Section 3-131-4 - Civil and criminal penalties(a) Certain violations of chapter 103D, HRS, may be subject to civil and criminal penalties as described in this section: (1) Civil penalties. A person who contracts for, or purchases goods, services, or construction, in a manner the person knows to be contrary to the requirements of the procurement law is liable for all costs and damages to the State arising out of the violation.(2) Criminal penalties. A person who intentionally or knowingly contracts for or purchases goods, services, or construction, under a scheme or artifice to avoid the requirements of the procurement law shall be guilty of a misdemeanor, and in addition to any applicable criminal penalties, shall be subject to removal from office and shall be liable to the State or the appropriate county for any sum paid by it in connection with the violation, and that sum, together with interest and costs, shall be recoverable by the State or county.(b) In order for civil penalties to apply, a person must have knowingly violated the requirements of the law. In other words, the person committing the violation must be aware that he or she is acting contrary to the requirements of the law at the time the violation occurs. Violations that are the result of administrative error or mistake, ignorance, or carelessness are usually not subject to the civil penalties. The determining factor is what the person understood the procurement requirements to be when the violation occurred, and whether or not the person believed he or she was acting in compliance with those requirements.(c) In order for criminal penalties to apply, a person must have knowingly or intentionally engaged in a scheme or artifice to avoid the requirements of the law. The violation must have been committed in a deliberate manner, involving some calculated means, such as parceling for a single procurement, a deliberate misstatement of fact, or an after-the-fact purchase, which is purposefully designed to avoid the requirements of the law. Legally admissible documentary evidence of the wrongdoing must be available to law enforcement authorities in order for criminal prosecution to be undertaken. Law enforcement authorities will also need to determine whether personal gain was intended or involved for either the person committing the violation, a friend or relative of the person, or the vendor, or whether some other vendor was significantly injured, whether intended or not.(d) In addition to any other civil and criminal penalty allowed by law, a chief procurement officer may render a written decision on any person found in violation of any provision of this chapter, and impose any of the following: (1) If an employee of a governmental agency: (A) Reimbursement for any sum paid in connection with the violation, including interest and costs;(B) A recommendation for termination of employment;(C) Reduction or rescission of delegated procurement authority; and(D) Administrative fine as provided in section 3-131-8.(2) If a person or actual or prospective offeror: (A) Payment for any sum paid in connection with the violation, including interest and costs;(B) Suspension and debarment action pursuant to section 103D-702, HRS; and(C) Administrative fine as provided in section 3-131-8.[Eff 12/15/95; comp 11/17/97; am and comp 11/25/02; am and comp AUG 24 2009] (Auth: HRS § 103D-202) (Imp: HRS §§ 103D- 106, 103D-702)