Source: https://www.capitol.hawaii.gov/session2002/bills/SB832_.htm
Timestamp: 2019-06-25 21:51:02
Document Index: 378415347

Matched Legal Cases: ['§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11']

Establishes a program for publicly-funded elections for state senator and state representative in 2002; requires participating candidates to comply with expenditure limits and raise no private contributions except for seed money and minimum qualifying contributions; moneys to come from the Hawaii election campaign fund, supplemented and augmented by donations, the general fund, and other sources.
SECTION 1. The legislature finds that the public funding of election campaigns can reduce the spiraling cost of campaigns and lessen the influence of special interest money, while encouraging increased interaction between candidates and constituents.
The publicly-funded elections program established in this Act shall provide that candidates who agree to:
(1)	Forego private campaign contributions;
(2)	Adhere to strict spending limits; and
(3)	Shorten their campaign period;
can qualify to receive a set and competitive amount of campaign financing from a public fund to run their campaigns.
It is estimated that this program will cost $9,000,000 per campaign. These funds are to come from the Hawaii election campaign fund, the general fund, state income tax check-offs, voluntary donations, and other sources, including, but not limited to, excess seed money contributions, qualifying contributions obtained by participating candidates submitted to the commission, penalties collected under violations of pulic funding requirements, and other eligible fund revenues.
The purpose of this Act is to enact a publicly-funded elections program for the offices of state senator and state representative.
SECTION 2. Chapter 11, Hawaii Revised Statutes, is amended by adding fifteen new sections to part XII, subpart B, to be appropriately designated and to read as follows:
"§11-A Eligibility for publicly-funded election campaign for party candidates. (a) A party candidate for state senator or state representative qualifies as a publicly-funded candidate for the primary election campaign period if that person:
(1)	Files a declaration with the commission at the beginning of the campaign period that the person has complied and will comply with all of the requirements of this subpart, as applicable; and
(2)	Meets the following publicly-funded elections qualifying contribution requirements before the close of the qualifying period:
(A)	A party candidate shall collect at least the following number of qualifying contributions:
(i)	One hundred qualifying contributions for a candidate running for the office of state representative;
(ii)	Two hundred qualifying contributions for a candidate running for the office of state senator; and
(B)	Each qualifying contribution shall be:
(i)	Acknowledged by a receipt to the contributor, with a copy to be kept by the candidate and a third copy to be submitted to the commission. The receipt shall indicate, by the contributor’s signature, that the contributor understands that the purpose of the contribution is to help the candidate qualify for public funding of their election campaign. The receipt shall include the contributor’s signature, printed name, home address, zip code, telephone number, and the name of the candidate on whose behalf the contribution is made; and
(ii)	Submitted, with a signed and completed receipt, to the commission according to a schedule and procedure to be determined by the commission. A contribution submitted as a public funding qualifying contribution that does not include a signed and completed receipt will not be counted as a publicly funded election qualifying contribution.
(b) A party candidate qualifies as a publicly-funded candidate for the general election campaign period if:
(1)	That person has met all of the applicable requirements and filed a declaration with the commission by June 30 of the election year that the person has fulfilled and will fulfill all of the requirements of a publicly-funded candidate as stated in this subpart; and
(2)	As a publicly-funded candidate during the primary election campaign period, that person had the highest number of votes of the candidates contesting the primary election from the person’s party and, hence, won the party’s nomination.
§11-B Eligibility for publicly-funded campaign. (a) An independent candidate for state senator or state representative qualifies as a publicly-funded candidate for the primary election campaign period if that person:
(1)	Files a declaration with the commission anytime between January 1 and June 30 of the election year that the person has complied and will comply with all of the requirements of this subpart, as applicable; and
(2)	Meets the following qualifying contribution requirements before the close of the qualifying period:
(A)	Collecting the same number of qualifying contributions as a party candidate shall collect for the same office as provided in section 11-A(a)(2)(A); and
(B)	Ensuring that each publicly-funded campaign qualifying contribution is:
(i)	Acknowledged by a receipt to the contributor, with a copy to be kept by the candidate and a third copy to be submitted to the commission. The receipt shall indicate, by the contributor’s signature, that the contributor understands that the purpose of the contribution is to help the candidate qualify for public funding. The receipt shall include the contributor’s signature, printed name, home address, zip code, telephone number, and the name of the candidate on whose behalf the contribution is made; and
(ii)	Submitted, with a signed and completed receipt, to the commission according to a schedule and procedure to be determined by the commission.
(b) An independent candidate qualifies as a publicly-funded candidate for the general election campaign period, if:
(1)	Prior to the primary election, that person has met all of the applicable requirements of this subpart and filed a declaration with the commission between January 1 and June 30, that the person has fulfilled and will fulfill all of the requirements of a publicly-funded candidate as stated in this subpart; and
(2)	During the primary election campaign period, the person has fulfilled all of the requirements of a publicly-funded candidate as stated in this subpart.
§11-C Continuing obligation of publicly-funded candidates. A publicly-funded candidate who accepts any benefits during the primary election campaign period shall comply with all the applicable requirements of this subpart through the general election campaign period whether that person continues to accept benefits or not.
§11-D Contributions and expenditures. (a) During the primary, general, and special election campaign periods, a publicly-funded candidate who has voluntarily agreed to participate in, and has become eligible for, public funding benefits:
(1)	Shall not accept private contributions from any source other than the candidate’s political party as specified in section 11-M;
(2)	Shall not accept any loans from any source; and
(3)	Shall pay for all of that person’s campaign expenditures, except petty cash expenditures, by means of the commission’s public funding requirements as authorized under section 11-J.
(b) Eligible candidates shall furnish complete campaign records, including all records of seed money contributions and qualifying contributions, to the commission at regular filing times, or on request by the commission. Candidates shall cooperate with any audit or examination by the commission.
§11-E Use of personal funds. (a) Personal funds may be contributed as seed money by a candidate seeking to become eligible as a publicly-funded candidate or by adult members of that person’s immediate family.
(b) Personal funds may not be used to meet the publicly-funded qualifying contribution requirement except for one $3 contribution from each resident within the district from which the candidate is running, including the candidate and any member of the candidate’s immediate family.
(c) For purposes of this section "immediate family" means the same as defined in section 11-191.
§11-F Seed money. (a) The only private contributions a candidate seeking to become eligible for public funding may accept, other than qualifying contributions of $3, are seed money contributions contributed by individual adults prior to the end of the qualifying period.
(b) A seed money contribution shall not exceed $250 including in-kind contributions, and the aggregate amount of seed money contributions accepted by a candidate seeking to become eligible for public funding shall not exceed (1) $4,000 for a candidate running for the office of state senator; and (2) $2,000 for a candidate running for the office of state representative.
(c) Receipts for seed money contributions shall include the contributor's signature, printed name, street address, zip code, telephone number, the amount of the contribution, employer’s name and address, and the publicly-funded candidate’s name for whom the contribution is given. Contributions shall not be accepted if the required disclosure information is not received.
(d) No person shall make a contribution in the name of another person. Any person who receives a seed money contribution that is not from the person listed on the receipt required by subsection (c) shall be liable to pay the commission the entire amount of that contribution, in addition to any penalties.
(e) Seed money shall be spent only during the qualifying period. Seed money may not be spent during the primary, general, or special election campaign periods.
(f) Seed money shall not be spent:
(1)	To pay for the solicitation or collection of qualifying contributions; or
(2)	To pay for broadcast advertising, mass mailings, any salaries, independent contractors, or rent.
(g) Within forty-eight hours after the close of the qualifying period, candidates seeking to become eligible for public funding shall:
(2)	Turn over to the commission for deposit in the Hawaii elections campaign fund any seed money the person has raised during the designated seed money period that exceeds the aggregate seed money limit, and any unspent seed money.
§11-G Certification. (a) The number of candidates certified by the commission shall be limited to three persons in each district on a first-come, first-served basis. A candidate’s application for certification shall be made on forms to be prescribed by the commission.
(b) The candidate’s request for certification shall be signed by the candidate and the candidate’s campaign treasurer under penalty of perjury.
(c) The commission's determination shall be subject to examination and audit by an outside agency and to a prompt judicial review.
(d) No more than ten business days after a candidate applies for public funding benefits, the commission shall certify whether the candidate is eligible. Eligibility may be revoked if the candidate violates the applicable requirements of this subpart, in which case all public funds shall be repaid.
§11-H Benefits provided to candidates eligible to receive public money. Candidates who qualify for public funding for primary, general, and special elections shall receive public funding from the commission for each election, the amount of which is specified in section 11-J. This funding may be used to finance any and all campaign expenses during the particular campaign period for which it was allocated.
§11-I Schedule of public funding payments. (a) An eligible party candidate shall receive public funding for the primary election campaign period on the date on which the commission certifies the candidate as a publicly-funded candidate. This certification shall take place no later than ten business days after the candidate has submitted the required number of qualifying contributions and a declaration stating that the person has complied with all other requirements for eligibility as a publicly-funded candidate, but no earlier than January 1 of the election year.
(b) An eligible party candidate shall receive that person’s public funding for the general or special election campaign period within forty-eight hours after certification of the primary or general election results.
(c) An eligible independent candidate shall receive public funding for the primary election campaign period on the date on which the commission certifies the candidate as a publicly-funded candidate. This certification shall take place no later than ten business days after the candidate has submitted the required number of qualifying contributions and a declaration stating that the person has complied with all other requirements for eligibility as a publicly-funded candidate, but no earlier than January 1 of the election year.
(d) An eligible independent candidate shall receive that person’s public funding for a general or special election campaign period within forty-eight hours after certification of the primary or general election results.
(e) Checks shall be pre-cut and immediately available to meet the requirements above.
§11-J Determination of public funding amounts. For eligible candidates:
(1)	The amount of public funding for a qualified party, independent, or third party candidate in a contested primary election is:
(A)	$20,000 plus $10,000 in equalizing funds, if necessary, for a candidate running for the office of state senator; and
(B)	$10,000, plus $5,000 in equalizing funds, if necessary, for a candidate running for the office of state representative;
(2)	The public funding amount for an eligible party, independent, or third party candidate in an uncontested primary election is twenty-five per cent of the amount provided in a contested primary election;
(3)	The amount of public funding for a qualified party, independent, or third party candidate in the general election is:
(4)	Funds not spent in the primary election can be used in the general election by the successful primary candidate. Money not spent by the losing candidate shall be returned to the Hawaii campaign election fund.
§11-K Expenditures made with public funds. (a) The public funding received by a publicly-funded candidate shall be used only for the purpose of defraying that candidate’s campaign related expenses during the particular election campaign period for which the public funding was allotted.
(b) Payments shall not be used:
(1)	In violation of the law;
(2)	To repay any personal, family, campaign debts, or business loans, expenditures, or debts;
(3)	For any non-campaign-related expenses, or for indirect campaign-related expenses; or
(4)	For salaries, independent contractor contracts, vehicles, or rent. Large capital items in excess of $1,000 shall revert to the campaign spending commission.
§11-L Deposit of moneys into the Hawaii election campaign fund. The following sources of revenue shall be deposited in the fund:
(1)	Any general fund or other revenues appropriated by the legislature;
(2)	The public funding qualifying contributions required of candidates seeking to become certified as publicly-funded candidates according to section 11-A, and candidates’ excess qualifying contributions;
(3)	The excess seed money contributions of candidates seeking to become certified as publicly-funded candidates, as provided in section 11-F;
(4)	Unspent funds distributed to any publicly-funded candidate who does not remain a candidate until the primary, general, or special election for which they were distributed, or such funds that remain unspent by a publicly-funded candidate following the date of the primary, general, or special election for which they were distributed;
(5)	Fines levied by the commission against candidates for violation of election laws;
(6)	Voluntary donations made directly to the publicly-funded elections fund;
(7)	Any interest generated by the fund;
(8)	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;
(9)	Any funds that escheat to the fund;
(10)	Any remaining funds in the Hawaii election campaign fund prior to the enactment of this section; and
(11)	Any other sources of revenue determined necessary by the legislature.
§11-M Political party contributions and expenditures. (a) Publicly-funded candidates may not accept any monetary contributions from political parties.
(b) Publicly-funded candidates may accept in-kind contributions from political parties; provided that the aggregate amount of such contributions from all political party committees combined does not exceed $250 from any source.
(c) In-kind contributions made during a general election campaign period on behalf of a group of the party’s candidates shall not be considered an improper party contribution for the state party committee making such in-kind contributions, if that group includes at least fifty per cent of the party’s legislative candidates whose names will appear on the general election ballot, and does not exceed $1,000 per candidate.
(d) Contributions made to, and expenditures made by, political parties during primary, general, and special campaign periods shall be reported electronically to the commission on the same basis as contributions and expenditures made to or by candidates.
(e) Nothing in this section or this subpart shall prevent political party funds from being used for general operating expenses of the party; conventions; nominating and endorsing candidates; identifying, researching, and developing the party’s positions on issues; party platform activities; noncandidate-specific voter registration; noncandidate-specific "get-out-the- vote" drives; travel expenses for noncandidate party leaders and staff and other noncandidate-specific party building activities.
§11-N Repayments of excess expenditures. (a) If a publicly-funded candidate spends or obligates to spend more than one hundred three percent of the public funding the candidate is allocated, and if this is determined not to be an amount that had or could have been expected to have a significant impact on the outcome of the election, then the candidate shall repay to the elections fund an amount equal to the excess.
(b) If a publicly-funded candidate spends or obligates to spend more than the public funding the candidate is given, then the candidate shall repay to the elections fund an amount equal to three times the value of the excess.
§11-O Sufficiency of funding for elections; commission's rule. The commission shall annually determine:
(1)	The amount of funding required to finance the public funding of all of the contests for the state house of representatives and the state senate;
(2)	The last date before an election on which the decision about whether there is sufficient funding can be made, so that if funding is sufficient, there will be enough time to implement the public financing program; and
(3)	On the date determined in paragraph (2), determine whether there are sufficient funds in the Hawaii election campaign fund to finance the public funding of all of the contests for the state house of representatives and state senate."
SECTION 3. Section 11-191, Hawaii Revised Statutes, is amended by adding twelve new definitions to be appropriately inserted and to read as follows:
""Fund" means the Hawaii election campaign fund.
"General election campaign period" means the period beginning the day after the primary election and ending on the day of the general election.
"Independent candidate" means a candidate who is not a party candidate.
"Non-participating candidate" means a candidate who is on the ballot but has chosen not to apply for public funding, or a candidate who is on the ballot and has applied but has not satisfied the requirements for receiving public funding.
"Party candidate" means a candidate who represents a political party that has been granted ballot status.
"Primary election campaign period" means the period beginning January 1 of the election year and ending on the day of the primary election.
"Public funding, or publicly-funded, qualifying contribution" means a contribution of $3 that is received during the designated publicly-funded qualifying period by a candidate seeking to become eligible for public campaign funding and that is acknowledged by a written receipt identifying the contributor. Contributors shall be registered voters who reside within the candidate’s district. Qualifying contributions shall be made in cash, or by check or money order, and shall be accompanied by a signed receipt fully identifying the contributor and indicating that the contributor fully understands the purpose of the contribution, which shall be turned over to the campaign spending commission for deposit in the Hawaii elections campaign fund. Qualifying contributions must be gathered by candidates themselves or by volunteers who receive no compensation.
"Publicly-funded candidate" means a candidate who qualifies for public campaign funding. Such candidates may receive public funding during primary, general, and special election campaign periods.
"Publicly-funded qualifying period" means the period during which candidates may collect qualifying contributions in order to qualify for public funding, beginning January 1 and running through June 30 of the election year.
"Seed money contribution" means a contribution made by an individual adult during the seed money period.
"Seed money period" means the period beginning the day following the previous general election for that office and ending on the last day of the qualifying period, in which candidates who wish to become eligible for public funding for the next election may raise and spend a limited amount of private seed money, in contributions of up to $250 per individual adult, for the purpose of "testing the waters" and fulfilling the publicly-funded eligibility requirements.
"Special election campaign period" means the period beginning the day after the primary or general election that resulted in the need for a special election, and ending on the day of the special election."
"§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 for the candidate's respective office for each election:
(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[.]; and
(9)	For fully publicly-funded candidates, the provisions of sections 11-A to 11-N shall apply."
SECTION 5. Section 11-227, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Forty-five days before each primary, special primary, special, or general election, and at such other times as may be appropriate, the commission may give public notices to communicate to the public the following:
(1)	A candidate who has signed an affidavit pursuant to section 11-208 to abide by the expenditure limits for the candidate's respective office as imposed by this subpart;
(2)	A candidate who has filed an affidavit to abide by spending limits, but who has exceeded the expenditure limits pursuant to section 11-209[;] or who is a publicly-funded candidate who has failed to comply with the requirements of this subpart;
(3)	A candidate who has failed to file a report required under this subpart, or who has failed to correct a deficient report after notice of the deficiency or failure to file has been mailed to the candidate pursuant to section 11-193(a)(5); and
(4)	Any flagrant violation of any other provision of this subpart."
SECTION 6. Section 12-6, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:
"[[](e)[]] Upon the showing of a certified copy of an affidavit which has been filed with the campaign spending commission pursuant to section 11-208 by a candidate who has voluntarily agreed to abide by spending limits, or by a candidate who has voluntarily agreed to comply with the requirements of sections 11-A to 11-N as a publicly-funded candidate, the chief election officer or clerk shall discount the filing fee of the candidate by the following amounts:
(1)	For the office of governor and lieutenant governor--$675;
(2)	For the office of mayor--$450; and
(3)	For all other offices--$225."
SECTION 7. Section 235-7, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:
"(g) In computing taxable income there shall be allowed as a deduction:
(1)	Political contributions by any taxpayer not in excess of $250 in any year; provided that such contributions are made to a central or county committee of a political party whose candidates shall have qualified by law to be voted for at the immediately previous general election; or
(2)	Political contributions by any individual taxpayer in an aggregate amount not to exceed $1,000 in any year; provided that such contributions are made to candidates as defined in section 11-191, who have agreed to abide by the campaign expenditure limits as set forth in section 11-209[;] or who has qualified as a publicly-funded candidate; and provided further that not more than $250 of an individual's total contribution to any single candidate shall be deductible for purposes of this section."
SECTION 8. In addition to the reports required by section 11-210, Hawaii Revised Statutes, the campaign spending commission and the legislative reference bureau, in cooperation with the League of Women Voters, Common Cause Hawaii, and other relevant stakeholders, shall conduct a comprehensive study of the campaign financing system in Hawaii and other states in the year following the first election under this Act, and shall report to the legislature, no later than twenty days before the convening of the regular session of the year following the year of the study, with the following information about this Act:
(1)	A detailed summary of all seed money contributions, qualifying contributions, public funds disbursements,and public-financed candidate expenditures, spent in the election.
(2)	Suggested amendments to this Act that will extend fully publicly-financed campaigns to all other state and county offices, beginning in .
(3)	An estimate of how much money would be needed to extend fully publicly-financed campaigns to all other state and county offices, beginning in .
(4)	An estimate of how much money would be needed to implement a provision better equalizing public campaign funding to match independent expenditures and any excess expenditures of publicly-funded and non-participating candidates; and
(5)	A summary and evaluation of the commission’s activities, and recommendations to enhance the effective and timely administration and enforcement of this Act.
SECTION 9. 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 10. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 12. This Act shall take effect on July 1, 2001; provided that section 2 of this Act shall not become operative until:
(1)	The campaign spending commission has made its findings pursuant to section 11-O, Hawaii Revised Statutes, and concludes there is sufficient funding and notifies the governor of this fact;
(2)	The governor, upon receipt of notice of sufficient funding, issues an executive order making the provisions of section 2 of this Act operational, and publishes a notice statewide to that effect; and
(3)	Upon the occurrence of the events in paragraphs (1) and (2), section 2 of this Act shall become operative and apply to the next election cycle in which the primary election date is at least six months after the date of the issuance of the executive order.