Report Title:

Campaign contributions and expenditures

 

Description:

Amends the campaign contributions and expenditures law. (HB170 HD1)

 

HOUSE OF REPRESENTATIVES

H.B. NO.

170

TWENTY-FIRST LEGISLATURE, 2001

H.D. 1

STATE OF HAWAII

  

 

A BILL FOR AN ACT

 

RELATING TO ELECTIONS.

 

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

SECTION 1. Section 11-139, Hawaii Revised Statutes, is amended to read as follows:

"§11-139 Voting assistance. (a) Any voter who requires assistance to vote [by reason of blindness, disability, or inability to read or write], may be given assistance by a person of the voter's choice, other than the voter's employer or agent of that employer or agent of the voter's union, or the voter may receive the assistance of two precinct officials who are not of the same political party. [Before rendering assistance or permitting assistance to be rendered, the precinct officials shall be satisfied that the physical disability exists. If a voter with a physical disability finds it unduly burdensome to enter the polling place, the voter may be handed a ballot outside the polling place but within one hundred feet thereof by the precinct officials and in their presence but in a secret manner, mark and return the same to the precinct officials.]

(b) If a voter with a physical disability finds it unduly burdensome to enter the polling place, the voter may be handed a ballot outside the polling place but within one hundred feet thereof by the precinct officials and in their presence but in a secret manner, mark and return the same to the precinct officials.

[(b)] (c) The precinct officials shall enter in writing in the record book the following:

(1) The voter's name; and

[(2) The fact that the voter cannot read the names on the ballot, if that is the reason for requiring assistance, and otherwise, the specific physical disability which requires the voter to receive assistance; and

(3)] (2) The name or names of the person or persons furnishing the assistance."

SECTION 2. Section 11-191, Hawaii Revised Statutes, is amended by amending the definitions of "expenditure" and "qualifying campaign contributions" to read as follows:

"Expenditure" means:

(1) Any purchase or transfer of money or anything of more than nominal value, or promise or agreement to purchase or transfer money or anything of more than nominal value, or payment incurred or made, or the use or consumption of a nonmonetary contribution for the purpose of:

(A) Influencing the nomination for election, or election, of any person seeking nomination for election, or election, to office whether or not the person has filed the person's nomination paper;

(B) Influencing the outcome of any question or issue that has been certified to appear on the ballot at the next applicable election; or

(C) Use by any party or committee for the purposes set out in subparagraph (A) or (B);

(2) The payment, by any person other than a candidate or committee, of compensation for the personal services of another person that are rendered to the candidate or committee for any of the purposes mentioned in paragraph (1); or

(3) The expenditure by a candidate of the candidate's own funds for the purposes set out in paragraph (1).

(4) The term does not include volunteer personal services and voter registration efforts that are not partisan.

"Qualifying campaign contribution" means an aggregate monetary contribution of $100 or less, by any [person] individual resident of Hawaii during any matching payment period. Qualifying contributions do not include loans or in-kind contributions."

SECTION 3. Section 11-193, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The duties of the commission under this subpart are:

(1) To develop and adopt reporting forms required by this subpart;

(2) To adopt and publish a manual for all candidates and committees, describing the requirements of this subpart, including uniform and simple methods of recordkeeping;

(3) To preserve all reports required by this subpart for at least ten years from the date of receipt;

(4) To permit the inspection, copying, or duplicating of any report required by this subpart pursuant to rules adopted by the commission; provided that no information or copies from the reports shall be sold or used by any person for the purpose of soliciting contributions or for any commercial purpose;

(5) To ascertain whether any candidate, committee, or party has failed to file a report required by this subpart or has filed a substantially defective or deficient report, and to notify these persons by [first class mail] registered or certified mail with return receipt requested that their failure to file or filing of a substantially defective or deficient report must be corrected [and explained]. The correction [or explanation] shall be submitted [in writing] to the commission not later than 4:30 p.m. on the fifth day after notification of the failure to file or deficiency has been [mailed to] received by these persons. The commission shall publish in the newspaper, and on its website, the names of all candidates, committees, and parties who have failed to file a report or to correct their deficiency within the time allowed by the commission. Failure to file or correct a report when due, as required by this subpart, shall result in a penalty of $50. Failure to respond [after a newspaper notification or website publication] to the commission after notification of the failure to file has been received shall result in an additional penalty of $50 for each day a report remains overdue or uncorrected. All penalties collected under this section shall be deposited in the Hawaii election campaign fund;

(6) To hold public hearings;

(7) To investigate and hold hearings for receiving evidence of any violations;

[(8) To adopt a code of fair campaign practices as a part of its rules;]

[(9)] (8) To establish rules pursuant to chapter 91;

[(10)] (9) To request the initiation of prosecution for the violation of this subpart pursuant to section 11-229;

[(11)] (10) To administer and monitor the distribution of public funds under this subpart;

[(12)] (11) To suggest accounting methods for candidates, parties, and committees, as the commission may deem advisable, in connection with reports and records required by this subpart;

[(13)] (12) To employ or contract, without regard to chapters 76 and 77 and section 28-8.3, and, at pleasure, to dismiss persons it finds necessary for the performance of its functions, including a full-time executive director, and to fix their compensation; provided the compensation for the executive director shall be no more than that of deputies or assistants to department heads; and compensation for other employees shall be no greater than that paid to civil service employees performing similar duties;

[(14)] (13) To do random audits, field investigations, as necessary;

[(15)] (14) To file for injunctive relief when indicated;

[(16) To censure any candidate who fails to comply with the code of fair campaign practices;] and

[(17)] (15) To render advisory opinions upon the request of any candidate, candidate committee, noncandidate committee, or other person or entity subject to this chapter, as to whether the facts and circumstances of a particular case constitute or will constitute a violation of the campaign spending laws. If no advisory opinion is rendered within ninety days after all information necessary to issue an opinion has been obtained, it shall be deemed that an advisory opinion was rendered and that the facts and circumstances of that particular case do not constitute a violation of the campaign spending laws. The opinion rendered or deemed rendered, until amended or revoked, shall be binding on the commission in any subsequent charges concerning the candidate, candidate committee, noncandidate committee, or other person or entity subject to this chapter, who sought the opinion and acted in reliance on it in good faith, unless material facts were omitted or misstated by the persons in the request for an advisory opinion."

SECTION 4. Section 11-194, Hawaii Revised Statutes, is amended to read as follows:

"§11-194 Registration. (a) Each candidate, committee, or party shall file an organizational report as set forth in section 11-196, or section 11-196.5 as applicable, within ten days from the date a candidate or candidate committee receives any contributions or makes any expenditures, the aggregate amount of which is more than $100, or, within ten days from the date a noncandidate committee receives any contributions or makes any expenditures, the aggregate amount of which is more than $1,000. A candidate or committee that has already filed an organizational report need not file another unless changes in the candidate's or committee's organization have occurred since the previous filing.

(b) Committees that form within ten days of an election and expend in the aggregate more than $1,000 shall register and fully disclose the expenditure by 4:30 p.m. on the last calendar day prior to the expenditure.

(c) Each candidate who files nomination papers for office with the chief election officer or county clerk shall file an organizational report within ten days of filing[.], unless the candidate is already in office and there have been no changes in the candidate's organization since the previous filing."

SECTION 5. Section 11-195, Hawaii Revised Statutes, is amended to read as follows:

1. By amending subsection (b) to read:

"(b) The original [and one copy] of all reports required under this subpart shall be filed at the office of the commission. In the case of counties having [less] fewer than two hundred thousand voters, the filing shall be accomplished by filing an original [and two copies of the required report with either the commission or] of the required report to the commission, or an original and one copy of the required report to the clerk of the county in which the candidate resides. The clerk shall then immediately mail the original and one copy of the report to the commission."

2. By amending subsection (d) to read:

"(d) All reports filed with the county clerk's office shall be preserved by that office for [ten years] the current election cycle."

SECTION 6. Section 11-196.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The organizational report shall include:

(1) The full name of the committee, which may not include the name of a candidate;

(2) The complete mailing address and telephone number of the committee;

(3) The date the committee was organized;

(4) The area, scope, or jurisdiction of the committee;

(5) An indication as to whether the committee is a political party committee;

(6) The name and mailing address of [a corporation or] an organization that provides funds to the committee. If the committee is not sponsored by or connected with [a corporation or] an organization, [the committee must] the report shall specify the trade, profession, or primary interest of contributors to the committee;

(7) The full name, mailing address, telephone number, occupation, and principal place of business of the [chairperson;]:

(A) Chairperson;

(B) Treasurer;

(C) Other officers; and

(D) Custodian of the books and account if other than a designated officer

[(8) The full name, mailing address, telephone number, occupation, and principal place of business of the treasurer and any other officers;]

[(9)] (8) An indication of whether the committee was formed to support or oppose a specific ballot question or questions, or candidate and if so, a brief description of the questions or the name of the candidate;

[(10) The full name, mailing address, telephone number, occupation, and principal place of business of the custodian of the books and accounts if other than the designated officers;]

[(11)] (9) The full name and address of the depository in which the committee will maintain its campaign account;

[(12)] (10) Written acceptance of appointment by the chairperson and treasurer;

[(13)] (11) A certification of the statement by the chairperson and the treasurer; and

[(14)] (12) The name, address, occupation, and employer of each donor who has contributed an aggregate amount of more than $100 since the last election and the amount and date of deposit of each such contribution."

SECTION 7. Section 11-198, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

(c) Only the campaign treasurer, [and] deputy campaign treasurers, or their designees shall be authorized to receive contributions or make expenditures on behalf of the appointing candidate, committee, or party."

SECTION 8. Section 11-200, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Any provision of law to the contrary notwithstanding, a candidate, campaign treasurer, or candidate's committee, as a contribution:

(1) May purchase from its campaign fund not more than two tickets for each event held by another candidate, committee, or party whether or not the event constitutes a fundraiser as defined in section 11-203;

(2) May use campaign funds for any ordinary and necessary expenses incurred in connection with the candidate's duties as a holder of an elected state or county office, as the term is used in section 11-206(c); and

(3) May make contributions from its campaign fund to any nonprofit community service, educational, youth, recreational, charitable, scientific, [or] literary, or civic organization[, provided that in any election cycle, the total amount of all contributions from campaign funds and surplus funds shall be no more than the maximum amount that one person or other entity may contribute to that candidate pursuant to section 11-204(a)]. For purposes of this paragraph, "nonprofit organization" means any corporation that is exempt from taxation pursuant to section 501(c)(3) of the Internal Revenue Code, 26 U.S.C."

SECTION 9. Section 11-204, Hawaii Revised Statutes, is amended to read as follows:

"§11-204 Campaign contributions; limits as to persons.

(a) (1) No person or any other entity shall make contributions to:

(A) A candidate seeking nomination or election to a two-year office or to the candidate's committee in an aggregate amount greater than [$2,000] $1,000 during an election period;

(B) A candidate seeking nomination or election to a four-year statewide office or to the candidate's committee in an aggregate amount greater than [$6,000] $3,000 during an election period; and

(C) A candidate seeking nomination or election to a four-year nonstatewide office or to the candidate's committee in an aggregate amount greater than [$4,000] $2,000 during an election period.

These limits shall not apply to a loan made to a candidate by a financial institution in the ordinary course of business.

(2) For purposes of this section, the length of term of an office shall be the usual length of term of the office as unaffected by reapportionment, a special election to fill a vacancy, or any other factor causing the term of the office the candidate is seeking to be less than the usual length of term of that office.

(b) No person or any other entity shall make contributions to a noncandidate committee, in an aggregate amount greater than [$1,000] $500 in an election[; except that in the case of a corporation or company using funds from its own treasury, there shall be no limit on contributions or expenditures to the corporation or company noncandidate committee].

(c) No state or national bank, or any corporation organized by authority of any law of the U.S. Congress or of any state shall make a contribution in connection with any nomination for election, or election of a candidate, candidate committee, or noncandidate committee. No officer or director of any corporation or any national or state bank or any officer of any labor organization shall consent to any contribution by the corporation, national or state bank, or labor organization, as the case may be. No person shall accept or receive any contribution prohibited by this section.

For purposes of this section, contributions shall not include the establishment, administration, and solicitation of contributions to a separate segregated fund to be used for political purposes by a corporation, labor organization, membership organization, cooperative, or corporation without capital stock.

It shall be unlawful to use contributions from such separate segregated fund secured by physical force, job discrimination, financial reprisals, or the threat of force, job discrimination, or financial reprisal; or by dues, fees, or other moneys required as a condition of membership in a labor organization or as a condition of employment, or by moneys obtained in any commercial transaction.

Any person soliciting an employee for a contribution to such a fund shall inform the employee at the time of such solicitation of the employee's right to refuse to contribute without any reprisal.

It shall be unlawful for:

(1) A corporation, or a separate segregated fund established by a corporation, to solicit contributions to the fund from any person other than its stockholders and their families and its executive or administrative personnel and their families; or

(2) A labor organization or a separate segregated fund established by a labor organization, to solicit contributions to such a fund from any person other than its members and their families.

No funds for a separate segregated fund established by a corporation may be from dividends, bonuses, or any form of payment to stockholders and their families and its executives or administrative personnel and their families, paid solely for making a contribution to such fund.

This section shall not prevent a membership organization, cooperative, trade association, or corporation without capital stock, or a separate segregated fund established by a membership organization, cooperative, trade association, or corporation without capital stock, from soliciting contributions to such a fund from members of such organization, cooperative, trade association, or corporation without capital stock.

[(c)](d) A candidate's immediate family, in making contributions to the candidate's campaign, shall be exempt from the above limitation, but shall be limited in the aggregate to $50,000 in any election period. The aggregate amount of $50,000 shall include any loans made for campaign purposes to the candidate from the candidate's immediate family.

[(d)](e) A contribution by a dependent minor shall be reported in the name of the minor but shall be counted against the contribution of the minor's parent or guardian.

[(e)](f) Any candidate, candidate's committee, or committee that receives in the aggregate more than the applicable limits set forth in this section in any primary, initial special, special, or general election from a person, shall be required to do one of the following:

(1) Regardless of whether the excess donation was inadvertently made, to transfer an amount equal to any excess over the limits established in this section to the Hawaii election campaign fund within thirty days of receipt of the contribution, and in any event, no later than thirty days upon the receipt by a candidate, candidate's committee, or committee, of notification from the commission; or

(2) If the excess donation was inadvertently made, to return to the donor any excess over the limits established in this section and to notify the commission within thirty days of receipt of the contribution.

A candidate, candidate's committee, or committee who complies with this subsection prior to the initiation of prosecution shall not be subject to any penalty under section 11-228.

[(f) All payments made by a person or political party whose contributions or expenditure activity is financed, maintained, or controlled by any corporation, labor organization, association, political party, or any other person or committee, including any parent, subsidiary, branch, division, department, or local unit of the corporation, labor organization, association, political party, political committees established and maintained by a national political party, or any other person, or by any group of those persons shall be considered to be made by a single person or political party.

(g) A contribution made by two or more corporations shall be treated as one person when such corporations:

(1) Share the majority of members of their boards of directors;

(2) Share two or more corporate officers;

(3) Are owned or controlled by the same majority shareholder or shareholders; or

(4) Are in a parent-subsidiary relationship.]

[(h)](g) An individual and any general partnership in which the individual is a partner[, or an individual and any corporation in which the individual owns a controlling interest,] shall be treated as one person.

[(i)](h) No committee which supports or opposes a candidate for public office shall have as officers individuals who serve as officers on any other committee which supports or opposes the same candidate. No such committee shall act in concert with, or solicit or make contributions on behalf of, any other committee.

[(j) No contributions or expenditures shall be made to or on behalf of a candidate or committee by a foreign national or foreign corporation, including a domestic subsidiary of a foreign corporation, a domestic corporation that is owned by a foreign national, or a local subsidiary where administrative control is retained by the foreign corporation, and in the same manner prohibited under 2 United States Code section 441e and 11 Code of Federal Regulations 110.4(a) and 110.9(a), as amended. No foreign-owned domestic corporation shall make contributions where:

(1) Foreign national individuals participate in election- related activities such as decisions concerning the making of contributions or the administration of a political committee; or

(2) The contribution funds are not domestically-derived.

(k)](i) No person or any other entity other than political committees established and maintained by a national political party shall make contributions to a political party in an aggregate amount greater than $25,000 in any two-year election period. No political committee established and maintained by a national political party, shall make contributions to a political party in an aggregate amount greater than $50,000 in any two-year election period.

[(l) Except for subsection (j), this] (j) This section shall not apply to ballot issue committees."

SECTION 10. Section 11-205.5, Hawaii Revised Statutes, is amended to read as follows:

"§11-205.5 Campaign contributions by state and county contractors. [(a) Any person making a contribution to any candidate, committee, or political party, and who has received, in any calendar year, $50,000 or more through contracts from the State, or county shall register and report that fact to the commission within thirty days of the date of the contribution or within thirty days of the date of the contract, whichever occurs later; provided that this section shall not apply to a person who has received $50,000 or more through a grant, subsidy, or purchase of service agreement under chapter 42F or 103F.

(b) The commission shall prescribe forms and procedures for the reporting required in subsection (a) which, at a minimum, shall require the following information:

(1) The name and address of the person making the contribution;

(2) The name of the candidate, committee, or political party receiving the contribution;

(3) The amount of money received from the State or county, the dates, and information identifying each contract and describing the service performed or goods provided; and

(4) If an entity is making the contribution, the names and business addresses of the principals, including officers and directors.

(c) The commission shall maintain a list of such reports for public inspection both at the commission's office and through the state FYI electronic bulletin board.]

(a) It shall be unlawful for any person who enters into any contract or agreement with the State of Hawaii, any of its counties, any department, agency, or entity thereof either for the rendition of personal services or furnishing any material, supplies, or equipment to the State of Hawaii, any of its counties, any department, agency, or entity thereof or for selling any land or building to the State of Hawaii, any of its counties, any department, agency, or entity thereof, if payment for the performance of such contract or payment for such material, supplies, equipment, land, or building is to be made in whole or in part from funds appropriated by the legislature or county councils, from one year between the notice of the availability of the contract or agreement, or the commencement of the negotiations for the contract or agreement, whichever is earlier, and the completion of performance or termination of the contract or agreement, to make contributions of money or other things of value, directly or indirectly, or to promise or impliedly to make any such contribution to any political party, committee, candidate for public office or any person responsible for entering into any contract or agreement with the State of Hawaii, any of its counties, any department, agency, or entity thereof either for the rendition of personal services or furnishing any material, supplies, or equipment.

(b) It shall be unlawful to solicit any such contribution from any such person for any such purpose during any such period.

(c) The prohibition of contributions by state and county contractors as described in this section shall not apply to any political party, committee, or candidate not a party to such contract or agreement.

(d) This section does not prohibit or make unlawful contributions of one thousand dollars or less by individuals to a noncandidate committee not associated in any manner with state or county contractors as described in this section.

(e) For purposes of this section, "person" means an individual, a partnership and its partners, and a company and its owners, and the immediate family and household members of each of these individuals."

SECTION 11. Section 11-206, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) Such contributions may be used after a general or special election for any fundraising activity, for:

(1) Any other politically related activity sponsored by the candidate;

(2) Any ordinary and necessary expenses incurred in connection with the candidate's duties as a holder of an elected state or county office; or

(3) Any contribution to any nonprofit community service, educational, youth, recreational, charitable, scientific, [or] literary, or civic organization[, provided that in any election cycle, the total amount of all contributions from campaign funds and surplus funds shall be no more than the maximum amount that one person or other entity may contribute to that candidate pursuant to section 11-204(a)]. For purposes of this paragraph, "nonprofit organization" means any corporation that is exempt from taxation pursuant to section 501(c)(3) of the Internal Revenue Code, 26 U.S.C."

SECTION 12. Section 11-207, Hawaii Revised Statutes, is amended as follows:

"§11-207 Other contributions and expenditures. (a) Expenditures, or disbursements for electioneering communications as defined in section 11-207.6, made by any person or political party for the benefit of a candidate in cooperation, consultation, or concert with, or at the request or suggestion of, a candidate, a candidate's political committee, or their agents, shall be considered to be a contribution to such candidate and expenditure by such candidate.

The financing by any person or political party of the dissemination, distribution, or republication, in whole or in part, of any broadcast or any written or other campaign materials prepared by the candidate, the candidate's political committee or committees, or agents shall be considered to be a contribution to such candidate.

This subsection shall not apply to candidates for governor or lieutenant governor supporting a co-candidate in the general election.

(b) No funds shall be withdrawn or paid from a campaign depository except upon the written authorization of the campaign treasurer[.] or designee."

(c) No expenditure for a candidate shall be made or incurred by any committee controlled by a candidate without specific written authorization of the candidate or the candidate's authorized representative. Every expenditure so authorized and made or incurred shall be attributed to the candidate with whom the committee is directly associated for the purpose of imposing the expenditure limitations set forth in section 11-209.

(d) A political party that makes an expenditure in support of an identifiable candidate shall file a report with the commission or appropriate county clerk's office on forms provided by the commission no later than 4:30 p.m., no later than three calendar days prior to the election. The report shall include the name and address of the political party, the name of the candidate who was supported by the expenditure, and the amount of the expenditure.

[(d)] (e) For the purposes of this subpart, an expenditure shall be deemed to be made or incurred when the services are rendered or the product is delivered. Services rendered or products delivered for use during a reporting period covered by this subpart shall be deemed delivered or rendered during the period or periods of use; provided that these expenditures shall be reasonably allocated between periods in accordance with the time the services or products are actually used."

SECTION 13. Section 11-208, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The affidavit shall state that the candidate knows the voluntary campaign expenditure limitations as set out in section 11-209 and that the candidate is voluntarily agreeing to limit the candidate's expenditures and those made on the candidate's behalf by the amount set by law. The affidavit shall be subscribed to by the candidate[and notarized]."

SECTION 14. Section 11-210, Hawaii Revised Statutes, is amended to read as follows:

"§11-210 Study and recommendation. At least one year prior to a primary, special primary, or general election, the commission shall submit to the legislature:

(1) A study and recommendation of reasonable campaign expenditure and contribution limits and the factors which may be relevant in their establishment; [and]

(2) A report concerning the status of the Hawaii election campaign fund, and shall request an appropriation if the total amount of revenues comprising the fund is insufficient to partially finance all candidates for a particular primary, special primary, or general election as set forth in section 11-218[.]; and

(3) An analysis of data in each race including:

(A) The total amount spent;

(B) The sources of contributions by sector and by amount; and

(C) The ratio of spending of successful to nonsuccessful races."

SECTION 15. Section 11-215, Hawaii Revised Statutes is amended as follows:

"§11-215 Advertising. (a) All advertisements shall contain the name and address of the candidate, committee, party, or person paying for the advertisement. If an advertisement is not authorized by a candidate or a candidate's committee, the advertisement shall contain the name and address of the person paying for the advertisement. The information required by this section shall be presented in a clear, audible or legible and prominent manner on the advertisement.

(b) In addition to subsection (a), no candidate [or] committee or party shall cause or submit any advertisement in support of a candidate, against a candidate's opponent, or with regard to a ballot issue to be published, broadcast, televised, or otherwise circulated and distributed except under the following conditions:

(1) The advertisement shall contain a notice in a prominent location that the literature or advertisement is published, broadcast, televised, or circulated with the approval and authority of the candidate, provided that in the event that the literature or advertisement is paid for by a candidate, committee directly associated with a candidate, or ballot issue committee, the notice of approval and authority need not be included; or

(2) The advertisement shall contain a notice in a prominent location that the literature or advertisement is published, broadcast, televised, or circulated without the approval and authority of the candidate.

(c) The penalty for violating this section shall be a fine not to exceed $25 for each advertisement that lacks the required disclaimer and no more than $5,000 aggregate. Where there is a false disclaimer on an advertisement the penalty shall not exceed $1,000."

SECTION 16. Section 11-218, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) For the office of state senator, state representative, county council member, and prosecuting attorney, the maximum amount of public funds available to a candidate in any election shall be [fifteen] thirty per cent of the total expenditure limit for each election as established for each office listed in this subsection pursuant to section 11-209."

SECTION 17. Section 11-223, Hawaii Revised Statutes, is amended to read as follows:

"§11-223 Candidate funding; restrictions. (a) Each candidate who accepts public campaign funds under this subpart shall be required to abide by the campaign spending limits for the candidate's respective office as set forth in section 11-209. Any candidate who exceeds the spending limits for the candidate's respective office as set forth in section 11-209 shall immediately return all of the public campaign funds the candidate has received to the Hawaii election campaign fund.

(b) Public campaign funds provided under this subpart shall only be used to:

(1) Defray campaign expenses incurred by and paid for an eligible candidate or all committees authorized by such candidate; and

(2) Repay loans, the proceeds of which were used to defray campaign expenses.

(c) No candidate or committee authorized by a candidate shall be entitled to receive any public funds under this subpart unless the candidate has qualified to have the candidate's name on the election ballot in the election for which funds are sought.

(d) In no event shall any candidate or campaign treasurer in receipt of public campaign funds transfer any portion of such funds to another candidate for any primary, special primary, special, or general election campaign.

(e) In the event that a candidate for governor and a candidate for lieutenant governor run as co-candidates in the general election, and one candidate has not agreed to abide by spending limits and the other candidate has agreed to spending limits for the election, neither candidate shall be eligible to receive public funds nor be held to the spending limits set forth in section 11-209.

[(e)] (f) All public funds received under this subpart shall be deposited in a financial institution designated to do business in the State. No expenditures of any public funds received under this subpart shall be made except by checks drawn on such checking account. The commission may require such reports relating to the expenditure of such funds as it considers appropriate.

[(f)] (g) Each candidate, on the deadline for filing of a final report for any primary, special primary, special, or general election, shall return all unexpended public funds to the Hawaii election campaign fund."

SECTION 18. Section 235-102.5, Hawaii Revised Statutes, is amended to read as follows:

"§235-102.5 Income check-off authorized. Any individual whose state income tax liability for any taxable year is [$2] $8 or more may designate [$2] $8 of the liability to be paid over to the Hawaii election campaign fund, any other law to the contrary notwithstanding, when submitting a state income tax return to the department of taxation. In the case of a joint return of a husband and wife having a state income tax liability of [$4] $16 or more, each spouse may designate that [$2] $8 be paid to the fund. The director of taxation shall revise the individual state income tax form to allow the designation of contributions to the fund on the face of the tax return and immediately above the signature lines. An explanation shall be included which clearly states that the check-off does not constitute an additional tax liability. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for such taxable year. A designation once made whether by an original or amended return may not be revoked."

SECTION 19. Section 11-211, Hawaii Revised Statutes, is repealed.

["§11-211 House bulletins. The costs of preparing, printing, and circulating house bulletins and the writings, drawings, and photographs contained therein, except for paid political advertisements, shall be exempt from the provisions of this subpart."]

SECTION 20. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 21. This Act shall take effect upon its approval.