Report Title:

Campaign Spending; Contribution; Transfer; Surplus

Description:

Clarifies that "ordinary and customary" expenditures are allowable under campaign spending law.

THE SENATE	S.B. NO.	2777
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII

A BILL FOR AN ACT

relating to campaign spending.

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

     SECTION 1.  The legislature finds that a narrow interpretation of current campaign spending law inadvertently undermines the intent of the law by unduly restricting the types of expenditures that candidates are allowed to make using campaign contributions.

     The purpose of the Act is to broaden the permitted uses by clarifying that campaign and surplus funds may be used for ordinary and customary expenses incurred in connection with a candidate's duties as an elected state or county official.

     SECTION 2.  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] customary 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); provided further that no contributions from campaign funds shall be made from the date the candidate files nomination papers to the date of the general election."

     SECTION 3.  Section 11-206, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  Surplus funds may be used after a general or special election for:

     (1)  Any fundraising activity;

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

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

     (4)  Any contribution 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); provided further that no contributions from campaign funds shall be made from the date the candidate files nomination papers to the date of the general election."

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  Statutory material to be repealed is bracketed and stricken.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

     SECTION 5.  This Act shall take effect upon its approval.

INTRODUCED BY:

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