STAND. COM. REP. NO. 2998

Honolulu, Hawaii

RE: S.B. No. 2530

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2530, S.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 make certain amendments to campaign contribution laws.

Specifically, the measure:

(1) Extends the prohibitions on campaign contributions from state and county contractors to the compensated officers of the contractor and the officers' immediate family members for the duration of any contract of no less than $100,000 for goods and services or no less than $250,000 for a construction contract;

(2) Prohibits grantees awarded no less than $100,000 pursuant to chapter 42F, Hawaii Revised Statutes, the grantees' compensated officers, and the compensated officers' immediate family members from making or soliciting campaign contributions;

(3) Requires any unlawful contribution to be returned to the contributor within thirty calendar days of receipt;

(4) Requires disclosure of the names of any compensated officers and immediate family members of a state or county contractor or grantee for contracts or grants that exceed the applicable amounts; and

(5) Requires the Campaign Spending Commission to make available to candidate and noncandidate committees the foregoing disclosed names in a password-protected database.

Your Committee received written comments in support of this measure from the Campaign Spending Commission, Free Access Coalition, Kupuna for the Moopuna, Green Party of Hawaii, Hawaii Alliance for Progressive Action, League of Women Voters of Hawaii, HULI PAC, Imua Alliance, Indivisible Hawaii Statewide Network, KahuPuna, and numerous individuals.

Your Committee received written comments in opposition to this measure from one individual.

Your Committee received written comments on this measure from the State Procurement Office.

Your Committee recognizes that although existing election campaign finance laws prohibit state and county contractors from making campaign contributions for the duration of their contracts, the officers of those contractors and the officers' immediate families are not subject to these prohibitions. Your Committee believes that to prevent unintended opportunities for undue influence, contributions by those officers and family members should also be restricted. Your Committee also finds it appropriate to apply the same prohibitions on campaign contributions to recipients of grants under chapter 42F, Hawaii Revised Statutes, their officers, and officers' family members.

Your Committee further believes that the Campaign Spending Commission should also focus on compliance and auditing to ensure that candidates comply with campaign spending laws and rules. Your Committee recommends that the Campaign Spending Commission establish a training program to educate candidates and candidate committee officers.

Your Committee has amended this measure by:

(1) Replacing the dollar-specific contract thresholds that trigger the prohibitions imposed on the officers of contractors and the officers' immediate family members with a cross reference to the small purchase threshold under section 103D-305, Hawaii Revised Statutes;

(2) Appropriating an unspecified sum to the Campaign Spending Commission to establish a password-protected filing system, and to provide updates, training, and administrative support; and

(3) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2530, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2530, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair