Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred S.B. No. 627 entitled:

begs leave to report as follows:

The purpose of this measure is to improve the public's perception that public officials and employees are improperly influenced by personal or financial interests by prohibiting a state employee from taking official action directly affecting a business of certain close family members, and requiring disclosure of financial interests for specified state board members.

Testimony in support of this measure was submitted by the Hawaii State Ethics Commission and the League of Women Voters of Hawaii.

Your Committee finds that when state officers and employees are embroiled in conflict-of-interest situations, there is a public perception that their personal or financial interests are improperly influencing them. This measure seeks to avoid the perception of wrongdoing and build public confidence in state officials and government decision-making.

Your Committee noted concerns raised by the Hawaii State Ethics Commission regarding the portion of the measure that requires the Commission to publish a notice stating that the charge is unsubstantiated and that probable cause was not found. Your Committee addressed this concern by deleting the statewide notice requirements.

Your Committee has further amended this measure by making technical, nonsubstantive changes for clarity.

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. 627, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 627, S.D. 1, and be placed on the calendar for Third Reading.