Legislature(2021 - 2022)BUTROVICH 205

03/03/2022 03:30 PM Senate STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 136 LIMITATIONS ON FIREARMS RESTRICTIONS TELECONFERENCED
Moved CSSB 136(CRA) Out of Committee
+= SB 152 LEGISLATIVE SESSIONS IN ANCHORAGE TELECONFERENCED
<Bill Hearing Canceled>
-- Invited & Public Testimony --
+= SB 167 ELECTIONS; FRAUD; BALLOTS TELECONFERENCED
<Bill Hearing Canceled>
-- Invited & Public Testimony --
+= HB 123 STATE RECOGNITION OF TRIBES TELECONFERENCED
<Bill Hearing Canceled>
-- Invited Testimony --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
-- Bills Rescheduled from 03/01/22 --
*+ SR 3 NGO SUPPORT FOR STATE VETERANS TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
+= SJR 20 URGE PASSAGE OF HEARING PROTECTION ACT TELECONFERENCED
<Bill Hearing Canceled>
-- Invited & Public Testimony --
+= SB 92 MISSING PERSONS UNDER 21 YEARS OLD TELECONFERENCED
<Bill Hearing Canceled>
-- Invited & Public Testimony --
+= SB 145 LEGISLATOR RETROACTIVE PER DIEM TELECONFERENCED
Moved SB 145 Out of Committee
-- Invited & Public Testimony --
+= HB 157 APOC; REPORT REFERENDA/RECALL CONTRIBUTOR TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
+= SB 115 ADDRESS CONFIDENTIALITY PROGRAM TELECONFERENCED
Moved SB 115 Out of Committee
-- Invited & Public Testimony --
+= SB 161 POLITICAL PARTY DEFINITION TELECONFERENCED
Moved SB 161 Out of Committee
<Bill Again Added to Agenda After Cancellation>
-- Invited & Public Testimony --
**Streamed live on AKL.tv**
        HB 157-APOC; REPORT REFERENDA/RECALL CONTRIBUTOR                                                                    
                                                                                                                                
3:58:57 PM                                                                                                                    
CHAIR SHOWER  announced the  consideration of  CS FOR  HOUSE BILL                                                               
NO. 157(FIN) "An Act requiring  the disclosure of the identity of                                                               
certain persons, groups, and nongroup  entities that expend money                                                               
in support  of or  in opposition  to an  application filed  for a                                                               
state referendum or recall election;  relating to the location of                                                               
offices  for  the  Alaska  Public   Offices  Commission  and  the                                                               
locations at which certain statements  and reports filed with the                                                               
commission  are made  available; relating  to the  duties of  the                                                               
Alaska  Public  Offices  Commission;  clarifying  the  limits  on                                                               
making,   accepting,   and   reporting  certain   cash   campaign                                                               
contributions; relating to campaign  finance reporting by certain                                                               
groups; increasing the time the  Alaska Public Offices Commission                                                               
has to respond to a request  for an advisory opinion; repealing a                                                               
reporting  requirement  for  certain contributions;  relating  to                                                               
contribution limits  and recall  campaigns; and providing  for an                                                               
effective date."                                                                                                                
                                                                                                                                
4:00:00 PM                                                                                                                    
REPRESENTATIVE   SARA   RASMUSSEN,  Alaska   State   Legislature,                                                               
Anchorage,   Alaska,  sponsor   of  HB   157  stated   that  this                                                               
legislation will require certain  campaign finance activity to be                                                               
reported  earlier.  The law  currently  allows  groups to  launch                                                               
campaigns to  change major policies  or remove  elected officials                                                               
from office  without releasing  financial information  until late                                                               
in the process. HB 157  would require disclosure of contributions                                                               
and expenditures made to influence  a referendum or recall effort                                                               
to earlier in the statutory  process as well as reporting certain                                                               
campaign finance activity prior  to collection of signatures. She                                                               
said Alaskans want  an honest transparent process  and deserve to                                                               
know who  is behind  any effort to  affect the  state's political                                                               
and  economic future.  HB 157  closes  a loophole  that could  be                                                               
exploited by dark money and special interests.                                                                                  
                                                                                                                                
4:01:16 PM                                                                                                                    
CRYSTAL  KOENEMAN, Staff,  Representative Sara  Rasmussen, Alaska                                                               
State  Legislature, Anchorage,  Alaska,  presented the  sectional                                                               
analysis for HB 157.                                                                                                            
                                                                                                                                
     Section 1:  AS 15.13.010(b)   Applicability  related to                                                                  
     State   Election  Campaigns.   Adds  language   to  the                                                                  
     applicability  section that  state the  chapter applies                                                                    
     to  contributions,   expenditures,  and  communications                                                                    
     that are  made to influence the  nomination or election                                                                    
     of a  candidate. And for  the purpose of  influencing a                                                                    
     ballot  proposition or  question or  for supporting  or                                                                    
     opposing   and   initiative    proposal,   recall,   or                                                                    
     referendum.                                                                                                                
                                                                                                                                
     Section  2: AS  15.13.020(j)     Alaska Public  Offices                                                                  
     Commission. Removes the requirement  for an APOC office                                                                  
     to be located in each Senate District.                                                                                     
                                                                                                                                
     Section  3: AS  15.13.030    Duties of  the commission.                                                                  
     Removes  the  word  "ALL"  from  the  phrase  "examine,                                                                    
     investigate,  and  compare [all]  reports,  statements,                                                                    
     and actions required by this chapter."                                                                                     
                                                                                                                                
4:02:43 PM                                                                                                                    
     Sections  4-8:   AS  15.13.040(b),   15.13.072(b),  and                                                                  
     15.13.074(e).   Clarifies    that   contributions   and                                                                  
     expenditures  are in  a calendar  year instead  of left                                                                    
     open ended.                                                                                                                
                                                                                                                                
     Section  5:  AS   15.13.050(a)     Registration  before                                                                  
     expenditure.  Adds  language regarding  referendums  or                                                                  
     recalls  to  the  statute   that  requires  persons  to                                                                    
     register with APOC prior to making an expenditure.                                                                         
                                                                                                                                
     Section  6:  AS   15.13.065(c)     Contributions.  Adds                                                                  
     language related to  referendum and recall applications                                                                    
     to what is included in the definition of proposition.                                                                      
                                                                                                                                
     Section  9:  AS  15.13.110(e)      Filing  of  Reports.                                                                  
     Rewrites  the language  related to  those receiving  or                                                                    
     making expenditures  to support or  oppose referendums.                                                                    
     This language  is identical  to the  language contained                                                                    
     in  AS 15.13.040(k)  for  ballot proposition  reporting                                                                    
     requirements and AS  15.13.110(g) for ballot initiative                                                                    
     reporting requirements.                                                                                                    
                                                                                                                                
4:04:02 PM                                                                                                                    
     Section 10:  AS 15.13.110    Filing of Reports.  Adds a                                                                  
     new  subsection  (k)  for  those  receiving  or  making                                                                    
     expenditures  to  support  or  oppose  a  recall.  This                                                                    
     language is similar to Section  [9] of this bill and AS                                                                    
     15.13.040(k)    for   ballot    proposition   reporting                                                                    
     requirements and AS  15.13.110(g) for ballot initiative                                                                    
     reporting requirements.                                                                                                    
                                                                                                                                
     (This  is   the  conforming   language  to   align  the                                                                    
     recall/referendum   reporting   requirement  with   the                                                                    
     ballot  props  and initiatives.  Section  12    14  are                                                                    
     modify  definitions to  include  the  new language  for                                                                    
     recall and referendums.)                                                                                                   
                                                                                                                                
     Sections   12-14:   AS    15.13.400(4),   and   (7)                                                                      
     Definitions.     Modifies     the     definition     of                                                                  
     "contributions"  to include  groups and  referendum and                                                                    
     recall   applications,  modifies   the  definition   of                                                                    
     "expenditures"   to  include   referendum  and   recall                                                                    
     applications,  and modifies  the definition  of "group"                                                                    
     to include referendum and recall applications.                                                                             
                                                                                                                                
4:05:03 PM                                                                                                                    
     Sections  15-16: AS  24.45.091 Publication  of reports.                                                                  
     Provides  for publication  of reports  and archives  of                                                                    
     statements and  reports to be  posted on  their website                                                                    
     as  well  as  have  copies  available  at  the  central                                                                    
     office.                                                                                                                    
                                                                                                                                
     Section  17:  Repeals  AS 15.13.040(k).  Provides  that                                                                  
     recall applications  are subject to  group contribution                                                                    
     limitations whereas referendum applications are not.                                                                       
                                                                                                                                
     Section  18:  Uncodified  law.  States  that  this  Act                                                                  
     applies only  to referendums or recalls  that are filed                                                                    
     on or after the effective date of this Act.                                                                                
                                                                                                                                
     Section 19:  Provides for a  January 1,  2022 effective                                                                  
     date.                                                                                                                      
                                                                                                                                
MS. KOENEMAN  suggested the committee offer  a friendly amendment                                                               
to update the effective date to January 1, 2023.                                                                                
                                                                                                                                
4:06:20 PM                                                                                                                    
SENATOR HOLLAND asked if any group opposed the bill.                                                                            
                                                                                                                                
REPRESENTATIVE  RASMUSSEN answered  no, but  there was  debate on                                                               
the House floor about creating a  bar that is too challenging for                                                               
individual Alaskans to participate in the recall process.                                                                       
                                                                                                                                
4:07:20 PM                                                                                                                    
SENATOR KAWASAKI referenced the  [March 12, 2021] memorandum from                                                               
Legislative  Legal   Services  that   cites  the   Ninth  Circuit                                                               
discussion  of   First  Amendment  rights.  He   asked  for  more                                                               
information  about   First  Amendment  rights  related   to  fund                                                               
raising.  He noted  that the  last  sentence on  page 5  somewhat                                                               
countermands the rest of the memo.                                                                                              
                                                                                                                                
REPRESENTATIVE RASMUSSEN read the last  sentence on page 5 of the                                                               
memo.                                                                                                                           
                                                                                                                                
     Accordingly, while it  is not certain at  what point an                                                                    
     Alaska court might determine that  speech relating to a                                                                    
     recall or  referendum application,  for a  measure that                                                                    
     may   or   may   not   appear  on   the   ballot,   can                                                                    
     constitutionally  be  required  to be  disclosed,  this                                                                    
     bill's  expansion  of  disclosure requirements  in  the                                                                    
     recall  and referendum  context will  likely survive  a                                                                    
     First Amendment challenge.                                                                                                 
                                                                                                                                
She offered her takeaway HB 157 protects First Amendment rights.                                                                
                                                                                                                                
SENATOR  KAWASAKI directed  attention  to the  last paragraph  on                                                               
page 4 of the memo that  expresses uncertainty about "how a court                                                               
would evaluate  this bill's expansion of  disclosure requirements                                                               
relating to  funds made in support  or in opposition to  a recall                                                               
or  referendum application."  He highlighted  that this  language                                                               
expresses  uncertainty  and  the   next  paragraph  seems  fairly                                                               
certain. He  questioned the  reason for the  statement on  page 5                                                               
and asked if  there were other issues she could  cite that affirm                                                               
that paragraph.                                                                                                                 
                                                                                                                                
REPRESENTATIVE RASMUSSEN deferred the question to her staff.                                                                    
                                                                                                                                
4:09:57 PM                                                                                                                    
MS.  KOENEMAN said  the uncertainty  in the  final paragraph  may                                                               
reflect  the  hypotheticals  she went  through  with  legislative                                                               
counsel Alpheus  Bullard that looked  at whether anything  in the                                                               
bill  would  preclude  somebody from  moving  forward  with  this                                                               
process if they had to  disclose that financial information ahead                                                               
of  time. Nevertheless,  Mr.  Bullard  ultimately concluded  that                                                               
there should not be any First Amendment concerns.                                                                               
                                                                                                                                
CHAIR SHOWER asked Heather Hebdon if she had any comments.                                                                      
                                                                                                                                
4:11:21 PM                                                                                                                    
HEATHER  HEBDON,   Executive  Director,  Alaska   Public  Offices                                                               
Commission,  Anchorage, Alaska,  stated that  she had  no comment                                                               
about the constitutional concern.                                                                                               
                                                                                                                                
SENATOR HOLLAND  asked if Section  2 would result in  APOC office                                                               
closures.                                                                                                                       
                                                                                                                                
REPRESENTATIVE RASMUSSEN  answered that current  statute requires                                                               
an  APOC  office to  be  located  in  each Senate  district.  She                                                               
offered her understanding that the  statute has not been followed                                                               
for some time and Section 2 removes the requirement.                                                                            
                                                                                                                                
CHAIR SHOWER said the suggested  friendly amendment to change the                                                               
effective date will be offered  in the next hearing. He commented                                                               
on  the reporting  requirements and  opined that  transparency is                                                               
important in all aspects of government.  He noted that he had not                                                               
seen any  opposition to the  bill but  had seen support  where he                                                               
wouldn't expect. He expressed appreciation  for the intent of the                                                               
bill.                                                                                                                           
                                                                                                                                
4:13:30 PM                                                                                                                    
SENATOR REINBOLD commented that this  may not be the vehicle, but                                                               
she  would like  to  see more  transparency  where lobbyists  are                                                               
concerned.                                                                                                                      
                                                                                                                                
CHAIR SHOWER  suggested she work  with the sponsor. He  asked for                                                               
the reason to clarify that  contributions and expenditures are in                                                               
a calendar year.                                                                                                                
                                                                                                                                
MS. KOENEMAN  replied the statute  does not delineate  whether it                                                               
is a calendar  year or fiscal year. This makes  it clear that the                                                               
intent is to  track contributions and expenditures  in a calendar                                                               
year.                                                                                                                           
                                                                                                                                
CHAIR SHOWER asked if this  provision would create an opportunity                                                               
to delay reporting  when there's an election in  November and the                                                               
calendar year doesn't end until December 31.                                                                                    
                                                                                                                                
MS. KOENEMAN deferred the question to Ms. Hebdon.                                                                               
                                                                                                                                
4:16:26 PM                                                                                                                    
CHAIR SHOWER restated the question.                                                                                             
                                                                                                                                
4:17:02 PM                                                                                                                    
MS. HEBDON  said she  didn't see that  this would  change current                                                               
practice. APOC's current guidance is  that the reportable date is                                                               
when the contribution was received.                                                                                             
                                                                                                                                
CHAIR SHOWER  said he wanted it  a matter of record  that this is                                                               
how it works now and the bill doesn't change that.                                                                              
                                                                                                                                
4:17:43 PM                                                                                                                    
SENATOR KAWASAKI asked for confirmation  that Section 2 would not                                                               
prevent  APOC  from  establishing  offices  outside  the  central                                                               
office.                                                                                                                         
                                                                                                                                
MS. HEBDON  replied that  was her reading;  it does  not preclude                                                               
APOC from opening  additional offices or require it  to close any                                                               
offices. It simply establishes a central office.                                                                                
                                                                                                                                
SENATOR KAWASAKI recalled a discussion  several decades ago about                                                               
closing  APOC entirely.  He  asked how  the  current APOC  budget                                                               
compares to what it was 20 years ago.                                                                                           
                                                                                                                                
MS. HEBDON said  she didn't have the numbers in  front of her but                                                               
she believes  that the  budget grew  substantially over  about 20                                                               
years and has declined dramatically over the past six years.                                                                    
                                                                                                                                
MS. KOENEMAN  added that a  10-year-lookback at personnel  in the                                                               
APOC office shows  there were 13 PCNs  [position control numbers]                                                               
in 2015,  4 of which  were dedicated  to campaign finance,  and 8                                                               
PCNs in 2021, 2 of which are dedicated to campaign finance.                                                                     
                                                                                                                                
CHAIR SHOWER asked her to review the fiscal note.                                                                               
                                                                                                                                
4:20:47 PM                                                                                                                    
MS.  KOENEMAN stated  that APOC's  fiscal note  requests $111,700                                                               
for one PCN full-time employee,  range 14-16 flex for a paralegal                                                               
I/II  and  associated costs.  She  said  she believes  the  added                                                               
personnel would  likely benefit the  commission given  the change                                                               
in reporting and increased the workload on APOC staff.                                                                          
                                                                                                                                
CHAIR SHOWER opined that $111,000  is a bargain given that people                                                               
want to know where the money  that flows into the state is coming                                                               
from and how it's spent.                                                                                                        
                                                                                                                                
4:22:07 PM                                                                                                                    
CHAIR SHOWER opened public testimony  on HB 157; finding none, he                                                               
closed public testimony.                                                                                                        
                                                                                                                                
CHAIR SHOWER held HB 157 in committee.                                                                                          

Document Name Date/Time Subjects
support 6 letters.pdf SSTA 3/3/2022 3:30:00 PM
SB 156
SB 167opposition letter.pdf SSTA 3/3/2022 3:30:00 PM
SB 167