HOUSE OF REPRESENTATIVES

H.B. NO.

2004

TWENTY-FIFTH LEGISLATURE, 2010

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO CAMPAIGN FINANCING.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Chapter 11, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§11-    Ballot issue committee; contributions and expenditures.  (a)  A ballot issue committee shall receive contributions or make expenditures only for or against any issue appearing on the ballot at the next applicable election.

     (b)  A ballot issue committee is prohibited from receiving contributions or making expenditures to influence the nomination or election of a candidate to office.

     (c)  If a ballot issue committee has surplus funds, the committee, within ninety days after the election for which the issue appeared on the ballot, shall return all surplus funds to the contributors or donate the funds to a community service, educational, youth, recreational, charitable, scientific, or literary organization.  Surplus funds that are not returned or donated within ninety days after the election for which the issue appeared on the ballot shall escheat to the Hawaii election campaign fund.

     (d)  Every ballot issue committee shall submit a request to terminate its registration to the commission as provided in section 11-213 within ninety days after the election for which the issue appeared on the ballot."

     SECTION 2.  Section 11-191, Hawaii Revised Statutes, is amended as follows:

     1.  By adding a new definition to be appropriately inserted and to read:

     ""Automated phone call" means:

     (1)  Any outbound telephone call or electronic voice message;

     (2)  The telephone call plays a recorded message; and

     (3)  (A)  The recorded message advocates, supports, or opposes the nomination or election of a candidate; or

         (B)  Advocates, supports, or opposes a question or issue certified to be on the ballot in the next election."

     2.   By amending the definitions of "advertisement" and "ballot issue committee" to read:

     ""Advertisement" means:

     (1)  Any communication, exclusive of bumper stickers or other sundry items, that[:

         (A)  Identifies] identifies a candidate either directly or by direct implication; and

        [(B)  Advocates] advocates or supports the nomination for election of the candidate;

        [(C)  Advocates] advocates or supports the election of the candidate; or

        [(D)  Advocates] advocates or supports the candidate's defeat.

     (2)  (A)  Any communication, exclusive of bumper stickers or other sundry items, that[:

         (A)  Identifies] identifies an issue or question that will appear on the ballot at the next applicable election; [or] and

         (B)  Advocates or supports the passage or defeat of the question or issue.

     "Ballot issue committee" means a committee as defined in this section which has the exclusive purpose of [making or accepting] receiving contributions or making expenditures for or against any issue appearing on the ballot at the next applicable election."

     SECTION 3.  Section 11-193, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The duties of the commission under this subpart are:

     (1)  To develop and adopt reporting forms required by this subpart;

     (2)  To adopt and publish a manual for all candidates and committees, describing the requirements of this subpart, including uniform and simple methods of recordkeeping;

     (3)  To preserve all reports required by this subpart for at least ten years from the date of receipt;

     (4)  To permit the inspection, copying, or duplicating of any report required by this subpart pursuant to rules adopted by the commission; provided that no information or copies from the reports shall be sold or used by any person for the purpose of soliciting contributions or for any commercial purpose;

     (5)  To ascertain whether any candidate, committee, or party has failed to file a report required by this subpart or has filed a substantially defective or deficient report, and to notify these persons by first class mail that their failure to file or filing of a substantially defective or deficient report must be corrected and explained, and that a [penalty] fine may be assessed.  All [penalties] fines collected under [this] section 11-213.5 shall be deposited in the general fund of the State;

     (6)  To hold public hearings;

     (7)  To investigate and hold hearings for receiving evidence of any violations;

    [(8)  To adopt a code of fair campaign practices as a part of its rules;

     (9)] (8)  To establish rules pursuant to chapter 91;

   [(10)] (9)  To request the initiation of prosecution for the violation of this subpart pursuant to section 11-229;

   [(11)] (10)  To administer and monitor the distribution of public funds under this subpart;

   [(12)] (11)  To suggest accounting methods for candidates, parties, and committees, as the commission may deem advisable, in connection with reports and records required by this subpart;

   [(13)] (12)  To employ or contract, without regard to chapters 76, 78, and 89 and section 28-8.3, and, at pleasure, to dismiss persons it finds necessary for the performance of its functions, including a full-time executive director, and to fix their compensation;

   [(14)] (13)  To do random audits, field investigations, as necessary;

   [(15)] (14)  To file for injunctive relief when indicated; and

   [(16)] (15)  To render advisory opinions upon the request of any candidate, candidate committee, noncandidate committee, or other person or entity subject to this chapter, as to whether the facts and circumstances of a particular case constitute or will constitute a violation of the campaign spending laws.  If no advisory opinion is rendered within ninety days after all information necessary to issue an opinion has been obtained, it shall be deemed that an advisory opinion was rendered and that the facts and circumstances of that particular case do not constitute a violation of the campaign spending laws.  The opinion rendered or deemed rendered, until amended or revoked, shall be binding on the commission in any subsequent charges concerning the candidate, candidate committee, noncandidate committee, or other person or entity subject to this chapter, who sought the opinion and acted in reliance on it in good faith, unless material facts were omitted or misstated by the persons in the request for an advisory opinion.  Nothing in this section shall be construed to allow the commission to issue rules through an advisory opinion."

     SECTION 4.  Section 11-199, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  All monetary contributions shall be promptly deposited in [a] an account or accounts with a depository institution, as defined by section 412:1-109, [duly authorized to do business in the State,] such as a bank, savings bank, savings and loan association, depository financial services loan company, or credit union[, intra-Pacific bank, or similar financial institution, the deposits or accounts of which are insured] at a branch of the depositary institution in the State as defined by section 412:3-501.  The account must be:

     (1)  Insured by the Federal Deposit Insurance Corporation, or the National Credit Union Administration [in];

     (2)  In the name of the candidate, committee, or party, whichever is applicable[.]; and

     (3)  In an institution that is physically located in the State."

     SECTION 5.  Section 11-204, Hawaii Revised Statutes, is amended to read as follows:

     "§11-204  Campaign contributions; limits as to persons. 

  (a)(1)  No person, including a noncandidate committee, or any other entity shall make contributions to:

         (A)  A candidate seeking nomination or election to a two-year office or to the candidate's committee in an aggregate amount greater than $2,000 during an election period;

         (B)  A candidate seeking nomination or election to a four-year statewide office or to the candidate's committee in an aggregate amount greater than $6,000 during an election period; and

         (C)  A candidate seeking nomination or election to a four-year nonstatewide office or to the candidate's committee in an aggregate amount greater than $4,000 during an election period.

          These limits shall not apply to a loan made to a candidate by a financial institution in the ordinary course of business;

     (2)  For purposes of this section, the length of term of an office shall be the usual length of term of the office as unaffected by reapportionment, a special election to fill a vacancy, or any other factor causing the term of the office the candidate is seeking to be less than the usual length of term of that office.

     (b)  (1)  No person or any other entity shall make contributions to a noncandidate committee, in an aggregate amount greater than $1,000 in an election[.]; except that in the case of a corporation or company using funds from its treasury, there shall be a $    limit on contributions or expenditures to the corporation or company's noncandidate committee; and

(2)  A corporation or company shall make all contributions and expenditures greater than $1,000 in the aggregate in a two-year election period solely through the corporation or company's noncandidate committee in accordance with paragraph (a)(1).  The noncandidate committee shall register with the commission pursuant to section 11-194.

     (c)  A candidate's immediate family, in making contributions to the candidate's campaign, shall be exempt from the above limitation, but shall be limited in the aggregate to $50,000 in any election period.  The aggregate amount of $50,000 shall include any loans made for campaign purposes to the candidate from the candidate's immediate family.

     (d)  A contribution by a dependent minor shall be reported in the name of the minor but shall be counted against the contribution of the minor's parent or guardian.

     (e)  Any candidate, candidate's committee, or committee that receives in the aggregate more than the applicable limits set forth in this section in any primary, initial special, special, or general election from a person, shall be required to return any excess contribution to the original donor within thirty days of receipt of the excess contribution.  Any excess contribution not returned to the original donor within thirty days shall escheat to the Hawaii election campaign fund.  A candidate, candidate's committee, or committee who complies with this subsection prior to the initiation of prosecution shall not be subject to any penalty under section 11-228.

     (f)  All payments made by a person or political party whose contributions or expenditure activity is financed, maintained, or controlled by any corporation, labor organization, association, political party, or any other person or committee, including any parent, subsidiary, branch, division, department, or local unit of the corporation, labor organization, association, political party, political committees established and maintained by a national political party, or any other person, or by any group of those persons shall be considered to be made by a single person or political party.

     (g)  An individual and any general partnership in which the individual is a partner shall be treated as one person.

     (h)  No committee that supports or opposes a candidate for public office shall have as officers individuals who serve as officers on any other committee which supports or opposes the same candidate.  No such committee shall act in concert with, or solicit or make contributions on behalf of, any other committee.

     (i)  No contributions or expenditures shall be made to or on behalf of a candidate or committee by a foreign national or foreign corporation, including a domestic subsidiary of a foreign corporation, a domestic corporation that is owned by a foreign national, or a local subsidiary where administrative control is retained by the foreign corporation, and in the same manner prohibited under 2 United States Code section 441e and 11 Code of Federal Regulations 110.20, as amended.  No foreign-owned domestic corporation shall make contributions where:

     (1)  Foreign national individuals participate in election-related activities such as decisions concerning the making of contributions or the administration of a political committee; or

     (2)  The contribution funds are not domestically-derived.

     (j)  No person or any other entity other than political committees established and maintained by a national political party shall make contributions to a political party in an aggregate amount greater than $25,000 in any two-year election period.  No political committee established and maintained by a national political party, shall make contributions to a political party in an aggregate amount greater than $50,000 in any two-year election period.  A company's noncandidate committee may make a contribution to a party in accordance with the same conditions and restrictions as applicable to a "person."

     (k)  For the purpose of this section, "company" means a corporation, partnership, limited liability company, limited liability partnership, financial institution, or any other entity engaged in business.

     [(k)] (l)  The contribution limits under this section shall apply for the office sought by the candidate.  This section shall not apply to ballot issue committees."

     SECTION 6.  Section 11-213.5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§11-213.5[]Failure to file report; filing a substantially defective or deficient report.  (a)  True and accurate reports shall be filed with the commission on or before the due date specified in this subpart.  [Any committee that is required to file reports under this subpart shall be subject to the penalties in this section if the report is not filed by the due date or if the report is substantially defective or deficient,The commission may assess a fine against a committee that is required to file a report under this subpart if the report is not filed by the due date or if the report is substantially defective or deficient, as determined by the commission.

     (b)  The [penalty] fine for not filing a report by the due date, if assessed, shall [be] not exceed $50 per day for the first seven days, beginning with the day after the due date of the report, and shall not exceed $200 per day thereafter[,]; provided that:

     (1)  In the aggregate, the fine shall not [to] exceed twenty-five per cent of the total amount of contributions or expenditures, whichever is greater, for the period covered by the report; [provided that  the] and

     (2)  The minimum [penalty] fine for a report filed more than four days after the due date, if assessed, shall be $200.

     (c)  Subsection (b) notwithstanding, if a candidate's committee does not file the second preliminary primary report or the preliminary general report or if a noncandidate committee does not file the preliminary primary report or the preliminary general report by the due date, the fine, if assessed, shall [be] not exceed $300 per day[,]; provided that:

     (1)  In the aggregate, the fine shall not [to] exceed twenty-five per cent of the total amount of contributions or expenditures, whichever is greater, for the period covered by the report; [provided that the] and

     (2)  The minimum [penalty] fine, if assessed, shall be $300.

     (d)  If the commission determines that a report is substantially defective or deficient, the commission shall notify the candidate's committee by first class mail that:

     (1)  The report is substantially defective or deficient; and

     (2)  A [penalty] fine may be assessed.

     (e)  If the corrected report is not filed with the commission's electronic filing system on or before the fourteenth day after the notice of deficiency has been mailed, the [penalty] fine, if assessed, for a substantially defective or deficient report shall [be] not exceed $50 per day for the first seven days, beginning with the fifteenth day after the notice was sent, and shall not exceed $200 per day thereafter[,]; provided that:

     (1)  In the aggregate, the fine shall not [to] exceed twenty-five per cent of the total amount of contributions or expenditures, whichever is greater, for the period covered by the report; [provided that the] and

     (2)  The minimum [penalty] fine for not filing a corrected report more than eighteen days after the notice was sent, if assessed, shall be $200.

     (f)  The commission shall publish on its website the names of all candidate's committees that have failed to file a report or to correct a report within the time allowed by the commission.

     (g)  All penalties collected under this section shall be deposited into the general fund."

     SECTION 7.  Section 11-215, Hawaii Revised Statutes, is amended to read as follows:

     "§11-215  Advertising.  (a)  All advertisements shall contain the name and address of the candidate, committee, party, or person paying for the advertisement.  If an advertisement is not authorized by a candidate or a candidate's committee, the advertisement shall contain the name and address of the person paying for the advertisement.

     (b)  In addition to subsection (a), no candidate or committee shall cause or submit any advertisement in support of a candidate, against a candidate's opponent, or with regard to a ballot issue to be published, broadcast, televised, or otherwise circulated and distributed except under the following conditions:

     (1)  The advertisement shall contain a notice in a prominent location that the literature or advertisement is published, broadcast, televised, or circulated with the approval and authority of the candidate, provided that in the event that the literature or advertisement is paid for by a candidate, committee directly associated with a candidate, or ballot issue committee, the notice of approval and authority need not be included; or

     (2)  The advertisement shall contain a notice in a prominent location that the literature or advertisement is published, broadcast, televised, or circulated without the approval and authority of the candidate.

     (c)  The information required in subsections (a) and (b) shall be included on every web page containing an advertisement.

     (d)  The information required in subsections (a) and (b) shall be stated at the beginning of an automated phone call.

     [(c)] (e)  The [penalty] fine for violating this section shall be a fine not to exceed $25 for each advertisement that lacks the required disclaimer and no more than $5,000 aggregate."

     SECTION 8.  Section 11-228, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  In the performance of its required duties, the commission may render a decision or issue an order affecting any person violating any provision of this subpart or section 281-22 that [shall] may provide for the assessment of [an administrative] a fine in the manner prescribed as follows:

     (1)  If a natural person, an amount not to exceed $1,000 for each occurrence or an amount equivalent to three times the amount of an unlawful contribution or expenditure[, whichever is greater]; or

     (2)  If a corporation, organization, association, or labor union, it shall be punished by a fine not exceeding $1,000 for each occurrence; and

     (3)  Whenever a corporation, organization, association, or labor union violates this subpart, the violation shall be deemed to be also that of the individual directors, officers, or agents of the corporation, organization, association, or labor union, who have knowingly authorized, ordered, or done any of the acts constituting the violation."

     SECTION 9.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 10.  This Act shall take effect upon its approval and apply to contributions and expenditures occurring on or after July 1, 2010; provided that sections 6 and 8 shall take effect retroactive to July 8, 2008.

 

INTRODUCED BY:

_____________________________

 

BY REQUEST


 


 

Report Title:

Elections; Campaign Financing

 

Description:

Amends law relating to ballot issue committees.  Defines automated phone call and requires certain information to be stated at the beginning of such phone calls.  Amends the definition of advertisement.  Repeals the campaign spending commission's authority to adopt a code of fair campaign practices as part of its rules.  Requires advertising notices and disclaimers to be included on every web page that contains an advertisement.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.