STAND. COM. REP. NO. 767

Honolulu, Hawaii

RE:    S.B. No. 412

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 412, 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 change the source of funding for the Campaign Spending Commission's operating expenses from the Hawaii Election Campaign Fund to the general revenues of the State.

     This measure also appropriate general funds for the Commission's operating expenses.

     Your Committee received written comments in support of this measure from the Campaign Spending Commission, League of Women Voters, Common Cause Hawaii, and one individual.

     Your Committee finds that the Campaign Spending Commission operates on revenue derived from the $3 state income tax check-off, interest generated from the principal, and funds that escheat to the Hawaii Election Campaign Fund.  However, these revenues are not sufficient to fund the Campaign Spending Commission as the Commission has been operating at a net deficit for the past ten fiscal years.  Your Committee believes that without a change in the source of funding, the Commission will not be able to run the public funding program for eligible candidates in the 2018 elections.

     Additionally, your Committee notes that its preference is to use the General Appropriations Act as the funding vehicle for the appropriation in this measure.

     Your Committee has amended this measure by changing the appropriation from $505,585 to an unspecified amount to facilitate further discussion on the measure.

     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. 412, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 412, S.D. 2.

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

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JILL N. TOKUDA, Chair