STAND. COM. REP. NO. 1648

Honolulu, Hawaii

RE: H.B. No. 371

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 371, H.D. 1, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to impose certain restrictions and requirements with respect to political campaign contributions.

Specifically, the measure:

(1) Prohibits state and county grantees and officers and immediate family members of state or county contractors and grantees from contributing to candidate or noncandidate committees, candidates, or any person for any political purpose for the duration of the contract;

(2) Provides that if any unlawful contribution is not returned to the contributor within thirty days of receipt, the contribution will escheat to the Hawaii election campaign fund; and

(3) Requires the Campaign Spending Commission to 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.

Your Committee received written comments in support of this measure from the Campaign Spending Commission, Free Access Coalition, HULI PAC, League of Women Voters of Hawaii, Kauai Women's Caucus, Democratic Party of Hawaii Education Caucus, Hawaii Alliance for Progressive Action, Green Party of Hawaii, AltruVistas, and numerous individuals.

Your Committee received written comments in opposition to this measure from one individual.

Your Committee received written comments on this measure from the State Procurement Office, Hawaii Alliance of Nonprofit Organizations, and one individual.

Your Committee finds that although existing state campaign finance law prohibits companies that receive state and county contracts from making campaign contributions, the officers and family members of the contractors are not subject to the prohibition. Your Committee also finds that the law does not prohibit contributions from organizations that receive grants from the State or counties, even though grantees receive public funds in a manner similar to state and county contractors. Your Committee believes that the changes anticipated by this measure will help ensure the integrity of the State's electoral and governmental processes.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 371, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair