STAND. COM. REP. NO. 822

Honolulu, Hawaii

, 2025

RE: H.B. No. 371

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 371 entitled:

"A BILL FOR AN ACT RELATING TO CAMPAIGN CONTRIBUTIONS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Prohibit state or county grantees and officers and immediate family members of state or county contractors or grantees from contributing to candidate or noncandidate committees for the duration of the contract; and

(2) Require candidates, candidate committees, or noncandidate committees to return any unlawful contribution to the contributor within thirty calendar days of receipt or the unlawful contribution will escheat to the Hawaii Election Campaign Fund.

Your Committee received testimony in support of this measure from the Campaign Spending Commission; Green Party of Hawaiʻi; Free Access Coalition; Our Hawaiʻi; Democratic Party of Hawaiʻi Education Caucus; Hawaiʻi Workers Center; and numerous individuals.

Your Committee finds that under existing campaign finance law, only a state or county contractor is prohibited from making campaign contributions. The law does not prohibit the officers or family members of the contractor from making contributions. Nor does the law prohibit state grantees from making campaign contributions even though these entities receive funds appropriated by the Legislature, similar to state or county contractors.

Your Committee has amended this measure by:

(1) Amending the definition of "immediate family" under campaign finance laws to make it applicable to the provisions of this measure;

(2) Prohibiting officers or immediate family members of any state or county contractor or grantee from making a contribution to any candidate or to any person for any political purpose or use;

(3) Requiring each state and county agency to report to the Campaign Spending Commission the names of any state or county contractor or grantee and the names of the contractor's and grantee's officers and adult immediate family members;

(4) Requiring the Campaign Spending Commission to periodically publish the names of the state and county contractors and grantees, and their officers and adult immediate family members, on its website, as reported by the state and county agencies;

(5) Changing the effective date to July 1, 3000, to encourage further discussion; and

(6) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 371, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 371, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

____________________________

DAVID A. TARNAS, Chair