REPORT TITLE:
Public Contract Awards


DESCRIPTION:
Places restrictions on award of public contracts to persons who
made political campaign contributions to anyone involved in the
contract selection process.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO PUBLIC CONTRACTS.



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

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

 
Page 2                                                     1626
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 contribution within the immediately following four-year period to
 
 2 a candidate for state office who had any involvement in or
 
 3 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 time from commencement of contract negotiations to completion of
 
13 performance of the contract or termination of negotiations,
 
14 whichever occurs last, that person, company, or firm is a
 
15 contributor to the campaign of any candidate for public office in
 
16 the State, and which candidate over the time from commencement of
 
17 contract negotiations to completion of performance of the
 
18 contract or termination of negotiations, whichever occurs last,
 
19 was a person involved in the evaluation, recommendation,
 
20 selection, and negotiation process for that contract.
 
21      (b)  As used in this section:
 
22      "Campaign contribution" means the same as defined in
 
23 section 11-191.
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

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

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 whichever occurs last, to any candidate for public office in the
 
 2 State who, within the time from commencement of contract
 
 3 negotiations to completion of the performance of contract or
 
 4 termination of negotiations, whichever occurs last, served in the
 
 5 evaluation, recommendation, selection, and negotiation process
 
 6 for that contract."
 
 7      SECTION 3.  This Act does not affect rights and duties that
 
 8 matured, penalties that were incurred, and proceedings that were
 
 9 begun, before its effective date.
 
10      SECTION 4.  New statutory material is underscored.
 
11      SECTION 5.  This Act shall take effect upon its approval.