SECTION 1. The legislature finds that the Hawaii election campaign fund was established pursuant to article II, section 5, of the Hawaii State Constitution to provide funds for the partial public financing of campaigns for public offices of the State and its political subdivisions. Candidate public financing programs are voluntary programs in which public funds are provided to candidates who agree to limit their campaign spending. The primary purpose of these types of programs is to reduce the role of large amounts of private money raised in political campaigns and the obligations that are or can appear to be associated with these contributions.

Hawaii has a partial public funding program established under subpart J, part XIII, chapter 11, Hawaii Revised Statutes, to allow candidates running for elective office to be awarded moneys from the State to run a competitive campaign. To qualify for partial public financing, a candidate is required to raise a set minimal amount, which the State will match.

In recent election years, the partial public funding program has been used less frequently by candidates. The partial public funding program fails to provide sufficient financial incentives for candidates to adequately compete against candidates who receive campaign contributions from private sources. Furthermore, the formula used to determine the amount of money to be awarded to each qualifying candidate participating in the partial public funding program fails to reflect inflation and the rising cost of living. Thus, the program has a low participation rate.

The purpose of this Act is to:

(1) Amend the maximum amount of public funds available in each election to a candidate participating in the partial public funding program for the office of governor, lieutenant governor, or mayor to not exceed 50 per cent of the established expenditure limit for each election;

(2) Increase the matching contribution amount from the State from $1 for each $1 of qualifying contributions to $2 for each $1 of qualifying contributions in excess of the minimum qualifying contribution amounts; and

(3) Make an appropriation to increase funds available to candidates participating in the partial public funding program.

SECTION 2. Section 11-425, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The maximum amount of public funds available in each election to a candidate for the office of governor, lieutenant governor, or mayor shall not exceed [~~ten~~] 50 per cent of the expenditure limit established in section 11-423(d) for each election."

SECTION 3. Section 11-429, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) A candidate shall obtain the minimum qualifying contribution amount set forth in subsection (a) once for the election period.

(1) If the candidate obtains the minimum qualifying contribution amount, the candidate is eligible to receive:

(A) The minimum payment in an amount equal to the minimum qualifying contribution amounts; and

(B) [~~Payments~~] For primary and general elections, payments of [$1] $2 for each $1 of qualifying contributions in excess of the minimum qualifying contribution amounts; and

(2) A candidate shall have at least one other qualified candidate as an opponent for the primary or general election to receive public funds for that election."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 to be deposited into the Hawaii campaign election fund under section 11-421, Hawaii Revised Statutes.

SECTION 5. There is appropriated out of the Hawaii campaign election fund the sum of $ or so much thereof as may be necessary for fiscal year 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 to increase funds available to candidates participating in the partial public funding program.

The sums appropriated shall be expended by the department of accounting and general services for the purposes of this Act.

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

SECTION 7. This Act shall take effect on July 1, 2015.

INTRODUCED BY:	_____________________________

Report Title:

Campaign Spending; Partial Public Financing; Expenditure Limits; Matching Qualifying Contributions; Hawaii Campaign Election Fund; Appropriation

Description:

Amends the partial public financing laws to amend the maximum amount of public funds available in each election to a candidate for the office of governor, lieutenant governor, or mayor to not exceed 50 per cent of the established expenditure limit for each election; and increase the matching contribution amount from the State from $1 for each $1 of qualifying contributions to $2 for each $1 of qualifying contributions in excess of the minimum qualifying contribution amounts. Makes an appropriation to increase funds available to candidates participating in the partial public funding program.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

THE SENATE	S.B. NO.	602
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII