REPORT TITLE:
Conflicts of interests


DESCRIPTION:
Prohibits legislators from taking official action in a business
or undertaking where the legislator has a substantial interest or
in a private undertaking while engaged in a legal, advisory,
representative, or other agency capacity.  Prohibits legislators
from acquiring financial interests in a business or undertaking
the legislator has reason to believe may be directly involved in
official action to be taken by the legislator.  Requires the
legislature to administer and enforce provisions of chapter 84,
Hawaii Revised Statutes, for legislators.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1942
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO ETHICS.



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

 1      SECTION 1.  Section 84-14, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§84-14  Conflicts of interests.(a)  No legislator or
 
 4 employee shall take any official action directly affecting:
 
 5      (1)  A business or other undertaking in which [he] the
 
 6           legislator or employee has a substantial financial
 
 7           interest; or
 
 8      (2)  A private undertaking in which [he] the legislator or
 
 9           employee is engaged as legal counsel, advisor,
 
10           consultant, representative, or other agency capacity.
 
11      A department head who is unable to disqualify [himself]
 
12 oneself on any matter described in [items] paragraphs (1) and (2)
 
13 [above will] shall not be in violation of this subsection if [he]
 
14 the department head has complied with the disclosure requirements
 
15 of section 84-17[; and].
 
16      A person whose position on a board, commission, or committee
 
17 is mandated by statute, resolution, or executive order to have
 
18 particular qualifications shall only be prohibited from taking
 
19 official action that directly and specifically affects a business
 
20 or undertaking in which [he] the person has a substantial
 

 
Page 2                                                     1942
                                     H.B. NO.           
                                                        
                                                        

 
 1 financial interest; provided that the substantial financial
 
 2 interest is related to the member's particular qualifications.
 
 3      (b)  No legislator or employee shall acquire financial
 
 4 interests in any business or other undertaking which [he] the
 
 5 legislator or employee has reason to believe may be directly
 
 6 involved in official action to be taken by [him.] the legislator
 
 7 or employee.
 
 8      (c)  No legislator or employee shall assist any person or
 
 9 business or act in a representative capacity before any state or
 
10 county agency for a contingent compensation in any transaction
 
11 involving the State.
 
12      (d)  No legislator or employee shall assist any person or
 
13 business or act in a representative capacity for a fee or other
 
14 compensation to secure passage of a bill or to obtain a contract,
 
15 claim, or other transaction or proposal in which [he] the
 
16 legislator or employee has participated or will participate as a
 
17 legislator or employee, nor shall [he] the legislator or employee
 
18 assist any person or business or act in a representative capacity
 
19 for a fee or other compensation on such bill, contract, claim, or
 
20 other transaction or proposal before the legislature or agency of
 
21 which [he] the legislator or employee is an employee or
 
22 legislator.
 

 
 
 
Page 3                                                     1942
                                     H.B. NO.           
                                                        
                                                        

 
 1      (e)  No employee shall assist any person or business or act
 
 2 in a representative capacity before a state or county agency for
 
 3 a fee or other consideration on any bill, contract, claim, or
 
 4 other transaction or proposal involving official action by the
 
 5 agency if [he] the employee has official authority over that
 
 6 state or county agency unless [he] the employee has complied with
 
 7 the disclosure requirements of section 84-17."
 
 8      SECTION 2.  Section 84-19, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "§84-19  Violation.  (a)  Any favorable state action
 
11 obtained in violation of the code of ethics for legislators or
 
12 employees and former employees is voidable in the same manner as
 
13 voidable contracts as provided for under section 84-16; and the
 
14 State by the attorney general may pursue all legal and equitable
 
15 remedies available to it.
 
16      (b)  The State by the attorney general may recover any fee,
 
17 compensation, gift, or profit received by any person as a result
 
18 of a violation of the code of ethics by a legislator [or],
 
19 employee [or], former legislator, or employee.  Action to recover
 
20 under this subsection shall be brought within one year of a
 
21 determination of such violation.
 
22      (c)  Any violation of this chapter by an employee[,] or
 
23 candidate for election [to] and elected delegate to the
 

 
Page 4                                                     1942
                                     H.B. NO.           
                                                        
                                                        

 
 1 constitutional convention shall be punishable only in accordance
 
 2 with the code of ethics adopted by the constitutional convention.
 
 3      (d)  The legislature shall administer and enforce the
 
 4 provisions of this chapter with respect to its application to
 
 5 legislators."
 
 6      SECTION 3.  Statutory material to be repealed is bracketed.
 
 7 New statutory material is underscored.
 
 8      SECTION 4.  This Act shall take effect upon its approval.
 
 9 
 
10                           INTRODUCED BY:  _______________________