HB457

Report Title:

Campaign contributions; restrictions

Description:

Amends section 11-200 to provide for the use of campaign funds to promote, support, or fund civic or charitable purposes.

HOUSE OF REPRESENTATIVES	H.B. NO.	457
TWENTY-FIRST LEGISLATURE, 2001
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE TRANSFER OF CAMPAIGN CONTRIBUTIONS TO PROMOTE OR SUPPORT CIVIC OR CHARITABLE PURPOSES.

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

SECTION 1. The legislature finds that the support and promotion of civic and charitable organizations organized pursuant to Internal Revenue Code 501c(3) are worthwhile and proper functions of government. It is also proper and appropriate for candidates and public office holders, as representatives of government, to lend their support for civic and charitable purposes.

While it is improper for a public official or candidate to misuse public funds or his position of authority for personal benefit or gain, such expenditures for civic or charitable purposes are proper and should be encouraged.

Although campaign contributions are restricted, pursuant to section 11-200, Hawaii Revised Statutes, for campaign purposes, a candidate or public office holder should be free to use his/her campaign funds for any civic or charitable purpose.

The purpose of this Act is to amend section 11-200, Hawaii Revised Statutes, to allow a candidate or public office holder to use his/her campaign funds for civic or charitable purposes as such purposes are authorized by Internal Revenue Code section 501c-3.

SECTION 2. Section 11-200, Hawaii Revised Statutes, is amended to read as follows:

"§11-200 Campaign contributions; restrictions against transfer. (a) A candidate, campaign treasurer, or candidate's committee shall not receive any contributions or receive or make any transfer of money or anything of value:

(1) For any purpose other than that directly related:

(A) In the case of the candidate, to the candidate's own campaign; or

(B) In the case of a campaign treasurer or candidate's committee, to the campaign of the candidate, question, or issue with which they are directly associated; or

(2) To support the campaigns of candidates other than the candidate for whom the funds were collected or with whom the campaign treasurer or candidate's committee is directly associated; or

(3) To campaign against any other candidate not directly opposing the candidate for whom the funds were collected or with whom the campaign treasurer or candidate's committee is directly associated.

(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 community service, educational, youth, recreational, charitable, scientific, or literary 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)], or any civic or charitable purpose as authorized by Internal Revenue Code 501(c)(3).

(d) This section shall not be construed to prohibit a candidate for the office of governor or lieutenant governor from supporting a co-candidate in the general election.

(e) This section shall not be construed to prohibit a candidate from making contributions to the candidate's party so long as that contribution is not earmarked for another candidate.

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________