Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 1094 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the Hawaii State Ethics Commission (Commission) to determine the salary of its Executive Director without any limitation in the law.

Your Committee received testimony in support of this measure from the Commission.

Your Committee finds that until 1982, the Commission had the authority to fix the compensation of its Executive Director and other staff members, within the amounts made available in the Commission's annual budget appropriation from the Legislature.

Your Committee agrees that authority to set the salary of the Executive Director should be returned to the Commission. Because the Commission renders legal advice and enforces the State Ethics Code with regard to legislators, it is important that the Commission and its employees and Executive Director be as independent as possible.

Under current law, the salary of the Executive Director of the Commission, which is limited by law, cannot be raised except by a law passed by the very same persons regulated by the Commission. This process would lead to a possible appearance of impropriety, and therefore your Committee agrees that the Commission should be completely independent in setting the salaries of its employees and Executive Director.

Your Committee notes that the Legislature can still oversee the amount budgeted for the Executive Director of the Commission as part of the annual budgetary process.

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. 1094 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.