Category Archives: lobbyists

It’s way too early for legislators and lobbyists to be undermining the new ethics rules

New rules approved by the State Ethics Commission went into effect just after Thanksgiving, effectively prohibiting most gifts by lobbyists or their clients to legislators or legislative staff (see my earlier post, “New administrative rules for the State Ethics Commission went into effect Nov. 28“).

It didn’t take long at all for some legislators to push back in defense of their “right” to freebies, as Civil Beat reported yesterday (“Hawaii Lawmakers Want Their ‘Gifts Of Aloha’ Back”).

This isn’t the “money talks, and b.s. walks” kind of “gifts.” We’re talking small kine stuff that the lobbying pros regularly drop off to their key legislative contacts. Those boxes of pastries or manapua, or occasional box lunches, are welcome sights when they arrive in legislative offices. And the lobbyists who bring those small gifts know exactly what they’re doing. They are establishing themselves as friends and insiders, familiar faces who will later enjoy the access that political friends and insiders have (and that mere constituents and voters typically lack). The so called “gifts of Aloha” are also signals that the special interests those lobbyists represent are standing by, ready to “help” in other ways if asked.

One bill introduced by House Judiciary & Hawaiian Affairs chairman Mark Nakashima muddies the water by referencing rules that allow federal judges to accept certain gifts that would not be allowed by the current ethics commission rules.

The legislature notes that the Code of Conduct for United States Judges governs the federal judiciary, including the Supreme Court of the United States. The code acknowledges that certain cultural traditions, including acts of social hospitality, are acceptable practices.

The code also clarifies that acceptable traditions include “social hospitality based on 11 personal relationships” and “modest items, such as food and refreshments, offered as a matter of social hospitality”, and specifically excludes these customary traditions from the code’s definition of “gifts.” Applying these same guidelines to the legislature, the legislature believes that the Hawaiian custom of offering tokens of aloha is acceptable.

The implication is that, hey, it’s just aloha, after all, so why worry?

Well, yes and no. While it’s true that the rules for judges and judicial employees do allow gifts of “social hospitality” under some limited circumstances, those same rules also make clear that gifts may not be accepted from those with any business before the court.

A judicial officer or employee shall not accept a gift from anyone who is seeking official action from or doing business with the court or other entity served by the judicial officer or employee, or from any other person whose interests may be substantially affected by the performance or nonperformance of the judicial officer’s or employee’s official duties.

As applied to the legislature, that seems to support the ethics commission’s “no gifts from lobbyists” rules.

The broader problem is that there’s a “wolf in sheep’s clothing” problem. For example, should legislators who attend a public meeting in their community to hear constituent concerns have to bypass the refreshment table because their juice and pupu might be considered an improper gift? That seems silly. But what about when the public meeting is sponsored by an industry group that also lobbies for their own special interests? Suddenly the offer of food and drinks while socializing with lobbyists and their takes on a different character, and a strict rule makes more sense.

The rules are new, and haven’t been in place long enough to get a good sense of how the commission is going to interpret and enforce them, or how easy it will be for legislators to live with. Legislators need to wear the new off those rules before messing around with ill-considered legislation opposed by those we rely on to keep undue influence of special interests in check.

Gov. Ige threatens veto of bill limiting “revolving door” between government and lobbyists

Governor Ige has announced his intention to veto a bill that, if it becomes law, would strengthen ethics in government by imposing a new waiting period on the revolving door between public service and special interest lobbying.

The bill “seeks to promote integrity in government by strengthening the wall of separation between lobbyists and high-ranking government officials.”

HB2124 SD2, “Relating to the Code of Ethics,” is strongly supported by the State Ethics Commission.

The commission testified repeatedly in favor of passage, and described what the bill would do.

Currently, under Hawaii’s post-employment law, Hawai’i Revised Statutes (“HRS?) § 84-18, former government officials are generally prohibited from representing others, for pay, before their own agencies for twelve months after leaving office. However, those same former government officials are generally not subject to any cooling-off period before they may be paid to represent private clients before other state agencies. For example, a department director who appears regularly before the Legislature can leave government service and immediately begin lobbying the Legislature for pay; similarly, a legislator can immediately leave office and begin lobbying executive-branch agencies regarding proposed administrative rules.

This measure would create a twelve-month cooling-off period for certain high-ranking government officials (and permanent employees of the Legislature, other than those employed in clerical positions), before those former employees would lobby the Legislature for pay.

The list of those who would be impacted by the bill is included at the bottom of this post.

Although HB2124 was not part of the commission’s package of bills submitted during the 2020 legislative session, a virtually identical bill was included. It appears HB2124 became the vehicle for final passage to accommodate the number of representatives who wanted to be listed among the sponsors of this public-interest measure.

Representatives signing on as introducers of HB2124 were Chris Lee, Tom Brower, Stacelynn Eli, Daniel Holt, Aaron Ling Johanson, John Mizuno, Dee Morikawa, Nadine Nakamura, Mark Nakashima, Amy Perruso, Scott Saiki, Roy Takumi, and Tina Wildberger.

The measure moved smoothly through both houses to passage, and there was no testimony opposing the measure presented in any of the four public hearings.

So why is the governor threatening to veto it?

Here’s Gov. Ige’s explanation for why he intends to veto the bill.

Rationale: The additional restrictions put on volunteer boards and commissions members who fulfill an important role in protecting our community through their service will make it significantly more challenging to recruit for already difficult to fill positions.

The problem here is that the “rationale,” such as it is, misses the point.

Out of approximately 170 boards and commissions in Hawai‘i, there are only six volunteer boards/commissions whose members would be affected by this bill (and for one of those six Boards – the Board of Education – the bill only applies to the Chairperson):

Agribusiness Development Corporation (several of whose members serve ex officio)
Campaign Spending Commission
Hawaii Community Development Authority
Hawaii Housing Finance and Development Corporation
Hawaii Tourism Authority
Board of Education (Chairperson only)

Daniel Gluck, executive director of the State Ethics Commission, points out that he is one of the officials who would be subject to the 12-month “no lobbying” provision.

Public Citizen, the nonprofit and nonpartisan public interest organization, says the government-to-lobbyist revolving door threatens the integrity of government in at least three ways.

Public officials may be influenced in official actions by the implicit or explicit promise of a lucrative job in the private sector with an entity seeking a government contract or to shape public policy.

Public officials-turned-lobbyists will have access to lawmakers that is not available to others, access that can be sold to the highest bidder among industries seeking to lobby.

The special access and inside connections to sitting government officials by former officials-turned-lobbyists comes at a hefty price tag, providing wealthy special interests that can afford hiring such revolvers with a powerful means to influence government unavailable to the rest of the public.

If you would like to let the governor that you support integrity in government and HB2124, you can use this email form on the governor’s website, or phone the governor’s office at (808) 586-0034.

Below are the specific positions that would be affected by HB2124.

…the following individuals shall not represent any person or business for a fee or other consideration regarding any legislative or administrative action, as defined in section 97-1, for twelve months after termination from their respective positions:

(1) The governor;

(2) The lieutenant governor;

(3) The administrative director of the State;

(4) The attorney general;

(5) The comptroller;

(6) The chairperson of the board of agriculture;

(7) The director of finance;

(8) The director of business, economic development and tourism;

(9) The director of commerce and consumer affairs;

(10) The adjutant general;

(11) The chairperson of the board of education;

(12) The superintendent of education;

(13) The chairperson of the Hawaiian homes commission;

(14) The director of health;

(15) The director of human resources development;

(16) The director of human services;

(17) The director of labor and industrial relations;

(18) The chairperson of the board of land and natural resources;

(19) The director of public safety;

(20) The director of taxation;

(21) The director of transportation;

(22) The president of the university of Hawaii;

(23) The trustees and the administrator of the office of Hawaiian affairs;

(24) The chief information officer;

(25) The members of the board of directors and the executive director of the agribusiness development corporation;

(26) The members and the executive director of the campaign spending commission;

(27) The members and the executive director of the Hawaii community development authority;

(28) The members of the board of directors and the executive director of the Hawaii housing finance and development corporation;

(29) The members of the board of directors and the president and chief executive officer of the Hawaii tourism authority;

(30) The members and the executive officer of the public utilities commission;

(31) The state auditor;

(32) The director of the legislative reference bureau;

(33) The ombudsman;

(34) The permanent employees of the legislature, other than persons employed in clerical, secretarial, or similar positions;

(35) The administrative director of the courts; and

(36) Every executive director, director, or administrator of a board, authority, or commission listed in section 84-17(d).

State Ethics Commission offers new online complaint process

The Hawaii State Ethics Commission has a new online complaint form available on its website.

Dan Gluck, the commission’s executive director, called attention to it in a comment here this week.

“If you (or anyone else) believe that a state official has abused her/his position or has otherwise violated the Ethics Code, please contact the Ethics Commission,” Gluck wrote.

The commission administers the disclosure requirements of the state ethics and lobbyists laws, and enforces the substantive provisions of both laws.

The state ethics code prohibits public officials and employees from accepting gifts that could be interpreted as intending to influence their official decisions; prohibits disclosure of confidential information, favoritism or abuse of official positions for their own or someone else’s benefit, and conflicts of interest.

The lobbbyists law requires regular disclosure of what is spent on lobbying activities, and prohibits lobbyists from requesting or accepting payment “in any way contingent upon the defeat, enactment, or outcome of any proposed legislative or administrative action.”

Here’s further information that appears on the commission website explaining how to file a complaint.

The Commission enforces the State Ethics Code (Hawaii Revised Statutes chapter 84) and the State Lobbyists Law (Hawaii Revised Statutes chapter 97). The Commission receives and reviews complaints, and conducts confidential investigations concerning potential violations of the law. If appropriate, the Commission may initiate formal charges against individuals and proceed to a contested case hearing in accordance with Hawaii Revised Statutes chapter 91. If a violation is found, the Commission has the authority to levy fines of up to $1,000 per violation, and other penalties may also be imposed.

Complaints that have first-hand information about the wrongdoing – that is, complaints where you have personally witnessed the wrongdoing – are more helpful than reports of potential misconduct that you’ve read about in the newspaper.

There are two ways to alert the State Ethics Commission (“Commission”) about a possible violation of the State Ethics Code or Lobbyists Law:

  • Contact us with a complaint.
    You can complete this form, call us at (808) 587-0460, e-mail us, or send us a letter (1001 Bishop St. #970, Honolulu, HI 96813) alleging a violation of the State Ethics Code or the Lobbyists law – all we need is a brief description of the alleged violation and the name and state position (or organization) of the alleged violator, if known. All complaints are confidential.  Most complaints lodged with the Commission are done through this “informal” method, though you can also file a formal Charge directly with the Commission.
  • File a Charge directly with the Commission. You can file a formal Charge directly with the Commission at any time (within the six-year statute of limitations for State Ethics Code violations and the three-year statute of limitations for Lobbyists Law violations). The process for filing a Charge is set forth in Hawaii Administrative Rules (“HAR”) section 21-5-1. Charges must be signed under oath and may not be anonymous. As described above in #1, the Commission can also issue a Charge itself, usually after someone makes an informal complaint to the Commission and the Commission staff has investigated the matter.

 

It’s time to shine some light on special interests lobbying the Ige administration during this pandemic

The news concerning Hawaii’s attempts to control the spread of Covid-19 is pretty alarming. I’m not talking about the string of days with new cases in the triple digits. I’m talking about the apparently collapse of the bureaucracies entrusted to plan and implement our collective response.

One question prompted by recent reporting on the state’s response to the pandemic is simple. If administration officials aren’t heeding their detailed plan for a controlled and staged reopening of the state’s economy, and they aren’t listening to legislators, who are they listening to?

That’s a tougher question to answer than it should be, because lobbyists are free to ply their trade by steering the policies of the governor and his administration to favor the special interests the lobbyists are paid to represent. The state has a lobbyist law that restricts some activities and requires disclosure, but when it comes to lobbying the governor and his administration, under most circumstances the law doesn’t apply.

And that’s a problem.

I’ll try to spell it out.

First, kudos to Civil Beat reporter Stewart Yerton for his recent reporting.

The headline to his story on Monday summed it up pretty well: “The State Has A Plan For When To Reopen Or Reclose. Why Aren’t We Following It?

Nearly three months ago, the Ige administration rolled out its detailed plan for reopening the economy after months of being shut down.

It included detailed conditions that would have to be met in order to justify each successive loosening of community restrictions. Meet these goals, and these sectors can be given more freedom. Then work on the next level of health goals, and we were told we would then, and only then, continue to open up until we got back to a new normal.

What Yerton points out is that the whole scheme has apparently been tossed out the nearest window of the governor’s 5th floor offices, and we’re back to catch-as-catch-can decision-making without reliance on measurable criteria and public metrics to justify changes in policy.

So if they’re not paying attention to the plan, who is the administration listening to? What special interests are cozying up to the governor, his chief of staff, his chosen “economic recovery navigator”, Alan Oshima, and others at the center of administration decision-making?

We don’t know, because current law doesn’t require disclosure of these contacts. I thing that’s a key reason that Civil Beat couldn’t really answer the question about why the detailed plan for the staged safe reopening of the economy has been largely ignored. Those guiding the state’s policy are apparently unable or unwilling to explain the basis for their decisions. And lobbyists aren’t required to make their own disclosure.

The problem is that the state’s lobbyist Law turns a blind eye to lobbying executive branch officials and employees, from the governor on down.

Instead, it’s back to the unregulated Wild West when it comes to lobbyists who are paid to pressure, prod, or cajole the governor and his key staff, health officials, or department administrators involved in decision making.

If lobbyists go the capitol to persuade legislators, they are covered by the lobbyist law. But if they continue up to the 5th floor of the capitol building, where the offices of the governor and lieutenant governor are located, they’re exempt.

Why? Because Hawaii’s lobbyist law unfortunately does not apply to most executive branch lobbying. The law only applies to the executive branch when it is considering the adoption, amendment, or repeal of rules governed by the formal process of Hawaii’s Administrative Procedures Act.

So if you’re not lobbying for or against a rule being processed pursuant to the Administrative Procedures Act, the lobbyist law doesn’t apply.

If lobbbyists are trying to influence the course of the state’s pandemic response to benefit their clients, it doesn’t apply, and lobbyists are free to do their thing behind the closed doors of the governor’s office or state departments without registering or ever being called on to disclose what they are spending, or who is paying the bills.

There’s a big picture here. Lobbying is considered to be constitutionally protected activity because it is a form of petitioning the government for the “redress of grievances,” which is directly protected by the First Amendment.

But although we can’t ban lobbying, we can require disclosure so that the weight of public opinion can intervene when lobbyists’ actions appear to work against the public interest. That disclosure is a large part of what our state lobbyist law requires.

There have been several past attempts to amend the state lobbyist law so that it applies to all lobbyist of the executive branch. So far, these have not been successful.

But perhaps the experience during this pandemic will underscore for legislators the reasons the law needs to be amended, and provide some motivation to bring let a bit of sunshine follow lobbyists when they walk into those offices on the capitol’s fifth floor.

See:

The Silence from the Fifth Floor: Is This the Transparency We Were Promised?” Ililani Media, February 4, 2015

Ian Lind: Lawsuit Exposes Blind Spot in Hawaii Lobbyist Law,” Civil Beat, September 9, 2015.

“Regulating executive branch lobbying”, iLind.net, February 25, 2016.

Ian Lind: Lawsuit Exposes Blind Spot in Hawaii Lobbyist Law, Civil Beat, September 9, 2015.