SB809

SECTION 1. The legislature finds that Hawaiʻi's existing campaign finance law prohibits companies who receive state and county contracts from making campaign contributions. The prohibition against state and county contractors does not extend to any owners, officers, or family members of the contractor, meaning that those individuals can still make contributions to election campaigns.

The legislature also finds that there are no campaign contribution prohibitions on organizations that receive grants from the State or counties. These grantees receive public funds appropriated by a legislative body, similar to state or county contractors.

Accordingly, the purpose of this Act is to reduce the potential for donations to unduly influence policy-making and to improve actual and perceived standards of conduct by expanding the prohibition against contributions to candidate and noncandidate committees to include contributions from state and county grantees and the officers and immediate family members of a state or county contractor or grantee.

SECTION 2. Section 11-355, Hawaii Revised Statutes, is amended to read as follows:

"[[]§11-355[]] Contributions [~~by state and county contractors~~]; state or county contractors; state or county grantees; officers and immediate family members of state or county 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, 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 the owners, officers, and any immediate family member of any state or county contractor under subsection (a), at any time between the execution of the contract through the completion of the contract pursuant to subsection (a), to directly or indirectly make any contribution to any candidate committee or noncandidate committee.

(c) 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 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:

(2) Knowingly solicit any contribution from any person for any purpose during any period.

(d) It shall be unlawful for the owners, officers, and any immediate family member 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 (c), to directly or indirectly make any contribution to any candidate committee or noncandidate committee.

(e) Any candidate, candidate committee, or noncandidate committee receiving 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.

(f) At the time of the execution of a contract subject to this section, the state or county contractor or grantee shall provide to the state or county office executing the contract a list of the names of any owners, officers, and immediate family members of the state or county contractor or grantee. For the purposes of assessing compliance with this section, the state or county office shall make the reported information available electronically to the commission, which shall then make the information available to candidate and noncandidate committees on a password-protected section of the commission's website.

[~~(b)~~] (g) 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 grantee, for the purpose of influencing the nomination for election, or the election of any person to office.

[~~(c)~~] (h) 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. 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 upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	809
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII