Here’s one of those areas where the state’s ethics law falls short.

State officials file personal financial disclosures every year, the same disclosure requirement that was recently extended to a number of the most important boards and commissions.

The first item required to be disclosed are sources of income.

Here’s what the law says [Section 84-17(f)(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 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;

I’ve highlighted that last clause. It means that if a person is a lawyer, an insurance agent, real estate agent, or in some similar type of work, they are not required to disclose their individual clients, only their overall business income.

Can lobbyists arrange to put a little business–and a bit of profit–in the way of a legislator or key official? Sure. Does this have to be disclosed? Under current law, no.

Potentials for concealed conflicts? Definitely.

And here’s one prime example.

Bruce Coppa is Governor Abercrombie’s chief of staff. In that position, he also holds the title of administrative director of the state. He’s the top appointed administrator in the executive branch.

And here’s a section from Coppa’s current financial disclosure where he reports earned income.

Note, first, that the disclosure is incomplete because it does not include his state salary.

Note, second, that Coppa reports earnings in category “E” for real estate sales as an employee of Hawaii 5-0 Properties.

State licensing records confirm Coppa holds a real estate salesperson license valid through the end of this year. He has held the license since 2001.

That “E” represents a sum of at least $50,000 but less than $100,000. That’s an increase from the $25-49,999 that Coppa reported from real estate sales over the past two reporting periods.

Here’s part of the description of Hawaii 5-0 Properties on its website:

We are one of the top buyers’ agents for high-end developments in Honolulu establishing ourselves as one of the top brokers for Trump Waikiki. Our past sales reflect our success so if you are interested in looking at this or any other high-end developments, we are your team.

I have to wonder when Hawaii’s top administrative officer finds the time to not only continue, but apparently expand his personal real estate activities?

And, yes, I do wonder about whether any of the business steered his way creates potential conflicts of interest?

Financial disclosure is designed to encourage public officials to look at their financial involvements with an eye towards avoiding potential conflicts. But this doesn’t happen when these professionals are exempted from disclosing their client lists, or the income they derive from individual clients, even if those clients are lobbyists or others simultaneously seeking to benefit from state actions.

I think it’s past time for the legislature to take another look at this section of the ethics law and provide additional disclosures so that we are more fully assured that our public officials and employees display the highest standards of ethical behavior?

Perhaps public officials who work as lawyers, real estate salespersons, or insurance agents, should not have to disclose the names of all their clients. But how about reporting business dealings with lobbyists, corporations or others who employ lobbyists, or those who come before any state agency in which the official is involved? In the case of the state’s administrative director, that’s pretty much all the state agencies, isn’t it?