Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred S.B. No. 1635 entitled:

begs leave to report as follows:

The purpose of this measure is to prohibit state agencies, excluding certain University of Hawaii employees, from using moneys from businesses, groups, or associations, to fund any state positions, supplement the salary of a state worker, or provide a financial benefit to the person filling the position.

Your Committee received testimony in support of this measure from the Hawaii State Ethics Commission and the League of Women Voters of Hawaii.

Your Committee finds that an appearance of, or actuality of, a conflict of interests exists or is likely to arise if private contributions are made to supplement a state official or state employee's salary. There is an appearance that the private business donors will receive special treatment from the state official or employee. Your Committee believes that state officials and employees paid only with state funds will more likely remain free from undue influence.

Your Committee notes the concern that passage of this bill may give rise to broader, unintended consequences.

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 S.B. No. 1635 and recommends that it pass Third Reading.