 31 less than $10,000; or

01 (4) 10 times the amount of matching funds not paid or paid late to a 02 single certified candidate, if the amount of the matching funds is $10,000 or more. 03 (f) In addition to a civil penalty, the commission may require a certified 04 candidate found to be in violation of this chapter or a regulation adopted under this 05 chapter to repay to the fund all or part of the funds distributed to the candidate. 06 (g) The legislature may appropriate money received as civil penalties under 07 this section to the fund. 08 Sec. 15.70.250. Administrative procedure and appeals. (a) A candidate who 09 has been denied certification under AS 15.70.070, the opponent of a candidate who 10 has been granted certification under AS 15.70.070, or a registered voter residing in the 11 house district, senate district, or area in which the certified candidate is running for 12 office may challenge a certification decision under this chapter. 13 (b) A certification decision may be appealed to the commission within seven 14 days after the certification decision. The appeal must be in writing and must set out the 15 reasons for the appeal. 16 (c) Within five days after an appeal is properly made and notice is given to the 17 appellant and any candidate in the house district, senate district, or area in which the 18 candidate is running for office, the commission shall hold a hearing. The appellant has 19 the burden of demonstrating that the administrator's decision was improper. The 20 commission shall rule on the appeal within three days after the completion of the 21 hearing. 22 (d) A candidate whose certification is revoked on appeal shall return any 23 unspent distributions from the fund. 24 (e) A decision of the administrator to disburse matching funds under 25 AS 15.70.130 may be appealed to the commission by a candidate opposed to the 26 distribution or by a person or group making an independent expenditure under 27 AS 15.70.140. A decision by the administrator to disburse matching funds shall be 28 implemented, notwithstanding the filing of an appeal, unless the commission issues a 29 stay of the administrator's decision. 30 (f) Any other decision of the administrator may be appealed to the 31 commission. The commission shall adopt regulations establishing appeal procedures.

01 (g) A person or group who believes that a violation of this chapter or a 02 regulation adopted under this chapter has occurred or is occurring may file an 03 administrative complaint with the commission within one year after the date of the 04 alleged violation. The commission may consider a complaint on an expedited basis or 05 a regular basis. The complaint shall be considered in accordance with the procedures 06 set out at AS 15.13.380(b) - (h). 07 (h) A decision of the commission under (c) of this section may be appealed to 08 the superior court. The court may consider the appeal on an expedited basis. 09 Sec. 15.70.260. Adjustment for inflation. Beginning in January 2011 and 10 every four years thereafter, the commission shall modify the dollar values specified in 11 AS 15.70.050, 15.70.080, and 15.70.090 to account for inflation. The commission 12 shall adopt by regulation a method to determine and publicly report the amount of the 13 adjustment. 14 Sec. 15.70.270. Regulations. The commission shall adopt regulations to 15 ensure effective administration of this chapter. The regulations must include 16 procedures for obtaining qualifying contributions, certification of candidates, recounts, 17 withdrawal or replacement of candidates, distribution of funds authorized by this 18 chapter, reporting of prepaid general election expenses, return of unspent fund 19 distributions, processing complaints alleging violations of this chapter, recordkeeping, 20 and compliance with this chapter. 21 Sec. 15.70.280. Report to the legislature. By January 30, 2010, and every 22 four years after that date, the commission shall submit a report to the legislature 23 documenting, evaluating, and making recommendations relating to the administration, 24 implementation, and enforcement of this chapter and of the clean elections fund 25 established in AS 15.70.010. 26 Sec. 15.70.390. Definitions. In this chapter, 27 (1) "administrator" means the administrator of the clean elections 28 program appointed in accordance with AS 15.13.030(11); 29 (2) "commission" means the Alaska Public Offices Commission; 30 (3) "contribution" has the meaning given in AS 15.13.400; 31 (4) "election cycle," as applied to a candidate for state office, is the

01 period beginning on the 31st day following a general election for that office and 02 ending on the 30th day following the next general election for that office; 03 (5) "election year" means the calendar year during which a state 04 general election for a particular office is held; 05 (6) "expenditure" has the meaning given in AS 15.13.400; 06 (7) "fund" means the clean elections fund established in AS 15.70.010; 07 (8) "general election campaign period" means the period beginning the 08 day following the primary election and ending on the day of the general election; 09 (9) "independent expenditure" has the meaning given in AS 15.13.400; 10 (10) "nonparticipating candidate" means a candidate, as that term is 11 defined in AS 15.13.400, who has not been certified under AS 15.70.070; 12 (11) "participating candidate" means 13 (A) a candidate, as that term is defined in AS 15.13.400, who 14 has agreed to participate in the program authorized by this chapter, who has 15 submitted and not withdrawn a declaration of intent, and who has not been 16 denied certification by the commission; and 17 (B) the joined campaign of the candidates for governor and 18 lieutenant governor under AS 15.70.190(b); 19 (12) "prepaid general election expenses" means payments made by a 20 candidate before the end of the primary election campaign period for goods or services 21 that will be delivered or provided during the general election campaign period and 22 includes 23 (A) rental payments; 24 (B) radio, television, newspaper, and other forms of 25 advertising; 26 (C) wages, salaries, and personnel costs; 27 (D) consulting services; 28 (E) other payments defined by the commission by regulation; 29 (13) "primary election campaign period" means the period beginning 30 the day following the qualifying period and ending the day of the primary election; 31 (14) "program" means the program authorized by this chapter;

01 (15) "qualifying contribution" means an allowable contribution under 02 AS 15.70.060 to a participating candidate that is made after the candidate submits a 03 declaration of intent and before the end of the qualifying period; 04 (16) "qualifying period" means the period during which a candidate 05 may collect qualifying contributions for the purpose of becoming a certified candidate; 06 for a candidate for statewide office, the period begins on August 1 of the year 07 preceding a year in which a general election is held and ends on June 1 of the general 08 election year; for a candidate for the legislature, the period begins on October 1 of the 09 year preceding a year in which a general election is held and ends on June 1 of the 10 general election year; 11 (17) "seed money contribution" means a contribution of not more than 12 $100 from each individual made to a candidate, including a contribution from the 13 candidate or the candidate's relative; 14 (18) "statewide office" means the office of governor or lieutenant 15 governor. 16 Sec. 15.70.395. Short title. This chapter may be known as the Clean Elections 17 Act. 18 * Sec. 3. AS 15.13.010 is amended by adding a new subsection to read: 19 (e) This chapter does not limit the application of AS 15.70 to contributions, 20 expenditures, and communications made for the purpose of influencing the nomination 21 or election of a candidate for governor, lieutenant governor, or a member of the state 22 legislature. 23 * Sec. 4. AS 15.13.030 is amended to read: 24 Sec. 15.13.030. Duties of the commission. The commission shall 25 (1) develop and provide all forms for the reports and statements 26 required to be made under this chapter, AS 15.70, AS 24.45, and AS 39.50; 27 (2) prepare and publish a manual setting out uniform methods of 28 bookkeeping and reporting for use by persons required to make reports and statements 29 under this chapter and AS 15.70, and otherwise assist candidates, groups, and 30 individuals in complying with the requirements of this chapter and AS 15.70; 31 (3) receive and hold open for public inspection reports and statements

01 required to be made under this chapter and AS 15.70, and, upon request, furnish 02 copies at cost to interested persons; 03 (4) compile and maintain a current list of all filed reports and 04 statements; 05 (5) prepare a summary of each report filed under AS 15.13.110 and 06 AS 15.70 and make copies of this summary available to interested persons at their 07 actual cost; 08 (6) notify, by registered or certified mail, all persons who are 09 delinquent in filing reports and statements required to be made under this chapter and 10 AS 15.70; 11 (7) examine, investigate, and compare all reports, statements, and 12 actions required by this chapter, AS 15.70, AS 24.45, and AS 39.50; 13 (8) prepare and publish a biennial report concerning the activities of 14 the commission, the effectiveness of this chapter, its enforcement by the attorney 15 general's office, and recommendations and proposals for change; the commission shall 16 notify the legislature that the report is available; 17 (9) adopt regulations necessary to implement and clarify the provisions 18 of AS 15.70, AS 24.45, AS 39.50, and this chapter, subject to the provisions of 19 AS 44.62 (Administrative Procedure Act); [AND] 20 (10) consider a written request for an advisory opinion concerning the 21 application of this chapter, AS 15.70, AS 24.45, AS 24.60.200 - 24.60.260, or 22 AS 39.50; and 23 (11) appoint an administrator to oversee AS 15.70 and to make 24 decisions authorized by that chapter or decisions under that chapter that are 25 delegated to the administrator by the commission. 26 * Sec. 5. AS 15.13.045(b) is amended to read: 27 (b) In conjunction with (a) of this section, the commission may compel the 28 attendance of witnesses and production of papers, books, records, accounts, 29 documents, and testimony, and may have the deposition of witnesses taken in a 30 manner prescribed by court rule or law for the taking of depositions in civil actions 31 when consistent with the powers and duties assigned to the commission by this chapter

01 and AS 15.70. 02 * Sec. 6. AS 15.13.045(c) is amended to read: 03 (c) The commission may examine the papers, books, records, accounts, and 04 documents of any person subject to this chapter and AS 15.70 to ascertain the 05 correctness of a report filed with the commission, or in conjunction with an 06 investigation or inspection conducted under (a) of this section. 07 * Sec. 7. AS 15.56.012(a) is amended to read: 08 (a) Except as provided in AS 15.56.014 and 15.56.016, a person commits the 09 crime of campaign misconduct in the first degree if the person knowingly engages in 10 conduct that violates a provision of AS 15.13 or AS 15.70, or a regulation adopted 11 under authority of AS 15.13 or AS 15.70. 12 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 APPLICABILITY. This Act applies 15 (1) after December 31, 2008, for the election cycles, as that term is defined by 16 AS 15.70.390, enacted by sec. 2 of this Act, for the offices of state senator and state 17 representative; and 18 (2) after December 31, 2010, for the election cycle, as that term is defined by 19 AS 15.70.390, enacted by sec. 2 of this Act, for the offices of governor and lieutenant 20 governor.