REPORT TITLE: 
Campaign Contribution Limits


DESCRIPTION:
Prohibits unlawful, campaign contributions by registered
lobbyists during legislative sessions, as well as by state
contractors during specified periods.  Amends campaign
contribution limits.  Requires late contribution reporting
within 24 hours of receipt.  Limits allowable dispositions of
surplus contributions.


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            54          
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     A BILL FOR AN ACT

RELATING TO ELECTIONS.



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

 1      SECTION 1.  Chapter 11, Hawaii Revised Statutes, is amended
 
 2 by adding three new sections to be appropriately designated and
 
 3 to read as follows:
 
 4      "§11-     Late contributions; reports.  (a)  Each candidate
 
 5 committee or committee that makes or receives a contribution of
 
 6 more than $500 within fifteen days of a primary, special primary,
 
 7 general, or special general election shall report the late
 
 8 contribution to the commission.
 
 9      (b)  The report shall include:
 
10      (1)  The name, address, occupation, and employer of the
 
11           contributor;
 
12      (2)  The name of the candidate or noncandidate committee
 
13           receiving the contribution;
 
14      (3)  The amount of the contribution;
 
15      (4)  The contributors aggregate contributions to the
 
16           candidate or noncandidate committee; and
 
17      (5)  The purpose, if any, to which the contribution will be
 
18           applied.
 

 
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 1      (c)  A late contribution shall be reported by facsimile
 
 2 transmission, guaranteed overnight mail, or personal delivery
 
 3 within twenty-four hours of the time it is made or received.  A
 
 4 late contribution shall be reported on subsequent required
 
 5 reports without regard to reports filed pursuant to this section.
 
 6      (d)  A late contribution need not be reported pursuant to
 
 7 this section if it is returned to the contributor within twenty-
 
 8 four hours of its receipt.
 
 9      (e)  A report filed pursuant to this section shall be in
 
10 addition to any other campaign report required to be filed by
 
11 this subpart.
 
12      §11-     Limitations on contributions; during legislative
 
13 sessions.   During any session of the state legislature, no
 
14 candidate, candidate committee, elected official, or political
 
15 party shall solicit or accept any contribution, or promise to
 
16 make a contribution, from a registered lobbyist, or employer, or
 
17 sponsor of a registered lobbyist.
 
18      §11-    Limitations on contributions; by corporations, trade
 
19 organizations, or labor organizations.  (a)  No corporation,
 
20 trade organization, or labor organization may make a contribution
 
21 or expenditure in connection with any election. 
 
22      (b)  For the purposes of this section, the term
 
23 "contribution" or "expenditure" shall not include:
 

 
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 1      (1)  Communications by a corporation or trade association to
 
 2           its stockholders, members, partners, and executive or
 
 3           administrative personnel;
 
 4      (2)  Communications by a labor organization to its
 
 5           employees, members, and their families;
 
 6      (3)  Nonpartisan registration campaigns, get-out-the-vote
 
 7           campaigns, and the provision of meeting places to any
 
 8           political committee, party, or candidate on a non-
 
 9           discriminatory and non-preferential basis; or
 
10      (4)  The establishment, administration, and solicitation of
 
11           contributions to a separate segregated fund to be
 
12           utilized for political purposes by a corporation,
 
13           commercial partnership, trade organization, or labor
 
14           organization; provided that:
 
15           (A)  No corporation, trade organization, or separate
 
16                segregated fund established by any such
 
17                organization, may solicit contributions to such a
 
18                fund from any person other than its stockholders,
 
19                partners, association members, and its executive
 
20                and administrative personnel, and their families;
 
21                and
 
22           (B)  No labor organization or separate segregated fund
 
23                established by any such organization, may solicit
 

 
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 1                contributions to such a fund from any person other
 
 2                than its employees, members, and their families.
 
 3      (c)  For the purposes of this section, the term "executive"
 
 4 or "administrative personnel" means individuals employed by a
 
 5 corporation who are paid on a salary, rather than hourly, basis
 
 6 and who have policymaking, managerial, professional, or
 
 7 supervisory responsibility."
 
 8      SECTION 2.  Chapter 11, Hawaii Revised Statutes, is amended
 
 9 by adding the following new section to be appropriately
 
10 designated and to read as follows:
 
11      "§11-     Campaign contribution; restrictions as to surplus.
 
12 (a) " For the purposes of this section, "surplus contributions"
 
13 means contributions held by a candidate or candidate committee
 
14 after all expenses have been paid, and loans repaid, for the
 
15 candidate's election period.
 
16      (b)  A candidate committee shall dispose of all surplus
 
17 contributions within ninety days after an election period in
 
18 which the candidate's name last appeared on the ballot.  
 
19      (c)  Surplus contributions shall be disposed of as follows:
 
20      (1)  As return contributions to donors;
 
21      (2)  For expenses associated with closing down the campaign,
 
22           for fundraising expenses, and any other politically-
 
23           related activity sponsored by the candidate;
 

 
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 1      (3)  For any contribution to any community service,
 
 2           educational, youth, recreational, charitable,
 
 3           scientific, or literary organization within the
 
 4           district in which the candidate sought election;
 
 5      (4)  To establish a fund to pay for any ordinary and
 
 6           necessary expenses incurred in connection with the
 
 7           candidate's duties as a holder of an elected state or
 
 8           county office; provided that the amount transferred to
 
 9           any such fund shall not exceed:
 
10           (A)  $20,000 for the offices of governor and lieutenant
 
11                governor;
 
12           (B)  $10,000 for the office of mayor;
 
13           (C)  $4,000 for the office of state senator or county
 
14                office other than mayor;
 
15           (D)  $2,000 for the office of state representative; or
 
16           (E)  $1,000 for any other office.
 
17           Any such fund shall be registered with the commission
 
18           and expenditures from any such fund shall be limited to
 
19           expenditures permitted for funds appropriated pursuant
 
20           to section 24-1; or
 
21      (5)  To the candidate's new or continuing political
 
22           committee; provided that the amount transferred to any
 
23           such committee shall not exceed:
 

 
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 1           (A)  $50,000 if the candidacy is for the office of
 
 2                governor, lieutenant governor, or mayor;
 
 3           (B)  $10,000 if the candidacy is for the office of
 
 4                state senator or county office other than mayor;
 
 5           (C)  $5,000 if the candidacy is for the office of state
 
 6                representative; or
 
 7           (D)  $1,000 if the candidacy is for any other office.
 
 8      (d)  All surplus contributions, other than those retained
 
 9 pursuant to this section, remaining in a candidate's account
 
10 ninety days after the conclusion of an election period shall
 
11 escheat to the Hawaii election campaign fund."
 
12      SECTION 3.  Section 11-195, Hawaii Revised Statutes, is
 
13 amended by amending subsection (f) to read as follows:
 
14      "(f)  For purposes of this subpart, whenever a report is
 
15 required to be filed with the commission, "filed" means received
 
16 in the office of the commission or county clerk, whichever is
 
17 applicable, and filed by electronic means in a manner prescribed
 
18 by the commission, by the date and time specified for the filing
 
19 of the report[; except that a candidate or the committee of a
 
20 candidate who is seeking election to the office of:
 
21      (1)  Governor;
 
22      (2)  Lieutenant governor;
 
23      (3)  Mayor;
 
24      (4)  Prosecuting attorney; or
 
25      (5)  County council;
 

 
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 1 shall file by electronic means in the manner prescribed by the
 
 2 commission.  Candidates for the offices named in this
 
 3 subsection]; provided that candidate committees and committees
 
 4 with contributions [or] and expenditures of less than $5,000 for
 
 5 the election period need not file by electronic means."
 
 6      SECTION 4.  Section 11-204, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "§11-204  Campaign contributions; limits as to persons.(a)
 
 9 No person or any other entity shall make contributions to:
 
10      (1)  A candidate seeking nomination or election to [a two-
 
11           year office] the house of representatives, or to the
 
12           candidate's committee in an aggregate amount greater
 
13           than [$2,000] $1,000 during an election period; [and]
 
14      (2)  A candidate seeking nomination or election to [a four-
 
15           year statewide office] the office of governor or
 
16           lieutenant governor, or to the candidate's committee in
 
17           an aggregate amount greater than [$6,000] $3,000 during
 
18           an election period[; and]; provided that contributions
 
19           made in a general election to a candidate for
 
20           lieutenant governor shall for the purposes of this
 
21           section be treated as a contribution to the candidate's
 
22           co-candidate for governor;
 

 
 
 
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 1      (3)  A candidate seeking nomination or election to [a four-
 
 2           year nonstatewide office the]:
 
 3           (A)  The senate;
 
 4           (B)  The county council for a four-year term;
 
 5           (C)  The office of mayor;
 
 6           (D)  The office of county prosecutor; or
 
 7           the candidate's committee, in an aggregate amount
 
 8           greater than [$4,000] $2,000 during an election
 
 9           period[.]; and
 
10      (4)  A candidate seeking nomination or election to any other
 
11           office or to the candidate's committee in an aggregate
 
12           amount greater than $1,000 for the election period.
 
13 These limits shall not apply to a loan made to a candidate by a
 
14 financial institution in the ordinary course of business.
 
15      (b)  No person or any other entity shall make contributions
 
16 to a noncandidate committee, in an aggregate amount greater than
 
17 $1,000 in an election[; except that in the case of a corporation
 
18 or company using funds from its own treasury, there shall be no
 
19 limit on contributions or expenditures to the corporation or
 
20 company noncandidate committee].
 
21      (c)  A candidate in making a contribution to the candidate's
 
22 campaign shall be exempt from the above limitation[, but shall be
 
23 limited in the aggregate to $50,000 in any election period.  The
 

 
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 1 aggregate amount of $50,000 shall include any loans made for
 
 2 campaign purposes to the candidate from the candidate's immediate
 
 3 family].
 
 4      (d)  Contributions by a candidate's immediate family shall
 
 5 be limited in the aggregate to $50,000 that shall include any
 
 6 loans made for campaign purposes to the candidate by the
 
 7 candidate's immediate family.
 
 8      [(d)] (e)  A contribution by a dependent minor shall be
 
 9 reported in the name of the minor but shall be counted against
 
10 the contribution of the minor's parent or guardian.
 
11      [(e)] (f)  Any candidate or candidate's committee who
 
12 receives in the aggregate more than the applicable limits set
 
13 forth in this section in any primary, initial special, special,
 
14 or general election from a person, shall be required to transfer
 
15 an amount equal to any excess over the limits established in this
 
16 section to the Hawaii election campaign fund within thirty days
 
17 of receipt by a candidate or candidate's committee, and in any
 
18 event, no later than thirty days upon receipt by a candidate or
 
19 candidate's committee of notification from the commission.  A
 
20 candidate or candidate's committee who complies with this
 
21 subsection prior to the initiation of prosecution shall not be
 
22 subject to any penalty under section 11-228.
 

 
 
 
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 1      [(f)] (g)  All payments made by a person whose contributions
 
 2 or expenditure activity is financed, maintained, or controlled by
 
 3 any corporation, labor organization, association, political
 
 4 party, or any other person or committee, including any parent,
 
 5 subsidiary, branch, division, department, or local unit of the
 
 6 corporation, labor organization, association, political party, or
 
 7 any other person, or by any group of those persons shall be
 
 8 considered to be made by a single person.
 
 9      [(g)] (h)  A contribution made by two or more [corporations]
 
10 separate segregated funds shall be treated as one person when
 
11 [such corporations] the separate segregated funds' sponsoring
 
12 organizations:
 
13      (1)  Share [the majority of] two or more members of their
 
14           boards of directors;
 
15      (2)  Share two or more corporate officers;
 
16      (3)  Are owned or controlled by the same majority
 
17           shareholder or shareholders; or
 
18      (4)  Are in a parent-subsidiary relationship.
 
19      [(h)] (i)  An individual and any general partnership in
 
20 which the individual is a partner, or an individual and any
 
21 corporation in which the individual owns a controlling interest,
 
22 shall be treated as one person.
 

 
 
 
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 1      [(i)] (j)  No committee which supports or opposes a
 
 2 candidate for public office shall have as officers, individuals
 
 3 who serve as officers on any other committee [which] that
 
 4 supports or opposes the same candidate.  No such committee shall
 
 5 act in concert with, or solicit, or make contributions on behalf
 
 6 of, any other committee.
 
 7      [(j)  No contributions may be made to a noncandidate
 
 8 committee from a corporation or other organization unless the
 
 9 noncandidate committee has been in existence continuously, as
 
10 shown on the records of the campaign spending commission, for at
 
11 least twelve months prior to the next primary election.]
 
12      (k)  No contributions or expenditures shall be made to or on
 
13 behalf of a candidate or committee by a foreign national or a
 
14 foreign corporation, including a domestic subsidiary of a foreign
 
15 corporation, a domestic corporation that is owned by a foreign
 
16 national, or a local subsidiary where administrative control is
 
17 retained by the foreign corporation, and in the same manner
 
18 prohibited under 2 United States Code section 441e and 11 Code of
 
19 Federal Regulations 110.4(a) and 110.9(a), as amended.  No
 
20 foreign-owned domestic corporation shall make contributions
 
21 where:
 

 
 
 
 
 
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 1      (1)  Foreign national individuals participate in election-
 
 2           related activities such as decisions concerning the
 
 3           making of contributions or the administration of a
 
 4           political committee; or
 
 5      (2)  The contribution funds are not domestically-derived.
 
 6      (l)  No person or any other entity shall make contributions
 
 7 to a political party in an aggregate amount greater than
 
 8 [$50,000] $10,000 in any two-year election period.
 
 9      (m)  No person, other than a political party, shall make
 
10 contributions aggregating more than $25,000 in any calendar year.
 
11 For the purposes of this subsection, any contribution made to a
 
12 candidate in a year other than the calendar year in which the
 
13 election is held with respect to which such contribution is made,
 
14 is considered to be made during the calendar year in which such
 
15 election is held."
 
16      SECTION 5.  Section 11-205, Hawaii Revised Statutes, is
 
17 amended by amending subsection (a) to read as follows:
 
18      "§11-205 Campaign contributions; limits as to political
 
19 parties.(a)  No political party shall make contributions to a
 
20 candidate in any calendar year in an aggregate amount greater
 
21 than the following amounts for each respective office:
 

 
 
 
 
 
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 1      (1)  For the office of governor--[$50,000;] $25,000;
 
 2      (2)  For the office of lieutenant governor--[$40,000;]
 
 3           $20,000;
 
 4      (3)  For the [partisan] offices of mayor and prosecuting
 
 5           attorney--[$25,000;] $12,500;
 
 6      (4)  For the offices of state senator and [partisan] county
 
 7           council member--[$20,000;] $10,000; and
 
 8      (5)  For the office of state representative--[$15,000.]
 
 9           $7,500."
 
10      SECTION 6.  Section 11-205.5, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "§11-205.5 Campaign contributions by state contractors.
 
13 [(a)  Any person making a contribution to any candidate,
 
14 committee, or political party, and who has received, in any
 
15 calendar year, $50,000 or more through contracts from the State,
 
16 or county shall register and report that fact to the commission
 
17 within thirty days of the date of the contribution or within
 
18 thirty days of the date of the contract, whichever occurs later;
 
19 provided that this section shall not apply to a person who has
 
20 received $50,000 or more through a grant, subsidy, or purchase of
 
21 service agreement under chapter 42D.
 

 
 
 
 
 
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 1      (b)  The commission shall prescribe forms and procedures for
 
 2 the reporting required in subsection (a) which, at a minimum,
 
 3 shall require the following information:
 
 4      (1)  The name and address of the person making the
 
 5           contribution;
 
 6      (2)  The name of the candidate, committee, or political
 
 7           party receiving the contribution;
 
 8      (3)  The amount of money received from the State or county,
 
 9           the dates, and information identifying each contract
 
10           and describing the service performed or goods provided;
 
11           and
 
12      (4)  If an entity is making the contribution, the names and
 
13           business addresses of the principals, including
 
14           officers and directors.
 
15      (c)  The commission shall maintain a list of such reports
 
16 for public inspection both at the commission's office and through
 
17 the state FYI electronic bulletin board.]
 
18      (a)  It shall be unlawful for any person:
 
19           (1)  Who enters into a contract with the State or any
 
20                department or political subdivision, at any time
 
21                between the commencement of negotiations for that
 
22                contract, and the termination of those
 
23                negotiations or completion of performance of such
 
24                contract, to directly or indirectly make any
 

 
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 1                contribution, or to promise expressly or impliedly
 
 2                to make any contribution, to any candidate,
 
 3                candidate committee, or committee, or to any
 
 4                person for any political purpose or use; and
 
 5           (2)  To knowingly solicit during the aforementioned
 
 6                period, from any person who enters into a contract
 
 7                or negotiations for a contract with the State, or
 
 8                any department or political subdivision, any
 
 9                contribution to any candidate, candidate
 
10                committee, or committee, or to any person for any
 
11                political purpose.
 
12      For purposes of this section, "contract" includes those for
 
13 the provision of personal services, or to furnish any material,
 
14 supplies, or equipment to the State or any department or
 
15 political subdivision, or sell land or any building to the State
 
16 or any department or political subdivision, where payment for the
 
17 performance of such contract, material, supplies, equipment,
 
18 land, or building, is to be made in whole or in part from funds
 
19 appropriated by the State or any political subdivision.
 
20      (b)  This section shall not prohibit or make unlawful the
 
21 establishment or administration of any separate segregated fund
 
22 by any corporation, partnership, or labor organization."
 

 
 
 
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 1      SECTION 7.  Section 11-206, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§11-206  Campaign contributions; restrictions as to
 
 4 [surplus.] use. [(a)  Every candidate in a primary, special
 
 5 primary, special, or general election who has voluntarily agreed
 
 6 to abide by spending limits and who subsequently receives
 
 7 campaign contributions in an amount greater than the expenditure
 
 8 limit set for the candidate's respective office shall reserve use
 
 9 of these contributions until after a general or special election.
 
10      (b)]  Campaign contributions shall not be used for personal
 
11 expenses or to qualify for public funding in any subsequent
 
12 election, and shall not be transferred to another candidate as
 
13 prohibited in section 11-200.
 
14      Where such contributions are used for the purchase or lease
 
15 of consumer goods, vehicles, equipment, and services that provide
 
16 a mixed benefit to the candidate, they shall be reported to the
 
17 commission pursuant to sections 11-212 and 11-213.
 
18      [(c)  Such contributions may be used after a general or
 
19 special election for any fundraising activity, for any other
 
20 politically related activity sponsored by the candidate, for any
 
21 ordinary and necessary expenses incurred in connection with the
 
22 candidate's duties as a holder of an elected state or county
 
23 office, or for any contribution to any community service,
 

 
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 1 educational, youth, recreational, charitable, scientific, or
 
 2 literary organization, or any other organization which the
 
 3 commission, by rules adopted pursuant to chapter 91, deems
 
 4 appropriate.
 
 5      (d)  All contributions collected pursuant to this section
 
 6 shall be reportable under section 11-213.]"
 
 7      SECTION 8.  Statutory material to be repealed is bracketed.
 
 8 New statutory material is underscored.
 
 9      SECTION 9.  This Act shall take effect upon its approval;
 
10 provided that section 2 of this Act shall take effect on the day
 
11 after the general election of 2002; and provided further that
 
12 section 3 of this Act shall take effect upon its approval only
 
13 with regard to those candidates who will appear on the ballot in
 
14 the year 2002 and then to all candidates and committees in
 
15 subsequent election periods.
 
16 
 
17                           INTRODUCED BY:  _______________________