Legislature(2009 - 2010)CAPITOL 106

03/09/2010 08:00 AM House STATE AFFAIRS


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08:07:16 AM Start
08:08:18 AM Confirmation Hearing(s)|| Commissioner, Department of Military & Veterans' Affairs
08:19:27 AM HCR20
08:30:28 AM HB409
09:53:43 AM HB251
10:07:51 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation Hearing: TELECONFERENCED
Adjutant General Thomas Katkus,
Commissioner, Dept. Military & Veterans'
Affairs
+= HB 409 CAMPAIGN EXPENDITURES TELECONFERENCED
Moved CSHB 409(STA) Out of Committee
*+ HB 251 PRIORITY OF TOWING LIENS TELECONFERENCED
Heard & Held
*+ HCR 20 SEXUAL ASSAULT AWARENESS MONTH TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HB 409-CAMPAIGN EXPENDITURES                                                                              
                                                                                                                                
8:30:28 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  announced that the  next order of business  was HOUSE                                                               
BILL NO. 409,  "An Act relating to state  election campaigns, the                                                               
duties  of the  Alaska Public  Offices Commission,  the reporting                                                               
and disclosure of expenditures  and independent expenditures, the                                                               
filing   of   reports,   and  the   identification   of   certain                                                               
communications in state election  campaigns; and providing for an                                                               
effective date."                                                                                                                
                                                                                                                                
8:31:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  moved  to adopt  the  proposed  committee                                                               
substitute  (CS)  for  HB   409,  Version  26-LS1495\E,  Bullard,                                                               
3/2/10, as a work draft.                                                                                                        
                                                                                                                                
8:31:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG objected for discussion purposes.                                                                      
                                                                                                                                
8:32:03 AM                                                                                                                    
                                                                                                                                
MICHAEL  SICA,  Staff,  Representative  Bob  Lynn,  Alaska  State                                                               
Legislature,  on  behalf  of the  House  State  Affairs  Standing                                                               
Committee,  prime sponsor,  which  is  chaired by  Representative                                                               
Lynn, discussed the  changes to HB 409 proposed  in the committee                                                               
substitute (CS), Version  E.  He said the intent  of the proposed                                                               
CS is to enact laws  that address disclosures and disclaimers for                                                               
independent  expenditures  by  corporations,  labor  unions,  and                                                               
limited  liability   companies  (LLCs).     He   highlighted  the                                                               
following  proposed  new  language:     on  page  3,  Section  4,                                                               
regarding  disclosures;   on  page   5,  Section   10,  regarding                                                               
disclaimers;  and  on  page 6,  Section  11,  regarding  personal                                                               
liability for  a chief officer in  a corporation in the  event of                                                               
statements  that  are  defamatory.    He  directed  attention  to                                                               
Section 12, and  said the committee had passed  an amendment that                                                               
"basically   creates   a   24-hour   rule   for   reporting   the                                                               
expenditure."  Mr.  Sica noted that in the committee  packet is a                                                               
checklist  regarding   Version  E,   as  well   memorandums  from                                                               
Legislative Legal and Research Services.                                                                                        
                                                                                                                                
8:35:03 AM                                                                                                                    
                                                                                                                                
MR. SICA, in response to  Chair Lynn, reminded the committee that                                                               
Amendment  3a,  which  changed  the  requirement  for  filing  an                                                               
independent  expenditure report  with the  Alaska Public  Offices                                                               
Commission  (APOC)  from "not  later  than  three days  after  an                                                               
expenditure has been  made" to "not later than 24  hours after an                                                               
expenditure  has  been made",  was  adopted.   He  mentioned  the                                                               
language in Amendment 3b, which had been tabled.                                                                                
                                                                                                                                
8:36:26 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  moved to take  from the  table Amendment 3b.   [There                                                               
being no objection, Amendment 3b was before the committee.]                                                                     
                                                                                                                                
8:36:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON moved  to  adopt  Conceptual Amendment  1,                                                               
[Amendment 3b, with  line numbers changed to  reflect Version E],                                                               
which read as follows:                                                                                                          
                                                                                                                                
     Page 6, lines 13 - 17:                                                                                                     
     Delete   "An  expenditure   report  filed   under  this                                                                    
     subsection  must   include  any  expenditure   not  yet                                                                    
     reported  that  was  made  before  the  filing  of  the                                                                    
     report. However,  an expenditure that exceeds  $250 and                                                                    
     that is made  within nine days of an  election shall be                                                                    
     reported  to the  commission not  later  than 24  hours                                                                    
     after the expenditure is made."                                                                                            
                                                                                                                                
There being no  objection, Conceptual Amendment 1,  to Version E,                                                               
was adopted.                                                                                                                    
                                                                                                                                
8:38:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  removed his objection to  the motion to                                                               
adopt the proposed committee substitute  (CS) for HB 409, Version                                                               
26-LS1495\E, Bullard,  3/2/10, as a  work draft.  There  being no                                                               
further objection, Version E was before the committee.                                                                          
                                                                                                                                
8:38:40 AM                                                                                                                    
                                                                                                                                
CHAIR  LYNN moved  to adopt  Amendment 2,  labeled 26-LS1495\E.1,                                                               
Bullard, 3/3/10, which read as follows:                                                                                         
                                                                                                                                
     Page 4, following line 9:                                                                                                  
     Insert a new bill section to read:                                                                                         
        "* Sec. 7. AS 15.13.067 is amended to read:                                                                         
          Sec. 15.13.067. Who may make expenditures. Only                                                                     
     the following  may make an  expenditure that is  not an                                                                
     independent expenditure  in an election  for candidates                                                                
     for elective office:                                                                                                       
               (1)  the candidate;                                                                                              
               (2)  an individual;                                                                                              
               (3)  a group that has registered under                                                                           
     AS 15.13.050; and                                                                                                          
               (4)  a nongroup entity that has registered                                                                       
     under AS 15.13.050."                                                                                                       
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 4, line 29, through page 5, line 6:                                                                                   
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 7, line 13:                                                                                                           
          Delete "AS 15.13.067 and 15.13.140(a) are"                                                                            
          Insert "AS 15.13.140(a) is"                                                                                           
                                                                                                                                
REPRESENTATIVE GRUENBERG objected for discussion purposes.                                                                      
                                                                                                                                
8:39:32 AM                                                                                                                    
                                                                                                                                
MR.  SICA  explained that  at  the  last hearing,  the  committee                                                               
adopted   an  amendment   that   inserted  "independent"   before                                                               
"expenditure"  and "expenditures",  and  unintentionally did  not                                                               
speak to the fact that  there are expenditures beyond independent                                                               
expenditures, for  example, expenditures  made by  "candidates or                                                               
someone in coordination  with a candidate."   Amendment 2 relates                                                               
to AS 15.13.067 and specifies  who may make expenditures that are                                                               
not independent expenditures.                                                                                                   
                                                                                                                                
8:40:50 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  noted  grammatical  changes  currently                                                               
proposed in Version  E, throughout the language in  Section 9, on                                                               
page  4, line  29,  through page  5,  line 6:    "[IN]" would  be                                                               
changed to "on".  He said  that is an important change that would                                                           
be lost if  Amendment 2 is adopted.   He said he  thinks that the                                                               
bill drafter  probably wants to  delete the reference on  page 6,                                                               
line 5, to AS 15.13.067(3).                                                                                                     
                                                                                                                                
8:42:41 AM                                                                                                                    
                                                                                                                                
ALPHEUS  BULLARD, Attorney  at  Law,  Legislative Legal  Council,                                                               
Legislative  Legal  and  Research Services,  Legislative  Affairs                                                               
Agency, indicated  that Representative Gruenberg's  suggestion to                                                               
leave the grammatical changes in the bill would do no harm.                                                                     
                                                                                                                                
8:43:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  moved to  adopt Conceptual  Amendment 1                                                               
to  Amendment 2,  so that  Section  9 of  the bill  would not  be                                                               
deleted,  [and the  reference  in Section  9  to AS  15.13.067(3)                                                               
would remain in Version E].                                                                                                     
                                                                                                                                
CHAIR  LYNN  asked  Mr.  Bullard if  Conceptual  Amendment  1  to                                                               
Amendment 2 speaks to the heart of the bill and is necessary.                                                                   
                                                                                                                                
8:45:58 AM                                                                                                                    
                                                                                                                                
MR. BULLARD answered  that Conceptual Amendment 1  to Amendment 2                                                               
would have no substantive effect, and  while it may be "nice" for                                                               
all  grammar  in  statute  to  be  perfect,  it  is  not  legally                                                               
necessary.                                                                                                                      
                                                                                                                                
8:46:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  objected  to Conceptual  Amendment  1  to                                                               
Amendment 2.   He said the new Section 7  proposed in Amendment 2                                                               
seems to  conflict with Section  9, because the language  in each                                                               
varies regarding those who can make expenditures.                                                                               
                                                                                                                                
MR.  BULLARD clarified  that Section  9  speaks to  who may  make                                                               
expenditures on  behalf of  a candidate,  while the  proposed new                                                               
Section 7  "is a little bit  more global," because "it  speaks to                                                               
who may  make expenditures that are  not independent expenditures                                                               
under  the chapter,  not  just on  behalf of  a  candidate."   In                                                               
response to  a follow-up question,  he said while  paragraph (1),                                                               
in Section 9,  addresses expenditures authorized by  or on behalf                                                               
of  a  candidate, paragraph  (2)  proposes  that only  a  group's                                                               
campaign  treasurer may  make expenditures  for that  group.   He                                                               
said  under  the proposed  Section  7  in  Amendment 2,  a  group                                                               
campaign   treasurer   would   be  allowed   to   make   campaign                                                               
expenditures, if that group is registered.                                                                                      
                                                                                                                                
8:52:26 AM                                                                                                                    
                                                                                                                                
MR.  BULLARD,   in  response  to  Chair   Lynn,  reiterated  that                                                               
Conceptual Amendment 1  to Amendment 2 would  have no substantive                                                               
effect of which he is aware.                                                                                                    
                                                                                                                                
8:52:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG   noted  that   the  language   in  the                                                               
aforementioned  AS  15.13.067 is  included  in  the proposed  new                                                               
Section  7 in  Amendment  2.   He  asked Mr.  Bullard  why it  is                                                               
important  to  take out  the  reference  to AS  15.13.067(3),  as                                                               
proposed in Version E.                                                                                                          
                                                                                                                                
8:54:11 AM                                                                                                                    
                                                                                                                                
MR. BULLARD  explained that in  Version E, AS 15.13.067  would be                                                               
repealed, which  is why  the reference to  that statute  would be                                                               
removed.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  GRUENBERG  reiterated  that  if  Amendment  2  is                                                               
adopted, reference to that statute would be in the bill.                                                                        
                                                                                                                                
8:54:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG withdrew  [Conceptual]  Amendment 1  to                                                               
Amendment 2.                                                                                                                    
                                                                                                                                
8:54:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG moved to  adopt Amendment 2 to Amendment                                                               
2, so that  Section 9 of the  bill would not be  deleted, and the                                                               
reference  in Section  9  to  AS 15.13.067(3)  would  be left  in                                                               
Version E.                                                                                                                      
                                                                                                                                
8:55:48 AM                                                                                                                    
                                                                                                                                
MR.  BULLARD  offered  his  understanding  that  Amendment  2  to                                                               
Amendment  2  is  the  same   conceptual  amendment  as  was  the                                                               
withdrawn Conceptual Amendment 1 to  Amendment 2.  In response to                                                               
a follow-up  question, he  said he  would describe  the reference                                                               
[to  AS 15.13.067(3),  on page  5, line  5, of  Version E],  as a                                                               
"helpful  reference."   He  stated that  currently  a group  that                                                               
makes  expenditures  is  required   to  be  registered  under  AS                                                               
15.13.050, whether or not that is referenced in 15.13.067.                                                                      
                                                                                                                                
8:57:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON said she  does not understand  why [the                                                               
reference to AS  15.13.067] is being retained when  it is covered                                                               
in another statute.                                                                                                             
                                                                                                                                
REPRESENTATIVE  GRUENBERG  opined  that  it is  helpful  to  have                                                               
reference to current law in this section.                                                                                       
                                                                                                                                
8:57:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON objected to Amendment 2 to Amendment 2.                                                                   
                                                                                                                                
8:57:54 AM                                                                                                                    
                                                                                                                                
A roll  call vote was  taken.  Representatives  Gatto, Gruenberg,                                                               
and  Petersen voted  in  favor  of Amendment  2  to Amendment  2.                                                               
Representatives Johnson,  Seaton, Wilson, and Lynn  voted against                                                               
it.  Therefore,  Amendment 2 to Amendment 2 failed  to be adopted                                                               
by a vote of 3-4.                                                                                                               
                                                                                                                                
CHAIR  LYNN said  he would  like the  committee to  focus on  the                                                               
substance of the bill rather than "tweaking the grammar."                                                                       
                                                                                                                                
8:58:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG removed his objection to Amendment 2.                                                                  
                                                                                                                                
8:59:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GATTO noted that  throughout Version E, references                                                               
to  candidate,  group,  nongroup   entity,  and  individual  were                                                               
replaced  with   the  term,   "person";  however,   the  proposed                                                               
Amendment 2  includes all  those eliminated terms.   He  asked if                                                               
that is intentional.                                                                                                            
                                                                                                                                
9:00:06 AM                                                                                                                    
                                                                                                                                
MR. BULLARD responded as follows:                                                                                               
                                                                                                                                
     That  language  does   different  things  in  different                                                                    
     sections of the  bill.  In Section 1,  that's a section                                                                    
     that just  provides to whom the  chapter is applicable.                                                                    
     There,   by   removing  that   language,   "candidate",                                                                    
     "group",   "nongroup    entity",   "municipality",   or                                                                    
     "individual", ... it makes clear  that AS 15.13 - state                                                                    
     elections - applies to all persons equally.                                                                                
                                                                                                                                
     In the  amendment, for example, the  restored Section 7                                                                    
     speaks  to  who  may  make expenditures  that  are  not                                                                    
     independent  expenditures:   a  candidate,  individual,                                                                    
     group, or nongroup entity.  I  did not want there to be                                                                    
     any  risk that  there  may be  some perceived  loophole                                                                    
     that  a  corporation  or  a  union  -  the  subject  of                                                                    
     Citizens   United  -   would  be   able  to   make  ...                                                                  
     expenditures.     Citizens   United  deals   only  with                                                                  
     independent expenditures.  That's  why that language is                                                                    
     restored.                                                                                                                  
                                                                                                                                
9:01:16 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN asked if there was any further objection to Amendment                                                                
2.  No objection was stated, therefore, Amendment 2 was adopted.                                                                
                                                                                                                                
9:01:34 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN moved to adopt Amendment 3, labeled 26-LS1495\E.2,                                                                   
Bullard, 3/8/10, which read as follows:                                                                                         
                                                                                                                                
     Page 4, following line 9:                                                                                                  
          Insert a new bill section to read:                                                                                    
        "*  Sec. 7.  AS 15.13  is amended  by  adding a  new                                                                
     section to read:                                                                                                           
          Sec. 15.13.068. Expenditures and contributions by                                                                   
     foreign  nationals. (a)  A  foreign  national may  not,                                                                  
     directly or indirectly, in  connection with an election                                                                    
     under this chapter, make  a contribution or expenditure                                                                    
     or  make  an  express  or implied  promise  to  make  a                                                                    
     contribution or expenditure.                                                                                               
          (b)  In this section, "foreign national" includes                                                                     
               (1)  a foreign government, every political                                                                       
     subdivision  of a  foreign government,  every official,                                                                    
     agent, or  representative of a foreign  government, and                                                                    
     every  agency, corporation,  or instrumentality  of the                                                                    
     foreign government  or of a political  subdivision of a                                                                    
     foreign government;                                                                                                        
               (2)  a person outside of the United States,                                                                      
     unless  it  is  established   that  the  person  is  an                                                                    
     individual  and  a  citizen of  and  domiciled  in  the                                                                    
     United States, or that the  person is not an individual                                                                    
     and is  organized under or  created by the laws  of the                                                                    
     United States  or of any  state or other  place subject                                                                    
     to the  jurisdiction of the  United States and  has its                                                                    
     principal place of business in the United States;                                                                          
               (3)         a    partnership,    association,                                                                    
     corporation,  organization,  or  other  combination  of                                                                    
     persons  organized  under the  laws  of  or having  its                                                                    
     principal place of business in a foreign country; or                                                                       
               (4)  a domestic subsidiary of an entity                                                                          
     described  in  (1)  -  (3)  of  this  subsection  or  a                                                                    
     domestic corporation controlled  by an entity described                                                                    
     in  (1)  -  (3)  of this  subsection,  if  that  entity                                                                    
     finances,  participates in,  or  selects  a person  who                                                                    
     participates  in the  making  of a  contribution or  an                                                                    
     expenditure  of  the  domestic subsidiary  or  domestic                                                                    
     corporation.                                                                                                               
          (c)  The provisions of this section apply only to                                                                     
     the extent permitted by federal law."                                                                                      
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
9:01:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON objected for discussion purposes.                                                                         
                                                                                                                                
9:01:49 AM                                                                                                                    
                                                                                                                                
MR. SICA noted  that since the adopted Amendment  2 added Section                                                               
7, the Section  7 in Amendment 3 would most  likely be changed to                                                               
Section 8.   He  said Amendment  3 essentially  parallels federal                                                               
law  on  prohibition  of  foreign  nationals  making  independent                                                               
expenditures.    He noted  that  there  is  a memorandum  in  the                                                               
committee packet with further details.                                                                                          
                                                                                                                                
CHAIR  LYNN  said his  prime  concern  relates  to the  issue  of                                                               
foreign nationals influencing elections.                                                                                        
                                                                                                                                
9:02:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON recalled that  the committee had heard from                                                               
[Mr.  Ptasin],  an  attorney  from the  Office  of  the  Attorney                                                               
General  who  represents  the Alaska  Public  Offices  Commission                                                               
(APOC), who  had testified that it  would be difficult to  take a                                                               
violation to either  APOC or the state court  without language in                                                               
state law paralleling existing federal law.                                                                                     
                                                                                                                                
9:03:51 AM                                                                                                                    
                                                                                                                                
MR. SICA  noted that Mr.  Ptasin was available  telephonically to                                                               
answer questions.                                                                                                               
                                                                                                                                
9:04:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  removed  his objection  to  Amendment  3.                                                               
There being no further objection, Amendment 3 was adopted.                                                                      
                                                                                                                                
9:04:10 AM                                                                                                                    
                                                                                                                                
MR.  SICA   directed  attention  to  Amendment   4,  labeled  26-                                                               
LS1495\E.3, Bullard, 3/8/10, which read as follows:                                                                             
                                                                                                                                
     Page 5, line 22, following "the":                                                                                      
          Insert "name and city and state of residence or                                                                   
     principal place of business, as  applicable, of each of                                                                
     the"                                                                                                                   
                                                                                                                                
     Page 5, line 24:                                                                                                           
          Delete    ",   with    the    words   "top    five                                                                
     contributors."[.]"                                                                                                     
          Insert "."                                                                                                            
                                                                                                                                
     Page 6, following line 9:                                                                                                  
          Insert a new subsection to read:                                                                                      
          "(d)  To satisfy the requirements of (a)(2)(C) of                                                                     
     this  section and,  if  applicable,  (a)(2)(D) of  this                                                                    
     section, the following statement  or statements must be                                                                    
     read, in  a manner that  is easily heard, or  placed in                                                                    
     the communication  so as to be  easily discernable, or,                                                                    
     in  a communication  that is  transmitted  by a  method                                                                    
     that includes both audio and  video components, be read                                                                    
     in  a manner  that is  easily heard  and placed  in the                                                                    
     communication so as to be easily discernable:                                                                              
          This communication was paid for by (person's name                                                                     
     and city and state of principal place of business).                                                                        
          The top contributors of (person's name) are (the                                                                      
     name  and  city and  state  of  residence or  principal                                                                    
     place  of  business,  as  applicable,  of  the  largest                                                                    
     contributors       to       the      person       under                                                                    
     AS 15.13.090(a)(2)(D))."                                                                                                   
                                                                                                                                
MR. SICA explained that if Amendment 4 was adopted, Section                                                                     
10(a)(2)(D), on page 5, beginning on line 22, would read as                                                                     
follows:                                                                                                                        
                                                                                                                                
                    (D) identify the name and city and                                                                      
     state of  residence or principal place  of business, as                                                                
     applicable,  of  each  of  the  person's  five  largest                                                                
     contributors under  AS 15.13.040(e)(5), if  any, during                                                                
     the   12-month   period   before  the   date   of   the                                                                
     communication.                                                                                                         
                                                                                                                                
CHAIR LYNN said Amendment 4 would add the audio component to                                                                    
campaign advertising.                                                                                                           
                                                                                                                                
9:06:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON said he thinks  the audio would be read so                                                               
fast that it  would not be discernable.  People  who want to know                                                               
who  sponsors a  campaign advertisement  can go  to a  website to                                                               
find out that  information.  He said he does  not want to clutter                                                               
the air  or obliterate the message,  and he warned that  doing so                                                               
could lead  to law suits.   He said  he does not  support listing                                                               
the top contributors.                                                                                                           
                                                                                                                                
9:09:33 AM                                                                                                                    
                                                                                                                                
CHAIR   LYNN  moved   to  adopt   Amendment   4  [text   provided                                                               
previously], then he withdrew his motion to adopt Amendment 4.                                                                  
                                                                                                                                
9:10:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  moved to  adopt Amendment 5,  [which is                                                               
identical to the withdrawn Amendment 4].                                                                                        
                                                                                                                                
REPRESENTATIVE JOHNSON objected.                                                                                                
                                                                                                                                
9:10:35 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG spoke  to  Amendment 5.    He said  the                                                               
proposed  disclaimer is  shorter  than existing  law, which  will                                                               
save time, because  it will not require that  the physical street                                                               
or post  office box be  read - only  the company name,  city, and                                                               
state would have to be read.                                                                                                    
                                                                                                                                
9:11:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  moved to  adopt a  conceptual amendment                                                               
to Amendment 5, which would  insert "three" between "The top" and                                                               
"contributors", and would not require  a company's full name.  As                                                               
an  example  of the  latter,  Representative  Gruenberg said  The                                                               
Coca-Cola Company could shorten its name to Coca-Cola.                                                                          
                                                                                                                                
9:12:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  objected to  the conceptual  amendment to                                                               
Amendment 5, saying it would make no difference.                                                                                
                                                                                                                                
9:12:42 AM                                                                                                                    
                                                                                                                                
CHAIR  LYNN noted  that  [Representative  Johnson has  experience                                                               
related to television and radio].                                                                                               
                                                                                                                                
9:13:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GRUENBERG   maintained   that   the   conceptual                                                               
amendment to Amendment  5 would shorten the  process, and further                                                               
changes in that direction could be made with further amendments.                                                                
                                                                                                                                
9:13:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  in  response to  Representative  Gatto                                                               
clarified  the  changes  that  would  be  made  by  the  proposed                                                               
conceptual amendment to Amendment 5.                                                                                            
                                                                                                                                
9:14:41 AM                                                                                                                    
                                                                                                                                
A  roll   call  vote  was  taken.     Representatives  Gruenberg,                                                               
Petersen,  Seaton,  Wilson,  and  Gatto voted  in  favor  of  the                                                               
conceptual  amendment to  Amendment 5.   Representatives  Johnson                                                               
and Lynn voted  against it.  Therefore,  the conceptual amendment                                                               
to Amendment 5 was adopted by a vote of 5-2.                                                                                    
                                                                                                                                
9:15:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  maintained his  objection to  Amendment 5                                                               
[as amended].                                                                                                                   
                                                                                                                                
REPRESENTATIVE GRUENBERG stated that  the purpose of the proposed                                                               
bill  is  to provide  transparency.    He  said Amendment  5,  as                                                               
amended, would help  those who are visually impaired  know who is                                                               
behind a  (television) advertisement, because they  would be able                                                               
to hear the names of campaign contributors announced.                                                                           
                                                                                                                                
9:17:42 AM                                                                                                                    
                                                                                                                                
MR.  BULLARD,  in  response to  Representative  Seaton,  directed                                                               
attention to the  following language in Amendment  5, as amended:                                                               
"(d) To  satisfy the  requirements of  (a)(2)(C) of  this section                                                               
and,  if applicable,  (a)(2)(D)  of this  section, the  following                                                               
statement or  statements must be  read".  Mr.  Bullard explained,                                                               
"The  last  two  words  -  'if applicable'  -  make  that  second                                                               
required disclosure  of the top  contributors applicable  only if                                                               
the entity has contributed.   If there are no contributors, there                                                               
is no need to disclose the contributors."                                                                                       
                                                                                                                                
REPRESENTATIVE SEATON asked  if that provision would  still be in                                                               
the bill without Amendment 5, as amended.                                                                                       
                                                                                                                                
MR. BULLARD directed attention to  language on page 5, [lines 22-                                                               
24], of Version E, which read as follows:                                                                                       
                                                                                                                                
                    (D) identify the person's five largest                                                                  
     contributors under  AS 15.13.040(e)(5), if  any, during                                                                
     the   12-month   period   before  the   date   of   the                                                                
     communication, with the words "top five contributors."                                                                 
                                                                                                                                
MR.  BULLARD stated  that the  words,  "if any"  serve that  same                                                           
function.                                                                                                                       
                                                                                                                                
9:19:06 AM                                                                                                                    
                                                                                                                                
MR. BULLARD,  in response to  Representative Johnson, said  he is                                                               
not sure  how the language of  Amendment 5, as amended,  would be                                                               
interpreted if  there were 10  contributors donating  exactly the                                                               
same amount.                                                                                                                    
                                                                                                                                
9:19:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  said  he  thinks  that  issue  is  not                                                               
problematic, because APOC would issue  some kind of regulation on                                                               
the subject.   He said, "Anytime you have a  number there, that's                                                               
something that's going to have to be interpreted."                                                                              
                                                                                                                                
CHAIR LYNN suggested  the line could be drawn  by determining the                                                               
six  largest  corporations,  and  that  that  could  be  done  by                                                               
regulation.                                                                                                                     
                                                                                                                                
9:20:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GATTO said if there  were six contributors who all                                                               
gave the  same highest amount, they  would all be tied  for first                                                               
and, thus, would all have to be  listed.  Then, if there were two                                                               
contributors who  gave less than  the six contributors  gave, but                                                               
the same  amount as each other,  they would be have  to be listed                                                               
in second place, and so on, he said.                                                                                            
                                                                                                                                
REPRESENTATIVE  GRUENBERG  pointed  out,   "That's  in  the  bill                                                               
itself, not in the amendment."                                                                                                  
                                                                                                                                
9:21:17 AM                                                                                                                    
                                                                                                                                
A  roll   call  vote  was  taken.     Representatives  Gruenberg,                                                               
Petersen, Seaton,  and Gatto  voted in favor  of Amendment  5, as                                                               
amended.    Representatives  Wilson,   Johnson,  and  Lynn  voted                                                               
against it.   Therefore, Amended 5, as amended, was  adopted by a                                                               
vote of 4-3.                                                                                                                    
                                                                                                                                
9:22:34 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG,  in response to  Representative Seaton,                                                               
said the adopted Amendment 5,  as amended, speaks only to listing                                                               
contributors during  an audio  portion of  an advertisement.   He                                                               
said it does not relate to  other language in the bill related to                                                               
numbers  of contributors,  but  said  he would  not  object to  a                                                               
conforming amendment.                                                                                                           
                                                                                                                                
9:23:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  moved to adopt Conceptual  Amendment 6, so                                                               
that any  references to  the top five  contributors in  Version E                                                               
would be changed  to the top three contributors.   There being no                                                               
objection, Conceptual Amendment 6 was adopted.                                                                                  
                                                                                                                                
9:24:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PETERSEN moved to  adopt Amendment 7, labeled, 26-                                                               
LS1495\E.5, Wayne/Bullard, 3/8/10, which read as follows:                                                                       
                                                                                                                                
     Page 6, line 4:                                                                                                            
          Delete "a new subsection"                                                                                             
          Insert "new subsections"                                                                                              
                                                                                                                                
     Page 6, following line 9:                                                                                                  
     Insert a new subsection to read:                                                                                           
          "(d)  If a foreign government holds more than a                                                                       
     10 percent ownership interest in  a person paying for a                                                                    
     communication under  (a) of  this section,  the foreign                                                                    
     government   must   be   clearly  identified   in   the                                                                    
     communication as  a partial owner  of the person.  If a                                                                    
     foreign government  holds more  than 50 percent  of the                                                                    
     ownership   interest  in   a   person   paying  for   a                                                                    
     communication under  (a) of  this section,  the foreign                                                                    
     government   must   be   clearly  identified   in   the                                                                    
     communication  as the  majority  owner and  controlling                                                                    
     interest  holder of  the person.  A foreign  government                                                                    
     identified  in a  communication  under this  subsection                                                                    
     must be  identified by the foreign  government's common                                                                    
     or   usual   name.   In   this   subsection,   "foreign                                                                    
     government"  includes  every political  subdivision  of                                                                    
     the  foreign  government,  every  official,  agent,  or                                                                    
     representative  of the  foreign  government, and  every                                                                    
     agency, corporation, or  instrumentality of the foreign                                                                    
     government  or  of  a   political  subdivision  of  the                                                                    
     foreign government."                                                                                                       
                                                                                                                                
REPRESENTATIVES  SEATON   and  WILSON  objected   for  discussion                                                               
purposes.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  PETERSEN  said  there  are  many  companies  from                                                               
around the world  who get involved with the  extraction of Alaska                                                               
resources,  and in  many instances,  these  corporations form  an                                                               
Alaskan corporation subsidiary.   He opined that  it is important                                                               
that citizens of Alaska know  when a foreign-based corporation is                                                               
making expenditures  to influence  an Alaska  election.   He said                                                               
Amendment 7 allows for transparency.                                                                                            
                                                                                                                                
9:25:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON offered his  understanding that by adopting                                                               
Amendment  3  previously,  the   committee  adopted  the  federal                                                               
prohibition on  any such subsidiary,  which is why he  objects to                                                               
Amendment 7.                                                                                                                    
                                                                                                                                
9:26:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG questioned  if  Amendment  7 is  wholly                                                               
unnecessary or just partly.                                                                                                     
                                                                                                                                
9:27:25 AM                                                                                                                    
                                                                                                                                
MR. BULLARD  relayed that  Amendment 7  applies to  entities that                                                               
the prohibition  in Amendment 3  does not address.   He explained                                                               
that  Amendment 3  speaks to  entities that  are controlled  by a                                                               
foreign   national,  while   Amendment   7   speaks  to   foreign                                                               
governments that hold more than  a 10 percent ownership interest.                                                               
He emphasized that there is a difference between the two.                                                                       
                                                                                                                                
9:28:10 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  offered  his  understanding  that  the                                                               
language in Amendment  7 that is redundant and  should be deleted                                                               
is  that which  addresses a  foreign government  that holds  more                                                               
than 50 percent of the ownership  interest in a person paying for                                                               
a communication.                                                                                                                
                                                                                                                                
MR.  BULLARD  said  Representative  Gruenberg  is  correct.    In                                                               
response to a  query from Representative Gruenberg  as to whether                                                               
the  last sentence  of Amendment  7  should also  be removed,  he                                                               
stated:                                                                                                                         
                                                                                                                                
          The topic is covered, but there is no common                                                                          
        definition provided for the chapter, so without                                                                         
     further  review  of how  these  two  work together,  it                                                                    
     would be  my recommendation  if you  wish to  adopt the                                                                    
     substance  of  Amendment 7  ...,  that  you leave  that                                                                    
     ultimate sentence.                                                                                                         
                                                                                                                                
9:31:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG   moved  to   adopt  an   amendment  to                                                               
Amendment 7, to delete the following language:                                                                                  
                                                                                                                                
     If a foreign  government holds more than  50 percent of                                                                    
     the  ownership  interest  in  a  person  paying  for  a                                                                    
     communication under  (a) of  this section,  the foreign                                                                    
     government   must   be   clearly  identified   in   the                                                                    
     communication  as the  majority  owner and  controlling                                                                    
     interest holder of the person.                                                                                             
                                                                                                                                
There  being  no objection,  the  amendment  to Amendment  7  was                                                               
adopted.                                                                                                                        
                                                                                                                                
9:33:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  cited language in Amendment  3, which read                                                               
as follows:                                                                                                                     
                                                                                                                                
          (b)  In this section, "foreign national" includes                                                                     
     (1)  a foreign  government, every political subdivision                                                                    
     of a foreign government                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON asked, "How is  that not what we're talking                                                               
about in Amendment 7?"                                                                                                          
                                                                                                                                
MR. BULLARD responded as follows:                                                                                               
                                                                                                                                
     It is absolutely what is  discussed in Amendment 7, but                                                                    
     that is  not a definition  that is provided for  all of                                                                    
     AS  15.13;   that  is   confined  to   that  particular                                                                    
     statutory section.                                                                                                         
                                                                                                                                
9:34:34 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  removed his  objection to Amendment  7, as                                                               
amended.   [Representative  Wilson's previously  stated objection                                                               
was  treated as  removed.]   There  being  no further  objection,                                                               
Amendment 7, as amended, was adopted.                                                                                           
                                                                                                                                
9:34:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PETERSEN  moved to adopt Amendment  8, labeled 26-                                                               
LS1495\E.6, Wayne/Bullard, 3/8/10, which read as follows:                                                                       
                                                                                                                                
     Page 3, line 27, following "contributor":                                                                              
          Insert ";                                                                                                         
               (6)  for a person that is a for-profit                                                                       
       entity, the address used by the person for federal                                                                   
       income tax purposes, if different than the address                                                                   
     provided under (1) of this subsection"                                                                                 
                                                                                                                                
     Page 5, line 21, following "business":                                                                                 
          Insert "if the person is a nonprofit entity, or                                                                   
     the address used by the person for federal income tax                                                                  
     purposes if the person is a for-profit entity"                                                                         
                                                                                                                                
9:35:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON objected for discussion purposes.                                                                         
                                                                                                                                
REPRESENTATIVE PETERSEN  explained the reason for  Amendment 8 is                                                               
because there are  corporations who move their home  offices to a                                                               
foreign location for the purposes of avoiding income taxes.                                                                     
                                                                                                                                
9:37:30 AM                                                                                                                    
                                                                                                                                
MR.  BULLARD,  in response  to  Representative  Seaton, said  the                                                               
language in  Version E -  which requires each person  required to                                                               
file  an expenditure  report under  this section  to include  the                                                               
name,  address,   principal  occupation,  and  employer   of  the                                                               
individual filing  the report -  is found  on page 3,  lines 8-9.                                                               
Amendment 8  would require  that if that  person has  a different                                                               
address for tax purposes, that  that address would be the address                                                               
used instead.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  SEATON questioned  how  it would  be possible  to                                                               
determine  if a  person is  correctly reporting  an address.   In                                                               
response   to    Representative   Petersen,   he    offered   his                                                               
understanding  that under  the proposed  bill, foreign  nationals                                                               
and  foreign  corporations  are   already  not  allowed  to  make                                                               
campaign contribution expenditures.                                                                                             
                                                                                                                                
9:40:29 AM                                                                                                                    
                                                                                                                                
MR. BULLARD, in response to  Representatives Seaton and Petersen,                                                               
stated that  if the sole  purpose of  Amendment 8 is  to identify                                                               
companies that have  taken their tax address offshore,  it is his                                                               
understanding that  any business or  entity that has  provided an                                                               
offshore  address would  be prohibited,  not  only under  federal                                                               
law, but also under Amendment 3.                                                                                                
                                                                                                                                
CHAIR  LYNN offered  his understanding  that Amendment  8 is  not                                                               
needed.                                                                                                                         
                                                                                                                                
9:41:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PETERSEN  withdrew his  motion to  adopt Amendment                                                               
8.                                                                                                                              
                                                                                                                                
9:41:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON moved to  adopt Conceptual Amendment 9, to                                                               
change Section 8 in Version E so that it read as follows:                                                                       
                                                                                                                                
     *Sec.8.AS 15.13.084 is amended to read:                                                                                  
          Sec. 15.13.084. Prohibited expenditures. A person                                                                   
     may not make an expenditure                                                                                                
               (1) anonymously or using a fictitious name                                                                       
     or using the name of another person.                                                                                       
                                                                                                                                
REPRESENTATIVE  JOHNSON  explained  that Conceptual  Amendment  9                                                               
would  remove   all  exceptions  to  the   provision  prohibiting                                                               
expenditures made anonymously.                                                                                                  
                                                                                                                                
9:43:11 AM                                                                                                                    
                                                                                                                                
MR. BULLARD related:                                                                                                            
                                                                                                                                
     The  U.S.  Supreme  Court, in  [McIntyre,  Executor  of                                                                  
     Estate   of  McIntyre,   Deceased  v.   Ohio  Elections                                                                  
     Commission],   recognized    a   certain    right   for                                                                  
     individuals to make  certain anonymous contributions if                                                                    
     they limited  limited rights,  and that's  what Section                                                                    
     15.13.084 currently provides for.   It's crafted to the                                                                    
     ... individual who's making certain  sort of de minimis                                                                    
     contributions for  billboards, et cetera.   It ... does                                                                    
     not  apply  to ...  people  spending  great amounts  of                                                                    
     money or persons other than individuals.                                                                                   
                                                                                                                                
REPRESENTATIVE   JOHNSON  remarked   that   buying  a   full-page                                                               
newspaper  advertisement anonymously  is neither  inexpensive nor                                                               
de minimis.                                                                                                                     
                                                                                                                                
9:44:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTO  said  it  is  common  to  see  names  like                                                               
"Americans  for Progress"  or "Americans  for Health"  and wonder                                                               
who  is  behind the  name.    He  said he  thinks  Representative                                                               
Johnson is  "on to something here,"  and he related that  he does                                                               
not like anonymous advertising.                                                                                                 
                                                                                                                                
9:44:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG emphasized his support of Amendment 9.                                                                 
                                                                                                                                
REPRESENTATIVE  GRUENBERG   moved  to   adopt  an   amendment  to                                                               
Conceptual Amendment  9 to add  a severability clause so  that if                                                               
any   provision  in   the   proposed   legislation  is   declared                                                               
unconstitutional, it shall not affect  the remainder of the bill.                                                               
He asked  Mr. Bullard to provide  a legal memorandum to  the next                                                               
committee of referral - the  House Judiciary Standing Committee -                                                               
regarding the aforementioned McIntyre case  and how it relates to                                                             
"this point."                                                                                                                   
                                                                                                                                
9:46:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  said he  supports the  proposed amendment                                                               
to Conceptual Amendment 9.                                                                                                      
                                                                                                                                
9:46:11 AM                                                                                                                    
                                                                                                                                
CHAIR  LYNN   announced  that  there  being   no  objection,  the                                                               
amendment to Conceptual Amendment 9 was adopted.                                                                                
                                                                                                                                
CHAIR  LYNN  asked  if  there was  any  objection  to  Conceptual                                                               
Amendment 9, [as amended].  There being none, it was so ordered.                                                                
                                                                                                                                
9:47:09 AM                                                                                                                    
                                                                                                                                
MR.  BULLARD, in  response  to  Representative Seaton,  confirmed                                                               
that  he would  send a  legal memorandum  to the  House Judiciary                                                               
Standing  Committee explaining  the  intent of  the amendment  to                                                               
Conceptual Amendment 9.                                                                                                         
                                                                                                                                
9:48:43 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN,  after ascertaining  that there was  no one  else who                                                               
wished to testify, closed public testimony.                                                                                     
                                                                                                                                
9:48:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON directed  attention to advice  given by                                                               
Mr. Bullard  in the last  paragraph of a memorandum,  dated March                                                               
3,  2010,  [included in  the  committee  packet], which  read  as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     Similarly,  if  all  independent expenditures  must  be                                                                    
     reported  to  the   Alaska  Public  Offices  Commission                                                                    
     within  24 hours  of being  made, there  is no  need to                                                                    
     require  an independent  expenditure report  to include                                                                    
     expenditures "not yet reported  that [were] made before                                                                    
     the filing of the report."   This sentence was included                                                                    
     in  HB   409  (26-LS1495\R)   to  ensure   against  the                                                                    
     possibility  that,   in  the  sentence's   absence  the                                                                    
     statute  could be  interpreted  to permit  expenditures                                                                    
     that  are made  10 days  before an  election to  not be                                                                
     reported until  the day  following the  election, where                                                                    
     an  expenditure made  within nine  days of  an election                                                                    
     would  have  to be  reported  within  24 hours  of  the                                                                    
     expenditure   being   made.      If   all   independent                                                                    
     expenditures must  be disclosed  within 24  hours, this                                                                    
     sentence is  no longer  necessary for the  purposes for                                                                    
     which  it was  originally included,  is redundant,  and                                                                    
     should be removed from the bill.                                                                                           
                                                                                                                                
REPRESENTATIVE P. WILSON  asked if that issue  had been addressed                                                               
or if another amendment was necessary.                                                                                          
                                                                                                                                
9:49:41 AM                                                                                                                    
                                                                                                                                
MR.  BULLARD  said  he  believes   that  was  reconciled  through                                                               
[Amendment 3, labeled 26-LS1495\R.3, Bullard, 3/1/10].                                                                          
                                                                                                                                
9:50:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  said  he  will  be  working  on  another                                                               
amendment   in  the   next   committee   of  referral   regarding                                                               
expenditures made  to influence  specific legislation  and "other                                                               
things  that  don't appear  in  the  election."   He  offered  an                                                               
example.                                                                                                                        
                                                                                                                                
CHAIR  LYNN said  he understands  what Representative  Johnson is                                                               
saying and concurs.                                                                                                             
                                                                                                                                
9:51:58 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON  said  she does  not  like  misleading                                                               
information.                                                                                                                    
                                                                                                                                
9:52:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PETERSEN  opined that the committee  has made some                                                               
good changes to the proposed legislation.                                                                                       
                                                                                                                                
9:53:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  moved to report the  proposed committee                                                               
substitute  (CS)  for  HB   409,  Version  26-LS1495\E,  Bullard,                                                               
3/2/10,   as   amended,   out  of   committee   with   individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection, CSHB  409(STA) was reported out of  the House State                                                               
Affairs Standing Committee.                                                                                                     
                                                                                                                                

Document Name Date/Time Subjects
Draft CSHB 409 Version E HSTA 3/9/2010 8:00:00 AM
HB 409
Draft CSHB 409 Version E memo HSTA 3/9/2010 8:00:00 AM
HB 409
3-9-10 HB 409 Amendment Packet including CS Version E and all legal memos.pdf HSTA 3/9/2010 8:00:00 AM
HB 409
01 HB 251 Version R.pdf HSTA 3/9/2010 8:00:00 AM
HSTA 3/11/2010 8:00:00 AM
HB 251
02 HB 251 Sponsor Statement.pdf HSTA 3/9/2010 8:00:00 AM
HSTA 3/11/2010 8:00:00 AM
HB 251
03 HB 251 LETTER Alaska Towing Assn.pdf HSTA 3/9/2010 8:00:00 AM
HSTA 3/11/2010 8:00:00 AM
HB 251
HB251-CED-COM-3-8-10.pdf HSTA 3/9/2010 8:00:00 AM
HSTA 3/11/2010 8:00:00 AM
HB 251
HB251-DOT&PF-COM-3-8-10.pdf HSTA 3/9/2010 8:00:00 AM
HSTA 3/11/2010 8:00:00 AM
HB 251
01 HCR20.pdf HSTA 3/9/2010 8:00:00 AM
02 HCR20 SS.pdf HSTA 3/9/2010 8:00:00 AM
HCR 20
03 DVSA Stats.pdf HSTA 3/9/2010 8:00:00 AM
HCR 20
3-8-10 HCR 20 Fiscal Note.pdf HSTA 3/9/2010 8:00:00 AM
HCR 20