WHEREAS, elections constitute a fundamental part of our democracy; and

WHEREAS, modern election campaigns have become extremely expensive to run and are continuing to increase in cost; and

WHEREAS, donors who contribute large sums of money to political campaigns often gain greater access to elected officials than contributors who give smaller amounts; and

WHEREAS, a common public perception exists that large donors enjoy preferential treatment and are able to influence the decisions of elected officials in ways that ordinary citizens are not; and

WHEREAS, such popular beliefs, whether accurate or not, adversely affect the general public's attitude toward and participation in the electoral process, such as casting votes on election day; and

WHEREAS, over the years, many ways of reforming the campaign finance system have been suggested and implemented with varying degrees of success; and

WHEREAS, the concept of blind trust accounts is relatively new and seems to hold significant promise as a method for reform; and

WHEREAS, blind trust accounts operate on the principle of anonymous donations and replicate the privacy of the voting booth by creating a "donation booth"--a screen that compels donors to funnel campaign contributions through an intermediary; and

WHEREAS, a possible way for blind trust accounts to operate would be through a privatized system of blind trusts operated by established trust companies with substantial, preexisting assets; and

WHEREAS, all candidates, political parties, and political action committees (PACs) would be directed to establish blind trust accounts at qualified institutions; and

WHEREAS, all donations to candidates, political parties, and PACs would be required to be made by mail to the blind trusts; furthermore, campaigns would no longer be permitted to accept money in cash or by check; and

WHEREAS, the blind trusts would then report to the candidates on a weekly or biweekly basis the total amount that had been donated to them but not detail the identity of any individual donors; and

WHEREAS, representatives of the blind trusts could not be employed in positions affecting access to elected officials or influencing public policy and would be prohibited from communicating privately with candidates or campaign workers; and

WHEREAS, a system of blind trust accounts would impede improper quid pro quo conduct because candidates would be unable to determine who their donors are; and

WHEREAS, a system of blind trust accounts may help bolster public confidence in elected officials and the electoral system; and

WHEREAS, unlike other proposed reforms to the campaign finance system, blind trust accounts should be able to withstand constitutional scrutiny; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-second Legislature of the State of Hawaii, Regular Session of 2003, that the Legislative Reference Bureau is requested to perform a study concerning the use of blind trust accounts in election campaigns, including:

BE IT FURTHER RESOLVED that the Legislative Reference submit a report of the study to the Legislature no later than twenty days prior to the convening of the Regular Session of 2004; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Director of the Legislative Reference Bureau, President of the Senate, Speaker of the House of Representatives, Governor, Director of the Campaign Spending Commission, and Director of the Hawaii State Ethics Commission.

Report Title:

Election Campaigns; Blind Trust Accounts