SB1690

SECTION 1. The legislature finds that public disclosure requirements for lobbyists are important to ensuring open government and upholding public trust in the policymaking process. In 2003, the nonpartisan Center for Public Integrity conducted a survey of lobbyist disclosure laws in all fifty states. Hawaii faired poorly, ranking thirty-sixth in the nation. Numerous other states had stronger lobbyist disclosure requirements in such areas as registration, spending reports, public access, and improved enforcement through audits.

The purpose of this Act is to:

(1) Require annual and renewal registration forms, and a fee of $25 for certain lobbyists;

(2) Require expenditure statements for contributions made during a session;

(3) Establish an intermittent deadline schedule for filing expenditure statements;

(4) Require electronic filing of registration and expenditure statements; and

(5) Require the state ethics commission to conduct a review and audit of the filed documentation, and make an appropriation to the commission.

SECTION 2. Section 97-2, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) Every lobbyist shall file electronically a registration form with the state ethics commission within five days of becoming a lobbyist[.], and annually thereafter on December 30 of each year.

(b) Each lobbyist shall provide and certify the following information:

(1) The name, mailing address, and business telephone number of the lobbyist.

(2) The name and principal place of business of each person by whom the lobbyist is retained or employed or on whose behalf the lobbyist appears or works and a written authorization to act as a lobbyist from each person by whom the lobbyist is employed or with whom the lobbyist contracts.

(3) The subject areas on which the lobbyist expects to lobby.

A lobbyist shall include with the registration form a photograph of the lobbyist. There shall be an annual registration fee of $25, payable with the filing of the registration form, due from the employer of or the entity retaining the lobbyist that has annual revenues equal to or exceeding $50,000 in the year ending on December 31 of the year of the registration form. Payment shall be made payable to the state ethics commission; provided that the funds shall be deposited into a special account to defray the costs of the commission for purposes of section 97‑6."

SECTION 3. Section 97-3, Hawaii Revised Statutes, is amended to read as follows:

"§97-3 Contributions and expenditures; statement. (a) The following persons shall electronically file a statement of expenditures with the state ethics commission on [~~March 31, May 31, and January 31~~] the last day of February, April 15, May 31, and January 15 of each year[:] as provided in subsection (b):

(1) Each lobbyist.

(2) Each person who spends $750 or more of the person's or any other person's money in any six-month period for the purpose of attempting to influence legislative or administrative action or a ballot issue by communicating or urging others to communicate with public officials; provided that any amounts expended for travel costs, including incidental meals and lodging, shall not be included in the tallying of the $750.

(3) Each person who employs or contracts for the services of one or more lobbyists, whether independently or jointly with other persons. If the person is an industry, trade, or professional association, only the association is the employer of the lobbyist.

(b) [The March 31 report shall cover the period from January 1 through the last day of February. The May 31 report shall cover the period from March 1 through April 30. The January 31 report shall cover the period from May 1 through December 31 of the previous year.] The last day of February report shall cover the immediate preceding period from January 1 through February 14; the April 15 report shall cover the immediate preceding period from February 15 through April 1; the May 31 report shall cover the immediate preceding period from April 1 through May 14; and the January 15 report shall cover the immediately preceding period from May 15 through December 31.

(1) The name and address of each person with respect to whom expenditures for the purpose of lobbying in the total sum of $25 or more per day was made by the person filing the statement during the statement period and the amount or value of such expenditure;

(2) The name and address of each person with respect to whom expenditures for the purpose of lobbying in the aggregate of $150 or more was made by the person filing the statement during the statement period and the amount or value of such expenditures;

(3) The total sum or value of all expenditures for the purpose of lobbying made by the person filing the statement during the statement period in excess of $750 during the statement period;

(4) The name and address of each person making contributions to the person filing the statement for the purpose of lobbying in the total sum of $25 or more during the statement period and the amount or value of such contributions; and

(5) The subject area of the legislative and administrative action which was supported or opposed by the person filing the statement during the statement period.

(d) [The receipt or expenditure of any money for the purpose of influencing the election or defeat of any candidate for an elective office or for the passage or defeat of any proposed measure at any special or general election is excluded from the reporting requirement of this section.] For periods in which the legislature is in session, the reports shall include:

(1) Expenditures relating to lobbying for a bill, including the bill number; and

(2) Campaign contributions, including the name of the legislator, candidate committee, or committee, and date and amount of the contribution.

(e) For periods when the legislature is not in session, the receipt or expenditure of any money for the purpose of influencing the election or defeat of any candidate for an elective office or for the passage or defeat of any proposed measure at any special or general election is excluded from the reporting requirement of this section."

SECTION 4. Section 97-6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The state ethics commission shall administer and implement this chapter, and shall have the following powers and duties:

(1) Initiate, receive, and consider charges concerning alleged violations of this chapter, and investigate or cause to be investigated on a confidential basis, the activities of any person to determine whether the person is in compliance with this chapter;

(2) Prescribe forms for the statements and reports required by sections 97-2 and 97-3 and establish orderly procedures for implementing the requirements of those provisions;

(3) Render advisory opinions upon the request of any person subject to this chapter. If no advisory opinion is rendered within thirty days after the request is filed with the commission, it shall be deemed that an advisory opinion was rendered and that the facts and circumstances of that particular case do not constitute a violation of this chapter. The opinion rendered or deemed rendered, until amended or revoked, shall be binding on the commission in any subsequent charges concerning the person subject to this chapter who sought the opinion and acted in reliance on it in good faith, unless material facts were omitted or misstated by the person in the request for an advisory opinion;

(4) Issue subpoenas, administer oaths, and exercise those powers conferred upon the commission by section 92-16;

(5) Adopt rules, not inconsistent with this chapter, as in the judgment of the commission seem appropriate for the carrying out of this chapter and for the efficient administration of this chapter, including every matter or thing required to be done or which may be done with the approval or consent or by order or under the direction or supervision of, or as prescribed by, the commission. The rules, when adopted as provided in chapter 91, shall have the force and effect of law; [~~and~~]

(6) Have jurisdiction for purposes of investigation and taking appropriate action on alleged violations of this chapter in all proceedings commenced within three years of an alleged violation of this chapter. A proceeding shall be deemed commenced by the filing of a charge with the commission or by the signing of a charge by three or more members of the commission. Nothing shall bar proceedings against a person who by fraud or other device prevents discovery of a violation of this chapter[.]; and

(7) Review and audit required filings under this chapter for accuracy and compliance."

SECTION 5. Section 97-2.5, Hawaii Revised Statutes, is repealed.

["~~§97-2.5 Renewal of registration.~~ Each registered lobbyist shall renew the lobbyist's registration biennially by filing a registration and authorization form with the state ethics commission within ten days of the opening of the 1983 regular session of the legislature and on every odd-numbered year's session thereafter."]

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $ , or so much thereof as may be necessary for fiscal year 2007-2008, for implementation of this Act.

The sum appropriated shall be expended by the state ethics commission for the purposes of this Act.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 2007.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	1690
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII