Hawaii’s business and political communities are intertwined — an inevitable fact of a small state. Knowing this, state lawmakers are moving along a measure, House Bill 71, that would prohibit outside employment for the state’s governor and four mayors, while he or she is in office.
While tightening the rules about the top elected executives would be a sensible step, this does not ignore the need to ride herd on the state and county legislative branches. They also are accountable for potential ethical conflicts between elected duties and other entanglements. Lawmakers do not always scrupulously declare their outside interests, and they should be called on that, as well.
But underscoring HB 71 is this distinction: Elected executives and county councils work year-round, but state legislative offices are part-time jobs, making it more likely that legislators will seek extra pay. According to the Center for Public Integrity, a nonpartisan, nonprofit organization, roughly 3 out of 4 state lawmakers nationally have outside employment income.
By contrast, the public expectation of a governor or mayor is to focus on the job at hand. That’s why HB 71 proposes to make it illegal for a governor or county mayor “to maintain any other employment or receive any emolument” once the new law takes effect.
The House Labor and Public Employment Committee passed the bill Thursday. The measure, carried over from the 2017 session, has to gain the approval of the Finance Committee before getting a vote on the House floor.
The bill is likely to evolve as it moves through, as it should. For example, Daniel Gluck, executive director of the state Ethics Commission, said in testimony that the commission supports the intent of the measure, but he questioned whether the commission would be able to enforce the bar it places on county mayors.
Further, he said, the absolute “emolument” prohibition might need to be loosened; for example, it would preclude a mayor or governor from owning stock or mutual funds, or from renting out property.
House Labor Chairman Aaron Johanson said the panel agreed and, rightly, would incorporate those changes, as well as giving newly elected executives two months of transition time to divest themselves of their private business associations.
State lawmakers maintain that this bill did not arise as a restriction aimed at Honolulu Mayor Kirk Caldwell and his outside job. Whether or not it did, the Caldwell example is on point.
For the past decade, and despite criticism, the mayor has retained a post on the Territorial Savings Bank board, drawing an annual base salary of about $49,000. Charles Djou, his 2016 mayoral challenger, filed an ethics complaint, later dismissed.
Caldwell countered that Territorial does no business with the city that poses a conflict, adding that he only needs to spend a few hours, one day a month, at board meetings. His campaign chief said the former Ethics Commission cleared Caldwell of conflict when approached about the bank post, preceding two prior elections.
Regardless, the money at issue is significant: Between 2011 and 2017, his pay rose by $150,000-$200,000 a year because of stock payouts. Even without a direct conflict, the bank leaders themselves have outside associations, possibly including some that do have city business.
Gluck said the state Constitution already prohibits an outside job for the governor. But HB 71, with some revision, could clarify what this means and extend it to the mayors. Clarity is needed.
Unlike in the legislative branch, state and county chief executives have power to effect change unilaterally. The public should have assurances that Hawaii’s top elected officials act in its interest, with as little external financial distraction as possible.
