STAND. COM. REP. NO. 1257
Honolulu, Hawaii
, 2005
RE: S.B. No. 440
S.D. 1
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Third State Legislature
Regular Session of 2005
State of Hawaii
Sir:
Your Committee on Judiciary, to which was referred S.B. No. 440, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO CAMPAIGN SPENDING,"
begs leave to report as follows:
The purpose of this bill is to strengthen the campaign spending law by, among other things:
(1) Prohibiting campaign fundraising on state or county property, except for government facilities permitting political use, and providing that a violation of this prohibition is a misdemeanor;
(2) Limiting contributions from nonresident individuals and persons, including a noncandidate committee, to no more than 30 percent of the total contributions received by a candidate or candidate's committee during an election period;
(3) Restricting campaign contributions by banks or corporations to contributions made from separate segregated funds;
(4) Reducing from ten years to four years the length of time that the county clerks must keep campaign reports;
(5) Requiring candidates for the Senate, House of Representatives, and Office of Hawaiian Affairs (OHA) to file reports electronically with the Campaign Spending Commission (CSC);
(6) Providing that candidates or their committees without access to a computer or the Internet may request a waiver from the requirement of filing electronic reports with CSC;
(7) Removing the ability of candidates or candidate's committees to contribute campaign contributions to community and charitable organizations;
(8) Limiting contributions made by any person or entity to no more than $25,000 in the aggregate to any number of candidates in an election period, except for loans made to a candidate by a financial institution in the ordinary course of business;
(9) Specifying that a noncandidate committee's contribution limits are the same as those for a person or any other entity;
(10) Requiring any excess contribution to be returned to the original donor within 30 days of receipt, or the excess amount will escheat to the Hawaii Election Campaign Fund (Campaign Fund);
(11) Reducing from $50,000 to $25,000, the maximum aggregate amount that a national political party may contribute to a political party in any two-year election period;
(12) Prohibiting government contractors from making or promising political contributions at any time between the execution and the completion of a government contract, or to knowingly solicit any contribution for any purpose at any time;
(13) Specifying that the terms of any loan to a candidate or candidate's committee in excess of $100 must be reported to CSC;
(14) Providing that any loan, except a loan from the candidate or the candidate's immediate family members, that is not repaid within a year is deemed to be a contribution;
(15) Prohibiting the use of campaign contributions for election to another state, county, or federal office without the donor's written consent;
(16) Allowing surplus funds to be used for fundraising activities after a general or special election, and for contributions to community and charitable organizations within 90 days after the general election;
(17) Prohibiting deposits of campaign contributions unless relevant information, including the amount and date of the contribution and the identity of the donor, is filed with CSC;
(18) Requiring candidates, committees, and individuals who do not file nomination papers for an election or who cease to be candidates or committees, to return all contributions by a specified time, or the contributions will escheat to the Campaign Fund;
(19) Increasing from $100 to $1,500, the maximum amount of public funds available to a candidate for OHA in any election year;
(20) Requiring candidates to receive campaign contributions qualifying them for public funds from individual residents of Hawaii only;
(21) Specifying that candidates for special elections are not eligible for public funding;
(22) Providing that a candidate who raises qualifying campaign contributions once in an election period is entitled to received in public funds for each election:
(A) The minimum amount of qualifying campaign contributions; and
(B) $2 for every $1 raised in excess of the minimum amount of qualifying campaign contributions,
up to the maximum amount of public funds available to the candidate under section 11-218, Hawaii Revised Statutes (HRS); and
(23) Making it a class C felony to knowingly or intentionally falsify any campaign report or to violate campaign laws relating to contributions made anonymously or under a false name, and prohibiting deferred acceptance of guilty plea or nolo contendere plea for these violations.
CSC, Department of the Prosecuting Attorney of the City and County of Honolulu, and Pro Democracy Initiative testified in support of this bill. A member of the Senate supported this bill with amendments. The League of Women Voters of Hawaii supported the intent of this measure. The Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO, and a concerned individual opposed this bill. The Department of the Attorney General offered comments.
Your Committee has amended this bill by:
(1) Removing the provision restricting campaign contributions by banks or corporations to contributions made from separate segregated funds;
(2) Clarifying the definition of "clearly identified" to mean the name, photograph or other similar image, or other unambiguous identification of the candidate;
(3) Amending the definition of "residual funds" to have the same meaning as "surplus funds", defined as unspent money from contributions held by a candidate or committee after a general or special election and after all campaign expenditures have been paid for the election period;
(4) Removing the amendment to the definition of "advertisement" that included telephone calls featuring a recorded message;
(5) Providing that an elected official who is seeking re-election to the same office in successive elections and has not sought election to any other office during the period between elections,
is not required to file an organizational report after filing nomination papers for office or after receiving contributions or making expenditures amounting to more than $100 in the aggregate pursuant to section 11-194, HRS unless the candidate is required to report a change in information under section 11-196(b);
(6) Reducing from $2,000 to $250, the maximum aggregate amount a person or any other entity may contribute to a candidate for a two-year office during an election period;
(7) Reducing from $6,000 to $500, the maximum aggregate amount that a person or any other entity may contribute to a candidate for any four-year office during an election period;
(8) Removing the 90-day period after general elections in which surplus funds may be used as contributions to community and charitable organizations, and providing instead that these contributions are prohibited during the 120 days immediately preceding a primary or general election;
(9) Clarifying that electioneering communications do not include communications in a news story or editorial disbursed unless from facilities owned or controlled by any political party, political committee, or candidate;
(10) Providing that campaign contributions to candidates, committees, and individuals who fail to file nomination papers for an election must be returned no later than 90 business days after the deadline to file for nomination;
(11) Amending section 853-4, HRS, to include reference to the new class C felony for certain campaign violations, to reflect that persons charged with this felony are not eligible for a deferred acceptance of guilty plea or nolo contendere plea;
(12) Specifying that the provisions:
(A) Requiring candidates for the Senate, House of Representatives, and OHA to file reports with CSC electronically; and
(B) Allowing candidates or candidate committees to request waivers from mandatory electronic filing,
take effect on January 1, 2006;
(13) Changing the effective date to January 1, 2020, to encourage further discussion; and
(14) Making technical, nonsubstantive amendments for clarity and style.
As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 440, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 440, S.D. 1, H.D. 1, and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Judiciary,
____________________________ SYLVIA LUKE, Chair |
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