LIHU‘E — That was fast. The Kaua‘i Board of Ethics spent about 35 minutes on general business matters during its monthly meeting Thursday morning, a sharp departure from marathon three- or four-hour meetings that yielded passionate debate but few tangible
LIHU‘E — That was fast. The Kaua‘i Board of Ethics spent about 35 minutes on general business matters during its monthly meeting Thursday morning, a sharp departure from marathon three- or four-hour meetings that yielded passionate debate but few tangible results throughout 2009.
LIHU‘E — That was fast.
The Kaua‘i Board of Ethics spent about 35 minutes on general business matters during its monthly meeting Thursday morning, a sharp departure from marathon three- or four-hour meetings that yielded passionate debate but few tangible results throughout 2009.
After wrapping up the bulk of its work by a few minutes after 9:30 a.m. in the Liquor Conference Room at the Mo‘ikeha Building in Lihu‘e, the board reviewed nearly 20 disclosure forms for new county commissioners and were scheduled to convene an executive session to approve minutes.
Debate could return in coming months, however, as the board formally scheduled a public hearing on March 11 to allow the public to weigh in on a proposed interpretive rule for conflicts of interest defined under Charter Section 20.02D, which bars county officials from appearing on behalf of private interests before county boards, commissions and agencies.
The interpretive rule, as currently written, would define key terms in 20.02D, most notably carving out an exemption for those who represent organizations that primarily serve “eleemosynary” (charitable) purposes. Churches, political parties and othre 501(c)(3) nonprofits would not be exempt.
The board briefly mentioned Thursday the possibility of adding language that would ensure 20.02D applies to those who are financially compensated by their private interest even if that organization is otherwise exempted because being paid by an organization funded, at least in part, by county coffers could constitute a potential conflict of interest.
An example of such a scenario would be former board member Judy Lenthall, executive director for — and paid a salary by — the Kaua‘i Food Bank, an organization that feeds the hungry and would presumably qualify as “eleemosynary,” but also can thank the Kaua‘i County Council for a portion of its funding.
Lenthall was among three county volunteers finally cleared of wrongdoing in January after nearly a year of wrangling re-ignited when former board member Rolf Bieber filed complaints against them for appearing before county agencies in apparent violation of 20.02D. Board Vice Chair Mark Hubbard was also given a pass.
In March 2003, the Hawai‘i State Ethics Commission told Sen. Les Ihara (D-Kapahulu, Kaimuki, Palolo) that serving even as an uncompensated director of a non-profit corporation does create a “financial interest” because the Hawai‘i Revised Statutes define that term to include directorship in a “business,” and define business to include a corporation, whether operated for profit or not.
“The term ‘financial interest’ pertains, of course, to having an actual monetary interest in a business, and so forth, but also includes situations where one is not receiving actual compensation or monetary gain, but the ‘interest’ in the matter is so strong as to reasonably have a possible effect upon one’s decision-making as a state official,” states the letter, provided unsolicited by Ihara to The Garden Island. It also identifies fiduciary responsibilities and the potential for a lawsuit as financial interests not generally considered by the general public.
“While such service may appear to be merely the providing of volunteer services as a good citizen, in reality, under the law, there are substantial and real financial interests that a member of the board of directors of a non-profit corporation has, whether the individual is compensated or not,” the letter concludes.
Neither the letter nor the State Code of Ethics — HRS Section 84 — upon which it relies mention the word “eleemosynary,” and the code uses the term “charitable” only in a very different context, saying gifts received by public officials can be returned or delivered to a charitable organization within 30 days without the donation being claimed for tax purposes.
Bieber — who expressed desire to remain on the board when his term expired after the December 2009 meeting but was replaced by Mayor Bernard Carvalho in the interest of “balance,” according to Bieber — was in attendance Thursday.
He told The Garden Island following the meeting that he hopes the board excludes itself from any carve-out exemption from 20.02D as it serves a “quasi-judicial” role in the county government and should hold itself to higher standards. He said the sacrifice of not being able to represent private interests comes with the power of being a board member.
All seven members were in attendance, with newly appointed Warren Perry — brother of Police Chief Darryl Perry — joining his colleagues for the first time. Perry, a practicing attorney who was in court and missed the January meeting, voiced his support for a successful proposal to move board meetings from Thursdays to Fridays for the final nine months of the 2010 calendar, beginning in April.
The board also deferred action on a proposed ordinance relating to 20.02D and Section 3-1.7 of the County Code that it could recommend to the Kaua‘i County Council until after next month’s public hearing and further movement on the proposed interpretive rule.
