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HOUSE OF REPRESENTATIVES |
H.B. NO. |
493 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to ethics.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 84-3, Hawaii Revised Statutes, is amended by amending the definition of "employee" to read as follows:
""Employee" means any
nominated, appointed, or elected officer or employee of the State, including legislators,
members of boards, commissions, and committees, and employees under contract to
the State or of the constitutional convention, but excluding [legislators,]
delegates to the constitutional convention, justices, and judges."
SECTION 2. Section 84-11, Hawaii Revised Statutes, is amended to read as follows:
"§84-11 Gifts. No [legislator or] employee shall
solicit, accept, or receive, directly or indirectly, any gift, whether in the
form of money, service, loan, travel, entertainment, hospitality, thing, or
promise, or in any other form, under circumstances in which it can reasonably
be inferred that the gift is intended to influence the [legislator or]
employee in the performance of the [legislator's or] employee's official
duties or is intended as a reward for any official action on the [legislator's
or] employee's part."
SECTION 3. Section 84-11.5, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) Every [legislator
and] employee shall file a gifts disclosure statement with the state ethics
commission no later than July 31 of each year if all the following conditions
are met:
(1) The [legislator
or] employee, or spouse or dependent child of [a legislator or] the
employee, received directly or indirectly from one source any gift or gifts
valued singly or in the aggregate in excess of $200, whether the gift is in the
form of money, service, goods, or in any other form;
(2) The source of the
gift or gifts have interests that may be affected by official action or lack of
action by the [legislator or] employee; and
(3) The gift is not exempted by subsection (d) from reporting requirements under this subsection."
2. By amending subsection (e) to read:
"(e) Failure of [a legislator or] an
employee to file a gifts disclosure statement as required by this section shall
be a violation of this chapter."
3. By amending subsection (h) to read:
"(h) For purposes of this section, "[legislator
or] employee" includes any individual who was [a legislator or]
an employee for any portion of the period from July 1 of the preceding
calendar year through June 30 of the year of the report."
SECTION 4. Section 84-12, Hawaii Revised Statutes, is amended to read as follows:
"§84-12 Confidential information. No [legislator or] employee shall
disclose information which by law or practice is not available to the public
and which the [legislator or] employee acquires in the course of the [legislator's
or] employee's official duties, or use the information for the [legislator's
or] employee's personal gain or for the benefit of anyone; provided that
this section shall not preclude a person who serves as the designee or
representative of an entity that is a member of a task force from disclosing
information to the entity which the person acquires as the entity's designee or
representative."
SECTION 5. Section 84-13, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) No [legislator or] employee shall use
or attempt to use the [legislator's or] employee's official position to
secure or grant unwarranted privileges, exemptions, advantages, contracts, or
treatment, for oneself or others; including but not limited to the following:
(1) Seeking other
employment or contract for services for oneself by the use or attempted use of
the [legislator's or] employee's office or position;
(2) Accepting,
receiving, or soliciting compensation or other consideration for the
performance of the [legislator's or] employee's official duties or
responsibilities except as provided by law;
(3) Using state time, equipment, or other facilities for private business purposes; or
(4) Soliciting,
selling, or otherwise engaging in a substantial financial transaction with a
subordinate or a person or business whom the [legislator or] employee
inspects or supervises in the [legislator's or] employee's official
capacity."
SECTION 6. Section 84-14, Hawaii Revised Statutes, is amended by amending subsections (c) and (d) to read as follows:
"(c) No [legislator or] employee shall
assist any person or business or act in a representative capacity before any
state or county agency for a contingent compensation in any transaction
involving the State.
(d)
No [legislator or] employee shall assist any person or business
or act in a representative capacity for a fee or other compensation to secure
passage of a bill or to obtain a contract, claim, or other transaction or
proposal in which the [legislator or] employee has participated or will
participate as [a legislator or] an employee, nor shall the [legislator
or] employee assist any person or business or act in a representative
capacity for a fee or other compensation on such bill, contract, claim, or
other transaction or proposal before the legislature or agency of which the [legislator
or] employee is an employee [or legislator]."
SECTION 7. Section 84-15, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"§84-15 Contracts. (a) A
state agency shall not enter into any contract to procure or dispose of goods
or services, or for construction, with [a legislator,] an employee[,]
or a business in which [a legislator or] an employee has a controlling
interest, involving services or property of a value in excess of $10,000
unless:
(1) The contract is awarded by competitive sealed bidding pursuant to section 103D-302;
(2) The contract is awarded by competitive sealed proposal pursuant to section 103D-303; or
(3) The agency posts a notice of its intent to award the contract and files a copy of the notice with the state ethics commission at least ten days before the contract is awarded."
SECTION 8. Section 84-17, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
2. By amending subsection (j) to read:
"(j) Failure of [a legislator,] a delegate
to the constitutional convention[,] or an employee to file a disclosure
of financial interests as required by this section shall be a violation of this
chapter. Any [legislator,]
delegate to a constitutional convention[,] or employee who fails to file
a disclosure of financial interests when due may be assessed an administrative
fine of $50. The state ethics
commission, upon the expiration of the time allowed for filing, may post on its
website for public inspection a list of all persons who have failed to file
financial disclosure statements.
The state ethics commission shall notify a person, by in-person service,
electronic mail to the person's state electronic mail address, or first-class
mail, of the failure to file, and, if applicable, the administrative fine. If a disclosure of financial interests has
not been filed within thirty days after the original deadline, in addition to
any initial administrative fine that may have been assessed, an administrative
fine of $250 may be assessed."
SECTION 9. Section 84-17.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) All financial disclosure statements filed by [a
legislator,] an employee[,] or a delegate to a
constitutional convention shall be maintained by the state ethics commission
for a period of six years from the date of the financial disclosure statement's
filing. Upon the expiration of the
six-year period, the financial disclosure statement and all copies thereof may
be destroyed."
SECTION 10. Section 84-18, Hawaii Revised Statutes, is amended to read as follows:
"§84-18 Restrictions on post
employment. (a) No former [legislator or] employee
shall disclose any information that by law or practice is not available to the
public and that the former [legislator or] employee acquired in the
course of the former [legislator's or] employee's official duties or use
the information for the former [legislator's or] employee's personal
gain or the benefit of anyone.
[(b) No former legislator, within twelve months
after termination of the former legislator's employment, shall represent any
person or business for a fee or other consideration on:
(1) Matters in
which the former legislator participated as a legislator;
(2) Matters
involving official action by the legislature; or
(3) Any
administrative action, as defined in section 97-1.
(c)] (b) No former employee, within twelve months
after termination of the former employee's employment, shall represent any
person or business for a fee or other consideration, on matters in which the
former employee participated as an employee or on matters involving official
action by the particular state agency or subdivision thereof with which the
former employee had actually served.
This section shall not apply to a former task force member who, but for
service as a task force member, would not be considered an employee.
[(d)] (c) This section shall not prohibit any agency
from contracting with a former [legislator or] employee to act on a
matter on behalf of the State within the period of limitations stated herein,
and shall not prevent that [legislator or] employee from appearing
before any agency in relation to that employment.
[(e)] (d) Subject to the restrictions imposed in
subsections (a) through [(d),] (c), the following individuals
shall not represent any person or business for a fee or other consideration
regarding any legislative action or administrative action, as defined in
section 97-1, for twelve months after termination from their respective positions:
(1) The governor;
(2) The lieutenant governor;
(3) The administrative director of the State;
(4) The attorney general;
(5) The comptroller;
(6) The chairperson of the board of agriculture;
(7) The director of corrections and rehabilitation;
(8) The director of finance;
(9) The director of business, economic development, and tourism;
(10) The director of commerce and consumer affairs;
(11) The adjutant general;
(12) The superintendent of education;
(13) The chairperson of the Hawaiian homes commission;
(14) The director of health;
(15) The director of human resources development;
(16) The director of human services;
(17) The director of labor and industrial relations;
(18) The chairperson of the board of land and natural resources;
(19) The director of law enforcement;
(20) The director of taxation;
(21) The director of transportation;
(22) The president of the University of Hawaii;
(23) The executive administrator of the board of regents of the University of Hawaii;
(24) The administrator of the office of Hawaiian affairs;
(25) The chief information officer;
(26) The executive director of the agribusiness development corporation;
(27) The executive director of the campaign spending commission;
(28) The executive director of the Hawaii community development authority;
(29) The executive director of the Hawaii housing finance and development corporation;
(30) The president and chief executive officer of the Hawaii tourism authority;
(31) The executive officer of the public utilities commission;
(32) Each
legislator;
[(32)] (33) The state auditor;
[(33)] (34) The director of the legislative reference
bureau;
[(34)] (35) The ombudsman;
[(35)] (36) The permanent employees of the legislature,
other than persons employed in clerical, secretarial, or similar positions;
[(36)] (37) The administrative director of the courts;
[(37)] (38) The executive director of the state ethics
commission;
[(38)] (39) The executive officer of the state land use commission;
[(39)] (40) The executive director of the natural energy
laboratory of Hawaii authority;
[(40)] (41) The executive director of the Hawaii public
housing authority; and
[(41)] (42) The first deputy to the chairperson of the
commission on water resource management;
provided that this subsection shall not apply to any person who has held one of the positions listed above only on an interim or acting basis and for a period of less than one hundred eighty-one days.
[(f)] (e) Subsections (b) through [(e)] (d)
shall not apply to any person who is employed by the State for a period of less
than one hundred [and] eighty-one days.
[(g)] (f) For the purposes of this section, "represent"
means to engage in direct communication on behalf of any person or business
with a legislator, a legislative employee, a particular state agency or
subdivision thereof[,] or their employees."
SECTION 11. Section 84-19, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:
"(a) Any favorable state action obtained in
violation of the code of ethics for [legislators or] employees and
former employees is voidable in the same manner as voidable contracts as
provided for under section 84-16[;], and the State by the
attorney general may pursue all legal and equitable remedies available to it.
(b) The State by the attorney general may recover
any fee, compensation, gift, or profit received by any person as a result of a
violation of the code of ethics by [a legislator or] an employee
or former [legislator or] employee.
Action to recover under this subsection shall be brought within one year
of a determination of such violation."
SECTION 12. Section 84-31, Hawaii Revised Statutes, is amended as follows:
1.
By amending subsection (a) to read:
"(a)
The ethics commission shall have the following powers and duties:
(1) It
shall prescribe forms for the disclosures required by article XIV of the Hawaii
constitution and section 84-17 and the gifts disclosure statements required by
section 84-11.5 and shall establish orderly procedures for implementing the
requirements of those provisions;
(2) It
shall provide advice upon the request of any person as to whether the facts and
circumstances of a particular situation constitute or will constitute a
violation of the code of ethics or other laws or rules administered and
enforced by the commission, and discuss ways to avoid an appearance of
impropriety. A person receiving advice
from the commission may request a written summary of that advice. The commission shall treat all advice
requests, responses, and related materials as confidential. Written summaries shall be confidential
unless the recipient waives confidentiality;
(3) It
shall render advisory opinions upon the request of any [legislator,]
employee[,] or delegate to the constitutional convention, or person
formerly holding such office or employment as to whether the facts and
circumstances of a particular case constitute or will constitute a violation of
the code of ethics. If no advisory
opinion is rendered within ninety days after the request is filed with the
commission, it shall be deemed that an advisory opinion was rendered and that
the facts and circumstances of that particular case do not constitute a
violation of the code of ethics. The
opinion rendered or deemed rendered, until amended or revoked, shall be binding
on the commission in any subsequent charges concerning the [legislator,]
employee[,] or delegate to the constitutional convention, or person
formerly holding such office or employment, who sought the opinion and acted in
reliance on it in good faith, unless material facts were omitted or misstated
by such persons in the request for an advisory opinion. The commission shall also render public
general advisory opinions concerning proper interpretation of the code of
ethics and other laws or rules administered and enforced by the commission, if
it deems the opinion of sufficient general interest and importance;
(4) It
may initiate an investigation into alleged, possible, or potential violations
of this chapter and other laws or rules administered and enforced by the
commission, on a confidential basis, having available all of the powers herein
provided, whether the investigation is made based on a charge allegation, other
information or indications, or as the commission determines is in the public
interest;
(5) It
shall initiate, receive, and consider charges and other information, on a
confidential basis, concerning alleged, possible, or potential violations of
this chapter and other laws or rules administered and enforced by the
commission, initiate or make investigation, and hold hearings;
(6) Upon
adoption of a resolution defining the scope and nature of the inquiry,
supported by a vote of three or more members of the commission, it may subpoena
witnesses, administer oaths, and take testimony relating to matters before the
commission and require the production for examination of any books or papers
relative to any matter under investigation or in question before the
commission;
(7) It
may, from time to time adopt, amend, and repeal any rules, not inconsistent
with this chapter, that in the judgment of the commission seem appropriate for
the carrying out of this chapter and for the efficient administration thereof,
including every matter or thing required to be done or which may be done with
the approval or consent or by order or under the direction or supervision of or
as prescribed by the commission. The
rules, when adopted as provided in chapter 91, shall have the force and effect of
law;
(8) It
shall have jurisdiction for purposes of investigation and taking appropriate
action on possible violations of this chapter in all proceedings commenced
within six years of a possible violation of this chapter by [a legislator or]
an employee or a former [legislator or] employee. A proceeding shall be deemed commenced by the
filing of a charge with the commission or by the signing of a charge by three
or more members of the commission.
Nothing herein shall bar proceedings against a person who by fraud or
other device, prevents discovery of a violation of this chapter;
(9) It
shall distribute its publications without cost to the public and shall initiate
and maintain programs with the purpose of educating the citizenry and all [legislators,]
employees[,] and delegates to the constitutional convention on matters
of ethics in government employment; and
(10) It
shall administer any code of ethics adopted by a state constitutional
convention, subject to the procedural requirements of this part and any rules
adopted thereunder."
2.
By amending subsection (d) to read:
"(d)
A decision of the commission pertaining to the conduct of any [legislator,]
employee or delegate to the constitutional convention, [or employee]
or person formerly holding such office or employment, shall be in
writing and signed by three or more of the members of the commission. A decision of the commission rendered after a
hearing together with findings and the record of the proceeding shall be a
public record."
SECTION 13. Section 84-32, Hawaii Revised Statutes, is amended by amending subsections (a), (b), and (c) to read as follows:
"(a) With respect to [legislators and]
employees removable only by impeachment:
when the ethics commission after due hearings pursuant to section
84-31(c) determines that there is sufficient cause to file a complaint against [a
legislator or] an employee removable only by impeachment, it shall issue a
complaint and refer the matter to the appropriate body of the legislature. The complaint shall contain a statement of
the facts alleged to constitute the violation.
The complaint shall be a matter of public record. The legislature shall take appropriate
disciplinary action unless it determines that disciplinary action is not
warranted and, within thirty days of the referral of the complaint, shall
notify the commission of the action taken.
Days during which the legislature is not in session shall not be
included in determining the thirty-day period.
Any disciplinary action taken by the legislature, or the fact that no
disciplinary action is taken, shall be a matter of public record.
(b) With respect to employees other than [legislators
and] employees removable only by impeachment: when the commission determines after due
hearing pursuant to section 84-31(c) that there is sufficient cause to file a
complaint against an employee other than [a legislator, or] an employee
removable only by impeachment, it shall issue a complaint and refer the matter
to the governor who shall take appropriate disciplinary action unless the
governor determines that disciplinary action is not warranted. The governor shall notify the commission of the
disciplinary action taken or the fact that no disciplinary action was taken,
within sixty days of the referral of the complaint. The complaint and any disciplinary action
taken, or the fact that no disciplinary action is taken, shall be a matter of
public record.
(c) With respect to former employees [and
former legislators], when the commission determines after due hearing
pursuant to section 84-31(c) that there is sufficient cause to file a complaint
against a former employee [or former legislator], it shall issue a
complaint and refer the matter to the attorney general who may exercise
whatever legal or equitable remedies which may be available to the State. The complaint shall be a matter of public
record."
SECTION 14. Section 84-39, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Where an administrative fine has not been
established for a violation of this chapter, any person, including [a
legislator or] an employee, who violates this chapter shall be
subject to an administrative fine imposed by the state ethics commission that
shall not exceed $5,000 for each violation.
All fines collected under this section shall be deposited in the general
fund."
SECTION 15. Section 84-43, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:
"(d) The state ethics commission shall:
(1) Design and administer the live ethics training courses;
(2) Designate those of its legal staff who are to conduct the live ethics training course;
(3) Notify each [legislator or] employee,
either directly or via the employee's employing agency, that [their] the
employee's attendance or participation in an applicable ethics training
course is mandatory; provided that [a legislator's or] an
employee's non-receipt of notice shall not be a defense to a charge concerning
a violation of this chapter; and
(4) Design and administer the online ethics training course."
SECTION 16. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 17. This Act shall take effect on July 1, 2025.
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INTRODUCED BY: |
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Report Title:
Ethics; Legislators; Employees
Description:
For purposes of the state ethics laws, subjects legislators to all ethics laws applicable to employees by including legislators within the definition of "employees". Repeals references to legislators under the state ethics laws made redundant by the inclusion.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.