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SB2530
THE SENATE
S.B. NO.
2530
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
RELATING
TO CAMPAIGN CONTRIBUTIONS
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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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.
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This bill represents a crucial step towards
transparency and accountability in government spending and the electoral
process.
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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.
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Similar to contractors, grantees receive
state and county funds and thus should be treated similarly in the context of
political contributions.
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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.
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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.
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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.
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SECTION
2
.
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Section 11-355,
Hawaii Revised Statutes, is amended to read as follows:
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"
[
[
]�
11-355[
]
]
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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)
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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:
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(1)
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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
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(2)
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Knowingly solicit
any contribution from any person for any purpose during any period.
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(b)
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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:
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(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
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(2)
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Knowingly solicit
any contribution from any person for any purpose during any period.
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(c)
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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:
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(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
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(2)
�
Knowingly
solicit any contribution from any person for any purpose during any period.
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(d)
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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:
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(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
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(2)
�
Knowingly
solicit any contribution from any person for any purpose during any period.
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(e)
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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.
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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.
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[
(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.
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[
(c)
]
(g)
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For purposes of this section[
, "completion
]
:
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"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.
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"Officer" means an
individual who is:
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(1)
�
The owner of a
sole proprietorship;
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(2)
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A general
partner of a general partnership, limited or limited liability partnership;
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(3)
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A manager or
co-manager of a limited liability company; or
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(4)
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An officer of a
corporation or any of the entities described in this section.
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"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.
"
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SECTION
3
.
�
Section 11-364,
Hawaii Revised Statutes, is amended by amending subsection (a) to read as
follows:
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"(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.
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Any excess
contribution not returned to the contributor within thirty
calendar
days
shall escheat to the Hawaii election campaign fund."
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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.
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SECTION 5.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.
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SECTION 6.
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This Act shall take effect on November 4,
2026.
INTRODUCED BY:
_____________________________
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.
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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.