REPORT TITLE: 
Clean Elections Pilot Program


DESCRIPTION:
Establishes a pilot program for the city and county of Honolulu
council elections of 2002 providing for matching public funding
for candidates who voluntarily abide by specified contribution
and expenditure limits.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2148
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                     A BILL FOR AN ACT

RELATING TO ELECTIONS.



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

 1      SECTION 1.  The legislature finds that:
 
 2      (1)  There is a growing sense of cynicism and frustration
 
 3           among the voting public because of the practices of
 
 4           soliciting, raising, and spending large private
 
 5           campaign contributions by candidates and elected
 
 6           officials;
 
 7      (2)  Such practices create the perception of undue influence
 
 8           by moneyed private interests; 
 
 9      (3)  The reliance on  private contributions makes it
 
10           difficult for individuals without access to such
 
11           contributions to meaningfully participate in the
 
12           electoral process; and
 
13      (4)  An alternative to the existing system of private
 
14           fundraising is the use of public moneys in a program
 
15           whereby candidates who agree to voluntarily abide by
 
16           set expenditure limits and limit the receipt of private
 
17           contributions are provided significant matching public
 
18           funds.
 
19      The purpose of this Act is to establish a public-funded
 
20 elections pilot program for the city and county of Honolulu
 

 
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 1 council elections of 2002 to be known as the clean elections
 
 2 pilot program. 
 
 3      SECTION 2.  Clean elections pilot program.  There is
 
 4 established the clean elections pilot program for the city and
 
 5 county of Honolulu council elections of 2002 to be placed with
 
 6 the campaign spending commission for administrative purposes.
 
 7 The commission shall have such duties and powers, as provided
 
 8 under section 11-193, Hawaii Revised Statutes, as are necessary
 
 9 to administer and enforce all requirements under this Act.
 
10      SECTION 3.  Requirements for participating candidates;
 
11 special election; special runoff election.(a)  A candidate
 
12 shall qualify as a clean elections candidate for the special
 
13 election campaign period if the candidate:
 
14      (1)  Files a declaration with the commission that the
 
15           candidate has complied and will comply with all of the
 
16           requirements of this Act, as applicable;
 
17      (2)  Before the close of the clean elections qualifying
 
18           period, collects clean elections qualifying
 
19           contributions from at least two per cent of the total
 
20           number of voters who in the previous election cast
 
21           votes for the city and county of Honolulu council seat
 
22           for which the candidate is running; and
 

 
 
 
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 1      (3)  Accepts only the following private contributions
 
 2           between January 1, 2002, and the date that the
 
 3           candidate qualifies as a clean elections candidate:
 
 4           (A)  Seed money contributions; and
 
 5           (B)  Clean elections qualifying contributions.
 
 6      (b) A candidate shall qualify as a clean elections candidate
 
 7 for the special runoff election campaign period if the candidate:
 
 8      (1)  Has met all of the applicable requirements and filed a
 
 9           declaration with the commission that the candidate has
 
10           fulfilled and will fulfill all requirements applicable
 
11           to a clean elections candidate under this Act; 
 
12      (2)  Qualified as a clean elections candidate during the
 
13           special election campaign period; and
 
14      (3)  Received a sufficient number of votes to appear on the
 
15           ballot in the special runoff election.
 
16      SECTION 4.  Seed money contributions.(a)  Seed money
 
17 contributions from any single individual contributor shall not
 
18 exceed $200.  The aggregate amount of seed money that may be
 
19 retained and expended for seed money purposes by a candidate
 
20 seeking to become eligible for public funding shall not exceed
 
21 $2,000.
 
22      (b)  Seed money shall be spent only during the clean
 
23 elections qualifying period.  Seed money expenditures shall be
 

 
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 1 limited to those necessary for campaign start-up purposes, and
 
 2 may be used to purchase office supplies, rent equipment, and
 
 3 finance public rallies.  Seed money shall not be spent to pay for
 
 4 the solicitation or collection of clean elections qualifying
 
 5 contributions, or for broadcast advertising or mass mailings.
 
 6      (c)  Candidates shall provide seed money contributors with a
 
 7 receipt and shall not accept contributions unless information
 
 8 that shall be included on the receipt under this subsection is
 
 9 disclosed by the contributor.  A receipt for a seed money
 
10 contribution under $25 shall include the contributor's signature,
 
11 printed name, and address.  A receipt for a seed money
 
12 contribution of $25 or more shall include the contributor's
 
13 signature, printed name, street address and zip code, telephone
 
14 number, occupation, and name of employer.
 
15      (d)  Within forty-eight hours after the close of the clean
 
16 elections qualifying period, candidates seeking to become
 
17 eligible for public funding shall:
 
18      (1)  Fully disclose all seed money contributions and
 
19           expenditures to the commission; and
 
20      (2)  Return to the commission for deposit in the Hawaii
 
21           elections campaign fund established under section 11-
 
22           217, Hawaii Revised Statutes, any seed money the person
 
23           has raised during the designated seed money period that
 
24           exceeds the aggregate seed money limit.
 

 
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 1      (e)  No clean elections candidate shall knowingly accept a
 
 2 seed money contribution made by a contributor in the name of
 
 3 another, and who is not the person identified on the seed money
 
 4 receipt.  Candidates violating this subsection shall be fined
 
 5 five times the amount of the contribution.  All penalties
 
 6 collected under this subsection shall be deposited in the Hawaii
 
 7 election campaign fund established under section 11-217, Hawaii
 
 8 Revised Statutes.
 
 9      SECTION 5.  Qualifying contributions.(a)  Each clean
 
10 elections qualifying contribution shall meet the requirements of
 
11 this section.  To be counted as a clean elections qualifying
 
12 contribution:
 
13      (1)  Contributors shall be registered voters who reside
 
14           within the candidate's district;
 
15      (2)  Contributions shall be:
 
16           (A)  In the amount of $10;
 
17           (B)  Made in cash, or by check or money order;
 
18           (C)  Acknowledged by a receipt meeting the requirements
 
19                in subsection (b); and
 
20           (D)  Gathered by candidates themselves, or by
 
21                volunteers who receive no compensation.
 
22      (b)  Receipts for contributions shall indicate, by the
 
23 contributor's signature, that the contributor understands that
 

 
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 1 the purpose of the contribution is to help the candidate qualify
 
 2 for public campaign funding.  The receipt shall include:
 
 3      (1)  The contributor's signature, printed name, home
 
 4           address, and telephone number; and
 
 5      (2)  The name of the candidate on whose behalf the
 
 6           contribution is made.
 
 7      The original receipt shall be given to the contributor.  A
 
 8 copy shall be kept by the candidate and a copy shall be submitted
 
 9 to the commission according to a schedule and procedure to be
 
10 determined by the commission.  A contribution submitted as a
 
11 clean elections qualifying contribution that does not include a
 
12 signed and completed receipt will not be counted as a clean
 
13 elections qualifying contribution.
 
14      (c)  Each contribution shall be deposited in an escrow
 
15 account until the commission determines that the candidate has
 
16 fulfilled the requirements for public funding and may be
 
17 certified as a clean elections candidate.
 
18      SECTION 6.  Use of personal funds.  Personal funds may be
 
19 used as seed money by a candidate seeking to become eligible as a
 
20 clean elections candidate.  Personal funds may not be used to
 
21 meet the clean elections qualifying contribution requirement;
 
22 provided that the candidate and any member of the candidate's
 
23 immediate family who is a registered voter in the state of Hawaii
 
24 may each make a $10 clean elections qualifying contribution.
 

 
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 1      SECTION 7.  Certification as a clean elections candidate.
 
 2 (a)  The commission shall determine whether a candidate is
 
 3 qualified for public campaign funding for the special and special
 
 4 runoff elections.  Candidates who qualify shall be certified by
 
 5 the commission as clean elections candidates.  A candidate's
 
 6 application for certification shall be made on forms to be
 
 7 prescribed by the commission.  The application shall be signed by
 
 8 the candidate and the candidate's campaign treasurer under
 
 9 penalty of perjury.
 
10      (b)  The commission shall issue its decision on
 
11 certification within ten business days of receipt of a
 
12 candidate's complete, initial application for certification, and,
 
13 within ten business days of receipt of a candidate's complete
 
14 application for additional public funding.
 
15      (c)  Certification may be revoked if a clean elections
 
16 candidate violates the applicable requirements of this Act.  Upon
 
17 revocation of certification, the candidate shall repay all public
 
18 campaign funds.
 
19      SECTION 8.  Clean elections candidates; contributions and
 
20 expenditures.  A candidate who has been certified as a clean
 
21 elections candidate and thereby found eligible for clean
 
22 elections campaign funding, shall comply with the following
 
23 restrictions on contributions and expenditures:
 

 
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                                     S.B. NO.           2148
                                                        
                                                        

 
 1      (1)  A clean elections candidate shall not accept campaign
 
 2           contributions made during the special and special
 
 3           runoff election campaign periods:
 
 4           (A)  From noncandidate's committees or individuals not
 
 5                registered to vote in the state of Hawaii and not
 
 6                residing in the candidate's district;
 
 7           (B)  From any individual that aggregate in excess of
 
 8                $200;
 
 9           (C)  From any corporation, company, organization, or
 
10                union; and
 
11           (D)  In the form of loans.  Candidates shall not accept
 
12                any loans from any source during the special and
 
13                special runoff election campaign periods;
 
14      (2)  During the special and special runoff election campaign
 
15           periods, a clean elections candidate shall not expend:
 
16           (A)  Seed money contributions;
 
17           (B)  Public funds for purposes other than those
 
18                specified in this Act;
 
19           (C)  Public funds outside of the particular campaign
 
20                period for which the funding is allocated;
 
21           (D)  Campaign funds in excess of the applicable
 
22                expenditure limit set by the commission for the
 
23                2002 elections; and
 

 
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                                     S.B. NO.           2148
                                                        
                                                        

 
 1           (E)  Public funds in excess of the limit set under
 
 2                section 14 (b) of this Act;
 
 3           and
 
 4      (3)  Clean elections candidates may not accept any monetary
 
 5           or nonmonetary contributions from political parties.
 
 6      SECTION 9.  Clean elections candidates; continuing
 
 7 obligation.  A clean elections candidate who accepts any public
 
 8 funds during the special election campaign period shall comply
 
 9 with all requirements applicable to a clean elections candidate
 
10 under this Act.  This obligation shall continue through the
 
11 special runoff election campaign period regardless of whether
 
12 that person continues to accept, or maintains eligibility for
 
13 public funds. 
 
14      SECTION 10.  Clean elections candidates; reporting.  Clean
 
15 elections candidates shall furnish complete campaign records,
 
16 including all records of in-kind contributions, matching
 
17 contributions, and clean elections qualifying contributions, to
 
18 the commission at regular filing times set by part XII, subpart B
 
19 of chapter 11, Hawaii Revised Statutes, or as requested by the
 
20 commission.  Clean elections candidates shall fully cooperate
 
21 with any audit or examination by the commission. 
 
22      SECTION 11.  Public funding; maximum payment.(a)
 
23 Candidates certified as a qualified clean elections candidate
 

 
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 1 shall be paid public funds in an amount equal to the aggregate
 
 2 matching contributions received by the candidate and the
 
 3 candidate's committee during the matching payment period
 
 4 commencing on February 1, 2002, and ending on the day of the 2002
 
 5 general election; provided that amounts paid shall be subject to
 
 6 limits under subsection (b) and section 12 of this Act.
 
 7      (b)  The maximum amount of public funding that shall be paid
 
 8 to a qualified clean elections candidate under this Act shall be
 
 9 one-half of the median expenditure of all candidates in all
 
10 council districts during the previous city and county of Honolulu
 
11 council special and special runoff elections.
 
12      SECTION 12.  Public funding; maximum amount available.(a)
 
13 Public funds from the Hawaii election campaign fund established
 
14 under section 11-217, Hawaii Revised Statutes, shall be paid to
 
15 clean elections candidates under this Act; provided that total
 
16 payments from the fund shall not exceed $1,200,000.
 
17      (b)  Where the amount of public funds requested by clean
 
18 elections candidates exceeds $1,200,000 the commission shall
 
19 disburse funds up to $1,200,000 based upon the order of
 
20 application for funds by clean elections candidates.
 
21      SECTION 13.  Public funding payments; procedure.(a)  An
 
22 initial allocation of public funding for the special election
 
23 shall be paid to qualified candidates who have met the minimum
 

 
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 1 threshold for payments by receiving no less than ten per cent of
 
 2 the expenditure limit in matching contributions.  Thereafter,
 
 3 clean elections candidates receiving matching contributions in
 
 4 excess of the minimum threshold may apply for matching public
 
 5 funding no more than once every two weeks.
 
 6      (b)  Application forms for public funds shall be adopted by
 
 7 the commission and shall provide for a sworn statement by the
 
 8 clean elections candidate that eligibility for funding under this
 
 9 section has been established.  Each application for public
 
10 funding shall be accompanied by a matching contribution
 
11 statement.  No application may be filed later than thirty days
 
12 after the general election.  Upon commission approval of the
 
13 application and matching contribution statement, the commission
 
14 shall direct the comptroller to distribute matching public funds
 
15 to the qualified candidate up to the maximum amount to which the
 
16 clean elections candidate is entitled under this Act.  Public
 
17 funds shall be distributed by the comptroller within twenty
 
18 working days of the date of application.
 
19      SECTION 14.  Public funds; expenditure limits.(a)  The
 
20 expenditure limit for clean elections candidates for the 2002
 
21 elections shall be set by the commission and shall not exceed the
 
22 median expenditure of all candidates for Honolulu city council in
 
23 all council districts in the previous special and special runoff
 

 
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 1 elections.  To qualify for public funds, a candidate shall agree
 
 2 to abide by the expenditure limit set by the commission for the
 
 3 2002 elections.  The agreement shall be recorded in the form of a
 
 4 signed affidavit prescribed by the commission.  A candidate who
 
 5 has signed an affidavit agreeing to the voluntary expenditure
 
 6 limit, and exceeds that limit, shall return all public funds and
 
 7 be disqualified from receiving any additional public funds during
 
 8 the pilot clean elections period. 
 
 9      (b) If a clean elections candidate spends or incurs an
 
10 obligation to spend more than one hundred per cent of the public
 
11 funds that are allocated to the candidate, the candidate shall
 
12 repay to the Hawaii elections campaign fund an amount equal to
 
13 ten times the excess expenditures.
 
14      SECTION 15.  Public funds; permitted uses.  The public funds
 
15 received by a clean elections candidate shall be used only for
 
16 the purpose of defraying that candidate's direct campaign-related
 
17 expenses, including, but not limited to, the purchase or
 
18 development of campaign literature, campaign signs, development
 
19 and purchase of media space or time, mailings, general office
 
20 supplies, telephones, rental of campaign equipment and
 
21 headquarters, and utility costs associated with the campaign
 
22 headquarters during the election campaign period for which the
 
23 public funds were allotted.  Expenditures shall not be made:
 

 
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 1      (1)  In violation of the law;
 
 2      (2)  To pay any personal, family, or business expenses,
 
 3           loans, or debts; or 
 
 4      (3)  For any noncampaign-related expenses, or for indirect
 
 5           campaign-related expenses.
 
 6      SECTION 16.  Deposit of public funds.(a)  All public funds
 
 7 received by clean elections candidates shall be deposited
 
 8 directly into a financial depository as provided under section
 
 9 11-199, Hawaii Revised Statutes.
 
10      (b)  All reports required by chapter 11, Hawaii Revised
 
11 Statutes, for financial disclosure shall include the most recent
 
12 bank statement from the financial depository.
 
13      SECTION 17.  Deposit of moneys into the Hawaii election
 
14 campaign fund.  The following moneys shall be deposited into the
 
15 Hawaii election campaign fund established under section 11-217,
 
16 Hawaii Revised Statutes:
 
17      (1)  Clean elections qualifying contributions, including any
 
18           excess clean elections qualifying contributions;
 
19      (2)  Excess seed money contributions as provided in this
 
20           Act;
 
21      (3)  Unspent public funds distributed to any clean elections
 
22           candidate who does not remain a candidate until the
 
23           primary, general, or special election for which they
 

 
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 1           were distributed, or such funds that remain unspent by
 
 2           a clean elections candidate following the date of the
 
 3           primary, general, or special election for which they
 
 4           were distributed; and
 
 5      (4)  Voluntary donations made directly to the clean
 
 6           elections pilot project.
 
 7      SECTION 18.  Suspension of partial public funding program.
 
 8 For the purposes of the clean elections pilot program, the
 
 9 partial public funding program provided under chapter 11, Hawaii
 
10 Revised Statutes, shall be temporarily suspended during the
 
11 elections period applicable to Honolulu city council offices in
 
12 2002.
 
13      SECTION 19.  Definitions.  For the purposes of this Act:
 
14      "Candidate" shall have the same meaning as provided in
 
15 section 11-191, Hawaii Revised Statutes.
 
16      "Candidate's committee" shall have the same meaning as
 
17 provided in section 11-191, Hawaii Revised Statutes.
 
18      "Clean elections candidate" or "qualified candidate" means a
 
19 candidate who is certified by the commission as qualifying for
 
20 public funding during the Honolulu city council special election
 
21 or special election campaign periods in 2002, and agrees to abide
 
22 by clean elections contribution and expenditure limitations.
 

 
 
 
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                                     S.B. NO.           2148
                                                        
                                                        

 
 1      "Clean elections campaign funding" means public funds to be
 
 2 provided to clean elections candidates during the 2002 Honolulu
 
 3 city council special and special runoff election campaign
 
 4 periods.
 
 5      "Clean elections qualifying contribution" means a $10
 
 6 contribution made to a candidate during the clean elections
 
 7 qualifying period by a registered voter residing within the
 
 8 candidate's district, that is included within the total number of
 
 9 contributions that must be received by the candidate to qualify
 
10 for public funding.
 
11      "Clean elections qualifying period" means the period during
 
12 which candidates may collect qualifying contributions to qualify
 
13 for public funding, beginning January 1, 2002, and ending April
 
14 30, 2002.
 
15      "Commission" shall have the same meaning as provided in
 
16 section 11-191, Hawaii Revised Statutes.
 
17      "Contribution" shall have the same meaning as provided in
 
18 section 11-191, Hawaii Revised Statutes.
 
19      "In-kind contribution" means a contribution other than of
 
20 money, that may include goods or services.
 
21      "Matching contribution" means contributions that are:
 
22      (1)  Made by a registered voter who resides in the
 
23           candidate's district, that aggregate no more that $200;
 

 
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                                     S.B. NO.           2148
                                                        
                                                        

 
 1      (2)  Received during the special election and special runoff
 
 2           election campaign periods; and
 
 3      (3)  The basis for the amount of matching public funds paid
 
 4           to the candidate under the clean elections pilot
 
 5           program.
 
 6      "Noncandidate committee" has the same meaning as provided in
 
 7 section 11-191, Hawaii Revised Statutes.
 
 8      "Public funding" or "public funds" means clean elections
 
 9 campaign funds.
 
10      "Seed money" means contributions made during the clean
 
11 elections qualifying period that may be expended solely for
 
12 campaign start-up purposes.
 
13      "Special election campaign period" means the period
 
14 beginning ninety days before the primary election and ending two
 
15 weeks after the primary election.
 
16      "Special runoff election campaign period" means the period
 
17 beginning the day after the special election and ending two weeks
 
18 after the special runoff election.
 
19      SECTION 20.  If any provision of this Act, or the
 
20 application thereof to any person or circumstance is held
 
21 invalid, the invalidity does not affect other provisions or
 
22 applications of the Act which can be given effect without the
 
23 invalid provision or application, and to this end the provisions
 
24 of this Act are severable.
 

 
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                                     S.B. NO.           2148
                                                        
                                                        

 
 1      SECTION 21.  This Act shall take effect upon its approval
 
 2 and shall be repealed on December 31, 2002.
 
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