HB 157-APOC; REPORT REFERENDA/RECALL CONTRIBUTOR  2:53:17 PM CHAIR HOLLAND announced the consideration of CS FOR HOUSE BILL NO. 157(FIN) "An Act requiring the disclosure of the identity of certain persons, groups, and nongroup entities that expend money in support of or in opposition to an application filed for a state referendum or recall election; relating to the location of offices for the Alaska Public Offices Commission and the locations at which certain statements and reports filed with the commission are made available; relating to the duties of the Alaska Public Offices Commission; clarifying the limits on making, accepting, and reporting certain cash campaign contributions; relating to campaign finance reporting by certain groups; increasing the time the Alaska Public Offices Commission has to respond to a request for an advisory opinion; repealing a reporting requirement for certain contributions; relating to contribution limits and recall campaigns; and providing for an effective date." 2:53:59 PM REPRESENTATIVE SARA RASMUSSEN, Alaska State Legislature, Juneau, Alaska, paraphrased the sponsor statement. [Original punctuation provided.] House Bill 157 moves the statutory boundary for disclosing certain contributions and expenditures from those made to influence a referendum or recall election to an earlier point in the statutory process. It will require the reporting of certain campaign finance activity prior to the collection of signatures. This will align both the recall/referendum reporting requirements with reporting requirements for ballot initiatives. Aligning reporting requirements will help the electorate make informed decisions, impose varying requirements based on type and level of advocacy, and otherwise embody the features that the Ninth Circuit identified in electioneering disclosure laws that survive exacting scrutiny under the First Amendment. According to Legislative Legal, "this bill's expansion of disclosure requirements in the recall and referendum context will likely survive a First Amendment challenge." House Bill 157 will streamline reporting requirements to regain and maintain the public's trust in our election process. 2:55:11 PM CRYSTAL KOENEMAN, Staff, Representative Sara Rasmussen, Alaska State Legislature, Juneau, Alaska, presented the sectional analysis for HB 157 on behalf of the sponsor. [Original punctuation provided.] Section 1: AS 15.13.010(b) Applicability related to State Election Campaigns. Adds language to the applicability section that state the chapter applies to contributions, expenditures, and communications that are made to influence the nomination or election of a candidate. And for the purpose of influencing a ballot proposition or question or for supporting or opposing and initiative proposal, recall, or referendum. Section 2: AS 15.13.020(j) Alaska Public Offices Commission. Removes the requirement for an APOC office to be located in each Senate District. 2:56:11 PM Section 3: AS 15.13.030 Duties of the commission. Removes the word "ALL" from the phrase "examine, investigate, and compare [all] reports, statements, and actions required by this chapter." Sections 4-8: AS 15.13.040(b), 15.13.072(b), and 15.13.074(e). Clarifies that contributions and expenditures are in a calendar year instead of left open ended. Section 5: AS 15.13.050(a) Registration before expenditure. Adds language regarding referendums or recalls to the statute that requires persons to register with APOC prior to making an expenditure. Section 6: AS 15.13.065(c) Contributions. Adds language related to referendum and recall applications to what is included in the definition of proposition. 2:57:22 PM Section 9: AS 15.13.110(e) Filing of Reports. Rewrites the language related to those receiving or making expenditures to support or oppose referendums. This language is identical to the language contained in AS 15.13.040(k) for ballot proposition reporting requirements and AS 15.13.110(g) for ballot initiative reporting requirements. Section 10: AS 15.13.110 Filing of Reports. Adds a new subsection (k) for those receiving or making expenditures to support or oppose a recall. This language is similar to Section 4 of this bill and AS 15.13.040(k) for ballot proposition reporting requirements and AS 15.13.110(g) for ballot initiative reporting requirements. (This is the conforming language to align the recall/referendum reporting requirement with the ballot props and initiatives. Section 12 14 are modify definitions to include the new language for recall and referendums.) 2:58:09 PM Sections 12-14: AS 15.13.400(4), and (7) Definitions. Modifies the definition of "contributions" to include groups and referendum and recall applications, modifies the definition of "expenditures" to include referendum and recall applications, and modifies the definition of "group" to include referendum and recall applications. Sections 15-16: AS 24.45.091 Publication of reports. Provides for publication of reports and archives of statements and reports to be posted on their website as well as have copies available at the central office. Section 17: Repeals AS 15.13.040(k). Provides that recall applications are subject to group contribution limitations whereas referendum applications are not. Section 18: Uncodified law. States that this Act applies only to referendums or recalls that are filed on or after the effective date of this Act. Sections 19: Provides for a January 1, 2022 effective date. 2:59:47 PM SENATOR MYERS referred to Section 6, page 4, lines 29-30, which would exclude recall applications and recall questions from the reporting requirements. He asked why the bill treats initiatives and referenda differently from recall petitions. MS. KOENEMAN responded that this section deals with propositions, so there is a difference between ballot propositions, initiatives, and recall petitions. It clearly states what is included within that ballot proposition. 3:00:36 PM SENATOR KIEHL offered his view that it was a good bill on the whole. He referred to Section 8 on page 5. He recalled that before the bill, the maximum amount for a cash contribution to a campaign was $100 in the last 18 months, and this changed it to a calendar year. He asked whether, hypothetically, a campaign could take in twice as much cash from an individual. REPRESENTATIVE RASMUSSEN answered that this lines it up with what was previously the $100 cash limit to keep parity between candidates on the cash rule. Obviously, that may have been challenged by recent APOC and Judiciary announcements. She anticipated that Ms. Koeneman could expand on that ruling. 3:02:00 PM MS. KOENEMAN related her understanding that APOC has interpreted the statutes as a calendar year because the statutes don't identify a date, so APOC's practice will not change under the bill. 3:02:33 PM SENATOR KIEHL noted that while limits on cash contributions are important, he did not believe the difference between $100 and $200 increases the risk for corruption. He directed attention to Section 10, lines 24-25, related to a committee or group supporting or opposing a recall of a public official in a statewide election, or a recall application filed under AS 15.45.480. He asked why it would apply to both because AS 15.45.480 includes the governor and lieutenant governor in statewide elections. 3:03:31 PM REPRESENTATIVE RASMUSSEN offered her belief that this would apply to legislative candidates and statewide elections. She recalled that the House floor debated about whether to apply this to statewide elections but decided all statewide and legislative candidates should have similar reporting rules. 3:04:03 PM SENATOR KIEHL acknowledged that he had missed that aspect. 3:04:16 PM SENATOR SHOWER stated that he would review the bill to ensure that nothing was missed in terms of reporting requirements. He echoed Senator Kiehl's assessment that HB 157 is a good bill. 3:05:47 PM REPRESENTATIVE RASMUSSEN offered her willingness to examine the bill to identify any provisions that need to be updated. For example, it might be appropriate to consider some reporting requirement dates. Currently, individual campaigns must file reports in the middle of the legislative session. However, these reporting requirements coincide with the budget process. After discussing this with APOC, the commission agreed that some of those reporting dates could be adjusted to achieve transparency but not interfere with legislative budget deliberations. 3:05:55 PM CHAIR HOLLAND held HB 157 in committee.