HB 662: RELATING TO CAMPAIGN FINANCE.

A BILL FOR AN ACT

RELATING TO CAMPAIGN FINANCE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 11-359, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  A contribution by the candidate's immediate family shall not be exempt from section 11-357[, but shall be limited in the aggregate to $50,000 in any election period; provided that the aggregate amount of loans and contributions received from the candidate's immediate family does not exceed $50,000 during an election period]."

     SECTION 2.  Section 11-371, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  A candidate or candidate committee may receive a loan from any or all of the following:

     (1)  The candidate's own funds;

     (2)  A financial institution regulated by the State or a federally chartered depository institution and made in accordance with applicable law in the ordinary course of business; and

    [(3)  The candidate's immediate family in an aggregate amount not to exceed $50,000 during an election period; provided that the aggregate amount of loans and contributions received from the immediate family shall not exceed $50,000 during an election period; and

     (4)] (3)  Persons other than the candidate[,] or a financial institution described in paragraph (2), [or the candidate's immediate family,] in an aggregate amount not to exceed $10,000 during an election period; provided that:

          (A)  If the $10,000 limit for loans from persons other than the [immediate family] candidate is reached, the candidate and candidate committee shall be prohibited from receiving or accepting any other loans until the $10,000 is repaid in full; and

          (B)  If a loan [from persons other than the candidate's immediate family] is not repaid within one year of the date that the loan is made, the candidate and candidate committee shall be prohibited from accepting any other loans.  All campaign funds, including contributions subsequently received, shall be used to repay the outstanding loan in full."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

Campaign Finance; Contributions

Description:

Makes contributions by the candidate's immediate family subject to contribution limits.  Amends the loan amount that a candidate or candidate committee may receive from the candidate's immediate family.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO CAMPAIGN FINANCE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 11-302, Hawaii Revised Statutes, is amended by amending the definition of "contribution" to read as follows:

     ""Contribution" means:

     (1)  A gift, subscription, deposit of money or anything of value, or cancellation of a debt or legal obligation and includes the purchase of tickets to fundraisers, for the purpose of:

          (A)  Influencing the nomination for election, or the election, of any person to office;

          (B)  Influencing the outcome of any question or issue that has been certified to appear on the ballot at the next applicable election; or

          (C)  Use by any candidate committee or noncandidate committee for the purpose of subparagraph (A) or (B);

     (2)  The payment, by any person or party other than a candidate, candidate committee, or noncandidate committee, of compensation for the services of another person that are rendered to the candidate, candidate committee, or noncandidate committee without charge or at an unreasonably low charge for a purpose listed in paragraph (1);

     (3)  A contract, promise, or agreement to make a contribution; or

     (4)  Any loans or advances that are not documented or disclosed to the commission as provided in section 11-372[[].[]]

     "Contribution" does not include:

     (1)  Services voluntarily provided without compensation by individuals to or on behalf of a candidate, candidate committee, or noncandidate committee;

    [(2)  A candidate's expenditure of the candidate's own funds; provided that this expenditure shall be reportable as other receipts and expenditures;

     (3)] (2)  Any loans or advances to the candidate committee; provided that these loans or advances shall be reported as loans; or

    [(4)] (3)  An individual, candidate committee, or noncandidate committee engaging in internet activities for the purpose of influencing an election if:

          (A)  The individual, candidate committee, or noncandidate committee is uncompensated for the internet activities; or

          (B)  The individual, candidate committee, or noncandidate committee uses equipment or services for uncompensated internet activities, regardless of who owns the equipment and services."

     SECTION 2.  Section 11-359, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  A contribution by the candidate's immediate family shall not be exempt from section 11-357[, but shall be limited in the aggregate to $50,000 in any election period; provided that the aggregate amount of loans and contributions received from the candidate's immediate family does not exceed $50,000 during an election period]."

     SECTION 3.  Section 11-371, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  A candidate or candidate committee may receive a loan from any or all of the following:

     (1)  The candidate's own funds; provided that the maximum amount of the loan in the aggregate is $2,000;

     (2)  A financial institution regulated by the State or a federally chartered depository institution and made in accordance with applicable law in the ordinary course of business; and

    [(3)  The candidate's immediate family in an aggregate amount not to exceed $50,000 during an election period; provided that the aggregate amount of loans and contributions received from the immediate family shall not exceed $50,000 during an election period; and

     (4)] (3)  Persons other than the candidate[,] or a financial institution described in paragraph (2), [or the candidate's immediate family,] in an aggregate amount not to exceed $10,000 during an election period; provided that:

          (A)  If the $10,000 limit for loans from persons other than the [immediate family] candidate is reached, the candidate and candidate committee shall be prohibited from receiving or accepting any other loans until the $10,000 is repaid in full; and

          (B)  If a loan [from persons other than the candidate's immediate family] is not repaid within one year of the date that the loan is made, the candidate and candidate committee shall be prohibited from accepting any other loans.  All campaign funds, including contributions subsequently received, shall be used to repay the outstanding loan in full."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

Report Title:

Campaign Finance; Contributions

Description:

Repeals the exemption for the expenditure of candidate's own funds under the definition of contribution.  Makes contributions by the candidate's immediate family subject to contribution limits.  Amends the loan amount that a candidate or candidate committee may receive from the candidate's own funds or immediate family.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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,