Report Title:

Campaign Spending

Description:

Amends campaign-spending laws to conform with recent court rulings and federal regulations; clarifies registration requirements, campaign spending and contribution provisions, and penalties for egregious violations of these rules.

THE SENATE

S.B. NO.

3030

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

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 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 office or for an issue on the ballot."

SECTION 2. Section 11-191, Hawaii Revised Statutes, is amended by amending the definition of "noncandidate committee" to read as follows:

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

SECTION 3. Section 11-193, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The duties of the commission under this subpart are:

(1) To develop and adopt reporting forms required by this subpart;

(2) To adopt and publish a manual for all candidates and committees, describing the requirements of this subpart, including uniform and simple methods of recordkeeping;

(3) To preserve all reports required by this subpart for at least ten years from the date of receipt;

(4) To permit the inspection, copying, or duplicating of any report required by this subpart pursuant to rules adopted by the commission; provided that no information or copies from the reports shall be sold or used by any person for the purpose of soliciting contributions or for any commercial purpose;

(5) To ascertain whether any candidate, committee, or party has failed to file a report required by this subpart or has filed a substantially defective or deficient report, and to notify these persons by first class mail that their failure to file or filing of a substantially defective or deficient report must be corrected and explained. The correction or explanation shall be submitted in writing to the commission not later than 4:30 p.m. on the fifth day after notification of the failure to file or deficiency has been mailed to these persons. The commission shall publish in the newspaper, and on its website, the names of all candidates, committees, and parties who have failed to file a report or to correct their deficiency within the time allowed by the commission. Failure to file or correct a report when due, as required by this subpart, shall result in a penalty of $50. Failure to respond after a newspaper notification or website publication shall result in an additional penalty of $50 for each day a report remains overdue or uncorrected. All penalties collected under this section shall be deposited in the Hawaii election campaign fund;

(6) To hold public hearings;

(7) To investigate and hold hearings for receiving evidence of any violations;

(8) To adopt a code of fair campaign practices as a part of its rules;

(9) To establish rules pursuant to chapter 91;

(10) To request the initiation of prosecution for the violation of this subpart pursuant to section 11-229;

(11) To administer and monitor the distribution of public funds under this subpart;

(12) To suggest accounting methods for candidates, parties, and committees, as the commission may deem advisable, in connection with reports and records required by this subpart;

(13) To employ or contract, without regard to [chapter] chapters 76 and 89 and section 28-8.3, and, at pleasure, to dismiss persons it finds necessary for the performance of its functions, including a full-time executive director, and to fix their compensation;

(14) To do random audits, field investigations, as necessary;

(15) To file for injunctive relief when indicated;

[(16) To censure any candidate who fails to comply with the code of fair campaign practices;] and

[(17)] (16) To render advisory opinions upon the request of any candidate, candidate committee, noncandidate committee, or other person or entity subject to this chapter, as to whether the facts and circumstances of a particular case constitute or will constitute a violation of the campaign spending laws. If no advisory opinion is rendered within ninety days after all information necessary to issue an opinion has been obtained, it shall be deemed that an advisory opinion was rendered and that the facts and circumstances of that particular case do not constitute a violation of the campaign spending laws. The opinion rendered or deemed rendered, until amended or revoked, shall be binding on the commission in any subsequent charges concerning the candidate, candidate committee, noncandidate committee, or other person or entity subject to this chapter, who sought the opinion and acted in reliance on it in good faith, unless material facts were omitted or misstated by the persons in the request for an advisory opinion."

SECTION 4. Section 11-194, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) Each candidate, committee, or party shall file 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[.] in a two-year election period.

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

SECTION 5. Section 11-195, Hawaii Revised Statutes, is amended as follows:

(1) By amending subsection (d) to read:

"(d) All reports filed with the county clerk's office shall be preserved by that office for [ten] four years[.] from the date of receipt."

(2) By amending subsection (f) to read:

"(f) For purposes of this subpart, whenever a report is required to be filed with the commission, "filed" means received in the office of the commission or county clerk, whichever is applicable, by the date and time specified for the filing of the report; except that a candidate or the committee of a candidate who is seeking election to the office of:

(1) Governor;

(2) Lieutenant governor;

(3) Mayor;

(4) Prosecuting attorney; [or]

(5) County council;

(6) Senate;

(7) House; or

(8) Office of Hawaiian affairs;

shall file by electronic means in the manner prescribed by the commission. Candidates for the offices named in this subsection with contributions or expenditures of less than $5,000 need not file by electronic means. A candidate or committee without access to a computer or the Internet may request a waiver of electronic filing from the commission."

SECTION 6. Section 11-200, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

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

[(1) May] 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)]."

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 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) Contribution limits shall apply for the office sought by the candidate;

(3) No person or any other entity shall make contributions in the aggregate amount greater than $25,000 to any number of candidates in a two-year election period. This limit shall not apply to a loan made to a candidate by a financial institution in the ordinary course of business; and

[(2)] (4) 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[; 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].

(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.]

(1) Any excess contribution may be returned to the original donor within thirty days from receipt of the excess contribution or submitted to the Hawaii election campaign fund; or

(2) After thirty days from receipt, all excess contributions not returned to the 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) 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.

[(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)] (h) No committee which 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)] (i) 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),] 110.20, 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)] (j) 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.]

(k) 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.

(l) No officer or director of any corporation or 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, directly to a candidate committee, as the case may be. No person shall accept or receive any contribution prohibited by this subsection.

(m) 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.

(n) 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.

(o) Any person soliciting an employee for a contribution to such a fund shall inform the employee 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; and

(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.

(p) 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.

(q) This subsection shall not prevent a membership organization, cooperative, trade association, or corporation with or 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 with or without capital stock.

(r) Notwithstanding subsection (k), a state or national bank, corporation, partnership, or labor organization, may make a contribution of $1,000 in an election from its own treasury to its own separate segregated fund.

[(l)] (s) [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 and county 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.] It shall be unlawful for the State, any of its counties, and any department, agency, or entity thereof, to enter into any contract or agreement, including but not limited to those contracts or agreements for the rendition of professional or personal services, for furnishing any material, supplies, or equipment to the State, any of its counties, and any department, agency, or entity thereof, or for selling any land or building to the State, any of its counties, and any department, agency, or entity thereof, with any person or entity which has made contributions of money or other things of value, to any candidate for public office or that candidate’s candidate committee, one year prior to the notice of the availability of the contract or agreement, or the commencement of the negotiations for the contract or agreement, whichever is earlier.

(b) Notwithstanding subsection (a), no contract or agreement with any person or entity shall be barred based upon a campaign contribution to a candidate for public office or that candidate’s candidate committee, if the particular public office did not have the authority or discretion to enter into, approve, or ratify the contract or agreement at issue, or appropriate funds for such agreement.

(c) It shall be unlawful for the State, any of its counties, and any department, agency, or entity thereof, to enter into any contract or agreement, including but not limited to those contracts or agreements for the rendition of professional or personal services, or for furnishing any material, supplies, or equipment to the State, any of its counties, and any department, agency or entity thereof, or for selling any land or building to the State, any of its counties, and any department, agency, or entity thereof, with any person or entity which has made contributions of money or other things of value to a separate segregated fund established by an organization.

(d) Notwithstanding subsection (c), no contract or agreement with any person or entity shall be barred based upon a campaign contribution to a separate segregated fund established by an organization, if such separate segregated fund did not use any contributions for the purpose of influencing the nomination for election or election of any person to a public office which had the authority or discretion to enter into, approve, or ratify the contract or agreement at issue, or appropriate funds for such agreement.

(e) For the purposes of subsections (a) to (d), "person" or "entity" means an individual, a partnership, a company, or an organization, including but not limited to a corporation or bank.

(f) It shall be unlawful for any person or entity which has entered into any contract or agreement with the State, any of its counties and any department, agency, or entity thereof, including but not limited to those contracts or agreements for the rendition of professional or personal services, or for furnishing any material, supplies, or equipment to the State, any of its counties, and any department, agency, or entity thereof, or for selling any land or building to the State, any of its counties, and any department, agency, or entity thereof, during the term of the contract or agreement, and within the two years following the completion of performance of or termination of the contract or agreement, to make any contribution of money or other things of value to a candidate for public office or that candidate’s candidate committee, if the particular public office had the authority or discretion to enter into, approve, or ratify the contract or agreement at issue, or appropriate funds for such agreements.

(g) Notwithstanding any other provision of law, it shall be unlawful for an elected official of the State, any of its counties, and any department, agency, or entity thereof, to solicit contributions from any person who has entered into any contract or agreement, including but not limited to those contracts or agreements for the rendition of professional or personal services, or for furnishing any material, supplies, or equipment to the State, any of its counties, and any department, agency, or entity thereof, or for selling any land or building to the State, any of its counties, and any department, agency, or entity thereof.

(h) This section shall take effect on November 6, 2004; but this Act shall not apply to bar the award of any contract based on any contribution made prior to November 6, 2004."

SECTION 9. Section 11-205.6, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) A candidate or candidate's committee may receive and accept loans in an aggregate amount not to exceed $10,000 during an election period, provided that if the $10,000 limit is reached, the candidate or candidate's committee shall be prohibited from receiving or accepting any other loans until the $10,000 is repaid in full by the candidate or candidate's committee. Any loan amount that is not repaid within one calendar year from the date of the loan shall be deemed a contribution, subject to all relevant provisions of this chapter."

SECTION 10. Section 11-206, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) Such contributions may be used after a general or special election for: [any fundraising activity, for:]

(1) Any fundraising activity;

[(1)] (2) Any other politically related activity sponsored by the candidate;

[(2)] (3) Any ordinary and necessary expenses incurred in connection with the candidate's duties as a holder of an elected state or county office; or

[(3)] (4) Any contribution 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)[.], provided that any such contributions may be made only within ninety days after the general election."

SECTION 11. Section 11-207, Hawaii Revised Statutes, is amended to read as follows:

"(a) Expenditures, or disbursements for electioneering communications as defined in section 11-207.6, or any other coordinated activity, made by any person or political party for the benefit of a candidate in cooperation, consultation, or concert with, or at the request or suggestion of, a candidate, a candidate's political committee, or their agents, shall be considered to be a contribution to such candidate and expenditure by such candidate.

The financing by any person or political party of the dissemination, distribution, or republication, in whole or in part, of any broadcast or any written or other campaign materials prepared by the candidate, the candidate's political committee or committees, or agents shall be considered to be a contribution to such candidate.

This subsection shall not apply to candidates for governor or lieutenant governor supporting a co-candidate in the general election.

(b) [No funds shall be withdrawn or paid from a campaign depository except upon the written authorization of the campaign treasurer.] "Coordinated activity" means any activity including anything of value provided by a person in connection with a candidate's nomination or election who is actively engaged in coordination with that candidate or agent of that candidate on any campaign activity in connection with an election in which such candidate seeks nomination or election to office and includes any of the following:

(1) A payment made by a person in cooperation, consultation, or concert with, at the request of, or pursuant to any general or particular understanding with a candidate, the candidate's authorized committee, the political party of the candidate, or an agent acting on behalf of the candidate, authorized committee, or the political party of the candidate.

(2) A payment made by a person for the production, dissemination, distribution, or republication, in whole or in part, of any broadcast or any written, graphic, or other form of campaign material prepared by a candidate, a candidate's authorized committee, or an agent of a candidate or authorized committee or a communication that expressly advocates for or against a candidate, except that this paragraph shall not apply with respect to materials published on a candidate's website and republished at a cost of less than $1,000.

(3) A payment is made by a person if in the same election cycle the person making the payment:

(A) Is serving or has previously served as an employee, fundraiser, or agent of the candidate or the candidate's authorized committee in any capacity;

(B) Has previously participated in discussions with the candidate, an agent of the candidate's authorized committee, or a committee of a political party which is coordinating with the candidate regarding the candidate's campaign strategy, including, but not limited to advertising, allocation of resources, fundraising, or campaign operations; or

(C) Has retained the professional services of any person that has provided or is providing those services in the same election cycle to a candidate or committee in connection with the candidate's pursuit of nomination for election or election to office."

SECTION 12. Section 11-214, Hawaii Revised Statutes, is amending as follows:

1. By amending subsection (a) to read:

"(a) All candidates who withdraw or cease to be candidates, or committees directly associated with such candidates, individuals who receive contributions but fail to file for nomination, or committees or parties which discontinue their activities covered in this subpart, shall return all residual private contributions to the donors of such contributions within [four years] one year if their identities are known, provided that if the identity of any donor is not known, or the donor cannot be found, such contribution shall escheat to the Hawaii election campaign fund or may be donated to a nonprofit organization of the candidate's choice. In the event of a death of a candidate, the candidate's committee, if any, shall return all residual private contributions to the donors of such contributions, provided that any residual contributions not returned to the donors within sixty days of the candidate's death shall escheat to the Hawaii election campaign fund or may be donated to a nonprofit organization of the candidate's choice."

2. By amending subsection (d) to read:

"(d) This section shall not apply to[:] candidates or elected officials who:

[(1) Elected officials;

(2) Candidates who failed] (1) Failed to be nominated or elected yet who become a candidate for nomination or election to office within four years thereafter;

[(3) Elected officials who resign] (2) Resign their office before the end of their term yet who file to become a candidate for reelection within four years after the end of the term from which they resigned; or

[(4) Elected officials who do] (3) Do not seek reelection yet who file to become a candidate for election within four years after the end of the term from which they did not seek reelection."

SECTION 13. Section 11-219, Hawaii Revised Statutes, is amended to read as follows:

"§11-219 Qualifying campaign contributions; amounts. As a condition of receiving public funds for a primary, special primary, or general election, a candidate shall not be unopposed in any election for which 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 from individual residents of Hawaii 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 14. 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 subpart 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 15. 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 16. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 17. This Act shall take effect upon its approval.

INTRODUCED BY:

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