05/01/2025 09:00 AM Senate FINANCE

CS FOR HOUSE BILL NO. 16(STA)                                                                                                 
                                                                                                                                
     "An  Act requiring  a group  supporting  or opposing  a                                                                    
     candidate  or ballot  proposition in  a state  or local                                                                    
     election to maintain an address  in the state; amending                                                                    
     campaign  contribution  limits   for  state  and  local                                                                    
     office; directing the  Alaska Public Offices Commission                                                                    
     to adjust  campaign contribution  limits for  state and                                                                    
     local  office  once  each  decade  beginning  in  2031;                                                                    
     relating    to    campaign    contribution    reporting                                                                    
     requirements;  relating  to  administrative  complaints                                                                    
     filed  with  the   Alaska  Public  Offices  Commission;                                                                    
     relating   to    state   election    expenditures   and                                                                    
     contributions made by  a foreign-influenced corporation                                                                    
     or  foreign national;  and providing  for an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
9:47:39 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CALVIN SCHRAGE, SPONSOR, introduced the                                                                          
legislation. He referred to the Sponsor Statement (copy on                                                                      
file):                                                                                                                          
                                                                                                                                
     In   2024,  Alaska   23RCF2  was   certified  after   a                                                                    
     grassroots effort that  gathered signatures from nearly                                                                    
     30,000 registered Alaskan voters  and met the 7 percent                                                                    
     threshold  in 32  out of  Alaska's 40  house districts.                                                                    
     23RCF2 will  be put before  voters in the  2026 primary                                                                    
     election  if  the  Alaska  Legislature  does  not  pass                                                                    
     materially similar legislation.                                                                                            
                                                                                                                                
     Alaska has  historically touted some of  the strongest,                                                                    
     most  effective campaign  finance laws  in the  nation,                                                                    
     which  served  to  promote  better  accountability  and                                                                    
     trust  in  our  elections  and  elected  officials.  In                                                                    
     recent  years, Alaskans  have shown  their support  for                                                                    
     fair  and reasonable  contribution limits,  including a                                                                    
     2006 ballot initiative  that passed overwhelmingly with                                                                    
     73  percent  support.  However,   in  2021,  the  Ninth                                                                    
     Circuit   Court  of   Appeals   struck  down   Alaska's                                                                    
     statutory  campaign  contribution limits,  opening  our                                                                    
     state and  local elections to  the threat  of unlimited                                                                    
     political  contributions  directly to  candidates  from                                                                    
     anyone, anywhere in the country.                                                                                           
                                                                                                                                
     House Bill 16 (HB  16) reinstates fair, reasonable, and                                                                    
     constitutional  campaign   contribution  limits,  which                                                                    
     will  be  adjusted  based on  Alaska's  consumer  price                                                                    
     index  rates  moving  forward. This  will  ensure  that                                                                    
     these limits remain constitutional.                                                                                        
                                                                                                                                
9:50:16 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  requested a  history  of  the issue,  and                                                                    
wondered why  the federal  limits were  not included  in the                                                                    
bill.                                                                                                                           
                                                                                                                                
Representative  Schrage detailed  some  history of  campaign                                                                    
finance reform in the state.                                                                                                    
                                                                                                                                
Co-Chair  Stedman wondered  why the  bill was  not a  ballot                                                                    
measure.                                                                                                                        
                                                                                                                                
Representative Schrage  responded that it was  an attempt to                                                                    
establish limits before the next election.                                                                                      
                                                                                                                                
9:55:19 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman requested a  history of large contributions                                                                    
in the elections.                                                                                                               
                                                                                                                                
Representative  Schrage  replied   that  an  individual  was                                                                    
limited  to $2000  per election  cycle,  and explained  that                                                                    
there  were  other  means  to   contribute  or  influence  a                                                                    
political campaign.                                                                                                             
                                                                                                                                
Co-Chair  Hoffman  wondered   whether  there  were  specific                                                                    
limits to  political parties  on how  much they  receive and                                                                    
how much they contribute to candidates.                                                                                         
                                                                                                                                
Representative Schrage responded  in the affirmative, agreed                                                                    
to provide that information.                                                                                                    
                                                                                                                                
9:59:10 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman remarked that  he had heard of contribution                                                                    
of "hints" of where the funds would go.                                                                                         
                                                                                                                                
10:04:08 AM                                                                                                                   
                                                                                                                                
Senator  Kiehl asked  about the  address requirement  in the                                                                    
bill.                                                                                                                           
                                                                                                                                
Representative  Schrage replied  that it  was an  amendment,                                                                    
and   stated  that   the  state   could  impose   disclosure                                                                    
requirements.                                                                                                                   
                                                                                                                                
Co-Chair Stedman  remarked that  the intention was  to limit                                                                    
outside influence from another state.                                                                                           
                                                                                                                                
Representative Schrage replied that it was a $2000 limit.                                                                       
                                                                                                                                
Co-Chair Hoffman  wondered whether  each member of  a family                                                                    
could contribute.                                                                                                               
                                                                                                                                
Representative Schrage replied in the affirmative.                                                                              
                                                                                                                                
10:08:01 AM                                                                                                                   
                                                                                                                                
BRUCE BOTELHO,  CITIZENS AGAINST MONEY IN  POLITICS, JUNEAU,                                                                    
spoke in support of the bill.                                                                                                   
                                                                                                                                
10:13:01 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman wondered why the  issue would not be on the                                                                    
ballot.                                                                                                                         
                                                                                                                                
Mr. Botelho  replied that it was  the desire to be  in place                                                                    
for the 2028 election.                                                                                                          
                                                                                                                                
Co-Chair Stedman felt that the  voters should have the right                                                                    
to vote on the issue.                                                                                                           
                                                                                                                                
Mr.  Botelho  disagreed, and  felt  that  the voters  wanted                                                                    
campaign contribution limits.                                                                                                   
                                                                                                                                
10:15:43 AM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman  wondered  if   there  was  a  correlation                                                                    
between urban and rural Alaska.                                                                                                 
                                                                                                                                
Mr. Botelho detailed the percentages of support.                                                                                
                                                                                                                                
10:20:00 AM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman OPENED public testimony.                                                                                       
                                                                                                                                
10:20:23 AM                                                                                                                   
                                                                                                                                
MIKE  COONS, SELF,  WASILLA (via  teleconference), testified                                                                    
against the legislation.                                                                                                        
                                                                                                                                
10:23:05 AM                                                                                                                   
                                                                                                                                
MERCEDES  ARCINIEGA,  OUTREACH  AND  GOOD  GOVERNMENT  LEAD,                                                                    
ALASKA  PUBLIC  INTEREST   RESEARCH  GROUP,  ANCHORAGE  (via                                                                    
teleconference), testified in support of the legislation.                                                                       
                                                                                                                                
10:25:39 AM                                                                                                                   
                                                                                                                                
EVELYNN TREFON,  SELF, NEWHALEN (via  teleconference), spoke                                                                    
in support of the bill.                                                                                                         
                                                                                                                                
10:26:56 AM                                                                                                                   
                                                                                                                                
KEVIN  MORFORD, PRESIDENT,  ALASKA  MOVE  TO AMEND,  CHUGIAK                                                                    
(via teleconference), testified in support of the bill.                                                                         
                                                                                                                                
Co-Chair Hoffman CLOSED public testimony.                                                                                       
                                                                                                                                
Senator Kiehl  addressed the one  zero fiscal note  from the                                                                    
Department of Administration.                                                                                                   
                                                                                                                                
Representative  Schrage thanked  the  committee for  hearing                                                                    
the legislation.                                                                                                                
                                                                                                                                
CSHB 16(STA)  was HEARD  and HELD  in committee  for further                                                                    
consideration.