STAND. COM. REP. NO. 1333

Honolulu, Hawaii

, 2025

RE: S.B. No. 1032

S.D. 2

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 S.B. No. 1032, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

(1) Prohibit foreign entities and foreign-influenced business entities from making contributions, expenditures, electioneering communications, or donations for election purposes;

(2) Allow every business entity that contributes or expends funds in a state election to certify that the entity is not and will not be a foreign corporation or foreign-influenced business entity if the entity intends to make contributions or expenditures within an election cycle;

(3) Specify that if the conditions that determine whether a business entity qualifies as a foreign-influenced business entity are held unconstitutional by a final judgment, including all appeals, the Campaign Spending Commission is required to establish revised conditions that are constitutional; and

(4) Require noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement avowing that none of the funds contributed were derived from a foreign corporation or foreign-influenced business entity.

Your Committee received testimony in support of this measure from the Campaign Spending Commission; Free Speech For People; International Longshore & Warehouse Union Hawaii; League of Women Voters of Hawaii; Green Party of Hawaiʻi; UNITE HERE Local 5; Hawaiʻi Alliance for Progressive Action; Chamber of Sustainable Commerce; and numerous individuals. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Department of the Attorney General.

Your Committee has amended this measure by:

(1) Specifying that a contribution made by a foreign national, foreign corporation, or foreign-influenced business entity shall escheat to the Hawaii Election Campaign Fund;

(2) Amending the requirements for the statement of certification from each top contributor required to be listed in an advertisement;

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

(4) 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 S.B. No. 1032, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1032, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

DAVID A. TARNAS, Chair