00 SENATE CS FOR CS FOR HOUSE BILL NO. 177(RLS) am S 01 "An Act regulating nongroup entities and certain tax-exempt organizations under 02 Alaska's election campaign finance statutes; and requiring disclosure of the true source 03 of campaign contributions." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 SHORT TITLE. This Act may be known as the Full Disclosure of Campaign Finance 08 Act. 09 * Sec. 2. AS 15.13.010(b) is amended to read: 10 (b) Except as otherwise provided, this chapter applies to contributions, 11 expenditures and communications made by a candidate, group, nongroup entity, 12 municipality or individual for the purpose of influencing the outcome of a ballot 13 proposition or question as well as those made to influence the nomination or election 14 of a candidate. 01 * Sec. 3. AS 15.13.040(b) is amended to read: 02 (b) Each group shall make a full report upon a form prescribed by the 03 commission, listing 04 (1) the name and address of each officer and director; 05 (2) the aggregate amount of all contributions made to it; and, for all 06 contributions in excess of $100 in the aggregate a year, the name, address, principal 07 occupation, and employer of the contributor, and the date and amount contributed by 08 each contributor; for purposes of this paragraph, "contributor" means the true 09 source of the funds, property, or services being contributed; and 10 (3) the date and amount of all contributions made by it and all 11 expenditures made, incurred or authorized by it. 12 * Sec. 4. AS 15.13.040(d) is amended to read: 13 (d) Every individual, person, nongroup entity, or group making a 14 contribution or expenditure shall make a full report, upon a form prescribed by the 15 commission, of 16 (1) contributions made to a candidate or group and expenditures made 17 on behalf of a candidate or group 18 (A) as soon as the total contributions and expenditures to that 19 candidate or group reaches $500 in a year; and 20 (B) for all subsequent contributions and expenditures to that 21 candidate or group in a year whenever the total contributions and expenditures 22 to that candidate or group that have not been reported under this paragraph 23 reaches $500; 24 (2) unless exempted from reporting by (h) of this section, any 25 expenditure whatsoever for advertising in newspapers or other periodicals, on radio, or 26 on television; or [,] for the publication, distribution, or circulation of brochures, flyers, 27 or other campaign material for any candidate or ballot proposition or question. 28 * Sec. 5. AS 15.13.040(h) is amended to read: 29 (h) The provisions of (d)(2) of this section do not apply to one or more 30 expenditures made by an individual acting independently of any group or nongroup 31 entity and independently of any other individual if the expenditures 01 (1) cumulatively do not exceed $250 during a calendar year; and 02 (2) are made only for billboards, signs, or printed material concerning 03 a ballot proposition as that term is defined by AS 15.13.065(c). 04 * Sec. 6. AS 15.13.040 is amended by adding a new subsection to read: 05 (j) Each nongroup entity shall make a full report in accordance with 06 AS 15.13.110 upon a form prescribed by the commission and certified by the 07 nongroup entity's treasurer, listing 08 (1) the name and address of each officer and director of the nongroup 09 entity; 10 (2) the aggregate amount of all contributions made to the nongroup 11 entity for the purpose of influencing the outcome of an election; and, for all such 12 contributions in excess of $100 in the aggregate a year, the name, address, principal 13 occupation, and employer of the contributor, and the date and amount contributed by 14 each contributor; for purposes of this paragraph, "contributor" means the true source 15 of the funds, property, or services being contributed; and 16 (3) the date and amount of all contributions made by the nongroup 17 entity, and, except as provided for certain independent expenditures in 18 AS 15.13.135(a), all expenditures made, incurred, or authorized by the nongroup 19 entity, for the purpose of influencing the outcome of an election; a nongroup entity 20 shall report contributions made to a different nongroup entity for the purpose of 21 influencing the outcome of an election and expenditures made on behalf of a different 22 nongroup entity for the purpose of influencing the outcome of an election as soon as 23 the total contributions and expenditures to that nongroup entity for the purpose of 24 influencing the outcome of an election reach $500 in a year and for all subsequent 25 contributions and expenditures to that nongroup entity in a year whenever the total 26 contributions and expenditures to that nongroup entity for the purpose of influencing 27 the outcome of an election that have not been reported under this paragraph reach 28 $500. 29 * Sec. 7. AS 15.13.065(a) is amended to read: 30 (a) Individuals, groups, nongroup entities, and political parties may make 31 contributions to a candidate. An individual, [OR] group, or nongroup entity may 01 make a contribution to a group, to a nongroup entity, or to a political party. 02 * Sec. 8. AS 15.13.067 is amended to read: 03 Sec. 15.13.067. Who may make expenditures. Only the following may 04 make an expenditure in an election for candidates for elective office: 05 (1) the candidate; 06 (2) an individual; [AND] 07 (3) a group that has registered under AS 15.13.050; and 08 (4) a nongroup entity that has registered under AS 15.13.050. 09 * Sec. 9. AS 15.13.070(b) is amended to read: 10 (b) An individual may contribute not more than 11 (1) $500 per year to a nongroup entity for the purpose of 12 influencing the nomination or election of a candidate, to a candidate, to an 13 individual who conducts a write-in campaign as a candidate, or to a group that is not a 14 political party; 15 (2) $5,000 per year to a political party. 16 * Sec. 10. AS 15.13.070(c) is amended to read: 17 (c) A group that is not a political party may contribute not more than $1,000 18 per year 19 (1) to a candidate, or to an individual who conducts a write-in 20 campaign as a candidate; or 21 (2) to another group, a nongroup entity, or to a political party. 22 * Sec. 11. AS 15.13.070 is amended by adding a new subsection to read: 23 (f) A nongroup entity may contribute not more than $500 a year to a nongroup 24 entity for the purpose of influencing the nomination or election of a candidate, to a 25 candidate, to an individual who conducts a write-in campaign as a candidate, to a 26 group, or to a political party. 27 * Sec. 12. AS 15.13.072 is amended by adding a new subsection to read: 28 (h) A nongroup entity may solicit or accept contributions for the purpose of 29 influencing the nomination or election of a candidate from an individual who is not a 30 resident of the state at the time the contribution is made or from an entity organized 31 under the laws of another state, resident in another state, or whose participants are not 01 residents of this state at the time the contribution is made. The amounts accepted by 02 the nongroup entity from these individuals and entities for the purpose of influencing 03 the nomination or election of a candidate may not exceed 10 percent of total 04 contributions made to the nongroup entity for the purpose of influencing the 05 nomination or election of a candidate during the calendar year in which the 06 contributions are received. 07 * Sec. 13. AS 15.13.074(a) is amended to read: 08 (a) A person, [OR] group, or nongroup entity may not make a contribution if 09 the making of the contribution would violate this chapter. 10 * Sec. 14. AS 15.13.074(f) is amended to read: 11 (f) A corporation, company, partnership, firm, association, entity recognized 12 as tax-exempt under 26 U.S.C. 501(c)(3) (Internal Revenue Code), organization, 13 business trust or surety, labor union, or publicly funded entity that does not satisfy the 14 definition of group or nongroup entity in AS 15.13.400 may not make a contribution 15 to a candidate, [OR] group, or nongroup entity. 16 * Sec. 15. AS 15.13.074 is amended by adding a new subsection to read: 17 (i) A nongroup entity may not solicit or accept a contribution to be used for 18 the purpose of influencing the outcome of an election unless the potential contributor 19 is notified that the contribution may be used for that purpose. 20 * Sec. 16. AS 15.13.082(b) is amended to read: 21 (b) A candidate, [OR] group, or nongroup entity may not make an 22 expenditure unless the source of the expenditure has been disclosed as required by this 23 chapter. 24 * Sec. 17. AS 15.13.084 is amended to read: 25 Sec. 15.13.084. Prohibited expenditures. A person may not make an 26 expenditure 27 (1) anonymously, unless the expenditure is 28 (A) paid for by an individual acting independently of any group 29 or nongroup entity and independently of any other individual; 30 (B) made to influence the outcome of a ballot proposition as 31 that term is defined by AS 15.13.065(c); and 01 (C) made for 02 (i) a billboard or sign; or 03 (ii) printed material, other than an advertisement made 04 in a newspaper or other periodical; 05 (2) using a fictitious name or using the name of another. 06 * Sec. 18. AS 15.13.090(a) is amended to read: 07 (a) All advertisements, billboards, handbills, paid-for television and radio 08 announcements, and other communications intended to influence the election of a 09 candidate or outcome of a ballot proposition or question shall be clearly identified by 10 the words "paid for by" followed by the name and address of the candidate, group, 11 nongroup entity, or individual paying for the advertising. In addition, candidates and 12 groups must identify the name of their campaign chairperson. 13 * Sec. 19. AS 15.13.090(b) is amended to read: 14 (b) The provisions of (a) of this section do not apply when the advertisement 15 (1) is paid for by an individual acting independently of any group or 16 nongroup entity and independently of any other individual; 17 (2) is made to influence the outcome of a ballot proposition as that 18 term is defined by AS 15.13.065(c); and 19 (3) is made for 20 (A) a billboard or sign; or 21 (B) printed material other than an advertisement made in a 22 newspaper or other periodical. 23 * Sec. 20. AS 15.13.110(a) is amended to read: 24 (a) Each candidate, [AND] group, and nongroup entity shall make a full 25 report in accordance with AS 15.13.040 for the period ending three days before the 26 due date of the report and beginning on the last day covered by the most recent 27 previous report. If the report is a first report, it shall cover the period from the 28 beginning of the campaign to the date three days before the due date of the report. If 29 the report is a report due February 15, it shall cover the period beginning on the last 30 day covered by the most recent previous report or on the day that the campaign 31 started, whichever is later, and ending on December 31 of the prior year. The report 01 shall be filed 02 (1) 30 days before the election; however, this report is not required if 03 the deadline for filing a nominating petition or declaration of candidacy is within 30 04 days of the election; 05 (2) one week before the election; 06 (3) 10 days after the election; and 07 (4) February 15 for expenditures made and contributions received that 08 were not reported during the previous year, including, if applicable, all amounts 09 expended from a public office expense term account established under 10 AS 15.13.116(a)(8) and all amounts expended from a municipal office account under 11 AS 15.13.116(a)(9), or when expenditures were not made or contributions were not 12 received during the previous year. 13 * Sec. 21. AS 15.13.110(b) is amended to read: 14 (b) Each contribution that exceeds $250 and that is made within nine days of 15 the election shall be reported to the commission by date, amount, and contributor 16 within 24 hours of receipt by the candidate, group, campaign treasurer, or deputy 17 campaign treasurer. Each contribution to a nongroup entity for the purpose of 18 influencing the outcome of an election that exceeds $250 and that is made within 19 nine days of the election shall be reported to the commission by date, amount, 20 and contributor within 24 hours of receipt by the nongroup entity. 21 * Sec. 22. AS 15.13.110(f) is amended to read: 22 (f) During the year in which the election is scheduled, each of the following 23 shall file the campaign disclosure reports in the manner and at the times required by 24 this section: 25 (1) a person who, under the regulations adopted by the commission to 26 implement AS 15.13.100, indicates an intention to become a candidate for elective 27 state executive or legislative office; 28 (2) a person who has filed a nominating petition under AS 15.25.140 - 29 15.25.200 to become a candidate at the primary election for elective state executive or 30 legislative office; 31 (3) a person who campaigns as a write-in candidate for elective state 01 executive or legislative office at the general election; and 02 (4) a group or nongroup entity that receives contributions or makes 03 expenditures on behalf of or in opposition to a person described in (1) - (3) of this 04 subsection, except as provided for certain independent expenditures by nongroup 05 entities in AS 15.13.135(a). 06 * Sec. 23. AS 15.13.114(a) is amended to read: 07 (a) A candidate, [OR] group, or nongroup entity that receives and accepts a 08 contribution given in violation of AS 15.13.072 or 15.13.074 shall immediately, upon 09 discovery that the contribution is prohibited, return it to the contributor. A candidate, 10 [OR] group, or nongroup entity that receives and accepts a contribution in excess of 11 the limitation on contributions set out in AS 15.13.070 shall immediately, upon 12 discovery of the prohibited excess contribution, return the excess to the contributor. If 13 the contribution or excess amount cannot be returned in the same form, the equivalent 14 value of the contribution or excess amount shall be returned. 15 * Sec. 24. AS 15.13.135 is amended to read: 16 Sec. 15.13.135. Independent expenditures for or against candidates. (a) 17 Only an individual, [OR] group, or nongroup entity may make an independent 18 expenditure supporting or opposing a candidate for election to public office. An 19 independent expenditure supporting or opposing a candidate for election to public 20 office, except an independent expenditure made by a nongroup entity with an 21 annual operating budget of $250 or less, shall be reported in accordance with 22 AS 15.13.040 and 15.13.100 - 15.13.110 and other requirements of this chapter. 23 (b) An individual, [OR] group, or nongroup entity who makes independent 24 expenditures for a mass mailing, for distribution of campaign literature of any sort, for 25 a television, radio, newspaper, or magazine advertisement, or any other 26 communication that supports or opposes a candidate for election to public office 27 (1) shall comply with AS 15.13.090; and 28 (2) shall place the following statement in the mailing, literature, 29 advertisement, or other communication so that it is readily and easily discernible: 30 This NOTICE TO VOTERS is required by Alaska law. (I/we) certify 31 that this (mailing/literature/advertisement) is not authorized, paid for, 01 or approved by the candidate. 02 * Sec. 25. AS 15.13.400(9) is amended to read: 03 (9) "person" has the meaning given in AS 01.10.060, and includes a 04 labor union, nongroup entity, and a group; 05 * Sec. 26. AS 15.13.400 is amended by adding a new paragraph to read: 06 (12) "nongroup entity" means a person, other than an individual, that 07 takes action the major purpose of which is to influence the outcome of an election, and 08 that 09 (A) cannot participate in business activities; 10 (B) does not have shareholders who have a claim on corporate 11 earnings; and 12 (C) is independent from the influence of business corporations.