Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 903 entitled:

begs leave to report as follows:

The purpose of this measure is to allow the State Ethics Commission (Commission) flexibility in setting salary of its executive director.

Your Committee received testimony in support of this measure from the Commission and The League of Women Voters of Hawaii. Testimony in opposition was received from the United Public Workers.

Current law caps the salary of the executive director at not more than that of a department deputy. This measure allows the Commission to set the salary of the director and other employees within the appropriated budget amounts. The Commission is concerned that a conflict of interest could arise with the Legislature setting the compensation of the director since the Commission renders legal advice to legislators on the application of, and enforces the ethics laws. The Commission further testified that the salary of the associate director presently exceeds that of the director, due to collective bargaining increases. This measure addresses these concerns.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 903 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.