HomeMy WebLinkAboutCOM 0248.001 2008-2010
KENNY G. GOODENOW RODNEY OSHIRO
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County Clerk Deputy County Clerk
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•.'e F_a~o.~~ Business Address:
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Former County 333 Kilauea Avenue, Second Floor
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( Building) Ben Franklin Building
25 Aupuni Street Hilo, Hawai 9 96720
Hilo, Ilawai'i 96720
County of Hawai `i
ice of the County Clerk
Telephone: (808) 961-8255 Facsimile: (808) 961-8912 0
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MEMORANDUM - -
Date: April 13, 2009 Co v
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To: J Yoshimoto, Chair, and Members of the H ai`i County Council f
From: Kenneth G. Goodenow, County Clerk
Subject: Private Contributions Allowed
I would like to share the attached memorandum which I received from Campaign
Spending Director Barbara Wong. Please note the last paragraph of this memorandum
identified by the header "Private Contributions Allowed". I have further reviewed Act
244, 2008 Session Laws of Hawaii, and again discussed this issue Ms. Wong and I
concur that if the $300,000 cap is reached, a candidate may keep what funds they have
already received from the Campaign Spending Commission, raise an unlimited amount of
private money and continue his or her campaign without spending limits.
Comm. No. Z 09.
c>:erta4 r1L1
Ref. To. o1
Ref. Date APR 112 2n_
Serving the Interests of the People of Our Island
IlawaN County is an Equal Opportunity Provider and Employer
BARBARA WONG - PHONE: (808) 586-0285
EXECUTIVE DIRECTOR 5 g FAX: (808) 586-0288
,ad www.hawaii.grnlcampaign
STATE OF HAWAII
CAMPAIGN SPENDING COMMISSION
235 SOUTH BERETANIA STREET, ROOM 300
HONOLULU, HAWAII 96813
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April 8, 2009
7 ,
VIA FACSIMILE (#(808) 961-8912) C }
Original by Mail ct3
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MEMORANDUM
TO: Kenneth Goodenow, County Clerk
County of Hawaii
FROM: Barbara Wong, Executive Director
Campaign Spending Commission
SUBJECT: H.B. 345, Delay of Hawaii County Council Comprehensive Public Funding
Project
This is to provide updated information in regards to H.B. 345.
Revenue
The Hawaii Election Campaign Fund's ("HECF") balance as of June 30, 2009 will be $4.9
million. Prior to 2008, the three sources of revenue for the HECF were fines, interest on the
principal of the Hawaii Election Campaign Fund, and the Hawaii State income tax check-off.
The 2008 Legislature removed the fines revenue from the HECF, and instead directed, these
funds to be deposited in the general fund. In FY03 through FY08, fines were, on average, 41%
of the HECF's revenue.
The 2009 Legislature is considering in H.B. 884, removing the interest revenue from the HECF.
In FY03 through FY 08, interest has been, on average, 25% of HECF's revenue.
The Hawaii State Income Tax check-off has been in steady decline since near inception.
In FY 08, total revenue was as follows:
Fiscal Year TOTAL Tax Fines Interest Other
Revenue'
07-08 $583,245 $190,480 $114,345 $258,796 $19,625
(33%) (20%) (44%) (3%)
In FY 09, we project the tax check-off revenue to steeply decline. The HECF will receive no
fines. The interest on the HECF balance through March of FY 09 is $86,000.
Additional Reports (participating candidates, nonparticipating candidates, and noncandidate
committees)
Non-participating candidates will be required to file reports in addition to reports currently
required.
If a certified candidate is "outspent by an opposing nonparticipating candidate," the certified
candidate may receive equalizing funds up to the base amount allotted to the candidate and
subject to the $300,000 expenditure cap for all candidates. Equalizing funds are available in
increments of 25% of the base amount.
A certified candidate is outspent if the base amount is exceeded by the aggregate of the
following:
• The nonparticipating candidate's committee's expenditures or contributions, whichever is
greater,
• Added to any independent expenditures made in support of that nonparticipating candidate
or against the opposing certified candidate reported by any person,
• Minus any independent expenditures made in support of the certified candidate or against
the nonparticipating candidate reported by any person!
In order to determine whether a certified candidate is outspent, Act 244 requires that
additional reports not required under the current law be filed by a nonparticipating
candidate and any other person making independent expenditures.
• Beginning forty-five days before the primary election day, a nonparticipating candidate
shall file an initial excess report with the commission within twenty-four hours after
aggregate contributions are received, or expenditures are made in an election that exceeds
one hundred one per cent of the base amount of comprehensive public funding allotted to
an opposing certified candidate in a contested election. Supplemental excess reports must
be filed within twenty-four hours after the nonparticipating candidate's aggregate
expenditures exceed $1,000 since the filing of the prior report.2
• Beginning forty-five days before the general election day, noncandidate committees and
any other persons that make independent expenditures that expressly advocate the
nomination, election, or defeat of a certified candidate shall file the initial independent
expenditure report with the commission within twenty four hours after expenditures exceed
$1,000 in aggregate in an election. Supplemental independent expenditure reports must be
filed within twenty-four hours after the aggregate expenditures exceed $1,000 since the
filing of the prior report. The independent expenditure reports shall identify the
Act 244, Section 13(b).
Act 244, Section 14(a)(1).
2
nonparticipating candidate or certified candidate for whom the independent expenditure is
intended to influence the nomination, election, or defeat.3
Private Contributions Allowed
More importantly, pursuant to section 12 (b) of Act 244 of the 2008 Legislature, if the cap
of $300,000 is reached and a candidate only received part of the candidate's base amount of
public funds, or if equalizing funds are not available, a participating candidate may raise
private contributions up to the limits in Hawaii Revised Statutes section 11-204 ($2,000 per
two year election period). For example, if Candidate "A" in District 6 received the base
amount of $37,795 in the primary election, and the $300,000 overall cap was reached prior to
Candidate "A" receiving equalizing funds, or receiving the base amount for the general election,
Candidate "A" could collect $2,000 contributions from as many private contributors as
Candidate "A" is able.
3 Act 244, Section 14(a)(2).
3