Legislature(2025 - 2026)BELTZ 105 (TSBldg)
03/27/2025 03:30 PM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB64 | |
| SB77 | |
| SB116 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 64 | TELECONFERENCED | |
| += | SB 77 | TELECONFERENCED | |
| *+ | SB 116 | TELECONFERENCED | |
SB 116-CAMPAIGN FINANCE, CONTRIBUTION LIMITS
4:17:37 PM
CHAIR KAWASAKI reconvened the meeting and announced the
consideration of SENATE BILL NO. 116 "An Act 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; and relating to campaign contribution reporting
requirements."
4:18:10 PM
JOE HAYES, Staff, Senator Scott Kawasaki, Alaska State
Legislature, Juneau, Alaska, introduced SB 116 on behalf of the
Senate State Affairs Standing Committee, Senator Kawasaki,
Chair:
[Original punctuation provided.]
Sponsor Statement
"An Act 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; and relating to campaign
contribution reporting requirements."
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. But, 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.
4:19:22 PM
MR. HAYES continued with the sponsor statement:
In 2024, Alaska 23RCF2 [ballot initiative] 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. SB 116 mirrors 23RCF2
[ballot initiative].
SB 116 reinstates fair, reasonable, and constitutional
campaign contribution limits adjusted based on
Alaska's consumer price index rates moving forward,
ensuring these limits remain constitutional.
To accomplish this, SB 116 does the following:
• Moves Alaska's campaign contributions to a "per
election cycle" basis.
• Increases the statutory individual-to-candidate
limit from $500 per year to $2,000 per election
cycle and the group-to-candidate limit from
$1,000 per year to $4,000 per election cycle.
• Directs the Alaska Public Offices Commission to
adjust contribution limits for inflation.
These changes address the concerns laid out by the
Ninth Circuit Court of Appeals and United States
Supreme Court precedent while upholding the expressed
desire of Alaskan voters for fair and reasonable
contribution limits and transparency in our elections.
4:21:16 PM
SENATOR YUNDT asked if the committee has in-house legal opinions
on SB 116 and stated the Ninth Circuit and the Supreme Court
have both ruled on different portions of campaign contribution
limits in the past.
4:21:28 PM
CHAIR KAWASAKI answered yes and that he would invite legislative
legal staff to discuss the limits with the committee at the next
hearing of the bill. He referenced a past memo that seemed to
indicate adjusting for inflation would meet legal standards but
said he would share an official memo on SB 116 with the
committee once he receives it.
4:22:17 PM
CHAIR KAWASAKI [announced invited testimony] and opened public
testimony on SB 116.
4:22:50 PM
PAT RACE, representing self, Citizens Against Money in Politics
(CAMP), Juneau, Alaska, testified by invitation on SB 116 and
stated that Alaska's campaign donation limits have bounced
between $500 and $1,000 over the years. He said there was a
lawsuit in 2015 where the courts ultimately said the $500 cap
was too low. The U.S. Supreme Court has ruled that limits are
legal to prevent corruption, but if set too low, they unfairly
protect incumbents and make it harder for challengers to
compete. He said the goal now is to find a fair middle ground
high enough to allow real competition but low enough to prevent
million-dollar donations from overwhelming local elections.
4:26:26 PM
SENATOR YUNDT asked whether this cap is money someone could give
to an independent expenditure or a Political Action Committee
(PAC).
4:26:38 PM
MR. RACE replied that, because of the Citizens United Supreme
Court decision, independent political expenditures may be
unlimited if they are not coordinated with a campaign. This
ruling has led to anonymous spending through outside groups. He
said states can still regulate direct individual donations to
candidates. Raising limits in a balanced way would at least
ensure that large contributions go through super PACswhich
cannot legally coordinate with campaignsrather than directly
influencing candidates.
4:27:47 PM
SENATOR YUNDT expressed concern that even if candidates don't
receive large direct donations, outside groups and PACs will
still spend heavily supporting their preferred candidates.
Unlike candidates, who usually promote their vision positively,
these groups often run negative or misleading campaigns. He said
without limits on independent expenditures, he fears elections
will only become nastier and more dominated by outside money.
4:29:03 PM
SENATOR WIELECHOWSKI stated that it is his belief that unlimited
campaign contributions are damaging to Alaska's political system
and said that Citizens United was one of the worst decisions of
his lifetime. He asked how similar this was to the ballot
initiative.
4:29:27 PM
MR. RACE replied that if the legislature doesn't pass similar
legislation, the unlimited campaign limits will appear in the
2026 ballot. He said advocates would rather avoid running
another campaign since Alaskans have already shown strong
support. Passing the legislation now would ensure reasonable
campaign limits are in place before the 2026 election.
4:30:15 PM
SENATOR WIELECHOWSKI asked if this legislation is the same as
the ballot initiative.
4:30:28 PM
MR. RACE responded it is his belief that this legislation is the
same. He said the proposal raises individual contribution limits
from $500 to $2,000 and group contributions from $1,000 to
$4,000, with adjustments for inflation.
4:30:57 PM
CHAIR KAWASAKI asked why it's necessary to have limits on
individual campaign donations, whether from the donor's
perspective or the candidate receiving them.
4:31:19 PM
MR. RACE replied that large campaign donations can create the
appearance of impropriety, especially in a state with past
corruption scandals like VECO in 2006. He said reasonable limits
on individual contributions help maintain public trust. In 2022,
staff of Alaska's Public Offices Commission (APOC) recommended
new limits, though they weren't formally adopted, and urged the
legislature to revisit campaign finance laws.
4:33:41 PM
SHARMAN HALEY, Activist, Alaska Move to Amend, Anchorage,
Alaska, testified by invitation on SB 116. She paraphrased her
written testimony:
[Original punctuation provided.]
Today we are talking about SB 116. This bill should
not be controversial. It is unassailable legally and
has solid support among your constituents across the
political spectrum. The bill contains the same
language as the Citizen's Initiative that will appear
on the 2026 ballot. But we hope that the Legislature
will pass it this session and save us all the trouble.
4:35:14 PM
MS. HALEY continued with her testimony:
This legislation is legally unassailable because it
was carefully crafted to conform to the five criteria
dictated by the 9th Circuit Court that struck down our
old law. Any grey area that might be grounds for legal
challenge has been eliminated.
It is politically solid because time and again,
Alaskans have expressed their support for strong
campaign finance laws. Alaska's old campaign finance
law, which began as a citizen's initiative, was
enacted by the legislature in 1996. It was one of the
strictest in the country, with contributions limits of
$500. The legislature revisited the issue in 2003,
raising the limit to $1000. But voters stepped up
again in 2006 with another initiative reducing the
limit back to $500. It passed with 73 percent
approval. This week I went down to the state archives
and found that it passed by a wide margin in every
single district of the state. We are saying we want
the law to be strict: it protects our balance of power
as voters and constituents. It limits the
disproportionate influence and corrupting power of big
money in our elections.
In 2020, polling showed that 71 percent of Alaskans
would support a US constitutional amendment restoring
our full authority to set reasonable limits on
political spending in elections, including independent
expenditures. The support is strong across both
political parties and independents.
SB116 will set the limit for an individual
contribution to an individual candidate at $2000.
While I myself might have set the limit at $1000, I
accept the political judgement of the sponsors that
$2000 is more politically viable. The two big
improvements in this bill over the old law are that it
automatically adjusts the limits for inflation once
every ten years, and the limit is per election cycle,
not just per year. I and my fellow Alaskans--your
constituents--support this bill and call on you to
support it too.
4:38:53 PM
CHAIR KAWASAKI asked what she will say to the people if Alaska
limits individual donations but outside groups can still spend
unlimited money against candidates.
4:39:23 PM
MS. HALEY replied that independent expenditures are a major
structural problem but noted progress toward a constitutional
amendment that could restore Alaska's authority to regulate
them. She said while contributions to these groups are
unlimited, the groups must be reported, allowing analysis of who
the major donors are and whether the donors are in- or out-of-
state.
4:41:02 PM
CAROLINE STORM, representing self, Anchorage, Alaska, testified
in support of SB 116 and stated that this bill would reduce the
time candidates spend fundraising, likely lower overall campaign
spending, and keep more money circulating in Alaska.
4:42:45 PM
CHAIR KAWASAKI held SB 116 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 116 Sponsor Statement.pdf |
SSTA 3/27/2025 3:30:00 PM |
SB 116 |
| SB 116 Sectional Analysis.pdf |
SSTA 3/27/2025 3:30:00 PM |
SB 116 |
| SB 116 Fiscal Note.pdf |
SSTA 3/27/2025 3:30:00 PM |
SB 116 |
| SB 116 Campaign Finance Limits - Legislative Presentation.pdf |
SSTA 3/27/2025 3:30:00 PM |
SB 116 |
| SB 116 ltr of support.pdf |
SSTA 3/27/2025 3:30:00 PM |
SB 116 |
| SB 77 ver. N.pdf |
SSTA 3/27/2025 3:30:00 PM |
SB 77 |
| SB 77 Sponsor Statement ver. N.pdf |
SSTA 3/27/2025 3:30:00 PM |
SB 77 |
| SB 77 Sectional Analysis ver. N.pdf |
SSTA 3/27/2025 3:30:00 PM |
SB 77 |
| SB 77 Fiscal Note ver. N.pdf |
SSTA 3/27/2025 3:30:00 PM |
SB 77 |
| SB 77 Letters of Support Receveived as of 2-10-225.pdf |
SSTA 3/27/2025 3:30:00 PM |
SB 77 |
| Alaska Voter Hub Letter of Support for SB116.pdf |
SSTA 3/27/2025 3:30:00 PM |
SB 116 |
| SB64 Version O.pdf |
SSTA 3/27/2025 3:30:00 PM |
SB 64 |
| SB 64 Summary of Changes T to O.pdf |
SSTA 3/27/2025 3:30:00 PM |
SB 64 |
| CS SB 64.W.pdf |
SSTA 3/27/2025 3:30:00 PM |
SB 64 |
| SB 64 Summary of Changes T to W.pdf |
SSTA 3/27/2025 3:30:00 PM |
SB 64 |
| SB 116 Support letter and responses by Pat Race.pdf |
SSTA 3/27/2025 3:30:00 PM |
SB 116 |
| SB 116 ltr of support2.pdf |
SSTA 3/27/2025 3:30:00 PM |
SB 116 |
| SB 116 opposition letter.pdf |
SSTA 3/27/2025 3:30:00 PM |
SB 116 |
| SB 116 ltr of supportSW.pdf |
SSTA 3/27/2025 3:30:00 PM |
SB 116 |