STAND. COM. REP. NO. 1433

Honolulu, Hawaii

, 2025

RE: S.B. No. 1545

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Legislative Management, to which was referred S.B. No. 1545 entitled:

"A BILL FOR AN ACT RELATING TO NEPOTISM,"

begs leave to report as follows:

The purpose of this measure is to repeal language in the State's Code of Ethics that exempts the legislative branch from prohibitions against nepotism in public employment.

Your Committee received testimony in support of this measure from the Hawai‘i State Ethics Commission and four individuals.

Your Committee finds that under existing law, the hiring, supervision, and contractual engagements of relatives or household members are generally restricted for most state employees to prevent conflicts of interest and improper favoritism. However, these statutory provisions do not currently extend to legislative and judicial branch employees, thereby creating a regulatory inconsistency that could undermine public confidence in the integrity of legislative operations. This measure subjects legislative branch employees to the same ethical standards applicable to other state employees. Your Committee further finds that judicial branch employees should also be subject to prohibitions against nepotism. Amendments to this measure are therefore needed so that nepotism is prohibited within all three branches of state government.

Accordingly, your Committee has amended this measure by:

(1) Repealing language that exempts the judicial branch from prohibitions against nepotism in public employment;

(2) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Legislative Management that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1545, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1545, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Legislative Management,

____________________________

DANIEL HOLT, Chair