REPORT TITLE:
Ethics; University of Hawaii


DESCRIPTION:
Provides that collaborative projects between the University of
Hawaii faculty and private entities, the participation by
university personnel in private startup enterprises, and the
allocation of intellectual property developed at the university
are not precluded under the state ethics code.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2068 
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO ETHICS. 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 84-14, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "�84-14  Conflicts of interests.(a)  No employee shall
 
 4 take any official action directly affecting:
 
 5      (1)  A business or other undertaking in which he has a
 
 6           substantial financial interest; or
 
 7      (2)  A private undertaking in which he is engaged as legal
 
 8           counsel, advisor, consultant, representative, or other
 
 9           agency capacity.
 
10      A department head who is unable to disqualify himself on any
 
11 matter described in [items] paragraphs (1) and (2) [above] will
 
12 not be in violation of this subsection if he has complied with
 
13 the disclosure requirements of section 84-17; and
 
14      A person whose position on a board, commission, or committee
 
15 is mandated by statute, resolution, or executive order to have
 
16 particular qualifications shall only be prohibited from taking
 
17 official action that directly and specifically affects a business
 
18 or undertaking in which he has a substantial financial interest;
 
19 provided that the substantial financial interest is related to
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 the member's particular qualifications.
 
 2      (b)  No employee shall acquire financial interests in any
 
 3 business or other undertaking which he has reason to believe may
 
 4 be directly involved in official action to be taken by him.
 
 5      (c)  No legislator or employee shall assist any person or
 
 6 business or act in a representative capacity before any state or
 
 7 county agency for a contingent compensation in any transaction
 
 8 involving the State.
 
 9      (d)  No legislator or employee shall assist any person or
 
10 business or act in a representative capacity for a fee or other
 
11 compensation to secure passage of a bill or to obtain a contract,
 
12 claim, or other transaction or proposal in which he has
 
13 participated or will participate as a legislator or employee, nor
 
14 shall he assist any person or business or act in a representative
 
15 capacity for a fee or other compensation on such bill, contract,
 
16 claim, or other transaction or proposal before the legislature or
 
17 agency of which he is an employee or legislator.
 
18      (e)  No employee shall assist any person or business or act
 
19 in a representative capacity before a state or county agency for
 
20 a fee or other consideration on any bill, contract, claim, or
 
21 other transaction or proposal involving official action by the
 
22 agency if he has official authority over that state or county
 
23 agency unless he has complied with the disclosure requirements of
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 section 84-17. 
 
 2      (f)  Nothing in this chapter shall be construed to bar or
 
 3 impede:
 
 4      (1)  Collaboration or joint projects between University of
 
 5           Hawaii faculty, departments, or institutes, and private
 
 6           entities for the purpose of basic or applied research,
 
 7           notwithstanding the sharing of expenses between the
 
 8           public and private entities, that participants may have
 
 9           or develop interests otherwise barred by this chapter,
 
10           or that the private entities or sponsors may measurably
 
11           benefit from the collaboration; provided that the
 
12           collaboration or joint project is subject to periodic
 
13           review by the University of Hawaii for compliance with
 
14           the fiscal and academic standards adopted or agreed to
 
15           by the board of regents; and provided further that the
 
16           result of the research are published without undue
 
17           delay;
 
18      (2)  The participation of University of Hawaii personnel in
 
19           startup enterprises of a private nature,
 
20           notwithstanding that the personnel may have or develop
 
21           interests otherwise barred by this chapter; provided
 
22           that the participation is first declared by the
 
23           personnel to the University of Hawaii in a manner
 

 
Page 4                                                     2068 
                                     H.B. NO.           
                                                        
                                                        

 
 1           satisfactory to the board of regents; and provided
 
 2           further that the participation in any startup
 
 3           enterprise shall not exceed a period of two years;
 
 4      (3)  The allocation of intellectual property developed at
 
 5           the University of Hawaii; provided that the allocation
 
 6           is consonant with applicable contractual obligations or
 
 7           board of regents rules.
 
 8 This subsection shall be liberally construed to facilitate the
 
 9 participation of the University of Hawaii in projects and
 
10 programs potentially conducive to the economic advancement of the
 
11 people of the State in the manner of peer institutions of higher
 
12 education.  Any provision to the contrary notwithstanding,
 
13 University of Hawaii compliance with or use of federal standards,
 
14 procedures, or forms in areas of academic endeavor to which they
 
15 apply shall be lawful and shall satisfy the requirements of this
 
16 chapter."
 
17      SECTION 2.  Statutory material to be repealed is bracketed.
 
18 New statutory material is underscored.
 
19      SECTION 3.  This Act shall take effect upon its approval.
 
20 
 
21                              INTRODUCED BY:______________________