STAND. COM. REP. NO. 698

Honolulu, Hawaii

RE: S.B. No. 1545

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Judiciary, 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 and intent 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 five individuals.

Your Committee received comments on this measure from the Hawaiʻi State Ethics Commission.

Your Committee finds that while existing law prohibits most state employees from hiring or supervising relatives or awarding contracts to businesses owned by relatives or household members, these provisions do not currently extend to employees of the Legislature. Your Committee believes that recognizing the importance of maintaining transparency, accountability, and fairness in government operations, including within its own ranks, is crucial to preserving public trust. This measure will reaffirm the Legislature's commitment to upholding the highest standards of integrity and foster public trust in government operations by subjecting legislative employees to the same ethical standards as other state employees.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1545 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

________________________________

KARL RHOADS, Chair