CONFERENCE COMMITTEE REPORT NO.______

                            Honolulu, Hawaii
                                            , 1999

                            RE:   H.B. No. 165
                                  H.D. 1
                                  S.D. 1
                                  C.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
House of Representatives to the amendments proposed by the Senate
in H.B. No. 165, H.D. 1, S.D. 1, entitled:

    "A BILL FOR AN ACT RELATING TO ELECTIONS,"

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this bill is to subject political parties to
the same contribution limits applicable to other persons and
entities.  In addition, the bill reduces the maximum allowable
contribution to a political party to $25,000.

     Your Committee finds that thoughtful campaign spending laws
are vital to reduce abuses and preserve the integrity of public
elections.  This bill will prevent the use of any local political
party to circumvent contribution limits by individuals or other
entities to candidates for elective office.


 
 
 
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     Your Committee further finds that political parties serve a
vital role in the elections process.  The importance of party
building, voter registration and educational and organizational
activities are necessary ingredients to ensure the health of the
electoral process.

     Your Committee has amended this bill by:

     (1) Including within the definition of "contribution" for
         election campaign purposes:

         (A)  Gifts to committees for political purposes; and

         (B)  The payment by a political party or other entity of
              compensation for services rendered at no charge or
              at an unreasonably low charge for political
              purposes;

     (2) Inserting a definition of "political committees
         established and maintained by a national political
         party"; and

     (3) Allowing the above mentioned entities to contribute an
         aggregate contribution amount up to $50,000 to a
         political party in any two year election period.

     This bill modifies the existing law in ways that will help
to curb abuses in the area of contributions.  Under the current
law an individual can contribute up to $50,000 to the state party
per election cycle.  The provisions of this bill lower that
amount to $25,000.  To further ensure that a state party is not
utilized as a conduit for transferring funds that circumvent the
spirit of contribution limits, this bill substantially reduces
the amount the state party can contribute to a candidate.

     These changes allow the national party to provide vital
financial support to local parties.  With new restrictions in
place regarding the expenditure of such funds by the local party,
the use of a political party to circumvent the campaign spending
contribution limits to individual candidates is effectively
removed.

 
 
 
 
 
 
 
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     Your Committee on Conference is in accord with the intent
and purpose of H.B. No. 165, H.D. 1, S.D. 1, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as H.B. No. 165, H.D. 1, S.D. 1, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
           SENATE                              HOUSE
                                   
                                   
                                   
______________________________     ______________________________
AVERY CHUMBLEY, Co-Chair           PAUL T. OSHIRO, Chair
                                   
                                   
                                   
______________________________     ______________________________
MATTHEW M. MATSUNAGA, Co-Chair     JERRY L. CHANG, Member
                                   
                                   
                                   
______________________________     ______________________________
LES IHARA, JR., Member             ERIC G. HAMAKAWA, Member
                                   
                                   
                                   
______________________________     ______________________________
NORMAN SAKAMOTO, Member            ROY M. TAKUMI, Member