STAND. COM. REP. NO. 2980

Honolulu, Hawaii

RE: S.B. No. 3243

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 S.B. No. 3243, S.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 foreign entities and foreign-influenced business entities from making contributions, expenditures, electioneering communications, or donations for election purposes;

(2) Require every business entity that contributes or expends funds in a state election to file a statement of certification regarding its limited foreign influence; and

(3) Require noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement.

Your Committee received testimony in support of this measure from the League of Women Voters of Hawaii, Free Speech For People, International Longshore and Warehouse Union Local 142, Center for American Progress, and twenty-eight individuals.

Your Committee received comments on this measure from the Campaign Spending Commission.

Your Committee finds that campaign financing should ensure maximum participation by citizens in the political process. However, certain corporations and similar entities may prioritize the interests of shareholders, including investors around the world, which may diverge substantially from the policy goals and interests of the State's people. Your Committee further finds that prioritizing transparency ensures the public's right to know who is using money to influence elections. This measure advances the State's clean election goals while preventing foreign influence with state elections.

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. 3243, S.D. 1, and recommends that it pass Third Reading.

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

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KARL RHOADS, Chair