HB627 HD1

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

"§11- Independent expenditure contributions; value; requirements. (a) If an independent expenditure advocates the election of a clearly identified candidate, the respective candidate committee shall include that expenditure as a contribution to the candidate committee in the reports required by section 11-333.

(b) If an independent expenditure advocates the defeat of a clearly identified candidate, each opposing candidate's candidate committee shall include that expenditure as a contribution to that same opposing candidate's candidate committee in the reports required by section 11-333.

(c) A candidate committee that is required to report an independent expenditure pursuant to this section shall report the contribution value of the independent expenditure as $ . The date of the expenditure shall coincide with the earliest date the candidate or candidate committee first became aware of the expenditure.

(d) The commission shall:

(1) Notify applicable candidates when any independent expenditure is made pursuant to this section; and

(2) Publish the reports required by this section on its website."

SECTION 2. Section 11-302, Hawaii Revised Statutes, is amended as follows:

1. Adding a new definition to be appropriately inserted and to read:

""Opposing candidate" means any candidate running against another candidate for the same elective office during the same election cycle."

2. Amending the definition of "contribution" to read:

""Contribution" means:

(1) A gift, subscription, deposit of money or anything of value, or cancellation of a debt or legal obligation and includes the purchase of tickets to fundraisers, for the purpose of:

(A) Influencing the nomination for election, or the election, of any person to office;

(B) Influencing the outcome of any question or issue that has been certified to appear on the ballot at the next applicable election; or

(2) The payment, by any person or party other than a candidate, candidate committee, or noncandidate committee, of compensation for the services of another person that are rendered to the candidate, candidate committee, or noncandidate committee without charge or at an unreasonably low charge for a purpose listed in paragraph (1);

(3) A contract, promise, or agreement to make a contribution; [or]

(4) Any [~~loans~~] loan or [~~advances~~] advance that [~~are~~] is not documented or disclosed to the commission as provided in section 11-372; or

(5) Any independent expenditure; provided that if the independent expenditure advocates the:

(A) Election of a candidate, then the independent expenditure shall be considered a contribution toward that candidate; or

(B) Defeat of a candidate, then the independent expenditure shall be considered a contribution toward every opposing candidate.

"Contribution" does not include:

(1) [~~Services~~] Any service that is voluntarily provided without compensation by [~~individuals~~] any individual to or on behalf of a candidate, candidate committee, or noncandidate committee;

(2) A candidate's expenditure of the candidate's own funds; provided that this expenditure shall be reportable as other receipts and expenditures;

(3) Any [~~loans~~] loan or [~~advances~~] advance to the candidate committee; provided that [~~these loans~~] any loan or [~~advances~~] advance shall be reported as [~~loans;~~] as a loan; or

(4) An individual, candidate committee, or noncandidate committee engaging in internet activities for the purpose of influencing an election if:

(A) The individual, candidate committee, or noncandidate committee is uncompensated for the internet activities; or

(B) The individual, candidate committee, or noncandidate committee uses equipment or services for uncompensated internet activities, regardless of who owns the equipment and services."

SECTION 3. Section 11-341, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Each statement of information shall contain the following:

(1) The name of the person making the expenditure, name of any person or entity sharing or exercising discretion or control over the person, and the custodian of the books and accounts of the person making the expenditure;

(2) The names and titles of the executives or board of directors who authorized the expenditure, if the expenditure was made by a noncandidate committee, business entity, or an organization;

(3) The state of incorporation or formation and principal address of the noncandidate committee, business entity, or organization or for an individual, the name, address, occupation, and employer of the individual making the expenditure;

(4) The amount of each expenditure during the period covered by the statement and the identification of the person to whom the expenditure was made;

(5) The elections to which the electioneering communications pertain and the names of any clearly identifiable candidates and whether those candidates are supported or opposed;

(6) If the expenditures were made by a candidate committee or noncandidate committee, the names and addresses of all persons who contributed to the candidate committee or noncandidate committee for the purpose of publishing or broadcasting the electioneering communications;

(7) If the expenditures were made by an organization other than a candidate committee or noncandidate committee, the names and addresses of all persons who contributed to the organization for the purpose of publishing or broadcasting the electioneering communications;

(8) Whether or not any electioneering communication is made in coordination, cooperation, or concert with or at the request or suggestion of any candidate, candidate committee, or noncandidate committee, or agent of any candidate if any, and if so, the identification of the candidate, candidate committee, or noncandidate committee, or agent involved; and

(9) The [~~three top~~] contributors as required under section 11-393, if applicable."

SECTION 4. Section 11-393, Hawaii Revised Statutes, is amended to read as follows:

"[[]§11-393[]] Identification of [~~certain top~~] contributors to noncandidate committees making only independent expenditures. (a) An advertisement shall contain an additional notice in a prominent location immediately after or below the notices required by section 11-391, if the advertisement is broadcast, televised, circulated, or published, including by electronic means, and is paid for by a noncandidate committee that certifies to the commission that it makes only independent expenditures. This additional notice shall start with the words, "The three top contributors to the noncandidate committee that paid for this advertisement are", followed by the names of the three top contributors[~~, as defined in subsection (e),~~] who made the highest aggregate contributions to the noncandidate committee [~~for the purpose of funding the advertisement~~]; provided that:

(1) If a noncandidate committee is only able to identify two top contributors who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The two top contributors for this advertisement are", followed by the names of the two top contributors;

(2) If a noncandidate committee is able to identify only one top contributor who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The top contributor for this advertisement is", followed by the name of the top contributor;

(3) If a noncandidate committee is unable to identify any top contributors who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The three top contributors for this noncandidate committee are", followed by the names of the three top contributors who made the highest aggregate contributions to the noncandidate committee; and

(4) If there are no top contributors to the noncandidate committee, the noncandidate committee shall not be subject to this section.

In no case shall a noncandidate committee be required to identify more than three top contributors pursuant to this section.

(b) If a noncandidate committee has more than three top contributors who contributed in equal amounts, the noncandidate committee may select which of the top contributors to identify in the advertisement; provided that the top contributors not identified in the advertisement did not make a higher aggregate contribution than those top contributors who are identified in the advertisement. The additional notice required for noncandidate committees described under this subsection shall start with the words "Three of the top contributors for this advertisement are" or "Three of the top contributors to this noncandidate committee are", as appropriate, followed by the names of the three top contributors.

[(c) This section shall not apply to advertisements broadcast by radio or television of such short duration that including a list of top contributors in the advertisement would constitute a hardship to the noncandidate committee paying for the advertisement. A noncandidate committee shall be subject to all other requirements under this part regardless of whether a hardship exists pursuant to this subsection. The commission shall adopt rules pursuant to chapter 91 to establish criteria to determine when including a list of top contributors in an advertisement of short duration constitutes a hardship to a noncandidate committee under this subsection.

~~(d)~~] (c) Any noncandidate committee that violates this section shall be subject to a fine under section 11-410.

[(e) For purposes of this part, "top contributor" means a contributor who has contributed an aggregate amount of $10,000 or more to a noncandidate committee within a twelve-month period prior to the purchase of an advertisement.]"

SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 6. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on January 28, 2081.

HOUSE OF REPRESENTATIVES	H.B. NO.	627
THIRTIETH LEGISLATURE, 2019		H.D. 1
STATE OF HAWAII