STAND. COM. REP. NO.  1702-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 945

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred S.B. No. 945 entitled:

"A BILL FOR AN ACT RELATING TO ETHICS,"

begs leave to report as follows:

     The purpose of this bill is to provide greater transparency with respect to the finances of government officials by extending financial disclosure requirements to justices and judges.

     Your Committee distributed a proposed S.B. No. 945, H.D. 1 draft prior to the public hearing on this measure.  The proposed draft contained ethics provisions relating to drug testing, employment of spouses, and procurement.  Testimony in support of the proposed draft was submitted by a concerned individual.  The Drug Policy Action Group, American Civil Liberties Union of Hawaii, and the Drug Policy Forum of Hawaii opposed the proposed draft.  The Hawaii State Ethics Commission and the County of Hawaii Department of Human Resources submitted comments. 

     Upon further consideration and based on testimony submitted on the proposed draft, your Committee has amended this measure by deleting its contents and inserting provisions that:

     (1)  Prohibit certain state officials from employing, or advocating for or promoting the employment of, immediate family members for a position over which the state official exerts supervisory authority;

     (2)  Clarify existing restrictions on state contracts awarded to legislators, employees, or businesses in which a legislator or employee has a controlling interest by:

          (A)  Specifically including body corporate and public instrumentalities established by law within the scope of the restrictions; and

          (B)  Providing that no legislator, or business in which a legislator has a controlling interest, shall enter or seek to enter into any contract or multiple contracts valued at more than $10,000 in any one-year period with any state agency, body corporate, or public instrumentality. 

     As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 945, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 945, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

____________________________

TOMMY WATERS, Chair