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Maui County Board of Ethics advances key ethics initiatives as office enters second year

Board offers guidance on nonprofit/government service, spousal financial interests, disclosure of conflicts of interest

The Maui County Board of Ethics took several significant actions at its Aug. 12 meeting to highlight work to strengthen, refine and expand the County’s ethics programs. The board accepted a report and practical guidance concerning County employees and board and commission members serving with nonprofit and governmental organizations that receive County line-item grants, issued an advisory opinion clarifying financial interests arising from a spouse’s employment, and began consideration of a broader conflict-of-interest disclosure process.

The board also completed its first annual evaluation of Executive Director and Legal Counsel Lauren Akitake, assessing her performance across seven criteria including leadership, work with board members, major work duties, staff supervision, planning and priorities and overall performance. Board Chair Michael Lilly said Akitake was rated “outstanding” in each area and exceeded expectations in establishing and guiding the new office during its first year.

The Aug. 12 board actions mark the transition from the office’s first year of establishing its operations to its second year of strengthening and expanding the County’s ethics programs.

Guidance on nonprofit and governmental service

The board accepted a Permitted Interaction Group report providing recommendations and guidance on when County employees and board and commission members may serve with nonprofit organizations or governmental entities that receive noncompetitive, line-item County grants.

The report recommends clarifying that the term “firm” in Charter provision § 10-4.3 does not apply to nonprofit organizations or governmental entities. The guidance addresses situations such as County employees serving on nonprofit boards that receive County funding, and nonprofit leaders serving on County boards or commissions, and notes that such service does not, by itself, violate § 10-4.3. The guidance does not change the other ethics requirements employees and board and commission members must follow, including restrictions on using their County positions or resources to benefit affiliated organizations and requirements to disclose and recuse when appropriate.

The Board will make the related administrative rule changes later this year.

Advisory opinion clarifies spousal financial interests

The Board issued Advisory Opinion No. 26A-44 clarifying when a County officer or employee may have a conflict of interest because of a spouse’s employment.

Under the County’s ethics rules, a spouse’s financial interest is considered the employee’s financial interest.  However, that does not automatically require the employee to recuse themselves. The key question is whether the particular government action is one in which the officer or employee has a direct or indirect financial interest. The opinion provides practical guidance for employees and officers in determining when a spouse’s employment may create a conflict in a particular matter.

Board explores conflict-of-interest disclosure

The board began considering whether Maui County should establish a broader conflict-of-interest disclosure process for County employees. The board reviewed Maui County’s current requirements and compared them with the City and County of Honolulu’s system with Laurie Wong Rezentes, associate legal counsel with the Honolulu Ethics Commission.

The board directed the office to continue discussions with County departments and officials and return with recommendations. No decision has been made to establish a new disclosure system.

First-year accomplishments

Since opening Aug. 1, 2025, the office has established its operations, transitioned ethics functions from the Department of the Corporation Counsel, updated administrative rules, expanded staffing and increased access to timely ethics guidance.

The office also advanced initiatives involving lobbyist regulation, anti-nepotism, conflicts of interest, gift rules and the use of County resources for non-County purposes.

During its first year, the office provided more than 180 informal advisory opinions, received 48 complaints, reviewed hundreds of financial disclosure statements, administered lobbyist registrations and terminations, and provided ethics training and practical resources to help the public and County employees better understand and apply the Ethics Code.

Looking ahead to Year Two

The office enters its second year with several major initiatives underway, including work with the County Council on comprehensive lobbyist regulations, countywide anti-nepotism standards and a proposal to extend the statute of limitations for ethics violations from one year to six years. The board will also continue reviewing gift rules and other areas of the Ethics Code that may need clarification or updates.

Other Year Two priorities include strengthening complaint and investigative processes, improving advisory opinion and financial disclosure procedures, enhancing lobbyist registration and administration, and developing additional public guidance and resources.

Ethics education will remain a major focus, with expanded online and written resources, training for County departments and boards and commissions, and in-person ethics training being offered to new employees starting  in October.

The Maui County Board of Ethics was established to administer and enforce the County’s Code of Ethics and provide guidance to County officers, employees, boards and commissions. For more information, visit www.mauicounty.gov/boardofethics.

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