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The Honolulu Advertiser
Posted on: Tuesday, April 14, 2009

There's time to fix corporate donations law

As the Legislature heads into the final stretch of a difficult session — the negotiations over bills in conference committees — it's important to keep in mind one thing.

The final stretch is the most important part of any race. At the state Capitol, a lot of the crucial work is done at the tail end.

One of the Legislature's mixed-bag achievements is its attempt to recodify the confusion of state campaign financing laws. That measure, House Bill 128, shows some clarity brought to the matter but there's a critical gap: It doesn't address the limits on campaign contributions from the treasuries of corporations.

There needs to be some rulemaking here, in that campaign committees are already gearing up for the 2010 election. Direct financial injections from corporations into the electoral process cede too much influence to moneyed interests, to the detriment of the general public.

The issue already generated controversy, with other failed bills proposing unlimited corporate treasury donations, or at least much more than the $1,000 set in the last revision of the law.

The trouble is, that revision did not set the limit clearly enough for the state Circuit Court, which struck it down last year. The case, on corporate donations to Maui Mayor Charmaine Tavares' 2006 campaign, is on appeal. Meanwhile, the state Campaign Spending Commission has said the old limit won't be enforced unless it's upheld on appeal.

There's a lot of political pressure to do nothing. But the Legislature is elected to see that state policy is clear, and it has a chance to give the commission an unambiguous law. HB 128 should restore a $1,000 cap, and require corporate contributions to be made to political action committees, making it easier to track who gave money to whom.

That can be done in conference committee. What must not happen, however, is any late attempt to enable greater corporate giving.

HB 128 does include a late change that bears reconsideration. Candidates would be able to donate any unspent funds to public schools or state libraries. As much as these are cherished institutions of society, a contributor gives to a campaign for a specific purpose: to support a candidate. To divert their money to other beneficiaries is unfair, whether that recipient is a public agency or a nonprofit.

Hawai'i has endured too long with campaign finance laws that impede transparency and accountability to the public. If there is any hope of reinvigorating public trust in government, correcting that failing would be a good first step.