STAND. COM. REP. NO. 1359

Honolulu, Hawaii

, 2021

RE: S.B. No. 403

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 Government Reform, to which was referred S.B. No. 403 entitled:

"A BILL FOR AN ACT RELATING TO REPORTS FILED WITH THE CAMPAIGN SPENDING COMMISSION,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Exempt candidates who are either unsuccessful or elected to office in a primary election from the requirement to file certain preliminary general reports for the following general election; and

(2) Clarify the aggregate contribution and expenditure amounts that trigger the requirement for a candidate or noncandidate committee to file only the final election period report.

Your Committee received testimony in support of this measure from the Campaign Spending Commission.

Your Committee finds that reporting requirements under campaign finance law are important to maintain transparency and fairness in elections. Your Committee further finds that preliminary reports are due throughout the spring, summer, and fall in an election year. Your Committee notes that the final two preliminary reports are due between the primary election and the subsequent general election and that requiring candidates who are either unsuccessful or who have been elected to office in a primary election to file preliminary reports between the primary and subsequent general election is wasteful and unnecessary. However, your Committee is concerned that a candidate who is unsuccessful in a primary election may continue to raise money if the candidate still intends to be involved in political activity. This concern is amplified when a candidate wins outright in the primary election, as the money raised as a new incumbent during this time period will not be reported.

Your Committee has accordingly amended this measure by clarifying that a candidate who is unsuccessful in a primary, initial special, or initial nonpartisan election and does not intend to remain politically active after the primary, initial special, or initial nonpartisan election through the subsequent general election shall be exempt from the requirement to file preliminary general reports for the following general election.

As affirmed by the record of votes of the members of your Committee on Government Reform that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 403, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 403, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Government Reform,

____________________________

ANGUS L.K. McKELVEY, Chair