Thursday, March 5, 1998



Legislature '98


Control of Sunshine Law
may move to Legislature

Most say legislative command
would help remove any existing
perception of conflict

By Pat Omandam
Star-Bulletin

Placing the state Office of Information Practices under legislative control and giving it authority over state open-meeting laws has government watchdogs saying the mix is a good match.

Jean Aoki, president of the League of Women Voters of Hawaii, said a Senate bill that administratively moves the office to the Legislature helps remove any perception of conflict of interest that may exist with the attorney general's office, which currently handles complaints regarding open-meeting laws.

"For the public, knowing exactly where they can direct their inquiries and concerns about what is exempt from the Sunshine Law, and even knowing that there is an agency that will help them, would be most helpful," Aoki said in written testimony.

The Senate Ways and Means Committee yesterday received mostly favorable testimony on Senate Bill 2983, SD 1, although the attorney general's office said the measure is not needed.

The bill originally was intended to disperse functions of the Office of Information Practices to the attorney general and county corporation counsels, but the Senate Consumer Protection Committee last month rewrote and forwarded it.

The Senate money committee will vote on the amended measure today.

Information Practices Director Moya Davenport Gray yesterday said callers must deal with two state agencies when they have questions and complaints about open records and meetings.

Davenport Gray said the bill helps the public without any additional costs and builds public trust in government.

While the transfer would create additional work for the office, she said she will not ask for additional positions.

"Moving the OIP to the legislative branch of government does much to alleviate the perception that government operates behind closed doors," Davenport Gray said.

Larry Meacham of Common Cause Hawaii said the office has been active in getting agencies to release many files and records the public is entitled to see.

The Legislature has a good record of being independent and impartial through the work of the legislative auditor, the state Ethics Commission and the Legislative Research Bureau, he said in written testimony.

"Without OIP to advocate for open records and open meetings, the tendency will be to shut out the public," Meacham said.

"Bureaucrats will make worse decisions, make more mistakes and waste more money because of lack of public input."

In a Feb. 13 committee report on the bill, Senate Consumer Protection Chairmen David Ige (D, Pearl City) and Wayne Metcalf (D, South Hilo-Puna) said a conflict of interest may exist when the attorney general is called upon to enforce the open-meetings law and to defend a state agency.

But Deputy Attorney General Charlene Aina yesterday said additional oversight to ensure compliance with open-meeting or sunshine laws is not needed.

As the state's legal officer, the attorney general wears two hats, advising state agencies and officials on legal issues while also ensuring they comply with state law, Aina said.

"By the state's constitution and statutes, these are consistent, not conflicting, responsibilities," she said.

To move or not to move OIP?

PROS

The public currently must deal with two state agencies when they have questions and complaints about open records and meetings.

The move would help the public without any additional costs and would build public trust in government.

Some claim a conflict of interest may exist when the attorney general is called upon to enforce the open-meetings law and to defend a state agency.

CONS

Additional oversight is unnecessary because the attorney general wears two hats, advising on legal issues while ensuring compliance with state law. But Deputy Attorney General Charlene Aina calls the duties "consistent, not conflicting, responsibilities."


Panel considers tax stamp
on every pack of cigarettes

By Pat Omandam
Star-Bulletin

Tobacco products made on Indian reservations on the mainland as well as those from local military bases are finding their way to island retailers and residents who want to avoid paying the state's 80-cents per pack cigarette tax.

That's what some say is happening here, although no one has yet to prove the rumors true.

Richard C. Botti, president of the Hawaii Food Industry Association, told the Senate Ways and Means Committee yesterday declining revenue from cigarettes taxes this year -- down $3 million from a year ago -- can be attributed to illegal containers of cigarettes entering the state for sale on the black market, and not to fewer smokers.

While he doesn't have first-hand knowledge this is occurring, the people he represents say it is.

"What do I tell a retailer when he says people are buying cigarettes cheaper down the street than what he's buying them for?" Botti said.

He and others, like the Tax Foundation of Hawaii, support a Senate bill that requires each package of cigarettes sold within the state to be identified with a tax stamp or meter impression to signify the tax has been paid on that pack.

The state Department of Taxation would administer the stamping.

Senate Bill 2727 states there may be substantial "leakage" of cigarettes into the civilian retail market from military reservations and other sources, both of which could mean substantial losses in cigarette tax revenue.

For example, it says a single bootleg container shipment with 1,000 cases -- or 600,000 packs of cigarettes -- represents a tax loss of $480,000.

The measure also repeals the second phase of the 1997 cigarette tax hike, which would boost the total tax per pack to $1 on July 1st.

The committee heard the bill yesterday but has not voted upon it yet. Opponents attacked both aspects of the bill.

State Tax Director Ray K. Kamikawa said start-up costs for stamps and metering machines will cost at least $10,000, with additional money needed for manpower to enforce the program.

Although every state except Alaska, Hawaii and North Carolina requires cigarette tax stamping, Kamikawa said that's because potential revenue loss from "across-the-border" smuggling, doesn't apply here.

North Carolina doesn't require stamping because its cigarette tax is so low, he said.

Opponents also contend there's no confirmation of cigarette bootlegging here.

"When asked of the particulars, no one can name names," Kamikawa said.

Deputy Health Director William G. Christoffel said conversations with local law enforcement officials, the federal Bureau of Alcohol, Tobacco and Firearms, the Customs Service and representatives of military exchanges confirm there isn't any known large-scale smuggling or black marketing of cigarettes as a result of last year's tax increase.

Donald B. Weisman of the American Heart Association's Hawaii affiliate said the tax hike was a major step toward reducing youth smoking, and wondered how the Legislature could even consider repealing it this year.

But Committee Co-chairwoman Rosalyn Baker (D, West Maui-Lanai) countered that unless there is a stamp mechanism to control cigarettes in Hawaii, there's no way to trace any bootlegging.


LEGISLATURE UPDATE

Legislature '98


A calendar of tomorrow's hearings -- to be held at the state Capitol, 415 S. Beretania St., unless noted:

HOUSE

None scheduled.

SENATE

Judiciary: Decision-making on bills relating to driver's license revocation, civil rights, controlled substances, firearms and ammunition, ethics, the penal code and charitable trusts. No testimony accepted, 9:30 a.m., Room 211.

Economic Development: Decision-making on bill relating to ocean recreation. No testimony accepted, 1 p.m., Room 211.

Judiciary/Human Resources: Joint decision-making on bill relating to job reference liability. No testimony accepted, 1 p.m., Room 225.




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