HOUSE OF REPRESENTATIVES	H.B. NO.	2156
TWENTY-EIGHTH LEGISLATURE, 2016		H.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO CAMPAIGN FINANCE.

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

     SECTION 1.  Section 11-381, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Campaign funds may be used by a candidate, treasurer, or candidate committee:

     (1)  For any purpose directly related:

         (A)  In the case of the candidate, to the candidate's own campaign; or

         (B)  In the case of a candidate committee or treasurer of a candidate committee, to the campaign of the candidate, question, or issue with which they are directly associated;

     (2)  To purchase or lease consumer goods, vehicles, equipment, and services that provide a mixed benefit to the candidate.  The candidate, however, shall reimburse the candidate's candidate committee for the candidate's personal use of these items unless the personal use is de minimis;

     (3)  To make donations to any community service, educational, youth, recreational, charitable, scientific, or literary organization; provided that in any election period, the total amount of all donations shall be no more than twice the maximum amount that one person may contribute to that candidate pursuant to section 11-357; provided further that no contributions shall be made from the date the candidate files nomination papers to the date of the general election;

     (4)  To make donations to any public school or public library; provided that in any election period, the total amount of all contributions shall be no more than twice the maximum amount that one person may contribute to that candidate pursuant to section 11-357; provided further that any donation under this paragraph shall not be aggregated with or imputed toward any limitation on donations pursuant to paragraph (3);

     (5)  To award scholarships to full-time students attending an institution of higher education or a vocational education school in a program leading to a degree, certificate, or other recognized educational credential; provided that in any election period, the total amount of all scholarships awarded shall be no more than twice the maximum amount that one person may contribute to that candidate pursuant to section 11-357; provided further that no awards shall be made from the filing deadline for nomination papers to the date of the general election;

     (6)  [To purchase not more than two tickets for each event held by another candidate or committee, whether or not the event constitutes a fundraiser as defined in section 11-342;] To make contributions to any candidate committee up to the threshold amounts set by this chapter;

     (7)  To make contributions to the candidate's party so long as the contributions are not earmarked for another candidate; or

     (8)  To pay for ordinary and necessary expenses incurred in connection with the candidate's duties as a holder of an office[.]; provided that expenses incurred for memberships in civic or community groups or for protocol gifts shall be no more than twice the maximum amount that one person may contribute to that candidate pursuant to section 11-357."

     SECTION 2.  Section 11-382, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§11-382[]]  Prohibited uses of campaign funds.  Campaign funds shall not be used:

     (1)  To support the campaigns of candidates other than the candidate with which they are directly associated[;], except as provided for under section 11-381;

     (2)  To campaign against any other candidate not directly opposing the candidate with which they are directly associated; or

     (3)  For personal expenses."

     SECTION 3.  Section 11-421, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c)  Moneys in the fund shall be paid to candidates by the comptroller as prescribed in section 11-431 [and may be used for the commission's operating expenses, including staff salaries and fringe benefits]."

     SECTION 4.  The legislature determines that there is in the campaign spending trust fund at least $         in excess of the requirements of the fund.  Until June 30, 2017, the director of finance is authorized to transfer from the campaign spending trust fund to the general fund the sum of $         or so much thereof as may be necessary for fiscal year 2016-2017.

     SECTION 5.  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 2016-2017 for the campaign spending commission's operating expenses, including staff salaries.

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

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 2016.

Report Title:

Campaign Finance; Campaign Spending Commission; Operating Expenses; Appropriation

Description:

Amends the permitted uses of campaign funds to include contributions to other candidate committees.  Limits the amount of campaign funds that may be spent by an elected official on memberships in civic or community groups or on protocol gifts to twice the allowable individual contribution amount.  Appropriates moneys to the Campaign Spending Commission for operating expenses.  Transfers excess trust funds to the general fund.  (HB2156 HD2)

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