STAND. COM. REP. NO. 1008-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1519

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Finance, to which was referred H.B. No. 1519, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to reduce the potential for campaign contributions to unduly influence policymaking, maintain public trust in government decision-making, and improve actual and perceived standards of conduct by:

(1) Requiring the disclosure of the names of compensated officers, and their immediate family members, of state contractors with contracts exceeding the small purchase threshold established under the Hawaii Public Procurement Code and of grantees of state grants exceeding $250,000;

(2) Prohibiting the compensated officers, and their immediate family members, of state contractors from making, promising to make, or soliciting certain campaign contributions for the duration of the contract exceeding the small purchase threshold;

(3) Prohibiting the grantees, including compensated officers and their immediate family members, from making, promising to make, or soliciting certain contributions for the duration of the grant exceeding $250,000; and

(4) Requiring unlawful contributions to be returned to the contributor or escheat to the Hawaii Election Campaign Fund.

Your Committee received testimony in support of this measure from the Campaign Spending Commission; Hawaiʻi Alliance for Progressive Action; League of Women Voters of Hawaii; Imua Alliance; and numerous individuals. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the State Procurement Office.

Your Committee encourages further consideration of the following:

(1) Whether the Campaign Spending Commission could more frequently notify campaigns of updates to the list of individuals who are prohibited from making contributions or whether the system could automatically notify filers when a donor matches an individual on the list;

(2) Whether the system should automatically notify filers of potential unintentional errors when entering donations online;

(3) Broadening the individuals who are subject to the prohibitions in this measure to include county contractors, contractors that are in a different branch of government from the branch that exercises authority over the awarding or administration of the contract or grant, and uncompensated officers of contractors or grantees; and

(4) Whether the contract and grant amounts in the measure are the most appropriate thresholds.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1519, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

CHRIS TODD, Chair