Legislature(2023 - 2024)SENATE FINANCE 532

05/09/2023 01:30 PM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 138 ELECTIONS; VOTER REG.; CAMPAIGNS TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
-- <Time Limit May Be Set> --
Bills Previously Heard/Scheduled:
+= SB 122 APPORTION TAXABLE INCOME;DIGITAL BUSINESS TELECONFERENCED
Heard & Held
+= SB 48 CARBON OFFSET PROGRAM ON STATE LAND TELECONFERENCED
Heard & Held
                 SENATE FINANCE COMMITTEE                                                                                       
                        May 9, 2023                                                                                             
                         1:34 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:34:05 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Olson  called the Senate Finance  Committee meeting                                                                    
to order at 1:34 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Donny Olson, Co-Chair                                                                                                   
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Click Bishop                                                                                                            
Senator Jesse Kiehl                                                                                                             
Senator Kelly Merrick                                                                                                           
Senator David Wilson                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator  Scott  Kawasaki,  Sponsor; David  Dunsmore,  Staff,                                                                    
Senator  Scott Kawasaki;  Ken  Alper,  Staff, Senator  Donny                                                                    
Olson;  Rena  Miller,  Special   Assistant,  Office  of  the                                                                    
Commissioner, Department  of Natural Resources;  John Boyle,                                                                    
Commissioner, Department of Natural Resources.                                                                                  
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Chrstopher Constant,  Chair, Anchorage  Assembly, Anchorage;                                                                    
Michael   Garvey,  ACLU   of  Anchorage,   Anchorage;  Carol                                                                    
Beecher,   Director,  Division   of  Elections,   Anchorage;                                                                    
Jeannette  Lee,  Research   Director,  Sightline  Institute,                                                                    
Anchorage;  Christy Colles,  Director,  Division of  Mining,                                                                    
Land  and Water,  Department  of  Natural Resources;  Ashlee                                                                    
Adoko, Executive Director, Office  of Project Management and                                                                    
Permitting,  Department  of  Natural Resources;  Helge  Eng,                                                                    
State Forester,  Division of  Forestry and  Fire Protection,                                                                    
Department of Natural Resources.                                                                                                
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 48     CARBON OFFSET PROGRAM ON STATE LAND                                                                                   
                                                                                                                                
          SB 48 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SB 122    APPORTION TAXABLE INCOME;DIGITAL BUSINESS                                                                             
                                                                                                                                
          SB 122 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
SB 138    ELECTIONS; VOTER REG.; CAMPAIGNS                                                                                      
                                                                                                                                
          SB 138 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
SENATE BILL NO. 138                                                                                                           
                                                                                                                                
     "An  Act relating  to  elections;  relating to  voters;                                                                    
     relating to  voting; relating to the  crime of unlawful                                                                    
     interference with voting in  the first degree; relating                                                                    
     to  campaign  signs;  relating   to  the  reporting  of                                                                    
     financial and  business interests by  certain municipal                                                                    
     officers  and   former  officers  and   candidates  for                                                                    
     municipal office; relating  to the Redistricting Board;                                                                    
     and providing for an effective date."                                                                                      
                                                                                                                                
1:34:16 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:34:26 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
1:35:43 PM                                                                                                                    
                                                                                                                                
SENATOR    SCOTT   KAWASAKI,    SPONSOR,   introduced    the                                                                    
legislation. He read from the Sponsor Statement (copy on                                                                        
file):                                                                                                                          
                                                                                                                                
     Over  360,000  Alaskans  voted  in  the  2020  election                                                                    
     making it the election  with the greatest participation                                                                    
     in Alaska  history. Yet 173,000 Alaskans  were eligible                                                                    
     to vote or registered to  vote but did not. Senate Bill                                                                    
     138 seeks  to build  upon the participatory  success of                                                                    
     the   2020   election   by  strengthening   the   voter                                                                    
     registration      system,     tightening      residency                                                                    
     requirements,  paying  postage   for  by-mail  absentee                                                                    
     ballots,   and  requiring   the   Alaska  Division   of                                                                    
     Elections to  offer absentee voters  the option  to fix                                                                    
     errors   in  their   ballots.  This   bill  facilitates                                                                    
     participation for  those legally  eligible to  vote and                                                                    
     ensures   the  integrity   of  elections   by  updating                                                                    
     absentee ballot verification and curing.                                                                                   
     Currently, voters  are not notified of  errors in their                                                                    
     absentee   ballots   until   after  the   election   is                                                                    
     certified.  Over 7,500  ballots  were  rejected in  the                                                                    
     2022   special  primary   election,   a  4.55   percent                                                                    
     rejection rate. That's about  1/20 ballots. On average,                                                                    
     if we all in this room  had voted by mail, the Division                                                                    
     of Elections  would have rejected  at least one  of our                                                                    
    ballots without notifying us until it was too late.                                                                         
     Therefore, SB 138 establishes  a ballot tracking system                                                                    
     and a ballot curing  process. The ballot curing process                                                                    
     requires  the   Division  to   notify  voters   if  the                                                                    
     signature on  their ballot  does not  match the  one on                                                                    
     their registration.                                                                                                        
     Other updates to the election system include:                                                                              
     •  requiring   the  Division  of  Elections   to  count                                                                    
     absentee ballots  starting at  least seven  days before                                                                    
     election day  and beginning to release  vote tallies at                                                                    
     8pm on election day,                                                                                                       
     • tightening and  clarifying residency requirements for                                                                    
     voting in order to clean Alaska's voter rolls,                                                                             
     • replacing  the witness  signature requirement  with a                                                                    
     signature   verification  system   and  requiring   the                                                                    
     Division  of Elections  to  ballot  cure for  signature                                                                    
     discrepancies,                                                                                                             
     •  pre-paying  vote  by mail  postage  and  allowing  a                                                                    
     verifiable date sent (such as  a USPS bar code), rather                                                                    
     than  the post  marked date,  to serve  as the  date on                                                                    
     which the voter voted,                                                                                                     
     •  making  explicit  what happens  when  someone  votes                                                                    
     twice   and  maintaining   that  it   is  a   crime  to                                                                    
     intentionally vote more than once.                                                                                         
     Voting  rights are  fundamental to  American democracy,                                                                    
     which works  best when eligible voters  can participate                                                                    
     and  have the  freedom to  choose our  elected leaders.                                                                    
     Optimizing and strengthening  our voting system ensures                                                                    
     that these freedoms and rights prevail.                                                                                    
     I  respectfully urge  your support  of  SB 138.  Please                                                                    
     reach out to my office with any questions.                                                                                 
                                                                                                                                
1:39:37 PM                                                                                                                    
                                                                                                                                
DAVID  DUNSMORE, STAFF,  SENATOR  SCOTT KAWASAKI,  discussed                                                                    
the presentation, "SB 138, Omnibus  Elections Bill" (copy on                                                                    
file). He  highlighted slide  2, "Signature  Verification to                                                                    
Protect the Integrity of By-Mail Ballots":                                                                                      
                                                                                                                                
     •  Signatures on  absentee  ballot  envelopes would  be                                                                    
     compared  to the  voter's signature  on  file with  the                                                                    
     division of elections.                                                                                                     
     •  Signatures  can   be  verified  electronically,  and                                                                    
     reviewers  will  be  trained  to  identify  handwriting                                                                    
     patterns to manually verify signatures.                                                                                    
     •  The  Municipality   of  Anchorage  has  successfully                                                                    
     employed signature verification since 2018.                                                                                
     •  Voters  would have  the  opportunity  to cure  their                                                                    
     ballots if their signature cannot be verified.                                                                             
                                                                                                                                
1:40:47 PM                                                                                                                    
                                                                                                                                
Co-Chair   Olson   queried    the   system   for   signature                                                                    
verification in rural communities.                                                                                              
                                                                                                                                
Mr. Dunsmore  replied that  currently absentee  ballots were                                                                    
reviewed   at  each   of  the   five  offices,   which  have                                                                    
verification systems.                                                                                                           
                                                                                                                                
Mr.  Dunsmore  displayed  slide   3,  "Repeals  the  witness                                                                    
signature requirement for by mail ballots":                                                                                     
                                                                                                                                
     • In  the 2022 special primary  election, 2,724 ballots                                                                    
     were rejected  because of  a missing  witness signature                                                                    
     1.7 percent of all ballots cast.                                                                                           
     •   Witness  signature   rejections  disproportionately                                                                    
     affected rural Alaska.                                                                                                     
     •  In District  38, 10.9  percent of  all ballots  cast                                                                    
     were rejected for missing witness signatures.                                                                              
     • There is  no indication of any  misconduct with these                                                                    
     rejected ballots.                                                                                                          
                                                                                                                                
Senator Wilson  queried the percentage  of how  many ballots                                                                    
had some inaccuracies in other municipalities.                                                                                  
                                                                                                                                
Mr.  Dunsmore replied  that  the  training in  jurisdictions                                                                    
require looking at specific features of handwriting.                                                                            
                                                                                                                                
Senator    Wilson   wondered    whether   the    handwriting                                                                    
verification  would be  done  by  individuals or  artificial                                                                    
intelligence (AI).                                                                                                              
                                                                                                                                
Mr.  Dunsmore replied  that most  jurisdictions have  a two-                                                                    
step verification process with  electronic scanning and then                                                                    
training humans.                                                                                                                
                                                                                                                                
Mr.  Dunsmore highlighted  slide 4,  "The witness  signature                                                                    
requirement  provides   no  meaningful   election  integrity                                                                    
protection":                                                                                                                    
                                                                                                                                
     • The Division of Elections  has testified that they do                                                                    
     not  have any  way  to verify  that witness  signatures                                                                    
     meet  the statutory  requirement  that they  be from  a                                                                    
     person at least 18.                                                                                                        
     • The  Division accepts as  valid any mark made  in the                                                                    
     witness signature portion of the envelope.                                                                                 
     • The absentee  by mail envelope does  not even provide                                                                    
     space for  the witness to  print their name  or provide                                                                    
     their date of birth.                                                                                                       
                                                                                                                                
Mr. Dunsmore  displayed slide 5,  "Creating a  Ballot Curing                                                                    
Process":                                                                                                                       
                                                                                                                                
     •  Within  24  hours   of  receiving  the  ballot,  the                                                                    
     Division   mails  a   deficiency  notice   with  curing                                                                    
     instructions.                                                                                                              
     •  It  the  voter  has  a phone  number  on  file,  the                                                                    
     Division will call and text them as well.                                                                                  
     •  The  voter returns  the  cure  form confirming  they                                                                    
     voted  on the  ballot with  a copy  of their  ID and  a                                                                    
     signature.                                                                                                                 
     • The cure process may be done electronically.                                                                             
     •  A properly  cured ballot  will be  counted if  it is                                                                    
     otherwise valid.                                                                                                           
     •  If the  voter responds  that they  did not  vote the                                                                    
     ballot, it will be referred to the Attorney General.                                                                       
                                                                                                                                
1:44:59 PM                                                                                                                    
                                                                                                                                
Mr. Dunsmore  looked at slide  6, "A  voter will be  able to                                                                    
cure  their  ballot and  have  it  counted  if it  would  be                                                                    
rejected because:"                                                                                                              
                                                                                                                                
     The voter did not sign the ballot envelope.                                                                                
     The voter's signature cannot be verified.                                                                                  
     The voter  did not  provide an  identifier that  can be                                                                    
     verified.                                                                                                                  
                                                                                                                                
Mr. Dunsmore addressed slide 7, "Ballot tracking system for                                                                     
absentee ballots":                                                                                                              
                                                                                                                                
     • The Division already  offers ballot tracking and this                                                                    
     bill places it into statute.                                                                                               
     • Voters  can check the  status of their  ballot online                                                                    
     and see whether it has been counted or rejected.                                                                           
     •  This  bill  requires  a  multifactor  authentication                                                                    
     system to protect voters' privacy                                                                                          
                                                                                                                                
Mr. Dunsmore looked at slide 8, "Voter Registration list                                                                        
clean-up":                                                                                                                      
                                                                                                                                
                                                                                                                                
     Reduces to  two years  the time  for which  someone not                                                                    
     voting or                                                                                                                  
     updating  their  registration   triggers  a  notice  to                                                                    
     verify their registration.                                                                                                 
                                                                                                                                
     Adds several indications of  residency in another state                                                                    
     to the list of                                                                                                             
     factors that trigger notice.                                                                                               
                                                                                                                                
     Voters who  do not verify their  registration are moved                                                                    
     to inactive status,                                                                                                        
     and   their   votes   will  be   counted,   and   their                                                                    
     registration reactivated if they                                                                                           
     vote or request an absentee ballot.                                                                                        
                                                                                                                                
Mr. Dunsmore addressed slide 9, "Allows voters who register                                                                     
within 30 days of an election to vote":                                                                                         
                                                                                                                                
        Currently a  voter must  register in  the state  and                                                                    
     district in  which they are  voting 30 days  before the                                                                    
     election.                                                                                                                  
       This means an Alaska  resident who moves within 30 of                                                                    
     the election might  not be able to validly  vote in any                                                                    
     district.                                                                                                                  
       The  Division already conducts same  day registration                                                                    
     for presidential  elections, but  these votes  are only                                                                    
     counted for president.                                                                                                     
       Voters registering  within 30 days will  only be able                                                                    
     to vote  absentee, early,  or questioned  ballots which                                                                    
     will be reviewed to ensure the voter is eligible.                                                                          
                                                                                                                                
Mr. Dunsmore addressed slide 11, "Create a statutory                                                                            
procedure for voters to cancel their registration":                                                                             
                                                                                                                                
        Currently the  Division of  Elections will  cancel a                                                                    
     voter's  registration if  they request,  but it  is not                                                                    
     required by statute.                                                                                                       
       Voters would be  allowed to cancel their registration                                                                    
     in person or electronically.                                                                                               
       The  process for  cancelling a registration  would be                                                                    
     posted at polling places.                                                                                                  
                                                                                                                                
Mr. Dunsmore discussed slide 12, "Clarify rules for poll                                                                        
watchers and ballot review observers":                                                                                          
                                                                                                                                
        Currently statutes  only provide  for observers  for                                                                    
     political parties, initiatives,                                                                                            
     referenda, and recalls.                                                                                                    
       This  provision clarifies that candidates  and ballot                                                                    
     question campaigns may                                                                                                     
     have observers.                                                                                                            
       Ballot  questions include  constitutional amendments,                                                                    
     judicial retention, bond                                                                                                   
     propositions, and advisory votes.                                                                                          
        This bill  also  clarifies that  campaigns may  have                                                                    
     observers at all tables where                                                                                              
     ballots are being reviewed within a counting center.                                                                       
                                                                                                                                
Mr. Dunsmore looked at slide 13, "Allow international                                                                           
election observers at polling places and counting centers":                                                                     
                                                                                                                                
        Only  international  organizations that  the  United                                                                    
     States belong to may have observers.                                                                                       
        Observation missions  must be  invited  by the  U.S.                                                                    
     State Department.                                                                                                          
       International  observers will not be  allowed to make                                                                    
     challenges.                                                                                                                
        The Organization  for  Security  and Cooperation  in                                                                    
     Europe is  the only  organization the  State Department                                                                    
     regularly invites to observe elections.                                                                                    
                                                                                                                                
Mr. Dunsmore addressed slide 14, "Clear rules for                                                                               
challenging ballot review decisions":                                                                                           
                                                                                                                                
       Currently  it is unclear  how long campaigns  have to                                                                    
     file a challenge and campaigns  often have to negotiate                                                                    
     this with the regional counting centers.                                                                                   
       This bill requires  regulations to explicitly address                                                                    
     the challenge process.                                                                                                     
       These regulations must allow  at a reasonable time to                                                                    
     submit a challenge.                                                                                                        
                                                                                                                                
Senator  Bishop wondered  whether  the third  bullet on  the                                                                    
slide would be implemented through regulations.                                                                                 
                                                                                                                                
Mr. Dunsmore replied in the affirmative.                                                                                        
                                                                                                                                
Senator   Bishop  felt   that  there   needed  to   be  more                                                                    
conversation  about possibly  putting  the regulations  into                                                                    
statute.                                                                                                                        
                                                                                                                                
Mr.  Dunsmore  discussed  slide   15,  "Stop  special  needs                                                                    
ballots  from being  rejected because  of  mistakes by  poll                                                                    
workers or voter representatives":                                                                                              
                                                                                                                                
        Currently  special  needs ballots  can  be  rejected                                                                    
     because   of  mistakes   by  poll   workers  or   voter                                                                    
     representatives.                                                                                                           
       In  the 2022  general election  8 percent  of special                                                                    
     needs  ballots were  rejected, compared  with only  1.3                                                                    
     percent of by mail ballots.                                                                                                
       This  bill would  prevent special needs  ballots from                                                                    
     being  rejected if  the meet  the  requirements for  an                                                                    
     absentee ballot to be counted.                                                                                             
                                                                                                                                
1:50:59 PM                                                                                                                    
                                                                                                                                
Mr.  Dunsmore pointed  to slide  16, Repeal  the requirement                                                                    
for APOC to have offices in every Senate district":                                                                             
                                                                                                                                
        Current  law  requires  the  Alaska  Public  Offices                                                                    
     Commission  (APOC)  to  have offices  in  every  Senate                                                                    
     district.                                                                                                                  
       They  have never had  the funding level to  meet this                                                                    
     requirement.                                                                                                               
         This  bill   replaces  this   requirement  with   a                                                                    
     requirement that  they make reports available  on their                                                                    
     website.                                                                                                                   
                                                                                                                                
Co-Chair Hoffman asked which Senate  districts were not able                                                                    
to have APOC.                                                                                                                   
                                                                                                                                
Mr. Dunsmore agreed to provide that information, but stated                                                                     
that the only Senate districts with an APOC office were in                                                                      
Juneau and Anchorage.                                                                                                           
                                                                                                                                
Co-Chair Hoffman queried the reason for the law.                                                                                
                                                                                                                                
Mr. Dunsmore replied that it was from a ballot measure                                                                          
related to finance reporting.                                                                                                   
                                                                                                                                
Mr. Dunsmore addressed slide 17, "Creates a consistent                                                                          
standard for when a voter votes more than once":                                                                                
                                                                                                                                
       Currently,  depending on how  a voter  votes multiple                                                                    
     times,  they will  have either  one or  counted or  all                                                                    
     their votes will be rejected.                                                                                              
       This bill  clarifies that if a voter  votes in person                                                                    
     and by another  means, the in person  vote shall count.                                                                    
     Otherwise,  the first  ballot to  be reviewed  shall be                                                                    
     the one that is counted.                                                                                                   
       Under  no circumstances will  a voter have  more than                                                                    
     one vote counted.                                                                                                          
        Generally multiple  voting is  the result  of honest                                                                    
     mistakes by  voters with memory  issues, but  all cases                                                                    
     of  multiple  voting  must still  be  referred  to  the                                                                    
     Attorney General.                                                                                                          
                                                                                                                                
Mr. Dunsmore displayed slide 18, "Risk limiting audits to                                                                       
reduce the risk of certifying an incorrect result":                                                                             
                                                                                                                                
       These  audits take place after  counting is completed                                                                    
     and before the election is certified.                                                                                      
       Risk limiting audits are used in at least 16 states.                                                                     
        The Division  shall develop  statistical methods  to                                                                    
     determine what results to audit.                                                                                           
       Campaigns will be able to observe the audit process.                                                                     
                                                                                                                                
Mr. Dunsmore looked at slide 19, "Cybersecurity program":                                                                       
                                                                                                                                
        Requires the  division  to adopt  regulations for  a                                                                    
     cybersecurity program to protect records from hackers.                                                                     
       The  program will include cybersecurity  training for                                                                    
     elections officials.                                                                                                       
                                                                                                                                
Mr. Dunsmore discussed slide 20:                                                                                                
                                                                                                                                
     Alaska's  billboard law  bans  advertising along  state                                                                    
     roads. In  a 2018  settlement the  state agreed  not to                                                                    
     enforce  this ban  against  political  signs 32  square                                                                    
     feet or smaller on private  property if the sign is not                                                                    
     in   a  highway   right  of   way   or  displayed   for                                                                    
     compensation.                                                                                                              
     This  provision updates  the statutes  to codify  these                                                                    
     settlement terms.                                                                                                          
                                                                                                                                
Mr. Dunsmore addressed slide 22, "Clarifies the Open                                                                            
Meetings Act applies to the                                                                                                     
Redistricting Board                                                                                                             
                                                                                                                                
       The OMA requires public  notice for meetings and that                                                                    
     decisions be made in public.                                                                                               
       In  two different  redistricting cycles,  courts have                                                                    
     ruled  against the  board's argument  that  it was  not                                                                    
     subject to the OMA.                                                                                                        
       This will  make it crystal clear in  statute that the                                                                    
     board must follow the OMA.                                                                                                 
                                                                                                                                
Mr. Dunsmore looked at slide 23, "Clarifies the Open                                                                            
Meetings Act applies to the Redistricting Board":                                                                               
                                                                                                                                
       The OMA requires public  notice for meetings and that                                                                    
     decisions be made in public.                                                                                               
       In  two different  redistricting cycles,  courts have                                                                    
     ruled  against the  board's argument  that  it was  not                                                                    
     subject to the OMA.                                                                                                        
       This will  make it crystal clear in  statute that the                                                                    
     board must follow the OMA.                                                                                                 
                                                                                                                                
Senator Bishop queried the penalty for defacing, stealing,                                                                      
or damage to a ballot box.                                                                                                      
                                                                                                                                
Mr. Dunsmore replied that the bill did not provide specific                                                                     
penalties other than current law.                                                                                               
                                                                                                                                
Senator Bishop queried the current law for destruction of                                                                       
state property.                                                                                                                 
                                                                                                                                
Mr. Dunsmore agreed to provide that information.                                                                                
                                                                                                                                
Mr. Dunsmore looked at slide 24:                                                                                                
                                                                                                                                
     This  bill  clarifies that  a  voter's  residence is  a                                                                    
     place  where they  have  a  definite, articulable,  and                                                                    
     reasonable plan to return to whenever they are absent.                                                                     
                                                                                                                                
     It  also establishes  that  the  presumption a  voter's                                                                    
     registered  address  is  accurate can  be  rebutted  by                                                                    
     evidence that they reside at another location.                                                                             
                                                                                                                                
1:55:28 PM                                                                                                                    
                                                                                                                                
Senator Kiehl queried more detail  about the three-part test                                                                    
as it relates  to a plan to return to  the state: "definite,                                                                    
articulable, and reasonable plan."                                                                                              
                                                                                                                                
Mr. Dunsmore  replied that it  would not change  the current                                                                    
presumption.                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman queried  the way  to confirm  the plan  to                                                                    
return to the state.                                                                                                            
                                                                                                                                
Mr.  Dunsmore replied  that the  plan to  return was  within                                                                    
current statute.                                                                                                                
                                                                                                                                
Mr. Dunsmore addressed slide 25, "Begin Scanning Absentee                                                                       
Ballots 7 Days Before Election Day":                                                                                            
                                                                                                                                
     This bill  will allow election results  to be available                                                                    
     earlier  by having  the  scanning  of absentee  ballots                                                                    
     begin seven days before Election Day.                                                                                      
                                                                                                                                
     Tabulated results will not be  released until the polls                                                                    
     close at 8pm on Election Day.                                                                                              
                                                                                                                                
Mr. Dunsmore looked  at slide 26, "Adopt  best practices for                                                                    
reporting ranked choice voting results":                                                                                        
                                                                                                                                
     This   bill   adopts   the  national   best   practices                                                                    
     identified by Fair Vote:                                                                                                   
        Requires  unofficial  ranked choice  tabulations  be                                                                    
     released   along  with   the  unofficial   first  round                                                                    
     results.                                                                                                                   
        Contains  in  tent  that updated  cast  vote  record                                                                    
     (CVRs) be released throughout  the counting process, to                                                                    
    allow for independent verification of the results.                                                                          
                                                                                                                                
     This  will  provide  greater  transparency  and  reduce                                                                    
     confusion about results.                                                                                                   
                                                                                                                                
Mr. Dunsmore looked  at slide 27, "Allows  voters to request                                                                    
to  continue to  sign up  to  receive absentee  by mail  for                                                                    
future elections":                                                                                                              
                                                                                                                                
       The  Division currently allows this  for military and                                                                    
     overseas voters.                                                                                                           
       This bill  would allow voters to  continue to receive                                                                    
     by mail if they vote at least once every four years.                                                                       
       Every  absentee ballot returned  will continue  to be                                                                    
     reviewed to ensure it is valid.                                                                                            
                                                                                                                                
Senator Bishop wondered whether the second bullet would                                                                         
preclude someone from requesting a ballot.                                                                                      
                                                                                                                                
Mr. Dunsmore replied that a voter would remain eligible.                                                                        
                                                                                                                                
Co-Chair Hoffman felt that missing an election or two would                                                                     
be a high standard for rural Alaska.                                                                                            
                                                                                                                                
Mr. Dunsmore agreed to provide further information.                                                                             
                                                                                                                                
2:00:51 PM                                                                                                                    
                                                                                                                                
Mr. Dunsmore pointed to slide 28, "Legalize voters                                                                              
photographing their ballots":                                                                                                   
                                                                                                                                
       It  is currently illegal  for voters to  share photos                                                                    
     of their voted ballots.                                                                                                    
       This bill  clarifies they may not share a  photo of a                                                                    
     ballot  to  persuade someone  within  200  feet of  the                                                                    
     polling place.                                                                                                             
       Bans  against ballot  photos have been  challenged as                                                                    
     potentially violating the  First Amendment, although it                                                                    
     appears not  court has  issued a  final ruling  on that                                                                    
     issue.                                                                                                                     
                                                                                                                                
Mr. Dunsmore addressed slide 29, "Codify language                                                                               
assistance requirements":                                                                                                       
                                                                                                                                
       Federal  law requires  the state to  provide language                                                                    
     assistance for voting in certain languages.                                                                                
         Currently   Alaska   provides  assistance   in   10                                                                    
     indigenous languages  and dialects  as well  as Spanish                                                                    
     and Tagalog.                                                                                                               
       This  bill requires  that voters  be able  to request                                                                    
     that  election  materials  be mailed  to  them  in  any                                                                    
     language  for which  the state  is required  to provide                                                                    
     assistance.                                                                                                                
        Information about  the availability  of language  at                                                                    
     polling where language assistance is available.                                                                            
                                                                                                                                
Co-Chair Hoffman  felt that there  were many  instances that                                                                    
showed that  there was  a cumbersome  system for  voting. He                                                                    
felt that  there needed  to be  a more  streamlined approach                                                                    
for access to voting.                                                                                                           
                                                                                                                                
Senator Kawasaki agreed.                                                                                                        
                                                                                                                                
2:05:15 PM                                                                                                                    
                                                                                                                                
Co-Chair  Olson wondered  whether there  was a  way for  all                                                                    
registered voters to receive an absentee bill.                                                                                  
                                                                                                                                
Senator Kawasaki  replied that people in  rural Alaska could                                                                    
benefit from  absentee voting. He  stressed that he  did not                                                                    
want to limit someone from voting in person.                                                                                    
                                                                                                                                
Co-Chair  Hoffman believed  that  there were  issues in  his                                                                    
district that  he felt were  adequately addressed,  and felt                                                                    
that the issue could be fixed on a larger scale.                                                                                
                                                                                                                                
Senator  Wilson  queried  the   process  to  ensure  that  a                                                                    
person's ballot is counted.                                                                                                     
                                                                                                                                
Mr.  Dunsmore replied  that currently  the division  was not                                                                    
required to send notification until after the decision.                                                                         
                                                                                                                                
2:11:09 PM                                                                                                                    
                                                                                                                                
CHRSTOPHER  CONSTANT, CHAIR,  ANCHORAGE ASSEMBLY,  ANCHORAGE                                                                    
(via teleconference), spoke in support of the legislation.                                                                      
                                                                                                                                
2:20:10 PM                                                                                                                    
                                                                                                                                
MICHAEL   GARVEY,   ACLU   OF  ANCHORAGE,   ANCHORAGE   (via                                                                    
teleconference), spoke in support of the legislation.                                                                           
                                                                                                                                
2:23:32 PM                                                                                                                    
                                                                                                                                
Co-Chair Olson OPENED and CLOSED public testimony.                                                                              
                                                                                                                                
2:24:20 PM                                                                                                                    
                                                                                                                                
Mr.  Dunsmore  discussed  the Sectional  Analysis  (copy  on                                                                    
file):                                                                                                                          
                                                                                                                                
     Section  1  is  intent  language for  the  Division  of                                                                    
     Elections (division) to  follow national best practices                                                                    
     for   releasing   ranked-choice   voting   results   by                                                                    
     releasing  preliminary  tabulations  and  updated  cast                                                                    
     vote records throughout the counting process.                                                                              
                                                                                                                                
     Section  2  is  a  conforming  section  reflecting  the                                                                    
     amendments  made in  sections  5-9  allowing voters  to                                                                    
     register to vote within 30 days of an election.                                                                            
                                                                                                                                
     Section  3  clarifies  the  residency  requirements  to                                                                    
     define  a residence  as a  place  where a  voter has  a                                                                    
     definite,  articulable, and  reasonable plan  to return                                                                    
     to whenever they are absent.  It also provides that the                                                                    
     presumption  that  a   voter's  registered  address  is                                                                    
     correct may be rebutted by  evidence that the voter has                                                                    
     established residency at a different location.                                                                             
                                                                                                                                
     Section 4  allows voters to submit  an electronic image                                                                    
     of  their  signatures  when  registering  to  vote  and                                                                    
     requires voter registration forms  to require voters to                                                                    
     certify  that they  understand  the  state will  notify                                                                    
    jurisdiction where they were previously registered.                                                                         
                                                                                                                                
     Section  5   allows  voters  registering  to   vote  to                                                                    
     designate a  language to receive election  materials in                                                                    
     from the  languages that the  Division of  Elections is                                                                    
     required to provide language assistance in.                                                                                
                                                                                                                                
     Section  6 states  that a  person  registering to  vote                                                                    
     within  30  days of  an  election,  and who  meets  the                                                                    
     qualifications  to  register,  may  vote  an  absentee,                                                                    
     special needs, or questioned ballot for that election.                                                                     
                                                                                                                                
     Section 7. states  that a person who  registers to vote                                                                    
     within  30  days  of  an  election  may  only  vote  an                                                                    
     absentee, special  needs, or questioned ballot  in that                                                                    
     election and  their ballot may  not be  rejected solely                                                                    
     because   they   do   not  appear   on   the   official                                                                    
     registration list.                                                                                                         
                                                                                                                                
     Section 8  states that if  a person  whose registration                                                                    
     was previously cancelled  for inactivity reregisters to                                                                    
     vote within 30 days of  an election, they may only vote                                                                    
     an  absentee, special  needs, or  questioned ballot  in                                                                    
     that  election and  their ballot  may  not be  rejected                                                                    
     solely  because  they do  not  appear  on the  official                                                                    
     registration list.                                                                                                         
                                                                                                                                
     Section 9 states  that when a person  registers to vote                                                                    
     in a new  precinct within 30 days of  an election, they                                                                    
     may   only  vote   an  absentee,   special  needs,   or                                                                    
     questioned  ballot in  that election  and their  ballot                                                                    
     may not be  rejected solely because they  do not appear                                                                    
     on the official registration list.                                                                                         
                                                                                                                                
     Section  10 states  that a  person who  is not  already                                                                    
     registered to vote within 30  days of an election, they                                                                    
     may   only  vote   an  absentee,   special  needs,   or                                                                    
     questioned  ballot in  that election  and their  ballot                                                                    
     may not be  rejected solely because they  do not appear                                                                    
     on the official registration list.                                                                                         
                                                                                                                                
     Section  11 amends  the procedures  sending notices  to                                                                    
     verify voters  are still residents  to send  notices to                                                                    
     voters  who have  not voted  in two  years or  who have                                                                    
     evidence of establishing residency in another state.                                                                       
                                                                                                                                
     Section 12  is a conforming section  to remove language                                                                    
     that is addressed in Section 10.                                                                                           
                                                                                                                                
     Section  13  is a  conforming  section  to reflect  the                                                                    
     changes made in Sections 10 and 11.                                                                                        
                                                                                                                                
     Section 14  requires the director to  develop a process                                                                    
     for voters  to cancel  their registrations  and require                                                                    
     that instructions for how  to cancel one's registration                                                                    
     be prominently posted at polling places.                                                                                   
                                                                                                                                
     Section  15  allows   candidates  and  ballot  question                                                                    
     campaigns to  appoint poll  watchers and  ballot review                                                                    
     observers  and  allows   campaigns  to  have  observers                                                                    
     present  at all  locations where  ballots or  envelopes                                                                    
     are being reviewed in a precinct or counting center.                                                                       
                                                                                                                                
     Section 16  allows international election  observers to                                                                    
     be present  at precincts  and counting centers  if they                                                                    
     are part of a mission  of an international organization                                                                    
     of which the  United States is a member  and invited by                                                                    
     the U.S.  State Department to observe  the election and                                                                    
     provides that international  election observers may not                                                                    
     question ballots or challenge ballot review decisions.                                                                     
                                                                                                                                
     Section  17  repeals  the requirement  for  the  Alaska                                                                    
     Public  Offices Commission  to  have  offices in  every                                                                    
     senate district.                                                                                                           
                                                                                                                                
     Section 18  requires the  division to  provide language                                                                    
     assistance  at polling  places as  required by  federal                                                                    
     law  and  to post  information  at  each polling  place                                                                    
     about the language assistance available.                                                                                   
                                                                                                                                
     Section 19  prohibits displaying  an image of  a marked                                                                    
     ballot to  persuade a voter  within a polling  place or                                                                    
    within 200 feet of the entrance to a polling place.                                                                         
                                                                                                                                
     Section 20  requires that voters who  have requested or                                                                    
     voted  absentee   ballots  may  only   vote  questioned                                                                    
     ballots  at  precincts   unless  they  surrender  their                                                                    
     absentee ballot to the poll workers for destruction.                                                                       
                                                                                                                                
     Section 21  is a conforming section  to remove language                                                                    
     that is  made unnecessary by the  amendments in Section                                                                    
     16.                                                                                                                        
                                                                                                                                
     Section  22 clarifies  that  it is  not  illegal for  a                                                                    
     voter to  share an image  of their marked ballot  if it                                                                    
     is not done to persuade another person.                                                                                    
                                                                                                                                
     Section  23 clarifies  that  precincts results  reports                                                                    
     shall list the  number of votes cast  for candidates at                                                                    
     each ranking.                                                                                                              
                                                                                                                                
     Section 24 requires the  division to release unofficial                                                                    
     ranked-choice   voting   tabulations  every   day   the                                                                    
     division releases updated election results.                                                                                
                                                                                                                                
     Section  25 clarifies  how the  division should  handle                                                                    
     ballots when a  voter attempts to vote  more than once.                                                                    
     If a voter  votes in person at their  polling place and                                                                    
     by another means,  the in-person vote shall  be the one                                                                    
     that is counted.  If a voter attempts  to vote multiple                                                                    
     times  through absentee,  special needs,  or questioned                                                                    
     ballots the  first ballot to  be reviewed shall  be the                                                                    
     one that is counted. The voter's                                                                                           
     vote  will only  be counted  if the  division does  not                                                                    
     determine  the  voter  intentionally  voted  more  than                                                                    
     once.                                                                                                                      
                                                                                                                                
     Section  26  requires  the  division  to  conduct  risk                                                                    
     limiting audits prior to certifying election results.                                                                      
          Subsection (a) requires  that risk limiting audits                                                                    
          take place after counting  is completed and before                                                                    
          certification,  and that  they  be designed  using                                                                    
          statistical   methods  to   limit   the  risk   of                                                                    
          certifying an incorrect result.                                                                                       
          Subsection  (b)  requires  the director  to  adopt                                                                    
          regulations for risk limiting audits.                                                                                 
          Subsection   (c)   allows   candidates   to   have                                                                    
          observers witness the audits.                                                                                         
                                                                                                                                
     Section  27 requires  that  the  division provide  paid                                                                    
     return postage  for absentee by-mail  ballots, requires                                                                    
     absentee envelopes have a space  for the date the voter                                                                    
     signed  the ballot,  prohibit  absentee envelopes  from                                                                    
     displaying  a  voter's  party affiliation,  and  has  a                                                                    
     conforming  amendment  to  reflect the  repeal  of  the                                                                    
     witness signature requirement in Section 21.                                                                               
                                                                                                                                
     Section 28  provides that the  division may  not reject                                                                    
     an otherwise  valid special needs ballot  because of an                                                                    
     error by a poll worker or representative.                                                                                  
                                                                                                                                
     Section  29  repeals  the  requirement  for  a  witness                                                                    
     signature for absentee by-mail ballots.                                                                                    
                                                                                                                                
     Section  30 provides  that  a  by-mail ballot  received                                                                    
     after the  election without  a postmark,  or postmarked                                                                    
     after the  date of the  election, may be counted  if it                                                                    
     has a U.S. Postal  Service tracking barcode that verify                                                                    
     it was mailed on or before the date of the election.                                                                       
                                                                                                                                
     Section 31 contains two  provisions related to absentee                                                                    
     by-mail ballots.                                                                                                           
          Subsection  (m)  allows   voters  to  register  to                                                                    
          continue to  receive absentee by-mail  ballots for                                                                    
          future  elections  if  they continue  to  vote  at                                                                    
          least once every four years.                                                                                          
          Subsection (n)  allows voters to  request absentee                                                                    
          by-mail  ballots in  any  language  for which  the                                                                    
          division   is   required   to   provide   language                                                                    
          assistance by federal law.                                                                                            
                                                                                                                                
     Section  32 requires  the  division  to begin  counting                                                                    
     absentee  ballots  at  least   seven  days  before  the                                                                    
     election  and to  release the  first tabulated  results                                                                    
     when polls close at 8pm on Election Day.                                                                                   
                                                                                                                                
     Section  33 contains  conforming amendments  to reflect                                                                    
     the  repeal of  the  witness  signature requirement  in                                                                    
     Section 21, the tracking  barcode provisions in Section                                                                    
     22,  and  the   signature  verification  provisions  in                                                                    
     Section 26.                                                                                                                
                                                                                                                                
     Section   34   requires  signature   verification   for                                                                    
     absentee by-mail ballots.                                                                                                  
                                                                                                                                
     Section 35  requires the  division to  adopt procedures                                                                    
     for challenging  ballot review decisions  by regulation                                                                    
     and  that these  regulations must  provide at  least 24                                                                    
     hours to submit a challenge.                                                                                               
                                                                                                                                
     Section  36 provides  that  ballots  that are  properly                                                                    
     cured under  new AS 15.20.222  shall be  counted during                                                                    
     the  state  review  board  process  if  they  were  not                                                                    
     previously counted.                                                                                                        
                                                                                                                                
     Section 37 enacts two new sections of statutes:                                                                            
          New   AS  15.20.221   requires  the   division  to                                                                    
          establish  a ballot  tracking  system  to allow  a                                                                    
          voter to  track the  status of their  absentee by-                                                                    
          mail ballot.                                                                                                          
          New AS  15.20.222 provides  for ballot  curing for                                                                    
          absentee ballots.                                                                                                     
          • Subsection  (a) requires the division  to notify                                                                    
          voters  if  their  signature cannot  be  verified,                                                                    
          there is  no signature on the  envelope, the voter                                                                    
          does  not have  a  signature on  file,  or if  the                                                                    
          voter did  not provide a sufficient  identifier of                                                                    
          the process to cure their ballot.                                                                                     
          • Subsection (b) requires  that these notices must                                                                    
          explain the need for  a signature for verification                                                                    
          purposes  and  include a  form  for  the voter  to                                                                    
          provide   their   signature   and  copy   of   the                                                                    
          identification.                                                                                                       
          •  Subsection (c)  provides that  a ballot  may be                                                                    
          cured and  counted if the voter  returns the form,                                                                    
          confirms that they did in  fact vote, and provides                                                                    
          a signature and copy of their identification.                                                                         
          • Subsection (d) provides that  a ballot shall not                                                                    
          be  counted,  and  the  director  will  refer  the                                                                    
          matter to the  attorney general for investigation,                                                                    
          if the voter indicates they did not in fact vote                                                                      
          the ballot.                                                                                                           
          • Subsection (e) states that the division shall                                                                       
          update their records with the signature the voter                                                                     
          provides on the ballot curing forms.                                                                                  
                                                                                                                                
     Section  38 requires  the  division  to provide  secure                                                                    
     ballot  drop boxes  in  municipalities  with 20,000  or                                                                    
     more residents.                                                                                                            
                                                                                                                                
     Section  39  clarifies  that  the  return  postage  for                                                                    
     absentee by-mail  ballots required  by Section  19 does                                                                    
     not violate the prohibition on  giving a thing of value                                                                    
     in exchange for a person voting.                                                                                           
                                                                                                                                
     Section   40  requires   the   Division   to  adopt   a                                                                    
     cybersecurity program by regulation.                                                                                       
                                                                                                                                
     Section 41  provides that  political campaign  signs 32                                                                    
     square  feet or  smaller  may be  displayed on  private                                                                    
     property along  state roads outside of  highway rights-                                                                    
     of-way.                                                                                                                    
                                                                                                                                
     Section 42  removes the requirement that  reports filed                                                                    
     with  the Alaska  Public Offices  Commission (APOC)  be                                                                    
     available  at  offices  in every  senate  district  and                                                                    
    requires that they be available on APOC's website.                                                                          
                                                                                                                                
Senator Bishop wondered about municipalities of 20,000 or                                                                       
more.                                                                                                                           
                                                                                                                                
Senator Kawasaki replied that the number was just "thrown                                                                       
out there."                                                                                                                     
                                                                                                                                
Senator Bishop felt that there could be a challenge to that                                                                     
number.                                                                                                                         
                                                                                                                                
2:30:51 PM                                                                                                                    
                                                                                                                                
Mr. Dunsmore continued with the Sectional Analysis:                                                                             
                                                                                                                                
     Section  43  clarifies  that reports  filed  with  APOC                                                                    
     shall be  available at the commission's  offices and on                                                                    
     their website.                                                                                                             
                                                                                                                                
     Section  44 provides  that  in  municipal elections,  a                                                                    
     voter   who  was   not  registered   to  vote   in  the                                                                    
     municipality  within 30  days of  an election  may only                                                                    
     vote an  absentee, special needs, or  questioned ballot                                                                    
     in that election  and their ballot may  not be rejected                                                                    
     solely  because  they do  not  appear  on the  official                                                                    
     registration list.                                                                                                         
                                                                                                                                
     Section 45 makes technical  corrections to the statutes                                                                    
     for public official  financial disclosure for municipal                                                                    
     candidates and officials.                                                                                                  
                                                                                                                                
     Section  46  requires  Redistricting Board  members  to                                                                    
     file annual public  official financial disclosures with                                                                    
     APOC.                                                                                                                      
                                                                                                                                
     Section 47  clarifies that  the Redistricting  Board is                                                                    
     subject to the Open Meetings Act.                                                                                          
                                                                                                                                
     Section 48 repeals several provisions:                                                                                     
          • AS 25.10.170(b) providing  for poll watchers and                                                                    
          ballot review observers  for candidates in primary                                                                    
          elections,  which  is   made  unnecessary  by  the                                                                    
          amendments in Section 11.                                                                                             
          • AS  15.20.203(i) requiring the division  to mail                                                                    
          notices  to voters  whose  ballots were  rejected,                                                                    
          which is  being replaced by the  provisions of new                                                                    
          AS 15.20.222 created by Section 29.                                                                                   
          • AS  15.20.203(j) requiring the  division provide                                                                    
          a system  for absentee voters to  check the status                                                                    
          of their ballot which is  being replaced by new AS                                                                    
          15.20.221 created by Section 29.                                                                                      
          •   AS  29.26.050(a)(3)   requiring  a   voter  be                                                                    
          registered  in a  municipality  30  days before  a                                                                    
          municipal  election  in  order  to  vote  in  that                                                                    
          election.                                                                                                             
                                                                                                                                
     Section  49 is  an applicability  section stating  that                                                                    
     the  amendment  in  Section 31  to  the  definition  of                                                                    
     "other  thing  of  value"   only  applies  to  offenses                                                                    
    committed after the effective date of that section.                                                                         
                                                                                                                                
     Section 50  allows APOC and  the Division  of Elections                                                                    
     to  adopt regulations  to implement  the provisions  of                                                                    
     this bill.                                                                                                                 
                                                                                                                                
     Section  51 provides  an immediate  effective date  for                                                                    
     Section 41.                                                                                                                
                                                                                                                                
     Section 52 provides an effective date of January 1,                                                                        
     2024 for the rest of the bill.                                                                                             
                                                                                                                                
Senator  Wilson noted  some discrepancies  and some  missing                                                                    
items, so felt that there  needed to be a slower examination                                                                    
of the bill.                                                                                                                    
                                                                                                                                
Senator Kawasaki replied  that he was willing  to refine the                                                                    
Sectional  Analysis,  and  stressed that  the  details  were                                                                    
within the bill.                                                                                                                
                                                                                                                                
Mr.  Dunsmore   replied  that  he  would   verify  that  the                                                                    
committee  had  the  accurate  sectional  analysis  for  the                                                                    
current bill version.                                                                                                           
                                                                                                                                
2:35:14 PM                                                                                                                    
                                                                                                                                
Senator Bishop wanted to ask Ms. Beecher a question.                                                                            
                                                                                                                                
2:35:24 PM                                                                                                                    
                                                                                                                                
CAROL  BEECHER, DIRECTOR,  DIVISION OF  ELECTIONS, ANCHORAGE                                                                    
(via teleconference), introduced herself.                                                                                       
                                                                                                                                
Senator Bishop asked whether the  division could execute the                                                                    
regulations in the bill.                                                                                                        
                                                                                                                                
Ms.  Beecher replied  that she  was not  certain, and  noted                                                                    
that it would need to change.                                                                                                   
                                                                                                                                
Senator  Kiehl wondered  whether a  delegate could  sign the                                                                    
sheet for ballot watchers.                                                                                                      
                                                                                                                                
Mr. Dunsmore felt that it was reasonable.                                                                                       
                                                                                                                                
Senator Kawasaki agreed.                                                                                                        
                                                                                                                                
Senator Wilson wondered whether  the signature storing would                                                                    
become a part of public record.                                                                                                 
                                                                                                                                
Mr.  Dunsmore replied  that it  was not  public information,                                                                    
and the division was stored in their database.                                                                                  
                                                                                                                                
Senator  Wilson asked  about the  cyber-security information                                                                    
at its cost.                                                                                                                    
                                                                                                                                
Senator  Kawasaki stated  that  the division  should have  a                                                                    
cyber-security system in place.                                                                                                 
                                                                                                                                
2:40:10 PM                                                                                                                    
                                                                                                                                
Ms. Beecher explained  the fiscal note. She  stated that the                                                                    
division had a cyber-security program.                                                                                          
                                                                                                                                
Senator Wilson queried the discrepancies in the amounts.                                                                        
                                                                                                                                
Ms. Beecher replied  that beginning in FY  17, the operating                                                                    
costs was decided  in order to reduce volatility,  so it was                                                                    
split between two years.                                                                                                        
                                                                                                                                
Senator Wilson wondered whether  the services should also be                                                                    
the full amount for FY 24.                                                                                                      
                                                                                                                                
Ms. Beecher agreed to follow up.                                                                                                
                                                                                                                                
2:45:46 PM                                                                                                                    
                                                                                                                                
Senator Bishop asked for a restatement of the capital cost.                                                                     
                                                                                                                                
Ms.  Beecher replied  that the  capital cost  would be  just                                                                    
over $5 million.                                                                                                                
                                                                                                                                
Senator Bishop  wondered how  long the  verification systems                                                                    
are known to last.                                                                                                              
                                                                                                                                
Ms. Beecher  replied that she  did not know the  lifespan of                                                                    
those systems.                                                                                                                  
                                                                                                                                
Senator Bishop wondered whether  there had been contact with                                                                    
other states about the systems.                                                                                                 
                                                                                                                                
Ms. Beecher replied in the  negative and agreed to reach out                                                                    
to other states.                                                                                                                
                                                                                                                                
Co-Chair Olson REOPENED public testimony.                                                                                       
                                                                                                                                
2:47:32 PM                                                                                                                    
                                                                                                                                
JEANNETTE  LEE,  RESEARCH   DIRECTOR,  SIGHTLINE  INSTITUTE,                                                                    
ANCHORAGE  (via teleconference),  spoke  in  support of  the                                                                    
bill.                                                                                                                           
                                                                                                                                
Co-Chair Olson CLOSED public testimony.                                                                                         
                                                                                                                                
2:50:15 PM                                                                                                                    
                                                                                                                                
Senator Kiehl looked at Section 4, and remarked that the                                                                        
penalty was extremely strong.                                                                                                   
                                                                                                                                
Mr. Dunsmore replied that he would do research related to                                                                       
the issue.                                                                                                                      
                                                                                                                                
Senator Kiehl felt that the penalty did not fit.                                                                                
                                                                                                                                
Co-Chair Olson stated that the amendment deadline was                                                                           
Thursday at noon.                                                                                                               
                                                                                                                                
SB 138 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 122                                                                                                           
                                                                                                                                
     "An  Act  relating  to   the  Multistate  Tax  Compact;                                                                    
     relating  to  apportionment  of income  to  the  state;                                                                    
     relating to highly digitized  businesses subject to the                                                                    
     Alaska  Net  Income  Tax  Act;  and  providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
2:52:25 PM                                                                                                                    
                                                                                                                                
Senator Kiehl MOVED to ADOPT the committee substitute for                                                                       
SB 122, Work Draft 33-LS0663\Y (Nauman, 5/5/23).                                                                                
                                                                                                                                
Co-Chair Olson OBJECTED for discussion.                                                                                         
                                                                                                                                
2:52:57 PM                                                                                                                    
                                                                                                                                
KEN ALPER, STAFF, SENATOR DONNY OLSON, discussed the                                                                            
Summary of Changes (copy on file):                                                                                              
                                                                                                                                
     1) Amends  Sec. 11(e),  page 25 lines  9-12, clarifying                                                                    
     that  public  utilities   and  utilities  that  provide                                                                    
     telecommunications  services  would   not  be  included                                                                    
     within the new "single factor allocation" method.                                                                          
                                                                                                                                
2:54:01 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:54:54 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Mr. Alper continued to discuss the Summary of Changes:                                                                          
                                                                                                                                
      2)  Amends Sec.  12,  page 26  lines  1-5, adding  new                                                                    
     subsections to clarify that an  "entity" paying the 9.4                                                                    
     percent  on  their  allocated  Alaska  income  over  $4                                                                    
     million would  also include an  LLC or any  entity that                                                                    
     filed   for   federal   tax    purposes   as   a   sole                                                                    
    proprietorship, partnership, S-corporation, or LLC.                                                                         
                                                                                                                                
2:56:56 PM                                                                                                                    
                                                                                                                                
Co-Chair   Olson  wondered   whether  the   Rules  Committee                                                                    
chairman was in favor of the committee substitute.                                                                              
                                                                                                                                
Mr. Alper replied in the affirmative.                                                                                           
                                                                                                                                
Senator Bishop  wondered whether  the Department  of Revenue                                                                    
(DOR)  would be  available for  questions at  the next  bill                                                                    
hearing.                                                                                                                        
                                                                                                                                
Mr. Alper replied in the affirmative.                                                                                           
                                                                                                                                
Co-Chair  Olson  WITHDREW  his  OBJECTION.  There  being  NO                                                                    
further OJECTION, it was so ordered.                                                                                            
                                                                                                                                
SB  122  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 48                                                                                                            
                                                                                                                                
     "An   Act  authorizing   the   Department  of   Natural                                                                    
     Resources   to  lease   land   for  carbon   management                                                                    
     purposes;  establishing  a  carbon offset  program  for                                                                    
     state  land;  authorizing  the sale  of  carbon  offset                                                                    
     credits; and providing for an effective date."                                                                             
                                                                                                                                
2:58:24 PM                                                                                                                    
                                                                                                                                
RENA MILLER, SPECIAL ASSISTANT,  OFFICE OF THE COMMISSIONER,                                                                    
DEPARTMENT OF NATURAL RESOURCES,  (DNR) addressed the fiscal                                                                    
notes.                                                                                                                          
                                                                                                                                
2:59:53 PM                                                                                                                    
                                                                                                                                
CHRISTY  COLLES,  DIRECTOR,  DIVISION OF  MINING,  LAND  AND                                                                    
WATER,    DEPARTMENT     OF    NATURAL     RESOURCES    (via                                                                    
teleconference),  introduced  herself.   She  spoke  to  the                                                                    
fiscal note related to the leases portion of the bill.                                                                          
                                                                                                                                
3:01:27 PM                                                                                                                    
                                                                                                                                
ASHLEE   ADOKO,  EXECUTIVE   DIRECTOR,  OFFICE   OF  PROJECT                                                                    
MANAGEMENT AND  PERMITTING, DEPARTMENT OF  NATURAL RESOURCES                                                                    
(via teleconference), spoke to the fiscal note.                                                                                 
                                                                                                                                
3:03:02 PM                                                                                                                    
                                                                                                                                
HELGE  ENG, STATE  FORESTER, DIVISION  OF FORESTRY  AND FIRE                                                                    
PROTECTION,   DEPARTMENT    OF   NATURAL    RESOURCES   (via                                                                    
teleconference), spoke to the fiscal note.                                                                                      
                                                                                                                                
3:05:12 PM                                                                                                                    
                                                                                                                                
Senator Bishop wondered  whether the there could  be a shift                                                                    
to defining it as DGF funds after the revenue began.                                                                            
                                                                                                                                
Ms. Miller replied in the affirmative.                                                                                          
                                                                                                                                
Senator Merrick noted  the two bills related  to carbon. She                                                                    
wondered  which  bill  was  more   of  a  priority  for  the                                                                    
administration.                                                                                                                 
                                                                                                                                
Ms. Miller replied that the  Department of Natural Resources                                                                    
(DNR) would  like both bills  to have potential  to generate                                                                    
revenue.                                                                                                                        
                                                                                                                                
3:07:11 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:07:59 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
3:08:04 PM                                                                                                                    
                                                                                                                                
Ms. Miller discussed the Sectional Analysis:                                                                                    
                                                                                                                                
     Section  1:  Amends  AS   36.30.850(b)  to  exempt  the                                                                    
     Department  of Natural  Resources (DNR)  from following                                                                    
     the state procurement code  when contracting with third                                                                    
     parties  for  purposes  related to  the  carbon  offset                                                                    
     program established  in Section  6. Requires  notice by                                                                    
     DNR  if the  department elects  to use  the procurement                                                                    
     code.                                                                                                                      
                                                                                                                                
     Section  2: Amends  AS  37.05.146(c)  to allow  revenue                                                                    
     from  carbon  offset  credit sales  to  be  treated  as                                                                    
     designated  program  receipts.  This revenue  would  be                                                                    
     deposited  into  a  new   Carbon  Offset  Revenue  Fund                                                                    
     established in Section 6.                                                                                                  
                                                                                                                                
     Section  3:   Conforming  to   Section  4.   Amends  AS                                                                    
     38.05.075(a)  to exempt  state land  leases for  carbon                                                                    
     management purposes from a  requirement to award leases                                                                    
     to the  highest bidder at  public auction or  by sealed                                                                    
     bid  and related  terms when  competitive interest  has                                                                    
     been demonstrated, as  Section 4 establishes procedures                                                                    
     specific to the carbon management purpose leases.                                                                          
                                                                                                                                
     Section 4: Adds  a new section to  AS 38.05 authorizing                                                                    
     DNR to  lease state  land to  third parties  for carbon                                                                    
     management purposes.                                                                                                       
          Proposed AS 38.05.081(b):  Provides an application                                                                    
          process  for   a  state  land  lease   for  carbon                                                                    
          management purposes.                                                                                                  
          Proposed  AS  38.05.081(c):  Sets  a  process  for                                                                    
          deciding between  applications for the  same land;                                                                    
          an aggrieved  applicant may appeal within  20 days                                                                    
          of a decision.                                                                                                        
          Proposed  AS 38.05.081(d):  Caps  land leases  for                                                                    
          carbon  management   purposes  at  55   years  and                                                                    
          requires    the    lease    include    performance                                                                    
          conditions. Requires  DNR to terminate a  lease if                                                                    
          the  land  is  not  being used  for  the  approved                                                                    
          purpose  or  if the  lessee  fails  to meet  lease                                                                    
          requirements  after  a reasonable  opportunity  to                                                                    
          come into compliance.                                                                                                 
          Proposed AS 38.05.081(e):  Specifies a lessee does                                                                    
          not  receive a  preference right  to purchase  the                                                                    
          leased land.                                                                                                          
          Proposed    AS   38.05.081(f):    Requires   lease                                                                    
          compensation  be designed  to maximize  returns to                                                                    
          the state  and be a  form of compensation  set out                                                                    
          in AS 38.05.073(m).                                                                                                   
          Requires separate accounting  of lease revenue and                                                                    
          allows  the Legislature  to appropriate  the lease                                                                    
          revenue to fund the department's leasing program.                                                                     
          Proposed   AS   38.05.081(g):   Applies   standard                                                                    
          provisions   relating  to   sublease,  assignment,                                                                    
          renewal  and   extension  to  leases   for  carbon                                                                    
          management purposes.                                                                                                  
          Proposed AS  38.05.081(h): Requires DNR to  make a                                                                    
          best  interest  finding,   which  includes  public                                                                    
          notice  of  a   preliminary  decision  for  public                                                                    
          comment,  before issuing  a state  land lease  for                                                                    
          carbon   management  purposes.   A  finding   must                                                                    
          include  the  reasonably   foreseeable  effects  a                                                                    
          project  may have  on the  state or  local economy                                                                    
         and the anticipated revenue to the state.                                                                              
          Proposed  AS  38.05.081(i):  Requires  state  land                                                                    
          leased  for carbon  management purposes  to remain                                                                    
          accessible by the public,  to the extent possible,                                                                    
          for  generally allowed  uses such  as hunting  and                                                                    
          fishing.                                                                                                              
          Proposed  AS  38.05.081(j):  Requires  an  annual,                                                                    
          public  report  to  the  Legislature  on  detailed                                                                    
          information  about the  carbon management  purpose                                                                    
          leasing program.                                                                                                      
          Proposed   AS    38.05.081(k):   Defines   "carbon                                                                    
          management" to  include greenhouse  gas mitigation                                                                    
          measures  and  non-geologic  carbon  sequestration                                                                    
          projects.                                                                                                             
                                                                                                                                
     Section  5:   Conforming  to   Section  4,   amends  AS                                                                    
     38.05.102 such that  at the end of  a carbon management                                                                    
     lease if  the state  moves to  sell or  long-term lease                                                                    
     those same lands, the  carbon management purpose lessee                                                                    
     is not granted a preferential right.                                                                                       
                                                                                                                                
     Section  6:   Adds  a  new  article   within  AS  38.95                                                                    
     establishing the  carbon offset program at  DNR through                                                                    
     enactment  of  AS  38.95.400  -  38.95.499.  Defines  a                                                                    
     process  for DNR  to undertake  carbon offset  projects                                                                    
     and creates a fund to receive project revenues.                                                                            
          Proposed  AS  38.95.400:  Establishes  the  carbon                                                                    
          offset  program and  allows DNR  to contract  with                                                                    
          third parties  to carry out the  new program. Caps                                                                    
          commissions  in  contracts  to  no  more  than  30                                                                    
          percent  of the  revenue generated  by the  carbon                                                                    
          offset   project   the    contract   relates   to.                                                                    
          Explicitly  disclaims  application of  the  carbon                                                                    
          offset   program   to    activities   of   private                                                                    
          landowners.                                                                                                           
          Proposed  AS  38.95.410:  Requires  DNR  to  adopt                                                                    
          criteria  to evaluate  carbon  offset projects  on                                                                    
          state  lands; makes  land generally  available for                                                                    
          carbon offset  projects; and ensures  projects are                                                                    
          not undertaken  on legislatively  designated lands                                                                    
          without legislative approval  or unless allowed by                                                                    
          law. Requires a written  finding that a project is                                                                    
          in  the  best  interests  of the  state  before  a                                                                    
          project is  undertaken; caps  project terms  at 55                                                                    
          years;  and requires  land used  for a  project to                                                                    
          remain open to the  public for access, hunting and                                                                    
         fishing and other generally allowed uses.                                                                              
          Proposed  AS  38.95.420:   Allows  DNR  to  enroll                                                                    
          projects  with  a  registry and  requires  DNR  to                                                                    
          maintain certain project records.                                                                                     
          Proposed AS  38.95.430: Creates the  carbon offset                                                                    
          revenue fund  to receive revenue from  the sale of                                                                    
          carbon offsets.  Funds could be used  for purposes                                                                    
          of the  carbon offset  program and to  pay program                                                                    
          administrative costs.  Appropriations to  the fund                                                                    
          do not lapse.                                                                                                         
          Proposed   AS   38.95.440:  Requires   legislative                                                                    
          approval  to  execute  contracts that  exceed  $10                                                                    
          million  in  costs.  Provides the  Legislature  45                                                                    
          days if  already in  session, or  45 days  once in                                                                    
          session if not already in session, to act.                                                                            
          Proposed AS 38.05.450:  Requires an annual, public                                                                    
          report  to the  Legislature on  specific, detailed                                                                    
          information  about  the   Carbon  Offset  Program,                                                                    
          including  the  entities  engaged  in  a  project,                                                                    
          revenues, and project status.                                                                                         
          Proposed  AS 38.95.499:  Defines 16  terms related                                                                    
          to the new program.                                                                                                   
                                                                                                                                
     Section  7:  Adds  a new  subsection  to  AS  41.15.300                                                                    
     making  land within  the Haines  State Forest  Resource                                                                    
     Management Area eligible for a carbon offset project.                                                                      
                                                                                                                                
     Section  8:   Conforming  to   Section  7.   Amends  AS                                                                    
     41.15.315(d)  allowing  Haines  State  Forest  Resource                                                                    
     Management  Area  lands  to be  managed  for  a  carbon                                                                    
     offset project.                                                                                                            
                                                                                                                                
     Section  9:  Conforming  to  Section   7.  Adds  a  new                                                                    
     subsection to  AS 41.15.315 enabling amendments  to the                                                                    
     Haines   State   Forest    Resource   Management   Area                                                                    
     management plan to allow for  carbon offset projects. A                                                                    
     plan  must  identify  land  appropriate  for  a  carbon                                                                    
     offset project  and a project  must be  consistent with                                                                    
     the management plan.                                                                                                       
                                                                                                                                
     Section  10:  Adds a  new  subsection  to AS  41.17.200                                                                    
     authorizing lands within the  State Forest system to be                                                                    
     used for carbon offset projects.                                                                                           
                                                                                                                                
     Section  11:  Conforming  to   Section  10.  Amends  AS                                                                    
     41.17.220 so  State Forest lands are  managed under the                                                                    
     sustained   yield  principle,   AS   41.17,  a   forest                                                                    
     management plan,  and, as  applicable, a  carbon offset                                                                    
     project.                                                                                                                   
                                                                                                                                
     Section  12:  Conforming  to   Section  10.  Amends  AS                                                                    
     41.17.230(a)  to include  carbon offset  projects among                                                                    
     the forest uses a  forest management plan must consider                                                                    
     and permit when compatible  with the primary purpose of                                                                    
     State Forests.                                                                                                             
                                                                                                                                
     Section  13:  Conforming  to Section  10.  Adds  a  new                                                                    
     subsection  to  AS  41.17.230  enabling  amendments  to                                                                    
     State  Forest management  plans to  allow for  a carbon                                                                    
     offset  project.   Requires  plans  to   identify  land                                                                    
     appropriate for a carbon offset  project and requires a                                                                    
     project be consistent with the plan.                                                                                       
                                                                                                                                
     Section 14: Disallows oil and  gas production tax lease                                                                    
     expenditures for  capital costs  incurred for  a carbon                                                                    
     management  purpose  lease  or a  state  carbon  offset                                                                    
     project.                                                                                                                   
                                                                                                                                
     Section 15:  Sets an immediate  effective date  for the                                                                    
     bill.                                                                                                                      
                                                                                                                                
3:11:36 PM                                                                                                                    
                                                                                                                                
JOHN BOYLE, COMMISSIONER, DEPARTMENT OF NATURAL RESOURCES,                                                                      
thanked the committee for hearing the bill. He stated that                                                                      
carbon bills were important at DNR.                                                                                             
                                                                                                                                
SB 48 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
3:13:55 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 3:13 p.m.                                                                                          

Document Name Date/Time Subjects
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
SB138.Letters.pdf SFIN 5/9/2023 1:30:00 PM
SSTA 5/2/2023 3:30:00 PM
SB 138
SB 138 draft powerpoint sfin.pdf SFIN 5/9/2023 1:30:00 PM
SB 138
SB 138 Public Testimony rec'd 050923.pdf SFIN 5/9/2023 1:30:00 PM
SB 138
SB 122 CS Summary of Changes - H to Y 5-9-23.pdf SFIN 5/9/2023 1:30:00 PM
SB 122
SB 122 work draft version Y.pdf SFIN 5/9/2023 1:30:00 PM
SB 122
SB 138 Sectional Analysis.pdf SFIN 5/9/2023 1:30:00 PM
SB 138