04/09/2010 01:00 PM House JUDICIARY
| Audio | Topic |
|---|---|
| Start | |
| SB43 | |
| SB284 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 244 | TELECONFERENCED | |
| + | SB 43 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 284 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE JUDICIARY STANDING COMMITTEE
April 9, 2010
1:41 p.m.
MEMBERS PRESENT
Representative Jay Ramras, Chair
Representative Carl Gatto
Representative Bob Herron
Representative Bob Lynn
Representative Max Gruenberg
Representative Lindsey Holmes
MEMBERS ABSENT
Representative Nancy Dahlstrom, Vice Chair
OTHER LEGISLATORS PRESENT
Representative Berta Gardner
COMMITTEE CALENDAR
SENATE BILL NO. 43
"An Act adding a second verse to the official Alaska state
song."
- MOVED HCS SB 43(JUD) OUT OF COMMITTEE
COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 284(FIN)
"An Act relating to state election campaigns, the duties of the
Alaska Public Offices Commission, the reporting and disclosure
of expenditures and independent expenditures, the filing of
reports, and the identification of certain communications in
state election campaigns; prohibiting expenditures and
contributions by foreign nationals in state elections; and
providing for an effective date."
- HEARD & HELD
SENATE BILL NO. 244
"An Act providing that, during the governor's term of office,
the duty station of the governor is Juneau, and prohibiting
payment of certain travel allowances for use of the governor's
personal residence."
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: SB 43
SHORT TITLE: SECOND VERSE OF ALASKA'S STATE SONG
SPONSOR(S): SENATOR(S) MENARD
01/21/09 (S) PREFILE RELEASED 1/9/09
01/21/09 (S) READ THE FIRST TIME - REFERRALS
01/21/09 (S) CRA, STA
01/28/10 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
01/28/10 (S) Moved SB 43 Out of Committee
01/28/10 (S) MINUTE(CRA)
01/29/10 (S) CRA RPT 4DP
01/29/10 (S) DP: OLSON, KOOKESH, MENARD, THOMAS
02/04/10 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
02/04/10 (S) <Bill Hearing Canceled>
02/09/10 (S) STA AT 9:00 AM BELTZ 105 (TSBldg)
02/09/10 (S) Moved SB 43 Out of Committee
02/09/10 (S) MINUTE(STA)
02/10/10 (S) STA RPT 5DP
02/10/10 (S) DP: MENARD, FRENCH, MEYER, PASKVAN,
KOOKESH
03/10/10 (S) TRANSMITTED TO (H)
03/10/10 (S) VERSION: SB 43
03/11/10 (H) READ THE FIRST TIME - REFERRALS
03/11/10 (H) STA, JUD
03/25/10 (H) STA AT 9:30 AM CAPITOL 106
03/25/10 (H) Heard & Held
03/25/10 (H) MINUTE(STA)
03/30/10 (H) STA AT 8:00 AM CAPITOL 106
03/30/10 (H) Moved HCS SB 43(STA) Out of Committee
03/30/10 (H) MINUTE(STA)
03/31/10 (H) STA RPT HCS(STA) 3DP 2DNP 1NR 1AM
03/31/10 (H) DP: SEATON, GRUENBERG, PETERSEN
03/31/10 (H) DNP: JOHNSON, GATTO
03/31/10 (H) NR: LYNN
03/31/10 (H) AM: P.WILSON
04/09/10 (H) JUD AT 1:00 PM CAPITOL 120
BILL: SB 284
SHORT TITLE: CAMPAIGN EXPENDITURES
SPONSOR(S): JUDICIARY
02/19/10 (S) READ THE FIRST TIME - REFERRALS
02/19/10 (S) STA, JUD
03/02/10 (S) STA AT 9:00 AM BELTZ 105 (TSBldg)
03/02/10 (S) Moved SB 284 Out of Committee
03/02/10 (S) MINUTE(STA)
03/02/10 (S) STA RPT 5DP
03/02/10 (S) DP: MENARD, FRENCH, MEYER, PASKVAN,
KOOKESH
03/02/10 (S) FIN REFERRAL ADDED AFTER JUD
03/08/10 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
03/08/10 (S) Heard & Held
03/08/10 (S) MINUTE(JUD)
03/12/10 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
03/12/10 (S) Heard & Held
03/12/10 (S) MINUTE(JUD)
03/15/10 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
03/15/10 (S) Heard & Held
03/15/10 (S) MINUTE(JUD)
03/17/10 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
03/17/10 (S) Moved CSSB 284(JUD) Out of Committee
03/17/10 (S) MINUTE(JUD)
03/18/10 (S) JUD RPT CS 3DP 1AM NEW TITLE
03/18/10 (S) DP: FRENCH, WIELECHOWSKI, MCGUIRE
03/18/10 (S) AM: COGHILL
03/23/10 (S) FIN AT 1:30 PM SENATE FINANCE 532
03/23/10 (S) Heard & Held
03/23/10 (S) MINUTE(FIN)
03/29/10 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/29/10 (S) Moved CSSB 284(FIN) Out of Committee
03/29/10 (S) MINUTE(FIN)
03/29/10 (S) FIN RPT CS 4DP 1NR NEW TITLE
03/29/10 (S) DP: HOFFMAN, STEDMAN, THOMAS, EGAN
03/29/10 (S) NR: HUGGINS
04/01/10 (S) TRANSMITTED TO (H)
04/01/10 (S) VERSION: CSSB 284(FIN)
04/05/10 (H) READ THE FIRST TIME - REFERRALS
04/05/10 (H) JUD, FIN
04/07/10 (H) JUD AT 1:00 PM CAPITOL 120
04/07/10 (H) Heard & Held
04/07/10 (H) MINUTE(JUD)
04/09/10 (H) JUD AT 1:00 PM CAPITOL 120
WITNESS REGISTER
SENATOR LINDA MENARD
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SB 43, as the sponsor of the
bill.
MICHAEL ROVITO, Staff
Senator Linda Menard
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered questions during discussion of
SB 43 on behalf of the bill sponsor, Senator Linda Menard.
DAVID WOODLEY, Executive Director of Advancement Services
University of Alaska Foundation
Fairbanks, Alaska
POSITION STATEMENT: Testified and answered questions during
discussion of SB 43.
DARREN FRIDAY
Kake, Alaska
POSITION STATEMENT: Testified in support of SB 43.
CONNIE DAVIS
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 43.
CONNIE MUNRO
Juneau, Alaska
POSITION STATEMENT: Testified during discussion of SB 43.
LORRAINE HOUSEMAN
Anchorage, Alaska
POSITION STATEMENT: Testified during discussion of SB 43.
SIIKAURAQ WHITING, Mayor
Northwest Arctic Borough
Kotzebue, Alaska
POSITION STATEMENT: Testified during discussion of SB 43.
CYRIL GEORGE
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 43.
KAYIST DOUN (ph)
(No address provided)
POSITION STATEMENT: Testified during discussion of SB 43.
WALTER SAMPSON, President
Northwest Arctic Borough Assembly
Kotzebue, Alaska
POSITION STATEMENT: Testified in support for SB 43.
REPRESENTATIVE BRYCE EDGMON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified during discussion of SB 43.
REPRESENTATIVE CHARISSE MILLETT
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified during discussion of SB 43.
JOHN PTACIN, Assistant Attorney General
Labor and State Affairs Section
Civil Division (Anchorage)
Department of Law (DOL)
Anchorage, Alaska
POSITION STATEMENT: Provided comments during discussion of
SB 284.
CHARLES DUNNAGAN
Resource Development Council (RDC)
Anchorage, Alaska
POSITION STATEMENT: Testified during discussion of SB 284.
JASON BRUNE, Executive Director
Resource Development Council (RDC)
Anchorage, Alaska
POSITION STATEMENT: Testified during discussion of SB 284.
ACTION NARRATIVE
1:41:05 PM
CHAIR JAY RAMRAS called the House Judiciary Standing Committee
meeting to order at 1:41 p.m. Representatives Ramras, Herron,
Gatto, Lynn, Gruenberg, and Holmes were present at the call to
order. Representative Gardner was also in attendance.
SB 43 - SECOND VERSE OF ALASKA'S STATE SONG
1:41:56 PM
CHAIR RAMRAS announced that the first order of business would be
SENATE BILL NO. 43, "An Act adding a second verse to the
official Alaska state song."
1:42:44 PM
REPRESENTATIVE HERRON moved to adopt the proposed House
Committee Substitute (HCS) for SB 43(JUD), 26-LS0259\P, Bullard,
4/6/10, as the working document. There being no objection,
Version P was before the committee.
CHAIR RAMRAS explained that Version P contains the second verse
of the Alaska state song as it was originally authored and
copyrighted. He declared his respect for both the culture and
the author.
1:44:54 PM
SENATOR LINDA MENARD, Alaska State Legislature, cited a previous
bill to add this second verse to the state song, Alaska's Flag.
She declared that SB 43 gives recognition to the Native
community by adding a second verse. She proposed that this
second verse does not change the song but, instead, complements
it. She compared the second verse to the Honor and Remembrance
flag, as both serve to complement the history. She recounted
that the 12 lines of the second verse were written in one
evening by Carol Beery Davis. She cautioned that the lack of
punctuation and capitalization should not be second guessed, as
the author was 95 years old and could have written this verse on
an old typewriter. She pointed out that the second verse
celebrates not only the Native people, but also Benny Benson,
the young Native who designed Alaska's state flag. She shared
that Fran Ulmer, UAA Chancellor, supported SB 43, and that Ms.
Ulmer had introduced a similar bill while she was in the
legislature.
SENATOR MENARD emphasized that the content of the second verse
recognized the contributions of Alaska Natives. She quoted
Senator Albert Kookesh:
This is a little step, but it recognizes a Native
person who designed the Alaska flag, it recognizes a
song that says there's no bars in our culture, that
culture will be elevated.
SENATOR MENARD offered her belief that the bill doesn't change
history, "it simply adds to it or complements it." She stressed
the importance of the bill to many people.
REPRESENTATIVE GATTO voiced his strong opposition to the
addition of a second verse to the Alaska state song.
REPRESENTATIVE HERRON asked Senator Menard her reason for
introducing this bill.
SENATOR MENARD replied that she had been asked to introduce it.
She specified that she felt strongly about it, and that the
second verse is a tribute to the Native community. She
emphasized that it is a good bill.
SENATOR MENARD, in response, said that there had been a flag
design contest.
1:54:09 PM
MICHAEL ROVITO, Staff, Senator Linda Menard, Alaska State
Legislature, offered his belief that Benny Benson submitted the
winning entry in the design contest for the Alaska state flag.
REPRESENTATIVE HERRON asked whether a contest was held to write
the first verse of the Alaska state song.
MR. ROVITO replied that he did not know.
CHAIR RAMRAS, referring to the letter from the University of
Alaska Foundation, dated April 7, 2010, [Included in members'
packets] read the final paragraph regarding copyright and use.
He directed attention to Version P, page 2, lines 6-17, and
identified this as "the second verse as it was written by the
author." He surmised that it was "perfect in its construction,
perhaps imperfect in the intent of the author to express certain
wishes that are held by some folks..." He pointed out
Section 2, which is also an addition to Version P. He asked
Mr. Woodley to authenticate the second verse as it appears in
Version P.
1:58:39 PM
DAVID WOODLEY, Executive Director of Advancement Services,
University of Alaska Foundation, declared that the University of
Alaska Foundation has held the copyright to the second verse
since 1986, and he verified that the verse in Version P is
identical. He observed that over the years a number of changes
were proposed that weren't objectionable, such as capitalization
and commas, but that, as time wore on, there were more serious
alterations. He shared a legal opinion from the University
which stated that it would not materially affect the copyright.
He expressed the desire to preserve the second verse in its
originally submitted form. In response to a question, he
relayed that his duties include "all forms of records available
to the foundation, be they electronic or printed copy." He
relayed that the prior archivist is not available, but that the
University of Alaska and the Foundation's history with the state
song were being reconstructed.
REPRESENTATIVE GATTO offered his understanding that any changes
to the song can violate the copyright.
MR. WOODLEY replied that the Foundation did not pursue
violations against changes made by song users. He established
that they wanted to "preserve the intent of the work as a
whole." He relayed that the Foundation had only taken an
aggressive stance in cases of use for purposes that the author
did not intend. He declared an obligation to protect the second
verse, as copyrighted, to the fullest possible extent.
CHAIR RAMRAS asked to clarify that Version P includes the exact
copy of the archived version for the second verse.
MR. WOODLEY concurred.
2:06:26 PM
DARREN FRIDAY offered to sing the second verse for the committee
in order to clarify that the second verse was both flowing and
melodic.
2:09:09 PM
[Mr. Friday then led the group in singing the state song,
Alaska's Flag.]
2:12:18 PM
CONNIE DAVIS shared that she was the daughter of Carol Beery
Davis, the author of the proposed second verse of the state
song. She noted that Marie Drake [author of the state song,
Alaska's Flag] and her mother arrived in Juneau at about the
same time and became lifelong friends. She recalled that her
father was part of the final awards committee to choose the
design for the Alaska flag. She commented that Marie Drake
wrote the first verse so that school children could read and
understand it. She surmised that Ms. Drake would be in favor of
the second verse. She offered that the second verse is in
context with those times. She noted that the American Legion
posts throughout Alaska managed the flag design contest, and
that this was arranged by the Commissioner of Education, whose
secretary was Marie Drake.
2:15:40 PM
CHAIR RAMRAS, referring to a letter from Myron Naneng, Sr.,
President of the Association of Village Council Presidents
(AVCP), which read: [original punctuation provided] [Included
in members' packets]:
Dear Representative Herron;
Please pass on to the House Judiciary Committee that
the Association of Village Council Presidents does not
support the passing of SB 43 as it stands. Instead,
we would rather support a competition open to the
youth of Alaska for any new verses to the Alaska State
Song. A competition open to youth would inspire all
those to participate in creating an wonderful way to
celebrate and honor the State of Alaska through song.
We support the goal of including Alaska Natives in the
proposed new verse, but feel that the words in the
verse itself may be constructed in a more appropriate
manner. Therefore, please consider our recommendation
for a competition.
MS. DAVIS questioned whether a current contest would be in
context with the 1927 flag contest, and speculated that a
current song version might contain rap lyrics.
2:18:02 PM
CONNIE MUNRO reflected on the history of the second verse
discussions during the early 1970s. She remembered that the
Native community had not wanted a second verse writing contest,
and had expressed the possibility that someone would write a
second verse that recognized all the cultures, and offer it as a
gift. She recalled her conversation with Carol Beery Davis
about writing a second verse. When Ms. Davis finally wrote the
second verse at the age of 95, Ms. Munro added, Ms. Davis
offered it as a gift.
MS. MUNRO pointed out that there was not a contest for the first
verse. She suggested there was no reason not to accept this
gift. She stated that the second verse recognized all cultures,
especially the first Alaskans. She emphasized that Alaskan
Natives needed to be recognized in the state song.
2:21:10 PM
LORRAINE HOUSEMAN reflected on the second verse legislation
presented by Fran Ulmer to the legislature in 1987. She
indicated that there was overwhelming resistance for any changes
to the state song, especially from the Pioneers of Alaska. She
offered her belief that the "Alaskans dear" mentioned in the
original song version includes all Alaskans. She opined that
the state song describes the flag and the intent and excitement
of Benny Benson.
MS. HOUSEMAN cited reasons for not changing the state song. She
related that Benny Benson was born in 1913 in Chignik. She
shared that his mother, a Russian Aleut, died when he was three.
His father, a Swede, was a fisherman, and was unable to support
three children, so he took Bennie to an orphanage in Unalaska.
She read from transcripts written by Benny Benson, recorded
between 1967- 72:
I had a hard time holding back tears as I was leaving
my brother, Carly, my other buddies, and missionaries
to go help my dad at his fox farm near Chignik, and to
meet my step-mother, Annie, for the first time.
Thinking back, I must say that the sixteen years that
I spent at the Jesse Lee Home was some of the happiest
years of my life, which may be hard for some to
believe, especially with some of the tales told about
storms at Unalaska. The mission taught me to love God
and my neighbors, to respect my elders, and to care
for others in need.
MS. HOUSEMAN shared that he was a humble, giving person that
everyone loved, and then read on:
I could never express in words the gratitude I feel
for the loving care given to my brother Carly and
myself by those devoted Methodist missionaries.
Whenever I hear the Alaska flag song, with the words
of the poem, written by Marie Drake in 1927, and which
were put to music by Elinor Dusenbury in 1940, I get a
tingle down my spine as memories of the Jesse Lee
Mission come to mind, especially of those times we
sang together at the old piano, or organ, at Unalaska.
It was in 1955 when I met Marie Drake in Seattle, and
we were photographed together. She was a lovely
person and I carried that photo of us with me for many
years.
MS. HOUSEMAN relayed that Benny went to the Alaska Native
Hospital in Anchorage, in 1967, for circulation problems in his
legs. She read from an interview with him by the Anchorage
Daily Times:
He tried art on for size via the adult evening class
route in Kodiak, but lost interest almost immediately.
"It wasn't for me," he said. However, Benson works
well with his hands and considers himself no slouch
when it comes to designing small water crafts, skiffs,
and things of that sort. Benson is proud of his flag,
but reserves his out and out enthusiasm for the Alaska
flag song. As a matter of fact, he thinks it can sit
right up there comfortably next to America the
Beautiful and the National Anthem. "Like the flag, it
fits the state," he said.
MS. HOUSEMAN opined that as he was so proud of the song, there
was nothing more that could be added to honor him. She
recounted that he was a member of the Kodiak Native Association,
the Kodiak Elk Lodge, and the American Legion. She expressed
her disagreement with adding a second verse to the Alaska state
song.
2:33:05 PM
CHAIR RAMRAS, referring to an article in the Fairbanks Daily
Miner by Dermot Cole, read:
This is what the 13 year old Benson said of his simple
design, chosen as a winner out of 142 entries. "The
blue field is for the Alaska sky and the forget-me-
not, an Alaska flower. The North Star is for the
future state of Alaska, the most northerly in the
Union. The Dipper is for the Great Bear, symbolizing
strength." Davis applied her own interpretation about
Benson's design which differs from his. She opened
her verse with the words, "A native lad chose the
Dipper's stars for Alaska's flag that there be no bars
among our cultures." In a legislative hearing on
Tuesday, our colleague Senator Albert Kookesh claimed
that not adopting Davis' words would be a refusal to
honor Benny Benson. "If we don't want to recognize
Benny Benson through the second verse, then the
individuals who are going to be hurt are not the non-
Native people of the state, it's the Native people of
the state."
2:34:42 PM
SIIKAURAQ WHITING, Mayor, Northwest Arctic Borough, reflected on
the amazing diversity within Alaska. She pointed out that
visitors came to see the diversity of enriching cultures. She
supported the original song to celebrate the cultures within the
state.
2:36:43 PM
CYRIL GEORGE shared that he feels that the words run deep with
the people who wrote them, as they tell others why they fell in
love with the land. He said he was taught to take good care of
the land, and that it will always feed you, and you learn to
love the land. He reflected on growing up at Sheldon Jackson
School, and reading about great athletes who were natives of a
place, but not Indian. He noted that Juneau had seen many
changes.
MR. GEORGE reminisced about the "whites-only" signs, and his
father's difficulty in explaining them. He expressed his
support for the words of the Alaska flag song, and his awe for
songwriters. He stated the need to "keep working in that
direction" for making Alaska the best state in the Union.
2:44:25 PM
KAYIST DOUN (ph) explained that although the Tlingit society is
matrilineal, when she introduces herself, she also honors her
father. This reflects an honor and a balance created by her
parents. She shared that her mother knew Carol Beery Davis and
appreciated her respect for the Native culture. She offered her
opinion that both Trevor Davis and Carol Beery Davis were
"giants in their respect for the Native culture." She surmised
that the proposed second verse recognizes not only Benny Benson,
but also Carol Beery Davis.
2:47:05 PM
WALTER SAMPSON, President, Northwest Arctic Borough Assembly,
pointed out that Alaska is home to all of us, and is a diverse
culture. He expressed an appreciation for the opportunity of
communities to offer input on issues discussed on a state level.
He said he supports the addition of a second verse in SB 43. He
directed attention to the first line of the second verse, which
"talks about natives, we are all native Alaskans." He pointed
to the third line and the tenth line which both reference
cultures, and he said, as the word is plural, it means diverse
cultures. He noted that line four refers to natives, not
native, and he opined we are all native Alaskans. He offered
his belief that the second verse of the Alaska flag song in SB
43 represents all Alaskans.
2:51:17 PM
CHAIR RAMRAS, after ascertaining that no one else wished to
testify, closed public testimony on SB 43. He reflected that
the testimonies had served to "re-center us."
REPRESENTATIVE LYNN offered his belief that the Alaska flag song
is an anthem, and is shown special respect.
REPRESENTATIVE GATTO again expressed his disfavor with adding a
second verse to the Alaska state song, opining that the song
should be retained as is for historical purposes. He stated
that he wanted "to protect the history."
CHAIR RAMRAS offered a reminder that Version P contains the
original language of the second verse as written by Carol Beery
Davis.
2:58:54 PM
REPRESENTATIVE BRYCE EDGMON, Alaska State Legislature, relayed
that he is a singer, a song writer, and an Alaska Native. He
shared that he knows both the songwriting craft and the Alaska
Native issues quite well. He acknowledged the heartfelt
testimonies and agreed that adding a second verse was more than
the mere act of extending the song. He cautioned members
against proposing that the words are for or against any issues.
He stated that he has never heard the second verse sung in
Southwest Alaska. He opined that if a second verse is added,
the words should exemplify the prominence of Alaska Natives. He
expressed his comfort with the first verse, and he suggested
that the addition of a second verse should include the input of
all Alaskans, on a statewide level.
3:04:10 PM
REPRESENTATIVE CHARISSE MILLETT, Alaska State Legislature,
shared that the Alaska state song is very important to all
Alaskans. She opined that the second verse was not meant to be
divisive, but has become so. She wondered what would be the
reaction of the author, Marie Drake. She agreed that it was
necessary to honor each other, and to understand and honor the
many cultures that are in Alaska. She said that she thinks the
song is perfect [as is].
REPRESENTATIVE HOLMES acknowledged that this is a heartfelt
issue for both sides, and expressed her desire for the bill to
move forward to the House floor to allow all the members an
opportunity to debate the bill.
REPRESENTATIVE GRUENBERG reflected on the necessity to move
forward together as Alaskans. He stated that all things that
can bring us together can also be used to drive people apart.
He expressed hope that the bill will help bring people together.
He offered his support of the bill.
3:10:28 PM
REPRESENTATIVE GRUENBERG moved to report HCS SB 43(JUD), 26-
LS0259\P, Bullard, 4/6/10 out of committee with individual
recommendations.
REPRESENTATIVE GATTO objected.
A roll call vote was taken. Representatives Lynn, Gruenberg,
Holmes, Herron, and Ramras voted in favor of HCS SB 43(JUD), 26-
LS0259\P, Bullard, 4/6/10. Representative Gatto voted against
it. Therefore, HCS SB 43(JUD) was reported out of the House
Judiciary Standing Committee by a vote of 5-1.
The committee took an at-ease from 3:11 p.m. to 3:15 p.m.
SB 284 - CAMPAIGN EXPENDITURES
3:15:01 PM
CHAIR RAMRAS announced that the final order of business would be
CS FOR SENATE BILL NO. 284(FIN), "An Act relating to state
election campaigns, the duties of the Alaska Public Offices
Commission, the reporting and disclosure of expenditures and
independent expenditures, the filing of reports, and the
identification of certain communications in state election
campaigns; prohibiting expenditures and contributions by foreign
nationals in state elections; and providing for an effective
date."
3:19:34 PM
JOHN PTACIN, Assistant Attorney General, Labor and State Affairs
Section, Civil Division (Anchorage), Department of Law (DOL),
explained that DOL feels that Alaska's expenditure restrictions
on corporations, labor unions, and other entities is likely
unconstitutional. He noted that SB 284 considers the current
disclaimer and disclosure laws and changes the law for
restricting expenditures by corporations and labor unions in
candidate elections. He allowed that disclosure and disclaimer
laws are still given a lot of scrutiny, as they uncover hidden
interests and deter reporting violations. He emphasized that
disclaimer and disclosure laws still need to show that they are
only a modest burden on free speech rights.
3:22:17 PM
CHARLES DUNNAGAN, Resource Development Council (RDC), referring
to Section 10 on page 5, opined that the general rule for
expenditures and contributions by foreign nationals tracked
federal law, but he directed attention to line 29, (b)(5), which
disallowed election contributions from domestic subsidiaries.
He offered his belief that this created a class of U.S.
corporations that no longer have First Amendment rights in an
Alaskan election. He pointed out that contributions by foreign
nationals are already illegal in a state election. He opined
that this would add a new class of person to be discriminated
against.
MR. DUNNAGAN explained that domestic subsidiaries of American
corporations have been given a right to participate in
elections, but that subsection (b)(5) eliminates that right. He
said that it was not necessary to create a rule to prevent
direct and indirect contributions from foreign nationals because
it was already illegal. He opined that this created concerns
for First Amendment, due process, and equal protection rights.
He expressed concern for the drafting of parts of the bill. He
pointed to proposed AS 15.13.068(b)(2)-(4), which defines
domestic subsidiary and noted that there was not a mention of
individual foreign nationals. He said that for an individual
foreign national with a wholly owned corporation, the domestic
subsidiary rule did not apply, while an Alaskan working for a
company of more than 50 percent foreign ownership could not
participate in an election campaign. He commented that issuing
public traded stock was how American businesses raised money.
He opined that this change could affect the investment decisions
of foreign investors.
MR. DUNNAGAN referred to a March 17, 2010, memorandum from
Legislative Legal and Research Services [Included in members'
packets.] which raised questions for the right of Alaska to pass
a law different than federal law and regulation. He stated that
this part of SB 284 is badly drafted legislation. He directed
attention to page 6, lines 3-7, subsection (c), which "prohibits
conduct only to the extent that federal law prohibits the same
conduct." He referred back to page 5, line 29, (b)(5), and
noted that this was not in federal law, and opined that
subsection (c) would nullify subsection (b)(5). He stated that
courts do not like to interpret legislation as nullifying
itself. He called this section "a complete litigation magnet"
and that there was no idea how the court will interpret it. He
emphatically stated that he "cannot see how this provision has
anything to do with disclaimer or disclosure rules."
CHAIR RAMRAS agreed that he wants to encourage disclosure but
did not want to limit discourse.
REPRESENTATIVE GRUENBERG asked if the concern was for all of
Section 10, or solely for subsection (b)(5).
MR. DUNNAGAN, responding to Representative Gruenberg, offered
his belief that all of Section 10 is problematic, as it parrots
existing law. He reflected that Section 10(b)(5) "is a mess and
it's clearly unconstitutional."
3:31:41 PM
REPRESENTATIVE GRUENBERG directed attention to paragraph (5),
and asked if Mr. Dunnagan was aware of any other jurisdiction
that has enacted anything similar, and if there was a court
challenge.
MR. DUNNAGAN replied no.
REPRESENTATIVE GRUENBERG asked whether there was federal
precedent for Section 10, if paragraph (5) were eliminated.
MR. DUNNAGAN agreed.
REPRESENTATIVE GRUENBERG asked if any states have enacted state
laws similar to that remainder of Section 10 [without paragraph
(5)].
MR. DUNNAGAN replied that he did not know.
REPRESENTATIVE GRUENBERG asked about any court cases for
challenges to similar federal legislation.
MR. DUNNAGAN replied that there were none, and he was not aware
of any pending litigation.
REPRESENTATIVE GRUENBERG asked if there was concern with any
other provisions of SB 284.
MR. DUNNAGAN replied that his comments and concerns were for
Section 10 specifically.
REPRESENTATIVE GRUENBERG offered his belief that one potential
reason for including subsection (b)(5) would be to:
Prevent a foreign national that would be precluded
from contributing, from simply forming a domestic
subsidiary to get around the law. It seems to me that
there is an old equity maxim that says 'the law will
not permit something to be done indirectly that could
not be done directly.' Isn't this a valid state
purpose to prevent somebody from setting up a shell
domestic corporation to evade the general prohibition?
3:35:02 PM
MR. DUNNAGAN agreed, but then he questioned the agenda for what
is currently written. He relayed that it is a difficult
question, especially as to how many levels [of corporate
ownership] this would apply. He pointed out that there are not
many definitions and almost no court guidance. He again voiced
his belief that direct and indirect contributions from foreign
nationals are illegal. Referring to domestic subsidiaries, he
said that indirect contributions are already illegal. He said
that SB 284 creates a problem, as it will not allow foreign
nationals a 51 percent ownership in a business, and this will
make it difficult for a business to raise capital. He opined
that SB 284 goes beyond what is necessary to protect Alaska from
inappropriate influence from foreign nationals.
REPRESENTATIVE GRUENBERG replied that SB 284 did not prohibit
foreign ownership; it only prohibited a political contribution
from the business. He posited that if the only reason to set up
a domestic subsidiary was for its political contributions, then
it would be a sham.
MR. DUNNAGAN responded that he did not agree, as the reference
in SB 284 was to "domestic corporations controlled by a foreign
entity." He opined that with the passage of SB 284, a business
could follow lawful procedures and yet violate the law, which
itself would be a violation of both the First Amendment and the
United States Supreme Court's ruling in Citizens United v.
Federal Election Commission.
3:38:53 PM
JASON BRUNE, Executive Director, Resource Development Council
(RDC), shared that the RDC had been actively involved in ballot
measures, including "the cruise ship head tax initiative, the
gas reserves initiative, and the clean water initiative." He
went on to say:
The industries that were targeted by these initiatives
have spent billions of dollars investing in this
state. Each industry employs hard working Alaskans,
and each pays significant taxes to the state treasury.
Be it fishing, tourism, oil and gas, or mining, RDC
members have a vested interest in defending their
investments. By doing business in Alaska these
businesses have demonstrated that they have a dog in
any initiative fight and they should be allowed to
participate in the process. However, ... [proposed AS
15.13.068] appears to potentially impact an investor's
ability to fight an initiative that targets them
because they are a domestic subsidiary of a foreign
corporation.
MR. BRUNE offered his understanding that according to
Legislative Legal and Research Services, proposed AS 15.13.068
only applies to a domestic subsidiary of a foreign national to
the extent that the foreign national is making the decision or
is financing that domestic subsidiary's involvement in a state
election, and does not prohibit a domestic subsidiary of a
foreign national from involving itself in state elections if
it's using money that was made in Alaska or the United States,
and the decision to spend the money was made by the domestic
subsidiary Offering some examples, he pointed out that that
interpretation only raises more questions such as who is it
that's ultimately making the decision to spend money to defend a
company against initiatives, and whether the bill would apply in
situations where the domestic entity isn't yet making money in
Alaska. He urged the committee to either clarify proposed AS
15.13.068 or delete it entirely. In conclusion, he stated that
the RDC supports open discourse, open disclosure, and
transparency in election campaigns, but is very much opposed to
any law that would prohibit contributions that would allow RDC
members to fight initiatives that target their industries.
3:43:05 PM
REPRESENTATIVE GRUENBERG agreed that Section 10 was "not just
the disclosure, it's prohibition," and stated that he understood
the concern.
CHAIR RAMRAS concurred, stating that it limits discourse, and he
stated concern that it would limit commerce.
REPRESENTATIVE GRUENBERG asked whether there is any precedent
supporting the argument that it is unconstitutional to deny this
type of free expression, a prohibition against expenditures by a
foreign national.
MR. BRUNE offered to research the issue and respond immediately.
REPRESENTATIVE GRUENBERG asked that Mr. Ptacin also respond to
the same question on precedents.
[CSSB 284(FIN) was held over.]
3:46:32 PM
ADJOURNMENT
There being no further business before the committee, the House
Judiciary Standing Committee meeting was adjourned at 3:46 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 01 Proposed HJUD CS version P.pdf |
HJUD 4/9/2010 1:00:00 PM |
|
| 02 SB43 Sponsor Statement.pdf |
HJUD 4/9/2010 1:00:00 PM |
SB 43 |
| 03 SB43 HSTA version E.pdf |
HJUD 4/9/2010 1:00:00 PM |
SB 43 |
| 04 SB43 GOV Fiscal Note.pdf |
HJUD 4/9/2010 1:00:00 PM |
SB 43 |
| 05 SB43 Support.pdf |
HJUD 4/9/2010 1:00:00 PM |
SB 43 |