STAND. COM. REP. NO. 1414-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2982

S.D. 2

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 Judiciary & Hawaiian Affairs, to which was referred S.B. No. 2982, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

(1) Prohibit foreign nationals, foreign corporations, and foreign-influenced business entities from making contributions, expenditures, electioneering communications, or donations for election purposes;

(2) Require for-profit business entities to certify that they were not foreign corporations or foreign-influenced business entities when their political spending occurred;

(3) Direct the Campaign Spending Commission to revise the conditions that determine whether a business entity qualifies as a foreign-influenced business entity if the conditions are held unconstitutional; and

(4) Require noncandidate committees making only independent expenditures to obtain certifications from top contributors confirming that their funds were not derived from foreign nationals, foreign corporations, or foreign-influenced business entities.

Your Committee received testimony in support of this measure from UNITE HERE Local 5; International Longshore and Warehouse Union Hawaiʻi; Free Speech For People; Hawaiʻi Alliance for Progressive Action; and numerous individuals. Your Committee received comments on this measure from the Department of the Attorney General and Campaign Spending Commission.

Your Committee finds that foreign governments, foreign nationals, and foreign-influenced business entities continue to seek opportunities to influence elections in the United States, posing risks to democratic self-governance and public confidence in electoral integrity. Your Committee further finds that strengthening state campaign finance laws to prohibit political spending by foreign entities and requiring business entities and top contributors to certify the absence of foreign influence will help safeguard Hawaii's elections. This measure enhances transparency and protects the State's democratic processes from improper foreign involvement.

Your Committee has amended this measure by:

(1) Amending the definition of "foreign-influenced business entity" to require a showing that the foreign investor or investors who meet the ownership thresholds also exercise control over, or have the ability to direct, the entity's election-related spending;

(2) Amending the requirements for statements of certification regarding foreign influence;

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

(4) 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 S.B. No. 2982, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2982, S.D. 2, 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