SB381

SECTION 1. The legislature finds that ensuring transparency and openness in the appointment of leadership positions within state divisions and agencies is essential to fostering public trust, accountability, and effective governance. In recent years, public discourse and media coverage have underscored the importance of transparency, particularly in the context of decisions that shape the operational priorities and policies of government entities.

Transparency in the selection of board-appointed leadership has a direct impact on public confidence in the integrity and fairness of governmental operations. Lack of openness in these processes may lead to perceptions of favoritism, conflicts of interest, or decisions that do not reflect the best interests of the public. This perception undermines the democratic principles that are the foundation of public governance.

The legislature recognizes the following critical concerns:

(1) Public interest and stakeholder engagement. Public boards often oversee critical areas such as education, health care, public safety, and infrastructure. Decisions affecting the leadership of state divisions or agencies responsible for these areas can significantly influence the quality of services provided to residents;

(2) Media reports and investigative findings. Investigative reports have highlighted instances where opaque or inconsistent processes in appointing or selecting heads of divisions or agencies have led to controversies, eroding public trust and creating legal or operational challenges for state agencies;

(3) National standards and best practices. Across the United States, many states have moved towards codifying open and transparent selection processes for public appointments to ensure equity, merit-based decisions, and public confidence; and

(4) Economic and social implications. Leadership transitions often involve policy shifts that affect local economies, vulnerable populations, and resource allocation. Transparent processes ensure that all stakeholders understand and can contribute to these decisions.

The legislature believes that it is critical for the State to affirm its commitment to integrity, equity, and transparency, and ensure that board decisions concerning the appointment and selection of heads of state divisions and agencies are made openly and in alignment with the public's best interest.

Accordingly, the purpose of this Act is to establish a clear statutory framework mandating transparency, accountability, and public participation in the selection processes for board-appointed positions. This framework will ensure that all deliberations and votes related to the selection of heads of state divisions and agencies occur in public meetings; processes and timelines for appointments are predetermined and disclosed to the public; and amendments to selection processes are made transparently and openly.

SECTION 2. Chapter 92, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

"§92- Appointment; selection; head of a division or agency. (a) Upon the vacancy or anticipated vacancy of the head of any division or agency of the State that requires a board to appoint or otherwise select the new head, the board shall use open deliberation in an open meeting to establish a process and timeline for the appointment or selection of the new head. Approval of the process and timeline shall be determined in an open meeting.

(b) The board shall follow the process and timeline established under subsection (a). If, during the selection process, the board determines that the process or timeline requires amendment, the amendment shall be made through open deliberation in an open meeting and approval of the amendment shall be determined in an open meeting.

(c) Any appointment or selection of a head of any division or agency of the State by a board that is made in violation of this section shall be invalid."

SECTION 3. Section 92-5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) A board may hold a meeting closed to the public pursuant to section 92-4 for one or more of the following purposes:

(1) To consider and evaluate personal information relating to individuals applying for professional or vocational licenses cited in section 26-9 or both;

(2) To consider the hire, evaluation, dismissal, or discipline of an officer or employee or of charges brought against the officer or employee, where consideration of matters affecting privacy will be involved; provided that if the individual concerned requests an open meeting, an open meeting shall be held; provided further that any vote to appoint or select a head of a division or agency pursuant to section 92- shall be conducted in an open meeting;

(3) To deliberate concerning the authority of persons designated by the board to conduct labor negotiations or to negotiate the acquisition of public property, or during the conduct of such negotiations;

(4) To consult with the board's attorney on questions and issues pertaining to the board's powers, duties, privileges, immunities, and liabilities;

(5) To investigate proceedings regarding criminal misconduct;

(6) To consider sensitive matters related to public safety or security;

(7) To consider matters relating to the solicitation and acceptance of private donations; and

(8) To deliberate or make a decision upon a matter that requires the consideration of information that must be kept confidential pursuant to a state or federal law, or a court order."

SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	381
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII