STAND. COM. REP. NO. 2810

Honolulu, Hawaii

RE: S.B. No. 2447

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 2447 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 provide that the period of limitations for criminal prosecutions under campaign finance laws commences upon discovery of the offense by the Campaign Spending Commission, rather than being limited to five years from the violation date or report filing date.

Your Committee received testimony in support of this measure from the Campaign Spending Commission, Imua Alliance, League of Women Voters of Hawaii, Green Party of Hawaiʻi, and fifteen individuals.

Your Committee finds that the criminal prosecution of campaign finance law violations shall not commence after five years from the date of the violation or date of filing of the report covering the period in which the violation occurred, creating a gap between the date of violation and its discovery. This gap may be exploited by an offender to delay discovery. For example, a candidate may revise submitted campaign finance reports long after the originals were submitted. Consequently, the statute of limitations may expire or be near expiration before the violation is discovered, allowing the offender to go unpunished. This measure will clarify that the statute of limitations for campaign finance law violations begins when the offense is discovered by the Campaign Spending Commission to ensure that candidates are held accountable.

Your Committee notes the concern raised by the Campaign Spending Commission that this measure, in its current form, would reduce the current five-year statute of limitations for class C felonies and misdemeanors, which comprise most campaign finance law violations, to three years and two years, respectively. Therefore, amendments to this measure are necessary to address this concern.

Your Committee has amended this measure by:

(1) Clarifying that the Campaign Spending Commission shall be allowed five years from the date of discovery of a violation to commence prosecution of any campaign finance law violation; and

(2) 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 S.B. No. 2447, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2447, 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