Thanks to a new law in Hawaii, the public can examine the financial interests of state lawmakers before elected officials take action on legislation that might personally benefit them.
In the past, the public generally had to wait until the legislative session was over to view lawmakers’ financial disclosure statements. That made it hard to spot potential conflicts of interest and raise objections when it matters most.
But last year the Legislature that moved the filing deadline up four months, from May 31 to Jan. 31, barely two weeks after the 2014 session opened. The session will wrap up May 1.
As of this week, all 76 legislators have submitted their financial disclosure statements, which the Ethics Commission .
Sen. Glenn Wakai’s was the only late one. He mistakenly sent in the short-form version last month, but a more-detailed version is due in even-numbered years.
Wakai sent the long-form version to the Ethics Commission Tuesday and was assessed a $50 late fee.
There are gaps in several lawmakers鈥 disclosure statements, the most notable coming from House Speaker Joe Souki. He left his except for his name and position.
Souki told Civil Beat he may have filled out the form incorrectly but that just one thing has changed from what he reported last year. He said he quit his consulting work for the American Chemistry Council about a year ago when he became the head of the House so as to avoid a potential conflict of interest.
Souki’s work in 2012 for the company, which produces plastics, was brought up as a potential conflict of interest because he was arguing against legislation that would have charged customers a 10-cent fee for single-use checkout bags 鈥 a bill his employer also opposed.
He reported earning between $25,000 and $50,000 from the company in 2012 for consulting services. His also shows his salary as a legislator, income from his realty company and his state pension. In all, he made somewhere between $86,000 and $186,000 in 2012 and the same range in 2013.
Instead of providing an exact figure, disclosure statements allow legislators to choose from ranges of dollar amounts in reporting their salaries or value of their business, property or stocks.
Calvin Say, House speaker at the time, said Souki had no conflict because he was “part of a class of people” affected by the legislation. Lawmakers routinely ask the speaker for guidance on potential conflicts of interest, but it鈥檚 almost always ruled 鈥渘o conflict.鈥
House rules say there is a “conflict of interest” when 鈥渢he legislation affects the member’s direct personal, familial, or financial interest except if the member, or the member’s relative, is part of a class of people affected by the legislation.鈥
The state Ethics Code defines the term like this:
鈥淐onflicts of interests. (a) No employee shall take any official action directly affecting: (1) A business or other undertaking in which he has a substantial financial interest; or (2) A private undertaking in which he is engaged as legal counsel, adviser, consultant, representative, or other agency capacity.鈥
Legislators are exempt from the Ethics Code provision though.
It’s Easy Being Green
Here鈥檚 a sampling of what lawmakers filed this year.
Perhaps unsurprisingly, Sen. Josh Green鈥檚 shows doctors are pretty comfortable financially. He earned between $150,000 and $250,000 last year as an emergency room physician, plus another $100,000 to $150,000 as HIPA鈥檚 medical director.
Green regularly works on bills related to the medical profession. He shares his expertise much as a lawmaker who is a real estate agent might offer advice on land legislation. That’s generally not an issue so long as legislators don’t promote the bills for personal financial benefit.
But this year鈥檚 financial disclosure statements show the real money is in the business world. Sen. Russell Ruderman made last year from , his organic food store on the Big Island.
Sen. Les Ihara, a longtime proponent of ethics reform, reported owning between between him and his wife. Given the Legislature鈥檚 consideration of education initiatives to put iPads in the hands of thousands of public school students, there could be a potential conflict of interest.
Sen. Brian Taniguchi made for the Hawaii Government Employees Association. As lawmakers consider numerous union-related bills, that could be another sensitive area.
Rep. did a little freelance hula work on the side and got paid $1,000 to $10,000 for it.
Vice Speaker John Mizuno isn’t the only one in his family to take home a paycheck from the House of Representatives. His wife, an administrative services manager, working for the House.
Sen. Donovan Dela Cruz received from WCIT Architecture for his work as communications director. The firm has a for the Honolulu rail project. The Legislature is considering making the general excise tax surcharge for rail permanent.
Some lawmakers, such as Sen. Will Espero, reported . There are many who view their elected position as a full-time job, but most have at least one other source of income. State legislators received raises last year, bringing their annual salaries up to $55,896.
If there鈥檚 any candy legislation moving, Sen. Mike Gabbard might be smart to recuse himself. His disclosure report shows he made up to as owner of Hawaiian Toffee Treasures.
Sen. Roz Baker reported from the state Employees鈥 Retirement System, and she鈥檚 not the only one.
Sens. , , , Rep. and others also disclosed retirement income from the state.
There are numerous bills related to the public pension system moving forward this session. , set for a hearing Wednesday afternoon, would reduce the retirement benefits that future employees receive.
The Incomes of Husband and Wives
Rep. Cindy Evans鈥 spouse has stock in International Columbia U.S., a hospital development and operations company, that is worth .
Rep. Beth Fukumoto鈥檚 financial disclosure statement is similar. She earned $55,896 last year as a state legislator, but the bulk of her financial interest is in Chang Holding Company, a real estate and green energy firm owned by her husband. She reported the value of the shares to be worth .
Rep. Richard Onishi鈥檚 spouse made more than $100,000 as vice chancellor of Hawaii Community College and has worth well over $1 million.
Rep. Romy Cachola鈥檚 suggests a joint income for the state rep and his spouse, who works at Cachola Medical Clinic, between $250,000 and $500,000 last year. While other lawmakers provide a range amount for each source of income, Cachola’s has a single range amount for family’s combined salaries.
Rep. Scott Saiki earns more than $100,000 between his work as an attorney and a lawmaker. But it鈥檚 his wife who brings in the big bucks, making between at First American Title Insurance Co.
Sen. David Ige鈥檚 wife brought in of Kanoelani Elementary School. Ige is in charge of the Senate money committee, which shapes how much money public educators are paid.
Pukas and Student Loans
Rep. Rida Cabanilla , which include her salary as a state rep, her military pension, rental properties and president of CDS diagnostic clinic. But she left blank the space where she is supposed to indicate the range of how much she earned from each of those sources.
Rep. Jessica Wooley had too. She disclosed her income as a legislator and that her husband is an attorney for Earthjustice, but not how much money he makes in that position.
Many younger legislators owe thousands of dollars in student loans.
Rep. , an attorney, owes $100,000 to $150,000 to the Department of Education.
Rep. owes $20,000 to $50,000 in student loans and Rep. owes $10,000 to $25,000. They are not alone in student debt.
To view all the financial disclosure statements that lawmakers have filed since 2012, visit the Ethics Commission鈥檚 website .
- Contact Nathan Eagle via email at neagle@civilbeat.com or Twitter at .
GET IN-DEPTH REPORTING ON HAWAII鈥橲 BIGGEST ISSUES
Support Independent, Unbiased News
Civil Beat is a nonprofit, reader-supported newsroom based in 贬补飞补颈驶颈. When you give, your donation is combined with gifts from thousands of your fellow readers, and together you help power the strongest team of investigative journalists in the state.
About the Author
-
Nathan Eagle is a deputy editor for Civil Beat. You can reach him by email at neagle@civilbeat.org or follow him on Twitter at , Facebook and Instagram .