THE SENATE

S.B. NO.

2970

THIRTY-THIRD LEGISLATURE, 2026

S.D. 1

STATE OF HAWAII

H.D. 1

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO STANDARDS OF CONDUCT.

 

 

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

 

     SECTION 1.  Section 84-15, Hawaii Revised Statutes, is amended to read as follows:

     "§84-15  Contracts.  (a)  A state agency shall not enter into any contract to procure or dispose of goods or services, or for construction, with a legislator, an employee, or a business in which a legislator or an employee has a controlling interest, [involving services or property of a value in excess of $10,000] unless:

     (1)  The contract is awarded by competitive sealed bidding pursuant to section 103D-302;

     (2)  The contract is awarded by competitive sealed proposal pursuant to section 103D-303; or

     (3)  The agency posts a notice of its intent to award the contract and files a copy of the notice with the state ethics commission at least ten days before the contract is awarded.

     (b)  A state agency shall not enter into a contract with any person or business [which] that is represented or assisted personally in the matter by a person who has been an employee of the agency within the preceding two years and who participated while in state office or employment in the matter with which the contract is directly concerned.  This subsection shall not apply to any contract that is awarded in accordance with subsection (a) with a person or business represented or assisted by a person who was a member of a task force or served as the designee or representative of a task force member.

     (c)  A state agency shall not enter into a contract to procure or dispose of goods or services, or for construction, with any business:

     (1)  That is owned or operated; or

     (2)  In which a controlling interest is held,

by a relative or household member of a department head or deputy director of a principal state department.

     (d)  The department head or acting department head of a principal state department, and any deputy director of the department, shall be responsible for ensuring that all contracts entered into by the department comply with this section.

     (e)  Any violation of this section may be assessed against the department head, acting department head, or deputy director of the department at the time the violation occurred, and against any employee who directly committed, participated in, or authorized the violation.

     (f)  As used in this section:

     "Department head" means the head of a principal state department regardless of specific title, including a director, chairperson, superintendent, comptroller, or other chief administrative officer.

     "Household member" means an individual who resides in the same dwelling unit as the department head or deputy director of a principal state department.

     "Principal state department" means a principal department of the executive branch listed in section 26-4.

     "Relative" means a department head's or deputy director's parent, grandparent, stepparent, child, grandchild, stepchild, foster child, adopted child, sibling, half-sibling, stepsibling, parent's sibling, first cousin, sibling's child, spouse, spouse's parent, child-in-law, or sibling-in-law, or any individual who has become a member of the department head's or deputy director's immediate family through the Hawaiian hanai custom."

     SECTION 2.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     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:

Code of Ethics; Prohibited Contracts; Principal State Department; Relatives and Household Members; Responsibility; Violations

 

Description:

Repeals the $10,000 value threshold for certain prohibited contracts involving legislators or employees.  Prohibits state agencies from contracting to procure or dispose of goods or services, or for construction, with businesses owned, operated, or controlled by relatives or household members of department heads or deputy directors.  Requires department heads, acting department heads, and deputy directors of principal state departments to ensure compliance with the Code of Ethics provision governing contracts and provides for liability for violations.  Effective 7/1/3000.  (HD1)

 

 

 

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