STAND

STAND. COM. REP. 2519

Honolulu, Hawaii

, 2004

RE: S.B. No. 2074

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred S.B. No. 2074 entitled:

"A BILL FOR AN ACT RELATING TO CAMPAIGN SPENDING,"

begs leave to report as follows:

The purpose of this measure is to amend the campaign spending laws.

Specifically, this measure:

(1) Prohibits corporations, labor organizations, and banks from making campaign contributions directly from corporate, labor organization, or bank treasuries;

(2) Requires the establishment of separate segregated funds through which employees can make contributions;

(3) Allows the Campaign Spending Commission to communicate directly with the Governor and Legislature and make all employment decisions for its staff; and

(4) Provides that intentional and knowing violations of the campaign spending law shall be a class C felony.

Testimony in support of this measure was submitted by the Campaign Spending Commission, Hawaii Clean Elections, League of Women Voters of Hawaii, and five individuals.

Your Committee finds that there is a need to prohibit corporations, labor organizations, and banks from making campaign contributions, and there is a need for establishing segregated funds for employee contributions and harsher penalties for intentional and knowing violations of the campaign laws. Your Committee further finds that clarification of current laws is needed to ensure the independence of the Campaign Spending Commission, and this measure addresses all of your Committee findings.

Your Committee has amended this measure to include language to provide:

(1) An open line of communication between both the Campaign Spending Commission and the Governor or Legislature; and

(2) That the Campaign Spending Commission has the autonomy to make its own personnel decisions without the approval of the head of the department.

Your Committee further amended this measure to make technical, nonsubstantive changes.

As affirmed by the record of votes of the members of your Committee on Judiciary and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2074, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2074, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Hawaiian Affairs,

		____________________________ COLLEEN HANABUSA, Chair