Legislature(2009 - 2010)BELTZ 105 (TSBldg)
03/15/2010 01:30 PM Senate JUDICIARY
| Audio | Topic |
|---|---|
| Start | |
| SB244 | |
| SB153 | |
| SB284 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 244 | TELECONFERENCED | |
| += | SB 284 | TELECONFERENCED | |
| + | SB 153 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 284-CAMPAIGN EXPENDITURES
2:06:40 PM
CHAIR FRENCH announced the consideration of SB 284 and asked for
a motion to adopt the proposed committee substitute (CS). It
incorporates the amendments that were made to version A during
the 3/12/10 hearing.
SENATOR MCGUIRE moved to adopt the judiciary work draft CS for
SB 284, labeled 26-LS1448\R, as the working document. There
being no objection, version R was before the committee.
CHAIR FRENCH noted that Mr. Bullard sent a memo pointing out
that the provisions on page 6, lines 5-7, and on page 7, lines
28-30, are redundant. He suggested the committee consider
removing the redundancy.
CHAIR FRENCH moved to adopt Amendment 1.
AMENDMENT 1
OFFERED IN THE SENATE
TO: CSSB 284(JUD), Draft Version "R"
Page 6:
Delete lines 5, 6, and 7
SENATOR WIELECHOWSKI objected for discussion purposes.
CHAIR FRENCH explained version R adds the requirement in Sec.
15.13.090(a)(2)(E) that the communication must clearly state
that it is not authorized, paid for, or approved by the
candidate. The existing AS 15.13.135(b)(2), on page 7, lines 28-
30, already provides that requirement.
SENATOR WIELECHOWSKI removed his objection to Amendment 1.
CHAIR FRENCH found no further objection and announced that
Amendment 1 is adopted.
He noted that the second point in Mr. Bullard's memo addressed
in an amendment proposed by Senator Coghill.
CHAIR FRENCH moved Amendment 2, labeled 26-LS1448\R.2, and
objected for discussion purposes.
AMENDMENT 2
OFFERED IN THE SENATE BY SENATOR COGHILL
TO: CSSB 284(JUD), Draft Version "R"
Page 7, following line 30:
Insert a new bill section to read:
"* Sec. 16. AS 15.56.014(a) is amended to read:
(a) A person commits the crime of campaign
misconduct in the second degree if the person
(1) knowingly circulates or has
written, printed or circulated a letter,
circular, or publication relating to an election,
to a candidate at an election, or an election
proposition or question without the name and
address of the author appearing on its face;
(2) except as provided by
AS 15.13.090(b), knowingly prints or publishes an
advertisement, billboard, placard, poster,
handbill, paid-for television or radio
announcement, or communication, as that term is
defined in AS 15.13.400, intended to influence
the election of a candidate or outcome of a
ballot proposition or question without the words
"paid for by" followed by the name and address of
the person [CANDIDATE, GROUP, OR INDIVIDUAL]
paying for the advertising or communication and,
if a candidate or group, with the name of the
campaign chair;
(3) knowingly makes a communication,
as that term is defined in AS 15.13.400,
(A) containing false factual
information relating to a candidate for an
election;
(B) that the person knows to be
false; and
(C) that would provoke a
reasonable person under the circumstances to
a breach of the peace or that a reasonable
person would construe as damaging to the
candidate's reputation for honesty or
integrity, or to the candidate's
qualifications to serve if elected to
office."
Renumber the following bill sections accordingly.
SENATOR COGHILL said the amendment is based on Mr. Bullard's
legal analysis that the phrase "candidate, group, or individual"
should be amended to "person" to correspond to the changes the
bill made to AS 15.13.090.
2:11:14 PM
ALPHEUS BULLARD, Attorney, Legislative Legal and Research
Services, explained that the bill amends AS 15.13.135(b) on page
7, line 20, by replacing "individual, group, or nongroup entity"
with "person" to correspond with the U.S. Supreme Court holding
in Citizens United to capture that universe of people who are
now allowed to make communications. The purpose of the amendment
is to make a similar replacement in AS 15.56.014(a)(2) for
campaign misconduct.
CHAIR FRENCH observed that the only change Amendment 2 makes is
to replace the phrase "candidate, group, or individual" with the
word "person" on page 1, line 15.
SENATOR COGHILL said the amendment conforms bill Section 15 to
AS 15.56.014(a).
MR. BULLARD said that's correct.
CHAIR FRENCH asked if the crime of campaign misconduct in the
second degree is a class B misdemeanor.
MR. BULLARD agreed that it is a class B misdemeanor.
CHAIR FRENCH removed his objection to Amendment 2. Finding no
further objection, he announced that Amendment 2 is adopted.
2:14:21 PM
CHAIR FRENCH moved to adopt Amendment 3, labeled 26-LS1448\R.1,
and objected for discussion purposes.
AMENDMENT 3
OFFERED IN THE SENATE BY SENATOR COGHILL
TO: CSSB 284(JUD), Draft Version "R
Page 5, line 18, through page 6, line 7:
Delete all material and insert:
"Sec. 15.13.090. Identification of communication.
(a) All communications shall be clearly identified by
the words "paid for by" followed by the name and
address of the person [CANDIDATE, GROUP, NONGROUP
ENTITY, OR INDIVIDUAL] paying for the communication.
In addition, a person shall clearly
(1) provide the person's address, or the
address of the person's principal place of business;
(2) for a person other than an individual
or candidate, include
(A) the name and title of the person's
principal officer;
(B) a statement from the principal
officer approving the communication; and
(C) the name and city and state of
residence or principal place of business, as
applicable, of each of the person's three largest
contributors under AS 15.13.040(e)(5), if any, during
the 12-month period before the date of the
communication; and
(3) for a candidate, include
(A) the name of the candidate; and
(B) a statement from the candidate
approving the communication [CANDIDATES AND GROUPS MAY
IDENTIFY THE NAME OF THEIR CAMPAIGN CHAIRPERSON]."
Page 6, lines 19 - 20:
Delete "(a)(2)(C) of this section and, if
applicable, (a)(2)(D)"
Insert "(a)(1) and (a)(2)(C)"
Page 6, line 29:
Delete "AS 15.13.090(a)(2)(D)"
Insert "AS 15.13.090(a)(2)(C)"
SENATOR COGHILL said the amendment deletes and rewrites much of
Section 11, basically making three changes. First, it requires
identification in all circumstances; second, it deletes the
redundant subparagraph (E) on page 6, which was already
accomplished with the adoption of Amendment 2; and third, it
changes the requirement to identify the top five contributors to
require identification of the top three contributors.
SENATOR COGHILL said that he supports full disclosure but he
objects if that's all that people will hear during a campaign
advertisement. All these campaign finance contributions will
have to be reported in the aggregate of over $100 in the
campaign finance disclosure anyway so this requirement is
onerous, he said. Thus, reducing the number to three is
appropriate.
2:17:30 PM
CHAIR FRENCH referred to lines 17-19 of the amendment and asked
if the idea is that in every normal campaign advertisement a
candidate would be required to state their name and that they
approve the message
SENATOR COGHILL said yes and version R on page 5, lines 18-22,
basically says that.
SENATOR MCGUIRE offered the view that the amendment attempts to
replace subparagraph (E) on page 6 by putting it in the
affirmative and said she would argue that doing so makes it
unduly burdensome and possibly an interference.
2:19:53 PM
CHAIR FRENCH called a point of order; lines 9-16 of the
amendment describe the disclosure requirements for a
corporation, union, or group.
SENATOR COGHILL agreed.
SENATOR MCGUIRE said she understood.
CHAIR FRENCH noted that version R requires that those
disclosures be audible in radio or television advertisements. He
asked Senator Coghill if he envisions lines 9-16 of the
amendment to be text on a screen or audible.
SENATOR COGHILL replied he believes that a different section of
the statute requires disclosures to be audible for radio.
CHAIR FRENCH agreed; Section 12 of the current draft modifies AS
15.13.090 adding a new subsection to jibe with (a)(2)(C).
CHAIR FRENCH said his understanding is that the amendment
requires identification of the three largest contributors
instead of the top five tracked over a 12 month period and it
adds a requirement that the candidate approve his or her own
campaign advertisements. He asked Mr. Bullard if he agrees.
2:23:35 PM
MR. BULLARD replied it also shifts the disclosure. First, the
amendment drops the provision that the candidate or group may
identify the campaign chair. It requires that all persons are
required to provide the identifying information. In the current
draft it was only a person other than a candidate, individual,
or political party who was required to do that. Then it tracks
in a similar, but not exact, fashion all the requirements of the
bill except the top five contributors are narrowed to the top
three. The 12 month period is the same in both the amendment and
the bill. The requirement that candidates name themselves and
provide a statement approving the communication is new.
CHAIR FRENCH commented that he likes the idea that everybody
provides the person's address or principle place of business,
but not much else.
SENATOR WIELECHOWSKI said he could support the amendment with
some modifications, but not as currently written.
CHAIR FRENCH suggested the committee vote on the amendment and
depending on the outcome the bill might need further amending
before it is passed along to the next committee.
2:26:38 PM
SENATOR COGHILL said he's willing to withdraw the amendment, but
he would like an opportunity to try to establish what should be
a requirement for both a candidate and a corporation because he
foresees a legal entanglement involving unequal treatment if
there is no similarity between the requirements.
CHAIR FRENCH asked if he is withdrawing the amendment.
SENATOR COGHILL withdrew Amendment 3.
2:28:53 PM
SENATOR WIELECHOWSKI said he'd like to hear from legislative
legal about whether or not there is an equal protection argument
for having different requirements for candidates versus
corporations.
MR. BULLARD responded he wasn't prepared to offer an off-the-
cuff legal response, but he would have an answer on Wednesday.
2:29:44 PM
CHAIR FRENCH asked if the committee had additional concerns or
suggestions.
SENATOR WIELECHOWSKI asked if Mr. Bullard could comment on
whether or not they could restrict campaign activities of
corporations or unions that have foreign shareholders.
MR. BULLARD explained that federal law already prohibits foreign
nationals from involving themselves in federal, state, and local
elections. In some cases this extends to American corporations
or American subsidies of foreign corporations where foreign
nationals are directing decisions regarding how they involve
themselves in the U.S. electoral processes. There are possible
federal preemption arguments if the state were to involve itself
in attempting to regulate or govern American corporations with
foreign ownership or some portion of foreign ownership in this
same field. There is no immediate and clear answer to the
question, he concluded.
2:31:29 PM
SENATOR WIELECHOWSKI said his concern is that a foreign
government or foreign corporation could set up in Alaska and
attempt to influence elections in the state. He asked if he's
saying that there's nothing the Legislature can do about that.
MR. BULLARD replied that situation is already prohibited by
federal law. An American subsidiary of a foreign corporation has
to use proceeds from its American operations to fund any sort of
involvement in an American election. If the American subsidiary
receives direction on how to proceed from overseas or if it is
being reimbursed by the foreign parent corporation,
electioneering involvement would be prohibited. This is a new
issue in Alaska since corporations were previously prohibited
absolutely. I don't know if we can prohibit this as a state, I'm
just alerting the committee to the possible preemption argument,
he said.
2:33:22 PM
CHAIR FRENCH asked about the possibility of restricting
corporate involvement in Alaska elections only to those U.S.
corporations that are domiciled in Alaska.
MR. BULLARD offered to provide an opinion on the topic.
CHAIR FRENCH asked him to do that and to look into some of the
concerns Senator Wielechowski expressed. I share those concerns,
he said. We have a right to be concerned about a shell
corporation trying to manipulate voters and if we need state
statutes to deal with that, then now is the time to do it, he
said.
2:34:48 PM
SENATOR WIELECHOWSKI said he'd like to go a step further and to
the extent possible prohibit corporations that have foreign
shareholders that hold X percentage or X dollars of stock. For
years the federal government has had a policy of not allowing
foreign nationals to participate in elections and now this
Supreme Court case has opened the backdoor to allowing foreign
nationals to participate in and influence elections. "I would be
very interested in trying to pursue methods [so] that we can
prevent that sort of thing," he said.
CHAIR FRENCH said he shares the sentiment but the clock is
ticking toward adjournment and he doesn't want to miss the
opportunity of passing a bill that solves a large portion of the
problem.
CHAIR FRENCH found no comments from Holly Hill and Jason
Brandeis with APOC or John Ptacin with DOL. He announced that
the committee would continue to work on SB 284.
2:36:32 PM
There being no further business to come before the committee,
Chair French adjourned the meeting at 2:36 p.m.
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