Legislature(2021 - 2022)BUTROVICH 205

04/07/2022 03:30 PM Senate STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 234 POLITICAL CONTRIBUTION LIMITS TELECONFERENCED
Heard & Held
*+ SB 215 REVIEW & REPORTING OF FED. RECEIPTS; LB&A TELECONFERENCED
Heard & Held
*+ SB 205 DIGITAL ABSENTEE VOTING SYSTEM TELECONFERENCED
Scheduled but Not Heard
*+ SB 57 ALASKA SUNSET COMMISSION TELECONFERENCED
Scheduled but Not Heard
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 194 ALLOW ELECTRONIC DRIVERS' LICENSES AND ID TELECONFERENCED
Heard & Held
**Streamed live on AKL.tv**
              HB 234-POLITICAL CONTRIBUTION LIMITS                                                                          
                                                                                                                                
4:15:44 PM                                                                                                                    
VICE CHAIR REINBOLD  announced the consideration of  CS FOR HOUSE                                                               
BILL  NO. 234(STA)  am(efd  fld) "An  Act  relating to  political                                                               
contributions;  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."                                                                                                                
                                                                                                                                
4:16:15 PM                                                                                                                    
ERIK  GUNDERSON,  Staff,  Representative Calvin  Schrage,  Alaska                                                               
State Legislature, presented HB 234  on behalf of the sponsor, by                                                               
reading the following sponsor statement into the record:                                                                        
                                                                                                                                
     House  Bill   234  reinstates  fair,   reasonable,  and                                                                    
     constitutional political  contribution limits, requires                                                                    
     the Alaska Public Offices  Commission to increase these                                                                    
     limits  every  ten  years based  on  Alaska's  consumer                                                                    
     inflation rates,  and limits out-of-state  donations in                                                                    
     state and local campaigns.                                                                                                 
                                                                                                                                
     Alaska has  long touted  strong and  effective campaign                                                                    
     finance   laws  which   have  helped   to  reduce   the                                                                    
     perception and acts  of quid pro quo  and corruption in                                                                    
     our  political  process.  These  laws  have  served  to                                                                    
     promote   better  accountability   and  trust   in  our                                                                    
     elections and  elected officials. Last year,  the Ninth                                                                    
     Circuit  Court of  Appeals  struck  down the  statutory                                                                    
     campaign  contribution limits,  implemented by  Alaskan                                                                    
     voters  in 2006  with 73%  support, in  the Thompson  v                                                                    
     Hebdon decision.                                                                                                           
                                                                                                                                
     This   ruling,   and    the   Alaska   Public   Offices                                                                    
     Commission's decision  not to implement the  new limits                                                                    
     advised   by  commission   staff,  has   created  legal                                                                    
     uncertainty and  opened our  state and  local elections                                                                    
     to the threat  of unlimited funds from  anywhere in the                                                                    
     country.  HB  234  creates  new  campaign  contribution                                                                    
     limit laws  that are in  compliance with the  ruling of                                                                    
     the Ninth  Circuit Court of  Appeals and  Supreme Court                                                                    
     precedent, while ensuring  limits remain constitutional                                                                    
     moving forward.                                                                                                            
                                                                                                                                
     To  accomplish this,  HB  234  moves Alaska's  campaign                                                                    
     contributions  to   a  "per  campaign   period"  basis,                                                                    
     increases the  individual-to-candidate limit  from $500                                                                    
     per year to  $2,000 per campaign period  and the group-                                                                    
     to-candidate limit  from $1,000 per year  to $4,000 per                                                                    
     campaign period,  and directs the Alaska  Public Office                                                                    
     Commission to adjust  contribution limits for inflation                                                                    
     every  10 years.  These  changes  address the  concerns                                                                    
     laid  out by  the Ninth  Circuit in  their decision  as                                                                    
     well  as Supreme  Court precedent  while upholding  the                                                                    
     expressed  desire  of  Alaskan   voters  for  fair  and                                                                    
     reasonable contribution limits in our elections.                                                                           
                                                                                                                                
4:18:54 PM                                                                                                                    
VICE CHAIR REINBOLD asked Ms. Hebdon  if she wanted to comment on                                                               
the Thompson v Hebdon decision.                                                                                                 
                                                                                                                                
HEATHER  HEBDON,   Executive  Director,  Alaska   Public  Offices                                                               
Commission,   Department  of   Administration  (DOA),   said  she                                                               
believes the record speaks for itself.                                                                                          
                                                                                                                                
VICE  CHAIR  REINBOLD asked  her  to  provide  a summary  of  the                                                               
decision.                                                                                                                       
                                                                                                                                
4:20:10 PM                                                                                                                    
MS.  HEBDON explained  that  the  case was  remanded  to the  9th                                                               
Circuit Court  of Appeals where  a three judge panel  struck down                                                               
the  individual  candidate  limit.  The  out-of-state  limit  was                                                               
already  struck and  that wasn't  challenged. A  third limit  was                                                               
also struck down but she didn't recall the specifics.                                                                           
                                                                                                                                
VICE CHAIR  REINBOLD asked  if the  result was  that there  is no                                                               
limit on [out-of-state contributions].                                                                                          
                                                                                                                                
MS. HEBDON replied that is correct.                                                                                             
                                                                                                                                
VICE CHAIR REINBOLD said she didn't realize that. She asked Mr.                                                                 
Gunderson if he had anything to add.                                                                                            
                                                                                                                                
4:21:13 PM                                                                                                                    
MR. GUNDERSON advised that the forthcoming presentation adds                                                                    
depth to Ms. Hebdon's summary of the case.                                                                                      
                                                                                                                                
4:21:57 PM                                                                                                                    
MR. GUNDERSON read the following sectional analysis for HB 234:                                                                 
                                                                                                                                
     Section 1                                                                                                                
     Amends  AS  15.13.020(j)  directing the  Alaska  Public                                                                    
     Offices Commission  to establish a central  office that                                                                    
     maintains copies  of reports filed with  the commission                                                                    
     available  to the  public.  Removes language  requiring                                                                    
     the commission  to establish a regional  office in each                                                                    
     senate district.                                                                                                           
                                                                                                                                
     Section 2                                                                                                                
     Amends  AS   15.13.070(b)  to   change  the   limit  an                                                                    
     individual may  contribute to  a candidate,  a write-in                                                                    
     candidate, or to a non-group  entity from $500 per year                                                                    
     to $2,000  per campaign  period. Changes the  amount an                                                                    
     individual may contribute to a group to $5,000 a year.                                                                     
                                                                                                                                
     Section 3                                                                                                                
     Amends  AS 15.13.070(c)  to change  the  limit a  group                                                                    
     that is not  a political party may  contribute per year                                                                    
     to a  candidate or  write-in candidate from  $1,000 per                                                                    
     year to $4,000 per  campaign period. Changes the amount                                                                    
     a group  that is not  a political party  may contribute                                                                    
     to another  group, nongroup entity, or  political party                                                                    
     to $5,000 per year.                                                                                                        
                                                                                                                                
4:23:15 PM                                                                                                                    
     Section 4                                                                                                                
     Amends AS  15.13.070(f) to change the  limit a nongroup                                                                    
     entity   may  contribute   to  a   candidate,  write-in                                                                    
     candidate, or  another nongroup entity from  $1,000 per                                                                    
     year to $4,000 per  campaign period. Changes the amount                                                                    
     a nongroup  entity may contribute  to another  group or                                                                    
     political party to $5,000 per year.                                                                                        
                                                                                                                                
     Section 5                                                                                                                
     Amends  AS   15.13.070(g)  to   change  the   limit  an                                                                    
     individual  may  contribute  to a  joint  campaign  for                                                                    
     governor and  lieutenant governor from $1,000  per year                                                                    
     to  $4,000 per  campaign  period. Changes  the limit  a                                                                    
     group may  contribute to a joint  campaign for governor                                                                    
     and lieutenant governor from $2,000  per year to $8,000                                                                    
     per campaign period.                                                                                                       
                                                                                                                                
     Section 6                                                                                                                
     Amends  AS 15.13.070  to include  a new  subsection (h)                                                                    
     that states contribution  limits provided under (b)(1),                                                                    
     (c)(2),  and  (f)  of  this section  do  not  apply  to                                                                    
     individuals,    groups,     or    non-group    entities                                                                    
     contributing to  a group or nongroup  entity that makes                                                                    
     solely  independent expenditures.  Amends AS  15.13.070                                                                    
     to include  a new  subsection (i) directing  the Alaska                                                                    
     Public  Offices   Commission  to   update  contribution                                                                    
     limits every ten years, beginning  the first quarter of                                                                    
     2031, based on consumer  inflation rates for Anchorage,                                                                    
     Alaska. These increases are rounded  to the nearest $50                                                                    
     increment.                                                                                                                 
                                                                                                                                
4:24:53 PM                                                                                                                    
     Section 7                                                                                                                
     Amends  AS 15.13.072(e)  stating that  a candidate  may                                                                    
     not solicit or accept  contributions from an individual                                                                    
     who  is not  an  Alaska resident  if  the amount  would                                                                    
     exceed  25%  of the  total  contributions  made to  the                                                                    
     candidate during the campaign.                                                                                             
                                                                                                                                
     Section 8                                                                                                                
     Amends  AS 15.13.110(i)  prohibiting the  Alaska Public                                                                    
     Offices Commission  from changing the manner  or format                                                                    
     in  which a  candidate must  file a  report during  the                                                                    
     campaign period.                                                                                                           
                                                                                                                                
     Section 9                                                                                                                
     Amends  AS.15.13.400 to  include a  new paragraph  (20)                                                                    
     defining "campaign  period" as the period  beginning on                                                                    
     the  date  a  candidate  becomes  eligible  to  receive                                                                    
     campaign  contribution  and  ending on  the  date  that                                                                    
     candidate must file a final report.                                                                                        
                                                                                                                                
4:26:00 PM                                                                                                                    
     Section 10                                                                                                               
     Amends  AS  24.45.091  to   require  that  reports  and                                                                    
     statements  filed  with  the commission  must  be  made                                                                    
     publicly accessible on their website.                                                                                      
                                                                                                                                
     Section 11                                                                                                               
     Amends  24.45.111(b)  to  require that  copies  of  all                                                                    
     statements  and reports  filed with  the commission  be                                                                    
     preserved for  a period  of six  years. Copies  must be                                                                    
     maintained at the commission's  central location and be                                                                    
     made available on the commission's internet website.                                                                       
                                                                                                                                
     Section 12                                                                                                               
     Adds  a  new  section   stating  that  the  retroactive                                                                    
     language  in  Section 13  does  not  apply to  campaign                                                                    
     contributions  made  to  influence the  outcome  of  an                                                                    
     election  that  occurred  on   or  before  this  bill's                                                                    
     effective date.                                                                                                            
                                                                                                                                
     Section 13                                                                                                               
     Adds  an  effective  date  of   March  3,  2022  to  AS                                                                    
     15.13.070  (b),  (c),  (f),  (g),  (h)  as  amended  in                                                                    
     Sections 2, 3, 4, 5, 6, and 9 (respectively).                                                                              
                                                                                                                                
4:27:07 PM                                                                                                                    
VICE  CHAIR REINBOLD  asked if  March 3,  2022 was  a retroactive                                                               
date.                                                                                                                           
                                                                                                                                
MR. GUNDERSON answered yes.                                                                                                     
                                                                                                                                
SENATOR  HOLLAND asked  why the  [individual] contribution  limit                                                               
was set at $2,000.                                                                                                              
                                                                                                                                
MR. GUNDERSON  replied that is  the inflation adjusted  amount of                                                               
the current $500  individual contribution for the  next 10 years,                                                               
and  it  also  reflects  the  change from   per  year   to   each                                                               
campaign period.                                                                                                                
                                                                                                                                
SENATOR HOLLAND referenced Sections 12  and 13 and asked if there                                                               
was a  chance that existing  donations might be  affected because                                                               
some  people  may  have  already  exceeded  the  proposed  $2,000                                                               
individual limit for each campaign  period. For example, somebody                                                               
might already have given the  maximum $1,500 prior to December 31                                                               
and the maximum $1,500 after that date.                                                                                         
                                                                                                                                
MR. GUNDERSON said Ms. Hebdon  might have additional insight, but                                                               
his understanding in  that example was that none  of the donation                                                               
would need  to be returned as  long as the two  donations were in                                                               
compliance with the APOC staff's initial advisory opinion.                                                                      
                                                                                                                                
VICE CHAIR REINBOLD asked Ms. Hebdon to comment.                                                                                
                                                                                                                                
4:29:43 PM                                                                                                                    
MS. HEBDON  summarized her understanding  of the  question, which                                                               
was whether  the division  would seek  to have  any contributions                                                               
returned if they  were made post March 3 and  were over the limit                                                               
in the bill.                                                                                                                    
                                                                                                                                
SENATOR HOLLAND  said he was  also wondering about the  effect on                                                               
contributions made pre  March 3. He added that  he understood the                                                               
desire  to address  the current  election, but  it would  be more                                                               
straight-forward  if it  were to  become effective  for the  next                                                               
election cycle.                                                                                                                 
                                                                                                                                
MS.  HEBDON responded  that APOC  would  not seek  the return  of                                                               
contributions in excess of $1,500  from anybody who was following                                                               
APOC staff guidance under the draft  opinion up until March 3. If                                                               
the bill  were to  pass with  the effective  date, she  said it's                                                               
likely  that  APOC   staff  would  bring  post   March  3  excess                                                               
contributions to the  commission's attention, but it  was hard to                                                               
imagine "getting  those funds back  in the  bottle,  particularly                                                               
in a hectic election cycle.                                                                                                     
                                                                                                                                
SENATOR HOLLAND asked if candidates  who received donations after                                                               
January 1, 2022 would have to  take any $1,500 donations from the                                                               
previous year into account when calculating the $2,000 limit.                                                                   
                                                                                                                                
MS. HEBDON  responded that  based to the  effective date  and the                                                               
change from   per year  to  each  campaign period,  contributions                                                               
in both calendar years would be considered.                                                                                     
                                                                                                                                
4:33:01 PM                                                                                                                    
SENATOR  HOLLAND asked  if the  provision that  limits individual                                                               
contributions from nonresident doners to  25 percent of the total                                                               
contributions came from other states.                                                                                           
                                                                                                                                
MR. GUNDERSON  replied it was  a floor amendment  that originally                                                               
established the out-of-state contribution  limit at 50 percent of                                                               
all contributions, which  was in line with Ballot  Measure 2. The                                                               
body amended the limit to 25 percent of all contributions.                                                                      
                                                                                                                                
VICE  CHAIR  REINBOLD  stated that  she  interpreted  Thompson  v                                                               
Hebdon  as  a  directive  for  the legislature  to  look  at  the                                                               
political contribution limits.                                                                                                  
                                                                                                                                
VICE CHAIR REINBOLD apologized that  the slide presentation would                                                               
have  to  be held  until  the  next  hearing because  there  were                                                               
technical difficulties today.                                                                                                   
                                                                                                                                
MR. GUNDERSON thanked the committee for considering the bill.                                                                   
                                                                                                                                
4:36:02 PM                                                                                                                    
VICE CHAIR REINBOLD held HB 234 in committee for future                                                                         
consideration.                                                                                                                  

Document Name Date/Time Subjects
HB234 support 6 letters 4-4.pdf SSTA 4/7/2022 3:30:00 PM
HB 234
SB 57 Sponsor Statement.pdf SSTA 4/7/2022 3:30:00 PM
SB 57
SB 57 Sectional Analysis.pdf SSTA 4/7/2022 3:30:00 PM
SB 57
SB194.Sponsor.Statement.02.24.22.pdf SSTA 4/7/2022 3:30:00 PM
SB 194
SB194.Sectional.Analysis.02.24.22.pdf SSTA 4/7/2022 3:30:00 PM
SB 194
SB 205 Version G.PDF SSTA 4/7/2022 3:30:00 PM
SB 205
Sectional Analysis - DRAFT.pdf SSTA 4/7/2022 3:30:00 PM
SB 205
SB 205 Sponsor Statement.pdf SSTA 4/7/2022 3:30:00 PM
SB 205
TP_MVP_WV_CaseStudy.pdf SSTA 4/7/2022 3:30:00 PM
SB 205
MVP One-Pager 2022 (1).pdf SSTA 4/7/2022 3:30:00 PM
SB 205
MV_SecurityInfographic.pdf SSTA 4/7/2022 3:30:00 PM
SB 205
SB 57 Sponsor Statement.pdf SSTA 4/7/2022 3:30:00 PM
SB 57
SB 57 Sectional Analysis.pdf SSTA 4/7/2022 3:30:00 PM
SB 57
HB 234 version C Sponsor Statement.docx.pdf SSTA 4/7/2022 3:30:00 PM
HB 234
HB 234 version C, presentation.pdf SSTA 4/7/2022 3:30:00 PM
HB 234
HB 234 version C, Sectional Analysis.docx.pdf SSTA 4/7/2022 3:30:00 PM
HB 234
SB 215 Sponsor Statement 4.22.pdf SSTA 4/7/2022 3:30:00 PM
SB 215
SB 215 Sectional Analysis Version A 4.22.pdf SSTA 4/7/2022 3:30:00 PM
SB 215
6 LETTERS OF SUPPORT.pdf SSTA 4/7/2022 3:30:00 PM
SB 234