SB 43-ELECTIONS, VOTING, CAMPAIGN FINANCE  3:32:37 PM CHAIR SHOWER announced the consideration of SENATE BILL NO. 43 "An Act relating to campaign finance and initiatives; relating to elections and voting; and relating to unlawful interference with voting." CHAIR SHOWER advised that he and the sponsor discussed the bill extensively and agreed that the best way forward was to introduce a committee substitute (CS) that limits the focus of the bill to campaign finance. 3:33:23 PM SENATOR SHELLEY HUGHES, Alaska State Legislature, Juneau, Alaska, sponsor of SB 43, introduced the legislation speaking to the following sponsor statement: Senate Bill 43 improves transparency and accountability in campaign finance laws pertaining to ballot initiatives and offers solutions to help secure the integrity of our election system in Alaska to prevent the possibility of what has been commonly referred to as "ballot harvesting". This bill is nonpartisan and provides no advantage or disadvantage to one political party over another. The goal is to prevent dark money in all elections in our state and to prevent a person with a conflict of interest from being involved with the ballot-casting process of a registered voter. In regard to the "dark money" provisions, the bill applies the provisions in the recent Ballot Measure Two (passed in November 2020) to ballot propositions in future elections. For instance, SB 43 requires those who contribute more than $2000 to an independent expenditure group in a calendar year to report that contribution within 24 hours; any campaign receiving more than $2000 from an independent expenditure group must also report that contribution within 24 hours. In addition, anonymous contributions, or a contribution made under a fictitious or another person's name to an independent expenditure group is prohibited. These provisions would help Alaskans know the true source of contributions to ballot measures, including whether a contribution is from an in-state source or from an out-of-state source. This bill effectively shines light on dark money pertaining to ballot measures and drives the shadows out of Alaska. SB 43 also makes amendments to statute to prevent the possibility in Alaska of what is commonly referred to as ballot harvesting. SB 43 details who may and who may not assist a voter in completing and submitting an absentee ballot. A person who has a conflict of interest cannot help a voter fill out or be in possession of a ballot that is not theirs. The legislation includes some teeth: it makes unlawful assistance by such a person a crime punishable by up to one year of jail and a fine of up to $10,000. Other states have closed this loophole that would allow a bad actor to take advantage of a voter; it is time for Alaska to close it as well. The elections and voting sections of this bill clarify language to provide consistency in application, which in turn provide Alaskans with assurance and confidence. Elections are a cornerstone to our constitutional representative republic and help ensure our American form of government can continue. Because of this, during election season, we as legislators must ensure transparency and untainted funding in regard to initiatives; secondly, for the individual casting a ballot, we must ensure protection against interference by those with a conflict of interest. SENATOR HUGHES confirmed that she and the sponsor agreed that the forthcoming CS for SB 43 would be limited to the subject of campaign finance and expansion of the provisions of Ballot Measure 2. 3:38:57 PM RILEY NYE, Intern, Senator Shelley Hughes, Alaska State Legislature, Juneau, Alaska, presented the following sectional analysis for SB 39. Sec. 1 - AS 15.13.040(s) Page 1, Lines 5 to Page 2,  Lines 7  Expands the reporting requirements for those who contributed more than $2,000 in aggregate in a calendar year to an independent expenditure group to include all elections, not just candidate elections. MR. NYE advised that this was in Section 7, page 4, of Ballot Measure 2. Sec. 2 - AS 15.13.065(c) Page 2, Lines 8 - 21  Conforming language to add AS 15.13.074(b) to the list of requirements in AS 15.13 that do apply to ballot propositions. This section states that all other sections in AS 15.13 except for those listed, do not apply to ballot propositions. MR. NYE advised that AS 15.13.074(b) was in Section 9 of Ballot Measure 2. It states: A person or group may not make a contribution anonymously, using a fictitious name, or using the name of another. Individuals, persons, or non-group entities or groups subject to AS 15.13.040(s) may not contribute or accept $2,000 or more of dark money as that term is defined in AS 15.13.400(17), and may not make a contribution while acting as an intermediary without disclosing the true source of the contribution as defined in AS 15.13.400(18). MR. NYE advised that the definitions of "dark money" and "true source" were found in Sections 17 and 18 of Ballot Measure 2. SB 43 proposes no changes to those definitions. 3:41:06 PM Sec. 3 - AS 15.13.110(k) Page 2, Lines 23 through Page  3, Line 2  Expands the reporting requirements for those who received more than $2,000 in a calendar year from an independent expenditure group to include all elections, not just candidate elections. MR NYE advised that the foregoing was in Section 14, page 6, of Ballot Measure 2. Sec. 4 - AS 15.13.400(19) Page 3, Lines 4 - 9  Revises the definition of "outside-funded entity" to include entities that make independent expenditures to any election in Alaska, but whose place of business is outside the state of Alaska. MR. NYE advised that the foregoing definition was in Section 19, page 8, of Ballot Measure 2. Sec. 5 - AS 15.30.081(m) Page 3, Lines 11-17  New subsection specifying who may and who may not assist a voter in completing an absentee ballot. MR NYE advised that the new subsection also specified that anybody assisting another in completing a ballot must give their name and address and sign the voter certificate certifying that they assisted the voter in completing the ballot. Sec. 6 - AS 15.56.035(a) Page 3, Lines 19-31  This section expands the crime of unlawful interference with voting. MR. NYE advised that unlawful interference includes: 1) a person who violates Section 5 of SB 43, 2) a candidate, ballot measure campaign employee, volunteer, sponsor, or circulator who knowingly assists a voter in marking an absentee ballot, 3) anybody who knowingly possesses a ballot for a statewide election that was mailed to another person unless that person is a) an election official, b) a US Postal Service employee, c) a person allowed by law to collect and transport US mail, or d) a family member or caregiver of the voter. Sec. 7 - AS 15.56.035 Page 5, Lines 1-16  New subsection adding definitions referenced in new subsections in the bill. MR. NYE advised that the new definitions were for the terms "caregiver," "family member," "household member," and "possess." Sec. 8 - AS 15.07.130(e)(3) and AS 15.20.800 Page 5,  Line 12  This section repeals Vote by mail and a reference to Vote by mail from statute. Sec. 9 - AS 15.56.035(a)(8) - (10) Page 5, Lines 15- 16)  Applicability of section six is specified as after the effective date. CHAIR SHOWER solicited a motion to adopt the CS. 3:44:00 PM SENATOR REINBOLD moved to adopt CSSB 43(STA), work order GS- 320253\I, as the working document. CHAIR SHOWER objected for discussion purposes. 3:45:39 PM At ease 3:46:03 PM CHAIR SHOWER reconvened the meeting and asked Mr. Shanigan to go through the changes between version B and version I of SB 43. 3:46:17 PM TERRENCE SHANIGAN, Staff, Senator Mike Shower, Alaska State Legislature, Juneau, Alaska, stated that the CS removes Sections 5 through 9, and the remaining sections are unchanged. He noted that removing those sections triggered a title change. CHAIR SHOWER explained that removing those sections tightens the bill and eliminates some overlap. He noted that another CS was forthcoming to eliminate further overlap with other legislation. 3:47:32 PM CHAIR SHOWER removed his objection and CSSB 43(STA), version I, was adopted. SENATOR REINBOLD thanked the sponsor and chair for working together on the legislation. She expressed her pleasure at the collegiality this session. CHAIR SHOWER asked the sponsor if she was satisfied that the changes to the bill achieve sufficient transparency such that nobody would be able be able to spend money from inside or outside Alaska to influence an election without reporting the expenditure. 3:50:06 PM SENATOR HUGHES replied the bill seeks to address Alaskans' desire for accountability and transparency and concern about dark money influencing elections. She said she was receptive if anybody found another loophole to close. CHAIR SHOWER asked what was in SB 43 that Ballot Measure 2 did not cover. SENATOR HUGHES replied it provides transparency so Alaskans know the true source of a campaign contribution, including where the person came from. CHAIR SHOWER asked for an example of what might happen without the bill. SENATOR HUGHES cited the example of an entity headquartered in the Lower 48 that is collecting money from multiple states and feeding the funds into a measure in Alaska. Alaskans would not know that the true source was from outside the state. SB 43 requires reporting the true source. 3:52:49 PM SENATOR KAWASAKI referenced Section 1 and asked if an entity that made more than one independent expenditure in an election would be required to report each of the individuals who contributed even if not all the funds went to Alaska. He cited the example of the Republican State Leadership Committee (RSLC) that was active in Alaska in both the primary and state election. The RSLC raised more than $150 million over the last several years to go to targeted states, one of which was Alaska. 3:53:58 PM BUDDY WHITT, Staff, Senator Shelley Hughes, Alaska State Legislature, Juneau, Alaska, explained that when Ballot Measure 2 passed, it became APOC's responsibility to work through the mechanics and write the regulations for how those contributions would be reported. He said Sections 1 and 3 of SB 43 would ensure that those same mechanics and regulations apply to statewide ballot initiatives as well. To the specific question, he said he imagines that APOC will require specific information if out-of-state money is received for in-state campaigns and in- state campaigns cannot receive that money unless the reporting requirements are attached. He said that already applies for any political party and campaign candidates. By removing the word "candidate," if the RSLC, for example, contributes to an Alaska statewide ballot initiative, before anybody can receive that money, if it is classified as an independent expenditure group, they would need to comply with reporting requirements. If they cannot comply, he said his understanding is that they would be in breach of the law and would not be able to accept that money. SENATOR HUGHES added that sponsors of a ballot initiative would have to meet the same reporting requirements as a candidate. CHAIR SHOWER observed that it sounds as though the answer potentially is yes. 3:56:52 PM SENATOR KAWASAKI said his question is whether an entity like the RSLC would have to report within 24 hours of the contribution every single donor who has donated [$2,000 or more] and the entity that receives the contribution would have to know where the money is coming from. He said he would like to have the director of APOC online to answer that question at a future meeting. CHAIR SHOWER questioned whether Hans Zigmund, Department of Administration director of the Division of Finance could answer the question. SENATOR HUGHES replied the question would be specific to APOC. She added that each entity like RSLC is keeping records of the contributions. If SB 43 passes, entities such as RSLC would have to transmit that information when they transmit the money to an in-state campaign. She highlighted that this would only apply to those individuals who contribute $2,000 or more. 3:58:53 PM SENATOR REINBOLD asked if she worked on this issue before this session. SENATOR HUGHES replied she began thinking about it over the summer and fall. 3:59:37 PM CHAIR SHOWER held SB 43 in committee.