STAND. COM. REP. NO. 2058

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2672
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Labor and Environment, to which was
referred S.B. No. 2672 entitled: 

     "A BILL FOR AN ACT RELATING TO CONFLICTS OF INTERESTS,"

begs leave to report as follows:

     The purpose of this bill is to prohibit public employees
from taking official action that directly affects a business or
undertaking in which a family member has a substantial financial
interest in.

     Testimony in support of the measure was received from The
Hawaii State Ethics Commission and Common Cause Hawaii.

     Under current law, a state official must recuse himself or
herself from taking official action affecting a business in which
the official's spouse or dependent child has a financial
interest.  This measure expands the law to include parents,
siblings, emancipated children, and household members.  Your
Committee believes that this measure will preserve the public's
confidence in government decision-making.

     As affirmed by the record of votes of the members of your
Committee on Labor and Environment that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 2672 and recommends that it pass Second Reading and
be referred to the Committee on Judiciary.


 
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                                   STAND. COM. REP. NO. 2058
                                   Page 2


                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and
                                   Environment,



                                   ______________________________
                                   BOB NAKATA, Chair

 
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