REPORT TITLE:
Campaign Spending


DESCRIPTION:
Amends the campaign spending law with respect to a candidate,
committee, or party that has failed to file or correct a report
required by that law, by specifying that the $50 per day penalty
is to be imposed beginning on the day that the report was due.
Allows for waivers of penalties for good cause.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            1412        
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO CAMPAIGN SPENDING.
 


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

 1      SECTION 1.  Currently, the campaign spending commission
 
 2 imposes fines for late-filed reports under the campaign spending
 
 3 law beginning after the commission has mailed out a notification
 
 4 letter of the failure to file.  The legislature finds, however,
 
 5 that liability should instead begin from the date that the report
 
 6 was due by law rather than from the date of receipt of the
 
 7 commission's notification letter, which may be significantly
 
 8 later in time.  To require otherwise promotes noncompliance with
 
 9 the campaign finance laws by encouraging persons to file reports
 
10 late.  In order to ensure that existing report filing deadlines
 
11 are not rendered meaningless, this Act amends the campaign
 
12 finance law to require the penalty of $50 per day for each day a
 
13 report required by that law remains overdue or uncorrected to be
 
14 imposed beginning on the day that the report was due.  In
 
15 addition, this Act provides that these penalties may be waived if
 
16 the commission finds that good cause has been established for a
 
17 failure to file or correct a report.
 
18      SECTION 2.  Section 11-193, Hawaii Revised Statutes, is
 
19 amended by amending subsection (a) to read as follows:
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1      "(a)  The duties of the commission under this subpart are:
 
 2      (1)  To develop and adopt reporting forms required by this
 
 3           subpart;
 
 4      (2)  To adopt and publish a manual for all candidates and
 
 5           committees, describing the requirements of this
 
 6           subpart, including uniform and simple methods of
 
 7           recordkeeping;
 
 8      (3)  To preserve all reports required by this subpart for at
 
 9           least ten years from the date of receipt;
 
10      (4)  To permit the inspection, copying, or duplicating of
 
11           any report required by this subpart pursuant to rules
 
12           adopted by the commission; provided that no information
 
13           or copies from the reports shall be sold or used by any
 
14           person for the purpose of soliciting contributions or
 
15           for any commercial purpose;
 
16      (5)  To ascertain whether any candidate, committee, or party
 
17           has failed to file a report required by this subpart or
 
18           has filed a substantially defective or deficient
 
19           report, and to notify these persons by first class mail
 
20           that their failure to file or filing of a substantially
 
21           defective or deficient report must be corrected and
 
22           explained.  The correction or explanation shall be
 
23           submitted in writing to the commission not later than
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1           4:30 p.m. on the fifth day after notification of the
 
 2           failure to file or deficiency has been mailed to these
 
 3           persons.  The commission shall publish in the newspaper
 
 4           the names of all candidates, committees, and parties
 
 5           who have failed to file a report or to correct their
 
 6           deficiency within the time allowed by the commission.
 
 7           Failure to file or correct a report when due, as
 
 8           required by this subpart, shall result in [a] an
 
 9           initial penalty of $50[.  Failure to respond after a
 
10           newspaper notification shall result in], and an
 
11           additional penalty of $50 for each day a report remains
 
12           overdue or uncorrected[.] to be imposed beginning on
 
13           the day that the report was due; provided that the
 
14           penalties imposed by this paragraph may be waived if
 
15           the commission finds that good cause has been
 
16           established for a failure to file or correct a report.
 
17           All penalties collected under this section shall be
 
18           deposited in the Hawaii election campaign fund;
 
19      (6)  To hold public hearings;
 
20      (7)  To investigate and hold hearings for receiving evidence
 
21           of any violations;
 
22      (8)  To adopt a code of fair campaign practices as a part of
 
23           its rules;
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1      (9)  To establish rules pursuant to chapter 91;
 
 2     (10)  To request the initiation of prosecution for the
 
 3           violation of this subpart pursuant to section 11-229;
 
 4     (11)  To administer and monitor the distribution of public
 
 5           funds under this subpart;
 
 6     (12)  To suggest accounting methods for candidates, parties,
 
 7           and committees, as the commission may deem advisable,
 
 8           in connection with reports and records required by this
 
 9           subpart;
 
10     (13)  To employ or contract, without regard to chapters 76
 
11           and 77 and section 28-8.3, and, at pleasure, to dismiss
 
12           persons it finds necessary for the performance of its
 
13           functions, including a full-time executive director,
 
14           and to fix their compensation;
 
15     (14)  To do random audits, field investigations, as
 
16           necessary; 
 
17     (15)  To file for injunctive relief when indicated;
 
18     (16)  To censure any candidate who fails to comply with the
 
19           code of fair campaign practices; and
 
20     (17)  To render advisory opinions upon the request of any
 
21           candidate, candidate committee, noncandidate committee,
 
22           or other person or entity subject to this chapter, as
 
23           to whether the facts and circumstances of a particular
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1           case constitute or will constitute a violation of the
 
 2           campaign spending laws.  If no advisory opinion is
 
 3           rendered within ninety days after all information
 
 4           necessary to issue an opinion has been obtained, it
 
 5           shall be deemed that an advisory opinion was rendered
 
 6           and that the facts and circumstances of that particular
 
 7           case do not constitute a violation of the campaign
 
 8           spending laws.  The opinion rendered or deemed
 
 9           rendered, until amended or revoked, shall be binding on
 
10           the commission in any subsequent charges concerning the
 
11           candidate, candidate committee, noncandidate committee,
 
12           or other person or entity subject to this chapter, who
 
13           sought the opinion and acted in reliance on it in good
 
14           faith, unless material facts were omitted or misstated
 
15           by the persons in the request for an advisory opinion."
 
16      SECTION 3.  Statutory material to be repealed is bracketed.
 
17 New statutory material is underscored.
 
18      SECTION 4.  This Act shall take effect upon its approval.
 
19 
 
20                              INTRODUCED BY:______________________