RELATING TO CAMPAIGN FINANCE.

SB2794

THE SENATE

S.B. NO.

2794

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO CAMPAIGN FINANCE
.

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

����
SECTION 1.
�
The
legislature finds that the State's campaign finance law is complex, unduly punitive,
and produces a regulatory structure that often fails to inform and educate candidates
on proper procedures.
�
The legislature also
finds that these factors create barriers to citizen participation in the
political process, when the State should be taking steps to encourage such
participation.

����
The legislature further finds that the campaign
finance law needs to be clear to ensure its effective administration.

����
Accordingly, the purpose of this Act is to
amend the process relating to unfiled, substantially defective, and substantially
deficient campaign finance reports by:

����
(1)
�
Requiring
the campaign spending commission to send notices regarding unfiled, substantially
defective, and substantially deficient reports by certified mail;

����
(2)
�
Requiring
the campaign spending commission to specify in substantial defect and deficient
report notices the nature of any substantial defect or deficiency;

����
(3)
�
Allowing
recipients of substantial
defect and deficient report notices

to correct their reports up to ten business days after the receipt of the
notices; and

����
(4)
�
Defining
the terms "substantially defective" and "substantially deficient".

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SECTION 2.
�

Section 11-302, Hawaii Revised Statutes, is amended by adding two new
definitions to be appropriately inserted and to read as follows:

����
"
"Substantially
defective", and any variation of that term, means or refers to having one
or more material defects or flaws.

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"Substantially deficient", and
any variation of that term, means or refers to lacking necessary information.
"

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SECTION
3
.
�
Section 11-314, Hawaii Revised Statutes, is
amended to read as follows:

����
"
�
11-314
�
Duties of the commission.
�
The duties of the commission under this part
are to:

����
(1)
�
D
evelop and adopt forms required by
this part;

����
(2)
�
A
dopt and publish a manual for all
candidates, candidate committees, and noncandidate committees, describing the
requirements of this part, including uniform and simple methods of
recordkeeping;

����
(3)
�
P
reserve all reports required by this
part for at least ten years from the date of receipt by the commission;

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(4)
�
Permit
the inspection, copying, or duplication of any report required by this part
pursuant to rules adopted by the commission under chapter 91; provided that
this paragraph shall not apply to the sale or use of information under section
11-344;

����
(5)
�
[
Ascertain
whether
]
Take action pursuant to section 11-340 against
any
person [
has failed
]
for failing
to file a report required by this
part or [
has filed
]
for filing
a substantially defective or
deficient report[
.
�
The commission
shall notify the person by first class mail that a fine may be assessed for the
failure to file or the filing of a substantially defective or deficient report,
and the defective or deficient report shall be corrected and explained.
�
All fines collected under this section as
authorized by sections 11-340 and 11-410 shall be deposited in the general fund
of the State
];

����
(6)
�
H
old public hearings;

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(7)
�
I
nvestigate and hold hearings for
receiving evidence of any violations pursuant to subpart I of this part;

����
(8)
�
A
dopt rules pursuant to chapter 91;

����
(9)
�
R
equest the initiation of prosecution
for the violation of this part pursuant to section 11-411;

���
(10)
�
A
dminister and monitor the distribution
of public funds under this part;

���
(11)
�
S
uggest accounting methods for
candidates, candidate committees, or noncandidate committees in connection with
reports and records required by this part;

���
(12)
�
E
mploy or contract with, without regard
to chapters 76, 78, and 89, persons it finds necessary for the performance
of its functions, including a full-time executive director, and to fix their
compensation; provided that the commission shall have the authority, at its
discretion, to dismiss persons employed by or contracted with the commission;

���
(13)
�
Conduct
random audits and field
investigations, as necessary; [
and
]

���
(14)
�
F
ile for injunctive relief when
indicated[
.
]
; and

���
(15)
�
Ensure
that all fines collected pursuant to sections 11-340 and 11-410 are
deposited in the general fund of the State.
"

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SECTION
4
.
�
Section 11-340, Hawaii Revised Statutes, is
amended as follows:

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1.
�
By
amending subsection (b) to read:

����
"(b)
�

The fine for not filing a report by the due date, if assessed, shall not
exceed $50 per day for the first seven days, beginning with the day after the
due date of the report, and shall not exceed $200 per day thereafter; provided
that:

����
(1)
�
In
aggregate, the fine shall not exceed twenty-five per cent of the total amount
of contributions or expenditures, whichever is greater, for the period covered
by the report; [
and
]

����
(2)
�
The
minimum fine for a report filed more than four days after the due date, if
assessed, shall be $200[
.
]
; and

����
(3)
�
The
commission shall immediately remind the candidate committee or noncandidate committee
via certified mail of the due date missed, and the daily fines that will apply
until a report is filed.
"

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2.
�

By amending subsections (d) to (f) to read:

����
"(d)
�

If the commission determines that a report is substantially defective or
deficient, the commission shall notify the candidate
committee or noncandidate

committee by [
first class
]
certified
mail [
that
]:

����
(1)
�
[
The
]

That the
report is substantially defective or deficient; [
and
]

����
(2)
�
Of
the specific nature of the substantial defect or substantial deficiency; and

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[
(2)
�
A
]

(3)

�
That an uncorrected report

fine may be assessed[
.
]
pursuant to subsection (e) if the committee
fails to file a corrective action.

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(e)
�

If [
the
]
a
corrected report is not filed with the
commission's electronic filing system on or before the [
fourteenth
]
tenth
business
day after the notice of defect or deficiency has been [
mailed,
]

received by the candidate committee or noncandidate committee,
the
uncorrected
report
fine, if assessed, [
for a substantially defective or deficient
report
] shall not exceed $50 per
calendar
day for the first seven
calendar

days, beginning with the [
fifteenth
]
eleventh business
day after
the notice was [
sent,
]
received by the candidate committee,
and
shall not exceed $200 per
calendar
day thereafter; provided that:

����
(1)
�
In
aggregate, the
uncorrected report
fine shall not exceed twenty-five per
cent of the total amount of contributions or expenditures, whichever is
greater, for the period covered by the report; and

����
(2)
�
The
minimum
uncorrected report
fine for not filing a corrected report more
than [
eighteen
]

days after the
candidate committee's or noncandidate committee's receipt of
the
notice, if assessed, shall be $200.

����
(f)
�

The commission shall publish on its website the names of all candidate
and noncandidate committees that have failed to:

����
(1)
�
File
a report; or

����
(2)
�
[
Correct
a report within two weeks from the notice to correct provided by the
commission.
]
�
Timely file a
corrected report after receiving notice pursuant to subsection (e).
"

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SECTION 5.
�

This Act does not affect rights and duties that matured, penalties that
were incurred, and proceedings that were begun before its effective date.

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SECTION 6.
�

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

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SECTION 7.
�

This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Elections;
Campaign Finance; Reports; Defects; Deficiencies

Description:

Requires
the Campaign Spending Commission to send notices regarding unfiled,
substantially defective, and substantially deficient reports by certified mail.
�
Requires the Commission to specify in substantial
defect and deficient report notices the nature of any substantial defect or
deficiency.
�
Allows recipients of substantial
defect and deficient report notices to correct their reports up to 10 business
days after the receipt of the notices.
�

Defines the terms "substantially defective" and "substantially
deficient".

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