Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred H.B. No. 2298, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to provide that more than a de minimis pecuniary interest is needed to disqualify judges from cases; clarifies that investments not under a judge's control are not considered pecuniary interests; and provides that after full disclosure on the record, parties may waive disqualification due to pecuniary interest.

Testimony in support of this measure was submitted by the Judiciary. Testimony in opposition to this measure was submitted by the Department of the Attorney General.

Your Committee finds that the current statute requires a judge to be disqualified from hearing a case if the judge has "any" pecuniary interest. The statute makes no distinction between minor or substantial pecuniary interests, or depending on whether the judge has or does not have control of investments or divestments.

However, the disqualification of a judge under the Hawaii Code of Judicial Conduct requires a judge to have more than a de minimis pecuniary interest. Further, the code of conduct also requires that, to be disqualified, the judge participate in the management of the fund, or in a proceeding that would affect the value of the interest for an investment, such as mutual or common investment funds.

Your Committee believes that the code of conduct is more realistic for today's environment, and this measure will reconcile the current statute requirements for judge's disqualification with the code of conduct. Your Committee also finds that this measure will allow parties, after full disclosure of a judge's interests on the record, to waive the judge's disqualification for pecuniary interests.

As affirmed by the record of votes of the members of your Committee on Judiciary and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2298, H.D. 1, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.