STAND. COM. REP. NO. 1436

Honolulu, Hawaii

, 2021

RE: S.B. No. 401

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred S.B. No. 401, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to amend the allowable administrative fines for campaign finance violations. Specifically, this measure allows the Campaign Spending Commission to:

(1) Fine any noncandidate committee that makes only independent expenditures and has either received at least one contribution of or spent more than $10,000 in an election period an amount not to exceed:

(A) $5,000 for each occurrence; or

(B) Three times the amount of an unlawful contribution or expenditure; and

(2) Order the fine, or any portion thereof, to be paid from the personal funds of the officers of the noncandidate committee.

Your Committee received testimony in support of this measure from the Campaign Spending Commission, Common Cause Hawaii, and seven individuals.

Your Committee finds that this measure significantly increases the amount of fines assessed against a noncandidate committee that makes only independent expenditures, otherwise known as Super PACs, and authorizes the Campaign Spending Commission to order that the fines, or a portion of the fines, be paid from the personal funds of an officer of the Super PAC. The increase in the amount of the fine is necessary in enforcement cases against Super PACs and will serve as a more effective deterrent against Super PACs from violating campaign finance laws.

As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 401, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

____________________________

MARK M. NAKASHIMA, Chair