| 47 | | - | SECTION 1. The legislature finds that the house of representatives adopted House Resolution No. 9 (2022) to establish the commission to improve standards of conduct. The resolution requests the commission ensure state laws and rules relating to standards of conduct of public officers and employees contain clear standards, enforcement, and penalties and provide recommendations to increase awareness of, compliance with, and deterrent effects of the code of ethics, lobbying laws, campaign finance laws, and other relevant laws and rules. Pursuant to House Resolution No. 9, the commission to improve standards of conduct convened regularly throughout 2022 to diligently review, discuss, and consider the issues presented, submitted an interim report to the house of representatives outlining areas of immediate and long-term focus, then continued its work with input from the public and invited individuals and agencies to issue a final report with various recommendations and accompanying proposed legislation. The legislature also finds that the strength and stability of our democratic government rely upon the public's trust in government institutions, including the expectation that officers act ethically with prudence, integrity, and sound judgement. Therefore, an essential goal of the commission was to provide recommendations that would help restore public trust in state government and increase the level of transparency in its operations and accountability of individuals. The legislature additionally finds that under Hawaii's existing campaign finance law, only a state or county contractor is prohibited from making campaign contributions. However, owners, officers, employees, and family members of the contractor can still make contributions, including false name contributions, to election campaigns. Furthermore, state and county grantees are currently able to make campaign contributions, even though these entities receive funds that have been appropriated by a legislative body, similar to state or county contractors. Accordingly, the purpose of this Act is to implement recommendations of the commission to improve standards of conduct by amending the prohibition against contributions to a candidate committee or noncandidate committee by state and county contractors to include state and county grantees and the owners, officers, and immediate family members of a state or county contractor or state or county grantee. SECTION 2. Section 11-355, Hawaii Revised Statutes, is amended to read as follows: "[[]§11-355[]] Contributions by state and county contractors; contributions by state and 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, 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 person who receives a grant or subsidy from the State pursuant to chapter 42F, or from a county pursuant to county charter or code, at any time between the execution of the contract for the grant or subsidy 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 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 the owners, officers, and any immediate family members of any state or county contractor under subsection (a), at any time between the execution of a contract through completion of the contract pursuant to subsection (a), to directly or indirectly make any contribution to any candidate committee or noncandidate committee. (d) It shall be unlawful for the owners, officers, and any immediate family members of any state or county grantee under subsection (b), at any time between the execution of a contract through completion of the contract pursuant to subsection (b), to directly or indirectly make any contribution to any candidate committee or noncandidate committee. [(b)] (e) Except as provided in [subsection] subsections (a), (b), (c), and (d), this section does 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, or the owners, officers, and immediate family members of a state or county contractor or state or county grantee, for the purpose of influencing the nomination for election, or the election of any person to office. (f) This section shall not apply to the partial public financial system. [(c)] (g) For purposes of this section, "completion of the contract" means that the parties to the government contract have either terminated the contract prior to 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." 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. |
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| 47 | + | SECTION 1. The legislature finds that the house of representatives adopted House Resolution No. 9 (2022) to establish the commission to improve standards of conduct. The resolution requests the commission ensure state laws and rules relating to standards of conduct of public officers and employees contain clear standards, enforcement, and penalties and provide recommendations to increase awareness of, compliance with, and deterrent effects of the code of ethics, lobbying laws, campaign finance laws, and other relevant laws and rules. Pursuant to House Resolution No. 9, the commission to improve standards of conduct convened regularly throughout 2022 to diligently review, discuss, and consider the issues presented, submitted an interim report to the house of representatives outlining areas of immediate and long-term focus, then continued its work with input from the public and invited individuals and agencies to issue a final report with various recommendations and accompanying proposed legislation. The legislature also finds that the strength and stability of our democratic government rely upon the public's trust in government institutions, including the expectation that officers act ethically with prudence, integrity, and sound judgement. Therefore, an essential goal of the commission was to provide recommendations that would help restore public trust in state government and increase the level of transparency in its operations and accountability of individuals. The legislature additionally finds that under Hawaii's existing campaign finance law, only a state or county contractor is prohibited from making campaign contributions. However, owners, officers, employees, and family members of the contractor can still make contributions, including false name contributions, to election campaigns. Furthermore, state and county grantees are currently able to make campaign contributions, even though these entities receive funds that have been appropriated by a legislative body, similar to state or county contractors. Accordingly, the purpose of this Act is to implement recommendations of the commission to improve standards of conduct by amending the prohibition against contributions to a candidate committee or noncandidate committee by state and county contractors to include state and county grantees and the owners, officers, and immediate family members of a state or county contractor or state or county grantee. SECTION 2. Section 11-355, Hawaii Revised Statutes, is amended to read as follows: "[[]§11-355[]] Contributions by state and county contractors; contributions by state and 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, 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 person who receives a grant or subsidy from the State pursuant to chapter 42F, or from a county pursuant to county charter or code, at any time between the execution of the contract for the grant or subsidy 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 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 the owners, officers, and any immediate family members of any state or county contractor under subsection (a), at any time between the execution of a contract through completion of the contract pursuant to subsection (a), to directly or indirectly make any contribution to any candidate committee or noncandidate committee. (d) It shall be unlawful for the owners, officers, and any immediate family members of any state or county grantee under subsection (b), at any time between the execution of a contract through completion of the contract pursuant to subsection (b), to directly or indirectly make any contribution to any candidate committee or noncandidate committee. [(b)] (e) Except as provided in [subsection] subsections (a), (b), (c), and (d), this section does 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, or the owners, officers, and immediate family members of a state or county contractor or state or county grantee, for the purpose of influencing the nomination for election, or the election of any person to office. [(c)] (f) For purposes of this section, "completion of the contract" means that the parties to the government contract have either terminated the contract prior to 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." 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. INTRODUCED BY: _____________________________ |
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