RELATING TO FINANCIAL DISCLOSURES.

HB2106

HOUSE OF REPRESENTATIVES

H.B. NO.

2106

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO FINANCIAL DISCLOSURES
.

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

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SECTION 1.
�
The purpose of
this Act is to strengthen public trust in government by expanding the
categories of boards and commissions whose members are required to file public
financial disclosure statements under section 84-17, Hawaii Revised Statutes,
and by including in public disclosure requirements the executive directors and
executive officers for those boards.
�

Under existing law, public financial disclosure is required for members
of certain state boards and commissions whose duties involve significant
regulatory authority, fiduciary responsibility, or oversight of substantial
public resources.
�
However, several
boards and commissions that manage large sums of public funds, exercise
significant financial discretion, or make decisions with substantial economic
impact are not currently included in the statute's public disclosure
requirements.

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This Act addresses that gap.
�
It adds to the public disclosure list:

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(1)
�
Members
of additional boards and commissions that oversee or control substantial state
moneys, investments, or expenditures; and

����
(2)
�
The
executive directors or executive officers of those same boards and commissions,
who, as state employees entrusted with day-to-day financial or operational
authority, should be subject to the same transparency expectations.

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By including both members and chief
executive officers of influential boards and commissions, this Act ensures that
the individuals exercising the greatest influence over high-value public
resources are covered by uniform disclosure standards.
�
Public financial disclosure helps identify and
prevent conflicts of interest, promotes accountability, and reinforces the
public's confidence that state decision-makers act in the public interest.

����
Accordingly, this Act amends section 84-17,
Hawaii Revised Statutes, to require public financial disclosure statements from
members and executive leadership of specified boards and commissions having
broad budgetary, investment, or expenditure authority.

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SECTION
2
.
�
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.

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(b)
�

The disclosure of financial interests 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;

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

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

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(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
]

twelve months
preceding the date of separation;

provided that candidates for state elective
offices or the constitutional convention shall file the required statements no
later than ten days after the nomination filing deadline established pursuant
to section 12-6.

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(c)
�
The following persons shall file annually
with the state ethics commission a disclosure of financial interests:

����
(1)
�
The governor,
lieutenant governor, 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;

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(2)
�
The directors and
their deputies, the division chiefs, the executive directors
,
and the
executive [
secretaries
]
officers
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;

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

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

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

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

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(7)
�
The superintendent,
deputy superintendent, assistant superintendents,
and
complex area
superintendents[
,
]
of the department of education, and the
state
librarian[
,
] and [
deputy state librarian of the department of
education;
]
the special assistant to the state librarian of the public
library system;

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

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(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;

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(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;

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(11)
�
The [
administrator
and assistant administrator
]
chief executive officer and executive
administrators
of the office of Hawaiian affairs;
and

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

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

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(d)
�

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

����
(1)
�
The
governor, lieutenant governor, members of the legislature, candidates for and
delegates to the constitutional convention, 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;

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(3)
�
The
administrative director of the State;

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

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(5)
�
The
members of the board of education, superintendent, deputy [
superintendent,
]

superintendents of the department of education, and the
state librarian[
,
]
and [
deputy state librarian of the department of education;
]
the
special assistant to the state librarian of the public library system;

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

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(7)
�
The
[
administrator and assistant administrator
]
chief executive officer
and executive administrator
of the office of Hawaiian affairs; and

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(8)
�
The

executive directors or executive officers, if applicable, and
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 and biosecurity established under section 26-16;

���������
(C)
�
The
state ethics commission established under section 84-21;

���������
(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[
.
]
;

���������
(P)
�
The employees' retirement system;

���������
(Q)
�
The Hawaii employer-union health benefits
trust fund;

���������
(R)
�
The Hawaii green infrastructure authority;

���������
(S)
�
The Hawaii technology development
corporation; and

���������
(T)
�
The school facilities authority.

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(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.
�
The unauthorized release of any confidential
financial disclosure statement information shall be a violation of this
chapter.

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(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;

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(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;

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(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;

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(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;

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(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;

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(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.

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(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;

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(2)
�
An employer of the member;

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

����
(4)
�
A client of the member, member's partner, or
member's employer, who is on the lobbyist list and not just a client with a
lobbyist, where the client provided at least $5,000 of income during the
preceding calendar year.

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As
used in this subsection:

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"Member"
means a member of the legislature.

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

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(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.

����
(i)
�

The state ethics commission shall provide a method for filing financial
disclosure statements.
�
The commission
may require that financial disclosure statements be filed electronically.

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(j)
�
Failure of a legislator, a delegate to the
constitutional convention, or an 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 may be assessed an administrative fine of
$50.
�

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, if applicable,
the administrative fine.
�
If a disclosure
of financial interests has not been filed within thirty days after the original
deadline, in addition to any initial administrative fine that may have been
assessed, an administrative fine of $250 may be assessed.

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(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.
�

Any candidate who fails to file a disclosure of financial interests when
due may be assessed an administrative fine of $50.
�
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 candidates who have failed to file financial
disclosure statements.
�
The state ethics
commission shall notify a candidate, by in-person service, electronic mail to
the candidate's electronic mail address listed with the office of elections, or
first-class mail, of the failure to file and, if applicable, the administrative
fine.
�
If a disclosure of financial
interests has not been filed within thirty days after the original deadline, in
addition to any initial administrative fine that may have been assessed, an
administrative fine of $250 may be assessed.

����
(l)
�

Administrative fines assessed pursuant to this section may be enforced
using the procedure provided in section 84‑31(g).

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[
[
](m)[
]
]
�
All administrative fines collected under this
section shall be deposited into the general fund.
�
Any administrative fine for the late filing
of a disclosure of financial interests shall be in addition to any other action
the state ethics commission may take pursuant to this chapter.
�
The state ethics commission may waive any
administrative fines authorized pursuant to this section for good cause shown.

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[
[
](n)[
]
]
�
The state ethics commission may investigate,
initiate, or receive charges on 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 on whether a candidate has
complied with subsection (f).
�
This
decision shall be a matter of public record.
"

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SECTION 3.
�
This Act shall apply only to financial
disclosure statements filed on or after July 1, 2027.
�
Financial disclosure statements that were
confidential at the time of filing shall remain confidential notwithstanding
any amendments made by this Act.

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SECTION 4.
�

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

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SECTION 5.
�
This Act shall take effect on July 1, 2027.

INTRODUCED BY:

_____________________________

By Request

Report Title:

State
Ethics Commission Package; Financial Disclosures; Requirements

Description:

Expands the scope of persons who are subject to public financial
disclosure requirements.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.