Report Title:
Ethics; Conflicts of Interest; Prohibited Activities
Description:
Prohibits state board or commission members from doing business with their board. Prohibits public employees from taking actions that directly affect their families. Requires disclosure of financial interests for specified state board members, including the board of regents. (SD1)
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THE SENATE |
S.B. NO. |
627 |
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TWENTY-THIRD LEGISLATURE, 2006 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to ethics.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. When state officials are embroiled in conflict-of-interest situations, there is a public perception that they are being improperly influenced by their personal or financial interests. This Act seeks to avoid the perception of wrongdoing and build public confidence in state officials and government decision-making.
SECTION 2. Section 84-14, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) No employee shall take any official action directly affecting:
(1) A business or other undertaking in which [he] the employee has a substantial financial interest; [or]
(2) A private undertaking in which [he] the employee is engaged as legal counsel, advisor, consultant, representative, or other agency capacity[.]; or
(3) A business or undertaking in which the employee knows or has reason to know that a sibling, a parent, an emancipated child, or a household member has a substantial financial interest; provided that the financial interest of these individuals shall not include those of any spouse or child.
A department head who is unable to disqualify [himself] the department head's self on any matter described in [items] paragraphs (1) and (2) [above] will not be in violation of this subsection if [he] the department head has complied with the disclosure requirements of section 84-17[; and].
A person whose position on a board, commission, or committee is mandated by statute, resolution, or executive order to have particular qualifications shall only be prohibited from taking official action that directly and specifically affects a business or undertaking in which [he] that person has a [substantial] financial interest; provided that the [substantial] financial interest is related to [the member's] that person's particular qualifications."
SECTION 3. Section 84-17, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (d) to read:
"(d) The financial disclosure statements of the following persons shall be public records and available for inspection and duplication:
(1) The governor, the lieutenant governor, the members of the legislature, candidates for and delegates to the constitutional convention, the members of the board of education, the trustees of the office of Hawaiian affairs, and candidates for state elective offices;
(2) The directors of the state departments and their deputies, regardless of the titles by which the foregoing persons are designated; provided that with respect to the department of the attorney general, the foregoing shall apply only to the attorney general and the first deputy attorney general;
(3) The administrative director of the State;
(4) The members of the board of regents, the president, the vice presidents, the assistant vice presidents, the chancellors, and the provosts of the University of Hawaii;
(5) The superintendent, the deputy superintendent, the state librarian, and the deputy state librarian of the department of education;
(6) The administrative director and the deputy director of the courts; [and]
(7) The administrator and the assistant administrator of the office of Hawaiian affairs[.]; and
(8) The members of the board of land and natural resources, the board of agriculture, the Hawaiian homes commission, the stadium authority, the Hawaii community development authority, the Hawaii tourism authority, the natural energy laboratory of Hawaii authority, and the Hawaii paroling authority."
2. By amending subsection (g) to read:
"(g) Where an amount is required to be reported, the person disclosing may indicate whether the amount is at least $1,000 but less than $10,000; at least $10,000 but less than $25,000; at least $25,000 but less than $50,000; at least $50,000 but less than $100,000; at least $100,000 but less than $150,000; at least $150,000 but less than $250,000; at least $250,000 but less than $500,000; at least $500,000 but less than $750,000; at least $750,000 but less than $1,000,000; or $1,000,000 or more. An amount of stock may be reported by number of shares.
Members of the board of regents, the board of land and natural resources, the board of agriculture, and the Hawaiian homes commission who file public financial disclosure statements need not report, where an amount is required to be reported, the actual dollar value of the financial interest or the dollar range of value."
SECTION 4. Section 84-31, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
"(c) If after twenty days following service of the charge and further statement of alleged violation in accordance with this section, a majority of the members of the commission conclude that there is probable cause to believe that a violation of this chapter or of the code of ethics adopted by the constitutional convention has been committed, then the commission shall set a time and place for a hearing, giving notice to the complainant and the alleged violator. Upon the commission's issuance of a notice of hearing, the charge and further statement of alleged violation and the alleged violator's written response thereto shall become public records. The hearing shall be held within ninety days of the commission's issuance of a notice of hearing. If the hearing is not held within that ninety-day period, the charge and further statement of alleged violation shall be dismissed; provided that any delay that is at the request of, or caused by, the alleged violator shall not be counted against the ninety-day period. All parties shall have an opportunity to:
(1) [to be] Be heard[,];
(2) [to subpoena] Subpoena witnesses and require the production of any books or papers relative to the proceedings[,];
(3) [to be] Be represented by counsel; and
(4) [to have] Have the right of cross-examination.
All hearings shall be in accordance with chapter 91. All witnesses shall testify under oath and the hearings shall be open to the public. The commission shall not be bound by the strict rules of evidence but the commission's findings must be based upon competent and substantial evidence. All testimony and other evidence taken at the hearing shall be recorded. Copies of transcripts of such record shall be available only to the complainant and the alleged violator at their own expense, and the fees therefor shall be deposited in the State's general fund."
SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 2006.