Report Title:

Public Funding for State Legislature Offices Elections Act

Description:

Amends campaign spending laws to provide alternative public funding for candidates seeking office in the Legislature of the State of Hawaii who voluntarily abide by certain contribution and expenditure limits. Appropriates $1 to the campaign spending commission for additional publicly funded support staff. (HB1547 HD2)

HOUSE OF REPRESENTATIVES

H.B. NO.

1547

TWENTY-SECOND LEGISLATURE, 2003

H.D. 2

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

Relating to elections.

 

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

SECTION 1. The purpose of this Act (also referred to as the "Clean Elections Act") is to provide public funding for candidates seeking office in the state legislature who voluntarily agree to abide by campaign contribution and expenditure limits, and meet other criteria set forth in the Act.

SECTION 2. Chapter 11, Hawaii Revised Statutes, is amended by adding a new subpart C to part XII to read as follows:

"C. Public Funding For State Legislature Offices Elections

§11-A Purpose. The purpose of this subpart is to provide an alternative public funding program for candidates seeking election to state senator and state representative offices who voluntarily agree to abide by campaign contribution and expenditure limits and meet other criteria herein. The provisions of this subpart shall become operative for a primary election campaign period and a general election campaign period when there is a minimum of $3,000,000 in the Hawaii election campaign fund on September 1 of an odd-numbered year and the campaign spending commission determines pursuant to section 11-C that sufficient funds exist for public funding under this subpart.

§11-B Definitions. As used in this subpart, unless the context clearly requires otherwise:

"Candidate" or "candidate for the legislature" means an individual who seeks nomination for election to the senate or house of representatives of the legislature of the State and meets the criteria of a candidate as defined in section 11-191, and includes any candidate who receives public funding under this subpart.

"Candidate's committee" shall be as defined in section 11-191.

"Commission" shall be as defined in section 11-191.

"Committee" shall be as defined in section 11-191.

"Contribution" shall be as defined in section 11-191.

"Election period" shall be as defined in section 11-191.

"Excess expenditure" means the amount of money spent or obligated to be spent by a publicly-funded candidate in excess of one hundred per cent of the public funding the publicly-funded candidate is allocated.

"Expenditure" shall be as defined in section 11-191.

"General election campaign period" means the period beginning the day after the primary election and ending two weeks after a general election.

"Hawaii election campaign fund" shall be as defined in section 11-217.

"Immediate family" shall be as defined in section 11-191.

"Individual" shall be as defined in section 11-191.

"Legislature" means the senate and the house of representatives of the State of Hawaii.

"Loan" shall be as defined in section 11-191.

"Noncandidate committee" shall be as defined in section 11-191.

"Nonmonetary contribution" means a contribution other than of money that may include goods or services.

"Office" shall be as defined in section 11-191.

"Party" shall be as defined in section 11-191.

"Person" shall be as defined in section 11-191.

"Petty cash expenditure" means a single item expense of not more than $25 paid in cash.

"Primary election campaign period" means the period beginning January 1 in the year of the primary election and ending two weeks after the primary election.

"Private contribution" shall be as defined in section 11-191.

"Privately-funded candidate" means any candidate that does not qualify for and receive public funding during an election period.

"Public funding" or "public funds" means campaign funds from the Hawaii election campaign fund.

"Publicly-funded candidate" means a candidate who is certified by the commission as qualifying for public funding under this subpart during a primary or general election campaign period, and agrees to abide by the public funding rules, qualifying contribution, and expenditure limitations.

"Qualifying contribution" means a $3 contribution made to a candidate during the qualifying period by a contributor who meets the criteria of section 11-G, that is included within the total number of contributions required to qualify for public funding under this subpart.

"Qualifying period" means the period beginning January 1 and ending on the deadline for filing candidate nomination papers to run in the primary election of a general election year during which a candidate may collect qualifying contributions to qualify for public funding under this subpart; provided the commission determines that the Hawaii election campaign fund has sufficient funds to make payments to publicly-funded candidates during the election period.

"Seed money" means contributions made leading up to and during the qualifying period that may be expended solely for determining campaign viability purposes.

"Surplus campaign funds" means private contributions given to a candidate that were not spent during the election period for which the contributions were made, regardless of whether the candidate agreed to the voluntary campaign expenditure limit pursuant to section 11-206.

Except for terms that are specifically defined in this subpart, terms that are defined under part XII, subpart B, of this chapter shall apply to this subpart.

§11-C Sufficiency of funding for public funding for state legislature offices elections. On September 1 of each odd-numbered year before a general election year, the commission shall determine:

(1) The amount of funding required to finance the public funding of one candidate for each contest in the legislature for the next general election year; and

(2) Whether there are sufficient funds in the Hawaii election campaign fund to finance the public funding of one candidate for each contest in the legislature. If there is sufficient funding, then the provisions of this subpart shall become operative for the next election period in which the primary election is at least six months away. If there is not sufficient funding, then the provisions of this subpart shall be inoperative until September 1 of the next odd-numbered year.

If the provisions of this subpart are inoperative, then candidates seeking election to office may seek public funding under the matching program under part XII, subpart B, of this chapter.

§11-D Qualifications for public funding. (a) A candidate may seek public funding for the primary election campaign period if the candidate:

(1) Resides in the district from which election is sought as of the filing of nomination papers for the primary election in the general election year in which the candidate seeks to be elected;

(2) Is a registered voter in the district from which election is sought;

(3) Files a declaration of intent to seek public funding with the commission that states the office and district in which the candidate intends to seek election;

(4) Collects $3 qualifying contributions before the close of the qualifying period from at least one and one-half per cent of the number of registered voters in the candidate's district during the previous regular general election; and

(5) Accepts only the following contributions during the qualifying period of the general election year in which the candidate seeks election:

(A) Seed money contributions; and

(B) Qualifying contributions;

and

(6) Files the appropriate application for certification with the commission.

(b) A candidate is qualified to seek public funding for the general election campaign period if the candidate:

(1) Was certified as a publicly-funded candidate during the primary election campaign period; and

(2) Received a sufficient number of votes to appear on the ballot in the general election or did not have a contested primary election.

§11-E Seed money contributions; limitations on use of seed money; penalties. (a) Seed money shall be limited to expenditures necessary to determine whether sufficient support exists to run for office, and may be used to purchase office supplies, rent equipment, send a mailing to district residents, and hold gatherings with district residents. Seed money shall not be spent for any salaries, rental of premises, or to pay any person to solicit or collect qualifying contributions.

(b) A candidate seeking to become eligible for public funding shall not retain and expend more than $3,000 in seed money.

(c) Any single person shall not contribute more than $250 in seed money, including in-kind contributions.

(d) A candidate may use personal funds or surplus campaign funds for seed money purposes, not to exceed the $3,000 limit in seed money.

(e) Seed money shall be spent only prior to and during the qualifying period, and shall not be collected or spent after the candidate is certified by the commission as a publicly-funded candidate.

(f) A candidate shall not accept seed money unless the candidate obtains the following information in writing from each contributor and issues a receipt to the contributor confirming the information:

(1) Signature;

(2) Printed name;

(3) Home address;

(4) Zip code;

(5) Telephone number; and

(6) Contribution amount or value.

(g) Within forty-eight hours after certification as a qualified candidate or the close of the qualifying period, whichever occurs first, candidates seeking public funding shall:

(1) Fully disclose all seed money contributions and expenditures to the commission; and

(2) Return to the commission for deposit in the Hawaii election campaign fund any seed money the candidate has collected that exceeds the seed money expenditure limit.

(h) No candidate shall accept seed money from a contributor who makes the contribution under the name of another person. Any candidate who knowingly violates this subsection shall be fined five times the amount of the contribution, in addition to any other penalties that may be assessed by the commission. All penalties collected under this subsection shall be deposited in the Hawaii election campaign fund.

§11-F Restriction on use of surplus campaign funds. A candidate who has surplus campaign funds from a previous election is prohibited from using such funds upon filing the declaration of intent to seek public funding under this subpart. The surplus campaign funds shall be frozen and maintained in a separate depository account from that established for the public funds under section 11-G. The candidate shall continue to file reports on the surplus campaign funds in accordance with part XII, subpart B, of this chapter, or as may be required by the commission.

§11-G Qualifying contributions. (a) Each qualifying contribution shall meet the requirements of this section. To be counted as a qualifying contribution:

(1) Any contributor shall be a registered voter who resides within the candidate's district at the time the contribution is given; and

(2) A contribution shall be:

(A) In the amount of $3;

(B) Made in cash, or by check or money order;

(C) Acknowledged by a receipt meeting the requirements in subsections (c) and (d); and

(D) Collected by the candidates themselves, or by volunteers who receive no compensation.

(b) No qualifying contributions shall be collected prior to a candidate's filing of a declaration of intent to seek certification as a publicly-funded candidate with the commission.

(c) Any receipt for a qualifying contribution shall indicate, by the contributor's signature, that the contributor understands that the purpose of the contribution is to help the candidate qualify for public funding. The receipt shall include:

(1) The contributor's signature, printed name, home address, zip code, and telephone number;

(2) The name of the candidate on whose behalf the contribution is made; and

(3) An affirmation by the contributor that the contributor received nothing of value for the signature and the contribution.

(d) The original receipt shall be given to the contributor. A copy shall be retained by the candidate, and a copy shall be submitted to the commission according to a schedule and procedure to be determined by the commission. A contribution submitted as a qualifying contribution that does not include a signed and completed receipt shall not be counted as a qualifying contribution.

(e) No candidate seeking to qualify as a publicly-funded candidate shall accept money made by the contributor in the name of another, who is not the person identified on the receipt. Knowing violation of this subsection shall disqualify the candidate from public funding for that election period and may subject the candidate to other fines and prosecution pursuant to section 11-228 and 11-229.

(f) A candidate's qualifying contributions shall be deposited in an escrow account maintained by the commission until the commission determines that the candidate has fulfilled the requirements for public funding and may be certified as a publicly-funded candidate. Upon certification, the candidate's qualifying contributions shall be deposited into the Hawaii election campaign fund.

(g) Qualifying contributions collected by candidates who do not receive certification for public funding may be returned to the contributors or deposited into the Hawaii election campaign fund.

§11-H Certification of qualification for public funds. (a) Candidates seeking certification as a publicly-funded candidate shall submit to the commission an application for certification, signed by the candidate and the candidate's campaign treasurer under penalty of perjury, which shall include:

(1) An affidavit from the office of elections certifying that the candidate's qualifying contributors:

(A) Are registered voters from the candidate's district; or

(B) Were registered voters in the candidate's district at the time the qualifying contributions were made;

and

(2) An authenticated and alphabetized list of all qualifying contributions and contributors and copies of receipts given to contributors.

The application form shall be prescribed by the commission.

(b) The commission shall issue a decision to certify or deny certification of a candidate as a publicly-funded candidate within three business days following receipt of the candidate's completed application; provided that the time to issue a decision may be extended by the commission to five business days if the application is filed within a week of the close of the qualifying period.

(c) The number of publicly-funded candidates certified by the commission initially shall be limited to three persons in each district, on a first-come, first-served basis, based on date of application. When sufficient funding exists, more candidates shall be allowed.

(d) Candidates who are not certified for public funding under this subpart may seek public funding under the matching public funding program.

(e) Certification may be revoked if a publicly-funded candidate violates the applicable requirements of this subpart. Upon revocation of certification, the candidate shall repay all public funds within ten business days. A candidate who wilfully or knowingly violates the qualifying and expenditure requirements of this subpart may be subject to fines or criminal prosecution pursuant to sections 11-228 and 11-229.

§11-I Publicly-funded candidates; contributions and expenditures. A candidate who has been certified as eligible for public funding shall comply with the following restrictions on contributions and expenditures:

(1) Upon certification for public funding and until the end of the general election campaign period, a publicly-funded candidate shall not accept:

(A) Private contributions from any source, except the candidate may accept in-kind contributions aggregating less than $100 from any one source; and

(B) Loans from any source;

(2) Upon certification for public funding and until the end of the general election period, a publicly-funded candidate shall not expend:

(A) Seed money contributions;

(B) Any petty cash expenditures in excess of $100 in any period of seven consecutive calendar days;

(C) Public funds for purposes other than those permitted in this subpart;

(D) Public funds outside the applicable campaign period for which the funding is allocated, except for proper campaign debts incurred but not paid; and

(E) Public funds in excess of the public funds allocated to the candidate, or incur an obligation or obligations to spend public funds in excess of this amount;

(3) Publicly -funded candidates may not accept any monetary or nonmonetary contributions from political parties; and

(4) Publicly-funded candidates, once elected, may not accept private contributions or contributions from political parties prior to September 1 of the odd-numbered year before the year that the candidate next seeks election or when the commission determines there are insufficient funds under section 11-C, whichever occurs later. This subsection does not prohibit seed money contributions.

§11-J Publicly-funded candidates; reporting. (a) Publicly-funded candidate shall furnish complete campaign records, including all records of non monetary contributions, seed money contributions, qualifying contributions, and expenditures to the commission. Publicly-funded candidates shall fully cooperate with any audit or examination by the commission.

(b) Publicly-funded candidates shall comply with the reporting requirements of part XII, subpart B, of this chapter, in addition to those required under this subpart. Candidates shall also include petty cash expenditures in any expenditure report required under part XII, subpart B, of this chapter.

§11-K Publicly-funded candidates; continuing obligation. A publicly-funded candidate who accepts any public funds during the primary election campaign period shall comply with all requirements applicable to a publicly-funded candidate under this subpart. This obligation shall continue through the general election campaign period regardless of whether that person continues to accept or maintains eligibility for public funds.

§11-L Publicly funded; disbursements. (a) A candidate certified as a publicly-funded candidate for the primary election is authorized to expend public funding for the primary election on the date that certification is issued by the commission; provided that the candidate has filed the appropriate nomination papers to run for office. A candidate certified as a publicly-funded candidate for a general election is authorized to expend public funds for the general election on the date that certification is issued by the commission.

(b) The amount of public funding for a certified publicly-funded candidate shall be set at the voluntary expenditure limit for a state senator and state representative pursuant to section 11-209. This amount shall be allotted to the candidate for each contested primary and general election. If the candidate does not have a contested primary, the amount shall be allotted to the candidate for only one election.

(c) Funds not spent in the primary election may be used in the general election by the successful primary candidate. Money not spent or encumbered by a publicly-funded candidate at the end of the election period shall be returned to the Hawaii election campaign fund.

§11-M Independent expenditures. (a) For purposes of qualifying for and remaining eligible to receive public funding, independent expenditures shall not be considered a contribution to the candidate.

(b) As used in this subsection:

"Communication that expressly advocates" means a communication that contains phrases such as "vote for", "re-elect", "support", "(name of candidate) for (name of office)", "defeat", "reject", or contains campaign slogans or individual words that in context can have no reasonable meaning other than to recommend the election or defeat of one or more clearly identifiable candidates, such as posters, bumper stickers, or advertisements in any media that use a candidate's name in a promotional manner. The following communications are not included: news stories, commentaries, editorials published by any form of media provided that the publisher is not owned or affiliated with the candidate or candidate's committee, newsletters, or communications whose circulation is limited to an organization's members, employees, shareholders, or affiliated individuals, and those who request or purchase the internal publication.

"Independent expenditure" means a cost incurred by a person or noncandidate committee other than a candidate or candidate's committee for a communication that expressly advocates for the election or defeat of a candidate and is made without the participation, cooperation, or coordination of a candidate or candidate's committee that is disseminated during thirty calendar days before a primary election or sixty days before a general election.

§11-N Distribution from election campaign fund. The commission shall expend up to $           in funds from the Hawaii election campaign fund for the purposes of this subpart to distribute to candidates who qualify under this subpart.

§11-O Penalty for excess expenditures. A publicly-funded candidate shall not spend or incur an obligation to spend more than one hundred per cent of the public funds that have been allocated to the candidate. If a publicly-funded candidate spends or incurs an obligation to spend more than one hundred per cent of the public funds allocated, the candidate shall repay the Hawaii elections campaign fund an amount equal to three times the excess expenditure.

§11-P Public funding; permitted uses. (a) Public funds shall be used only for the purpose of defraying expenses that are directly related to the candidate's campaign during the election campaign period for which the public funds are allocated, including:

(1) The purchase and development of campaign literature and campaign signs;

(2) The development and purchase of media space and time;

(3) Mailings;

(4) Telephones and telecommunications;

(5) General office supplies;

(6) Rental of campaign equipment;

(7) Utility costs associated with the campaign; and

(8) Campaign headquarters rental, salaries, and independent contractors, that in the aggregate do not exceed twenty per cent of the allocated public funds.

(b) Expenditures shall not be made:

(1) In violation of any law;

(2) To pay any personal, family, or business expenses, loans, or debts;

(3) For any noncampaign-related expenses, or for indirect campaign-related expenses; or

(4) To immediate family members, except as reimbursement for proper expenses incurred under this section.

§11-Q Deposit of public funds. (a) All public funds received by publicly-funded candidates shall be deposited directly into a depository institution as provided under section 11-199(a).

(b) All reports required under part XII, subpart B, of this chapter, and this subpart for financial disclosure shall include the most recent bank statement from the financial depository holding the public funds.

§11-R Deposit of moneys into the Hawaii election campaign fund. In addition to the funds collected by the commission and pursuant to section 11-217, the following moneys shall be deposited into the Hawaii election campaign fund:

(1) Excess seed money contributions;

(2) Qualifying contributions, including any excess qualifying contributions of certified candidates;

(3) Unspent public funds distributed to any candidate who does not remain a candidate until the election for which they were distributed, or such funds that remain unspent by a candidate following the date of the election for which they were distributed;

(4) Fines levied by the commission against candidates for violation of election laws; and

(5) Voluntary donations.

§11-S Rules. The commission shall adopt rules pursuant to chapter 91 as may be necessary to implement this subpart."

SECTION 3. Section 11-191, Hawaii Revised Statutes, is amended by amending the definition of "qualifying contribution" to read as follows:

"Qualifying campaign contribution" means an aggregate monetary contribution of $100 or less, by any person during any matching payment period [.] for purposes of entitlement to payments under the matching public funding program pursuant to section 11-221. Qualifying contributions do not include loans or in-kind contributions.

SECTION 4. Section 11-217, Hawaii Revised Statutes, is amended to read as follows:

"§11-217 Hawaii election campaign fund; creation. The Hawaii election campaign fund is created as a trust fund within the state treasury. The fund shall consist of all moneys collected from persons who have designated a portion of their income tax liability to the fund as provided in section 235-102.5, any general fund revenues appropriated, as well as all other moneys collected pursuant to [this subpart.] subparts B and C. The Hawaii election campaign fund shall fund eligible candidates pursuant to the provisions of subpart B, commencing with section 11-218 referred to as the "matching public funding" program and subpart C, commencing with section 11-N referred to as the "public funding for state legislature offices elections". Payment to [each candidate] eligible candidates from the fund shall be by the comptroller [in the manner prescribed in section 11-222]. Moneys from this fund may also be used for the operating expenses of the commission, including staff salaries and fringe benefits."

SECTION 5. Section 11-218, Hawaii Revised Statutes, is amended to read as follows:

"§11-218 [Candidate funding; amounts available.] Matching public funding program; maximum allowed. (a) Public funds from the Hawaii election campaign fund are available to fund eligible candidates under the matching public funding program for all candidates except candidates certified for public funding under the public funding for state legislature offices elections program.

[(a)] (b) The maximum amount of matching public funds available to a candidate for the office of governor, lieutenant governor, or mayor in any election shall not exceed ten per cent of the total expenditure limit for each election as established for each office listed in this subsection pursuant to section 11-209.

[(b)] (c) For the office of state senator, state representative, county council member, and prosecuting attorney, the maximum amount of matching public funds available to a candidate in any election shall be fifteen per cent of the total expenditure limit for each election as established for each office listed in this subsection pursuant to section 11-209.

[(c)] (d) For the board of education and all other offices, the maximum amount of matching public funds available to a candidate shall not exceed $100 in any election year.

[(d)] (e) Each candidate who qualified for the maximum amount of matching public funding in any primary or special primary election and who is a candidate for a subsequent general election shall apply with the commission to be qualified to receive the maximum amount of matching public funds as provided in this section for the respective election. For purposes of this section, "qualified" means meeting the qualifying campaign contribution requirements of section 11-219."

SECTION 6. Section 11-219, Hawaii Revised Statutes, is amended to read as follows:

"§11-219 Qualifying campaign contributions[;] for matching public funding program; amounts. As a condition of receiving matching public funds for a primary, special primary, or general election, a candidate shall not be unopposed in any election for which matching public funds are sought, and shall have filed an affidavit with the commission pursuant to section 11-208 to voluntarily limit the candidate's campaign expenditures and shall be in receipt of the following sum of qualifying campaign contributions for the candidate's respective office for each election:

(1) For the office of governor—qualifying contributions that in the aggregate, exceed $100,000;

(2) For the office of lieutenant governor—qualifying contributions that in the aggregate, exceed $50,000;

(3) For the office of mayor for each respective county:

(A) County of Honolulu—qualifying contributions that in the aggregate, exceed $50,000;

(B) County of Hawaii—qualifying contributions that in the aggregate, exceed $15,000;

(C) County of Maui—qualifying contributions that in the aggregate, exceed $10,000; and

(D) County of Kauai—qualifying contributions that in the aggregate, exceed $5,000; and

(4) For the office of prosecuting attorney for each respective county:

(A) County of Honolulu—qualifying contributions that in the aggregate, exceed $30,000;

(B) County of Hawaii—qualifying contributions that in the aggregate, exceed $10,000; and

(C) County of Kauai—qualifying contributions that in the aggregate, exceed $5,000;

(5) For the office of county council—for each respective county:

(A) County of Honolulu—qualifying contributions that in the aggregate, exceed $5,000;

(B) County of Hawaii—qualifying contributions that in the aggregate, exceed $1,500;

(C) County of Maui—qualifying contributions that in the aggregate, exceed $5,000; and

(D) County of Kauai—qualifying contributions that in the aggregate, exceed $3,000;

(6) For the office of state senator—qualifying contributions that, in the aggregate, exceed $2,500;

(7) For the office of state representative—qualifying contributions that, in the aggregate, exceed $1,500; and

(8) For all other offices, qualifying contributions that, in the aggregate, exceed $500."

SECTION 7. Section 11-220, Hawaii Revised Statutes, is amended to read as follows:

"§11-220 Eligibility for payments [.] under the matching public funding program. (a) To be eligible to receive [payments under section 11-217,] matching public funding from the Hawaii election campaign fund in accordance with section 11-221, a candidate shall in writing:

(1) Agree to obtain and furnish to the commission any evidence of the campaign expenses of such candidate which the commission may request;

(2) Agree to keep and furnish records, books, and other information which the commission may request; and

(3) Agree to an audit and examination by the commission under section 11-225 and to pay any amounts required to be paid pursuant to such section.

(b) To be eligible to receive [payments pursuant to section 11-217,] matching public funding from the Hawaii election campaign fund in accordance with section 11-221, a candidate shall certify to the commission that:

(1) Such candidate and all committees authorized by such candidate shall not incur campaign expenses in excess of the expenditure limitations imposed by section 11-209;

(2) Such candidate has qualified to be on the election ballot in a primary, special primary, or general election;

(3) Such candidate has filed a statement of intent to seek qualifying contributions. A contribution received before the filing of a statement of intent to seek public funds shall not be considered a qualifying contribution;

(4) Such candidate or committee authorized by such candidate has received the qualifying sum of private contributions for the office sought by the candidate as set forth in section 11-219;

(5) The aggregate of contributions certified with respect to any person under paragraph (4) does not exceed $100.

(c) Each candidate and all committees authorized by such candidate in receipt of qualifying campaign contributions which may be taken into account for purposes of matching public funding shall maintain, on a form prescribed by the commission, records [which] that show the date and amount of each such contribution and the full name and mailing address of the person making the contribution. The candidate and all committees authorized by the candidate shall transmit to the commission all reports with respect to such contributions which the commission may require.

(d) No candidate certified for public funding under part XII, subpart      shall be eligible for matching public funding under this subpart."

SECTION 8. Section 11-221, Hawaii Revised Statutes, is amended to read as follows:

"§11-221 Entitlement to [payments.] matching public funding. Every candidate who is eligible to receive matching public funds pursuant to section 11-220 is entitled to payments pursuant to section 11-217 in an amount equal to each qualifying contribution received by that candidate or candidate committee during the matching payment period involved. A qualifying contribution shall be attributed to a primary, special, or general election.

A candidate eligible to receive matching public funds must obtain a minimum amount of qualifying campaign contributions as set forth in section 11-219 in order to be entitled to receive any matching public funds in an election. For the purpose of this section, a candidate must have at least one other qualified candidate as an opponent for the primary, special, or general election to receive matching public funds for that election."

SECTION 9. Section 11-222, Hawaii Revised Statutes, is amended by amending subsections (a), (b), and (c) to read as follows:

"(a) Application forms for matching public funds shall be adopted by the commission and shall provide for a sworn statement by the candidate that the candidate has established eligibility under section 11-220 to receive payments under section 11-217. Each application shall be accompanied by a qualifying campaign contribution statement or statements, and shall be filed with the commission no later than thirty days after the general election. Upon approval by the commission of the application and qualifying contribution statement, the commission shall direct the comptroller to distribute matching public funds up to the maximum of the amount of public funds to which the candidate is entitled.

Public funds shall be distributed by the comptroller to each eligible candidate within twenty days from the date of the candidate's initial application with the commission.

(b) Each candidate in receipt of the qualifying sum of contributions established for the candidate's office may apply to the commission for matching public funding after the candidate has become a candidate in a primary, special primary, special, or general election.

(c) The commission shall make additional certifications within two weeks after receiving an application and supplemental contribution statement from an eligible candidate who requests additional matching public funding pursuant to section 11-221."

SECTION 10. Section 11-223, Hawaii Revised Statutes, is amended to read as follows:

"§11-223 Candidate funding; restrictions. (a) Each candidate who accepts matching public campaign funds under this subpart shall be required to abide by the campaign spending limits for the candidate's respective office as set forth in section 11-209. Any candidate who exceeds the spending limits for the candidate's respective office as set forth in section 11-209 shall immediately return all of the matching public campaign funds the candidate has received to the Hawaii election campaign fund.

(b) [Public] Matching public campaign funds provided under this subpart shall only be used to:

(1) Defray campaign expenses incurred by and paid for an eligible candidate or all committees authorized by such candidate; and

(2) Repay loans, the proceeds of which were used to defray campaign expenses.

(c) No candidate or committee authorized by a candidate shall be entitled to receive any matching public funds under this subpart unless the candidate has qualified to have the candidate's name on the election ballot in the election for which funds are sought.

(d) In no event shall any candidate or campaign treasurer in receipt of matching public campaign funds transfer any portion of such funds to another candidate for any primary, special primary, special, or general election campaign.

(e) All matching public funds received under this subpart shall be deposited in a financial institution designated to do business in the State. No expenditures of any public funds received under this subpart shall be made except by checks drawn on such checking account. The commission may require such reports relating to the expenditure of such funds as it considers appropriate.

(f) Each candidate, on the deadline for filing of a final report for any primary, special primary, special, or general election, shall return all unexpended matching public funds to the Hawaii election campaign fund."

SECTION 11. There is appropriated out of the Hawaii election campaign fund the sum of $1 or so much thereof as may be necessary for fiscal year 2003-2004 and the same sum or so much thereof as may be necessary for fiscal year 2004-2005 for the campaign spending commission to provide staff positions to support publicly-funded elections for the state legislature as follows:

(1) Two staff positions for computer analysis of campaign contributions; and

(2) One staff position for auditing and monitoring.

The sums appropriated shall be expended by the campaign spending commission for the purposes of this Act.

SECTION 12. In codifying the new sections added by section 2 of this Act, the reviser of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 13. In addition to the reports required by section 11-210, Hawaii Revised Statutes, the campaign spending commission, in cooperation with the League of Women Voters, Common Cause Hawaii, and other relevant stakeholders, shall conduct a comprehensive study of the campaign financing system in Hawaii following the first election under this Act, and shall report to the legislature, no later than twenty days before the convening of the regular session of the year following the year of the study, with the following information:

(1) A detailed summary of all seed money contributions, qualifying contributions, public funds disbursements, and publicly-financed candidate expenditures, spent in the election;

(2) Suggested amendments to this Act that may address the need to equalize public funding to match expenditures with non publicly-funded candidates;

(3) Suggested amendments to this Act that will extend publicly-funded campaigns to other state and county elections; and

(4) A summary and evaluation of the commission's activities, and recommendations to enhance the effective and timely administration and enforcement of this Act.

The legislative reference bureau shall assist the campaign spending commission in drafting any proposed amendments to this Act recommended by the campaign spending commission.

SECTION 14. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 15. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 16. This Act shall take effect on July 1, 2003.