Report Title:
Campaign Spending Reform
Description:
Prohibits corporations, labor organizations, and banks from making campaign contributions directly from corporate, labor organization, or bank treasuries; requires establishment of separate segregated fund through which employees can make contributions; provides that intentional and knowing violations of the campaign spending law shall be a class C felony.
THE SENATE |
S.B. NO. |
2074 |
TWENTY-SECOND LEGISLATURE, 2004 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CAMPAIGN SPENDING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 11-191, Hawaii Revised Statutes, is amended as follows:
1. By adding a new definition to be appropriately inserted and to read as follows:
""Separate segregated fund" means an account set up by any state or national bank, corporation, partnership, labor organization, membership organization, trade association, cooperative, or corporation without capital stock, for the purpose of making contributions to influence the nomination for election, or election, of any person to political purpose or for an issue on the ballot."
2. By amending the definition of "noncandidate committee" to read as follows:
""Noncandidate committee" means a committee as defined in this section [and
SECTION 2. Section 11-204, Hawaii Revised Statutes, is amended to read as follows:
"§11-204 Campaign contributions; limits as to persons.
(a) (1) No person or any other entity shall make contributions to:
(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.
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 person or any other entity shall make contributions to a noncandidate committee, in an aggregate amount greater than $1,000 in an election[
(c) 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) 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) 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.
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) All payments 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.
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(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) 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.
(l) Except for subsection
SECTION 3. Chapter 11, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§11- Banks, Corporations, Labor Organizations. (a) No state or national bank, corporation, partnership, labor organization, membership organization, cooperative, or corporation without capital stock organized by authority of any law of the United States Congress or of any state shall make a contribution or expenditure in connection with the nomination for election or election of any person to political office, or in connection with any candidate committee or noncandidate committee.
(b) No officer or director of any corporation of any state or national bank or any officer of any labor organization shall consent to any contribution by the corporation, state or national bank, or labor organization, as the case may be. No person shall accept or receive any contribution prohibited by this subsection.
(c) This subsection 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 state or national bank, corporation, partnership, labor organization, membership organization, cooperative, or corporation without capital stock for the purpose of influencing the nomination for election, or election, of any person to political office.
(d) It shall be unlawful for the separate segregated fund to use contributions secured by physical force, job discrimination, financial reprisals, or the threat of force, job discrimination, or financial reprisal; or by dues, fees, or other moneys required as a condition of membership in a labor organization or as a condition of employment, or by moneys obtained in any commercial transaction.
(e) Any person soliciting an employee for a contribution to such a fund shall inform the employee, in writing, at the time of such solicitation of the employee's right to refuse to contribute without any reprisal.
It shall be unlawful for:
(1) A corporation, or a separate segregated fund established by a corporation, to solicit contributions to the fund from any person other than its stockholders and their families and its executive or administrative personnel and their families; or
(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.
(f) No funds for a separate segregated fund established by a corporation may be 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.
(g) this subsection shall not prevent a membership organization, cooperative, trade association, or corporation without capital stock, or a separate segregated fund established by a membership organization, cooperative, trade association, or corporation without capital stock, from soliciting contributions to such a fund from members of such organization, cooperative, trade association, or corporation without capital stock."
SECTION 4. Section 11-229, Hawaii Revised Statutes, is amended to read as follows:
"§11-229 Criminal prosecution. (a) Any person who knowingly, intentionally, or recklessly violates any provision of this subpart shall be guilty of a misdemeanor. 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.
(b) Any person, officer, or director of any corporation or any officer of any labor organization, or officer or director of a state or national bank who knowingly, willingly, or intentionally falsifies any report required by this subsection with the intent to circumvent the law or deceive the commission shall be guilty of a class C felony.
(c) Any person who violates section 11-201 or 11-202, Hawaii Revised Statutes, shall be guilty of a class C felony.
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(1) Prosecution shall commence with a written request from the commission or upon the issuance of an order of the court; provided that prosecution may commence prior to any proceeding initiated by the commission or final determination;
(2) In the case of state offices, parties, or issues, the attorney general or the prosecuting attorney for the city and county of Honolulu shall prosecute any violation; and
(3) In the case of all other offices, parties, or issues, the attorney general or the prosecuting attorney for the respective county shall prosecute any violation.
In the commission's choice of prosecuting agency, it shall be guided by whether there will be any conflicting interest between the agency and its appointive authority.
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SECTION 4. 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 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect upon approval.
INTRODUCED BY: |
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