Report Title:

Publicly-Funded County Council Elections

 

Description:

Amends the campaign spending laws to provide public funding for candidates who voluntarily abide by certain contribution and expenditure limits for county council elections in counties having populations exceeding 500,000. Appropriates $150,000 to the campaign spending commission for support staff.

 

 

HOUSE OF REPRESENTATIVES

H.B. NO.

2187

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to elections.

 

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

SECTION 1. The purpose of this Act is to provide full public funding for candidates who voluntarily agree to abide by certain contribution and expenditure limits for elections to county councils in counties in which the population exceeds five hundred thousand persons. Those candidates for county council in counties with equal to or less than five hundred thousand persons who voluntarily agree to abide by campaign contribution and expenditure limits shall continue to be eligible for partial public funding of their elections under existing law, namely, chapter 11, part XII, subpart B, Hawaii Revised Statutes.

SECTION 2. Chapter 11, Hawaii Revised Statutes, is amended by adding a new subpart to part XII to be appropriately designated and to read as follows:

" . PUBLICLY-FUNDED COUNTY COUNCIL ELECTIONS

§11-A Definitions. As used in this subpart, unless the context clearly requires otherwise:

"Candidate" has the same meaning as defined in section 11-191.

"Candidate's committee" has the same meaning as defined in section 11-191.

"Commission" has the same meaning as defined in section 11-191.

"Committee" has the same meaning as defined in section 11-191.

"Contribution" has the same meaning as defined in section 11-191.

"County council" means the legislative body of a county in which the population exceeds five hundred thousand persons.

"Excess expenditure" means the amount of money spent or obligated to be spent by a publicly-funded candidate in excess of one hundred per cent of the public funding the candidate is allocated.

"Expenditure" has the same meaning as defined in section 11-191.

"Immediate family" has the same meaning as defined in section 11-191.

"Individual" has the same meaning as defined in section 11-191.

"Loan" has the same meaning as defined in section 11-191.

"Office" has the same meaning as defined in section 11-191.

"Nonmonetary contribution" means a contribution other than of money, that may include goods or services.

"Party" has the same meaning as defined in section 11-191.

"Person" has the same meaning as defined in section 11-191.

"Petty cash expenditure" means an expenditure of no more than $25, paid in cash in amounts of $100 or less per week.

"Primary election campaign period" means the period beginning January first and ending two weeks after the primary election.

"Private contribution" has the same meaning as defined in section 11-191.

"Public funding" or "public funds" means publicly-funded elections campaign funds.

"Publicly-funded candidate" means a candidate who is certified by the commission as qualifying for public funding during a county council primary or runoff election campaign period, and agrees to abide by publicly-funded elections qualifying contribution and expenditure limitations.

"Publicly-funded elections qualifying contribution" means a $2 contribution made to a candidate during the publicly-funded qualifying period by a registered voter residing within the candidate's district, that is included within the total number of contributions that must be received by the candidate to qualify for public funding.

"Publicly-funded qualifying period" means the period during which candidates may collect qualifying contributions to qualify for public funding, beginning January 1 of the year preceding the general election and ending June 30 in the year of the general election, whenever there is a minimum of $1,000,000 in the Hawaii election campaign fund.

"Runoff election campaign period" means the period beginning the day after the primary election and ending two weeks after a runoff election.

"Seed money" means contributions made during the public-funded elections qualifying period that may be expended solely for campaign start-up purposes.

§11-B Publicly-funded county council elections; requirements for participating candidates. (a) This subpart shall apply only to elections to county councils in counties in which the population exceeds five hundred thousand persons.

(b) A candidate shall qualify as a publicly-funded candidate for the primary election campaign period if the candidate:

(1) Is a registered voter and is living in the district from which the person is to be elected as of January 1 of the year in which the general election will take place;

(2) Files a declaration with the commission that the candidate has complied and will comply with all of the requirements of this subpart, as applicable;

(3) Before the close of the publicly-funded elections qualifying period, collects publicly-funded elections qualifying contributions from at least one per cent of the registered voters in the district in which the candidate is running; and

(4) Accepts only the following contributions between January 1 of the year in which the general election will take place, and the date that the candidate qualifies as a publicly-funded candidate:

(A) Seed money contributions; and

(B) Publicly-funded elections qualifying contributions.

(c) A candidate shall qualify as a publicly-funded candidate for the runoff election campaign period if the candidate:

(1) Qualified as a publicly-funded candidate during the primary election campaign period; and

(2) Received a sufficient number of votes to appear on the ballot in the runoff election.

§11-C Seed money contributions. (a) Seed money contributions from any single individual contributor shall not exceed $250, including in kind contributions. The aggregate amount of seed money that may be retained and expended for seed money purposes by a candidate seeking to become eligible for public funding shall not exceed $5,000.

(b) Seed money shall be spent only during the publicly-funded qualifying period. Seed money expenditures shall be limited to those expenditures necessary to determine whether sufficient support exists to run for office, and may be used to purchase office supplies, rent equipment, send a mailing to district residents, and hold gatherings. Seed money shall not be spent for any salaries, rental of premises, or to pay any person to solicit or collect qualifying contributions.

(c) Candidates shall provide seed money contributors with a receipt and shall not accept contributions unless information that shall be included on the receipt under this subsection is disclosed by the contributor. A receipt for a seed money contribution shall include the contributor's:

(1) Signature;

(2) Printed name;

(3) Home address;

(4) Zip code;

(5) Telephone number; and

(6) Donation amount or value.

(d) Within forty-eight hours after the close of the publicly-funded qualifying period, candidates seeking to become eligible for public funding shall:

(1) Fully disclose all seed money contributions and expenditures to the commission; and

(2) Return to the commission for deposit in the Hawaii election campaign fund any seed money the person has raised during the designated seed money period that exceeds the aggregate seed money limit.

(e) No publicly-funded candidate shall knowingly accept a seed money contribution made by a contributor in the name of another, who is not the person identified on the seed money receipt. Any candidate violating this subsection shall be fined five times the amount of the contribution, in addition to any other penalties that may be assessed by the commission under this subpart. All penalties collected under this subsection shall be deposited in the Hawaii election campaign fund.

§11-D Publicly-funded qualifying contributions. (a) Each publicly-funded elections qualifying contribution shall meet the requirements of this section. To be counted as a publicly-funded elections qualifying contribution:

(1) Any contributor shall be a registered voter who resides within the candidate's district;

(2) Any contribution shall be:

(A) In the amount of $2;

(B) Made in cash, or by check or money order;

(C) Acknowledged by a receipt meeting the requirements in subsection (b); and

(D) Gathered by the candidates themselves, or by volunteers who receive no compensation.

(b) Any receipt for a publicly-funded elections qualifying contribution shall indicate, by the contributor's signature, that the contributor understands that the purpose of the contribution is to help the candidate qualify for public funding. The receipt shall include:

(1) The contributor's signature, printed name, home address, zip code, and telephone number;

(2) The name of the candidate on whose behalf the contribution is made; and

(3) An affirmation by the contributor that the contributor received nothing of value for the signature and the contribution.

The original receipt shall be given to the contributor. A copy shall be retained by the candidate and a copy shall be submitted to the commission according to a schedule and procedure to be determined by the commission. A contribution submitted as a publicly-funded elections qualifying contribution that does not include a signed and completed receipt shall not be counted as a publicly-funded elections qualifying contribution.

(c) Each contribution shall be deposited in an escrow account until the commission determines that the candidate has fulfilled the requirements for public funding and may be certified as a publicly-funded candidate.

§11-E Use of personal funds. Personal funds of the candidate seeking to become eligible as a publicly-funded candidate may be used as seed money up to the $5,000 limit as provided in section 11-C(a). Personal funds may not be used to meet the publicly-funded elections qualifying contribution requirement; provided that the candidate and any member of the candidate's immediate family who is a registered voter in the State may each make a $2 publicly-funded elections qualifying contribution.

§11-F Certification of qualification for public funds. (a) The commission shall determine whether a candidate is qualified for public funding for the primary and runoff elections. Candidates that qualify shall be certified by the commission as publicly-funded candidates within ten business days, as provided in subsection (b). Candidates who submit an affidavit from the office of the county clerk certifying that their qualifying contributors are registered voters from the district from which they are running shall be certified within three business days.

(b) The number of candidates certified by the commission shall be limited to three persons in each district, on a first-come, first-served basis. A candidate's application for certification shall be made on forms to be prescribed by the commission. The application shall be signed by the candidate and the candidate's campaign treasurer under penalty of perjury. The commission shall issue its decision to certify or deny certification within ten business days of receipt of a candidate's completed, initial application for certification.

(c) Certification may be revoked if a publicly-funded candidate violates the applicable requirements of this subpart. Upon revocation of certification, the candidate shall repay all public funds within ten business days.

§11-G Publicly-funded candidates; contributions and expenditures. A candidate who has been certified as a publicly-funded candidate and thereby found eligible for public funding shall comply with the following restrictions on contributions and expenditures:

(1) During the primary and runoff election campaign periods, a publicly-funded candidate shall not accept:

(A) Private contributions from any source, other than in kind contributions aggregating less than $100 from any one source; and

(B) Loans from any source;

(2) During the primary and runoff election campaign periods, a publicly-funded candidate shall not expend:

(A) Seed money contributions;

(B) Public funds for purposes other than those specified in this subpart;

(C) Public funds outside the applicable campaign period for which the funding is allocated; and

(D) Public funds in excess of the public funds allocated to the candidate, or incur an obligation or obligations to spend public funds in excess of this amount;

(3) Publicly-funded candidates may not accept any monetary or nonmonetary contributions from political parties; and

(4) Publicly-funded candidates, once elected, may not accept private contributions or contributions from political parties prior to January 1 in the year that the candidates next seek election.

§11-H Publicly-funded candidates; reporting. (a) Publicly-funded candidates shall furnish complete campaign records, including all records of nonmonetary contributions, seed money contributions, and publicly-funded elections qualifying contributions to the commission at such times as may be required by the commission. Publicly-funded candidates shall fully cooperate with any audit or examination by the commission.

(b) In addition to any other reports required by law, publicly-funded candidates shall maintain records of the following expenditures, which shall be reported to the commission as required by the commission:

(1) Expenditures involving a debt incurred, but not paid immediately, such as those for utility bills, which shall be reported at the time that the debt is incurred; and

(2) All petty cash expenditures.

§11-I Publicly-funded candidates; continuing obligation. A publicly-funded candidate who accepts any public funds during the primary election campaign period shall comply with all requirements applicable to a publicly-funded candidate under this subpart. This obligation shall continue through the runoff election campaign period regardless of whether that person continues to accept or maintains eligibility for public funds.

§11-J Public funding; disbursement. (a) A candidate certified as a publicly-funded candidate for the primary election, on the date that certification is issued by the commission, shall receive authorization to expend public funding for the primary election. A candidate certified as a publicly-funded candidate for a runoff election, on the date that certification is issued by the commission, shall receive authorization to expend public funding for the runoff election. The public funds shall be disbursed to the publicly-funded candidate by way of check that shall be dated as of and available on the date of the certification.

(b) A publicly-funded candidate in contested elections may expend an amount not exceeding $40,000 in public funds for the primary election, and an amount not exceeding $40,000 in public funds for the runoff election.

§11-K Public funding. The commission may expend up to $1,100,000 in funds from the Hawaii election campaign fund for the purposes of this subpart to distribute to candidates who qualify under this subpart.

§11-L Public funding; expenditure limits. A publicly-funded candidate shall not spend or incur an obligation to spend more than one hundred per cent of the public funds that have been allocated to the candidate. If a publicly-funded candidate spends or incurs an obligation to spend more than one hundred and three per cent of the public funds allocated, the candidate shall repay the Hawaii elections campaign fund an amount equal to three times the total excess expenditure.

§11-M Public funding; permitted uses. (a) The public funds received by a publicly-funded candidate shall be used only for the purpose of defraying expenses that are directly related to the candidate's campaign during the election campaign period for which the public funds were allocated, including:

(1) The purchase and development of campaign literature and campaign signs;

(2) The development and purchase of media space and time;

(3) Mailings;

(4) Telephones and telecommunications;

(5) General office supplies;

(6) The rental of campaign equipment;

(7) Utility costs associated with the campaign; and

(8) Campaign headquarters rental, salaries, and independent contractors, that in the aggregate do not exceed twenty per cent of the allocated public funds.

(b) Expenditures shall not be made:

(1) In violation of any law;

(2) To pay any personal, family, or business expenses, loans, or debts;

(3) For any noncampaign-related expenses, or for indirect campaign-related expenses; or

(4) To immediate family members.

§11-N Deposit of public funds. (a) All public funds received by publicly-funded candidates shall be deposited directly into a depository institution as provided under section 11-199(a).

(b) All reports required under this subpart for financial disclosure shall include the most recent bank statement from the financial depository.

§11-O Deposit of moneys into the Hawaii election campaign fund. The following moneys shall be deposited into the Hawaii election campaign fund:

(1) Excess seed money contributions as provided in this subpart;

(2) Publicly-funded elections qualifying contributions, including any excess publicly-funded elections qualifying contributions;

(3) Unspent public funds distributed to any publicly-funded candidate who does not remain a candidate until the election for which they were distributed, or such funds that remain unspent by a publicly-funded candidate following the date of the election for which they were distributed;

(4) Fines levied by the commission against candidates for violation of election laws; and

(5) Voluntary donations.

§11-P Rules. The commission shall adopt rules pursuant to chapter 91 as may be necessary to implement this subpart."

SECTION 3. Section 11-183, Hawaii Revised Statutes, is amended to read as follows:

"§11-183 Election expenses when no state elections. [All] Except for publicly-funded county council elections as provided under part XII, subpart   , all expenses for county elections which do not involve state offices shall be borne by the county and paid out of such appropriations as may be made by the council for election purposes."

SECTION 4. 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, county council member[,] in counties having a population equal to or less than five hundred thousand persons, and prosecuting attorney--$1.40; and

(5) For the offices of the board of education and all other offices--20 cents."

SECTION 5. Section 11-218, Hawaii Revised Statutes, is amended to read as follows:

"(b) For the office of state senator, state representative, county council member[,] in counties having a population equal to or less than five hundred thousand persons, 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 for each election as established for each office listed in this subsection pursuant to section 11-209."

SECTION 6. Section 11-219, Hawaii Revised Statutes, is amended to read as follows:

"§11-219 Qualifying campaign contributions; amounts. As a condition of receiving public funds for a primary, special primary, or general election, a candidate shall not be unopposed in any election for which public funds are sought, and 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 for the candidate's respective office for each election:

(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;

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

(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

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

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

(A) County of Honolulu--qualifying contributions that in the aggregate, exceed $5,000[;], except for those candidates who have qualified as fully publicly-funded candidates under part XII, subpart     ;

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

(C) County of Maui--qualifying contributions that in the aggregate, exceed $5,000; and

(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; and

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

SECTION 7. There is appropriated out of the Hawaii election campaign fund the sum of $150,000, or so much thereof as may be necessary for fiscal year 2002-2003, for the campaign spending commission to provide staff positions to support publicly-funded county council elections as follows:

(1) Two staff positions for computer analysis of campaign contributions; and

(2) One staff position for auditing and monitoring.

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

SECTION 8. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 9. 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 which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 11. This Act shall take effect on July 1, 2002.

INTRODUCED BY:

_____________________________