REPORT TITLE:
Judicial campaigns


DESCRIPTION:
Enacts a new part to chapter 11 entitled the judicial campaign
fairness act.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.1313       
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO JUDICIAL ELECTIONS.
 


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

 1      The legislature finds that should it adopt a law requiring
 
 2 judicial retention elections, those elections should be regulated
 
 3 to prevent fraud and to maintain the ethical standards judges
 
 4 must hold.  The purpose of this Act is to adopt a judicial
 
 5 campaign fairness law.
 
 6      SECTION 2.  Chapter 11, Hawaii Revised Statutes, is amended
 
 7 by adding a new part to be appropriately designated and to read
 
 8 as follows:
 
 9 
 
10              "PART  .  JUDICIAL CAMPAIGN FAIRNESS ACT
 
11 
 
12        -1  Registration.(a)  Each judicial candidate,
 
13 committee, or party shall file an organizational report as set
 
14 forth in section   -3   , as applicable, within ten days from the
 
15 date a candidate or candidate committee receives any
 
16 contributions or makes any expenditures, the aggregate amount of
 
17 which is more than $100, or, within ten days from the date a
 
18 noncandidate committee receives any contributions or makes any
 
19 expenditures, the aggregate amount of which is more than $1,000.
 

 
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 1      (b)  Committees that form within ten days of an election and
 
 2 expend in the aggregate more than $1,000 shall register and fully 
 
 3 disclose the expenditure by 4:30 p.m. the last calendar day prior
 
 4 to the expenditure.
 
 5      (c)  Each candidate shall re-register for the new election
 
 6 period.  A noncandidate committee need not re-register for a new
 
 7 election period.
 
 8        -2  Filing of reports, generally.(a)  All reports
 
 9 required to be filed under this subpart by a candidate or those
 
10 committees directly associated with the candidate's candidacy
 
11 shall be certified by the candidate.  Reports required to be
 
12 filed under this subpart by a party or committee that supports
 
13 more than one candidate shall be certified by a person authorized
 
14 to sign the reports.  All reports required to be filed under this
 
15 subpart shall be open for public inspection in the office of the
 
16 commission.
 
17      (b)  The original and one copy of all reports required under
 
18 this subpart shall be filed at the office of the commission.  In
 
19 the case of counties having less than two hundred thousand
 
20 voters, the filing shall be accomplished by filing an original
 
21 and two copies of the required report with either the commission
 
22 or the clerk of the county in which the candidate resides.  The
 
23 clerk shall then immediately mail the original and one copy of
 

 
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 1 the report to the commission.
 
 2      (c)  The commission or county clerk shall give each person
 
 3 filing a report a receipt stating the type of report filed and
 
 4 the date and time of filing.
 
 5      (d)  All reports filed with the county clerk's office shall
 
 6 be preserved by that office for ten years.
 
 7      (e)  All reports required to be filed under this subpart
 
 8 shall at all times be available to the general public.
 
 9      (f)  For purposes of this subpart, whenever a report is
 
10 required to be filed with the commission, "filed" means received
 
11 in the office of the commission or county clerk, whichever is
 
12 applicable, by the date and time specified for the filing of the
 
13 report; except that a candidate or the committee of a candidate
 
14 who is seeking election to the judiciary shall file by electronic
 
15 means in the manner prescribed by the commission. 
 
16        -3  Organizational report, candidate's committee.(a)
 
17 The organizational report shall include:
 
18      (1)  The name and address of the candidate or individual,
 
19           committee, or party filing the report;
 
20      (2)  The name, address, office sought of each candidate or
 
21           individual whom the committee or party is supporting;
 
22      (3)  The names and addresses of the campaign treasurer and
 
23           deputies together with the treasurer's written
 

 
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 1           acceptance of appointment;
 
 2      (4)  The names and addresses of the campaign chairperson and
 
 3           deputy campaign chairperson together with the campaign
 
 4           chairperson's written acceptance of appointment;
 
 5      (5)  A list of all banks, safety deposit boxes, or other
 
 6           depositories used with each applicable account number;
 
 7      (6)  The amount, name, and address, of each donor who has
 
 8           contributed an aggregate amount of more than $100 since
 
 9           the last election applicable to the office being sought
 
10           or to the ballot issue or question and the amount and
 
11           date of deposit of each such contribution; and
 
12      (7)  In the case of a report by a committee or party
 
13           supporting or opposing a ballot question or issue, all
 
14           of the information described in paragraphs (2) to (6)
 
15           and a description of the question or issue.
 
16      (b)  Any change in information submitted in the
 
17 organizational report with the exception of subsection (a)(6)
 
18 shall be reported no later than 4:30 p.m. on the tenth calendar
 
19 day after such change is brought to the attention of the
 
20 candidate, committee, party, or campaign treasurer. 
 
21      -4 Designated central committee.  Each candidate for a
 
22 who is supported by more than one committee shall designate a
 
23 central committee which shall be responsible for aggregating the
 

 
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                                     H.B. NO.1313       
                                                        
                                                        

 
 1 total contributions and expenditures of all committees directly
 
 2 associated with the candidate and for filing composite reports
 
 3 indicating this information pursuant to sections   -17  and   -18
 
 4 . 
 
 5      -5 Campaign treasurer.(a)  Every committee, party, and
 
 6 candidate shall appoint a campaign treasurer on or before the day
 
 7 for filing an organizational report.  Up to five deputy campaign
 
 8 treasurers may be appointed.  A candidate may appoint oneself as
 
 9 campaign treasurer.
 
10     (b)  A campaign treasurer may be removed at any time.  In
 
11 case of death, resignation, or removal of the campaign treasurer,
 
12 the committee, party, or candidate shall promptly appoint a
 
13 successor.  During the period the office of campaign treasurer is
 
14 vacant, the candidate, committee chairperson, or party
 
15 chairperson, whichever is applicable, shall serve as campaign
 
16 treasurer.
 
17      (c)  Only the campaign treasurer and deputy campaign
 
18 treasurers shall be authorized to receive contributions or make
 
19 expenditures on behalf of the appointing candidate, committee, or
 
20 party.
 
21      (d)  A candidate may appoint on a fee or voluntary basis a
 
22 person other than an officer or treasurer to specifically prepare
 
23 and file reports with the campaign spending commission. 
 

 
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 1      -6 Campaign contributions, generally.(a)  All monetary
 
 2 contributions shall be promptly deposited in a depository
 
 3 institution, as defined by section 412:1-109, duly authorized to
 
 4 do business in the State, such as a bank, savings bank, savings
 
 5 and loan association, depository financial services loan company,
 
 6 credit union, intra-Pacific bank, or similar financial
 
 7 institution, the deposits or accounts of which are insured by the
 
 8 Federal Deposit Insurance Corporation, or the national credit
 
 9 union administration in the name of the candidate, committee, or
 
10 party, whichever is applicable.
 
11      (b)  Each candidate, committee, or party shall establish and
 
12 maintain an itemized record showing the amount of each monetary
 
13 contribution, the description and value of each nonmonetary
 
14 contribution, and the name and address of each donor making a
 
15 contribution of more than $25 in value.
 
16      (c)  Each candidate and campaign treasurer shall report the
 
17 amount and date of deposit of each contribution and the name and
 
18 address of each donor who makes a contribution whose aggregate
 
19 value is more than $100.
 
20      (d)  No candidate, committee, or party shall accept a
 
21 contribution of more than $100 in cash from a single person
 
22 without issuing a receipt to the donor and keeping a record of
 
23 the transaction.
 

 
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 1      (e)  Each committee and party shall disclose the original
 
 2 source of all earmarked funds, the ultimate recipient of the
 
 3 earmarked funds, and the fact that the funds are earmarked. 
 
 4      -7 Campaign contributions; restrictions against transfer.
 
 5 (a)  A candidate, campaign treasurer, or candidate's committee
 
 6 shall not receive any contributions or receive or make any
 
 7 transfer of money or anything of value:
 
 8      (1)  For any purpose other than that directly related:
 
 9           (A)  In the case of the candidate, to the candidate's
 
10                own campaign; or
 
11           (B)  In the case of a campaign treasurer or candidate's
 
12                committee, to the campaign of the candidate,
 
13                question, or issue with which they are directly
 
14                associated; or
 
15      (2)  To support the campaigns of candidates other than the
 
16           candidate for whom the funds were collected or with
 
17           whom the campaign treasurer or candidate's committee is
 
18           directly associated; or
 
19      (3)  To campaign against any other candidate not directly
 
20           opposing the candidate for whom the funds were
 
21           collected or with whom the campaign treasurer or
 
22           candidate's committee is directly associated.
 
23      (b)  This section shall not be construed to prohibit a party
 

 
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 1 from supporting more than one candidate.
 
 2      (c)  This section shall not be construed to prohibit a
 
 3 candidate from making contributions to the candidate's party so
 
 4 long as that contribution is not earmarked for another candidate. 
 
 5      -8 Anonymous contributions; unlawful.(a)  No person
 
 6 shall make an anonymous contribution of the person's own money or
 
 7 property, or money of another person, to any candidate, party, or
 
 8 committee in connection with a nomination for election, or
 
 9 election.  No candidate, party, or committee shall knowingly
 
10 receive, accept, or retain an anonymous contribution, or enter or
 
11 cause such contribution to be entered in its accounts as an
 
12 anonymous contribution or in a name other than the true name of
 
13 the person who actually furnished the contribution.
 
14      (b)  No anonymous contribution received by a candidate,
 
15 party, or committee shall be used or expended, but shall be
 
16 returned to the donor.  If the donor cannot be identified, the
 
17 contribution shall escheat to the Hawaii election campaign fund.
 
18      (c)  This section shall not apply to amounts that aggregate
 
19 less than $500 when obtained through multiple contributions made
 
20 by ten or more persons at the same political function.  Each such
 
21 aggregate contribution shall be reported accompanied by a
 
22 description of the means, method, place, and date of receipt. 
 
23      -9 False name.  No person shall make a contribution of
 

 
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 1 the person's own money or property, or money or property of
 
 2 another person to any candidate, party, or committee in
 
 3 connection with a nomination for election, or election, in any
 
 4 name other than the true name of the person who owns the money or
 
 5 who supplied the money or property.
 
 6      All contributions made in the name of a person other than
 
 7 the true or established name of the actual owner of the money or
 
 8 property shall escheat to the Hawaii election campaign fund. 
 
 9      -10  Campaign contributions; limits as to persons.(a)
 
10 No person or any other entity shall make contributions to:
 
11      (1)  A candidate seeking election or to the candidate's
 
12           committee in an aggregate amount greater than $2,000
 
13           during an election period; and
 
14      This limit shall not apply to a loan made to a candidate by
 
15 a financial institution in the ordinary course of business.
 
16      (b)  No person or any other entity shall make contributions
 
17 to a noncandidate committee, in an aggregate amount greater than
 
18 $1,000 in an election; except that in the case of a corporation
 
19 or company using funds from its own treasury, there shall be no
 
20 limit on contributions or expenditures to the corporation or
 
21 company noncandidate committee.
 
22      (c)  A candidate in making a contribution to the candidate's
 
23 campaign shall be exempt from the above limitation, but shall be
 

 
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                                     H.B. NO.1313       
                                                        
                                                        

 
 1 limited in the aggregate to $50,000 in any election period.  The
 
 2 aggregate amount of $50,000 shall include any loans made for
 
 3 campaign purposes to the candidate from the candidate's immediate
 
 4 family.
 
 5      (d)  A contribution by a dependent minor shall be reported
 
 6 in the name of the minor but shall be counted against the
 
 7 contribution of the minor's parent or guardian.
 
 8      (e)  Any candidate or candidate's committee who receives in
 
 9 the aggregate more than the applicable limits set forth in this
 
10 section in any election from a person, shall be required to
 
11 transfer an amount equal to any excess over the limits
 
12 established in this section to the Hawaii election campaign fund
 
13 within thirty days of receipt by a candidate or candidate's
 
14 committee, and in any event, no later than thirty days upon the
 
15 receipt by a candidate or candidate's committee of notification
 
16 from the commission.  A candidate or candidate's committee who
 
17 complies with this subsection prior to the initiation of
 
18 prosecution shall not be subject to any penalty under section
 
19 -32.
 
20      (f)  All payments made by a person whose contributions or
 
21 expenditure activity is financed, maintained, or controlled by
 
22 any corporation, labor organization, association, political
 
23 party, or any other person or committee, including any parent,
 

 
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 1 subsidiary, branch, division, department, or local unit of the
 
 2 corporation, labor organization, association, political party, or
 
 3 any other person, or by any group of those persons shall be
 
 4 considered to be made by a single person.
 
 5      (g)  A contribution made by two or more corporations shall
 
 6 be treated as one person when such corporations:
 
 7      (1)  Share the majority of members of their boards of
 
 8           directors;
 
 9      (2)  Share two or more corporate officers;
 
10      (3)  Are owned or controlled by the same majority
 
11           shareholder or shareholders; or
 
12      (4)  Are in a parent-subsidiary relationship.
 
13      (h)  An individual and any general partnership in which the
 
14 individual is a partner, or an individual and any corporation in
 
15 which the individual owns a controlling interest, shall be
 
16 treated as one person.
 
17      (i)  No committee which supports or opposes a candidate for
 
18 public office shall have as officers individuals who serve as
 
19 officers on any other committee which supports or opposes the
 
20 same candidate.  No such committee shall act in concert with, or
 
21 solicit or make contributions on behalf of, any other committee.
 
22      (j)  No contributions may be made to a noncandidate
 
23 committee from a corporation or other organization unless the
 
24 noncandidate committee has been in existence continuously, as
 

 
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 1 shown on the records of the campaign spending commission, for at
 
 2 least twelve months prior to the next primary election.
 
 3      (k)  No contributions or expenditures shall be made to or on
 
 4 behalf of a candidate or committee by a foreign corporation,
 
 5 including a domestic subsidiary of a foreign corporation, a
 
 6 domestic corporation that is owned by a foreign national, or a
 
 7 local subsidiary where administrative control is retained by the
 
 8 foreign corporation, and in the same manner prohibited under 2
 
 9 United States Code section 441e and 11 Code of Federal
 
10 Regulations 110.4(a) and 110.9(a), as amended.  No foreign-owned
 
11 domestic corporation shall make contributions where:
 
12      (1)  Foreign national individuals participate in election-
 
13           related activities such as decisions concerning the
 
14           making of contributions or the administration of a
 
15           political committee; or
 
16      (2)  The contribution funds are not domestically-derived.
 
17      (l)  No person or any other entity shall make contributions
 
18 to a political party in an aggregate amount greater than $50,000
 
19 in any election period. 
 
20      -11  Campaign contributions; limits as to political
 
21 parties.(a)  No political party shall make contributions to a
 
22 candidate in any calendar year in an aggregate amount greater
 
23 than $20,000 for each respective office:
 

 
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 1      (b)  For the purposes of this section, a contribution to a
 
 2 political party which is earmarked for a particular candidate or
 
 3 candidates shall be promptly distributed to such candidate and
 
 4 shall be reported by the candidate upon receipt as an individual
 
 5 contribution.  Earmarked funds contributed pursuant to this
 
 6 section shall be counted:
 
 7      (1)  Toward the contribution limit of the political party
 
 8           donating such funds to a candidate or candidates; and
 
 9      (2)  Toward the contribution limit of the person or persons
 
10           contributing such earmarked funds. 
 
11      -12  Campaign contributions; loans.  (a)  Any loan to a
 
12 candidate or candidate's committee in excess of $100 shall be
 
13 documented and disclosed as to lender including the lender's
 
14 name, address, employer, and occupation and purpose of the loan
 
15 in the subsequent report to the commission.  A copy of the
 
16 executed loan document shall accompany the report.  The document
 
17 shall contain the relevant repayment obligations under this
 
18 section.  Failure to document the loan or to disclose the loan to
 
19 the commission shall cause the loan to be treated as a campaign
 
20 contribution, subject to all relevant provisions of this chapter.
 
21      (b)  A candidate or candidate's committee may receive and
 
22 accept loans in an aggregate amount not to exceed $10,000 during
 
23 an election period, provided that if the $10,000 limit is
 

 
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                                     H.B. NO.1313       
                                                        
                                                        

 
 1 reached, the candidate or candidate's committee shall be
 
 2 prohibited from receiving or accepting any other loans until the
 
 3 $10,000 is repaid in full by the candidate or candidate's
 
 4 committee.
 
 5      (c)  If any loan made to a candidate is not repaid within
 
 6 one year of the date that the loan is made, the candidate and
 
 7 candidate's committee shall be prohibited from accepting any
 
 8 other loans, and all subsequent contributions received and any
 
 9 surplus retained shall only be expended toward the repayment of
 
10 the outstanding loan, until the loan is repaid in full by the
 
11 candidate or candidates committee.
 
12      (d)  No loan may be accepted or made by noncandidate
 
13 committees.
 
14      (e)  Any loan by a financial institution regulated by the
 
15 State or a federally chartered depository institution and made in
 
16 accordance with applicable law in the ordinary course of
 
17 business, or a loan by a candidate of the candidate's own funds,
 
18 or a loan from immediate family members of a candidate using
 
19 their own funds to the candidate's committee shall not be deemed
 
20 a contribution and not subject to the contribution limits
 
21 provided in section   -10  or the loan limit and repayment
 
22 provisions of subsection (b) and (c); provided that loans from
 
23 the immediate family members of the candidate shall remain
 

 
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                                     H.B. NO.1313       
                                                        
                                                        

 
 1 subject to the provisions in section   -10(c). 
 
 2        -13  Campaign contributions; restrictions as to surplus.
 
 3 (a)  Every candidate in an election who has voluntarily agreed to
 
 4 abide by spending limits and who subsequently receives campaign
 
 5 contributions in an amount greater than the expenditure limit set
 
 6 for the candidate's respective office shall reserve use of these
 
 7 contributions until after an election.
 
 8      (b)  Campaign contributions shall not be used for personal
 
 9 expenses or to qualify for public funding in any subsequent
 
10 election, and shall not be transferred to another candidate as
 
11 prohibited in section   -7.
 
12      Where such contributions are used for the purchase or lease
 
13 of consumer goods, vehicles, equipment, and services that provide
 
14 a mixed benefit to the candidate, they shall be reported to the
 
15 commission pursuant to sections   -17 and   -18.
 
16      (c)  Such contributions may be used after a general or
 
17 special election for any fundraising activity, for any other
 
18 politically related activity sponsored by the candidate, for any
 
19 ordinary and necessary expenses incurred in connection with the
 
20 candidate's duties as a holder of an elected state or county
 
21 office, or for any contribution to any community service,
 
22 educational, youth, recreational, charitable, scientific, or
 
23 literary organization, or any other organization which the
 

 
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                                     H.B. NO.1313       
                                                        
                                                        

 
 1 commission, by rules adopted pursuant to chapter 91, deems
 
 2 appropriate.
 
 3      (d)  All contributions collected pursuant to this section
 
 4 shall be reportable under section   -18. 
 
 5        -14  Other contributions and expenditures.(a)
 
 6 Expenditures made by any person or political party for the
 
 7 benefit of a candidate in cooperation, consultation, or concert
 
 8 with, or at the request or suggestion of, a candidate, a
 
 9 candidate's political committee, or their agents, shall be
 
10 considered to be a contribution to such candidate.
 
11      The financing by any person or political party of the
 
12 dissemination, distribution, or republication, in whole or in
 
13 part, of any broadcast or any written or other campaign materials
 
14 prepared by the candidate, the candidate's political committee or
 
15 committees, or agents shall be considered to be a contribution to
 
16 such candidate.
 
17      This subsection shall not apply to candidates for governor
 
18 or lieutenant governor supporting a co-candidate in the general
 
19 election.
 
20      (b)  No funds shall be withdrawn or paid from a campaign
 
21 depository except upon the written authorization of the campaign
 
22 treasurer.
 
23      (c)  No expenditure for a candidate shall be made or
 

 
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                                     H.B. NO.1313       
                                                        
                                                        

 
 1 incurred by any committee controlled by a candidate without
 
 2 specific written authorization of the candidate or the
 
 3 candidate's authorized representative.  Every expenditure so
 
 4 authorized and made or incurred shall be attributed to the
 
 5 candidate with whom the committee is directly associated for the
 
 6 purpose of imposing the expenditure limitations set forth in
 
 7 section   -16.
 
 8      (d)  For the purposes of this subpart, an expenditure shall
 
 9 be deemed to be made or incurred when the services are rendered
 
10 or the product is delivered.  Services rendered or products
 
11 delivered for use during a reporting period covered by this
 
12 subpart shall be deemed delivered or rendered during the period
 
13 or periods of use; provided that these expenditures shall be
 
14 reasonably allocated between periods in accordance with the time
 
15 the services or products are actually used. 
 
16      -15  Voluntary campaign expenditure limitation.(a)  Any
 
17 candidate may voluntarily agree to limit the candidate's campaign
 
18 expenditures and those of the candidate's committee or committees
 
19 and the candidate's party in the candidate's behalf by filing an
 
20 affidavit with the campaign spending commission; provided that a
 
21 candidate may withdraw the candidate's affidavit no later than
 
22 thirty days prior to a primary election.  Any candidate
 
23 withdrawing the candidate's affidavit shall notify all
 

 
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                                     H.B. NO.1313       
                                                        
                                                        

 
 1 contributors during the election period, in writing, that
 
 2 contributions are not tax deductible.
 
 3      (b)  The affidavit shall state that the candidate knows the
 
 4 voluntary campaign expenditure limitations as set out in section
 
 5 11- and that the candidate is voluntarily agreeing to limit the
 
 6 candidate's expenditures and those made on the candidate's behalf
 
 7 by the amount set by law.  The affidavit shall be subscribed to
 
 8 by the candidate and notarized.
 
 9      (c)  Affidavits in compliance with this section shall be
 
10 filed by January 31 of the year of any election, or on the date
 
11 set for filing the candidate's organizational report as provided
 
12 in section 11-   , whichever is later. 
 
13      -16  Campaign expenditures; limits as to amounts.(a)
 
14 From January 1 of the year of any election, the total
 
15 expenditures for candidates who voluntarily agree to limit their
 
16 campaign expenditures for each election, inclusive of all
 
17 expenditures made or authorized by the candidate alone and all
 
18 campaign treasurers and committees in the candidate's behalf,
 
19 shall not exceed $1.40 multiplied by the number of voters in the
 
20 last preceding general election registered to vote in each
 
21 respective voting district.
 
22      (b)  A candidate or committee who has voluntarily agreed to
 
23 the expenditure limits in this section and who exceeds their
 

 
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                                     H.B. NO.1313       
                                                        
                                                        

 
 1 respective expenditure limits shall pay the full filing fee and
 
 2 shall notify all opponents, the chief election officer, all
 
 3 contributors, and the commission by telephone and in writing the
 
 4 day the expenditure limits are exceeded.  Notification to
 
 5 contributors shall include an announcement that tax deductions
 
 6 based on their contributions are no longer available. 
 
 7      -17  Preliminary reports.(a)  Each candidate, authorized
 
 8 person in the case of a party, or campaign treasurer in the case
 
 9 of a candidate committee, shall file a preliminary report with
 
10 the commission or appropriate county clerk's office, on forms
 
11 provided by the commission no later than 4:30 p.m. on the twenty-
 
12 fifth and tenth calendar day prior to each election.  Each report
 
13 shall be certified pursuant to section   -2 and shall contain the
 
14 following information which shall be current through the fifth
 
15 calendar day prior to the filing of a preliminary report:
 
16      (1)  The aggregate sum of all contributions and other
 
17           campaign receipts received;
 
18      (2)  The amount and date of deposit of the contribution and
 
19           the name and address of each donor who contributes an
 
20           aggregate of more than $100 during an election period,
 
21           which has not previously been reported;
 
22      (3)  The amount and date of deposit of each contribution and
 
23           the name, address, employer, and occupation of each
 

 
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                                     H.B. NO.1313       
                                                        
                                                        

 
 1           donor who contributes an aggregate of $1,000 or more
 
 2           during an election period, which has not previously
 
 3           been reported;
 
 4      (4)  All expenditures made, incurred, or authorized by or
 
 5           for a candidate, including the name and address of each
 
 6           payee and the amount, date, and purpose of each
 
 7           expenditure; and
 
 8      (5)  A current statement of the balance on hand or deficit.
 
 9      (b)  Each noncandidate committee shall file a preliminary
 
10 report with the commission, on forms provided by the commission,
 
11 no later than 4:30 p.m. on the tenth calendar day prior to each
 
12 election.  Each report shall be certified pursuant to section
 
13 -2 and shall contain the following information, which shall be
 
14 current through the fifth calendar day prior to the filing of a
 
15 preliminary report:
 
16      (1)  The aggregate sum of all contributions and other
 
17           campaign receipts received;
 
18      (2)  The amount and date of deposit of the contribution and
 
19           the name, address, employer, and occupation of each
 
20           donor who contributes an aggregate of $100 or more
 
21           during an election period, which has not previously
 
22           been reported;
 
23      (3)  The amount and date of each disbursement or
 

 
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                                     H.B. NO.1313       
                                                        
                                                        

 
 1           contribution made to a candidate, party, organization,
 
 2           or committee, including the name and address of each
 
 3           payee, which has not previously been reported;
 
 4      (4)  The amount and date of each expenditure made or
 
 5           incurred by the committee for or against any candidate,
 
 6           ballot issue, or on behalf of another committee, which
 
 7           has not previously been reported; and
 
 8      (5)  A current statement of the balance on hand.
 
 9      (c)  A candidate, party, or committee whose aggregate
 
10 contributions or expenditures for the reporting period total
 
11 $2,000 or less may file a short form report with the commission
 
12 or appropriate county clerk's office in lieu of the reports
 
13 required by this section and section   -18.
 
14      (d)  Notwithstanding this section and section   -18, a
 
15 candidate, party, or committee whose aggregate contributions or
 
16 expenditures for the election period total $1,000 or less need
 
17 not file a preliminary and final primary report, a preliminary
 
18 and final general report, or a special election report, but shall
 
19 file only a final election period report. 
 
20      -18  Final and supplemental reports.(a)  Primary and
 
21 initial special election.  Each candidate whether or not
 
22 successful in a primary or initial special election, authorized
 
23 person in the case of a party, or campaign treasurer in the case
 

 
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                                     H.B. NO.1313       
                                                        
                                                        

 
 1 of a committee, shall file a final primary report certified
 
 2 pursuant to section   -2 with the commission on forms provided by
 
 3 the commission no later than 4:30 p.m. on the twentieth calendar
 
 4 day after an election.  The report shall include the following
 
 5 information which shall be current through the day of the
 
 6 election:
 
 7      (1)  A statement of the total contributions and campaign
 
 8           receipts received;
 
 9      (2)  The amount and date of deposit of each contribution and
 
10           the name and address of each donor who contributes an
 
11           aggregate of more than $100 during an election period,
 
12           which has not previously been reported;
 
13      (3)  The amount and date of deposit of each contribution and
 
14           the name, address, employer, and occupation of each
 
15           donor who contributes an aggregate of $1,000 or more
 
16           during an election period, which has not previously
 
17           been reported;
 
18      (4)  A statement of all expenditures made, incurred, or
 
19           authorized by or for a candidate including the name and
 
20           address of each payee and the amount, date, and purpose
 
21           of each expenditure; and
 
22      (5)  The cash balance and a statement of surplus or deficit.
 
23      (b)  Each noncandidate committee shall file a final primary
 

 
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                                     H.B. NO.1313       
                                                        
                                                        

 
 1 report, certified pursuant to section   -2, with the commission
 
 2 on forms provided by the commission no later than 4:30 p.m. on
 
 3 the twentieth calendar day after a primary election.  The report
 
 4 shall include the following information, which shall be current
 
 5 through the day of the primary election:
 
 6      (1)  A statement of the total contributions and campaign
 
 7           receipts received;
 
 8      (2)  The amount and date of deposit of each contribution and
 
 9           the name, address, employer, and occupation of each
 
10           donor who contributes an aggregate of more than $100
 
11           during an election, which has not previously been
 
12           reported;
 
13      (3)  The amount and date of each disbursement or
 
14           contribution made to a candidate, party, organization,
 
15           or committee, including the name and address of each
 
16           payee, which has not previously been reported;
 
17      (4)  The amount and date of each expenditure made or
 
18           incurred by the committee for or against any candidate,
 
19           ballot issue, or on behalf of another committee, which
 
20           has not previously been reported; and
 
21      (5)  A current statement of the balance on hand.
 
22      (c)  Each candidate, authorized person in the case of a
 
23 party, or campaign treasurer in the case of a committee shall
 

 
Page 24                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1 file a final election period general report with the commission
 
 2 on forms provided by the commission no later than 4:30 p.m. on
 
 3 the thirtieth calendar day after a general, special general, or
 
 4 special election.  The final election period report shall be
 
 5 certified pursuant to section   -2, shall report all items
 
 6 prescribed in subsection (a) or (b) for noncandidate committees,
 
 7 and shall be current through the day of the general election.  A
 
 8 candidate who is unsuccessful in a primary or special primary
 
 9 election shall file a final election period report.
 
10      (d)  Termination.  A candidate, party, or committee may
 
11 terminate registration with the commission with no surplus or no
 
12 deficit.  A termination report approved by the commission shall
 
13 include information on the disposition of any funds, which has
 
14 not previously been reported.
 
15      (e)  Deficit.  In the event of a deficit the candidate,
 
16 authorized person in the case of a party, or campaign treasurer
 
17 in the case of a committee shall, every six months until the
 
18 deficit is eliminated, file supplemental reports covering all
 
19 items prescribed in subsection (a) or subsection (b) in the case
 
20 of noncandidate committees.  The first report shall be due no
 
21 later than 4:30 p.m. on the thirtieth day after the last day of
 
22 the election year.
 
23      (f)  Surplus.  In the event of a surplus the candidate,
 

 
Page 25                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1 authorized person in the case of a party, or campaign treasurer
 
 2 in the case of a committee, shall:
 
 3      (1)  Maintain the cash surplus in a financial depository;
 
 4           and
 
 5      (2)  Every six months, until the candidate files to be on
 
 6           the ballot with the state office of elections, or in
 
 7           the case of a party or committee until they participate
 
 8           in an election again, file supplemental reports
 
 9           detailing all items prescribed in subsection (a) or in
 
10           the case of a noncandidate committee until they
 
11           participate in an election again, or file supplemental
 
12           reports detailing all items prescribed in subsection
 
13           (b).
 
14      The first report shall be due not later than 4:30 p.m. on
 
15 the thirtieth calendar day after the last day of the election
 
16 year.
 
17      (g)  Short form reporting.  A candidate, party, or committee
 
18 who receives no contributions, makes no expenditures, and has a
 
19 deficit or surplus of $2,000 or less in any prescribed reporting
 
20 period shall nevertheless file preliminary, final, and
 
21 supplemental reports on the respective dates pursuant to this
 
22 subpart.  The reports may be filed on a short form as provided by
 
23 the commission.
 

 
Page 26                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1      (h)  All supplemental reports required by this section shall
 
 2 be filed until a candidate files to be on the ballot with the
 
 3 state elections office.  Each party or noncandidate committee
 
 4 shall file a supplemental report for the respective reporting
 
 5 period during a nonelection year.  In an election year, each
 
 6 party and noncandidate committee shall file reports as prescribed
 
 7 in this section and section   -17 for the election. 
 
 8      -19  Disposition of funds.(a)  All candidates who
 
 9 withdraw or cease to be candidates, or committees directly
 
10 associated with such candidates, individuals who receive
 
11 contributions but fail to file for nomination, or committees or
 
12 parties which discontinue their activities covered in this
 
13 subpart, shall return all residual private contributions to the
 
14 donors of such contributions if their identities are known,
 
15 provided that if the identity of any donor is not known, or the
 
16 donor cannot be found, such contribution shall escheat to the
 
17 Hawaii election campaign fund.
 
18      (b)  All residual public funds shall be returned to the
 
19 Hawaii election campaign fund.
 
20      (c)  Upon disposition of all residual funds, the candidate
 
21 or campaign treasurer shall file a report with the commission,
 
22 reporting the amounts distributed under this section and the
 
23 manner of disposition.
 

 
Page 27                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1      (d)  This section shall not apply to:
 
 2      (1)  Candidates who failed to be nominated or elected yet
 
 3           who become a candidate for nomination or election to
 
 4           office within four years thereafter;
 
 5      (3)  Elected judges who resign their office before the end
 
 6           of their term yet who file to become a candidate for
 
 7           reelection within four years after the end of the term
 
 8           from which they resigned; or
 
 9      (4)  Elected judges who do not seek reelection yet who file
 
10           to become a candidate for election within four years
 
11           after the end of the term from which they did not seek
 
12           reelection. 
 
13      -20  Advertising.(a)  To the extent authorized by law,
 
14 all advertisements authorized by a candidate or a candidate's
 
15 committee shall contain the name and address of the candidate,
 
16 committee, or party paying for the advertisement.  If an
 
17 advertisement is not authorized by a candidate or a candidate's
 
18 committee, the advertisement shall contain the name and address
 
19 of the person paying for the advertisement.
 
20      (b)  In addition to subsection (a), and to the extent
 
21 authorized by law, no person shall cause or submit any
 
22 advertisement in support of a candidate or against a candidate's
 
23 opponent, to be published, broadcast, televised, or otherwise
 

 
Page 28                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1 circulated and distributed except under the following conditions:
 
 2      (1)  The advertisement shall contain a notice in a prominent
 
 3           location that the literature or advertisement is
 
 4           published, broadcast, televised, or circulated with the
 
 5           approval and authority of the candidate, provided that
 
 6           in the event that the literature or advertisement is
 
 7           paid for by a candidate or committee directly
 
 8           associated with a candidate, the notice of approval and
 
 9           authority need not be included; or
 
10      (2)  The advertisement shall contain a notice in a prominent
 
11           location that the literature or advertisement is
 
12           published, broadcast, televised, or circulated without
 
13           the approval and authority of the candidate.
 
14      (c)  The penalty for violating this section shall be a fine
 
15 not to exceed $25 for each advertisement that lacks the required
 
16 disclaimer and no more than $5,000 aggregate. 
 
17      -21  Complaints, investigation, and notice; determination.
 
18 (a)  Complaints of violations of this subpart against any person
 
19 shall be filed with the commission.  The complaint shall be in
 
20 writing and shall be signed under oath by the complainant.
 
21 Complaints initiated by the commission shall be in writing and
 
22 signed by the executive director.
 
23      (b)  The commission shall give notice of receipt of the
 

 
Page 29                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1 complaint together with a copy of the complaint to the person
 
 2 cited and shall afford the person an opportunity to explain or
 
 3 otherwise respond to the complaint at a meeting promptly noticed
 
 4 by the commission and conducted under chapter 92.  The commission
 
 5 shall promptly determine, without regard to chapter 91, to
 
 6 summarily dismiss the complaint, cause further investigation,
 
 7 make a preliminary determination, or refer the complaint to an
 
 8 appropriate prosecuting authority for prosecution under section
 
 9 -33.
 
10      (c)  Upon hearing the response of the person cited, if the
 
11 person elects to respond to the complaint, and upon completion of
 
12 any investigation, the commission may make a prompt preliminary
 
13 determination as to whether probable cause exists that a
 
14 violation of this subpart has been committed.  In lieu of an
 
15 administrative determination that a violation of this section has
 
16 been committed, the commission may refer the complaint to the
 
17 attorney general or county prosecutor pursuant to section   -33
 
18 at any time it believes that the person cited may have
 
19 intentionally, knowingly, or recklessly committed a violation.
 
20      (d)  If the commission makes a preliminary determination
 
21 that there is probable cause to believe that a violation of this
 
22 subpart has been committed, its preliminary determination with
 
23 findings of fact and conclusions of law shall be served upon the
 

 
Page 30                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1 person cited by certified mail.  The person shall be afforded an
 
 2 opportunity to contest the commission's preliminary determination
 
 3 of probable cause by making a request for a contested hearing
 
 4 under chapter 91 within twenty days of receipt of the preliminary
 
 5 determination.  Failure to request a contested hearing will
 
 6 result in the commission's preliminary determination being deemed
 
 7 a final determination of violation.
 
 8      (1)  Any person who appears before the commission shall have
 
 9           all of the rights, privileges, and responsibilities of
 
10           a witness appearing before the courts of this State.
 
11           All witnesses summoned before the commission shall
 
12           receive reimbursements as paid in like circumstances in
 
13           the courts of this State.  Any person whose name is
 
14           mentioned during a proceeding of the commission and who
 
15           may be adversely affected thereby, may appear
 
16           personally before the commission on the person's own
 
17           behalf or file a written statement for incorporation
 
18           into the record of the proceeding.
 
19      (2)  The commission shall cause a record to be made of all
 
20           proceedings pursuant to this subsection.  Any hearing
 
21           conducted by the commission to contest the preliminary
 
22           determination of probable cause shall be conducted
 
23           pursuant to chapter 91 and any rules adopted by the
 

 
Page 31                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1           commission.  All contested hearings shall be heard
 
 2           before the commission or a duly designated hearings
 
 3           officer.
 
 4      (3)  All parties shall be afforded full opportunity to
 
 5           present evidence and argument on all issues involved.
 
 6           The commission or hearings officer, if there is no
 
 7           dispute as to the facts involved in a particular
 
 8           matter, may permit the parties to proceed by memoranda
 
 9           of law in lieu of a hearing unless the procedure would
 
10           unduly burden any party or is otherwise not conducive
 
11           to the ends of justice.  The commission shall not be
 
12           bound by strict rules of evidence when conducting a
 
13           hearing to determine whether a violation of this
 
14           subpart has occurred, and the degree or quantum of
 
15           proof required shall be a preponderance of the
 
16           evidence.
 
17      (4)  A hearings officer shall render a recommended decision
 
18           for the commission's consideration and any party
 
19           adversely affected by the decision may file written
 
20           exceptions with the commission within fifteen days
 
21           after receipt of a copy of the decision by certified
 
22           mail.
 
23      (5)  The commission, as expeditiously as possible, after the
 

 
Page 32                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1           close of the hearing, shall issue its final
 
 2           determination of violation together with separate
 
 3           findings of fact and conclusions of law regarding
 
 4           whether a violation of this subpart has been committed.
 
 5      (e)  In the event the commission makes a final determination
 
 6 that a violation of this subpart does not exist, the complaint
 
 7 shall be dismissed.
 
 8      (f)  If the commission renders a final determination of
 
 9 violation, its written decision with findings of fact and
 
10 conclusions of law may also provide, without limitation the
 
11 following orders:
 
12      (1)  The return of any contribution;
 
13      (2)  The reimbursement of any unauthorized expenditure;
 
14      (3)  The payment of any administrative fine payable to the
 
15           Hawaii election campaign fund;
 
16      (4)  Cease and desist violation of this subpart; or
 
17      (5)  File any report, statement, or other information as
 
18           required by this subpart.
 
19      (g)  The commission may waive further proceedings because of
 
20 action the person cited or respondent takes to remedy or correct
 
21 the alleged violation, including the payment of any
 
22 administrative fine.  The commission shall make the remedial or
 
23 corrective action taken by the respondent, the commission's
 

 
Page 33                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1 decision in light of the action to waive further proceedings, and
 
 2 the commission's justification for its decision, a part of the
 
 3 public record. 
 
 4      -22  Candidate public funding; amounts available.(a)
 
 5 Candidates may avail themselves of the Hawaii election campaign
 
 6 fund, 11-217.  The maximum amount of public funds available to a
 
 7 candidate in any election year shall not exceed one-fifth or
 
 8 twenty per cent of the total expenditure limit established for
 
 9 each office above pursuant to section   -16.
 
10      -23  Qualifying campaign contributions; amounts.  As a
 
11 condition of receiving public funds for a primary, special
 
12 primary, or general election, a candidate shall have filed an
 
13 affidavit with the commission pursuant to section   -15 to
 
14 voluntarily limit the candidate's campaign expenditures and shall
 
15 be in receipt of $500 of qualifying campaign contributions for
 
16 the candidate's respective office for each election.
 
17      -24  Eligibility for payments.(a)  To be eligible to
 
18 receive payments under section 11-217, a candidate shall in
 
19 writing:
 
20      (1)  Agree to obtain and furnish to the commission any
 
21           evidence of the campaign expenses of such candidate
 
22           which the commission may request;
 
23      (2)  Agree to keep and furnish records, books, and other
 

 
Page 34                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1           information which the commission may request; and
 
 2      (3)  Agree to an audit and examination by the commission
 
 3           under section   -29 and to pay any amounts required to
 
 4           be paid pursuant to such section.
 
 5      (b)  To be eligible to receive payments pursuant to section
 
 6 11-217, a candidate shall certify to the commission that:
 
 7      (1)  Such candidate and all committees authorized by such
 
 8           candidate shall not incur campaign expenses in excess
 
 9           of the expenditure limitations imposed by section
 
10           -16;
 
11      (2)  Such candidate has qualified to be on the election
 
12           ballot in a primary, special primary, or general
 
13           election;
 
14      (3)  Such candidate has filed a statement of intent to seek
 
15           qualifying contributions.  A contribution received
 
16           before the filing of a statement of intent to seek
 
17           public funds shall not be considered a qualifying
 
18           contribution;
 
19      (4)  Such candidate or committee authorized by such
 
20           candidate has received the qualifying sum of private
 
21           contributions for the office sought by the candidate as
 
22           set forth in section   -23;
 
23      (5)  The aggregate of contributions certified with respect
 

 
Page 35                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1           to any person under paragraph (4) does not exceed $100.
 
 2      (c)  Each candidate and all committees authorized by such
 
 3 candidate in receipt of qualifying campaign contributions which
 
 4 may be taken into account for purposes of public funding shall
 
 5 maintain, on a form prescribed by the commission, records which
 
 6 show the date and amount of each such contribution and the full
 
 7 name and mailing address of the person making the contribution.
 
 8 The candidate and all committees authorized by the candidate
 
 9 shall transmit to the commission all reports with respect to such
 
10 contributions which the commission may require. 
 
11      -25  Entitlement to payments.  Every candidate who is
 
12 eligible to receive public funds pursuant to section   -26 is
 
13 entitled to payments pursuant to section 11-217 in an amount
 
14 equal to each qualifying contribution received by that candidate
 
15 or candidate committee during the matching payment period
 
16 involved.  A qualifying contribution shall be attributed to a
 
17 primary, special or general election.
 
18      A candidate eligible to receive public funds must obtain a
 
19 minimum amount of qualifying campaign contributions as set forth
 
20 in section   -23 in order to be entitled to receive any matching
 
21 public funds in an election.  For the purpose of this section, a
 
22 candidate must have at least one other qualified candidate as an
 
23 opponent for the election to receive public funds for that
 

 
Page 36                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1 election. 
 
 2      -26  Candidate funding; application.(a)  Application
 
 3 forms for public funds shall be adopted by the commission and
 
 4 shall provide for a sworn statement by the candidate that the
 
 5 candidate has established eligibility under section   -26 to
 
 6 receive payments under section 11-217.  Each application shall be
 
 7 accompanied by a qualifying campaign contribution statement or
 
 8 statements, and shall be filed with the commission no later than
 
 9 sixty days after the general election.  Upon approval by the
 
10 commission of the application and qualifying contribution
 
11 statement, the commission shall direct the comptroller to
 
12 distribute matching public funds up to the maximum of the amount
 
13 of public funds to which the candidate is entitled.
 
14      Public funds shall be distributed by the comptroller to each
 
15 eligible candidate within ten days from the date of the
 
16 candidate's initial application with the commission.
 
17      (b)  Each candidate in receipt of the qualifying sum of
 
18 contributions established for the candidate's office may apply to
 
19 the commission for public funding after the candidate has become
 
20 a candidate in a primary, special primary, special, or general
 
21 election.
 
22      (c)  The commission shall make additional certifications
 
23 within two weeks after receiving an application and supplemental
 

 
Page 37                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1 contribution statement from an eligible candidate who requests
 
 2 additional public funding pursuant to section   -25.
 
 3      (d)  Initial certification by the commission under
 
 4 subsection (a) and all determinations made by the commission
 
 5 under this section are final and conclusive, except to the extent
 
 6 they are subject to examination and audit by the commission under
 
 7 section   -29. 
 
 8      -27  Candidate funding; restrictions.(a)  Each candidate
 
 9 who accepts public campaign funds under this subpart shall be
 
10 required to abide by the campaign spending limits for the
 
11 candidate's respective office as set forth in section   -16.  Any
 
12 candidate who exceeds the spending limits for the candidate's
 
13 respective office as set forth in section   -16 shall return all
 
14 of the public campaign funds the candidate has received to the
 
15 Hawaii election campaign fund; provided that any candidate who
 
16 exceeds the limits by no more than one per cent shall return
 
17 twenty-five per cent of the fund.
 
18      (b)  Public campaign funds provided under this subpart shall
 
19 only be used to:
 
20      (1)  Defray campaign expenses incurred by and paid for an
 
21           eligible candidate or all committees authorized by such
 
22           candidate; and
 
23      (2)  Repay loans, the proceeds of which were used to defray
 

 
Page 38                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1           campaign expenses.
 
 2      (c)  In no event shall any candidate or campaign treasurer
 
 3 in receipt of public campaign funds transfer any portion of such
 
 4 funds to another candidate for any primary, special primary,
 
 5 special, or general election campaign.
 
 6      (d)  All public funds received under this subpart shall be
 
 7 deposited in a financial institution designated to do business in
 
 8 the State.  No expenditures of any public funds received under
 
 9 this subpart shall be made except by checks drawn on such
 
10 checking account.  The commission may require such reports
 
11 relating to the expenditure of such funds as it considers
 
12 appropriate.
 
13      (e)  Upon the filing of a final report for any primary,
 
14 special primary, special, or general election, each candidate who
 
15 has spent an amount below the expenditure limit set for the
 
16 candidate's respective office, but who has received the maximum
 
17 amount of public funds allowable for the candidate's respective
 
18 office, shall return all unexpended public funds to the Hawaii
 
19 election campaign fund. 
 
20      -28  Public funds; report required; return of funds.  The
 
21 campaign treasurer of the candidate shall produce evidence to the
 
22 commission no later than twenty days after a primary or special
 
23 primary election; and no later than thirty days after a special
 

 
Page 39                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1 or general election that all public funds paid to the candidate
 
 2 have been utilized as required by this subpart.
 
 3      Should the commission determine that any part of the public
 
 4 funds have been used for noncampaign or improper expenses, it
 
 5 shall report such finding to the attorney general and shall order
 
 6 the candidate to return all or part of the total funds paid to
 
 7 that candidate for a primary, special primary, special, or
 
 8 general election.  When such funds are returned, they shall be
 
 9 deposited in the Hawaii election campaign fund. 
 
10      -29  Public funds; examination and audit; payments.(a)
 
11 Within sixty days after each general election, the commission
 
12 shall conduct an examination and audit of all public funds
 
13 received by the candidate and of the campaign contributions used
 
14 for purposes of qualifying for public funding under this subpart
 
15 and the campaign expenses incurred by all candidates who received
 
16 payments pursuant to section 11-217.
 
17      (b)  The campaign spending commission shall issue, prior to
 
18 the payment of any public money, rules which detail which
 
19 expenses and evidence thereof qualify as acceptable campaign
 
20 expenses for purposes of this section.
 
21      (c)  Should the commission determine that any payment of
 
22 public funds made to an eligible candidate pursuant to section
 
23 -25 was in excess of the aggregate amount of payments to which
 

 
Page 40                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1 such candidate was entitled, the commission shall notify such
 
 2 candidate and such candidate shall pay to the Hawaii election
 
 3 campaign fund a sum equal to the amount of excess payment.
 
 4      (d)  If the commission determines that any amount of any
 
 5 public funds made to a candidate under section 11-217 was used
 
 6 for any improper purpose, the commission shall so notify the
 
 7 candidate, and the candidate shall pay to the fund an amount
 
 8 equal to three hundred per cent of such amount.
 
 9      (e)  Any candidate who has received public funds under
 
10 section 11-217 and who is convicted of violating any provision of
 
11 this subpart shall, upon notification by the commission, pay to
 
12 the Hawaii election campaign fund the full amount of public funds
 
13 received by such candidate.
 
14      (f)  No notification shall be made by the commission under
 
15 subsection (c) with respect to the payment of excess public funds
 
16 more than two years after the payment of such funds. 
 
17      -30  Tax deductions.(a)  As a condition of allowing an
 
18 individual to take a tax deduction for campaign contributions to
 
19 a candidate pursuant to section 235-7(g)(2), a candidate shall
 
20 have filed an affidavit with the commission prior to or
 
21 simultaneous with the filing of the candidate's organizational
 
22 report stating that the candidate shall not exceed the
 
23 expenditure limit for the candidate's respective office as set
 

 
Page 41                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1 forth in section   -16.
 
 2      (b)  The affidavit shall remain effective until the
 
 3 termination of the central committee of the candidate or the
 
 4 opening of filing for the next succeeding election for the office
 
 5 held or sought at the time of filing of the affidavit whichever
 
 6 occurs first.  An affidavit filed under this section may not be
 
 7 rescinded.
 
 8      (c)  The director of taxation shall not allow any individual
 
 9 or married couple filing jointly to take a deduction against any
 
10 tax due, pursuant to section 235-7(g)(2), for any contribution to
 
11 a candidate for statewide or county office, who has not filed an
 
12 affidavit as provided in this section.
 
13      (d)  The commission shall forward a certified copy of any
 
14 affidavit filed under this section to the director of taxation.
 
15      (e)  The director of taxation shall only allow an individual
 
16 or married couple filing jointly to take an income tax deduction,
 
17 pursuant to section 235-7(g)(2), for any contribution to a
 
18 candidate for a statewide or county office, if a receipt is
 
19 attached to the state income tax return.  Canceled checks or
 
20 copies of the same shall be considered adequate receipt forms.
 
21      (f)  If a candidate has not filed an affidavit pursuant to
 
22 this section, the candidate shall inform all contributors to the
 
23 candidate's campaign in writing immediately upon receipt of the
 

 
Page 42                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1 contribution that they are not entitled to count their
 
 2 contributions to the candidate for purposes of taking a tax
 
 3 deduction under this section. 
 
 4      -31  Public notices.(a)  Forty-five days before each
 
 5 primary, special primary, special, or general election, and at
 
 6 such other times as may be appropriate, the commission may give
 
 7 public notices to communicate to the public the following:
 
 8      (1)  A candidate who has signed an affidavit pursuant to
 
 9           section   -15 to abide by the expenditure limits for
 
10           the candidate's respective office as imposed by this
 
11           subpart;
 
12      (2)  A candidate who has filed an affidavit to abide by
 
13           spending limits, but who has exceeded the expenditure
 
14           limits pursuant to section   -16;
 
15      (3)  A candidate who has failed to file a report required
 
16           under this subpart, or who has failed to correct a
 
17           deficient report after notice of the deficiency or
 
18           failure to file has been mailed to the candidate; and
 
19      (4)  Any flagrant violation of any other provision of this
 
20           subpart.
 
21      (b)  In giving public notice under this section, the
 
22 commission shall endeavor to bring fair public light to the
 
23 incident or violation involved.  
 

 
Page 43                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1        -32  Administrative fines; relief.(a)  In the
 
 2 performance of its required duties, the commission may render a
 
 3 decision or issue an order affecting any person violating any
 
 4 provision of this subpart other than   -20, that shall provide
 
 5 for the assessment of an administrative fine in the manner
 
 6 prescribed as follows:
 
 7      (1)  If a natural person, an amount not to exceed $1,000 for
 
 8           each occurrence or an amount equivalent to three times
 
 9           the amount of an unlawful contribution or expenditure,
 
10           whichever is greater; or
 
11      (2)  If a corporation, organization, association, or labor
 
12           union, it shall be punished by a fine not exceeding
 
13           $1,000 for each occurrence; and
 
14      (3)  Whenever a corporation, organization, association, or
 
15           labor union violates this subpart, the violation shall
 
16           be deemed to be also that of the individual directors,
 
17           officers, or agents of the corporation, organization,
 
18           association, or labor union, who have knowingly
 
19           authorized, ordered, or done any of the acts
 
20           constituting the violation.
 
21      (b)  Any order for the assessment of an administrative fine
 
22 may not be issued against a person without providing the person
 
23 written notice and an opportunity to be heard at a hearing
 

 
Page 44                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1 conducted under chapter 91.  A person may waive these rights by
 
 2 written stipulation or consent.  If an administrative fine is
 
 3 imposed upon a candidate, the commission may order that the fine,
 
 4 or any portion, be paid from the candidate's personal funds.
 
 5      (c)  If an order issued by the commission is not complied
 
 6 with by the person to whom it is directed, the first circuit
 
 7 court, upon application of the commission, shall issue an order
 
 8 requiring the person to comply with the commission's order.
 
 9 Failure to obey such a court order shall be punished as contempt.
 
10      (d)  Any administrative fine collected by the commission
 
11 shall be deposited in the Hawaii election campaign fund.
 
12      (e)  Any person or the commission may sue for injunctive
 
13 relief to compel compliance with this subpart.
 
14      (f)  The provisions of this section shall not be construed
 
15 to prohibit prosecution under any appropriate provision of the
 
16 Hawaii Penal Code or section   -33. 
 
17      -33  Criminal prosecution.(a)  Any individual who
 
18 knowingly, intentionally, or recklessly violates any provision of
 
19 this subpart, other than section   -20, shall be guilty of a
 
20 misdemeanor.  A person who is convicted under this section shall
 
21 be disqualified from holding elective public office for a period
 
22 of four years from the date of conviction.
 
23      (b)  For purposes of prosecution for violation of this
 

 
Page 45                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1 subpart, the offices of the attorney general and the prosecuting
 
 2 attorney of the respective counties shall be deemed to have
 
 3 concurrent jurisdiction to be exercised as follows:
 
 4      (1)  Prosecution shall commence with a written request from
 
 5           the commission or upon the issuance of an order of the
 
 6           court; provided that prosecution may commence prior to
 
 7           any proceeding initiated by the commission or final
 
 8           determination;
 
 9      (2)  In the case of state offices, parties, or issues, the
 
10           attorney general or the prosecuting attorney for the
 
11           city and county of Honolulu shall prosecute any
 
12           violation; and
 
13      (3)  In the case of all other offices, parties, or issues,
 
14           the attorney general or the prosecuting attorney for
 
15           the respective county shall prosecute any violation.
 
16      In the commission's choice of prosecuting agency, it shall
 
17 be guided by whether there will be any conflicting interest
 
18 between the agency and its appointive authority.
 
19      (c)  The court shall give priority to the expeditious
 
20 processing of suits under this section.
 
21      (d)  Prosecution for violation of any provision of this
 
22 subpart shall not be commenced after five years have elapsed from
 
23 the date of the violation or date of filing of the report
 

 
Page 46                                                    
                                     H.B. NO.1313       
                                                        
                                                        

 
 1 covering the period in which the violation occurred, whichever is
 
 2 later." 
 
 3      SECTION 3.  This Act shall take effect upon its approval.
 
 4 
 
 5                           INTRODUCED BY:_________________________
 
 6 
 
 7 
 
 8                                         _________________________
 
 9 
 
10                                         _________________________
 
11 
 
12                                         _________________________
 
13 
 
14                                         _________________________
 
15 
 
16                                         _________________________
 
17 
 
18                                         _________________________
 
19 
 
20                                         _________________________
 
21 
 
22                                         _________________________
 
23