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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1519 |
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THIRTY-THIRD LEGISLATURE, 2026 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CAMPAIGN CONTRIBUTIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1. The legislature finds that the State's existing campaign finance law prohibiting organizations that receive state and county contracts from making campaign contributions does not extend to the compensated officers of the organizations or their immediate family members.
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 or county contractors.
Accordingly, the purpose of this Act 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 or county contractors, and their immediate family members, for the duration of their contracts exceeding $250,000, from:
(A) Making contributions to the candidate committee of a candidate who is a member of, or seeking election to, the same branch of the state or county 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 or county contractors to include contributions from state or county grantees that receive grants exceeding $250,000, as well as from the compensated officers of those grantees and the compensated officers' immediate family members.
PART II
SECTION 2. 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 and
immediate family members for state contracts. (a)
At the time of the execution of a state contract exceeding $250,000, as
described in section 11-355, the contracting state agency shall require the
contractor to provide a list of the names of all compensated officers of the
contractor and the immediate family members of each officer.
(b) The contracting state agency shall make the
reported information available electronically to the campaign spending
commission for purposes of section 11-355.
(c) For purposes of this section, "immediate
family member" and "officer" have the same meaning as those
terms are defined in section 11-355."
SECTION 3. Chapter 42F, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§42F- Disclosure of compensated officers and
immediate family members for state grants. (a)
At the time of the execution of a contract for a state grant exceeding
$250,000, the expending agency executing the contract shall require the recipient
to provide a list of the names of all compensated officers of the recipient and
the immediate family members of each officer.
(b) The expending agency shall make the reported
information available electronically to the campaign spending commission for
purposes of section 11-355.
(c) For purposes of this section, "immediate family member" and "officer" have the same meaning as those terms are defined in section 11-355."
SECTION 4. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§46- Disclosure of compensated officers and
immediate family members for county contracts and grants. (a)
At the time of the execution of a county contract or grant exceeding
$250,000, as described in section 11-355, pursuant to the county charter or
code, the contracting or expending county agency shall require the contractor
or grant recipient to provide a list of the names of all compensated officers
of the contractor or grant recipient and the immediate family members of each
officer.
(b) The contracting or expending county agency
shall make the reported information available electronically to the campaign
spending commission for purposes of section 11-355.
(c) For purposes of this section, "immediate family member" and "officer" have the same meaning as those terms are defined in section 11-355."
SECTION 5. 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 and
immediate family members for state or county contracts. (a)
At the time of the execution of a state or county contract exceeding
$250,000, as described in section 11-355, the purchasing agency shall require
the contractor to provide a list of the names of all compensated officers of
the contractor and the immediate family members of each officer.
(b) The purchasing agency shall make the reported
information available electronically to the campaign spending commission for
purposes of section 11-355.
(c) For purposes of this section, "immediate family member" and "officer" have the same meaning as those terms are defined in section 11-355."
SECTION 6. 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 and
immediate family members for state or county contracts. (a)
At the time of the execution of a state contract, or county contract entered
into pursuant to this chapter, exceeding $250,000, as described in section
11-355, the purchasing agency shall require the provider to provide a list of
the names of all compensated officers of the provider and the immediate family
members of each officer.
(b) The purchasing agency shall make the reported
information available electronically to the campaign spending commission for
purposes of section 11-355.
(c) For purposes of this section, "immediate family member" and "officer" have the same meaning as those terms are defined in section 11-355."
SECTION 7. Section 11-355, Hawaii Revised Statutes, is amended to read as follows:
"[[]§11-355[]] Contributions by state [and] or
county contractors and state or county 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 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) It shall be unlawful for any compensated
officer of a state or county contractor under subsection (a), or the immediate
family members of the compensated officer, that is awarded a state or county
contract exceeding $250,000, at any time between the execution of the contract
through the completion of the contract pursuant to subsection (a), 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 the state or county 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, or the immediate
family members of the 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 between the
execution of the contract through the completion of the contract for the grant,
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.
(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.
[(b)] (e) [Except as provided in subsection (a),
this] This section [does] shall 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.] outcome of a
question or issue on a ballot.
(f) After receipt of the information submitted by
a state or county agency pursuant to sections 27- , 42F- ,
46- , 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.
[(c)] (g) For 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.
"Immediate family
member" means, notwithstanding section 11-302, the person's spouse or
reciprocal beneficiary, as defined in section 572C-3, and any dependent
children.
"Officer" means an individual who is listed as an officer on the department of commerce and consumer affairs business registration database."
PART III
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 IV
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 upon its approval.
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INTRODUCED BY: |
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Report Title:
CSC; State or County Contractors; State or County Grantees; Officers; Immediate Family Members; Prohibited Contributions
Description:
Requires disclosure of the names of compensated officers, and their immediate family members, of state or county contractors and grantees with contracts or grants exceeding $250,000. Prohibits the compensated officers of state or county contractors, and their immediate family members, from making or soliciting certain campaign contributions for the duration of the contract exceeding $250,000. Prohibits state or county grantees, including compensated officers and their immediate family members, from making or soliciting certain contributions for the duration of the grant exceeding $250,000. Requires unlawful contributions to be returned to the contributor or escheat to the Hawaii Election Campaign Fund.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.