Campaign Contributions; Reports

Adds to campaign spending law, new section regarding reports for
late contributions. (SD 1)

THE SENATE                              S.B. NO.           630
TWENTIETH LEGISLATURE, 1999                                S.D. 1
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Chapter 11, Hawaii Revised Statutes, is amended
 2 by adding a new section to be appropriately designated and to
 3 read as follows:
 4      "11-    Late contributions; reports.  (a)  Each candidate
 5 committee or committee that makes or receives a contribution of
 6 more than $500 within fifteen days of a primary, special primary,
 7 general or special general election shall report the late
 8 contribution to the commission.
 9      (b)  The report shall include the name, address, occupation
10 and employer of the contributor, the name of the candidate or
11 noncandidate committee receiving the contribution, the amount of
12 the contribution, the contributor's aggregate contributions to
13 the candidate or noncandidate committee, and the purpose, if any,
14 to which the contribution will be applied.
15      (c)  A late contribution shall be reported by facsimile
16 transmission, guaranteed overnight mail, or personal delivery
17 within twenty-four hours of the time it is made or received.  A
18 late contribution shall be reported on subsequent required
19 reports without regard to reports filed pursuant to this section.
20      (d)  A late contribution need not be reported pursuant to

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 1 this section if it is returned to the contributor within twenty-
 2 four hours of its receipt.
 3      (e)  A report filed pursuant to this section shall be in
 4 addition to any other campaign report required to be filed by
 5 this subpart.
 6      SECTION 2.  Section 11-195, Hawaii Revised Statutes, is
 7 amended by amending subsection (f) to read as follows:
 8      "(f)  For purposes of this subpart, whenever a report is
 9 required to be filed with the commission, "filed" means received
10 in the office of the commission or county clerk, whichever is
11 applicable, and filed by electronic means in a manner prescribed
12 by the commission, by the date and time specified for the filing
13 of the report[; except that a candidate or the committee of a
14 candidate who is seeking election to the office of:
15      (1)  Governor;
16      (2)  Lieutenant governor;
17      (3)  Mayor;
18      (4)  Prosecuting attorney; or
19      (5)  County council;
20 shall file by electronic means in the manner prescribed by the
21 commission.  Candidates for the offices named in this
22 subsection]; provided that candidate committees and committees
23 with contributions [or] and expenditures of less than $5,000 for

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

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

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

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

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 1 in any two-year election period.
 2      (m)  No person, other than a political party, shall make
 3 contributions aggregating more than $25,000 in any calendar year.
 4 For the purposes of this subsection, any contribution made to a
 5 candidate in a year other than the calendar year in which the
 6 election is held with respect to which such contribution is made,
 7 is considered to be made during the calendar year in which such
 8 election is held."
 9      SECTION 4.  Act 27, Special Session Laws of Hawaii 1995, as
10 amended by Act 13, Session Laws of Hawaii 1996, is amended by
11 amending section 15 to read as follows:
12      "SECTION 15.  This Act shall take effect on July 1, 1995;
13 provided that [on]:
14      (1)  On June 30, 1999, this Act shall be repealed and
15           sections 11-1, 11-2, 11-5, 11-191, 11-194, 11-195,
16           11-216, 12-8, and 26-1, Hawaii Revised Statutes, shall
17           be reenacted in the form in which they read on the day
18           before the effective date of this Act[.]; and
19      (2)  The amendments made by this S.B. No.      , Session
20           Laws of Hawaii 1999, shall not be repealed when the
21           provisions in paragraph (1) are reenacted."
22      SECTION 5.  In codifying the new sections added by section
23 1, and referred to in section 1 of this Act, the revisor of

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 1 statutes shall substitute appropriate section numbers for the
 2 letters used in designating the new sections in this Act.
 3      SECTION 6.  Statutory material to be repealed is bracketed.
 4 New statutory material is underscored.
 5      SECTION 7.  In printing this Act, the revisor of statutes
 6 shall substitute in section 4, the number of this Act for the
 7 bill identified therein.
 8      SECTION 8.  This Act shall take effect on June 29, 1999;
 9 provided that section 2 of this Act shall take effect on June 29,
10 1999, and is applicable only to those candidates who will appear
11 on the ballot in the year 2004 and then to all candidates and
12 committees in subsequent election periods.