HI
Hawaii Senate Bill SB997

Hawaii 2023 Regular Session

Hawaii Senate Bill SB997 Compare Versions

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11 THE SENATE S.B. NO. 997 THIRTY-SECOND LEGISLATURE, 2023 STATE OF HAWAII A BILL FOR AN ACT relating to elections. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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4747 SECTION 1. Chapter 11, Hawaii Revised Statutes, is amended by adding three new sections to be part XII, subpart H, to be appropriately designated and to read as follows: "§11-A Identification of certain top contributors. (a) Except as otherwise provided by this section, any expenditure for a communication funded by a noncandidate committee or created through any in-kind contribution received by a noncandidate committee shall include a notice that includes: (l) Any information required by section 11-391; and (2) For any communication that has: (A) A visual component, the communication shall clearly and conspicuously display the names of the top three donors who directly or indirectly donated $10,000 or more in original funds during the two-year election period to the noncandidate committee. This written notice shall start with the words, "The three top contributors who helped pay for this message are", followed by the names of the three top contributors as determined under subsection (d); and (B) An audio component, the communication shall clearly and conspicuously state the names of the top three donors who directly or indirectly donated $10,000 or more in original funds during the two-year election period to the noncandidate committee. This audio notice shall start with the words, "The three top contributors who helped pay for this message are", followed by the names of the three top contributors as determined under subsection (d). (b) For communications disseminated electronically and for which it is technologically impossible to include all of the information required by this section in a clear and conspicuous manner, the communication shall: (1) State the name of the person that paid for the communication; and (2) Include an active link for the recipient of the digital communication to immediately view the remainder of the information required under this section with minimal effort and without receiving or viewing any additional material other than the required information. (c) A communication disseminated by electronic means does not clearly and conspicuously state or display the information required under this section if it is difficult to read or hear or if its placement is easily overlooked. The notice in a communication disseminated electronically is made clearly and conspicuously if the notice meets the following requirements: (1) In the case of a text or graphic communication, the notice: (A) Appears in letters at least as large as the majority of the text in the communication; (B) Is contained in a printed box set apart from the other contents of the communication; and (C) Is printed with a reasonable degree of color contrast between the background and the printed notice; (2) In the case of an audio communication, the notice is spoken in a clearly audible and intelligible manner at the beginning or end of the communication and lasts at least four seconds; and (3) In the case of a video communication that also includes audio, the notice: (A) Is included at either the beginning or the end of the communication; and (B) Is made both in a written format that meets the requirements of paragraph (1) and appears for at least four seconds, and in an audible format that meets the requirements of paragraph (2). In the case of any other type of communication, the notice is at least as clear and conspicuous as required for a notice under this section. In the case of a video communication that is shorter than ten seconds, the audible portion of the notice may be omitted. (d) For the purposes of determining the persons that are the top three contributors: (1) The top three contributors shall be determined by calculating the three contributors of traceable funds that have directly or indirectly contributed to the noncandidate committee the highest amounts of original funds during the two-year election period; (2) Contributions of traceable funds made in prior two-year election periods shall be considered to have been contributed in the current two-year election period if the contributor's aggregate contributions of original funds to the noncandidate committee constituted the majority of the noncandidate committee's traceable funds at the beginning of the two-year election period; (3) If multiple contributors have contributed identical amounts to a noncandidate committee so that there is no difference in the amounts contributed by the thirdhighest contributor and the fourth-highest or lower-level contributor, the contributor that most recently contributed to the noncandidate committee shall be deemed a top three contributor; (4) No contributor of traceable funds shall be deemed a top three contributor if the aggregate amount of the contributor's contributions of original funds to the noncandidate committee during the two-year election period is less than $10,000; and (5) To the extent that fewer than three contributors meet the $10,000 threshold, an intermediary that directly or indirectly transferred at least $10,000 in traceable funds to the noncandidate committee during the two-year election period shall be treated as the original source of funds for the purposes of the notice required by this section. §11-B Structured transactions; prohibited. No person shall structure or assist in structuring, or attempt to structure or assist in structuring, any solicitation, contribution, expenditure, disbursement, or other transaction to evade the requirements of this chapter. §11-C Penalties. Any person who violates this subpart, any rule adopted by the commission, or the reporting requirements under section 11-335(b)(8) or section 11-341(b)(9), shall pay an administrative fine in an amount not less than the amount contributed or spent in violation of this subpart or the reporting requirements, nor more than twice the amount contributed or spent in violation of this subpart or the reporting requirements; provided that if the amount contributed or spent in violation of this subpart or the reporting requirements was less than $5,000, the maximum fine shall be $10,000." SECTION 2. Section 11-302, Hawaii Revised Statutes, is amended as follows: 1. By adding seven new definitions to be appropriately inserted and to read: ""Business income" means: (1) Funds received by a person in commercial transactions in the ordinary course of the person's regular trade, business, or investments; or (2) Membership or union dues to the extent that they do not exceed $5,000 from any person in a calendar year. "Identity" means: (1) In the case of an individual, the name, address, occupation, and employer of the individual; or (2) In the case of a person other than an individual, the full name, address, federal tax status, and state in which the person is registered as a partnership, incorporated, or organized as a limited liability company, if applicable. "Noncandidate committee making only independent expenditures" means a noncandidate committee that makes independent expenditures and does not: (1) Make contributions to any candidate, candidate committee, or noncandidate committee, other than contributions to another noncandidate committee making only independent expenditures or to a ballot issue committee; or (2) Engage in coordinated activity, as defined in section 11-363, other than coordinated activity with another noncandidate committee making only independent expenditures or with a ballot issue committee. "Original funds" means the business income of a person or an individual's own funds. "Own funds" means: (l) Any asset over which an individual had legal control and rightful title at the time the individual made expenditures or transferred funds to another person for that spending; (2) Income received by an individual, including: (A) Any salary or other earned income from bona fide employment; (B) Dividends and proceeds from the individual's personal investments; and (C) Bequests to the individual, including income from trusts established by bequests; and (3) Of the assets that are jointly owned by the individual and the individual's spouse, the portion that is: (A) Equal to the individual's share of the asset under the instrument of conveyance or ownership; or (B) The value of one-half of the property, if no specific share is indicated by an instrument of conveyance or ownership. "Own funds" does not include any asset or income received from any person for the purpose of influencing any election. "Traceable funds" means funds that: (1) Have been given to a noncandidate committee making only independent expenditures and over which the donor has not exercised the option to exclude from the use or transfer of funds for independent expenditures; or (2) Are used to finance in-kind contributions to a noncandidate committee making only independent expenditures to enable independent expenditures. "Transfer record" means a written record of identity of the persons who directly or indirectly contributed or transferred original funds used for independent expenditures, the amounts of those contributions or transfers, and how those funds are disbursed." 2. By amending the definitions of "donation" and donor" to read: ""Donation" means all transfers of money, credit or debit card transactions, online payments, payments made through a third party, paid personal services, or transfers of any other thing of value [to a nonprofit organization.] other than through commercial transactions in the ordinary course of business. "Donor" means a person that makes a donation to a [nonprofit organization subject to this chapter and operating as a] noncandidate committee." 3. By amending the definition of "electioneering communication" to read: ""Electioneering communication": (1) Means any paid advertisement that is broadcast from a cable, satellite, television, or radio broadcast station; published in any periodical or newspaper or by electronic means; or sent by mail, and that: (A) Refers to a clearly identifiable candidate; (B) Is made, or scheduled to be made, either within thirty days before a primary or initial special election or within sixty days before a general or special election[;] for the office sought by the candidate; and (C) Is [not susceptible to any reasonable interpretation other than as an appeal to vote for or against a specific candidate;] disseminated in the jurisdiction where the candidate's election is taking place; and (2) Shall not include communications: (A) In a news story or editorial disseminated by any broadcast station, publisher of periodicals or newspapers, or by electronic means, unless the facilities are owned or controlled by a candidate, candidate committee, or noncandidate committee; (B) In house bulletins; or (C) That constitute a candidate debate or forum, or solely promote a debate or forum and are made by or on behalf of the person or organization sponsoring the debate or forum." 4. By amending the definition of "expenditure" to read: ""Expenditure" means: (1) Any purchase or transfer of money or anything of value, or promise or agreement to purchase or transfer money or anything of value, or payment incurred or made, or the use or consumption of a nonmonetary contribution for the purpose of: (A) Influencing the nomination for election, or the election, of any person seeking nomination for election or election to office, whether or not the person has filed the person's nomination papers[;] including: (i) Communications or activities that constitute express advocacy or the functional equivalent of express advocacy; (ii) Communications that advocate or support the nomination, opposition, or election of a candidate, regardless of whether the communication expressly advocates the election or defeat of a candidate; and (iii) Partisan voter activity, partisan voter registration, partisan get-out-the-vote activity, or other partisan campaign-related activity; (B) Influencing the outcome of any question or issue that has been certified to appear on the ballot at the next applicable election[; or], including communications that advocate the passage or defeat of an issue or question on the ballot; (C) Use by any party for the purposes set out in subparagraph (A) or (B); or (D) Research, design, production, polling, data analytics, mailing or social media list acquisition, or other activities conducted in preparation for or conjunction with communications or activities described in this paragraph. (2) Any payment, by any person other than a candidate, candidate committee, or noncandidate committee, of compensation for the services of another person that are rendered to the candidate, candidate committee, or noncandidate committee for any of the purposes mentioned in paragraph (1)[(A)]; provided that payment under this paragraph shall include provision of services without charge; or (3) The expenditure by a candidate of the candidate's own funds for the purposes set out in [paragraph] paragraphs (1)(A)[.] and (D) regarding the candidate's own election. "Expenditure" does not include: (1) Services voluntarily provided without compensation by individuals to or on behalf of a candidate, candidate committee, or noncandidate committee; (2) Voter registration efforts that are nonpartisan; or (3) An individual, candidate committee, or noncandidate committee engaging in internet activities for the purpose of influencing an election if: (A) The individual, candidate committee, or noncandidate committee is uncompensated for internet activities; or (B) The individual, candidate committee, or noncandidate committee uses equipment or services for uncompensated internet activities, regardless of who owns the equipment and services; provided that the internet activity exclusion does not apply to any payment for an advertisement other than a nominal fee; the purchase or rental of an electronic address list made at the direction of a candidate committee or noncandidate committee; or an electronic mail address list that is transferred to a candidate committee or noncandidate committee." 5. By amended the definition of "independent expenditure" to read: ""Independent expenditure" means an expenditure by a person [expressly advocating the election or defeat of a clearly identified candidate] that is not made in concert or cooperation with or at the request or suggestion of the candidate, the candidate committee, a party, or their agents." SECTION 3. Section 11-335, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: "(b) Schedules filed with the reports shall include the following additional information: (1) The amount and date of deposit of each contribution received and the name, address, occupation, and employer of each contributor making a contribution aggregating more than $100 during an election period, which was not previously reported pursuant to this section; provided that if[: (A) All] all the information is not on file, the contribution shall be returned to the contributor within thirty days of deposit; [and (B) A noncandidate committee making only independent expenditures receives a contribution of more than $10,000 in the aggregate in an election period from an entity other than an individual, for-profit business entity, or labor union, then the schedule shall include: (i) The internet address where the contributing entity's disclosure report can be publicly accessed, if the contributing entity is subject to state or federal disclosure reporting requirements regarding the source of the contributing entity's funds; (ii) The name, address, occupation, and employer of each funding source that contributed $100 or more in the aggregate in an election period to that contributing entity; or (iii) An acknowledgment that the contributing entity is not subject to any state or federal disclosure reporting requirements regarding the source of the contributing entity's funds;] (2) The amount and date of each contribution made and the name and address of the candidate, candidate committee, or noncandidate committee to which the contribution was made; (3) All expenditures, including the [name and address] identity of each payee, including any subvendors, and the amount, date, and purpose of each expenditure; provided that: (A) Expenditures for advertisements or disbursements for electioneering communications shall include the names of the candidates supported, opposed, or clearly identified; (B) Expenditures for consultants, advertising agencies and similar firms, credit card payments, and salaries shall be itemized to permit a reasonable person to determine the ultimate intended recipient of the expenditure and its purpose; (C) Independent expenditures shall include the name of any candidate supported, opposed, or clearly identified; and (D) The purpose of an independent expenditure shall include the name of the candidate who is supported or opposed by the expenditure, and whether the expenditure supports or opposes the candidate; (4) For noncandidate committees making only independent expenditures, certification that no expenditures have been coordinated with a candidate, candidate committee, [or] any agent of a candidate or candidate committee[;], a noncandidate committee other than a noncandidate committee making only independent expenditures or a ballot issue committee, or an agent of a noncandidate committee other than a noncandidate committee making only independent expenditures or a ballot issue committee; (5) The amount, date of deposit, and description of other receipts and the name and address of the source of each of the other receipts; (6) A description of each durable asset, the date of acquisition, value at the time of acquisition, and the name and address of the vendor or contributor of the asset; (7) The date of disposition of a durable asset, value at the time of disposition, method of disposition, and name and address of the person receiving the asset; and (8) For [donations received by a nonprofit organization subject to this chapter and operating as] a noncandidate committee, all of the following: (A) The total amount of traceable funds owned or controlled by the noncandidate committee on the date of the report; (B) Each contributor of original funds that has directly or indirectly contributed more than $5,000 of traceable funds or funds used to enable in-kind contributions during the two-year election period to the noncandidate committee, and the amount and date of deposit of each [donation received and the name and address of each donor making a donation individually or aggregating more than $10,000 during an election period, which was not previously reported pursuant to this section; provided that a schedule filed pursuant to this section shall not include a donor if the donor has not provided consent pursuant to section 11-345.] of the contributor's contributions; (C) The identity of each person that acted as an intermediary and that transferred traceable funds in whole or in part from an original source to the noncandidate committee, and the date, amount, and original and intermediate sources of the transferred funds; and (D) The identity of any person that was the contributor of the majority of the traceable funds in the noncandidate committee's custody at the beginning of the two-year election period." SECTION 4. Section 11-338, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows: "(b) The late contribution report shall include the following information: (1) Name, address, occupation, and employer of the contributor; (2) Name of the candidate, candidate committee, or noncandidate committee making or receiving the contribution; [provided that, for noncandidate committees making only independent expenditures, if a late contribution greater than $5,000 in the aggregate is received from an entity other than an individual, for-profit business entity, or labor union, then the report shall include: (A) The internet address where the contributing entity's disclosure report can be publicly accessed, if the contributing entity is subject to any state or federal disclosure reporting requirements regarding the source of the contributing entity's funds; (B) The name, address, occupation, and employer of each funding source of more than $100 in the aggregate to that contributing entity; or (C) An acknowledgment that the contributing entity is not subject to any state or federal disclosure reporting requirements regarding the source of the contributing entity's funds;] (3) The amount of the contribution received; (4) The amount of the contribution made; (5) The contributor's aggregate contributions to the candidate, candidate committee, or noncandidate committee; and (6) The purpose, if any, to which the contribution will be applied, including, for contributions to a noncandidate committee, the name of any candidate supported, opposed, or clearly identified[; and (7) For a nonprofit organization filing a late contribution report, the amount and date of deposit of each donation received and the name and address of each donor making a donation individually or aggregating more than $10,000 during an election period, which was not previously reported pursuant to section 11-335; provided that a schedule filed pursuant to this section shall not include a donor if the donor has not provided consent pursuant to section 11-345]. (c) A noncandidate committee that makes independent expenditures in an aggregate amount of more than $500 within the period between fourteen and four calendar days prior to any election shall file a late expenditure report by means of the commission's electronic filing system on or before the third calendar day prior to the election. The late expenditure report shall include the following information for each expenditure: (1) The amount and date made; (2) The vendor name, address, and contact information; [and] (3) The purpose, including the name of any candidate supported, opposed, or clearly identified by the expenditure[.]; and (4) For a noncandidate committee, information regarding original sources of funds." SECTION 5. Section 11-341, Hawaii Revised Statutes, is amended as follows: 1. By amending subsections (a) and (b) to read: "(a) Each person who makes [an expenditure] a disbursement for electioneering communications in an aggregate amount of more than [$1,000] $2,000 during any calendar year shall file with the commission a statement of information within twenty-four hours of each disclosure date provided in this section. (b) Each statement of information shall contain the following: (1) The name of the person making the [expenditure,] disbursement, name of any person or entity sharing or exercising discretion or control over the person, and the custodian of the books and accounts of the person making the [expenditure;] disbursement; (2) The names and titles of the executives or board of directors who authorized the [expenditure,] disbursement, if the [expenditure] disbursement was made by a noncandidate committee, business entity, or an organization; (3) The state of incorporation or formation and principal address of the noncandidate committee, business entity, or organization or for an individual, the name, address, occupation, and employer of the individual making the [expenditure;] disbursement; (4) The amount of each [expenditure] disbursement during the period covered by the statement of information and the identification of the person to whom the [expenditure] disbursement was made; (5) The elections to which the electioneering communications pertain and the names of any clearly identifiable candidates and whether those candidates are supported or opposed; (6) If the [expenditures] disbursement were made by a noncandidate committee, the names and addresses of all persons who contributed to the noncandidate committee for the purpose of publishing or broadcasting the electioneering communications; (7) If the [expenditures] disbursement were made by an organization other than a noncandidate committee, the names and addresses of all persons who contributed to the organization for the purpose of publishing or broadcasting the electioneering communications; [(8) If the expenditures were made by a nonprofit organization, the amount and date of the deposit of each donation received and the name and address of each donor making a donation individually or aggregating more than $10,000 during an election period, which was not previously reported pursuant to section 11-335; provided that a schedule filed pursuant to this section shall not include a donor's name or address if the donor has not provided consent pursuant to section 11-345; (9)] (8) Whether any electioneering communication is made in coordination, cooperation, or concert with or at the request or suggestion of any candidate, candidate committee, or noncandidate committee, or agent of any candidate if any, and if so, the identification of the candidate, candidate committee, or noncandidate committee, or agent involved; and [(10)] (9) The three top contributors as required under section [11-393,] 11-A if applicable." 2. By amending subsection (e) to read: "(e) For purposes of this section, a person shall be treated as having made [an expenditure] a disbursement if the person has executed a contract to make the [expenditure.] disbursement." SECTION 6. Section 11-345, Hawaii Revised Statutes, is amended to read as follows: "[[]§11-345[]] Donors; consent; notice. (a) A [nonprofit organization subject to this chapter and operating as a] noncandidate committee [may use a donation for electioneering communications, independent expenditures, or contributions only upon receipt of written consent from the donor to use the donation for electioneering communications, independent expenditures, or contributions.] making only independent expenditures and that spends more than $10,000 in a two-year election period or accepts more than $10,000 of in-kind contributions in a two-year election period shall maintain transfer records. (b) A [nonprofit organization subject to this chapter and operating as a] noncandidate committee subject to subsection (a) shall provide written notice to donors that the donor's donations may be used for independent expenditures in the State and that the donor's name, [and] address, and other information may be reported pursuant to this chapter in a public document [if the donor provides written consent to use the donation for electioneering communications, independent expenditures, or contributions]. The notice may be provided before, after, or at the same time the noncandidate committee receives the donation and shall inform the donor that the donor may exclude the donation from the intended use or transfer for independent expenditures or electioneering communications by providing a written request within twenty-one days after the donor's receipt of the notice. The donor's donations shall not be used or transferred for independent expenditures or electioneering communications until the twenty-second day after the donor receives the notice or after the donor provides written consent for the intended use or transfer, whichever occurs first. (c) If the donor [fails to provide written consent that the donation may be used for electioneering communications,] notifies the noncandidate committee that the donation must be excluded from use or transfer by the committee for independent expenditures, or [contributions,] electioneering communications, the [nonprofit organization] noncandidate committee shall, within thirty days of receipt of the donation, transmit to the donor a written [confirmation by the nonprofit organization's highest ranking official that the donation will not be used for electioneering communications, independent expenditures, or contributions; and the name and address of the donor will not be reported by the nonprofit organization pursuant to this chapter.] receipt acknowledging the donor's decision to exclude the donation from that spending. (d) [Only a nonprofit organization subject to this chapter and operating as a noncandidate committee shall be subject to the reporting requirements of this section.] Any person that contributes at least $10,000 in the aggregate in traceable funds in a two-year election period to a noncandidate committee subject to subsection (a) shall inform the noncandidate committee, within ten days of receiving a written request from the noncandidate committee, of the identity of any person that directly or indirectly contributed at least $1,000 in original funds transferred, the amounts of the person's original funds transferred, and any person that previously transferred the original funds. If more than one transfer has previously occurred, the contributor shall disclose all the previous transfers and intermediaries. The contributor shall maintain these records for at least five years and shall provide them to the commission upon request. (e) Any person that makes an in-kind contribution to a noncandidate committee subject to subsection (a) of at least $10,000 in a two-year election period to enable independent expenditures shall inform the noncandidate committee, at the time the in-kind contribution is made or promised to be made, of the identity of any person that directly or indirectly contributed or provided at least $1,000 in original funds to finance the in-kind contribution, the amounts of funds used from each person's original funds, and any person who had previously transferred the original funds. If more than one transfer previously occurred, the in-kind contributor shall disclose all the previous transfers and intermediaries. The in-kind contributor shall maintain these records for at least five years and shall provide them to the commission upon request. (f) A noncandidate committee subject to subsection (a) that is required to file a late expenditure report under section 11-338 shall include the information required to be reported pursuant to section 11-335(b)(8); provided that such information is updated as of the date of the late expenditure report." SECTION 7. Section 11-391, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) Any paid advertisement that is broadcast, televised, circulated, published, distributed, or otherwise communicated, including by electronic means, shall: (1) Contain the name and address of the candidate, candidate committee, noncandidate committee, or other person paying for the advertisement; (2) Contain a notice in a prominent location stating either that: (A) The advertisement has the approval and authority of the candidate; provided that an advertisement paid for by a candidate, candidate committee, or ballot issue committee does not need to include the notice; or (B) The advertisement has not been approved by the candidate; and (3) Not contain false information about the time, date, place, or means of voting." SECTION 8. Section 11-393, Hawaii Revised Statutes, is repealed. ["§11-393 Identification of certain top contributors to noncandidate committees making only independent expenditures. (a) An advertisement shall contain an additional notice in a prominent location immediately after or below the notices required by section 11-391, if the advertisement is broadcast, televised, circulated, or published, including by electronic means, and is paid for by a noncandidate committee that certifies to the commission that it makes only independent expenditures. This additional notice shall start with the words, "The three top contributors for this advertisement are", followed by the names of the three top contributors, as defined in subsection (e), who made the highest aggregate contributions to the noncandidate committee for the purpose of funding the advertisement; provided that: (1) If a noncandidate committee is only able to identify two top contributors who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The two top contributors for this advertisement are", followed by the names of the two top contributors; (2) If a noncandidate committee is able to identify only one top contributor who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The top contributor for this advertisement is", followed by the name of the top contributor; (3) If a noncandidate committee is unable to identify any top contributors who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The three top contributors for this noncandidate committee are", followed by the names of the three top contributors who made the highest aggregate contributions to the noncandidate committee; and (4) If there are no top contributors to the noncandidate committee, the noncandidate committee shall not be subject to this section. In no case shall a noncandidate committee be required to identify more than three top contributors pursuant to this section. (b) If a noncandidate committee has more than three top contributors who contributed in equal amounts, the noncandidate committee may select which of the top contributors to identify in the advertisement; provided that the top contributors not identified in the advertisement did not make a higher aggregate contribution than those top contributors who are identified in the advertisement. The additional notice required for noncandidate committees described under this subsection shall start with the words "Three of the top contributors for this advertisement are" or "Three of the top contributors to this noncandidate committee are", as appropriate, followed by the names of the three top contributors. (c) This section shall not apply to advertisements broadcast by radio or television of such short duration that including a list of top contributors in the advertisement would constitute a hardship to the noncandidate committee paying for the advertisement. A noncandidate committee shall be subject to all other requirements under this part regardless of whether a hardship exists pursuant to this subsection. The commission shall adopt rules pursuant to chapter 91 to establish criteria to determine when including a list of top contributors in an advertisement of short duration constitutes a hardship to a noncandidate committee under this subsection. (d) Any noncandidate committee that violates this section shall be subject to a fine under section 11-410. (e) For purposes of this section, "top contributor" means a contributor who has contributed an aggregate amount of $10,000 or more to a noncandidate committee within a twelve-month period before the purchase of an advertisement."] SECTION 9. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act. SECTION 10. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable. SECTION 11. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 12. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________
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4949 SECTION 1. Chapter 11, Hawaii Revised Statutes, is amended by adding three new sections to be part XII, subpart H, to be appropriately designated and to read as follows:
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5151 "§11-A Identification of certain top contributors. (a) Except as otherwise provided by this section, any expenditure for a communication funded by a noncandidate committee or created through any in-kind contribution received by a noncandidate committee shall include a notice that includes:
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5353 (l) Any information required by section 11-391; and
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5555 (2) For any communication that has:
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5757 (A) A visual component, the communication shall clearly and conspicuously display the names of the top three donors who directly or indirectly donated $10,000 or more in original funds during the two-year election period to the noncandidate committee. This written notice shall start with the words, "The three top contributors who helped pay for this message are", followed by the names of the three top contributors as determined under subsection (d); and
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5959 (B) An audio component, the communication shall clearly and conspicuously state the names of the top three donors who directly or indirectly donated $10,000 or more in original funds during the two-year election period to the noncandidate committee. This audio notice shall start with the words, "The three top contributors who helped pay for this message are", followed by the names of the three top contributors as determined under subsection (d).
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6161 (b) For communications disseminated electronically and for which it is technologically impossible to include all of the information required by this section in a clear and conspicuous manner, the communication shall:
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6363 (1) State the name of the person that paid for the communication; and
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6565 (2) Include an active link for the recipient of the digital communication to immediately view the remainder of the information required under this section with minimal effort and without receiving or viewing any additional material other than the required information.
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6767 (c) A communication disseminated by electronic means does not clearly and conspicuously state or display the information required under this section if it is difficult to read or hear or if its placement is easily overlooked. The notice in a communication disseminated electronically is made clearly and conspicuously if the notice meets the following requirements:
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6969 (1) In the case of a text or graphic communication, the notice:
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7171 (A) Appears in letters at least as large as the majority of the text in the communication;
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7373 (B) Is contained in a printed box set apart from the other contents of the communication; and
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7575 (C) Is printed with a reasonable degree of color contrast between the background and the printed notice;
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7777 (2) In the case of an audio communication, the notice is spoken in a clearly audible and intelligible manner at the beginning or end of the communication and lasts at least four seconds; and
7878
7979 (3) In the case of a video communication that also includes audio, the notice:
8080
8181 (A) Is included at either the beginning or the end of the communication; and
8282
8383 (B) Is made both in a written format that meets the requirements of paragraph (1) and appears for at least four seconds, and in an audible format that meets the requirements of paragraph (2).
8484
8585 In the case of any other type of communication, the notice is at least as clear and conspicuous as required for a notice under this section. In the case of a video communication that is shorter than ten seconds, the audible portion of the notice may be omitted.
8686
8787 (d) For the purposes of determining the persons that are the top three contributors:
8888
8989 (1) The top three contributors shall be determined by calculating the three contributors of traceable funds that have directly or indirectly contributed to the noncandidate committee the highest amounts of original funds during the two-year election period;
9090
9191 (2) Contributions of traceable funds made in prior two-year election periods shall be considered to have been contributed in the current two-year election period if the contributor's aggregate contributions of original funds to the noncandidate committee constituted the majority of the noncandidate committee's traceable funds at the beginning of the two-year election period;
9292
9393 (3) If multiple contributors have contributed identical amounts to a noncandidate committee so that there is no difference in the amounts contributed by the thirdhighest contributor and the fourth-highest or lower-level contributor, the contributor that most recently contributed to the noncandidate committee shall be deemed a top three contributor;
9494
9595 (4) No contributor of traceable funds shall be deemed a top three contributor if the aggregate amount of the contributor's contributions of original funds to the noncandidate committee during the two-year election period is less than $10,000; and
9696
9797 (5) To the extent that fewer than three contributors meet the $10,000 threshold, an intermediary that directly or indirectly transferred at least $10,000 in traceable funds to the noncandidate committee during the two-year election period shall be treated as the original source of funds for the purposes of the notice required by this section.
9898
9999 §11-B Structured transactions; prohibited. No person shall structure or assist in structuring, or attempt to structure or assist in structuring, any solicitation, contribution, expenditure, disbursement, or other transaction to evade the requirements of this chapter.
100100
101101 §11-C Penalties. Any person who violates this subpart, any rule adopted by the commission, or the reporting requirements under section 11-335(b)(8) or section 11-341(b)(9), shall pay an administrative fine in an amount not less than the amount contributed or spent in violation of this subpart or the reporting requirements, nor more than twice the amount contributed or spent in violation of this subpart or the reporting requirements; provided that if the amount contributed or spent in violation of this subpart or the reporting requirements was less than $5,000, the maximum fine shall be $10,000."
102102
103103 SECTION 2. Section 11-302, Hawaii Revised Statutes, is amended as follows:
104104
105105 1. By adding seven new definitions to be appropriately inserted and to read:
106106
107107 ""Business income" means:
108108
109109 (1) Funds received by a person in commercial transactions in the ordinary course of the person's regular trade, business, or investments; or
110110
111111 (2) Membership or union dues to the extent that they do not exceed $5,000 from any person in a calendar year.
112112
113113 "Identity" means:
114114
115115 (1) In the case of an individual, the name, address, occupation, and employer of the individual; or
116116
117117 (2) In the case of a person other than an individual, the full name, address, federal tax status, and state in which the person is registered as a partnership, incorporated, or organized as a limited liability company, if applicable.
118118
119119 "Noncandidate committee making only independent expenditures" means a noncandidate committee that makes independent expenditures and does not:
120120
121121 (1) Make contributions to any candidate, candidate committee, or noncandidate committee, other than contributions to another noncandidate committee making only independent expenditures or to a ballot issue committee; or
122122
123123 (2) Engage in coordinated activity, as defined in section 11-363, other than coordinated activity with another noncandidate committee making only independent expenditures or with a ballot issue committee.
124124
125125 "Original funds" means the business income of a person or an individual's own funds.
126126
127127 "Own funds" means:
128128
129129 (l) Any asset over which an individual had legal control and rightful title at the time the individual made expenditures or transferred funds to another person for that spending;
130130
131131 (2) Income received by an individual, including:
132132
133133 (A) Any salary or other earned income from bona fide employment;
134134
135135 (B) Dividends and proceeds from the individual's personal investments; and
136136
137137 (C) Bequests to the individual, including income from trusts established by bequests; and
138138
139139 (3) Of the assets that are jointly owned by the individual and the individual's spouse, the portion that is:
140140
141141 (A) Equal to the individual's share of the asset under the instrument of conveyance or ownership; or
142142
143143 (B) The value of one-half of the property, if no specific share is indicated by an instrument of conveyance or ownership.
144144
145145 "Own funds" does not include any asset or income received from any person for the purpose of influencing any election.
146146
147147 "Traceable funds" means funds that:
148148
149149 (1) Have been given to a noncandidate committee making only independent expenditures and over which the donor has not exercised the option to exclude from the use or transfer of funds for independent expenditures; or
150150
151151 (2) Are used to finance in-kind contributions to a noncandidate committee making only independent expenditures to enable independent expenditures.
152152
153153 "Transfer record" means a written record of identity of the persons who directly or indirectly contributed or transferred original funds used for independent expenditures, the amounts of those contributions or transfers, and how those funds are disbursed."
154154
155155 2. By amending the definitions of "donation" and donor" to read:
156156
157157 ""Donation" means all transfers of money, credit or debit card transactions, online payments, payments made through a third party, paid personal services, or transfers of any other thing of value [to a nonprofit organization.] other than through commercial transactions in the ordinary course of business.
158158
159159 "Donor" means a person that makes a donation to a [nonprofit organization subject to this chapter and operating as a] noncandidate committee."
160160
161161 3. By amending the definition of "electioneering communication" to read:
162162
163163 ""Electioneering communication":
164164
165165 (1) Means any paid advertisement that is broadcast from a cable, satellite, television, or radio broadcast station; published in any periodical or newspaper or by electronic means; or sent by mail, and that:
166166
167167 (A) Refers to a clearly identifiable candidate;
168168
169169 (B) Is made, or scheduled to be made, either within thirty days before a primary or initial special election or within sixty days before a general or special election[;] for the office sought by the candidate; and
170170
171171 (C) Is [not susceptible to any reasonable interpretation other than as an appeal to vote for or against a specific candidate;] disseminated in the jurisdiction where the candidate's election is taking place; and
172172
173173 (2) Shall not include communications:
174174
175175 (A) In a news story or editorial disseminated by any broadcast station, publisher of periodicals or newspapers, or by electronic means, unless the facilities are owned or controlled by a candidate, candidate committee, or noncandidate committee;
176176
177177 (B) In house bulletins; or
178178
179179 (C) That constitute a candidate debate or forum, or solely promote a debate or forum and are made by or on behalf of the person or organization sponsoring the debate or forum."
180180
181181 4. By amending the definition of "expenditure" to read:
182182
183183 ""Expenditure" means:
184184
185185 (1) Any purchase or transfer of money or anything of value, or promise or agreement to purchase or transfer money or anything of value, or payment incurred or made, or the use or consumption of a nonmonetary contribution for the purpose of:
186186
187187 (A) Influencing the nomination for election, or the election, of any person seeking nomination for election or election to office, whether or not the person has filed the person's nomination papers[;] including:
188188
189189 (i) Communications or activities that constitute express advocacy or the functional equivalent of express advocacy;
190190
191191 (ii) Communications that advocate or support the nomination, opposition, or election of a candidate, regardless of whether the communication expressly advocates the election or defeat of a candidate; and
192192
193193 (iii) Partisan voter activity, partisan voter registration, partisan get-out-the-vote activity, or other partisan campaign-related activity;
194194
195195 (B) Influencing the outcome of any question or issue that has been certified to appear on the ballot at the next applicable election[; or], including communications that advocate the passage or defeat of an issue or question on the ballot;
196196
197197 (C) Use by any party for the purposes set out in subparagraph (A) or (B); or
198198
199199 (D) Research, design, production, polling, data analytics, mailing or social media list acquisition, or other activities conducted in preparation for or conjunction with communications or activities described in this paragraph.
200200
201201 (2) Any payment, by any person other than a candidate, candidate committee, or noncandidate committee, of compensation for the services of another person that are rendered to the candidate, candidate committee, or noncandidate committee for any of the purposes mentioned in paragraph (1)[(A)]; provided that payment under this paragraph shall include provision of services without charge; or
202202
203203 (3) The expenditure by a candidate of the candidate's own funds for the purposes set out in [paragraph] paragraphs (1)(A)[.] and (D) regarding the candidate's own election.
204204
205205 "Expenditure" does not include:
206206
207207 (1) Services voluntarily provided without compensation by individuals to or on behalf of a candidate, candidate committee, or noncandidate committee;
208208
209209 (2) Voter registration efforts that are nonpartisan; or
210210
211211 (3) An individual, candidate committee, or noncandidate committee engaging in internet activities for the purpose of influencing an election if:
212212
213213 (A) The individual, candidate committee, or noncandidate committee is uncompensated for internet activities; or
214214
215215 (B) The individual, candidate committee, or noncandidate committee uses equipment or services for uncompensated internet activities, regardless of who owns the equipment and services;
216216
217217 provided that the internet activity exclusion does not apply to any payment for an advertisement other than a nominal fee; the purchase or rental of an electronic address list made at the direction of a candidate committee or noncandidate committee; or an electronic mail address list that is transferred to a candidate committee or noncandidate committee."
218218
219219 5. By amended the definition of "independent expenditure" to read:
220220
221221 ""Independent expenditure" means an expenditure by a person [expressly advocating the election or defeat of a clearly identified candidate] that is not made in concert or cooperation with or at the request or suggestion of the candidate, the candidate committee, a party, or their agents."
222222
223223 SECTION 3. Section 11-335, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
224224
225225 "(b) Schedules filed with the reports shall include the following additional information:
226226
227227 (1) The amount and date of deposit of each contribution received and the name, address, occupation, and employer of each contributor making a contribution aggregating more than $100 during an election period, which was not previously reported pursuant to this section; provided that if[:
228228
229229 (A) All] all the information is not on file, the contribution shall be returned to the contributor within thirty days of deposit; [and
230230
231231 (B) A noncandidate committee making only independent expenditures receives a contribution of more than $10,000 in the aggregate in an election period from an entity other than an individual, for-profit business entity, or labor union, then the schedule shall include:
232232
233233 (i) The internet address where the contributing entity's disclosure report can be publicly accessed, if the contributing entity is subject to state or federal disclosure reporting requirements regarding the source of the contributing entity's funds;
234234
235235 (ii) The name, address, occupation, and employer of each funding source that contributed $100 or more in the aggregate in an election period to that contributing entity; or
236236
237237 (iii) An acknowledgment that the contributing entity is not subject to any state or federal disclosure reporting requirements regarding the source of the contributing entity's funds;]
238238
239239 (2) The amount and date of each contribution made and the name and address of the candidate, candidate committee, or noncandidate committee to which the contribution was made;
240240
241241 (3) All expenditures, including the [name and address] identity of each payee, including any subvendors, and the amount, date, and purpose of each expenditure; provided that:
242242
243243 (A) Expenditures for advertisements or disbursements for electioneering communications shall include the names of the candidates supported, opposed, or clearly identified;
244244
245245 (B) Expenditures for consultants, advertising agencies and similar firms, credit card payments, and salaries shall be itemized to permit a reasonable person to determine the ultimate intended recipient of the expenditure and its purpose;
246246
247247 (C) Independent expenditures shall include the name of any candidate supported, opposed, or clearly identified; and
248248
249249 (D) The purpose of an independent expenditure shall include the name of the candidate who is supported or opposed by the expenditure, and whether the expenditure supports or opposes the candidate;
250250
251251 (4) For noncandidate committees making only independent expenditures, certification that no expenditures have been coordinated with a candidate, candidate committee, [or] any agent of a candidate or candidate committee[;], a noncandidate committee other than a noncandidate committee making only independent expenditures or a ballot issue committee, or an agent of a noncandidate committee other than a noncandidate committee making only independent expenditures or a ballot issue committee;
252252
253253 (5) The amount, date of deposit, and description of other receipts and the name and address of the source of each of the other receipts;
254254
255255 (6) A description of each durable asset, the date of acquisition, value at the time of acquisition, and the name and address of the vendor or contributor of the asset;
256256
257257 (7) The date of disposition of a durable asset, value at the time of disposition, method of disposition, and name and address of the person receiving the asset; and
258258
259259 (8) For [donations received by a nonprofit organization subject to this chapter and operating as] a noncandidate committee, all of the following:
260260
261261 (A) The total amount of traceable funds owned or controlled by the noncandidate committee on the date of the report;
262262
263263 (B) Each contributor of original funds that has directly or indirectly contributed more than $5,000 of traceable funds or funds used to enable in-kind contributions during the two-year election period to the noncandidate committee, and the amount and date of deposit of each [donation received and the name and address of each donor making a donation individually or aggregating more than $10,000 during an election period, which was not previously reported pursuant to this section; provided that a schedule filed pursuant to this section shall not include a donor if the donor has not provided consent pursuant to section 11-345.] of the contributor's contributions;
264264
265265 (C) The identity of each person that acted as an intermediary and that transferred traceable funds in whole or in part from an original source to the noncandidate committee, and the date, amount, and original and intermediate sources of the transferred funds; and
266266
267267 (D) The identity of any person that was the contributor of the majority of the traceable funds in the noncandidate committee's custody at the beginning of the two-year election period."
268268
269269 SECTION 4. Section 11-338, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:
270270
271271 "(b) The late contribution report shall include the following information:
272272
273273 (1) Name, address, occupation, and employer of the contributor;
274274
275275 (2) Name of the candidate, candidate committee, or noncandidate committee making or receiving the contribution; [provided that, for noncandidate committees making only independent expenditures, if a late contribution greater than $5,000 in the aggregate is received from an entity other than an individual, for-profit business entity, or labor union, then the report shall include:
276276
277277 (A) The internet address where the contributing entity's disclosure report can be publicly accessed, if the contributing entity is subject to any state or federal disclosure reporting requirements regarding the source of the contributing entity's funds;
278278
279279 (B) The name, address, occupation, and employer of each funding source of more than $100 in the aggregate to that contributing entity; or
280280
281281 (C) An acknowledgment that the contributing entity is not subject to any state or federal disclosure reporting requirements regarding the source of the contributing entity's funds;]
282282
283283 (3) The amount of the contribution received;
284284
285285 (4) The amount of the contribution made;
286286
287287 (5) The contributor's aggregate contributions to the candidate, candidate committee, or noncandidate committee; and
288288
289289 (6) The purpose, if any, to which the contribution will be applied, including, for contributions to a noncandidate committee, the name of any candidate supported, opposed, or clearly identified[; and
290290
291291 (7) For a nonprofit organization filing a late contribution report, the amount and date of deposit of each donation received and the name and address of each donor making a donation individually or aggregating more than $10,000 during an election period, which was not previously reported pursuant to section 11-335; provided that a schedule filed pursuant to this section shall not include a donor if the donor has not provided consent pursuant to section 11-345].
292292
293293 (c) A noncandidate committee that makes independent expenditures in an aggregate amount of more than $500 within the period between fourteen and four calendar days prior to any election shall file a late expenditure report by means of the commission's electronic filing system on or before the third calendar day prior to the election. The late expenditure report shall include the following information for each expenditure:
294294
295295 (1) The amount and date made;
296296
297297 (2) The vendor name, address, and contact information; [and]
298298
299299 (3) The purpose, including the name of any candidate supported, opposed, or clearly identified by the expenditure[.]; and
300300
301301 (4) For a noncandidate committee, information regarding original sources of funds."
302302
303303 SECTION 5. Section 11-341, Hawaii Revised Statutes, is amended as follows:
304304
305305 1. By amending subsections (a) and (b) to read:
306306
307307 "(a) Each person who makes [an expenditure] a disbursement for electioneering communications in an aggregate amount of more than [$1,000] $2,000 during any calendar year shall file with the commission a statement of information within twenty-four hours of each disclosure date provided in this section.
308308
309309 (b) Each statement of information shall contain the following:
310310
311311 (1) The name of the person making the [expenditure,] disbursement, name of any person or entity sharing or exercising discretion or control over the person, and the custodian of the books and accounts of the person making the [expenditure;] disbursement;
312312
313313 (2) The names and titles of the executives or board of directors who authorized the [expenditure,] disbursement, if the [expenditure] disbursement was made by a noncandidate committee, business entity, or an organization;
314314
315315 (3) The state of incorporation or formation and principal address of the noncandidate committee, business entity, or organization or for an individual, the name, address, occupation, and employer of the individual making the [expenditure;] disbursement;
316316
317317 (4) The amount of each [expenditure] disbursement during the period covered by the statement of information and the identification of the person to whom the [expenditure] disbursement was made;
318318
319319 (5) The elections to which the electioneering communications pertain and the names of any clearly identifiable candidates and whether those candidates are supported or opposed;
320320
321321 (6) If the [expenditures] disbursement were made by a noncandidate committee, the names and addresses of all persons who contributed to the noncandidate committee for the purpose of publishing or broadcasting the electioneering communications;
322322
323323 (7) If the [expenditures] disbursement were made by an organization other than a noncandidate committee, the names and addresses of all persons who contributed to the organization for the purpose of publishing or broadcasting the electioneering communications;
324324
325325 [(8) If the expenditures were made by a nonprofit organization, the amount and date of the deposit of each donation received and the name and address of each donor making a donation individually or aggregating more than $10,000 during an election period, which was not previously reported pursuant to section 11-335; provided that a schedule filed pursuant to this section shall not include a donor's name or address if the donor has not provided consent pursuant to section 11-345;
326326
327327 (9)] (8) Whether any electioneering communication is made in coordination, cooperation, or concert with or at the request or suggestion of any candidate, candidate committee, or noncandidate committee, or agent of any candidate if any, and if so, the identification of the candidate, candidate committee, or noncandidate committee, or agent involved; and
328328
329329 [(10)] (9) The three top contributors as required under section [11-393,] 11-A if applicable."
330330
331331 2. By amending subsection (e) to read:
332332
333333 "(e) For purposes of this section, a person shall be treated as having made [an expenditure] a disbursement if the person has executed a contract to make the [expenditure.] disbursement."
334334
335335 SECTION 6. Section 11-345, Hawaii Revised Statutes, is amended to read as follows:
336336
337337 "[[]§11-345[]] Donors; consent; notice. (a) A [nonprofit organization subject to this chapter and operating as a] noncandidate committee [may use a donation for electioneering communications, independent expenditures, or contributions only upon receipt of written consent from the donor to use the donation for electioneering communications, independent expenditures, or contributions.] making only independent expenditures and that spends more than $10,000 in a two-year election period or accepts more than $10,000 of in-kind contributions in a two-year election period shall maintain transfer records.
338338
339339 (b) A [nonprofit organization subject to this chapter and operating as a] noncandidate committee subject to subsection (a) shall provide written notice to donors that the donor's donations may be used for independent expenditures in the State and that the donor's name, [and] address, and other information may be reported pursuant to this chapter in a public document [if the donor provides written consent to use the donation for electioneering communications, independent expenditures, or contributions]. The notice may be provided before, after, or at the same time the noncandidate committee receives the donation and shall inform the donor that the donor may exclude the donation from the intended use or transfer for independent expenditures or electioneering communications by providing a written request within twenty-one days after the donor's receipt of the notice. The donor's donations shall not be used or transferred for independent expenditures or electioneering communications until the twenty-second day after the donor receives the notice or after the donor provides written consent for the intended use or transfer, whichever occurs first.
340340
341341 (c) If the donor [fails to provide written consent that the donation may be used for electioneering communications,] notifies the noncandidate committee that the donation must be excluded from use or transfer by the committee for independent expenditures, or [contributions,] electioneering communications, the [nonprofit organization] noncandidate committee shall, within thirty days of receipt of the donation, transmit to the donor a written [confirmation by the nonprofit organization's highest ranking official that the donation will not be used for electioneering communications, independent expenditures, or contributions; and the name and address of the donor will not be reported by the nonprofit organization pursuant to this chapter.] receipt acknowledging the donor's decision to exclude the donation from that spending.
342342
343343 (d) [Only a nonprofit organization subject to this chapter and operating as a noncandidate committee shall be subject to the reporting requirements of this section.] Any person that contributes at least $10,000 in the aggregate in traceable funds in a two-year election period to a noncandidate committee subject to subsection (a) shall inform the noncandidate committee, within ten days of receiving a written request from the noncandidate committee, of the identity of any person that directly or indirectly contributed at least $1,000 in original funds transferred, the amounts of the person's original funds transferred, and any person that previously transferred the original funds. If more than one transfer has previously occurred, the contributor shall disclose all the previous transfers and intermediaries. The contributor shall maintain these records for at least five years and shall provide them to the commission upon request.
344344
345345 (e) Any person that makes an in-kind contribution to a noncandidate committee subject to subsection (a) of at least $10,000 in a two-year election period to enable independent expenditures shall inform the noncandidate committee, at the time the in-kind contribution is made or promised to be made, of the identity of any person that directly or indirectly contributed or provided at least $1,000 in original funds to finance the in-kind contribution, the amounts of funds used from each person's original funds, and any person who had previously transferred the original funds. If more than one transfer previously occurred, the in-kind contributor shall disclose all the previous transfers and intermediaries. The in-kind contributor shall maintain these records for at least five years and shall provide them to the commission upon request.
346346
347347 (f) A noncandidate committee subject to subsection (a) that is required to file a late expenditure report under section 11-338 shall include the information required to be reported pursuant to section 11-335(b)(8); provided that such information is updated as of the date of the late expenditure report."
348348
349349 SECTION 7. Section 11-391, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
350350
351351 "(a) Any paid advertisement that is broadcast, televised, circulated, published, distributed, or otherwise communicated, including by electronic means, shall:
352352
353353 (1) Contain the name and address of the candidate, candidate committee, noncandidate committee, or other person paying for the advertisement;
354354
355355 (2) Contain a notice in a prominent location stating either that:
356356
357357 (A) The advertisement has the approval and authority of the candidate; provided that an advertisement paid for by a candidate, candidate committee, or ballot issue committee does not need to include the notice; or
358358
359359 (B) The advertisement has not been approved by the candidate; and
360360
361361 (3) Not contain false information about the time, date, place, or means of voting."
362362
363363 SECTION 8. Section 11-393, Hawaii Revised Statutes, is repealed.
364364
365365 ["§11-393 Identification of certain top contributors to noncandidate committees making only independent expenditures. (a) An advertisement shall contain an additional notice in a prominent location immediately after or below the notices required by section 11-391, if the advertisement is broadcast, televised, circulated, or published, including by electronic means, and is paid for by a noncandidate committee that certifies to the commission that it makes only independent expenditures. This additional notice shall start with the words, "The three top contributors for this advertisement are", followed by the names of the three top contributors, as defined in subsection (e), who made the highest aggregate contributions to the noncandidate committee for the purpose of funding the advertisement; provided that:
366366
367367 (1) If a noncandidate committee is only able to identify two top contributors who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The two top contributors for this advertisement are", followed by the names of the two top contributors;
368368
369369 (2) If a noncandidate committee is able to identify only one top contributor who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The top contributor for this advertisement is", followed by the name of the top contributor;
370370
371371 (3) If a noncandidate committee is unable to identify any top contributors who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The three top contributors for this noncandidate committee are", followed by the names of the three top contributors who made the highest aggregate contributions to the noncandidate committee; and
372372
373373 (4) If there are no top contributors to the noncandidate committee, the noncandidate committee shall not be subject to this section.
374374
375375 In no case shall a noncandidate committee be required to identify more than three top contributors pursuant to this section.
376376
377377 (b) If a noncandidate committee has more than three top contributors who contributed in equal amounts, the noncandidate committee may select which of the top contributors to identify in the advertisement; provided that the top contributors not identified in the advertisement did not make a higher aggregate contribution than those top contributors who are identified in the advertisement. The additional notice required for noncandidate committees described under this subsection shall start with the words "Three of the top contributors for this advertisement are" or "Three of the top contributors to this noncandidate committee are", as appropriate, followed by the names of the three top contributors.
378378
379379 (c) This section shall not apply to advertisements broadcast by radio or television of such short duration that including a list of top contributors in the advertisement would constitute a hardship to the noncandidate committee paying for the advertisement. A noncandidate committee shall be subject to all other requirements under this part regardless of whether a hardship exists pursuant to this subsection. The commission shall adopt rules pursuant to chapter 91 to establish criteria to determine when including a list of top contributors in an advertisement of short duration constitutes a hardship to a noncandidate committee under this subsection.
380380
381381 (d) Any noncandidate committee that violates this section shall be subject to a fine under section 11-410.
382382
383383 (e) For purposes of this section, "top contributor" means a contributor who has contributed an aggregate amount of $10,000 or more to a noncandidate committee within a twelve-month period before the purchase of an advertisement."]
384384
385385 SECTION 9. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
386386
387387 SECTION 10. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
388388
389389 SECTION 11. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
390390
391391 SECTION 12. This Act shall take effect upon its approval.
392392
393393
394394
395395 INTRODUCED BY: _____________________________
396396
397397 INTRODUCED BY:
398398
399399 _____________________________
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417417 Report Title: Elections; Top Contributors; Donors; Noncandidate Committee; Identification Description: Requires notice and identification of certain top donors who contributed to a noncandidate committee. Changes the requirement of certain information from the schedules filed with the noncandidate committee reports. Removes certain information required for the late contribution report. Increases the amount of disbursement for electioneering communication that is required to be disclosed. Requires noncandidate committees that make only independent expenditures and spend over $10,000 to maintain transfer records and provide certain notice to donors. Repeals the top contribution identification requirement. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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423423 Report Title:
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425425 Elections; Top Contributors; Donors; Noncandidate Committee; Identification
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429429 Description:
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431431 Requires notice and identification of certain top donors who contributed to a noncandidate committee. Changes the requirement of certain information from the schedules filed with the noncandidate committee reports. Removes certain information required for the late contribution report. Increases the amount of disbursement for electioneering communication that is required to be disclosed. Requires noncandidate committees that make only independent expenditures and spend over $10,000 to maintain transfer records and provide certain notice to donors. Repeals the top contribution identification requirement.
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439439 The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.