REPORT TITLE: 
Campaign Expenditure Limits


DESCRIPTION:
Amends the State campaign spending laws concerning the voluntary
expenditure limit and public matching fund program. 
(HB72 HD2)


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

 
Page 2                                                     
                                     H.B. NO.           
                                                        
                                                        

 
 1      Within six months after a general or special election,
 
 2 however, a candidate or committee directly associated with a
 
 3 candidate who has a deficit may hold an additional fundraiser.
 
 4      (c)  No fundraiser or fundraising activity shall be held
 
 5 unless a notice of intent to hold the function is filed by the
 
 6 person in charge of the function with the commission prior to the
 
 7 date of the function setting forth the name and address of the
 
 8 person in charge, the price per person, the date, hour, and place
 
 9 of the affair and the method thereof.
 
10      (d)  Fundraisers sponsored by a candidate for a statewide
 
11 office are exempt from the $25 limit of subsection (a) and the
 
12 restrictions of subsection (b), and fundraisers sponsored by a
 
13 party for a political purpose for the general benefit of the
 
14 party are exempt from the restrictions of subsection (b).
 
15      [(e)  The following expenses incident to a fundraiser and to
 
16 all other political fundraising activities held for the benefit
 
17 of a candidate shall not be considered expenditures within the
 
18 limitations set by section 11-209:
 
19      (1)  The cost of food and beverages consumed at the
 
20           function;
 
21      (2)  Rent and utilities for the premises where the function
 
22           is held;
 
23      (3)  The amount paid for guest speakers and entertainment;
 

 
Page 3                                                     72
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (4)  Printing and postage related to a function; and
 
 2      (5)  All other direct costs incurred in solicitation of the
 
 3           fundraiser, or fundraising activity.]"
 
 4      SECTION 3.  Section 11-208, Hawaii Revised Statutes, is
 
 5 amended as follows:
 
 6      1. By amending subsection (a) to read:
 
 7      "(a)  Any candidate may voluntarily agree to limit the
 
 8 candidate's campaign expenditures and those of the candidate's
 
 9 committee or committees and the candidate's party in the
 
10 candidate's behalf by filing an affidavit with the campaign
 
11 spending commission[; provided that a candidate may withdraw the
 
12 candidate's affidavit no later than thirty days prior to a
 
13 primary election.  Any candidate withdrawing the candidate's
 
14 affidavit shall notify all contributors during the election
 
15 period, in writing, that contributions are not tax deductible]."
 
16      2. By amending subsection (c) to read:
 
17      "(c)  Affidavits in compliance with this section shall be
 
18 filed by [January 31 of the year of any primary, special, or
 
19 general election, or on the date set for filing the candidate's
 
20 organizational report as provided in section 11-196, whichever is
 
21 later] the time of filing of nomination papers with the chief
 
22 elections officer or county clerk."
 

 
 
 
Page 4                                                     72
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 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
 
24 shall notify all opponents, the chief election officer, [all
 

 
Page 5                                                     72
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 contributors,] and the commission by telephone and in writing the
 
 2 day the expenditure limits are exceeded.  All contributors shall
 
 3 be notified in writing within thirty days of the day on which
 
 4 expenditure limits are exceeded.  Notification to contributors
 
 5 shall include an announcement that tax deductions based on their
 
 6 contributions are no longer available."
 
 7      SECTION 5.  Section 11-217.5, Hawaii Revised Statutes, is
 
 8 amended by amending subsection (b) to read as follows:
 
 9      "(b)  In the event that the Hawaii election campaign fund is
 
10 close to depletion, as determined by the commission, the
 
11 commission shall determine the amounts available to qualified
 
12 candidates based on their order of eligibility in qualifying for
 
13 public funds, as determined by the date of filing of an
 
14 [affidavit] application for public funds with the commission
 
15 pursuant to section [11-208;] 11-222; provided that the
 
16 [affidavit] application has been accepted by the commission."
 
17      SECTION 6.  Section 11-218, Hawaii Revised Statutes, is
 
18 amended as follows:
 
19      1.  By amending subsections (a) and (b) to read:
 
20      "(a)  The maximum amount of public funds available to a
 
21 candidate for the office of governor, lieutenant governor, or
 
22 mayor in any election year shall not exceed one-fifth or twenty
 
23 per cent of the total expenditure limit for each election as
 
24 established for each office above pursuant to section 11-209.
 

 
Page 6                                                     72
                                     H.B. NO.           H.D. 2
                                                        
                                                        

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

 
Page 7                                                     72
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 have filed an affidavit with the commission pursuant to section
 
 2 11-208 to voluntarily limit the candidate's campaign expenditures
 
 3 and shall be in receipt of the following sum of qualifying
 
 4 campaign contributions for the candidate's respective office for
 
 5 each election:
 
 6      (1)  For the office of governor--qualifying contributions
 
 7           that in the aggregate, exceed $100,000;
 
 8      (2)  For the office of lieutenant governor--qualifying
 
 9           contributions that in the aggregate, exceed $50,000;
 
10      (3)  For the office of mayor for each respective county:
 
11           (A)  County of Honolulu--qualifying contributions that
 
12                in the aggregate, exceed $50,000;
 
13           (B)  County of Hawaii--qualifying contributions that in
 
14                the aggregate, exceed $15,000;
 
15           (C)  County of Maui--qualifying contributions that in
 
16                the aggregate, exceed $10,000; and
 
17           (D)  County of Kauai--qualifying contributions that in
 
18                the aggregate, exceed $5,000; [and]
 
19      (4)  For the office of prosecuting attorney for each
 
20           respective county:
 
21           (A)  County of Honolulu--qualifying contributions that
 
22                in the aggregate, exceed $30,000;
 

 
 
 
Page 8                                                     72
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           (B)  County of Hawaii--qualifying contributions that in
 
 2                the aggregate, exceed $10,000; and
 
 3           (C)  County of Kauai--qualifying contributions that in
 
 4                the aggregate, exceed $5,000;
 
 5      (5)  For the office of county council--for each respective
 
 6           county:
 
 7           (A)  County of Honolulu--qualifying contributions that
 
 8                in the aggregate, exceed $5,000;
 
 9           (B)  County of Hawaii--qualifying contributions that in
 
10                the aggregate, exceed $1,500;
 
11           (C)  County of Maui--qualifying contributions that in
 
12                the aggregate, exceed $5,000; and
 
13           (D)  County of Kauai--qualifying contributions that in
 
14                the aggregate, exceed $3,000;
 
15      (6)  For the office of [the] state senator--qualifying
 
16           contributions that[,] in the aggregate, exceed $2,500;
 
17      (7)  For the office of state house of representative--
 
18           qualifying contributions that[,] in the aggregate,
 
19           exceed $1,500; and
 
20      (8)  For all other offices, qualifying contributions that[,]
 
21           in the aggregate, exceed $500."
 
22      SECTION 8.  Section 11-222, Hawaii Revised Statutes, is
 
23 amended by amending subsection (a) to read as follows:
 

 
Page 9                                                     72
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      "(a)  Application forms for public funds shall be adopted by
 
 2 the commission and shall provide for a sworn statement by the
 
 3 candidate that the candidate has established eligibility under
 
 4 section 11-220 to receive payments under section 11-217.  Each
 
 5 application shall be accompanied by a qualifying campaign
 
 6 contribution statement or statements, and shall be filed with the
 
 7 commission no later than [sixty] thirty days after the general
 
 8 election.  Upon approval by the commission of the application and
 
 9 qualifying contribution statement, the commission shall direct
 
10 the comptroller to distribute matching public funds up to the
 
11 maximum of the amount of public funds to which the candidate is
 
12 entitled.
 
13      Public funds shall be distributed by the comptroller to each
 
14 eligible candidate within [ten] twenty days from the date of the
 
15 candidate's initial application with the commission."
 
16      SECTION 9.  Section 11-223, Hawaii Revised Statutes, is
 
17 amended as follows:
 
18      1.  By amending subsection (a) to read:
 
19      "(a)  Each candidate who accepts public campaign funds under
 
20 this subpart shall be required to abide by the campaign spending
 
21 limits for the candidate's respective office as set forth in
 
22 section 11-209.  Any candidate who exceeds the spending limits
 
23 for the candidate's respective office as set forth in section
 

 
Page 10                                                    72
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 11-209 shall return all of the public campaign funds the
 
 2 candidate has received to the Hawaii election campaign fund[;
 
 3 provided that any candidate who exceeds the limits by no more
 
 4 than one per cent shall return twenty-five per cent to the
 
 5 fund]."
 
 6      2.  By amending subsection (c) to read:
 
 7      "(c)  No candidate or committee authorized by a candidate
 
 8 shall be entitled to receive any public funds under this subpart
 
 9 unless the candidate [and at least one other candidate for the
 
10 same elective seat have] has qualified to have [their names] the
 
11 candidate's name on the election ballot in the [same] election
 
12 for which funds are sought."
 
13      3.  By amending subsection (f) to read:
 
14      "(f)  Upon the filing of a final report for any primary,
 
15 special primary, special, or general election, each candidate
 
16 [who has spent an amount below the expenditure limit set for the
 
17 candidate's respective office, but who has received the maximum
 
18 amount of public funds allowable for the candidate's respective
 
19 office,] shall return all unexpended public funds to the Hawaii
 
20 election campaign fund."
 
21      SECTION 10.  Statutory material to be repealed is bracketed.
 
22 New statutory material is underscored.
 
23      SECTION 11.  This Act shall take effect upon its approval.