SB3118.DOC

SECTION 1. The legislature finds that the Hawaii election campaign fund was established pursuant to article II, section 5, of the Hawaii State Constitution to provide funds for partial public financing of campaigns for public offices of the State and its political subdivisions. Candidate public financing programs are voluntary programs in which public funds are provided to candidates who agree to limit their campaign spending. The primary purpose of these types of programs is to reduce the role of large amounts of private money raised in political campaigns and the obligations that are or can appear to be associated with these contributions.

The Hawaii election campaign fund currently provides funding for the partial public funding program and the comprehensive public funding pilot program for the county of Hawaii. However, the viability of those programs depends on the amount of funds in the Hawaii election campaign fund. On September 1, 2013, the campaign spending commission determined that the comprehensive public funding pilot program would be inoperative for the 2014 election because the Hawaii election campaign fund did not contain the statutorily required minimum amount of $3,500,000.

Furthermore, the partial public funding program and the comprehensive public funding pilot program for the county of Hawaii fail to provide sufficient financial incentives for candidates to participate in these programs to adequately compete against candidates who receive campaign contributions from private sources. Thus, both programs have low participation rates. For example, during the 2012 election, the campaign spending commission reported that twenty-two candidates received public funds under the partial public funding program and a total of $145,696 in public funds was disbursed from the Hawaii election campaign fund. Also during the same election year, eight candidates received public funds under the comprehensive public funding pilot program for the county of Hawaii and a total of $215,344.23 in public funds was disbursed from the Hawaii election campaign fund.

The purpose of this Act is to require the campaign spending commission to collaborate with the legislative reference bureau to submit proposed legislation to the legislature prior to the regular session of 2015 to amend the partial public funding program, with the goals of increasing candidate participation and providing a competitive level of funding if the Hawaii election campaign fund is infused with additional revenue.

SECTION 2. (a) The campaign spending commission shall collaborate with the legislative reference bureau to draft proposed legislation that amends the partial public funding program under chapter 11, part XIII, subpart J, Hawaii Revised Statutes, to increase candidate participation and enable the program to provide a competitive level of funding if the Hawaii election campaign fund is infused with additional revenue. The campaign spending commission may request the assistance and services of employees of any other department, board, bureau, commission, task force, or agency as it may require and as may be available to facilitate its work.

(b) The campaign spending commission, in collaboration with the legislative reference bureau, shall draft proposed legislation relating to the partial public funding program that shall include but not be limited to amendments that:

(1) Establish qualifications for candidates seeking certification for partial public funding including an application process for certification, such as the number of and requirements for qualifying names within the same district;

(2) Require candidates to collect qualifying contributions to be eligible for the partial public funding program, including but not limited to:

(A) Collecting qualifying contribution amounts of $5 from no more than two hundred qualifying names within the same district; and

(B) Setting guidelines for the expenditure of the collected qualifying contributions, including requiring candidates to return any unused qualifying contributions if the candidate decides not to seek election;

(3) Establish a process for the certification of a candidate under the partial public funding program;

(4) Require the campaign spending commission to provide matching funds to certified candidates under the partial public funding program each election year; provided that the campaign spending commission shall:

(A) Provide matching funds to a certified candidate from the Hawaii election campaign fund on a three-to-one basis;

(B) Establish the base amount for matching funds for each district by comparing the average amount spent by the winning candidate in the previous two general elections for the same district with the average amount spent by all winning candidates in the previous two general elections for all districts statewide for the same office and selecting the higher amount;

(C) Establish that the base amount for matching funds for each district shall be the expenditure limit for each candidate seeking election in that district; and

(D) Establish that the maximum amount for which matching funds will be provided to certified candidates shall be based on a percentage of the base amount for matching funds. This percentage shall be determined by the campaign spending commission based on the amount of moneys in the Hawaii election campaign fund;

(5) Establish an order of priority, from highest to lowest, for receipt of partial public funding as follows: office of state representative, office of state senator, office of county council, other elected offices, and statewide office;

(6) Establish threshold amounts in the Hawaii election campaign fund that must be met in order for each office to receive partial public funds following the order of priority under paragraph (5);

(7) Establish guidelines for the use of partial public funds, disbursement of partial public funds, and penalties for any violations;

(8) Specify reporting requirements for candidates receiving partial public funds;

(9) Infuse additional revenue into the Hawaii election campaign fund from specified sources, including but not limited to:

(A) Moneys received under state or county contracts;

(B) Moneys a candidate receives from large contributions of a certain amount by a single source; or

(10) Dedicate moneys within the Hawaii election campaign fund for the purposes of covering the campaign spending commission's operating expenses, including staff salaries and fringe benefits;

(11) Establish reporting requirements, including but not limited to the campaign spending commission reporting to the legislature:

(A) On September 1 of every year preceding an election year:

(i) The amount of funds in the Hawaii election campaign fund;

(ii) The base amount for matching funds that will be used for the partial public funding program;

(iii) The maximum amount for which matching funds will be provided to certified candidates; and

(iv) Any other relevant information; and

(B) On January 1 immediately after every election year:

(i) The number of declarations of intent to seek partial public funding received;

(ii) The number of applications for certifications received;

(iii) The number of candidates who have been certified for partial public funding;

(iv) The amount of public funding committed to certified candidates;

(v) The amount of public funding available for additional certified candidates;

(vi) The balance of the Hawaii election campaign fund; and

(vii) Any other relevant information; and

(12) Establish any other requirements or processes that the campaign spending commission deems necessary to facilitate the partial public funding program.

(c) The campaign spending commission shall develop and submit proposed legislation to the legislature no later than twenty days prior to the convening of the regular session of 2015. The legislative reference bureau shall assist the campaign spending commission in preparing the proposed legislation.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2014-2015 for the campaign spending commission with the assistance by the legislative reference bureau to draft proposed legislation that amends the partial public funding program.

The sum appropriated shall be expended by the campaign spending commission for the purposes of this Act.

SECTION 4. This Act shall take effect on July 1, 2014.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	3118
TWENTY-SEVENTH LEGISLATURE, 2014
STATE OF HAWAII