SB1173 would create a new fee on independent expenditures made by noncandidate committees in Hawaii elections. The bill imposes a charge equal to 5% of the total amount of independent expenditures made during an election period, with the amount assessed by the Campaign Spending Commission based on existing campaign finance reports. Payment would be due within 60 days of assessment, and the commission would be responsible for administering, collecting, and enforcing the fee.
The bill also establishes penalties for nonpayment, including a fine of up to $10,000 per unpaid assessment, 10% annual interest, and suspension of the committee’s ability to make independent expenditures in the state until all amounts are paid. All revenue, including penalties and interest, would be deposited into the Hawaii election campaign fund and used to support campaign finance enforcement, staffing, and technology upgrades. The bill directs the commission to adopt implementing rules and administrative procedures by January 1, 2027, and states that the new fee would apply to elections held on or after January 1, 2028, even though the act’s general effective date is April 23, 2057.
Impact
SB1173 would amend Chapter 11 of the Hawaii Revised Statutes by adding a new subpart governing independent expenditures by noncandidate committees. It would create a new fee structure, enforcement mechanism, and revenue-dedication scheme tied to the Hawaii election campaign fund, while also authorizing the Campaign Spending Commission to collect the fee and adopt rules for implementation. The bill would directly affect noncandidate committees that spend on election-related independent expenditures and would expand the commission’s administrative and enforcement responsibilities.
Sentiment
The available legislative history suggests generally favorable committee treatment, as the Senate Judiciary Committee passed the bill with amendments on January 31, 2025. The bill’s findings frame it as a transparency and anti-corruption measure rather than a restriction on speech, indicating a policy rationale aimed at strengthening election oversight. No committee transcript is available, so there is no recorded public debate in the provided materials, but the amendment and passage suggest the proposal advanced with at least some support.
Contention
The main point of contention inherent in the bill is whether a 5% fee on independent expenditures is a permissible regulatory charge or an unconstitutional burden on political speech. The bill explicitly invokes Citizens United and states that the fee does not prohibit or limit speech, but opponents would likely argue that taxing independent expenditures could chill political participation and burden noncandidate committees. Supporters, by contrast, emphasize transparency, anti-corruption goals, and funding for enforcement staff and technology at the Campaign Spending Commission.
To Require Disclosure And Reporting Of Noncandidate Expenditures Pertaining To Appellate Judicial Elections; And To Adopt New Laws Concerning Appellate Judicial Campaigns.