REPORT TITLE:
Elections


DESCRIPTION:
Amends campaign spending laws relating to the reporting of
contributions, political party contributions, and direct public
funding for election campaigns of candidates.  Appropriates
funds.  Establishes a "clean money" fund.  Repeals clean
elections pilot program.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            600         
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO ELECTIONS. 


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

 1      SECTION 1.  Findings and purpose.  (a)  The legislature
 
 2 finds and declares that the current method of financing election
 
 3 campaigns undermines democracy in Hawaii in the following
 
 4 principal ways:
 
 5      (1)  It threatens the democratic principle of "one person,
 
 6           one vote" by allowing large contributors to have a
 
 7           disproportionate and therefore deleterious influence on
 
 8           the political process, and diminishes the rights of
 
 9           citizens of all backgrounds to equal and meaningful
 
10           participation in the democratic process;
 
11      (2)  It drives up the cost of election campaigns, making it
 
12           difficult for qualified candidates without personal
 
13           fortunes or access to large contributions to mount
 
14           competitive campaigns;
 
15      (3)  It weakens the ability of voters and candidates to hear
 
16           and to be heard in the political process, and
 
17           undermines the core democratic ideal of open and robust
 
18           debate on issues of public concern;
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      (4)  It fuels the public perception of corruption and
 
 2           undermines public confidence in democratic institutions
 
 3           and processes, and creates a danger of corruption by
 
 4           encouraging elected officials and other candidates to
 
 5           take money from private interests that are directly
 
 6           affected by government actions;
 
 7      (5)  It diminishes the accountability of elected officials
 
 8           to their constituents by encouraging them to be
 
 9           disproportionately accountable to the major
 
10           contributors who finance their election campaigns;
 
11      (6)  It disadvantages challengers, who are outspent by more
 
12           than two-to-one on average by incumbents, discouraging
 
13           average citizens from running for office and leading to
 
14           less competitive elections; and
 
15      (7)  It burdens candidates with the incessant rigors of
 
16           fundraising and thus decreases the time available to
 
17           them to carry out their public responsibilities.
 
18      (b)  The legislature further finds and declares that
 
19 providing a voluntary "clean" elections system for all primary
 
20 and general elections would enhance democracy in Hawaii in the
 
21 following principal ways:
 
22      (1)  It would affirm the principle of "one person, one
 
23           vote", reduce the disproportionate and deleterious
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1           influence of large contributors, and restore the rights
 
 2           of citizens of all backgrounds to equal and meaningful
 
 3           participation in the democratic process;
 
 4      (2)  It would halt the escalating cost of elections;
 
 5      (3)  It would enable voters and candidates to hear and be
 
 6           heard in the political process, and restore open and
 
 7           robust debate on issues of public concern;
 
 8      (4)  It would diminish the public perception of corruption,
 
 9           strengthen public confidence in democratic institutions
 
10           and processes, and eliminate the danger of corruption
 
11           caused by the private financing of election campaigns;
 
12      (5)  It would increase the accountability of elected
 
13           officials to the constituents who elect them;
 
14      (6)  It would create genuine opportunities for qualified
 
15           residents of the State to run for state and local
 
16           office, and encourage more competitive elections; and
 
17      (7)  It would free candidates from the incessant rigors of
 
18           raising money and allow them more time to carry out
 
19           their official duties.
 
20      SECTION 2.  Chapter 11, Hawaii Revised Statutes, is amended
 
21 by adding twenty-nine new sections to part XII, subpart B, to be
 
22 appropriately designated and to read as follows:
 

 
 
 
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 1      "�11-A  Campaign contributions; limits as to location.
 
 2 Notwithstanding any law to the contrary, no campaign
 
 3 contributions may be accepted or solicited on any state or county
 
 4 government owned or leased property, including but not limited to
 
 5 the capitol premises.
 
 6      �11-B  Certain political activity prohibited.
 
 7 Notwithstanding any law to the contrary, no employee of any state
 
 8 executive department specified in section 26-4, other than a
 
 9 cabinet appointee, may engage in any of the following activities:
 
10      (1)  Use official authority to influence an election;
 
11      (2)  Solicit, accept, or receive political contributions;
 
12      (3)  Encourage or discourage political activity of any
 
13           person who has business before the agency;
 
14      (4)  Engage in political activity while on duty;
 
15      (5)  Run for public office as a candidate in a partisan
 
16           election; and
 
17      (6)  Wear political buttons while on duty.
 
18      �11-C  Eligibility for clean money campaign funding for
 
19 party candidates.  (a)  A party candidate qualifies as a clean
 
20 money candidate for the primary election campaign period if that
 
21 person:
 

 
 
 
 
 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      (1)  Files a declaration with the commission that the person
 
 2           has complied and will comply with all of the
 
 3           requirements of this subpart, as applicable; and
 
 4      (2)  Meets the following qualifying contribution
 
 5           requirements before the close of the clean money
 
 6           qualifying period:
 
 7           (A)  A party candidate must collect at least the
 
 8                following number of qualifying contributions:
 
 9                (i)  One hundred qualifying contributions for a
 
10                     candidate running for the office of state
 
11                     representative;
 
12               (ii)  Two hundred qualifying contributions for a
 
13                     candidate running for the office of state
 
14                     senator;
 
15              (iii)  Five hundred qualifying contributions for a
 
16                     candidate running for the office of
 
17                     lieutenant governor;
 
18               (iv)  One thousand qualifying contributions for a
 
19                     candidate running for the office of governor;
 
20                (v)  Five hundred qualifying contributions for a
 
21                     candidate running for the office of mayor and
 
22                     prosecuting attorney in a county having more
 
23                     than one hundred thousand registered voters;
 

 
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 1               (vi)  Three hundred qualifying contributions for a
 
 2                     candidate running for the office of mayor and
 
 3                     prosecuting attorney in a county having less
 
 4                     than one hundred thousand registered voters;
 
 5              (vii)  Two hundred qualifying contributions for a
 
 6                     candidate running for the office of county
 
 7                     council in a county having more than one
 
 8                     hundred thousand registered voters;
 
 9             (viii)  One hundred qualifying contributions for a
 
10                     candidate running for the office of county
 
11                     council in a county having less than one
 
12                     hundred thousand registered voters; or
 
13               (ix)  One hundred qualifying contributions for a
 
14                     candidate running for the board of education
 
15                     and office of Hawaiian affairs;
 
16                and
 
17           (B)  Each qualifying contribution shall be:
 
18                (i)  Acknowledged by a receipt to the contributor,
 
19                     with a copy to be kept by the candidate and a
 
20                     third copy to be submitted  to the
 
21                     commission.  The receipt shall indicate, by
 
22                     the contributor's signature, that the
 
23                     contributor understands that the purpose of
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1                     the contribution is to help the candidate
 
 2                     qualify for clean money campaign funding.
 
 3                     The receipt shall include the contributor's
 
 4                     signature, printed name, home address, and
 
 5                     telephone number, and the name of the
 
 6                     candidate on whose behalf the contribution is
 
 7                     made; and
 
 8               (ii)  Submitted, with a signed and completed
 
 9                     receipt, to the commission according to a
 
10                     schedule and procedure to be determined by
 
11                     the commission.  A contribution submitted as
 
12                     a qualifying contribution that does not
 
13                     include a signed and completed receipt will
 
14                     not be counted as a qualifying contribution.
 
15      (b)  A party candidate qualifies as a clean money candidate
 
16 for the general election campaign period if:
 
17      (1)  That person has met all of the applicable requirements
 
18           and filed a declaration with the commission that the
 
19           person has fulfilled and will fulfill all of the
 
20           requirements of a clean money candidate as stated in
 
21           this subpart; and
 
22      (2)  As a clean money candidate during the primary election
 
23           campaign period, that person had the highest number of
 

 
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 1           votes of the candidates contesting the primary election
 
 2           from the person's respective party and, hence, won the
 
 3           party's nomination.
 
 4      �11-D  Eligibility for clean money campaign.  (a)  An
 
 5 independent candidate qualifies as a clean money candidate for
 
 6 the primary election campaign period if that person:
 
 7      (1)  Files a declaration with the commission that the person
 
 8           has complied and will comply with all of the
 
 9           requirements of this subpart, as applicable; and
 
10      (2)  Meets the following qualifying contribution
 
11           requirements before the close of the clean money
 
12           qualifying period:
 
13           (A)  An independent candidate must collect the same
 
14                number of qualifying contributions as a party
 
15                candidate must collect for the same office as
 
16                provided in section 11-C(a)(2)(A);
 
17           and
 
18           (B)  Each qualifying contribution shall be:
 
19                (i)  Acknowledged by a receipt to the contributor,
 
20                     with a copy to be kept by the candidate and a
 
21                     third copy to be submitted to the commission.
 
22                     The receipt shall indicate, by the
 
23                     contributor's signature, that the contributor
 
24                     understands that the purpose of the
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1                     contribution is to help the candidate qualify
 
 2                     for clean money campaign funding.  The
 
 3                     receipt shall include the contributor's
 
 4                     signature, printed name, home address, and
 
 5                     telephone number, and the name of the
 
 6                     candidate on whose behalf the contribution is
 
 7                     made; and
 
 8               (ii)  Submitted, with a signed and completed
 
 9                     receipt, to the commission according to a
 
10                     schedule and procedure to be determined by
 
11                     the commission.
 
12      (b)  An independent candidate qualifies as a clean money
 
13 candidate for the general election campaign period, if:
 
14      (1)  Prior to the primary election, that person has met all
 
15           of the applicable requirements of this subpart and
 
16           filed a declaration with the commission that the person
 
17           has fulfilled and will fulfill all of the requirements
 
18           of a clean money candidate as stated in this subpart;
 
19           and
 
20      (2)  During the primary election campaign period, the person
 
21           has fulfilled all of the requirements of a clean money
 
22           candidate as stated in this subpart.
 

 
 
 
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 1      �11-E  Transition rule for current election cycle.  During
 
 2 the election cycle in effect on July 1, 1999, a candidate may be
 
 3 certified as a clean money candidate, notwithstanding the
 
 4 acceptance of contributions or making of expenditures from
 
 5 private funds before that date that would disqualify the
 
 6 candidate as a clean money candidate; provided that any private
 
 7 funds accepted but not expended before that date shall be
 
 8 returned to the contributor or submitted to the commission for
 
 9 deposit in the clean money fund.
 
10      �11-F  Continuing obligation of clean money candidates.  A
 
11 clean money candidate who accepts any benefits during the primary
 
12 election campaign period shall comply with all the applicable
 
13 requirements of this subpart through the general election
 
14 campaign period whether that person continues to accept benefits
 
15 or not.
 
16      �11-G  Contributions and expenditures.  (a)  During the
 
17 primary, general, and special election campaign periods, a clean
 
18 money candidate who has voluntarily agreed to participate in, and
 
19 has become eligible for, clean money benefits, shall not accept
 
20 private contributions from any source other than the candidate's
 
21 political party as specified in section 11-AA(b).
 
22      (b)  During the primary, general, and special election
 
23 campaign periods, a clean money candidate who has voluntarily
 

 
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 1 agreed to participate in, and has become eligible for, clean
 
 2 money benefits, shall not accept any loans from any source.
 
 3      (c)  During the primary, general, and runoff election
 
 4 campaign periods, a clean money candidate shall pay for all of
 
 5 that person's campaign expenditures, except petty cash
 
 6 expenditures, by means of the commission's clean money debit card
 
 7 as authorized under section 11-Z(a).
 
 8      (d)  Eligible candidates shall furnish complete campaign
 
 9 records, including all records of seed money contributions and
 
10 qualifying contributions, to the commission at regular filing
 
11 times, or on request by the commission.  Candidates shall
 
12 cooperate with any audit or examination by the commission.
 
13      �11-H  Use of personal funds.  (a)  Personal funds
 
14 contributed as seed money by a candidate seeking to become
 
15 eligible as a clean money candidate or by adult members of that
 
16 person's immediate family shall not exceed the maximum of $100
 
17 per contributor.
 
18      (b)  Personal funds may not be used to meet the qualifying
 
19 contribution requirement except for one $5 contribution from each
 
20 resident voter, including the candidate and any member of the
 
21 candidate's immediate family.
 
22      �11-I  Seed money.  (a)  The only private contributions a
 
23 candidate seeking to become eligible for clean money funding may
 

 
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 1 accept, other than qualifying contributions, are seed money
 
 2 contributions contributed by individual adults prior to the end
 
 3 of the clean money qualifying period.
 
 4      (b)  A seed money contribution shall not exceed $100, and
 
 5 the aggregate amount of seed money contributions accepted by a
 
 6 candidate seeking to become eligible for clean money funding
 
 7 shall not exceed:
 
 8      (1)  $500 for a candidate running for the office of state
 
 9           representative;
 
10      (2)  $1,000 for a candidate running for the office of state
 
11           senator;
 
12      (3)  $5,000 for a candidate running for the office of
 
13           lieutenant governor;
 
14      (4)  $10,000 for a candidate running for the office of
 
15           governor;
 
16      (5)  $2,500 for a candidate running for mayor or prosecuting
 
17           attorney in a county having one hundred thousand
 
18           registered voters or more;
 
19      (6)  $1,000 for a candidate running for the office of mayor
 
20           or prosecuting attorney in a county having less than
 
21           one hundred thousand registered voters;
 

 
 
 
 
 
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 1      (7)  $1,000 for a candidate running for the office of county
 
 2           council in a county having one hundred thousand
 
 3           registered voters or more;
 
 4      (8)  $500 for a candidate running for the office of county
 
 5           council in a county having less than one hundred
 
 6           thousand registered voters; and
 
 7      (9)  $1,000 for a candidate running for the board of
 
 8           education or office of Hawaiian affairs.
 
 9      (c)  Receipts for seed money contributions under $25 need
 
10 only include the contributor's signature, printed name, and
 
11 address.  Receipts for seed money contributions of $25 or more
 
12 must include the contributor's signature, printed name, street
 
13 address and zip code, telephone number, occupation, and name of
 
14 employer.  Contributions shall not be accepted if the required
 
15 disclosure information is not received.
 
16      (d)  No person shall make a contribution in the name of
 
17 another person.  Any person who receives a seed money
 
18 contribution that is not from the person listed on the receipt
 
19 required by subsection (c) shall be liable to pay the commission
 
20 the entire amount of that contribution, in addition to any
 
21 penalties.
 

 
 
 
 
 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      (e)  Seed money shall be spent only during the clean money
 
 2 qualifying period.  Seed money may not be spent during the
 
 3 primary, general, or runoff election campaign periods.
 
 4      (f)  Seed money may not be spent:
 
 5      (1)  To pay for the solicitation or collection of qualifying
 
 6           contributions; or
 
 7      (2)  For broadcast advertising or mass mailings.
 
 8      (g)  Within forty-eight hours after the close of the clean
 
 9 money qualifying period, candidates seeking to become eligible
 
10 for clean money funding shall:
 
11      (1)  Fully disclose electronically all seed money
 
12           contributions and expenditures to the commission; and
 
13      (2)  Turn over to the commission for deposit in the clean
 
14           money fund any seed money the person has raised during
 
15           the designated seed money period that exceeds the
 
16           aggregate seed money limit.
 
17      �11-J  Participation in debates.  (a)  Clean money
 
18 candidates in contested races shall participate in one, one-hour
 
19 debate during a contested primary election, two, one-hour debates
 
20 during a contested general election, and one, one-hour debate
 
21 during a special election.
 
22      (b)  These debates shall be publicly presented live on the
 
23 cable access channel dedicated to public programming and publicly
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 broadcast on broadcast stations which voluntarily agree to
 
 2 participate as provided in section 11-T.
 
 3      (c)  Nonparticipating candidates for the same office whose
 
 4 names will appear on the ballot shall be invited to join the
 
 5 debates as provided in section 11-T.
 
 6      �11-K  Media use.  Clean money candidates utilizing free
 
 7 media time as provided in section 11-U shall choose free time
 
 8 slots in units of one to five minutes each, and shall appear in
 
 9 person and use their own voice on radio for at least fifty per
 
10 cent of the broadcast time.
 
11      �11-L  Certification.  (a)  No more than five days after a
 
12 candidate applies for clean money benefits, the commission shall
 
13 certify that the candidate is or is not eligible.  Eligibility
 
14 may be revoked if the candidate violates the applicable
 
15 requirements of this subpart, in which case all clean money funds
 
16 shall be repaid.
 
17      (b)  The candidate's request for certification shall be
 
18 signed by the candidate and the candidate's campaign treasurer
 
19 under penalty of perjury.
 
20      (c)  The commission's determination shall be subject to
 
21 examination and audit by an outside agency and to a prompt
 
22 judicial review.
 

 
 
 
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 1      �11-M  Benefits provided to candidates eligible to receive
 
 2 clean money.  (a)  Candidates who qualify for clean money funding
 
 3 for primary, general, and special elections shall receive:
 
 4      (1)  Clean money funding from the commission for each
 
 5           election, the amount of which is specified in section
 
 6           11-O.  This funding may be used to finance any and all
 
 7           campaign expenses during the particular campaign period
 
 8           for which it was allocated;
 
 9      (2)  Media benefits and mailing privileges as provided for
 
10           in sections 11-T to 11-W;
 
11      (3)  Additional clean money funding to match any excess
 
12           expenditure amount spent by a nonparticipating
 
13           candidate, as specified in section 11-Q(d); and
 
14      (4)  Additional clean money funding to match any independent
 
15           expenditure made in opposition to their candidacies or
 
16           on behalf of their opponents' candidacies, as specified
 
17           in section 11-R.
 
18      (b)  The maximum aggregate amount of additional funding a
 
19 clean money candidate shall receive to match independent
 
20 expenditures and the excess expenditures of nonparticipating
 
21 candidates shall be two hundred per cent of the full amount of
 
22 clean money funding allocated to a clean money candidate for a
 
23 particular primary, general, or special election campaign period.
 

 
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 1      �11-N  Schedule of clean money payments.  (a)  An eligible
 
 2 party candidate shall receive that person's clean money funding
 
 3 for the primary election campaign period on the date on which the
 
 4 commission certifies the candidate as a clean money candidate.
 
 5 This certification shall take place no later than five days after
 
 6 the candidate has submitted the required number of qualifying
 
 7 contributions and a declaration stating that the person has
 
 8 complied with all other requirements for eligibility as a clean
 
 9 money candidate, but no earlier than the beginning of the primary
 
10 election campaign period.
 
11      (b)  An eligible party candidate shall receive that person's
 
12 clean money funding for the general or special election campaign
 
13 period within forty-eight hours after certification of the
 
14 primary or general election results.
 
15      (c)  An eligible independent candidate shall receive that
 
16 person's clean money funding for the primary election campaign
 
17 period on the date on which the commission certifies the
 
18 candidate as a clean money candidate.  This certification shall
 
19 take place no later than five days after the candidate has
 
20 submitted the required number of qualifying contributions and a
 
21 declaration stating that the person has complied with all other
 
22 requirements for eligibility as a clean money candidate, but no
 

 
 
 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 earlier than the beginning of the primary election campaign
 
 2 period.
 
 3      (d)  An eligible independent candidate shall receive that
 
 4 person's clean money funding for a general or special election
 
 5 campaign period within forty-eight hours after certification of
 
 6 the general election results.
 
 7      �11-O  Determination of clean money amounts.  (a)  Clean
 
 8 money amounts for eligible party candidates shall be determined
 
 9 as follows:
 
10      (1)  The amount of clean money funding for an eligible party
 
11           candidate in a contested primary election is:
 
12           (A)  $10,000 for a candidate running for the office of
 
13                state representative;
 
14           (B)  $20,000 for a candidate running for the office of
 
15                state senator;
 
16           (C)  $250,000 for a candidate running for the office of
 
17                lieutenant governor;
 
18           (D)  $500,000 for a candidate running for the office of
 
19                governor;
 
20           (E)  $250,000 for a candidate running for mayor or
 
21                prosecuting attorney in a county having one
 
22                hundred thousand registered voters or more;
 

 
 
 
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                                     H.B. NO.           
                                                        
                                                        

 
 1           (F)  $50,000 for a candidate running for the office of
 
 2                mayor or prosecuting attorney in a county having
 
 3                less than one hundred thousand registered voters;
 
 4           (G)  $30,000 for a candidate running for the office of
 
 5                county council in a county having one hundred
 
 6                thousand registered voters or more;
 
 7           (H)  $20,000 for a candidate running for the office of
 
 8                county council in a county having less than one
 
 9                hundred thousand registered voters; and
 
10           (I)  $20,000 for a candidate running for the board of
 
11                education or office of Hawaiian affairs;
 
12      (2)  The clean money amount for an eligible party candidate
 
13           in an uncontested primary election is twenty-five per
 
14           cent of the amount provided in a contested primary
 
15           election;
 
16      (3)  In a contested general election, if an eligible party
 
17           candidate or that candidate's party received at least
 
18           twenty per cent of the total number of votes cast for
 
19           all candidates seeking that office in the primary
 
20           election or in the previous general election, the
 
21           candidate shall receive the full amount of clean money
 
22           funding for the general election, which is:
 

 
 
 
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                                     H.B. NO.           
                                                        
                                                        

 
 1           (A)  $10,000 for a candidate running for the office of
 
 2                state representative;
 
 3           (B)  $20,000 for a candidate running for the office of
 
 4                state senator;
 
 5           (C)  $250,000 for a candidate running for the office of
 
 6                lieutenant governor;
 
 7           (D)  $500,000 for a candidate running for the office of
 
 8                governor;
 
 9           (E)  $250,000 for a candidate running for mayor or
 
10                prosecuting attorney in a county having one
 
11                hundred thousand registered votes or more;
 
12           (F)  $50,000 for a candidate running for the office of
 
13                mayor or prosecuting attorney in a county having
 
14                less than one hundred thousand registered voters;
 
15           (G)  $30,000 for a candidate running for the office of
 
16                county council in a county having one hundred
 
17                thousand registered voters or more;
 
18           (H)  $20,000 for a candidate running for the office of
 
19                county council in a county having less than one
 
20                hundred thousand registered voters; and
 
21           (I)  $20,000 for a candidate running for the board of
 
22                education and office of Hawaiian affairs;
 

 
 
 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      (4)  In a contested general election, if an eligible party
 
 2           candidate or that candidate's party received at least
 
 3           five per cent but less than twenty per cent of the
 
 4           total number of votes cast for all candidates seeking
 
 5           that office in the primary election or in the previous
 
 6           general election, the candidate shall receive a portion
 
 7           of the full amount of clean money based on the ratio
 
 8           that their vote percentage is to twenty per cent;
 
 9      (5)  The clean money amount for an eligible party candidate
 
10           in an uncontested general election is five per cent of
 
11           the amount provided in a contested general election for
 
12           the same office; and
 
13      (6)  The clean money amount for an eligible party candidate
 
14           in a special election is twenty-five per cent of the
 
15           amount provided in the preceding primary or general
 
16           election that resulted in the need for a special
 
17           election.
 
18      (b)  Clean money amounts for eligible independent candidates
 
19 shall be determined as follows:
 
20      (1)  The clean money amount for an eligible independent
 
21           candidate in a primary election is twenty-five per cent
 
22           of the amount received by a party candidate in a
 
23           contested primary election; and
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      (2)  The clean money amount for an eligible independent
 
 2           candidate in the general election is the same as the
 
 3           full amount received by a party candidate in the
 
 4           general election.
 
 5      (c)  After the first cycle of clean money elections, the
 
 6 commission shall modify all clean money amounts based on the rate
 
 7 of inflation or the cost-of-living index, as determined by the
 
 8 commission in rules adopted under chapter 91.
 
 9      �11-P  Expenditures made with clean money funds.  (a)  The
 
10 clean money funding received by a clean money candidate shall be
 
11 used only for the purpose of defraying that candidate's campaign
 
12 related expenses during the particular election campaign period
 
13 for which the clean money funding was allotted.
 
14      (b)  Payments shall not be used:
 
15      (1)  In violation of the law; or
 
16      (2)  To repay any personal, family, or business loans,
 
17           expenditures, or debts.
 
18      �11-Q  Disclosure of excess spending by nonparticipating
 
19 candidates.  (a)  If a nonparticipating candidate's total
 
20 expenditures exceed the amount of clean money funding allocated
 
21 to that person's clean money opponents, that person shall declare
 
22 every excess expenditure amount over $1,000 to the commission
 
23 within forty-eight hours.
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      (b)  During the last two weeks before the end of the
 
 2 relevant campaign period, a nonparticipating candidate must
 
 3 declare to the commission each excess expenditure amount over
 
 4 $500 within twenty-four hours of the time the expenditure is made
 
 5 or obligated to be made.
 
 6      (c)  The commission may make its own determination as to
 
 7 whether excess expenditures have been made by nonparticipating
 
 8 candidates.
 
 9      (d)  Upon receiving an excess expenditure declaration, the
 
10 commission shall immediately release additional clean money
 
11 funding to the opposing clean money candidates equal to the
 
12 excess expenditure amount the nonparticipating candidate has
 
13 spent or intends to spend.
 
14      �11-R  Disclosure of, and additional clean money to match
 
15 independent expenditures.  (a)  Any person who makes or is
 
16 obligated to make an independent expenditure during a primary,
 
17 general, or special election campaign period in excess of $1,000
 
18 per expenditure shall report each expenditure within forty-eight
 
19 hours to the commission.  Reporting shall be on forms provided by
 
20 the commission, and shall require the names, address, occupation,
 
21 employer, and amount paid for those persons who contributed more
 
22 than $250 each to the independent expenditure.
 

 
 
 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      (b)  The report to the commission shall include a statement,
 
 2 made under penalty of perjury, by the person or persons making
 
 3 the independent expenditure identifying the candidate whom the
 
 4 independent expenditure is intended to help elect or defeat, and
 
 5 affirming that the expenditure is totally independent and
 
 6 involves no cooperation or coordination with a candidate or a
 
 7 political party.  A person may file a complaint with the
 
 8 commission if the person believes that such a statement is false.
 
 9 The commission shall make a prompt determination about the merits
 
10 of the complaint.
 
11      (c)  Any person who makes or is obligated to make an
 
12 independent expenditure during the last two weeks before the end
 
13 of the relevant campaign period shall declare to the commission
 
14 each excess expenditure amount over $500 within twenty-four hours
 
15 of the time the expenditure is made or obligated to be made.
 
16      (d)  Upon receiving a report that an independent expenditure
 
17 has been made or is obligated to be made, the commission shall
 
18 immediately release additional clean money funding, equal in
 
19 amount to the cost of the independent expenditure, to all clean
 
20 money candidates whom the independent expenditure is intended to
 
21 oppose or defeat; provided that the maximum aggregate amount of
 
22 additional funding a clean money candidate shall receive to match
 
23 independent expenditures and the excess expenditures of
 

 
Page 25                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1 nonparticipating candidates is no more than two hundred per cent
 
 2 of the full amount of clean money funding allocated to a clean
 
 3 money candidate in that election.  Matching money is only granted
 
 4 to a clean money candidate if that person is opposed by a
 
 5 nonparticipating candidate whose campaign expenditures, combined
 
 6 with the amount of the independent expenditures, exceeds the
 
 7 amount of clean money funding received by the clean money
 
 8 candidate.
 
 9      �11-S  Voter information commission.  (a)  The commission
 
10 shall establish and administer a nonpartisan voter information
 
11 commission consisting of representatives of nonprofit
 
12 organizations, political parties, the media, and interested
 
13 citizens.
 
14      (b)  The voter information commission shall be authorized to
 
15 establish a voter information program for the purpose of
 
16 providing voters with election-related information and fostering
 
17 political dialogue and debate.
 
18      (c)  The voter information commission shall organize the
 
19 publication and distribution of a voter information guide that
 
20 includes:
 
21      (1)  Important information about candidates appearing on the
 
22           ballot, including biographical material submitted by
 
23           the candidates;
 

 
Page 26                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1      (2)  Whether candidates are funding their campaigns with
 
 2           public or private money;
 
 3      (3)  Policy statements by the candidates and their political
 
 4           parties on issues designated by the voter information
 
 5           commission and other issues; and
 
 6      (4)  When pertinent, candidates' voting records.
 
 7      �11-T  Televised debates.  (a)  The public access cable
 
 8 television stations shall make available, as a condition of their
 
 9 state funding, free coverage for candidate debates in contested
 
10 primary, general, and special elections as follows:
 
11      (1)  At a minimum, the public access cable stations shall
 
12           broadcast, and clean money candidates shall participate
 
13           in, one, one-hour debate during a contested primary
 
14           election, two, one-hour debates during a contested
 
15           general election, and one, one-hour debate during a
 
16           special election; and
 
17      (2)  The public broadcasting station and privately-owned
 
18           broadcast stations are also requested to voluntarily
 
19           cooperate with one another to carry all debates live as
 
20           a public service for public viewing and edification.
 
21           If broadcast stations do not participate in this public
 
22           service, the commission shall report that fact to the
 
23           Federal Communications Commission as information
 

 
Page 27                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1           relevant to license renewal about that station's
 
 2           willingness to support public purposes with publicly-
 
 3           owned airwaves.
 
 4      (b)  All clean money candidates are required to participate
 
 5 in the debates and all nonparticipating candidates for the same
 
 6 office whose names will appear on the ballot shall be invited to
 
 7 join the debates.
 
 8      �11-U  Free cable media advertising.  (a)  The public access
 
 9 cable stations, as a condition of any further state funding,
 
10 shall make available free time to clean money candidates in
 
11 addition to the time allotted for the broadcasting of public
 
12 debates as follows:
 
13      (1)  Each clean money candidate for the state senate shall
 
14           be allotted ten minutes for the primary campaign,
 
15           fifteen minutes for the general election campaign, and
 
16           fifteen minutes for a run-off election campaign; and
 
17      (2)  Each clean money candidate for the state house of
 
18           representatives shall be allotted ten minutes for the
 
19           primary campaign, fifteen minutes for the general
 
20           election campaign, and fifteen minutes for a special
 
21           election campaign.
 
22      (b)  Clean money candidates using free cable media time
 
23 shall:
 

 
Page 28                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1      (1)  Choose free time slots in units of one to five minutes
 
 2           each;
 
 3      (2)  Appear in person on television; and
 
 4      (3)  Use their own voice on television and radio, for at
 
 5           least fifty per cent of the broadcast time.
 
 6 If a clean money candidate has a physician-certified voice-
 
 7 related disability, this requirement may be waived and a brief
 
 8 statement added by the candidate or the candidate's
 
 9 representative saying that the candidate has approved the
 
10 advertisement.
 
11      �11-V  Paid broadcast media advertising.  Clean money
 
12 candidates, as a condition of receiving benefits under this
 
13 subpart, may purchase television and radio time only in blocks of
 
14 one minute or more, and shall appear in person on television and
 
15 use their own voice on radio for at least fifty per cent of the
 
16 broadcast time.  If a clean money candidate has a physician-
 
17 certified voice-related disability, this requirement may be
 
18 waived and a brief statement added by the candidate or the
 
19 candidate's representative saying that the candidate has approved
 
20 the advertisement.
 
21      �11-W  Elected officials; limit on use of mailing
 
22 privileges.  (a)  Except as provided in subsection (b), an
 
23 elected official shall not mail any mass mailings at government
 

 
Page 29                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1 expense during the period between January 1 of the election year
 
 2 and the date of the general election for that office, unless the
 
 3 candidate has made a public announcement that the candidate will
 
 4 not be a candidate for reelection to that office or to any other
 
 5 county, state, or federal office.
 
 6      (b)  An elected official who is or intends to become a
 
 7 candidate for reelection may mail a mass mailing at government
 
 8 expense at any time during that person's term of office if:
 
 9      (1)  The sole purpose of the mailing is to communicate
 
10           information about a public meeting; and
 
11      (2)  The content of the mailing includes only the elected
 
12           official's name, the date, time, and place of the
 
13           public meeting and, if appropriate, a list of the
 
14           topics to be addressed at the meeting.
 
15      (c)  The normal mailing privilege for elected officials
 
16 remains applicable to mailings not covered under the definition
 
17 of "mass mailing".
 
18      �11-X  Clean money fund; established.  A special, dedicated,
 
19 nonlapsing clean money fund is established in the state treasury
 
20 for the purpose of:
 
21      (1)  Providing public financing for the election campaigns
 
22           of certified clean money candidates during primary,
 
23           general, and special campaign periods; and
 

 
Page 30                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1      (2)  Paying for the administrative and enforcement costs of
 
 2           the campaign spending commission related to this
 
 3           subpart.
 
 4      �11-Y  Sources of revenue for the fund.  The following
 
 5 sources of revenue shall be deposited in the fund:
 
 6      (1)  Any general fund or other revenues appropriated by the
 
 7           legislature;
 
 8      (2)  The qualifying contributions required of candidates
 
 9           seeking to become certified as clean money candidates
 
10           according to section 11-C, and candidates' excess
 
11           qualifying contributions;
 
12      (3)  The excess seed money contributions of candidates
 
13           seeking to become certified as clean money candidates,
 
14           as provided in section 11-I;
 
15      (4)  Unspent funds distributed to any clean money candidate
 
16           who does not remain a candidate until the primary,
 
17           general, or special election for which they were
 
18           distributed, or such funds that remain unspent by a
 
19           clean money candidate following the date of the
 
20           primary, general, or special election for which they
 
21           were distributed;
 
22      (5)  Fines levied by the commission against candidates for
 
23           violation of election laws;
 

 
Page 31                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1      (6)  Voluntary donations made directly to the clean money
 
 2           fund;
 
 3      (7)  Any interest generated by the fund;
 
 4      (8)  All moneys collected from persons who have designated a
 
 5           portion of their income tax liability to the fund as
 
 6           provided in section 235-102.5;
 
 7      (9)  Any funds that escheat to the fund;
 
 8     (10)  Any remaining funds in the Hawaii election campaign
 
 9           fund prior to the enactment of this section; and
 
10     (11)  Any other sources of revenue determined necessary by
 
11           the legislature.
 
12      �11-Z  Administration and dispersal of money from the fund.
 
13 (a)  Upon determination that a candidate has met all of the
 
14 requirements for becoming a clean money candidate as provided for
 
15 in this subpart, the commission shall issue to the candidate a
 
16 card, known as the "clean money debit card", and a line of debit
 
17 entitling the candidate and authorized members of the candidate's
 
18 staff to draw clean money funds from a commission account to pay
 
19 for all campaign costs and expenses up to the amount of clean
 
20 money funding the candidate has received.  In the case of utility
 
21 bills and wages or fees for services, these expenditures shall be
 
22 reported at the time of obligation and paid off within forty-five
 

 
 
 
Page 32                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1 days after the election is over or the candidate ceases to be a
 
 2 clean money candidate.
 
 3      (b)  Neither a clean money candidate nor any other person on
 
 4 behalf of a clean money candidate shall pay campaign costs by
 
 5 cash, check, money order, loan, or by any other financial means
 
 6 besides the clean money debit card, except as otherwise provided
 
 7 by law.
 
 8      (c)  Cash amounts of $100 or less per week may be drawn on
 
 9 the clean money debit card and used to pay expenses of no more
 
10 than $25 each.  Records of all such expenditures shall be
 
11 maintained and reported to the commission.
 
12      �11-AA  Political party contributions and expenditures.  (a)
 
13 Clean money candidates may not accept any monetary contributions
 
14 from political parties.
 
15      (b)  Clean money candidates may accept in-kind contributions
 
16 from political parties; provided that the aggregate amount of
 
17 such contributions from all political party committees combined
 
18 does not exceed the equivalent of ten per cent of the clean money
 
19 financing amount for that office.
 
20      (c)  In-kind contributions made during a general election
 
21 campaign period on behalf of a group of the party's candidates
 
22 shall not be considered an improper party contribution or count
 
23 against the ten per cent limit for the state party committee
 

 
Page 33                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1 making such in-kind contributions, if that group includes at
 
 2 least fifty per cent of the candidates whose names will appear on
 
 3 the general election ballot.
 
 4      (d)  Contributions made to, and expenditures made by,
 
 5 political parties during primary, general, and special campaign
 
 6 periods shall be reported electronically to the commission on the
 
 7 same basis as contributions and expenditures made to or by
 
 8 candidates.
 
 9      (e)  Nothing in this section or this subpart shall prevent
 
10 political party funds from being used for general operating
 
11 expenses of the party; conventions; nominating and endorsing
 
12 candidates; identifying, researching, and developing the party's
 
13 positions on issues; party platform activities; noncandidate-
 
14 specific voter registration; noncandidate-specific "get-out-the-
 
15 vote" drives; travel expenses for noncandidate party leaders and
 
16 staff; and other noncandidate-specific party building activities.
 
17      �11-BB  Repayments of excess expenditures.  (a)  If a clean
 
18 money candidate spends or obligates to spend more than one
 
19 hundred five per cent of the clean money funding the candidate is
 
20 allocated, and if this is determined not to be an amount that had
 
21 or could have been expected to have a significant impact on the
 
22 outcome of the election, then the candidate shall repay to the
 
23 clean money fund an amount equal to the excess.
 

 
Page 34                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1      (b)  If a clean money candidate spends or obligates to spend
 
 2 more than the clean money funding the candidate is given, and if
 
 3 this is determined to be an amount that had or could have been
 
 4 expected to have a significant impact on the outcome of the
 
 5 election, then the candidate shall repay to the clean money fund
 
 6 an amount equal to ten times the value of the excess.
 
 7      �11-CC  Penalties.  (a)  The penalties imposed by this
 
 8 section shall be in addition to any other penalties that may be
 
 9 imposed under section 11-228 or any other applicable law.
 
10      (b)  No candidate may knowingly or intentionally accept more
 
11 benefits than those to which the candidate is entitled, spend
 
12 more than the amount of clean money funding the candidate has
 
13 received, or misuse those benefits or clean money funding.
 
14      (c)  If it is determined that the violation was intentional
 
15 and involved an amount that had or could have been expected to
 
16 have a significant impact on the outcome of the election:
 
17      (1)  The candidate shall be fined up to $25,000, or
 
18           imprisoned for up to five years, or both; and
 
19      (2)  If, in the judgment of the commission, the violation is
 

 
 
 
 
 
 
 
 
 
Page 35                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1           believed to have contributed to the violator winning
 
 2           the election, the commission may recommend to the
 
 3           legislature that the results of the election be
 
 4           nullified and a new election called.
 
 5      (d)  Any person who knowingly or intentionally provides
 
 6 false information to the commission or conceals or withholds
 
 7 information from the commission, shall be guilty of a class C
 
 8 felony."
 
 9      SECTION 3.  Section 11-191, Hawaii Revised Statutes, is
 
10 amended as follows:
 
11      1.  By adding twenty new definitions to be appropriately
 
12 inserted and to read:
 
13      ""Allowable contribution" means a qualifying contribution or
 
14 a seed money contribution.
 
15      "Clean money candidate" means a candidate who qualifies for
 
16 clean money campaign funding.  Such candidates may receive clean
 
17 money funding during primary, general, and special election
 
18 campaign periods.
 
19      "Clean money qualifying period" means the period during
 
20 which candidates may collect qualifying contributions in order to
 
21 qualify for clean money funding, beginning ninety days before the
 

 
 
 
 
 
Page 36                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1 beginning of the primary election campaign period and ending
 
 2 thirty days before the day of the primary election.
 
 3      "Coordination" means a payment made for a communication or
 
 4 anything of value that is for the purpose of influencing the
 
 5 outcome of a state election and that is made:
 
 6      (1)  By a person in cooperation, consultation, or concert
 
 7           with, at the request or suggestion of, or pursuant to
 
 8           any general or particular understanding with a
 
 9           candidate, the candidate's authorized committee, or an
 
10           agent acting on behalf of a candidate or authorized
 
11           committee;
 
12      (2)  By a person for the dissemination, distribution, or
 
13           republication, in whole or in part, of any broadcast or
 
14           any written, graphic, or other form of campaign
 
15           material prepared by a candidate, a candidate's
 
16           authorized committee, or an agent of a candidate or
 
17           authorized committee;
 
18      (3)  Based on information about the candidate's plans,
 
19           projects, or needs provided to the person making the
 
20           payment by the candidate or the candidate's agent who
 
21           provides the information with a view toward having the
 
22           payment made;
 

 
 
 
Page 37                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1      (4)  By a person if, in the same election cycle in which the
 
 2           payment is made, the person making the payment is
 
 3           serving or has served as a member, employee,
 
 4           fundraiser, or agent of the candidate's authorized
 
 5           committee in an executive or policymaking position;
 
 6      (5)  By a person if the person making the payment has served
 
 7           in any formal policy or advisory position with the
 
 8           candidate's campaign or has participated in strategic
 
 9           or policymaking discussions with the candidate's
 
10           campaign relating to the candidate's pursuit of
 
11           nomination for election, or election, to a state
 
12           office, in the same election cycle as the election
 
13           cycle in which the payment is made; and
 
14      (6)  By a person if the person making the payment retains
 
15           the professional services of an individual or person
 
16           who has provided or is providing campaign-related
 
17           services in the same election cycle to a candidate in
 
18           connection with the candidate's pursuit of nomination
 
19           for election, or election, to state office, including
 
20           services relating to the candidate's decision to seek
 
21           state office, and the payment is for services of which
 
22           the purpose is to influence that candidate's campaign.
 

 
 
 
Page 38                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1      "Excess expenditure amount" means the amount of money spent
 
 2 or obligated to be spent by a nonparticipating candidate in
 
 3 excess of the clean money amount available to a clean money
 
 4 candidate running for the same office.
 
 5      "Express advocacy" means a communication that is made
 
 6 through a broadcast medium, newspaper, magazine, billboard,
 
 7 direct mail, or similar type of general public communication or
 
 8 political advertising that:
 
 9      (1)  Advocates the election or defeat of a clearly
 
10           identified candidate, including any communication that
 
11           contains such phrases as "vote for", "re-elect",
 
12           "support", "cast your ballot for", "(name of candidate)
 
13           for (name of office)", "(name of candidate) in (year)",
 
14           "vote against", "defeat", "reject", and the like; or
 
15           that contains campaign slogans or individual words that
 
16           in context can have no reasonable meaning other than to
 
17           recommend the election or defeat of one or more clearly
 
18           identified candidates; or
 
19      (2)  Involves aggregate disbursements of $1,000 or more,
 
20           refers to one or more clearly identifiable candidates,
 
21           and is made not more than thirty days before the date
 
22           of a primary election or sixty days before the date of
 
23           a general election.
 

 
Page 39                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1      "Express advocacy" does not include:
 
 2      (1)  A communication that is limited solely to providing
 
 3           information about voting records of elected officials
 
 4           on legislative matters that a reasonable person would
 
 5           not understand as advocating the election or defeat of
 
 6           a particular candidate or candidates;
 
 7      (2)  Any news story, commentary, or editorial by a
 
 8           broadcasting station, newspaper, magazine, or other
 
 9           publication; provided that such entity is not owned by
 
10           or affiliated with any candidate or candidate
 
11           committee; or
 
12      (3)  A regularly published newsletter whose circulation is
 
13           limited to an organization's members, employees,
 
14           shareholders, other affiliated individuals, and those
 
15           who request or purchase the internal publication.
 
16      "Fund" means the clean money fund established in this
 
17 subpart.
 
18      "General election campaign period" means the period
 
19 beginning the day after the primary election and ending on the
 
20 day of the general election.
 
21      "Independent expenditure" means an expenditure made by a
 
22 person or group other than a candidate or candidate's authorized
 
23 committee that is made:
 

 
Page 40                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1      (1)  For a communication that contains express advocacy; and
 
 2      (2)  Without the participation or cooperation of, and
 
 3           without coordination with, a candidate or candidate
 
 4           committee.
 
 5      "Independent candidate" means a candidate who is not a party
 
 6 candidate.
 
 7      "Mass mailings" means mailings of two hundred or more
 
 8 identical or nearly identical pieces of mail sent by candidates
 
 9 or elected officials to the voters, residents, or postal box-
 
10 holders within the jurisdiction candidates are seeking to
 
11 represent, consisting of substantially identical letters,
 
12 newsletters, pamphlets, brochures, or other written material.
 
13 "Mass mailings" does not include:
 
14      (1)  Mailings made in direct response to communications from
 
15           persons or groups to whom the matter is mailed;
 
16      (2)  Mailings to federal, state, or local government
 
17           officials;
 
18      (3)  Mailings whose sole purpose is to communicate
 
19           information about a public meeting; and
 
20      (4)  News releases to the communications media.
 
21      "Nonparticipating candidate" means a candidate who is on the
 
22 ballot but has chosen not to apply for clean money campaign
 
23 funding, or a candidate who is on the ballot and has applied but
 

 
Page 41                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1 has not satisfied the requirements for receiving clean money
 
 2 funding.
 
 3      "Party candidate" means a candidate who represents a
 
 4 political party that has been granted ballot status and holds a
 
 5 primary election to choose its nominee for the general election.
 
 6      "Primary election campaign period" means the period
 
 7 beginning ninety days before the primary election and ending on
 
 8 the day of the primary election.
 
 9      "Professional purposes" includes services in support of a
 
10 candidate's pursuit of nomination for election, or election, to
 
11 state office such as polling, media advice, direct mail,
 
12 fundraising, or campaign research.
 
13      "Qualifying contribution" means a contribution of $5 or less
 
14 that is received during the designated clean money qualifying
 
15 period by a candidate seeking to become eligible for clean money
 
16 campaign funding and that is acknowledged by a written receipt
 
17 identifying the contributor.  Contributors shall be registered
 
18 voters who reside within the candidate's district or State.
 
19 Qualifying contributions shall be made in cash, or by check or
 
20 money order, and shall be accompanied by a signed receipt fully
 
21 identifying the contributor and indicating that the contributor
 
22 fully understands the purpose of the contribution, which shall be
 
23 turned over to the campaign spending commission for deposit in
 

 
Page 42                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1 the clean money fund.  Qualifying contributions must be gathered
 
 2 by candidates themselves or by volunteers who receive no
 
 3 compensation.
 
 4      "Seed money contribution" means a contribution of no more
 
 5 than $100 made by an individual adult during the seed money
 
 6 period.
 
 7      "Seed money period" means the period beginning the day
 
 8 following the previous general election for that office and
 
 9 ending on the last day of the clean money qualifying period, in
 
10 which candidates who wish to become eligible for clean money
 
11 funding for the next election may raise and spend a limited
 
12 amount of private seed money, in contributions of up to $100 per
 
13 individual, for the purpose of "testing the waters" and
 
14 fulfilling the clean money eligibility requirements.  The seed
 
15 money period begins before, but extends to the end of, the clean
 
16 money qualifying period.
 
17      "Soft money"  means money raised by political parties that
 
18 is unregulated by state law.
 
19      "Special election campaign period" means the period
 
20 beginning the day after the primary or general election that
 
21 resulted in the need for a special election, and ending on the
 
22 day of the special election."
 

 
 
 
Page 43                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1      2.  By amending the definitions of "immediate family",
 
 2 "person", and "private contribution" to read as follows:
 
 3      ""Immediate family" means a candidate's spouse[, and any
 
 4 child[, parent, grandparent, brother, or sister of the candidate,
 
 5 and the spouses of such persons.] and children.
 
 6      "Person" means an individual, proprietorship, firm, joint
 
 7 venture, syndicate, business trust, company, partnership,
 
 8 committee, association, corporation, or labor union and its
 
 9 auxiliary committees[.], and any other organization or group of
 
10 persons acting in concert.
 
11      "Private contribution" means a monetary contribution other
 
12 than from a candidate's own funds or from the Hawaii [election
 
13 campaign] clean money fund."
 
14      3.  By deleting the definitions of "matching payment period"
 
15 and "qualifying campaign contribution".
 
16      [""Matching payment period" means:
 
17      (1)  For a primary election, from January 1 of the year of a
 
18           general election through the day of the primary
 
19           election, or nine months prior to a special election
 
20           through the day of a special election; and
 
21      (2)  For a general election, from January 1 of the year of a
 
22           general election through the day of the general
 
23           election.
 

 
Page 44                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1      "Qualifying campaign contribution" means a monetary
 
 2 contribution of $100 or less, and not more than $100 of a
 
 3 person's total aggregate monetary contribution.  Qualifying
 
 4 contributions do not include loans or in-kind contributions."]
 
 5      SECTION 4.  Section 11-193, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "�11-193  Duties of the commission.(a)  The duties of the
 
 8 commission under this subpart are:
 
 9      (1)  To develop and adopt reporting forms required by this
 
10           subpart;
 
11      (2)  To adopt and publish a manual for all candidates and
 
12           committees, describing the requirements of this
 
13           subpart, including uniform and simple methods of
 
14           recordkeeping;
 
15      (3)  To preserve all reports required by this subpart for at
 
16           least ten years from the date of receipt;
 
17      (4)  To permit the inspection, copying, or duplicating of
 
18           any report required by this subpart pursuant to rules
 
19           adopted by the commission; provided that no information
 
20           or copies from the reports shall be sold or used by any
 
21           person for the purpose of soliciting contributions or
 
22           for any commercial purpose;
 

 
 
 
Page 45                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1      (5)  To ascertain whether any candidate, committee, or party
 
 2           has failed to file a report required by this subpart or
 
 3           has filed a substantially defective or deficient
 
 4           report, and to notify these persons by first class mail
 
 5           that their failure to file or filing of a substantially
 
 6           defective or deficient report must be corrected and
 
 7           explained.  The correction or explanation shall be
 
 8           submitted in writing to the commission not later than
 
 9           4:30 p.m. on the fifth day after notification of the
 
10           failure to file or deficiency has been mailed to these
 
11           persons.  The commission shall publish in the newspaper
 
12           the names of all candidates, committees, and parties
 
13           who have failed to file a report or to correct their
 
14           deficiency within the time allowed by the commission.
 
15           Failure to file or correct a report when due, as
 
16           required by this subpart, shall result in a penalty of
 
17           $50.  Failure to respond after a newspaper notification
 
18           shall result in an additional penalty of $50 for each
 
19           day a report remains overdue or uncorrected.  All
 
20           penalties collected under this section shall be
 
21           deposited in the [Hawaii election campaign] clean money
 
22           fund;
 
23      (6)  To hold public hearings;
 

 
Page 46                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1      (7)  To investigate and hold hearings for receiving evidence
 
 2           of any violations;
 
 3      (8)  To adopt a code of fair campaign practices as a part of
 
 4           its rules;
 
 5      (9)  To establish rules pursuant to chapter 91;
 
 6     (10)  To request the initiation of prosecution for the
 
 7           violation of this subpart pursuant to section 11-229;
 
 8     (11)  To administer and monitor the distribution of public
 
 9           funds under this subpart;
 
10     (12)  To suggest accounting methods for candidates, parties,
 
11           and committees, as the commission may deem advisable,
 
12           in connection with reports and records required by this
 
13           subpart;
 
14     (13)  To employ or contract, without regard to chapters 76
 
15           and 77 and section 28-8.3, and, at pleasure, to dismiss
 
16           persons it finds necessary for the performance of its
 
17           functions, including a full-time executive director,
 
18           and to fix their compensation;
 
19     (14)  To do random audits[,] and field investigations, as
 
20           necessary; provided that the subjects of audits and
 
21           investigations shall be selected on the basis of
 
22           impartial criteria established by a vote of at least
 
23           three members of the commission;
 

 
Page 47                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1     (15)  To file for injunctive relief [when indicated;] if the
 
 2           following conditions exist:
 
 3           (A)  There is a substantial likelihood that a violation
 
 4                of this subpart will result in irreparable harm to
 
 5                a party affected by the potential violation;
 
 6           (B)  The failure to act expeditiously will result in
 
 7                irreparable harm to a party affected by the
 
 8                potential violation;
 
 9           (C)  Expeditious action will not cause undue harm or
 
10                prejudice to the interests of others; and
 
11           (D)  The public interest would be best served by the
 
12                issuance of an injunction;
 
13     (16)  To censure any candidate who fails to comply with the
 
14           code of fair campaign practices; [and]
 
15     (17)  To render advisory opinions upon the request of any
 
16           candidate, candidate committee, noncandidate committee,
 
17           or other person or entity subject to this chapter, as
 
18           to whether the facts and circumstances of a particular
 
19           case constitute or will constitute a violation of the
 
20           campaign spending laws.  If no advisory opinion is
 
21           rendered within ninety days after all information
 
22           necessary to issue an opinion has been obtained, it
 
23           shall be deemed that an advisory opinion was rendered
 

 
Page 48                                        600         
                                     H.B. NO.           
                                                        
                                                        

 
 1           and that the facts and circumstances of that particular
 
 2           case do not constitute a violation of the campaign
 
 3           spending laws.  The opinion rendered or deemed
 
 4           rendered, until amended or revoked, shall be binding on
 
 5           the commission in any subsequent charges concerning the
 
 6           candidate, candidate committee, noncandidate committee,
 
 7           or other person or entity subject to this chapter, who
 
 8           sought the opinion and acted in reliance on it in good
 
 9           faith, unless material facts were omitted or misstated
 
10           by the persons in the request for an advisory
 
11           opinion[.];
 
12     (18)  To administer the laws relating to clean money
 
13           campaigns in this subpart;
 
14     (19)  To refer criminal violations to the attorney general
 
15           and the prosecuting attorney of the appropriate county
 
16           or counties in accordance with section 11-229; and
 
17     (20)  To investigate anonymous complaints; provided that
 
18           complainants shall be afforded whistleblower protection
 
19           as provided in rules adopted by the commission pursuant
 
20           to chapter 91.
 
21      (b)  In performing the functions and duties under this
 
22 subpart, the commission may subpoena witnesses, examine them
 
23 under oath, and require the production of books, papers,
 

 
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 1 documents, or objects, to the commission office at any place in
 
 2 the State whether or not the subpoena is in connection with any
 
 3 hearing; provided that the person or documents subpoenaed shall
 
 4 be relevant to a matter under study or investigation by the
 
 5 commission.  The books, papers, documents, or objects may be
 
 6 retained by the commission for a reasonable period of time for
 
 7 the purpose of examination, audit, copying, testing, and
 
 8 photographing.  The subpoena power shall be exercised by the
 
 9 chairperson of the commission, or such other person as the
 
10 chairperson may designate.  Upon application of the commission,
 
11 obedience to the subpoena shall be enforced by the circuit court
 
12 in the county where the person subpoenaed resides or is found in
 
13 the same manner as a subpoena issued by a circuit court.
 
14      (c)  In addition to the reports required by section 11-210,
 
15 the commission shall report fully to the legislature after each
 
16 election cycle the following information:
 
17      (1)  A detailed summary of all seed money contributions,
 
18           qualifying contributions, and benefits received and
 
19           expenditures made by all clean money candidates; and
 
20      (2)  A summary and evaluation of the commission's activities
 
21           and recommendations relating to the implementation,
 
22           administration, and enforcement of this subpart."
 

 
 
 
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 1      SECTION 5.  Section 11-195, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (f) to read as follows:
 
 3      "(f)  For purposes of this subpart, whenever a report is
 
 4 required to be filed with the commission, "filed" means received
 
 5 in the office of the commission or county clerk, whichever is
 
 6 applicable, by the date and time specified for the filing of the
 
 7 report; except that a candidate or the committee of a candidate
 
 8 who is seeking election to the office of:
 
 9      (1)  Governor;
 
10      (2)  Lieutenant governor;
 
11      (3)  Mayor;
 
12      (4)  Prosecuting attorney; or
 
13      (5)  County council;
 
14 shall file by electronic means in the manner prescribed by the
 
15 commission.  Candidates for the offices named in this subsection
 
16 with contributions or expenditures of less than $5,000 need not
 
17 file by electronic means.  Candidates for all offices with
 
18 contributions or expenditures of $5,000 or more shall file by
 
19 electronic means."
 
20      SECTION 6.  Section 11-201, Hawaii Revised Statutes, is
 
21 amended by amending subsection (b) to read as follows:
 
22      "(b)  No anonymous contribution received by a candidate,
 
23 party, or committee shall be used or expended, but shall be
 

 
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 1 returned to the donor.  If the donor cannot be identified, the
 
 2 contribution shall escheat to the [Hawaii election campaign]
 
 3 clean money fund."
 
 4      SECTION 7.  Section 11-202, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "�11-202  False name.  No person shall make a contribution
 
 7 of the person's own money or property, or money or property of
 
 8 another person to any candidate, party, or committee in
 
 9 connection with a nomination for election, or election, in any
 
10 name other than the true name of the person who owns the money or
 
11 who supplied the money or property.
 
12      All contributions made in the name of a person other than
 
13 the true or established name of the actual owner of the money or
 
14 property shall escheat to the [Hawaii election campaign] clean
 
15 money fund."
 
16      SECTION 8.  Section 11-203, Hawaii Revised Statutes, is
 
17 amended by amending subsection (b) to read as follows:
 
18      "(b)  There shall be no more than two fundraisers held for a
 
19 person prior to a general or special election in which that
 
20 person is either elected or defeated.
 
21      Within six months after a general or special election,
 
22 however, a candidate or committee directly associated with a
 
23 candidate who has a deficit may hold an additional fundraiser.
 

 
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 1      Nothwithstanding any law to the contrary, no fundraisers
 
 2 shall be held while the legislature is convened in regular or
 
 3 special session."
 
 4      SECTION 9.  Section 11-204, Hawaii Revised Statutes, is
 
 5 amended as follows:
 
 6      1.  By amending subsection (e) to read as follows:
 
 7      "(e)  Any candidate or candidate's committee who receives in
 
 8 the aggregate more than the applicable limits set forth in this
 
 9 section in any primary, initial special, special, or general
 
10 election from a person, shall be required to transfer an amount
 
11 equal to any excess over the limits established in this section
 
12 to the [Hawaii election campaign] clean money fund within thirty
 
13 days of receipt by a candidate or candidate's committee, and in
 
14 any event, no later than thirty days upon the receipt by a
 
15 candidate or candidate's committee of notification from the
 
16 commission.  A candidate or candidate's committee who complies
 
17 with this subsection prior to the initiation of prosecution shall
 
18 not be subject to any penalty under section 11-228."
 
19      2.  By amending subsection (l) to read as follows:
 
20      "(l)  No person or any other entity shall make contributions
 
21 to a political party in an aggregate amount greater than
 
22 [$50,000] $15,000 in any two-year election [period.] cycle."
 

 
 
 
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 1      SECTION 10.  Section 11-205, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (a) to read as follows:
 
 3      "(a)  No state political party committee shall [make
 
 4 contributions to a candidate in any calendar year in an aggregate
 
 5 amount greater than the following amounts for each respective
 
 6 office:
 
 7      (1)  For the office of governor--$50,000;
 
 8      (2)  For the office of lieutenant governor--$40,000;
 
 9      (3)  For the partisan offices of mayor and prosecuting
 
10           attorney--$25,000;
 
11      (4)  For the offices of state senator and partisan county
 
12           council member--$20,000; and
 
13      (5)  For the office of state representative--$15,000.]:
 
14      (1)  Solicit or accept contributions from any person during
 
15           any election cycle that in the aggregate exceed
 
16           $15,000; or
 
17      (2)  Make contributions to any nonparticipating candidate
 
18           during any election cycle that in the aggregate exceed
 
19           $15,000."
 
20      SECTION 11.  Section 11-205.5, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "�11-205.5  Campaign contributions by state contractors[.]
 
23 prohibited.  [(a)  Any] No person [making] shall make a
 

 
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 1 contribution to any candidate, committee, or political party[,
 
 2 and] who has received, in any calendar year, [$50,000 or more]
 
 3 any moneys through contracts from the State[,] or county [shall
 
 4 register and report that fact to the commission within thirty
 
 5 days of the date of the contribution or within thirty days of the
 
 6 date of the contract, whichever occurs later]; provided that this
 
 7 section shall not apply to a person who has received [$50,000]
 
 8 $      or more through a grant, subsidy, or purchase of service
 
 9 agreement under chapter 42F or 103F.
 
10      [(b)  The commission shall prescribe forms and procedures
 
11 for the reporting required in subsection (a) which, at a minimum,
 
12 shall require the following information:
 
13      (1)  The name and address of the person making the
 
14           contribution;
 
15      (2)  The name of the candidate, committee, or political
 
16           party receiving the contribution;
 
17      (3)  The amount of money received from the State or county,
 
18           the dates, and information identifying each contract
 
19           and describing the service performed or goods provided;
 
20           and
 
21      (4)  If an entity is making the contribution, the names and
 
22           business addresses of the principals, including
 
23           officers and directors.
 

 
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 1      (c)  The commission shall maintain a list of such reports
 
 2 for public inspection both at the commission's office and through
 
 3 the state FYI electronic bulletin board.]"
 
 4      SECTION 12.  Section 11-207, Hawaii Revised Statutes, is
 
 5 amended by amending subsection (c) to read as follows:
 
 6      "(c)  No expenditure for a candidate shall be made or
 
 7 incurred by any committee controlled by a candidate without
 
 8 specific written authorization of the candidate or the
 
 9 candidate's authorized representative.  Every expenditure so
 
10 authorized and made or incurred shall be attributed to the
 
11 candidate with whom the committee is directly associated for the
 
12 purpose of imposing the expenditure limitations set forth in
 
13 section [11-209.] 11-O."
 
14      SECTION 13.  Section 11-210, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "�11-210  Study and recommendation.  At least one year prior
 
17 to a primary, special primary, or general election, the
 
18 commission shall submit to the legislature:
 
19      (1)  A study and recommendation of reasonable campaign
 
20           expenditure and contribution limits and the factors
 
21           which may be relevant in their establishment; and
 
22      (2)  A report concerning the status of the [Hawaii election
 
23           campaign] clean money fund, and shall request an
 

 
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 1           appropriation if the total amount of revenues
 
 2           comprising the fund is insufficient to partially
 
 3           finance all candidates for a particular primary,
 
 4           special primary, or general election [as set forth in
 
 5           section 11-218]."
 
 6      SECTION 14.  Section 11-212, Hawaii Revised Statutes, is
 
 7 amended by amending subsection (a) to read as follows:
 
 8      "(a)  Each candidate, authorized person in the case of a
 
 9 party, or campaign treasurer in the case of a candidate
 
10 committee, shall file a preliminary report with the commission or
 
11 appropriate county clerk's office, on forms provided by the
 
12 commission no later than 4:30 p.m. on the twenty-fifth and tenth
 
13 calendar day prior to each primary and initial special election,
 
14 and the tenth calendar day prior to a special or general
 
15 election.  Each report shall be certified pursuant to section
 
16 11-195 and shall contain the following information which shall be
 
17 current through the fifth calendar day prior to the filing of a
 
18 preliminary report:
 
19      (1)  The aggregate sum of all contributions and other
 
20           campaign receipts received;
 
21      (2)  The amount and date of deposit of the contribution and
 
22           the name and address of each donor who contributes an
 

 
 
 
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 1           aggregate of more than $100 during an election period,
 
 2           which has not previously been reported;
 
 3      (3)  The amount and date of deposit of each contribution and
 
 4           the name, address, employer, and occupation of each
 
 5           donor who contributes an aggregate of [$1,000] $250 or
 
 6           more during an election period, which has not
 
 7           previously been reported; provided that if the
 
 8           information required by this paragraph is not provided
 
 9           by the donor and cannot be determined in full by the
 
10           candidate or the candidate's committee before the
 
11           report is due, the contributions in question shall be
 
12           returned to the donors of those contributions if their
 
13           identities are known; provided that if the identity of
 
14           any donor is not known, or the donor cannot be found,
 
15           the contribution shall escheat to the clean money fund
 
16           no later than two calendar days after the report filing
 
17           due date;
 
18      (4)  All expenditures made, incurred, or authorized by or
 
19           for a candidate, including the name and address of each
 
20           payee and the amount, date, and purpose of each
 
21           expenditure; and
 
22      (5)  A current statement of the balance on hand or deficit."
 

 
 
 
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 1      SECTION 15.  Section 11-213, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (a) to read as follows:
 
 3      "(a)  Primary and initial special election.  Each candidate
 
 4 whether or not successful in a primary or initial special
 
 5 election, authorized person in the case of a party, or campaign
 
 6 treasurer in the case of a committee, shall file a final primary
 
 7 report certified pursuant to section 11-195 with the commission
 
 8 on forms provided by the commission no later than 4:30 p.m. on
 
 9 the twentieth calendar day after a primary or initial special
 
10 election.  The report shall include the following information
 
11 which shall be current through the day of the primary election:
 
12      (1)  A statement of the total contributions and campaign
 
13           receipts received;
 
14      (2)  The amount and date of deposit of each contribution and
 
15           the name and address of each donor who contributes an
 
16           aggregate of more than $100 during an election period,
 
17           which has not previously been reported;
 
18      (3)  The amount and date of deposit of each contribution and
 
19           the name, address, employer, and occupation of each
 
20           donor who contributes an aggregate of [$1,000] $250 or
 
21           more during an election period, which has not
 
22           previously been reported; provided that if the
 
23           information required by this paragraph is not provided
 

 
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 1           by the donor and cannot be determined in full by the
 
 2           candidate or the candidate's committee before the
 
 3           report is due, the contributions in question shall be
 
 4           returned to the donors of those contribution if their
 
 5           identities are known; provided that if the identity of
 
 6           any donor is not known, or the donor cannot be found,
 
 7           the contribution shall escheat to the clean money fund
 
 8           no later than two calendar days after the report filing
 
 9           due date;
 
10      (4)  A statement of all expenditures made, incurred, or
 
11           authorized by or for a candidate including the name and
 
12           address of each payee and the amount, date, and purpose
 
13           of each expenditure; and
 
14      (5)  The cash balance and a statement of surplus or
 
15           deficit."
 
16      SECTION 16.  Section 11-214, Hawaii Revised Statutes, is
 
17 amended by amending subsections (a) and (b) to read as follows:
 
18      "(a)  All candidates who withdraw or cease to be candidates,
 
19 or committees directly associated with such candidates,
 
20 individuals who receive contributions but fail to file for
 
21 nomination, or committees or parties which discontinue their
 
22 activities covered in this subpart, shall return all residual
 
23 private contributions to the donors of such contributions if
 

 
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 1 their identities are known[,]; provided that if the identity of
 
 2 any donor is not known, or the donor cannot be found, such
 
 3 contribution shall escheat to the [Hawaii election campaign]
 
 4 clean money fund.
 
 5      (b)  All residual public funds shall be returned to the
 
 6 [Hawaii election campaign] clean money fund."
 
 7      SECTION 17.  Section 11-216, Hawaii Revised Statutes, is
 
 8 amended by amending subsection (f) to read as follows:
 
 9      "(f)  If the commission renders a final determination of
 
10 violation, its written decision with findings of fact and
 
11 conclusions of law may also provide, without limitation the
 
12 following orders:
 
13      (1)  The return of any contribution;
 
14      (2)  The reimbursement of any unauthorized expenditure;
 
15      (3)  The payment of any administrative fine payable to the
 
16           [Hawaii election campaign] clean money fund;
 
17      (4)  Cease and desist violation of this subpart; or
 
18      (5)  File any report, statement, or other information as
 
19           required by this subpart."
 
20      SECTION 18.  Section 11-220, Hawaii Revised Statutes, is
 
21 amended by amending subsections (a) and (b) to read as follows:
 
22      "(a)  To be eligible to receive payments under section
 
23 [11-217,] 11-X, a candidate shall in writing:
 

 
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 1      (1)  Agree to obtain and furnish to the commission any
 
 2           evidence of the campaign expenses of such candidate
 
 3           which the commission may request;
 
 4      (2)  Agree to keep and furnish records, books, and other
 
 5           information which the commission may request; and
 
 6      (3)  Agree to an audit and examination by the commission
 
 7           under section 11-225 and to pay any amounts required to
 
 8           be paid pursuant to such section.
 
 9      (b)  To be eligible to receive payments pursuant to section
 
10 [11-217,] 11-X, a candidate shall certify to the commission that:
 
11      (1)  Such candidate and all committees authorized by such
 
12           candidate shall not [incur campaign expenses in excess
 
13           of the expenditure limitations imposed by section
 
14           11-209;] violate the provisions of this subpart
 
15           specifying the requirements of clean money candidates;
 
16      (2)  Such candidate has qualified to be on the election
 
17           ballot in a primary, special primary, or general
 
18           election;
 
19      (3)  Such candidate has filed a statement of intent to seek
 
20           qualifying contributions.  A contribution received
 
21           before the filing of a statement of intent to seek
 
22           public funds shall not be considered a qualifying
 
23           contribution;
 

 
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 1      (4)  Such candidate or committee authorized by such
 
 2           candidate has received the qualifying sum of private
 
 3           contributions for the office sought by the candidate
 
 4           [as set forth in section 11-219];
 
 5      (5)  The aggregate of contributions certified with respect
 
 6           to any person under paragraph (4) does not exceed
 
 7           $100."
 
 8      SECTION 19.  Section 11-224, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "�11-224  Public funds; report required; return of funds.
 
11 The campaign treasurer of the candidate shall produce evidence to
 
12 the commission no later than twenty days after a primary or
 
13 special primary election; and no later than thirty days after a
 
14 special or general election that all public funds paid to the
 
15 candidate have been utilized as required by this subpart.
 
16      Should the commission determine that any part of the public
 
17 funds have been used for noncampaign or improper expenses, it
 
18 shall report such finding to the attorney general and shall order
 
19 the candidate to return all or part of the total funds paid to
 
20 that candidate for a primary, special primary, special, or
 
21 general election.  When such funds are returned, they shall be
 
22 deposited in the [Hawaii election campaign] clean money fund."
 

 
 
 
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 1      SECTION 20.  Section 11-225, Hawaii Revised Statutes, is
 
 2 amended as follows:
 
 3      1.  By amending subsection (a) to read:
 
 4      "(a)  Within sixty days after each general election, the
 
 5 commission shall conduct an examination and audit of all public
 
 6 funds received by the candidate and of the campaign contributions
 
 7 used for purposes of qualifying for public funding under this
 
 8 subpart and the campaign expenses incurred by all candidates who
 
 9 received clean money payments [pursuant to section 11-217].
 
10      2.  By amending subsections (c), (d), and (e) to read:
 
11      "(c)  Should the commission determine that any payment of
 
12 public funds made to an eligible candidate [pursuant to section
 
13 11-221] was in excess of the aggregate amount of payments to
 
14 which such candidate was entitled, the commission shall notify
 
15 such candidate and such candidate shall pay to the [Hawaii
 
16 election campaign] clean money fund a sum equal to the amount of
 
17 excess payment.
 
18      (d)  If the commission determines that any amount of any
 
19 public funds made to a candidate [under section 11-217] was used
 
20 for any improper purpose, the commission shall so notify the
 
21 candidate, and the candidate shall pay to the fund an amount
 
22 equal to three hundred per cent of such amount.
 

 
 
 
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 1      (e)  Any candidate who has received public funds [under
 
 2 section 11-217] and who is convicted of violating any provision
 
 3 of this subpart shall, upon notification by the commission, pay
 
 4 to the [Hawaii election campaign] clean money fund the full
 
 5 amount of public funds received by such candidate."
 
 6      SECTION 21.  Section 11-226, Hawaii Revised Statutes, is
 
 7 amended by amending subsection (a) to read as follows:
 
 8      "(a)  As a condition of allowing an individual to take a tax
 
 9 deduction for campaign contributions to a candidate pursuant to
 
10 section 235-7(g)(2), a candidate shall have filed [an affidavit]
 
11 a declaration with the commission pursuant to section 11-C prior
 
12 to or simultaneous with the filing of the candidate's
 
13 organizational report stating that the candidate [shall not
 
14 exceed the expenditure limit for the candidate's respective
 
15 office as set forth in section 11-209.] qualifies as a clean
 
16 money candidate."
 
17      SECTION 22.  Section 11-227, Hawaii Revised Statutes, is
 
18 amended by amending subsection (a) to read as follows:
 
19      "(a)  Forty-five days before each primary, special primary,
 
20 special, or general election, and at such other times as may be
 
21 appropriate, the commission may give public notices to
 
22 communicate to the public the following:
 

 
 
 
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 1      (1)  A candidate [who has signed an affidavit pursuant to
 
 2           section 11-208 to abide by the expenditure limits for
 
 3           the candidate's respective office as imposed by this
 
 4           subpart;] is a clean money candidate as provided in
 
 5           this subpart;
 
 6      (2)  A clean money candidate who has [filed an affidavit to
 
 7           abide by spending limits, but who has exceeded the
 
 8           expenditure limits pursuant to section 11-209;] failed
 
 9           to comply with the requirements of this subpart;
 
10      (3)  A candidate who has failed to file a report required
 
11           under this subpart, or who has failed to correct a
 
12           deficient report after notice of the deficiency or
 
13           failure to file has been mailed to the candidate
 
14           pursuant to section 11-193(a)(5); and
 
15      (4)  Any flagrant violation of any other provision of this
 
16           subpart."
 
17      SECTION 23.  Section 11-228, Hawaii Revised Statutes, is
 
18 amended by amending subsection (d) to read as follows:
 
19      "(d)  Any administrative fine collected by the commission
 
20 shall be deposited in the [Hawaii election campaign] clean money
 
21 fund."
 
22      SECTION 24.  Section 12-6, Hawaii Revised Statutes, is
 
23 amended by amending subsection (d) to read as follows:
 

 
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 1      "(d)  Upon the showing of a [certified copy of an affidavit]
 
 2 declaration which has been filed with the campaign spending
 
 3 commission pursuant to section [11-208] 11-C by a candidate who
 
 4 has voluntarily agreed to [abide by spending limits,] comply with
 
 5 the requirements of chapter 11, part XII, subpart B, as a clean
 
 6 money candidate, the chief election officer or clerk shall
 
 7 discount the filing fee of the candidate by the following
 
 8 amounts:
 
 9      (1)  For the office of governor and lieutenant
 
10           governor--$675;
 
11      (2)  For the office of mayor--$450; and
 
12      (3)  For all other offices--$225."
 
13      SECTION 25.  Section 235-7, Hawaii Revised Statutes, is
 
14 amended by amending subsection (g) to read as follows:
 
15      "(g)  In computing taxable income there shall be allowed as
 
16 a deduction:
 
17      (1)  Political contributions by any taxpayer not in excess
 
18           of $250 in any year; provided that such contributions
 
19           are made to a central or county committee of a
 
20           political party whose candidates shall have qualified
 
21           by law to be voted for at the immediately previous
 
22           general election; or
 

 
 
 
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 1      (2)  Political contributions by any individual taxpayer in
 
 2           an aggregate amount not to exceed the maximum amount
 
 3           otherwise allowable in any year; provided that such
 
 4           contributions are made to clean money candidates as
 
 5           defined in section 11-191[, who have agreed to abide by
 
 6           the campaign expenditure limits as set forth in section
 
 7           11-209]; and provided further that not more than $250
 
 8           of an individual's total contribution to any single
 
 9           candidate shall be deductible for purposes of this
 
10           section."
 
11      SECTION 26.  Section 235-102.5, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "�235-102.5  Income check-off authorized.  Any individual
 
14 whose state income tax liability for any taxable year is [$2] $10
 
15 or more may designate [$2] $10 of the liability to be paid over
 
16 to the [Hawaii election campaign] clean money fund, any other law
 
17 to the contrary notwithstanding, when submitting a state income
 
18 tax return to the department of taxation.  In the case of a joint
 
19 return of a husband and wife having a state income tax liability
 
20 of [$4] $20 or more, each spouse may designate that [$2] $10 be
 
21 paid to the fund.  The director of taxation shall revise the
 
22 individual state income tax form to allow the designation of
 
23 contributions to the fund on the face of the tax return and
 

 
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 1 immediately above the signature lines.  An explanation shall be
 
 2 included which clearly states that the check-off does not
 
 3 constitute an additional tax liability.  If no designation was
 
 4 made on the original tax return when filed, a designation may be
 
 5 made by the individual on an amended return filed within twenty
 
 6 months and ten days after the due date for the original return
 
 7 for such taxable year.  A designation once made whether by an
 
 8 original or amended return may not be revoked."
 
 9      SECTION 27.  Sections 11-208 and 11-209, Hawaii Revised
 
10 Statutes, are repealed.
 
11      ["�11-208  Voluntary campaign expenditure limitation.(a)
 
12 Any candidate may voluntarily agree to limit the candidate's
 
13 campaign expenditures and those of the candidate's committee or
 
14 committees and the candidate's party in the candidate's behalf by
 
15 filing an affidavit with the campaign spending commission;
 
16 provided that a candidate may withdraw the candidate's affidavit
 
17 no later than thirty days prior to a primary election.  Any
 
18 candidate withdrawing the candidate's affidavit shall notify all
 
19 contributors during the election period, in writing, that
 
20 contributions are not tax deductible.
 
21      (b)  The affidavit shall state that the candidate knows the
 
22 voluntary campaign expenditure limitations as set out in section
 
23 11-209 and that the candidate is voluntarily agreeing to limit
 

 
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 1 the candidate's expenditures and those made on the candidate's
 
 2 behalf by the amount set by law.  The affidavit shall be
 
 3 subscribed to by the candidate and notarized.
 
 4      (c)  Affidavits in compliance with this section shall be
 
 5 filed by January 31 of the year of any primary, special, or
 
 6 general election, or on the date set for filing the candidate's
 
 7 organizational report as provided in section 11-196, whichever is
 
 8 later.
 
 9      �11-209  Campaign expenditures; limits as to amounts.(a)
 
10 From January 1 of the year of any primary, special, or general
 
11 election, the total expenditures for candidates who voluntarily
 
12 agree to limit their campaign expenditures for each election,
 
13 inclusive of all expenditures made or authorized by the candidate
 
14 alone and all campaign treasurers and committees in the
 
15 candidate's behalf, shall not exceed the following amounts
 
16 expressed respectively multiplied by the number of voters in the
 
17 last preceding general election registered to vote in each
 
18 respective voting district:
 
19      (1)  For the office of governor--$2.50;
 
20      (2)  For the office of lieutenant governor--$1.40;
 
21      (3)  For the office of mayor--$2.00;
 
22      (4)  For the offices of state senator, state representative,
 
23           county council member, and prosecuting attorney--$1.40;
 

 
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 1           and
 
 2      (5)  For the offices of the board of education and all other
 
 3           offices--20 cents.
 
 4      (b)  A candidate or committee who has voluntarily agreed to
 
 5 the expenditure limits in this section and who exceeds their
 
 6 respective expenditure limits shall pay the full filing fee and
 
 7 shall notify all opponents, the chief election officer, all
 
 8 contributors, and the commission by telephone and in writing the
 
 9 day the expenditure limits are exceeded.  Notification to
 
10 contributors shall include an announcement that tax deductions
 
11 based on their contributions are no longer available."]
 
12      SECTION 28.  Sections 11-217, 11-217.5, 11-218, and 11-219,
 
13 Hawaii Revised Statutes, are repealed.
 
14      ["�11-217  Hawaii election campaign fund; creation.  The
 
15 Hawaii election campaign fund is created as a trust fund within
 
16 the state treasury.  The fund shall consist of all moneys
 
17 collected from persons who have designated a portion of their
 
18 income tax liability to the fund as provided in section
 
19 235-102.5, any general fund revenues appropriated, as well as all
 
20 other moneys collected pursuant to this subpart.  Payment to each
 
21 candidate from the fund shall be by the comptroller in the manner
 
22 prescribed in section 11-222.  Moneys from this fund may also be
 
23 used for the operating expenses of the commission, including
 

 
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 1 staff salaries and fringe benefits.
 
 2      [�11-217.5]  Depletion of fund.(a)  The Hawaii election
 
 3 campaign fund shall be under no obligation to provide moneys to
 
 4 qualified candidates in the event that moneys in that fund have
 
 5 been depleted.
 
 6      (b)  In the event that the Hawaii election campaign fund is
 
 7 close to depletion, as determined by the commission, the
 
 8 commission shall determine the amounts available to qualified
 
 9 candidates based on their order of eligibility in qualifying for
 
10 public funds, as determined by the date of filing of an affidavit
 
11 with the commission pursuant to section 11-208; provided that the
 
12 affidavit has been accepted by the commission.
 
13      �11-218  Candidate funding; amounts available.(a)  The
 
14 maximum amount of public funds available to a candidate for the
 
15 office of governor, lieutenant governor, or mayor in any election
 
16 year shall not exceed one-fifth or twenty per cent of the total
 
17 expenditure limit established for each office above pursuant to
 
18 section 11-209.
 
19      (b)  For the office of state senator, state representative,
 
20 county council member, and prosecuting attorney, the maximum
 
21 amount of public funds available to a candidate in any election
 
22 year shall be thirty per cent of the total expenditure limit
 
23 established for each office listed in this subsection pursuant to
 

 
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 1 section 11-209.
 
 2      (c)  For the board of education and all other offices, the
 
 3 maximum amount of public funds available to a candidate shall not
 
 4 exceed $100 in any election year.
 
 5      (d)  The total amount of public funds for a primary, special
 
 6 primary, or general election to which a candidate is entitled to
 
 7 receive under section 11-221 shall not exceed fifty per cent of
 
 8 the maximum amount of public funds available for the candidate's
 
 9 respective office.  Each candidate who qualified for the maximum
 
10 amount of public funding in any primary or special primary
 
11 election and who is a candidate for a subsequent general election
 
12 shall upon application with the commission be entitled to receive
 
13 up to fifty per cent of the balance of public funds available to
 
14 such candidate.
 
15      �11-219  Qualifying campaign contributions; amounts.  As a
 
16 condition of receiving public funds for a primary, special
 
17 primary, or general election, a candidate shall not be unopposed
 
18 in any election for which public funds are sought, and shall have
 
19 filed an affidavit with the commission pursuant to section 11-208
 
20 to voluntarily limit the candidate's campaign expenditures and
 
21 shall be in receipt of the following sum of qualifying campaign
 
22 contributions for the candidate's respective office for each
 
23 election:
 

 
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 1      (1)  For the office of governor--qualifying contributions
 
 2           that in the aggregate, exceed $100,000;
 
 3      (2)  For the office of lieutenant governor--qualifying
 
 4           contributions that in the aggregate, exceed $50,000;
 
 5      (3)  For the office of mayor for each respective county:
 
 6           (A)  County of Honolulu--qualifying contributions that
 
 7                in the aggregate, exceed $50,000;
 
 8           (B)  County of Hawaii--qualifying contributions that in
 
 9                the aggregate, exceed $15,000;
 
10           (C)  County of Maui--qualifying contributions that in
 
11                the aggregate, exceed $10,000; and
 
12           (D)  County of Kauai--qualifying contributions that in
 
13                the aggregate, exceed $5,000; and
 
14      (4)  For the office of prosecuting attorney for each
 
15           respective county:
 
16           (A)  County of Honolulu--qualifying contributions that
 
17                in the aggregate, exceed $30,000;
 
18           (B)  County of Hawaii--qualifying contributions that in
 
19                the aggregate, exceed $10,000; and
 
20           (C)  County of Kauai--qualifying contributions that in
 
21                the aggregate, exceed $5,000;
 
22      (5)  For the office of county council--for each respective
 
23           county:
 

 
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 1           (A)  County of Honolulu--qualifying contributions that
 
 2                in the aggregate, exceed $5,000;
 
 3           (B)  County of Hawaii--qualifying contributions that in
 
 4                the aggregate, exceed $1,500;
 
 5           (C)  County of Maui--qualifying contributions that in
 
 6                the aggregate, exceed $5,000; and
 
 7           (D)  County of Kauai--qualifying contributions that in
 
 8                the aggregate, exceed $3,000;
 
 9      (6)  For the office of the state senator--qualifying
 
10           contributions that, in the aggregate, exceed $2,500;
 
11      (7)  For the office of state house of representative--
 
12           qualifying contributions that, in the aggregate, exceed
 
13           $1,500; and
 
14      (8)  For all other offices, qualifying contributions that,
 
15           in the aggregate, exceed $500."]
 
16      SECTION 29.  Sections 11-221, 11-222, and 11-223, Hawaii
 
17 Revised Statutes, are repealed.
 
18      ["�11-221  Entitlement to payments.  Every candidate who is
 
19 eligible to receive public funds pursuant to section 11-220 is
 
20 entitled to payments pursuant to section 11-217 in an amount
 
21 equal to each qualifying contribution received by that candidate
 
22 or candidate committee during the matching payment period
 
23 involved.  A qualifying contribution shall be attributed to a
 

 
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 1 primary, special or general election.
 
 2      A candidate eligible to receive public funds must obtain a
 
 3 minimum amount of qualifying campaign contributions as set forth
 
 4 in section 11-219 in order to be entitled to receive any matching
 
 5 public funds in an election.  For the purpose of this section, a
 
 6 candidate must have at least one other qualified candidate as an
 
 7 opponent for the primary, special, or general election to receive
 
 8 public funds for that election.
 
 9      �11-222  Candidate funding; application.(a)  Application
 
10 forms for public funds shall be adopted by the commission and
 
11 shall provide for a sworn statement by the candidate that the
 
12 candidate has established eligibility under section 11-220 to
 
13 receive payments under section 11-217.  Each application shall be
 
14 accompanied by a qualifying campaign contribution statement or
 
15 statements, and shall be filed with the commission no later than
 
16 sixty days after the general election.  Upon approval by the
 
17 commission of the application and qualifying contribution
 
18 statement, the commission shall direct the comptroller to
 
19 distribute matching public funds up to the maximum of the amount
 
20 of public funds to which the candidate is entitled.
 
21      Public funds shall be distributed by the comptroller to each
 
22 eligible candidate within ten days from the date of the
 
23 candidate's initial application with the commission.
 

 
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 1      (b)  Each candidate in receipt of the qualifying sum of
 
 2 contributions established for the candidate's office may apply to
 
 3 the commission for public funding after the candidate has become
 
 4 a candidate in a primary, special primary, special, or general
 
 5 election.
 
 6      (c)  The commission shall make additional certifications
 
 7 within two weeks after receiving an application and supplemental
 
 8 contribution statement from an eligible candidate who requests
 
 9 additional public funding pursuant to section 11-221.
 
10      (d)  Initial certification by the commission under
 
11 subsection (a) and all determinations made by the commission
 
12 under this section are final and conclusive, except to the extent
 
13 they are subject to examination and audit by the commission under
 
14 section 11-225.
 
15      �11-223  Candidate funding; restrictions.(a)  Each
 
16 candidate who accepts public campaign funds under this subpart
 
17 shall be required to abide by the campaign spending limits for
 
18 the candidate's respective office as set forth in section 11-209.
 
19 Any candidate who exceeds the spending limits for the candidate's
 
20 respective office as set forth in section 11-209 shall return all
 
21 of the public campaign funds the candidate has received to the
 
22 Hawaii election campaign fund; provided that any candidate who
 
23 exceeds the limits by no more than one per cent shall return
 

 
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 1 twenty-five per cent of the fund.
 
 2      (b)  Public campaign funds provided under this subpart shall
 
 3 only be used to:
 
 4      (1)  Defray campaign expenses incurred by and paid for an
 
 5           eligible candidate or all committees authorized by such
 
 6           candidate; and
 
 7      (2)  Repay loans, the proceeds of which were used to defray
 
 8           campaign expenses.
 
 9      (c)  No candidate or committee authorized by a candidate
 
10 shall be entitled to receive any public funds under this subpart
 
11 unless the candidate and at least one other candidate for the
 
12 same elective seat have qualified to have their names on the
 
13 election ballot in the same election.
 
14      (d)  In no event shall any candidate or campaign treasurer
 
15 in receipt of public campaign funds transfer any portion of such
 
16 funds to another candidate for any primary, special primary,
 
17 special, or general election campaign.
 
18      (e)  All public funds received under this subpart shall be
 
19 deposited in a financial institution designated to do business in
 
20 the State.  No expenditures of any public funds received under
 
21 this subpart shall be made except by checks drawn on such
 
22 checking account.  The commission may require such reports
 
23 relating to the expenditure of such funds as it considers
 

 
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 1 appropriate.
 
 2      (f)  Upon the filing of a final report for any primary,
 
 3 special primary, special, or general election, each candidate who
 
 4 has spent an amount below the expenditure limit set for the
 
 5 candidate's respective office, but who has received the maximum
 
 6 amount of public funds allowable for the candidate's respective
 
 7 office, shall return all unexpended public funds to the Hawaii
 
 8 election campaign fund."]
 
 9      SECTION 30.  Act 254, Session Laws of Hawaii 1998, is
 
10 repealed.
 
11      SECTION 31.  In codifying the new sections added to chapter
 
12 11, part XII, subpart B, Hawaii Revised Statutes, by section 2 of
 
13 this Act, the revisor of statutes shall substitute appropriate
 
14 section numbers for letters used in the designation of the new
 
15 sections in this Act.
 
16      SECTION 32.  There is appropriated out of the general
 
17 revenues of the State of Hawaii the sum of $            or so
 
18 much thereof as may be necessary for fiscal year 1999-2000 for
 
19 the purposes of this Act, which shall be deposited into the clean
 
20 money fund established in section 2 of this Act.
 
21      SECTION 33.  The sum appropriated shall be expended by the
 
22 campaign spending commission for the purposes of this Act.
 

 
 
 
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 1      SECTION 34.  If any provision of this Act, or the
 
 2 application thereof to any person or circumstance is held
 
 3 invalid, the invalidity does not affect other provisions or
 
 4 applications of the Act which can be given effect without the
 
 5 invalid provision or application, and to this end the provisions
 
 6 of this Act are severable.
 
 7      SECTION 35.  Statutory material to be repealed is bracketed.
 
 8 New statutory material is underscored.
 
 9      SECTION 36.  This Act shall take effect on July 1, 2000;
 
10 provided that sections 25 and 26 shall apply to taxable years
 
11 beginning after December 31, 1999.
 
12 
 
13                           INTRODUCED BY:  _______________________