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The Honolulu Advertiser
Updated at 11:49 a.m., Wednesday, February 4, 2009

Bill aims to tighten financial disclosure rules on Maui

By ILIMA LOOMIS,
The Maui News

WAILUKU — While the county Board of Ethics ponders its response to council member Wayne Nishiki's tardy filing of a financial disclosure, the situation seems to have led some to propose tightening the rules for candidates filing the form, The Maui News reported today.

Sen. Roz Baker, who represents West and South Maui residents, introduced a bill that would require state candidates to file the disclosure at the same time they file their nomination papers — making it a requirement before they could officially be accepted as candidates and have their names added to the ballot.

At the county level, council member Mike Victorino said he is considering introducing similar legislation.

Baker said she was inspired to make her proposal after reading a letter to the editor in The Maui News questioning the placement of Nishiki's name on the ballot if he hadn't yet filed his financial disclosure. The writer suggested candidates be required to file before they could run.

"I thought, 'Well, that makes sense,' " Baker said.

Nishiki did not comment on Baker's proposal, noting it would apply only to candidates for state office.

But he said he planned to introduce a bill to the County Council to resolve "inconsistencies" in filing requirements.

Candidates are required to file financial disclosures with both the Board of Ethics and the County Clerk.

The Maui County Code tells candidates to file with the County Clerk, while the Board of Ethics rules tell candidates to file an original statement with the Board of Ethics, and a copy with the County Clerk, he noted.

"If you take a look at these laws, you'd see that they are inconsistent and unclear," Nishiki said in a statement sent via e-mail.

Currently, candidates are required to file a disclosure of their personal financial interests, including income, investments, debts and other information, within 15 days of filing their nomination papers.

Nishiki missed that deadline and did not file until Oct. 16, after six phone reminders and a written warning from the Board of Ethics.

He was the only candidate who failed to file the disclosure before the first special election in September. And because the board did not review his form until its next scheduled meeting, its contents were not revealed until after the Nov. 4 second special election.

While he filed the form with the Board of Ethics, Nishiki did not file it with the County Clerk, where it would have been available for public review immediately.

On the form, Nishiki reported that he owed $100,000 to development firm Dowling Co. for a personal loan he received in 2005. He has since told the Board of Ethics that he has not made any payments on the loan, but intends to pay it back.

The Board of Ethics has been discussing how to respond to Nishiki's situation. But its deliberations are on hold while it takes steps to obtain outside legal advice.

Baker's bill, S.B. 59, was accepted by the Senate at first reading, and has been referred to the Judiciary and Government Operations Committee. She said she would ask the county councils for all Hawaii counties to adopt similar rules.

"It's in the spirit of openness and transparency," she said.

Victorino said he planned to introduce "almost identical" legislation to the Maui County Council covering filing deadlines for county candidates.

"I think we need that on the county level," he said. "I'm very concerned to see that financial disclosures are true and done on a timely basis."

Victorino said his legislation wasn't meant to target any individual, but said Nishiki's situation helped illustrate a need to tighten existing laws.

Wailuku attorney Anthony Ranken, a past member and chairman of the Board of Ethics, who has testified before the board on the Nishiki situation, said requiring candidates to file financial disclosures alongside their nomination papers made sense.

"It certainly would overcome any inequities in how different people might get treated in the process, and it would allow voters to have the information right off the bat," he said.

It would also save county staffers the burden of "baby-sitting" late candidates and reminding them to file the form, he added.

The legislation should simplify the filing process by eliminating the requirement for candidates to file in two places, Ranken said. Candidates should simply be required to file the financial disclosure with the County Clerk as part of the package of nomination papers they submit to officially launch their campaigns.

"It's a cumbersome process right now," he said. "There's unnecessary work for the candidate, and it's somewhat confusing."

While the state and county review laws covering disclosure deadlines, Ranken said the state Campaign Spending Commission should require prompter and more frequent filing by candidates on campaign donations.

Some of Nishiki's supporters have complained that his council opponent, Don Couch, received a wave of last-minute donations that, under current spending commission deadlines, weren't required to be filed before the Nov. 4 election.

"Those are two equally important pieces of information that voters need," Ranken said, referring to candidates' personal finances and campaign contributions.

* Ilima Loomis can be reached at iloomis@mauinews.com.