REPORT TITLE: 
Campaign Expenditure Limits


DESCRIPTION:
Amends the State campaign spending laws concerning the voluntary
expenditure limit and public matching fund program. 
(HB 72 CD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        72
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                S.D. 1
STATE OF HAWAII                                            C.D. 1
                                                             
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                     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 by amending the definition of "qualifying campaign
 
 3 contribution" to read as follows:
 
 4      ""Qualifying campaign contribution" means [a] an aggregate
 
 5 monetary contribution of $100 or less, [and not more than $100 of
 
 6 a person's total aggregate monetary contribution.] by any person
 
 7 during any matching payment period.  Qualifying contributions do
 
 8 not include loans or in-kind contributions."
 
 9      SECTION 2.  Section 11-203, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "11-203  Fundraisers and fundraising activities.(a)  As
 
12 used in this section, "fundraiser" means any function held for
 
13 the benefit of a person that is intended or designed, directly or
 
14 indirectly, to raise funds for political purposes for which the
 
15 price or suggested contribution for attending the function is
 
16 more than $25 per person.
 
17      (b)  There shall be no more than two fundraisers held for a
 
18 person prior to a general or special election in which that
 
19 person is either elected or defeated.
 
20      (c)  No fundraiser or fundraising activity shall be held
 

 
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 1 unless a notice of intent to hold the function is filed by the
 
 2 person in charge of the function with the commission prior to the
 
 3 date of the function setting forth the name and address of the
 
 4 person in charge, the price per person, the date, hour, and place
 
 5 of the affair and the method thereof.
 
 6      (d)  Fundraisers sponsored by a candidate for a statewide
 
 7 office are exempt from the $25 limit of subsection (a) and the
 
 8 restrictions of subsection (b), and fundraisers sponsored by a
 
 9 party for a political purpose for the general benefit of the
 
10 party are exempt from the restrictions of subsection (b).
 
11      [(e)  The following expenses incident to a fundraiser and to
 
12 all other political fundraising activities held for the benefit
 
13 of a candidate shall not be considered expenditures within the
 
14 limitations set by section 11-209:
 
15      (1)  The cost of food and beverages consumed at the
 
16           function;
 
17      (2)  Rent and utilities for the premises where the function
 
18           is held;
 
19      (3)  The amount paid for guest speakers and entertainment;
 
20      (4)  Printing and postage related to a function; and
 
21      (5)  All other direct costs incurred in solicitation of the
 
22           fundraiser, or fundraising activity.]"
 
23      SECTION 3.  Section 11-208, Hawaii Revised Statutes, is
 

 
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 1 amended to read as follows:
 
 2      "11-208  Voluntary campaign expenditure limitation.(a)
 
 3 Any candidate may voluntarily agree to limit the candidate's
 
 4 campaign expenditures and those of the candidate's committee or
 
 5 committees and the candidate's party in the candidate's behalf by
 
 6 filing an affidavit with the campaign spending commission[;
 
 7 provided that a candidate may withdraw the candidate's affidavit
 
 8 no later than thirty days prior to a primary election.  Any
 
 9 candidate withdrawing the candidate's affidavit shall notify all
 
10 contributors during the election period, in writing, that
 
11 contributions are not tax deductible].
 
12      (b)  The affidavit shall state that the candidate knows the
 
13 voluntary campaign expenditure limitations as set out in section
 
14 11-209 and that the candidate is voluntarily agreeing to limit
 
15 the candidate's expenditures and those made on the candidate's
 
16 behalf by the amount set by law.  The affidavit shall be
 
17 subscribed to by the candidate and notarized.
 
18      (c)  Affidavits in compliance with this section shall be
 
19 filed by [January 31 of the year of any primary, special, or
 
20 general election, or on the date set for filing the candidate's
 
21 organizational report as provided in section 11-196, whichever is
 
22 later.] the time of filing of nomination papers with the chief
 
23 election officer or county clerk."
 

 
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 1      SECTION 4.  Section 11-209, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "11-209  Campaign expenditures; limits as to amounts.(a)
 
 4 From January 1 of the year of any primary, special, or general
 
 5 election, the total expenditures for each election for candidates
 
 6 who voluntarily agree to limit their campaign expenditures [for
 
 7 each election], inclusive of all expenditures made or authorized
 
 8 by the candidate alone and all campaign treasurers and committees
 
 9 in the candidate's behalf, shall not exceed the following amounts
 
10 expressed respectively multiplied by the number of voters in the
 
11 last preceding general election registered to vote in each
 
12 respective voting district:
 
13      (1)  For the office of governor--$2.50;
 
14      (2)  For the office of lieutenant governor--$1.40;
 
15      (3)  For the office of mayor--$2.00;
 
16      (4)  For the offices of state senator, state representative,
 
17           county council member, and prosecuting attorney--$1.40;
 
18           and
 
19      (5)  For the offices of the board of education and all other
 
20           offices--20 cents.
 
21      (b)  A candidate or committee who has voluntarily agreed to
 
22 the expenditure limits in this section and who exceeds their
 
23 respective expenditure limits shall pay the full filing fee and
 

 
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 1 shall notify all opponents, the chief election officer, [all
 
 2 contributors,] and the commission by telephone and in writing the
 
 3 day the expenditure limits are exceeded.  All contributors shall
 
 4 be notified within thirty days of exceeding the expenditure
 
 5 limits.  Notification to contributors shall include an
 
 6 announcement that tax deductions based on their contributions are
 
 7 no longer available."
 
 8      SECTION 5.  Section 11-217.5, Hawaii Revised Statutes, is
 
 9 amended by amending subsection (b) to read as follows:
 
10      "(b)  In the event that the Hawaii election campaign fund is
 
11 close to depletion, as determined by the commission, the
 
12 commission shall determine the amounts available to qualified
 
13 candidates based on their order of eligibility in qualifying for
 
14 public funds, as determined by the date of filing of an
 
15 [affidavit] application for public funds with the commission
 
16 pursuant to section [11-208;] 11-222; provided that the
 
17 [affidavit] application has been accepted by the commission."
 
18      SECTION 6.  Section 11-218, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 
20      "11-218  Candidate funding; amounts available.(a)  The
 
21 maximum amount of public funds available to a candidate for the
 
22 office of governor, lieutenant governor, or mayor in any election
 
23 year shall not exceed one-fifth or twenty per cent of the total
 

 
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 1 expenditure limit for each election as established for each
 
 2 office [above] listed in this subsection pursuant to section
 
 3 11-209.
 
 4      (b)  For the office of state senator, state representative,
 
 5 county council member, and prosecuting attorney, the maximum
 
 6 amount of public funds available to a candidate in any election
 
 7 year shall be thirty per cent of the total expenditure limit for
 
 8 each election as established for each office listed in this
 
 9 subsection pursuant to section 11-209.
 
10      (c)  For the board of education and all other offices, the
 
11 maximum amount of public funds available to a candidate shall not
 
12 exceed $100 in any election year.
 
13      (d)  The total amount of public funds for a primary, special
 
14 primary, or general election to which a candidate is entitled to
 
15 receive under section 11-221 shall not exceed fifty per cent of
 
16 the maximum amount of public funds available for the candidate's
 
17 respective office.  Each candidate who qualified for the maximum
 
18 amount of public funding in any primary or special primary
 
19 election and who is a candidate for a subsequent general election
 
20 shall upon application with the commission be entitled to receive
 
21 up to fifty per cent of the balance of public funds available to
 
22 such candidate."
 
23      SECTION 7.  Section 11-219, Hawaii Revised Statutes, is
 

 
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 1 amended to read as follows:
 
 2      "11-219  Qualifying campaign contributions; amounts.  As a
 
 3 condition of receiving public funds for a primary, special
 
 4 primary, or general election, a candidate shall not be unopposed
 
 5 in any election for which public funds are sought, and shall have
 
 6 filed an affidavit with the commission pursuant to section 11-208
 
 7 to voluntarily limit the candidate's campaign expenditures and
 
 8 shall be in receipt of the following sum of qualifying campaign
 
 9 contributions for the candidate's respective office for each
 
10 election:
 
11      (1)  For the office of governor--qualifying contributions
 
12           that in the aggregate, exceed $100,000;
 
13      (2)  For the office of lieutenant governor--qualifying
 
14           contributions that in the aggregate, exceed $50,000;
 
15      (3)  For the office of mayor for each respective county:
 
16           (A)  County of Honolulu--qualifying contributions that
 
17                in the aggregate, exceed $50,000;
 
18           (B)  County of Hawaii--qualifying contributions that in
 
19                the aggregate, exceed $15,000;
 
20           (C)  County of Maui--qualifying contributions that in
 
21                the aggregate, exceed $10,000; and
 
22           (D)  County of Kauai--qualifying contributions that in
 
23                the aggregate, exceed $5,000; and
 

 
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 1      (4)  For the office of prosecuting attorney for each
 
 2           respective county:
 
 3           (A)  County of Honolulu--qualifying contributions that
 
 4                in the aggregate, exceed $30,000;
 
 5           (B)  County of Hawaii--qualifying contributions that in
 
 6                the aggregate, exceed $10,000; and
 
 7           (C)  County of Kauai--qualifying contributions that in
 
 8                the aggregate, exceed $5,000;
 
 9      (5)  For the office of county council--for each respective
 
10           county:
 
11           (A)  County of Honolulu--qualifying contributions that
 
12                in the aggregate, exceed $5,000;
 
13           (B)  County of Hawaii--qualifying contributions that in
 
14                the aggregate, exceed $1,500;
 
15           (C)  County of Maui--qualifying contributions that in
 
16                the aggregate, exceed $5,000; and
 
17           (D)  County of Kauai--qualifying contributions that in
 
18                the aggregate, exceed $3,000;
 
19      (6)  For the office of [the] state senator--qualifying
 
20           contributions that, in the aggregate, exceed $2,500;
 
21      (7)  For the office of state [house of] representative--
 
22           qualifying contributions that, in the aggregate, exceed
 
23           $1,500; and
 

 
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 1      (8)  For all other offices, qualifying contributions that,
 
 2           in the aggregate, exceed $500."
 
 3      SECTION 8.  Section 11-222, Hawaii Revised Statutes, is
 
 4 amended by amending subsection (a) to read as follows:
 
 5      "(a)  Application forms for public funds shall be adopted by
 
 6 the commission and shall provide for a sworn statement by the
 
 7 candidate that the candidate has established eligibility under
 
 8 section 11-220 to receive payments under section 11-217.  Each
 
 9 application shall be accompanied by a qualifying campaign
 
10 contribution statement or statements, and shall be filed with the
 
11 commission no later than [sixty] thirty days after the general
 
12 election.  Upon approval by the commission of the application and
 
13 qualifying contribution statement, the commission shall direct
 
14 the comptroller to distribute matching public funds up to the
 
15 maximum of the amount of public funds to which the candidate is
 
16 entitled.
 
17      Public funds shall be distributed by the comptroller to each
 
18 eligible candidate within [ten] twenty days from the date of the
 
19 candidate's initial application with the commission."
 
20      SECTION 9.  Section 11-223, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "11-223  Candidate funding; restrictions.(a)  Each
 
23 candidate who accepts public campaign funds under this subpart
 

 
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 1 shall be required to abide by the campaign spending limits for
 
 2 the candidate's respective office as set forth in section 11-209.
 
 3 Any candidate who exceeds the spending limits for the candidate's
 
 4 respective office as set forth in section 11-209 shall
 
 5 immediately return all of the public campaign funds the candidate
 
 6 has received to the Hawaii election campaign fund[; provided that
 
 7 any candidate who exceeds the limits by no more than one per cent
 
 8 shall return twenty-five per cent of the fund].
 
 9      (b)  Public campaign funds provided under this subpart shall
 
10 only be used to:
 
11      (1)  Defray campaign expenses incurred by and paid for an
 
12           eligible candidate or all committees authorized by such
 
13           candidate; and
 
14      (2)  Repay loans, the proceeds of which were used to defray
 
15           campaign expenses.
 
16      (c)  No candidate or committee authorized by a candidate
 
17 shall be entitled to receive any public funds under this subpart
 
18 unless the candidate [and at least one other candidate for the
 
19 same elective seat have] has qualified to have [their names] the
 
20 candidate's name on the election ballot in the [same] election[.]
 
21 for which funds are sought.
 
22      (d)  In no event shall any candidate or campaign treasurer
 
23 in receipt of public campaign funds transfer any portion of such
 

 
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 1 funds to another candidate for any primary, special primary,
 
 2 special, or general election campaign.
 
 3      (e)  All public funds received under this subpart shall be
 
 4 deposited in a financial institution designated to do business in
 
 5 the State.  No expenditures of any public funds received under
 
 6 this subpart shall be made except by checks drawn on such
 
 7 checking account.  The commission may require such reports
 
 8 relating to the expenditure of such funds as it considers
 
 9 appropriate.
 
10      (f)  [Upon] Each candidate, on the deadline for filing of a
 
11 final report for any primary, special primary, special, or
 
12 general election, [each candidate who has spent an amount below
 
13 the expenditure limit set for the candidate's respective office,
 
14 but who has received the maximum amount of public funds allowable
 
15 for the candidate's respective office,] shall return all
 
16 unexpended public funds to the Hawaii election campaign fund."
 
17      SECTION 10.  Act 27, Special Session Laws of Hawaii 1995, as
 
18 amended by Act 13, Session Laws of Hawaii 1996, is amended by
 
19 amending section 15 to read as follows:
 
20      "SECTION 15.  This Act shall take effect on July 1, 1995;
 
21 provided that [on]:
 
22      (1)  On June 30, 1999, this Act shall be repealed and
 
23           sections 11-1, 11-2, 11-5, 11-191, 11-194, 11-195,
 
24           11-216, 12-8, and 26-1, Hawaii Revised Statutes, shall
 

 
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 1           be reenacted in the form in which they read on the day
 
 2           before the effective date of this Act.
 
 3      (2)  The amendments made by Act    , Session Laws of Hawaii
 
 4           1999, shall not be repealed when the provisions in
 
 5           paragraph (1) are reenacted."
 
 6      SECTION 11.  In printing this Act, the revisor of statutes
 
 7 shall insert the number of this Act in section 10.
 
 8      SECTION 12.  Statutory material to be repealed is bracketed.
 
 9 New statutory material is underscored.
 
10      SECTION 13.  This Act shall take effect on June 29, 1999.