STAND. COM. REP. NO. 3273

Honolulu, Hawaii

RE: H.B. No. 1519

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Judiciary, 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 and intent of this measure is to:

(1) Require 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 grantees with grants exceeding $250,000;

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

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

(4) Require unlawful contributions to be returned to the contributor or escheat to the Hawaii Election Campaign Fund; and

(5) Appropriate funds.

Your Committee received testimony in support of this measure from the Campaign Spending Commission, Indivisible Hawaiʻi, Hawaiʻi Alliance for Progressive Action, League of Women Voters of Hawaii, and thirty-two individuals.

Your Committee received comments on this measure from the State Procurement Office and Imua Alliance.

Your Committee finds that when considerable sums of public money are awarded through government contracts and grants, it is imperative that the public have confidence that those decisions are grounded in merit, not political relationships or financial influence. Awards of contracts and grants to individuals and entities that contribute to the campaigns of candidates and noncandidate and candidate committees sometimes raise a suspicion on the fairness and integrity of these government contracts and grants. This measure will hopefully increase the transparency and accountability in the award of these government contracts and grants.

Your Committee notes that under existing law, false name contributions are a class C felony. Thus, any person or entity that gives money to another for the purposes of making a monetary contribution under some other name would be subject to a class C felony.

Your Committee has amended this measure by:

(1) Expanding the scope of the disclosure requirements and prohibitions established under this measure to include county contractors and grantees and the compensated officers of county contractors and grantees;

(2) Deleting language throughout the measure that would have established monetary thresholds for disclosure requirements of compensated officers for grants and contracts for goods, services, and construction;

(3) Deleting language throughout the measure that would have subjected immediate family members of compensated officers of state contractors and grantees to the disclosure requirements established by this measure;

(4) Applying the disclosure requirements in this measure to any person who receives a grant or subsidy from the State under chapter 42F, Hawaii Revised Statutes, or from a county pursuant to a county charter or code;

(5) Prohibiting any compensated officer of a state or county grantee from contributing to any candidate committee, noncandidate committee, or person;

(6) Clarifying the definition of "officer";

(7) Inserting a blank appropriation amount to be expended by the Campaign Spending Commission for the establishment of a password protected filing system, and to provide updates, training, and administrative support;

(8) Amending section 1 to reflect its amended purpose;

(9) Inserting an effective date of March 22, 2075, to encourage further discussion; and

    (10) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1519, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1519, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

KARL RHOADS, Chair