Report Title:

Campaign Finance and Elections Reform

Description:

Restores integrity in elections by prohibiting a person from soliciting or receiving campaign donations on government property; prohibiting a government contractor with a contract in excess of $25,000 from making a contribution; prohibiting contributions from corporations and labor organizations except through a separate segregated fund; prohibiting the use of campaign contributions for personal expenses; reducing the amounts of campaign contributions; defining the ownership interest in a corporation as twenty-five percent for purposes of campaign contribution limits by individuals; amending registration requirements for candidates seeking reelection; clarifying prohibited conduct at polling places; clarifying that excess contributions must be returned within thirty days or it will escheat to the Hawaii election campaign fund; and making falsifying reports with intent to circumvent the law or deceive a class C felony. (HB284 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

284

TWENTY-SECOND LEGISLATURE, 2003

H.D. 1

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 legislature finds that reforms are needed to reduce candidates' reliance upon contributions that restore the public's confidence in the integrity of the election itself.

Accordingly, this Act amends Hawaii's campaign spending laws to:

(1) Prohibit fundraising in buildings being used for state or county purposes;

(2) Prohibit contributions by government contractors with contracts over $25,000;

(3) Prohibit use of campaign contributions for personal expenditures;

(4) Amend the registration requirements for candidates seeking reelection;

(5) Clarify prohibited activity at polling places;

(6) Reduce campaign contributions to candidates, and adopt, in part, the federal campaign contributions limits;

(7) Prohibit campaign contributions from corporations, labor organizations, member organizations, cooperatives or corporations without capital stock, except through separate segregated funds for contributions in excess of $6,000 in the aggregate;

(8) Define the ownership interest in a corporation as twenty-five percent for purposes of campaign contribution limits by individuals;

(9) Clarify that excess contributions must be returned within thirty days or it will escheat to the Hawaii election campaign fund;

(10) Make falsifying reports with intent to circumvent the law or deceive the commission a class C felony;

(11) Clarify that a person who is prosecuted and convicted of campaign violations is not subject to administrative enforcement.

SECTION 2 Chapter 11, Hawaii Revised Statutes, is amended by adding two new sections to subpart B of part XII to be appropriately designated and to read as follows:

"§11-    Prohibition of fundraising on state or county property. (a) Except as provided in subsection (b), it shall be unlawful for any person to solicit a donation of money or other thing of value in connection with an election campaign in a room, building, or other facility used in the discharge of official duties by an officer or employee of the state or county.

(b) The provisions of subsection (a) shall not apply to any government facility, which is available for use as a rental or with a reservation to nongovernmental organizations. These government facilities may be used by any candidate or committee for fundraising activities pursuant to the same terms and conditions, which would otherwise apply to nongovernmental organizations.

(c) A person who violates this section shall be fined not more than $5,000, or imprisoned for not more than three years, or both.

§11- Campaign contributions; prohibited by corporations, labor organizations, member organizations, cooperatives or corporations without capital stock. (a) It shall be unlawful for any corporation, labor organization, membership organization, cooperative, or corporation without capital stock to make a contribution to or expenditure on behalf of any candidate, candidate's committee, or noncandidate committee, except as provided in this section. No officer or director of any corporation, labor organization, member organization, cooperative, or corporation without capital stock shall consent to or authorize any contribution. This subsection shall not apply to any corporation, labor organization, membership organization, cooperative or corporation without capital stock making contributions aggregating less than $6,000 in an election period.

(b) No candidate, candidate's committee, or person shall knowingly accept or receive contributions prohibited by this section.

(c) This section shall not prohibit the use of funds for the establishment or administration of, or the solicitation of contributions to, any separate segregated fund by a corporation, labor organization, membership organization, cooperative, or corporation without capital stock for the purpose of influencing the nomination for election, or election, of any candidate to political office. Contributions made to or by a separate segregated fund are subject to the limitations in section 11-204.

(d) It shall be unlawful for the separate segregated fund to:

(1) Make contributions or expenditures from funds secured by:

(A) Physical force, job discrimination, financial reprisals, or the threat of force, job discrimination, or financial reprisal;

(B) Dues, fees, or other moneys required as a condition of membership in a labor organization or as a condition of employment; or

(C) Moneys obtained in any commercial transaction;

and

(2) Solicit an employee for a contribution to such a fund without informing the employee at the time of such solicitation of the political purposes of the fund and of the employee's right to refuse to contribute without any reprisal.

(e) It shall be unlawful for:

(1) A corporation, membership organization, cooperative or corporation without capital stock or a separate segregated fund established by a corporation, membership organization, cooperative, or corporation without capital stock to solicit contributions to the fund from any person other than its stockholders, members, employees and their families;

(2) A labor organization, or a separate segregated fund established by a labor organization, to solicit contributions to such a fund from any person other than its members and their families; or

(3) Contributions to a separate segregated fund established by a corporation be made from dividends, bonuses, or any form of payment to stockholders and their families and its executives or administrative personnel and their families, paid solely for making a contribution to such fund.

(f) This section does not prohibit a corporation, labor organization, membership organization, cooperative, or corporation without capital stock from using its funds to pay for fundraising or solicitation activities for the separate segregated fund; provided that:

(1) The separate segregated fund complies with all reporting requirements for a noncandidate committee under this subpart;

(2) The corporation, membership organization, cooperative, or corporation without capital stock complies with the reporting requirements for a reporting corporation and electioneering communication, as applicable, under this subpart; and

(3) The labor organization complies with the reporting requirements for a noncandidate committee and electioneering communication, as applicable, under this subpart."

SECTION 3. Section 11-132, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The precinct officials shall post in a conspicuous place, prior to the opening of the polls, a map designating an area of two hundred feet from the perimeter of the polling place and its appurtenances. Any person who remains or loiters within an area of two hundred feet from the perimeter of the polling place and its appurtenances for the purpose of campaigning, or any election official or watcher who uses or transmits on the day of the election, for partisan or campaign purposes, any information obtained in the course of performing their responsibilities as an election official or watcher shall be guilty of a misdemeanor. For the purposes of this section, a polling place and its appurtenances shall include:

(1) The building in which the polling place is located;

(2) Any parking lot adjacent to the building and routinely used for parking at that building;

(3) The routes of access between the building and any parking lot; and

(4) Any route of access between any public thoroughfare (right of way) and the polling place to ensure an open and accessible ingress and egress to and from the polling place for voters."

SECTION 4. Section 11-191, Hawaii Revised Statutes, is amended as follows:

1. By adding four new definitions to be appropriately inserted and to read:

""Corporation" means any business entity authorized to transact business within the State or subject to the laws of the State.

"Independent expenditure" means a cost incurred by a person or noncandidate committee other than a candidate or candidate's committee for a communication that is disseminated during thirty calendar days before a primary election or sixty days before a general election 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, or its authorized agents.

"Labor organization" means any organization of any kind, or any agency or employee representation committee, in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work.

"Separate segregated fund" means an account set up by any corporation, labor organization, membership organization, cooperative, or corporation without capital stock for the purpose of making contributions or expenditures to influence the nomination for election, or election of any candidate."

2. By amending the definitions of "candidate's committee", "committee", "contribution", "election period", and "noncandidate committee" to read:

""Candidate's committee" means a committee as defined in this section which makes an expenditure or accepts a contribution in behalf of a candidate with the candidate's authorization. A candidate shall have only one authorized candidate's committee.

"Committee" means:

(1) Any individual, organization, association, or [individual] a separate segregated fund that accepts or makes a contribution or makes an expenditure for or against any:

(A) Candidate;

(B) Individual who files for nomination at a later date and becomes a candidate; or

(C) Party;

with or without the authorization of the candidate, individual, or party. In addition, the term "committee" means any organization, association, or individual who accepts or makes a contribution or makes an expenditure for or against any question or issue appearing on the ballot at the next applicable election; or

(2) Any organization, association, or individual that raises or holds money or anything of value for a political purpose, with or without the consent or knowledge of any:

(A) Candidate;

(B) Individual who files for nomination at a later date and becomes a candidate; or

(C) Party; and

subsequently contributes money or anything of value to, or makes expenditures on behalf of, the candidate, individual, or party.

Notwithstanding any of the foregoing, the term "committee" shall not include any individual making a contribution or expenditure of the individual's own funds or anything of value that the individual originally acquired for the individual's own use and not for the purpose of evading any provision of this subpart, or any organization, which raises or expends funds for the sole purpose of the production and dissemination of informational or educational advertising.

"Contribution" means:

(1) A gift, subscription, deposits of money or anything of value, or cancellation of a debt or legal obligation and includes the purchase of tickets to fundraisers for the purpose of:

(A) Influencing the nomination for election, or election, of any person to office;

(B) Influencing the outcome of any question or issue that appears or is reasonably certain to appear on the ballot at the next applicable election described in subparagraph (A); or

(C) Use by any party or committee for the purposes set out in subparagraph (A) or (B);

(2) The payment, by any person, political party, or any other entity other than a candidate or committee, of compensation for the personal services or services of another person that are rendered to the candidate or committee without charge or at an unreasonably low charge for the purposes set out in paragraph (1)(A), (1)(B), or (1)(C);

(3) A contract, promise, or agreement to make a contribution; provided that notwithstanding this paragraph and paragraphs (1) and (2), the term "contributions" shall not include services or portions thereof voluntarily provided without reasonable compensation by individuals to or in behalf of a candidate or committee; or

(4) Notwithstanding paragraphs (1), (2), and (3), a candidate's expenditure of the candidate's own funds or the making of a loan or advance in the pursuit of the candidate's campaign shall not be a contribution for the purpose of this subpart but shall nevertheless be reportable as a campaign receipt.

(5) The term "contribution" does not include:

(A) Value of services provided without compensation by any individual who volunteers on behalf of a candidate or noncandidate committee.

(B) Use of real or personal property and the cost of invitations, food, beverages voluntarily provided by an individual on the individuals' residential premises or community or other facility, provided that the value of such costs on behalf of a single candidate does not exceed $1,000 in any election period and on behalf of a noncandidate committee or party does not exceed $2,000 in any calendar year.

(C) Sale of any food or beverage by a vendor for use by a candidate or noncandidate committee or party at charges less than the normal comparable charge, if such charge is at least equal to the cost of such food or beverage to the vendor, provided that the value of such costs on behalf of a single candidate does not exceed $1,000 in any election period and on behalf of a noncandidate committee or party does not exceed $2,000 in any calendar year.

(D) Independent expenditures and electioneering communications.

"Election period" means the two-year period between general election days. [if a candidate is seeking nomination or election to a two-year office and the four-year time period between general election days if a candidate is seeking nomination or election to a four-year office.]

"Noncandidate committee" means a committee as defined in this section and includes any separate segregated fund used for a political purpose by a corporation, labor organization, membership organization, trade association, cooperative, or corporation without capital stock, but does not include a candidate's committee."

SECTION 5. Section 11-194, Hawaii Revised Statutes, is amended to read as follows:

"§11-194 Registration. (a) Each candidate, committee, or party shall register with the commission by [file] filing an organizational report as set forth in section 11-196, or section 11-196.5 as applicable[, within ten days from the date a candidate or candidate committee receives any contributions or makes any expenditures, the aggregate amount of which is more than $100, or, within ten days from the date a noncandidate committee receives any contributions or makes any expenditures, the aggregate amount of which is more than $1,000].

(b) A candidate shall file an organizational report within ten days of:

(1) Filing nomination papers for office with the chief election officer or county clerk; or

(2) The date the candidate or candidate's committee receives any contributions or makes any expenditures, the aggregate amount of which is more than $100,

whichever occurs first. This requirement shall not apply to a candidate seeking reelection to the same office in successive election periods, provided the candidate has not sought election to any other office.

[(c) Each candidate who files nomination papers for office with the chief election officer or county clerk shall file an organizational report within ten days of filing.]"

(c) A candidate committee shall file an organizational report within ten days from receipt of contributions or makes any expenditure, the aggregate amount of which is more than $100.

(d) A noncandidate committee shall file an organizational report within ten days from receipt of contributions or makes any expenditure, the aggregate amount of which is more than $1,000.

[(b)](e) Committees that form within ten days of an election and expend in the aggregate more than $1,000 shall register and fully disclose the [expenditure] contributions and expenditures by 4:30 p.m. on the last calendar day prior to the election."

SECTION 6. Section 11-200, Hawaii Revised Statutes, is amended to read as follows:

"§11-200 Campaign contributions; restrictions against transfer. (a) A candidate, campaign treasurer, or candidate's committee shall not receive any contributions or receive or make any transfer of money or anything of value:

(1) For any purpose other than that directly related:

(A) In the case of the candidate, to the candidate's own campaign; or

(B) In the case of a campaign treasurer or candidate's committee, to the campaign of the candidate, question, or issue with which they are directly associated; [or]

(2) To support the campaigns of candidates other than the candidate for whom the funds were collected or with whom the campaign treasurer or candidate's committee is directly associated; or

(3) To campaign against any other candidate not directly opposing the candidate for whom the funds were collected or with whom the campaign treasurer or candidate's committee is directly associated.

(b) Any provision of law to the contrary notwithstanding, a candidate, campaign treasurer, or candidate's committee, as a contribution:

(1) May purchase from its campaign fund not more than two tickets for each event held by another candidate, committee, or party whether or not the event constitutes a fundraiser as defined in section 11-203;

(2) May use campaign funds for any ordinary and necessary expenses incurred in connection with the candidate's duties as a holder of an elected state or county office, as the term is used in section 11-206(c); and

(3) May make contributions from its campaign fund to any community service, educational, youth, recreational, charitable, scientific, or literary organization, provided that in any election cycle, the total amount of all contributions from campaign funds and surplus funds shall be no more than the maximum amount that one person or other entity may contribute to that candidate pursuant to section 11-204(a).

(c) A contribution shall not be converted by any person to personal use. For the purposes of this subsection, a contribution or amount shall be considered to be converted to personal use if the contribution or amount is used to fulfill any commitment, obligation, or expense of a person, the primary purpose of which is noncampaign related and such expense exists without regard to the candidate's election campaign or individual duties as an officeholder, including:

(1) A home mortgage, rent, or utility payment;

(2) A noncampaign-related clothing purchase;

(3) A noncampaign-related automobile expense;

(4) A country club membership;

(5) A vacation or other noncampaign-related trip;

(6) A household item;

(7) A tuition payment;

(8) Admission to a sporting event, concert, theater, or other form of entertainment not associated with an election campaign; and

(9) Dues, fees, or other payments to a health club or recreational facility.

[(c)](d) This section shall not be construed to prohibit a party from supporting more than one candidate.

[(d)](e) This section shall not be construed to prohibit a candidate for the office of governor or lieutenant governor from supporting a co-candidate in the general election.

[(e)](f) This section shall not be construed to prohibit a candidate from making contributions to the candidate's party so long as that contribution is not earmarked for another candidate."

SECTION 7. Section 11-204, Hawaii Revised Statutes, is amended to read as follows:

"§11-204 Campaign contributions; limits as to persons.

(a) [(1) No] Except as otherwise provided in section

11- , no person [or any other entity] shall make contributions to[:

(A) A] a candidate [seeking nomination or election to a two-year office] or to the candidate's committee in an [aggregate] amount greater than [$2,000 during an election period;

(B) A candidate seeking nomination or election to a four-year statewide office or to the candidate's committee in an aggregate amount greater than $6,000 during an election period; and

(C) A candidate seeking nomination or election to a four-year nonstatewide office or to the candidate's committee in an aggregate amount greater than $4,000 during an election period.]

the aggregate of $2000 during the election period in which the candidate seeks office. These limits shall not apply to a loan made to a candidate by a financial institution in the ordinary course of business.

[(2) For purposes of this section, the length of term of an office shall be the usual length of term of the office as unaffected by reapportionment, a special election to fill a vacancy, or any other factor causing the term of the office the candidate is seeking to be less than the usual length of term of that office.]

(b) [No] Except as otherwise provided in section 11- , no person [or any other entity] shall make contributions to a noncandidate committee, in an aggregate amount greater than [$1,000 in an election; except that in the case of a corporation or company using funds from its own treasury, there shall be no limit on contributions or expenditures to the corporation or company noncandidate committee.] $2,000 in any election period.

(c) Except as otherwise provided in section 11- , no person shall make contributions to a party, which in the aggregate, exceeds $5,000 in any calendar year.

(d) Noncandidate committee contribution limits shall be the same as those for "persons".

(e) No individual shall make contributions aggregating more than $25,000 in any election period.

[(c)] (f) A candidate's immediate family, in making contributions to the candidate's campaign, shall be exempt from the above limitation, but shall be limited in the aggregate to $50,000 in any election period. The aggregate amount of $50,000 shall include any loans made for campaign purposes to the candidate from the candidate's immediate family.

[(d)] (g) A contribution by a dependent minor shall be reported in the name of the minor but shall be counted against the contribution of the minor's parent or guardian.

[(e)](h) Any candidate, candidate's committee, or committee that receives in the aggregate more than the applicable limits set forth in this section [in any primary, initial special, special, or general election from a person,] shall be required to [do one of the following:

(1) Regardless of whether the excess donation was inadvertently made, to transfer an amount equal to any excess over the limits established in this section to the Hawaii election campaign fund within thirty days of receipt of the contribution, and in any event, no later than thirty days upon the receipt by a candidate, candidate's committee, or committee, of notification from the commission; or

(2) If the excess donation was inadvertently made, to return to the donor any excess over the limits established in this section and to notify the commission within thirty days of receipt of the contribution.]

return any excess contribution to the original donor within thirty days from receipt of the excess contribution or submit the excess contribution to the Hawaii election campaign fund.

After thirty days from receipt, all excess contributions not returned to original donors shall escheat to the Hawaii election campaign fund. A candidate, candidate's committee, or committee who complies with this subsection prior to the initiation of prosecution shall not be subject to any penalty under section 11-228.

[(f)](i) All [payments] contributions made by a person or political party whose contributions or expenditure activity is financed, maintained, or controlled by any corporation, labor organization, association, political party, or any other person or committee, including any parent, subsidiary, branch, division, department, or local unit of the corporation, labor organization, association, political party, political committees established and maintained by a national political party, or any other person, or by any group of those persons shall be considered to be made by a single person or political party.

[(g) A contribution made by two or more corporations shall be treated as one person when such corporations:

(1) Share the majority of members of their boards of directors;

(2) Share two or more corporate officers;

(3) Are owned or controlled by the same majority shareholder or shareholders; or

(4) Are in a parent-subsidiary relationship.

(h) An individual and any general partnership in which the individual is a partner, or an individual and any corporation in which the individual owns a controlling interest, shall be treated as one person.]

[(i)](j) No committee [which] that supports or opposes a candidate for public office shall have as officers individuals who serve as officers on any other committee which supports or opposes the same candidate. No such committee shall act in concert with, or solicit or make contributions on behalf of, any other committee.

[(j)] (k) No contributions or expenditures shall be made to or on behalf of a candidate or committee by a foreign national [or foreign corporation, including a domestic subsidiary of a foreign corporation, a domestic corporation that is owned by a foreign national, or a local subsidiary where administrative control is retained by the foreign corporation, and] in the same manner prohibited under 2 United States Code section 441e and 11 Code of Federal Regulations 110.4(a) and 110.9(a), as amended. [No foreign-owned domestic corporation shall make contributions where:

(1) Foreign national individuals participate in election-related activities such as decisions concerning the making of contributions or the administration of a political committee; or

(2) The contribution funds are not domestically-derived.]

[(k)](l) No person or any other entity other than political committees established and maintained by a national political party shall make contributions to a political party in an aggregate amount greater than $25,000 in any two-year election period. No political committee established and maintained by a national political party, shall make contributions to a political party in an aggregate amount greater than $50,000 in any two-year election period.

(m) For purposes of this section:

(1) Contributions to a candidate's committee shall be a contribution to a named candidate;

(2) Expenditures made by any person in cooperation, consultation or concert with, or at the suggestion of, a candidate or the candidate's committee, or their authorized agents, shall be a contribution to such candidate;

(3) Contributions by a person to a noncandidate committee or party that are earmarked for a specific candidate shall be treated as contributions from the person to the candidate; and

(4) An individual who owns more than twenty-five percent of the outstanding shares of a corporation or interest in a partnership shall be considered as a single entity with the corporation or partnership and any contributions made by such individual is governed by section 11- .

[(l)](n) [Except for subsection (j), this] This section shall not apply to ballot issue committees."

SECTION 8. Section 11-205.5, Hawaii Revised Statutes, is amended to read as follows:

"§11-205.5 Campaign contributions; by [state] government contractors. [(a) Any person making a contribution to any candidate, committee, or political party, and who has received, in any calendar year, $50,000 or more through contracts from the State, or county shall register and report that fact to the commission within thirty days of the date of the contribution or within thirty days of the date of the contract, whichever occurs later; provided that this section shall not apply to a person who has received $50,000 or more through a grant, subsidy, or purchase of service agreement under chapter 42F or 103F.

(b) The commission shall prescribe forms and procedures for the reporting required in subsection (a), which, at a minimum, shall require the following information:

(1) The name and address of the person making the contribution;

(2) The name of the candidate, committee, or political party receiving the contribution;

(3) The amount of money received from the State or county, the dates, and information identifying each contract and describing the service performed or goods provided; and

(4) If an entity is making the contribution, the names and business addresses of the principals, including officers and directors.

(c) The commission shall maintain a list of such reports for public inspection both at the commission's office and through the state FYI electronic bulletin board.]

(a) As used in this section, the following definitions apply unless the context clearly requires otherwise:

"Appropriation" means any act by a legislative body of the state or counties to authorize the expenditure of funds for capital improvement projects, public works projects, or any specific project for which government contracts are awarded.

"Business" means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other private legal entity.

"Completion of the contract" means that the parties to the government contract have either terminated the contract prior to completion of performance or fully performed the duties and obligations under the contract and no disputes relating to performance and payment remain under the contract. This term also means that all disputed claims have been adjudicated and are final.

"Construction" shall be as defined in section 103D-104.

"Contract" means all types of agreements, regardless of what they may be called, for the procurement or disposal of goods or services, for construction, or for the purchase or sale of real property.

"Goods" shall be as defined in section 103D-104.

"Government contract" means any procurement contract that exceeds $25,000 for goods, services or construction covered by the Hawaii public procurement code, chapter 103D, and a contract for the purchase or sale of real property.

"Government contractor" means any business that is seeking or has a government contract with a governmental body that exceeds $25,000.

"Governmental body" means any department, commission, council, board, bureau, authority, committee, institution, legislative body, agency, government corporation, or other establishment or office of the executive, legislative, or judicial branch of the State, including the office of Hawaiian affairs, and the several counties of the State.

"Procurement" means buying, purchasing, renting, leasing, or otherwise acquiring any good, service, construction or real property. The term also includes all functions that pertain to the obtaining of any good, service, or construction including description of requirements, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration.

"Purchasing agency" means any governmental body, which is authorized by chapter 103D or by way of delegation, to enter into contracts for the procurement of goods, services, construction, or real property.

"Services" includes "professional services" and both terms shall be as defined in section 103D-104.

"Termination of procurement activity" means the cessation of any discussion or negotiations relating to a selection for any government contract in which the business is not selected for the contract, and no dispute remains on the selection of the government contractor.

(b) It shall be unlawful for any government contractor to make a contribution to any candidate or candidate's committee at any time commencing with any procurement activity conducted by a purchasing agency or notice of appropriation and ending with twenty-four months after the either the termination of procurement activity or completion of any government contract.

(c) It shall be unlawful for any business against whom debarment or suspension proceedings are commenced pursuant to section 103D-702 to make a contribution to any candidate or candidate's committee at any time during the course of the proceedings, an administrative or judicial action brought under sections 103D-709 and 103D-710, and the period of debarment or suspension.

(d) It shall be unlawful for any person to knowingly solicit any contribution from any government contractor or business prohibited from making contributions under this section.

(e) This section does not prohibit the establishment or administration of, or the solicitation of contributions to any separate segregated fund pursuant to section 11- .

(f) This section does not prohibit or make unlawful contributions from any individual who owns less than twenty-five per cent of the outstanding shares of a business that is a government contractor, provided that the contribution is from the individual's personal funds."

SECTION 9. Section 11-207.6, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) For the purposes of this section:

"Disclosure date" means, for every calendar year, the first date by which a person has made disbursements during that same year of more than $2,000, in the aggregate, for electioneering communications, and the date of any subsequent disbursements by that person for electioneering communications.

"Electioneering communication" means any paid advertising [broadcast]:

(1) Broadcast from a television or radio broadcast station[, or published];

(2) Published in any periodical or newspaper[, or sent]; or

(3) Sent by mail at a bulk rate[,];

which refers to a clearly identifiable candidate and is made, or scheduled to be made, either within thirty days prior to a primary or initial special election or within sixty days prior to a general or special election. "Electioneering communication" shall not include communications in a news story or editorial, communications which constitute expenditures required by this chapter to be reported by the disbursing organization, or communications in house bulletins."

SECTION 10. Section 11-228, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"(f) The provisions of this section shall not be construed to prohibit prosecution under any appropriate provision of the Hawaii Penal Code or section 11-229[.]; provided that prosecution and conviction under section 11-229 shall prohibit subsequent administrative enforcement under this section."

SECTION 11. Section 11-229, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Any person who knowingly, intentionally, or recklessly violates any provision of this subpart shall be guilty of a misdemeanor. Any person who knowingly or intentionally falsifies any report required by this part with the intent to circumvent the law or deceive the commission or who violates section 11-201 or 11-202 shall be guilty of a class C felony. A person who is convicted under this section shall be disqualified from holding elective public office for a period of four years from the date of conviction."

SECTION 12. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 13. 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 14. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 15. This Act shall take effect upon its approval.