STAND. COM. REP. NO. 1289

Honolulu, Hawaii

RE: H.B. No. 1490

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 1490, H.D. 2, 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 amend the prohibition of contributions by state and county contractors under Hawaii's campaign finance laws to include officers or board members of a contractor, including contractors who provide goods or utilities.

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 received testimony in opposition to this measure from the Hawaii Bankers Association.

Your Committee finds that Hawaii's campaign finance law already prohibits contributions to election campaigns by contractors, suppliers, and other entities under contract to state or county governmental agencies. Your Committee further finds that owners and executives of these entities can continue making contributions which are attributable to their roles in the companies which receive government funds. Your Committee additionally finds that this has the potential to erode public trust by creating the appearance of a "pay to play" arrangement in state politics. This measure will eliminate that appearance in the case of officers and executives of contractors.

Your Committee has amended this measure by:

(1) Removing board members of contractors from the prohibition; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1490, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1490, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

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

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KARL RHOADS, Chair