REPORT TITLE:
Code of Ethics


DESCRIPTION:
Prohibits a board or commission member from taking official
actions that directly affect a business or undertaking in which
that person has any financial interest, rather than a substantial
financial interest.  Provides that ethics charges found to be
unsubstantiated are to be made a matter of public record.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2525
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.  The purpose of this Act is to enhance the state
 
 2 ethics commission's ability to fulfill its mandate under article
 
 3 XIV of the state constitution.
 
 4                              PART I
 
 5      SECTION 2.  The purpose of this part is to promote high
 
 6 standards of ethical conduct in state government by specifying
 
 7 that a board or commission member may not take official action
 
 8 that directly and specifically affects a business or undertaking
 
 9 in which that person has any financial interest, rather than a
 
10 substantial financial interest, if that financial interest is
 
11 related to that person's particular qualifications.
 
12      SECTION 3.  Section 84-14, Hawaii Revised Statutes, is
 
13 amended by amending subsection (a) to read as follows:
 
14      "(a)  No employee shall take any official action directly
 
15 affecting:
 
16      (1)  A business or other undertaking in which [he] the
 
17           employee has a substantial financial interest; or
 
18      (2)  A private undertaking in which [he] the employee is
 
19           engaged as legal counsel, advisor, consultant,
 

 
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 1           representative, or other agency capacity.
 
 2      A department head who is unable to disqualify himself or
 
 3 herself on any matter described in [items] paragraphs (1) and (2)
 
 4 [above] will not be in violation of this subsection if [he] the
 
 5 department head has complied with the disclosure requirements of
 
 6 section 84-17[; and].
 
 7      A person whose position on a board, commission, or committee
 
 8 is mandated by statute, resolution, or executive order to have
 
 9 particular qualifications shall only be prohibited from taking
 
10 official action that directly and specifically affects a business
 
11 or undertaking in which [he] that person has a [substantial]
 
12 financial interest; provided that the [substantial] financial
 
13 interest is related to [the member's] that person's particular
 
14 qualifications."
 
15                              PART II
 
16      SECTION 4.  The purpose of this part is to enhance public
 
17 confidence in the state ethics commission and in state government
 
18 officials and employees by specifying that ethics charges that
 
19 are found by a majority of commission members to be
 
20 unsubstantiated are to be made a matter of public record.
 
21      SECTION 5.  Section 84-31, Hawaii Revised Statutes, is
 
22 amended by amending subsection (c) to read as follows:
 
23      "(c)  If after twenty days following service of the charge
 

 
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 1 and further statement of alleged violation in accordance with
 
 2 this section, a majority of the members of the commission
 
 3 conclude that there is probable cause to believe that a violation
 
 4 of this chapter or of the code of ethics adopted by the
 
 5 constitutional convention has been committed, then the commission
 
 6 shall set a time and place for a hearing, giving notice to the
 
 7 complainant and the alleged violator.  If a majority of the
 
 8 members of the commission conclude that there is no probable
 
 9 cause to believe that a violation of this chapter or the code of
 
10 ethics adopted by the constitutional convention has been
 
11 committed, then the commission shall publish statewide a notice
 
12 of the commission's finding that the charge was unsubstantiated
 
13 and that a probable cause finding has not been made, at which
 
14 point the unsubstantiated charge and related documents shall be
 
15 become public records.  Upon the commission's issuance of a
 
16 notice of hearing, the charge and further statement of alleged
 
17 violation and the alleged violator's written response thereto
 
18 shall become public records.  The hearing shall be held within
 
19 ninety days of the commission's issuance of a notice of hearing.
 
20 If the hearing is not held within that ninety-day period, the
 
21 charge and further statement of alleged violation shall be
 
22 dismissed; provided that any delay that is at the request of, or
 
23 caused by, the alleged violator shall not be counted against the
 

 
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 1 ninety-day period.  All parties shall have an opportunity to:
 
 2      (1)  [to be] Be heard[,];
 
 3      (2)  [to subpoena] Subpoena witnesses and require the
 
 4           production of any books or papers relative to the
 
 5           proceedings[,];
 
 6      (3)  [to be] Be represented by counsel; and
 
 7      (4)  [to have] Have the right of cross-examination.
 
 8 All hearings shall be in accordance with chapter 91.  All
 
 9 witnesses shall testify under oath and the hearings shall be open
 
10 to the public.  The commission shall not be bound by the strict
 
11 rules of evidence but the commission's findings must be based
 
12 upon competent and substantial evidence.  All testimony and other
 
13 evidence taken at the hearing shall be recorded.  Copies of
 
14 transcripts of such record shall be available only to the
 
15 complainant and the alleged violator at their own expense, and
 
16 the fees therefor shall be deposited in the State's general
 
17 fund."
 
18      SECTION 6.  Statutory material to be repealed is bracketed.
 
19 New statutory material is underscored.
 
20      SECTION 7.  This Act shall take effect upon its approval.
 
21 
 
22                              INTRODUCED BY:______________________