RELATING TO THE OFFICE OF HAWAIIAN AFFAIRS.

SB2823

THE SENATE

S.B. NO.

2823

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO THE OFFICE OF HAWAIIAN AFFAIRS
.

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

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SECTION 1.
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The
legislature finds that the
office of Hawaiian affairs
has significant fiduciary responsibilities to Hawaiian and
native Hawaiian beneficiaries and exercises substantial authority over trust
assets.
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To preserve public trust and
ensure impartiality, complaints alleging misconduct, retaliation,
discrimination, ethics violations, or unlawful activity by office of Hawaiian
affairs trustees, officers, or employees should not be investigated internally
by office of Hawaiian affairs personnel.

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The purpose of this Act is to establish an
independent complaint and investigation process by requiring that all
complaints brought by employees, officers, and trustees of the office of
Hawaiian affairs be referred directly to an appropriate independent state
agency, including the department of the attorney general, the state ethics commission,
or the Hawaii civil rights commission, as the case may be.

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SECTION 2.
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Chapter 10, Hawaii Revised Statutes, is amended by adding four new
sections to be appropriately designated and to read as follows:

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"
�10-
A
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Independent complaint referral
process.

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(a)
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All complaints, allegations, or credible
information alleging misconduct, wrongdoing, violation of law, breach of
fiduciary duty, misuse or misappropriation of funds, abuse of authority,
unethical conduct, or violation of governing policies involving any employee or
trustee of the office, without screening, delay, suppression, or internal
determination, shall be promptly referred, as follows:

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(1)
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To
the state ethics commission when the complaint, allegation, or credible
information alleges violations of chapter 84 or other ethics-related
misconduct;

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(2)
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To
the Hawaii civil rights commission when the complaint, allegation, or credible
information alleges discrimination, harassment, hostile work environment, or
retaliation prohibited under chapter 368; and

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(3)
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To
the department of the attorney general when the complaint, allegation, or
credible information alleges misconduct not expressly within the jurisdiction
of the state ethics commission or the Hawaii civil rights commission.

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(b)
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No complaint, allegation, or credible information filed by an employee
or trustee against any other employee of the office, or member of the board of
trustees shall be investigated internally by the office.
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The office shall immediately transmit any
complaint received to the appropriate entity identified in subsection (a); refrain
from screening, evaluating, investigating, or responding to the complaint; and
notify the complainant of the referral and provide contact information for the
receiving agency.
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The office and its
trustees shall have no authority to:

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(1)
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Determine
the credibility, sufficiency, or merit of a complaint or allegation subject to
this section;

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(2)
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Decline,
dismiss, delay, recharacterize, or resolve internally a complaint or allegation
that is subject to this section; or

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(3)
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Interfere
with, influence, obstruct, or retaliate in connection with an independent
review or investigation being conducted subject to this section.

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(c)
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Upon receipt or awareness of a complaint or allegation subject to this
section, the office shall:

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(1)
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Immediately
preserve all records, communications, and electronic data potentially relevant
to the matter; and

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(2)
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Fully
cooperate with any review, audit, or investigation conducted by the attorney
general, the state ethics commission, or any other authorized oversight
authority.

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(d)
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Nothing in this section shall:

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(1)
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Limit
or impair the authority of the attorney general, the state ethics commission,
or any other authorized entity to pursue corrective, remedial, civil,
administrative, or criminal actions as provided by law; or

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(2)
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Prevent
a complainant from filing a complaint directly with the state ethics
commission, the Hawaii civil rights commission, or the department of the
attorney general.

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�10-B
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Whistleblower protections;
anti-retaliation.

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(a) Any
person who, in good faith, reports, discloses, or provides information
regarding a complaint or allegation subject to section 10-A shall be afforded
all protections available under part V of chapter 378 and any other applicable
state or federal whistleblower protection law.

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(b)
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No trustee or employee of the office, nor the office as an entity, shall
retaliate or threaten retaliation against any whistleblower or witness.

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(c)
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For the purposes of this section "retaliation" includes intimidation,
harassment, discrimination, adverse action, denial of benefits, interference
with contracts or opportunities, or any action intended to deter the reporting
of alleged wrongdoing.

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(d)
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Any act of retaliation shall constitute a separate violation of law and
may be referred to the attorney general, the state ethics commission, or other
appropriate authority for investigation and enforcement.

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�10-
C
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Failure to report; concealment;
obstruction; penalties.

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(a)
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Any
employee or trustee of the office who knowingly:

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(1)
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Fails
to report a complaint or allegation required to be referred under section 10-A;

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(2)
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Conceals,
alters, destroys, or withholds information or records related to complaint or
allegation subject to section 10-A;

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(3)
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Intentionally
delays referral; or

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(4)
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Interferes
with or obstructs an independent review or investigation that is conducted
pursuant to section 10-A;

shall be subject to a civil penalty not to
exceed $10,000 for each violation.
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Individuals found in violation of this section
may also be subject to administrative sanctions, including censure or removal
from office where authorized by law, and referral to the attorney general or
state ethics commission for further investigation or enforcement.

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(b)
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Each failure to report, act of concealment,
act of obstruction, or retaliatory act shall constitute a separate and distinct
violation.

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�10-
D
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Annual
complaint referral report.
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The office of Hawaiian affairs shall submit a
report to the legislature no later than twenty days prior to the convening of
the regular session of 2027, and every year thereafter.
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The report shall include:

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(1)
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The
number of complaints or allegations referred pursuant to this section 10-A;

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(2)
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The
general categories of alleged misconduct, excluding confidential or identifying
information; and

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(3)
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The
status or disposition of matters, to the extent disclosure is permitted by law.
"

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SECTION 3.
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If any
provision of this Act, or the application thereof to any person or
circumstance, is held invalid, the invalidity does not affect other provisions
or applications of the Act that can be given effect without the invalid
provision or application, and to this end the provisions of this Act are
severable.

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SECTION 4.
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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 5.
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In codifying
the new sections added by section 2 of this Act, the revisor of statutes shall
substitute appropriate section numbers for the letters used in designating the
new sections in this Act.

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SECTION 6.
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This Act shall
take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Office of
Hawaiian Affairs; Internal reporting referral process

Description:

Establishes an independent complaint and investigation
process by requiring that all complaints brought by employees, officers, and
trustees of the office of Hawaiian affairs be referred directly to an
appropriate independent state agency, including the department of the attorney
general, the state ethics commission, or the Hawaii civil rights commission.
Establishes penalties.

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