SB1849

SECTION 1. Chapter 11, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . PUBLIC FUNDING FOR CAMPAIGNS; STEPS

§11-A Definitions. As used in this part:

"Competitive expenditure limit" or "expenditure limit" means the expenditure limit for a candidate receiving public funding, to be determined by the campaign spending commission based on the historically competitive amount spent by winners of the office for which the candidate is running.

"Public funding step 1" means the partial public funding program that provides matching public funding up to a maximum of ten to fifteen per cent of the expenditure limit.

"Public funding step 2" means the public funding program that provides matching public funding up to a maximum of thirty per cent of the expenditure limit.

"Public funding step 3" means the public funding program that provides a lump sum of public funding equal to seventy per cent of the expenditure limit.

"Public funding step 4" means the public funding program that provides public funding of one hundred per cent of the expenditure limit plus equalizing funds.

"Start-up funds" means private funds raised by a candidate that may be expended prior to receiving public funding, for the purpose of determining campaign viability.

"Surplus campaign funds" means private funds raised by the candidate and not spent during a prior election period.

§11-B Public funding steps; determination by campaign spending commission. (a) No later than September 1 of the year prior to any primary, special, or general election, the campaign spending commission shall determine whether public funding step 1, step 2, step 3, or step 4 shall be available to candidates in the upcoming election cycle.

(b) The commission is not bound to impose one public funding step for all elections in a given election year; provided that the commission may decide to make different public funding steps available for different offices, or may allow candidates to choose to apply for any public funding step.

(c) The commission shall make the determination under subsection (a) based on the following criteria: availability of funding, interest by candidates and voters, and the opportunity to effectively promote competitive elections. The elections for governor, state senate, and state house of representatives shall have priority for higher public funding steps.

(d) Public funding steps shall not apply to elections of the office of Hawaiian affairs and board of education, and other offices not specified in section 11-219; provided that public funding step 1 shall apply to those elections.

§11-C Start-up funds. (a) The purpose of start-up funds shall be limited to expenditures necessary to determine whether sufficient support exists for a candidate to run for office under a public funding program.

(b) Start-up funds only include funds raised and spent prior to approval for public funding. If a candidate qualifies for and accepts public funds, start-up funds shall not count toward the expenditure limits established in section 11-209.

(c) Once a candidate is approved for public funding, any private funds raised by the candidate are no longer considered start-up funds, and shall count toward the expenditure limits established in section 11-209 and shall be subject to the other requirements in section 11-D. Any unspent start-up funds may be retained and spent, and shall be considered private funds.

(d) Contributions for start-up funds are subject to this chapter. The amount of start-up funds raised or expended, or both, by a candidate seeking eligibility for public funding shall not exceed $10,000 for candidates for governor, lieutenant governor, and mayor, or $3,000 for prosecuting attorney, county council, state senator, and state representative. A candidate may use personal funds or surplus campaign funds for start-up funds, subject to the above limits and this chapter.

(e) This section shall apply to candidates under public funding steps 1, 2, and 3. Public funding step 4 start-up funds shall be determined in accordance with this chapter.

§11-D Private funds; restrictions. (a) Under public funding step 1, each candidate who accepts public campaign funds may raise private funds so that the total amount of private funds and public funds are subject to the expenditure limit, and contributions shall be subject to the contribution limits under this chapter.

(b) Under public funding step 2, each candidate who accepts public campaign funds may raise private funds so that the total amount of private funds and public funds are subject to the expenditure limit, but shall not accept campaign contributions from any person or other entity in an aggregate amount greater than $500. Any candidate who accepts campaign contributions greater than $500 shall immediately return all of the public campaign funds the candidate has received to the Hawaii election campaign fund.

(c) Under public funding step 3, each candidate who accepts public campaign funds may raise private funds so that the total amount of private funds and public funds are subject to the expenditure limit, but may not accept campaign contributions from any person or other entity in an aggregate amount greater than $100. Any candidate who accepts campaign contributions greater than $100 shall immediately return all of the public campaign funds the candidate has received to the Hawaii election campaign fund.

(d) Under public funding step 4, candidates shall not accept any private funds and shall meet continuing obligations after the election period, as provided under this chapter.

§11-E Surplus funds. (a) Under public funding steps 1, 2, and 3, a candidate who has surplus campaign funds from a previous election is prohibited from using those funds for anything other than in-office constituent communications. The surplus campaign funds shall be maintained in a separate depository account from that established for funds used during the campaign for which the candidate has received public funding. The candidate shall continue to file reports on the surplus campaign funds in accordance with section 11-195 or as otherwise may be required by the commission.

(b) Under public funding steps 1, 2, and 3, if a candidate who accepted public funds is elected into office, surplus campaign funds from the recent election or from a previous election may be carried over to cover in-office constituent communications not to exceed $6,000 annually. If the candidate has a total surplus less than $12,000 for a two-year term of office or less than $24,000 for a four-year term of office, the candidate may raise the difference while in office.

(c) Under public funding step 4, candidates may use surplus funds for in-office constituent communications in accordance with this chapter."

SECTION 2. 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:~~

~~(1)~~ ~~For the office of governor--$2.50;~~

~~(2)~~ ~~For the office of lieutenant governor--$1.40;~~

~~(3)~~ ~~For the office of mayor--$2.00;~~

~~(4)~~ ~~For the offices of state senator, state representative, and county council member--$1.40; and~~

~~(5)~~ ~~For the offices of the board of education and all other offices--20 cents.~~] competitive expenditure limit. The competitive expenditure limit for each office shall be determined by the campaign spending commission no later than September 1 of the year prior to the primary, special, or general election. The commission shall determine the competitive expenditure limit by calculating the average of the amounts spent by the winners of a given office and district in the previous two elections. The commission may choose to set competitive expenditure limits higher than that calculation, based on the following criteria: a change in the number of voters in that district, inflation, changes in the cost of products or services typically purchased for campaigns, and any other factors that are anticipated to affect the cost of campaigning."

SECTION 3. Section 11-218, Hawaii Revised Statutes, is amended to read as follows:

"§11-218 Candidate funding; amounts available. (a) [~~For~~] Under public funding step 1, for the office of governor, lieutenant governor, or mayor, the maximum amount of public funds available to a candidate in any election shall not exceed ten per cent of the total expenditure limit as determined under section 11-209 for each election for each office listed in this subsection. Under public funding step 2, for the office of governor, lieutenant governor, or mayor, the maximum amount of public funds available to a candidate in any election shall not exceed thirty per cent of the expenditure limit as determined under section 11-209 for each election for each office listed in this subsection. Under public funding step 3, for the office of governor, lieutenant governor, or mayor, the maximum amount of public funds available to a candidate in any election shall not exceed seventy per cent of the spending limit as determined under section 11-209 for each election for each office listed in this subsection.

(b) [~~For~~] Under public funding step 1, 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 per cent of the total expenditure limit as determined under section 11‑209 for each election for each office listed in this subsection. Under public funding step 2, 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 thirty per cent of the expenditure limit as determined under section 11‑209 for each election for each office listed in this subsection. Under public funding step 3, 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 seventy per cent of the spending limit as determined under section 11-209 for each election for each office listed in this subsection.

(c) For the office of Hawaiian affairs, the maximum amount of public funds available to a candidate shall not exceed $1,500 in any election year.

(d) For the board of education and all other offices, the maximum amount of public funds available to a candidate shall not exceed $100 in any election year.

(e) Each candidate who qualified for the maximum amount of public funding in any primary election and who is a candidate for a subsequent general election shall apply with the commission to be qualified to receive the maximum amount of public funds as provided in this section for the respective election. For purposes of this section, "qualified" means meeting the qualifying campaign contribution requirements of section 11-219.

(f) Under public funding step 4, the maximum amount of public funds available to a candidate in any election shall be one hundred per cent of the expenditure limit plus equalizing funds as determined under this chapter."

SECTION 4. Section 11-219, Hawaii Revised Statutes, is amended to read as follows:

"§11-219 Qualifying campaign contributions; amounts. [As] (a) Under public funding step 1, as a condition of receiving public funds for a primary or general election, a candidate shall not be unopposed in any election for which public funds are sought, shall have filed an affidavit with the commission pursuant to section 11-208 to voluntarily limit the candidate's campaign expenditures, and shall be in receipt of the following sum of qualifying campaign contributions from individual residents of Hawaii:

(1) For the office of governor--qualifying contributions that in the aggregate, exceed $100,000;

(2) For the office of lieutenant governor--qualifying contributions that in the aggregate, exceed $50,000;

(3) For the office of mayor for each respective county:

(A) County of Honolulu--qualifying contributions that in the aggregate, exceed $50,000;

(B) County of Hawaii--qualifying contributions that in the aggregate, exceed $15,000;

(D) County of Kauai--qualifying contributions that in the aggregate, exceed $5,000; [~~and~~]

(4) For the office of prosecuting attorney for each respective county:

(A) County of Honolulu--qualifying contributions that in the aggregate, exceed $30,000;

(B) County of Hawaii--qualifying contributions that in the aggregate, exceed $10,000; and

(5) For the office of county council--for each respective county:

(A) County of Honolulu--qualifying contributions that in the aggregate, exceed $5,000;

(B) County of Hawaii--qualifying contributions that in the aggregate, exceed $1,500;

(D) County of Kauai--qualifying contributions that in the aggregate, exceed $3,000;

(6) For the office of state senator--qualifying contributions that, in the aggregate, exceed $2,500;

(7) For the office of state representative--qualifying contributions that, in the aggregate, exceed $1,500;

(8) For the office of Hawaiian affairs--qualifying contributions that, in the aggregate, exceed $1,500; and

(9) For all other offices, qualifying contributions that, in the aggregate, exceed $500.

(b) Under public funding step 2, as a condition of receiving public funds for a primary or general election, a candidate shall not be unopposed in any election for which public funds are sought, shall have filed an affidavit with the commission pursuant to section 11-208 to voluntarily limit the candidate's campaign expenditures, and shall be in receipt of the following sum of qualifying campaign contributions from individual residents of Hawaii, as follows:

(1) For the office of governor--qualifying contributions that in the aggregate, exceed $ ;

(2) For the office of lieutenant governor--qualifying contributions that in the aggregate, exceed $ ;

(3) For the office of mayor for each respective county:

(A) County of Honolulu--qualifying contributions that in the aggregate, exceed $ ;

(B) County of Hawaii--qualifying contributions that in the aggregate, exceed $ ;

(D) County of Kauai--qualifying contributions that in the aggregate, exceed $ ;

(4) For the office of prosecuting attorney for each respective county:

(A) County of Honolulu--qualifying contributions that in the aggregate, exceed $ ;

(B) County of Hawaii--qualifying contributions that in the aggregate, exceed $ ; and

(5) For the office of county council--for each respective county:

(A) County of Honolulu--qualifying contributions that in the aggregate, exceed $ ;

(B) County of Hawaii--qualifying contributions that in the aggregate, exceed $ ;

(D) County of Kauai--qualifying contributions that in the aggregate, exceed $ ;

(6) For the office of state senator--qualifying contributions that, in the aggregate, exceed $ ; and

(7) For the office of state representative--qualifying contributions that, in the aggregate, exceed $3,000.

(c) Under public funding step 3, as a condition of receiving public funds for a primary or general election, a candidate shall not be unopposed in any election for which public funds are sought, shall have filed an affidavit with the commission pursuant to section 11-208 to voluntarily limit the candidate's campaign expenditures, and shall be in receipt of the following sum of qualifying campaign contributions from individual residents of Hawaii, as follows: