STAND. COM. REP. NO. 2031-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2246

S.D. 1

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred S.B. No. 2246, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO FINANCIAL DISCLOSURES,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Require public financial disclosure statements from members and executive leadership of certain boards and commissions having broad budgetary, investment, or expenditure authority; and

(2) Clarify that an amount of stock may be reported by a value of shares.

Your Committee received testimony in support of this measure from the Hawaiʻi State Ethics Commission and three individuals.

Your Committee finds that existing public financial disclosure requirements do not uniformly apply to certain members of boards and commissions, or to executive directors and executive officers who exercise significant authority over public funds. Your Committee further finds that this lack of uniformity weakens transparency and accountability and may undermine public confidence in government decision-making. This measure promotes consistent ethical standards and strengthens public trust in state government.

Your Committee has amended this measure by:

(1) Clarifying that the requirement to file financial disclosure statements applies regardless of the titles by which the specified persons are designated;

(2) Deleting language that would have required the Special Assistant to the State Librarian to file financial disclosure statements, instead of the Deputy State Librarian;

(3) Making technical, conforming amendments to disclosure provisions applicable to legislators;

(4) Specifying that an amount of stock may be reported by the value or number of shares; and

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

As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2246, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2246, S.D. 1, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

____________________________

DAVID A. TARNAS, Chair