Executive's role as intern at Legislature questioned

A citizens group is calling for scrutiny of the common practice

A citizens group is calling for an ethics investigation into the long-standing practice of legislators taking on business executives as interns during the legislative session.

Kokua Council President Larry Geller has asked the Ethics Commission to investigate if Mark Forman, Hawaii Medical Service Association Foundation executive administrator, should serve as an intern with state Rep. Bob Herkes.

Herkes, chairman of the House Consumer Protection Committee, handled a bill to require the state insurance commissioner to continue to review health premium rates charged by firms such as HMSA.

Geller charged that Herkes changed the bills to "a form more favorable to the insurance companies."

"The request for investigation does not allege wrongdoing, but does ask for a review," said Geller.

Herkes (D, Volcano-Kainaliu) said he is not in conflict and has avoided using Forman to help with legislation that touches on HMSA.

"He never looked at the regulation bill, and I never gave it to him," Herkes said.

"As far as Mark is concerned, his biggest assignment from me was to find some way to provide medical coverage in rural areas," he said.

Dan Mollway, state Ethics Commission executive director, warned lawmakers in an April 5 memo that because interns are "performing state duties," they are considered to be under the jurisdiction of the state ethics code. The use of interns at the Legislature has been a common practice since at least 1994, Mollway said, noting that the potential for a conflict has been discussed with lawmakers.

"Since interns were subject to the ethics code, under the conflicts of interest provision (they) could not take any action that directly affected their own companies," Mollway said.

Interns, Mollway continued, could not make recommendations or advocate for or against a bill that would directly affect the company they came from.

Also, interns could not represent their company before the Legislature or disclose confidential information gained while working for the company.

"A question has been raised as to whether some interns are in actually 'embedded lobbyists,'" Mollway noted.

Interns could not lobby the Legislature as long as they are interns, he said.

State Sen. Les Ihara (D, Kahala-Kaimuki-Palolo) said the distinction is too difficult for the public to understand, and the Legislature should drop the practice of allowing business executives to help around the office.

"I think the public has reason to distrust embedded interns. I'm not saying they would violate the ethics code, but the man on the street would think so," Ihara said.

Ihara said it is not reasonable to expect someone to suspend loyalty to his or her employer.

Mollway said his office is examining the use of any corporate interns at the Legislature to make sure that the state ethics law is being followed.