Clarifies that if a corporation or company uses funds from its own treasury to fund the corporation or company's own noncandidate committee, there is no limit on contributions or expenditures to the corporation or company's noncandidate committee. Each noncandidate committee may only make contributions in the same aggregate amount as an individual may contribute provided that the noncandidate committee register as a committee. Establishes an expenditure ceiling for prosecuting attorney candidates who participate in the publicly funded campaign program. (SD1)

A BILL FOR AN ACT

SECTION 1. In 2005, in an effort to promote transparency in the political campaign contribution process, the legislature enacted Act 203, Session Laws of Hawaii 2005, which established sweeping reforms to the State's campaign spending laws. The legislature finds that there is a need to clarify the intent of some of the amendments made under Act 203 to enhance its effectiveness. Specifically, Act 203 restricted the ability of a corporation or company to use funds from its own treasury to fund the corporation or company's noncandidate committee. This Act clarifies that a corporation or company is not limited with regard to contributions or expenditures made to the corporation or company's noncandidate committee. This Act also reestablishes an expenditure ceiling for prosecuting attorney candidates who participate in the publicly funded campaign program.

The purpose of this Act is to clarify the amendments made to the State's campaign spending laws under Act 203, Session Laws of Hawaii 2005. To fully achieve this objective and minimize, if not avoid any confusion Act 203's amendments may have generated, Section 2 of this Act is given retroactive effect to Act 203's retroactive date of January 1, 2006.

SECTION 2. Chapter 11, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§11-   Contributions and expenditures by persons other than individuals. Persons other than individuals, including corporations, partnerships, associations, or organizations, shall make all contributions to and expenditures for:

through a noncandidate committee only. Each person, other than an individual, including a corporation, partnership, association, or organization, may transfer an unlimited amount of money from its own funds to its respective noncandidate committee in an election period, and each noncandidate committee shall be limited to making contributions and expenditures only in the same aggregate amounts specified in this part as individuals may contribute or expend. Each noncandidate committee shall register as a committee as required under this part."

SECTION 3. Section 11-209, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) From January 1 of the year of any primary, special, or general election, the total expenditures for each election for candidates who voluntarily agree to limit their campaign expenditures, inclusive of all expenditures made or authorized by the candidate alone and all campaign treasurers and committees in the candidate's behalf, shall not exceed the following amounts expressed respectively multiplied by the number of voters in the last preceding general election registered to vote in each respective voting district:

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon approval, provided that section 2 shall take effect retroactively to January 1, 2006.