Bill opening subcontracts
goes to voteA conference committee approves
the measure to make public state
tourism subcontractsA state House-Senate conference committee has passed a bill that requires the Hawaii Tourism Authority to disclose subcontracts that are paid with state funds, a requirement not imposed on other state agencies.
The law would treat a subcontract like a government record, even if the contract is between two private organizations. But there's a catch. The measure passed by the committee would leave it up the person who is providing the information to the tourism authority to decide whether any information is "proprietary" and can be kept secret.
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The state open-records law does not specifically allow "proprietary" information to be withheld from public review. The law does allow a state agency to keep information confidential to "avoid the frustration of a legitimate government function."
The measure, Senate Bill 41, Conference Draft 1, now heads to the floor where it will await final approval by both houses of the Legislature.
The Hawaii Tourism Authority is a state agency with a $56 million budget to manage growth in the state's No. 1 industry, tourism. The authority, in turn, is paying the Hawaii Visitors & Convention Bureau $33.2 million this year to promote isle tourism. The authority is also paying Philadelphia firm SMG $14 million to market the Hawaii Convention Center through mid-2006.
Under current law, the public has the right to know the amount of a state contract and its length and purpose, with exceptions. The law does not govern subcontracts that are reached by state contractors and are funded with state money, which the new measure would change.
The bill also would require the disclosure of all written information acquired by the authority during the subcontracting process.
Les Kondo, director of the state Office of Information Practices, said he supports the intent of the bill, but disagrees with letting a private entity decide whether information is proprietary. "My concern is who's making the call," Kondo said.
Kondo said he agrees the state should withhold certain proprietary information from the public. He said allowing the secrecy of proprietary information is in line with preventing frustration of state business.
If the proposed bill becomes law, the Legislature should revisit the matter in a future session, Kondo said.
Kondo, appointed by Gov. Linda Lingle, came from the Honolulu law firm Chun & Nagatani, where he dealt with product defect, commercial, construction and insurance coverage litigation, as well as landlord-tenant issues.
