STAND. COM. REP. NO. 621

Honolulu, Hawaii

, 2025

RE: H.B. No. 662

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. 662 entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

(1) Repeal the exemption for the expenditure of a candidate's own funds under the definition of contribution;

(2) Make contributions by the candidate's immediate family subject to contribution limits; and

(3) Amend the loan amount that a candidate or candidate committee may receive from the candidate's own funds or immediate family.

Your Committee received testimony in support of this measure from the Free Access Coalition and numerous individuals. Your Committee received testimony in opposition to this measure from the Campaign Spending Commission. Your Committee received comments on this measure from one individual.

Your Committee finds that the Campaign Spending Commission testified that it has concerns regarding the constitutionality of subjecting a candidate's use of the candidate's own funds to contribution and loan limits. Your Committee further finds that the Department of the Attorney General echoed these concerns but stated that limitations could be placed on a candidate's immediate family members.

Accordingly, your Committee has amended this measure by:

(1) Deleting language that would have:

(A) Repealed the exemption for the expenditure of a candidate's own funds under the definition of contribution; and

(B) Amended the loan amount that a candidate or candidate committee may receive from the candidate's own funds;

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

(3) 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. 662, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 662, 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