CS FOR HOUSE BILL NO. 16(STA) "An Act requiring a group supporting or opposing a candidate or ballot proposition in a state or local election to maintain an address in the state; amending campaign contribution limits for state and local office; directing the Alaska Public Offices Commission to adjust campaign contribution limits for state and local office once each decade beginning in 2031; relating to campaign contribution reporting requirements; relating to administrative complaints filed with the Alaska Public Offices Commission; relating to state election expenditures and contributions made by a foreign-influenced corporation or foreign national; and providing for an effective date." 9:47:39 AM REPRESENTATIVE CALVIN SCHRAGE, SPONSOR, introduced the legislation. He referred to the Sponsor Statement (copy on file): In 2024, Alaska 23RCF2 was certified after a grassroots effort that gathered signatures from nearly 30,000 registered Alaskan voters and met the 7 percent threshold in 32 out of Alaska's 40 house districts. 23RCF2 will be put before voters in the 2026 primary election if the Alaska Legislature does not pass materially similar legislation. Alaska has historically touted some of the strongest, most effective campaign finance laws in the nation, which served to promote better accountability and trust in our elections and elected officials. In recent years, Alaskans have shown their support for fair and reasonable contribution limits, including a 2006 ballot initiative that passed overwhelmingly with 73 percent support. However, in 2021, the Ninth Circuit Court of Appeals struck down Alaska's statutory campaign contribution limits, opening our state and local elections to the threat of unlimited political contributions directly to candidates from anyone, anywhere in the country. House Bill 16 (HB 16) reinstates fair, reasonable, and constitutional campaign contribution limits, which will be adjusted based on Alaska's consumer price index rates moving forward. This will ensure that these limits remain constitutional. 9:50:16 AM Co-Chair Stedman requested a history of the issue, and wondered why the federal limits were not included in the bill. Representative Schrage detailed some history of campaign finance reform in the state. Co-Chair Stedman wondered why the bill was not a ballot measure. Representative Schrage responded that it was an attempt to establish limits before the next election. 9:55:19 AM Co-Chair Stedman requested a history of large contributions in the elections. Representative Schrage replied that an individual was limited to $2000 per election cycle, and explained that there were other means to contribute or influence a political campaign. Co-Chair Hoffman wondered whether there were specific limits to political parties on how much they receive and how much they contribute to candidates. Representative Schrage responded in the affirmative, agreed to provide that information. 9:59:10 AM Co-Chair Hoffman remarked that he had heard of contribution of "hints" of where the funds would go. 10:04:08 AM Senator Kiehl asked about the address requirement in the bill. Representative Schrage replied that it was an amendment, and stated that the state could impose disclosure requirements. Co-Chair Stedman remarked that the intention was to limit outside influence from another state. Representative Schrage replied that it was a $2000 limit. Co-Chair Hoffman wondered whether each member of a family could contribute. Representative Schrage replied in the affirmative. 10:08:01 AM BRUCE BOTELHO, CITIZENS AGAINST MONEY IN POLITICS, JUNEAU, spoke in support of the bill. 10:13:01 AM Co-Chair Stedman wondered why the issue would not be on the ballot. Mr. Botelho replied that it was the desire to be in place for the 2028 election. Co-Chair Stedman felt that the voters should have the right to vote on the issue. Mr. Botelho disagreed, and felt that the voters wanted campaign contribution limits. 10:15:43 AM Co-Chair Hoffman wondered if there was a correlation between urban and rural Alaska. Mr. Botelho detailed the percentages of support. 10:20:00 AM Co-Chair Hoffman OPENED public testimony. 10:20:23 AM MIKE COONS, SELF, WASILLA (via teleconference), testified against the legislation. 10:23:05 AM MERCEDES ARCINIEGA, OUTREACH AND GOOD GOVERNMENT LEAD, ALASKA PUBLIC INTEREST RESEARCH GROUP, ANCHORAGE (via teleconference), testified in support of the legislation. 10:25:39 AM EVELYNN TREFON, SELF, NEWHALEN (via teleconference), spoke in support of the bill. 10:26:56 AM KEVIN MORFORD, PRESIDENT, ALASKA MOVE TO AMEND, CHUGIAK (via teleconference), testified in support of the bill. Co-Chair Hoffman CLOSED public testimony. Senator Kiehl addressed the one zero fiscal note from the Department of Administration. Representative Schrage thanked the committee for hearing the legislation. CSHB 16(STA) was HEARD and HELD in committee for further consideration.