HB1519 SD2

PART I

SECTION 1. The legislature finds that the State's existing campaign finance law prohibiting organizations that receive state contracts from making campaign contributions does not extend to the compensated officers of the organizations.

The legislature also finds that campaign contribution prohibitions do not currently apply to organizations that receive grants from the State or counties. These grantees receive public funds appropriated by a legislative body, similar to state and county contractors.

Accordingly, the purpose of this part is to reduce the potential for campaign contributions to unduly influence policymaking, maintain public trust in government decision‑making, and improve actual and perceived standards of conduct by:

(1) Prohibiting compensated officers of state and county contractors, for the duration of contracts under their control that exceed the small purchase threshold established under the Hawaii public procurement code, from:

(A) Making, or promising to make, contributions to the candidate committee of a candidate who is a member of, or seeking election to, the same branch of the state government that exercises authority over the awarding or administration of the contract; or

(B) Soliciting any contribution from any person for any purpose; and

(2) Expanding the prohibition on campaign contributions by state and county contractors to include contributions from state and county grantees that receive grants under chapter 42F, Hawaii Revised Statutes, or county charters or codes, that exceed $250,000.

SECTION 2. Chapter 11, Hawaii Revised Statutes, is amended by adding a new section to part XIII, subpart E to be appropriately designated and to read as follows:

"§11- Disclosure of compensated officers for state and county grants. (a) Within thirty calendar days of fully executing a contract for a grant under chapter 42F, or for a county under a county charter or code, the expending agency executing the contract shall require the recipient to provide a list of the names of all compensated officers of the recipient. The campaign spending commission shall prescribe a standard form and require the recipient to certify the accuracy of the form. Recipients shall update disclosures within thirty calendar days of any change in the officers.

(b) The expending agency shall make the reported information available electronically to the campaign spending commission within thirty calendar days of fully executing the contract, without obligation to verify accuracy or completeness for purposes of section 11-355.

(c) The expending agency's responsibility under this section shall be limited to receiving and transmitting the information submitted by the recipient. The expending agency shall not be responsible for verifying the accuracy, completeness, or correctness of the information submitted.

(d) Failure of a recipient to submit the information required under this section shall constitute a material failure to comply with the terms and conditions of the grant. An expending agency may withhold grant funds until the required information is submitted.

(e) For the purposes of this section, "officer" has the same meaning as defined in section 11-355."

SECTION 3. Chapter 27, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

"§27- Disclosure of compensated officers for state and county contracts. (a) Within thirty calendar days of fully executing a state or county contract for goods, services, or construction, the contracting agency shall, pursuant to section 11-355, require the contractor to provide a list of the names of all compensated officers of the contractor. The campaign spending commission shall prescribe a standard form and require the contractor to certify the accuracy of the form. Contractors shall update disclosures within thirty calendar days of any change in the officers.

(b) The contracting agency shall make the reported information available electronically to the campaign spending commission within thirty calendar days of fully executing the contract, without obligation to verify accuracy or completeness for purposes of section 11-355.

(c) The contracting agency's responsibility under this section shall be limited to receiving and transmitting the information submitted by the contractor. The contracting agency shall not be responsible for verifying the accuracy, completeness, or correctness of the information submitted.

(d) Failure of a contractor to submit the information required under this section shall constitute a material noncompliance. A contracting agency may withhold execution, suspend performance, or pursue remedies available under the contract or applicable law until the required information is submitted.

(e) For the purposes of this section, "officer" has the same meaning as defined in section 11-355."

SECTION 4. Chapter 103D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§103D- Disclosure of compensated officers for state and county contracts. (a) Within thirty calendar days of fully executing a state or county contract for goods, services, or construction, the purchasing agency shall, pursuant to section 11-355, require the contractor to provide a list of the names of all compensated officers of the contractor. The campaign spending commission shall prescribe a standard form and require the contractor to certify the accuracy of the form. Contractors shall update disclosures within thirty calendar days of any change in the officers.

(b) The purchasing agency shall make the reported information available electronically to the campaign spending commission within thirty calendar days of fully executing the contract, without obligation to verify accuracy or completeness for purposes of section 11-355.

(c) The purchasing agency's responsibility under this section shall be limited to receiving and transmitting the information submitted by the contractor. The purchasing agency shall not be responsible for verifying the accuracy, completeness, or correctness of the information submitted.

(d) Failure of a contractor to submit the information required under this section shall be subject to sections 103D‑702 and 103D-707.

(e) For the purposes of this section, "officer" has the same meaning as defined in section 11-355."

SECTION 5. Chapter 103F, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§103F- Disclosure of compensated officers for state and county contracts. (a) Within thirty calendar days of fully executing a state or county contract, the purchasing agency shall, pursuant to section 11-355, require the contractor or provider to provide a list of the names of all compensated officers of the contractor or provider. The campaign spending commission shall prescribe a standard form and require the contractor or provider to certify the accuracy of the form. Contractors or providers shall update disclosures within thirty calendar days of any change in the officers.

(c) The purchasing agency's responsibility under this section shall be limited to receiving and transmitting the information submitted by the contractor or provider. The purchasing agency shall not be responsible for verifying the accuracy, completeness, or correctness of the information submitted.

(d) Failure of a contractor or provider to submit the information required under this section shall constitute a material noncompliance. A purchasing agency may withhold execution, suspend performance, or pursue remedies available under the contract or applicable procurement law until the required information is submitted.

(e) For the purposes of this section, "officer" has the same meaning as defined in section 11-355."

SECTION 6. Section 11-355, Hawaii Revised Statutes, is amended to read as follows:

"[[]§11-355[]] Contributions by state [~~and~~] or county contractors, grantees, and compensated officers of state or county contractors or grantees; prohibited. (a) It shall be unlawful for any person who enters into any contract with the State, any of the counties, or any department or agency thereof either for the rendition of [~~personal~~] services, the buying of property, or furnishing of any material, supplies, or equipment to the State, any of the counties, or any department or agency thereof, or for selling any land or building to the State, any of the counties, or any department or agency thereof, if payment for the performance of the contract or payment for material, supplies, equipment, land, property, or building is to be made in whole or in part from funds appropriated by the legislative body, at any time [~~between~~] from the execution of the contract through the completion of the contract, to:

(1) Directly or indirectly make any contribution, or promise expressly or impliedly to make any contribution, to any candidate committee or noncandidate committee, or to any candidate or to any person for any political purpose or use; or

(2) Knowingly solicit any contribution from any person for any purpose during any period.

[(b) Except as provided in subsection (a), this section does not prohibit or make unlawful the establishment or administration of, or the solicitation of contributions to, any noncandidate committee by any person other than the state or county contractor for the purpose of influencing the nomination for election, or the election of any person to office.]

(b) It shall be unlawful for any compensated officer of a contractor under subsection (a), that is awarded a contract exceeding the small purchase threshold described in section 103D-305(a), at any time from the execution of the contract through the completion of the contract, to:

(1) Directly or indirectly make any contribution, or promise expressly or impliedly to make any contribution, to the candidate committee of a candidate who is a member of, or seeking election to, the same branch of government that exercises authority over the awarding or administration of that specific contract; or

(2) Knowingly solicit any contribution from any person for any purpose during any period.

(c) It shall be unlawful for any person that receives a grant exceeding $250,000, or any compensated officer of a state or county grantee that receives a grant exceeding $250,000 from the State pursuant to chapter 42F, or from a county pursuant to a county charter or code, at any time from the execution of the contract through the completion of the contract for the grant, to:

(2) Knowingly solicit any contribution from any person for any purpose during any period.

(d) Any candidate, candidate committee, or noncandidate committee that receives a contribution made unlawful by this section shall return the unlawful contribution to the contributor within thirty calendar days of receipt. If any unlawful contribution is not returned to the contributor within thirty calendar days of receipt, the unlawful contribution shall escheat to the Hawaii election campaign fund.

(e) After receipt of the information submitted by a state agency pursuant to sections 11- , 27- , 103D- , and 103F- , the commission shall make the information available to candidate committees and noncandidate committees on a password‑protected section of the commission's website.

(f) Except as provided in subsections (a), (b), (c), and (d), this section shall not prohibit or make it unlawful for any person other than a state or county contractor, a state or county grantee, or any officer of a state or county contractor or grantee to establish or administer any noncandidate committee, or solicit contributions to any noncandidate committee, for the purpose of influencing the nomination for election, or the election, of any person to office.

[~~(c)~~] (g) For the purposes of this section[~~, "completion~~]:

"Completion of the contract" means that the parties to the government contract have [~~either~~] terminated the contract [~~prior to~~] before completion of performance or fully performed the duties and obligations under the contract, no disputes relating to the performance and payment remain under the contract, and all disputed claims have been adjudicated and are final.

"Officer" means an individual who is listed as an officer of a contractor or grantee on the department of commerce and consumer affairs business registration database."

SECTION 7. There is appropriated out of the Hawaii election campaign fund of the State of Hawaii the sum of $420,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the campaign spending commission; provided that the moneys shall be allocated as follows:

(1) $250,000 to build a password-protected section in its electronic filing system and to provide training, and administrative support;

(2) $150,000 for one full-time equivalent (1.0 FTE) information technology specialist; and

(3) $20,000 for equipment, supplies, software, and licenses to implement this part.

The sum appropriated shall be expended by the campaign spending commission for the purposes of this part.

PART II

SECTION 8. Section 11-364, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Any candidate, candidate committee, or noncandidate committee that receives in the aggregate more than the applicable contribution limit in section 11-357, 11-358, 11-359, or 11-360 shall return any excess contribution to the contributor within thirty calendar days of receipt of the excess contribution. Any candidate, candidate committee, or noncandidate committee that receives in the aggregate more than the applicable contribution limit in section 11-362 shall return any excess contribution to the contributor within thirty calendar days of the end of the election period; provided that the candidate, candidate committee, or noncandidate committee may choose which contributions to return. Any excess contribution not returned to the contributor within thirty calendar days shall escheat to the Hawaii election campaign fund."

PART III

SECTION 9. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 11. This Act shall take effect on July 1, 2026.

HOUSE OF REPRESENTATIVES	H.B. NO.	1519
THIRTY-THIRD LEGISLATURE, 2026		H.D. 1
STATE OF HAWAII		S.D. 2