03/23/2010 01:30 PM Senate FINANCE

SENATE BILL NO. 284                                                                                                           
                                                                                                                                
     "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;  and  providing for  an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
2:12:51 PM                                                                                                                    
                                                                                                                                
SENATOR HOLLIS  FRENCH discussed  the legislation.  The bill                                                                    
addresses  issues relating  to corporations  and unions  and                                                                    
the   independent   expenditures   made  for   and   against                                                                    
candidates during an election. He  pointed out Section 4 and                                                                    
disclosure of  expenditures made by unions  and corporations                                                                    
for  and against  candidates. He  noted  replacement of  old                                                                    
language on  Page 2, Line  6 concerning dues  of commission.                                                                    
He  described  many  instances in  the  bill  where  similar                                                                    
changes occur.  He stated that  "person" refers  to everyone                                                                    
with a broad definition.  He mentioned added provisions that                                                                    
require that  the expenditures be  made from  an independent                                                                    
account  as  shown  in  Section   8.  Section  10  prohibits                                                                    
expenditures by foreign nationals.                                                                                              
                                                                                                                                
2:16:15 PM                                                                                                                    
                                                                                                                                
Senator  French  referred  to  Section  13,  the  disclaimer                                                                    
section.  He mentioned  that the  disclaimer  refers to  the                                                                    
"paid  for by"  section  of campaign  advertising. He  noted                                                                    
that the disclaimer necessary in radio ads was shortened.                                                                       
                                                                                                                                
2:18:16 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman asked  about Page  9, Section  18. Senator                                                                    
French explained  the Section describes a  current provision                                                                    
that replaces  the phrase "candidate, group,  or individual"                                                                    
with  "person"  to  bring in  the  corporations  and  unions                                                                    
working with elections.                                                                                                         
                                                                                                                                
Co-Chair  Stedman asked  about  punishment for  unscrupulous                                                                    
behavior. Senator French  responded that campaign misconduct                                                                    
in the second degree is  a Class B misdemeanor punishable by                                                                    
a $1000 fine and 90 days in jail.                                                                                               
                                                                                                                                
Senator Huggins asked about the  $100 plateau. He noted that                                                                    
many candidates receive $99 contributions.  He asked why all                                                                    
contributions are  not reportable. Senator  French responded                                                                    
that  all contributions  are  reportable;  the $100  plateau                                                                    
requires  information such  as the  contributor's occupation                                                                    
and employer.  He expressed comfort  in total  disclosure of                                                                    
contributions to corporations and unions.                                                                                       
                                                                                                                                
Senator  Huggins asked  how this  provision  applies to  the                                                                    
Pebble   Mine.   Senator    French   answered   that   those                                                                    
expenditures  would not  be immediately  identified by  this                                                                    
bill.                                                                                                                           
                                                                                                                                
Senator Huggins  asked how  the bill  affects a  phone bank.                                                                    
Senator  French  responded  that   if  the  phone  bank  was                                                                    
sponsored by  a candidate, this  bill would have  no impact.                                                                    
He supposed  that the  phone bank  communication transmitted                                                                    
by auto media  must be accompanied by a  disclaimer as shown                                                                    
on Page 8, Lines 4, 5, 6, and 7.                                                                                                
                                                                                                                                
2:22:29 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman mentioned  one zero  fiscal note  from the                                                                    
Office of the  Governor and one fiscal impact  note from the                                                                    
Department  of  Administration   requesting  one  additional                                                                    
staff person  for the Alaska  Public Offices  Commission for                                                                    
the amount of $131,200.                                                                                                         
                                                                                                                                
2:23:02 PM                                                                                                                    
                                                                                                                                
SCOTT   SMITH,   ALASKA   BROADCASTER'S   ASSOCIATION   (via                                                                    
teleconference) requested  clarification of Page 1,  Line 11                                                                    
specifying  the   effect  of   the  legislation   on  ballot                                                                    
propositions. Senator French noted  that the mentioned piece                                                                    
exists already  in statute. The  change on Page 1,  Lines 9,                                                                    
10, 11  is the  elimination of  qualifiers. The  chapter now                                                                    
applies to any person making  a communication for or against                                                                    
a ballot proposition.                                                                                                           
                                                                                                                                
Mr. Smith communicated that the  broadcasters agree with the                                                                    
need  for  transparent  elections  and  full  disclaimer  of                                                                    
messages for  the general population.  He expressed  a small                                                                    
concern about  the percent of  a given message  required for                                                                    
multiple  contributors.  He  suggested that  an  alternative                                                                    
dimension   of  the   commercial  message   communicate  the                                                                    
additional contributors. The  clarification would then allow                                                                    
the limit of the disclaimer not  to exceed 33 percent of any                                                                    
given 30 second message.                                                                                                        
                                                                                                                                
2:26:10 PM                                                                                                                    
                                                                                                                                
MATT  WALLACE, ALASKA  PUBLIC INTEREST  RESEARCH GROUP  (via                                                                    
teleconference) testified in support of the legislation.                                                                        
                                                                                                                                
2:28:11 PM                                                                                                                    
                                                                                                                                
JASON    BRUNE,    RESOURCE   DEVELOPMENT    COUNCIL    (via                                                                    
teleconference),  testified in  support of  the legislation.                                                                    
He pointed  out Section  15, Page  5 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.  The   Resources  Development  Council                                                                    
(RDC) supports open disclosure  and transparency in election                                                                    
campaigns,  however   are  opposed  to  a   law  prohibiting                                                                    
contributions that  allow RDC  members to  fight initiatives                                                                    
that target their industries.                                                                                                   
                                                                                                                                
2:30:08 PM                                                                                                                    
                                                                                                                                
Senator Huggins  discussed Mr.  Brune's testimony  and asked                                                                    
if  Alaska is  in compliance  with the  Federal Government's                                                                    
process.                                                                                                                        
                                                                                                                                
ALPHEUS BULLARD,  LEGISLATIVE LEGAL SERVICES  responded that                                                                    
Paragraph 5  applies to a  domestic subsidiary of  an entity                                                                    
described in  Paragraph 2  of 4. The  entity described  is a                                                                    
foreign national.  The paragraph does not  prohibit domestic                                                                    
subsidiaries or corporations.                                                                                                   
                                                                                                                                
Senator  Huggins  requested further  clarification.  Senator                                                                    
French stressed the  importance of creating a  bill that can                                                                    
be  easily   understood.  He  offered  to   provide  further                                                                    
assistance and explanation for Senator Huggins.                                                                                 
                                                                                                                                
SB  284  was  HEARD  and   HELD  in  Committee  for  further                                                                    
consideration.