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30th Legislature(2017-2018)

Bill Text 30th Legislature

00 Enrolled HB 44                                                                                                          
01 Relating to campaign expenditures and contributions; relating to the per diem of members of                             
02 the legislature; relating to limiting gifts by lobbyists to legislators and legislative employees;                      
03 requiring a legislator to abstain from taking or withholding official action or exerting official                       
04 influence that could benefit or harm an immediate family member or certain employers;                                   
05 requiring a legislator to request to be excused from voting in an instance where the legislator                         
06 may have a financial conflict of interest; and providing for an effective date.                                         
07                           _______________                                                                               
08    * Section 1. AS 15.13.068 is amended to read:                                                                        
09            Sec. 15.13.068. Expenditures and contributions by foreign-influenced                                       
10 corporations and foreign nationals. (a) A foreign-influenced corporation or                                         
11 foreign national may not, directly or indirectly, in connection with an election under                                  
12 this chapter, make a contribution or expenditure or make an express or implied                                          
01       promise to make a contribution or expenditure.                                                                    
02            (b)  The provisions of this section prohibit a foreign-influenced corporation                              
03       or foreign national from making a contribution or expenditure in connection with a                              
04       state election only to the extent                                                                                 
05                 (1)  [THAT] federal law prohibits the foreign-influenced corporation                                  
06       or [A] foreign national from making a contribution or expenditure in connection with                            
07       a state election; and                                                                                             
08                 (2)  permitted by federal law.                                                                          
09            (c)  In this section,                                                                                        
10 (1)  "corporation" means any corporation, company, limited                                                            
11 liability company, limited partnership, business trust, business association, or                                      
12       other similar entity;                                                                                           
13 (2)  "covered expenditure" means an independent expenditure,                                                          
14 electioneering expenditure, or express communication, but does not include a                                          
15 media communication, membership communication, shareholder                                                            
16       communication, or expenditure as defined in AS 15.13.400;                                                       
17 (3)  "election" means any state or local election, including a special                                                
18       or runoff election;                                                                                             
19 (4)  "electioneering expenditure" means a purchase or transfer of,                                                    
20 or a promise or agreement to purchase or transfer, money or a thing of value to                                       
21       enable or facilitate the broadcast or other distribution of a communication that                                
22 (A)  clearly refers to a candidate for an election under (B) of                                                       
23            this paragraph;                                                                                            
24 (B)  occurs in a 60-day period immediately preceding a                                                                
25 general, special, or runoff election or within the 30 days preceding a                                                
26 primary or preference election, or a convention or caucus of a political                                              
27 party legally permitted to nominate a candidate for an election under this                                            
28            chapter; and                                                                                               
29 (C)  may be received by 500 or more persons in the                                                                    
30            jurisdiction the candidate seeks to represent;                                                             
31 (5)  "foreign-influenced corporation" means a corporation for                                                         
01       which                                                                                                           
02 (A)  a foreign national or foreign owner holds, owns,                                                                 
03 controls, or has direct or indirect beneficial ownership of equity or voting                                          
04 shares in an amount equal to or greater than five percent of all corporate                                            
05            voting shares outstanding or all corporate equity;                                                         
06 (B)  two or more foreign nationals or foreign owners                                                                  
07 combined hold, own, control, or have direct or indirect beneficial                                                    
08 ownership of equity or voting shares in an amount equal to or greater                                                 
09 than 20 percent of all corporate voting shares outstanding or all corporate                                           
10            equity; or                                                                                                 
11 (C)  a foreign national or foreign owner participates directly                                                        
12 or indirectly in decisions relating to covered expenditures or                                                        
13            contributions;                                                                                             
14                 (6)  "foreign national" means                                                                       
15 (A) [INCLUDES (1)]  an individual who is not a United States                                                          
16 citizen or lawfully admitted for permanent residence under 8 U.S.C.                                                     
17            1101(a)(20);                                                                                                 
18 (B) [(2)]  a foreign government, every political subdivision of a                                                     
19 foreign government, every official, agent, or representative of a foreign                                               
20 government, and every agency, corporation, or instrumentality of the foreign                                            
21            government or of a political subdivision of a foreign government;                                            
22 (C) [(3)]  a person outside of the United States, unless it is                                                        
23 established that the person is an individual and a citizen of and domiciled in                                          
24 the United States, or that the person is not an individual and is organized under                                       
25 or created by the laws of the United States or of any state or other place subject                                      
26 to the jurisdiction of the United States and has its principal place of business in                                     
27            the United States; or                                                                                        
28 (D) [(4)]  a partnership, association, corporation, organization,                                                     
29 or other combination of persons organized under the laws of or having its                                               
30            principal place of business in a foreign country;                                                          
31 (7)  "foreign owner" means a person for whom a foreign national                                                       
01 holds, owns, controls, or otherwise has directly or indirectly acquired beneficial                                    
02 ownership of equity or voting shares in a corporation in an amount equal to or                                        
03 greater than 50 percent of all corporate voting shares outstanding or all                                             
04       corporate equity;                                                                                               
05                 (8)  "media communication" means a communication                                                      
06 (A)  in a news story, commentary, or editorial distributed                                                            
07 through the facilities of a radio station, television station, cable television                                       
08 system, or satellite system, newspaper, magazine, or other periodical                                                 
09 publication, unless the facilities are owned or controlled by a political                                             
10            party, political committee, or candidate; or                                                               
11 (B)  that constitutes a public debate or forum that includes                                                          
12 at least two opposing candidates for an office or one advocate and one                                                
13 opponent of an issue, or that solely promotes such a debate or forum and                                              
14 is made by or on behalf of the person sponsoring the debate or forum,                                                 
15            provided that the staging organization                                                                     
16 (i)  is a charitable organization that does not make                                                                  
17 other covered expenditures and does not otherwise support or                                                          
18 oppose any political candidate, political party, ballot propositions                                                  
19 or questions, or initiative proposals or is a newspaper, radio                                                        
20 station, television station, cable television system, or satellite                                                    
21 system, newspaper, magazine, or other periodical publication, or                                                      
22                 other recognized news medium; and                                                                     
23 (ii)  does not structure the debate to promote or                                                                     
24                 advance one candidate or issue position over another;                                                 
25 (9)  "membership communication" means a direct and private                                                            
26 communication between a membership organization or union and one or more                                              
27       members of the organization or union, if the membership organization or union                                   
28 (A)  has members with authority to administer the                                                                     
29            membership organization or union;                                                                          
30 (B)  expressly states the qualifications and requirements for                                                         
31 membership in articles, bylaws, or other formal organizational                                                        
01            documents; and                                                                                             
02                      (C)  is not organized primarily for the purpose of making                                        
03            covered expenditures or influencing elections, ballot propositions, ballot                                 
04            questions, or ballot initiative proposals;                                                                 
05                 (10)  "shareholder communication" means a direct and private                                          
06       communication between a corporation and shareholders, executives, or                                            
07       administrative personnel of the corporation.                                                                    
08    * Sec. 2. AS 15.13.068 is amended by adding new subsections to read:                                                 
09            (d)  Notwithstanding (a) of this section, a foreign-influenced corporation may                               
10 make a contribution to a person who makes covered expenditures or contributions if                                      
11 that person segregates contributions from foreign nationals and foreign-influenced                                      
12 corporations into a separate bank account that may not be used, directly or indirectly,                                 
13       to finance covered expenditures or contributions.                                                                 
14 (e)  In this section, when determining the percentage of a corporation's shares                                         
15       outstanding or equity owned by two or more foreign nationals,                                                     
16 (1)  ownership in a mutual or pension fund that holds securities is not a                                               
17 form of ownership or control in such securities unless the foreign national or foreign                                  
18       owner can exercise control or participate in the management of the fund;                                          
19 (2)  for privately held corporations, a corporation shall determine its                                                 
20 percentage of foreign ownership at the time it obligates funds to make covered                                          
21       expenditures or contributions;                                                                                    
22 (3)  a publicly held corporation shall determine whether it is a foreign-                                               
23 influenced corporation based on its aggregate foreign ownership percentage at the                                       
24 close of trading on the last business day of the calendar quarter preceding the date the                                
25 corporation makes or obligates funds to make a covered expenditure or contribution,                                     
26 unless the corporation has actual knowledge of its foreign ownership percentage at the                                  
27 time it makes or becomes obligated to make the covered expenditure or contribution;                                     
28 for the purposes of this paragraph, the corporation shall rely on facts, including                                      
29       information                                                                                                       
30                      (A)  in the corporation's shareholder register;                                                    
31 (B)  in possession of the United States Securities and Exchange                                                         
01            Commission or another governmental agency that is available to the general                                   
02            public;                                                                                                      
03                      (C)  known to the corporation as a result of litigation, financing                                 
04            transactions, or proxies voted at annual or other meetings; and                                              
05                      (D)  known to the corporation from another source.                                                 
06    * Sec. 3. AS 24.10.120(a) is amended to read:                                                                        
07 (a)  Salaries, per diem, travel expenses, relocation expenses, and additional                                           
08 allowances for members of the legislature shall be paid as approved by the legislative                                  
09 fiscal officer. The legislative fiscal officer may not approve payment for a                                          
10 member's travel outside the United States unless the member first provides a                                          
11 report establishing that the travel has a legislative purpose. The legislative fiscal                                 
12 officer shall provide a form on which a report under this subsection must be                                          
13       submitted.                                                                                                      
14    * Sec. 4. AS 24.10.130(b) is amended to read:                                                                        
15 (b)  Legislators and officers and employees of the legislative branch of                                                
16 government may be entitled to a per diem allowance; however, if a bill that fully                                     
17 funds an operating budget has not, within the first 121 consecutive days of a                                         
18 regular legislative session, including the day the legislature first convenes in that                                 
19 regular session, been passed by the legislature, a member of the legislature is not                                   
20 entitled to a daily per diem allowance for a day the legislature is in session after                                  
21 that 121-day period until the first day after a bill that fully funds an operating                                    
22 budget is passed by the legislature or the first day of the next regular legislative                                  
23 session, whichever occurs earlier. In this subsection, "passed by the legislature"                                    
24       has the meaning given in AS 01.10.070.                                                                          
25    * Sec. 5. AS 24.10.130(c) is amended to read:                                                                        
26 (c)  The Alaska Legislative Council shall adopt a policy in accordance with (b)                                       
27 of this section and AS 39.23.540(d) regarding reimbursement for moving expenses                                       
28 [APPLICABLE TO ALL LEGISLATORS] and payment of a [AN APPLICABLE]                                                      
29 per diem allowance [POLICY]. The policy must set conditions for the reimbursement                                       
30 for moving expenses and payment of per diem and prescribe the amounts of                                                
31 reimbursement adapted to the special needs of the legislative branch as determined by                                   
01       the council.                                                                                                      
02    * Sec. 6. AS 24.45.121(a) is amended to read:                                                                        
03            (a)  A lobbyist may not                                                                                      
04                 (1)  engage in any activity as a lobbyist before registering under                                      
05       AS 24.45.041;                                                                                                     
06                 (2)  do anything with the intent of placing a public official under                                     
07       personal obligation to the lobbyist or to the lobbyist's employer;                                                
08                 (3)  intentionally deceive or attempt to deceive any public official with                               
09       regard to any material fact pertinent to pending or proposed legislative or                                       
10       administrative action;                                                                                            
11 (4)  cause or influence the introduction of a legislative measure solely                                                
12       for the purpose of thereafter being employed to secure its passage or its defeat;                                 
13 (5)  cause a communication to be sent to a public official in the name of                                               
14 any fictitious person or in the name of any real person, except with the consent of that                                
15       person;                                                                                                           
16 (6)  accept or agree to accept any payment in any way contingent upon                                                   
17 the defeat, enactment, or outcome of any proposed legislative or administrative action;                                 
18 (7)  serve as a member of a state board or commission, if the lobbyist's                                                
19 employer may receive direct economic benefit from a decision of that board or                                           
20       commission;                                                                                                       
21 (8)  serve as a campaign manager or director, serve as a campaign                                                       
22 treasurer or deputy campaign treasurer on a finance or fund-raising committee, host a                                   
23 fund-raising event, directly or indirectly collect contributions for, or deliver                                        
24 contributions to, a candidate, or otherwise engage in the fund-raising activity of a                                    
25 legislative campaign or campaign for governor or lieutenant governor if the lobbyist                                    
26 has registered, or is required to register, as a lobbyist under this chapter, during the                                
27 calendar year; this paragraph does not apply to a representational lobbyist as defined                                  
28 in the regulations of the Alaska Public Offices Commission, and does not prohibit a                                     
29 lobbyist from making personal contributions to a candidate as authorized by AS 15.13                                    
30       or personally advocating on behalf of a candidate;                                                                
31 (9)  offer, solicit, initiate, facilitate, or provide to or on behalf of a                                              
01       person covered by AS 24.60 a gift, other than food or a nonalcoholic beverage for                               
02       immediate consumption under AS 24.60.080(a)(2)(A), or a compassionate gift under                                
03       AS 24.60.075; however, this paragraph does not prohibit a lobbyist from providing                                 
04                      (A)  a gift to a legislator or legislative employee who is a                                       
05            member of the lobbyist's immediate family as defined in AS 24.60.990(a), if                                  
06            the gift is unconnected to the recipient's legislative status;                                               
07                      (B)  tickets to a charity event described in                                                       
08            AS 24.60.080(a)(2)(B); or                                                                                    
09                      (C)  a contribution to a charity event under                                                       
10            AS 24.60.080(c)(10);                                                                                         
11 (10)  make or offer a gift or a campaign contribution whose acceptance                                                  
12       by the person to whom it is offered would violate AS 24.60 or AS 39.52.                                           
13    * Sec. 7. AS 24.60.030(e) is amended to read:                                                                        
14 (e)  A legislator may not directly, or by authorizing another to act on the                                             
15       legislator's behalf,                                                                                              
16 (1)  agree to, threaten to, or state or imply that the legislator will take or                                          
17 withhold a legislative, administrative, or political action, including support for or                                 
18 opposition to a bill, employment, nominations, and appointments, as a result of a                                       
19 person's decision to provide or not provide a political contribution, donate or not                                     
20       donate to a cause favored by the legislator, or provide or not provide a thing of value;                          
21 (2)  state or imply that the legislator will perform or refrain from                                                    
22 performing a lawful constituent service as a result of a person's decision to provide or                                
23 not provide a political contribution, donate or not donate to a cause favored by the                                    
24       legislator, or provide or not provide a thing of value; or                                                        
25 (3)  except as provided in (g) of this section or while participating                                                 
26 in a public discussion or debate [UNLESS REQUIRED BY THE UNIFORM                                                      
27 RULES OF THE ALASKA STATE LEGISLATURE], take or withhold official                                                       
28 action or exert official influence that could substantially benefit or harm the financial                               
29       interest of a [ANOTHER] person                                                                                  
30                      (A)  who is a member of the legislator's immediate family;                                       
31 (B)  by [WITH] whom the legislator or a member of the                                                               
01            legislator's immediate family is employed;                                                                 
02                      (C)  with whom the legislator is negotiating for employment;                                   
03 (D)  from whom the legislator or a member of the                                                                      
04 legislator's immediate family has, in the immediately preceding 12-month                                              
05            period, received more than $10,000 of income.                                                              
06    * Sec. 8. AS 24.60.030(g) is amended to read:                                                                        
07 (g)  Unless otherwise required by the Uniform Rules of the Alaska State                                               
08 Legislature, a legislator shall declare a conflict of interest before voting [MAY                                     
09 NOT VOTE] on a question before a committee of the legislature, and shall request                                      
10 to be excused from voting on a question before a house of the legislature, if the                                     
11 legislator or a member of the legislator's immediate family has a financial [AN                                     
12 EQUITY OR OWNERSHIP] interest in a business, investment, real property, lease, or                                       
13 other enterprise if the interest is substantial and the effect on that interest of the action                           
14 to be voted on is greater than the effect on the general public of the state. However,                                
15 notwithstanding (e)(3) of this section and the limitations of this subsection, a                                      
16 legislator may vote on an appropriation bill that meets the requirements of                                           
17 AS 37.07.020(a) or 37.07.100 [A SUBSTANTIAL CLASS OF PERSONS TO                                                       
18 WHICH THE LEGISLATOR BELONGS AS A MEMBER OF A PROFESSION,                                                               
19       OCCUPATION, INDUSTRY, OR REGION].                                                                                 
20    * Sec. 9. AS 24.60.030(j) is amended to read:                                                                        
21            (j)  In this section,                                                                                        
22 (1)  "administrative hearing" means a quasi-judicial hearing before an                                                
23 agency; "administrative hearing" does not include an informal conference or review                                      
24 held by an agency before a final decision is issued or a rate-making proceeding or                                      
25       other nonadjudicative public hearing;                                                                           
26 (2)  "substantially benefit or harm" means the effect on the                                                          
27 person's financial interest is greater than the effect on the financial interest of the                               
28       general public of the state.                                                                                    
29    * Sec. 10. AS 24.60.080(a) is amended to read:                                                                       
30 (a)  Except as otherwise provided in this section, a legislator or legislative                                          
31       employee may not                                                                                                  
01 (1)  solicit, accept, or receive, directly or indirectly, a gift worth $250                                             
02 or more, whether in the form of money, services, a loan, travel, entertainment,                                         
03 hospitality, promise, or other form, or gifts from the same person worth less than $250                                 
04       that in a calendar year aggregate to $250 or more in value;                                                       
05                 (2)  solicit, accept, or receive a gift with any monetary value from a                                  
06       lobbyist, an immediate family member of a lobbyist, or a person acting on behalf of a                             
07       lobbyist, except                                                                                                  
08                      (A)  food or nonalcoholic beverage for immediate consumption                                     
09                           (i)  with a value of $15 or less; or                                                        
10 (ii)  provided as part of an event that is open to all                                                                
11                 legislators or legislative employees;                                                                 
12 (B)  a contribution to a charity event, tickets to a charity event,                                                     
13 and gifts to which the tickets may entitle the bearer; however, under this                                              
14 subparagraph a legislator or legislative employee may not solicit, accept, or                                           
15 receive from the same lobbyist, an immediate family member of the lobbyist,                                             
16 or a person acting on behalf of the lobbyist, tickets to a charity event, gifts to                                      
17 which the tickets may entitle the bearer, or both, that in a calendar year                                              
18 aggregate to $250 or more in value; in this subparagraph, "charity event"                                               
19 means an event the proceeds of which go to a charitable organization with tax-                                          
20 free status under 26 U.S.C. 501(c)(3) and that the Alaska legislative council                                           
21 has approved in advance; the tickets may entitle the bearer to admission to the                                         
22 event, to entertainment, to food or beverages, or to other gifts or services in                                         
23            connection with the charity event;                                                                           
24 (C)  a gift that is unconnected with the recipient's legislative                                                        
25 status and is from a member of the legislator's or legislative employee's                                               
26            immediate family;                                                                                            
27 (D)  a gift delivered on the premises of a state facility and                                                           
28            accepted on behalf of a recognized nonpolitical charitable organization; or                                  
29                      (E)  a compassionate gift under AS 24.60.075.                                                      
30    * Sec. 11. AS 24.60.990(a) is amended by adding a new paragraph to read:                                             
31 (17)  "financial interest" means ownership of an interest or an                                                         
01 involvement in a business, including a property ownership, or a professional or private                                 
02 relationship, that is a source of income, or from which, or as a result of which, a                                     
03       person has received or expects to receive a financial benefit.                                                    
04    * Sec. 12. AS 39.23.540(d) is amended to read:                                                                       
05 (d)  The commission shall make available to the governor and presiding                                                  
06 officers of each house of the legislature a final report of its findings and                                            
07 recommendations as to the rate and form of compensation, benefits, and allowances                                       
08 for legislators, the governor, the lieutenant governor, and each principal executive                                    
09 department head during the first 10 days of a legislative session. Subject to                                           
10 AS 24.10.130(b) and (g) of this section, and unless a bill disapproving all the                                     
11 recommendations for all officers listed in this section is enacted into law within 60                                   
12 days after the recommendations are submitted to the governor and presiding officers                                     
13 of each house of the legislature, a recommendation as to the compensation, benefits,                                    
14       and allowances for                                                                                                
15 (1)  a legislator has the force of law and becomes effective on the first                                               
16       day of the next regular legislative session; and                                                                  
17 (2)  the governor, the lieutenant governor, and each principal executive                                                
18 department head has the force of law and becomes effective on the first day of the                                      
19       fiscal year following the fiscal year in which the recommendation is submitted.                                   
20    * Sec. 13. AS 24.45.051(b) is repealed.                                                                              
21    * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to                           
22 read:                                                                                                                   
23 REGULATIONS. The Alaska Public Offices Commission shall adopt regulations                                               
24 necessary to implement secs. 1 and 2 of this Act. The regulations are subject to AS 44.62                               
25 (Administrative Procedure Act). Regulations adopted under this section may not take effect                              
26 before the effective date of the law being implemented by the regulation.                                               
27    * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to                           
28 read:                                                                                                                   
29 SEVERABILITY. Under AS 01.10.030, if any provision of this Act, or the application                                      
30 of a provision of this Act to any person or circumstance, is held invalid, the remainder of this                        
31 Act and the application to other persons or circumstances are not affected.                                             
01    * Sec. 16. Section 14 of this Act takes effect immediately under AS 01.10.070(c).                                    
02    * Sec. 17. Except as provided in sec. 16 of this Act, this Act takes effect July 1, 2018.                            
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