REPORT TITLE:
Camp. spending; committees


DESCRIPTION:
Amends election law to add a new definition for "ballot issue
committee".  Redefines "committee" to exempt any organization
which raises or expends funds for the sole purpose of production
and dissemination of informational or educational advertising.
Amends other portions of the election law. (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           628
TWENTIETH LEGISLATURE, 1999                                S.D. 1
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 to read as follows:
 
 3      1.  By adding a new definition to be appropriately inserted
 
 4 and to read as follows:
 
 5      ""Ballot issue committee" means a committee as defined in
 
 6 this section which 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 as
 
10 follows:
 
11      ""Committee" means:
 
12      (1)  Any organization, association, or individual that
 
13           accepts or makes a contribution or makes an expenditure
 
14           for or against any:
 
15           (A)  Candidate;
 
16           (B)  Individual who files for nomination at a later
 
17                date and becomes a candidate; or
 
18           (C)  Party;
 
19           with or without the authorization of the candidate,
 
20           individual, or party.  In addition, the term
 

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

 
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 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.] Notwithstanding
 
 8           any of the foregoing, the term "committee" shall not
 
 9           include any organization, which raises or expends funds
 
10           for the sole purpose of the production and
 
11           dissemination of informational or educational
 
12           advertising."
 
13      SECTION 2.  Section 11-193, Hawaii Revised Statutes, is
 
14 amended by amending subsection (a) to read as follows:
 
15      "11-193  Duties of the commission.(a)  The duties of the
 
16 commission under this subpart are:
 
17      (1)  To develop and adopt reporting forms required by this
 
18           subpart;
 
19      (2)  To adopt and publish a manual for all candidates and
 
20           committees, describing the requirements of this
 
21           subpart, including uniform and simple methods of
 
22           recordkeeping;
 

 
 
 
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 1      (3)  To preserve all reports required by this subpart for at
 
 2           least ten years from the date of receipt;
 
 3      (4)  To permit the inspection, copying, or duplicating of
 
 4           any report required by this subpart pursuant to rules
 
 5           adopted by the commission; provided that no information
 
 6           or copies from the reports shall be sold or used by any
 
 7           person for the purpose of soliciting contributions or
 
 8           for any commercial purpose;
 
 9      (5)  To ascertain whether any candidate, committee, or party
 
10           has failed to file a report required by this subpart or
 
11           has filed a substantially defective or deficient
 
12           report, and to notify these persons by first class mail
 
13           that their failure to file or filing of a substantially
 
14           defective or deficient report must be corrected and
 
15           explained.  The correction or explanation shall be
 
16           submitted in writing to the commission not later than
 
17           4:30 p.m. on the fifth day after notification of the
 
18           failure to file or deficiency has been mailed to these
 
19           persons.  The commission shall publish either in the
 
20           newspaper, on its website, or in both, the names of all
 
21           candidates, committees, and parties who have failed to
 
22           file a report or to correct their deficiency within the
 
23           time allowed by the commission.  Failure to file or
 
24           correct a report when due, as required by this subpart,
 

 
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 1           shall result in a penalty of $50.  Failure to respond
 
 2           after a newspaper notification or website publication
 
 3           shall result in an additional penalty of $50 for each
 
 4           day a report remains overdue or uncorrected.  All
 
 5           penalties collected under this section shall be
 
 6           deposited in the Hawaii election campaign fund;
 
 7      (6)  To hold public hearings;
 
 8      (7)  To investigate and hold hearings for receiving evidence
 
 9           of any violations;
 
10      (8)  To adopt a code of fair campaign practices as a part of
 
11           its rules;
 
12      (9)  To establish rules pursuant to chapter 91;
 
13     (10)  To request the initiation of prosecution for the
 
14           violation of this subpart pursuant to section 11-229;
 
15     (11)  To administer and monitor the distribution of public
 
16           funds under this subpart;
 
17     (12)  To suggest accounting methods for candidates, parties,
 
18           and committees, as the commission may deem advisable,
 
19           in connection with reports and records required by this
 
20           subpart;
 
21     (13)  To employ or contract, without regard to chapters 76
 
22           and 77 and section 28-8.3, and, at pleasure, to dismiss
 
23           persons it finds necessary for the performance of its
 

 
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 1           functions, including a full-time executive director,
 
 2           and to fix their compensation;
 
 3     (14)  To do random audits, field investigations, as
 
 4           necessary; 
 
 5     (15)  To file for injunctive relief when indicated;
 
 6     (16)  To censure any candidate who fails to comply with the
 
 7           code of fair campaign practices; and
 
 8     (17)  To render advisory opinions upon the request of any
 
 9           candidate, candidate committee, noncandidate committee,
 
10           or other person or entity subject to this chapter, as
 
11           to whether the facts and circumstances of a particular
 
12           case constitute or will constitute a violation of the
 
13           campaign spending laws.  If no advisory opinion is
 
14           rendered within ninety days after all information
 
15           necessary to issue an opinion has been obtained, it
 
16           shall be deemed that an advisory opinion was rendered
 
17           and that the facts and circumstances of that particular
 
18           case do not constitute a violation of the campaign
 
19           spending laws.  The opinion rendered or deemed
 
20           rendered, until amended or revoked, shall be binding on
 
21           the commission in any subsequent charges concerning the
 
22           candidate, candidate committee, noncandidate committee,
 
23           or other person or entity subject to this chapter, who
 

 
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 1           sought the opinion and acted in reliance on it in good
 
 2           faith, unless material facts were omitted or misstated
 
 3           by the persons in the request for an advisory opinion."
 
 4      SECTION 3.  Section 11-194, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "11-194  Registration.(a)  Each candidate, committee, or
 
 7 party shall file an organizational report as set forth in section
 
 8 11-196, or section 11-196.5 as applicable, within ten days from
 
 9 the date a candidate or candidate committee receives any
 
10 contributions [or makes any expenditures,] the aggregate amount
 
11 of which is more than $100, or makes any expenditures, or, within
 
12 ten days from the date a noncandidate committee receives any
 
13 contributions or makes any expenditures, the aggregate amount of
 
14 which is more than $1,000.
 
15      (b)  Committees that form within ten days of an election and
 
16 expend in the aggregate more than $1,000 shall register and fully
 
17 disclose the expenditure by 4:30 p.m. on the last calendar day
 
18 prior to the expenditure.
 
19      (c)  Each candidate who [is certified to be a candidate by
 
20 the] files nomination papers for office with the chief election
 
21 officer or county clerk [by way of the "write-in" ballot] shall
 
22 file an organizational report within five days of [being
 
23 certified as a candidate.] filing.
 

 
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 1      [(d)  Each candidate shall re-register for the new election
 
 2 period.  A noncandidate committee need not re-register for a new
 
 3 election period, but shall affirm the accuracy of the information
 
 4 on the organizational report as set forth in section 11-196.5.]"
 
 5      SECTION 4.  Section 11-195, Hawaii Revised Statutes, is
 
 6 amended by amending subsection (a) to read as follows:
 
 7      "(a)  All reports required to be filed under this subpart by
 
 8 a candidate or those committees directly associated with the
 
 9 candidate's candidacy shall be certified by the candidate[.] and
 
10 treasurer or deputy treasurer.  Reports required to be filed
 
11 under this subpart by a party or committee that supports more
 
12 than one candidate shall be certified by a person authorized to
 
13 sign the reports.  All reports required to be filed under this
 
14 subpart shall be open for public inspection in the office of the
 
15 commission."
 
16      SECTION 5.  Section 11-199, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "11-199  Campaign contributions, generally.(a)  All
 
19 monetary contributions shall be promptly deposited in a
 
20 depository institution, as defined by section 412:1-109, duly
 
21 authorized to do business in the State, such as a bank, savings
 
22 bank, savings and loan association, depository financial services
 
23 loan company, credit union, intra-Pacific bank, or similar
 

 
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 1 financial institution, the deposits or accounts of which are
 
 2 insured by the Federal Deposit Insurance Corporation, or the
 
 3 national credit union administration in the name of the
 
 4 candidate, committee, or party, whichever is applicable.
 
 5      (b)  Each candidate, committee, or party shall establish and
 
 6 maintain an itemized record showing the amount of each monetary
 
 7 contribution, the description and value of each nonmonetary
 
 8 contribution, and the name and address of each donor making a
 
 9 contribution of more than $25 in value.
 
10      [(c)  Each candidate and campaign treasurer shall report the
 
11 amount and date of deposit of each contribution and the name and
 
12 address of each donor who makes a contribution whose aggregate
 
13 value is more than $100.
 
14      (d)] (c)  No candidate, committee, or party shall accept a
 
15 contribution of more than $100 in cash from a single person
 
16 without issuing a receipt to the donor and keeping a record of
 
17 the transaction.
 
18      [(e)] (d)  Each committee and party shall disclose the
 
19 original source of all earmarked funds, the ultimate recipient of
 
20 the earmarked funds, and the fact that the funds are earmarked."
 
21      SECTION 6.  Section 11-204, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 

 
 
 
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 1      "11-204  Campaign contributions; limits as to persons.(a)
 
 2 No person, other than a candidate for the candidate's own
 
 3 campaign, or any other entity shall make contributions to:
 
 4      (1)  A candidate seeking nomination or election to a two-
 
 5           year office or to the candidate's committee in an
 
 6           aggregate amount greater than $2,000 during an election
 
 7           period; and
 
 8      (2)  A candidate seeking nomination or election to a four-
 
 9           year statewide office or to the candidate's committee
 
10           in an aggregate amount greater than $6,000 during an
 
11           election period; and
 
12      (3)  A candidate seeking nomination or election to a four-
 
13           year nonstatewide office or to the candidate's
 
14           committee in an aggregate amount greater than $4,000
 
15           during an election period.
 
16      These limits shall not apply to a loan made to a candidate
 
17 by a financial institution in the ordinary course of business.
 
18      (b)  No person or any other entity shall make contributions
 
19 to a noncandidate committee, in an aggregate amount greater than
 
20 $1,000 in an election; except that in the case of a corporation
 
21 or company using funds from its own treasury, there shall be no
 
22 limit on contributions or expenditures to the corporation or
 
23 company noncandidate committee.
 

 
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 1      (c)  A [candidate] candidate's immediate family, in making
 
 2 [a contribution] contributions to the candidate's campaign, shall
 
 3 be exempt from the above limitation, but shall be limited in the
 
 4 aggregate to $50,000 in any election period.  The aggregate
 
 5 amount of $50,000 shall include any loans made for campaign
 
 6 purposes to the candidate from the candidate's immediate family.
 
 7      (d)  A contribution by a dependent minor shall be reported
 
 8 in the name of the minor but shall be counted against the
 
 9 contribution of the minor's parent or guardian.
 
10      (e)  Any candidate [or], candidate's committee, or committee
 
11 who receives in the aggregate more than the applicable limits set
 
12 forth in this section in any primary, initial special, special,
 
13 or general election from a person, shall be required to transfer
 
14 an amount equal to any excess over the limits established in this
 
15 section to the Hawaii election campaign fund within thirty days
 
16 of receipt by a candidate or candidate's committee, and in any
 
17 event, no later than thirty days upon the receipt by a candidate
 
18 or candidate's committee of notification from the commission.  A
 
19 candidate [or], candidate's committee, or committee who complies
 
20 with this subsection prior to the initiation of prosecution shall
 
21 not be subject to any penalty under section 11-228.
 
22      (f)  All payments made by a person whose contributions or
 
23 expenditure activity is financed, maintained, or controlled by
 
24 any corporation, labor organization, association, political
 

 
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 1 party, or any other person or committee, including any parent,
 
 2 subsidiary, branch, division, department, or local unit of the
 
 3 corporation, labor organization, association, political party, or
 
 4 any other person, or by any group of those persons shall be
 
 5 considered to be made by a single person.
 
 6      (g)  A contribution made by two or more corporations shall
 
 7 be treated as one person when such corporations:
 
 8      (1)  Share the majority of members of their boards of
 
 9           directors;
 
10      (2)  Share two or more corporate officers;
 
11      (3)  Are owned or controlled by the same majority
 
12           shareholder or shareholders; or
 
13      (4)  Are in a parent-subsidiary relationship.
 
14      (h)  An individual and any general partnership in which the
 
15 individual is a partner, or an individual and any corporation in
 
16 which the individual owns a controlling interest, shall be
 
17 treated as one person.
 
18      (i)  No committee which supports or opposes a candidate for
 
19 public office shall have as officers individuals who serve as
 
20 officers on any other committee which supports or opposes the
 
21 same candidate.  No such committee shall act in concert with, or
 
22 solicit or make contributions on behalf of, any other committee.
 

 
 
 
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 1      (j)  [No contributions may be made to a noncandidate
 
 2 committee from a corporation or other organization unless the
 
 3 noncandidate committee has been in existence continuously, as
 
 4 shown on the records of the campaign spending commission, for at
 
 5 least twelve months prior to the next primary election.
 
 6      (k)]  No contributions or expenditures shall be made to or
 
 7 on behalf of a candidate or committee by a foreign national or
 
 8 foreign corporation, including a domestic subsidiary of a foreign
 
 9 corporation, a domestic corporation that is owned by a foreign
 
10 national, or a local subsidiary where administrative control is
 
11 retained by the foreign corporation, and in the same manner
 
12 prohibited under 2 United States Code section 441e and 11 Code of
 
13 Federal Regulations 110.4(a) and 110.9(a), as amended.  No
 
14 foreign-owned domestic corporation shall make contributions
 
15 where:
 
16      (1)  Foreign national individuals participate in election-
 
17           related activities such as decisions concerning the
 
18           making of contributions or the administration of a
 
19           political committee; or
 
20      (2)  The contribution funds are not domestically-derived.
 
21      [(l)] (k)  No person or any other entity shall make
 
22 contributions to a political party in an aggregate amount greater
 
23 than $50,000 in any two-year election period.
 

 
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 1      (l)  Except for subsection (j), this section shall not apply
 
 2 to ballot issue committees."
 
 3      SECTION 7.  Section 11-207, Hawaii Revised Statutes, is
 
 4 amended by amending subsection (b) to read as follows:
 
 5      "(b)  No funds shall be withdrawn or paid from a campaign
 
 6 depository except upon the written authorization of the campaign
 
 7 treasurer[.] or deputy treasurer."
 
 8      SECTION 8.  Section 11-212, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "11-212  Preliminary reports.(a)  [Each candidate,
 
11 authorized person in the case of a party, or campaign treasurer
 
12 in the case of a candidate committee,] The candidate committee of
 
13 each candidate whose name will appear on the ballot in the
 
14 immediately succeeding election shall file a preliminary report
 
15 with the commission or appropriate county clerk's office[,].
 
16 Preliminary reports shall be filed on forms provided by the
 
17 commission no later than 4:30 p.m. on the [twenty-fifth and
 
18 tenth] following dates:
 
19      (1)  July thirtieth of the year of the primary election;
 
20      (2)  Ten calendar [day] days prior to each primary and
 
21           initial special election[,]; and [the tenth]
 
22      (3)  Ten calendar [day] days prior to a special or general
 
23           election.
 

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

 
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 1 primary election and the tenth calendar day prior to a special or
 
 2 general election.  Each report shall be certified pursuant to
 
 3 section 11-195 and shall contain the following information, which
 
 4 shall be current through the fifth calendar day prior to the
 
 5 filing of a preliminary report:
 
 6      (1)  The aggregate sum of all contributions and other
 
 7           campaign receipts received;
 
 8      (2)  The amount and date of deposit of the contribution and
 
 9           the name, address, employer, and occupation of each
 
10           donor who contributes an aggregate of $100 or more
 
11           during an election period, which has not previously
 
12           been reported;
 
13      (3)  The amount and date of each disbursement or
 
14           contribution made to a candidate, party, organization,
 
15           or committee, including the name and address of each
 
16           payee, which has not previously been reported;
 
17      (4)  The amount and date of each expenditure made or
 
18           incurred by the committee for or against any candidate,
 
19           ballot issue, or on behalf of another committee, which
 
20           has not previously been reported; and
 
21      (5)  A current statement of the balance on hand.
 
22      (c)  A candidate, party, or committee whose aggregate
 
23 contributions [or] and expenditures for the reporting period each
 

 
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 1 total $2,000 or less may file a short form report with the
 
 2 commission or appropriate county clerk's office in lieu of the
 
 3 reports required by this section and section 11-213.
 
 4      (d)  Notwithstanding this section and section 11-213, a
 
 5 candidate, party, or committee whose aggregate contributions or
 
 6 expenditures for the election period total $1,000 or less need
 
 7 not file a preliminary and final primary report, a preliminary
 
 8 and final general report, or a special election report, but shall
 
 9 file only a final election period report."
 
10      SECTION 9.  Section 11-213, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "11-213  Final and supplemental reports.(a)  Primary and
 
13 initial special election.  Each candidate whether or not
 
14 successful in a primary or initial special election, authorized
 
15 person in the case of a party, or campaign treasurer in the case
 
16 of a committee, shall file a final primary report certified
 
17 pursuant to section 11-195 with the commission on forms provided
 
18 by the commission no later than 4:30 p.m. on the twentieth
 
19 calendar day after a primary or initial special election.  The
 
20 report shall include the following information which shall be
 
21 current through the day of the primary election:
 
22      (1)  A statement of the total contributions and campaign
 
23           receipts received;
 

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

 
 
 
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 1      (2)  The amount and date of deposit of each contribution and
 
 2           the name, address, employer, and occupation of each
 
 3           donor who contributes an aggregate of more than $100
 
 4           during an election, which has not previously been
 
 5           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)  General, special general, special election or election
 
16 period.  Each candidate, authorized person in the case of a
 
17 party, or campaign treasurer in the case of a committee shall
 
18 file a final election period general report with the commission
 
19 on forms provided by the commission no later than 4:30 p.m. on
 
20 the thirtieth calendar day after a general, special general, or
 
21 special election.  The final election period report shall be
 
22 certified pursuant to section 11-195, shall report all items
 
23 prescribed in subsection (a) or (b) for noncandidate committees,
 
24 and shall be current through the day of the general election.  A
 

 
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 1 candidate who is unsuccessful in a primary or special primary
 
 2 election shall file a final election period report.
 
 3      (d)  Termination.  A candidate, party, or committee may
 
 4 terminate registration with the commission with no surplus or no
 
 5 deficit.  A termination report approved by the commission shall
 
 6 include information on the disposition of any funds, which has
 
 7 not previously been reported.
 
 8      (e)  Deficit.  In the event of a deficit the candidate,
 
 9 authorized person in the case of a party, or campaign treasurer
 
10 in the case of a committee shall, every six months until the
 
11 deficit is eliminated, file supplemental reports covering all
 
12 items prescribed in subsection (a) or subsection (b) in the case
 
13 of noncandidate committees.  The first report shall be due no
 
14 later than 4:30 p.m. on the thirtieth day after the last day of
 
15 the election year.
 
16      (f)  Surplus.  In the event of a surplus the candidate,
 
17 authorized person in the case of a party, or campaign treasurer
 
18 in the case of a committee, shall:
 
19      (1)  Maintain the cash surplus in a financial depository;
 
20           and
 
21      (2)  Every six months, until the candidate files to be on
 
22           the ballot with the state office of elections, or in
 
23           the case of a party or committee until they participate
 

 
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 1           in an election again, file supplemental reports
 
 2           detailing all items prescribed in subsection (a) or in
 
 3           the case of a noncandidate committee until they
 
 4           participate in an election again, or file supplemental
 
 5           reports detailing all items prescribed in subsection
 
 6           (b).
 
 7      The first report shall be due not later than 4:30 p.m. on
 
 8 the thirtieth calendar day after the last day of the election
 
 9 year.
 
10      [(g)  Short form reporting.  A candidate, party, or
 
11 committee who receives no contributions, makes no expenditures,
 
12 and has a deficit or surplus of $2,000 or less in any prescribed
 
13 reporting period shall nevertheless file preliminary, final, and
 
14 supplemental reports on the respective dates pursuant to this
 
15 subpart.  The reports may be filed on a short form as provided by
 
16 the commission.
 
17      (h)] (g)  All supplemental reports required by this section
 
18 shall be filed until a candidate files to be on the ballot with
 
19 the state elections office.  Each party or noncandidate committee
 
20 shall file a supplemental report for the respective reporting
 
21 period during a nonelection year.  In an election year, each
 
22 party and noncandidate committee shall file reports as prescribed
 

 
 
 
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 1 in this section and section 11-212 for the primary and general
 
 2 election."
 
 3      SECTION 10.  Section 11-215, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "11-215  Advertising.(a)  [To the extent authorized by
 
 6 law, all] All advertisements [authorized by a candidate or a
 
 7 candidate's committee] shall contain the name and address of the
 
 8 candidate, committee, or party paying for the advertisement.  If
 
 9 an advertisement is not authorized by a candidate or a
 
10 candidate's committee, the advertisement shall contain the name
 
11 and address of the person paying for the advertisement.
 
12      (b)  In addition to subsection (a), [and to the extent
 
13 authorized by law,] no [person] candidate or committee shall
 
14 cause or submit any advertisement in support of a candidate [or],
 
15 against a candidate's opponent, or with regard to a ballot issue
 
16 to be published, broadcast, televised, or otherwise circulated
 
17 and distributed except under the following conditions:
 
18      (1)  The advertisement shall contain a notice in a prominent
 
19           location that the literature or advertisement is
 
20           published, broadcast, televised, or circulated with the
 
21           approval and authority of the candidate, provided that
 
22           in the event that the literature or advertisement is
 
23           paid for by a candidate [or], committee directly
 
24           associated with a candidate, or ballot issue committee,
 

 
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 1           the notice of approval and authority need not be
 
 2           included; or
 
 3      (2)  The advertisement shall contain a notice in a prominent
 
 4           location that the literature or advertisement is
 
 5           published, broadcast, televised, or circulated without
 
 6           the approval and authority of the candidate.
 
 7      (c)  The penalty for violating this section shall be a fine
 
 8 not to exceed $25 for each advertisement that lacks the required
 
 9 disclaimer and no more than $5,000 aggregate."
 
10      SECTION 11.  Section 11-228, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "11-228  Administrative fines; relief.(a)  In the
 
13 performance of its required duties, the commission may render a
 
14 decision or issue an order affecting any person violating any
 
15 provision of this subpart [other than in sections 11-193(a)(5)
 
16 and 11-215,] that shall provide for the assessment of an
 
17 administrative fine in the manner prescribed as follows:
 
18      (1)  If a natural person, an amount not to exceed $1,000 for
 
19           each occurrence or an amount equivalent to three times
 
20           the amount of an unlawful contribution or expenditure,
 
21           whichever is greater; or
 
22      (2)  If a corporation, organization, association, or labor
 
23           union, it shall be punished by a fine not exceeding
 

 
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 1           $1,000 for each occurrence; and
 
 2      (3)  Whenever a corporation, organization, association, or
 
 3           labor union violates this subpart, the violation shall
 
 4           be deemed to be also that of the individual directors,
 
 5           officers, or agents of the corporation, organization,
 
 6           association, or labor union, who have knowingly
 
 7           authorized, ordered, or done any of the acts
 
 8           constituting the violation.
 
 9      (b)  Any order for the assessment of an administrative fine
 
10 may not be issued against a person without providing the person
 
11 written notice and an opportunity to be heard at a hearing
 
12 conducted under chapter 91.  A person may waive these rights by
 
13 written stipulation or consent.  If an administrative fine is
 
14 imposed upon a candidate, the commission may order that the fine,
 
15 or any portion, be paid from the candidate's personal funds.
 
16      (c)  If an order issued by the commission is not complied
 
17 with by the person to whom it is directed, the first circuit
 
18 court, upon application of the commission, shall issue an order
 
19 requiring the person to comply with the commission's order.
 
20 Failure to obey such a court order shall be punished as contempt.
 
21      (d)  Any administrative fine collected by the commission
 
22 shall be deposited in the Hawaii election campaign fund.
 

 
 
 
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 1      (e)  Any person or the commission may sue for injunctive
 
 2 relief to compel compliance with this subpart.
 
 3      (f)  The provisions of this section shall not be construed
 
 4 to prohibit prosecution under any appropriate provision of the
 
 5 Hawaii Penal Code or section 11-229.
 
 6      (g)  The provisions of this section shall not apply to any
 
 7 person who, prior to the commencement of proceedings under this
 
 8 section, has paid or agreed to pay the penalties prescribed by
 
 9 sections 11-193(a)(5) and 11-215(b)(3)."
 
10      SECTION 12.  Section 11-229, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "11-229  Criminal prosecution.(a)  Any [individual]
 
13 person who knowingly, intentionally, or recklessly violates any
 
14 provision of this subpart[, other than sections 11-193(a)(5) and
 
15 11-215,] shall be guilty of a misdemeanor.  A person who is
 
16 convicted under this section shall be disqualified from holding
 
17 elective public office for a period of four years from the date
 
18 of conviction.
 
19      (b)  For purposes of prosecution for violation of this
 
20 subpart, the offices of the attorney general and the prosecuting
 
21 attorney of the respective counties shall be deemed to have
 
22 concurrent jurisdiction to be exercised as follows:
 
23      (1)  Prosecution shall commence with a written request from
 
24           the commission or upon the issuance of an order of the
 

 
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 1           court; provided that prosecution may commence prior to
 
 2           any proceeding initiated by the commission or final
 
 3           determination;
 
 4      (2)  In the case of state offices, parties, or issues, the
 
 5           attorney general or the prosecuting attorney for the
 
 6           city and county of Honolulu shall prosecute any
 
 7           violation; and
 
 8      (3)  In the case of all other offices, parties, or issues,
 
 9           the attorney general or the prosecuting attorney for
 
10           the respective county shall prosecute any violation.
 
11      In the commission's choice of prosecuting agency, it shall
 
12 be guided by whether there will be any conflicting interest
 
13 between the agency and its appointive authority.
 
14      (c)  The court shall give priority to the expeditious
 
15 processing of suits under this section.
 
16      (d)  Prosecution for violation of any provision of this
 
17 subpart shall not be commenced after five years have elapsed from
 
18 the date of the violation or date of filing of the report
 
19 covering the period in which the violation occurred, whichever is
 
20 later.
 
21      (e)  The provisions of this section shall not apply to any
 
22 person who, prior to the commencement of proceedings under this
 

 
 
 
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 1 section, has paid or agreed to pay the penalties prescribed by
 
 2 sections 11-193(a)(5) and 11-215(b)(3)."
 
 3      SECTION 13.  Act 27, Special Session Laws of Hawaii 1995, as
 
 4 amended by Act 13, Session Laws of Hawaii 1996, is amended by
 
 5 amending section 15 to read as follows:
 
 6      "SECTION 15.  This Act shall take effect on July 1, 1995[;]
 
 7 provided that [on]:
 
 8      (1)  On June 30, 1999, this Act shall be repealed and
 
 9           sections 11-1, 11-2, 11-5, 11-191, 11-194, 11-195,
 
10           11-216, 12-8, and 26-1, Hawaii Revised Statutes, shall
 
11           be reenacted in the form in which they read on the day
 
12           before the effective date of this Act[.]; and
 
13      (2)  The amendments made by this S.B. No. 628, Session Laws
 
14           of Hawaii 1999, shall not be repealed when the
 
15           provisions in paragraph (1) are reenacted."
 
16      SECTION 14.  Statutory material to be repealed is bracketed.
 
17 New statutory material is underscored.
 
18      SECTION 15.  In printing this Act, the revisor of statutes
 
19 shall substitute in section 12, the number of this Act for the
 
20 bill identified therein.
 
21      SECTION 16.  This Act shall take effect on June 29, 1999.