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CSHB 409(STA): "An Act relating to state election campaigns, the duties of the Alaska Public Offices Commission, the making, reporting, and disclosure of contributions, expenditures, and independent expenditures, the prohibition of all anonymous expenditures, the filing of reports, and the identification of certain communications in state election campaigns; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 409(STA) 01 "An Act relating to state election campaigns, the duties of the Alaska Public Offices 02 Commission, the making, reporting, and disclosure of contributions, expenditures, and 03 independent expenditures, the prohibition of all anonymous expenditures, the filing of 04 reports, and the identification of certain communications in state election campaigns; 05 and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 15.13.010(b) is amended to read: 08 (b) Except as otherwise provided, this chapter applies to contributions, 09 expenditures, and communications made [BY A CANDIDATE, GROUP, 10 NONGROUP ENTITY, MUNICIPALITY OR INDIVIDUAL] for the purpose of 11 influencing the outcome of a ballot proposition or question as well as those made to 12 influence the nomination or election of a candidate. 13 * Sec. 2. AS 15.13.030 is amended to read:

01 Sec. 15.13.030. Duties of the commission. The commission shall 02 (1) develop and provide all forms for the reports and statements 03 required to be made under this chapter, AS 24.45, and AS 39.50; 04 (2) prepare and publish a manual setting out uniform methods of 05 bookkeeping and reporting for use by persons required to make reports and statements 06 under this chapter and otherwise assist all persons [CANDIDATES, GROUPS, AND 07 INDIVIDUALS] in complying with the requirements of this chapter; 08 (3) receive and hold open for public inspection reports and statements 09 required to be made under this chapter and, upon request, furnish copies at cost to 10 interested persons; 11 (4) compile and maintain a current list of all filed reports and 12 statements; 13 (5) prepare a summary of each report filed under AS 15.13.110 and 14 make copies of this summary available to interested persons at their actual cost; 15 (6) notify, by registered or certified mail, all persons who are 16 delinquent in filing reports and statements required to be made under this chapter; 17 (7) examine, investigate, and compare all reports, statements, and 18 actions required by this chapter, AS 24.45, and AS 39.50; 19 (8) prepare and publish a biennial report concerning the activities of 20 the commission, the effectiveness of this chapter, its enforcement by the attorney 21 general's office, and recommendations and proposals for change; the commission shall 22 notify the legislature that the report is available; 23 (9) adopt regulations necessary to implement and clarify the provisions 24 of AS 24.45, AS 39.50, and this chapter, subject to the provisions of AS 44.62 25 (Administrative Procedure Act); [AND] 26 (10) consider a written request for an advisory opinion concerning the 27 application of this chapter, AS 24.45, AS 24.60.200 - 24.60.260, or AS 39.50; and 28 (11) make available to the public information contained in a report 29 filed under AS 15.13.040(e) within 24 hours after the filing of the report with the 30 commission. 31 * Sec. 3. AS 15.13.040(d) is amended to read:

01 (d) Every [INDIVIDUAL,] person [, NONGROUP ENTITY, OR GROUP] 02 making an independent expenditure shall make a full report of expenditures, upon a 03 form prescribed by the commission, unless exempt from reporting. 04 * Sec. 4. AS 15.13.040(e) is amended to read: 05 (e) Each person [THE REPORT] required to report under (d) of this section 06 shall file a full report in accordance with AS 15.13.110(g) on a form prescribed by 07 the commission. If the report is filed by a person that is not an individual, the 08 report must be certified as correct by the treasurer or fiscal officer of the person. 09 The report must contain 10 (1) the name, address, principal occupation, and employer of the 11 individual filing the report; 12 (2) [, AND] an itemized list of all expenditures made, incurred, or 13 authorized by the person; 14 (3) the name of the candidate or the title of the ballot proposition 15 or question supported or opposed by each expenditure and whether the 16 expenditure is made to support or oppose the candidate or ballot proposition or 17 question; 18 (4) the name, address, and nationality of each officer and director 19 of the person, when applicable; 20 (5) the aggregate amount of all contributions made to the person, 21 if any, for the purpose of influencing the outcome of an election; for all 22 contributions to the person that exceed $100 in the aggregate in a year, the date 23 of the contribution and amount contributed by each contributor; and for a 24 contributor 25 (A) who is an individual, the name, address, principal 26 occupation, and employer of the contributor; or 27 (B) that is not an individual, the name and address of the 28 contributor and the name, address, and nationality of each officer and 29 director of the contributor [EXPENDITURES. THE REPORT SHALL BE 30 FILED WITH THE COMMISSION NO LATER THAN 10 DAYS AFTER 31 THE EXPENDITURE IS MADE].

01 * Sec. 5. AS 15.13.040(h) is amended to read: 02 (h) The provisions of (d) of this section do not apply to one or more 03 expenditures made by an individual acting independently of any other person 04 [GROUP OR NONGROUP ENTITY AND INDEPENDENTLY OF ANY OTHER 05 INDIVIDUAL] if the expenditures 06 (1) cumulatively do not exceed $500 during a calendar year; and 07 (2) are made only for billboards, signs, or printed material concerning 08 a ballot proposition as that term is defined by AS 15.13.065(c). 09 * Sec. 6. AS 15.13.040(p) is amended to read: 10 (p) For purposes of (b), (e), and (j) of this section, "contributor" means the 11 true source of the funds, property, or services being contributed. 12 * Sec. 7. AS 15.13.067 is amended to read: 13 Sec. 15.13.067. Who may make expenditures. Only the following may make 14 an expenditure that is not an independent expenditure in an election for candidates 15 for elective office: 16 (1) the candidate; 17 (2) an individual; 18 (3) a group that has registered under AS 15.13.050; and 19 (4) a nongroup entity that has registered under AS 15.13.050. 20 * Sec. 8. AS 15.13 is amended by adding a new section to read: 21 Sec. 15.13.068. Expenditures and contributions by foreign nationals. (a) A 22 foreign national may not, directly or indirectly, in connection with an election under 23 this chapter, make a contribution or expenditure or make an express or implied 24 promise to make a contribution or expenditure. 25 (b) In this section, "foreign national" includes 26 (1) a foreign government, every political subdivision of a foreign 27 government, every official, agent, or representative of a foreign government, and 28 every agency, corporation, or instrumentality of the foreign government or of a 29 political subdivision of a foreign government; 30 (2) a person outside of the United States, unless it is established that 31 the person is an individual and a citizen of and domiciled in the United States, or that

01 the person is not an individual and is organized under or created by the laws of the 02 United States or of any state or other place subject to the jurisdiction of the United 03 States and has its principal place of business in the United States; 04 (3) a partnership, association, corporation, organization, or other 05 combination of persons organized under the laws of or having its principal place of 06 business in a foreign country; or 07 (4) a domestic subsidiary of an entity described in (1) - (3) of this 08 subsection or a domestic corporation controlled by an entity described in (1) - (3) of 09 this subsection, if that entity finances, participates in, or selects a person who 10 participates in the making of a contribution or an expenditure of the domestic 11 subsidiary or domestic corporation. 12 (c) The provisions of this section apply only to the extent permitted by federal 13 law. 14 * Sec. 9. AS 15.13.082(b) is amended to read: 15 (b) A person, other than an individual exempt from reporting under 16 AS 15.13.040(h), [CANDIDATE, GROUP, OR NONGROUP ENTITY] may not 17 make an expenditure unless the source of the expenditure has been disclosed as 18 required by this chapter. 19 * Sec. 10. AS 15.13.084 is amended to read: 20 Sec. 15.13.084. Prohibited expenditures. A person may not make an 21 expenditure 22 (1) anonymously [, UNLESS THE EXPENDITURE IS 23 (A) PAID FOR BY AN INDIVIDUAL ACTING 24 INDEPENDENTLY OF ANY GROUP OR NONGROUP ENTITY AND 25 INDEPENDENTLY OF ANY OTHER INDIVIDUAL; 26 (B) MADE TO INFLUENCE THE OUTCOME OF A 27 BALLOT PROPOSITION AS THAT TERM IS DEFINED BY 28 AS 15.13.065(c); AND 29 (C) MADE FOR 30 (i) A BILLBOARD OR SIGN; OR 31 (ii) PRINTED MATERIAL, OTHER THAN AN

01 ADVERTISEMENT MADE IN A NEWSPAPER OR OTHER 02 PERIODICAL]; or 03 (2) using a fictitious name or using the name of another. 04 * Sec. 11. AS 15.13.090 is amended to read: 05 Sec. 15.13.090. Identification of communication. (a) All communications 06 shall be clearly identified by the words "paid for by" followed by the name and 07 address of the person [CANDIDATE, GROUP, NONGROUP ENTITY, OR 08 INDIVIDUAL] paying for the communication. In addition, 09 (1) candidates and groups may identify the name of their campaign 10 chairperson; and 11 (2) a person other than a candidate, an individual, or a political 12 party shall clearly 13 (A) identify the person's principal officer and the officer's 14 title; 15 (B) include a statement from the principal officer 16 approving the communication; 17 (C) provide the address of the person's principal place of 18 business; and 19 (D) identify the name and city and state of residence or 20 principal place of business, as applicable, of each of the person's three 21 largest contributors under AS 15.13.040(e)(5), if any, during the 12-month 22 period before the date of the communication. 23 (b) The provisions of (a) of this section do not apply when the communication 24 (1) is paid for by an individual acting independently of any other 25 person [GROUP OR NONGROUP ENTITY AND INDEPENDENTLY OF ANY 26 OTHER INDIVIDUAL]; 27 (2) is made to influence the outcome of a ballot proposition as that 28 term is defined by AS 15.13.065(c); and 29 (3) is made for 30 (A) a billboard or sign; or 31 (B) printed material other than an advertisement made in a

01 newspaper or other periodical. 02 * Sec. 12. AS 15.13.090 is amended by adding new subsections to read: 03 (c) A person other than a candidate, individual, or political party may not 04 make a communication under (a) of this section unless the person's principal officer 05 has certified to the commission in writing that the officer has reviewed the 06 communication, and, based on the officer's knowledge, the communication is not 07 defamatory and does not contain any defamatory statements. 08 (d) To satisfy the requirements of (a)(2)(C) of this section and, if applicable, 09 (a)(2)(D) of this section, the following statement or statements must be read, in a 10 manner that is easily heard, or placed in the communication so as to be easily 11 discernable, or, in a communication that is transmitted by a method that includes both 12 audio and video components, be read in a manner that is easily heard and placed in the 13 communication so as to be easily discernable: 14 This communication was paid for by (person's name and city 15 and state of principal place of business). 16 The top contributors of (person's name) are (the name and city 17 and state of residence or principal place of business, as applicable, of 18 the largest contributors to the person under AS 15.13.090(a)(2)(D)). 19 (e) If a foreign government holds more than a 10 percent ownership interest in 20 a person paying for a communication under (a) of this section, the foreign government 21 must be clearly identified in the communication as a partial owner of the person. A 22 foreign government identified in a communication under this subsection must be 23 identified by the foreign government's common or usual name. In this subsection, 24 "foreign government" includes every political subdivision of the foreign government, 25 every official, agent, or representative of the foreign government, and every agency, 26 corporation, or instrumentality of the foreign government or of a political subdivision 27 of the foreign government. 28 (f) In an audio component of a communication, a person paying for the 29 communication, other than an individual, may be named under (d) of this section by 30 the person's common name. 31 * Sec. 13. AS 15.13.110 is amended by adding a new subsection to read:

01 (g) An independent expenditure report required under AS 15.13.040(e) shall 02 be filed with the commission not later than 24 hours after an expenditure has been 03 made. 04 * Sec. 14. AS 15.13.111(a) is amended to read: 05 (a) Each [CANDIDATE, GROUP, NONGROUP ENTITY, OR] person 06 required to report under this chapter shall preserve all records necessary to substantiate 07 information required to be reported under this chapter for a period of six years from 08 the date of the election for which the information was required to be reported, unless 09 the records have been submitted to the commission under (c) of this section. 10 * Sec. 15. AS 15.13.135 is amended to read: 11 Sec. 15.13.135. Independent expenditures for or against candidates. (a) 12 [ONLY AN INDIVIDUAL, GROUP, OR NONGROUP ENTITY MAY MAKE AN 13 INDEPENDENT EXPENDITURE SUPPORTING OR OPPOSING A CANDIDATE 14 FOR ELECTION TO PUBLIC OFFICE.] An independent expenditure supporting or 15 opposing a candidate for election to public office, except an independent expenditure 16 made by a nongroup entity with an annual operating budget of $250 or less, shall be 17 reported in accordance with AS 15.13.040 and 15.13.100 - 15.13.110 and other 18 requirements of this chapter. 19 (b) A person [AN INDIVIDUAL, GROUP, OR NONGROUP ENTITY] who 20 makes independent expenditures for a mass mailing, for distribution of campaign 21 literature of any sort, for a television, radio, newspaper, or magazine advertisement, or 22 any other communication that supports or opposes a candidate for election to public 23 office 24 (1) shall comply with AS 15.13.090; and 25 (2) shall place the following statement in the mailing, literature, 26 advertisement, or other communication so that it is readily and easily discernible: 27 This NOTICE TO VOTERS is required by Alaska law. (I/we) certify 28 that this (mailing/literature/advertisement) is not authorized, paid for, 29 or approved by the candidate. 30 * Sec. 16. AS 15.13.140(a) is repealed. 31 * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to

01 read: 02 SEVERABILITY. Under AS 01.10.030, if any provision of this Act, or the application 03 of it to any person or circumstance, is held invalid, the remainder of this Act and the 04 application to other persons or circumstances are not affected. 05 * Sec. 18. This Act takes effect immediately under AS 01.10.070(c).