REPORT TITLE:
Campaign Contributions



DESCRIPTION:
Amends campaign spending and disclosure laws to encompass
contributions with regard to ballot issues.  Provides that
organizations that raise or expend funds for purposes of
informational and educational advertising are not "committees"
subject to campaign contribution and expenditure laws.  Limits
contributions by a candidate's immediate family to $50,000.
Amends the dates on which preliminary reports must be filed with
the commission.  Repeals short form reporting.  Exempts
violators of campaign contribution and expenditure laws from
administrative fines and criminal prosecution upon payment of
penalties imposed by the commission.  (HB71 HD2)



 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        71
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     A BILL FOR AN ACT

RELATING TO ELECTIONS.



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

 1      SECTION 1.  Section 11-191, Hawaii Revised Statutes, is
 
 2 amended as follows:
 
 3      1.  By adding a new definition to be appropriately inserted
 
 4 and to read:
 
 5      ""Ballot issue committee" means a committee as defined in
 
 6 this section that has the exclusive purpose of making or
 
 7 accepting contributions or expenditures for or against any issue
 
 8 appearing on the ballot at the next applicable election."
 
 9      2.  By amending the definition of "committee" to read:
 
10      ""Committee" means:
 
11      (1)  Any organization, association, or individual that
 
12           accepts or makes a contribution or makes an expenditure
 
13           for or against any:
 
14           (A)  Candidate;
 
15           (B)  Individual who files for nomination at a later
 
16                date and becomes a candidate; [or]
 
17           (C)  Party; or
 
18           (D)  Question or issue appearing on the ballot;
 

 
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 1           with or without the authorization of the candidate,
 
 2           individual, or party[.  In addition, the term
 
 3           "committee" means any organization, association, or
 
 4           individual who accepts or makes a contribution or makes
 
 5           an expenditure for or against any question or issue
 
 6           appearing on the ballot at the next applicable
 
 7           election]; or
 
 8      (2)  Any organization, association, or individual that
 
 9           raises or holds money or anything of value for a
 
10           political purpose, with or without the consent or
 
11           knowledge of any:
 
12           (A)  Candidate;
 
13           (B)  Individual who files for nomination at a later
 
14                date and becomes a candidate; or
 
15           (C)  Party; 
 
16           and subsequently contributes money or anything of value
 
17           to, or makes expenditures on behalf of, the candidate,
 
18           individual, or party[;].
 
19      [(3)]  Notwithstanding any of the foregoing, the term
 
20 "committee" shall not include any individual making a
 
21 contribution or expenditure of the individual's own funds or
 
22 anything of value that the individual originally acquired for the
 
23 individual's own use and not for the purpose of evading any
 
24 provision of this subpart[; or
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (4)  Any committee as defined in paragraph (1) that accepts
 
 2           or makes contributions or makes expenditures in
 
 3           aggregate of more than $1,000 in an election to
 
 4           influence the nomination and election of individuals to
 
 5           public office or the outcome of ballot questions or
 
 6           issues, shall register with the commission and file
 
 7           reports as required by this chapter]."
 
 8      SECTION 2.  Section 11-194, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "11-194  Registration.(a)  Each candidate, committee, or
 
11 party shall file an organizational report as set forth in section
 
12 11-196[,] or [section] 11-196.5 as applicable[, within]:
 
13      (1)  Within ten days from the date a candidate or candidate
 
14           committee receives any contributions or makes any
 
15           expenditures[, the aggregate amount of which is more
 
16           than $100,] or[, within];
 
17      (2)  Within ten days from the date a noncandidate committee
 
18           receives any contributions or makes any expenditures,
 
19 the aggregate amount of which is more than $1,000.
 
20      (b)  Committees that form within ten days of an election and
 
21 expend in the aggregate more than $1,000 shall register and fully
 
22 disclose the expenditure by 4:30 p.m. on the last calendar day
 
23 prior to the expenditure.
 

 
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 1      (c)  Each candidate who [is certified to be a candidate by]
 
 2 files nomination papers for office with the chief election
 
 3 officer or county clerk [by way of the "write-in" ballot] shall
 
 4 file an organizational report within five days of [being
 
 5 certified as a candidate.] filing.
 
 6      [(d)  Each candidate shall re-register for the new election
 
 7 period.  A noncandidate committee need not re-register for a new
 
 8 election period, but shall affirm the accuracy of the information
 
 9 on the organizational report as set forth in section 11-196.5.]"
 
10      SECTION 3.  Section 11-195, Hawaii Revised Statutes, is
 
11 amended by amending subsection (a) to read as follows:
 
12      "(a)  All reports required to be filed under this subpart by
 
13 a candidate or those committees directly associated with the
 
14 candidate's candidacy shall be certified by the candidate[.] and
 
15 campaign treasurer or deputy treasurer.  Reports required to be
 
16 filed under this subpart by a party or committee that supports
 
17 more than one candidate shall be certified by a person authorized
 
18 to sign the reports.  All reports required to be filed under this
 
19 subpart shall be open for public inspection in the office of the
 
20 commission."
 
21      SECTION 4.  Section 11-199, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 

 
 
 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      "11-199  Campaign contributions, generally.(a)  All
 
 2 monetary contributions shall be promptly deposited in a
 
 3 depository institution, as defined by section 412:1-109, duly
 
 4 authorized to do business in the State, such as a bank, savings
 
 5 bank, savings and loan association, depository financial services
 
 6 loan company, credit union, intra-Pacific bank, or similar
 
 7 financial institution, the deposits or accounts of which are
 
 8 insured by the Federal Deposit Insurance Corporation, or the
 
 9 national credit union administration in the name of the
 
10 candidate, committee, or party, whichever is applicable.
 
11      (b)  Each candidate, committee, or party shall establish and
 
12 maintain [an]:
 
13      (1)  An itemized record showing the amount of each monetary
 
14           contribution[, the];
 
15      (2)  The description and value of each nonmonetary
 
16           contribution[,]; and [the]
 
17      (3)  The name and address of each donor making a
 
18           contribution of more than $25 in value.
 
19      [(c)  Each candidate and campaign treasurer shall report the
 
20 amount and date of deposit of each contribution and the name and
 
21 address of each donor who makes a contribution whose aggregate
 
22 value is more than $100.
 

 
 
 
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 1      (d)] (c)  No candidate, committee, or party shall accept a
 
 2 contribution of more than $100 in cash from a single person
 
 3 without issuing a receipt to the donor and keeping a record of
 
 4 the transaction.
 
 5      [(e)] (d)  Each committee and party shall disclose [the]:
 
 6      (1)  The original source of all earmarked funds[, the];
 
 7      (2)  The ultimate recipient of the earmarked funds[,]; and
 
 8           [the]
 
 9      (3)  The fact that the funds are earmarked."
 
10      SECTION 5.  Section 11-204, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "11-204  Campaign contributions; limits as to persons.(a)
 
13 No person or any other entity shall make contributions to:
 
14      (1)  A candidate seeking nomination or election to a two-
 
15           year office or to the candidate's committee in an
 
16           aggregate amount greater than $2,000 during an election
 
17           period; [and]
 
18      (2)  A candidate seeking nomination or election to a four-
 
19           year statewide office or to the candidate's committee
 
20           in an aggregate amount greater than $6,000 during an
 
21           election period; and
 
22      (3)  A candidate seeking nomination or election to a four-
 
23           year nonstatewide office or to the candidate's
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           committee in an aggregate amount greater than $4,000
 
 2           during an election period. 
 
 3      These limits shall not apply to a loan made to a candidate
 
 4 by a financial institution in the ordinary course of business.
 
 5      (b)  No person or any other entity shall make contributions
 
 6 to a noncandidate committee, in an aggregate amount greater than
 
 7 $1,000 in an election; except that in the case of a corporation
 
 8 or company using funds from its own treasury, there shall be no
 
 9 limit on contributions or expenditures to the corporation or
 
10 company noncandidate committee.
 
11      (c)  A [candidate] candidate's immediate family in making [a
 
12 contribution] contributions to the candidate's campaign shall be
 
13 exempt from the above limitation, but shall be limited in the
 
14 aggregate to $50,000 in any election period.  The aggregate
 
15 amount of $50,000 shall include any loans made for campaign
 
16 purposes to the candidate from the candidate's immediate family.
 
17      (d)  A contribution by a dependent minor shall be reported
 
18 in the name of the minor but shall be counted against the
 
19 contribution of the minor's parent or guardian.
 
20      (e)  Any candidate [or], candidate's committee, or committee
 
21 [who] that receives in the aggregate more than the applicable
 
22 limits set forth in this section in any primary, initial special,
 
23 special, or general election from a person, shall be required to
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 transfer an amount equal to any excess over the limits
 
 2 established in this section to the Hawaii election campaign fund
 
 3 within thirty days of receipt [by a candidate or candidate's
 
 4 committee,] of the contribution, and in any event, no later than
 
 5 thirty days upon the receipt by a candidate [or], candidate's
 
 6 committee, or committee, of notification from the commission.  A
 
 7 candidate [or], candidate's committee, or committee who complies
 
 8 with this subsection prior to the initiation of prosecution shall
 
 9 not be subject to any penalty under section 11-228.
 
10      (f)  All payments made by a person whose contributions or
 
11 expenditure activity is financed, maintained, or controlled by
 
12 any corporation, labor organization, association, political
 
13 party, or any other person or committee, including any parent,
 
14 subsidiary, branch, division, department, or local unit of the
 
15 corporation, labor organization, association, political party, or
 
16 any other person, or by any group of those persons shall be
 
17 considered to be made by a single person.
 
18      (g)  A contribution made by two or more corporations shall
 
19 be treated as one person when such corporations:
 
20      (1)  Share the majority of members of their boards of
 
21           directors;
 
22      (2)  Share two or more corporate officers;
 

 
 
 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (3)  Are owned or controlled by the same majority
 
 2           shareholder or shareholders; or
 
 3      (4)  Are in a parent-subsidiary relationship.
 
 4      (h)  An individual and any general partnership in which the
 
 5 individual is a partner, or an individual and any corporation in
 
 6 which the individual owns a controlling interest, shall be
 
 7 treated as one person.
 
 8      (i)  No committee which supports or opposes a candidate for
 
 9 public office shall have as officers individuals who serve as
 
10 officers on any other committee which supports or opposes the
 
11 same candidate.  No such committee shall act in concert with, or
 
12 solicit or make contributions on behalf of, any other committee.
 
13      [(j)  No contributions may be made to a noncandidate
 
14 committee from a corporation or other organization unless the
 
15 noncandidate committee has been in existence continuously, as
 
16 shown on the records of the campaign spending commission, for at
 
17 least twelve months prior to the next primary election.
 
18      (k)] (j)  No contributions or expenditures shall be made to
 
19 or on behalf of a candidate or committee by a foreign national or
 
20 foreign corporation, including a domestic subsidiary of a foreign
 
21 corporation, a domestic corporation that is owned by a foreign
 
22 national, or a local subsidiary where administrative control is
 
23 retained by the foreign corporation, and in the same manner
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 prohibited under 2 United States Code section 441e and 11 Code of
 
 2 Federal Regulations 110.4(a) and 110.9(a), as amended.  No
 
 3 foreign-owned domestic corporation shall make contributions
 
 4 where:
 
 5      (1)  Foreign national individuals participate in election-
 
 6           related activities such as decisions concerning the
 
 7           making of contributions or the administration of a
 
 8           political committee; or
 
 9      (2)  The contribution funds are not domestically-derived.
 
10      [(l)] (k)  No person or any other entity shall make
 
11 contributions to a political party in an aggregate amount greater
 
12 than $50,000 in any two-year election period. 
 
13      (l)  Except for subsection (j), this section shall not apply
 
14 to ballot issue committees."
 
15      SECTION 6.  Section 11-207, Hawaii Revised Statutes, is
 
16 amended by amending subsection (b) to read as follows:
 
17      "(b)  No funds shall be withdrawn or paid from a campaign
 
18 depository except upon the written authorization of the campaign
 
19 treasurer[.] or deputy treasurer."
 
20      SECTION 7.  Section 11-212, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "11-212  Preliminary reports.(a)  [Each candidate,
 
23 authorized person in the case of a party, or campaign treasurer
 
24 in the case of candidate committee,]  The candidate committee of
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 each candidate whose name will appear on the ballot in the next
 
 2 election shall file a preliminary report with the commission or
 
 3 appropriate county clerk's office[,].  Preliminary reports shall
 
 4 be filed on forms provided by the commission no later than 4:30
 
 5 p.m. on the [twenty-fifth and tenth calendar day prior to each
 
 6 primary and initial special election, and the tenth calendar day
 
 7 prior to a special or general election.] following dates:
 
 8      (1)  July 30 of the year of the primary election;
 
 9      (2)  Ten calendar days prior to each primary election;
 
10      (3)  Ten calendar days prior to each initial special
 
11           election;
 
12      (4)  Ten calendar days prior to a special election; and
 
13      (5)  Ten calendar days prior to a general election.
 
14      (b)  Each report shall be certified pursuant to section
 
15 11-195 and shall contain the following information which shall be
 
16 current through the [fifth] thirtieth calendar day prior to the
 
17 filing of [a preliminary report:] the report filed on the
 
18 thirtieth of July and the fifth calendar day prior to the filing
 
19 of other preliminary reports:
 
20      (1)  The aggregate sum of all contributions and other
 
21           campaign receipts received;
 
22      (2)  The amount and date of deposit of the contribution and
 
23           the name and address of each donor who contributes an
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           aggregate of more than $100 during an election period,
 
 2           which has not previously been reported;
 
 3      (3)  The amount and date of deposit of each contribution and
 
 4           the name, address, employer, and occupation of each
 
 5           donor who contributes an aggregate of $1,000 or more
 
 6           during an election period, which has not previously
 
 7           been reported;
 
 8      (4)  All expenditures made, incurred, or authorized by or
 
 9           for a candidate, including the name and address of each
 
10           payee and the amount, date, and purpose of each
 
11           expenditure; and
 
12      (5)  A current statement of the balance on hand or deficit.
 
13      [(b)] (c)  Each noncandidate committee shall file a
 
14 preliminary report with the commission, on forms provided by the
 
15 commission, no later than 4:30 p.m. on the tenth calendar day
 
16 prior to each primary election and the tenth calendar day prior
 
17 to a special or general election.  Each report shall be certified
 
18 pursuant to section 11-195 and shall contain the following
 
19 information, which shall be current through the fifth calendar
 
20 day prior to the filing of a preliminary report:
 
21      (1)  The aggregate sum of all contributions and other
 
22           campaign receipts received;
 

 
 
 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (2)  The amount and date of deposit of the contribution and
 
 2           the name, address, employer, and occupation of each
 
 3           donor who contributes an aggregate of $100 or more
 
 4           during an election period, which has not previously
 
 5           been reported;
 
 6      (3)  The amount and date of each disbursement or
 
 7           contribution made to a candidate, party, organization,
 
 8           or committee, including the name and address of each
 
 9           payee, which has not previously been reported;
 
10      (4)  The amount and date of each expenditure made or
 
11           incurred by the committee for or against any candidate,
 
12           ballot issue, or on behalf of another committee, which
 
13           has not previously been reported; and
 
14      (5)  A current statement of the balance on hand.
 
15      [(c)] (d)  A candidate, party, or committee whose aggregate
 
16 contributions [or] and aggregate expenditures for the reporting
 
17 period each total $2,000 or less, may file a short form report
 
18 with the commission or appropriate county clerk's office in lieu
 
19 of the reports required by this section and section 11-213.
 
20      [(d)] (e)  Notwithstanding this section and section 11-213,
 
21 a candidate, party, or committee whose aggregate contributions
 
22 [or] and aggregate expenditures for the election period each
 
23 total $1,000 or less, need not file a preliminary and final
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 primary report, a preliminary and final general report, or a
 
 2 special election report, but shall file only a final election
 
 3 period report."
 
 4      SECTION 8.  Section 11-213, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "11-213  Final and supplemental reports.(a)  Primary and
 
 7 initial special election.  Each candidate whether or not
 
 8 successful in a primary or initial special election, authorized
 
 9 person in the case of a party, or campaign treasurer in the case
 
10 of a committee, shall file a final primary report certified
 
11 pursuant to section 11-195 with the commission on forms provided
 
12 by the commission no later than 4:30 p.m. on the twentieth
 
13 calendar day after a primary or initial special election.  The
 
14 report shall include the following information which shall be
 
15 current through the day of the primary election:
 
16      (1)  A statement of the total contributions and campaign
 
17           receipts received;
 
18      (2)  The amount and date of deposit of each contribution and
 
19           the name and address of each donor who contributes an
 
20           aggregate of more than $100 during an election period,
 
21           which has not previously been reported;
 
22      (3)  The amount and date of deposit of each contribution and
 
23           the name, address, employer, and occupation of each
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           donor who contributes an aggregate of $1,000 or more
 
 2           during an election period, which has not previously
 
 3           been reported;
 
 4      (4)  A statement of all expenditures made, incurred, or
 
 5           authorized by or for a candidate including the name and
 
 6           address of each payee and the amount, date, and purpose
 
 7           of each expenditure; and
 
 8      (5)  The cash balance and a statement of surplus or deficit.
 
 9      (b)  Each noncandidate committee shall file a final primary
 
10 report, certified pursuant to section 11-195, with the commission
 
11 on forms provided by the commission no later than 4:30 p.m. on
 
12 the twentieth calendar day after a primary election.  The report
 
13 shall include the following information, which shall be current
 
14 through the day of the primary election:
 
15      (1)  A statement of the total contributions and campaign
 
16           receipts received;
 
17      (2)  The amount and date of deposit of each contribution and
 
18           the name, address, employer, and occupation of each
 
19           donor who contributes an aggregate of more than $100
 
20           during an election, which has not previously been
 
21           reported;
 
22      (3)  The amount and date of each disbursement or
 
23           contribution made to a candidate, party, organization,
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           or committee, including the name and address of each
 
 2           payee, which has not previously been reported;
 
 3      (4)  The amount and date of each expenditure made or
 
 4           incurred by the committee for or against any candidate,
 
 5           ballot issue, or on behalf of another committee, which
 
 6           has not previously been reported; and
 
 7      (5)  A current statement of the balance on hand.
 
 8      (c)  General, special general, special election or election
 
 9 period.  Each candidate, authorized person in the case of a
 
10 party, or campaign treasurer in the case of a committee shall
 
11 file a final election period general report with the commission
 
12 on forms provided by the commission no later than 4:30 p.m. on
 
13 the thirtieth calendar day after a general, special general, or
 
14 special election.  The final election period report shall be
 
15 certified pursuant to section 11-195, shall report all items
 
16 prescribed in subsection (a) or (b) for noncandidate committees,
 
17 and shall be current through the day of the general election.  A
 
18 candidate who is unsuccessful in a primary or special primary
 
19 election shall file a final election period report.
 
20      (d)  Termination.  A candidate, party, or committee may
 
21 terminate registration with the commission with no surplus or no
 
22 deficit.  A termination report approved by the commission shall
 
23 include information on the disposition of any funds, which has
 
24 not previously been reported.
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (e)  Deficit.  In the event of a deficit the candidate,
 
 2 authorized person in the case of a party, or campaign treasurer
 
 3 in the case of a committee shall, every six months until the
 
 4 deficit is eliminated, file supplemental reports covering all
 
 5 items prescribed in subsection (a), or subsection (b) in the case
 
 6 of noncandidate committees.  The first report shall be due no
 
 7 later than 4:30 p.m. on the thirtieth day after the last day of
 
 8 the election year.
 
 9      (f)  Surplus.  In the event of a surplus the candidate,
 
10 authorized person in the case of a party, or campaign treasurer
 
11 in the case of a committee, shall:
 
12      (1)  Maintain the cash surplus in a financial depository;
 
13           and
 
14      (2)  Every six months, until the candidate files to be on
 
15           the ballot with the state office of elections, or in
 
16           the case of a party or committee until they participate
 
17           in an election again, file supplemental reports
 
18           detailing all items prescribed in subsection (a) or in
 
19           the case of a noncandidate committee until they
 
20           participate in an election again, or file supplemental
 
21           reports detailing all items prescribed in subsection
 
22           (b).
 

 
 
 
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 1      The first report shall be due not later than 4:30 p.m. on
 
 2 the thirtieth calendar day after the last day of the election
 
 3 year.
 
 4      [(g)  Short form reporting.  A candidate, party, or
 
 5 committee who receives no contributions, makes no expenditures,
 
 6 and has a deficit or surplus of $2,000 or less in any prescribed
 
 7 reporting period shall nevertheless file preliminary, final, and
 
 8 supplemental reports on the respective dates pursuant to this
 
 9 subpart.  The reports may be filed on a short form as provided by
 
10 the commission.
 
11      (h)] (g)  All supplemental reports required by this section
 
12 shall be filed until a candidate files to be on the ballot with
 
13 the state elections office.  Each party or noncandidate committee
 
14 shall file a supplemental report for the respective reporting
 
15 period during a nonelection year.  In an election year, each
 
16 party and noncandidate committee shall file reports as prescribed
 
17 in this section and section 11-212 for the primary and general
 
18 election."
 
19      SECTION 9.  Section 11-215, Hawaii Revised Statutes, is
 
20 amended by amending subsections (a) and (b) to read as follows:
 
21      "(a)  [To the extent authorized by law, all] All
 
22 advertisements [authorized by a candidate or a candidate's
 
23 committee] shall contain the name and address of the candidate,
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 committee, [or] party, or person paying for the advertisement.
 
 2 If an advertisement is not authorized by a candidate or a
 
 3 candidate's committee, the advertisement shall contain the name
 
 4 and address of the person paying for the advertisement.
 
 5      (b)  In addition to subsection (a), [and to the extent
 
 6 authorized by law,] no [person] candidate or committee shall
 
 7 cause or submit any advertisement in support of a candidate [or],
 
 8 against a candidate's opponent, or with regard to a ballot issue,
 
 9 to be published, broadcast, televised, or otherwise circulated
 
10 and distributed except under the following conditions:
 
11      (1)  The advertisement shall contain a notice in a prominent
 
12           location that the literature or advertisement is
 
13           published, broadcast, televised, or circulated with the
 
14           approval and authority of the candidate[,]; provided
 
15           that in the event that the literature or advertisement
 
16           is paid for by a [candidate or] candidate's committee
 
17           [directly associated with a candidate,] or ballot issue
 
18           committee, the notice of approval and authority need
 
19           not be included; or
 
20      (2)  The advertisement shall contain a notice in a prominent
 
21           location that the literature or advertisement is
 
22           published, broadcast, televised, or circulated without
 
23           the approval and authority of the candidate."
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      SECTION 10. Section 11-228, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "11-228  Administrative fines; relief.(a)  In the
 
 4 performance of its required duties, the commission may render a
 
 5 decision or issue an order affecting any person violating any
 
 6 provision of this subpart [other than in sections 11-193(a)(5)
 
 7 and 11-215,] that shall provide for the assessment of an
 
 8 administrative fine in the manner prescribed as follows:
 
 9      (1)  If a natural person, an amount not to exceed $1,000 for
 
10           each occurrence or an amount equivalent to three times
 
11           the amount of an unlawful contribution or expenditure,
 
12           whichever is greater; or
 
13      (2)  If a corporation, organization, association, or labor
 
14           union, it shall be punished by a fine not exceeding
 
15           $1,000 for each occurrence; and
 
16      (3)  Whenever a corporation, organization, association, or
 
17           labor union violates this subpart, the violation shall
 
18           be deemed to be also that of the individual directors,
 
19           officers, or agents of the corporation, organization,
 
20           association, or labor union, who have knowingly
 
21           authorized, ordered, or done any of the acts
 
22           constituting the violation.
 

 
 
 
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 1      (b)  Any order for the assessment of an administrative fine
 
 2 may not be issued against a person without providing the person
 
 3 written notice and an opportunity to be heard at a hearing
 
 4 conducted under chapter 91.  A person may waive these rights by
 
 5 written stipulation or consent.  If an administrative fine is
 
 6 imposed upon a candidate, the commission may order that the fine,
 
 7 or any portion, be paid from the candidate's personal funds.
 
 8      (c)  If an order issued by the commission is not complied
 
 9 with by the person to whom it is directed, the first circuit
 
10 court, upon application of the commission, shall issue an order
 
11 requiring the person to comply with the commission's order.
 
12 Failure to obey such a court order shall be punished as contempt.
 
13      (d)  Any administrative fine collected by the commission
 
14 shall be deposited in the Hawaii election campaign fund.
 
15      (e)  Any person or the commission may sue for injunctive
 
16 relief to compel compliance with this subpart.
 
17      (f)  The provisions of this section shall not be construed
 
18 to prohibit prosecution under any appropriate provision of the
 
19 Hawaii Penal Code or section 11-229.
 
20      (g)  The provisions of this section shall not apply to any
 
21 person who has, prior to the commencement of proceedings under
 
22 this section, paid or agreed to pay the penalties prescribed by
 
23 sections 11-193(a)(5) and 11-215(c)."
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      SECTION 11.  Section 11-229, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "11-229  Criminal prosecution.(a)  Any [individual]
 
 4 person who knowingly, intentionally, or recklessly violates any
 
 5 provision of this subpart[, other than sections 11-193(a)(5) and
 
 6 11-215,] shall be guilty of a misdemeanor.  A person who is
 
 7 convicted under this section shall be disqualified from holding
 
 8 elective public office for a period of four years from the date
 
 9 of conviction.
 
10      (b)  For purposes of prosecution for violation of this
 
11 subpart, the offices of the attorney general and the prosecuting
 
12 attorney of the respective counties shall be deemed to have
 
13 concurrent jurisdiction to be exercised as follows:
 
14      (1)  Prosecution shall commence with a written request from
 
15           the commission or upon the issuance of an order of the
 
16           court; provided that prosecution may commence prior to
 
17           any proceeding initiated by the commission or final
 
18           determination;
 
19      (2)  In the case of state offices, parties, or issues, the
 
20           attorney general or the prosecuting attorney for the
 
21           city and county of Honolulu shall prosecute any
 
22           violation; and
 

 
 
 
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 1      (3)  In the case of all other offices, parties, or issues,
 
 2           the attorney general or the prosecuting attorney for
 
 3           the respective county shall prosecute any violation.
 
 4      In the commission's choice of prosecuting agency, it shall
 
 5 be guided by whether there will be any conflicting interest
 
 6 between the agency and its appointive authority.
 
 7      (c)  The court shall give priority to the expeditious
 
 8 processing of suits under this section.
 
 9      (d)  Prosecution for violation of any provision of this
 
10 subpart shall not be commenced after five years have elapsed from
 
11 the date of the violation or date of filing of the report
 
12 covering the period in which the violation occurred, whichever is
 
13 later. 
 
14      (e)  The provisions of this section shall not apply to any
 
15 person who has, prior to the commencement of proceedings under
 
16 this section, paid or agreed to pay the penalties prescribed by
 
17 sections 11-193(a)(5) and 11-215(c)."
 
18      SECTION 12.  Act 27, Special Session Laws of Hawaii 1995, is
 
19 amended by amending section 15 to read as follows:
 
20      "SECTION 15.  This Act shall take effect on July 1, 1995;
 
21 provided that on June 30, 1999, this Act shall be repealed and
 
22 sections 11-1, 11-2, 11-5, [11-191, 11-193, 11-194, 11-195,
 
23 11-216,] 12-8, and 26-1, Hawaii Revised Statutes, shall be
 

 
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 1 reenacted in the form in which they read on the day before the
 
 2 effective date of this Act."
 
 3      SECTION 13.  Statutory material to be repealed is bracketed.
 
 4 New statutory material is underscored.
 
 5      SECTION 14.  This Act shall take effect on June 29, 1999.