Legislature(2021 - 2022)BUTROVICH 205
04/08/2022 01:30 PM Senate JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| SB229 | |
| HB157 | |
| SB39 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 229 | TELECONFERENCED | |
| += | HB 157 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 39 | TELECONFERENCED | |
HB 157-APOC; REPORT REFERENDA/RECALL CONTRIBUTOR
1:35:30 PM
CHAIR HOLLAND announced the consideration of HB 157 CS FOR HOUSE
BILL NO. 157(FIN) "An Act requiring the disclosure of the
identity of certain persons, groups, and nongroup entities that
expend money in support of or in opposition to an application
filed for a state referendum or recall election; relating to the
location of offices for the Alaska Public Offices Commission and
the locations at which certain statements and reports filed with
the commission are made available; relating to the duties of the
Alaska Public Offices Commission; clarifying the limits on
making, accepting, and reporting certain cash campaign
contributions; relating to campaign finance reporting by certain
groups; increasing the time the Alaska Public Offices Commission
has to respond to a request for an advisory opinion; repealing a
reporting requirement for certain contributions; relating to
contribution limits and recall campaigns; and providing for an
effective date."
[CSHB 157(Fin) was before the committee.]
[HB 157 was previously heard on 3/28/22.
1:35:49 PM
SENATOR SHOWER moved to adopt the [Senate] committee substitute
(CS) for HB 157, work order 32-LS0669\G, as the working
document.
CHAIR HOLLAND objected for discussion purposes.
1:36:12 PM
ED KING, Staff, Senator Roger Holland, Alaska State Legislature,
Juneau, Alaska, explained the changes in the committee
substitute for HB 157 from Version B to Version G.
[Original punctuation provided.]
SUMMARY OF CHANGES
(VERSION B TO VERSION G)
Change 1: Changed "a central office" to "offices"
(Page 2, line 17)
Change 2: Section 3 of version B was deleted
Change 3: Adds an extension for sitting legislators to
file their end-of-year reports until after
session ends but requires declaration of any
contributions over $500 within 7-days (page
5, line 28 through page 6, line 3). Section
8 of version I is a conforming change to
this addition (page 4, line 12 through page
5, line 4).
Change 4: Shortens the time to file a complaint from
five years to two years (page 6, line 12)
Change 5: Updates the effective date clause (page 10,
line 20)
1:37:05 PM
CHAIR HOLLAND removed his objection; he found no further
objection, and Version G was adopted.
1:37:16 PM
At ease
1:39:03 PM
CHAIR HOLLAND reconvened the meeting.
1:39:25 PM
SENATOR SHOWER noted that during the at ease he verified that
the amendments were incorporated into Version G.
1:40:03 PM
CHAIR HOLLAND opened public testimony on HB 157, finding none;
he closed public testimony.
1:41:00 PM
SENATOR SHOWER related that he worked with the sponsor to
consider whether any reporting requirements were missing, which
resulted in one suggested amendment. He offered his view that
the committee had done an excellent job capturing the flow of
money, which is important to all Alaskans.
1:41:42 PM
SENATOR HUGHES commented that she previously introduced a bill
that related to the ballot initiative that would require the
details of the actual contributors to candidates from a
political action group (PAC), including their names, addresses,
and amounts. This bill would take the statute regarding
initiatives, bringing the recall elections and referendums,
although it doesn't go into the fine detail her bill did. This
would provide detailed information on candidates but not for
initiatives, referendums, or recalls. She said the language adds
"individual" instead of "person." Section 7 requires the report
to include the name, address, principal occupation, and employer
of the individual. She asked whether the goal was to bring the
referendum and recall elections in line with the existing
statute on initiatives.
1:43:52 PM
CRYSTAL KOENEMAN, Staff, Representative Sara Rasmussen, Alaska
State Legislature, Juneau, Alaska, answered that the main point
would highlight the lack of reporting contributions and
expenditures for collecting signatures during the ballot
initiative process. Reporting contributions and expenditures
wouldn't be available until the lieutenant governor certified
the signatures and the ballot initiative was placed on the
ballot. The sponsor wanted to capture that period of time for
contributions and expenditures coming into Alaska without
reporting.
1:44:51 PM
SENATOR HUGHES observed that HB 157 was an improvement, but it
still would not provide the level of detail called for in the
ballot initiative. She surmised that reporting would have shown
significant funds for the [ranked choice voting] ballot
initiative was coming from outside Alaska. She said she did not
want to give the public the false impression that this would
balance things. She offered her view that it would provide an
extra level of detail for candidates but not for initiatives,
referendums, or recall elections.
1:46:00 PM
CHAIR HOLLAND asked whether this proposal would extend the
filing deadline for legislators.
MS. KOENEMAN answered yes, for Alaska Public Offices Commission
(APOC) financial disclosures.
1:46:33 PM
At ease
1:47:28 PM
CHAIR HOLLAND reconvened the meeting.
1:47:50 PM
MR. KING noted that there was discussion about the extension for
legislators because they are busy doing the work of the state,
and preparing financial disclosures was burdensome and would
take away from the state's business. The idea was to extend the
end-of-year campaign report beyond the legislative session. He
noted some discussion was held about moving the financial
disclosure requirements, but it created complications, so it is
not in the bill. The end-of-year campaign filing deadline was
extended to 15 days after the legislature adjourns. Another
provision would require candidates to disclose contributions of
$500 or more received after the election within 7 days.
1:49:11 PM
CHAIR HOLLAND disclosed that APOC fined him $10 for missing a
deadline.
1:49:19 PM
SENATOR HUGHES agreed that legislators were busy conducting the
business of the state during the legislative session. Further,
it would not be appropriate for legislators or staff to use
state equipment for campaign purposes. Many legislators retain
that paperwork in their home districts, so it made sense to
adjust the campaign reporting timeframe to allow legislators to
return home to handle the reports.
CHAIR HOLLAND began the amendment process.
1:50:40 PM
SENATOR KIEHL moved to adopt Amendment 1, work order 32-
LS0669\G.1.
32-LS0669\G.1
Bullard
4/5/22
AMENDMENT 1
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SCS CSHB 157(JUD), Draft Version "G"
Page 1, line 11, following "campaigns;":
Insert "relating to the reporting of financial
and business interests by municipal officers, former
municipal officers, and candidates for municipal
office;"
Page 9, following line 29:
Insert a new bill section to read:
"* Sec. 18. AS 39.50.020(b) is amended to read:
(b) A public official, [OR] former public
official, or candidate for municipal office [OTHER
THAN AN ELECTED OR APPOINTED MUNICIPAL OFFICER] shall
file the statement with the Alaska Public Offices
Commission. Candidates for the office of governor and
lieutenant governor and, if the candidate is not
subject to AS 24.60, the legislature shall file the
statement under AS 15.25.030. The Alaska Public
Offices Commission shall provide copies of the
statements filed by municipal [MUNICIPAL] officers,
former municipal officers, and candidates for elective
municipal office to [SHALL FILE WITH] the applicable
municipal clerk or other municipal official designated
to receive the statements [THEIR FILING FOR OFFICE].
All statements required to be filed under this chapter
are public records."
Renumber the following bill sections accordingly.
1:50:52 PM
CHAIR HOLLAND objected for discussion purposes.
1:50:56 PM
SENATOR KIEHL explained that Amendment 1 would eliminate the
requirement for municipal officials to double-file financial
disclosures. The current statute requires municipal officials to
file financial disclosures with the city clerk. Since Alaska
Public Offices Commission (APOC) provides these forms, municipal
officials must fill out the financial disclosure form on the
APOC website, file it, print it, and submit it to the municipal
clerk's office. Amendment 1 would require municipal officials to
file their disclosures with APOC, who would forward the filing
to the municipal clerk to ensure that the public has access to
the filings.
1:52:07 PM
At ease
1:52:18 PM
CHAIR HOLLAND reconvened the meeting.
1:52:46 PM
SENATOR HUGHES wondered how this change would work for APOC.
1:53:00 PM
HEATHER HEBDON, Executive Director, Alaska Public Offices
Commission, Anchorage, Alaska, agreed Senator Kiehl made a good
point that municipal officers and candidates use APOC's online
system to file their financial disclosure forms (POFDs). Only
six municipalities and boroughs with a population of more than
15,000 are required to submit their forms electronically. She
estimated an additional 15-20 municipalities statewide are
allowed to file paper financial disclosure forms. APOC regularly
provides these POFD forms to the clerk's office to disseminate
to their filers. She did not anticipate any issues if municipal
filers used APOC's online system to file their POFDs. Municipal
filers or APOC staff could subsequently submit these filings to
municipal clerk offices.
1:54:32 PM
SENATOR HUGHES said streamlining the process may encourage more
people to run for municipal positions, so it was a good
amendment.
1:55:03 PM
CHAIR HOLLAND removed his objection; he found no further
objection, and Amendment 1 was adopted.
1:55:15 PM
SENATOR KIEHL moved to adopt Amendment 2, work order 32-
LS0669\G.2.
32-LS0669\G.2
Bullard
4/5/22
AMENDMENT 2
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SCS CSHB 157(JUD), Draft Version "G"
Page 9, lines 17 - 20:
Delete "central office and on the commission's
Internet website [, THE OFFICE OF THE LIEUTENANT
GOVERNOR, THE LEGISLATIVE REFERENCE LIBRARY OF THE
LEGISLATIVE AFFAIRS AGENCY, AND AT THE COMMISSION'S
DISTRICT OFFICES PRESCRIBED IN AS 15.13.020(j)]"
Insert "offices and on the commission's Internet
website [CENTRAL OFFICE, THE OFFICE OF THE LIEUTENANT
GOVERNOR, THE LEGISLATIVE REFERENCE LIBRARY OF THE
LEGISLATIVE AFFAIRS AGENCY, AND AT THE COMMISSION'S
DISTRICT OFFICES PRESCRIBED IN AS 15.13.020(j)]"
Page 9, lines 27 - 29:
Delete "the commission's central [AN] office and
be made available on the commission's Internet website
[ESTABLISHED BY THE COMMISSION IN THE STATE CAPITAL OR
IN THE OFFICE OF THE LIEUTENANT GOVERNOR]"
Insert "the commission's offices and be made
available on the commission's Internet website [AN
OFFICE ESTABLISHED BY THE COMMISSION IN THE STATE
CAPITAL OR IN THE OFFICE OF THE LIEUTENANT GOVERNOR]"
CHAIR HOLLAND objected for discussion purposes.
1:55:33 PM
SENATOR KIEHL explained that Amendment 2 would allow APOC to
maintain paper files in their offices and have them available on
their internet website. Version G requires the commission to
transfer paper files to the central office.
1:56:09 PM
CHAIR HOLLAND removed his objection; he found no further
objection, and Amendment 2 was adopted.
1:56:16 PM
SENATOR SHOWER objected for discussion purposes.
SENATOR SHOWER said he imagines this was a positive change, but
he would like Ms. Hebron to comment.
1:56:36 PM
MS. HEBDON agreed this would avoid unnecessary shuttling of
paper to the Anchorage office. The majority of their files are
already posted to APOC's website related to lobbying activities.
1:57:21 PM
SENATOR SHOWER removed his objection.
CHAIR HOLLAND found no further objection, and Amendment 2 was
adopted.
1:57:36 PM
SENATOR SHOWER moved to adopt Amendment 3, work order 32-
LS0669\G.3.
32-LS0669\G.3
Bullard
4/7/22
AMENDMENT 3
OFFERED IN THE SENATE BY SENATOR SHOWER
TO: SCS CSHB 157(JUD), Draft Version "G"
Page 1, line 9, following "opinion;":
Insert "relating to penalties assessed for
campaign finance violations;"
Page 6, following line 14:
Insert new bill sections to read:
"* Sec. 13. AS 15.13.390(a) is amended to read:
(a) Subject to (g) of this section, a [A] person
who
(1) fails to register when required by
AS 15.13.050(a) or who fails to file a properly
completed and certified report within the time
required by AS 15.13.040, 15.13.060(b) - (d),
15.13.110(a)(1), (3), or (4), (e), or (f) is subject
to a civil penalty of not more than $50 a day for each
day the delinquency continues as determined by the
commission subject to right of appeal to the superior
court. A person who fails to file a properly completed
and certified report within the time required by
AS 15.13.110(a)(2) or 15.13.110(b) is subject to a
civil penalty of not more than $500 a day for each day
the delinquency continues as determined by the
commission subject to right of appeal to the superior
court;
(2) whether as a contributor or
intermediary, delays in reporting a contribution as
required by AS 15.13.040(r) is subject to a civil
penalty of not more than $1,000 a day for each day the
delinquency continues as determined by the commission
subject to right of appeal to the superior court;
(3) whether as a contributor or
intermediary, misreports or fails to disclose the true
source of a contribution in violation of
AS 15.13.040(r) or 15.13.074(b) is subject to a civil
penalty of not more than the amount of the
contribution that is the subject of the misreporting
or failure to disclose; upon a showing that the
violation was intentional, a civil penalty of not more
than three times the amount of the contribution in
violation may be imposed; these penalties as
determined by the commission are subject to right of
appeal to the superior court;
(4) violates a provision of this chapter,
except as otherwise specified in this section, is
subject to a civil penalty of not more than $50 a day
for each day the violation continues as determined by
the commission, subject to right of appeal to the
superior court; and
(5) is assessed a civil penalty may submit
to the commission an affidavit stating facts in
mitigation; however, the imposition of the penalties
prescribed in this section or in AS 15.13.380 does not
excuse that person from registering or filing reports
required by this chapter.
* Sec. 14. AS 15.13.390(d) is amended to read:
(d) When an action has been filed in the
superior court under AS 15.13.380, upon proof of the
violation, the court shall enter a judgment in the
amount of the civil penalty authorized to be collected
under (a) and (g) [BY (a)] of this section.
* Sec. 15. AS 15.13.390 is amended by adding a new
subsection to read:
(g) The amount of a civil penalty assessed on a
daily basis under (a)(1), (2), or (4) of this section
shall be determined as follows for each day the
delinquency or violation continues:
(1) during the first six months, the full
daily penalty provided by (a) of this section;
(2) during months seven to 11, 75 percent
of the daily penalty provided by (a) of this section;
(3) during months 12 to 18, 50 percent of
the daily penalty provided by (a) of this section; and
(4) after 18 months, 25 percent of the
daily penalty provided by (a) of this section."
Renumber the following bill sections accordingly.
1:57:46 PM
CHAIR HOLLAND objected for discussion purposes.
1:58:01 PM
SCOTT OGAN, Staff, Senator Mike Shower, Alaska State
Legislature, explained that Amendment 3 related to penalties for
campaign finance violations. A candidate could pay $91,250 in
fines for a clerical error on their APOC report. Amendment 3
would establish a tiered system for penalties [as shown on page
2, lines 18-28], ranging from a full penalty for the first six
months to 25 percent of the daily penalty after 18 months. He
noted that on day 180 if something came to the attention of
APOC, a candidate would be liable for $9,000 in fines. He
believed that Amendment 3 would establish reasonable amounts and
a reasonable statute of limitations.
2:01:07 PM
SENATOR HUGHES asked if APOC fines were the same for clerical
errors as for something more egregious, such as a person
purposely hiding information.
MR. OGAN said he was unsure.
2:02:37 PM
SENATOR HUGHES restated her question.
MS. HEBDON answered that the maximum penalty is for any
violation, and the degree of violation was not contemplated.
However, under their penalty assessment procedure by regulation,
the commission has some leeway to consider a filer's history,
and certain aggravating factors are used for assessing maximum
penalties. Penalties are regularly reduced from the initial
assessment, and filers can appeal APOC decisions. APOC
encourages people to appeal fines. Although Mr. Ogan based his
maximum penalty figure on a five-year statute of limitations,
Version G reduces it from five years to 2 years. Using the $50
per day maximum penalty would result in $18,250 if nothing was
done during that time. She noted that the penalties would also
apply to sophisticated filers engaged in independent expenditure
activities, large political parties, and Political Action
Committees (PACS). The fines might seem shocking to a candidate,
but $18,250 could be considered the cost of doing business by
the larger groups.
2:05:17 PM
SENATOR SHOWER wondered if fines for individual candidates
should be handled separately from larger groups.
2:05:54 PM
SENATOR HUGHES referred to page 6, line 9, to Section 12 of HB
157, Version G, and Section 13 of Amendment 3. She asked if that
language includes political parties and PACS or solely pertains
to candidates.
2:07:16 PM
At ease
2:10:11 PM
CHAIR HOLLAND reconvened the meeting.
2:10:14 PM
CHAIR HOLLAND asked Senator Hughes to pose her question.
2:10:25 PM
SENATOR HUGHES asked whether the word "person" in Section 12 of
Version G and the word "person" in Section 13 in Amendment 3
relate to a candidate or a group.
MS. KOENEMAN responded that AS 15.13.400 provides definitions
for person, candidate, and group. She stated that Amendment 3
would expand the scope to more than the sponsor intended.
2:11:16 PM
SENATOR HUGHES asked for the definition of "person."
MS. KOENEMAN read AS 15.13.400 [(16)], which read: "'person' has
the meaning given in AS 01.10.060 and includes a labor union,
nongroup entity, and a group."
2:11:47 PM
SENATOR SHOWER stated the intent of Amendment 3 was to limit
onerous APOC fines for unintentional clerical errors by
individual candidates but not make it easy for larger groups to
be malicious since they could absorb the fines.
2:12:36 PM
SENATOR KIEHL asked if this language covers candidates making
innocent mistakes and candidates with which APOC has had ongoing
issues. He further asked whether there were specific APOC
statutes or regulations that could help distinguish between
innocent and willful acts.
MS. HEBDON responded that she was unaware that willful was
contemplated in APOC statutes for campaign disclosure. She
suggested that there might be a prohibition under financial
disclosure laws. She reiterated that when assessing penalties,
APOC considers the filer's history and whether they are
uncooperative, allowing APOC to impose the maximum amount. She
anticipated that staff would provide this information and their
recommendations for the commission's consideration on any
appeal.
2:14:44 PM
SENATOR KIEHL related his understanding that the commission has
a definition of "cooperative."
2:15:00 PM
MS. KOENEMAN directed attention to AS 15.13.390, relating to
civil penalty and late filing of required reports. She said
nothing mentions willful, and the language is vague about APOC's
ability. She noted that APOC regulations provide more leeway.
The statutes establish a civil penalty of not more than $50 a
day for failure to file a properly completed and certified
report timely or a civil penalty of not more than $500 a day for
each day the delinquency continues as determined by the
commission subject to a right of appeal to the superior court.
2:16:15 PM
SENATOR MYERS said he almost ran afoul of APOC with the year-end
filing when he inadvertently reported a $100 check as a $500
check. However, he did not receive notification until two months
after the filing deadline. Fortunately, he could provide proof,
so he was not in violation, and APOC waived the fine. However,
it illustrates how easy it would be to acquire delinquent fees.
2:17:51 PM
SENATOR SHOWER asked whether APOC considers whether the
violation is by a PAC versus an individual.
MS. HEBDON answered no. She stated that the commission has
discretion when issuing a final determination. She said she did
not think the final penalties assessed on candidates had been
overly egregious. She offered her view that there has been a
substantial reason for more significant penalties.
2:20:01 PM
CHAIR HOLLAND removed his objection.
2:20:12 PM
SENATOR SHOWER withdrew Amendment 3.
CHAIR HOLLAND offered his view that the concept for Amendment 3
was valid, but it would need further work to meet the sponsor's
goal.
2:20:55 PM
CHAIR HOLLAND held HB 157 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CS HB 157 (SJUD) version G.pdf |
SJUD 4/8/2022 1:30:00 PM |
HB 157 |
| HB 157 Summary of Changes (version G).pdf |
SJUD 4/8/2022 1:30:00 PM |
HB 157 |
| HB 157 Amendment #1 (G.1).pdf |
SJUD 4/8/2022 1:30:00 PM |
HB 157 |
| HB 157 Amendment #2 (G.2).pdf |
SJUD 4/8/2022 1:30:00 PM |
HB 157 |
| CS for SB 39 (SJUD) version D.pdf |
SJUD 4/8/2022 1:30:00 PM SJUD 4/18/2022 1:30:00 PM SJUD 4/20/2022 1:00:00 PM |
SB 39 |
| SB 39 sectional version D.pdf |
SJUD 4/8/2022 1:30:00 PM |
SB 39 |
| SB 39 Letter of Opposition.docx |
SJUD 4/8/2022 1:30:00 PM |
SB 39 |