STAND. COM. REP. NO. 3723

Honolulu, Hawaii

RE: H.B. No. 2125

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 2125, H.D. 2, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Make changes to the financial disclosure statute so that the statutory language tracks the capabilities of the Hawaii State Ethics Commission's (Ethics Commission) electronic filing system, including:

(A) Changing the Ethics Commission's reporting requirements to require filers to report any clients assisted before state agencies; and

(B) Deleting the requirement that disclosures be in long form and short form and instead allowing financial disclosure statements to be filed electronically;

(2) Repeal the provision that exempts members of the Hawaii Correctional System Oversight Commission from the requirements of the financial disclosure statute; and

(3) Allow the Ethics Commission, in its discretion, to make changes it deems necessary to its internal procedures or forms to aid in implementing this measure.

Your Committee received testimony in support of this measure from the Hawai‘i State Ethics Commission, Common Cause Hawaii, Rainbow Family 808, and four individuals.

Your Committee finds that making the Hawaii Correctional System Oversight Commission members subject to the financial disclosure statute will hold these members to the same accountability standard and requirements as other public officials who have significant discretionary or fiscal powers.

Your Committee has amended this measure by:

(1) Inserting language to specify the reporting obligation and initial disclosure period for current members of the Hawaii Correctional System Oversight Commission;

(2) Making it effective upon its approval; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

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 H.B. No. 2125, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2125, H.D. 2, S.D. 1, and be placed on the calendar for Third Reading.

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

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KARL RHOADS, Chair