Report Title:

Campaign Spending

Description:

Deletes censure provision for candidates failing to comply with code of fair campaign practices; prohibits donations in cash over $100; prohibits government contractors from contributing to any candidate or committee for a period before and after completion of the contract; requires moneys from the Hawaii election campaign fund used for the campaign spending commission operations to be appropriated by a budget appropriation act.

THE SENATE

S.B. NO.

3198

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to elections.

 

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

SECTION 1. The purpose of this Act is to amend certain provisions of the election campaign contributions and expenditures law by:

(1) Deleting the campaign spending commission's power to censure candidates failing to abide by the code of fair campaign practices, pursuant to a court ruling that this provision was unconstitutional;

(2) Prohibiting campaign donations in cash over $100;

(3) Prohibiting government contractors from contributing to candidates and committees one year before the availability of the contract and two years after the completion of the contract; and

(4) Requiring moneys from the Hawaii election campaign fund used for the operation of the campaign spending commission to be appropriated by a budget appropriation act.

SECTION 2. 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 76 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; and

[(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 3. Section 11-199, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) No candidate, committee, or party shall accept a contribution of more than $100 in cash from a single person [without issuing a receipt to the donor and keeping a record of the transaction.], and for each contribution, a receipt shall be issued to the donor and a record kept of the transaction."

SECTION 4. 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.]

(a) It shall be unlawful for any person who enters into any contract or agreement with a government agency, either for:

(1) Personal services;

(2) Furnishing any material, supplies, or equipment; or

(3) The sale of land or a building,

to the government agency, if payment for the performance of the contract or agreement is made in whole or in part from funds appropriated by the legislature or county councils during the prohibited period. The prohibited period is the period of twelve months 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, and twenty-four months after the completion of performance or termination of the contract or agreement. No such person shall make contributions of money or other things of value, directly or indirectly, or promise or imply that any contribution will be made to any political party, committee, candidate for public office, or any person responsible for entering into any contract or agreement with the government agency.

For the purpose of this section, "government agency" means the State, or any of its counties, any department, agency, or entity thereof.

(b) It shall be unlawful to solicit any contribution from any person covered under subsection (a) for any such purpose during the prohibited period.

(c) This section does not prohibit contributions to a separate segregated fund established by an organization.

(d) This section does not prohibit or make unlawful contributions of $1,000 or less by individuals to a noncandidate committee."

SECTION 5. Section 11-217, Hawaii Revised Statutes, is amended to read as follows:

"11-217 Hawaii election campaign fund; creation. The Hawaii election campaign fund is created as a trust fund within the state treasury. The fund shall consist of all moneys collected from persons who have designated a portion of their income tax liability to the fund as provided in section 235-102.5, any general fund revenues appropriated, as well as all other moneys collected pursuant to this subpart. 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[.], pursuant to a budget appropriation act."

SECTION 6. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 2004.

INTRODUCED BY:

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