Campaign Spending Commission

Next Reporting Deadline:  January 31, 2011.  Candidate and noncandidate committees participating in the 2010 elections must file a Supplemental Report covering November 3 through December 31, 2010.  Candidates that did not run in the 2010 elections must file a Supplemental Report covering July 1 through December 31, 2010.  Candidate and noncandidate committees participating in the Honolulu City Council, District 1 Special Election must file a Final Special Election Period Report covering December 15 through December 29, 2010, and a Supplemental Report covering December 30 through December 31, 2010.

NEW LEGISLATIVE CHANGES

State Income Tax Deduction Repealed
Effective January 1, 2011, the Hawaii income tax deduction is repealed for contributions to a candidate who agreed to campaign expenditure limits and contributions to a party’s central or county committee.  Under the prior law, a deduction (subject to a cap) was allowed only for these types of political contributions.  See, Act 59, SLH 2010, which applies to taxable years beginning after December 31, 2010.

Corporation Reporting
Effective January 1, 2011, a corporation must electronically file a report with the Commission when contributions from the corporation’s treasury to candidates or candidate committees aggregate more than $1,000 per two-year election period.  The report must include the name of the corporation, business address, a contact individual and amounts contributed that are more than $100 to each candidate or candidate committee.  See, Act 211, SLH 2010.

COMMISSION WELCOMES NEW EXECUTIVE DIRECTOR

The Commission welcomed new Executive Director Kristin E. Izumi-Nitao on November 4, 2010. Prior to this position, she worked at the Department of the Attorney General where she administered the Hawaii Internet Crimes Against Children (ICAC) Task Force and the Hawaii High Technology Crime Unit. Prior to supervising these programs, Kristin served as the legal advisor to the Board of Trustees of the State Employees’ Retirement System. She was formerly a Honolulu deputy prosecutor, served as a law clerk for the Chief Justice of the Hawaii Supreme Court, and as a law clerk for a circuit court judge. Kristin is a graduate of Punahou School, Wellesley College, and Santa Clara University School of Law.

The Commission welcomed new Executive Director Kristin E. Izumi-Nitao on November 4, 2010. Prior to this position, she worked at the Department of the Attorney General where she administered the Hawaii Internet Crimes Against Children (ICAC) Task Force and the Hawaii High Technology Crime Unit. Prior to supervising these programs, Kristin served as the legal advisor to the Board of Trustees of the State Employees’ Retirement System. She was formerly a Honolulu deputy prosecutor, served as a law clerk for the Chief Justice of the Hawaii Supreme Court, and as a law clerk for a circuit court judge. Kristin is a graduate of Punahou School, Wellesley College, and Santa Clara University School of Law.

BARBARA WONG RETIRES

Barbara Uphouse Wong officially retired as Executive Director on October 31, 2010. She served as Executive Director to the Commission since November 1, 2005. We would like to thank her for her many years of service to the Commission.

GRANT TANIMOTO RETIRES

Grant Tanimoto officially retired as General Counsel to the Commission on December 31, 2010. He served as General Counsel to the Commission since April 1, 2004.  We would like to thank him for his many years of service to the Commission.

REMEMBER TO CHECK-OFF $3 ON YOUR TAX RETURN

The Hawaii Campaign Spending Commission operates from a trust fund called the Hawaii Election Campaign Fund.  This fund depends on Hawaii taxpayers checking off the box on their state income tax form which permits $3 from state funds (or $6 if married and filing a joint return) to be allocated to our trust fund. Tax filers are informed that participation is voluntary and does not increase their tax or reduce their refund.  Monies in this campaign fund help to provide accountability, transparency and integrity by providing full and partial public funding to candidates, and paying operational expenses of the Hawaii Campaign Spending Commission. See, HRS section 235-102.5.

TOM BERG WINS SPECIAL ELECTION

On December 29, 2010, candidate Tom Berg was declared the winner of the Honolulu City Council, District 1 Special Election.  Berg received 2,326 votes, and spent $9,047.10 with a cost-per-vote of $3.89.

CSC Reports
Next report due for:
Candidates
Supplemental-January 31, 2011

Noncandidate Committees
Supplemental-January 31, 2011

CSC Meetings
January 12, 2011
February 9, 2011
March 9, 2011
April 13, 2011
May 11, 2011
June 8, 2011

FEDERAL LAWSUIT

U.S. District Judge J. Michael Seabright issued a preliminary injunction order in Yamada v. Kuramoto, Civil No. CV10-0497, allowing two individuals to each contribute $2,500 for the 2010 general election to  Aloha Family Alliance, a noncandidate committee that made only independent expenditures. The State has filed an appeal of this order with the 9^th Circuit Court of Appeals. Judge Seabright issued another order denying the plaintiffs’ request for a preliminary injunction relating to other campaign statutes, including the disclosure requirements applicable to a noncandidate committee.  Notwithstanding this preliminary order, there will be further litigation to resolve the issues presented in the complaint filed by attorney James Bopp.

2011 PROPOSED LEGISLATION

The Commission will be seeking passage of three bills in the 2011 Legislative session.  The first bill proposes to clarify Act 211, Session Laws of Hawaii 2010, which recodified the campaign finance statutes, by making technical changes and minor substantive changes to provide transparency.  The second bill proposes changes to the report filing deadlines and filing of additional reports by a candidate committee and noncandidate committee.  This is in response to Act 126, SLH 2010, which moved up the primary election date.  The third bill would prohibit a candidate from using contributions to pursue nomination and election to another state or county office without the contributor’s written consent.

ADVISORY OPINION SUMMARIES

10-01 – The campaign finance statutes permit an elected official to use campaign funds for “ordinary and necessary expenses” of the office.  The Commission opined that “ordinary and necessary expenses” include travel expenses to conduct State or county business; bonafide registration and travel expenses for conferences and workshops directly related to the official’s duties and responsibilities; expenses to organize and host community meetings to disseminate information and gather public comment regarding issues relevant to the elected official; expenses for leis for official events or office events, but not leis for other legislators; and legislative opening day expenses and inaugural expenses for food and beverages to host constituents. “Ordinary and necessary expenses” do not include expenses for food and beverages for the official’s or staff’s personal consumption; and flowers or money for funerals of constituents.

10-02 – No contribution is received by a candidate who speaks at a professional association’s meeting. Reasonable overhead meeting expenses of a regularly scheduled association meeting paid by the association or its members are not a contribution if there are no additional costs in connection with the candidate’s attendance.

10-03 – A candidate may purchase with campaign funds “not more than two tickets for each event held by another candidate or committee.” A candidate, however, is prohibited from contributing campaign funds to another candidate or committee.

VISIT THE COMMISSION’S WEBSITE

For more information, please visit the Commission’s website at www.hawaii.gov/campaign. Information posted recently include the: Commission’s 2011 meeting schedule; candidate and noncandidate committee reporting schedules for the 2012 and 2014 elections; candidate expenditure limits and partial public funding amounts for the 2012 election; candidate contribution limits and election period information by office for the 2012 and 2014 elections; and, the recently recodified Hawaii Revised Statutes (campaign spending law) with new numbered sections.

CAMPAIGN SPENDING COMMISSIONERS

The Commission (five volunteers appointed by the Governor) and its five staff members administer the law. Two Commissioners will complete their second terms on June 30, 2011.  An individual who is interested in serving may apply to the Judicial Council which prepares a list of ten nominees.  The Governor will make an appointment from that list and the appointment is not subject to confirmation by the Senate.  A Commissioner serves a four-year term. For more information, please contact Tony Benabese, Boards and Commissions Manager, Office of the Governor, at 586-0034.

HAWAII COUNTY COUNCIL COMPREHENSIVE PUBLIC FUNDS

Brittany Smart became the first comprehensive publicly funded candidate in Hawaii to be elected to office as a non-incumbent. Smart received $38,250 from the State under the new pilot program that went into effect in 2010.  Smart beat incumbent candidate Guy Enriques who also received $38,250 in comprehensive public funds, and will represent Hawaii County Council, District 6. A total of $147,716.43 was disbursed to eight candidates in the program which will also run in 2012 and 2014.  A total of $188,286.48 was disbursed to twenty-two candidates in the partial public funding program in 2010.