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Government contracts should not be awarded to relatives of state officials

The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Senate Committee on Judiciary on March 3, 2026.
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March 3, 2026, 10:15 a.m.
Hawaii State Capitol
Conference Room 016 and Videoconference

To: Senate Committee on Judiciary
       Sen. Karl Rhoads, Chair
       Sen. Mike Gabbard, Vice Chair

From: Grassroot Institute of Hawaii
            Ted Kefalas, Director of Strategic Campaigns

RE: TESTIMONY IN SUPPORT OF SB2970 SD1 — RELATING TO STANDARDS OF CONDUCT

Aloha Chair, Vice Chair and other Committee members,

The Grassroot Institute of Hawaii supports SB2970 SD1, which would prohibit state agencies from entering into contracts for goods, services and construction work with a business that is owned or operated — or in which a controlling interest is held — by a relative or household member of a director or deputy director of a principal state department. 

By prohibiting contracts that could benefit the relative or household member of a state department head, this bill would help prevent financial conflicts of interest as well as issues of impartiality in contracting, an essential practice in government procurement.[1]

In order to improve public trust in government and root out corruption, state agencies must avoid improper influence in contracting and even the appearance of impropriety. We applaud the committee for addressing this important issue and urge you to pass SB2970.

Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1]Ethics and Procurement Integrity,” U.S. Office of Government Ethics, July 2007.

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