Legislature(2019 - 2020)SENATE FINANCE 532

03/10/2020 09:00 AM House LEGISLATIVE COUNCIL

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Audio Topic
09:01:01 AM Start
10:50:49 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Teleconference <Listen Only> --
+ Ranked-Choice Voting Initiative Hearing per TELECONFERENCED
AS 24.05.186 by
- Cori Mills, Dept. of Law
- Megan Wallace & Noah Klein, Legislative Legal
- Gail Fenumiai, Div. of Elections
**Streamed live on AKL.tv**
                      ALASKA STATE LEGISLATURE                                                                                
                        LEGISLATIVE COUNCIL                                                                                   
                           March 10, 2020                                                                                     
                              9:00 AM                                                                                         
                                                                                                                              
                                                                                                                              
   MEMBERS PRESENT                                                                                                            
   Senator Gary Stevens, Chair                                                                                                
   Representative Louise Stutes, Vice Chair                                                                                   
   Senator Tom Begich                                                                                                         
   Senator John Coghill                                                                                                       
   Senator Cathy Giessel                                                                                                      
   Senator Lyman Hoffman                                                                                                      
   Senator Bert Stedman                                                                                                       
   Senator Natasha von Imhof                                                                                                  
   Representative Bryce Edgmon                                                                                                
   Representative Neal Foster                                                                                                 
   Representative DeLena Johnson                                                                                              
   Representative Jennifer Johnston                                                                                           
   Representative Chuck Kopp                                                                                                  
   Representative Steve Thompson                                                                                              
                                                                                                                              
                                                                                                                              
   MEMBERS ABSENT                                                                                                             
                                                                                                                              
                                                                                                                              
   OTHER MEMBERS PRESENT                                                                                                      
   Representative Drummond                                                                                                    
                                                                                                                              
                                                                                                                              
   AGENDA                                                                                                                     
   Call to Order                                                                                                              
   Ranked-Choice Voting Initiative Hearing per AS 24.05.186                                                                   
   Adjourn                                                                                                                    
                                                                                                                              
                                                                                                                              
   SPEAKER REGISTER                                                                                                           
   Cori Mills, Attorney, Department of Law                                                                                    
   Megan Wallace, Director, Legal Services, Legislative Affairs Agency                                                        
   Noah Klein, Counsel, Legal Services, Legislative Affairs Agency                                                            
   Gail Fenumiai, Director, Division of Elections                                                                             
                                                                                                                              
9:01:01 AM                                                                                                                  
                                                                                                                              
I.   CALL TO ORDER                                                                                                          
                                                                                                                              
           CHAIR STEVENS:  called the Legislative Council meeting                                                             
     to  order at  9:01am in  the State  Capitol's Senate  Finance                                                            
     Committee  Room and requested  a roll  call vote. Present  at                                                            
     the  call were: Senators  Begich, Coghill, Giessel,  Hoffman,                                                            
     Stedman,   Stevens,   von  Imhof;   Representatives   Edgmon,                                                            
     Foster,  Johnson, Johnston, Thompson, Stutes. Representative                                                             
     Kopp joined the meeting at 9:24am. 13 members present.                                                                   
                                                                                                                              
                                                                                                                              
   II. Ranked-Choice Voting Initiative Hearing                                                                              
                                                                                                                              
           CHAIR STEVENS:  Today we're going to comply with                                                                   
     Statute  24.05.186 in the course  of the Legislature to  hold                                                            
     a hearing  on any proposal, any initiative proposed,  and the                                                            
     purpose  of  this  meeting  is to  comply  and  satisfy  that                                                            
     requirement.                                                                                                             
           Several individuals have been called to testify to us,                                                             
     to  speak to us, present at  the meeting from the  Department                                                            
     of Law,  Division of Elections, and Legislative Legal.   Cori                                                            
     Mills  from the Department of Law  is here with us.  We  also                                                            
     have  Megan Wallace, Noah Klein  from the Legislative  Legal,                                                            
     and then Gail Fenumiai.                                                                                                  
           Just before we begin, if you'd look at your packet, on                                                             
     the  fourth page  from the end  there's this  chart from  the                                                            
     very end,  and it's to show the cost of this issue, but  this                                                            
     is  the wrong chart.   So ignore that  one, and Ms.  Fenumiai                                                            
     and  I will give us  the right figure.   So let's begin  with                                                            
     the  Department  of  Law.   Cori  Mills, if  you  would  come                                                            
     forward.   Thank you for being with us.  State your name  for                                                            
     the record, please.                                                                                                      
           MS. MILLS:  Good morning.  Cori Mills, Assistant                                                                   
     Attorney  General, Department of  Law.  Glad  to be with  you                                                            
     again  this  morning.   So  I was  going  to start  by  just,                                                            
     again, going briefly over the process.                                                                                   
           I know we covered it last time, but for anyone that's                                                              
     listening  that  may have  not heard  last  time and  how  it                                                            
     applies  to this initiative,  otherwise known  as the  Better                                                            
     Elections  Initiative  or  identified   by  the  Division  of                                                            
     Elections  as  19AKBE,  so,  again,  talking  about  petition                                                            
     certification,  the lieutenant  governor,  with the  Division                                                            
     of Elections, has 60 days to review signatures.                                                                          
           In this case, the signatures I believe were put in on                                                              
     January 9th.     Yesterday  the   lieutenant  governor   sent                                                            
     notification  that  the signatures  were properly  filed,  so                                                            
     they  did meet  the 10 percent  requirement, as  well as  the                                                            
     7 percent among three-quarters of the districts.                                                                         
           So at this point, the Division of Elections has been                                                               
     directed  to put this on the,  most likely, general  election                                                            
     ballot,  but it's  whatever  election --  statewide  election                                                            
     occurs  120 days after  adjournment of  the Legislature.   So                                                            
     it  doesn't  have  to  do  with  when  certification  of  the                                                            
     petition  happened or when  it was filed,  it has  everything                                                            
     to  do  with  when  the  Legislature  adjourns  this  current                                                            
     session.   And if you adjourn  by April 19th, it would be  on                                                            
     the  primary.  Anything  after that would  be on the  general                                                            
     unless  there is  an intervening  statewide election  between                                                            
     the  primary and  the general.   So  that's kind  of how  the                                                            
     process goes.                                                                                                            
           The only other piece that I covered last time that                                                                 
     I'll  mention is  if the  Legislature and  then the  governor                                                            
     signs or  lets it become law without signature, enacts  a law                                                            
     that  is substantially the same  as the initiative, then  the                                                            
     initiative  is considered void,  and it would  not go on  the                                                            
     ballot.                                                                                                                  
           And just briefly, again, that test is really a scope,                                                              
     purpose,  means  test  that  the  Alaska  Supreme  Court  has                                                            
     applied  to  determine  whether  something  is substantially                                                             
     similar.    And that  means  you look  at  the scope  of  the                                                            
     subject  matter,  and  the Legislature  is  afforded  greater                                                            
     authority  or  lesser  latitude,  depending  on  whether  the                                                            
     subject matter is broad or narrow.                                                                                       
           And then you look at the purpose.  The court must                                                                  
     consider  whether the general purpose  of the legislation  is                                                            
     the same as the general purpose of the initiative.                                                                       
           And then the means, whether the means by which that                                                                
     purpose is  effectuated are the same in both the  legislation                                                            
     and  initiative,  but  the  means  only  need  to  be  fairly                                                            
     comparable.  Again, they don't have to be exact.                                                                         
           And so then if the measure goes on the primary or the                                                              
     general election  ballot and if a majority of the voters  say                                                            
     they  want   this  initiative  enacted,  then  it  would   be                                                            
     effective.    The  effective  date would  be  90  days  after                                                            
     enactment,  and enactment  for a ballot  measure occurs  upon                                                            
     certification of the election results.                                                                                   
           So you're looking -- just for an example -- and I gave                                                             
     this  last time -- the marijuana  initiative in 2014 went  on                                                            
     the  general election  ballot.  Results  were certified  near                                                            
     the  end of November,  and it was effective  near the end  of                                                            
     February 2015.   So that's  kind of the  time frame you'd  be                                                            
     looking  at.    So  unless  there  are  other   questions  on                                                            
     process, I will move on to the sectional.                                                                                
           CHAIR STEVENS:  Well, before you do that, I think what                                                             
     most  folks have spoken to me  about their concerns about  is                                                            
     the  ranked-choice  issue.   And  if  we're  considering  the                                                            
     "substantially  the  same,"  to be  substantially  the  same,                                                            
     would it have to include a ranked-choice?                                                                                
           MS. MILLS:  So, Chair Stevens, I can't predetermine                                                                
     what a result would be in terms --                                                                                       
           CHAIR STEVENS:  Oh, sure you can.  Go ahead.                                                                       
           MS. MILLS:  -- of what the Department of Law would                                                                 
     look  at, because  we would be  very much  involved in  that.                                                            
     The attorney  general actually has to concur in the  decision                                                            
     that  it's substantially similar.   But I would say that  you                                                            
     need  to look  at the  major elements  of the  policy  that's                                                            
     encompassed within the initiative.                                                                                       
           In this initiative there are really three major                                                                    
     policies.    And  the  first is  an  open  primary,  an  open                                                            
     nonpartisan  primary; the second  is ranked-choice voting  in                                                            
     the   general   election;  and   the  third   is  additional                                                             
     disclosure  and  disclaimer  requirements   in  our  campaign                                                            
     finance laws.                                                                                                            
           And so you would need to look at does whatever, you                                                                
     know, we're  looking to pass, as a Legislature, adhere  to or                                                            
     encompass  those  major  policy  goals  in  at  least  fairly                                                            
     comparable means to what is occurring in the initiative?                                                                 
           Now, the example we have on substantially similar, we                                                              
     have  two examples:  One where  the court upheld it and  said                                                            
     it  was substantially similar  and the  other where they  did                                                            
     not.   And in  Warren vs.  Boucher, it was  actually kind  of                                                            
     the  initial passage  or enactment  of our  campaign  finance                                                            
     laws  as a  state, and  there was  an initiative,  and  there                                                            
     were quite a few differences.                                                                                            
           There were differences in the numbers, the amount that                                                             
     could  be donated,  contributed  to a candidate,  there  were                                                            
     differences  in how  media was  addressed  and whether  media                                                            
     certain disclosures  were necessary, and yet the court  still                                                            
     found that  the scope was broad, so the Legislature had  more                                                            
     latitude,  that  the  general purpose  was  to  create  these                                                            
     limits on  campaign finance and have disclosures so that  the                                                            
     public  knew  who was  contributing  to campaigns,  and  then                                                            
     that  the  means were  fairly comparable.    So you  have  an                                                            
     example of a broader law.                                                                                                
           Whereas in the case of -- I think it's State vs. Trust                                                             
     the  People, you had an initiative  that was very narrow  and                                                            
     dealt  with just the subject  basically wanting to  eliminate                                                            
     the  governor's  power to  appoint a  Senate vacancy  at  the                                                            
     congressional level.                                                                                                     
           And the Legislature passed a bill that still allowed a                                                             
     temporary  appointment  in between  a special  election,  and                                                            
     the court  found that that went too far, that the means  were                                                            
     not   comparable,   that   this   was   narrow  legislation,                                                             
     therefore,  the Legislature had lesser  latitude.  So I  just                                                            
     give  that as all  of the considerations  that would need  to                                                            
     be   taken  into  account  if   you're  looking  at   passing                                                            
     something substantially similar.                                                                                         
           The only other note I do want to make, and I think you                                                             
     may  all be  aware of  this, but  we are  in litigation  over                                                            
     19AKBE.   So when I  say it's going to  go on the ballot,  it                                                            
     will go  on the ballot unless the Alaska Supreme Court  tells                                                            
     us  it's not  supposed  to go  on the  ballot.   We're  still                                                            
     waiting  for  that decision.    It was  argued February  19th                                                            
     before the Alaska Supreme Court.                                                                                         
           The issue was the attorney general recommended that                                                                
     the   lieutenant   governor  not   certify   the  initiative                                                             
     application  because  it violated  the single  subject  rule.                                                            
     The attorney  general, you'll see in our opinion, determined                                                             
     that there  were really three subjects involved in the  bill:                                                            
     again,  open  primary,  ranked-choice  voting,  and  campaign                                                            
     finance  disclosures  and that,  therefore, under  the  Croft                                                            
     vs.  Parnell  case --  that  was  decided  I  think  back  in                                                            
     2014 --  that this  should not  be certified.   The  superior                                                            
     court  disagreed.  That's why  the signatures were  gathered.                                                            
     That's --  then  the state  appealed.    That appeal  is  now                                                            
     pending.                                                                                                                 
           We have told the Supreme Court that if this were to go                                                             
     on the  primary ballot, we would  need a decision I think  by                                                            
     June  in order  to make sure  the Division  of Elections  had                                                            
     enough  time to prepare  the ballot and  not waste  resources                                                            
     putting  something on  the ballot that  the court determines                                                             
     should not go on the ballot.                                                                                             
           So we expect the court to rule within that time frame                                                              
     to  make sure that the Division  of Elections can adequately                                                             
     do  their job.   But I did  just want to  put that out  there                                                            
     that  that is still a  pending issue.   Aside from what  I've                                                            
     told you,  I'm not going to talk a whole lot about it.   It's                                                            
     before the Supreme  Court, and we'll find out what they say.                                                             
           CHAIR STEVENS:  Thank you, Ms. Mills.  Senator Begich.                                                             
           SENATOR BEGICH:  Thank you, Mr. Chairman.  Cori, you                                                               
     mentioned  three issues  here as  the three  major  policies:                                                            
     nonpartisan  primary,  ranked-choice,  and  campaign  finance                                                            
     law.     But  isn't  there  a  fourth  relating  to   federal                                                            
     elections   in  here,  a  substantial  fourth  that   changes                                                            
     existing law, and could you comment on that?                                                                             
           MS. MILLS:  So through the Chair, Senator Begich, we                                                               
     have  viewed that as part of  the changes to an open  primary                                                            
     and  part of  the changes  to ranked-choice  voting,  because                                                            
     basically  what  it's doing  is  applying the  open  primary,                                                            
     both  a special open  primary to fill a  vacancy, as well  as                                                            
     just  the normal  open primary  to all  federal offices  that                                                            
     the  state, the Senate, and  Representatives, as well as  the                                                            
     ranked-choice   voting  to  the  general  election  for   the                                                            
     presidential election.   So those are the ones I'm aware of.                                                             
           CHAIR STEVENS:  Senator Begich.                                                                                    
           SENATOR BEGICH:  Just to follow up, doesn't it also                                                                
     address  the  issue  of  special  elections  in  terms  of  a                                                            
     vacancy?   And what --  for the rest of  the members to  know                                                            
     exactly what it says, would you mind talking about that?                                                                 
           MS. MILLS:  Oh, yes, through the Chair, Senator                                                                    
     Begich.   So, and I'll  go through this  in the sectional  as                                                            
     well.   But effectively  right now  in certain circumstances                                                             
     we  have  what's  called  a  special  runoff   election,  but                                                            
     parties  are  able  to  petition and  put  forward  names  of                                                            
     their --   the  candidate  that  they  would  like  in   that                                                            
     election.                                                                                                                
           And now what it's doing is basically making all                                                                    
     elections  the  same so  that you'd  have a  special  primary                                                            
     election,  where, just  like the open  primary, anyone  could                                                            
     get  in.  The party  petition process  would be repealed  and                                                            
     anyone could  get in on a special primary to fill a  vacancy.                                                            
     And then you'd have a special election after that.                                                                       
           SENATOR BEGICH:  If I may interrupt, just fill a                                                                   
     vacancy for  a United States Senate seat?  I just want  to be                                                            
     clear  about that for  the folks to know  that that's a  very                                                            
     specific thing that this does.                                                                                           
           MS. MILLS:  Yes, Senator Begich.  So basically it's                                                                
     for  any vacancy that  would have otherwise  had any sort  of                                                            
     special election.   It reverts to this process.  So it's  the                                                            
     federal Senate  seat, it's the governor.  If for some  reason                                                            
     the  lieutenant  governor that  succeeds  is then  no  longer                                                            
     able  to  hold office  and  you  have the  successor  to  the                                                            
     lieutenant  governor, it's that  circumstance, and then  it's                                                            
     a  special election  for a state  Senate seat  as well  under                                                            
     the  specific parameters  where you have  a special  election                                                            
     for a state Senate seat.                                                                                                 
           CHAIR STEVENS:  Thank you.  Representative Drummond is                                                             
     in  the audience with  us.  Thank  you for  being here.   Any                                                            
     further  questions?  If  not, would you please  go on to  the                                                            
     sectional, Ms. Mills?                                                                                                    
           MS. MILLS:  Yes.  And for the sectional, we actually                                                               
     did  one in our  attorney general opinion.   You should  find                                                            
     that  in your packet.   I believe  it's after the initiative                                                             
     bill, and  then you have one other document, and then  you'll                                                            
     have a letter dated August 29th.                                                                                         
           Starting on page 2 is our general overview summary,                                                                
     and  then I think around  page 3 or the  bottom of page 2  it                                                            
     starts on the sectional, if you want to follow along.                                                                    
           So as I said, there's three major changes here.  And                                                               
     so  you'll find that pretty much  every section of this  bill                                                            
     relates  to one of  those three changes  or a combination  of                                                            
     two  of   those  changes.    So  open  nonpartisan   primary,                                                            
     ranked-choice  voting  in  the general,  and  disclaimer  and                                                            
     disclosure requirements.                                                                                                 
           So starting with section -- so Sections 1 through 3                                                                
     really have  to do with the open primary -- I mean,  Sections                                                            
     2  and  3.    Section  1  is  just  a  findings  and  intent,                                                            
     basically  repeats what the  major policies  are, as well  as                                                            
     includes  a statement that  Alaska supports a constitutional                                                             
     amendment  allowing  citizens  to regulate  the  raising  and                                                            
     spending  of money in elections,  basically a statement  that                                                            
     we would  like to see Citizens United overturned.  That's  in                                                            
     the intent and findings section.                                                                                         
           Then you go to Sections 2 and 3, which, again, mostly                                                              
     have  to do with  the open primary.   Section  2, you end  up                                                            
     having  election boards.   And right now you  base it on  the                                                            
     political  party that receives the most votes or the  largest                                                            
     number  of registered  voters at  the time  of the  preceding                                                            
     gubernatorial   election,  and  now  it's  adding   political                                                            
     groups.                                                                                                                  
           So basically it's saying maybe we'll have more                                                                     
     political groups  in the scheme of things, and so we  want to                                                            
     allow, whether  it's a political party or a political  group,                                                            
     whoever  has the  most number  of registered  voters,  that's                                                            
     who's  going to be able to get  a seat.  And then the  second                                                            
     largest  number  of  registered voters'  political  party  or                                                            
     political  group,  they also  get  to be  appointed  to  this                                                            
     election  board.  And  there's a few  other spots where  they                                                            
     do  that.   They basically  add in  political  groups on  the                                                            
     same  level as political  party.  You'll find  that in a  few                                                            
     places.                                                                                                                  
           Section 3, again, you can appoint one or more poll                                                                 
     watchers   regardless   of   party   affiliation   or   party                                                            
     nomination.   So  right  now the  political parties  have  an                                                            
     ability to  have a poll watcher.  This would allow  basically                                                            
     any candidate to appoint one or more poll watchers.                                                                      
           Then we move on to the changes to the campaign finance                                                             
     laws,  but I do want to note  that some of these changes  are                                                            
     actually  because of the change  to the open primary and  not                                                            
     the  disclosure and  disclaimer requirements,  and I'll  note                                                            
     those as I go along.                                                                                                     
           So Section 4, for example, is another one that                                                                     
     changes --  is a change  because of the  open primary.   And,                                                            
     again,  it's allowing on  APOC, as you may  know.  Right  now                                                            
     you --  the governor's appointments  partly ensue because  of                                                            
     the  political  party and  who retained  the most  number  of                                                            
     votes,  who won  the gubernatorial  election.   And then  the                                                            
     second largest  number -- well, again, it's adding political                                                             
     groups  now,  not  just political  parties.    And political                                                             
     parties  have kind of  a higher threshold  to reach, and  now                                                            
     it's  kind of  putting them on  the same  plane as  political                                                            
     groups.                                                                                                                  
           Section 5 is a conforming change.  Section 6 would add                                                             
     disclosure  requirements relating to --  and I quote  this --                                                            
     the true  source of contributions.  There's a definition  for                                                            
     what  a  "true  source"  is.   You  know,  and  if  this  was                                                            
     enacted,  then the  Alaska Public  Office's Commission  would                                                            
     use that definition and determine what that is.                                                                          
           SENATOR COGHILL:  Mr. Chairman.                                                                                    
           CHAIR STEVENS:  Please, Senator Coghill.                                                                           
           SENATOR COGHILL:   That's a  new concept in  law, if  I                                                            
     understand correctly?                                                                                                    
           MS. MILLS:  Through the Chair, correct.                                                                            
           SENATOR COGHILL:  All right.  Thank you, Mr. Chairman.                                                             
           CHAIR STEVENS:  Yes.  Senator von Imhof.                                                                           
           SENATOR VON  IMHOF:   When you  say "new  concept,"  is                                                            
     that defined  statewide, or is that defined nationally,  true                                                            
     source?  What is true -- where is true source defined?                                                                   
           MS. MILLS:    Through  the Chair,  Senator  von  Imhof,                                                            
     there's  a definitions -- a new  definition section put  into                                                            
     this  bill.  So it  would be in state  law, true source  dark                                                            
     money,  and  I  think  it's  like  out-of-state   or  outside                                                            
     groups, something  like that.  Those are the three new  terms                                                            
     that would added to the law and defined in this bill.                                                                    
           CHAIR STEVENS:  Senator von Imhof.                                                                                 
           SENATOR VON IMHOF:   In your research,  do you know  of                                                            
     any  other  state that  has  recently defined  "true  source,                                                            
     dark money," et cetera?                                                                                                  
           MS. MILLS:  Through the  Chair, Senator von Imhof,  I'm                                                            
     not  aware of any.   I do have  to say I did  not do a  whole                                                            
     lot  of  looking  at  other  states.     I  was  really  just                                                            
     concerned with this initiative bill and what it's got.                                                                   
           CHAIR STEVENS:   And maybe definition  of "dark  money"                                                            
     would be helpful for the public.                                                                                         
           MS. MILLS:  Yeah.   So it's Section  17 through 19  are                                                            
     those  definitions.   And  I'll go  over those  really  quick                                                            
     because I think it will help as I go through.                                                                            
           So Section  17, it  would amend  AS 15.13.400.   That's                                                            
     where  the general definitions in  the campaign finance  laws                                                            
     are  located.  Dark money means  a contribution whose  source                                                            
     or   sources,   whether  from   wages,   investment   income,                                                            
     inheritance,  or  revenue  generated from  selling  goods  or                                                            
     services,  is not  disclosed to  the public, notwithstanding                                                             
     the  foregoing  to  the  extent  a membership,  organization                                                             
     receives  dues  or  contributions  of less  than  $2,000  per                                                            
     person   per  year,   the   organization  itself   shall   be                                                            
     considered  the true  source.   So, then,  again, dark  money                                                            
     refers to true source.                                                                                                   
           So true source, which is Section 18, means the person                                                              
     or  legal entity  whose contribution  is  funded from  wages,                                                            
     investment  income, inheritance,  or revenue  generated  from                                                            
     selling  goods or  services.  A  person or  legal entity  who                                                            
     derived  funds via contributions,  donations, dues, or  gifts                                                            
     is  not the true  source but rather  an intermediary for  the                                                            
     true  source.   And,  again,  there's a  notwithstanding  the                                                            
     foregoing membership organization kind of exception.                                                                     
           CHAIR STEVENS:  Senator von Imhof has a question.                                                                  
           SENATOR VON IMHOF:  Thank you.  So this means that                                                                 
     anybody  who's  donated more  than  2,000 annually  would  be                                                            
     listed on  the APOC, Alaska Public Office Commission  report,                                                            
     but  we still have the top  three donors on any advertising.                                                             
     Does  this bill affect those --  the top three donors  listed                                                            
     on any advertising materials?                                                                                            
           MS. MILLS:  Senator von Imhof, through the Chair, that                                                             
     law is not impacted by this initiative bill.                                                                             
           CHAIR STEVENS:  Thank you.  Please, continue,                                                                      
     Ms. Mills.                                                                                                               
           MS. MILLS:  So I'll just go over Section 19, because                                                               
     that's  the other  new term,  "outside funded  entity."   And                                                            
     that  means an  entity  that makes  one or  more independent                                                             
     expenditures.    So  you're only  talking  about  independent                                                            
     expenditure  groups in  one or more  candidate elections  and                                                            
     that during  the previous 12-month period received more  than                                                            
     50 percent   of  its   aggregate  contributions   from   true                                                            
     sources --  again, using  that term --  who, at  the time  of                                                            
     contribution,  resided   or had  their   principal  place  of                                                            
     business   outside  of   Alaska.    So   you're  looking   at                                                            
     50 percent   or   more   of  the   contributors --   of   the                                                            
     contributions  resided   or had  their   principal  place  of                                                            
     business outside of Alaska.                                                                                              
           CHAIR STEVENS:  Senator Coghill.                                                                                   
           SENATOR COGHILL:  Since you looked at this, do you                                                                 
     think --  is it clear  to you  that the people  who put  this                                                            
     initiative out complied with those definitions?                                                                          
           CHAIR STEVENS:  I'm sorry.  I could not hear your                                                                  
     question.  Could you try it again, Senator Coghill?                                                                      
           SENATOR COGHILL:  My question is, do the people who                                                                
     put  this   initiative  forward  comply  with  the   spending                                                            
     reporting  requirements that  they're putting  in here,  just                                                            
     as a point?                                                                                                              
           CHAIR STEVENS:  Thank you.                                                                                         
           MS. MILLS:  So through the Chair, Senator Coghill, I                                                               
     have  to say I  didn't look  at any of  their advertising  or                                                            
     where  their sources came  from.  You know,  that would be  a                                                            
     question for the Alaska Public Offices Commission.                                                                       
           CHAIR STEVENS:  Thank you.  Representative Kopp, thank                                                             
     you for being here.  Please continue, Ms. Mills.                                                                         
           MS. MILLS:  Yeah.  So I think then I will go back to                                                               
     Section 7.   So Section 6, again, was adding the true  source                                                            
     in excess  of 2,000, and that's the theme you will see,  that                                                            
     it's  an excess  of  2,000 is  really where  a lot  of  these                                                            
     disclosure  and  disclaimer requirements  start  kicking  in.                                                            
     And  so if -- you  know, it requires  disclosures from  every                                                            
     individual   person,   non-group   entity,  or   group   that                                                            
     contributes  more  than  $2,000 annually  to  an independent                                                             
     expenditure group.                                                                                                       
           And then Section 8 goes back to really a change                                                                    
     because  of the  open primary.   So  under  the open  primary                                                            
     system,  you would  actually have a  governor and lieutenant                                                             
     governor  run jointly  from the very  beginning, because  the                                                            
     primary  would be  more about  narrowing down  the field  for                                                            
     the general, not about political party nominations.                                                                      
           And so it would change the joint campaign limit to                                                                 
     $1,000  for governor  and lieutenant  governor.   Instead  of                                                            
     each  of  them having  their own  campaigns,  it would  be  a                                                            
     joint  campaign,  and they  doubled  the limit  basically  to                                                            
     account for that.  So that's more an open primary change.                                                                
           And then we go to Section 9, and you're back to kind                                                               
     of  the new disclosure requirements.   And this is about  the                                                            
     dark  money and  basically that  the disclosure requirements                                                             
     for contributions,  again, to independent expenditure  groups                                                            
     may  not  annually total  2,000  or more  of the  dark  money                                                            
     where the true source isn't identified.                                                                                  
           CHAIR STEVENS:  Senator von Imhof.                                                                                 
           SENATOR VON IMHOF:  Just going back to Section 8, I                                                                
     just  find it interesting that trying  to be more of an  open                                                            
     primary,  yet it seems  kind of  counterintuitive that  prior                                                            
     to  the primary,  that a  ticket would  be  combined, that  a                                                            
     lieutenant  governor and governor would be combined,  forcing                                                            
     this  pairing for voters versus  one -- each election on  its                                                            
     own.   How is that giving voters  more choices?  How is  that                                                            
     giving  voters   more  flexibility  when  you're  forcing   a                                                            
     pairing?  Just curious.                                                                                                  
           MS. MILLS:  Through the Chair, Senator von Imhof, I                                                                
     don't  have  any  comment  on  the  policy,  but,  you  know,                                                            
     that's --  in  order to  encompass  the open  primary  system                                                            
     with  a lieutenant  governor and  governor  pair, that's  how                                                            
     the sponsors chose to put it together.                                                                                   
           CHAIR STEVENS:  Thank you.  Further comments?  Please                                                              
     continue, Ms. Mills.                                                                                                     
           MS. MILLS:  Okay.  And then Section 10 is just                                                                     
     conforming changes.                                                                                                      
           Section 11, this would require that certain existing                                                               
     disclaimers   on  paid  political  advertisements  be   shown                                                            
     throughout  the  entirety   of the  communication   if  in  a                                                            
     broadcast  cable,  satellite,   Internet,  or  other  digital                                                            
     format.    So  it's  taking  existing  disclaimers  but  just                                                            
     requiring that they're there for a longer duration.                                                                      
           Section 12, additional disclaimer on political                                                                     
     advertisements  funded  by the  outside  entities.   So  that                                                            
     goes back  to that definition.   So this only has to do  with                                                            
     independent      expenditure     groups     that      receive                                                            
     contributions  --   more    than    50 percent    of    their                                                            
     contributions  from  these outside-funded  entities,  and  it                                                            
     would   require  an   additional  disclaimer   on  any   paid                                                            
     political advertisements.                                                                                                
           So Section 13, again, conforming changes.                                                                          
           Section 14, this is, again, the $2,000.  So disclosure                                                             
     by   individual    contributors   whose   contributions    to                                                            
     independent  expenditure groups exceed  $2,000 annually.   So                                                            
     you're  basically covering  the gamut on  everyone who  gives                                                            
     over  $2,000 annually  to an independent  expenditure  group,                                                            
     or an  independent expenditure group that receives more  than                                                            
     $2,000   from  an  individual   contributor  would  have   to                                                            
     disclose that.                                                                                                           
           Section 15 would create new fines for failure to                                                                   
     disclose  certain  contributions to  independent expenditure                                                             
     groups  as required by Section 7  and Section 9.  And  those,                                                            
     again, are  the dark money and the -- just the contributions                                                             
     of  more than $2,000 annually  to an independent expenditure                                                             
     group.                                                                                                                   
           Section 16, conforming changes.                                                                                    
           And then we already went  through 17 through 19,  which                                                            
     defines  those new  terms.  So  those would  all be  statutes                                                            
     added to --                                                                                                              
           CHAIR STEVENS:  One moment, please.  Senator von  Imhof                                                            
     has a question.                                                                                                          
           SENATOR VON IMHOF:  I  just think -- as you go  through                                                            
     17 and  19, just to reiterate what Senator Coghill stated,  I                                                            
     think   it  is  very  important   that  are  the  initiative                                                             
     supporters   themselves  following  the  true  source,   dark                                                            
     money,  outside-funded  entity over-reporting  at  this  time                                                            
     leading  by example?   That I think  that this committee,  as                                                            
     we  move forward on this, should  absolutely check with  APOC                                                            
     on a regular  basis and make sure that this dark money,  true                                                            
     source,  et  cetera,  et cetera  is  properly  being  vetted,                                                            
     because  if the  initiative supporters  themselves are  being                                                            
     cagey, well, isn't that interesting?                                                                                     
           CHAIR STEVENS:  Thank  you, Senator von Imhof.  Senator                                                            
     Coghill.                                                                                                                 
           SENATOR COGHILL:  Probably  the question at this  point                                                            
     would  be,  candidates will  be  subject  to this,  but  will                                                            
     initiatives be subject to this?                                                                                          
           MS. MILLS:   Through  the Chair,  Senator Coghill,  I'd                                                            
     have  to go back and  look at exactly  how it's worded.   The                                                            
     main  thrust is  that  it's independent  expenditure  groups,                                                            
     but  I'd have to go  back and see  exactly what that  applies                                                            
     to.                                                                                                                      
           SENATOR  COGHILL:     Mr. Chairman,   I  think   that's                                                            
     something we need to consider as we move forward.                                                                        
           CHAIR STEVENS:  A very important question.  And  you'll                                                            
     research that and get back to us?                                                                                        
           MS. MILLS:  I'm happy to do that, yeah.                                                                            
           CHAIR STEVENS:  Thank you.                                                                                         
           MS. MILLS:  So now we're going to move back into kind                                                              
     of  the  regular  how  elections  are  run   instead  of  the                                                            
     campaign  finance  with Section  20.   And Section  20  is --                                                            
     basically would establish the open primary system.                                                                       
           And then Section 21 would allow each candidate to have                                                             
     his   or  her   party   affiliation  designated   after   the                                                            
     candidate's  name on the ballot or choose the designation  of                                                            
     nonpartisan  or undeclared.  So, again, you're talking  about                                                            
     an open  nonpartisan primary.  Anybody  gets to be a part  of                                                            
     it.  There's  one primary ballot, and each candidate  gets to                                                            
     choose what designation they have after their name.                                                                      
           Sections 22 through 23 would then require additional                                                               
     notices  on the  ballot and  at each  polling place,  letting                                                            
     voters know  that a candidate's designated party affiliation                                                             
     on  the  ballot  does  not signify  the  political  party  or                                                            
     political   group's   approval   or   endorsement   of   that                                                            
     candidate.   And you'll see later that it's also required  in                                                            
     the election pamphlet itself.                                                                                            
           Section 24, this is really the crux of your                                                                        
     ranked-choice  voting.   This  is  where  it's laid  out  and                                                            
     required.    So  it  would  establish  ranked-choice  voting,                                                            
     again,  only for  the general  election,  whereby each  voter                                                            
     may rank  all of the candidates.  You don't have to, but  you                                                            
     could rank all of the candidates.                                                                                        
           This section would provide how the ranked-choice votes                                                             
     should  be  counted.    So  you  start  with  the  number-one                                                            
     ranking  on  all  ballots.    If  there  are  more  than  two                                                            
     candidates  and none  of the  candidates gets  a majority  of                                                            
     the  total  votes  after  a  first  round  of  counting,  the                                                            
     candidate  with the least  amount of votes  would be  removed                                                            
     from the count.  Okay?                                                                                                   
           And ballots that ranked that candidate as one on their                                                             
     ballot   would  then   be  counted   for  the  second-ranked                                                             
     candidate  on those  ballots.   So you'd move  to number  two                                                            
     for  those  where  their first  candidate  got  removed  from                                                            
     counting.                                                                                                                
           This would continue until a candidate obtains a                                                                    
     majority  or  there are  only  two candidates  remaining,  at                                                            
     which  point the candidate with  the highest number of  votes                                                            
     wins.    So  you're  either  looking   for  a  majority  over                                                            
     50 percent,  or you're  down to  two candidates  and  whoever                                                            
     gets the most votes.  So that's ranked-choice voting.                                                                    
           SENATOR COGHILL:  Mr. Chairman.                                                                                    
           CHAIR STEVENS:  Yes, Senator Coghill.                                                                              
           SENATOR COGHILL:  So if there is a clear majority on                                                               
     the first  round, I get that.  But at this point, you're  now                                                            
     starting  to change  the dynamic  from the  majority vote  to                                                            
     the  highest  vote  count.    That  is  a  different  set  of                                                            
     circumstances  I think.   So it's something  to ponder as  we                                                            
     go  forward  in this  particular  issue.   I could  see  some                                                            
     circumstances  where  a vote  count  may  be lower  than  the                                                            
     majority  votes cast  for an  individual.   So  I think  I'll                                                            
     have  to look and see  how that works,  but it does create  a                                                            
     question in my mind.  That's all.  Thank you.                                                                            
           CHAIR STEVENS:  Important to think that through                                                                    
     because  there is  a -- essentially  a disadvantage  for  the                                                            
     voter  who only  chooses to vote  for one,  and that  changes                                                            
     the dynamics of it. Senator von Imhof.                                                                                   
           SENATOR VON IMHOF:  Thank you.  So in theory then, all                                                             
     the  electronic  votes or  the  voting  pieces of  paper  run                                                            
     through  the  machine  the  first  time  and  there's  not  a                                                            
     majority  winner.   So they take  all those  pieces of  paper                                                            
     and  run them through  again.  There's  still not a  majority                                                            
     winner.   They take all  those pieces of  paper and run  them                                                            
     through  again.  So  basically what we're  having is a  bunch                                                            
     of  secret  runoffs, because  there's  a calculation  in  the                                                            
     back  that's happening  as we're  running  through all  these                                                            
     ballots  again  and  again  if we're  running  them  off  and                                                            
     running  them off and it's all  secret.  Does the initiative                                                             
     say that  there's going to be an announcement?  So  Candidate                                                            
     A is  no longer -- we're giving  you an update.  Candidate  A                                                            
     got only  ten votes, and so  that person is no longer  there.                                                            
     So  we're going to  run them off  again.   And we have  these                                                            
     whole  bunch  of  people  that  are  watching   this  or  not                                                            
     watching  it.    They're  running  off  again,  thousands  of                                                            
     ballots,  tens of  thousands.   So then  do they  give us  an                                                            
     update  again?  Candidate B  is now no  longer there.  Or  is                                                            
     this all  done just -- and at the very, very end this  is who                                                            
     wins?                                                                                                                    
           MS. MILLS:  So through the Chair, Senator von Imhof,                                                               
     there is  no requirement of that sort of announcement  in the                                                            
     initiative bill.                                                                                                         
           CHAIR STEVENS:  Just so I understand, I think it will                                                              
     lead to  talks at the Division of Elections about how  that's                                                            
     interpreted.   And, you  know, the big  advantage I think  in                                                            
     the  Alaska election system  is that we  have paper  ballots,                                                            
     and  we can always  go back and  recount them.   This adds  a                                                            
     pretty  confusing issue  when you keep  running them  through                                                            
     the  machine.  Anyway, maybe we  can ask our commissioner  or                                                            
     our elections folks about that.  Senator Begich.                                                                         
           SENATOR BEGICH:  Thank you, Mr. Chairman.  Just                                                                    
     without  either  supporting or  opposing this  initiative,  I                                                            
     would  just  clarify that  similar  to  a system  that --  it                                                            
     sounds  like it's similar  to a system,  though, with  limits                                                            
     that's used in Australia.                                                                                                
           I mean, and so that's probably what I'd ask our                                                                    
     division  director, how that works,  because this looks  like                                                            
     it's  limited so that  it wouldn't be  every single  election                                                            
     but  that there is --  Minneapolis uses  a system like  this,                                                            
     where  they're  constantly reporting  the data,  who's  being                                                            
     taken off,  and it's reported on a daily basis, but it  takes                                                            
     a lot of time.                                                                                                           
           My question, and maybe it's for the lieutenant -- I                                                                
     mean,  for the  director  of the  Division of  Elections  but                                                            
     maybe for  you.  Do we even have machine that can --  we just                                                            
     bought new  software.  Do you know if that -- is that  really                                                            
     a question  for the Division of  Elections?  It is.  So  I'll                                                            
     withhold  that question until later.   We just purchased  new                                                            
     machines, so --                                                                                                          
           CHAIR STEVENS:  We did.                                                                                            
           SENATOR BEGICH:  -- I don't even know if they can                                                                  
     accommodate this.                                                                                                        
           CHAIR STEVENS:  Thank you, Senator Begich.  Further                                                                
     questions or comments?  Ms. Mills.                                                                                       
           MS. MILLS:  So then Sections 25 through basically 29                                                               
     are  different conforming  changes for  either ranked-choice                                                             
     voting  or the  open primary  system.   So I'm  not going  to                                                            
     spend a lot of time on those.                                                                                            
           Moving to Section 30, this is similar to the change in                                                             
     the  APOC  commission  membership.    Again,  you  have  four                                                            
     district  absentee  ballot  counting  boards  and  questioned                                                            
     ballot  counting  boards, and  there's  a certain  way  those                                                            
     numbers  are appointed.  This would  add in that basically  a                                                            
     political  group could be viewed the same as political  party                                                            
     when  you're looking  at how  many registered  voters and  so                                                            
     who gets representation on those boards.                                                                                 
           Sections 31 through 36, again, conforming changes.                                                                 
           Section 37 is kind of your crux for the open primary.                                                              
     The  primary would no longer  serve to determine the  nominee                                                            
     of  a  political party  or  political  group.   Instead,  the                                                            
     primary  would narrow  the number  of candidates  whose  name                                                            
     would  appear on  the general election  ballot to  four.   So                                                            
     everybody  runs, and then it's the  top four that move on  to                                                            
     the general election.                                                                                                    
           And so Section 38, this goes back to the governor and                                                              
     lieutenant   governor.     It  would   amend  the   candidate                                                            
     declaration  to  require  that candidates  for  governor  and                                                            
     lieutenant  governor  include  the name  of  the candidate's                                                             
     running  partner.   So  you basically  choose ahead  of  time                                                            
     before  heading into  the primary  who your  running  partner                                                            
     is.                                                                                                                      
           Section 39 relates to the open primary.  It                                                                        
     establishes  the process for preparation and distribution  of                                                            
     ballots  to account for the  open primary system where  there                                                            
     would  only be one primary ballot.   So this current  statute                                                            
     deals  with having the separate  ballots, depending on  which                                                            
     political  party.   This would  turn  it into  a one  primary                                                            
     ballot system.                                                                                                           
           Section 40, again, relating to the open primary, would                                                             
     repeal  and  reenact  the  statute  that  establishes   which                                                            
     candidates  will be  placed on the  general election  ballot.                                                            
     Again,  you have  the top  four move  on, and  it would  also                                                            
     include  a process for  filling a vacancy  that occurs  after                                                            
     the  primary election.   There's  statutes  for dealing  with                                                            
     that  now, but, again,  you'd get rid  of the party  petition                                                            
     process,  and there  would be  another process  by which  you                                                            
     could  fill a  vacancy if  it occurs  after  the primary  but                                                            
     before the general.                                                                                                      
           Section 41 would allow a write-in candidate at the                                                                 
     general election  to designate his or her political party  or                                                            
     political  group affiliation or  be designated as  undeclared                                                            
     or  nonpartisan, similar to what  you're allowed in the  open                                                            
     primary.                                                                                                                 
           Section 42 would eliminate the requirement for                                                                     
     write-in  candidates,  that  a  candidate  for  governor  run                                                            
     jointly  with a candidate  for lieutenant  governor from  the                                                            
     same political  party or group.  Again, you could choose  who                                                            
     your  running   mate  is  and  political  party  affiliation                                                             
     wouldn't matter.                                                                                                         
           Section 43 would provide that the ranked-choice method                                                             
     of  voting  in  the general  election  also  applies  to  the                                                            
     election  of  electors  of  president  and  vice   president.                                                            
     Again,  you wouldn't --  the primary wouldn't  fit in  there.                                                            
     You'd have  the same nomination process for getting onto  the                                                            
     general  election  ballot for  a presidential  election,  but                                                            
     the  way  you  choose  them,  you  choose  the ranked-choice                                                             
     voting method in the general election.                                                                                   
            CHAIR STEVENS:  Thank you.  Senator Begich.                                                                       
           SENATOR BEGICH:  Thank you, Mr. Chairman.  Going back,                                                             
     just very  briefly, to Section 38 and then moving into  these                                                            
     other  sections.  If  it's a primary  campaign with no  party                                                            
     affiliation,   then  there  would   be  no  requirement   for                                                            
     governor  and lieutenant  gubernatorial  candidate  to be  of                                                            
     the same  party if they were running as a team.  Would  there                                                            
     be under this initiative?                                                                                                
           MS. MILLS:  So through the Chair, Senator Begich,                                                                  
     there  would not be a  requirement that they  be of the  same                                                            
     party.                                                                                                                   
           SENATOR BEGICH:  Okay.  Thank you.                                                                                 
           CHAIR STEVENS:  Thank you.  Senator von Imhof.                                                                     
           SENATOR VON IMHOF:  So is there anything in this                                                                   
     initiative  that talks about changing your party, as  in "I'm                                                            
     going  to  change  my party  in  June.   The  primary  is  in                                                            
     August"  or anything  about changing  your  party year  after                                                            
     year?   One  year  you're Republican,  the next  year  you're                                                            
     Democrat, and  then all of a sudden you're a political  party                                                            
     group the third year?  I mean, is there anything on that?                                                                
           MS. MILLS:  So through the Chair, Senator von Imhof,                                                               
     there -- this  initiative bill does not address that  at all.                                                            
     I  will say that,  thinking about our  current laws, I  don't                                                            
     think  there's  anything  on that  either  except  that,  you                                                            
     know,  you have  to be  a Republican  -- the  parties get  to                                                            
     choose  what their  qualifications are  for their candidates                                                             
     in their  primary.  That's the requirement.  But a party,  as                                                            
     we've  seen because  we had a  recent court case  on it,  can                                                            
     choose  to open up  their primary to  more than just  members                                                            
     of their party as it stands right now.                                                                                   
           CHAIR STEVENS:  Senator Begich.                                                                                    
           SENATOR BEGICH:  And just to clarify, thank you,                                                                   
     Mr. Chairman.   But a party could also choose to pick  its --                                                            
     select  its candidate by caucus.   There's no prohibition  on                                                            
     that  either.  They don't  have to go  to a primary  process,                                                            
     do they?   Other states don't.   Is there a requirement  that                                                            
     a party here use a primary?                                                                                              
           MS. MILLS:  Through the Chair, Senator Begich, in                                                                  
     order to  have your candidate on the general election  ballot                                                            
     as a nominee of your party --                                                                                            
           SENATOR BEGICH:  Let me clarify.                                                                                   
           MS. MILLS:  Okay.                                                                                                  
           SENATOR BEGICH:  So under this initiative, you                                                                     
     wouldn't have  a party affiliation.  So if a party wanted  to                                                            
     make  its choice for  who it  was going to  signal whom  they                                                            
     supported,  which  candidate or  candidates  they supported,                                                             
     they would  still have a process.  They could run it  through                                                            
     their  own primary.  In fact, I  think this year my party  is                                                            
     running  its own  primary for  president.   They're  actually                                                            
     running  a primary  election, which  they're paying  for.   I                                                            
     don't believe  the state's paying for it.  Or you could  have                                                            
     a  caucus  process.   Again,  parties  pay for  their  caucus                                                            
     processes now for the presidential elections.                                                                            
           And they could do what Minnesota, for example, does                                                                
     when  they select  who they  prefer,  or the  state of  Utah,                                                            
     where  they   select  who  they  prefer,  or  the  state   of                                                            
     Colorado,  where  a  certain  percentage  is  required  as  a                                                            
     threshold  or you don't get  the official endorsement of  the                                                            
     party.   All those  might be -- all  those would be --  under                                                            
     even  current law we  could be doing  those kinds of  things.                                                            
     And  then,  of  course,  under current  law  you'd  have  the                                                            
     primary  process, and then  under this law  you would have  a                                                            
     primary process  without partisanship indicated.  Would  that                                                            
     be basically correct?                                                                                                    
           MS. MILLS:  So through the Chair, Senator Begich, that                                                             
     is  correct.   The parties  have authority  to determine  how                                                            
     they  decide who they're going to  endorse.  The real  change                                                            
     is here is in the state-funded primary process.                                                                          
           SENATOR BEGICH:  Thank you.  Thank you, Mr. Chairman.                                                              
           CHAIR STEVENS:  Thank you for the questions. Please                                                                
     continue.                                                                                                                
           MS. MILLS:  Okay.  So we were on -- so that was 38,                                                                
     39 --                                                                                                                    
           CHAIR STEVENS:  43 I think we did.                                                                                 
           MS. MILLS:  Yeah, ranked-choice.  So, yeah, we did the                                                             
     ranked-choice  voting.  Okay.   And then Sections 44  through                                                            
     49 --  and really if you  go down to 50  through 54, this  is                                                            
     where you  take the filling of vacancies that would  normally                                                            
     go  through either a special runoff  process or some sort  of                                                            
     party  petition  process,  would  become  a  special  primary                                                            
     conducted as  an open primary to fill a vacancy, followed  by                                                            
     a special  election.  And this  would apply to the office  of                                                            
     United States Senator or United States Representative.                                                                   
           And then 50 through 54 would amend the special                                                                     
     election process  for filling a vacancy in the Office  of the                                                            
     Governor.   And, again, that's only if you have a  lieutenant                                                            
     governor  who succeeds and then  has to step down and  you're                                                            
     really  stuck with the successor  of the lieutenant  governor                                                            
     as  governor.  That's when  this circumstance applies.   And,                                                            
     again,  you'd have  a special  primary conducted  as an  open                                                            
     primary,  followed by a special  election instead of a  party                                                            
     petition process.                                                                                                        
           SENATOR COGHILL:  Mr. Chairman.                                                                                    
           CHAIR STEVENS:  Senator Coghill.                                                                                   
           SENATOR COGHILL:  Probably Section 43 changes one                                                                  
     significant   fact.    At   this  point,   we  have  done   a                                                            
     winner-takes-all  on electors,  for the most  part, and  that                                                            
     is  whatever party  gets the  general election  gets to  pick                                                            
     the  electors, and  that is three  votes that  could tip  the                                                            
     balance of United States power.                                                                                          
           In this particular case, what we've done is                                                                        
     surrendered  that to a ranked-choice voting selection  style.                                                            
     And I  think that's a significant  change.  So I don't  think                                                            
     that  that falls  into  one of  the major  policy calls.    I                                                            
     think  that is  a  policy call  to itself,  just to  let  you                                                            
     know.                                                                                                                    
           CHAIR STEVENS:  Thank you.                                                                                         
           MS. MILLS:  So Section 55, this would amend the                                                                    
     statute   providing   for   the   qualifications    and   the                                                            
     confirmation   process   for  an   appointee  to   a   vacant                                                            
     legislative  office, to  include political  group along  with                                                            
     political  party.  This is, again, taking political group  to                                                            
     be on  the same level as a  political party.  So if you  have                                                            
     a member  of a specific political  group, then being part  of                                                            
     that   political  group  would   then  become  part  of   the                                                            
     qualifications  in order to fill  a legislative vacancy  that                                                            
     doesn't require the special election.                                                                                    
           CHAIR STEVENS:  Senator Begich.                                                                                    
           SENATOR BEGICH:  Thank you.  Cori, what do we do now                                                               
     when  independent -- for  example,  if they  were to  resign,                                                            
     how  would we deal  with that now  under the  law?  I'm  just                                                            
     curious.                                                                                                                 
           MS. MILLS:  So through the Chair, Senator Begich, and                                                              
     I'd  have to  look back  again specifically  at the  statute,                                                            
     but it does account for that.                                                                                            
           And basically, first of all, if you have an                                                                        
     independent  who's  essentially  caucusing  with  one  party,                                                            
     they  would take that into account.   If you had -- and  that                                                            
     group  would be  the ones to  vote on  whoever is  appointed,                                                            
     but  otherwise the  governor has  to appoint  someone who  is                                                            
     also  an independent.    And if  it comes  down to  them  not                                                            
     having any  sort of caucus or affiliation, as I recall,  then                                                            
     they --  that appointment would  just stand.   I don't  think                                                            
     you  have any  vote that occurs  because that  person is  not                                                            
     part of any particular group within the Legislature.                                                                     
           CHAIR STEVENS:  So if an independent were to resign or                                                             
     be  replaced,  replaced  by an  independent,  if  that  first                                                            
     independent  was  in  a  caucus, the  caucus  would  have  to                                                            
     decide whether to accept them; is that correct?                                                                          
           MS. MILLS:  Yes, if that particular independent was                                                                
     really  part  of and  caucusing  with a  specific  affiliated                                                            
     caucus group, that caucus group would have a say.                                                                        
           CHAIR STEVENS:  Thank you.                                                                                         
           MS. MILLS:  As I recall.                                                                                           
           CHAIR STEVENS:  Senator Begich, further question on                                                                
     that?                                                                                                                    
           SENATOR BEGICH:  I think what I'd like is,                                                                         
     Mr. Chairman,  if perhaps with  a little  more thought and  a                                                            
     little  more time,  the  Department of  Law would  provide  a                                                            
     more  detailed   or  nuance  description --  that  would   be                                                            
     helpful --  as opposed to  just here at  the table,  because,                                                            
     of  course,  this  Legislature  has,  for  the  bulk  of  its                                                            
     history  in either the  Senate or the  House, had bipartisan                                                             
     caucuses  where  at least  one member  of another  party  has                                                            
     been  in those caucuses, including,  quite frankly, now  both                                                            
     majority  caucuses and  currently.   So I'd  be very  careful                                                            
     about that.   I would want to have a more clear idea  of what                                                            
     that is.   I think we should  have a more clear idea of  what                                                            
     that is.                                                                                                                 
           CHAIR STEVENS:  Thank you, Senator Begich.  So,                                                                    
     Ms. Mills,  if  you  could  clarify   that.    Send  us  your                                                            
     comments to  my office, and we'll make sure we distribute  it                                                            
     to everybody.                                                                                                            
           MS. MILLS:  Happy to do that.  So we have gone through                                                             
     55.  We're  now on 56 through 60.  This is, again, filling  a                                                            
     vacancy in  the state Senate and would provide for a  special                                                            
     primary  conducted as an open  primary followed by a  special                                                            
     election, as we discussed before.                                                                                        
          Section 61 through 63, just conforming changes.                                                                     
           Section 64 through 66 would specify what the election                                                              
     pamphlets  have to include, or they  do now.  And this  would                                                            
     add  requirements.   So  for  the general  election  and  the                                                            
     primary  to include  a notice  to voters  that any  political                                                            
     party  or  political  group  affiliation  listed  next  to  a                                                            
     candidate  does not represent the political party or  group's                                                            
     endorsement  or nomination.   That's similar  to what has  to                                                            
     go on the ballot, as well as the polling place.                                                                          
           And then election pamphlets would also include an                                                                  
     explanation of  the open primary system and how that works.                                                              
           And, lastly, the general election pamphlet would                                                                   
     explain the  ranked-choice voting method.  So those would  be                                                            
     new  requirements  for  the  division  to  include  in  their                                                            
     pamphlet.                                                                                                                
           CHAIR STEVENS:  Thank you.                                                                                         
          MS. MILLS:  Again, 67, 68, conforming changes.                                                                      
           69 would amend the definition of political party by                                                                
     deleting   language  referring   to  the   nomination  of   a                                                            
     candidate  by  the  group  seeking  to  be  recognized  as  a                                                            
     political  party.   So right  now how  you determine  whether                                                            
     you've  reached political  party status  has to  do with  how                                                            
     many votes  your nominated candidate received in the  general                                                            
     election.   And  because you  would  no longer  have a  party                                                            
     nomination  process,  a  party --  political  party  primary,                                                            
     that would no longer apply.                                                                                              
           So that language is deleted, which leaves you with                                                                 
     political  party  status  would  only be  determined  by  the                                                            
     number  of registered voters  the group  has, not the  number                                                            
     of  votes a  prior nominated  candidate received.   So  you'd                                                            
     look at  the number of registered voters that are  registered                                                            
     to that party.                                                                                                           
           CHAIR STEVENS:  Senator von Imhof.                                                                                 
           SENATOR VON IMHOF:  Does this mean that like a                                                                     
     political  group is  sort of  like a  subset  of a  political                                                            
     party?   I mean, I  could be Republican,  and I could be  Tea                                                            
     Party, or  I could be XYZ, you know, Big Hats or whatever  it                                                            
     is.  I  mean, does it mean that you're -- is it a subset,  or                                                            
     is  it  now we  have  Republicans, Democrats,  and  then  any                                                            
     number of things?                                                                                                        
           MS. MILLS:  Through the Chair, Senator von Imhof, I                                                                
     think  the  latter  is  an apt  description.    I  would  say                                                            
     Director  Fenumiai  has been  dealing  with this  for  years.                                                            
     They have  a number of political groups at any one time  that                                                            
     are sitting  on the edge, and they always have to do a  check                                                            
     as to whether  they have become a political party.  And  then                                                            
     you can also fall out of political party status.                                                                         
           The Libertarian Party is a really good example of one                                                              
     that,  you know, in a presidential  election you might  reach                                                            
     above  the threshold,  and so all  of a sudden  they have  an                                                            
     opportunity  to be  part of the  primary process.   And  then                                                            
     they'll  fall  out  of  it  when  it's  not  a  presidential                                                             
     election  because you don't  have as many  voters voting  for                                                            
     the  Libertarian candidate.   That's just  one example.   But                                                            
     you  could  be  any  number  of  political  groups  that  are                                                            
     sitting,  waiting  to  reach  the  threshold   in  any  given                                                            
     election so  that they can then be a political party  for the                                                            
     next election.                                                                                                           
           SENATOR VON IMHOF:  I have one more question.                                                                      
          CHAIR STEVENS:  Yes, please, Senator von Imhof.                                                                     
           SENATOR VON IMHOF:  Okay.  So just kind of the                                                                     
     political  group, political party, then you said caucus.   So                                                            
     we  had  a  situation  that  when  Governor  Dunleavy  was  a                                                            
     senator,  he left  the caucus.   He  was Republican,  but  he                                                            
     left  the caucus.    Then he  quit, and  we filled  him  with                                                            
     Senator  Mike  Shower.    It  was  the  Republicans  at  that                                                            
     point --  because  Mike  was Republican --  both  Mikes  were                                                            
     Republicans,  that's who chose him.  But if Dunleavy  was not                                                            
     part  of the  caucus,  he was  not part  of any  group  under                                                            
     this, who would have chosen him?                                                                                         
           MS. MILLS:  Through the Chair, Senator von Imhof, are                                                              
     you  speaking specifically to if  there was an open  primary,                                                            
     or what are the current --                                                                                               
           SENATOR VON IMHOF:  To fill a vacant legislative seat,                                                             
     a   vacant --  I  mean,  does   this  deal  with  a   vacated                                                            
     legislative  seat  after a  primary  or  within 30  days,  60                                                            
     days,  or are we talking  just an election?   Are we  talking                                                            
     about like how this body -- or like an election?                                                                         
           MS. MILLS:  So on Section 55, through the Chair,                                                                   
     Senator  von Imhof,  specifically  is relating  to filling  a                                                            
     vacancy  by gubernatorial  appointment  and then  who has  to                                                            
     vote within the Legislature on that appointment.                                                                         
           SENATOR VON IMHOF:  Right.                                                                                         
           MS. MILLS:  And so this would -- if you are not part                                                               
     of  a political  group or a  political party,  if the  person                                                            
     who  was in the  office who vacated  it wasn't within  either                                                            
     of  those  groups,  then  there  is --  which  I  just  can't                                                            
     remember  right now -- there's existing language on what  you                                                            
     do  with  those types  of  individuals,  and that  would  not                                                            
     change.                                                                                                                  
           CHAIR STEVENS:  I think probably -- I'm going to add,                                                              
     what  if you are  a party  one and are  replaced and  there's                                                            
     nobody to  confirm your replacement?  Interesting conundrum.                                                             
     Thank  you for  bringing that up.   Further  comments?   Yes,                                                            
     Representative Kopp.                                                                                                     
           REPRESENTATIVE KOPP:  Thank you, Mr. Chairman.  It                                                                 
     occurs to  me there's a very significant educational  process                                                            
     for  the  public  to  understand  all  the  nuances  of  this                                                            
     initiative  that  may  take a  considerable  amount  of  time                                                            
     just,   you   know,   going  through   the   sectional,   the                                                            
     highlights.    It's a  significant  change  to how  they  run                                                            
     today.                                                                                                                   
           CHAIR STEVENS:  Thank you, Representative.  It's well                                                              
     worthwhile to go through these details.  Senator Begich.                                                                 
           SENATOR BEGICH:  Thank you, Mr. Chairman.  Just two                                                                
     points  of clarification:  We  have actually had a  situation                                                            
     where  we had one  party represented.   We had  one and  then                                                            
     two  Libertarians in the early  '80s in the Legislature.   So                                                            
     I'd  be curious to  know, you  know, how we  would have  done                                                            
     that.                                                                                                                    
           And then, secondarily, to Representative Kopp's                                                                    
     comment,  I think you're  about to get  to Section 74,  which                                                            
     acknowledges  the  complexity by  providing a  two-year  time                                                            
     period  for the Director of  Elections to educate the  public                                                            
     before the initiative takes --                                                                                           
           CHAIR STEVENS:  Thank you.  And, Ms. Mills, any                                                                    
     clarification   you  give  us  at  a  later  date  would   be                                                            
     appreciated.  Thank you.                                                                                                 
           MS. MILLS:  Yes, I am happy to do that.  I would refer                                                             
     you --  I did find  the statute.   It's --  15.40.330 is  the                                                            
     statute  that talks about  qualification and confirmation  of                                                            
     appointees  when filling  a vacancy.   And I'll  get back  to                                                            
     you  in   writing,  but  if  anyone  wants  to  look   it  up                                                            
     themselves, that's the statute, 15.40.330.                                                                               
           CHAIR STEVENS:  Thank you.  We are on 70; is that                                                                  
     right?                                                                                                                   
           MS. MILLS:  Yes.  So, and this would just add a                                                                    
     definition  of  ranked-choice   voting  basically  along  the                                                            
     lines  of what we already  discussed earlier about  having --                                                            
     being  able  to  rank  all  of  the  candidates.     If  your                                                            
     candidate  has  the least  amount  of  votes and  there's  no                                                            
     majority,  you would then -- your vote would then be  counted                                                            
     for your second ranked-choice.                                                                                           
           71, conforming changes.                                                                                            
           72 is repealers.  This is a fairly long list of                                                                    
     repealers.    And effectively  what  it  does is  it  repeals                                                            
     statutes  relating to  party petitions.    So when  political                                                            
     parties  put in a  petition to  fill a vacancy  in a  special                                                            
     election,  it  would get  rid  of that  because,  again,  now                                                            
     you're moving  to an open special primary.  It would get  rid                                                            
     of --                                                                                                                    
           CHAIR STEVENS:  Senator Coghill has a question on that                                                             
     point.                                                                                                                   
           SENATOR COGHILL:  So one of the things that we get to                                                              
     do as legislators,  when a bill is a presented to us,  we get                                                            
     to   look  at  the  repealers,   because  those  are   pretty                                                            
     significant  policy calls  in themselves  because the --  not                                                            
     only  does it change the structure,  but it is undoing a  lot                                                            
     of  things  that  have some  historical  and  actually  court                                                            
     context  to it.   Is  there any  reason that  in an  election                                                            
     pamphlet we would put a description of those repealers?                                                                  
           MS. MILLS:  Through the Chair, Senator Coghill, are                                                                
     you   specifically  speaking  I   assume  about  the   ballot                                                            
     summary --                                                                                                               
           SENATOR COGHILL:  Yes.                                                                                             
           MS. MILLS:  -- that's included?                                                                                    
           SENATOR COGHILL:  I mean, we have 70 sections of the                                                               
     bill,  and 72  is  a section  of 22  repealers that  all  are                                                            
     pretty significant  policy calls, notwithstanding the  policy                                                            
     calls that are replacing them.                                                                                           
           And I think for me, in full disclosure people should                                                               
     see what  is compared to what they're going to put in  place.                                                            
     I  know that requires  a lot  of printing, but  I think  this                                                            
     can be  disingenuous to the people  of Alaska if we just  put                                                            
     in repeal these languages.  And just a point, so --                                                                      
           MS. MILLS:  Through the Chair, Senator Coghill, I                                                                  
     appreciate  that.    And  I'll  --  you  know,  I  think  the                                                            
     division  director  is sitting  here, and  we can  take  that                                                            
     back to the lieutenant governor.                                                                                         
           They are -- we are pretty prescribed on what we put                                                                
     in,  you know, and  the entire initiative  bill I think  gets                                                            
     put  in the  election  pamphlet, and  then there's  a  ballot                                                            
     summary,  and the ballot  summary has been  written.  It  was                                                            
     provided  with  the  notifications   yesterday,  and  it  may                                                            
     already be on the division's website.                                                                                    
           The ballot summary does make it clear that you're                                                                  
     eliminating  political party  primaries.  And  most of  these                                                            
     repealers  are basically getting rid  of any ability, from  a                                                            
     state  perspective,  for  the political  parties  to  make  a                                                            
     nomination  that then gets  on any sort  of general  election                                                            
     or  special  election  ballot.   And  that's why  I  said  it                                                            
     repeals  any  statutes  relating  to  party  petitions,   any                                                            
     statutes  relating to no-party candidates because now you  no                                                            
     longer  have the  petition process  for no-party candidates.                                                             
     They  just  have  to  participate  in the  primary  or  be  a                                                            
     write-in candidate.  Those are now your two options.                                                                     
           And then it also repeals all of the special runoff                                                                 
     elections  because, again, you're moving to an open  primary.                                                            
     So,  Senator Coghill,  through  the Chair,  I'd be  happy  to                                                            
     share   that  ballot  summary   also  with  the  Legislative                                                             
     Council.                                                                                                                 
           CHAIR STEVENS:  Senator Coghill.                                                                                   
           SENATOR COGHILL:  Mr. Chairman, and I appreciate                                                                   
     probably  they're  going  to  have  to  summarize,   but  the                                                            
     summarization   quite  often   glosses  over   some  of   the                                                            
     fundamentals,  for example,  the money coming  in and out  of                                                            
     the  state, the money  changing from one  person to  another,                                                            
     again,  at a  campaign, the way  we elect  our electors,  the                                                            
     way  we do runoffs.   I mean, you start  going down the  list                                                            
     of what  has changed and what's being pulled out of law  that                                                            
     already has  some court precedence to them is something  that                                                            
     I  think the public  is not getting  the full  story on.   So                                                            
     it's just something to think about.                                                                                      
           And I don't know if we can summarize those, but                                                                    
     probably  that's  the  best we  can  do.   But  I  think  the                                                            
     summary  could as long as the  74 sections of this law,  just                                                            
     for  what   it's  worth.    But  I  think --  just  for   me,                                                            
     Mr. Chairman,  I  think  we're  being  disingenuous   to  the                                                            
     people  of  the Alaska  if  we  don't tell  them  what  those                                                            
     repealers are.                                                                                                           
           CHAIR STEVENS:  Very good point.  Thank you.                                                                       
           MS. MILLS:  So that's the repealers.  And, like I                                                                  
     said,  it is a substantial list,  but that's what it's  doing                                                            
     is  getting -- really getting rid  of those three categories                                                             
     of statutes.                                                                                                             
           Section 73 is a severability clause.  You'll find                                                                  
     these in most initiative petitions these days.                                                                           
           And then Section 74, as Senator Begich pointed out                                                                 
     earlier,  would require --  it's a  temporary uncodified  law                                                            
     to  require the Director of Elections  for two years to  make                                                            
     efforts  to inform voters  of the changes  made to the  state                                                            
     selection process under this initiative bill.  And --                                                                    
           CHAIR STEVENS:  Senator von Imhof.                                                                                 
           SENATOR VON IMHOF:  Thank you.  So you talked a lot                                                                
     about  political group, and I did  find that it is, in  fact,                                                            
     defined   in  statute,  but  it's   not  very  clear.     And                                                            
     essentially  it  says,  "Political  group means  a  group  of                                                            
     organized  voters which  represents a  political program  and                                                            
     which  is not qualified as  a political party."  "Represents                                                             
     a political program," what's that?                                                                                       
           MS. MILLS:  Through the Chair, Senator von Imhof,                                                                  
     again,  I think the director  could talk about their  process                                                            
     for  taking   applications  for  political  groups  and   the                                                            
     process they  go through on reviewing those for what  they do                                                            
     currently.                                                                                                               
           CHAIR STEVENS:  Senator Begich.                                                                                    
           SENATOR BEGICH:  Thank you, Mr. Chairman.  Just to                                                                 
     clarify,   the  ranked-choice  process --  just  going   back                                                            
     through --  I've been thinking  about your sectional --  does                                                            
     that  apply  to  the  primary,  or  is  the  primary  just  a                                                            
     straight  primary,  open  primary,  top four  go  then  to  a                                                            
     ranked-choice process to the general?                                                                                    
           MS. MILLS:  Through the Chair, Senator Begich, your                                                                
     latter  is  correct.   So  it  only applies  to  the  general                                                            
     election.    So you  get  your  top four  from  the  primary.                                                            
     Those  go on the  general election,  and then  you get to  do                                                            
     your  ranked-choice.  In the primary  it would be a one  vote                                                            
     for each position.                                                                                                       
           CHAIR STEVENS:  Any further questions?  Thank you very                                                             
     much.  Senator Giessel.                                                                                                  
           PRESIDENT GIESSEL:  Cori,  could you clarify with  what                                                            
     you  just said?  So  in the primary, a  plurality would be  a                                                            
     winner.   In the general,  ranked-choice voting would  apply,                                                            
     and,   again,  in   that  ranked-choice   voting,  again,   a                                                            
     plurality  declares  the  winner.   It  doesn't  have  to  be                                                            
     50 percent plus one; am I correct?                                                                                       
           MS.  MILLS:    Through  the  Chair,  Senator   Giessel,                                                            
     correct.    And you  would have  your  top four  within  that                                                            
     plurality go on to the general election ballot.                                                                          
           PRESIDENT GIESSEL:  Thank you, Mr. Chairman.                                                                       
           CHAIR STEVENS:  Thank you, Senator.  Further  questions                                                            
     or  comments?  Ms. Mills,  thank you for  your knowledge  and                                                            
     your  expertise and your ability  to answer questions on  the                                                            
     fly  here.   I appreciate  it.   We are  expecting some  more                                                            
     responses  from  you, which  we'll  share with  the  members.                                                            
     Thank you very much.                                                                                                     
           MS. MILLS:  Happy to do that.                                                                                      
           CHAIR  STEVENS:    We'll  move  on  to  comments   from                                                            
     Legislative  Legal.   And  I'd  ask Megan  Wallace  and  Noah                                                            
     Klein to  come forward, if you would, please.  Thank you  for                                                            
     being  with us.  And if you'd  put yourselves on the  record,                                                            
     please.                                                                                                                  
           MS. WALLACE:   Good  morning.   For the  record,  Megan                                                            
     Wallace,  Director  of Legal  Services, and  I have  with  me                                                            
     today,  Noah  Klein,  legislative counsel,  also  with  Legal                                                            
     Services.                                                                                                                
           MR. KLEIN:   Good  morning.   Noah  Klein, legislative                                                             
     counsel with Legal Services.                                                                                             
           CHAIR STEVENS:  Thank you.                                                                                         
           MS. WALLACE:   Before I get  into our prepared  outline                                                            
     to address  issues, there's a couple -- just hearing  some of                                                            
     the  questions that  have been  asked, there are  just a  few                                                            
     minor  points of clarification or  to answer a few  questions                                                            
     that  have come up  this morning  that I might  make a  brief                                                            
     comment on.                                                                                                              
           CHAIR STEVENS:  Yes, please.                                                                                       
           MS. WALLACE:  With respect to I believe it was Senator                                                             
     von  Imhof  and  Senator  Coghill's  question  regarding  the                                                            
     Section  17 through  19, which  defined the  new terms  "dark                                                            
     money, true  source, and outside-funded entity," there was  a                                                            
     question    about   whether    those --   the   contribution                                                             
     limitations  that  are --  that  were put  on,  whether  they                                                            
     apply   to    initiatives.      And   the   definition    for                                                            
     "contribution"  -- which  is already  defined  in  statute --                                                            
     does,  in  fact,  mean -- also  means  influencing  a  ballot                                                            
     proposition  or question.   So those  new requirements  would                                                            
     also apply to initiatives.                                                                                               
           Moving on, just briefly, there was some questions                                                                  
     about  certification  or  disclosure   of the  ranked-choice                                                             
     results.    And in  Section 26  of  the initiative,  while  I                                                            
     can't  speak  as  to  how  the  division  would   make  those                                                            
     announcements,   Section    26   of   the   initiative   does                                                            
     specifically  state that the number  of votes for each  round                                                            
     of the  ranked-choice tabulation process would be certified,                                                             
     and  so, therefore, it implies  that it will be made  public,                                                            
     each round of the counting.                                                                                              
           And there was just a large discussion about political                                                              
     groups.    And as  Senator von  Imhof  pointed out,  that  is                                                            
     already  a term  that we use  in statute.   And Ms.  Fenumiai                                                            
     can  speak more about  the process, but  there is already  an                                                            
     application  process  in --  that exists  now.   And  on  the                                                            
     Division  of Elections  website,  they keep  a list of --  or                                                            
     there's  a public  list of  political groups  who have  filed                                                            
     applications currently on the website.                                                                                   
           Just some examples to educate the committee and maybe                                                              
     the  public that is  watching, some of  the political  groups                                                            
     that   have    filed   applications   include   the    Alaska                                                            
     Constitution  Party, the  Green Party of  Alaska, OWL  Party,                                                            
     Moderate Party  of Alaska, and there's others.  So those  are                                                            
     examples  of political  groups  as they  exist in  the  state                                                            
     today,  which would then be included  in part of the  vacancy                                                            
     process  for  the  legislative  offices  that  we  were  just                                                            
     discussing.                                                                                                              
           CHAIR STEVENS:  Thank you, Ms. Wallace.  I appreciate                                                              
     those clarifications.                                                                                                    
           MS. WALLACE:  Just a reminder to the public,                                                                       
     Legislative  Legal  Services  is a  nonpartisan  agency  that                                                            
     provides   legal  advice   and  drafting   services  to   the                                                            
     Legislature.   So  our comments  here today  are politically                                                             
     neutral  and issues  that  we have  independently identified                                                             
     with respect to the Better Elections Initiative.                                                                         
           I wanted to start by discussing the legal standard if                                                              
     there   were  to   be   challenges  post-enactment   to   the                                                            
     initiative,  what  a  court  would  look  at  if  there  were                                                            
     questions  about  what  a  provision means.    Is  it  vague?                                                            
     Those kinds of questions would be presented to a court.                                                                  
           When a court construes an initiative, it does so in a                                                              
     manner  that differs from the manner  in which a court  would                                                            
     maybe   construe   a  statute   that   is  enacted   by   the                                                            
     Legislature.                                                                                                             
           So the Alaska Supreme Court has noted that, when they                                                              
     are  construing  the  meaning  of  ambiguous  statutes,  they                                                            
     often  will   look  at  the  plain  meaning  and  maybe   the                                                            
     legislative  history whenever possible,  but that process  is                                                            
     different when they are reviewing a ballot initiative.                                                                   
           So when the Supreme Court -- the Alaska Supreme Court                                                              
     is  reviewing the language  of a ballot  initiative, it  will                                                            
     look   to  the  published  arguments   made  in  support   or                                                            
     opposition  to determine  what meaning  the  voters may  have                                                            
     attached to the initiative.                                                                                              
           And the court made a point to say that it will not                                                                 
     accord  special  weight  to  the  stated   intentions  of  an                                                            
     individual   sponsor.    So,  to  me,  that's  an   important                                                            
     distinction,  too,  to  keep  in mind  with  respect  to  the                                                            
     manner   in  which   a  court   construes  these  initiative                                                             
     petitions.   And that standard would  apply to not only  this                                                            
     initiative  but the  initiative we discussed  last time,  the                                                            
     oil tax initiative.                                                                                                      
           CHAIR STEVENS:  Senator Begich.                                                                                    
           SENATOR BEGICH:  So I'm curious about that.  Thank                                                                 
     you,  Mr. Chairman.    You're  saying  it's  not  the  stated                                                            
     intention  of the sponsor but the public statements that  are                                                            
     made.   But aren't the public statements that are made  often                                                            
     made by  the sponsor of an initiative petition?  And what  is                                                            
     the distinction there, and where do they come together?                                                                  
           We've -- for example, in both of these initiatives, we                                                             
     haven't actually  heard from the sponsors.  We've only  heard                                                            
     from  Leg. Legal, Department of  Law, et cetera.  So  where's                                                            
     that  distinction drawn?  Because  it sounds to me then  that                                                            
     any  testimony  that  a  sponsor  might  make  would  not  be                                                            
     relevant,  but what would be  relevant would be their  public                                                            
     statements  that they're  making  when they're  not before  a                                                            
     committee.   Am I understanding that?  Is that what you  just                                                            
     said?                                                                                                                    
           MS. WALLACE:  Through the Chair, Senator Begich, I                                                                 
     could clarify  a little bit.  They won't give special  accord                                                            
     to  the statements of the  initiative sponsor, but they  will                                                            
     look  at --  and I  think  it's those  statements  after  the                                                            
     ballot  has been  placed on  the initiative.    So maybe  the                                                            
     statements  of intent that are  argued before the court  that                                                            
     are  post-election or  post the  initiative  being placed  on                                                            
     the ballot  will be not given special accord.  But the  court                                                            
     will  if those -- if the sponsor  statements are part of  the                                                            
     public  record  of what  a voter  would  have had  access  to                                                            
     before   the  election,  then   those  statements  might   be                                                            
     considered by the court.                                                                                                 
           SENATOR BEGICH:  To clarify, Mr. Chairman --                                                                       
           CHAIR STEVENS:  Please, Senator Begich.                                                                            
           SENATOR BEGICH:  The sponsors often write initiatives                                                              
     for  the  election pamphlet  statements.   That's  a  sponsor                                                            
     statement.   That  would not  have the  power  of the  public                                                            
     statements  made?   That pamphlet  goes to  everybody in  the                                                            
     state.    I'm  confused  by what  you're  describing  as  the                                                            
     standard.   I  don't  understand I  think fully  what  you're                                                            
     describing as the standard.                                                                                              
           MS. WALLACE:  Through the Chair, Senator Begich, the                                                               
     court will  look at statements that were made in favor  of or                                                            
     against  the initiative at the time  up to the time that  the                                                            
     initiative is placed on the ballot.                                                                                      
           What I'm clarifying is more of a scenario where if a                                                               
     certain   provision  is   challenged  and   it's  argued   or                                                            
     litigated  in court, the court  would maybe not give --  will                                                            
     not   give   strong  accord   or   weight  to   an   argument                                                            
     post-election that is made by the initiative sponsor.                                                                    
           SENATOR BEGICH:  I understand.                                                                                     
           CHAIR STEVENS:  Thank you.  Please continue.                                                                       
           MS. WALLACE:  So before preparing for today, Mr. Klein                                                             
     and  I kind of  divvied up the  workload.   And I'm going  to                                                            
     run  through just some general  legal issues that our  office                                                            
     spotted  with respect to our review  of the initiative.   And                                                            
     if  you have specific  questions related  to the language  of                                                            
     the  initiative or  some more  of the  details, Mr. Klein  is                                                            
     equipped to try to answer those questions.                                                                               
           The first legal issue that I wanted to discuss is that                                                             
     there --  with  respect  to  the  ranked-choice   voting  for                                                            
     general  elections, it's our  opinion that the ranked-choice                                                             
     initiative  does raise an issue under Article III, Section  3                                                            
     of  the Alaska Constitution with  respect to the election  of                                                            
     the governor.                                                                                                            
           Article III, Section 3 states that "The governor shall                                                             
     be  chosen  by the  qualified  voters  of the  state  at  the                                                            
     general  election.    The candidate  receiving  the  greatest                                                            
     number of votes shall be governor."                                                                                      
           There is a question in terms of whether the                                                                        
     ranked-choice  voting process, which  requires a majority  of                                                            
     the  votes, is  in conflict  with the  Alaska constitutional                                                             
     provision  that uses  the language  "the greatest  number  of                                                            
     votes."                                                                                                                  
           It has been our longstanding opinion of our office                                                                 
     that that  language means a plurality.  It's a question  that                                                            
     the Alaska  Supreme Court has not addressed, and so it  is an                                                            
     open question.                                                                                                           
           But with respect to a scenario where a general                                                                     
     election  were to occur  and the first  rounds of votes  were                                                            
     tallied and  there was a plurality but not a majority,  there                                                            
     is a question  as to whether using ranked-choice to get  to a                                                            
     majority  of the votes  cast is in  conflict with the  Alaska                                                            
     constitutional provision.                                                                                                
           Maine had -- which is the first state in the nation to                                                             
     have ranked-choice  voting -- passed an initiative I  believe                                                            
     in 2016  and established ranked-choice voting for all  of its                                                            
     general election  positions.  And the Maine Senate  certified                                                            
     a  question  to the  Maine  Supreme Court  asking  about  the                                                            
     constitutionality   of  some  of   the  provisions  in   that                                                            
     initiative.                                                                                                              
           And the decision that was rendered by the Maine                                                                    
     Supreme  Court  with  respect  to  that   question  that  was                                                            
     certified   to   the   Maine   Senate    was   that   Maine's                                                            
     Constitution --   which  does  specifically   use  the   word                                                            
     "plurality"   in   their  Constitution  --  held   that   the                                                            
     ranked-choice  voting  system with  respect to  the  governor                                                            
     and  legislative races  was in contradiction  with the  Maine                                                            
     Constitution.                                                                                                            
           So it's my understanding, from the research that I've                                                              
     done,  that  Maine  has  moved  forward  with  ranked-choice                                                             
     voting  but with the  exception of the  race of the  governor                                                            
     and state legislative offices.                                                                                           
           CHAIR STEVENS:  Senator Begich, you understand this                                                                
     thoroughly.  I know.                                                                                                     
           SENATOR BEGICH:  I do.  I'm sorry about this,                                                                      
     Mr. Chairman.    In Maine,  though, they  challenged --  they                                                            
     did  take the ranked-choice challenge  to the Supreme  Court.                                                            
     And,  in fact, in  the U.S. House  race they contested  that,                                                            
     and,  in  fact, a  member of --  a  person who  actually  won                                                            
     based  on ranked-choice  by getting  a majority  of the  vote                                                            
     was  declared  the  winner  after  being  challenged  by  the                                                            
     person who  initially led.  That's actually what happened  in                                                            
     the U.S. House race there.                                                                                               
           You're drawing the distinction between the governor's                                                              
     race  and the  U.S. House  race there.   But  the governor's                                                             
     race  wasn't contested  that way.   I mean, I  have to --  it                                                            
     was the  U.S., meaning that the governor's race there  wasn't                                                            
     a  dispute, but there was  in the U.S.  House race.  And  the                                                            
     court  in  Maine  ruled  in  favor  of  the  candidate   that                                                            
     eventually  triumphed through  ranked-choice  voting.   Isn't                                                            
     that right?                                                                                                              
           MS. WALLACE:  Through the Chair, Senator Begich, I                                                                 
     don't   have  any   reason  to  doubt --   I  didn't   really                                                            
     specifically  look at  the U.S.  House race in  Maine, but  I                                                            
     did  read the  opinion of  the justices,  which  was I  think                                                            
     before the challenge that you're speaking about.                                                                         
           And so it was, I think, a pre -- I don't know if it                                                                
     was pre-enactment,  but it was, I think, the Maine Senate  or                                                            
     the  Maine Legislature  was considering a  repeal of  certain                                                            
     provisions  of the  ranked-choice  and had  a question  about                                                            
     constitutionality.    And the  opinion  was specific  to  the                                                            
     governor's race and the state legislative race.                                                                          
           And the issue that I'm raising here at this table with                                                             
     respect  to this initiative  only applies  to the governor's                                                             
     race  and the lieutenant  governor's race,  and there is  not                                                            
     similar  language about state  legislative races, unlike  the                                                            
     Constitution in Maine.  So there are several distinctions.                                                               
           SENATOR BEGICH:  So, Mr. Chairman.                                                                                 
           CHAIR STEVENS:  Senator Begich.                                                                                    
           SENATOR BEGICH:  I'm not trying to be either                                                                       
     supportive  or in opposition  to this  initiative.  I'm  just                                                            
     trying  to make sure  that we have  the right information  on                                                            
     the  table.  So it  was a 2016 --  2017 decision that  you're                                                            
     talking  about, and  then a 2018  election was  held.   There                                                            
     were  more recent  court decisions.    And I  would be --  it                                                            
     would  be useful  I think  for us  to know --  maybe a  short                                                            
     memo  just describing what  the current state  of the law  in                                                            
     Maine is, if we're going to use that as an example.                                                                      
           And then, secondarily, to be clear, you were pointing                                                              
     out   that  we  don't  say   the  word  "plurality"  in   our                                                            
     Constitution.    And,  in  fact,  we have  had  a  number  of                                                            
     governors  elected with less than  40 percent of the vote  in                                                            
     this   state  or  one  at   least  elected  with  less   than                                                            
     40 percent  and  at  least  three  elected   with  less  than                                                            
     50 percent  of the vote in the state  of Alaska.  So we  have                                                            
     a  tradition of not  taking a majority  vote as the  standard                                                            
     in  the state of  Alaska, as  well.  That  would be  correct,                                                            
     right?                                                                                                                   
           CHAIR STEVENS:  Thank you, Senator.  Then we'll get to                                                             
     Senator von Imhof and then Senator Giessel.                                                                              
           SENATOR VON IMHOF:  So I don't know if you're the                                                                  
     person,  Megan, to  ask or  if it's  Cori,  but I  understand                                                            
     that  there is  a  lawsuit.   It was  taken to  the  superior                                                            
     court.   And I was  curious if there's  an appeal, is what  I                                                            
     understand,  to the Alaska  Supreme Court.   Was part of  the                                                            
     original  court  case,  including  contradiction  of  Article                                                            
     III,  Section 3, on  the candidate with  the greatest  number                                                            
     of votes for governor?  Was that part of the case?                                                                       
           MS. WALLACE:  Through the Chair, Senator von Imhof,                                                                
     no.   The issue  that is currently   pending decision  before                                                            
     the  Alaska  Supreme  Court  is  with  respect  to  a  single                                                            
     subject argument.   That is the sole question that is  before                                                            
     the  Alaska  Supreme  Court  now,  because  it  would  affect                                                            
     certification  and  placement   of that   initiative  on  the                                                            
     ballot.                                                                                                                  
           CHAIR STEVENS:  Thank you, Senator von Imhof.                                                                      
           SENATOR VON IMHOF:  That's too bad.                                                                                
           CHAIR STEVENS:  Comments.  All right.  Senator                                                                     
     Giessel.                                                                                                                 
           PRESIDENT GIESSEL:  Thank you, Mr. Chairman.  Just for                                                             
     clarity,  the  state  of  Maine  only  applies ranked-choice                                                             
     voting   to  its  federal   elections,  and   that  was   the                                                            
     congressional  issue  that   arose.    The  reelection  of  a                                                            
     congressman  in  that election,  he  actually won  the --  he                                                            
     won --  there were four candidates.   He won the most  votes,                                                            
     but  then  it automatically  reverted  to  ranked-choice  and                                                            
     another person won or was declared the winner in that case.                                                              
           Mr. Chairman, there are numerous states between 1912                                                               
     and  1930 that  implemented and  then repealed ranked-choice                                                             
     voting;  those  states  being  Florida,  Indiana,   Maryland,                                                            
     Minnesota,  and  Wisconsin.   North  Carolina  also  used  it                                                            
     between  2006   and  2013  but  repealed  it.    Thank   you,                                                            
     Mr. Chairman.                                                                                                            
           CHAIR STEVENS:  Thank you, Senator.  Senator Coghill.                                                              
           SENATOR COGHILL:  Which brings up an interesting                                                                   
     point:   How to  tell the public  the difference between  the                                                            
     greatest  number  of votes  cast for  an individual  and  the                                                            
     greatest  number of votes counted  for an individual.  And  I                                                            
     think  that -- that's what it really  comes down to.  And  we                                                            
     used  to struggle  with how  to explain  that.   That's  all.                                                            
     And  so as  we move  forward in  this, hopefully  the  clouds                                                            
     will clear on how we do that.                                                                                            
           CHAIR STEVENS:  Thank you.                                                                                         
           SENATOR BEGICH:  Can I ask --                                                                                      
           CHAIR STEVENS:  Yes, Senator Begich.                                                                               
           SENATOR BEGICH:  Just a question of whether an                                                                     
     analysis  has been  done  by Leg.  Legal.   My party  is  the                                                            
     minority  party  in  the state  of  Alaska at  present.    It                                                            
     hasn't  always been,  but it is  at present.   And I've  been                                                            
     curious  as  to whether  or not  Leg.  Legal or  anyone  that                                                            
     you're aware  of has done any analysis to identify whether  a                                                            
     process  that leads to ranked-choice  voting, where you  have                                                            
     ranked-choice  voting would lead to the permanent  assignment                                                            
     of  my party  into  the minority.   Is  that -- any  kind  of                                                            
     analysis  been done, given  that the state  has generally  in                                                            
     both  statewide elections and in --  if you add up the  total                                                            
     of House  seats and Senate seats, and, you know, my party  is                                                            
     always  in the 43rd or -4th  percentile, but the other  party                                                            
     is  always in  the 48th to  49th percentile  overall.   Would                                                            
     this  permanently relegate  my party to  the minority  status                                                            
     in the state?   Has that analysis been done, or do you  know,                                                            
     or does anybody know?                                                                                                    
           MR. KLEIN:  I don't know --                                                                                        
           CHAIR STEVENS:  And identify for the record, please,                                                               
     just --                                                                                                                  
           MR. KLEIN:  Excuse me.  Noah Klein --                                                                              
           CHAIR STEVENS:  Thank you.                                                                                         
           MR. KLEIN:  -- Legislative Legal.  Through the Chair,                                                              
     Senator  Begich,  I don't  know  if that  analysis  has  been                                                            
     done.   I have not conducted  that analysis.  And I'll  leave                                                            
     it at that.                                                                                                              
           MS. WALLACE:  For the record, Megan Wallace.  I will                                                               
     echo  Mr. Klein's comments.   I'm not  aware that we've  done                                                            
     any  such analysis,  but we're  happy  to look  at the  issue                                                            
     upon request.                                                                                                            
           CHAIR STEVENS:  Thank you.  No further questions.                                                                  
     Please continue.                                                                                                         
           MS. WALLACE:  The only other comment that I'll make                                                                
     with  respect to the issue  that's raised under Article  III,                                                            
     Section  3 is that the opinion  with respect to the  language                                                            
     of the  Alaska Constitution equating a plurality requirement                                                             
     is in  part of our analysis of the Constitutional  Convention                                                            
     history,  and there were some  comments and some debate  over                                                            
     that provision.                                                                                                          
           And there were specific statements that were made with                                                             
     respect  to  requiring  a  majority  of  the  votes  cast  to                                                            
     require election  of the governor.  And that appears  to have                                                            
     been rejected explicitly by the Convention members.                                                                      
           And so, therefore, it's our opinion that the greatest                                                              
     number of  votes does equate to plurality, but it is an  open                                                            
     question.   The Alaska Supreme Court has never considered  it                                                            
     and could  be a question that is raised with respect  to this                                                            
     initiative.                                                                                                              
           Other legal issues that we've identified is the                                                                    
     elimination  of  party primaries,  and the  establishment  of                                                            
     open  primaries  could  potentially   raise  an  issue  under                                                            
     freedom  of association rights of  political parties.   There                                                            
     have  been several  U.S. Supreme  Court decisions  that  have                                                            
     considered a blanket primary.                                                                                            
           Specifically with respect to California, California                                                                
     Democratic  Party vs. Jones,  which was  a 2000 U.S.  Supreme                                                            
     Court  decision,  it  looked  at and  invalidated  a  blanket                                                            
     primary in California.                                                                                                   
           About eight years later, the U.S. Supreme Court, in                                                                
     Washington   State  Grange,  considered   an  open   primary,                                                            
     similar  to the  one proposed  in this  initiative, and  held                                                            
     that  it  did not  severely  burden a  party's associational                                                             
     rights.  I raise that just as a potential issue.                                                                         
           It's our opinion that because the initiative language                                                              
     appears  to  be  more  comparable  to  the  Washington  state                                                            
     language,  that the  likelihood that the  U.S. Supreme  Court                                                            
     would  find  that  it  severely  burdens  the  associational                                                             
     rights  is unlikely, but  the Alaska Supreme  Court has  held                                                            
     that   the  Alaska   Constitution  is   more  protective   of                                                            
     political  parties' associational interests than the  federal                                                            
     Constitution.   So it's difficult  to predict how the  Alaska                                                            
     Supreme Court may weigh in on that issue if challenged.                                                                  
           And, finally, the disclosure requirements for the true                                                             
     source  or  dark  money  political  contributions   have  the                                                            
     potential  to  raise a  free  speech issue  under  the  First                                                            
     Amendment  of the United States  Constitution and Article  I,                                                            
     Section 5 of the Alaska Constitution.                                                                                    
           And, again, it's difficult to predict how the Alaska                                                               
     Supreme  Court might rule on this  issue.  As folks are  well                                                            
     aware,  you  know, the  Citizens  United U.S.  Supreme  Court                                                            
     case would  be, you know, relevant to that discussion.   But,                                                            
     again, it's  just an issue that we've identified and  take no                                                            
     opinion  as to  the likelihood  of success  of  any of  those                                                            
     challenges.                                                                                                              
           CHAIR STEVENS:  Senator Coghill.                                                                                   
           SENATOR COGHILL:  Just on that point, would the                                                                    
     sponsor's  intent  have any  weight if  the voters  put  this                                                            
     into  law,  the intent  in here  is  to challenge  that  U.S.                                                            
     Supreme  Court case  basically.   So does  that intent  carry                                                            
     any  weight with  it when it  comes to  adjudication of  this                                                            
     particular issue?                                                                                                        
           MS. WALLACE:  Through the Chair, Senator Coghill, when                                                             
     the Alaska  Supreme Court is weighing constitutional  issues,                                                            
     the sponsors'  intent is not usually a relevant part  of that                                                            
     discussion.    They  generally look  to  the  meaning --  the                                                            
     plain  meaning  of  the  Constitution  and,  you  know,  past                                                            
     precedent  in evaluating whether  or not  the statute or  law                                                            
     before them presents any constitutional issues.                                                                          
           SENATOR COGHILL:  Mr. Chairman, I would just think                                                                 
     that   if  people   reading  this  are   motivated  by   that                                                            
     particular  issue, that could be unfortunate that they  think                                                            
     what  they're doing  has weight,  and  it may  very well  not                                                            
     have weight, just for what it's worth.                                                                                   
           CHAIR STEVENS:  Thank you.  Please continue.                                                                       
           MS. WALLACE:  Those are generally the legal issues                                                                 
     that  we  flag.    There  may  be  other  minor   issues,  or                                                            
     certainly  our testimony  isn't to  encompass every  possible                                                            
     legal  challenge  that  might  exist.    But  those  are  our                                                            
     high-level  comments on  the initiative, and  we're happy  to                                                            
     take any questions.                                                                                                      
           CHAIR STEVENS:  Thank you. Senator Begich.                                                                         
           SENATOR BEGICH:  Thank you, Mr. Chairman.  This may                                                                
     also  be   one  for  the  director,  but  one  of  my   staff                                                            
     assistants  has pointed out  that under  this process of  the                                                            
     ranked-choice  voting, wouldn't the ranked-choice count  have                                                            
     to wait  until the last absentee ballot was received  because                                                            
     you  wouldn't know  the actual  count until then?   Have  you                                                            
     given  that  consideration  how  that  affects  the  absentee                                                            
     ballot  process?  Because we  receive ballots from  overseas,                                                            
     et cetera,  for up to 15 days.   And would that then be  when                                                            
     the  clock begins to run for  determining when you  eliminate                                                            
     the  lowest candidate?  I'm  just curious if you've  analyzed                                                            
     that at all.                                                                                                             
           MS. WALLACE:  Through the Chair, Senator Begich, we                                                                
     have  not analyzed that.   I suspect  that if the initiative                                                             
     were to  pass, that would be a question that the Division  of                                                            
     Elections  is  going to  have  to determine,  you  know,  the                                                            
     manner and  way it's going to carry out at the elections  and                                                            
     counting the absentee ballots.                                                                                           
           CHAIR STEVENS:  Very good.  And we're going to talk to                                                             
     Ms. Fenumiai  about that.   Senator Coghill,  did you have  a                                                            
     comment?                                                                                                                 
           SENATOR COGHILL:  Yes.  So three new definitions in                                                                
     here,  new concepts  in the  reporting mechanisms  with  dark                                                            
     money,  true money,  and out-of-state  I think.   I was  just                                                            
     looking  for --  I think  it's Section  17.   Dark  money  is                                                            
     Section  17; true  source is Section  18; and outside-funded                                                             
       entity is Section 19.  Those are new concepts in law.                                                                  
           The question that we're going to have to come up with                                                              
     is  if they're new  concepts and we  are putting them  before                                                            
     people, how  do we have a comparison between what is now  and                                                            
     what  these new  concepts are  so they  know  the context  in                                                            
     which they're  voting?  Maybe that's not a question for  you,                                                            
     but that's  a question that arises from me when we put  a new                                                            
     concept in law.                                                                                                          
           And so maybe the question would be then, when you're                                                               
     putting a  new concept in and taking old concepts out,  is it                                                            
     reasonable  to expect the  general population  to be able  to                                                            
     read these statutes in that total?                                                                                       
           I mean, I look at the repealer section.  I'm looking                                                               
     at  these new  concepts, and I'm  thinking how  in the  world                                                            
     are  you going to  get somebody to  read these many  sections                                                            
     of  law   and  get  the  concepts  of  these  new   reporting                                                            
     mechanisms?  You can put a general comment on there.                                                                     
           So with the new concepts, I'm just trying to get my                                                                
     feet  under me  on how  do I  describe them  outside of  just                                                            
     what  a  definition is?   But  the  definition then  is  shot                                                            
     through  a whole  section of law.   So  do we owe  it to  the                                                            
     public  to  describe  these new  concepts  as  new  concepts?                                                            
     Maybe that's the best way of saying it.                                                                                  
           MS. WALLACE:  Through the Chair, Senator Coghill,                                                                  
     that's  a difficult  question.   I'm not sure  that they  are                                                            
     necessarily  legal issues that arise.  The issue that  you're                                                            
     describing  is often an  issue that comes  up.  It's  similar                                                            
     to  the oil tax initiative.   It's very complicated  material                                                            
     to describe  to the voters, and  I don't have any comment  on                                                            
     the best way to do that.                                                                                                 
           SENATOR COGHILL:  Yes.  I'm sorry to ask our legal                                                                 
     team that,  but it's a question  that plagues me on how do  I                                                            
     describe  this to the general  population?  I'm just  looking                                                            
     for  any help I  can get on  that.  Sorry.   Very  important,                                                            
     Megan.                                                                                                                   
           CHAIR STEVENS:  So I'm going to ask Senator Giessel to                                                             
     speak  in a  moment.  But  we have  a time  issue because  we                                                            
     have  to be on floor,  Senate on the  floor at 11:00,  right?                                                            
     So  I want to  make sure  we have  a chance to  speak to  the                                                            
     Director of Division of Elections.  Senator Giessel.                                                                     
           PRESIDENT GIESSEL:  Mr. Chairman, my question to Megan                                                             
     has  to do with the disenfranchisement  of voters.  So  there                                                            
     was a  2015 published study by two researchers on  elections.                                                            
     And  they  found,  in  examining  four  elections  that  used                                                            
     ranked-choice  voting, that anywhere  from 9.7 to  27 percent                                                            
     of  the  ballots were  discarded  through  the ranked-choice                                                             
     voting  process.  So this is very  concerning to me.  Take  a                                                            
     middle  number there  between 10  and 27  percent, maybe  15,                                                            
     20 percent  of  Alaska  ballots  discarded,   that  would  be                                                            
     25,000 ballots discarded.                                                                                                
           And my concern is, as I look at this initiative and                                                                
     the  instructions  on  page  66  -- which   the  Division  of                                                            
     Elections  is  supposed to  explain  to  people, put  in  the                                                            
     ballot.   My concern  is that  the people that  will be  most                                                            
     likely  disfranchised will  be the  elderly -- who've  always                                                            
     voted   the  normal  way  and   now  are  confused  by   this                                                            
     ranked-choice  voting -- and  uninformed  voters, people  who                                                            
     may  have  limited reading  capabilities,  but the  fact  is,                                                            
     disenfranchising  voters  when  we  have  a  very  low  voter                                                            
     turnout  to  begin with.   Do  you  have any  comments  about                                                            
     that?                                                                                                                    
           MS. WALLACE:  Through the Chair, Senator Giessel, you                                                              
     raise  another issue that could  potentially be a subject  of                                                            
     challenge  to the initiative  if it were to  become law.   It                                                            
     is  not anything that  this state has  looked at or  examined                                                            
     before,  and so it would  be a case of  first impression.   I                                                            
     don't  have any specific comment  of the way that the  Alaska                                                            
     Supreme  Court  is  likely to  come  out on  that,  but  it's                                                            
     certainly  another issue  that may  come up if  this were  to                                                            
     become law and it's challenged.                                                                                          
           PRESIDENT GIESSEL:  Thank you, Mr. Chairman.                                                                       
           CHAIR STEVENS:  I understand.  Thank you.  So we're to                                                             
     move  on  shortly  here  to  the  Director   of  Division  of                                                            
     Elections.   Any further  comments, concluding comments  from                                                            
     our attorneys?                                                                                                           
           MS. WALLACE:  Thank you.                                                                                           
           CHAIR STEVENS:  Okay.  Thank you very much.  I                                                                     
     appreciate  your time, Mr. Klein  and Ms. Wallace. Would  the                                                            
     Director  of the Division of Elections come forward,  please,                                                            
     Gail  Fenumiai.  Pleased  to have  you with us.   Pleased  to                                                            
     have you back in the job.                                                                                                
           MS. FENUMIAI:  Good morning.  Thank you, Mr. Chairman,                                                             
     and  members of the  committee.  Gail  Fenumiai, Director  of                                                            
     the Division of Elections.                                                                                               
           I was asked to give a brief summary of the statement                                                               
     of cost  for implementing this initiative.  And the  division                                                            
     has expressed  an estimated statement of cost of $800,593  to                                                            
     implement  this initiative.   That  includes  the cost  of --                                                            
     that  we incurred  for processing  the initiative,  reviewing                                                            
     those signatures that were submitted.                                                                                    
           It also includes the cost of a voter education, which                                                              
     would  be required as  a result of  the initiative, that  the                                                            
     division  would  be responsible  for  educating voters.    We                                                            
     estimated that cost to be about $150,000.                                                                                
           There are requirements for this initiative to be                                                                   
     translated  into multiple  languages that  we're required  to                                                            
     do  according  to the  Toyukak  settlement,  as well  as  the                                                            
     languages  that are  found under  Section 203  of the  Voting                                                            
     Rights Act.  That estimate is about $57,400.                                                                             
           The biggest chunk of this is, in order to do                                                                       
     ranked-choice  voting, ballots have  to have a digital  image                                                            
     captured.   And in order to  capture a digital image, all  of                                                            
     our  hand-count precincts --  which total  137 -- would  need                                                            
     to  be outfitted with  an ImageCast  Precinct Scanner,  which                                                            
     is our new equipment that we purchased.                                                                                  
           And then following that, the images would then be                                                                  
     returned   to  the  division  and  uploaded,  and  then   the                                                            
     ranked-choice  voting  process would  start at  the  precinct                                                            
     level.   Again,  we  would have  to wait  until --  it is  my                                                            
     understanding  that we  would have  to wait  until the  final                                                            
     deadline  for all ballots that  are legally acceptable to  be                                                            
     received,  reviewed, and counted before the absentee part  of                                                            
     this whole process could start.                                                                                          
           It was not evident  to the division,  when we did  this                                                            
     estimate  of cost, that there is  software that is needed  to                                                            
     accommodate   this  process,   and  that   is  approximately                                                             
     $350,000  in addition  to what  the division  presented.   We                                                            
     were  told that, yes, our new  system can do this but  didn't                                                            
     dig  deep  enough to  find  out that  there  were  additional                                                            
     costs  associated  with  that.    So  it's  --  that  is  the                                                            
     division's estimated cost.                                                                                               
           And then  the  cost  statement  also  has  $103,000  in                                                            
     estimated  costs from the  Alaska Public Offices Commission,                                                             
     adding   an   Associate   Attorney  I   position   and   some                                                            
     programming  hours  that they  would  need  to do  for  their                                                            
     filing system.                                                                                                           
           CHAIR STEVENS:  Do you have a total then for us?                                                                   
           MS. FENUMIAI:    The  total  is  $906,943  without  the                                                            
     additional  $350,000 for the  software, because without  that                                                            
     software, you can't do it.                                                                                               
           CHAIR STEVENS:  And  the APOC figure, you're  including                                                            
     that as well?                                                                                                            
           MS. FENUMIAI:  Pardon me?                                                                                          
           CHAIR STEVENS:  The APOC --                                                                                        
           MS. FENUMIAI:  APOC is included in that, yes.                                                                      
           CHAIR STEVENS:   $960,000  plus $350,000  for  software                                                            
     potentially?                                                                                                             
           MS. FENUMIAI:  Uh-huh.                                                                                             
           CHAIR STEVENS:  Thank you.  Senator Coghill.                                                                       
           SENATOR COGHILL:  That was  my question.  It's about  a                                                            
     million two then?                                                                                                        
           MS. FENUMIAI:  Approximately 1.2 million dollars, yes.                                                             
           CHAIR STEVENS:   Thank  you  very much  for  addressing                                                            
     those  issues.  Do  you have some  general comments you  care                                                            
     to make before we go into questions.                                                                                     
           MS. FENUMIAI:  I don't  at this time.  It's  definitely                                                            
     a complex  procedure, but if it's enacted, the division  will                                                            
     do the best they can to follow the laws of the state.                                                                    
           CHAIR STEVENS:  Certainly.  Then Senator von Imhof  and                                                            
     then Senator Begich.                                                                                                     
           SENATOR VON  IMHOF:    Thank  you.   So  building  upon                                                            
     Senator  Giessel's comments  earlier, if a  voter only  votes                                                            
     for  one  candidate  and  that candidate  does  not  get  the                                                            
     majority  of votes  in  the general  election and  then  they                                                            
     have  it go through  the re-scanning of  the ballots to  find                                                            
     the  next highest  votes, does  that particular  ballot  that                                                            
     only  has one vote,  does that get  discarded?  What  happens                                                            
     to  that  ballot  because they  haven't  ranked  anybody  for                                                            
     whatever reason?                                                                                                         
           MS. FENUMIAI:   Through the Chair,  Senator von  Imhof,                                                            
     it's  my  understanding  that  if  there  are  no additional                                                             
     rankings  on that ballot and that first-choice candidate  did                                                            
     not  receive the  majority  of votes,  then that  ballot  for                                                            
     that  specific  race  would  no longer  be  included  in  any                                                            
     future tabulations.                                                                                                      
           SENATOR VON IMHOF:   So that voter generally --  follow                                                            
     up, please?                                                                                                              
           CHAIR STEVENS:  Yes, please.                                                                                       
           SENATOR VON  IMHOF:   So  that  voter generally  is  no                                                            
     longer  represented in that race?   That vote just no  longer                                                            
     counts?                                                                                                                  
           MS. FENUMIAI:   Through the Chair,  Senator von  Imhof,                                                            
     their  first vote  would be the  only vote  that would  count                                                            
     for that ballot, yes.                                                                                                    
           SENATOR VON IMHOF:  Thank you.                                                                                     
           CHAIR STEVENS:   Thank you.   Senator  Begich, did  you                                                            
     have your hand up?                                                                                                       
           SENATOR BEGICH:  Yes.                                                                                              
           CHAIR STEVENS:  And then we'll go to Senator Coghill.                                                              
           SENATOR BEGICH:  So a couple of questions.  You                                                                    
     mentioned  the 137 precincts that have to be hand-counted  --                                                            
     so  just  maybe  a  little  more  detail.    I've  got  three                                                            
     questions, Mr. Chairman, if I could.                                                                                     
           CHAIR STEVENS:  Please.                                                                                            
           SENATOR BEGICH:  How do you envision that process?                                                                 
     Perhaps  a little bit more detail  on how you would  envision                                                            
     that  with  the  hand-count  precincts.     You're  taking  a                                                            
     scanner --  which  we're  going  to purchase --  you  take  a                                                            
     photograph, and then how would that work?                                                                                
           MS. FENUMIAI:  Through the Chair, Senator Begich, the                                                              
     new  ImageCast   Precinct  Scanners  we  purchased   actually                                                            
     capture  a digital image  of every ballot  that goes  through                                                            
     the  scanner.  So the  ballot image will  be captured at  the                                                            
     time the ballot goes through the scanner.                                                                                
           And the proposal by the division would be instead of                                                               
     those  precincts   hand-counting  the  ballots,  they   would                                                            
     actually  have  a scanner  where  the  ballots would  be  fed                                                            
     through  like they do  in most of our  urban precincts.   And                                                            
     the  tally  would  be  done by  the  scanner,  and  then  the                                                            
     digital  images would  then  be sent  to the  division to  be                                                            
     used  to further do  the rest of the  tabulations that  would                                                            
     be required by ranked-choice voting.                                                                                     
           SENATOR BEGICH:  Just to follow up on that question.                                                               
     So  we already have  purchased these scanners;  is that  what                                                            
     you're saying?                                                                                                           
           MS. FENUMIAI:  Through the Chair, Senator Begich, we                                                               
     purchased scanners in all but 137 precincts.                                                                             
           SENATOR BEGICH:  Okay.  My second question really kind                                                             
     of looks  at the system we use  now for auditing our  systems                                                            
     and how  we do that.  And  if this initiative became law,  do                                                            
     you  have  the capacity  to  do  audits to  ensure  that  the                                                            
     system would be fair?                                                                                                    
           MS. FENUMIAI:   Through the Chair,  Senator Begich,  we                                                            
     will  have   to  look  at  how  all  of  our  processes   and                                                            
     procedures  are done, and the division  has not done that  at                                                            
     this  point in  time.   We do  have a  very  good process  in                                                            
     place with our current system.                                                                                           
           The law -- the  initiative, as  proposed, does  require                                                            
     that  through  each state  of  the tabulation  process  those                                                            
     results  are to  be posted.   And  then those  results  would                                                            
     then  go through the  same kind of  certification process  by                                                            
     the  state review board I  would imagine post-election,  post                                                            
     all of the tabulation required by ranked-choice voting.                                                                  
           SENATOR BEGICH:   And I think,  Mr. Chairman, you  just                                                            
     answered  the question that was  asked earlier, which is  are                                                            
     the  results posted  as you're going  through the tabulation                                                             
     process?   And you  said the initiative  does speak to  that,                                                            
     and it does do that?                                                                                                     
           MS. FENUMIAI:  Through the Chair, Section 26 I  believe                                                            
     I did mention  that each stage there has to be a certificate                                                             
     provided for each stage of the tabulation process.                                                                       
           SENATOR BEGICH:  And I say that, Mr. Chairman,  because                                                            
     that was  a question Senator von Imhof had brought up,  and I                                                            
     did not know the answer to that.                                                                                         
           And then my last question  is, you know, we still  have                                                            
     provisions  in state law.   I don't know  if it's one of  the                                                            
     ones that  was repealed -- that would be repealed under  this                                                            
     initiative  for hand-recounts  if -- if we  have a situation                                                             
     where  the difference  or the  margin is  within .5  percent.                                                            
     So  how  would  we account  for  recounts  under --  if  this                                                            
     initiative became law?                                                                                                   
           MS. FENUMIAI:  Through  the Chair, Senator Begich,  Are                                                            
     you  referring to  the hand-count  verification process  that                                                            
     takes place following the election or actual recount?                                                                    
           SENATOR  BEGICH:    I'm  actually  referring  to   both                                                            
     processes,  and I'm trying to jam  them into one question  so                                                            
     I  can get  away with  three questions.   But  it's both  the                                                            
     point -- we  have the automatic recount process, but  we also                                                            
     have  the hand  tabulation  to check.   So  how would  we  do                                                            
     those?                                                                                                                   
           MS. FENUMIAI:  Through the Chair, Senator Begich, it's                                                             
     my  assumption  that  the  hand-count  verification   process                                                            
     would  continue  in the  same manner,  and  it would  take  a                                                            
     significantly  longer  period  of time  because  the  initial                                                            
     count  for all first-choice  ballots would  have to be  done,                                                            
     and  then the  second-choice ballots  would have  to be  then                                                            
     sorted  and tabulated, and it would  take a very long  period                                                            
     of time.                                                                                                                 
           SENATOR BEGICH:  Mr. Chairman, this actually brings                                                                
     one follow-up question, if I may?                                                                                        
           CHAIR STEVENS:  Please continue, Senator Begich.                                                                   
           SENATOR BEGICH:  And that would mean do we have to                                                                 
     then  look  at --  would  we  have  to,  if  this initiative                                                             
     passed,   look  at  changing  our  date  for  certifying   an                                                            
     election  to  ensure that  a  sufficient  amount of  time  is                                                            
     available?                                                                                                               
           MS. FENUMIAI:  Through the Chair, Senator Begich, the                                                              
     division  would need  to look  into that  in further  detail.                                                            
     The hand-count  verification process takes place at the  same                                                            
     time  the complete election  certification process is  taking                                                            
     place.                                                                                                                   
           As far as a recount -- you also mentioned a regular                                                                
     recount --  it's  my assumption  that  a recount  would  take                                                            
     place  in  the  same  manner.    All  the  ballots  would  be                                                            
     re-tabulated,  and then the ranked-choice voting tabulations                                                             
     would happen again as part of that recount process.                                                                      
           SENATOR BEGICH:  But that process couldn't begin until                                                             
     after  the last absentee ballot  was received?  You  couldn't                                                            
     even begin that process?                                                                                                 
           MS. FENUMIAI:  Through the Chair, correct.  I do not                                                               
     have  an  estimation as  to  how long  the  whole tabulation                                                             
     process takes  to get through all the ranked-choice votings.                                                             
           SENATOR BEGICH:  Thank you, Mr. Chairman.                                                                          
           CHAIR STEVENS:  Thank you, Senator Begich.  Senator                                                                
     Coghill and then the Senator von Imhof.                                                                                  
           SENATOR COGHILL:  He got most of my question.  Then                                                                
     it's  just a  matter of  we have  under this  law, should  it                                                            
     pass,  your chain of custody would  be fairly clear?   You're                                                            
     going  to  have  an  electronic  transmission,  but  you  can                                                            
     verify that with the actual ballots?                                                                                     
           MS. FENUMIAI:  Through the Chair, Senator Coghill,                                                                 
     that's  correct.    We have  not  changed the  use  of  paper                                                            
     ballots in the state of Alaska.                                                                                          
           SENATOR COGHILL:  All right.  Thank you.                                                                           
           CHAIR STEVENS:  Thank you.  Senator von Imhof.                                                                     
           SENATOR VON IMHOF:  So you just made the comment                                                                   
     "significant   longer  period  of   time."    And  I'm   very                                                            
     concerned  about that  because if  there's  going to  need at                                                            
     each  stage completion  of the ballot  count, a certificate,                                                             
     what  if  there's going  to be  a  challenge?   Then  there's                                                            
     going  to need to be an audit,  and then we have to wait  for                                                            
     each  stage.    And  so  if it  goes  through  two  or  three                                                            
     processes, this could take weeks, if not months.                                                                         
           MS. FENUMIAI:  Through the Chair, Senator von Imhof,                                                               
     it's  my  assumptions  --  and, again,  these  are  all  just                                                            
     assumptions  because we have not  dug deep into the weeds  on                                                            
     how  this  would  actually  be  implemented.    But  it's  my                                                            
     assumption   those  pre-calculations  of  the  ranked-choice                                                             
     voting are  all part of the unofficial results, and then  the                                                            
     certification  of that results happens when the state  review                                                            
     board   convenes   approximately   15  days   following   the                                                            
     election.   They  start working  on the  precinct  materials.                                                            
     So  it's  my  assumption we  could  start  the ranked-choice                                                             
     voting  tabulation at  the precinct  level and  then go  into                                                            
     absentee  districts  once all  the  final ballots  have  been                                                            
     received.                                                                                                                
           CHAIR STEVENS:  Thank you.  Yes, further comments?                                                                 
     Senator von Imhof.                                                                                                       
           SENATOR VON IMHOF:  How I read Section 26 is that you                                                              
     complete  the ballot count and  there must be a certificate.                                                             
     Then  if there is going to  be then information disseminated                                                             
     to  the public  after each  stage, then  I  would think  that                                                            
     there  needs to  be an allowance  of a  challenge after  each                                                            
     stage,  each  certificate,  each  trial run  of  the  ballots                                                            
     again  if there is  continually no majority  winner.  And  so                                                            
     if it's  just bam, bam, bam, bam, here's the end, here's  the                                                            
     end,  where is  there a point  that someone  can say,  "Wait,                                                            
     wait,  wait, I don't  like how you did  that second or  third                                                            
     count"?                                                                                                                  
           MS. FENUMIAI:  Through the Chair, Senator von Imhof,                                                               
     currently     the     challenges     happen    post-election                                                             
     certification,  and  then a  challenge  is requested  of  the                                                            
     division  to conduct a recount.   All results are  considered                                                            
     unofficial  until the  state review  board  goes through  and                                                            
     does  their certification of the  election.  So I just  don't                                                            
     have a good answer for you at this point in time.                                                                        
           CHAIR STEVENS:  Thank you, Director Fenumiai.  I                                                                   
     appreciate  your knowledge and your  experience.  Thanks  for                                                            
     being  with us.  I have an  announcement that I need to  make                                                            
     before  we  adjourn.   We're  forming an  emergency  response                                                            
     preparedness  subcommittee appointing the following  members:                                                            
     Myself,  Stevens, Chair;  Senate President  Giessel;  Speaker                                                            
     Edgmon;   Senator  Coghill;   Representative  Kopp;   Senator                                                            
     Begich;  Representative Pruitt.   And  the subcommittee  will                                                            
      be meeting in the very near future, and I'll be sure to                                                                 
     keep the council informed of what happens.                                                                               
                                                                                                                              
                                                                                                                              
                                                                                                                                
III. ADJOURN                                                                                                                  
                                                                                                                                
                                                                                                                              
           CHAIR STEVENS said if there is nothing further to come                                                             
     before the Council, we are adjourned.                                                                                    
                                                                                                                              
   10:50:49 AM                                                                                                              

Document Name Date/Time Subjects
3.10.20 Leg. Council Meeting Packet.pdf JLEC 3/10/2020 9:00:00 AM
3.10.20 Leg. Council Meeting Packet