SB2684.DOC

PART I

SECTION 1. Section 97-2, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) This chapter shall not apply to:

(1) Any individual who represents oneself and not any other person before the legislature or administrative agency; provided that such individual must nonetheless file a statement of expenditures if the individual meets any of the provisions of section 97-3(a);

(2) Any federal, state, or county official or employee acting in the official's or employee's official capacity, unless the federal, state or county official, or employee contracts for the services of a lobbyist;

(3) Any elected public official acting in the public official's official capacity, unless the public official contracts for the services of a lobbyist;

(4) Any newspaper or other regularly published periodical or radio or television station (including any individual who owns, publishes, or is employed by a newspaper or periodical or radio or television station) while publishing in the regular course of business news items, editorials, or other comments, or paid advertisements, which directly or indirectly urge the passage or defeat of legislative or administrative action;

(5) Any attorney who advises the attorney's clients on the construction or effect of proposed legislative or administrative action; provided that such attorney must nonetheless register if the attorney meets any of the provisions of [~~section 97-1(6);~~] a lobbyist as defined in section 97-1; and

(6) Any person who possesses special skills and knowledge relevant to certain areas of legislation, whose skills and knowledge may be helpful to the legislative and executive branches of state government, and who makes an occasional appearance at the request of the legislature or an administrative agency, or the lobbyist even though receiving reimbursement or other payment from the legislature or administrative agency or the lobbyist for the appearance."

SECTION 2. Section 97-7, Hawaii Revised Statutes, is amended to read as follows:

"§97-7 Penalties; administrative fines. (a) Any person who:

(1) [~~Wilfully fails~~] Fails to file any statement or report required by this chapter;

(2) [~~Wilfully files~~] Files a statement or report containing false information or material omission of any fact;

(3) Engages in activities prohibited by section 97-5; or

(4) Fails to provide information required by section 97-2 or 97-3;

shall be subject to an administrative fine imposed by the commission that shall not exceed $500 for each violation of this chapter. All fines collected under this section shall be deposited into the general fund.

(b) No fine shall be assessed unless:

(1) The commission convenes a hearing in accordance with section 97-6(c) and chapter 91; and

(2) A decision has been rendered by the commission.

(c) The provisions of this chapter shall not prohibit prosecution under any appropriate provision of the Hawaii Penal Code.

(d) This section shall not apply to any person who, prior to the commencement of proceedings under this section, has paid or agreed to pay the fines prescribed under this section."

PART II

SECTION 3. Chapter 97, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§97- Criminal referral. In lieu of an administrative determination that a violation of this chapter has been committed, the state ethics commission may refer the complaint to the attorney general or county prosecutor at any time it believes a person may have recklessly, knowingly, or intentionally committed a violation.

§97- Criminal prosecution. (a) Any person who recklessly, knowingly, or intentionally violates any provision of this chapter shall be guilty of a petty misdemeanor.

(b) Any person who knowingly or intentionally falsifies any report required by this chapter with the intent to circumvent the law or deceive the state ethics commission shall be guilty of a misdemeanor.

(c) Prosecutions for violations of this chapter shall not commence after five years have elapsed from the date of the violation or date of filing of the report covering the period in which the violation occurred, whichever is later.

(d) This section shall not apply to any person who, prior to the commencement of proceedings under this section, has paid or agreed to pay the fines prescribed by section 97-7."

PART III

SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 5. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval or July 1, 2012, whichever is later.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2684
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII