STAND. COM. REP. NO. 285

Honolulu, Hawaii

RE: S.B. No. 1055

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Government Operations, to which was referred S.B. No. 1055 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to require the Governor, Lieutenant Governor, members of the Legislature, Governor-appointed Executive of each principal department, President of the University of Hawaii, Superintendent of Education, Administrative Director of the State, Administrative Director of the Courts, and the Administrator of the Office of Hawaiian Affairs to disclose additional information regarding income received from certain businesses or services.

Your Committee received testimony in support of this measure from the Hawaii State Ethics Commission and Life of the Land.

Your Committee finds that under existing law, various state officials are required to file annual financial disclosure statements with the State Ethics Commission. However, the Governor, Lieutenant Governor, members of the Legislature, principle department executives, President of the University of Hawaii, Superintendent of Education, Administrative Director of the State, Administrative Director of the Courts, and the Administrator of the Office of Hawaiian Affairs are not required to disclose individual items of compensation that constitute a portion of their income or any specific information regarding clients.

This measure requires these high-level state officials to provide more specificity and detail in their financial disclosure statements, which will promote public trust and aid the State Ethics Commission in identifying and addressing, if needed, any potential conflicts of interest to ensure the highest levels of integrity in state government.

Your Committee has amended this measure by making a technical, nonsubstantive amendment to correctly reflect the most current language in the Hawaii Revised Statutes.

As affirmed by the record of votes of the members of your Committee on Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1055, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1055, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Government Operations,

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LAURA H. THIELEN, Chair