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HomeMy WebLinkAboutCOM 0839.001 2006-2008 BOB .JE1lCOB.SO1v333 Kilauea Avenue, Second Floor COUnCllmembCl' lien Franklin Building, Hilo, Hawaii 96720 Mailing Address: 25 Chair, Environmental Management Committee Aupuni Street, Suite 20(1 ~•b:•~:~. Phone: (808) 961-8263 Vice-Chair, Finance Committee Fax: (808) 961-8912 E-Mail: jjaco@co.hawaii.hi.us HAWAII COUNTY COUNCIL County of Hawai `i MEMORANDUM v Date: December 24, 2007 C c) n Z7 z,; ro ! f s - To: Pete Hoffmann, Chair and Members of the Hawaii County Council L From: Bob Jacobson, Council Member District 6 s Re: Resolution 439-07 (Comm. 839) Urging our state legislators to pass HB661 HD1 with amendments that establish comprehensive public funding for elections to Hawaii County Council. Attached for your review is a copy of HB661 HD1 as requested in the Public Works and Intergovernmental Relations Committee meeting on December 18, 2001. I have distributed copies to all Council members for their review as this matter has been postponed for a future meeting. BJ/bl Att. Comm. No. 0 A . Ref. To: W 112 C~ Ref. Dofe "Q 2 4 2007 District 6 - Upper Puna, Ka fl, and South Kona Hawaii County Is An Equal Opportunity Provider And Employer S. B. NO. Report Title: Elections; Campaign Spending; Public Funding Description: Creates a comprehensive public funding program for county council elections. Establishes qualifications, limitations on funding and use of funds, and reporting requirements. Makes conforming amendments to chapter 11, Hawaii Revised Statutes, relating to elections. N 0 O l? T.l C 0 O O ` ~J a Z r ro ~l cn 2008-0343 SB SMA.doc IIIIBI111E THE SENATE TWENTY-FOURTH LEGISLATURE, 2008 S . B . NO. STATE OF HAWAII A BILL FOR AN ACT RELATING TO CAMPAIGN SPENDING. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAH: 1 SECTION 1. The legislature finds that there is a pervasive 2 and expanding influence of private contributions and 3 expenditures on public elections in the State that negatively 4 influences the democratic process, negatively impacts the rights 5 of the citizens of Hawaii to vote for the candidate of their 6 choice, and affects citizen's right to enjoy equal and 7 meaningful participation in the democratic process, rights that S are guaranteed by the First and Fourteenth Amendments of the 9 United States Constitution, as well as section 1, 2, 4, and 8 of 10 article I of the Constitution of the State of Hawaii. 11 The legislature additionally finds that often times 12 candidates for statewide office who lack access to personal 13 wealth or wealthy donors are precluded from running a 14 competitive campaign because their voices are drowned out by 15 those who can afford to saturate their constituents with 16 television, radio, and other expensive types of mass media, all 2008-0343 SB SMA.doc Page 2 S.B. NO. 1 indispensable instruments of effective political speech in this 2 day and age. 3 In recent years, private contributions to statewide 4 campaigns and independent expenditures made to influence 5 statewide campaigns have increased greatly. This dramatic 6 influx of private money, coupled with recent high-profile law 7 enforcement investigations and prosecutions of campaign finance 8 abuses have undermined the public's confidence in the political 9 process and fueled the public perception of corruption in Hawaii 10 state politics. 11 The dominance of private funding in state elections also 12 burdens candidates and elected officials with the incessant 13 rigors of fundraising and decreases the time available to carry 14 out their public responsibilities. Further, private funding 15 creates a danger of actual corruption by compelling elected 16 officials to accept money from private interests that are 17 directly affected by governmental actions. 18 The State's existing system of partial public funding for 19 campaigns has not created a viable alternative to private 20 sources of funding. Only nine per cent of candidates statewide 21 participated in the partial public funding system in the 2004 2008-0343 SB SMA.doc 1111MMMM Page 3 S.B. NO. 1 election, in part, because the available partial public funding 2 is insufficient to run a competitive campaign. 3 The State has compelling interests in preserving the 4 integrity of its democratic system, promoting an open and robust 5 debate on public issues, and protecting the constitutional 6 rights of its citizens. To serve these compelling interests, 7 the legislature finds that it is essential to provide 8 comprehensive public funding to candidates who agree to abide by 9 campaign contribution and expenditure limits and meet other 10 criteria. 11 The purpose of this Act is to create a comprehensive public 12 funding system for county races that will offer a viable and 13 competitive alternative to private funding sources, thereby 14 substantially refucing or eliminating the deleterious effects of 15 private financing. 16 SECTION 2. Chapter 11, Hawaii Revised Statutes, is amended 17 by adding a new subpart to part XII, to be appropriately 18 designated and to read as follows: 19 Comprehensive Public Funding for County Elections 20 511-A Definitions. As used in this subpart, unless the 21 context clearly requires otherwise: 2008-0343 SE SMA.doc 01110®, Page 4 S.B. NO. 1 "Candidate" means an individual who seeks nomination for 2 election or seeks election to a county council, as defined in 3 this section, and who meets the criteria of section 11-C. 4 "Candidate's committee" means a committee, as defined in 5 section 11-191, that makes an expenditure or accepts a 6 contribution on behalf of a candidate for nomination for 7 election, or reelection, to a county council, with the 8 candidate's authorization. 9 "Certification for comprehensive public funding" means the 10 decision by the commission that a candidate is certified to 11 receive public funding in accordance with this subpart. 12 "Certified candidate" or "comprehensive publicly funded 13 candidate" means a participating candidate who is certified by 14 the commission as eligible for comprehensive public funding 15 under this subpart and who agrees to abide by the requirements 16 of this subpart. 17 "Commission" shall have the same meaning as in section 18 11-191. 19 "Committee" shall have the same meaning as in section 20 i1-191. 21 "Contested election" means, in a primary election, the 22 certified candidate is opposed by one or more candidates for the 2008-0343 SB SMA.doc 111111 Page 5 S.B. NO. 1 nomination; and, in a general election, the certified candidate 2 is opposed by one or more candidates for election to the office. 3 "Contribution" shall have the same meaning as in section 4 11-191. 5 "County" means the county in the State with the largest 6 land mass. 7 "County council" means the county council of the county in 8 the State with the largest land mass. 9 "Declaration of intent to seek comprehensive public 10 funding" means the form completed by a participating candidate 11 and the filing of which triggers the participating candidate's 12 ability to begin collecting qualifying contributions. 13 "District" means a county district, as established in 14 accordance with section 46-1.5. 15 "Election period" shall have the same meaning as in section 16 11-191. 17 "Equalizing funds" means additional public funds released 18 by the commission to a comprehensive publicly funded candidate 19 to allow the publicly funded candidate to stay financially 20 competitive with a nonparticipating candidate in a contested 21 election. 2008-0343 SB SMA.doc Page6 S.B. NO. 1 "Excess expenditure" means the amount of comprehensive 2 public funds spent or obligated to be spent by a comprehensive 3 publicly funded candidate in excess of one hundred per cent of 4 the allocated funds for a primary election, general election, or 5 both. 6 "Expenditure" shall have the same meaning as in section 7 11-191. 8 "General election campaign period" means the period 9 beginning the day after the primary election and ending two 10 weeks after a general election. 11 "General election year" means the period commencing 12 January 1 of an even-numbered year in which a general election 13 is held and ending two weeks after the general election. 14 "Hawaii election campaign fund" shall have the same meaning 15 as in section 11-217. 16 "Independent expenditure" means an expenditure by a 17 noncandidate committee, party, or any other person for a 18 communication that expressly advocates the nomination, election, 19 or defeat of a clearly identified certified candidate or 20 nonparticipating candidate and that is not made in concert or 21 cooperation with or as part of any coordinated activity or at 22 the request or suggestion of the certified candidate or 200®8-0343 SB SMA.doc I!I® Page 7 S.B. NO. 1 nonparticipating candidate, a candidate's committee, or their 2 agents. For the purposes of this section, "clearly identified" 3 means that the name, likeness, photograph, or drawing of the 4 certified candidate or nonparticipating candidate is used, or 5 the identity of the certified candidate or nonparticipating 6 candidate is apparent by unambiguous reference. 7 "Individual" shall have the same meaning as in section 8 11-191. 9 "Loan" shall have the same meaning as in section 11-191. 10 "Noncandidate committee" shall have the same meaning as in 11 section 11-191. 12 "Nonmonetary contribution" means a contribution other than 13 of money that may include goods or services. 14 "Nonparticipating candidate" means a candidate who does not 15 qualify for or receive public funding during an election period 16 and is involved in a contested election with a certified 17 participating candidate. 18 "Participating candidate" means a candidate who is seeking 19 certification for comprehensive public funding under this 20 subpart. 21 "Party" shall have the same meaning as in section 11-191. 22 "Person" shall have the same meaning as in section 11-191. 2008-0343 SB SMA.doc Page8 S.B. NO. 1 "Primary election campaign period" means the period in a 2 primary election year beginning with the certification for 3 comprehensive public funding under this subpart and ending two 4 weeks after the primary election. 5 "Public funding" or "public funds" means campaign funds 6 from the Hawaii election campaign fund received by an eligible 7 candidate pursuant to subpart B or this subpart. 8 "Qualifying contribution" means a $5 monetary contribution 9 made to a participating candidate for purposes of meeting the 10 criteria of section 11-F. 11 "Qualifying period" means the period in a general election 12 year, beginning January 1 and ending on the deadline for filing 13 candidate nomination papers to run in the primary election of a 14 general election year during which a candidate may collect 15 qualifying campaign contributions to qualify for comprehensive 16 public funding under this subpart; provided the commission has 17 determined that the Hawaii election campaign fund has sufficient 18 funds to make payments to comprehensive publicly funded 19 candidates during the election period. 20 "Seed money" means contributions made to a participating 21 candidate by a person in accordance with section 11-D that shall 22 be expended for the purpose of determining campaign viability. 2008-0343 SB SMA.doc '"'M1M Page 9 S.B. NO. 1 "Surplus campaign funds" means any campaign contributions 2 not spent during a prior election period by a participating 3 candidate who previously sought election as a privately funded 4 candidate. 5 511-B Sufficiency of funding. On September 1 of each odd- 6 numbered year before a general election year, the commission 7 shall determine whether there is a minimum of $3,500,000 in the 8 Hawaii election campaign fund to certify participating 9 candidates during the next county council election and provide 10 funding for comprehensive public funding for county council 11 elections under this subpart. 12 If the commission determines that there is sufficient 13 funding, then within five business days, the commission shall 14 publish notice statewide, pursuant to section 1-28.5, that the 15 comprehensive public funding program for the county council 16 elections shall become effective on January 1 of the following 17 year. If there is insufficient funding, then this subpart shall 18 be deemed inoperative for the election year and candidates may 19 seek public funding as provided under subpart B. 20 511-C Qualifications for comprehensive public funding. 21 (a) A candidate for the county council may seek comprehensive 2008--0343 SB SMA.doc Page 10 S.B. NO. 1 public funding for the primary election campaign period if the 2 candidate: 3 (1) Resides in the district for which election is sought 4 as of the date of filing of nomination papers for the 5 primary election in the general election year in which 6 the candidate seeks to be nominated or elected; 7 (2) Is a registered voter in the district from which the 8 election is sought; 9 (3) Files a declaration of intent to seek comprehensive 10 public funding with the commission between January 1 11 of the election year and thirty days before the 12 closing date to file nomination papers; 13 (4) Collects a $5 district qualifying contribution in 14 accordance with section I1-F; 15 (5) Accepts only the following contributions prior to 16 applying for certification as a comprehensively 17 publicly funded candidate: 18 (A) Seed money contributions until the candidate 19 files a declaration of intent to seek 20 comprehensive public funding; and 2008-0343 SB SMA.doc i,11auM Page 11 S.B. NO. 1 (B) Qualifying contributions that may be accepted 2 only after filing the declaration of intent to 3 seek comprehensive public funding; and 4 (6) Files an application for certification for 5 comprehensive public funding with the commission along 6 with a declaration that the candidate has complied and 7 will comply with all the applicable requirements of 8 this subpart. 9 (b) A candidate is qualified to seek comprehensive public 10 funding for the general election campaign period if the 11 candidate: 12 (1) was certified as a comprehensive publicly funded 13 candidate during the primary election campaign period 14 immediately preceding the general election in which 15 the funds under this subpart are provided; and 16 (2) Received a sufficient number of votes to appear on the 17 ballot in the general election or is otherwise 18 certified by the office of elections to be placed on 19 the ballot in the general election. 20 511-D Seed money contributions; limitations on use; 21 penalties. (a) The use of seed money shall be limited to 22 expenditures necessary to determine whether sufficient support 2008-0343 SE SMA.doc IMIMNI, Page 12 S.B. NO. 1 exists for a participating candidate to run for a county office 2 as a comprehensive publicly funded candidate. 3 (b) The amount of seed money retained or expended, or 4 both, by a candidate seeking eligibility for comprehensive 5 public funding for county office shall not exceed $3,000. 6 (c) A participating candidate shall not accept 7 contributions of seed money from any person whose contributions 8 are prohibited under subpart B. All contributors whose seed 9 money has been accepted shall be issued a receipt by the 10 participating candidate. 11 (d) A participating candidate may use personal funds or 12 surplus campaign funds for seed money purposes, all of which 13 shall be subject to the $3,000 limit, as applicable, in 14 subsection (b). 15 (e) Seed money shall only be spent prior to and during the 16 qualifying period and shall not be collected after the candidate 17 has filed the declaration to run. The candidate may spend seed 18 money only until the candidate is certified by the commission as 19 a comprehensive publicly funded candidate. 20 (f) Any unspent seed money shall be deducted from the 21 initial primary election distribution of a participating 22 comprehensive publicly funded candidate if the candidate becomes 2008-0343 SB SMA.doc I'"®IMMM Page 13 S.B. NO. 1 a certified comprehensive publicly funded candidate and does not 2 donate excess seed money to the Hawaii election campaign fund. 3 911-E Restriction on use of surplus campaign funds. A 4 comprehensive publicly funded candidate who has surplus campaign 5 funds from a previous election is prohibited from using those 6 funds for anything other than in-office constituent 7 communications. The surplus campaign funds shall be frozen and 8 maintained in a separate depository account from the account 9 established for the comprehensive public funds under section 10 11-0. The comprehensive publicly funded candidate shall 11 continue to file reports on the surplus campaign funds in 12 accordance with subpart B or as otherwise required by the 13 commission. 14 511-F Qualifying campaign contributions. (a) Each 15 qualifying campaign contribution shall meet the requirements of 16 this section. To be counted as a qualifying campaign 17 contribution, a contributor to a candidate shall be a registered 18 voter who resides within the district for which the candidate 19 seeks election at the time the contribution is given. A 20 contribution shall be made in an amount and in a form that may 21 be prescribed by the commission. 2008-0343 SB SMA.doc I1'1'I1®1M Page 14 S.B. NO. 1 (b) No qualifying contribution shall be collected prior to 2 a candidate filing a declaration of intent to seek comprehensive 3 public funding with the commission. 4 (c) Any receipt for a qualifying campaign contribution 5 shall be made in a form that may be prescribed by the 6 commission. 7 (d) All qualifying campaign contributions collected by 8 candidates, whether or not the candidate is certified, shall be 9 deposited into the Hawaii election campaign fund. 10 811-0 Certification of qualification for comprehensive 11 public funds. (a) Candidates seeking certification as a 12 comprehensive publicly funded candidate shall submit to the 13 commission an application for certification that contains two 14 hundred signatures from registered voters in the district for 15 which the candidate seeks office no later than thirty days prior 16 to the primary election, signed by the participating candidate 17 and the participating candidate's campaign treasurer under 18 penalty of perjury. 19 (b) The application shall also include any information 20 deemed necessary and appropriate by the commission. 21 (c) The commission shall issue a decision to certify or 22 deny certification of a candidate as a comprehensive publicly 2008-0343 SE SMA.doc 11111 MN Page 15 S.B. NO. 1 funded candidate within ten business days following receipt of 2 the candidate's completed application for certification for 3 comprehensive public funds. 4 (d) After a participating candidate is certified as a 5 comprehensive publicly funded candidate, the candidate's 6 certification shall apply to both the primary and the general 7 election, even if the candidate is unopposed in the primary 8 election. 9 511-H Comprehensive publicly funded candidates; 10 contributions and expenditures; penalties. (a) Except as 11 authorized under section 11-K, a certified candidate shall 12 comply with the following restrictions on contributions and 13 expenditures: 14 (1) upon certification for comprehensive public funding 15 and until the end of the general election period, a 16 comprehensive publicly funded candidate shall not 17 accept for use in the campaign: 18 (A) Contributions from any source; provided that the 19 candidate may accept in-kind contributions 20 aggregating less than $200 in any single month 21 from any single source; 2008-0343 SE SMA.doc 1111811¦01 1 Page 16 S.B. NO. 1 (B) Loans from any person, including a certified 2 candidate; 3 (C) Contributions from political parties; and 4 (D) Any campaign material purchased or held from a 5 date prior to the declaration of intent to run 6 for office as a comprehensive publicly funded 7 candidate; and 8 (2) upon certification for comprehensive public funding 9 and until the end of the general election period, a 10 comprehensive publicly funded candidate shall not 11 expend for campaign purposes: 12 (A) Any money except public funds issued by the 13 commission; 14 (B) Public funds for purposes other than those 15 permitted in this subpart; 16 (C) Public funds outside the applicable campaign 17 period for which the funding is allocated, except 18 for proper campaign debts incurred but not paid; 19 and 20 (D) Public funds in excess of the comprehensive 21 public funds allocated to the candidate, 22 including equalizing funds, or incur an 200ry8--00343 SB SMA.doc III Page 17 S.B. NO. 1 obligation or obligations to spend public funds 2 excess of this amount. 3 (b) A certified candidate who accepts contributions in 4 violation of this section shall be subject to a fine equal to 5 three times the public funding received, in addition to any 6 other action, fines, or prosecution under section 11-Q. 7 (c) A certified candidate who spends or incurs an 8 obligation to spend more than one hundred per cent of the public 9 funds allocated to the candidate under this subpart shall repay 10 an amount equal to three times the excess expenditures to the 11 Hawaii election campaign fund. 12 911-I Comprehensive publicly funded candidate; reporting. 13 (a) A comprehensive publicly funded candidate and the certified 14 candidate's committee shall furnish complete campaign records, 15 including all records of nonmonetary contributions, seed money 16 contributions, qualifying campaign contributions to the 17 commission, and expenditures to the commissioner. A candidate 18 shall fully cooperate with any audit or examination by the 19 commission. 20 (b) A comprehensive publicly funded candidate shall comply 21 with the reporting requirements of sections 11-194, 11-195, 2008-0343 SE SMA.doc 11111111111=11 Page 18 S.B. NO. 1 11-196, 11-212, 11-213, and 11-224 in addition to those required 2 under this subpart or that may be required by the commission. 3 (c) The commission shall require that all certified 4 candidates file the reports required under this subpart in a 5 digital, electronic format specified by rules adopted by the 6 commission under chapter 91. 7 811-J Comprehensive publicly funded candidate; continuing 8 obligation. (a) A certified candidate shall comply with all 9 requirements under this subpart through the general election 10 campaign period regardless of whether the certified candidate 11 maintains eligibility for comprehensive public funding in the 12 general election campaign period. 13 (b) A certified comprehensive publicly funded candidate 14 who wins office will be allowed to fundraise no more than $2,000 15 per year for use as in-office constituent communications, with 16 individual contributions of no greater than $250. 17 (c) Any surplus of funds for a successful certified 18 comprehensive publicly funded candidate up to $4,000 may be 19 carried over to cover in-office constituent communications not 20 to exceed $2,000 annual allotment or $4,000 for a two-year term. 21 (d) if the total surplus from a publicly funded campaign 22 falls under $4,000 the certified comprehensive publicly funded 2008-0343 SB SMA.doc 111111ennM Page 19 S.B. NO. 1 office holder will be allowed to raise the difference pursuant 2 to subpart (B) while in office. 3 (e) Except for seed money contributions, qualifying 4 contributions, and in-office constituent communications, a 5 certified candidate who is elected to the office sought shall 6 not accept private contributions from any person, political 7 party, or political action committee until either September 1 of 8 the next odd-numbered year following the general election in 9 which the candidate was last elected, or the date when the 10 commission determines there are insufficient funds under section 11 11-B, whichever occurs earlier. 12 (f) If a certified candidate withdraws from seeking the 13 nomination for or from the election, or has unspent public funds 14 after an election, all unencumbered funds received by the 15 candidate under this subpart shall be returned to the Hawaii 16 election campaign fund within ten days after the general 17 election. 18 Sit-K Sufficiency of public funding; amount of base public 19 funding; disbursements. (a) The commission shall not 20 distribute comprehensive public funding to certified candidates 21 that exceeds the total amount of $500,000 for all candidates 2008-0343 SB SMA.doc 1111NMEE Page 20 S.B. NO. 1 subject to this subpart in any given election year in which this 2 subpart is operative. 3 (b) Commencing January 1 of a general election year and 4 ending with the deadline to submit applications for 5 certification, the commission shall post on its website a 6 monthly report stating, by district: 7 (1) The number of declarations of intent to seek 8 comprehensive public funding received; 9 (2) The number of applications for certification received; 10 (3) The number of candidates who have been certified for 11 comprehensive public funding; 12 (4) The base amount of public funding committed to 13 certified candidates; and 14 (5) The amount of public funding available for additional 15 certified candidates. 16 Notwithstanding any other provisions in this subpart, if the 17 commission determines that the revenues are insufficient to meet 18 distributions to certified candidates under this section, the 19 commission shall either permit certified candidates to accept 20 and spend contributions, subject to the campaign contribution 21 limitations set forth in section 11-204, up to the applicable 2008-0343 SB SMA.doc 111111'1®N Page 21 S.B. NO. 1 amounts, including equalizing funds the certified candidate 2 would have received from comprehensive public funding. 3 (c) For primary elections subject to this subpart, the 4 dollar amount of the initial allotment of comprehensive public 5 funding shall be set at an average of the amount spent by the 6 winning candidates in the previous two county council primary 7 elections of the same district, reduced by ten per cent. 8 (d) For general elections subject to this subpart, the 9 dollar amount of the initial allotment of comprehensive public 10 funding shall be set at an average of the amount spent by the 11 winning candidates in the previous two county council general 12 elections for the same district, reduced by ten per cent. 13 (e) The base amount of public funding for an uncontested 14 primary election shall be thirty per cent of the amount provided 15 in a contested election as determined under subsection (a). No 16 funding shall be allocated in an uncontested general election. 17 (f) The commission shall disburse public funds by check or 18 electronic transfer. 19 (g) If the winning primary candidate has residual funds 20 from the primary election, those funds may be carried over to 21 the general election. A certified candidate who is not 22 successful in the primary election shall return all unspent and 2008-0343 SB SMA.doc Page 22 S.B. NO. 1 unencumbered public funds to the Hawaii campaign election fund 2 within ten days after the primary election. 3 511-L Equalizing funds. (a) The commission shall 4 disburse equalizing funds to a certified candidate in a 5 contested election whenever that candidate is outspent by an 6 opposing nonparticipating candidate. A opposing 7 nonparticipating candidate is deemed to have outspent a 8 certified candidate when the campaign report filed pursuant to 9 subpart B shows that the sum of an opposing nonparticipating 10 candidate and the nonparticipating candidate's committee's 11 expenditures and obligations, or campaign contributions received 12 or borrowed, whichever is greater, added to any independent 13 expenditures made in support of that nonparticipating candidate 14 or against the opposing certified candidate reported by any 15 noncandidate's committee, party, or any other person exceeds one 16 hundred per cent of the amount of comprehensive public funding 17 previously allotted and distributed to the opposing certified 18 candidate in a contested election, including any equalizing 19 funds previously distributed. 20 (b) In a contested election, equalizing funds shall be 21 limited to an amount equal to the base amount of comprehensive 22 public funding allotted to the certified candidate. 2008-0343 SB SMA.doc 111111111M MM Page 23 S.B. NO. 1 (c) The commission shall authorize and monitor all 2 equalizing spending by participating candidates. 3 811-M Reporting; penalties for failure to report. (a) 4 Reporting obligations under this section for nonparticipating 5 candidates and their candidate's committees, noncandidate 6 committees, parties, or any other persons making independent 7 expenditures shall be in addition to the reporting requirements 8 under this chapter whenever a certified candidate is opposed in 9 a contested election by a nonparticipating candidate as follows: 10 (1) Commencing forty-five days before the primary election 11 day, nonparticipating candidates and their candidate's 12 committees shall file an initial excess report with 13 the commission within twenty-four hours after 14 cumulative contributions are received, or expenditures 15 are made or committed to be made, including verbal 16 commitments, in an election period that exceeds one 17 hundred one per cent of the base amount of 18 comprehensive public funding allotted to an opposing 19 certified candidate in a contested election. 20 Nonparticipating candidates and the candidate's 21 committees shall file supplemental excess reports 2008-0343 SB SMA.doc i„IuII MM Page 24 S.B. NO. 1 within twenty-four hours after any encumbrances or 2 expenditures that exceed $1,000 in aggregate; and 3 (2) Commencing forty-five days before the general election 4 day, noncandidate committees, parties, and any other 5 persons that incur independent expenditures that 6 expressly advocate the nomination, election, or defeat 7 of a certified candidate shall file an independent 8 expenditure report with the commission within 9 twenty-four hours when expenditures exceed $1,000 in 10 aggregate in an election period. Thereafter, 11 noncandidate committees, parties, and any other 12 persons that incur independent expenditures, including 13 verbal expenditure commitments, shall file 14 supplemental independent expenditure reports within 15 twenty-four hours whenever the aggregate expenditures 16 exceed $100. The independent expenditure reports 17 shall identify the nonparticipating candidate or 18 certified candidate for whom the independent 19 expenditure is intended to influence the nomination, 20 election, or defeat. 21 (b) If a nonparticipating candidate and the candidate's 22 committee fails to file or files a false excess report or 2008-0343 SE SMA.doc I"1"'00M l Page 25 S.B. NO. 1 supplemental excess reports as required in this section, the 2 commission, within twenty-four hours of verifying the failure or 3 falsity, shall automatically disburse equalizing funds to any 4 opposing certified candidate up to the maximum authorized under 5 section 11-L. 6 (c) Any nonparticipating candidate and the candidate's 7 committee, noncandidate committee, party, or any other person 8 that makes independent expenditures in a contested election 9 involving a certified candidate who fails to file a report as 10 required under this subpart or files a false report shall be: 11 (1) Guilty of a misdemeanor; 12 (2) Subject to a fine of up to three times the amount of 13 equalizing funds paid to the certified candidate; and 14 (3) Subject to any other fine or penalty pursuant to 15 sections 11-228 and 11-229. 16 (d) Upon certification of all comprehensive publicly 17 funded candidates, if the commission determines there are 18 insufficient funds to meet the potential need for equalizing 19 funds for all certified candidates, the commission shall permit 20 each certified candidate to accept and spend private 21 contributions, subject to the campaign contribution limitations 22 set forth in section 11-204, up to the equalizing funds the 200p8-0343 SB SMA.doc IIIIIHMMM Page 26 S.B. NO. 1 certified candidate would have received from comprehensive 2 public funding. 3 (e) The commission shall adopt rules under chapter 91 to 4 compute the amount of equalizing funds allotted to a certified 5 candidate that takes into consideration the contributions and 6 expenditures of the nonparticipating candidate and the 7 candidate's committee, and any independent expenditures incurred 8 to influence the nomination, election, or defeat of the 9 certified candidate. To prevent the abuse of equalizing funds, 10 the commission shall not base any calculation on independent 11 expenditures that, although containing words of express 12 advocacy, also contain other words or phrases that have no other 13 reasonable meaning other than to contradict the expressed 14 advocacy. 15 §11-N Comprehensive public funding; permitted uses. (a) 16 Comprehensive public funds shall be used only for the purpose of 17 defraying expenses that are directly related to the certified 18 candidate's campaign during the election campaign period for 19 which the comprehensive public funds are allocated. 20 (b) A candidate receiving funds under this subpart or the 21 candidate's campaign treasurer shall not transfer any portion of 2008-0343 SB SMA.doc I"'1'0®0 Page 27 S.B. NO. 1 the funds provided under this subpart to any other candidate for 2 another campaign. 3 $11-0 Deposit of, and access to, comprehensive public 4 funds. (a) All public funds received by a certified candidate 5 shall be deposited directly into a depository institution as 6 provided under section 11-199(a) and accessed through use of 7 credit cards, debit cards, and bank checks. 8 (b) All reports required under subpart B and this subpart 9 for financial disclosure shall include the most recent bank 10 statement from the financial depository holding the public 11 funds. 12 811-P Deposit of money into the Hawaii election campaign 13 fund. In addition to the funds collected by the commission and 14 pursuant to section 11-217, the following moneys shall be 15 deposited into the Hawaii election campaign fund: 16 (1) Appropriations from the legislature; 17 (2) Excess seed money contributions; 18 (3) Qualifying contributions, including any excess- 19 qualifying contributions of certified candidates; 20 (4) Unspent public funds distributed to any certified 21 candidate; 2008-0343 SB SMA.doc 11111 Page 28 S.B. NO. 1 (5) Fines levied by the commission for violation of this 2 subpart; and 3 (6) Voluntary donations. 4 Sll-Q Violations; penalties. Any candidate who knowingly 5 seeks or receives public funding to fraudulently qualify for or 6 receive public funding shall: 7 (1) Have the candidate's certification for comprehensive 8 public funding revoked. Upon revocation of 9 certification, the certified candidate shall repay all 10 public funds received within ten business days; and 11 (2) Be subject to fines and penalties as specifically 12 provided in this subpart and any other fines or 13 penalties pursuant to sections 11-228 and 11-229. 14 511-R Rules. The commission shall adopt forms and rules 15 pursuant to chapter 91 as may be necessary to implement this 16 subpart, including reporting requirements of section 11-M and 17 any restrictions on petty cash expenditures by the certified 18 candidate." 19 SECTION 3. Section 11-191, Hawaii Revised Statutes, is 20 amended by amending the definition of "qualifying campaign 21 contribution" to read as follows: 2008-0343 SB SMA.doc I„N®1'0®0 1 Page 29 S.B. NO. 1 ""Qualifying campaign contribution" means an aggregate 2 monetary contribution of $100 or less, by any person during any 3 matching payment period[-] for purposes of entitlement to 4 payments under the partial public funding program pursuant to 5 section 11-121. Qualifying contributions do not include loans 6 or in-kind contributions." 7 SECTION 4. Section 11-217, Hawaii Revised Statutes, is 8 amended to read as follows: 9 11811-217 Hawaii election campaign fund; creation. (a) 10 The Hawaii election campaign fund is created as a trust fund 11 within the state treasury. The fund shall consist of [ate 12 moneys] : 13 (1) All moneys collected from persons who have designated 14 a portion of their income tax liability to the fund as 15 provided in section 235-102.5[, affy]; 16 (2) Any general fund revenues appropriated[, as well as 17 a4-b] ; and 18 (3) All other moneys collected pursuant to this subpart. 19 (b) Payment to each candidate from the fund shall be by 20 the comptroller in the manner prescribed in section 11-222[-] or 21 section 11-K, when appropriate. 2008-0343 SB SMA.doc Page 30 S.B. NO. 1 (c) Moneys from this fund may also be used for the 2 operating expenses of the commission, including staff salaries 3 and fringe benefits." 4 SECTION 5. Section 11-217.5, Hawaii Revised Statutes, is 5 amended to read as follows: 6 0511-217.5 Depletion of fund. (a) The Hawaii election 7 campaign fund shall be under no obligation to provide moneys to 8 [quallf-le ] eligible candidates the eve-` that] 9 participating in the partial public funding program or 10 comprehensive public funding program pursuant to subpart if 11 moneys in that fund have been depleted. 12 (b) [I the event 'hat] For purposes of the partial 13 funding program, if the Hawaii election campaign fund is close 14 to depletion, as determined by the commission, the commission 15 shall determine the amounts available to [wed] eligible 16 candidates based on their order of eligibility in qualifying for 17 partial public funds, as determined by the date of filing of an 18 application for public funds with the commission pursuant to 19 section 11-222; provided that the application has been accepted 20 by the commission. 21 (c) For purposes of the comprehensive public funding 22 program pursuant to subpart , if the Hawaii election fund is 2008-0343 SE SMA.doc 11111111M Page 31 S.B. NO. 1 close to depletion, as determined by the commission, the 2 commission shall determine whether that program shall be deemed 3 inoperable as provided in section 11-B." 4 SECTION 6. Section 11-218, Hawaii Revised Statutes, is 5 amended to read as follows: 6 "$11-218 [ Partial 7 public funding program; maximum allowed. (a) Public funds from 8 the Hawaii election campaign fund are available to fund eligible 9 candidates who qualify for the partial public funding program in 10 amounts set forth in this section. 11 (b) For the office of governor, lieutenant governor, or 12 mayor, the maximum amount of partial public funds available to a 13 candidate in any election shall not exceed ten per cent of the 14 total expenditure limit as determined under section 11-209 for 15 each election for each office listed in this subsection. 16 [44a-)-] (c) For the office of state senator, state 17 representative, county council member, and prosecuting attorney, 18 the maximum amount of partial public funds available to a 19 candidate in any election shall be fifteen per cent of the total 20 expenditure limit as determined under section 11-209 for each 21 election for each office listed in this subsection[-]; 2008-0343 SB SMA.doc „ 111111M Page 32 S.B. NO. 1 provided that no candidate certified for comprehensive public 2 funding under subpart shall be eligible for partial public 3 funding under this subpart in a given election period. 4 [{-e}] (d) For the office of Hawaiian affairs, the maximum 5 amount of partial public funds available to a candidate shall 6 not exceed $1,500 in any election year. 7 [{-d}] (e) For the board of education and all other 8 offices, the maximum amount of partial public funds available to 9 a candidate shall not exceed $100 in any election year. 10 14e4-1 (f) Each candidate who qualified for the maximum 11 amount of partial public funding in any primary election and who 12 is a candidate for a subsequent general election shall apply 13 with the commission to be qualified to receive the maximum 14 amount of public funds as provided in this section for the 15 respective election. For purposes of this section, "qualified" 16 means meeting the qualifying campaign contribution requirements 17 of section 11-219." 18 SECTION 7. Section 11-219, Hawaii Revised Statutes, is 19 amended to read as follows: 20 "§11-219 Qualifying campaign contributions[-P-1 for partial 21 public funding program; amounts. As a condition of receiving 22 public funds for a primary or general election, a candidate 2008-0343 SB SMA.doc I"11'®1,1 Page 33 S.B. NO. 1 shall not be unopposed in any election for which partial public 2 funds are sought, shall have filed an affidavit with the 3 commission pursuant to section 11-208 to voluntarily limit the 4 candidate's campaign expenditures, and shall be in receipt of 5 the following sum of qualifying campaign contributions from 6 individual residents of Hawaii: 7 (1) For the office of governor--qualifying campaign 8 contributions that in the aggregate, exceed $100,000; 9 (2) For the office of lieutenant governor--qualifying 10 campaign contributions that in the aggregate, exceed 11 $50,000; 12 (3) For the office of mayor for each respective county: 13 (A) County of Honolulu--qualifying campaign 14 contributions that in the aggregate, exceed 15 $50,000; 16 (B) County of Hawaii--qualifying campaign 17 contributions that in the aggregate, exceed 18 $15,000; 19 (C) County of Maui--qualifying campaign contributions 20 that in the aggregate, exceed $10,000; and 2008-0343 SB SMA.doc ININIMM® Page 34 S.B. NO. 1 (D) County of Kauai--qualifying campaign 2 contributions that in the aggregate, exceed 3 $5,000; and 4 (4) For the office of prosecuting attorney for each 5 respective county: 6 (A) County of Honolulu--qualifying campaign 7 contributions that in the aggregate, exceed 8 $30,000; 9 (B) County of Hawaii--qualifying campaign 10 contributions that in the aggregate, exceed 11 $10,000; and 12 (C) County of Kauai--qualifying campaign 13 contributions that in the aggregate, exceed 14 $5,000; 15 (5) For the office of county council--for each respective 16 county: 17 (A) County of Honolulu--qualifying campaign 18 contributions that in the aggregate, exceed 19 $5,000; 20 (B) County of Hawaii--qualifying campaign 21 contributions that in the aggregate, exceed 22 $1,500; 2008-0343 SB SMA.doc Page 35 S.B. NO. 1 (C) County of Maui--qualifying campaign contributions 2 that in the aggregate, exceed $5,000; and 3 (D) County of Kauai--qualifying campaign 4 contributions that in the aggregate, exceed 5 $3,000; 6 (6) For the office of state senator--qualifying campaign 7 contributions that, in the aggregate, exceed $2,500; 8 (7) For the office of state representative--qualifying 9 campaign contributions that, in the aggregate, exceed 10 $1,500; 11 (8) For the office of Hawaiian affairs--qualifying 12 campaign contributions that, in the aggregate, exceed 13 $1,500; and 14 (9) For all other offices, qualifying campaign 15 contributions that, in the aggregate, exceed $500[-]; 16 provided that no candidate certified for comprehensive public 17 funding under subpart shall be eligible for partial public 18 funding under this subpart in a given election period.,, 19 SECTION 8. Section 11-220, Hawaii Revised Statutes, is 20 amended to read as follows: 21 "811-220 Bligibility for payments[.-] under the partial 22 public funding program. (a) To be eligible to receive 2008-0343 SE SMA.doc 1111111N11e Page 36 S.B. NO. 1 (payments partial public funding from the 2 Hawaii election campaign fund under section 11-221, a candidate, 3 in writing, shall °-_`_ingj: 4 (1) Agree to obtain and furnish to the commission any 5 evidence of the campaign expenses of [suahl the 6 candidate bmhlekl that the commission may request; 7 (2) Agree to keep and furnish records, books, and other 8 information [,whiekl that the commission may request; 9 and 10 (3) Agree to an audit and examination by the commission 11 under section 11-225 and to pay any amounts required 12 to be paid pursuant to that section. 13 (b) To be eligible to receive [payments 14 eet e " partial public funding from the Hawaii election 15 campaign fund under section 11-221, a candidate shall certify to 16 the commission that: 17 (1) The candidate and all committees authorized by the 18 candidate shall not incur campaign expenses in excess 19 of the expenditure limitations imposed by section 20 11-209; 21 (2) The candidate has qualified to be on the election 22 ballot in a primary or general election; 2008-0343 SE SMA.doc I"II'M Page 37 S.B. NO. 1 (3) The candidate has filed a statement of intent to seek 2 qualifying campaign contributions. A contribution 3 received before the filing of a statement of intent to 4 seek public funds shall not be considered a qualifying 5 campaign contribution; 6 (4) The candidate or committee authorized by the candidate 7 has received the qualifying sum of private 8 contributions for the office sought by the candidate 9 as set forth in section 11-219; and 10 (5) The aggregate of contributions certified with respect 11 to any person under paragraph (4) does not exceed 12 $100. 13 (c) Each candidate and candidate's committee in receipt of 14 qualifying campaign contributions [whieh] that may be taken into 15 account for purposes of partial public funding shall maintain, 16 on a form prescribed by the commission, records [whieh] that 17 show the date and amount of each qualifying campaign 18 contribution and the full name and mailing address of the person 19 making the contribution. The candidate and all committees 20 authorized by the candidate shall transmit to the commission all 21 reports with respect to these contributions that the commission 22 may require. 2008-0343 SE SMA.doc IHIIIIMMM 1 Page 38 S.B. NO. 1 (d) No candidate certified for comprehensive public 2 funding under subpart shall be eligible for partial public 3 funding under this subpart in a given election period." 4 SECTION 9. Section 11-221, Hawaii Revised Statutes, is 5 amended to read as follows: 6 "511-221 Entitlement to payments[...]; partial payment 7 funding. (a) A candidate shall obtain the minimum amount of 8 qualifying campaign contributions set forth in section 11-219, 9 once for the election period. After the candidate obtains the 10 minimum amount of qualifying campaign contributions, the 11 candidate shall be entitled to receive for each election that 12 the candidate's name appears on the ballot: 13 (1) The minimum payment in an amount equal to the 14 qualifying campaign contributions; and 15 (2) Payments of $1 for each $1 of qualifying contributions 16 in excess of the minimum amount of qualifying 17 contributions; 18 provided that the candidate shall not receive more than the 19 maximum amount of public funds available to a candidate pursuant 20 to section 11-218; provided further that the candidate shall not 21 receive partial public funds for a primary election if the 20008-0343 SB SMA.doc 01111 Page 39 S.B. NO. 1 candidate does not obtain the minimum amount of qualifying 2 contributions before the date of the primary election. 3 (b) A candidate shall have at least one other qualified 4 candidate as an opponent for the primary or general election to 5 receive partial public funds for that election." 6 SECTION 10. Section 11-222, Hawaii Revised Statutes, is 7 amended by amending its title and subsections (a), (b), and (c) 8 to read as follows: 9 ¦811-222 Candidate funding; application[...]; for partial 10 public funds. (a) Application forms for partial public funds 11 shall be adopted by the commission and shall provide for a sworn 12 statement by the candidate that the candidate has established 13 eligibility under section 11-220 to receive payments under 14 section 11-217. Each application shall be accompanied by a 15 qualifying campaign contribution statement or statements, and 16 shall be filed with the commission no later than thirty days 17 after the general election. Upon approval by the commission of 18 the application and qualifying contribution statement, the 19 commission shall direct the comptroller to distribute ( g) 20 partial public funds up to the maximum of the amount of partial 21 public funds to which the candidate is entitled. 2008-0343 SB SMA.doc „ I®11111110 Page 40 S.B. NO. 1 [Pabliel Partial funds shall be distributed by the 2 comptroller to each eligible candidate within twenty days from 3 the date of the candidate's initial application with the 4 commission. 5 (b) Each candidate in receipt of the qualifying sum of 6 campaign contributions established for the candidate's office 7 may apply to the commission for partial public funding after the 8 candidate has become a candidate in a primary or general 9 election. 10 (c) The commission shall make additional certifications 11 within two weeks after receiving an application and supplemental 12 contribution statement from an eligible candidate who requests 13 additional partial public funding pursuant to section 11-221." 14 SECTION 11. Section 11-223, Hawaii Revised Statutes, is 15 amended to read as follows: 16 0511-223 Candidate funding; restrictions. (a) Each 17 candidate who accepts partial public campaign funds under this 18 subpart shall be required to abide by the campaign spending 19 limits for the candidate's respective office as set forth in 20 section 11-209. Any candidate who exceeds the spending limits 21 for the candidate's respective office as set forth in section 22 11-209 shall immediately return all of the partial public 2008-0343 SB SMA.doc I"'M Page 41 S.B. NO. 1 campaign funds the candidate has received to the Hawaii election 2 campaign fund. 3 (b) [Publlel Partial public campaign funds provided under 4 this subpart shall only be used to: 5 (1) Defray campaign expenses incurred by and paid for an 6 eligible candidate or all committees authorized by 7 [33 the candidate; and 8 (2) Repay loans, the proceeds of which were used to defray 9 campaign expenses. 10 (c) No candidate or committee authorized by a candidate 11 shall be entitled to receive any partial public funds under this 12 subpart unless the candidate has qualified to have the 13 candidate's name on the election ballot in the election for 14 which funds are sought. 15 (d) In no event shall any candidate or campaign treasurer 16 in receipt of partial public campaign funds transfer any portion 17 of [suehl those funds to another candidate for any primary, 18 special primary, special, or general election campaign. 19 (e) All partial public funds received under this subpart 20 shall be deposited in a financial institution designated to do 21 business in the State. No expenditures of any partial public 22 funds received under this subpart shall be made except by checks 2008-0343 SB SMA.doc 1111110®1® Page 42 S.B. NO. 1 drawn on [sueI a checking account. The commission may require 2 [sue] reports relating to the expenditure of [saeI partial 3 public funds as it considers appropriate. 4 (f) Each candidate, on the deadline for filing of a final 5 report for any primary or general election, shall return all 6 unexpended partial public funds to the Hawaii election campaign 7 fund." 8 SECTION 12. 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 [toe] any candidate who receives 12 partial public funds either through the partial public funding 13 program or comprehensive public funding under subpart , shall 14 produce evidence to the commission no later than twenty days 15 after a primary election and no later than thirty days after a 16 general election that all public funds paid to the candidate 17 have been used as required by this subpart. 18 Should the commission determine that any part of the 19 partial public funds have been used for noncampaign or improper 20 expenses, it shall report [sue ] its finding to the attorney 21 general and shall order the candidate to return all or part of 22 the funds paid to that candidate for a primary or general 2008-0343 SB SMA.doc 11111111MM Page 43 S.B. NO. 1 election. When partial public funds are returned, [the}] the 2 funds shall be deposited in the Hawaii election campaign fund." 3 SECTION 13. Section 11-225, Hawaii Revised Statutes, is 4 amended as follows: 5 1. By amending the title and subsection (a) to read: 6 "811-225 Public funds; examination and audit; payments[.-]_ 7 penalties. (a) Within sixty days after each general election, 8 the commission shall conduct an examination and audit of all 9 public funds received by [fie] any candidate [fie€] who 10 received public funds under either the partial public funding 11 program or comprehensive public funding program pursuant to 12 subpart , including the campaign contributions used for 13 purposes of qualifying for public funding under this subpart and 14 subpart , and the campaign expenses incurred by all candidates 15 who received [p!aymextal public funding pursuant to [""gin 16 9:1 2!7.] this subpart or subpart " 17 2. By amending subsections (c), (d), (e), and (f) to read: 18 "(c) Should the commission determine that any payment of 19 partial public funds made to an eligible candidate pursuant to 20 section 11-221 was in excess of the aggregate amount of payments 21 to which [seeI the candidate was entitled, the commission shall 22 notify [sue 131 the candidate and such candidate shall pay to the 2008-0343 SB SMA.doc I01'll11M Page 44 S.B. NO. 1 Hawaii election campaign fund a sum equal to the amount of 2 excess payment. 3 (d) If the commission determines that any amount of any 4 partial public funds made to a candidate under section 11-217 5 was used for any improper purpose, the commission shall so 6 notify the candidate, and the candidate shall pay to the fund an 7 amount equal to three hundred per cent of such amount. 8 (e) Any candidate who has received partial public funds 9 under section 11-217 and who is convicted of violating any 10 provision of this subpart shall, upon notification by the 11 commission, pay to the Hawaii election campaign fund the full 12 amount of public funds received by [se] the candidate. 13 (f) No notification shall be made by the commission under 14 subsection (c) with respect to the payment of excess partial 15 public funds more than two years after the payment of (saek] the 16 funds." 17 SECTION 14. Section 11-228, Hawaii Revised Statutes, is 18 amended as follows: 19 1. By amending subsection (a) to read: 20 "(a) In the performance of its required duties, the 21 commission may render a decision or issue an order affecting any 22 person violating ( ] this subpart, subpart or 2008-0343 SB SMA.doc 1111811MM Page 45 S.B. NO. 1 section 281-22 that shall provide for the assessment of an 2 administrative fine in the manner prescribed as follows: 3 (1) If a natural person, an amount not to exceed $1,000 4 for each occurrence or an amount equivalent to three 5 times the amount of an unlawful contribution or 6 expenditure, whichever is greater; or 7 (2) If a corporation, organization, association, or labor 8 union, it shall be punished by a fine not exceeding 9 $1,000 for each occurrence; and 10 (3) whenever a corporation, organization, association, or 11 labor union violates this subpart[-j] or subpart , 12 the violation shall be deemed to be also that of the 13 individual directors, officers, or agents of the 14 corporation, organization, association, or labor 15 union, who have knowingly authorized, ordered, or done 16 any of the acts constituting the violation." 17 2. By amending subsection (e) to read: 18 "(e) Any person or the commission may sue for injunctive 19 relief to compel compliance with this subpart[-] or subpart " 20 SECTION 15. Section 11-229, Hawaii Revised Statutes, is 21 amended as follows: 22 1. By amending subsections (a) and (b) to read: 2008-0343 SE SMA.doc „ 1111111111® Page 46 S.B. NO. 1 "(a) Any person who knowingly, intentionally, or 2 recklessly violates any provision of this subpart or subpart 3 shall be guilty of a misdemeanor. Any person who knowingly or 4 intentionally falsifies any report required by this subpart with 5 the intent to circumvent the law or deceive the commission or 6 who violates section 11-201 or 11-202 shall be guilty of a class 7 C felony. A person charged with a class C felony shall not be 8 eligible for a deferred acceptance of guilty plea or nolo 9 contendere plea under chapter 853. A person who is convicted 10 under this section shall be disqualified from holding elective 11 public office for a period of four years from the date of 12 conviction. 13 (b) For purposes of prosecution for violation of this 14 subpart[,,-] or subpart , the offices of the attorney general 15 and the prosecuting attorney of the respective counties shall be 16 deemed to have concurrent jurisdiction to be exercised as 17 follows: 18 (1) Prosecution shall commence with a written request from 19 the commission or upon the issuance of an order of the 20 court; provided that prosecution may commence prior to 21 any proceeding initiated by the commission or final 22 determination; 2008-0343 SB SMA.doc ININ,EM Page 47 S.B. NO. 1 (2) In the case of state offices, parties, or issues, the 2 attorney general or the prosecuting attorney for the 3 city and county of Honolulu shall prosecute any 4 violation; and 5 (3) In the case of all other offices, parties, or issues, 6 the attorney general or the prosecuting attorney for 7 the respective county shall prosecute any violation. 8 In the commission's choice of prosecuting agency, it shall 9 be guided by whether there will be any conflicting interest 10 between the agency and its appointive authority." 11 2. By amending subsection (d) to read: 12 "(d) Prosecution for violation of any provision of this 13 subpart or subpart shall not be commenced after five years 14 have elapsed from the date of the violation or date of filing of 15 the report covering the period in which the violation occurred, 16 whichever is later." 17 SECTION 16. There is appropriated out of the general 18 revenues of the State of Hawaii the sum of $400,000 or so much 19 thereof as may be necessary for fiscal year 2008-2009 for 20 deposit into the Hawaii campaign fund established under section 21 11-217, Hawaii Revised Statutes. 2008-0343 SB SMA.doc „ I,I""10M Page 48 S.B. NO. 1 The sum appropriated shall be expended by the department of 2 accounting and general services for the purposes of this Act. 3 SECTION 17. There is appropriated out of the Hawaii 4 campaign fund established under section 11-217, Hawaii Revised 5 Statutes, the sum of $400,000 or so much thereof as may be 6 necessary for fiscal year 2008-2009 for the campaign spending 7 commission to hire three additional staff positions and other 8 necessary assistance to support the comprehensive publicly 9 funded elections established by section 2 of this Act as 10 follows: 11 (1) Two staff positions for computer analysis of campaign 12 contributions for auditing and monitoring, as well as 13 for the creation of an online digital filing system 14 for campaign spending reports for all candidates in a 15 comprehensive publicly funded election; 16 (2) One staff position to administer the comprehensive 17 publicly funding program; and 18 (3) Funding for the office of elections, or its designee; 19 to verify the qualifying contributions from registered 20 voters in a candidate's district. 21 The sum appropriated shall be expended by the department of 22 accounting and general services for the purposes of this Act. 2008-0343 SB SMA.doc 11111MM~ Page 49 S.B. NO. 1 SECTION 18. The campaign spending commission shall create 2 and publish all forms and receipts required as well as a 3 candidates' guide to the comprehensive public funding program 4 that shall include an explanation of rules and procedures 5 applicable to candidates. In addition to the reports required 6 by section 11-210, Hawaii Revised Statutes, the campaign 7 spending commission shall establish and provide administrative 8 and staff support to an independent, nonpartisan review 9 committee to undertake a substantive review of the functioning 10 of the comprehensive public funding program established under 11 this Act following each election in which the comprehensive 12 public funding option is used. The review committee shall 13 report to the legislature no later than twenty days prior to the 14 convening of the next regular session following each election 15 when the comprehensive public funding option is made available 16 and the report shall include: 17 (1) Suggested amendments to this Act that may address the 18 need to improve equalizing public funding to match 19 independent expenditures and any excess expenditures 20 of publicly funded and nonparticipating candidates; 2008-0343 SB SMA.doc 100101 Page 50 S.B. NO. 1 (2) Suggested amendments to this Act that will extend 2 publicly funded campaigns to other state and county 3 elections; 4 (3) Provide a summary and evaluation of the commission's 5 activities and recommendations to enhance the 6 effective and timely administration and enforcement of 7 this Act; and 8 (4) Provide an examination of mechanisms for increasing 9 revenues of the Hawaii election campaign fund, 10 including methods used in other states. 11 The legislative reference bureau shall assist the campaign 12 spending commission in drafting any proposed amendments to this 13 Act. 14 SECTION 19. Statutory material to be repealed is bracketed 15 and stricken. New statutory material is underscored. 16 SECTION 20. In codifying the new sections added by section 17 2 of this Act, the revisor of statutes shall substitute 18 appropriate section numbers for the letters used in designating 19 the new sections in this Act. 20 SECTION 21. If any provision of this Act, or the 21 application thereof to any person or circumstance is held 22 invalid, the invalidity does not affect other provisions or 2008-0343 SE SMA.doc „ 1111110011M~M Page 51 S.B. NO. 1 applications of the Act, which can be given effect without the 2 invalid provision or application, and to this end the provisions 3 of this Act are severable. 4 SECTION 22. This Act shall take effect on January 1, 2010; 5 provided that sections 16, 17, and 18 of this Act shall take 6 effect on July 1, 2008. 7 INTRODUCED BY: 2008-0343 SB SMA.doc „