REPORT TITLE:
Campaign Contributions



DESCRIPTION:
Amends campaign spending and disclosure laws to encompass
contributions with regard to ballot issues.  Provides that
organizations that raise or expend funds for purposes of
informational and educational advertising are not "committees"
subject to campaign contribution and expenditure laws.  Limits
contributions by a candidate's immediate family to $50,000.
Amends the dates on which preliminary reports must be filed with
the commission.  Repeals short form reporting.  Exempts
violators of campaign contribution and expenditure laws from
administrative fines and criminal prosecution upon payment of
penalties imposed by the commission.



 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        71
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     A BILL FOR AN ACT

RELATING TO ELECTIONS.



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

 1      SECTION 1.  Section 11-191, Hawaii Revised Statutes, is
 
 2 amended as follow:
 
 3      1.  By adding a new definition to be appropriately inserted
 
 4 and to read:
 
 5      ""Ballot issue committee" means a committee as defined in
 
 6 this section that has the exclusive purpose of making or
 
 7 accepting contributions or expenditures for or against any issue
 
 8 appearing on the ballot at the next applicable election."
 
 9      2.  By amending the definition of "committee" to read:
 
10      ""Committee" means:
 
11      (1)  Any organization, association, or individual that
 
12           accepts or makes a contribution or makes an expenditure
 
13           for or against any:
 
14           (A)  Candidate;
 
15           (B)  Individual who files for nomination at a later
 
16                date and becomes a candidate; [or]
 
17           (C)  Party; or
 
18           (D)  Question or issue appearing on the ballot;
 
19           with or without the authorization of the candidate,
 
20           individual, or party[.  In addition, the term
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           "committee" means any organization, association, or
 
 2           individual who accepts or makes a contribution or makes
 
 3           an expenditure for or against any question or issue
 
 4           appearing on the ballot at the next applicable
 
 5           election];
 
 6      (2)  Any organization, association, or individual that
 
 7           raises or holds money or anything of value for a
 
 8           political purpose, with or without the consent or
 
 9           knowledge of any:
 
10           (A)  Candidate;
 
11           (B)  Individual who files for nomination at a later
 
12                date and becomes a candidate; or
 
13           (C)  Party; [and]
 
14           and subsequently contributes money or anything of value
 
15           to, or makes expenditures on behalf of, the candidate,
 
16           individual, or party;
 
17      (3)  Notwithstanding any of the foregoing, the term
 
18           "committee" shall not include any individual making a
 
19           contribution or expenditure of the individual's own
 
20           funds or anything of value that the individual
 
21           originally acquired for the individual's own use and
 
22           not for the purpose of evading any provision of this
 
23           subpart; or
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (4)  [Any committee as defined in paragraph (1) that accepts
 
 2           or makes contributions or makes expenditures in
 
 3           aggregate of more than $1,000 in an election to
 
 4           influence the nomination and election of individuals to
 
 5           public office or the outcome of ballot questions or
 
 6           issues, shall register with the commission and file
 
 7           reports as required by this chapter.]
 
 8      SECTION 2.  Section 11-194, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "11-194  Registration.(a)  Each candidate, committee, or
 
11 party shall file an organizational report as set forth in section
 
12 11-196[,] or section 11-196.5 as applicable, within ten days from
 
13 the date a candidate or candidate committee receives any
 
14 contributions or makes any expenditures[, the aggregate amount of
 
15 which is more than $100,] or, within ten days from the date a
 
16 noncandidate committee receives any contributions or makes any
 
17 expenditures, the aggregate amount of which is more than $1,000.
 
18      (b)  Committees that form within ten days of an election and
 
19 expend in the aggregate more than $1,000 shall register and fully
 
20 disclose the expenditure by 4:30 p.m. the last calendar day prior
 
21 to the expenditure.
 
22      (c)  Each candidate who [is certified to be a candidate by]
 
23 files nomination papers for office with the chief election
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 officer or county clerk [by way of the "write-in" ballot] shall
 
 2 file an organizational report within five days of [being
 
 3 certified as a candidate.] filing.
 
 4      [(d)  Each candidate shall re-register for the new election
 
 5 period.  A noncandidate committee need not re-register for a new
 
 6 election period, but shall affirm the accuracy of the information
 
 7 on the organizational report as set forth in section 11-196.5.]"
 
 8      SECTION 3.  Section 11-195, Hawaii Revised Statutes, is
 
 9 amended by amending subsection (a) to read as follows:
 
10      "(a)  All reports required to be filed under this subpart by
 
11 a candidate or those committees directly associated with the
 
12 candidate's candidacy shall be certified by the candidate[.] and
 
13 treasurer or deputy treasurer.  Reports required to be filed
 
14 under this subpart by a party or committee that supports more
 
15 than one candidate shall be certified by a person authorized to
 
16 sign the reports.  All reports required to be filed under this
 
17 subpart shall be open for public inspection in the office of the
 
18 commission."
 
19      SECTION 4.  Section 11-199, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "11-199  Campaign contributions, generally.(a)  All
 
22 monetary contributions shall be promptly deposited in a
 
23 depository institution, as defined by section 412:1-109, duly
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

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

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      SECTION 5.  Section 11-204, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "11-204  Campaign contributions; limits as to persons.(a)
 
 4 No person or any other entity shall make contributions to:
 
 5      (1)  A candidate seeking nomination or election to a two-
 
 6           year office or to the candidate's committee in an
 
 7           aggregate amount greater than $2,000 during an election
 
 8           period; [and]
 
 9      (2)  A candidate seeking nomination or election to a four-
 
10           year statewide office or to the candidate's committee
 
11           in an aggregate amount greater than $6,000 during an
 
12           election period; and
 
13      (3)  A candidate seeking nomination or election to a four-
 
14           year nonstatewide office or to the candidate's
 
15           committee in an aggregate amount greater than $4,000
 
16           during an election period. 
 
17      These limits shall not apply to a loan made to a candidate
 
18 by a financial institution in the ordinary course of business.
 
19      (b)  No person or any other entity shall make contributions
 
20 to a noncandidate committee, in an aggregate amount greater than
 
21 $1,000 in an election; except that in the case of a corporation
 
22 or company using funds from its own treasury, there shall be no
 
23 limit on contributions or expenditures to the corporation or
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 company noncandidate committee.
 
 2      (c)  A [candidate] candidate's immediate family in making [a
 
 3 contribution] contributions to the candidate's campaign shall be
 
 4 exempt from the above limitation, but shall be limited in the
 
 5 aggregate to $50,000 in any election period.  The aggregate
 
 6 amount of $50,000 shall include any loans made for campaign
 
 7 purposes to the candidate from the candidate's immediate family.
 
 8      (d)  A contribution by a dependent minor shall be reported
 
 9 in the name of the minor but shall be counted against the
 
10 contribution of the minor's parent or guardian.
 
11      (e)  Any candidate [or], candidate's committee, or committee
 
12 [who] that receives in the aggregate more than the applicable
 
13 limits set forth in this section in any primary, initial special,
 
14 special, or general election from a person, shall be required to
 
15 transfer an amount equal to any excess over the limits
 
16 established in this section to the Hawaii election campaign fund
 
17 within thirty days of receipt [by a candidate or candidate's
 
18 committee,] of the contribution, and in any event, no later than
 
19 thirty days upon the receipt by a candidate [or], candidate's
 
20 committee, or committee, of notification from the commission.  A
 
21 candidate [or], candidate's committee, or committee who complies
 
22 with this subsection prior to the initiation of prosecution shall
 
23 not be subject to any penalty under section 11-228.
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

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

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 same candidate.  No such committee shall act in concert with, or
 
 2 solicit or make contributions on behalf of, any other committee.
 
 3      [(j)  No contributions may be made to a noncandidate
 
 4 committee from a corporation or other organization unless the
 
 5 noncandidate committee has been in existence continuously, as
 
 6 shown on the records of the campaign spending commission, for at
 
 7 least twelve months prior to the next primary election.
 
 8      (k)] (j)  No contributions or expenditures shall be made to
 
 9 or on behalf of a candidate or committee by a foreign national,
 
10 or foreign corporation, including a domestic subsidiary of a
 
11 foreign corporation, a domestic corporation that is owned by a
 
12 foreign national, or a local subsidiary where administrative
 
13 control is retained by the foreign corporation, and in the same
 
14 manner prohibited under 2 United States Code section 441e and 11
 
15 Code of Federal Regulations 110.4(a) and 110.9(a), as amended.
 
16 No foreign-owned domestic corporation shall make contributions
 
17 where:
 
18      (1)  Foreign national individuals participate in election-
 
19           related activities such as decisions concerning the
 
20           making of contributions or the administration of a
 
21           political committee; or
 
22      (2)  The contribution funds are not domestically-derived.
 
23      [(l)] (k)  No person or any other entity shall make
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 contributions to a political party in an aggregate amount greater
 
 2 than $50,000 in any two-year election period. 
 
 3      (l)  Except for subsection (j), this section shall not apply
 
 4 to ballot issue committees."
 
 5      SECTION 6.  Section 11-207, Hawaii Revised Statutes, is
 
 6 amended by amending subsection (b) to read as follows:
 
 7      "(b)  No funds shall be withdrawn or paid from a campaign
 
 8 depository except upon the written authorization of the campaign
 
 9 treasurer[.] or deputy treasurer."
 
10      SECTION 7.  Section 11-212, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "11-212  Preliminary reports.(a)  [Each candidate,
 
13 authorized person in the case of a party, or campaign treasurer
 
14 in the case of a candidate committee,] The candidate committee of
 
15 each candidate whose name will appear on the ballot in the next
 
16 election, shall file a preliminary report with the commission or
 
17 appropriate county clerk's office[,].  Preliminary reports shall
 
18 be filed on forms provided by the commission no later than 4:30
 
19 p.m. on the [twenty-fifth and tenth calendar day prior to each
 
20 primary and initial special election, and the tenth calendar day
 
21 prior to a special or general election.] following dates:
 
22      (1)  July 30 of the year of the primary election;
 
23      (2)  Ten calendar days prior to each primary election;
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (3)  Ten calendar days prior to each initial special
 
 2           election;
 
 3      (4)  Ten calendar days prior to a special election; and
 
 4      (5)  Ten calendar days prior to a general election.
 
 5      Each report shall be certified pursuant to section 11-195
 
 6 and shall contain the following information which shall be
 
 7 current through the [fifth] thirtieth calendar day prior to the
 
 8 filing of [a preliminary report:] the report filed on the
 
 9 thirtieth of July and the fifth calendar day prior to the filing
 
10 of other preliminary reports:
 
11      (1)  The aggregate sum of all contributions and other
 
12           campaign receipts received;
 
13      (2)  The amount and date of deposit of the contribution and
 
14           the name and address of each donor who contributes an
 
15           aggregate of more than $100 during an election period,
 
16           which has not previously been reported;
 
17      (3)  The amount and date of deposit of each contribution and
 
18           the name, address, employer, and occupation of each
 
19           donor who contributes an aggregate of $1,000 or more
 
20           during an election period, which has not previously
 
21           been reported;
 
22      (4)  All expenditures made, incurred, or authorized by or
 
23           for a candidate, including the name and address of each
 
24           payee and the amount, date, and purpose of each
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           expenditure; and
 
 2      (5)  A current statement of the balance on hand or deficit.
 
 3      (b)  Each noncandidate committee shall file a preliminary
 
 4 report with the commission, on forms provided by the commission,
 
 5 no later than 4:30 p.m. on the tenth calendar day prior to each
 
 6 primary election and the tenth calendar day prior to a special or
 
 7 general election.  Each report shall be certified pursuant to
 
 8 section 11-195 and shall contain the following information, which
 
 9 shall be current through the fifth calendar day prior to the
 
10 filing of a preliminary report:
 
11      (1)  The aggregate sum of all contributions and other
 
12           campaign receipts received;
 
13      (2)  The amount and date of deposit of the contribution and
 
14           the name, address, employer, and occupation of each
 
15           donor who contributes an aggregate of $100 or more
 
16           during an election period, which has not previously
 
17           been reported;
 
18      (3)  The amount and date of each disbursement or
 
19           contribution made to a candidate, party, organization,
 
20           or committee, including the name and address of each
 
21           payee, which has not previously been reported;
 
22      (4)  The amount and date of each expenditure made or
 
23           incurred by the committee for or against any candidate,
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           ballot issue, or on behalf of another committee, which
 
 2           has not previously been reported; and
 
 3      (5)  A current statement of the balance on hand.
 
 4      (c)  A candidate, party, or committee whose aggregate
 
 5 contributions [or] and aggregate expenditures for the reporting
 
 6 period each total $2,000 or less, may file a short form report
 
 7 with the commission or appropriate county clerk's office in lieu
 
 8 of the reports required by this section and section 11-213.
 
 9      (d)  Notwithstanding this section and section 11-213, a
 
10 candidate, party, or committee whose aggregate contributions [or]
 
11 and aggregate expenditures for the election period each total
 
12 $1,000 or less, need not file a preliminary and final primary
 
13 report, a preliminary and final general report, or a special
 
14 election report, but shall file only a final election period
 
15 report."
 
16      SECTION 8.  Section 11-213, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "11-213  Final and supplemental reports.(a)  Primary and
 
19 initial special election.  Each candidate whether or not
 
20 successful in a primary or initial special election, authorized
 
21 person in the case of a party, or campaign treasurer in the case
 
22 of a committee, shall file a final primary report certified
 
23 pursuant to section 11-195 with the commission on forms provided
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 by the commission no later than 4:30 p.m. on the twentieth
 
 2 calendar day after a primary or initial special election.  The
 
 3 report shall include the following information which shall be
 
 4 current through the day of the primary election:
 
 5      (1)  A statement of the total contributions and campaign
 
 6           receipts received;
 
 7      (2)  The amount and date of deposit of each contribution and
 
 8           the name and address of each donor who contributes an
 
 9           aggregate of more than $100 during an election period,
 
10           which has not previously been reported;
 
11      (3)  The amount and date of deposit of each contribution and
 
12           the name, address, employer, and occupation of each
 
13           donor who contributes an aggregate of $1,000 or more
 
14           during an election period, which has not previously
 
15           been reported;
 
16      (4)  A statement of all expenditures made, incurred, or
 
17           authorized by or for a candidate including the name and
 
18           address of each payee and the amount, date, and purpose
 
19           of each expenditure; and
 
20      (5)  The cash balance and a statement of surplus or deficit.
 
21      (b)  Each noncandidate committee shall file a final primary
 
22 report, certified pursuant to section 11-195, with the commission
 
23 on forms provided by the commission no later than 4:30 p.m. on
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 the twentieth calendar day after a primary election.  The report
 
 2 shall include the following information, which shall be current
 
 3 through the day of the primary election:
 
 4      (1)  A statement of the total contributions and campaign
 
 5           receipts received;
 
 6      (2)  The amount and date of deposit of each contribution and
 
 7           the name, address, employer, and occupation of each
 
 8           donor who contributes an aggregate of more than $100
 
 9           during an election, which has not previously been
 
10           reported;
 
11      (3)  The amount and date of each disbursement or
 
12           contribution made to a candidate, party, organization,
 
13           or committee, including the name and address of each
 
14           payee, which has not previously been reported;
 
15      (4)  The amount and date of each expenditure made or
 
16           incurred by the committee for or against any candidate,
 
17           ballot issue, or on behalf of another committee, which
 
18           has not previously been reported; and
 
19      (5)  A current statement of the balance on hand.
 
20      (c)  General, special general, special election or election
 
21 period.  Each candidate, authorized person in the case of a
 
22 party, or campaign treasurer in the case of a committee shall
 
23 file a final election period general report with the commission
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 on forms provided by the commission no later than 4:30 p.m. on
 
 2 the thirtieth calendar day after a general, special general, or
 
 3 special election.  The final election period report shall be
 
 4 certified pursuant to section 11-195, shall report all items
 
 5 prescribed in subsection (a) or (b) for noncandidate committees,
 
 6 and shall be current through the day of the general election.  A
 
 7 candidate who is unsuccessful in a primary or special primary
 
 8 election shall file a final election period report.
 
 9      (d)  Termination.  A candidate, party, or committee may
 
10 terminate registration with the commission with no surplus or no
 
11 deficit.  A termination report approved by the commission shall
 
12 include information on the disposition of any funds, which has
 
13 not previously been reported.
 
14      (e)  Deficit.  In the event of a deficit the candidate,
 
15 authorized person in the case of a party, or campaign treasurer
 
16 in the case of a committee shall, every six months until the
 
17 deficit is eliminated, file supplemental reports covering all
 
18 items prescribed in subsection (a) or subsection (b) in the case
 
19 of noncandidate committees.  The first report shall be due no
 
20 later than 4:30 p.m. on the thirtieth day after the last day of
 
21 the election year.
 
22      (f)  Surplus.  In the event of a surplus the candidate,
 
23 authorized person in the case of a party, or campaign treasurer
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

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

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 shall be filed until a candidate files to be on the ballot with
 
 2 the state elections office.  Each party or noncandidate committee
 
 3 shall file a supplemental report for the respective reporting
 
 4 period during a nonelection year.  In an election year, each
 
 5 party and noncandidate committee shall file reports as prescribed
 
 6 in this section and section 11-212 for the primary and general
 
 7 election."
 
 8      SECTION 9.  Section 11-215, Hawaii Revised Statutes, is
 
 9 amended by amending subsections (a) and (b) to read as follows:
 
10      "11-215  Advertising.(a)  [To the extent authorized by
 
11 law, all] All advertisements [authorized by a candidate or a
 
12 candidate's committee] shall contain the name and address of the
 
13 candidate, committee, or party paying for the advertisement.  If
 
14 an advertisement is not authorized by a candidate or a
 
15 candidate's committee, the advertisement shall contain the name
 
16 and address of the person paying for the advertisement.
 
17      (b)  In addition to subsection (a), [and to the extent
 
18 authorized by law,] no [person] candidate or committee shall
 
19 cause or submit any advertisement in support of a candidate [or],
 
20 against a candidate's opponent, or with regard to a ballot issue,
 
21 to be published, broadcast, televised, or otherwise circulated
 
22 and distributed except under the following conditions:
 
23      (1)  The advertisement shall contain a notice in a prominent
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           location that the literature or advertisement is
 
 2           published, broadcast, televised, or circulated with the
 
 3           approval and authority of the candidate[,]; provided
 
 4           that in the event that the literature or advertisement
 
 5           is paid for by a candidate [or] committee directly
 
 6           associated with a candidate[,] or ballot issue
 
 7           committee, the notice of approval and authority need
 
 8           not be included; or
 
 9      (2)  The advertisement shall contain a notice in a prominent
 
10           location that the literature or advertisement is
 
11           published, broadcast, televised, or circulated without
 
12           the approval and authority of the candidate."
 
13      SECTION 10. Section 11-228, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "11-228  Administrative fines; relief.(a)  In the
 
16 performance of its required duties, the commission may render a
 
17 decision or issue an order affecting any person violating any
 
18 provision of this subpart [other than in sections 11-193(a)(5)
 
19 and 11-215,] that shall provide for the assessment of an
 
20 administrative fine in the manner prescribed as follows:
 
21      (1)  If a natural person, an amount not to exceed $1,000 for
 
22           each occurrence or an amount equivalent to three times
 
23           the amount of an unlawful contribution or expenditure,
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           whichever is greater; or
 
 2      (2)  If a corporation, organization, association, or labor
 
 3           union, it shall be punished by a fine not exceeding
 
 4           $1,000 for each occurrence; and
 
 5      (3)  Whenever a corporation, organization, association, or
 
 6           labor union violates this subpart, the violation shall
 
 7           be deemed to be also that of the individual directors,
 
 8           officers, or agents of the corporation, organization,
 
 9           association, or labor union, who have knowingly
 
10           authorized, ordered, or done any of the acts
 
11           constituting the violation.
 
12      (b)  Any order for the assessment of an administrative fine
 
13 may not be issued against a person without providing the person
 
14 written notice and an opportunity to be heard at a hearing
 
15 conducted under chapter 91.  A person may waive these rights by
 
16 written stipulation or consent.  If an administrative fine is
 
17 imposed upon a candidate, the commission may order that the fine,
 
18 or any portion, be paid from the candidate's personal funds.
 
19      (c)  If an order issued by the commission is not complied
 
20 with by the person to whom it is directed, the first circuit
 
21 court, upon application of the commission, shall issue an order
 
22 requiring the person to comply with the commission's order.
 
23 Failure to obey such a court order shall be punished as contempt.
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (d)  Any administrative fine collected by the commission
 
 2 shall be deposited in the Hawaii election campaign fund.
 
 3      (e)  Any person or the commission may sue for injunctive
 
 4 relief to compel compliance with this subpart.
 
 5      (f)  The provisions of this section shall not be construed
 
 6 to prohibit prosecution under any appropriate provision of the
 
 7 Hawaii Penal Code or section 11-229.
 
 8      (g)  The provisions of this section shall not apply to any
 
 9 person who has, prior to the commencement of proceedings under
 
10 this section, paid or agreed to pay the penalties prescribed by
 
11 sections 11-193(a)(5) and 11-215(c)."
 
12      SECTION 11.  Section 11-229, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "11-229  Criminal prosecution.(a)  Any [individual]
 
15 person who knowingly, intentionally, or recklessly violates any
 
16 provision of this subpart[, other than sections 11-193(a)(5) and
 
17 11-215,] shall be guilty of a misdemeanor.  A person who is
 
18 convicted under this section shall be disqualified from holding
 
19 elective public office for a period of four years from the date
 
20 of conviction.
 
21      (b)  For purposes of prosecution for violation of this
 
22 subpart, the offices of the attorney general and the prosecuting
 
23 attorney of the respective counties shall be deemed to have
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

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

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (e)  The provisions of this section shall not apply to any
 
 2 person who has, prior to the commencement of proceedings under
 
 3 this section, paid or agreed to pay the penalties prescribed by
 
 4 sections 11-193(a)(5) and 11-215(c)."
 
 5      SECTION 12.  Act 27, Special Session Laws of Hawaii 1995, is
 
 6 amended by amending section 15 to read as follows:
 
 7      "SECTION 15.  This Act shall take effect on July 1, 1995;
 
 8 provided that on June 30, 1999, this Act shall be repealed and
 
 9 sections 11-1, 11-2, 11-15, [11-191, 11-193, 11-194, 11-195, 11-
 
10 216,] 12-8, and 26-1, Hawaii Revised Statutes, shall be reenacted
 
11 in the form in which they read on the day before the effective
 
12 date of this Act."
 
13      SECTION 13.  Statutory material to be repealed is bracketed.
 
14 New statutory material is underscored.
 
15      SECTION 14.  This Act shall take effect on June 29, 1999.
 
16 
 
17