Legislature(2023 - 2024)BELTZ 105 (TSBldg)
04/27/2023 03:30 PM Senate STATE AFFAIRS
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Audio | Topic |
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Start | |
SB138 | |
SB17 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
*+ | SB 17 | TELECONFERENCED | |
+= | SB 19 | TELECONFERENCED | |
*+ | SB 138 | TELECONFERENCED | |
+ | TELECONFERENCED | ||
SB 17-CAMPAIGN CONTRIBUTIONS 4:09:37 PM CHAIR KAWASAKI announced the consideration of SENATE BILL NO. 17 "An Act relating to political contributions; and providing for an effective date." 4:10:17 PM MATT LONGABAUGH, Staff, Senator Scott Kawasaki, Alaska State Legislature, Juneau, Alaska, introduced SB 17 by paraphrasing the sponsor statement. Alaska has long regulated campaign contributions and limited the amount that can be donated to political campaigns. Following the VECO scandal in 2006, the people of Alaska approved a ballot initiative that established strict contribution limits. Part of the argument behind that initiative was that limiting the amount of money candidates can raise would curb the type of corruption seen during VECO. In 2019 the 9th Circuit Court of Appeals overturned some of Alaska's political contribution limits in the case Thompson v. Hebdon. The Thompson decision struck down the limits, including the limits on contributions from individuals, nongroup entities, nonpolitical party entities, and joint campaigns for Governor and Lieutenant Governor. This bill establishes new campaign contribution limits compliant with the Thompson decision. It increases these limits such that they are nearly indexed for the rate of inflation between 2006 and 2023. The limits are rounded to the nearest hundred. Here are the new limits: • Individual contribution limits from $500 to $700 • Nonpolitical party group limits from $1,000 to $1,400 • Nongroup entity limits from $1,000 to $1,400 • Individual limits to a joint candidacy for Governor and Lieutenant Gov. from $1,000 to $1,400 • Group limits to a joint candidacy for Governor and Lieutenant Gov. from $2,000 to $2,800 The Thompson decision also stipulated that contribution limits must be indexed for inflation. SB 17 requires APOC to index contribution limits for inflation by regulation starting in 2024 and after subsequent terms of four years. 4:11:58 PM MR. LONGABAUGH presented the sectional analysis for SB 17. Section 1. AS 15.13.070(b) This amends the statute by increasing the individual contribution limit from $500 to $700. This applies to individuals donating to nongroup entities, candidates, write-in candidates, or nonpolitical party groups. Section 2. AS 15.13.070(c) Amends the statute by increasing the contribution limit for groups that are not political parties from $1,000 to $1,400. This applies to nonpolitical party groups donating to a candidate, a write-in candidate, another group, a non-group entity, or a political party. Section 3. AS 15.13.070(f) This section amends the statute by increasing the amount nongroup entities can donate from $1,000 to $1,400. This applies to nongroup entities donating to another nongroup entity, to candidates, to write-in candidates, to groups, or to political parties. Section 4. AS 15.13.070(g) This amends the statute by increasing the amount individuals and groups can donate to joint Gubernatorial and Lieutenant Gubernatorial campaigns. It increases the amount individuals can donate from $1,000 to $1,400, and groups from $2,000 to $2,800. Section 5. AS 15.13.070(h) This section adds a new subsection that indexes these campaign limits to inflation. Starting in 2024, and every term of four years thereafter, the commission shall by regulation adjust these contribution limits to account for inflation. Section 6. Provides this bill with an immediate effective date. 4:14:13 PM MR. LONGABAUGH continued the introduction of SB 17 with a PowerPoint, starting on slides 4-5. A Brief History • In 1995, citizens filed an initiative that included lowering the limits on individual campaign contributions from $1000 to $500. • The legislature heard the call of the people and enacted a new law before the initiative came to fruition. The stated purpose of the new law was "to restore the public's trust in the electoral process and to foster good government." • Years later, the legislature raised the limit back to $1,000. • In 2006, the people once again filed an initiative, and this time it came to be, lowering the limits again to $500 with 73% support. • In 2021, the U.S. Ninth Circuit Court of Appeals ruled the limit unconstitutional. • The Court argued that because $500 was unusually low, applied to all state races, and was not indexed with inflation to grow over time, that it infringed on donors' freedom of speech and gave an unfair advantage to incumbents. • In the aftermath of the decision, Alaska's Public Office Commission set the individual-to- candidate limit at $1,500. SB 17's ceilings would roughly track inflation for what Alaskans approved in 2006, though are a bit higher. 4:16:16 PM MR. LONGABAUGH advanced to slide 6. How it Could Survive Legal Challenge To review, The Ninth Circuit Court argued that, since $500 was unusually low, applied to all state races, and was not indexed with inflation to grow over time, it infringed on donors' freedom of speech and gave an unfair advantage to incumbents. SB 17's limits are not unusually low and are indexed with inflation to grow over time. Thus, it follows from that ruling that these would survive a challenge made on the same grounds as the last one. In the 40 states that do have limits on contributions to legislative candidates, the average is $2,848 per election, ranging from $180 in Montana to $13,704 [in Ohio]. Ours would be slightly higher or lower depending on the source of the contributionnot unusual. 4:17:36 PM MR. LONGABAUGH continued to slide 7. Reviewing the Increases Section 1: • Individuals: $500 >> $700 per year Section 2: • A non-political party group: $1000 >> $1,400 per year Section 3: • Nongroup entity (such as XXX) : $1000 >> $1,400 per year Section 4 concerning Governor and Lt. Governor campaigns: • Individuals $1,000 >> $1,400; groups $2,000 >> $2,800 per year MR. LONGABAUGH advanced to slide 8. You may be familiar with some related cases In McCutcheon v. Federal Election Commission (2014), the court held that states cannot place limits on aggregate contributions (the total of all contributions to all candidates) by individuals or groups. Existing limits on per-candidate contributions were not addressed and thus not changed. (NCSL) In Citizens United v. Federal Election Commission (2010), independent expenditures were at hand. SB 17 would not limit those. 4:19:09 PM SENATOR CLAMAN asked why the individual contribution limits from $500-$700 weren't higher. MR. LONGABAUGH replied that the increase tracks the consumer price index (CPI) and is the limit that was approved by ballot initiative. SENATOR CLAMAN summarized that the $500 limit is adjusted for inflation. MR. LONGABAUGH replied that it's at least tracked to inflation. SENATOR CLAMAN questioned the reason that the presentation didn't include the full explanation of the $1,500 individual-to- candidate limit that APOC set and then withdrew under pressure. It was noteworthy because that left basically no finance limits in the last election. MR. LONGABAUGH acknowledged that was omitted from the presentation. SENATOR CLAMAN pressed the point asking how the $1,500 was relevant when APOC added it and then realized it was a bad idea and withdrew it. 4:21:17 PM CHAIR KAWASAKI asked Mr. Lucas to discuss how APOC happened to set the $1,500 limit, temporary though it was. 4:21:40 PM TOM LUCAS, Campaign Disclosure Coordinator, Alaska Public Offices Commission (APOC), Anchorage, Alaska, explained that the $1,500 limit was APOC staff's attempt to accommodate the Thompson decision. The commission withdrew the $1,500 limit after it ultimately decided that any caps on the contribution limits should be set by the legislature. SENATOR CLAMAN recounted that the court criticized that incumbents were advantaged by the structure of Alaska's contribution limits. The limit was set as an annual limit as opposed to a per campaign limit which favors incumbents because they oftentimes start running the year before and challengers often don't get involved until later so they're not fundraising the first year. He asked the reason for not shifting to campaign limits. MR. LONGABAUGH responded that incumbents always have an advantage and it doesn't seem to be tied to annual versus campaign limits, but he would follow up after doing some research on that point. SENATOR CLAMAN observed that Alaska was told that its campaign finance limits were unconstitutional and his perspective was that the Ninth Circuit wasn't likely to find SB 17 very different because it simply adjusts the limit to match inflation. CHAIR KAWASAKI reviewed the variety of what other states do with campaign limits and posited that the legislature could decide what policy to adopt. His perspective was that the general opinion was that there is too much money in politics. 4:27:59 PM SENATOR WIELECHOWSKI commented that the voters have overwhelmingly said they want campaign contribution limits and the court has said the limits are too low. He offered his perspective that the limits should be as low as possible and then inflation proofed. He said he appreciated the discussion. 4:29:18 PM SENATOR BJORKMAN asked if SB 17 would limit the amount a candidate could contribute to their own campaign. CHAIR KAWASAKI responded that the bill doesn't specifically address that and he didn't believe the law currently limited the amount a candidate could contribute to their own campaign. He asked Mr. Lucas to comment. 4:30:14 PM MR. LUCAS responded that the one exception is that a candidate can only contribute an additional $5,000 to their own campaign during the last 30 days before an election. SENATOR CLAMAN asked what the laws are on how much a candidate can loan to their campaign. MR. LUCAS responded that a candidate's loan to their own campaign is considered a contribution unless and until the candidate files a report indicating they would like to be reimbursed from the surplus funds at the end of the campaign. The amount that can be reimbursed is limited depending on the office the person is seeking. He offered to follow up with information about the specific statute. SENATOR CLAMAN said he didn't need the information. 4:33:14 PM CHAIR KAWASAKI set an amendment deadline and held SB 17 in committee for future consideration.
Document Name | Date/Time | Subjects |
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SB 17 Fiscal note.pdf |
SSTA 4/27/2023 3:30:00 PM |
SB 17 |
SB17.Sponsor.Statement.04.26.24.pdf |
SSTA 4/27/2023 3:30:00 PM |
SB 17 |
SB17.Sectional.Analysis.04.24.23.pdf |
SSTA 4/27/2023 3:30:00 PM |
SB 17 |
SB 17 Fiscal note.pdf |
SSTA 4/27/2023 3:30:00 PM |
SB 17 |
SB0017A.PDF |
SSTA 4/27/2023 3:30:00 PM |
SB 17 |
SB0138A.PDF |
SSTA 4/27/2023 3:30:00 PM |
SB 138 |
a. SB138.Omnibus Elections sponsor statement 04-26-23.pdf |
SFIN 5/9/2023 1:30:00 PM SSTA 4/27/2023 3:30:00 PM |
SB 138 |
SB 138 Sectional Analysis.pdf |
SSTA 4/27/2023 3:30:00 PM |
SB 138 |
SB 138 draft powerpoint.pdf |
SSTA 4/27/2023 3:30:00 PM |
SB 138 |
SB 17 Presentation.1.pdf |
SSTA 4/27/2023 3:30:00 PM |
SB 17 |