Public Contract Awards

Places restrictions on award of public contracts to persons who
made political campaign contributions to anyone involved in the
contract selection process.

THE SENATE                              S.B. NO.           1626
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Purpose.  The legislature finds that the decline
 2 in public support and confidence in government operations, public
 3 servants, and the legislative process is partially due to the
 4 perception that campaign contributions made to candidates by
 5 consultants who work for or wish to work for government entities
 6 unduly influence who receives a government contract.  This is
 7 particularly true when a political contribution is made to a
 8 person who served as a state officer or employee at the time a
 9 contract award was made, or who later serves in an elected
10 position and receives a political contribution during the
11 campaign.
12      The purpose of this Act is to prohibit the awarding of a
13 non-bid contract to any person, company, or firm if, within the
14 immediately preceding four-year period, that person, company, or
15 firm as a consultant to a state office made a campaign
16 contribution to a candidate for a state office who had any
17 involvement in or influence over the contracting process at the
18 time.  This Act would also require as a condition of a non-bid
19 contract award, that the person, company, or firm agrees not to

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                                     S.B. NO.           1626

 1 make a campaign contribution within the immediately following
 2 four-year period to a candidate for state office who had any
 3 involvement in or influence over the contracting process.
 4      SECTION 2.  Chapter 103D, Hawaii Revised Statutes, is
 5 amended by adding a new section to be appropriately designated
 6 and to read as follows:
 7      "103D-     Prohibition on the award of noncompetitive
 8 contracts to candidates for public office.  (a)  No department,
 9 agency, or office of the State shall award public contracts by
10 any means other than the competitive sealed bidding method under
11 section 103D-302, to any person, company, or firm if within the
12 immediately preceding four-year period that person, company, or
13 firm is a contributor to the campaign of any candidate for public
14 office in the State, and which candidate over the preceding
15 four-year period, was a person involved in the evaluation,
16 recommendation, selection, and negotiation process for that
17 contract.
18      (b)  As used in this section:
19      "Campaign contribution" means the same as defined in
20 section 11-191.
21      "Candidate" means any individual, belonging to any political
22 party, who seeks nomination for election, or election, to any

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                                     S.B. NO.           1626

 1 public office.
 2      "Contributor" means any person, corporation, or firm on the
 3 records of the campaign spending commission as the donor of any
 4 gift, subscription, deposit of money, or anything of value,
 5 including the cancellation of a debt or legal obligation or the
 6 purchase of tickets to a political fundraiser, for the purpose of
 7 influencing the nomination for election, or the election of, a
 8 candidate for public office.
 9      (c)  Prior to the award of any contract for purchases which
10 do not admit of competition, the purchasing agency shall consult
11 with the campaign spending commission to verify the status of the
12 prospective contractor as a qualified contractor under this
13 section.
14      (d)  Any contract let through any means other than the
15 competitive sealed bids method to any contractor identified as a
16 contributor under this section shall be void.
17      (e)  As a condition of a contract award to perform
18 professional services for a project, each prospective contractor
19 shall agree not to make a campaign contribution within the
20 immediately following four-year period to any candidate for
21 public office in the State who, in the immediately preceding four
22 years served in the evaluation, recommendation, selection, and

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                                     S.B. NO.           1626

 1 negotiation process for that contract."
 2      SECTION 3.  This Act does not affect rights and duties that
 3 matured, penalties that were incurred, and proceedings that were
 4 begun, before its effective date.
 5      SECTION 4.  New statutory material is underscored.
 6      SECTION 5.  This Act shall take effect upon its approval.
 8                           INTRODUCED BY:  _______________________