The state Campaign Spending Commission may ask state lawmakers to repeal a restriction on Mainland political contributions that has been described as a fundraising obstacle for the 2010 governor's race.

State candidates are limited to Mainland donations of no more than 20 percent of their total fundraising during each campaign-finance reporting period. Lawmakers adopted the restriction, which took effect in January 2006, to prevent Mainland interests from having a disproportionate influence on state development, economic and social policies.

Barbara Wong, the commission's executive director, has recommended that the commission ask for a repeal. The commission is expected to decide this afternoon.

"It's basically over-broad and under-inclusive," Wong said.

For example, Wong said, people born and raised in Hawai'i who have moved to the Mainland — and may return — are potentially precluded from making full contributions to their favored candidates. She also questioned the equity of treating Mainland donations and local donations differently under the law.

Wong said the law is also difficult on candidates who may not know whether they have exceeded the cap on Mainland donations until the last day of the reporting period. The commission has only investigated a few cases of possible violations, she said, and in one instance fined a campaign $1.

Many political observers believe the restriction was passed by Democrats to limit Gov. Linda Lingle's ability to raise Mainland money for her 2006 re-election campaign. But the Republican governor raised much of her Mainland money before the new law took effect, and the restriction now falls squarely on potential candidates for governor in 2010.

U.S. Rep. Neil Abercrombie, D-Hawai'i, has cited the restriction as a possible obstacle in raising the $3 million to $5 million believed necessary for a competitive campaign. Abercrombie, who has served in Congress for two decades, has a base of Mainland donors and contacts that could be helpful if he were to run for governor.

Miriam Hellreich, finance director for Lt. Gov. James "Duke" Aiona's campaign for governor, has also described the restriction as a challenge. Aiona has been appealing to a national network of Republican donors as he tries to match Lingle's $6.7 million fundraising record in 2006.

LAWMAKERS MAY BALK

Wong said she had not been approached by any potential candidates about a repeal. She said the commission staff has been troubled by the law for the past two years.

State lawmakers involved in passing the restriction said yesterday they are not immediately inclined to repeal the law.

State Senate President Colleen Hanabusa, D-21st (Nanakuli, Makaha), who is considering a campaign for governor, said the restriction prevents "outsiders from coming in and influencing our elections through large monetary contributions."

Hanabusa said she would want to hear whether the original supporters of the change in the state House still believe the restriction is necessary, as well as the commission's rationale for a repeal. "I want to know why," she said.

'A SPECIAL PLACE'

State House Majority Leader Blake Oshiro, D-33rd ('Aiea, Halawa Valley, 'Aiea Heights), said the restriction is modest and does not prohibit candidates from effective fundraising. He said he would have to hear a compelling reason for a repeal.

Oshiro, like Hanabusa, said he hoped that any debate over a repeal would be based on the merits of the law rather than political considerations for the governor's race.

"The idea is, Hawai'i is a special place, and we want to make sure that the people who have direct access into the political system and are utilizing their free speech are people that know what is best for Hawai'i," Oshiro said.