RELATING TO FINANCIAL DISCLOSURES.

HB2108

HOUSE OF REPRESENTATIVES

H.B. NO.

2108

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 promote governmental transparency and strengthen public
confidence in the State's appointments process by requiring that nominees to
certain state positions requiring senate confirmation file financial disclosure
statements prior to their confirmation hearings.

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Under existing law, individuals appointed
to certain state positions must file financial disclosure statements within
thirty days of their appointment.
�
However,
this deadline often results in disclosure statements becoming publicly
available only after the senate conducts its confirmation hearings, limiting
the ability of senators and the public to review potential conflicts of
interest in advance.

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This Act ensures that financial disclosure
statements for nominees subject to senate confirmation are filed in a timely
manner, facilitating meaningful public review.
�
In addition, this Act modernizes existing
statutory financial disclosure requirements by aligning legislative disclosures
with information already provided in lobbyist expenditure statements.

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SECTION

2
.
�
Section 84-17, Hawaii Revised Statutes, is
amended to read as follows:

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"
�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:

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

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(4)
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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 ten days after the nomination filing deadline established pursuant
to section 12-6[
.
]
;
provided further that persons nominated to a position subject to senate
confirmation, excluding state court justices and judges, shall file the
required statements no later than five days after being nominated or five days
before the first confirmation hearing, whichever occurs first.

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

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(1)
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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)
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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;

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(3)
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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)
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The hearings officers
of every state agency and department;

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

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

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

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(9)
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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)
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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)
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The administrator and
assistant administrator of the office of Hawaiian affairs;

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

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(13)
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The members of the
school facilities board appointed by the governor[
.
]
; and

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(14)
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Persons nominated to a position subject to
senate confirmation, excluding state court justices and judges; provided that
nominees shall only be required to file initial disclosures in advance of their
confirmation hearings.

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

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(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[
;
]
, and nominees for state positions
subject to senate confirmation, excluding state court justices and judges
;

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(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, state
librarian, and deputy state librarian of the department of education;

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

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

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(8)
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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;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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(e)
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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.
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All disclosures shall include:

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(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)
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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)
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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)
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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)
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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

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(7)
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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)
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In addition to the disclosures required under
subsection (f), each [
member of the legislature
]
legislator
shall
also disclose the name of any person that is subject to section 97-3 and that
is:

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(1)
�
A business partner of the [
member;
]
legislator;

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(2)
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An employer of the [
member;
]
legislator;

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(3)
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An officer or director of the [
member's
]

legislator's
employer; or

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(4)
�
A client of the [
member, member's partner,
]

legislator, legislator's spouse,
or [
member's
]
the
legislator's
employer, [
who is on the lobbyist list and not just a
client with a lobbyist, where the client
]
who filed a statement of
expenditures pursuant to section 97-3 and
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
]
, "legislator's spouse" means a
legislator's
spouse under chapter 572, civil union partner under chapter
572B, or reciprocal beneficiary under chapter 572C.

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(h)
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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.
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An amount of stock may be reported by number
of shares.

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(i)
�

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

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(j)
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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.
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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.
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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.
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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.

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(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.
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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.
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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).
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This
decision shall be a matter of public record.
"

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SECTION 3.
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This Act does not affect rights and duties that matured, penalties that
were incurred, and proceedings that were begun before its effective date.

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SECTION 4.
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Statutory material to be repealed is bracketed and stricken.
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New statutory material is underscored.

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SECTION 5.
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This Act shall take effect
upon
its approval.

INTRODUCED
BY:

_____________________________

By
Request

Report Title:

State
Ethics Commission Package; Financial Disclosures; Requirements

Description:

Expands the scope of persons who are required to file
financial disclosures to include certain gubernatorial nominees subject to
Senate confirmation.
�
Makes technical
amendments relating to legislators.

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