HB0036b -1- SSHB 36 New Text Underlined [DELETED TEXT BRACKETED] I33-LS0220\B SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 36 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-THIRD LEGISLATURE - FIRST SESSION BY REPRESENTATIVE SCHRAGE Introduced: 1/19/23 Referred: State Affairs, Judiciary A BILL FOR AN ACT ENTITLED "An Act requiring the disclosure of the identity of certain persons, groups, and 1 nongroup entities that expend money in support of or in opposition to an application 2 filed for a state referendum or recall election; relating to political contributions; and 3 providing for an effective date." 4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 5 * Section 1. AS 15.13.010(b) is amended to read: 6 (b) Except as otherwise provided, this chapter applies to contributions, 7 expenditures, and communications made to influence the nomination or election of 8 a candidate or for the purpose of 9 (1) influencing the outcome of a ballot proposition or question; or 10 (2) supporting or opposing 11 (A) an initiative proposal application filed under 12 AS 15.45.020; 13 (B) a referendum application filed under AS 15.45.260; or 14 33-LS0220\B SSHB 36 -2- HB0036b New Text Underlined [DELETED TEXT BRACKETED] (C) a recall application filed under AS 15.45.480 [AS WELL 1 AS THOSE MADE TO INFLUENCE THE NOMINATION OR ELECTION 2 OF A CANDIDATE]. 3 * Sec. 2. AS 15.13.050(a) is amended to read: 4 (a) Before making an expenditure in support of or in opposition to a candidate 5 or before making an expenditure in support of or in opposition to a ballot proposition 6 or question or to an initiative proposal application filed [WITH THE LIEUTENANT 7 GOVERNOR] under AS 15.45.020, a referendum application filed under 8 AS 15.45.260, or a recall application filed under AS 15.45.480, each person other 9 than an individual shall register, on forms provided by the commission, with the 10 commission. 11 * Sec. 3. AS 15.13.065(c) is amended to read: 12 (c) Except for reports required by AS 15.13.040 and 15.13.110 and except for 13 the requirements of AS 15.13.050, 15.13.060, and 15.13.112 - 15.13.114, the 14 provisions of AS 15.13.010 - 15.13.116 do not apply to limit the authority of a person 15 to make contributions to influence the outcome of a ballot proposition. In this 16 subsection, in addition to its meaning in AS 15.80.010, "proposition" includes 17 (1) an issue placed on a ballot to determine whether 18 (A) a constitutional convention shall be called; 19 (B) a debt shall be contracted; 20 (C) an advisory question shall be approved or rejected; or 21 (D) a municipality shall be incorporated; 22 (2) an initiative proposal application filed [WITH THE LIEUTENANT 23 GOVERNOR] under AS 15.45.020; 24 (3) a referendum application filed under AS 15.45.260; and 25 (4) a recall application filed under AS 15.45.480. 26 * Sec. 4. AS 15.13.070(b) is amended to read: 27 (b) Except as provided in (h) of this section, an [AN] individual may 28 contribute not more than 29 (1) $2,000 each campaign period [$500 PER YEAR] to a nongroup 30 entity for the purpose of influencing the nomination or election of a candidate, to a 31 33-LS0220\B HB0036b -3- SSHB 36 New Text Underlined [DELETED TEXT BRACKETED] candidate, or to an individual who conducts a write-in campaign as a candidate [, OR 1 TO A GROUP THAT IS NOT A POLITICAL PARTY]; 2 (2) $5,000 a [PER] year to a political party or other group. 3 * Sec. 5. AS 15.13.070(c) is amended to read: 4 (c) Except as provided in (h) of this section, a [A] group that is not a 5 political party may contribute not more than 6 (1) $4,000 each campaign period [$1,000 PER YEAR (1)] to a 7 candidate, or to an individual who conducts a write-in campaign as a candidate; 8 (2) $5,000 each year to another group, to a nongroup entity, or to a 9 political party. 10 * Sec. 6. AS 15.13.070(f) is amended to read: 11 (f) Except as provided in (h) of this section, a [A] nongroup entity may 12 contribute not more than 13 (1) $4,000 each campaign period [$1,000 A YEAR] to another 14 nongroup entity for the purpose of influencing the nomination or election of a 15 candidate, to a candidate, or to an individual who conducts a write-in campaign as a 16 candidate; 17 (2) $5,000 each year [,] to a group [,] or to a political party. 18 * Sec. 7. AS 15.13.070(g) is amended to read: 19 (g) Where contributions are made to a joint campaign for governor and 20 lieutenant governor, 21 (1) an individual may contribute not more than $4,000 each campaign 22 period [$1,000 PER YEAR]; and 23 (2) a group may contribute not more than $8,000 each campaign 24 period [$2,000 PER YEAR]. 25 * Sec. 8. AS 15.13.070 is amended by adding new subsections to read: 26 (h) The contribution limits provided under (b)(1), (c)(2), and (f) of this section 27 do not apply to an individual, group, or nongroup entity contributing to a group or 28 nongroup entity that makes only independent expenditures. 29 (i) Beginning in the first quarter of calendar year 2031 and every 10 years 30 thereafter, the commission shall, by regulation, adjust the contribution limitations set 31 33-LS0220\B SSHB 36 -4- HB0036b New Text Underlined [DELETED TEXT BRACKETED] out in this section by a percentage equal to the percentage of increase over the 1 preceding 10-year period in all items of the Consumer Price Index for all urban 2 consumers for urban Alaska, rounded to the nearest $50 increment. 3 * Sec. 9. AS 15.13 is amended by adding a new section to read: 4 Sec. 15.13.092. Identification of nonresident contributors to a candidate. 5 (a) In addition to the information required by AS 15.13.090, all communications paid 6 for by a candidate who has received more than 25 percent of the candidate's aggregate 7 contributions from true sources, or their equivalents, who, at the time of the 8 contribution, reside or have their principal place of business outside the state, must 9 identify that the majority of the candidate's contributions originated from outside the 10 state. 11 (b) A communication subject to this section that includes a print or video 12 component must have the following statement placed in the communication so as to be 13 easily discernible: "More than 25 percent of the aggregate contributions to (candidate's 14 name) came from outside the State of Alaska." In a broadcast, cable, satellite, Internet, 15 or other digital communication, the statement must remain onscreen throughout the 16 entirety of the communication. 17 (c) A communication subject to this section that is transmitted through radio 18 or other audio media or that includes an audio component must include the following 19 statement, read in a manner that is easily heard: "More than 25 percent of the 20 aggregate contributions to (candidate's name) came from outside the State of Alaska." 21 * Sec. 10. AS 15.13.110(e) is amended to read: 22 (e) A referendum committee, person, group, or nongroup entity receiving 23 contributions exceeding $500 or making expenditures exceeding $500 in a 24 calendar year in support of or in opposition to a referendum on the ballot in a 25 statewide election or a referendum application filed with the lieutenant governor 26 under AS 15.45.260 shall file a [GROUP FORMED TO SPONSOR A 27 REFERENDUM OR A RECALL SHALL REPORT 30 DAYS AFTER ITS FIRST 28 FILING WITH THE LIEUTENANT GOVERNOR. THEREAFTER, EACH GROUP 29 SHALL] report within 10 days after the end of each calendar quarter on the 30 contributions received and expenditures made during the preceding calendar quarter 31 33-LS0220\B HB0036b -5- SSHB 36 New Text Underlined [DELETED TEXT BRACKETED] until reports are due under (a) and (b) of this section. If the report is a first report, it 1 must cover the period beginning the day a referendum application is filed under 2 AS 15.45.260 and ending three days before the due date of the report. 3 * Sec. 11. AS 15.13.110(i) is amended to read: 4 (i) During a campaign period, the commission may not change the manner or 5 format in which reports required of a candidate under this chapter must be filed. [IN 6 THIS SUBSECTION, "CAMPAIGN PERIOD" MEANS THE PERIOD BEGINNING 7 ON THE DATE THAT A CANDIDATE BECOMES ELIGIBLE TO RECEIVE 8 CAMPAIGN CONTRIBUTIONS UNDER THIS CHAPTER AND ENDING ON 9 THE DATE THAT A FINAL REPORT FOR THAT SAME CAMPAIGN MUST BE 10 FILED.] 11 * Sec. 12. AS 15.13.110 is amended by adding a new subsection to read: 12 (l) A recall committee, person, group, or nongroup entity receiving 13 contributions exceeding $500 or making expenditures exceeding $500 in a calendar 14 year in support of or in opposition to the recall of a public official in a statewide 15 election or a recall application filed with the lieutenant governor under AS 15.45.480 16 shall file a report within 10 days after the end of each calendar quarter on the 17 contributions received and expenditures made during the preceding calendar quarter 18 until reports are due under (a) and (b) of this section. If the report is a first report, it 19 must cover the period beginning the day a recall application is filed under 20 AS 15.45.480 and ending three days before the due date of the report. 21 * Sec. 13. AS 15.13.400(4) is amended to read: 22 (4) "contribution" 23 (A) means a purchase, payment, promise or obligation to pay, 24 loan or loan guarantee, deposit or gift of money, goods, or services for which 25 charge is ordinarily made, and includes the payment by a person other than a 26 candidate or political party or other group, or compensation for the personal 27 services of another person, that is rendered to the candidate or political party 28 or other group [,] and that is made for the purpose of 29 (i) influencing the nomination or election of a 30 candidate; 31 33-LS0220\B SSHB 36 -6- HB0036b New Text Underlined [DELETED TEXT BRACKETED] (ii) influencing a ballot proposition or question; or 1 (iii) supporting or opposing an initiative proposal 2 application filed [WITH THE LIEUTENANT GOVERNOR] under 3 AS 15.45.020, a referendum application filed under AS 15.45.260, 4 or a recall application filed under AS 15.45.480; 5 (B) does not include 6 (i) services provided without compensation by 7 individuals volunteering a portion or all of their time on behalf of a 8 political party, candidate, or ballot proposition or question; 9 (ii) ordinary hospitality in a home; 10 (iii) two or fewer mass mailings before each election by 11 each political party describing members of the party running as 12 candidates for public office in that election, which may include 13 photographs, biographies, and information about the candidates; 14 (iv) the results of a poll limited to issues and not 15 mentioning any candidate, unless the poll was requested by or designed 16 primarily to benefit the candidate; 17 (v) any communication in the form of a newsletter from 18 a legislator to the legislator's constituents, except a communication 19 expressly advocating the election or defeat of a candidate or a 20 newsletter or material in a newsletter that is clearly only for the private 21 benefit of a legislator or a legislative employee; 22 (vi) a fundraising list provided without compensation 23 by one candidate or political party to a candidate or political party; or 24 (vii) an opportunity to participate in a candidate forum 25 provided to a candidate without compensation to the candidate by 26 another person and for which a candidate is not ordinarily charged; 27 * Sec. 14. AS 15.13.400(7) is amended to read: 28 (7) "expenditure" 29 (A) means a purchase or a transfer of money or anything of 30 value, or promise or agreement to purchase or transfer money or anything of 31 33-LS0220\B HB0036b -7- SSHB 36 New Text Underlined [DELETED TEXT BRACKETED] value, incurred or made for the purpose of 1 (i) influencing the nomination or election of a candidate 2 or of any individual who files for nomination at a later date and 3 becomes a candidate; 4 (ii) use by a political party; 5 (iii) the payment by a person other than a candidate or 6 political party of compensation for the personal services of another 7 person that are rendered to a candidate or political party; 8 (iv) influencing the outcome of a ballot proposition or 9 question; or 10 (v) supporting or opposing an initiative proposal 11 application filed [WITH THE LIEUTENANT GOVERNOR] under 12 AS 15.45.020, a referendum application filed under AS 15.45.260, 13 or a recall application filed under AS 15.45.480; 14 (B) does not include a candidate's filing fee or the cost of 15 preparing reports and statements required by this chapter; 16 (C) includes an express communication and an electioneering 17 communication, but does not include an issues communication; 18 * Sec. 15. AS 15.13.400(9) is amended to read: 19 (9) "group" means 20 (A) every state and regional executive committee of a political 21 party; 22 (B) any combination of two or more individuals acting jointly 23 who organize for the principal purpose of influencing the outcome of one or 24 more elections and who take action the major purpose of which is to influence 25 the outcome of an election; a group that makes expenditures or receives 26 contributions with the authorization or consent, express or implied, or under 27 the control, direct or indirect, of a candidate shall be considered to be 28 controlled by that candidate; a group whose major purpose is to further the 29 nomination, election, or candidacy of only one individual, or intends to expend 30 more than 50 percent of its money on a single candidate, shall be considered to 31 33-LS0220\B SSHB 36 -8- HB0036b New Text Underlined [DELETED TEXT BRACKETED] be controlled by that candidate and its actions done with the candidate's 1 knowledge and consent unless, within 10 days from the date the candidate 2 learns of the existence of the group the candidate files with the commission, on 3 a form provided by the commission, an affidavit that the group is operating 4 without the candidate's control; a group organized for more than one year 5 preceding an election and endorsing candidates for more than one office or 6 more than one political party is presumed not to be controlled by a candidate; 7 however, a group that contributes more than 50 percent of its money to or on 8 behalf of one candidate shall be considered to support only one candidate for 9 purposes of AS 15.13.070, whether or not control of the group has been 10 disclaimed by the candidate; and 11 (C) any combination of two or more individuals acting jointly 12 who organize for the principal purpose of filing 13 (i) an initiative proposal application under 14 AS 15.45.020 or who file an initiative proposal application under 15 AS 15.45.020; 16 (ii) a referendum application under AS 15.45.260 or 17 who file a referendum application under AS 15.45.260; or 18 (iii) a recall application under AS 15.45.480 or who 19 file a recall application under AS 15.45.480; 20 * Sec. 16. AS 15.13.400 is amended by adding a new paragraph to read: 21 (20) "campaign period" means the period beginning on the date that a 22 candidate becomes eligible to receive campaign contributions under this chapter and 23 ending on the date that a final report for that same campaign must be filed. 24 * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to 25 read: 26 APPLICABILITY. Sections 1 - 3, 10, and 12 - 15 of this Act apply only to a 27 referendum or recall for which the application is filed with the lieutenant governor under 28 AS 15.45.260 or 15.45.480, respectively, on or after the effective date of secs. 1 - 3, 10, and 29 12 - 15 of this Act. 30 * Sec. 18. Sections 4 - 9, 11, and 16 of this Act take effect immediately under 31 33-LS0220\B HB0036b -9- SSHB 36 New Text Underlined [DELETED TEXT BRACKETED] AS 01.10.070(c). 1 * Sec. 19. Except as provided in sec. 18 of this Act, this Act takes effect January 1, 2024. 2