THE SENATE	S.B. NO.	610
THIRTY-FIRST LEGISLATURE, 2021		S.D. 1
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

 

 

RELATING TO BOARDS AND COMMISSIONS.

 

 

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

 

     SECTION 1.  The legislature finds that public members of boards and commissions more adequately represent the public interest when those members have no association with the profession or any relationship with a member of the profession that the board or commission regulates.  Public members are not expected or required to be experienced or an expert in the regulated profession.  This unique and important role of the public member mitigates the anticompetitive effects of a board or commission's actions, which may occur when the board or commission is dominated by active market participants.

     The legislature further finds that well-informed and engaged public members bring several advantages to regulation, including:

     (1)  Reducing the potential for board decisions that favor the industry over the public;

     (2)  Reducing the potential for decisions that illegitimately favor one fraction of an industry over another;

     (3)  Encouraging public participation in government decision-making;

     (4)  Enhancing public confidence and trust in government;

     (5)  Expanding the range of skills, talent, training, and perspectives available for higher quality and creative board action;

     (6)  Raising the level of board discussions towards closer scrutiny of an industry; and

     (7)  Strengthening the board's credibility in its decision‑making and advocacy.

     Accordingly, the purpose of this Act is to prohibit a public member of any board or commission under the department of commerce and consumer affairs' purview from:

     (1)  Being engaged in the occupation that the board or commission regulates;

     (2)  Being associated with a member of the occupation that the board or commission regulates that results in a material conflict of interest, an appearance of impropriety, or a reasonable suspicion that the public member does not represent the public interest; or

     (3)  Having a direct financial interest in the regulated occupation.

     SECTION 2.  Section 26-9, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  Except as otherwise provided by this chapter, the functions, duties, and powers, subject to the administrative control of the director of commerce and consumer affairs, and the composition of each board and commission shall be as provided by law.  A public member of any board or commission listed in subsection (c) shall not:

     (1)  Be engaged in the occupation that the board or commission regulates;

     (2)  Be associated with a member of the occupation that the board or commission regulates that results in a material conflict of interest, an appearance of impropriety, or a reasonable suspicion that the public member does not represent the public interest; or

     (3)  Have a direct financial interest in the occupation that the board or commission regulates.

     As used in this subsection, "material conflict of interest" means a conflict of interest that has the potential to:

     (1)  Influence a member's decision or conduct; or

     (2)  Have a non-trivial impact on the financial situation of a member or an entity in which the member or immediate family member of the member has a significant financial interest."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2112.

 

Report Title:

Department of Commerce and Consumer Affairs; Boards; Commissions; Public Member

 

Description:

Prohibits a public member of any board or commission under DCCA's purview from being engaged in the occupation that the board or commission regulates; being associated with a member of the occupation that the board or commission regulates that results in a material conflict of interest, an appearance of impropriety, or a reasonable suspicion that the public member does not represent the public interest; or having a financial interest in the regulated occupation.  Effective 7/1/2112.  (HD1)

 

 

 

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