Bill Text: HI SB2953 | 2012 | Regular Session | Introduced

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Bill Title: Campaign Spending; Reporting; Independent Expenditure

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced - Dead) 2012-01-27 - (S) Referred to JDL. [SB2953 Detail]

Download: Hawaii-2012-SB2953-Introduced.html

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THE SENATE	S.B. NO.	2953
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to campaign spending.

 

 

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

 

     SECTION 1.  The legislature recognizes that the State has a duty to its citizens to ensure that information concerning campaign contributions and expenditures is readily available and easily accessible by the public.  Disclosure is even more important to the elections process in light of the dramatic changes in contributions policy reflected in recent court cases, such as Citizens United v. Federal Election Commission, 130 S.Ct. 876 (U.S. 2010).  In Hawaii, noncandidate committee reports and electioneering communication reports document some independent campaign expenditures, but more detail is needed to ensure transparency.

     The purpose of this Act is to improve transparency by clarifying reporting requirements in noncandidate committee and electioneering communications reports, ensuring disclosure for persons other than individuals, including independent expenditures, requiring reporting of late expenditures, improving disclosures in advertisements, and ensuring disclosure in cases of transferred funds.

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

     "§11-A  Registration of persons other than individuals, candidates, candidate committees, and noncandidate committees.  All persons required to report to the campaign spending commission under section 11-B shall register with the commission.  The registration shall include:

     (1)  The person's name, address, and telephone number; and

     (2)  The name and telephone number of a contact individual, if different from the information provided in (1).

     §11-B  Filing report by persons other than individuals, candidates, candidate committees, and noncandidate committees.  (a)  A person other than an individual, candidate, candidate committee, or noncandidate committee shall file a report with the commission for contributions to candidates, candidate committees, or noncandidate committees or independent expenditures that aggregate more than $1,000 per two-year election period; provided that this section shall not authorize contributions to a candidate, candidate committee, or noncandidate committee where otherwise prohibited by this part.  The reporting shall be made pursuant to the time requirements contained in section 11-336 and section 11-338.

     (b)  The authorized person shall file preliminary, final, and supplemental reports that disclose the following information:

     (1)  The person's name and address;

     (2)  The reporting period and election period aggregate totals for each of the following categories:

         (A)  Contributions made to candidates, candidate committees, and noncandidate committees; and

         (B)  Independent expenditures; and

     (3)  Certification by the chief executive officer, board chair, president, or other so designated highest ranking individual of the authorized persons' organization, that no expenditures have been coordinated with a candidate, candidate committee, or noncandidate committee; or agent of a candidate, candidate committee, or noncandidate committee.

     (c)  Schedules filed with the reports shall include the following additional information:

     (1)  The amount and date of each contribution made;

     (2)  The name and address of the candidate committee or noncandidate committee to which the contribution was made; and

     (3)  All independent expenditures, including the name and address of each payee and the amount, date, and purpose of each expenditure; provided that:

         (A)  Expenditures for consultants, advertising agencies, and similar firms; credit card payments; salaries; and candidate reimbursements shall be itemized to allow a reasonable person to determine the intended recipient of the expenditure and its purpose; and

         (B)  The purpose of an independent expenditure shall include the name of the candidate or issue that is supported or opposed by the expenditure, and whether the expenditure supports or opposes the candidate or issue;

     (d)  If a person, in addition to using the person's own funds, solicits or accepts donations from other persons for the purpose of influencing an election, the person shall register and report as a noncandidate committee or, if a corporation, business, union, or other organization, shall establish a separate, segregated account for electioneering purposes, register that account as a noncandidate or ballot issue committee, and file reports pursuant to sections 11-335, 11-336, and 11-338.

     (e)  All persons covered by this part that make political contributions, independent expenditures for political purposes, or electioneering communications shall place, in prominent view, on their website, a notice that the entity has engaged in political activity and a link to its filing with the commission or information regarding how to obtain a copy of that filing from the entity, if the official filing is not available on-line.

     §11-C  Transfers of funds.  (a)  If any person other than an individual makes a transfer of funds to another person for the purpose of making an independent expenditure or electioneering communication, the person shall be deemed to be making an independent expenditure or electioneering communications and shall be responsible for the filing of reports pursuant to sections 11-335 and 11-338.

     (b)  A person shall be deemed to have transferred funds for the purpose of making campaign-related expenditures if one of the following exists:

     (1)  The funds have been solicited for such purpose;

     (2)  There have been substantial discussions regarding such expenditures between the person administering the transfer and the person receiving the funds;

     (3)  The person transferring the funds has knowledge of the intent to make campaign-related expenditures by the person receiving the funds; or

     (4)  The person receiving the funds made a campaign-related expenditure in the last two-year election period or the current two-year election period."

     SECTION 3.  Section 11-314, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§11-314[]]  Duties of the commission.  The duties of the commission under this part are to:

     (1)  Develop and adopt forms required by this part;

     (2)  Adopt and publish a manual for all candidates, candidate committees, and noncandidate committees, describing the requirements of this part, including uniform and simple methods of recordkeeping;

     (3)  Preserve all reports required by this part for at least ten years from the date of receipt by the commission;

     (4)  Permit the inspection, copying, or duplicating of any report required by this part pursuant to rules adopted by the commission under chapter 91; provided that this paragraph shall not apply to the sale or use of information under section 11-344;

     (5)  Ascertain whether any person, candidate, candidate committee, noncandidate committee, or party has failed to file a report required by this part or has filed a substantially defective or deficient report.  The commission shall notify these persons by first class mail that a fine may be assessed for the failure to file or the filing of a substantially defective or deficient report, and the defective or deficient report shall be corrected and explained.  All fines collected under this section as authorized by section 11-410 shall be deposited in the general fund of the State;

     (6)  Hold public hearings;

     (7)  Investigate and hold hearings for receiving evidence of any violations pursuant to subpart I of this part;

     (8)  Adopt rules pursuant to chapter 91;

     (9)  Request the initiation of prosecution for the violation of this part pursuant to section 11-411;

    (10)  Administer and monitor the distribution of public funds under this part;

    (11)  Suggest accounting methods for persons, candidates, candidate committees, or noncandidate committees in connection with reports and records required by this part;

    (12)  Employ or contract with, without regard to chapters 76, 78, and 89, persons it finds necessary for the performance of its functions, including a full-time executive director, and to fix their compensation; provided that the commission shall have the authority, at its discretion, to dismiss persons employed by or contracted with the commission;

    (13)  Conduct random audits and field investigations, as necessary; and

    (14)  File for injunctive relief when indicated."

     SECTION 4.  Section 11-331, Hawaii Revised Statutes, is amended to read as follows:

     §11-331  Filing of reports, generally.  (a)  Every report required to be filed by a candidate or candidate committee shall be certified as complete and accurate by the candidate and treasurer.

     (b)  Every report required to be filed by a noncandidate committee shall be certified as complete and accurate by the chairperson and treasurer.

     (c)  Every report filed by a person other than an individual, candidate, candidate committee, or noncandidate committee shall be certified as complete and accurate by the chief executive officer, board chair, president, or other so designated highest ranking individual of the entity.

     (d)  Every report filed by an individual shall be certified as complete and accurate by that individual.

     [(c)] (e)  All reports required to be filed under this part shall be filed on the commission's electronic filing system.

     [(d)] (f)  For purposes of this part, whenever a report is required to be filed with the commission, "filed" means that a report shall be filed with the commission's electronic filing system by the date and time specified for the filing of the report by:

     (1)  The candidate or candidate committee of a candidate who is seeking election to the:

         (A)  Office of governor;

         (B)  Office of lieutenant governor;

         (C)  Office of mayor;

         (D)  Office of prosecuting attorney;

         (E)  County council;

         (F)  Senate;

         (G)  House of representatives; or

         (H)  Office of Hawaiian affairs; or

     (2)  A noncandidate committee required to be registered with the commission pursuant to section 11-323.

     [(e)] (g)  To be timely filed, a committee's reports shall be filed with the commission's electronic filing system on or before 11:59 p.m. Hawaiian standard time on the filing date specified.

     [(f)] (h)  All reports filed under this part are public records."

     SECTION 5.  Section 11-335, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  The authorized person in the case of a party, or treasurer in the case of a noncandidate committee that is not a party, shall file preliminary, final, and supplemental reports that disclose the following information:

     (1)  The noncandidate committee's name and address;

     (2)  The cash on hand at the beginning of the reporting period and election period;

     (3)  The reporting period and election period aggregate totals for each of the following categories:

         (A)  Contributions[;] received;

         (B)  Contributions paid out;

        [(B)] (C)  Expenditures; and

        [(C)] (D)  Other receipts;

     (4)  The cash on hand at the end of the reporting period; and

     (5)  The surplus or deficit at the end of the reporting period.

     (b)  Schedules filed with the reports shall include the following additional information:

     (1)  The amount and date of deposit of each contribution received and the name, address, occupation, and employer of each contributor making a contribution aggregating more than $100 during an election period, which was not previously reported; provided that if all the information is not on file, the contribution shall be returned to the contributor within thirty days of deposit;

     (2)  The amount and date of each contribution made, and the name and address of the candidate committee or noncandidate committee to which the contribution was made;

    [(2)] (3)  All expenditures, including the name and address of each payee and the amount, date, and purpose of each expenditure[.]; provided that:

         (A)  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

         (B)  Any independent expenditure purpose shall include the name of the candidate or issue that is supported or opposed by the expenditure, and whether the expenditure supports or opposes the candidate or issue;

     (4)  For noncandidate committees solely making independent expenditures, certification that no expenditures have been coordinated with a candidate, candidate committee, or noncandidate committee; or agent of a candidate, candidate committee or noncandidate committee;

    [(3)] (5)  The amount, date of deposit, and description of other receipts and the name and address of the source of each of the other receipts;

    [(4)] (6)  A description of each durable asset, the date of acquisition, value at the time of acquisition, and the name and address of the vendor or contributor of the asset; and

    [(5)] (7)  The date of disposition of a durable asset, value at the time of disposition, method of disposition, and name and address of the person receiving the asset."

     SECTION 6.  Section 11-337, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§11-337[]]  Reporting expenditures.  For purposes of this part, an expenditure is deemed to be made or incurred when the services are rendered or the product is delivered.  Services rendered or products delivered for use during a reporting period are deemed delivered or rendered during the period or periods of use; provided that these expenditures shall be reasonably allocated between periods in accordance with the time the services or products are actually used.

     Any expenditures contracted or paid for that are to be rendered during the last three days of the election period shall be included in a late expenditures report."

     SECTION 7.  Section 11-338, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§11-338[]]  Late contributions; late expenditures; report.  (a)  The candidate, authorized person in the case of a noncandidate committee that is a party, or treasurer in the case of a candidate committee or other noncandidate committee, that, within the period of fourteen calendar days through four calendar days prior to any election, makes contributions aggregating more than $500, or receives contributions from any person aggregating more than $500, shall file a late contribution report by means of the commission's electronic filing system on or before the third calendar day prior to the election.

     (b)  The late contribution report shall include the following information:

     (1)  Name, address, occupation, and employer of the contributor;

     (2)  Name of the candidate, candidate committee, or noncandidate committee making or receiving the contribution;

     (3)  The amount of the contribution;

     (4)  The contributor's aggregate contributions to the candidate, candidate committee, or noncandidate committee; and

     (5)  The purpose, if any, to which the contribution will be applied[.], including contributions to a noncandidate committee, the name of any candidate or issue to be supported or opposed and whether that candidate or issue is to be supported or opposed.

     (c)  A noncandidate committee or a person that registers pursuant to section 11-332 that, within the period of fourteen calendar days through four calendar days prior to any election, makes contributions or independent expenditures aggregating more than $500, shall file a late expenditures report by means of the commission's electronic filing system on or before the third calendar day prior to the election.

     (d)  The late expenditures report shall disclose the following information:

     (1)  The amount, date, and recipient for each expenditure made to a candidate, candidate committee, or noncandidate committee;

     (2)  The vendor name, address, and contact information for each expenditure;

     (3)  The amount and date of the expenditure;

     (4)  The purpose of the expenditure, including the name of any candidate supported directly or by implication by the expenditure, and whether the expenditure was made to support or oppose that candidate.

     [(c)] (e)  A late contribution report or late expenditures report filed pursuant to this section shall be in addition to any other report required to be filed by this part."

     SECTION 8.  Section 11-340, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  True and accurate reports shall be filed with the commission on or before the due dates specified in this part.  The commission may assess a fine against a person, candidate committee, or noncandidate committee that is required to file a report under this part if the report is not filed by the due date or if the report is substantially defective or deficient, as determined by the commission."

     SECTION 9.  Section 11-341, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§11-341[]]  Electioneering communications; statement of information.  (a)  Each person who makes [a disbursement] an expenditure for electioneering communications in an aggregate amount of more than $2,000 during any calendar year shall file with the commission a statement of information within twenty-four hours of each disclosure date provided in this section.

     (b)  Each statement of information shall contain the following:

     (1)  The name of the person making the [disbursement,] expenditure, name of any person or entity sharing or exercising discretion or control over such person, and the custodian of the books and accounts of the person making the [disbursement;] expenditure;

     (2)  The names and titles of the executives who authorized the expenditure or board of directors of the entity, if the expenditure was made by a person other than an individual;

    [(2)] (3)  The state of incorporation and principal [place of business] address of the entity or, for an individual, the name, address, occupation, and employer of the [person] individual making the [disbursement;] expenditure;

    [(3)] (4)  The amount of each [disbursement] expenditure during the period covered by the statement and the identification of the person to whom the disbursement was made;

    [(4)] (5)  The elections to which the electioneering communications pertain and the ballot issue or names[, if known,] of [the] any candidates [identified or to be identified;] or issues supported or opposed and whether the communication supported or opposed those candidates or issues;

    [(5)] (6)  If the [disbursements] expenditures were made by a candidate committee or noncandidate committee, the names and addresses of all persons who contributed to the candidate committee or noncandidate committee for the purpose of publishing or broadcasting the electioneering communications;

    [(6)] (7)  If the [disbursements] expenditures were made by an organization other than a candidate committee or noncandidate committee, the names and addresses of all persons who contributed to the organization for the purpose of publishing or broadcasting the electioneering communications; and

    [(7)] (8)  Whether or not any electioneering communication is made in coordination, cooperation, or concert with or at the request or suggestion of any candidate, candidate committee, or noncandidate committee, or agent of any candidate if any, and if so, the identification of the candidate, a candidate committee or a noncandidate committee, or agent involved.

     (c)  A statement of information filed pursuant to this section shall be in addition to any other report required to be filed by this part.

     [(c)] (d)  For purposes of this section:

     "Disclosure date" means, for every calendar year, the first date by which a person has made [disbursements] expenditures during that same year of more than $2,000 in the aggregate for electioneering communications, and the date of any subsequent [disbursements] expenditures by that person for electioneering communications.

     "Electioneering communication" means any advertisement or other communication that is broadcast from a cable, satellite, television, or radio broadcast station; published in any periodical or newspaper; disseminated electronically; disseminated automatically by telephone; or sent by mail at a bulk rate, or otherwise made visible to 1,000 or more people, and that:

     (1)  Refers to a clearly identifiable candidate;

     (2)  Is made, or scheduled to be made, either within thirty days prior to a primary or initial special election or within sixty days prior to a general or special election; and

     (3)  [Is not susceptible to any reasonable interpretation other than as an appeal to vote for or against a specific candidate.] Can be reasonably interpreted as supporting or opposing a candidate or issue.

     "Electioneering communication" shall not include communications:

     (1)  In a news story or editorial disseminated by any broadcast station or publisher of periodicals or newspapers, unless the facilities are owned or controlled by a candidate, candidate committee, or noncandidate committee;

    [(2)  That constitute expenditures by the disbursing organization;

     (3)] (2)  In house bulletins; or

    [(4)] (3)  That constitute a candidate debate or forum, or solely promote a debate or forum and are made by or on behalf of the person sponsoring the debate or forum.

     [(d)] (e)  For purposes of this section, a person shall be treated as having made [a disbursement] an expenditure if the person has executed a contract to make the [disbursement.] expenditure."

     SECTION 10.  Section 11-391, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§11-391[]]  Advertisements.  (a)  Any advertisement that is broadcast, televised, circulated, or published, including disseminated electronically, or otherwise made visible to 1,000 or more people, shall contain:

     (1)  The name and address of the candidate, candidate committee, noncandidate committee, or other person paying for the advertisement; and

     (2)  A notice in a prominent location stating either that:

         (A)  The advertisement [is published, broadcast, televised, or circulated with] has the approval and authority of the candidate; provided that an advertisement paid for by a candidate, candidate committee, or ballot issue committee does not need to include the notice; or

         (B)  The advertisement [is published, broadcast, televised, or circulated without the approval and authority of] has not been approved by the candidate.

     (b)  If the advertisement is paid for by a person other than a candidate or candidate committee, the advertisement shall also contain an additional notice in a prominent location immediately after or below the notices required in paragraphs (1) and (2).  This additional notice shall include the following phrase: "Top donors for this advertisement are" to be followed by the names of the contributors that have made the five largest aggregate contributions for the purposes of the advertisement; or "Top donors for this entity are" to be followed by the names of the contributors that have made the five largest aggregate contributions during the two-year election period.

     [(b)] (c)  The fine for violation of this section, if assessed by the commission, shall not exceed $25 for each advertisement that lacks the information required by this section, and shall not exceed an aggregate amount of $5,000."

     SECTION 11.  Section 11-332, Hawaii Revised Statutes, is repealed.

     ["[§11-332]  Filing report by corporations.   (a)  A corporation shall file a report with the commission for contributions from its own treasury that aggregate more than $1,000 per two year election period made directly to a candidate or candidate committee; provided that this section shall not authorize contributions to a candidate or candidate committee where otherwise prohibited by this part.  The reporting shall be made pursuant to the time requirements contained in section 11‑336 and section 11-338.

     (b)   The filing shall include the name of the corporation, business address, a contact individual, and amounts contributed that are more than $100 to each candidate or candidate committee."]

     SECTION 12.  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 13.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 14.  This Act shall take effect on July 1, 2012, or upon approval, whichever comes later.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Campaign Spending; Reporting; Independent Expenditure

 

Description:

Clarifies reporting requirements in noncandidate committee and electioneering communications reports, ensures disclosure for persons other than individuals, including independent expenditures, requires reporting of late expenditures, improves disclosures in advertisements, and ensures disclosure in cases of transferred funds.

 

 

 

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