Publicly Funded Elections
Provides the means to increase amounts in the Hawaii election campaign fund. Allows the campaign spending commission to raise voluntary expenditure limits and increase the maximum amounts of public funds available to candidates.
TWENTY-SECOND LEGISLATURE, 2003
STATE OF HAWAII
A BILL FOR AN ACT
relating to elections.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Findings and purpose. The legislature finds that the partial public matching funds program for candidates administered by the campaign spending commission has limited effectiveness in promoting competitive election campaigns in Hawaii. The amount of public funds provided to candidates is too small, and the voluntary expenditure limit is too low for most candidates to be competitive in their elections.
The legislature further finds that the voluntary spending limit and public funding amounts specified in statute should be made more flexible so that these amounts can be raised in the event that the Hawaii election campaign fund has sufficient funds for all of its purposes. Thus, the legislature should provide for various ways to increase the amount of moneys deposited into this fund.
Should the fund ever have a large enough revenue stream, the law should allow the campaign spending commission to raise the spending limit and provide full funding to enable publicly funded candidates to conduct competitive races with minimum funding from large private contributions.
The purpose of this Act is to allow the campaign spending commission to increase the amounts of public funds available to candidates and raise the voluntary campaign expenditure limits, depending on the amount of funds in the Hawaii election campaign fund. The Act also provides a twenty-five per cent income tax credit for contributions up to one thousand dollars to the Hawaii election campaign fund, requires a percentage of certain non-bid contracts to be deposited into the fund, and increases from two to five dollars the amount taxpayers may specify to the fund.
SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Hawaii election campaign fund income tax credit. (a) Any taxpayer who files an individual or corporate net income tax return for a taxable year may claim an income tax credit for contributions made to the Hawaii election campaign fund.
(b) The income tax credit shall be equal to twenty-five per cent of any contributions made to the Hawaii election campaign fund in an aggregate amount not to exceed $1,000 in any taxable year and shall be applied against the taxpayer's income tax liability for the taxable year for which the income tax return is filed.
(c) If the tax credit claimed by the taxpayer under this section exceeds the amount of the income tax payments due from the taxpayer, the excess of credit over payments due shall be refunded to the taxpayer; provided that the tax credit properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; and provided that no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1.
(d) The director of taxation shall prepare such forms as may be necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91.
(e) All of the provisions relating to assessments and refunds under this chapter and under section 231-23(c)(1) shall apply to the tax credit under this section.
(f) Claims for the tax credit under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the taxable year for which the credit may be claimed."
SECTION 3. Section 11-209, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) From January 1 of the year of any primary, special, or general election, the total expenditures for each election for candidates who voluntarily agree to limit their campaign expenditures, inclusive of all expenditures made or authorized by the candidate alone and all campaign treasurers and committees in the candidate's behalf, shall not exceed the following amounts expressed respectively multiplied by the number of voters in the last preceding general election registered to vote in each respective voting district:
(1) For the office of governor--$2.50;
(2) For the office of lieutenant governor--$1.40;
(3) For the office of mayor--$2.00;
(4) For the offices of state senator, state representative, county council member, and prosecuting attorney--$1.40; and
(5) For the offices of the board of education and all other offices--20 cents[
provided that the commission may raise the voluntary expenditure limits of any office to a more competitive amount as part of a plan that the commission adopts to provide public funds in amounts that allow qualified candidates to be competitive in elections."
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[
,]; the designated percentage of certain contracts awarded under section 103D-306; any general fund revenues appropriated[ ,]; as well as all other moneys collected pursuant to this subpart. Payment to each candidate 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. (a) [
The] Except as provided in subsection (d), the maximum amount of 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.
For] Except as provided in subsection (d), for the office of state senator, state representative, county council member, and prosecuting attorney, the maximum amount of 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.
For] Except as provided in subsection (d), for the board of education and all other offices, the maximum amount of public funds available to a candidate shall not exceed $100 in any election year.
(d) Whenever the commission determines that sufficient funds exists in the Hawaii election campaign fund, the commission may increase the maximum amounts of public funds available to a candidate to up to one hundred per cent of the total expenditure limit for each election, as established for each office listed in this section pursuant to section 11-209.
(d)] (e) Each candidate who qualified for the maximum amount of 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 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 103D-306, Hawaii Revised Statutes, is amended to read as follows:
"§103D-306 Sole source procurement. (a) A contract may be awarded for goods, services, or construction without competition when the head of a purchasing agency determines in writing that there is only one source for the required good, service, or construction, the determination is reviewed and approved by the chief procurement officer, the written determination is posted in the manner described in rules adopted by the policy board, and no objection is outstanding. The written determination, any objection, and a written summary of the disposition of any objection shall be included in the contract file.
(b) The written determination shall contain such information as the rules of the policy board require. Persons may file written objections to the issuance of a contract pursuant to this section. Rules of the policy board shall provide for the disposition of objections, including a written summary of the disposition.
(c) The rules of the policy board shall include a non-exhaustive list of procurements [
which] that constitute sole source procurements and criteria for determining when a particular procurement may be determined to be a sole source. The rules shall also prescribe when cost or pricing data must be considered and how they are to be used in establishing the price, terms, and conditions, if any, for a contract awarded pursuant to this section.
(d) per cent of any construction, architectural, or engineering contract that is awarded under this section and in excess of $ , shall be deposited into the Hawaii election campaign fund."
SECTION 7. Section 235-102.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Any individual whose state income tax liability for any taxable year is [
$2] $5 or more may designate [ $2] $5 of the liability to be paid over to the Hawaii election campaign fund, any other law to the contrary notwithstanding, when submitting a state income tax return to the department of taxation. In the case of a joint return of a husband and wife having a state income tax liability of [ $4] $10 or more, each spouse may designate that [ $2] $5 be paid to the fund. The director of taxation shall revise the individual state income tax form to allow the designation of contributions to the fund on the face of the tax return and immediately above the signature lines. An explanation shall be included [ which] that clearly states that the check-off does not constitute an additional tax liability. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for such taxable year. A designation once made whether by an original or amended return may not be revoked."
SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 9. This Act shall take effect upon its approval; provided that sections 2 and 7 of this Act shall apply to taxable years beginning after December 31, 2002.