STAND. COM. REP. NO. 1330

Honolulu, Hawaii

, 2025

RE: S.B. No. 345

S.D. 1

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. 345, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC FINANCING,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Increase the cap on the amount of expenditures a candidate can make in the Partial Public Financing Program;

(2) Raise the cap on the maximum amount of matching funds available to candidates in the Partial Public Financing Program;

(3) Increase the matching fund ratio from $1 for each $1 of qualifying contributions raised by a candidate to $2 for each $1 of qualifying contributions raised in excess of the minimum qualifying contributions that a candidate must raise to participate in the Partial Public Financing Program; and

(4) Appropriate funds for the Hawaii Partial Public Financing Program.

Your Committee received testimony in support of this measure from the Campaign Spending Commission; Democratic Party of Hawaiʻi; Green Party of Hawaiʻi; League of Women Voters of Hawaii; Hawaiʻi Alliance for Progressive Action; Our Hawaiʻi; Chamber of Sustainable Commerce; Common Cause Hawaii; Pride at Work – Hawaiʻi; and numerous individuals. Your Committee received testimony in opposition to this measure from Hawaii Patriot Republicans; Aloha Freedom Coalition; and numerous individuals.

Your Committee finds that adjustments are necessary to bolster the Hawaii Partial Public Financing Program and reduce candidates' dependence on special interest groups or large donors. Your Committee further finds that the adjustments made in H.B. No. 370, H.D. 2 (Regular Session of 2025), are more suitable for achieving this objective at this time.

Your Committee has amended this measure by deleting its contents and inserting the contents of H.B. No. 370, H.D. 2, a measure that:

(1) Increases the amount of funds available to candidates who qualify to participate in the Partial Public Financing Program, including candidates for the Board of Trustees of the Office of Hawaiian Affairs, who run statewide;

(2) Encourages participation in the Partial Public Financing Program by providing for the adjustment of the amount of minimum qualifying contributions required for certain offices;

(3) Increases matching fund payments for excess qualifying contributions; and

(4) Appropriates funds from the general revenues of the State to increase the amount of funds available in the Partial Public Financing Program and to permit the Campaign Spending Commission to hire more staff to address the anticipated increase in participation in the Program.

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. 345, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 345, S.D. 1, 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