REPORT TITLE:
Campaign Financing


DESCRIPTION:
Limits the amount of campaign contributions made by a political
party.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.581        
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO CAMPAIGN FINANCING. 


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

 1      SECTION 1.  Section 11-191, Hawaii Revised Statutes, is
 
 2 amended:
 
 3      1.  By adding a new definition to be appropriately inserted
 
 4 and to read as follows:
 
 5      ""National affiliate of a political party" means a party,
 
 6 committee, association, or other organization that:
 
 7      (1)  Maintains an organization outside the State of Hawaii,
 
 8           that is the parent organization or affiliate of a
 
 9           political party;
 
10      (2)  Promotes a common political end with the political
 
11           party; and
 
12      (3)  Shares common rules or bylaws with a political party.
 
13 A national affiliate of a political party includes any
 
14 subdivision of the national affiliate."
 
15      2.  By amending the definition of "contribution" to read as
 
16 follows:
 
17      ""Contribution" means:
 
18      (1)  A gift, subscription, deposit of money or anything of
 
19           value, or cancellation of a debt or legal obligation
 
20           and includes the purchase of tickets to fundraisers for
 

 
Page 2                                                     
                                     H.B. NO.581        
                                                        
                                                        

 
 1           the purpose of:
 
 2           (A)  Influencing the nomination for election, or
 
 3                election, of any person to office;
 
 4           (B)  Influencing the outcome of any question or issue
 
 5                that appears or is reasonably certain to appear on
 
 6                the ballot at the next applicable election
 
 7                described in subparagraph (A); or
 
 8           (C)  Use by any party or committee for the purposes set
 
 9                out in subparagraph (A) or (B);
 
10      (2)  The payment, by any person or political party or any
 
11           other entity other than a candidate or committee, of
 
12           compensation for the personal services or services of
 
13           another person which are rendered to the candidate or
 
14           committee without charge or at an unreasonably low
 
15           charge for the purposes set out in paragraph (1)(A),
 
16           (1)(B), or (1)(C);
 
17      (3)  A contract, promise, or agreement to make a
 
18           contribution; provided that notwithstanding this
 
19           paragraph and paragraphs (1) and (2), the term
 
20           "contributions" shall not include services or portions
 
21           thereof voluntarily provided without reasonable
 
22           compensation by individuals to or in behalf of a
 
23           candidate or committee; or
 

 
Page 3                                                     
                                     H.B. NO.581        
                                                        
                                                        

 
 1      (4)  Notwithstanding paragraphs (1), (2), and (3), a
 
 2           candidate's expenditure of the candidate's own funds or
 
 3           the making of a loan or advance in the pursuit of the
 
 4           candidate's campaign shall not be a contribution for
 
 5           the purpose of this subpart but shall nevertheless be
 
 6           reportable as a campaign receipt."
 
 7      SECTION 2.  Section 11-204, Hawaii Revised Statutes, is
 
 8 amended:
 
 9      1.  By amending subsection (a) to read as follows:
 
10      "(a)  No person, political party, national affiliate of a
 
11 political party, or any other entity shall make contributions to:
 
12      (1)  A candidate seeking nomination or election to a two-
 
13           year office or to the candidate's committee in an
 
14           aggregate amount greater than $2,000 during an election
 
15           period; [and]
 
16      (2)  A candidate seeking nomination or election to a four-
 
17           year statewide office or to the candidate's committee
 
18           in an aggregate amount greater than $6,000 during an
 
19           election period; and
 
20      (3)  A candidate seeking nomination or election to a four-
 
21           year nonstatewide office or to the candidate's
 
22           committee in an aggregate amount greater than $4,000
 
23           during an election period. 
 

 
Page 4                                                     
                                     H.B. NO.581        
                                                        
                                                        

 
 1      These limits shall not apply to a loan made to a candidate
 
 2 by a financial institution in the ordinary course of business."
 
 3      2.  By amending subsection (f) to read as follows:
 
 4      "(f)  All payments made by a person or political party whose
 
 5 contributions or expenditure activity is financed, maintained, or
 
 6 controlled by any corporation, labor organization, association,
 
 7 political party, national affiliate of a political party, or any
 
 8 other person or committee, including any parent, subsidiary,
 
 9 branch, division, department, or local unit of the corporation,
 
10 labor organization, association, political party, national
 
11 affiliate of a political party, or any other person, or by any
 
12 group of those persons shall be considered to be made by a single
 
13 person[.] or political party."
 
14      3.  By amending subsection (l) to read as follows:
 
15      "(l)  No person or any other entity other than a national
 
16 affiliate of a political party shall make contributions to a
 
17 political party in an aggregate amount greater than [$50,000]
 
18 $6,000 in any two-year election period.  No political party shall
 
19 receive contributions or transfers exceeding $50,000 from any
 
20 national affiliate of a political party in any two-year election
 
21 period."
 
22      SECTION 3.  Section 11-205, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
Page 5                                                     
                                     H.B. NO.581        
                                                        
                                                        

 
 1      "§11-205  Campaign contributions; limits as to political
 
 2 parties.  [(a)  No political party shall make contributions to a
 
 3 candidate in any calendar year in an aggregate amount greater
 
 4 than the following amounts for each respective office:
 
 5      (1)  For the office of governor--$50,000;
 
 6      (2)  For the office of lieutenant governor--$40,000;
 
 7      (3)  For the partisan offices of mayor and prosecuting
 
 8           attorney--$25,000;
 
 9      (4)  For the offices of state senator and partisan county
 
10           council member--$20,000; and
 
11      (5)  For the office of state representative--$15,000.
 
12      (b)  For the purposes of this section, a] A contribution to
 
13 a political party which is earmarked for a particular candidate
 
14 or candidates shall be promptly distributed to such candidate and
 
15 shall be reported by the candidate upon receipt as an individual
 
16 contribution.  Earmarked funds contributed pursuant to this
 
17 section shall be counted:
 
18      (1)  Toward the contribution limit of the political party
 
19           donating such funds to a candidate or candidates; and
 
20      (2)  Toward the contribution limit of the person or persons
 
21           contributing such earmarked funds."
 
22      SECTION 4.  Statutory material to be repealed is bracketed.
 
23 New statutory material is underscored.
 

 
Page 6                                                     
                                     H.B. NO.581        
                                                        
                                                        

 
 1      SECTION 5.  This Act shall take effect upon its approval.
 
 2 
 
 3                           INTRODUCED BY:  _______________________