Report Title:

State Positions; Use of Private Funds Prohibited; Exception

Description:

Prohibits state agencies from using private funds, in whole or in part, to fund a state position or provide financial benefits to the person filling the position; provides exception for salaries paid from competitive grant awards or for temporary employment of not more than 120 days in one calendar year.

THE SENATE

S.B. NO.

1635

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO public officers and employees.

 

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

SECTION 1. Section 84-14, Hawaii Revised Statutes, is amended to read as follows:

"84-14 Conflicts of interests. (a) No employee shall take any official action directly affecting:

(1) A business or other undertaking in which he has a substantial financial interest; or

(2) A private undertaking in which he is engaged as legal counsel, advisor, consultant, representative, or other agency capacity.

A department head who is unable to disqualify himself on any matter described in items (1) and (2) above will not be in violation of this subsection if he has complied with the disclosure requirements of section 84-17; and

A person whose position on a board, commission, or committee is mandated by statute, resolution, or executive order to have particular qualifications shall only be prohibited from taking official action that directly and specifically affects a business or undertaking in which he has a substantial financial interest; provided that the substantial financial interest is related to the member's particular qualifications.

(b) No employee shall acquire financial interests in any business or other undertaking which he has reason to believe may be directly involved in official action to be taken by him.

(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 he has participated or will participate as a legislator or employee, nor shall he 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 he is an employee or legislator.

(e) No employee shall assist any person or business or act in a representative capacity before a state or county agency for a fee or other consideration on any bill, contract, claim, or other transaction or proposal involving official action by the agency if he has official authority over that state or county agency unless he has complied with the disclosure requirements of section 84-17.

(f) No state agency shall use or offer to use any moneys from any business or any group or association of businesses to:

(1) Fund any position of the State, in whole or in part;

(2) Supplement the salary of a position of the State such that it exceeds the salary set by law or, if not set by law, exceeds the salary paid to other officers or employees with comparable duties and responsibilities; or

(3) Provide a financial benefit to the person filling the position,

unless specifically authorized by law.

This subsection shall not apply to positions of the University of Hawaii that are allowed under their employment contract terms to receive income from intellectual property rights, royalties, honorariums, or other similar consideration, and shall not be construed to preclude a loan to a state agency of an employee by a business or group or association of businesses, on a temporary basis for a period not to exceed one hundred twenty days in any calendar year.

For purposes of this subsection:

"Financial benefit" includes loans, travel, entertainment, hospitality, thing, promise, or any gift or consideration in any other form.

"Position of the State" includes any position whether existing or newly created, temporary or permanent, or full-time or part-time, in which the person is authorized to act in an official capacity on behalf of a state agency."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________