Legislature(2009 - 2010)BELTZ 105 (TSBldg)

03/17/2010 01:30 PM JUDICIARY


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmations: TELECONFERENCED
Public Defender; Boards and Commissions
+= SB 202 HATE CRIMES TELECONFERENCED
Moved CSSB 202(JUD) Out of Committee
*+ SB 297 RETURN OF SEIZED PROPERTY TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
= SB 284 CAMPAIGN EXPENDITURES
Moved CSSB 284(JUD) Out of Committee
                  SB 284-CAMPAIGN EXPENDITURES                                                                              
                                                                                                                                
1:38:59 PM                                                                                                                    
CHAIR FRENCH announced the consideration  of SB 284 and asked for                                                               
a   motion  to   adopt   the  committee   substitute  (CS)   that                                                               
incorporates  the amendments  that  were adopted  at the  3/15/10                                                               
hearing.                                                                                                                        
                                                                                                                                
1:39:34 PM                                                                                                                    
SENATOR WIELECHOWSKI  moved to adopt  CS for SB 284,  labeled 26-                                                               
LS1448\E,  as the  working document.  There  being no  objection,                                                               
version E was before the committee.                                                                                             
                                                                                                                                
CHAIR FRENCH  moved to adopt Amendment  1, labeled 26-LS1448\E.1,                                                               
and  objected  for discussion  purposes.  He  explained that  the                                                               
drafter suggested that  it would be helpful to  the Alaska Public                                                               
Offices Commission  (APOC) to include definitions  for "director"                                                               
and "officer" for this new subsection.                                                                                          
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
     OFFERED IN THE SENATE              BY SENATOR FRENCH                                                                       
          TO: CSSB 284(JUD), Draft Version "E"                                                                                  
                                                                                                                                
     Page 4, following line 5:                                                                                                  
          Insert a new bill section to read:                                                                                    
       "* Sec. 7. AS 15.13.040 is amended by adding a new                                                                   
     subsection to read:                                                                                                        
               (q)  For purposes of (e) of this section,                                                                        
                    (1)   "director" means  a member  of the                                                                    
                    board of  directors of a  corporation or                                                                    
                    any   person    performing   a   similar                                                                    
                    function    with    respect    to    any                                                                    
                    organization;                                                                                               
                    (2)   "officer" means a  president, vice                                                                    
                    president,   secretary,  or   treasurer,                                                                    
                    principal    financial    officer,    or                                                                    
                    comptroller  of  a corporation,  or  any                                                                    
                    person  routinely  performing  functions                                                                    
                    similar  to those  of a  president, vice                                                                    
                    president,   secretary,  or   treasurer,                                                                    
                    principal    financial    officer,    or                                                                    
                    comptroller   with    respect   to   any                                                                    
                    organization."                                                                                              
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
SENATOR WIELECHOWSKI asked if APOC requested the definitions.                                                                   
                                                                                                                                
CHAIR FRENCH  replied he wouldn't  make that  representation, but                                                               
the definitions  will probably help  APOC now that  directors and                                                               
officers must be identified in  campaign advertisements. He noted                                                               
that John Ptacin with the  Department of Law (DOL) also suggested                                                               
that this would be helpful to APOC.                                                                                             
                                                                                                                                
SENATOR WIELECHOWSKI asked if there  was any rationale for adding                                                               
this  in Section  7  as opposed  to  the end  of  the bill  where                                                               
definitions usually are found.                                                                                                  
                                                                                                                                
1:42:08 PM                                                                                                                    
CHAIR FRENCH  pointed out that  it would fall  at the end  of the                                                               
lengthy  disclosure  statute, AS  15.13.040.  It  refers to  bill                                                               
Section 4, which amends AS  15.13.040(e). Much of this section is                                                               
new language  and page 3,  lines 22-23, talks about  officers and                                                               
directors.  The definitions  will probably  help APOC  understand                                                               
who is supposed to report, he said.                                                                                             
                                                                                                                                
SENATOR WIELECHOWSKI said he had no objection to the amendment.                                                                 
                                                                                                                                
1:44:10 PM                                                                                                                    
CHAIR FRENCH  withdrew his objection  to Amendment 1.  Finding no                                                               
further objection, he announced that Amendment 1 is adopted.                                                                    
                                                                                                                                
1:44:20 PM                                                                                                                    
CHAIR FRENCH  moved to adopt Amendment  2, labeled 26-LS1448\E.3,                                                               
and objected for discussion purposes.                                                                                           
                                                                                                                                
                          AMENDMENT 2                                                                                       
                                                                                                                                
    OFFERED IN THE SENATE    BY SENATORS FRENCH AND COGHILL                                                                     
          TO: CSSB 284(JUD), Draft Version "E"                                                                                  
                                                                                                                                
     Page 5, line 17, through page 6, line 4:                                                                                   
          Delete all material and insert:                                                                                       
               "Sec.     15.13.090.    Identification     of                                                                  
          communication.  (a)  All communications  shall  be                                                                  
          clearly  identified by  the  words  "paid for  by"                                                                    
          followed  by the  name and  address of  the person                                                                
          [CANDIDATE,    GROUP,    NONGROUP    ENTITY,    OR                                                                    
          INDIVIDUAL]  paying  for   the  communication.  In                                                                    
          addition, a person shall clearly                                                                                  
                    (1)  provide the person's address or                                                                    
          the person's principal place of business;                                                                         
                    (2)  for a person other than an                                                                         
          individual or candidate, include                                                                                  
                         (A)  the name and title of the                                                                     
          person's principal officer;                                                                                       
                         (B)      a   statement   from   the                                                                
          principal  officer  approving  the  communication;                                                                
          and                                                                                                               
                         (C)  identification of the name                                                                    
          and  city  and  state of  residence  or  principal                                                                
          place of  business, as applicable, of  each of the                                                                
          person's    five   largest    contributors   under                                                                
          AS 15.13.040(e)(5),  if any,  during the  12-month                                                                
          period  before  the   date  of  the  communication                                                                
          [CANDIDATES AND  GROUPS MAY  IDENTIFY THE  NAME OF                                                                    
          THEIR CAMPAIGN CHAIRPERSON]."                                                                                         
                                                                                                                                
     Page 6, line 16:                                                                                                           
          Delete "(a)(2)(C)"                                                                                                    
          Insert "(a)(1)"                                                                                                       
                                                                                                                                
     Page 6, line 17:                                                                                                           
          Delete "(a)(2)(D)"                                                                                                    
          Insert "(a)(2)(C)"                                                                                                    
                                                                                                                                
     Page 6, line 26:                                                                                                           
          Delete "AS 15.13.090(a)(2)(D)"                                                                                        
          Insert "AS 15.13.090(a)(2)(C)"                                                                                        
                                                                                                                                
CHAIR FRENCH  explained that Amendment  2 is about  disclaimer to                                                               
the public,  identifying the communications that  are advertised.                                                               
It  addresses much  of an  amendment  to version  R that  Senator                                                               
Coghill  offered   and  withdrew  during  the   3/15/10  hearing.                                                               
Basically, it rewrites the language  in Section 11 of the current                                                               
draft removing the  idea that candidates and  groups may identify                                                               
persons associated  with their campaign and  clearly stating that                                                               
every   person  shall   provide  that   identifying  information.                                                               
Candidates  do  this  now,  he  said. He  pointed  out  that  the                                                               
amendment  further says  that persons  other  than an  individual                                                               
candidate  must  provide the  name  and  title of  the  principal                                                               
officer;   a   statement   from  that   officer   approving   the                                                               
communication; and  the name,  city, and  state of  the principal                                                               
residence  or place  of business  of  each of  the person's  five                                                               
largest  contributors  during  the  12-month  period  before  the                                                               
communication.  The balance  of  the  amendment makes  conforming                                                               
changes.                                                                                                                        
                                                                                                                                
1:46:25 PM                                                                                                                    
SENATOR COGHILL  opined that this  makes it easier  to understand                                                               
and it  puts parity  between candidates and  persons. He  said he                                                               
still  objects to  reading aloud  the  five largest  contributors                                                               
because  it will  be  awkward, but  he'll work  with  it in  this                                                               
committee.                                                                                                                      
                                                                                                                                
CHAIR FRENCH  removed his  objection to  Amendment 2.  Finding no                                                               
further objection, he announced that Amendment 2 is adopted.                                                                    
                                                                                                                                
CHAIR FRENCH set SB 284 aside for the time being.                                                                               
                  SB 284-CAMPAIGN EXPENDITURES                                                                              
                                                                                                                                
2:14:06 PM                                                                                                                    
CHAIR  FRENCH returned  attention to  SB 284.  He moved  to adopt                                                               
Amendment 3,  labeled 26-LS1448\E.2, and objected  for discussion                                                               
purposes.                                                                                                                       
                                                                                                                                
                          AMENDMENT 3                                                                                       
                                                                                                                                
     OFFERED IN THE SENATE         BY SENATOR FRENCH                                                                            
     TO: CSSB 284(JUD), Draft Version "E"                                                                                       
                                                                                                                                
     Page 5, line 24, following "(2)":                                                                                      
          Insert  "except   as  provided  by  (d)   of  this                                                                
          section,"                                                                                                         
                                                                                                                                
     Page 6, line 15:                                                                                                           
          Delete "a new subsection"                                                                                             
          Insert "new subsections"                                                                                              
                                                                                                                                
     Page 6, line 17, following "section,":                                                                                     
          Insert "a  communication that includes a  print or                                                                    
     video component must have"                                                                                                 
                                                                                                                                
     Page 6, lines 17 - 18:                                                                                                     
          Delete "must be  read, in a manner  that is easily                                                                    
     heard, or"                                                                                                                 
                                                                                                                                
     Page 6, lines 19 - 21:                                                                                                     
          Delete  ",   or,  in   a  communication   that  is                                                                    
     transmitted by  a method that  includes both  audio and                                                                    
     video components,  be read in  a manner that  is easily                                                                    
     heard  and placed  in  the communication  so  as to  be                                                                    
     easily discernable"                                                                                                        
                                                                                                                                
     Page 6, following line 26:                                                                                                 
          Insert a new subsection to read:                                                                                      
               "(d)  Notwithstanding the requirements of                                                                        
          (a)(2)(A)   -   (D)   of  this   section,   in   a                                                                    
          communication transmitted  through radio  or other                                                                    
          audio   media  and   in  the   communication  that                                                                    
          includes   an  audio   component,  the   following                                                                    
          statement  or statements,  as applicable,  must be                                                                    
          read in a manner that is easily heard:                                                                                
               This communication was paid for by (person's                                                                     
               name).                                                                                                           
               I am (name and, if applicable, title of the                                                                      
               principal officer of the person) and I                                                                           
               approve this message.                                                                                            
               The top contributors of (person's name) are                                                                      
               (the name of the largest contributors to the                                                                     
               person under AS 15.13.090(a)(2)(D))."                                                                            
                                                                                                                                
CHAIR  FRENCH   explained  that  this  amendment   separates  the                                                               
different disclaimers  to the  public that  are required  when an                                                               
advertisement is in print versus  either the radio or television.                                                               
The  idea  is to  reduce  the  amount  of  speaking in  an  audio                                                               
advertisement so  that it isn't  onerous. He clarified  that this                                                               
pertains  to  ads  by  corporations  or  unions,  not  individual                                                               
candidates.                                                                                                                     
                                                                                                                                
SENATOR EGAN  said he appreciates  the amendment and if  it needs                                                               
tweaking after the  next election cycle it can  be addressed next                                                               
year.                                                                                                                           
                                                                                                                                
CHAIR FRENCH said that's a good  point for the entire bill. We'll                                                               
make it as strong as possible,  but I have no doubt we'll revisit                                                               
this topic in the near future, he said.                                                                                         
                                                                                                                                
2:17:20 PM                                                                                                                    
CHAIR FRENCH  removed his  objection to  Amendment 3.  Finding no                                                               
further objection, he announced that Amendment 3 is adopted.                                                                    
                                                                                                                                
CHAIR FRENCH set SB 284 aside for the time being.                                                                               
                                                                                                                                
                  SB 284-CAMPAIGN EXPENDITURES                                                                              
                                                                                                                                
2:34:41 PM                                                                                                                    
CHAIR FRENCH returned attention to SB 284.                                                                                      
                                                                                                                                
SENATOR WIELECHOWSKI moved to adopt Amendment 4, labeled 26-                                                                    
LS1448\E.4.                                                                                                                     
                                                                                                                                
                          AMENDMENT 4                                                                                       
                                                                                                                                
     OFFERED IN THE SENATE         BY SENATOR WIELECHOWSKI                                                                      
          TO: CSSB 284(JUD), Draft Version "E"                                                                                  
                                                                                                                                
     Page 1, line 4, following "campaigns;":                                                                                  
          Insert      "prohibiting     expenditures      and                                                                  
     contributions by foreign nations in state elections;"                                                                    
                                                                                                                                
     Page 4, following line 28:                                                                                                 
          Insert a new bill section to read:                                                                                    
         "* Sec. 9. AS 15.13 is amended by adding a new                                                                     
     section to read:                                                                                                           
               Sec.     15.13.068.      Expenditures     and                                                                  
          contributions by foreign  nationals. (a) A foreign                                                                  
          national  may  not,  directly  or  indirectly,  in                                                                    
          connection  with an  election under  this chapter,                                                                    
          make  a contribution  or  expenditure  or make  an                                                                    
          express or implied promise  to make a contribution                                                                    
          or expenditure.                                                                                                       
               (b)  In this section, "foreign national"                                                                         
          includes                                                                                                              
                    (1)  an individual who is not a United                                                                      
          States citizen or  lawfully admitted for permanent                                                                    
          residence under 8 U.S.C. 1101(a)(20);                                                                                 
                    (2)  a foreign government, every                                                                            
          political  subdivision  of a  foreign  government,                                                                    
          every  official,  agent,  or representative  of  a                                                                    
          foreign    government,     and    every    agency,                                                                    
          corporation,  or  instrumentality of  the  foreign                                                                    
          government  or of  a  political  subdivision of  a                                                                    
          foreign government;                                                                                                   
                    (3)  a person outside of the United                                                                         
          States, unless  it is established that  the person                                                                    
          is an  individual and a  citizen of  and domiciled                                                                    
          in the  United States, or  that the person  is not                                                                    
          an individual  and is  organized under  or created                                                                    
          by the laws  of the United States or  of any state                                                                    
          or other place subject  to the jurisdiction of the                                                                    
          United  States  and  has its  principal  place  of                                                                    
          business in the United States;                                                                                        
                    (4)      a   partnership,   association,                                                                    
          corporation,  organization,  or other  combination                                                                    
          of persons  organized under the laws  of or having                                                                    
          its  principal  place  of business  in  a  foreign                                                                    
          country; or                                                                                                           
                    (5)  a domestic subsidiary of an entity                                                                     
          described in  (2) -  (4) of  this subsection  or a                                                                    
          domestic  corporation  controlled   by  an  entity                                                                    
          described  in (2)  - (4)  of  this subsection,  if                                                                    
          that entity finances,  participates in, or selects                                                                    
          a  person  who participates  in  the  making of  a                                                                    
          contribution  or an  expenditure  of the  domestic                                                                    
          subsidiary or domestic corporation.                                                                                   
               (c)  The provisions of this section apply                                                                        
         only to the extent permitted by federal law."                                                                          
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
CHAIR FRENCH objected for discussion purposes.                                                                                  
                                                                                                                                
SENATOR  WIELECHOWSKI   explained  that  the  contents   of  this                                                               
amendment appear  in the  House version  of SB  284 and  it seems                                                               
like  a reasonable  provision that  will help  bring some  parity                                                               
between the  two bills. It expressly  prohibits foreign nationals                                                               
from participating in Alaska elections  and includes a definition                                                               
of "foreign  national." This  is similar to  the federal  law and                                                               
the  drafter  didn't  believe  it  would  present  constitutional                                                               
problems.                                                                                                                       
                                                                                                                                
CHAIR  FRENCH  noted  that  he   and  Senator  Wielechowski  each                                                               
received legal  opinions on this  amendment raising the  issue of                                                               
preemption.  He read  the following  from  Mr. Bullard's  3/17/10                                                               
memorandum:                                                                                                                     
                                                                                                                                
     The Federal Election Campaign  Act (FECA) prohibits any                                                                    
     foreign  national   from  contributing,   donating,  or                                                                    
     spending funds  in connection with any  federal, state,                                                                    
     or  local   election  in  the  United   States,  either                                                                    
     directly  or   indirectly.  Because  [2   U.S.C.  441e]                                                                    
     already  clearly   prohibits  foreign   nationals  from                                                                    
     making   campaign   contributions,  expenditures,   and                                                                    
     independent expenditures  in federal, state,  and local                                                                    
     elections,  a state  effort to  legislate in  this area                                                                    
     may face a preemption challenge.                                                                                           
                                                                                                                                
2:37:55 PM                                                                                                                    
SENATOR COGHILL said it sounds  as though a corporation like Ford                                                               
Motor Company would be prohibited under this.                                                                                   
                                                                                                                                
SENATOR WIELECHOWSKI said he doesn't believe that's the case.                                                                   
                                                                                                                                
CHAIR FRENCH called  a point of order to say  that those concerns                                                               
would be addressed by what will  be Amendment 5. Amendment 4 says                                                               
a foreign  national and it's  directly to that individual  not so                                                               
much the corporation.                                                                                                           
                                                                                                                                
SENATOR  WIELECHOWSKI  added that  Ford  Motor  Company or  Exxon                                                               
Corporation could  participate because the definition  of foreign                                                               
national doesn't  exclude them. However, an  Indonesian branch of                                                               
Ford  could not  contribute to  an  Alaska election.  He said  he                                                               
believes  that   this  amendment   tracks  federal  law   and  he                                                               
understands legislative  legal to say  that based on  the Supreme                                                               
Court  case, it's  a  bit  unclear the  extent  to which  foreign                                                               
nationals  can   participate  in  elections.   Legislative  legal                                                               
believes that  a federal law is  in place and the  question is if                                                               
it applies to  state or local elections. This  amendment tries to                                                               
extend it to state or local elections, he said.                                                                                 
                                                                                                                                
CHAIR FRENCH asked Mr. Ptacin his thoughts on Amendment 4.                                                                      
                                                                                                                                
2:40:39 PM                                                                                                                    
JOHN  PTACIN,  Assistant  Attorney  General,  Department  of  Law                                                               
(DOL), stated that he doesn't  believe that preemption is a great                                                               
concern here. Field  preemption is the only  variation of federal                                                               
preemption that  possibly could apply  and that occurs  only when                                                               
there is a  pervasive scheme showing that Congress  intends to be                                                               
the exclusive  regulator in an  area. It  doesn't seem to  be the                                                               
case that  the federal government  is the only entity  that would                                                               
be regulating participation  by a foreign national in  a state or                                                               
municipal election, he said.                                                                                                    
                                                                                                                                
CHAIR FRENCH asked  Mr. Bullard if he had anything  to add on the                                                               
issue of preemption.                                                                                                            
                                                                                                                                
2:42:17 PM                                                                                                                    
ALPHEUS  BULLARD,   Attorney,  Legislative  Legal   and  Research                                                               
Services,  Legislative  Affairs  Agency, said  he  believes  that                                                               
there  may  be  some  preemption  risk.  He  explained  that  the                                                               
amendment was  drafted in a manner  to make it applicable  to the                                                               
extent  that it  is  permitted  by federal  law  and to  mitigate                                                               
preemption concerns.  He cautioned that  he doesn't know  if it's                                                               
ironclad proof.                                                                                                                 
                                                                                                                                
CHAIR FRENCH withdrew his objection to Amendment 4. Finding no                                                                  
further objection, he announced that Amendment 4 is adopted.                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI moved to adopt Amendment 5, labeled 26-                                                                    
LS1448\E.5.                                                                                                                     
                                                                                                                                
                          AMENDMENT 5                                                                                       
                                                                                                                                
     OFFERED IN THE SENATE         BY SENATOR WIELECHOWSKI                                                                      
          TO: CSSB 284(JUD), Draft Version "E"                                                                                  
                                                                                                                                
     Page 1, line 4, following "campaigns;":                                                                                  
          Insert "prohibiting certain  expenditures in state                                                                  
     election campaigns;"                                                                                                     
                                                                                                                                
     Page 5, following line 16:                                                                                                 
          Insert a new bill section to read:                                                                                    
      "* Sec. 11. AS 15.13.084 is amended by adding a new                                                                   
     subsection to read:                                                                                                        
               (b)  A person that is owned or controlled,                                                                       
          in any  part, by a  foreign national may  not make                                                                    
          an  expenditure.  In   this  subsection,  "foreign                                                                    
          national" includes                                                                                                    
                    (1) an individual who is not a United                                                                       
          States citizen or  lawfully admitted for permanent                                                                    
          residence under 8 U.S.C. 1101(a)(20);                                                                                 
                    (2)  a foreign government, a political                                                                      
          subdivision of  a foreign government,  a official,                                                                    
          agent, or representative  of a foreign government,                                                                    
          and an agency,  corporation, or instrumentality of                                                                    
          a   foreign   government   or   of   a   political                                                                    
          subdivision of a foreign government;                                                                                  
                    (3)  a person outside of the United                                                                         
          States, unless  it is established that  the person                                                                    
          is an  individual and a  citizen of  and domiciled                                                                    
          in the  United States, or  that the person  is not                                                                    
          an individual  and is  organized under  or created                                                                    
          by the laws  of the United States or  of any state                                                                    
          or other place subject  to the jurisdiction of the                                                                    
          United  States  and  that the  person's  principal                                                                    
          place of business is in the United States;                                                                            
                    (4)      a   partnership,   association,                                                                    
          corporation,  organization,  or other  combination                                                                    
          of persons  organized under the laws  of or having                                                                    
          its  principal  place  of business  in  a  foreign                                                                    
          country; or                                                                                                           
                    (5)  a domestic subsidiary of an entity                                                                     
          described in  (2) -  (4) of  this subsection  or a                                                                    
          domestic  corporation  controlled   by  an  entity                                                                    
          described  in (2)  - (4)  of  this subsection,  if                                                                    
          that entity finances,  participates in, or selects                                                                    
          a  person  who participates  in  the  making of  a                                                                    
          contribution  or an  expenditure  of the  domestic                                                                    
          subsidiary or domestic corporation."                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
CHAIR FRENCH objected for discussion purposes.                                                                                  
                                                                                                                                
SENATOR  WIELECHOWSKI said  this  amendment  addresses a  concern                                                               
he's had  about foreign nationals  that have  ownership interests                                                               
in  Alaskan  corporations.  It would  prohibit  any  corporation,                                                               
union,  or foreign  national  from making  an  expenditure in  an                                                               
Alaska election. If  a corporation had stockholders  that are not                                                               
Americans, those  stockholders would  not be able  to participate                                                               
in making expenditures, he said.                                                                                                
                                                                                                                                
2:45:25 PM                                                                                                                    
SENATOR  COGHILL  questioned whether  a  corporation  that had  a                                                               
subsidiary that  was incorporated in  Alaska and a  director that                                                               
was a foreign national would be  able to make internal changes so                                                               
that Alaska  citizen within  the corporation would  be put  in as                                                               
principals under  Alaska reporting  laws. He  said his  belief is                                                               
that they  will trade  people even  if they  are wholly  owned or                                                               
partially owned.                                                                                                                
                                                                                                                                
SENATOR  WIELECHOWSKI   said  if   a  corporation  is   owned  or                                                               
controlled in part  by a foreign national then they  would not be                                                               
entitled to make an expenditure under this amendment.                                                                           
                                                                                                                                
SENATOR COGHILL said he's trying to  figure out if this means the                                                               
corporation  itself or  the  individuals  within the  corporation                                                               
because it seems that this is now driving into a separation.                                                                    
                                                                                                                                
SENATOR  WIELECHOWSKI confirmed  that  the intent  is  that if  a                                                               
corporation is foreign  owned or controlled, then  they would not                                                               
be able to make an expenditure.                                                                                                 
                                                                                                                                
CHAIR FRENCH  said the operative language  is on line 7.  It says                                                               
"a person" - meaning a corporation  or group or nongroup or union                                                               
- that  is owned or  controlled in  any part. That  language will                                                               
attract a lot of attention, he said.                                                                                            
                                                                                                                                
CHAIR  FRENCH thanked  Mr. Bullard  for the  extensive amount  of                                                               
work he'd  done on this legislation  and asked him to  comment on                                                               
the concerns  he expressed in two  separate memorandums regarding                                                               
Amendment 5.                                                                                                                    
                                                                                                                                
2:47:59 PM                                                                                                                    
MR.  BULLARD  said  this amendment  raises  First  Amendment  and                                                               
associational and equal protection  issues. First, it paints with                                                               
a  broad  brush, he  said.  Because  any large,  publicly  traded                                                               
corporation is likely to have  some foreign shareholders, a court                                                               
would likely interpret this provision,  if it were enacted, as an                                                               
indirect  prohibition against  independent  expenditures made  by                                                               
large  corporations  or  anyone  so affected.  He  said  he  also                                                               
believes that there are equal  protection issues. For example, if                                                               
a large  corporation like AT&T  had one foreign  shareholder with                                                               
whatever   percentage    ownership   interest,    that   domestic                                                               
corporation  would   be  treated  differently  than   a  domestic                                                               
corporation that had no foreign shareholders.                                                                                   
                                                                                                                                
2:50:04 PM                                                                                                                    
SENATOR WIELECHOWSKI withdrew Amendment 5.  He said that this was                                                               
an attempt  to address  his concerns about  opening the  doors to                                                               
foreign   nationals   influencing   Alaska  elections,   but   he                                                               
understood the constitutional warnings.                                                                                         
                                                                                                                                
CHAIR FRENCH  said we had a  Supreme Court decision to  deal with                                                               
and we've been trying to craft a  bill that would stand up to the                                                               
beating  it  may get  in  other  committees. Finding  no  further                                                               
amendments  or  committee  discussion,  and  noting  that  public                                                               
testimony had been taken, he asked for a motion.                                                                                
                                                                                                                                
2:51:33 PM                                                                                                                    
SENATOR WIELECHOWSKI moved to report CS  for SB 284, version E as                                                               
amended,  from  committee  with  individual  recommendations  and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
2:51:55 PM                                                                                                                    
SENATOR COGHILL  objected to  make a comment.  He said  he agreed                                                               
with the concept  of the last amendment and he  would continue to                                                               
look for  a solution  to the top  five contributors  because it's                                                               
still  a   concern.  He  then  expressed   appreciation  for  the                                                               
diligence with which  Senator French put this  must-pass piece of                                                               
legislation forward. I have no further objection, he said.                                                                      
                                                                                                                                
CHAIR  FRENCH  announced  that without  objection  CSSB  284(JUD)                                                               
moved from the Senate Judiciary Standing Committee.                                                                             

Document Name Date/Time Subjects