SB 2530: CSC; State Contractors; State Grantees; Officers; Immediate Family Members; Prohibited Contributions; Appropriation
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2026-03-24
Current Status:
Failed
(2026-04-27: Received notice of change in conferees (Hse. Com. No. 837).)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
What does this bill do?
The bill requires state contractors with contracts above the small‑purchase threshold and state grant recipients getting more than $250,000 to disclose the names of their paid officers and those officers’ immediate family members. It also bars those officers and their immediate family from making, promising, or soliciting certain campaign contributions while the contract or grant is in effect, and says any unlawful contributions must be returned or go to the Hawaii Election Campaign Fund.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Requires disclosure of the names of compensated officers, and their immediate family members, of state contractors with contracts exceeding the small purchase threshold established under the Hawaii Public Procurement Code and grantees with grants exceeding $250,000. Prohibits the compensated officers of state contractors, and their immediate family members, from making, promising, or soliciting certain campaign contributions for the duration of the contract exceeding the small purchase threshold. Prohibits state grantees, including compensated officers and their immediate family members, from making, promising, 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. Appropriates funds. Effective 7/1/3000. (HD1)
Prohibits state or county contractor's compensated officers and any officer's immediate family, with contracts exceeding the small purchase threshold pursuant to section 103D-305, Hawaii Revised Statutes, from contributing to candidate or noncandidate committees, candidates, or any person for any political purpose for the duration of the contract. Prohibits grantees, grantees' compensated officers and grantees' officer's immediate family, with grants of more than $100,000, from contributing to candidate or noncandidate committees, candidates, or any person for any political purpose for the duration of the grant. Requires any unlawful contribution to be returned to the contributor or it will escheat to the Hawaii election campaign fund. Requires the disclosure of names of any compensated officers and immediate family members of a state or county contractor or grantee for contracts or grants exceeding a certain amount. Requires the Campaign Spending Commission to make available to candidate and noncandidate committees the disclosed names in a password-protected database. Appropriates moneys. Effective 7/1/2050. (SD2)
Prohibits state or county contractor's compensated officers and any officer's immediate family, with contracts of $100,000 or more for goods or services or $250,000 or more for construction, from contributing to candidate or noncandidate committees, candidates, or any person for any political purpose for the duration of the contract. Prohibits grantees, grantees' compensated officers and grantees' officer's immediate family, with grants of more than $100,000, from contributing to candidate or noncandidate committees, candidates, or any person for any political purpose for the duration of the grant. Requires any unlawful contribution to be returned to the contributor or it will escheat to the Hawaii election campaign fund. Requires the disclosure of names of any compensated officers and immediate family members of a state or county contractor or grantee for contracts or grants exceeding a certain amount. Requires the Campaign Spending Commission to make available to candidate and noncandidate committees the disclosed names in a password-protected database. Effective 11/4/2026. (SD1)
Prohibits state or county contractor's officers and any officer's immediate family, with contracts of $100,000 or more for goods or services or $250,000 or more for construction, from contributing to candidate or noncandidate committees, candidates, or any person for any political purpose for the duration of the contract. Prohibits grantees, grantees' officers and grantees' officer's immediate family, with grants of more than $100,000, from contributing to candidate or noncandidate committees, candidates, or any person for any political purpose for the duration of the grant. Requires any unlawful contribution to be returned to the contributor or it will escheat to the Hawaii election campaign fund.
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THE SENATE |
S.B. NO. |
2530 |
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THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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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 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. These grantees receive public funds appropriated by a legislative body, similar to state 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 contractors, and their immediate family members, for the duration of their contracts exceeding the small purchase threshold established under the Hawaii public procurement code, from:
(A) Making, or promising to make, contributions to the candidate committee of a candidate who is a member of, or seeking election to, the same branch of the state 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 contractors to include contributions from state 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) Within thirty calendar days of fully executing a state contract exceeding the small purchase threshold described in section 103D-305(a), the contracting state agency shall, pursuant to section 11-355, 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. The campaign spending commission shall prescribe a standard form and require the contractor to certify the accuracy of the form. Contractors shall update disclosures within thirty calendar days of any change in the officers or immediate family members.
(b) The contracting state agency shall make the reported information available electronically to the campaign spending commission within thirty calendar days of fully executing the contract, without obligation to verify accuracy or completeness for purposes of section 11-355.
(c) The contracting state agency's responsibility under this section shall be limited to receiving and transmitting the information submitted by the contractor. The contracting state agency shall not be responsible for verifying the accuracy, completeness, or correctness of the information submitted.
(d) Failure of a contractor to submit the information required under this section shall constitute a material noncompliance. A contracting state agency may withhold execution, suspend performance, or pursue remedies available under the contract or applicable law until the required information is submitted.
(e) For purposes of this section, "immediate family member" and "officer" have the same meanings 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) Within thirty calendar days of fully executing 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. The campaign spending commission shall prescribe a standard form and require the recipient to certify the accuracy of the form. Recipients shall update disclosures within thirty calendar days of any change in the officers or immediate family members.
(b) The expending agency shall make the reported information available electronically to the campaign spending commission within thirty calendar days of fully executing the contract, without obligation to verify accuracy or completeness for purposes of section 11-355.
(c) The expending agency's responsibility under this section shall be limited to receiving and transmitting the information submitted by the recipient. The expending agency shall not be responsible for verifying the accuracy, completeness, or correctness of the information submitted.
(d) Failure of a recipient to submit the information required under this section shall constitute a material failure to comply with the terms and conditions of the grant. An expending agency may withhold grant funds until the required information is submitted.
(e) For purposes of this section, "immediate family member" and "officer" have the same meanings as those terms are defined in section 11-355."
SECTION 4. 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 contracts. (a) Within thirty calendar days of fully executing a state contract exceeding the small purchase threshold described in section 103D-305(a), the purchasing agency shall, pursuant to section 11-355, 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. The campaign spending commission shall prescribe a standard form and require the contractor to certify the accuracy of the form. Contractors shall update disclosures within thirty calendar days of any change in the officers or immediate family members.
(b) The purchasing agency shall make the reported information available electronically to the campaign spending commission within thirty calendar days of fully executing the contract, without obligation to verify accuracy or completeness for purposes of section 11-355.
(c) The purchasing agency's responsibility under this section shall be limited to receiving and transmitting the information submitted by the contractor. The purchasing agency shall not be responsible for verifying the accuracy, completeness, or correctness of the information submitted.
(d) Failure of a contractor to submit the information required under this section shall be subject to sections 103D-702 and 103D-707.
(e) For purposes of this section, "immediate family member" and "officer" have the same meanings as those terms are defined in section 11-355."
SECTION 5. 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 contracts. (a) Within thirty calendar days of fully executing a state contract exceeding the small purchase threshold described in section 103D-305(a), the purchasing agency shall, pursuant to section 11-355, require the contractor or provider to provide a list of the names of all compensated officers of the contractor or provider and the immediate family members of each officer. The campaign spending commission shall prescribe a standard form and require the contractor or provider to certify the accuracy of the form. Contractors or providers shall update disclosures within thirty calendar days of any change in the officers or immediate family members.
(b) The purchasing agency shall make the reported information available electronically to the campaign spending commission within thirty calendar days of fully executing the contract, without obligation to verify accuracy or completeness for purposes of section 11-355.
(c) The purchasing agency's responsibility under this section shall be limited to receiving and transmitting the information submitted by the contractor or provider. The purchasing agency shall not be responsible for verifying the accuracy, completeness, or correctness of the information submitted.
(d) Failure of a contractor or provider to submit the information required under this section shall constitute a material noncompliance. A purchasing agency may withhold execution, suspend performance, or pursue remedies available under the contract or applicable procurement law until the required information is submitted.
(e) For purposes of this section, "immediate family member" and "officer" have the same meanings as those terms are defined in section 11-355."
SECTION 6. Section 11-355, Hawaii Revised Statutes, is amended to read as follows:
"[[]§11-355[]] Contributions by state [and] or
county contractors, state grantees, and the compensated officers and
immediate family members of state contractors or 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] from
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 contractor under subsection (a), or the immediate family members of the compensated officer, that is awarded a state contract exceeding the small purchase threshold described in section 103D-305(a), at any time from 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 the candidate committee of a candidate who is a member of, or seeking election to, the same branch of the state 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 grantee that receives a grant exceeding $250,000, or the immediate family members of the compensated officer of a state grantee that receives a grant exceeding $250,000, from the State pursuant to chapter 42F, at any time from 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 agency pursuant to sections 27- , 42F- , 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 of the person or spouse or reciprocal beneficiary of the dependent.
"Officer" means an individual who is listed as an officer on the department of commerce and consumer affairs business registration database."
SECTION 7. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 for system updates, training, and administrative support for the state procurement office to implement this part.
The sum appropriated shall be expended by the state procurement office for the purposes of this Act.
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 on July 1, 3000; provided that section 7 shall take effect on July 1, 2026.
Report Title:
CSC; State Contractors; State Grantees; Officers; Immediate Family Members; Prohibited Contributions; Appropriation
Description:
Requires disclosure of the names of compensated officers, and their immediate family members, of state contractors with contracts exceeding the small purchase threshold established under the Hawaii Public Procurement Code and grantees with grants exceeding $250,000. Prohibits the compensated officers of state contractors, and their immediate family members, from making, promising, or soliciting certain campaign contributions for the duration of the contract exceeding the small purchase threshold. Prohibits state grantees, including compensated officers and their immediate family members, from making, promising, 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. Appropriates funds. Effective 7/1/3000. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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THE SENATE |
S.B. NO. |
2530 |
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THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 2 |
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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:
SECTION 1. The integrity of the State's government and its contracting and grant-making processes is fundamental to maintaining public trust and preventing corruption or the appearance of corruption. This Act represents a crucial step towards transparency and accountability in government spending and the electoral process.
Existing campaign finance law prohibits organizations with state and county contracts from making political contributions, but this prohibition has proven insufficient to prevent undue influence. For example, the law permits officers and family members of government contractors to make substantial campaign contributions, creating an appearance of pay-to-play politics and raising concerns of quid pro quo corruption. Similar to contractors, grantees receive state and county funds and thus should be treated similarly in the context of political contributions. Whether as contractors or grantees, the flow of money from individuals with a direct financial interest in government decisions undermines the public's confidence that state and county contracts and grants are awarded based on merit rather than political favor. To combat any undue influence that arises from these contributions, it is necessary to strengthen prohibitions on political contributions from those who financially benefit from government contracts and grants.
Accordingly, the purpose of this Act is to address this defect and:
(1) Expand the ban on contributions from state and county contractors to state and county grantees as well as to the contractors' and grantees' compensated officers and their immediate family members for contracts and grants above certain thresholds;
(2) Require the disclosure of names of any compensated officers and their immediate family members of a state or county contractor or grantee for contracts or grants exceeding a certain threshold;
(3) Require the campaign spending commission to make available to candidate and noncandidate committees a database that is on a password-protected section of its website compiling the names of state and county contractors and grantees, their compensated officers, and the officer's immediate family members; and
(4) Appropriate moneys to the campaign spending commission to establish a password protected filing system, and to provide updates, training, and administrative support.
SECTION 2. Section 11-355, Hawaii Revised Statutes, is amended to read as follows:
"[[]§11-355[]] Contributions by state [and] or
county contractors, state or county grantees, compensated officers of state
or county contractors or the officer's immediate family, and compensated
officers of state or county grantees or the officer's immediate family;
disclosures; database; 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, 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, or the officer's immediate family, of any state or county contractor under subsection (a) that is awarded a state or county contract exceeding the small purchase threshold pursuant to section 103D-305, at any time between the execution of the contract through the completion of the contract pursuant to subsection (h), 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.
(c) It shall be unlawful for any person who receives a grant or subsidy of $100,000 or more 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 or subsidy 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) It shall be unlawful for any compensated officer, or the officer's immediate family, of a state or county grantee under subsection (c), at any time between the execution of the contract through the completion of the contract for the grant or subsidy pursuant to subsection (h), 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.
(e) 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)] (f) Except as provided in [subsection] subsections
(a), (b), (c), and (d), 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, the state or county grantee, the
compensated officers of the state or county grantee, or the officer's immediate
family of a state or county contractor or grantee, for the purpose of
influencing the nomination for election, or the election of any person to
office.
(g) At the time of execution of a contract or grant subject to this section that meets the applicable thresholds described in subsections (b) or (c), a state or county contractor or grantee shall disclose to the commission a list of the names of any compensated officers and the officer's immediate family. The commission shall make the disclosed information available to candidate and noncandidate committees in a database that is on a password-protected section of the commission's website; provided that the name of the contractor or grantee and any officers may also be made available to the public.
[(c)] (h) 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.
"Officer" means an individual who is:
(1) The owner of a sole proprietorship;
(2) A general partner of a general partnership, limited or limited liability partnership;
(3) A manager or co-manager of a limited liability company; or
(4) An officer of a corporation or any of the entities described in this section.
"Officer's immediate family" means a spouse or reciprocal beneficiary, as defined in section 572C-3, and any child, any dependent, and the spouse or reciprocal beneficiary of the dependent."
SECTION 3. 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."
SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 for the campaign spending commission to establish a password protected filing system, and to provide updates, training, and administrative support.
The sum appropriated shall be expended by the campaign spending commission for the purposes of this Act.
SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 2050; provided that this Act shall only apply to contracts or grants executed on or after the effective date of this Act.
Report Title:
Campaign Spending Commission Package; State or County Contractors; State or County Grantees; Officers; Immediate Family; Prohibited Contributions; Appropriation
Description:
Prohibits state or county contractor's compensated officers and any officer's immediate family, with contracts exceeding the small purchase threshold pursuant to section 103D-305, Hawaii Revised Statutes, from contributing to candidate or noncandidate committees, candidates, or any person for any political purpose for the duration of the contract. Prohibits grantees, grantees' compensated officers and grantees' officer's immediate family, with grants of more than $100,000, from contributing to candidate or noncandidate committees, candidates, or any person for any political purpose for the duration of the grant. Requires any unlawful contribution to be returned to the contributor or it will escheat to the Hawaii election campaign fund. Requires the disclosure of names of any compensated officers and immediate family members of a state or county contractor or grantee for contracts or grants exceeding a certain amount. Requires the Campaign Spending Commission to make available to candidate and noncandidate committees the disclosed names in a password-protected database. Appropriates moneys. Effective 7/1/2050. (SD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
2530 |
|
THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 1 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO CAMPAIGN CONTRIBUTIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The integrity of the State's government and its contracting and grant-making processes is fundamental to maintaining public trust and preventing corruption or the appearance of corruption. This Act represents a crucial step towards transparency and accountability in government spending and the electoral process.
Existing campaign finance law prohibits organizations with state and county contracts from making political contributions, but this prohibition has proven insufficient to prevent undue influence. For example, the law permits officers and family members of government contractors to make substantial campaign contributions, creating an appearance of pay-to-play politics and raising concerns of quid pro quo corruption. Similar to contractors, grantees receive state and county funds and thus should be treated similarly in the context of political contributions. Whether as contractors or grantees, the flow of money from individuals with a direct financial interest in government decisions undermines the public's confidence that state and county contracts and grants are awarded based on merit rather than political favor. To combat any undue influence that arises from such contributions, it is necessary to strengthen prohibitions on political contributions from those who financially benefit from government contracts and grants.
Accordingly, the purpose of this Act is to address this defect and:
(1) Expand the ban on contributions from state and county contractors to state and county grantees as well as to the contractors' and grantees' compensated officers and their immediate family members for contracts and grants above certain thresholds;
(2) Require the disclosure of names of any compensated officers and their immediate family members of a state or county contractor or grantee for contracts or grants exceeding a certain threshold; and
(3) Require the Campaign Spending Commission to make available to candidate and noncandidate committees a database that is on a password-protected section of its website compiling the names of state and county contractors and grantees, their compensated officers, and the officer's immediate family members.
SECTION 2. Section 11-355, Hawaii Revised Statutes, is amended to read as follows:
"[[]§11-355[]] Contributions by state [and] or
county contractors, state or county grantees, compensated officers of state
or county contractors or the officer's immediate family, and compensated officers
of state or county grantees or the officer's immediate family; disclosures;
database; 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, 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, or the officer's immediate family, of any state or county contractor under subsection (a) that is awarded a state or county contract of $100,000 or more for goods or services, or $250,000 or more for construction, at any time between the execution of the contract through the completion of the contract pursuant to subsection (h), 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.
(c) It shall be unlawful for any person who receives a grant or subsidy of $100,000 or more 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 or subsidy 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) It shall be unlawful for any compensated officer, or the officer's immediate family, of a state or county grantee under subsection (c), at any time between the execution of the contract through the completion of the contract for the grant or subsidy pursuant to subsection (h), 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.
(e) 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)] (f) Except as provided in [subsection] subsections
(a), (b), (c), and (d), 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, the state or county grantee, the compensated
officers of the state or county grantee, or the officer's immediate family of a
state or county contractor or grantee, for the purpose of influencing the
nomination for election, or the election of any person to office.
(g) At the time of execution of a contract or grant subject to this section that meets the applicable thresholds described in subsections (b) or (c), a state or county contractor or grantee shall disclose to the commission a list of the names of any compensated officers and the officer's immediate family. The commission shall make the disclosed information available to candidate and noncandidate committees in a database that is on a password-protected section of the commission's website; provided that the name of the contractor or grantee and any officers may also be made available to the public.
[(c)] (h) 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.
"Officer" means an individual who is:
(1) The owner of a sole proprietorship;
(2) A general partner of a general partnership, limited or limited liability partnership;
(3) A manager or co-manager of a limited liability company; or
(4) An officer of a corporation or any of the entities described in this section.
"Officer's immediate family" means a spouse or reciprocal beneficiary, as defined in section 572C-3, and any child, any dependent, and the spouse or reciprocal beneficiary of the dependent."
SECTION 3. 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."
SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on November 4, 2026; provided that this Act shall only apply to contracts or grants executed on or after the effective date of this Act.
Report Title:
Campaign Spending Commission Package; State or County Contractors; State or County Grantees; Officers; Immediate Family; Prohibited Contributions
Description:
Prohibits state or county contractor's compensated officers and any officer's immediate family, with contracts of $100,000 or more for goods or services or $250,000 or more for construction, from contributing to candidate or noncandidate committees, candidates, or any person for any political purpose for the duration of the contract. Prohibits grantees, grantees' compensated officers and grantees' officer's immediate family, with grants of more than $100,000, from contributing to candidate or noncandidate committees, candidates, or any person for any political purpose for the duration of the grant. Requires any unlawful contribution to be returned to the contributor or it will escheat to the Hawaii election campaign fund. Requires the disclosure of names of any compensated officers and immediate family members of a state or county contractor or grantee for contracts or grants exceeding a certain amount. Requires the Campaign Spending Commission to make available to candidate and noncandidate committees the disclosed names in a password-protected database. Effective 11/4/2026. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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THE SENATE |
S.B. NO. |
2530 |
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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:
SECTION 1. The integrity of Hawaii's government and its contracting and grant-making processes is fundamental to maintaining public trust and preventing corruption or the appearance of corruption. This bill represents a crucial step towards transparency and accountability in government spending and the electoral process.
Existing campaign finance law prohibits organizations with state and county contracts from making political contributions, but this prohibition has proven insufficient to prevent undue influence. A significant loophole permits officers and family members of government contractors to make substantial campaign contributions, creating an appearance of pay-to-play politics and raising concerns of quid pro quo corruption. Similar to contractors, grantees receive state and county funds and thus should be treated similarly in the context of political contributions. Whether as contractors or grantees, the flow of money from individuals with a direct financial interest in government decisions undermines the public's confidence that state and county contracts and grants are awarded based on merit rather than political favor. To combat any undue influence that arises from such contributions, it is necessary to close this loophole and strengthen prohibitions on political contributions from those who financially benefit from government contracts and grants.
Accordingly, this Act addresses this defect and expands the ban on contributions from state and county contractors to state and county grantees as well as to the contractors' and grantees' officers and the contractors' and grantees' officers' immediate family to ensure a more comprehensive and effective ban to enhance and restore public trust in the electoral process.
SECTION 2. Section 11-355, Hawaii Revised Statutes, is amended to read as follows:
"[[]§11-355[]] Contributions by state [and] or
county contractors, state or county grantees, officers of state or county
contractors or the officer's immediate family, officers of state or county
grantees or the officer's immediate family; 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, 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 officer, or the officer's immediate family, of any state or county contractor under subsection (a) that is awarded a state or county contract of $100,000 or more for goods or services, or $250,000 or more for construction, at any time between the execution of the contract through the completion of the contract pursuant to subsection (g), 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.
(c) It shall be unlawful for any person who receives a grant or subsidy of more than $100,000 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 or subsidy 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) It shall be unlawful for any officer, or the officer's immediate family, of a state or county grantee under subsection (c), at any time between the execution of the contract through the completion of the contract for the grant or subsidy pursuant to subsection (g), 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.
(e) 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)] (f) Except as provided in [subsection] subsections
(a), (b), (c), and (d), 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 the state or county grantee, the
officers of the state or county grantee, or the officer's immediate family of a
state or county contractor or grantee, for the purpose of influencing the
nomination for election, or the election of any person to office.
[(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.
"Officer" means an individual who is:
(1) The owner of a sole proprietorship;
(2) A general partner of a general partnership, limited or limited liability partnership;
(3) A manager or co-manager of a limited liability company; or
(4) An officer of a corporation or any of the entities described in this section.
"Officer's immediate family" means a spouse or reciprocal beneficiary, as defined in section 572C-3, and any child, any dependent, and the spouse or reciprocal beneficiary of the dependent."
SECTION 3. 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."
SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on November 4, 2026.
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INTRODUCED BY: |
_____________________________ |
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By Request |
Report Title:
Campaign Spending Commission Package; State or County Contractors; State or County Grantees; Officers; Immediate Family; Prohibited Contributions
Description:
Prohibits state or county contractor's officers and any officer's immediate family, with contracts of $100,000 or more for goods or services or $250,000 or more for construction, from contributing to candidate or noncandidate committees, candidates, or any person for any political purpose for the duration of the contract. Prohibits grantees, grantees' officers and grantees' officer's immediate family, with grants of more than $100,000, from contributing to candidate or noncandidate committees, candidates, or any person for any political purpose for the duration of the grant. Requires any unlawful contribution to be returned to the contributor or it will 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.
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Date
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Status
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| Apr 27, 2026 | Received notice of change in conferees (Hse. Com. No. 837). |
| Apr 24, 2026 | House Conferees Added: Representative Garcia added as Conferee. |
| Apr 23, 2026 | Received notice of appointment of House conferees (Hse. Com. No. 811). |
| Apr 22, 2026 | House Conferees Appointed: Tarnas, Takenouchi Co-Chairs; Poepoe. |
| Apr 16, 2026 | Received notice of disagreement (Sen. Com. No. 710). |
| Apr 16, 2026 | Senate disagrees with House amendments. |
| Apr 16, 2026 | Received from House (Hse. Com. No. 668). |
| Apr 14, 2026 | Passed Third Reading with Representative(s) Alcos, Belatti, Cochran, Garcia, Gedeon, Grandinetti, Iwamoto, Perruso, Reyes Oda voting aye with reservations; Representative(s) Pierick voting no (1) and Representative(s) Quinlan excused (1). Transmitted to Senate. |
| Apr 10, 2026 | Reported from FIN (Stand. Com. Rep. No. 2163-26), recommending passage on Third Reading. |
| Apr 7, 2026 | The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 16 Ayes: Representative(s) Todd, Takenouchi, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Templo, Yamashita; Ayes with reservations: Representative(s) Hartsfield, Perruso, Alcos, Gedeon, Reyes Oda; Noes: none; and Excused: none. |
| Apr 2, 2026 | Bill scheduled to be heard by FIN on Tuesday, 04-07-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE. |
| Mar 25, 2026 | Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with Representative(s) Cochran voting aye with reservations; none voting no (0) and Representative(s) Matsumoto, Perruso excused (2). |
| Mar 25, 2026 | Reported from JHA (Stand. Com. Rep. No. 1405-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN. |
| Mar 19, 2026 | The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Tarnas, Poepoe, Hashem, Kahaloa, Takayama, Cochran, Garcia, Shimizu; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Belatti, Sayama. |
| Mar 17, 2026 | Bill scheduled to be heard by JHA on Thursday, 03-19-26 2:00PM in House conference room 325 VIA VIDEOCONFERENCE. |
| Mar 12, 2026 | Referred to JHA, FIN, referral sheet 17 |
| Mar 12, 2026 | Pass First Reading |
| Mar 10, 2026 | Received from Senate (Sen. Com. No. 257) in amended form (SD 2). |
| Mar 10, 2026 | Report Adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: Senator(s) DeCoite, Inouye, San Buenaventura. Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Mar 6, 2026 | 48 Hrs. Notice 03-10-26. |
| Mar 6, 2026 | Reported from WAM (Stand. Com. Rep. No. 2998) with recommendation of passage on Third Reading, as amended (SD 2). |
| Mar 2, 2026 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Feb 27, 2026 | The committee on WAM has rescheduled its decision making to 03-02-26 10:02AM; CR 211 & Videoconference. |
| Feb 23, 2026 | The committee(s) on WAM will hold a public decision making on 03-02-26 10:31AM; Conference Room 211 & Videoconference. |
| Feb 19, 2026 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. |
| Feb 19, 2026 | Reported from JDC (Stand. Com. Rep. No. 2443) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM. |
| Feb 10, 2026 | The committee(s) on JDC recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in JDC were as follows: 5 Aye(s): Senator(s) Rhoads, Gabbard, Chang, Awa; Aye(s) with reservations: Senator(s) San Buenaventura ; 0 No(es): none; and 0 Excused: none. |
| Feb 5, 2026 | The committee(s) on JDC has scheduled a public hearing on 02-10-26 9:15AM; Conference Room 016 & Videoconference. |
| Jan 28, 2026 | Referred to JDC, WAM. |
| Jan 23, 2026 | Passed First Reading. |
| Jan 23, 2026 | Introduced. |
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Date
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Description
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Location
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Votes
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| Apr 14, 2026 | Third Reading | House Floor |
Passed |
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| Apr 7, 2026 | The committee on FIN recommend that the measure be PASSED, UNAMENDED | House Standing Committee on Finance |
Passed |
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| Mar 19, 2026 | The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Judiciary & Hawaiian Affairs |
Passed |
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| Mar 10, 2026 | Third Reading | Senate Floor |
Passed |
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| Mar 2, 2026 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Ways and Means |
Passed |
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| Feb 10, 2026 | The committee(s) on JDC recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Judiciary |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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| 350 Hawaiʻi | *** Against | Apr 7, 2026 |
| Campaign Spending Commission | *** Support | Mar 19, 2026 |
| Carbon Cashback Hawaiʻi | *** Against | Apr 7, 2026 |
| Clean Elections Hawaiʻi | *** Against | Apr 7, 2026 |
| Clean The Pacific | *** Support | Apr 7, 2026 |
| Common Cause Hawaii | *** Support | Feb 10, 2026 |
| Environmental Caucus, Democratic Party of Hawaiʻi | *** Against | Apr 7, 2026 |
| Free Access Coalition | *** Support | Mar 1, 2026 |
| Green Party of Hawai’i | *** Support | Mar 1, 2026 |
| Hawaiʻi Tax Fairness Coalition | *** Against | Apr 7, 2026 |
| Hawaiʻi Workers Center | *** Against | Apr 7, 2026 |
| Hawai‘i Alliance for Progressive Action (HAPA) | *** Against | Apr 7, 2026 |
| Honolulu Tenants Union | *** Against | Apr 7, 2026 |
| HULI PAC | *** Support | Mar 1, 2026 |
| Imua Alliance | *** Against | Apr 7, 2026 |
| Indivisible Hawaii | *** Support | Apr 7, 2026 |
| Indivisible Hawaii Statewide Network | *** Support | Apr 7, 2026 |
| Indivisible Hawaii Statewide Network (IHSN) | *** Support | Apr 7, 2026 |
| Indivisible Windward | *** Support | Apr 7, 2026 |
| KahuPuna | *** Support | Mar 1, 2026 |
| Kupuna for the Moopuna | *** Support | Mar 1, 2026 |
| League of Women Voters of Hawaii | *** Against | Apr 7, 2026 |
| Our Hawaiʻi | *** Against | Apr 7, 2026 |
| Sierra Club of Hawaiʻi | *** Against | Apr 7, 2026 |
| State Procurement Office | *** Support | Mar 1, 2026 |
STAND. COM. REP. NO. 2998
Honolulu, Hawaii
RE: S.B. No. 2530
S.D. 2
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred S.B. No. 2530, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO CAMPAIGN CONTRIBUTIONS,"
begs leave to report as follows:
The purpose and intent of this measure is to make certain amendments to campaign contribution laws.
Specifically, the measure:
(1) Extends the prohibitions on campaign contributions from state and county contractors to the compensated officers of the contractor and the officers' immediate family members for the duration of any contract of no less than $100,000 for goods and services or no less than $250,000 for a construction contract;
(2) Prohibits grantees awarded no less than $100,000 pursuant to chapter 42F, Hawaii Revised Statutes, the grantees' compensated officers, and the compensated officers' immediate family members from making or soliciting campaign contributions;
(3) Requires any unlawful contribution to be returned to the contributor within thirty calendar days of receipt;
(4) Requires disclosure of the names of any compensated officers and immediate family members of a state or county contractor or grantee for contracts or grants that exceed the applicable amounts; and
(5) Requires the Campaign Spending Commission to make available to candidate and noncandidate committees the foregoing disclosed names in a password-protected database.
Your Committee received written comments in support of this measure from the Campaign Spending Commission, Free Access Coalition, Kupuna for the Moopuna, Green Party of Hawaii, Hawaii Alliance for Progressive Action, League of Women Voters of Hawaii, HULI PAC, Imua Alliance, Indivisible Hawaii Statewide Network, KahuPuna, and numerous individuals.
Your Committee received written comments in opposition to this measure from one individual.
Your Committee received written comments on this measure from the State Procurement Office.
Your Committee recognizes that although existing election campaign finance laws prohibit state and county contractors from making campaign contributions for the duration of their contracts, the officers of those contractors and the officers' immediate families are not subject to these prohibitions. Your Committee believes that to prevent unintended opportunities for undue influence, contributions by those officers and family members should also be restricted. Your Committee also finds it appropriate to apply the same prohibitions on campaign contributions to recipients of grants under chapter 42F, Hawaii Revised Statutes, their officers, and officers' family members.
Your Committee further believes that the Campaign Spending Commission should also focus on compliance and auditing to ensure that candidates comply with campaign spending laws and rules. Your Committee recommends that the Campaign Spending Commission establish a training program to educate candidates and candidate committee officers.
Your Committee has amended this measure by:
(1) Replacing the dollar-specific contract thresholds that trigger the prohibitions imposed on the officers of contractors and the officers' immediate family members with a cross reference to the small purchase threshold under section 103D-305, Hawaii Revised Statutes;
(2) Appropriating an unspecified sum to the Campaign Spending Commission to establish a password-protected filing system, and to provide updates, training, and administrative support; and
(3) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2530, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2530, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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________________________________ DONOVAN M. DELA CRUZ, Chair |
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STAND. COM. REP. NO. 2443
Honolulu, Hawaii
RE: S.B. No. 2530
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Sir:
Your Committee on Judiciary, to which was referred S.B. No. 2530 entitled:
"A BILL FOR AN ACT RELATING TO CAMPAIGN CONTRIBUTIONS,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Prohibit state or county contractor's officers and any officer's immediate family, with contracts of $100,000 or more for goods or services or $250,000 or more for construction, from contributing to candidate or noncandidate committees, candidates, or any person for any political purpose for the duration of the contract;
(2) Prohibit grantees, grantees' officers, and grantees' officer's immediate family, with grants of more than $100,000, from contributing to candidate or noncandidate committees, candidates, or any person for any political purpose for the duration of the grant; and
(3) Require any unlawful contribution to be returned to the contributor or it will escheat to the Hawaii Election Campaign Fund.
Your Committee received testimony in support of this measure from the Campaign Spending Commission, Indivisible Hawaiʻi, League of Women Voters of Hawaii, Green Party of Hawaiʻi, Imua Alliance, and twenty-five individuals.
Your Committee received comments on this measure from the State Procurement Office and Hawaiʻi Alliance of Nonprofit Organizations.
Your Committee finds that existing law prohibits a state or county contractor from making political contributions for the duration of lucrative contracts for goods or services or construction. However, officers and their immediate family members may themselves make political contributions which can create the appearance of undue influence, or, conceivably, be a means for a contractor to make a contribution that it would otherwise be prohibited from making. This measure will increase transparency and improve public confidence in government and the electoral process by expanding the prohibition on political contributions to include officers and immediate family members of state and county contractors for contracts above a certain threshold. This measure will similarly apply to the prohibitions to organizations that receive state or county grants and their officers and immediate family members, for grants above a certain threshold.
Your Committee notes the concern raised by the League of Women Voters of Hawaii and Hawaiʻi Alliance of Nonprofit Organizations that this measure, in its current form, would apply to uncompensated volunteers with no financial stake in government awards. Therefore, amendments to this measure are necessary to address this concern.
Your Committee has amended this measure by:
(1) Specifying that the restrictions on contributions from state and county contractors and state and county grantees, including the contractors' and grantees' officers, applies only to their officers who are compensated;
(2) Inserting language requiring a state or county contractor or grantee to disclose to the Campaign Spending Commission a list of the names of any compensated officers and the officer's immediate family;
(3) Inserting language requiring the Campaign Spending Commission to make the information disclosed available to candidate and noncandidate committees in a database that is on a password‑protected section of the Commission's website under certain conditions;
(4) Clarifying that this measure shall only apply to contracts and grants executed on or after its effective date;
(5) Amending section 1 to reflect its amended purpose; and
(6) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2530, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2530, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Judiciary,
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________________________________ KARL RHOADS, Chair |
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Date
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Testimony PDF
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| Apr 7, 2026 | SB2530_HD1_TESTIMONY_FIN_04-07-26_.PDF |
| Mar 19, 2026 | SB2530_SD2_TESTIMONY_JHA_03-19-26_.PDF |
| Mar 1, 2026 | SB2530_SD1_TESTIMONY_WAM_03-02-26_.PDF |
| Feb 10, 2026 | SB2530_TESTIMONY_JDC_02-10-26_.PDF |
Discussed in Hearing
5MIN
House Standing Committee on Judiciary & Hawaiian Affairs
3MIN
House Standing Committee on Judiciary & Hawaiian Affairs
4MIN
Senate Standing Committee on Ways and Means
4MIN
Senate Standing Committee on Judiciary
3MIN
Senate Standing Committee on Judiciary
Bill Author
Bill Co-Author(s):