STAND. COM. REP. NO. 646

Honolulu, Hawaii

RE:    S.B. No. 440

       S.D. 1

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. 440, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO VIOLATIONS OF CAMPAIGN FINANCE LAW,"

begs leave to report as follows:

     The purpose and intent of this measure is to amend the fines imposed by the Campaign Spending Commission.

Specifically, the measure:

(1)  Increases the fine amounts imposed on a noncandidate committee that makes only independent expenditures and either receives certain contributions or makes a certain amount of expenditures in an election period;

(2) Authorizes the Campaign Spending Commission to order a person who violates campaign finance laws to pay for costs of investigative services and bank fees for the production of subpoenaed documents incurred by the Commission due to the violation; and

(3)  Requires that any costs recovered by the Campaign Spending Commission be deposited into the Hawaii election campaign fund.

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

     Your Committee finds that increasing the maximum fine amounts that may be assessed against noncandidate committees making only independent expenditures, also known as political action committees or Super PACs, will not only address inflation, but also more effectively deter these entities from violating campaign finance laws.  Your Committee also finds that allowing the Campaign Spending Commission to recover from violators the investigative costs and fees incurred in an enforcement action, and depositing the recovered moneys into the Hawaii election campaign fund, will improve the fund's sustainability and, consequently, the State's ability to provide partial public financing of political campaigns by eligible candidates.

     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. 440, S.D. 1, and recommends that it pass Third Reading.

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

________________________________

JILL N. TOKUDA, Chair