The state House Finance Committee on Wednesday night moved to restore restrictions on corporate and Mainland political campaign contributions, but several public-interest groups attacked the decision on corporate contributions as a step backward.

The committee placed a $50,000 limit on contributions from corporate treasuries to corporate political action committees over an election cycle. The existing limit, which has been challenged in court and is on appeal, was $1,000 per election or $2,000 per election cycle.

The committee also restored a 20 percent limit on Mainland political donations to state candidates but applied it to the election cycle, rather than each campaign-finance reporting period. Lawmakers added a 30-day grace period where candidates could return excess Mainland contributions if they are over the limit.

The bill now goes to the full House for a vote.

Earlier this session, the state House Judiciary Committee had lifted restrictions on corporate and Mainland political contributions. But the provision relating to corporate contributions was rebuffed by the full House after opposition from public-interest groups.

State House Majority Leader Blake Oshiro, D-33rd ('Aiea, Halawa Valley, 'Aiea Heights), said majority Democrats will now discuss the new bill in private caucus before deciding how to proceed.

Oshiro said the main concern of the state Campaign Spending Commission on corporate contributions has been transparency. The commission wants the money to go through corporate PACs, where it can more easily be tracked than direct corporate contributions to candidates.

Oshiro said the $50,000 limit was a compromise between lawmakers who wanted a cap and lawmakers who wanted unlimited corporate contributions to corporate PACs. It also happens to be the limit candidates can receive from immediate family members.

"A corporation funding its own PAC is similar to a sister funding their brother," he said.

Lawmakers opted to restore the Mainland donation limits after complaints that removing the restriction would help potential candidates for governor in 2010, such as U.S. Rep. Neil Abercrombie, D-Hawai'i, and Lt. Gov. James "Duke" Aiona.

"I think it's just the perception issue. We didn't want that impeding everything else that's in the bill," Oshiro said.

Public-interest groups that want to limit the influence of corporate money in politics are disappointed. Several activists said they would fight the corporate contribution provision if it advances through the House and moves to the state Senate.

"At a time when people are so angry about corporate influence in politics, it's disappointing that Hawai'i's legislators are actually considering allowing more corporate money to flow into campaigns," Nikki Love, spokeswoman for Common Cause Hawai'i, said in a statement.