Bill Text: HI SB458 | 2017 | Regular Session | Introduced

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Bill Title: Relating To Ethics.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-01-23 - Referred to JDL, WAM. [SB458 Detail]

Download: Hawaii-2017-SB458-Introduced.html

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THE SENATE	S.B. NO.	458
TWENTY-NINTH LEGISLATURE, 2017
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to ethics.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  (a)  The legislature finds that maintaining the public's trust in government officials is vital to the strength of our democracy.  As article XIV of the state constitution proclaims, "The people of Hawaii believe that public officers and employees must exhibit the highest standards of ethical conduct and that these standards come from the personal integrity of each individual in government."  While some of our sister states have been rocked by corruption scandals in recent years–-caused by poor ethics laws, inadequate enforcement of those laws, or both--Hawaii takes pride in its strong ethics laws, and the commitment of more than 50,000 state employees who demonstrate the ideals of public service every day.

     (b)  The legislature recognizes the importance of ethics education and advice in preventing ethics violations.  This Act will clarify existing statutes to enable the ethics commission and its staff to better educate and advise state employees, legislators, lobbyists, and the public.  This Act is based on the following findings:

     (1)  A recent statutory change designed to clarify the application of the ethics code to task force members had the unintended effect of changing the law with respect to legislators as well.  This Act restores earlier language that protects legislators when carrying out a "legislative function";

     (2)  Hawaii's lobbyist law, chapter 97, Hawaii Revised Statutes, is both under- and over-inclusive.  Amending the definitions of "lobbying" and "lobbyist" will provide additional transparency to the public while relieving some individuals (specifically, certain representatives of charitable, nonprofit organizations) from having to register as lobbyists.  Similarly, several provisions of the lobbyists law can be streamlined to avoid unnecessary paperwork and to remove obsolete provisions that pertain to criminal penalties that no longer exist;

     (3)  Various fines for violations have not been increased since they were first authorized.  The following are examples:

         (A)  The current maximum penalty that the ethics commission can impose for a violation of the ethics code is $500 per violation.  This penalty amount has not been adjusted since being set by the legislature in 1992.  Adjusted for inflation, an equivalent penalty would be approximately $857 in 2016 dollars.  The legislature believes that the current statutory penalty should be increased to $1,000;

         (B)  The maximum penalty for violating chapter 97, Hawaii Revised Statutes, regulating lobbyists has remained at $500 since 1995.  This Act increases the fine to $1,000 to account for inflation;

         (C)  The fine for legislators, employees, and board or commission members for failing to file a financial disclosure report on time was set in 1995 at $50.  An equivalent fine would be approximately $80 in 2016 dollars.  This Act increases the fine to $75 to account for inflation; and

         (D)  The fine for candidates for state elective office for failing to timely file a financial disclosure report was set in 1995 at $25.  An equivalent fine would be approximately $40 in 2016 dollars.  This Act increases the fine to $50 to account for inflation; and

     (4)  The expense of sending letters by registered mail, return receipt requested, to those who fail to file their financial disclosures on time is no longer justified.  In 2016, the ethics commission sent nearly one hundred letters, each letter costing $14.87 in postage.  The commissions spent over $1,000 in postage for a communication that could have been sent to users' state e-mail accounts or by first-class mail.

     (c)  The purpose of this Act is to provide additional clarity and consistency in the administration and enforcement of Hawaii's ethics laws, and to promote integrity in state government, by:

     (1)  Clarifying the procedures used by the state ethics commission and its staff for providing advice on ethics issues; educating employees, legislators, lobbyists, and the general public; collecting and publishing information from public employees, candidates, and lobbyists; and resolving investigations;

     (2)  Restoring previous statutory language protecting legislators when carrying out a "legislative function";

     (3)  Clarifying the fair treatment and conflict of interest law with respect to task force members and legislators by restoring previous statutory language regarding a legislator's "legislative function" and requiring the ethics commission to adopt rules regarding disclosures for task force members;

     (4)  Increasing the maximum penalties that the commission may impose and increasing the threshold for filing lobbying expenditure reports and registering as a lobbyist to account for inflation;

     (5)  Allowing the commission to notify individuals who fail to file their financial disclosures by the statutory deadline by e-mail or first-class mail, or both, rather than by registered mail, return receipt requested;

     (6)  Removing the mens rea requirement to prove a violation of chapter 97, Hawaii Revised Statutes, recognizing that the failure to file a report required by chapter 97, Hawaii Revised Statutes, is no longer a criminal offense;

     (7)  Clarifying the definition of "lobbying" to promote transparency in the legislative process;

     (8)  Granting the employer of a lobbyist the ability to terminate a registered lobbyist, in the event that a lobbyist does not terminate oneself; and

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

     SECTION 2.  Section 28-8.3, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (a) to read:

     "(a)  No department of the State other than the attorney general may employ or retain any attorney, by contract or otherwise, for the purpose of representing the State or the department in any litigation, rendering legal counsel to the department, or drafting legal documents for the department; provided that the foregoing provision shall not apply to the employment or retention of attorneys:

     (1)  By the public utilities commission, the labor and industrial relations appeals board, and the Hawaii labor relations board;

     (2)  By any court or judicial or legislative office of the State; provided that if the attorney general is requested to provide representation to a court or judicial office by the chief justice or the chief justice's designee, or to a legislative office by the speaker of the house of representatives and the president of the senate jointly, and the attorney general declines to provide [such] the representation on the grounds of conflict of interest, the attorney general shall retain an attorney for the court, judicial, or legislative office, subject to approval by the court, judicial, or legislative office;

     (3)  By the legislative reference bureau;

     (4)  By any compilation commission that may be constituted from time to time;

     (5)  By the real estate commission for any action involving the real estate recovery fund;

     (6)  By the contractors license board for any action involving the contractors recovery fund;

     (7)  By the office of Hawaiian affairs;

     (8)  By the department of commerce and consumer affairs for the enforcement of violations of chapters 480 and 485A;

     (9)  As grand jury counsel;

    (10)  By the Hawaii health systems corporation, or its regional system boards, or any of their facilities;

    (11)  By the auditor;

    (12)  By the office of ombudsman;

    (13)  By the insurance division;

    (14)  By the University of Hawaii;

    (15)  By the Kahoolawe island reserve commission;

    (16)  By the division of consumer advocacy;

    (17)  By the office of elections;

    (18)  By the campaign spending commission;

    (19)  By the Hawaii tourism authority, as provided in section 201B-2.5;

    (20)  By the division of financial institutions for any action involving the mortgage loan recovery fund;

    (21)  By the office of information practices; [or]

    (22)  By the state ethics commission; or

    (23)  By a department, if the attorney general, for reasons deemed by the attorney general to be good and sufficient, declines to employ or retain an attorney for a department; provided that the governor waives the provision of this section."

     2.  By amending subsection (c) to read:

     "(c)  Every attorney employed by any department on a full-time basis, except an attorney employed by the public utilities commission, the labor and industrial relations appeals board, the Hawaii labor relations board, the office of Hawaiian affairs, the Hawaii health systems corporation or its regional system boards, the department of commerce and consumer affairs in prosecution of consumer complaints, insurance division, the division of consumer advocacy, the University of Hawaii, the Hawaii tourism authority as provided in section 201B-2.5, the office of information practices, the state ethics commission, or as grand jury counsel, shall be a deputy attorney general."

     SECTION 3.  Section 84-13, Hawaii Revised Statutes, is amended to read as follows:

     "§84-13  Fair treatment.  (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.

     (b)  Nothing [herein] in this section shall be construed to prohibit a legislator from introducing bills and resolutions, [or to prevent a person from serving on a task force or] from serving on [a task force committee,] committees, or from making statements or taking [official] action [as a legislator, or a task force member or a task force member's designee or representative.] in the exercise of the legislator's legislative functions.  Every legislator[, or task force member or designee or representative of a task force member] shall [file a full and complete public disclosure of] publicly disclose the nature and extent of the interest or transaction [which] that the legislator [or task force member or task force member's designee or representative] believes may be affected by [the legislator's or task force member's official action.] legislative action.  The state ethics commission shall establish rules to provide for this public disclosure.

     (c)  Nothing in this section shall be construed to prevent a person from serving on a task force or a task force committee, or from making statements or taking official action as a task force member or a task force member's designee or representative.  Every task force member or task force member's designee or representative shall publicly disclose the nature and extent of any interest or transaction which the task force member or task force member's designee or representative believes may be affected by the task force member's official action.  The state ethics commission shall establish rules to provide for this public disclosure."

     SECTION 4.  Section 84-14, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

     "(f)  [Subsections (a), (b), and (d) shall not apply to a task force member or the designee or representative of that task force member whose service as a task force member would not otherwise cause that member, designee, or representative to be considered an employee, if the task force member or the designee or representative of that task force member complies with the disclosure requirements under section 84-17.] Nothing in this section shall be construed to prevent a person from serving on a task force or a task force committee, or from making statements or taking official action as a task force member or a task force member's designee or representative.  Every task force member or task force member's designee or representative shall publicly disclose the nature and extent of any interest or transaction that the task force member or task force member's designee or representative believes may be affected by the task force member's official action.  The state ethics commission shall establish rules to provide for this public disclosure."

     SECTION 5.  Section 84-17, Hawaii Revised Statutes, is amended by amending subsections (i) and (j) to read as follows:

     "(i)  Failure of a legislator, a delegate to the constitutional convention, or 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 shall be assessed an administrative fine of [$50.] $75.  The ethics commission, upon the expiration of the time allowed for filing, shall release to the public a list of all persons who have failed to file financial disclosure statements.  The [state] ethics commission shall notify a person, by [registered mail, return receipt requested] electronic mail to the person's state e-mail address or by first-class mail, of the failure to file, and the disclosure of financial interests shall be submitted to the commission not later than 4:30 p.m. on the tenth day after notification of the failure to file has been mailed to the person.  If a disclosure of financial interests has not been filed within ten days of the due date, an additional administrative fine of $10 for each day a disclosure remains unfiled shall be added to the administrative fine.  All administrative fines collected under this section shall be deposited in the State's general fund.  Any administrative fine for late filing shall be in addition to any other action the commission may take under this chapter for violations of the state ethics code.  The commission may waive any administrative fines assessed under this subsection for good cause shown.

     (j)  The chief election officer, upon receipt of the nomination paper of any person seeking a state elective office, including the office of delegate to the constitutional convention, shall notify the ethics commission of the name of the candidate for state office and the date on which the person filed the nomination paper.  The ethics commission, upon the expiration of the time allowed for filing, shall release to the public a list of all candidates who have failed to file financial disclosure statements and shall immediately assess a late filing penalty fee against those candidates of [$25] $50, which shall be collected by the [state] ethics commission and deposited into the general fund.  The ethics commission may investigate, initiate, or receive charges as to whether a candidate's financial disclosure statement discloses the financial interests required to be disclosed.  After proceeding in conformance with section 84-31, the ethics commission may issue a decision as to whether a candidate has complied with section 84-17(f) and this decision shall be a matter of public record."

     SECTION 6.  Section 84-31, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(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 render advisory opinions upon the request of any legislator, employee, or delegate to the constitutional convention, or person formerly holding [such] the 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, section 11-8, or section 11-316.  If no advisory opinion is rendered within [thirty] 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] the 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] the persons in the request for an advisory opinion;

     (3)  It shall initiate, receive, and consider charges concerning alleged violation of this chapter, initiate or make investigation, and hold hearings[;].  The commission and the subject of any investigation or charge may agree to resolve any alleged violation of this chapter at any time.  The resolution shall be in writing and shall be signed by three or more members of the commission and by the subject of any investigation or charge.  The resolution shall have the force and effect of a final decision and order issued after a contested case hearing and shall not be appealable;

     (4)  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.  Before the commission shall exercise any of the powers authorized in this section with respect to any investigation or hearings, it shall by formal resolution[,] supported by a vote of three or more members of the commission, define the nature and scope of its inquiry;

     (5)  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] to implement 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;

     (6)  It shall have jurisdiction for purposes of investigation and taking appropriate action on alleged violations of this chapter in all proceedings commenced within six years of an alleged violation of this chapter by a legislator or employee or 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] in this paragraph shall bar proceedings against a person who by fraud or other device, prevents discovery of a violation of this chapter;

     (7)  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, delegates to the constitutional convention, and employees on matters of ethics in government employment[; and].  It may issue guidance regarding the application of this chapter, provided that the guidance shall not have the force and effect of law;

     (8)  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[.]; and

     (9)  It may authorize its staff to provide confidential guidance to any individual as to whether the facts and circumstances of a particular case constitute or would constitute a violation under this chapter, section 11-8, or section 11-316; provided that nothing in this paragraph shall establish an attorney-client relationship between the person seeking advice and the commission or its staff.  Any written guidance rendered by commission staff advising that proposed conduct is allowable, until amended or revoked, shall be binding upon the commission in any subsequent charges concerning the individual who sought the guidance and acted in reliance on it in good faith, unless material facts were omitted or misstated by the persons in the request for guidance.

Nothing in this subsection shall prevent the commission or its staff from investigating alleged violations of this chapter."

     SECTION 7.  Section 84-39, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§84-39[]]  Administrative fines.  (a)  Where an administrative fine has not been established for a violation of a provision of this chapter, any person, including a legislator or employee, who violates a provision of this chapter shall be subject to an administrative fine imposed by the ethics commission that shall not exceed [$500] $1,000 for each violation.  All fines collected under this section shall be deposited in the general fund.

     (b)  No fine shall be assessed under this section unless:

     (1)  The commission convenes a hearing in accordance with section 84-31(c) and chapter 91[;] and

    [(2)  A] a decision has been rendered by the commission[.]; or

     (2)  The commission and respondent agree to resolve an alleged violation prior to completion of the contested case process and the resolution includes payment of an administrative fine or restitution, or both."

     SECTION 8.  Section 97-1, Hawaii Revised Statutes, is amended to read as follows:

     "§97-1  Definitions.  When used in this chapter:

    [(1)] "Administrative action" means the proposal, drafting, consideration, amendment, enactment, or defeat by any administrative agency of any rule, regulation, or other action governed by section 91-3.

    [(2)] "Administrative agency" means a commission, board, agency, or other body, or official in the state government that is not a part of the legislative or judicial branch.

    [(3)] "Contribution" includes a gift, subscription, forgiveness of a loan, advance, or deposit of money, or anything of value and includes a contract, promise, or agreement, whether or not enforceable, to make a contribution.

    [(4)] "Expenditure" includes a payment, distribution, forgiveness of a loan, advance, deposit, or gift of money, or anything of value and includes a contract, promise, or agreement, whether or not enforceable, to make an expenditure.  "Expenditure" also includes compensation or other consideration paid to a lobbyist for the performance of lobbying services.  ["Expenditure" excludes the expenses of preparing written testimony and exhibits for a hearing before the legislature or an administrative agency.]

    [(5)] "Legislative action" means the sponsorship, drafting, introduction, consideration, modification, enactment, or defeat of any bill, resolution, amendment, report, nomination, appointment, or any other matter pending or proposed in the legislature.

    [(6)] "Lobbyist" means any individual who [for]:

     (1)  Receives or expects to receive, either by employment or contract, more than $1,000 in monetary or in-kind compensation in any calendar year for engaging in lobbying, either personally or through his or her agents; or

     (2)  For pay or other consideration:

         (A)  [engages] Engages in lobbying in excess of five hours in any month of any reporting period described in section 97-3; [or spends]

         (B)  Engages in lobbying in excess of ten hours during any calendar year;

         (C)  Engages in lobbying on three or more bills, resolutions, or both, during any legislative session; or

         (D)  Spends more than [$750] $1,000 of the person's or any other person's money lobbying during any reporting period described in section 97-3.

    [(7)] "Lobbying" means communicating directly or through an agent, or soliciting others to communicate, with any official in the legislative or executive branch, for the purpose of attempting to influence legislative or administrative action or a ballot issue.  "Lobbying" shall not include the preparation and submission of a grant application pursuant to chapter 42F by a representative of a nonprofit organization, but shall include any communication with any official in the legislative or executive branch for the purpose of attempting to influence action on any existing or future grant application.

    [(8)] "Person" means a corporation, individual, union, association, firm, sole proprietorship, partnership, committee, club, or any other organization or a representative of a group of persons acting in concert."

     SECTION 9.  Section 97-2, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  A lobbyist shall file a notice of termination within ten days after the lobbyist ceases the activity which required the lobbyist's registration[.]; provided that if the lobbyist fails to file a notice of termination, the person who employed or contracted for the services of the lobbyist may file the notice of termination.  The lobbyist and the [employer] person who employed or contracted for the services of the lobbyist shall remain subject, however, to the requirements of chapter 97 for the period during which the registration was effective."

     SECTION 10.  Section 97-3, Hawaii Revised Statutes, is amended by amending subsections (a), (b), and (c) to read as follows:

     "(a)  The following persons shall file a statement of expenditures with the state ethics commission on March 31, May 31, and January 31 of each year and within thirty days after adjournment sine die of any special session of the legislature:

     (1)  Each lobbyist;

     (2)  Each person who spends [$750] $1,000 or more of the person's or any other person's money in any [six-month period] reporting period described in this section for the purpose of attempting to influence legislative or administrative action or a ballot issue by communicating or urging others to communicate with public officials; provided that any amounts expended for travel costs, including incidental meals and lodging, shall not be included in the tallying of the [$750;] $1,000 and need not be reported; and provided further that any amounts expended by a nonprofit organization to prepare and submit a grant application pursuant to chapter 42F shall likewise not be included in the tallying of the $1,000 and need not be reported; and

     (3)  Each person who employs or contracts for the services of one or more lobbyists, whether independently or jointly with other persons.  If the person is an industry, trade, or professional association, only the association is the employer of the lobbyist.

     (b)  The March 31 report shall cover the period from January 1 through the last day of February.  The May 31 report shall cover the period from March 1 through April 30.  The January 31 report shall cover the period from May 1 through December 31 of the previous year.  The report to be filed within thirty days after adjournment sine die of a special session of the legislature shall:

     (1)  [cover] Cover the period from May 1 through adjournment sine die of that special session [and shall apply];

     (2)  Be filed only by persons listed in subsection (a) who engage in lobbying activities, or who make expenditures, for the purpose of attempting to influence legislative action considered during a special session; and

     (3)  Apply to and include only those expenditures and contributions that relate to legislative action considered during that special session[.];

provided that those expenditures and contributions included in the report need not be included by the person filing the report in any subsequent statement of expenditures.

     (c)  The statement shall contain the following information:

     (1)  The name and address of each person with respect to whom expenditures for the purpose of lobbying in the total sum of $25 or more per day was made by the person filing the statement during the statement period and the amount or value of [such] the expenditure;

     (2)  The name and address of each person with respect to whom expenditures for the purpose of lobbying in the aggregate of $150 or more was made by the person filing the statement during the statement period and the amount or value of [such] the expenditures;

     (3)  The total sum or value of all expenditures for the purpose of lobbying made by the person filing the statement during the statement period [in excess of $750 during the statement period]; provided that the sum or value of each expenditure is itemized in the following categories, as applicable:

         (A)  Preparation and distribution of lobbying materials;

         (B)  Media advertising;

         (C)  Compensation paid to lobbyists;

         (D)  Fees paid [to consultants or] for consultant services;

         (E)  Entertainment and events;

         (F)  Receptions, meals, food, and beverages;

         (G)  Gifts;

         (H)  Loans; [and]

         (I)  Interstate transportation, including incidental meals and lodging; and

         (J)  Other disbursements;

     (4)  The name and address of each person making contributions to the person filing the statement for the purpose of lobbying in the total sum of $25 or more during the statement period and the amount or value of [such] the contributions; and

     (5)  The subject area of the legislative and administrative action which was supported or opposed by the person filing the statement during the statement period."

     SECTION 11.  Section 97-4.5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§97-4.5[]]  Lobbyist [list.] registration statements.  [As soon as is feasible after the commencement of each regular session of the legislature, the state ethics commission shall publish a list of registered lobbyists, the names of the persons whom they represent, and other pertinent information but shall not include in such list the addresses of the lobbyists.  The list shall be supplemented from time to time as may be necessary.] All lobbyist registration statements shall be posted on the ethics commission's website within a reasonable time after filing, and may be removed from the website after four years."

     SECTION 12.  Section 97-6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The state ethics commission shall administer and implement this chapter, and shall have the following powers and duties:

     (1)  Initiate, receive, and consider charges concerning alleged violations of this chapter, and investigate or cause to be investigated on a confidential basis, the activities of any person to determine whether the person is in compliance with this chapter[;].  The commission and the subject of any investigation or charge may agree to resolve any alleged violation of this chapter at any time.  The resolution shall be in writing and shall be signed by three or more members of the commission and by the subject of any investigation or charge.  The resolution shall have the force and effect of a final decision and order issued after a contested case hearing and shall not be appealable;

     (2)  Prescribe forms for the statements and reports required by sections 97-2 and 97-3 and establish orderly procedures for implementing the requirements of those provisions;

     (3)  Render advisory opinions upon the request of any person subject to this chapter.  If no advisory opinion is rendered within [thirty] 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 this chapter.  The opinion rendered or deemed rendered, until amended or revoked, shall be binding on the commission in any subsequent charges concerning the person subject to this chapter who sought the opinion and acted in reliance on it in good faith, unless material facts were omitted or misstated by the person in the request for an advisory opinion;

     (4)  Issue subpoenas, administer oaths, and exercise those powers conferred upon the commission by section 92-16;

     (5)  Adopt rules, not inconsistent with this chapter, as in the judgment of the commission seem appropriate for the carrying out of this chapter and for the efficient administration of this chapter, 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; [and]

     (6)  Have jurisdiction for purposes of investigation and taking appropriate action on alleged violations of this chapter in all proceedings commenced within three years of an alleged violation of this chapter.  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 shall bar proceedings against a person who by fraud or other device prevents discovery of a violation of this chapter[.];

     (7)  Issue guidance regarding the application of this chapter, provided that the guidance shall not have the force and effect of law;

     (8)  Authorize its staff to provide confidential guidance to any individual as to whether the facts and circumstances of a particular case constitute or will constitute a violation under this chapter; provided that nothing in this paragraph shall establish an attorney-client relationship between the person seeking advice and the commission or its staff.  Any written guidance rendered by commission staff advising that proposed conduct is allowable, until amended or revoked, shall be binding upon the commission in any subsequent charges concerning the individual who sought the guidance and acted in reliance on it in good faith, unless material facts were omitted or misstated by the persons in the request for guidance.

Nothing in this subsection shall prevent the commission or its staff from investigating alleged violations of this chapter."

     SECTION 13.  Section 97-7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Any person who:

     (1)  [Wilfully fails] Fails to file any statement or report required by this chapter;

     (2)  [Wilfully files] Files a statement or report containing false information or material omission of any fact;

     (3)  Engages in activities prohibited by section 97-5; or

     (4)  Fails to provide information required by section 97-2 or 97-3;

shall be subject to an administrative fine imposed by the commission that shall not exceed [$500] $1,000 for each violation of this chapter.  All fines collected under this section shall be deposited into the general fund."

     SECTION 14.  The state ethics commission, in its discretion, may make any changes that it deems necessary to internal procedures or forms to aid in the implementation of this Act.

     SECTION 15.  If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 16.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 17.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 18.  This Act shall take effect upon its approval.

 

INTRODUCED BY:	_____________________________
	By Request

 

 

Report Title:

State Ethics Commission Package; Government; Ethics; Lobbyists

 

Description:

Clarifies the powers and duties of the state ethics commission; increases fines for ethics violations.  Restores protection for legislators when carrying out a legislative function.  Clarifies what is an expenditure for lobbyists and what is considered lobbying.  Amends requirements for filing statements of expenditures.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.