Bill Text: HI HB2533 | 2014 | Regular Session | Amended
Bill Title: Campaign Spending Commission; Public Funding for Election Candidates; Appropriation ($)
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Engrossed - Dead) 2014-03-19 - The committee on JDL deferred the measure. [HB2533 Detail]
Download: Hawaii-2014-HB2533-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2533 |
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TWENTY-SEVENTH LEGISLATURE, 2014 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CAMPAIGN FINANCE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this measure is to establish a public funding program for elections to the state house of representatives, to begin with the 2016 election.
SECTION 2. Chapter 11, Hawaii Revised Statutes, is amended by adding a new subpart to part XIII to be appropriately designated and to read as follows:
" . COMPREHENSIVE PUBLIC FUNDING FOR ELECTIONS TO THE
HAWAII HOUSE OF REPRESENTATIVES
§11-A Definitions. Except for terms that are specifically defined in this subpart, terms that are defined under section 11-302 shall apply to this subpart. When used in this subpart, unless the context clearly requires otherwise:
"Candidate" means an individual who is a candidate as defined in section 11-302 who seeks nomination for election or seeks election to the state house of representatives.
"Certification for public funding" means the decision by the commission that a candidate is certified to receive public funding in accordance with this subpart.
"Certified candidate" or "publicly-funded candidate" means a candidate who is certified by the commission as eligible for public funding under this subpart and who agrees to abide by the requirements of this subpart.
"Contested election" means, in a primary election, a certified candidate is opposed by one or more candidates for nomination and, in a general election, the certified candidate is opposed by one or more candidates for election to office.
"Declaration of intent to seek public funding" means the form completed by a candidate seeking public funding under this subpart, the filing of which triggers the candidate's ability to begin raising and spending seed money contributions and collecting qualifying names and contributions.
"District" means the respective representative district from which the candidate seeks election.
"General election year" means the period commencing January 1 of an even-numbered year in which a general election is held and ending on the general election day.
"Public funding" or "public funds" means campaign funds from the Hawaii election campaign fund under section 11-421, received by a certified candidate pursuant to this subpart.
"Qualifying contribution" means a monetary contribution made to a candidate who has filed a declaration of intent to seek public funding or the candidate's committee for the purposes of meeting the application criteria of section 11-F and that is made in cash or in the form of a check or a money order payable to the Hawaii election campaign fund and accompanied by the contributor's printed name, residence address, and signature affirming and acknowledging that the contribution was made from the contributor's personal funds, that nothing of value was received in exchange for the qualifying name and contribution, and that violation of the public funding law may result in an administrative fine or criminal prosecution.
"Qualifying period" means the period beginning on July 1 in the year prior to the general election year and ending on December 31 in the year prior to the general election year or ending upon the candidate's filing of the application for certification for public funding, whichever shall come first, during which a candidate or a candidate's committee may collect qualifying names and qualifying contributions to qualify for public funding under this subpart; provided that the commission has determined pursuant to section 11-R that the Hawaii election campaign fund has sufficient funds to make payments to publicly funded candidates during the election period.
"Seed money" means contributions made to a candidate or a candidate's committee by an individual in accordance with section 11-E and expended for the purpose of determining campaign viability.
"Surplus campaign funds" means any campaign contributions not spent during a prior election period by a candidate or a candidate's committee who previously sought election as a privately-funded candidate.
§11-B Applicability. This subpart shall apply to elections for the office of state representative.
§11-C Qualifications for public funding for state representative candidates. (a) A candidate may seek public funding under this subpart if the candidate or the candidate's committee, as applicable:
(1) Resides in the district from which election is sought as of the date of the filing of nomination papers for the primary election in the general election year in which the candidate seeks to be nominated or elected;
(2) Is a registered voter in the district from which election is sought;
(3) Files a declaration of intent to seek public funding with the commission between July 1 of the year prior to the election year and December 31 in the year prior to the general election year;
(4) Collects qualifying names and contributions in accordance with section 11-F;
(5) Accepts only the following contributions upon filing a declaration of intent to seek public funding:
(A) Seed money contributions; and
(B) Qualifying contributions; and
(6) Files an application for certification for public funding with the commission by December 31 of the year prior to the general election year.
§11-D Campaign Finance Requirements. Candidates and candidate's committees shall comply with all registration, reporting, contribution, expenditure, and disclosure requirements under this chapter, in addition to any requirements established under this subpart.
§11-E Seed money contributions; limitations on use of seed money; penalties. (a) The use of seed money shall be limited to expenditures necessary to determine whether sufficient support exists for a candidate to run for office as a publicly-funded candidate.
(b) The amount of seed money received, expended, or both, by a candidate seeking eligibility for public funding under this subpart of the candidate's committee shall not exceed $3,000, which shall include any personal funds, surplus campaign funds, or contributions received from individuals that the candidate or the candidate committee may choose to use.
(c) A candidate seeking eligibility for public funding or a candidate's committee shall not accept contributions of seed money from any individual whose contributions are prohibited under subpart E. All contributors whose seed money has been accepted shall be issued a receipt by the candidate or the candidate's committee in a form prescribed by the commission pursuant to 11-Q.
(d) Seed money shall not be collected or expended after the candidate has been certified as a publicly-funded candidate by the commission pursuant to 11-G.
(e) Any seed money contributions accepted in excess of $3,000 shall be deducted from the amount of public funding provided to the certified candidate if the certified candidate does not donate the unspent seed money to the Hawaii election campaign fund.
(f) A certified candidate who has surplus campaign funds from a previous election and the certified candidate's committee are prohibited from using those funds for anything other than in-office constituent communications pursuant to section 11-L and seed money pursuant to this section; provided that the seed money and surplus campaign funds for the purposes of this section shall not exceed $3,000 in the aggregate. Any remaining surplus campaign funds shall be frozen and maintained in a separate depository account from that established for the public funds under section 11-N. The candidate and the candidate's committee shall continue to file reports on the surplus campaign funds in accordance with subpart D and as otherwise may be required by the commission.
§11-F Application for public funds; qualifying names; qualifying contributions. (a) Candidates seeking certification for public funding under this subpart shall submit an application for certification that contains:
(1) At least two hundred qualifying names accompanied by a qualifying contribution of $5, in the same name; and
(2) Each contributor's printed name, residence address, and signature affirming and acknowledging that the contribution was made from the contributor's personal funds, that nothing of value was received in exchange for the qualifying name and contribution, and that violation of the public funding law may result in an administrative fine or criminal prosecution.
(b) To be counted as a qualifying name and accompanying contribution, the name and contribution shall be from an individual who is a registered voter and who resides within the respective representative district from which the candidate seeks nomination or election at the time the contribution is given. Nothing of value shall be given to the individual in exchange for the qualifying name and accompanying contribution.
(c) No qualifying name and accompanying contribution shall be collected prior to a candidate filing a declaration of intent to seek public funding with the commission.
(d) No qualifying name and accompanying contribution shall be collected by:
(1) An individual paid by a candidate or candidate committee to solicit qualifying names; or
(2) An individual employed by a political party defined in section 11-61 who is paid to solicit qualifying names.
(e) Candidates shall provide receipts for qualifying contributions in a form prescribed by the commission pursuant to section 11-Q.
(f) All qualifying contributions collected by a candidate or a candidate's committee, whether or not the candidate is certified, shall be deposited into the Hawaii election campaign fund. Any moneys received above the required minimum qualifying amount shall be retained by the commission for the purposes of the Hawaii election campaign fund.
(g) The candidate's application for certification for public funding shall be submitted to the commission by December 31 of the year prior to the general election year and shall be signed by the candidate and the candidate's campaign treasurer under penalty of perjury. The application shall contain any other information deemed necessary and appropriate by the commission.
§11-G Certification of qualification for public funds. (a) The commission, in coordination with the clerk for the county that includes the district from which election is sought, shall verify that the minimum required qualifying names and qualifying contributions were received from registered voters in the district from which the candidate seeks office, that the candidate resides in the district from which election is sought as of the date of the filing of nomination papers, and that the candidate is a registered voter in the district from which election is sought. The clerk for the county that includes the district from which election is sought shall provide to the commission any information needed to make the verification, including the names, addresses, and signatures of registered voters in that district.
(b) The commission shall issue a decision to certify or deny certification of a candidate as a publicly-funded candidate within ten business days following receipt of the candidate's completed application for certification for the receipt of public funds.
(c) Initial certification and all determinations by the commission under this section are final and conclusive, except to the extent that they are subject to examination and audit by the commission under section 11-434.
§11-H Public funds to be distributed to certified candidate. (a) Each certified candidate pursuant to this subpart for the office of state representative shall receive the amount calculated pursuant to paragraph (1) divided by the number calculated pursuant to paragraph (2):
(1) The total amount of expenditures of winners statewide for the office of state representative in the previous election period, less the sum of the expenditures of the three winners statewide for the office of state representative with the highest amounts of expenditures and the expenditures of the three winners statewide for the office of state representative with the lowest amounts of expenditures in the respective election in the previous election period; and
(2) The total number of persons who won statewide for the office of state representative in the respective election in the previous election period, less six persons.
(b) Upon the commission's approval of the application for certification for public funding, the commission shall direct the comptroller to distribute the public funds in the amount allowed pursuant to this section from the Hawaii election campaign fund by check or, when possible, by an automatic transfer of funds. Public funds shall be distributed to the candidate within twenty days of the date that the candidate's initial application is approved by the commission; provided the candidate has submitted proof of filing nomination papers to the commission.
(c) The commission shall be under no obligation to provide public moneys to a candidate under this subpart if moneys in the Hawaii election campaign fund are near depletion as determined by the commission pursuant to section 11-R.
§11-I Contributions and expenditures; penalties. (a) A certified candidate and the certified candidate's committee shall comply with the following restrictions on contributions and expenditures:
(1) Upon certification for public funding and until the general election, a certified candidate and the certified candidate's committee shall not accept for use in the campaign:
(A) Contributions from any person, except as permitted by sections 11-J and 11-L(c);
(B) Loans from any person, including a certified candidate;
(C) Contributions from political parties; and
(D) Any campaign material purchased or held from a date prior to filing the declaration of intent to seek public funds; and
(2) Upon certification for public funding and until the end of the general election, a certified candidate and the candidate's committee shall not expend for campaign purposes:
(A) Any money except public funds issued by the commission, and as permitted by sections 11-J and 11-L(c);;
(B) Public funds for purposes other than those permitted in this subpart; and
(C) Public funds outside the applicable campaign period.
(b) A certified candidate and the certified candidate's committee who accepts contributions in violation of this section shall be subject to a fine equal to three times the public funding received, in addition to any other action, fines, or prosecution under section 11-P and subpart I, or any provision of the Hawaii penal code.
(c) Except as permitted in sections 11-J and 11-L, a certified candidate and the certified candidate's committee who makes expenditures of more than one hundred per cent of the public funds allocated to the candidate shall pay to the Hawaii election campaign fund an amount equal to three times the excess expenditures, in addition to any other action, fines, or prosecution under section 11-P, subpart I, or any provision of the Hawaii penal code.
§11-J Supplemental contributions. Upon certification for public funding and until the general election, a certified candidate and certified candidate's committee may accept supplemental contributions; provided that the contributions shall not exceed $50 per person from individuals who reside in the State and are not from any individual whose contributions are prohibited under subpart E. For each contribution accepted pursuant to this section, the certified candidate or the certified candidate's committee shall issue a receipt to the contributor.
§11-K Publicly-funded candidate; reporting. (a) A certified candidate and the certified candidate's committee shall furnish to the commission complete campaign records, including all records of seed money contributions, qualifying contributions, surplus campaign fund contributions, supplemental contributions, and expenditures. A certified candidate and the certified candidate's committee shall fully cooperate with any audit or examination by the commission.
(b) The reporting requirements for certified candidates and certified candidates' committees under this subpart or that may be required by the commission shall be in addition to any other reporting requirements under this part.
(c) An individual who uses seed money to determine whether sufficient support exists to run for office as a publicly-funded candidate who has not already registered a candidate committee with the commission shall register a candidate committee by filing the organizational report required by section 11-321, within ten days of receiving more than $100 in seed money.
(d) All reports required by subpart D, seed money reports, and post-election reports shall be filed with the commission.
(e) Seed money reports shall be filed with the commission no later than:
(1) January 31 of an election year; and
(2) April 30 of an election year.
(f) Each report shall be current through:
(1) The six-month period ending on December 31 for the report filed on January 31; and
(2) The three-month period ending on March 31 for the report filed on April 30.
(g) The seed money reports shall include:
(1) The candidate's committee's name and address;
(2) The amount of cash on hand at the beginning of the reporting period;
(3) The reporting period and aggregate total for each of the following categories:
(A) Contributions;
(B) Expenditures; and
(C) Other receipts; and
(4) The cash on hand at the end of the reporting period.
(h) Schedules filed with the seed money reports shall also include:
(1) The amount and date of deposit of each contribution and the name and address of each contributor who makes contributions aggregating more than $100 in an election period; provided that if all the information is not on file, the contribution shall be returned to the contributor within thirty days of deposit;
(2) All expenditures made, including the name and address of each payee and the amount, date, and purpose of each expenditure. Expenditures for consultants, advertising agencies and similar firms, credit card payments, salaries, and candidate reimbursements shall be itemized to permit a reasonable person to determine the ultimate intended recipient of the expenditure and its purpose; and
(3) The amount, date of deposit, and description of other receipts and the name and address of the source of each of the other receipts.
(i) Post-election reports shall be submitted to the commission no later than twenty days after a primary election and no later than thirty days after a general election certifying that all public funds paid to the certified candidate and certified candidate's committee have been used in accordance with this subpart. The reports shall include information regarding all expenditures made, including the name and address of each payee and the amount, date, and purpose of each expenditure. Expenditures for consultants, advertising agencies and similar firms, credit card payments, salaries, and candidate reimbursements shall be itemized to permit a reasonable person to determine the ultimate intended recipient of the expenditure and its purpose.
(j) All certified candidates and certified candidates' committees shall file the reports required under this subpart by electronic means in the manner prescribed by the commission.
§11-L Publicly-funded candidate; continuing obligation. (a) A certified candidate and certified candidate's committee shall comply with all requirements under this subpart through the general election, except as provided in subsection (d), regardless of whether the certified candidate maintains eligibility for public funding through the general election.
(b) A certified candidate who is elected to the office sought, and the candidate's committee, may carry over and expend any surplus campaign funds up to $4,000 to pay for in-office constituent communications
(c) If the total surplus for a certified candidate who is elected to office falls under $4,000, subsection (d) notwithstanding, the certified candidate and the certified candidate's committee shall be allowed to raise the difference with private contributions pursuant to subpart E; provided that the contributions are received from an individual.
(d) Except for seed money contributions, qualifying contributions, supplemental contributions pursuant to section 11-J, and surplus campaign fund contributions pursuant to this section, a certified candidate who is elected to the office sought and the certified candidate's committee shall not accept private contributions from any person until either July 1 of the next odd-numbered year following the general election in which the candidate was last elected, or the date when the commission determines there are insufficient funds under section 11-R, whichever occurs earlier.
(e) If a certified candidate withdraws from seeking the nomination for or from the election, all unexpended public funds received by the candidate and the certified candidate's committee under this subpart shall be returned to the Hawaii election campaign fund within thirty days after withdrawal.
(f) A certified candidate who is successful in the primary election may carry over any unexpended public funds to the general election; provided that it is a contested election. If it is not a contested election, the certified candidate and the certified candidate's committee shall return all unexpended public funds received by the certified candidate under this subpart to the Hawaii election campaign fund within thirty days after the primary election.
(g) A certified candidate who is not successful in the primary or general election shall return all unexpended public funds received by the certified candidate and the certified candidate's committee under this subpart to the Hawaii election campaign fund within thirty days after the election in which the candidate was not successful.
§11-M Public funding; permitted uses. (a) Public funds shall be used only for the purpose of defraying expenses directly related to the certified candidate's campaign during the election campaign period for which the public funds are allocated.
(b) A candidate receiving funds under this subpart or the candidate's campaign treasurer shall not transfer any portion of the funds provided under this subpart to any other candidate for another campaign.
§11-N Deposit of, and access to, public funds. (a) All public fund, seed money contributions, supplemental contributions pursuant to section 11-J, and surplus campaign fund contributions pursuant to section 11-L received by a certified candidate and the certified candidate's committee shall be deposited directly into a depository institution as provided under section 11-351(a) and accessed through the use of debit cards and bank checks. No expenditure of public funds received under this subpart shall be made except by debit cards or checks drawn on such checking account.
(b) All reports required under subpart D and this subpart for financial disclosure shall include the most recent, available bank statement from the financial depository holding the public funds, as attested to by the candidate's committee.
§11-O Deposit of money into the Hawaii election campaign fund. The following moneys shall be deposited into the Hawaii election campaign fund established under section 11-421:
(1) Appropriations made by the legislature for the purposes of this subpart;
(2) Seed money contributions in excess of $3,000;
(3) Qualifying contributions, including any excess qualifying contributions;
(4) Unspent public funds returned to any certified candidate under this subpart, minus any surplus campaign funds up to $4,000 pursuant to section 11-L for certified candidates who are elected to office;
(5) Fines levied by the commission for violation of this subpart; and
(6) Voluntary donations made for the purposes of this subpart.
§11-P Violations; penalties. Any candidate or candidate's committee who misrepresents material facts to the commission in order to qualify for or receive public funding shall:
(1) Have the candidate's certification for public funding revoked. Upon revocation of certification, the certified candidate and the certified candidate's committee shall repay all public funds received within ten business days to the Hawaii election campaign fund; and
(2) Be subject to fines and penalties as specifically provided in this subpart and other fines or penalties pursuant to sections 11-410 and 11-412 and the Hawaii penal code.
§11-Q Forms; receipts; candidate guide. The campaign spending commission shall create and publish all forms and receipts required as well as a candidates' guide to the public funding program that shall include an explanation of rules and procedures applicable to candidates.
§11-R Sufficiency of funding for comprehensive public funding. On July 1 of each odd-numbered year before a general election year, the commission shall determine whether there is a minimum of $3,500,000 in the Hawaii election campaign fund established under section 11-421 to certify candidates during the next election and provide funding for the comprehensive public funding for elections authorized under this subpart.
Within five business days after the commission determines whether there is sufficient funding, then, the commission shall publish notice statewide, pursuant to section 1-28.5, whether the comprehensive public funding program shall become effective on January 1 of the following year. If there is insufficient funding, this subpart shall be inoperative."
SECTION 3. Section 11-421, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:
"(b) The fund shall consist of:
(1) All moneys collected from persons who have designated a portion of their income tax liability to the fund as provided in section 235-102.5(a);
(2) Any general fund appropriations; [and]
(3) All moneys designated for deposit into the fund pursuant to section 11-O; and
[(3)] (4) Other moneys collected pursuant to this
part.
(c)
Moneys in the fund shall be paid to candidates by the comptroller as prescribed
in [section] sections 11-431 and 11-G(b) and may be used
for the commission's operating expenses, including staff salaries and fringe
benefits."
SECTION 4. Section 11-423, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:
"(d) From January 1 of the year of any primary, special, or general election, the aggregate expenditures for each election by a candidate who voluntarily agrees to limit campaign expenditures, inclusive of all expenditures made or authorized by the candidate alone, all treasurers, the candidate committee, and noncandidate committees on the candidate's behalf, shall not exceed the following amounts expressed, respectively multiplied by the number of voters in the last preceding general election registered to vote in each respective voting district:
[(1) For the office of governor — $2.50;
(2) For the office of lieutenant governor
— $1.40;
(3)] (1) For
the office of mayor — $2.00;
[(4)] (2) For
the offices of [state senator, state representative,] county council
member[,] and prosecuting attorney — $1.40; and
[(5)] (3) For
all other offices — 20 cents."
SECTION 5. Section 11-425, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:
"(a)
The maximum amount of public funds available in each election to a candidate
for the office of [governor, lieutenant governor, or] mayor shall not
exceed ten per cent of the expenditure limit established in section 11-423(d)
for each election.
(b)
The maximum amount of public funds available in each election to a candidate
for the office of [state senator, state representative,] county council
member[, and] or prosecuting attorney shall not exceed fifteen
per cent of the expenditure limit established in section 11-423(d) for each
election."
SECTION 6. Section 11-429, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) As a condition of receiving public funds for a primary or general election, a candidate shall not be unopposed in any election from which public funds are sought, shall have filed an affidavit with the commission pursuant to section 11‑423 to voluntarily limit the candidate's campaign expenditures, and shall be in receipt of the following sum of qualifying contributions from individual residents of Hawaii:
[(1) For the office of governor —
qualifying contributions that in the aggregate exceed $100,000;
(2) For the office of lieutenant governor
— qualifying contributions that in the aggregate exceed $50,000;
(3)] (1) For the office of mayor for each
respective county:
(A) City and County of Honolulu — qualifying contributions that in the aggregate exceed $50,000;
(B) County of Hawaii — qualifying contributions that in the aggregate exceed $15,000;
(C) County of Maui — qualifying contributions that in the aggregate exceed $10,000; and
(D) County of Kauai — qualifying contributions that in the aggregate exceed $5,000;
[(4)] (2) For the office of prosecuting attorney
for each respective county:
(A) City and County of Honolulu — qualifying contributions that in the aggregate exceed $30,000;
(B) County of Hawaii — qualifying contributions that in the aggregate exceed $10,000; and
(C) County of Kauai — qualifying contributions that in the aggregate exceed $5,000;
[(5)] (3) For the office of county council — for
each respective county:
(A) City and County of Honolulu — qualifying contributions that in the aggregate exceed $5,000;
(B) County of Hawaii — qualifying contributions that in the aggregate exceed $1,500;
(C) County of Maui — qualifying contributions that in the aggregate exceed $5,000; and
(D) County of Kauai — qualifying contributions that in the aggregate exceed $3,000;
[(6) For the office of state senator —
qualifying contributions that, in the aggregate exceed $2,500;
(7) For the office of state
representative — qualifying contributions that, in the aggregate, exceed
$1,500;
(8)] (4) For the office of Hawaiian affairs —
qualifying contributions that, in the aggregate, exceed $1,500; and
[(9)] (5) For all other offices, qualifying
contributions that, in the aggregate, exceed $500."
SECTION 7. Section 11-431, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a)
Upon the commission's approval of the application and statement of qualifying
contributions, the commission shall direct the comptroller to distribute
matching public funds up to the maximum amount of public funds allowed by
section 11-425[.] by check or, when possible, by an automatic
transfer of funds. Public funds shall be distributed to the candidate
within twenty days from the date that the candidate's initial application and
qualifying contribution statement is approved by the commission."
SECTION 8. The campaign spending commission shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature not later than twenty days prior to the convening of the regular sessions of 2015 and 2016 on further statutory amendments to facilitate the implementation of this Act.
SECTION 9. Moneys in the Hawaii election campaign fund under section 11-421, Hawaii Revised Statutes, may be expended by the campaign spending commission in preparation for the implementation of the public funding of candidates in elections taking place in 2016, consistent with the purposes of this Act.
SECTION 10. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 11. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 12. This Act shall take effect on July 1, 2015; provided that sections 8 and 9 of this Act shall take effect on July 1, 2014.
Report Title:
Campaign Spending Commission; Public Funding for Election Candidates; Appropriation
Description:
Creates public funding program of candidates for the offices of state representative. Repeals provisions under the existing partial public financing program specifically applicable to candidates for the offices of governor, lieutenant governor, state senator, and state representative pertaining to campaign expenditure limits, maximum amounts of public funding, and minimum amounts of qualifying contributions. Effective July 1, 2015. (HB2533 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
