Hawaii-2015-HB628-Introduced

SECTION 1. Section 11-393, Hawaii Revised Statutes, is amended to read as follows:

"[[]§11-393[]] Identification of certain top contributors to noncandidate committees making only independent expenditures. (a) An advertisement shall contain an additional notice in a prominent location immediately after or below the notices required by section 11-391, if the advertisement is broadcast, televised, circulated, or published, including by electronic means, and is paid for by a noncandidate committee that certifies to the commission that it makes only independent expenditures. This additional notice shall start with the words, "The three top contributors [~~for this advertisement~~] to this noncandidate committee are", followed by the names of the three top contributors, as defined in subsection (e), who made the highest aggregate contributions to the noncandidate committee [~~for the purpose of funding the advertisement~~]; provided that:

(1) If a noncandidate committee is only able to identify two top contributors who made contributions [~~for the purpose of funding the advertisement~~], the additional notice shall start with the words, "The two top contributors [~~for this advertisement~~] to this noncandidate committee are", followed by the names of the two top contributors; and

(2) If a noncandidate committee is able to identify only one top contributor who made contributions [~~for the purpose of funding the advertisement~~], the additional notice shall start with the words, "The top contributor [~~for this advertisement~~] to this noncandidate committee is", followed by the name of the top contributor[;

~~(3)~~ If a noncandidate committee is unable to identify any top contributors who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The three top contributors for this noncandidate committee are", followed by the names of the three top contributors who made the highest aggregate contributions to the noncandidate committee; and

~~(4)~~ ~~If there are no top contributors to the noncandidate committee, the noncandidate committee shall not be subject to this section~~].

In no case shall a noncandidate committee be required to identify more than three top contributors per advertisement pursuant to this section.

(b) If a noncandidate committee has more than three top contributors who contributed in equal amounts, the noncandidate committee may select which of the top contributors to identify in the advertisement; provided that the top contributors not identified in the advertisement did not make a higher aggregate contribution than those top contributors who are identified in the advertisement. The additional notice required for noncandidate committees described under this subsection shall start with the words [~~"Three of the top contributors for this advertisement are" or~~] "Three of the top contributors to this noncandidate committee are", [~~as appropriate,~~] followed by the names of the three top contributors.

[(c) This section shall not apply to advertisements broadcast by radio or television of such short duration that including a list of top contributors in the advertisement would constitute a hardship to the noncandidate committee paying for the advertisement. A noncandidate committee shall be subject to all other requirements under this part regardless of whether a hardship exists pursuant to this subsection. The commission shall adopt rules pursuant to chapter 91 to establish criteria to determine when including a list of top contributors in an advertisement of short duration constitutes a hardship to a noncandidate committee under this subsection.

~~(d)~~] (c) Any noncandidate committee that violates this section shall be subject to a fine under section 11-410.

[~~(e)~~] (d) For purposes of this part, "top contributor" means a contributor who has contributed an aggregate amount of [~~$10,000~~] $100 or more to a noncandidate committee [~~within a twelve-month period~~] or through a covered transfer, as defined in section , prior to the purchase of an advertisement."

SECTION 2. Chapter 11, Hawaii Revised Statutes, is amended by adding a new section to part XIII to be appropriately designated and to read as follows:

"§11- Covered transfers; reporting. (a) Any person making a covered transfer shall report the recipient, amount of the covered transfer, and all top contributors and the amounts of their contributions, if any, to the recipient and the commission within twenty-four hours of making the covered transfer.

(b) Any person that receives a covered transfer shall report the source, amount of the covered transfer, and all top contributors and the amounts of their contributions, if any, to the commission within forty-eight hours of receipt.

(c) Any person that declines to accept a covered transfer shall return the covered transfer and notify the commission within forty-eight hours of receipt.

(d) Any person that violates this section shall be assessed a minimum administrative fine equivalent to two times the amount of the covered transfer, but shall not exceed an amount equivalent to three times the amount of the covered transfer.

(e) As used in this section:

"Covered transfer" means a payment or transfer of funds where the transferor is reasonably expected to know the funds will be used for expenditures or independent expenditures by a noncandidate committee or will be passed along to another party to be used for expenditures or independent expenditures.

"Top contributor" has the same meaning as in section 11-393."

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	628
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII