STAND. COM. REP. NO. 2038

Honolulu, Hawaii

RE: S.B. No. 2231

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 2231 entitled:

"A BILL FOR AN ACT RELATING TO FINANCIAL DISCLOSURE,"

begs leave to report as follows:

The purpose and intent of this measure is to exempt unpaid board or commission members whose financial disclosure statements are not public records from the daily late disclosure fee.

Your Committee received testimony in opposition to this measure from Common Cause Hawaii and Ho‘omana Pono, LLC. Your Committee received comments on this measure from the Hawaii State Ethics Commission.

Your Committee finds that Article XIV of the Constitution of the State of Hawaii requires that all board and commission members who wield "significant discretionary or fiscal powers" file financial disclosure statements to promote transparency and accountability. State government relies on hundreds of private individuals to come forward and volunteer their time to serve on various boards or commissions. By and large these volunteers are required to submit financial disclosures. However, when these individuals are subjected to fines for filing their financial disclosure late, it serves as a determent for volunteering their time, energy, and service to the State.

Your Committee has amended this measure by making a clarifying amendment in the purpose section.

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. 2231, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2231, S.D. 1, and be referred to your Committee on Ways and Means.

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

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BRIAN T. TANIGUCHI, Chair