STAND. COM. REP. NO. 2058

Honolulu, Hawaii

RE:    S.B. No. 2118

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Judiciary and Labor, to which was referred S.B. No. 2118 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Require a candidate who exceeds the voluntary expenditure limit to notify the Office of Elections instead of the Chief Election Officer, among other persons, by telephone and writing on the day the expenditure limit is exceeded;

     (2)  Repeal the requirement that candidates provide notice to all contributors within thirty days of exceeding the voluntary expenditure limit and that contributions to the candidate no longer qualify for a state income tax deduction; and

     (3)  Repeal the law that allows a Hawaii resident to claim a state income tax deduction for contributions to a candidate who files an affidavit agreeing to limit expenditures and does not exceed the voluntary expenditure limit.

     Your Committee received testimony in support of this measure from the Office of Elections and Campaign Spending Commission.

     Your Committee finds that this measure makes housekeeping amendments to be consistent with existing campaign finance laws.  Requiring candidates who exceed their voluntary expenditure limits to notify the Office of Elections instead of the Chief Election Officer is consistent with the existing requirement that a candidate notify the Campaign Spending Commission rather than the Commission's executive director.  Furthermore, Act 59, Session Laws of Hawaii 2010, repealed the state income tax deduction for persons who made contributions to a candidate who agreed to abide by expenditure limits.  Thus, repealing the requirements relating to this state income tax deduction updates existing campaign finance laws accordingly.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2118 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

____________________________

CLAYTON HEE, Chair