Report Title:

SECTION 1. Policy makers, state agency leaders, candidates for state elective offices, and members of state boards and commissions are required to file annual financial disclosure statements with the state ethics commission. The financial disclosure statements reveal potential conflicts of interest.

However, only the financial disclosure statements of the governor, lieutenant governor, legislators, and state department directors and their deputies are public records and available for inspection and duplication. Financial disclosure statements are not publicly available for the majority of the members of very powerful state boards and commissions. These boards and commissions shape the political, economic, social, environmental, and cultural fabric of society in Hawaii.

The primary purpose of this Act is to further ensure transparency and accountability of individuals serving in state government by making the financial disclosure statements of state board and commission members public documents and available for public inspection.

Additionally, the Act will clarify the fair treatment law as applicable to legislators and task force members by separating out certain limitations placed on task force members from those placed on legislators, and making clear that legislators are not prohibited from taking action in the exercise of the legislator's legislative functions.

SECTION 2. Section 84-13, Hawaii Revised Statutes, is amended to read as follows:

"§84-13 Fair treatment. (a) No legislator or employee shall use or attempt to use the legislator's or employee's official position to secure or grant unwarranted privileges, exemptions, advantages, contracts, or treatment, for oneself or others; including but not limited to the following:

(1) Seeking other employment or contract for services for oneself by the use or attempted use of the legislator's or employee's office or position.

(2) Accepting, receiving, or soliciting compensation or other consideration for the performance of the legislator's or employee's official duties or responsibilities except as provided by law.

(3) Using state time, equipment or other facilities for private business purposes.

(4) Soliciting, selling, or otherwise engaging in a substantial financial transaction with a subordinate or a person or business whom the legislator or employee inspects or supervises in the legislator's or employee's official capacity.

(b) Nothing [~~herein~~] in this section shall be construed to prohibit a legislator from introducing bills and resolutions, [~~or to prevent a person from serving on a task force or~~] from serving on [~~a task force committee,~~] committees, or from making statements or taking [~~official~~] action [~~as a legislator, or a task force member or a task force member's designee or representative.~~] in the exercise of the legislator's legislative functions. Every legislator [~~, or task force member or designee or representative of a task force member~~] shall file a full and complete public disclosure of the nature and extent of the interest or transaction which the legislator [~~or task force member or task force member's designee or representative~~] believes may be affected by the [~~legislator's or task force member's official action~~] legislative action.

(c) Nothing in this section shall be construed to prevent a person from serving on a task force or a task force committee, or from making statements or taking official action as a task force member or a task force member's designee or representative. Every task force member or designee or representative of a task force member shall file a full and complete public disclosure of the nature and extent of the interest or transaction which the task force member or task force member's designee or representative believes may be affected by the task force member's official action."

SECTION 3. Section 84-17, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(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 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 president, the vice presidents, the assistant vice presidents, the chancellors, board of regents, and the provosts of the University of Hawaii;

(5) The members of the board of education and 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 state boards or commissions, including but not limited to the following:

(A) Board of directors of the agribusiness development corporation established under section 163D-3;

(B) Board of agriculture established under section 26-16;

(D) Hawaii community development authority established under section 206E-3;

(E) Hawaiian homes commission established under section 26-17;

(F) Board of directors of the Hawaii housing finance and development corporation established under section 201H-3;

(G) Board of land and natural resources established under section 171-4;

(H) Land use commission established under section 205-1;

(I) Legacy land conservation commission established under section 173A-2.4;

(J) Natural area reserves system commission established under section 195-6;

(K) Board of directors of the natural energy laboratory of Hawaii authority established under section 227D-2;

(L) Board of directors of the Hawaii public housing authority established under section 356D-3;

(M) Board of directors of the public land development corporation established under section 171C-3;

(N) Public utilities commission established under section 269-2;

(O) Commission on water resource management established under section 174C-7;

(P) Hawaii labor relations board established under section 89-5; and

(Q) Labor and industrial relations appeals board established under section 371-4."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

THE SENATE	S.B. NO.	66
TWENTY-SEVENTH LEGISLATURE, 2013		S.D. 1
STATE OF HAWAII		H.D. 2
		Proposed