STAND. COM. REP. NO. 740

Honolulu, Hawaii

RE:    S.B. No. 577

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 577, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to replenish and establish a consistent source of funding for the Hawaii election campaign fund and establish that the operations of the Campaign Spending Commission shall be paid for with general funds.

     The measure provides funding resources for the Hawaii election campaign fund by:

(1)  Depositing various campaign spending fine realizations into the Hawaii election campaign fund; and

(2)  Funding the operating expenses of the Campaign Spending Commission through the general fund.

     Your Committee received written comments in support of this measure from the League of Women Voters Hawaii, Common Cause Hawaii, and five individuals.  Your Committee received written comments in opposition to this measure from the Department of Accounting and General Services.  The Campaign Spending Commission submitted written comments on this measure.

     Your Committee finds that the Campaign Spending Commission is a vital state agency; accordingly, it is crucial that the Campaign Spending Commission is adequately funded.  The Hawaii election campaign fund, the source of funding for the Campaign Spending Commission, has been significantly depleted.  Your Committee believes that new means of financing must be explored to ensure adequate support for the Campaign Spending Commission going forward.

     Your Committee has amended this measure by:

(1)  Deleting the provision requiring the general fund to pay for the operating expenses of the Commission; and

(2)  Requiring the Commission to conduct a study regarding the sustainability of its operations and finances and to report its findings and recommendations to the 2016 Legislature.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 577, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 577, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

JILL N. TOKUDA, Chair