HB709

SECTION 1. The legislature finds that the house of representatives adopted House Resolution No. 9 (2022) to establish the commission to improve standards of conduct. The resolution requests the commission ensure state laws and rules relating to 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 convened regularly throughout 2022 to diligently review, discuss, and consider the issues presented, submitted an 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 expectation 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 legislature further finds that requiring all lobbyists to be educated on the state lobbyist law and state ethics code is in the best interests of the State. Regular training by the state ethics commission will ensure that all persons engaged in lobbying activities are aware of current state lobbying and ethics laws, which will increase the public's confidence in state government.

Accordingly, the purpose of this Act is to implement recommendations of the commission to improve standards of conduct by establishing a lobbyist training course to be designed and administered by the state ethics commission and making lobbyist training mandatory for all lobbyists who are required to register under chapter 97, Hawaii Revised Statutes.

SECTION 2. 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 3. 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 4. 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;

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 5. In the absence of good cause shown, each lobbyist who is registered with the state ethics commission as of the effective date of this Act shall complete the lobbyist training course required by section 97- , Hawaii Revised Statutes, within six months following the effective date of this Act and at least once every two years following completion of the previous lobbyist training course.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	709
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII