STAND. COM. REP. NO. 1179

Honolulu, Hawaii

RE: H.B. No. 717

H.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Labor and Technology, to which was referred H.B. No. 717, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO NEPOTISM,"

begs leave to report as follows:

The purpose and intent of this measure is to, beginning July 1, 2023, prohibit legislators and public employees from taking or participating in certain actions related to the public employment of, or award of contracts to, relatives or household members.

Your Committee received testimony in support of this measure from the Department of Human Resources Development, Hawaii State Ethics Commission, Holomua Collaborative, and four individuals.

Your Committee finds that the State Ethics Commission receives numerous complaints alleging unwarranted benefits or preferential treatment to an employer's relatives each year. According to testimony received by your Committee, the Commission's investigations into these complaints are confidential so that even when no ethics code violations are found, the Commission cannot adequately address the appearance of impropriety. Your Committee recognizes that the existing fair treatment law is not enough to address the appearance of impropriety that occurs with the hiring or promotion of an employer's relative. This measure seeks to promote faith in state government by improving standards of conduct regarding nepotism within state agencies.

As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 717, H.D. 1, and recommends that it pass Second Reading and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Labor and Technology,

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SHARON MORIWAKI, Chair