STAND. COM. REP. NO. 853

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 630
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred S.B. No.
630 entitled: 

     "A BILL FOR AN ACT RELATING TO CAMPAIGN CONTRIBUTIONS,"

begs leave to report as follows:

     The purpose of this bill, as received by your Committee, is
to add to the campaign spending laws new sections regarding
reports for late contributions, limitations on contributions
during legislative sessions, and limitations on contributions by
corporations, trade organizations, or labor organizations.

     Your Committee finds that under current law, last-minute
contributions -- contributions made to candidates or committees
within fifteen days of an election -- are not publicly disclosed
until after the election.  Would-be contributors can simply wait
until two weeks before the election to make major contributions
and thereby avoid any pre-election public disclosure of the
donations.  Requiring late contribution disclosure of the type
proposed in this measure will close this loophole in public
disclosure laws.  Your Committee believes this will strengthen
public disclosure laws and promote fairness in campaigning.

     Your Committee further finds that the provision requiring
electronic filing of campaign spending reports after the 2002
election period will substantially increase public access to
campaign spending disclosures.  The availability of these reports
in electronic form, combined with the explosive growth in
internet access in recent years, will allow a large number of

 
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Hawaii citizens to access campaign spending disclosures from
their own homes or businesses.

     This measure would also prevent contributions during the
legislative session.  However, your Committee is concerned that
preventing fundraisers during the legislative session would cut
off an important point of contact, and have a chilling effect on
other contacts between legislators and their constituents, during
the very period when legislators most need to keep open lines of
communication with their constituents.

     Your Committee is also concerned that the limitations
proposed by this measure on contributions by corporations, trade
organizations, and labor organizations, and on contributions by
state contractors, would put a heavy and unfair burden on the
ability of a broad range of businesses to support candidates or
political committees whose policies they favor.  Your Committee
deems unacceptable this burden on the right of Hawaii's
businesses to freely express their political views.

     Testimony in support of this measure was submitted by the
Campaign Spending Commission, the League of Women Voters of
Hawaii, and Common Cause Hawaii.  Comments regarding this measure
were submitted by the Hawaii State Coordinating Council on
Deafness.  Testimony in opposition to this measure was submitted
by Legislative Information Services of Hawaii.

     Upon further consideration, your Committee has amended this
measure by:

     (1)  Deleting the provision forbidding acceptance of
          contributions during the legislative session;

     (2)  Deleting the provision limiting contributions by
          corporations, trade organizations, or labor
          organizations;

     (3)  Deleting the provision requiring disposal of surplus
          contributions after an election period;

     (4)  Deleting proposed amendments that would have lowered
          the current campaign contribution limits, except for a
          provision setting an aggregate limit for all
          contributions by anyone other than a political party
          for any election year;

     (5)  Deleting a provision preventing a state contractor from
          making any political contribution at any time from the

 
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          initiation of negotiations for a state contract to the
          completion of the contract;

     (6)  Deleting a provision that would have deleted portions
          of the current campaign spending law limiting the use
          of surplus campaign contributions;

     (7)  Changing the effective date for the provision requiring
          eletronic filing to apply to candidates who will appear
          on the ballot for the 2004 election; and

     (8)  Making technical, non-substantive amendments for the
          purposes of clarity and style.

     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 S.B. No.
630, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as S.B. No. 630, S.D. 1, and
be placed on the calendar for Third Reading.

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



                                   ______________________________
                                   AVERY B. CHUMBLEY, Co-Chair



                                   ______________________________
                                   MATTHEW M. MATSUNAGA, Co-Chair

 
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