HomeMy WebLinkAboutCOM 0136.000 1998-2000 Board of Ethics
25 Aupuni Street, Rm. 215 Hilo, Hawaii 96720
January 1999
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The Honorable James Y. Arakaki
Chairman and Presiding Officer
Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
Dear Chairman Arakaki:
Re: Transmittal of an Ordinance to Amend the Hawaii County Code Relating to
Financial Disclosures and Disclosures oflnterest
In February 1998, the Board of Ethics asked the Office of the Corporation Counsel whether
the County's Code of Ethics requires the disclosure of any ownership of stock worth $5,000 or more
by officers and employees of the County who are required to file financial disclosure statements with
the Board. A legal opinion dated March 3, 1998 concluded that Hawaii County Code, §2-91.1 (c),
requires the disclosure of any stock held during the disclosure period in any business having a value
of $5,000 or more. A copy of this opinion is attached for your reference.
Hawaii County Charter, § 14-5 (f), states that one of the responsibilities of the Board of
Ethics is to propose revisions to the County of Hawaii's Code of Ethics where such revisions are not
inconsistent with the Charter. Given the current stock market boom and the popularity of owning
publicly held and traded stocks, the Board of Ethics is of the opinion that Hawaii County Code, §2-
91.1 (c), should be amended to require the disclosure of stock ownership only if the stock has a value
of $5,000 or more and is equal to ten percent or more of the ownership of the business. Such an
amendment strikes a balance between insuring that the Board is aware of any signi6oant financial
interest in a business and the privacy interests of officers and employees of the County who are
required to file financial disclosure statements with the Board.
The Board respectfully asks that the County Council consider this amendment to the
County's Code of Ethics.
Sincerely,
BOARD OF ETHICS. COUNTY OF
HAWA,~II / ~i
WARREN CHONG, Ch an
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Iv7tch 3, 1998
Mr. Carl Carlson, Jr.
Chairman, Boazd of Ethics
25 Aupuni Street, Room 215
Hilo, Hawaii 96720
Dear Chairman Cazlson:
Re: Financial Disclosure of Steck Gwnershin
At the last meeting of the $oazd of Ethics on February 11, 1998, you asked whether the
ownership of stock worth 55,000 or more Auld be required to be disclosed on financial
disclosure forms. Item 3 ofthe Board's financial disclosure forth reads as follows "List each
ownership or beneficial interest held in any business having a value of 55,000 or more or equal to
10% of the ownership of the business."
Item 3 has its origin in Hawaii County Code, §2-97.1 (e)(3) which reads as follows:
(c) The disclosure of financial interesu shall state the financial interests of the person
disclosing, whether held in lus name or by any other person for his use and
benefit, and shall include:
(3) The amount and identity of every ownership or beneficial interests [sic]
held during the disclosure period in any business having a value of
$5,000 or more and, if tl)e interest was transferred dtuing the preceding
calendar yeaz, the dah_ of the transfer; provided that an interest in the form
of an account in a Federal or State regulated financial institution, an
interest in the fotrn of a policy in a mutual insurance company, or
individual items m a mutual fund or a blind trust, if the mutual fund or
blind trust ha_s been d~scloscd pursuant to this pazagraph, need not be
disclosed.
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Mr. Carl Cazlson, ]r.
Page 2
March 3, 1998
Although Hawaii County Code, y?-91.1 (c)(3) does not specifically require that the
ownership of any stock must be disclosed, ics use of broad rather than specific language would
lead us to conclude that the Council intender that the ownership of stocks be disclosed. This
conclusion is validated by Hawaii Coun^; Code, §2-91.1 (c)(8), which reads as follows:
(8) On any item which calls for the stating of a dollar amount, this value may be
reported by using an appropriate letter code as follows:
(A) Less than 51,000;
(B) At least 51,000 but ':ess than 510,000;
(C) A[ least $10,000 bu: less than 525,000;
(p) At least $25,000 btr. less than 550,000;
(E) At least $50,000 bu*. less than $100,000;
(F) At ]east $100,000 but less than 3150,000;
(G) More than 5150,000:
An amount of stock ma be re- otted b the number of shares-
(Emphasis added)
Since Hawaii County Code, §?-91 1 (c)(8) makes reference to the disclosure of stock
when it provides that an amount of snick may be reported by the number of shares, we conclude
that the Council intended to include the ownership of stock in the types of financial interesu
which;~be disclosed on the Board's fnancial disclosure statement.
Please contact me if you have any questions.
Sincerely,
RICHARD D. wURDEMAN
Coq oration Counsel
By_
GLEN?' H. SHIIGI
Deput} Corporation Counsel
GHS
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