Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.B. No. 865 entitled:

begs leave to report as follows:

The purpose of this bill is to promote ethics in government.

Specifically, this bill would expand one of the primary provisions of the conflicts-of-interests section of the State Ethics Code by prohibiting a public employee from taking official action directly affecting a brother, sister, parent, emancipated child, or household member.

The Hawaii State Ethics Commission testified in support of this bill.

Currently, a state official must recuse oneself from taking official action affecting a business in which the official's spouse or dependent child has a financial interest. But a state official is not required to recuse oneself from taking official action affecting a business in which a parent, brother, sister, or emancipated child holds a financial interest. Your Committee feels that the same ethics concerns would arise in any instance in which the interests of a close family member is involved.

However, your Committee has some concerns regarding what is exactly meant by the phrase "substantial financial interest." Accordingly, after discussions with the Ethics Commission, your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 865, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 865, H.D. 1, and be referred to the Committee on Judiciary.