STAND. COM. REP. NO. 3474

Honolulu, Hawaii

RE: H.B. No. 2184

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 2184, H.D. 1, 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:

(1) Prohibit contributions from persons convicted or found in violation of various campaign finance, ethical, or lobbying offenses;

(2) Require unlawful contributions to escheat to the Hawaii Election Campaign Fund; and

(3) Require contributions held by persons who were convicted or found in violation of any of the various campaign finance, ethical, or lobbying offenses to be returned to their respective contributors and, if not returned, to escheat to the Hawaii Election Campaign Fund.

Your Committee received testimony in support of this measure from the Campaign Spending Commission, Democratic Party of Hawaiʻi, and four individuals.

Your Committee received comments on this measure from the Department of the Attorney General and Hawaiʻi State Ethics Commission.

Your Committee finds that the integrity of public officials is paramount to government accountability. However, a loophole in the State's existing campaign finance laws allows candidates, lobbyists, and other individuals who are convicted of campaign spending, ethics, or lobbying offenses to keep control of the money they raised for their campaign accounts. This measure will promote public trust by closing this loophole and bolstering campaign finance integrity in the State.

Your Committee has amended this measure by:

(1) Clarifying that the prohibition against contributions applies only to a person convicted of various campaign finance, ethical, or lobbying offenses, and not to a person only found in violation of those offenses;

(2) Clarifying that funds that were received by a candidate, candidate committee, or noncandidate committee from a person found in violation or convicted of violating the prohibition against contributions from persons convicted of various campaign finance, ethical, or lobbying offenses are required to escheat to the Hawaii Election Campaign Fund;

(3) Deleting language that would have required contributions held by persons who were convicted or found in violation of any of the various campaign finance, ethical, or lobbying offenses to be returned to their respective contributors and, if not returned, to escheat to the Hawaii Election Campaign Fund;

(4) Inserting language allowing the Campaign Spending Commission and State Ethics Commission to notify a candidate, candidate committee, or noncandidate committee that a person who contributed funds to the candidate, candidate committee, or noncandidate committee did so in violation of the prohibition against contributions from persons convicted of various campaign finance, ethical, or lobbying offenses;

(5) Inserting an effective date of April 14, 2112, to encourage further discussion;

(6) Amending section 1 to reflect its amended purpose; and

(7) 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. 2184, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2184, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

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

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KARL RHOADS, Chair