Report Title:

Elections; Campaign Spending



Prohibits contractors and subcontractors from contributing to a candidate or elected official for 1 year before, during the contract, and 1 year after the contract in the case of any "request for proposal", "procurement of services" contracts where price is a negotiable factor.



S.B. NO.









relating to elections.



SECTION 1. Findings and purpose. The legislature finds that some public contracts are awarded to contractors with an understanding that the contractors will make contributions to the candidate or elected official. The effect of this is to inflate the costs of contracts, where such costs are passed on to the public. It is the purpose of this Act to establish a period of one year before the letting of contracts, the period of the contract, and one year after completion of terms of a contract where campaign contributions by the contractors and subcontractors to a candidate or elected officials will be prohibited. The prohibition will only pertain to "request for proposal" and "procurement of services" contracts where price is a negotiable factor.

SECTION 2. Section 11-205.5, Hawaii Revised Statutes, is amended to read as follows:

"11-205.5 Campaign contributions by state contractors. (a) Any person making [a] an expenditure for or contribution to any candidate, committee, or political party, [and who has received, in any calendar year, $50,000 or more through] shall be prohibited from receiving contracts from the State, or county [shall register and report that fact to the commission within thirty days of the date of the contribution or within thirty days of the date of the contract, whichever occurs later; provided that this section shall not apply to a person who has received $50,000 or more through a grant, subsidy, or purchase of service agreement under chapter 42F or 103F.], as described under section 103D-303 and section 103D-304. This prohibition shall apply from within one year of notice of the availability of the contract, or the date of the contract, whichever is earlier. No person that receives a contract shall make expenditures or contributions to a candidate, candidate committee, or party within one year after completion of all terms of the contract.

(b) [The commission shall prescribe forms and procedures for the reporting required in subsection (a) which, at a minimum, shall require the following information:

(1) The name and address of the person making the contribution;

(2) The name of the candidate, committee, or political party receiving the contribution;

(3) The amount of money received from the State or county, the dates, and information identifying each contract and describing the service performed or goods provided; and

(4) If an entity is making the contribution, the names and business addresses of the principals, including officers and directors.] For purposes of this section, any person shall include primary contracts and subcontracts, and any similar agreement with the State or county.

(c) [The commission shall maintain a list of such reports for public inspection both at the commission's office and through the state FYI electronic bulletin board.] Contributions and expenditures shall be prohibited from principals directly associated with contracts and subcontracts, including immediate family members, during the same time period provided under subsection (a)."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.