REPORT TITLE:
Conflict of interest; ethics
law


DESCRIPTION:
Amends the ethics law to expand conflict of interest to prohibit
official action on matters that affect family members.  Amends
the ethics law to expand public disclosure requirements for
contracts awarded to family members.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1821 
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO ETHICS 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Hawaii's ethics laws are so porous that
 
 2 department heads can award public contracts to companies or
 
 3 businesses owned by close family members without repercussion.
 
 4 Conflict of interest is narrowly defined, allowing for the
 
 5 perpetuation of special interests in government.
 
 6      The purpose of this Act is to broaden the scope of the
 
 7 State's ethics laws to prohibit any official action by a public
 
 8 official or employee that would directly affect the financial
 
 9 interests of his spouse, dependent child, parent, grandparent,
 
10 brother, sister, spouse of the official or employee's child, or a
 
11 business with which the official or employee is associated.
 
12      SECTION 2.  Section 84-13, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§84-13  Fair treatment.  No legislator or employee shall
 
15 use or attempt to use the legislator's or employee's official
 
16 position to secure or grant unwarranted privileges, exemptions,
 
17 advantages, contracts, or treatment, for oneself, his spouse, a
 
18 dependent child, parent, grandparent, brother, sister, spouse of
 
19 the legislator or employee's child, or a business with which the
 
20 legislator or employee is associated, or others; including but
 

 
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 1 not limited to the following:
 
 2      (1)  Seeking other employment or contract for services for
 
 3           oneself, his spouse, a dependent child, parent,
 
 4           grandparent, brother, sister, spouse of the legislator
 
 5           or employee's child, or a business with which the
 
 6           legislator or employee is associated by the use or
 
 7           attempted use of the legislator's or employee's office
 
 8           or position.
 
 9      (2)  Accepting, receiving, or soliciting compensation or
 
10           other consideration for the performance of the
 
11           legislator's or employee's official duties or
 
12           responsibilities except as provided by law.
 
13      (3)  Using state time, equipment or other facilities for
 
14           private business purposes.
 
15      (4)  Soliciting, selling, or otherwise engaging in a
 
16           substantial financial transaction with [a] his spouse, 
 
17 dependent child, parent, grandparent, brother, sister, spouse of
 
18 the legislator or employee's child, a business with which the
 
19 legislator or employee is associated, subordinate or a person or
 
20 business whom the legislator or employee inspects or supervises
 
21 in the legislator's or employee's official capacity.
 
22      Nothing herein shall be construed to prohibit a legislator
 
23 from introducing bills and resolutions, serving on committees or
 

 
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                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1 from making statements or taking action in the exercise of the
 
 2 legislator's legislative functions.  Every legislator shall file
 
 3 a full and complete public disclosure of the nature and extent of
 
 4 the interest or transaction which the legislator believes may be
 
 5 affected by legislative action."
 
 6      SECTION 3.  Section 84-14, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "§84-14  Conflicts of Interests.(a)  No employee shall
 
 9 take any official action directly affecting:
 
10      (1)  A business or other undertaking in which he or his
 
11           spouse, dependent child, parent, grandparent, brother,
 
12           sister, spouse of the legislator or employee's child,
 
13           or a business with which the legislator or employee is
 
14           associated, has a [substantial] financial interest; or
 
15      (2)  A private undertaking in which he or his spouse,
 
16           dependent child, parent, grandparent, brother, sister,
 
17           spouse the legislator or employee's child, or a
 
18           business with which the legislator or employee is
 
19           associated, is engaged as legal counsel, advisor,
 
20           consultant, representative, or other agency capacity.
 
21      [A department head who is unable to disqualify himself on
 
22 any matter described in items (1) and (2) above will not be in
 
23 violation of this subsection if he has complied with the
 

 
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 1 disclosure requirements of section 84-17; and]
 
 2      A person whose position on a board, commission, or committee
 
 3 is mandated by statute, resolution, or executive order to have
 
 4 particular qualifications shall only be prohibited from taking
 
 5 official action that directly and specifically affects a business
 
 6 or undertaking in which he or his spouse, dependent child,
 
 7 parent, grandparent, brother, sister, spouse of the legislator or
 
 8 employee's child, or a business with which the legislator or
 
 9 employee is associated, has a [substantial] financial interest[;
 
10 provided that the substantial financial interest is related to
 
11 the member's particular qualifications].
 
12      (b)  No public official or employee or his spouse, dependent
 
13 child, parent, grandparent, brother, sister, spouse of the
 
14 employee or public official, or a business with which the
 
15 employee or public official is associated, shall acquire
 
16 financial interests in any business or other undertaking which he
 
17 has reason to believe may be directly involved in official action
 
18 to be taken by him.
 
19      (c)  No legislator or employee shall assist any person or
 
20 business or act in a representative capacity before any state or
 
21 county agency for a contingent compensation in any transaction
 
22 involving the State.
 
23      (d)  No legislator or employee shall assist any person or
 

 
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                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1 business or act in a representative capacity for a fee or other
 
 2 compensation to secure passage of a bill or to obtain a contract,
 
 3 claim, or other transaction or proposal in which he has
 
 4 participated or will participate as a legislator or employee, nor
 
 5 shall he assist any person or business or act in a representative
 
 6 capacity for a fee or other compensation on such bill, contract,
 
 7 claim, or other transaction or proposal before the legislature or
 
 8 agency of which he is an employee or legislator.
 
 9      (e)  No employee shall assist any person or business or act
 
10 in a representative capacity before a state or county agency for
 
11 a fee or other consideration on any bill, contract, claim, or
 
12 other transaction or proposal involving official action by the
 
13 agency if he has official authority over that state or county
 
14 agency unless he has complied with the disclosure requirements of
 
15 section 84-17.
 
16      (f)  No public official or employee of a state or county
 
17 agency shall assist or award any contract, claim, or other
 
18 transaction or proposal to any person or entity whose financial
 
19 interests are held by the public official or employee or any
 
20 person related by blood or marriage."
 
21      SECTION 4.  Section 84-15, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 
23      "§84-15  Contracts.(a)  A state agency shall not enter
 

 
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 1 into any contract to procure or dispose of goods or services, or
 
 2 for construction, with a legislator, an employee, his spouse, a
 
 3 dependent child, parent, grandparent, brother, sister, spouse of
 
 4 the legislator or employee's child, or a business in which a
 
 5 legislator or an employee has a controlling interest, involving
 
 6 services or property of a value in excess of $10,000 unless:
 
 7      (1)  The contract is awarded by competitive sealed bidding
 
 8           pursuant to section 103D-302;
 
 9      (2)  The contract is awarded by competitive sealed proposal
 
10           pursuant to section 103D-303; or
 
11      (3)  The agency posts a notice of its intent to award the
 
12           contract and files a copy of the notice with the state
 
13           ethics commission at least ten days before the contract
 
14           is awarded.
 
15      (4)  The agency publicly discloses the awarding of the
 
16           contract within ten days of the award.  
 
17           (A)  Such public disclosure shall include the material
 
18                terms of the contract and the written
 
19                justification for the award.
 
20           (B)  A copy of the public disclosure shall be filed
 
21                with the State Ethics Commission and held for the
 
22                time period set forth in Section 84-17.5.
 
23      (b)  A state agency shall not enter into a contract with any
 

 
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 1 person or business which is represented or assisted personally in
 
 2 the matter by a person who has been an employee of the agency
 
 3 within the preceding two years and who participated while in
 
 4 state office or employment in the matter with which the contract
 
 5 is directly concerned."
 
 6      SECTION 5.  Statutory material to be repealed is bracketed.
 
 7 New statutory material is underscored.
 
 8      SECTION 6.  This Act shall take effect upon its approval.
 
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