Campaign Spending Commission

Next Reporting Deadline:

*Candidate Committees: August 2, 2010.  This report is for the period covering January 1, 2010 through June 30, 2010.  Remember, even if you received no contributions and made no expenditures, you are still required to file a report by the deadline.  You may file your report now as the reporting period ended on June 30, 2010.  You do not have to wait until August 2, 2010.

*Noncandidate Committees: September 8, 2010.  This report is for the period covering January 1, 2010 through September 3, 2010.

RECODIFICATION OF CAMPAIGN FINANCE LAWS

A recodification of the campaign finance statutes will be enacted into law by July 6, 2010.  Mahalo to the Blue Ribbon Recodification Committee who worked with the Commission staff in 2007 and 2008 to prepare the bill that the Commission submitted to the Legislature.  The Committee members were:

Mr. James Case, Esq.
Mr. Calvert Chipchase IV, Esq.
Mr. Leroy Colombe, Esq.
Mr. Brian DeLima, Esq.
Mr. J. George Hetherington, Esq.
Ms. Sandra Hoshida, Esq.
Mr. William Kaneko, Esq.
Mr. Brian Kang, Esq.
Mr. Jared Kawashima, Esq.
Mr. Bert Kobayashi, Jr., Esq.
Mr. James Koshiba, Esq.
Judge Randall Lee
Mr. Matt Matsunaga, Esq.
Mr. Owen Matsunaga, Esq.
Ms. Marilyn Niwao, Esq.
Mr. Terry Thomason, Esq.
Ms. Renee Yuen, Esq.

2010 LEGISLATIVE UPDATE

The 2010 Legislative session was another productive and very time-consuming session for the Commission staff.

HB 2003 HD3 SD2 – Recodifies the campaign finance laws. The recodification was the Commission’s top priority because the laws were first enacted in 1973 and “numerous amendments (were) made to the campaign finance laws in a piecemeal fashion and, apparently, with little regard to the laws as a whole.”

The new Act will organize the laws into a new part of chapter 11, with ten subparts.  There are now sections with clear titles for quick reference.  All the laws on one subject are grouped together, in contrast to the prior statutes that required a reader to search through the entire subpart for laws that may apply to that one subject.  Other highlights include the following: clarifies the treatment of ballot issue committees by adding a new definition; clarifies that the Commission has discretion regarding fines; changes the limit for nonresident contributions from 20 percent per reporting period to 30 percent in the election period; permits a candidate to donate to a public school or public library up to twice the candidate’s contribution limit; and provides transparency for corporate contributions by requiring that reports be filed starting with the reporting period beginning on January 1, 2011.

Act 59 removes the state income tax deduction for certain campaign contributions, effective January 1, 2011.

CSC NEWSLETTER SENT BY E-MAIL

The distribution of paper copies of the CSC Newsletter is projected to end sometime in 2011 because the newsletter will be sent by e-mail.  When the system to subscribe-unsubscribe to e-mail is completed, you will receive instructions on signing-up on our website to receive notice of and links to the newsletters by e-mail.  Notices of the newsletter, courtesy reporting deadline reminders, and other announcements will be sent via e-mail. The newsletter also will be available on our website by clicking on “Newsletter” at the top of the Commission’s homepage at www.hawaii.gov/campaign.

EXECUTIVE DIRECTOR APPLICATIONS

Applications for the position of Executive Director of the Campaign Spending Commission are being accepted up to 12:00 p.m. on July 30, 2010.  Executive Director Wong is retiring on October 31, 2010.  The hire date is projected to be November 1, 2010.  For more information, go to www.hawaii.gov/campaign.

CSC Reports
Next report due for:
Candidates
Supplemental/1st Preliminary Primary-August 2, 2010

Noncandidate Committee
Preliminary Primary-September 8, 2010

CSC Meetings
July 14, 2010
August 11, 2010
September 9, 2010
October 13, 2010
November 10, 2010
December 15, 2010

NEW RULES

Two chapters of Hawaii Administrative Rules which contained the Commission’s prior rules were repealed and replaced with new rules effective May 29, 2010. The new rules conform to changes in the statutes since 2002, which is the last time the rules were amended.  Principles and examples drawn from Advisory Opinions were added to the rules.  The rules also include provisions which clarify: the attribution of contributions for partnerships; contributions by limited liability companies, limited partnerships, limited liability partnerships, limited liability limited partnerships, and a sole proprietor; and the definition of “personal services” for purposes of the government contractor prohibition.  See the new rules at www.hawaii.gov/campaign, under “Guide to the Law,” click “Hawaii Administrative Rules,” then click Chapter 3-160 and/or 3-161.  A public hearing was held on April 19, 2010, by the Commission’s staff. On May 12, 2010, the Commission adopted the rules and the rules were approved by the Governor.

HAWAII COUNTY COUNCIL COMPREHENSIVE PUBLIC FUNDING PROJECT RULES

The Commission has new rules that are applicable only to the Hawaii County Council Comprehensive Public Funding project. The effective date of the rules is March 8, 2010. The rules are available at www.hawaii.gov/campaign, under “Guide to the Law,” click “Hawaii Administrative Rules,” then click Chapter 162.  A public hearing was held on January 27, 2010, by the Commission’s staff.  On February 10, 2010, the Commission adopted the rules and the rules were approved by the Governor.

HAWAII COUNTY COUNCIL COMPREHENSIVE PUBLIC FUNDING PROJECT PILOT

Several hundred hours were spent by the Commission’s staff to develop the HCCCPF. Act 244 of the 2008 legislature which authorized the HCCCPF was an unfunded mandate.   To develop the HCCCPF, staff, among other things, was required to review and understand the Act, research numerous questions, develop training classes, prepare powerpoint presentations, develop a guidebook, work with the Hawaii County Clerk’s office to coordinate the processing of applications, draft rules, notice and hold a public hearing, make an e-learning video, research and draft FAQs, answer questions, draft letters, process applications, certify candidates, modify the Candidate Filing System and Noncandidate Committee Filing System and issue funds. This was the start of the program.

To date, 6 candidates have been certified to receive comprehensive public funds, and 5 are incumbents.  Also, 16 Declarations of Intent to Seek Comprehensive Public Funding were filed by the June 21, 2010 deadline.  So far, $55,676.90 in comprehensive public funding has been provided.

TOTAL ADMINISTRATIVE FINES IMPOSED IN FISCAL YEAR 2010 – $61,528.54

Violation(s) – $Fine

         6 excess loans/2 false reports – $50,000
         1 excess contribution – $560
         Prohibited contributions by Gov’t contractor – $675
         2 excess non-resident contributions – $375
         Failure to register committee timely – $50
         Failure to amend registration timely – $50
         Failure to deposit contributions timely – $50
         10 Late fundraiser notices – $500
         Late reports – $9,218.54
         2 Advertisement violations – $50

STATUS OF E-MAIL SUBSCRIBE/UNSUBSCRIBE

Blades servers and Virtual Machine software were purchased to ensure that there was sufficient capacity and speed to run this system and our other programs. The State’s Information and Communications Division located a rack for the servers and will be building the subscribe-unsubscribe e-mail system.  ICSD lost 54 people in 2009, so we have pushed back our expected start date to 2011.

ANNUAL REPORT FOR FISCAL YEAR 2010

Our Annual Report FY10 will be available on our website homepage after August 11, 2010.

IMPORTANT REMINDERS

*No donations from campaign funds may be made to community organizations once nomination papers are filed through the date of the general election (November 2).

*Did you know that if you have a website, it must be listed on your Organizational report?  This law was passed by the 2000 legislature.

*Did you know that any donations of food and/or beverage to community organizations, schools, etc. is reported as a community donation and counts toward your community donation limit.  It is not reported as an expenditure for food and beverages.