In determining whether or not a solicitation is proper, the State Ethics Commission first examines whether the solicitation appears coercive. If so, then the solicitation is prohibited by the ethics code. Factors used in making this determination include whether or not the agency does business with the solicited company, whether or not the agency has official authority over the company, and whether or not the language of the solicitation creates the impression that a contribution is required or that the agency will retaliate against a company that does not make a contribution. If the Commission determines that the solicitation is not coercive, then it next determines whether the contribution is an acceptable gift to the agency. Factors used in making this determination include whether the agency does business with the solicited company, the value of the contribution, and whether the contribution actually benefits the State or, instead, personally benefits a state employee.
Solicitations can create a number of problems under the State Ethics Code.
Agencies that are considering approaching private companies for contributions should first consult with the State Ethics Commission. The Commission testified in support of this legislation during the 1997 legislative session. The Act took effect on June 21, 1997. The report was based on lobbying expenditures statements filed with the Commission by organizations as required by chapter 97, HRS, the Lobbyists Law. The expenditures statements were due on June 2, 1997.