Boyd v. Hawaii State Ethics Commission.

378 P.3d 934, 138 Haw. 218, 2016 Haw. LEXIS 172
CourtHawaii Supreme Court
DecidedJuly 19, 2016
DocketSCWC-14-0000352
StatusPublished
Cited by5 cases

This text of 378 P.3d 934 (Boyd v. Hawaii State Ethics Commission.) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boyd v. Hawaii State Ethics Commission., 378 P.3d 934, 138 Haw. 218, 2016 Haw. LEXIS 172 (haw 2016).

Opinion

Opinion of the Court by

POLLACK, J.

This case addresses whether the Hawai'i State Ethics Commission (Commission) had authority to adjudicate proceedings against a charter school employee for conduct that occurred in 2006 and 2007 involving alleged conflict of interest violations of the code of ethics contained in Chapter 84 of the Hawai'i Revised Statutes (HRS). We conclude that HRS § 84-14 (1993), prescribing a code of conduct related to conflicts of interests for State employees, and HRS Chapter 302B (Supp.2006 & 2007) (repealed 2012), encompassing comprehensive provisions that provided for charter schools to establish conflict of interest policies and procedures, resulted in conflicting statutory regimes for charter school employees as to standards of conduct involving conflicts of interests. In light of the inconsistency between these State laws, we hold that, in accordance with HRS § 302B-9(a) (Supp.2006 & 2007) (repealed 2012), charter school employees were exempt from HRS § 84-14 at the relevant time period in this case. Accordingly, the Commission did not have the authority to adjudicate proceedings against William Boyd, a charter school employee, for alleged violations of HRS § 84-14 that occurred in 2006 and 2007. We therefore vacate the judgments of the Intermediate Court of Appeals (ICA) and the Circuit Court of the Third Circuit (circuit court) and the order of the Commission that sustained the violations against Boyd, and we remand the case to the Commission with instructions to dismiss the case.

I. BACKGROUND

At the time of the alleged ethics violations in this case, Connections New Century Public Charter School (Connections) was governed by HRS Chapter 302B, which set forth comprehensive legislation authorizing flexibility and independent authority to charter schools in implementing alternative frameworks with respect to personnel management and the day-to-day functioning of a charter school. 1 See HRS § 302B-1 (Supp.2006 & 2007) (repealed 2012). Charter schools, such as Connections, operated independently and separately from public schools under Chapter 302B but were linked to the State Department of Education and Board of Education primarily for administrative purposes. See, e.g., HRS § 302B-8 (Supp.2006 & 2007) (repealed 2012) (stating the charter school administrative office shall be attached to the Department of Education “for administrative purposes only”); HRS § 302B-15 (Supp.2006 & 2007) (repealed 2012) (setting forth the responsibilities of the Department of Education with respect to charter schools and special education services at charter schools).

*220 Connections’ Local School Board, comprised mainly of community representatives, served as Connections’ centralized governing authority responsible for the administration of the school. See HRS § 302B-7(a), (c) (Supp.2006 & 2007) (repealed 2012). The Local School Board was in charge of financial oversight and decision-making regarding State general funds and federal funds allocated to the school as well as the hiring and firing of charter school employees. See id According to Connections’ Principal John Thatcher, the Local School Board essentially directed him as to how he should manage the school.

A. Connections’ Internal Policies and Procedures

During the pertinent time period in this case, Connections, with the assistance of its hired auditors, developed and followed its own internal checks-and-balances procedures with respect to procuring school supplies, materials, and other equipment. The purchasing procedure incorporated the use of a purchase order form that Connections’ administrators had developed. The purchase order form required the following information: (1) the name and title of the individual making the request (requestor); (2) the name, address, and telephone number of the individual or entity from whom the materials could be purchased (vendor); (3) the school materials desired, including the quantity and pricing; and (4) the name(s) and title(s) of the individual(s) approving the request.

Any employee of Connections could make a request by listing the vendor’s information on the purchasing form and then submitting the form to an authorized school official for approval. The approval process included reviewing the information on the form, checking the school’s inventory to ensure that the school did not have the requested materials, and checking with vendors to find the best prices for the requested materials. Principal Thatcher was required to approve all purchase requests. When Principal Thatcher was not available to give his approval, William Boyd or Sandra Kelley, as administrative officials at Connections, were authorized to preliminarily approve purchase orders in order to enable expedited purchases, but all preliminary approvals were subject to final approval by Principal Thatcher. If the purchase involved Title 1 funds, the purchase also required review and approval by the Title 1 Coordinator. 2 Additionally, Principal Thatcher explained that the Local School Board, through its finance committee, could review his final approval of the purchase order requests.

As an employee of Connections, Boyd was also authorized to submit purchase order requests. On several occasions during the 2006-2007 school year, Boyd prepared, signed as requestor, or preliminarily approved various purchase order forms for requested school materials. With respect to a handful of forms, Boyd listed his wife, Erika Boyd (Mrs. Boyd), as the requestor and/or the vendor. On two of the forms, Principal Thatcher approved the purchase order by signing his name under the heading “Approved.” On all the other forms, Boyd preliminarily approved the request, usually at the direction of Principal Thatcher, and then Principal Thatcher later reviewed and authorized the order by initialing the form. For some of the purchase order forms in which Mrs. Boyd was listed as the vendor, a Connections’ teacher was the requestor, and Boyd preliminarily approved the order. The school materials listed on the forms at issue were sold to Connections through Mrs. Boyd and fulfilled by an Amway distributorship co-owned by Boyd and his wife (Amway Business). 3

When asked whether it was a concern that Mrs.

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Bluebook (online)
378 P.3d 934, 138 Haw. 218, 2016 Haw. LEXIS 172, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boyd-v-hawaii-state-ethics-commission-haw-2016.