RELATING TO STANDARDS OF CONDUCT.
Summary
Repeals the $10,000 value threshold for certain prohibited contracts involving legislators or employees. Prohibits state agencies from contracting to procure or dispose of goods or services, or for construction, with businesses owned, operated, or controlled by relatives or household members of department heads or deputy directors. Requires department heads, acting department heads, and deputy directors of principal state departments to ensure compliance with the Code of Ethics provision governing contracts and provides for liability for violations. Effective 7/1/3000. (HD1)
Bill status
passed
3 of 5 stages cleared
Introduction
Jan 2026
Committee Review
Mar 2026
Senate Passage
Mar 2026
House Passage
Governor
Introduced Jan 23, 2026
Last action Mar 25, 2026
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What changed between versions
SB2970_HD1
→
SB2970_SD1
·
5 edits
MODERATE
This bill updates the Code of Ethics to prohibit state agencies from contracting with businesses owned or controlled by relatives or household members of directors or deputy directors in principal state departments. It removes the previous $10,000 spending threshold for contracts involving legislators or employees and clarifies that directors and their deputies are personally responsible for ensuring compliance. The effective date is set to January 1, 2525.
Scope change
The bill expands the scope of prohibited conflicts of interest by removing the monetary threshold for certain contracts and explicitly extending the ban to businesses controlled by relatives or household members of department directors and deputy directors, rather than just department heads.
REQUIREMENT
Removed the $10,000 value threshold for contracts involving legislators or employees, making the prohibition apply regardless of contract size.
ELIGIBILITY
Added a new prohibition preventing contracts with businesses owned or operated by, or where a controlling interest is held by, relatives or household members of directors or deputy directors.
DEFINITION
Changed the term 'department head' to 'director' and updated the list of relatives to include specific Hawaiian hanai family connections.
ENFORCEMENT
Updated liability provisions to hold directors and deputy directors responsible for violations, replacing the previous 'department head' terminology.
TIMELINE
Changed the effective date from July 1, 3000 to January 1, 2525.
Floor votes
How they voted
This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history
Actions timeline
Total actions
20
Key actions
7
Committee
9
Mar 25, 2026
Committee
Reported from JHA (Stand. Com. Rep. No. 1404-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
lower
Mar 19, 2026
Lower · Passed
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.
lower
Mar 12, 2026
Committee
Referred to JHA, FIN, referral sheet 17
lower
Mar 10, 2026
Introduced
Received from Senate (Sen. Com. No. 328) in amended form (SD 1).
lower
Mar 10, 2026
Upper · Passed
Report adopted; Passed Third Reading. Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.
upper
Mar 3, 2026
Upper · Passed
The committee(s) on JDC recommend(s) that the measure be PASSED, UNAMENDED. The votes in JDC were as follows: 5 Aye(s): Senator(s) Rhoads, Gabbard, Chang, San Buenaventura, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
upper
Feb 24, 2026
Upper · Passed
The committee(s) on JDC will hold a public decision making on 03-03-26 10:15AM; Conference Room 016 & Videoconference.
upper
Feb 20, 2026
Upper · Passed
Report adopted; Passed Second Reading, as amended (SD 1) and referred to JDC.
upper
Feb 20, 2026
Committee
Reported from GVO (Stand. Com. Rep. No. 2527) with recommendation of passage on Second Reading, as amended (SD 1) and referral to JDC.
upper
Feb 10, 2026
Upper · Passed
The committee(s) on GVO recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in GVO were as follows: 5 Aye(s): Senator(s) McKelvey, Gabbard, Hashimoto, Moriwaki, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
upper
Feb 2, 2026
Upper · Passed
The committee(s) on GVO has scheduled a public hearing on 02-05-26 3:01PM; CR 225 & Videoconference.
upper
Jan 30, 2026
Committee
Referred to GVO, JDC.
upper
Jan 23, 2026
Introduced
Introduced.
upper
4 primary · 1 co-sponsor
Sponsors
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