SENATE BILL NO. 284 "An Act relating to state election campaigns, the duties of the Alaska Public Offices Commission, the reporting and disclosure of expenditures and independent expenditures, the filing of reports, and the identification of certain communications in state election campaigns; and providing for an effective date." 2:12:51 PM SENATOR HOLLIS FRENCH discussed the legislation. The bill addresses issues relating to corporations and unions and the independent expenditures made for and against candidates during an election. He pointed out Section 4 and disclosure of expenditures made by unions and corporations for and against candidates. He noted replacement of old language on Page 2, Line 6 concerning dues of commission. He described many instances in the bill where similar changes occur. He stated that "person" refers to everyone with a broad definition. He mentioned added provisions that require that the expenditures be made from an independent account as shown in Section 8. Section 10 prohibits expenditures by foreign nationals. 2:16:15 PM Senator French referred to Section 13, the disclaimer section. He mentioned that the disclaimer refers to the "paid for by" section of campaign advertising. He noted that the disclaimer necessary in radio ads was shortened. 2:18:16 PM Co-Chair Stedman asked about Page 9, Section 18. Senator French explained the Section describes a current provision that replaces the phrase "candidate, group, or individual" with "person" to bring in the corporations and unions working with elections. Co-Chair Stedman asked about punishment for unscrupulous behavior. Senator French responded that campaign misconduct in the second degree is a Class B misdemeanor punishable by a $1000 fine and 90 days in jail. Senator Huggins asked about the $100 plateau. He noted that many candidates receive $99 contributions. He asked why all contributions are not reportable. Senator French responded that all contributions are reportable; the $100 plateau requires information such as the contributor's occupation and employer. He expressed comfort in total disclosure of contributions to corporations and unions. Senator Huggins asked how this provision applies to the Pebble Mine. Senator French answered that those expenditures would not be immediately identified by this bill. Senator Huggins asked how the bill affects a phone bank. Senator French responded that if the phone bank was sponsored by a candidate, this bill would have no impact. He supposed that the phone bank communication transmitted by auto media must be accompanied by a disclaimer as shown on Page 8, Lines 4, 5, 6, and 7. 2:22:29 PM Co-Chair Stedman mentioned one zero fiscal note from the Office of the Governor and one fiscal impact note from the Department of Administration requesting one additional staff person for the Alaska Public Offices Commission for the amount of $131,200. 2:23:02 PM SCOTT SMITH, ALASKA BROADCASTER'S ASSOCIATION (via teleconference) requested clarification of Page 1, Line 11 specifying the effect of the legislation on ballot propositions. Senator French noted that the mentioned piece exists already in statute. The change on Page 1, Lines 9, 10, 11 is the elimination of qualifiers. The chapter now applies to any person making a communication for or against a ballot proposition. Mr. Smith communicated that the broadcasters agree with the need for transparent elections and full disclaimer of messages for the general population. He expressed a small concern about the percent of a given message required for multiple contributors. He suggested that an alternative dimension of the commercial message communicate the additional contributors. The clarification would then allow the limit of the disclaimer not to exceed 33 percent of any given 30 second message. 2:26:10 PM MATT WALLACE, ALASKA PUBLIC INTEREST RESEARCH GROUP (via teleconference) testified in support of the legislation. 2:28:11 PM JASON BRUNE, RESOURCE DEVELOPMENT COUNCIL (via teleconference), testified in support of the legislation. He pointed out Section 15, Page 5 appears to potentially impact an investor's ability to fight an initiative that targets them because they are a domestic subsidiary of a foreign corporation. The Resources Development Council (RDC) supports open disclosure and transparency in election campaigns, however are opposed to a law prohibiting contributions that allow RDC members to fight initiatives that target their industries. 2:30:08 PM Senator Huggins discussed Mr. Brune's testimony and asked if Alaska is in compliance with the Federal Government's process. ALPHEUS BULLARD, LEGISLATIVE LEGAL SERVICES responded that Paragraph 5 applies to a domestic subsidiary of an entity described in Paragraph 2 of 4. The entity described is a foreign national. The paragraph does not prohibit domestic subsidiaries or corporations. Senator Huggins requested further clarification. Senator French stressed the importance of creating a bill that can be easily understood. He offered to provide further assistance and explanation for Senator Huggins. SB 284 was HEARD and HELD in Committee for further consideration.