STAND. COM. REP. NO.  1570

Honolulu, Hawaii

                , 2013

RE:   S.B. No. 66

      S.D. 1

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred S.B. No. 66, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE CODE OF ETHICS,"

begs leave to report as follows:

The purpose of this measure as received by your Committee 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 available for public inspection.

     Prior to the public hearing on this measure, your Committee circulated a Proposed Draft of this measure and notified the public that it would be accepting testimony on the Proposed Draft.  The purpose of this Proposed Draft is to strengthen the law relating to the code of ethics.  The Proposed Draft retains the contents of S.B. No. 66, S.D. 1, H.D. 1, which makes the financial disclosure statements of state board and commission members public documents available for public inspection and also:

(1)  Clarifies the fair treatment law as applicable to legislators and task force members by separating out permissible actions and required financial disclosures applicable to task force members from those applicable to legislators; and

(2)  Makes clear that legislators are not prohibited from taking action in the exercise of their legislative functions under the fair treatment law.

     Your Committee scheduled a hearing and received testimony on the Proposed Draft.

The Public Utilities Commission, Hawaii State Ethics Commission, and Hawaii Financial Services Association commented on this measure.

     Upon consideration, your Committee has adopted the Proposed Draft.  In addition, your Committee has further amended this measure by:

(1)  Making exclusive the list of state board and commission members whose financial disclosure statements shall be public records available for public inspection; and

(2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     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. 66, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 66, S.D. 1, H.D. 2.

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

____________________________

KARL RHOADS, Chair