HB627

SECTION 1. The legislature finds that the house of representatives adopted House Resolution No. 9 (2022) to establish the commission to improves standards of conduct. The resolution requests the commission to ensure state laws and rules relating to the standards of conduct of public officers and employees contain clear standards, enforcement, and penalties and provide recommendations to increase awareness of, compliance with, and deterrent effects of the code of ethics, lobbying laws, campaign finance laws, and other relevant laws and rules.

Pursuant to House Resolution No. 9, the commission to improve standards of conduct regularly convened throughout 2022 to diligently review, discuss, and consider the issues presented, submitted and interim report to the house of representatives outlining areas of immediate and long-term focus, then continued its work with input from the public and invited individuals and agencies to issue a final report with various recommendations and accompanying proposed legislation.

The legislature also finds that the strength and stability of our democratic government rely upon the public's trust in government institutions, including the expectations that officers act ethically with prudence, integrity, and sound judgement. Therefore, an essential goal of the commission was to provide recommendations that would help restore public trust in state government and increase the level of transparency in its operations and accountability of individuals.

The purpose of this Act is to implement improved standards of ethical conduct that will bolster integrity and transparency in the offices of elected officials.

SECTION 2. Chapter 710, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§710- False, fictitious, or fraudulent claims. (1) A person commits the offense of making a false, fictious, or fraudulent claim against the State or a county if the person makes or presents to any agent of the State, any of the counties, or any department or agency thereof, any claim upon or against the State, a county, or any department or agency thereof, that the person knows to be false, fictitious, or fraudulent.

(2) Application of this section shall be based on title 18 United States Code section 287 and any relevant federal case law and precedent.

(3) Any person charged under this section shall not be eligible for a deferred acceptance of guilty plea or nolo contendere plea under chapter 853.

(4) Making a false, fictitious, or fraudulent claim against the State or a county is a class C felony."

SECTION 3. Section 11-412, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) A person who is convicted under this section, or for making a false, fictitious, or fraudulent claim under section 710- , shall be disqualified from holding elective public office for a period of ten years from the date of conviction."

SECTION 4. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"CHAPTER

OFFICE OF THE PUBLIC ADVOCATE

PART I. GENERAL PROVISIONS

§ -1 Definitions. As used in this chapter, unless the context otherwise requires:

"Office" means the office of the public advocate 2 established pursuant to section -2.

"Public advocate" means the head of the office.

§ -2 Office of the public advocate; establishment. (a) There is established within the department of the attorney general for administrative purposes only the office of the public advocate.

(b) The office shall be headed by the public advocate, who shall be nominated and, by and with the advice and consent of the senate, appointed by the governor; provided that the term of the public advocate shall be coterminous with the term of the governor.

§ -3 Staff. The public advocate shall hire staff necessary to carry out the purposes of this chapter. The public advocate and employees of the office shall be exempt from chapter 76 and shall not be considered civil service employees but shall be entitled to any employee benefit plan normally inuring to civil service employees.

§ -4 Judicial review; immunity. No proceeding or decision of the public advocate may be reviewed in any court, unless it contravenes the provisions of this chapter. The public advocate has the same immunities from civil and criminal liability as a judge of this State. The public advocate and the public advocate's staff shall not testify in any court with respect to matters coming to their attention in the exercise or purported exercise of their official duties except as may be necessary to enforce the provisions of this chapter.

§ -5 Penalty for obstruction. A person who willfully hinders the lawful actions of the public advocate or the public advocate's staff, or willfully refuses to comply with their lawful demands, shall be fined no more than $1,000.

PART II. RIGHTS OF THE PUBLIC RELATING TO THE LEGISLATURE

§ -11 Rights. All persons of the public shall have the following rights:

(1) The right to expect that the person's elected state representative or state senator will be treated with fairness, equity, dignity, respect, and inclusion, regardless of seniority, faction, or party;

(2) The right to be treated with fairness, equity, dignity, respect, and honesty during public hearings, regardless of their lack of power, status, wealth, or other excuses for unequal treatment. This paragraph, among other things, shall be construed to prohibit retaliation, including the elimination of a specific position from the budget, for any good faith conduct at a public hearing;

(3) The right to provide oral testimony at any public hearing;

(4) The right to publicly inspect written testimony no later than twenty-four hours after the written testimony is submitted;

(5) The right to expect that all members have access to and sufficient time to review all bill drafts and proposed amendments before formally voting on a measure in committee and on the floor;

(6) The right to expect that the original content of a bill is not suddenly and substantially changed without a public hearing on the new content;

(7) The right to expect that legislators have sufficient opportunity for open and honest debate on the merits of a bill and to vote on such merits, rather than burdening the legislative process with multiple referrals on the bill that would effectively inhibit the opportunity for such debate;

(8) The right to expect that subject matter committees pass bills without deliberate defects, including defective dates, and with recommended appropriation amounts;

(9) The right to expect that standing committees with primary jurisdiction over fiscal matters are not referred bills solely concerning nonfiscal matters;

(10) The right to expect that no bill should die in a conference committee due to the absence of a conference chair;

(11) The right to publicly inspect all official executive communications, such as budgetary information, submitted to the legislature. For purposes of fulfilling this obligation, the respective legislative chamber shall post all official executive communications on the capitol website within a reasonable period of time;

(12) The right to open and transparent decision-making, including the right to hear the rationale for any decision made by a committee or committee chairperson, such as the deferral or amendment of a bill, in a public meeting; and

(13) The right to easily inspect drafts of bills submitted to legislators for introduction or amendment, including the right to know the identity of the person who provided the draft if that person is a member of the public or lobbyist.

§ -13 Procedures; investigation of complaints. (a) The public advocate shall establish procedures for receiving and processing complaints alleging a violation of a right enumerated under section -11, conducting investigations, and reporting the public advocate's findings. However, the public advocate may not levy fees for the submission or investigation of complaints.

(b) The public advocate shall investigate any complaint alleging a violation of a right enumerated under section -11. In an investigation, the public advocate may make inquiries and obtain information as the public advocate deems appropriate, consult with an appropriate agency with subject matter expertise, and hold private hearings.

(c) The public advocate is required to maintain secrecy in respect to all matters and the identities of the complainants or witnesses coming before the public advocate, except so far as disclosures may be necessary to enable the public advocate to carry out the public advocate's duties and powers and to support the public advocate's recommendations.

§ -14 Powers. Subject to the privileges that witnesses have in the courts of this State, the public advocate may:

(1) Compel at a specified time and place, by subpoena, the appearance and sworn testimony of any person who the public advocate reasonably believes may be able to give information relating to a matter under investigation; and

(2) Compel any person to produce documents, papers, or objects that the public advocate reasonably believes may relate to a matter under investigation.

The public advocate may bring suit in an appropriate state court to enforce these powers.

§ -15 Consultation. Before giving any opinion or recommendation that is critical of a person and except as provided in section -16(c), the public advocate shall consult with that person.

§ -16 Procedure after investigation. (a) After an investigation, the public advocate shall report the public advocate's opinion and recommendations to the presiding officer of the appropriate chamber of the legislature and the complainant.

(b) After a reasonable time has elapsed, the public advocate may present the public advocate's opinion and recommendations to the public. The public advocate shall include with this opinion any reply.

(c) If the public advocate has a reasonable basis to believe that there may be a breach of duty or misconduct by any legislator or employee of the legislature, the public advocate may refer the matter to the appropriate authorities without notice to that person."

SECTION 5. Section 92-10, Hawaii Revised Statutes, is amended to read as follows:

"§92-10 Legislative branch; legislatively appointed bodies; applicability. (a) Notwithstanding any provisions contained in this chapter to the contrary, open meeting requirements, and provisions regarding enforcement, penalties and sanctions, as they are to relate to the state legislature or to any of its members shall be such as shall be from time to time prescribed by the respective rules and procedures of the senate and the house of representatives, which rules and procedures shall take precedence over this part. Similarly, provisions relating to notice, agenda and minutes of meetings, and such other requirements as may be necessary, shall also be governed by the respective rules and procedures of the senate and the house of representatives.

(b) Except as provided in this subsection, this part and part IV shall apply to each legislatively appointed body and shall take precedence over any rules and procedures of the senate or house of representatives that govern the same content of this part and part IV as they relate to meetings and public hearings of legislatively appointed bodies. Any bill or resolution establishing a legislatively appointed body may exempt that body from the requirements of this part and part IV by inclusion in its final form of a specific finding or declaration that articulates the rationale for the exemption.

(c) The senate and the house of representatives shall each hold or jointly hold a public hearing or briefing on a biennial basis to solicit professional and public opinions on how the rules and procedures established by each chamber can better effectuate the intent of this chapter. These hearings or briefings shall be held in accordance with this part and part IV.

(d) For the purposes of this section, "legislatively appointed body" means a task force, working group, special committee, or select committee that has a membership consisting entirely of state legislators who were appointed by one or both houses of the legislature or one or both of the presiding officers of each house of the legislature."

SECTION 6. Section 92-21, Hawaii Revised Statutes, is amended to read as follows:

"§92-21 Copies of records; other costs and fees. Except as otherwise provided by law, a copy of any government record, including any map, plan, diagram, photograph, photostat, or geographic information system digital data file, [~~which~~] that is open to the inspection of the public, shall be furnished to any person applying for the same by the public officer having charge or control thereof upon the payment of the reasonable cost of reproducing [~~such~~] the copy. Except as provided in section 91-2.5, the cost of reproducing any government record, except geographic information system digital data, photographs, maps, audio recordings, digital or electronic records, and other types 7 of physical records, shall not [~~be less than 5~~] exceed 25 cents per page, sheet, or fraction thereof. Reproduction costs shall not be charged for producing documents provided to requesters in an electronic format; provided that the agency maintains those documents in an electronic format; provided further that requesters shall be charged for the agency's provision of documents requested in an electronic format that are not maintained by the agency in an electronic format and must be manually faxed or converted into an electronic format. The cost of reproducing geographic information system digital data, photographs, maps, audio recordings, digital or electronic records, and other types of physical records shall be in accordance with rules adopted by the office of information practices that are applicable to every agency having charge or control of that data. [~~Such~~] The reproduction cost shall [include but shall not be limited to labor cost for search and actual time for reproducing, material cost, including electricity cost, equipment cost, including rental cost, cost for certification, and other related costs.] represent the reasonable direct cost of making the copies and be limited to the salary of the operator of the reproduction machinery as well as the cost of the machinery. All fees shall be paid in by the public officer receiving or collecting the same to the state director of finance, the county director of finance, or [to] the agency or department by which the officer is employed, as government realizations; provided that fees collected by the public utilities commission pursuant to this section shall be deposited in the public utilities commission special fund established under section 269-33."

SECTION 7. Section 92F-42, Hawaii Revised Statutes, is amended to read as follows:

"§92F-42 Powers and duties of the office of information practices. The director of the office of information practices:

(1) Shall, upon request, review and rule on an agency denial of access to information or records, or an agency's granting of access; provided that any review by the office of information practices shall not be a contested case under chapter 91 and shall be optional and without prejudice to rights of judicial enforcement available under this chapter;

(2) Upon request by an agency, shall provide and make public advisory guidelines, opinions, or other information concerning that agency's functions and responsibilities;

(3) Upon request by any person, may provide advisory opinions or other information regarding that person's rights and the functions and responsibilities of agencies under this chapter;

(4) May conduct inquiries regarding compliance by an agency and investigate possible violations by any agency;

(5) May examine the records of any agency for the purpose of paragraphs (4) and (18) and seek to enforce that power in the courts of this State;

(6) May recommend disciplinary action to appropriate officers of an agency;

(7) Shall report annually to the governor and the state legislature on the activities and findings of the office of information practices, including recommendations for legislative changes;

(8) Shall receive complaints from and actively solicit the comments of the public regarding the implementation of this chapter;

(9) Shall review the official acts, records, policies, and procedures of each agency;

(10) Shall assist agencies in complying with the provisions 11 of this chapter;

(11) Shall inform the public of the following rights of an individual and the procedures for exercising them:

(A) The right of access to records pertaining to the individual;

(B) The right to obtain a copy of records pertaining to the individual;

(D) The right to be informed of the uses and disclosures of records pertaining to the individual;

(E) The right to correct or amend records pertaining to the individual; and

(F) The individual's right to place a statement in a record pertaining to that individual;

(12) Shall adopt rules that set forth an administrative appeals structure [~~which~~] that provides for:

(A) Agency procedures for processing records requests;

(B) A direct appeal from the division maintaining the record; and

(13) Shall adopt rules that set forth the fees and other charges that may be imposed for searching, reviewing, or segregating disclosable records[~~, as well as to provide for a waiver of fees when the public interest would be served;~~]. The rules shall:

(A) Set forth fees not exceeding $5 per fifteen minutes or fraction thereof for the search for the record;

(B) Set forth fees not exceeding $7.50 per fifteen minutes or fraction thereof for the review and segregation of the record; and

(C) Provide for a waiver of fees when the public interest would be served by the record's disclosure; provided that the waiver shall require that the search for or review or segregation of records be provided at no charge to the requester if disclosure of the record is in the public interest because the disclosure is likely to contribute significantly to public understanding of the operations or activities of the government and is not primarily in the commercial interest;

(14) Shall adopt rules [~~which~~] that set forth uniform standards for the records collection practices of agencies;

(15) Shall adopt rules that set forth uniform standards for disclosure of records for research purposes;

(16) Shall have standing to appear in cases where the provisions of this chapter or part I of chapter 92 are called into question;

(17) Shall adopt, amend, or repeal rules pursuant to chapter 91 necessary for the purposes of this chapter; and

(18) Shall take action to oversee compliance with part I of chapter 92 by all state and county boards including:

(A) Receiving and resolving complaints;

(B) Advising all government boards and the public about compliance with chapter 92; and

SECTION 8. Section 84-17, Hawaii Revised Statutes, is amended to read as follows:

"§84-17 Requirements of disclosure. (a) For the purposes of this section, "disclosure period" refers to the period from January 1 of the preceding calendar year to the time of the filing of the employee's or legislator's disclosure of financial interests.

(b) The disclosure of financial interest required by this section shall be filed:

(1) By any person enumerated in subsection (c), except a member of the legislature, between January 1 and May 31 of each year;

(2) By a member of the legislature between January 1 and January 31 of each year;

(3) Within thirty days of a person's election or appointment to a state position enumerated in subsection (c); or

(4) Within thirty days of separation from a state position if a prior financial disclosure statement for the position was not filed within the one hundred eighty days preceding the date of separation;

provided that candidates for state elective offices or the constitutional convention shall file the required statements no later than twenty days prior to the date of the primary election for state offices or the election of delegates to the constitutional convention.

(1) The governor, the lieutenant governor, the members of the legislature, and delegates to the constitutional convention; provided that delegates to the constitutional convention shall only be required to file initial disclosures;

(2) The directors and their deputies, the division chiefs, the executive directors and the executive secretaries and their deputies, the purchasing agents and the fiscal officers, regardless of the titles by which the foregoing persons are designated, of every state agency and department;

(3) The permanent employees of the legislature and its service agencies, other than persons employed in clerical, secretarial, or similar positions;

(4) The administrative director of the State, and the assistants in the office of the governor and the lieutenant governor, other than persons employed in clerical, secretarial, or similar positions;

(5) The hearings officers of every state agency and department;

(6) The president, the vice presidents, assistant vice presidents, the chancellors, and the provosts of the University of Hawaii and its community colleges;

(7) The superintendent, the deputy superintendent, the assistant superintendents, the complex area superintendents, the state librarian, and the deputy state librarian of the department of education;

(8) The administrative director and the deputy director of the courts;

(9) The members of every state board or commission whose original terms of office are for periods exceeding one year and whose functions are not solely advisory;

(10) Candidates for state elective offices, including candidates for election to the constitutional convention, provided that candidates shall only be required to file initial disclosures;

(11) The administrator and assistant administrator of the office of Hawaiian affairs;

(12) The Hawaii unmanned aerial systems test site chief operating officer[[];[]] and

(13) The members of the school facilities board appointed by the governor.

(d) The financial disclosure statements of the following persons shall be public records and available for inspection and duplication:

(1) The governor, the lieutenant governor, the members of the legislature, candidates for and delegates to the constitutional convention, the trustees of the office of Hawaiian affairs, and candidates for state elective offices;

(2) The directors of the state departments and their deputies, regardless of the titles by which the foregoing persons are designated; provided that with respect to the department of the attorney general, the foregoing shall apply only to the attorney general and the first deputy attorney general;

(3) The administrative director of the State;

(4) The president, the vice presidents, the assistant vice presidents, the chancellors, members of the board of regents, and the provosts of the University of Hawaii;

(5) The members of the board of education and the superintendent, the deputy superintendent, the state librarian, and the deputy state librarian of the department of education;

(6) The administrative director and the deputy director of the courts;

(7) The administrator and the assistant administrator of the office of Hawaiian affairs; and

(8) The members of the following state boards, commissions, and agencies:

(A) The board of directors of the agribusiness development corporation established under section 163D-3;

(B) The board of agriculture established under section 26-16;

(D) The Hawaii community development authority established under section 206E-3;

(E) The Hawaiian homes commission established under the Hawaiian Homes Commission Act of 1920, as amended, and section 26-17;

(F) The board of directors of the Hawaii housing finance and development corporation established under section 201H-3;

(G) The board of land and natural resources established under section 171-4;

(H) The state land use commission established under section 205-1;

(I) The legacy land conservation commission established under section 173A-2.4;

(J) The natural area reserves system commission established under section 195-6;

(K) The board of directors of the natural energy laboratory of Hawaii authority established under section 227D-2;

(L) The board of directors of the Hawaii public housing authority established under section 356D-3;

(M) The public utilities commission established under section 269-2;

(N) The commission on water resource management established under section 174C-7; and

(O) The stadium authority established under section 109-1.

(e) The information on the financial disclosure statements shall be confidential, except as provided in subsection (d). The commission shall not release the contents of the disclosures except as may be permitted pursuant to this chapter. Any person who releases any confidential information shall be subject to section 84-31(c).

(f) Candidates for state elective offices, including candidates for election to the constitutional convention, shall only be required to disclose their own financial interests. The disclosures of financial interests of all other persons designated in subsection (c) shall state, in addition to the financial interests of the person disclosing, the financial interests of the person's spouse and dependent children. All disclosures shall include:

(1) The source and amount of all income of $1,000 or more received, for services rendered, by the person in the person's own name or by any other person for the person's use or benefit during the preceding calendar year and the nature of the services rendered; provided that required disclosure under this paragraph for the income source of the spouse or dependent child of a person subject to subsection (d) shall be limited to the name of the business or other qualifying source of income, and need not include the income source's address; provided further that other information that may be privileged by law or individual items of compensation that constitute a portion of the gross income of the business or profession from which the person derives income need not be disclosed;

(2) The amount and identity of every ownership or beneficial interest held during the disclosure period in any business having a value of $5,000 or more or equal to ten per cent of the ownership of the business and, if the interest was transferred during the disclosure period, the date of the transfer; provided that an interest in the form of an account in a federal or state regulated financial institution, an interest in the form of a policy in a mutual insurance company, or individual items in a mutual fund or a blind trust, if the mutual fund or blind trust has been disclosed pursuant to this paragraph, need not be disclosed;

(3) Every officership, directorship, trusteeship, or other fiduciary relationship held in a business during the disclosure period, the term of office and the annual compensation;

(4) The name of each creditor to whom the value of $3,000 or more was owed during the disclosure period and the original amount and amount outstanding; provided that debts arising out of retail installment transactions for the purchase of consumer goods need not be disclosed;

(5) The street address and, if available, the tax map key number, and the value of any real property in which the person holds an interest whose value is $10,000 or more, and, if the interest was transferred or obtained during the disclosure period, a statement of the amount and nature of the consideration received or paid in exchange for such interest, and the name of the person furnishing or receiving the consideration; provided that disclosure shall not be required of the street address and tax map key number of the person's residence;

(6) The names of clients assisted or represented before state agencies, except in ministerial matters, for a fee or compensation during the disclosure period and the names of the state agencies involved; and

(7) The amount and identity of every creditor interest in an insolvent business held during the disclosure period having a value of $5,000 or more.

(g) In addition to the disclosures required under subsection (f), each member of the legislature shall also disclose the name of any person that is subject to section 97-3 and that is:

(1) A business partner of the member;

(2) An employer of the member;

(3) An officer or director of the member's employer; or

(4) A client of the member, member's partner, or member's employer, where the client provided at least $5,000 of income during the preceding calendar year.

As used in this subsection:

"Member" means a member of the legislature.

"Member's partner" means a member's spouse under chapter 572, civil union partner under chapter 572B, or reciprocal beneficiary under chapter 572C.

[~~(g)~~] (h) Where an amount is required to be reported, the person disclosing may indicate whether the amount is at least $1,000 but less than $10,000; at least $10,000 but less than $25,000; at least $25,000 but less than $50,000; at least $50,000 but less than $100,000; at least $100,000 but less than $150,000; at least $150,000 but less than $250,000; at least $250,000 but less than $500,000; at least $500,000 but less than $750,000; at least $750,000 but less than $1,000,000; or $1,000,000 or more. An amount of stock may be reported by number of shares.

[~~(h)~~] (i) The state ethics commission shall provide a 20 method for filing financial disclosure statements. The commission may require that financial disclosure statements be filed electronically.

[~~(i)~~] (j) 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 $75. The state ethics commission, upon the expiration of the time allowed for filing, may post on its website for public inspection a list of all persons who have failed to file financial disclosure statements. The state ethics commission shall notify a person, by in-person service, electronic mail to the person's state electronic mail address, or first class mail, of the failure to file, and the disclosure of financial interests shall be submitted to the state ethics 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 state ethics commission may take under this chapter for violations of the state ethics code. The state ethics commission may waive any administrative fines assessed under this subsection for good cause shown.

[~~(j)~~] (k) 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 state ethics commission of the name of the candidate for state office and the date on which the person filed the nomination paper. The state 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 $50, which shall be collected by the state ethics commission and deposited into the general fund. The state 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 state 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 9. Section 11-322, Hawaii Revised Statutes, is amended to read as follows:

"§11-322 Organizational report, candidate committee. (a) The candidate committee organizational report shall include:

(1) The committee's name and address, including web page address, if any;

(2) The candidate's name, address, and telephone number;

(3) The office being sought by the candidate, district, and party affiliation;

(4) The chairperson's name and address and, if appointed, the deputy chairperson's name and address;

(5) The treasurer's name and address and, if appointed, all deputy treasurers' names and addresses;

(6) The name and address of each depository institution in which the committee will maintain any of its accounts and the applicable account number; and

(7) A certification by the candidate and treasurer of the statements in the organizational report.

(b) Any change in information previously reported in the organizational report shall be electronically filed with the commission within ten days of the change being brought to the attention of the committee chairperson or treasurer.

(1) File the organizational report; or

(2) Correct a report within two weeks from a notice to correct provided by the commission."

SECTION 10. Section 11-323, Hawaii Revised Statutes, is amended to read as follows:

"§11-323 Organizational report, noncandidate committee. (a) The noncandidate committee organizational report shall include:

(1) The committee's name, which shall incorporate the full name of the sponsoring entity, if any. An acronym or abbreviation may be used in other communications if the acronym or abbreviation is commonly known or clearly recognized by the general public. The committee's name shall not include the name of a candidate;

(2) The committee's address, including web page address, if any;

(3) The area, scope, or jurisdiction of the committee;

(4) The name and address of the committee's sponsoring entity. If the committee does not have a sponsoring entity, the committee shall specify the trade, profession, or primary interest of contributors to the committee;

(5) The name, address, telephone number, occupation, and principal place of business of the chairperson;

(6) The name, address, telephone number, occupation, and principal place of business of the treasurer and any other officers;

(7) An indication as to whether the committee was formed to support or oppose a specific ballot question or candidate and, if so, a brief description of the question or the name of the candidate;

(8) An indication as to whether the committee is a political party committee;

(9) The name, address, telephone number, occupation, and principal place of business of the custodian of the books and accounts;

(10) The name and address of the depository institution in which the committee will maintain its campaign account and each applicable account number; and

(11) A certification by the chairperson and treasurer of the statements in the organizational report.

(1) File the organizational report; or

(2) Correct a report within two weeks from a notice to correct provided by the commission."

SECTION 11. Section 97-3, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(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 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 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; 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;

(D) Fees paid to consultants for services;

(E) Entertainment and events;

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

(G) Gifts;

(H) Loans;

(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 the contributions; and

(5) The [~~subject area~~] identity, by bill number, resolution number, and if applicable, budget cost or program identification number, or other similar identifier, of the legislative [~~and~~] or administrative action that was commented on, supported by, or opposed by the person filing the statement during the statement period."

SECTION 12. Chapter 84, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§84- Nepotism; prohibition. (a) Beginning July 1, 2023, no legislator or employee shall:

(1) Appoint, hire, or promote a relative or household member to, or demote, discharge, or terminate a relative or household member from; or

(2) Participate in an interview or discussion regarding the appointment, hiring, or promotion of a relative or household member to, or the demotion, discharge, or termination of a relative or household member from,

a paid position in the legislator's or employee's employing agency; provided that this subsection shall not prohibit a legislator or employee from performing ministerial acts that may impact the relative or household member if those acts are a part of the normal job functions of the legislator or employee.

(b) Beginning July 1, 2023, no legislator or employee shall supervise a relative or household member unless:

(1) The legislator or employee has a physical impairment requiring the employment of a particular relative or household member; provided that the legislator or employee discloses the prospective employment to the state ethics commission before the appointment or hire is made; or

(2) The legislator or employee disqualifies the legislator's or employee's self from taking any official action directly affecting the relative or household member.

(c) No legislator or employee shall award a contract to or otherwise take official action on a contract with a business if the legislator or employee knows or reasonably should know that the legislator's or employee's relative or household member is an executive officer of or holds a substantial ownership interest in that business.

(d) Notwithstanding the prohibitions in this section, if an employee who is a supervisor or executive director is unable to waive or disengage from completing their official duties or from taking official action and is legally required to take action that directly impacts a relative or household member receiving an award or other official action on a contract described in subsection (c), the employee shall not be in violation of this section if the employee:

(1) Has complied with the disclosure requirements of section 84-17; and

(2) Posts a notice of intent to award the contract and files a copy of the notice with the state ethics commission at least five days before awarding the contract. If the posting and filing of the award in advance is otherwise prohibited by law, notice shall be posted and filed as soon as practicable. Every notice of intent shall describe the employee's relationship with the relative or household member, the relative or household member's relationship with the entity receiving the contract, action taken and to be taken affecting the relative or household member's business, and the dollar value of the contract.

(e) Upon application, the state ethics commission may grant an exception to a legislator, employee, or agency that is unable to comply with this section for good cause, including a demonstrated lack of qualified personnel or applicants.

(f) Any legislator or employee who knowingly violates this section shall be subject to the administrative fines set forth in section 84-39. Any favorable action obtained by a relative or household member of a legislator or employee in violation of this section is voidable in accordance with sections 84-16 and 84-19.

(g) This section shall not affect the applicability of section 84-13 or 84-14.

(h) This section shall not prohibit a state agency from appointing, hiring, promoting, discharging, firing, or demoting a relative or household member of a legislator or employee employed by the agency.

(i) For purposes of this section:

"Household member" means an individual who resides in the same dwelling unit as the legislator or employee.

"Relative" means the legislator's or employee's parent, grandparent, stepparent, child, grandchild, stepchild, brother, sister, half-brother, half-sister, stepbrother, stepsister, uncle, aunt, first cousin, nephew, niece, spouse, spouse's parent, son-in-law, daughter-in-law, brother-in-law, or sister in-law."

SECTION 13. Section 11-342, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) As used in this section:

"Elected official" means an individual who currently holds an elected state or county office, including the governor, lieutenant governor, state senator, state representative, trustee of the office of Hawaiian affairs, county mayor, county 5 council member, county prosecuting attorney, and any individual appointed to serve in any of the aforementioned offices.

"Fundraiser" means any function held for the benefit of a candidate, candidate committee, or noncandidate committee that is intended or designed, directly or indirectly, to raise contributions for which [~~the~~] any price is charged or [~~suggested~~] any contribution is suggested for attending the function [~~is more than $25 per person~~].

"Fundraiser event" means any function held for the benefit of an elected official that is intended or designed, directly or indirectly, to raise contributions for which any price is charged or any contribution is suggested for attending the function."

SECTION 14. Section 11-410, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (b) to read:

"(b) Any order for the assessment of an administrative fine shall not be issued against a person without providing the person written notice and an opportunity to be heard at a hearing conducted under chapter 91. A person may waive these rights by written stipulation or consent[.]; provided that in the absence of waiver by written stipulation or consent these rights shall be deemed waived if the order is a preliminary determination of probable cause rendered during a chapter 92 meeting pursuant to section 11-403 and the person fails to request a contested case hearing within twenty days of receipt of the preliminary determination, as provided in section 11- 405(b)."

2. By amending subsection (d) to read:

"(d) If the person to whom the commission's order is directed does not comply with the order, the first circuit court, upon application of the commission, shall issue an order requiring the person to comply with the commission's order. Failure to obey such a court order shall be punished as contempt. In addition to contempt proceedings, the commission may file the commission's order in the first circuit court to have the order confirmed as a judgment, which shall then have the same force and effect and shall be enforceable and collectible in the same manner as other judgments issued by the circuit courts; provided that there shall be no appeal from the judgment."

SECTION 15. Section 11-403, Hawaii Revised Statutes, is amended to read as follows:

"[[]§11-403[]] Notice of complaint; opportunity to explain or respond to complaint[.]; failure to explain or respond to complaint. (a) The commission shall give notice of receipt of the complaint and a copy of the complaint to the respondent.

(b) The respondent may explain or otherwise respond in writing to the complaint and explain or otherwise respond to the complaint at a meeting promptly noticed by the commission and conducted under chapter 92[.]l; provided that if the respondent fails to explain or otherwise respond to the complaint, the commission may treat the failure to respond or explain as a presumption that the violation has occurred."

SECTION 16. Chapter 97, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§97- Unlawful gifts by lobbyists. (a) It shall be unlawful for a lobbyist or any person or entity required to file a statement of expenditures under section 97-3 to make gifts to a legislator or employee that are prohibited by section 84-11 or title 21 Hawaii Administrative Rules chapter 7.

(b) For the purposes of this section, "employee" shall have the same meaning as defined in section 84-3."

SECTION 17. Section 97-7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Any person [who:] or entity that:

(1) Negligently fails to file any statement or report required by this chapter;

(2) Negligently 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; or

(5) Makes a gift in violation of section 97- ;

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

SECTION 18. Section 11-327, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) A ballot issue committee shall return all surplus funds to the contributors [~~or donate funds to a community service, educational, youth, recreational, charitable, scientific, or literary organization~~] within ninety days after the election for which the issue appeared on the ballot. Surplus funds that are not returned [~~or donated~~] within ninety days after the election for which the issue appeared on the ballot shall escheat to the Hawaii election campaign fund."

SECTION 19. Section 11-381, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Campaign funds may be used by a candidate, treasurer, or candidate committee:

(1) For any purpose directly related:

(A) In the case of the candidate, to the candidate's own campaign; or

(B) In the case of a candidate committee or treasurer of a candidate committee, to the campaign of the candidate, question, or issue with which they are directly associated;

(2) To purchase or lease consumer goods, vehicles, equipment, and services that provide a mixed benefit to the candidate. The candidate, however, shall reimburse the candidate's candidate committee for the candidate's personal use of these items unless the personal use is de minimis;

[(3) To make donations to any community service, educational, youth, recreational, charitable, scientific, or literary organization; provided that in any election period, the total amount of all donations shall be no more than twice the maximum amount that one person may contribute to that candidate pursuant to section 11-357; provided further that no donations shall be made from the date the candidate files nomination papers to the date of the general election unless the candidate is:

~~(A)~~ ~~Declared to be duly and legally elected to the office for which the person is a candidate pursuant to section 12-41;~~

~~(B)~~ ~~Deemed and declared to be duly and legally elected to the office for which the person is a candidate pursuant to section 12-42; or~~

~~(C)~~ ~~Unsuccessful in the primary or special primary election;~~

~~(4)~~ To make donations to any public school or public library; provided that in any election period, the total amount of all contributions shall be no more than twice the maximum amount that one person may contribute to that candidate pursuant to section 11-357; provided further that any donation under this paragraph shall not be aggregated with or imputed toward any limitation on donations pursuant to paragraph (3);

~~(5)~~ To award scholarships to full-time students attending an institution of higher education or a vocational education school in a program leading to a degree, certificate, or other recognized educational credential; provided that in any election period, the total amount of all scholarships awarded shall be no more than twice the maximum amount that one person may contribute to that candidate pursuant to section 11-357; provided further that no awards shall be made from the filing deadline for nomination papers to the date of the general election unless the candidate is:

~~(A)~~ ~~Declared to be duly and legally elected to the office for which the person is a candidate pursuant to section 12-41;~~

~~(B)~~ ~~Deemed and declared to be duly and legally elected to the office for which the person is a candidate pursuant to section 12-42; or~~

~~(C)~~ ~~Unsuccessful in the primary or special primary election;~~

~~(6)~~ ~~To purchase not more than two tickets for each event held by another candidate or committee, regardless of whether the event constitutes a fundraiser as defined in section 11-342;~~]

[~~(7)~~] (3) To make contributions to the candidate's party so long as the contributions are not earmarked for another candidate; or

[~~(8)~~] (4) To pay for ordinary and necessary expenses incurred in connection with the candidate's duties as a holder of an office, including expenses incurred for memberships in civic or community groups."

SECTION 20. Section 11-381, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Campaign funds may be used by a candidate, treasurer, or candidate committee:

(1) For any purpose directly related:

(A) In the case of the candidate, to the candidate's own campaign; or

(B) In the case of a candidate committee or treasurer of a candidate committee, to the campaign of the candidate, question, or issue with which they are directly associated;

(3) To make donations to any community service, educational, youth, recreational, charitable, scientific, or literary organization; provided that in any election period, the total amount of all donations shall be no more than twice the maximum amount that one person may contribute to that candidate pursuant to section 11-357; provided further that no donations shall be made from the date the candidate files nomination papers to the date of the general election unless the candidate is:

(A) Declared to be duly and legally elected to the office for which the person is a candidate pursuant to section 12-41;

(B) Deemed and declared to be duly and legally elected to the office for which the person is a candidate pursuant to section 12-42; or

(4) To make donations to any public school or public library; provided that in any election period, the total amount of all contributions shall be no more than twice the maximum amount that one person may contribute to that candidate pursuant to section 11-357; provided further that any donation under this paragraph shall not be aggregated with or imputed toward any limitation on donations pursuant to paragraph (3);

(5) To award scholarships to full-time students attending an institution of higher education or a vocational education school in a program leading to a degree, certificate, or other recognized educational credential; provided that in any election period, the total amount of all scholarships awarded shall be no more than twice the maximum amount that one person may contribute to that candidate pursuant to section 11-357; provided further that no awards shall be made from the filing deadline for nomination papers to the date of the general election unless the candidate is:

(A) Declared to be duly and legally elected to the office for which the person is a candidate pursuant to section 12-41;

(B) Deemed and declared to be duly and legally elected to the office for which the person is a candidate pursuant to section 12-42; or

[~~(6) To purchase not more than two tickets for each event held by another candidate or committee, regardless of whether the event constitutes a fundraiser as defined in section 11-342~~;

~~(7)~~] (6) To make contributions to the candidate's party so long as the contributions are not earmarked for another candidate; or

[~~(8)~~] (7) To pay for ordinary and necessary expenses incurred in connection with the candidate's duties as a holder of an office, including expenses incurred for memberships in civic or community groups."

SECTION 21. Section 11-410, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) The commission may make a decision or issue an order affecting any person violating any provision of this part [~~or section 281-22~~] that may provide for the assessment of an administrative fine as follows:

[~~(1) If an individual, an amount not to exceed $1,000 for each occurrence or an amount equivalent to three times the amount of an unlawful contribution or expenditure; or~~

~~(2)~~] (1) If a [~~corporation, organization, association, or 15 labor union,~~] noncandidate committee that makes only independent expenditures and has either received at least one contribution of more than $10,000 from any one person in an election period or has made expenditures of more than $10,000 in the aggregate in an election period, an amount not to exceed [~~$1,000~~] $5,000 for each occurrence[;] or an amount not to exceed three times the amount of an unlawful contribution or expenditure; or

(2) If a person other than a person described in paragraph (1), an amount not to exceed $1,000 for each occurrence or an amount not to exceed three times the amount of an unlawful contribution or expenditure;

provided that whenever a corporation, organization, association, or labor union violates this part, the violation may be deemed to be also that of the individual directors, officers, or agents of the corporation, organization, association, or labor union, who have knowingly authorized, ordered, or done any of the acts constituting the violation."

2. By amending subsection (c) to read:

"(c) If an administrative fine is imposed upon a candidate[,] or noncandidate committee, the commission may order that the fine, or any portion[,] of the fine, be paid from the [~~candidate's~~] personal funds[.] of the candidate or officers of the noncandidate committee."

SECTION 22. Chapter 11, Hawaii Revised Statutes, is amended by adding a new section to part VIII to be appropriately designated and to read as follows:

"§11- Voter information guide. (a) The office of elections shall prepare, and post on its website, a voter information guide. A physical copy of the voter information guide shall be made available upon the request by a voter. The office of elections shall provide a translation of the voter information guide on its website in Olelo Hawaii, Chinese, Ilocano, and Tagalog, and any other language as required by federal or state law. The voter information guide shall be posted in a screen reader-accessible format for voters with special needs who are unable to read standard print due to disability.

(b) The voter information guide shall include:

(1) A short statement of no more than one hundred fifty words for each candidate running for public office, to be prepared by the candidate; provided that the office of elections may uniformly limit the number of words for the candidate statement by applicable public office;

(2) The statement and arguments prepared by the attorney general, in consultation with the legislative reference bureau, pursuant to section 11-118.5(b);

(3) A clear and concise statement, prepared by the appropriate county corporation counsel or county attorney, in consultation with the office of county council services, that indicates the purpose, limitations, and effects for each proposed county charter amendment, proposed initiative, and proposed referendum issue; and

(4) Arguments submitted by the public to the appropriate county corporation counsel or county attorney and office of county council services for and against each proposed county charter amendment, proposed initiative, and proposed referendum issue. The office of county council services shall establish a process to solicit arguments from the public, which may include a word limit.

(c) The office of elections shall prepare and mail with each ballot for a primary election or special election a notice to voters that the voter information guide is available on the office of elections website. The notice shall be sent by electronic mail to all voters with special needs who have registered to receive alternate format ballots.

(d) Information made available over the Internet pursuant to this section shall meet or exceed the most current, ratified standards under section 508 of the federal Rehabilitation Act of 20 1973 (29 U.S.C. 794d), as amended, and the Web Content Accessibility Guidelines 2.0 adopted by the World Wide Consortium for accessibility."

SECTION 23. Section 11-118.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The attorney general, in consultation with the legislative reference bureau, shall prepare [a]:

(1) A statement in English and Hawaiian for each proposed constitutional amendment in language that is clear and that indicates the purpose, limitations, and effects of the proposed amendment[.]; and

(2) Arguments submitted by the public for and against the proposed constitutional amendment. The legislative reference bureau shall establish a process to solicit arguments from the public, which may include a word limit.

The attorney general shall distribute each statement and the arguments to the state office of elections and all county clerks for further distribution. The office of elections and county clerks shall make the statement and arguments available to the public at all polling places in the State and on a website operated by the office of elections."

SECTION 24. Chapter 708, Hawaii Revised Statutes, is amended by adding a new section to part IV to be appropriately designated and to read as follows:

"§708- Fraud. (1) A person commits the offense of fraud if, with the intent to defraud, the person executes or attempts to execute any scheme or artifice to defraud or to obtain money or property by means of false or fraudulent pretenses, representations, or promises.

(2) Application of this section shall be based on:

(A) Title 18 United States Code section 1341;

(B) Title 18 United States Code section 1343;

(D) Title 18 United States Code section 1344;

and any relevant federal case law and precedent.

(3) For the purposes of this section "scheme or artifice to defraud" includes a scheme or artifice to deprive another of the intangible right of honest services.

(4) Fraud is a class B felony and a person convicted under this section shall be sentenced with a mandatory minimum term of imprisonment of one year, without the possibility of probation."

SECTION 25. Section 11-412 Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) A person who is convicted under this section, or for fraud under section 708-___, shall be disqualified from holding elective public office for a period of ten years from the date of conviction."

SECTION 26. Chapter 710, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§710- Using or making false statements or entries; generally. (1) Except as otherwise provided in this section, a person commits the offense of using or making false statements or entries if, in any matter within the jurisdiction of the executive, legislative, or judicial branch of the State, or any county, the person knowingly and willfully:

(a) Falsifies, conceals, or covers up a material fact by any trick, scheme, or device;

(b) Makes any materially false, fictitious, or fraudulent statement or representation; or

(c) Makes or uses any false writing or document knowing the writing or document contains any materially false, fictitious, or fraudulent statement or entry.

(2) Application of this section shall be based on title 18 United States Code section 1001 and any relevant federal case law and precedent.

(3) Using or making false statements or entries is a class C felony. A person convicted of violating this section shall not be eligible for a deferred acceptance of guilty plea or nolo contendere plea under chapter 853.

(4) Subsection (1) shall not apply to a party to a judicial proceeding, or that party's counsel, for statements, representations, writings, or documents submitted by the party or counsel to a judge or magistrate in that proceeding.

(5) With respect to any matter within the jurisdiction of the legislature, subsection (1) shall apply only to:

(a) Administrative matters, including:

(i) A claim for payment;

(ii) A matter related to the procurement of property or services;

(iii) Personnel or employment practices;

(iv) Support services; or

(v) A document required by law, rule, or regulation to be submitted to the legislature or any office or officer within the legislature; or

(b) Any investigation or review conducted pursuant to the authority of any committee, subcommittee, commission, or office of the legislature, consistent with applicable rules of the senate or house of representatives."

SECTION 27. Section 11-412, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) A person who is convicted under this section, or for using or making a false statement or entry under section 710- , shall be disqualified from holding elective public office for a period of ten years from the date of conviction."

SECTION 28. Section 11-405, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Upon hearing the response, if the respondent explains or otherwise responds to the complaint, and upon completion of any investigation, the commission may make a prompt preliminary determination as to whether probable cause exists that a violation of this part has been committed. The preliminary determination with findings of fact and conclusions of law shall be served upon the respondent by [~~certified mail.~~] first-class mail. If the respondent is a candidate, candidate committee, or noncandidate committee and the preliminary determination is mailed to the address contained in the organizational report of the candidate or committee, there is a presumption that the candidate or committee received the preliminary determination within two business days of the preliminary determination being mailed."

SECTION 29. Section 92-3.7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) For a remote meeting held by interactive conference technology pursuant to this section:

(1) The interactive conference technology used by the board shall allow interaction among all members of the board participating in the meeting and all members of the public attending the meeting;

(2) Except as provided in subsections (c) and (d), a quorum of board members participating in the meeting shall be visible and audible to other members and the public during the meeting; provided that no other meeting participants shall be required to be visible during the meeting;

(3) Any board member participating in a meeting by interactive conference technology shall be considered present at the meeting for the purpose of determining compliance with the quorum and voting requirements of the board;

(4) At the start of the meeting the presiding officer shall announce the names of the participating members;

(5) All votes shall be conducted by roll call unless unanimous; and

(6) When practicable, boards shall record meetings open to the public and make the recording of any meeting electronically available to the public as soon as practicable after a meeting and until a time as the minutes required by section 92-9 are electronically posted on the board's website. Boards are encouraged to keep recordings available on their website.

SECTION 30. Section 92-9, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The board shall keep written or recorded minutes of all meetings. Unless otherwise required by law, neither a full transcript nor a recording of the meeting is required, but the minutes shall give a true reflection of the matters discussed at the meeting and the views of the participants. Prior to the removal of a recording that was maintained on a board's website pursuant to section 92-3.7(b)(6), the board shall provide the state archives with a copy of the recording. Written minutes shall include~~[, but need not be limited to:~~] at minimum:

(1) The date, time and place of the meeting;

(2) The members of the board recorded as either present or absent;

(3) The substance of all matters proposed, discussed, or decided; and a record, by individual member, of any votes taken; [~~and~~]

(4) If an electronic audio or video recording of the meeting is available, a link to the electronic audio or video recording of the meeting, to be placed at the beginning of the minutes; and

[~~(4)~~] (5) Any other information that any member of the board requests be included or reflected in the minutes."

SECTION 31. Section 24-1, Hawaii Revised Statutes, is amended to read as follows:

"§24-1 Allowance for incidental expenses. (a) Each member of the legislature shall receive an annual allowance of $7,500, which amount is to cover incidental expenses connected with legislative duties and the amount shall be payable in a manner prescribed by the respective rules of each house; provided that when the legislative salary is increased, the legislative allowance shall be increased by the same percentage.

(b) Each house of the legislature shall post on the legislature's website, on a rolling basis and in a manner prescribed by the respective rules of each house, a report of the legislative allowance expenditures for each member of the respective house."

SECTION 32. Chapter 97, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§97- Mandatory lobbyist training. (a) A lobbyist who has not yet registered with the state ethics commission shall complete a lobbyist training course administered by the state ethics commission before registering as a lobbyist with the state ethics commission.

(b) Registered lobbyists shall repeat the lobbyist training course required by this section at least once every two years.

(c) A lobbyist shall certify completion of the lobbyist training course at the time of registering or renewing registration and shall maintain all certificates or other documentation of completion for a period of six years from the date of registration or renewal.

(d) For good cause shown, the state ethics commission may grant a lobbyist an extension of time to complete the training course required by this section.

(e) The state ethics commission shall develop and conduct online and live training courses that explain state lobbyist laws under this chapter and relevant ethics laws under chapter 84. Live training courses may be conducted in person or via videoconference as necessary to accommodate all persons who are required to complete the course."

SECTION 33. Section 97-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Each lobbyist shall provide and certify the following information:

(1) The name, mailing address, and business telephone number of the lobbyist[.];

(2) The name and principal place of business of each person by whom the lobbyist is retained or employed or on whose behalf the lobbyist appears or works and a written authorization to act as a lobbyist from each person by whom the lobbyist is employed or with whom the lobbyist contracts[.];

(3) The subject areas on which the lobbyist expects to lobby[.]; and

(4) The completion of the mandatory lobbyist training course pursuant to section 97- ."

SECTION 34. Section 97-7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Any person who:

(1) Negligently fails to file any statement or report required by this chapter;

(2) Negligently 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, including certification of completion of the mandatory lobbyist training course, or 97-3;

SECTION 35. Section 11-425, Hawaii Revised Statutes, is amended to read as follows:

"§11-425 Maximum amount of public funds available to candidate. (a) The maximum amount of public funds available in each election to a candidate for the office of governor, lieutenant governor, or mayor of the city and county of Honolulu and the county of Hawaii, shall not exceed [~~ten~~] fifteen per cent of the expenditure limit established in section 11-423(d) for each election.

(b) The maximum amount of public funds available in each election to a candidate for the office of state senator, state representative, mayor of the county of Kauai and the county of Maui, county council member, and prosecuting attorney shall not exceed [~~fifteen~~] twenty-two and a half per cent of the expenditure limit established in section 11-423(d) for each election.

(c) For the office of Hawaiian affairs, the maximum amount of public funds available to a candidate shall not exceed [~~$1,500 in any election year.~~] ten per cent of the expenditure limit established in section 11-423(d) for each election.

(d) [~~For all other offices, the maximum amount of public funds available to a candidate shall not exceed $100 in any election year.~~

~~(e)~~] Each candidate who qualified for the maximum amount of public funding in any primary election and who is a candidate for a subsequent general election shall apply with the commission to be qualified to receive the maximum amount of public funds as provided in this section for the respective general election. For purposes of this section, "qualified" means meeting the qualifying campaign contribution requirements of section 11-429."

SECTION 36. Section 11-429, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) As a condition of receiving public funds for a primary or general election, a candidate shall not be unopposed in any election for which public funds are sought, shall have filed an affidavit with the commission pursuant to section 11-423 to voluntarily limit the candidate's campaign expenditures, and shall be in receipt of the following sum of qualifying contributions from individual residents of Hawaii:

(1) For the office of governor--qualifying contributions that in the aggregate exceed $100,000;

(2) For the office of lieutenant governor--qualifying contributions that in the aggregate exceed $50,000;

(3) For the office of mayor for each respective county:

(A) County of Honolulu--qualifying contributions that in the aggregate exceed $50,000;

(B) County of Hawaii--qualifying contributions that in the aggregate exceed $15,000;

(D) County of Kauai--qualifying contributions that in the aggregate exceed $5,000;

(4) For the office of prosecuting attorney for each respective county:

(A) County of Honolulu--qualifying contributions that in the aggregate exceed [~~$30,000;~~] $25,000;

(B) County of Hawaii--qualifying contributions that in the aggregate exceed [~~$10,000;~~] $5,000; and

(5) For the office of county council--for each respective county:

(A) County of Honolulu--qualifying contributions that in the aggregate exceed $5,000;

(B) County of Hawaii--qualifying contributions that in the aggregate exceed $1,500;

(D) County of Kauai--qualifying contributions that in the aggregate exceed $3,000;

(6) For the office of state senator--qualifying contributions that, in the aggregate exceed $2,500;

(7) For the office of state representative--qualifying contributions that, in the aggregate, exceed $1,500;

(8) For the office of Hawaiian affairs--qualifying contributions that, in the aggregate, exceed [~~$1,500;~~] $5,000; and

(9) For all other offices, qualifying contributions that, 11 in the aggregate, exceed $500.

(b) A candidate shall obtain the minimum qualifying contribution amount set forth in subsection (a) once for the election period.

(1) If the candidate obtains the minimum qualifying contribution amount, the candidate is eligible to receive:

(A) The minimum payment in an amount equal to the minimum qualifying contribution amounts; and

(B) Payments of [$1] $2 for each $1 of qualifying contributions in excess of the minimum qualifying contribution amounts; and

(2) A candidate shall have at least one other qualified candidate as an opponent for the primary or general election to receive public funds for that election."

SECTION 37. Section 11-357, Hawaii Revised Statutes, is amended to read as follows:

"[[]§11-357[]] Contributions to candidate committees; limits[.]; contributions to elected officials; when prohibited.

(a) No person shall make contributions to:

(1) A candidate seeking nomination or election to a two year office or to a candidate committee in an aggregate amount greater than $2,000 during an election period;

(2) A candidate seeking nomination or election to a four-year nonstatewide office or to a candidate committee in an aggregate amount greater than $4,000 during an election period; or

(3) A candidate seeking nomination or election to a four-year statewide office or to a candidate committee in an aggregate amount greater than $6,000 during an election period.

(b) For purposes of this section, the length of term of an office shall be the usual length of term of the office as unaffected by reapportionment, a special election to fill a vacancy, or any other factor causing the term of the office the candidate is seeking to be less than the usual length of term of that office.

(c) During any regular session or special session of the state legislature, including any extension of any regular session or special session and any legislative recess days, holidays, and weekends, no elected official as defined in section 11-342(d) shall solicit or accept campaign contributions from any person."

SECTION 38. Section 11-355, Hawaii Revised Statutes, is amended to read as follows:

"[[]§11-355[]] Contributions by state and county contractors; contributions by state and county grantees; prohibited. (a) It shall be unlawful for any person who enters into any contract with the State, any of the counties, or any department or agency thereof either for the rendition of personal services, the buying of property, or furnishing of any material, supplies, or equipment to the State, any of the counties, any department or agency thereof, or for selling any land or building to the State, any of the counties, or any department or agency thereof, if payment for the performance of the contract or payment for material, supplies, equipment, land, property, or building is to be made in whole or in part from funds appropriated by the legislative body, at any time between the execution of the contract through the completion of the contract, to:

(1) Directly or indirectly make any contribution, or promise expressly or impliedly to make any contribution to any candidate committee or noncandidate committee, or to any candidate or [to] any person for any political purpose or use; or

(2) Knowingly solicit any contribution from any person for any purpose during any period.

(b) It shall be unlawful for any person who receives a grant or subsidy from the State pursuant to chapter 42F, or from a county pursuant to county charter or code, at any time between the execution of the contract for the grant or subsidy through the completion of the contract, to:

(2) Knowingly solicit any contribution from any person for any purpose during any period.

(c) It shall be unlawful for the owners, officers, and any immediate family members of any state or county contractor under subsection (a), at any time between the execution of a contract through completion of the contract pursuant to subsection (a), to directly or indirectly make any contribution to any candidate committee or noncandidate committee.

(d) It shall be unlawful for the owners, officers, and any immediate family members of any state or county grantee under subsection (b), at any time between the execution of a contract through completion of the contract pursuant to subsection (b), to directly or indirectly make any contribution to any candidate committee or noncandidate committee.

[~~(b)~~] (e) Except as provided in [~~subsection~~] subsections (a), (b), (c), and (d), this section does not prohibit or make unlawful the establishment or administration of, or the solicitation of contributions to, any noncandidate committee by any person other than the state or county contractor, the state or county grantee, or the owners, officers, and immediate family members of a state or county contractor or state or county grantee, for the purpose of influencing the nomination for election, or the election of any person to office.

[~~(c)~~] (f) For purposes of this section, "completion of the contract" means that the parties to the government contract have either terminated the contract prior to completion of performance or fully performed the duties and obligations under the contract, no disputes relating to the performance and payment remain under the contract, and all disputed claims have 5 been adjudicated and are final."

SECTION 39. Section 11-351, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) A candidate, candidate committee, or noncandidate committee, shall not accept a contribution of more than $100 in cash in the aggregate during an election period from a single person [~~without issuing~~] and shall issue a receipt to the contributor for each contribution and [~~keeping~~] keep a record of the contribution."

SECTION 40. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 as a grant-in-aid to the board of ethics of the county of Kauai.

The sum appropriated shall be expended by the county of Kauai for the purposes of this Act.

SECTION 41. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 as a grant-in-aid to the board of ethics of the county of Maui.

The sum appropriated shall be expended by the county of Maui for the purposes of this Act.

SECTION 42. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 as a grant-in-aid to the board of ethics of the county of Hawaii.

The sum appropriated shall be expended by the county of Hawaii for the purposes of this Act.

SECTION 43. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 as a grant-in-aid to the ethics commission of the city and county of Honolulu.

The sums appropriated shall be expended by the city and county of Honolulu for the purposes of this Act.

SECTION 44. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for the purposes of this Act.

The sum appropriated shall be expended by the department of the attorney general for the purposes of this Act.

SECTION 45. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 46. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 47. 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 48. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	627
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII