REPORT TITLE:
Hawaii Environmental Authority


DESCRIPTION:
Provides for the Hawaii environmental authority to oversee the
State's environmental protection policies. (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        953
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     A BILL FOR AN ACT

RELATING TO NATURAL AND CULTURAL RESOURCES.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that the visitor industry
 
 2 brings almost seven million visitors into the State every year
 
 3 who are attracted by the environmental, natural, and cultural
 
 4 resources of the State.  The visitor industry accounts for almost
 
 5 twenty-five per cent of the gross state product and provides over
 
 6 thirty per cent of all civilian jobs.  In light of the State's
 
 7 dependence on its environmental, natural, and cultural resources
 
 8 to market tourism, it is important that the protection,
 
 9 management, and maintenance of the resources that support the
 
10 environment are coordinated in the manner consistent with the
 
11 needs of the State.
 
12      The legislature further finds that the governor proposes a
 
13 dedicated source of funding for environmental protection and that
 
14 the visitor industry contribute to this source of funding.  This
 
15 can be accomplished by creating a special fund for environmental
 
16 protection. 
 
17      The purpose of this Act is to implement the governor's
 
18 recommendations to establish an executive board, the Hawaii
 
19 environmental authority, to oversee the State's environmental
 

 
Page 2                                                     953
                                     S.B. NO.           S.D.1
                                                        
                                                        

 
 1 protection policies and strategies and to establish an
 
 2 environmental protection special fund.
 
 3      SECTION 2.  The Hawaii Revised Statutes is amended by adding
 
 4 a new chapter to be appropriately designated and to read as
 
 5 follows:
 
 6                             "CHAPTER
 
 7                  HAWAII ENVIRONMENTAL AUTHORITY
 
 8                    PART I.  GENERAL PROVISIONS
 
 9      § -1 Definitions.  As used in this chapter:
 
10      "Agency" means any agency, department, authority, board,
 
11 commission, the University of Hawaii, or any other unit of the
 
12 State or its political subdivisions.
 
13      "Authority" means the Hawaii environmental authority
 
14 established in section  -2.
 
15      "Board" means the board of directors of the Hawaii
 
16 environmental authority established in section  -2, and any
 
17 successor thereto.
 
18      "Public agency" means any office, department, board,
 
19 commission, bureau, division, public corporation agency, or
 
20 instrumentality of the federal, state, or county government.
 
21      §    -2  Hawaii environmental authority; establishment;
 
22 board; staff.  (a)  There is established the Hawaii environmental
 
23 authority, which shall be a body corporate and a public
 

 
Page 3                                                     953
                                     S.B. NO.           S.D.1
                                                        
                                                        

 
 1 instrumentality of the State, for the purpose of implementing
 
 2 this chapter.  The authority shall be placed within the
 
 3 department of land and natural resources for administrative
 
 4 purposes only.
 
 5      (b)  The authority shall be headed by a board of directors
 
 6 which consists of ten public, voting members, one public,
 
 7 nonvoting member, one ex officio voting member, and one ex
 
 8 officio nonvoting member; provided that:  
 
 9      (1)  The public, voting members shall be appointed by the
 
10           governor as provided in section 26-34, except as
 
11           otherwise provided by law; 
 
12      (2)  The ten public, voting members shall be composed of one
 
13           representative each from the city and county of
 
14           Honolulu and the counties of Hawaii, Kauai, and Maui;
 
15           the remaining public members shall be appointed
 
16           at-large;
 
17      (3)  Of the ten public, voting members, two shall be
 
18           appointed by the governor from a list of three names
 
19           nominated by the president of the senate, and two shall
 
20           be appointed by the governor from a list of three names
 
21           nominated by the speaker of the house of
 
22           representatives; 
 
23      (4)  At least six of the ten public, voting members shall
 

 
Page 4                                                     953
                                     S.B. NO.           S.D.1
                                                        
                                                        

 
 1           have knowledge, experience, and expertise in the area
 
 2           of environmental management, protection, and promotion; 
 
 3      (5)  The governor shall make appointments to ensure the
 
 4           fulfillment of all requirements; 
 
 5      (6)  The chairperson of the board of land and natural
 
 6           resources, or a designated representative, shall be an
 
 7           ex officio voting member; 
 
 8      (7)  The director of health, or a designated representative,
 
 9           shall be an ex officio nonvoting member; and 
 
10      (8)  The governor shall appoint a public, nonvoting member.
 
11      (c)  The public members shall be appointed by the governor
 
12 for terms of four years, except that the terms of the members
 
13 first appointed shall be for two and four years, respectively, as
 
14 designated by the governor at the time of appointment.  Each
 
15 public member shall hold office until the member's successor is
 
16 appointed and qualified.  
 
17      (d)  The board shall elect a chairperson from among the
 
18 voting members.  The chairperson of the board of land and natural
 
19 resources shall not be chairperson of the board.
 
20      (e)  Six voting members shall constitute a quorum, whose
 
21 affirmative vote shall be necessary for all actions by the
 
22 authority.  The members shall serve without compensation, but
 
23 shall be reimbursed for expenses, including traveling expenses,
 

 
Page 5                                                     953
                                     S.B. NO.           S.D.1
                                                        
                                                        

 
 1 necessary for the performance of their duties.
 
 2      (f)  The board shall appoint an executive director, exempt
 
 3 from chapters 76 and 77, who shall oversee the authority staff,
 
 4 and shall be compensated at a salary level set by the governor.
 
 5      (g)  The authority may employ persons not subject to
 
 6 chapters 76, 77, and 78 to perform and execute the functions of
 
 7 the authority.
 
 8      §    -3 Powers.  Except as otherwise limited by this
 
 9 chapter, the board may:
 
10      (1)  Sue and be sued;
 
11      (2)  Have a seal and alter the same at pleasure;
 
12      (3)  Make and execute contracts and all other instruments
 
13           necessary or convenient for the exercise of its powers
 
14           and functions under this chapter; provided that the
 
15           authority may enter into contracts and agreements for a
 
16           period of up to five years;
 
17      (4)  Make and alter bylaws for its organization and internal
 
18           management;
 
19      (5)  Adopt rules in accordance with chapter 91 with respect
 
20           to its projects, operations, properties, and
 
21           facilities;
 
22      (6)  Through its executive director represent the authority
 
23           in communications with the governor and with the
 

 
Page 6                                                     953
                                     S.B. NO.           S.D.1
                                                        
                                                        

 
 1           legislature; 
 
 2      (7)  Through its executive director appoint officers,
 
 3           agents, and employees, prescribe their duties and
 
 4           qualifications, and fix their salaries, without regard
 
 5           to chapters 76, 77, and 78;
 
 6      (8)  Through its executive director purchase supplies,
 
 7           equipment, or furniture; 
 
 8      (9)  Through its executive director allocate the space or
 
 9           spaces which are to be occupied by the authority and
 
10           appropriate staff;
 
11     (10)  Engage the services of qualified persons to implement
 
12           the State's environmental protection and management
 
13           plan or portions thereof as determined by the board;
 
14     (11)  Engage the services of consultants on a contractual
 
15           basis for rendering professional and technical
 
16           assistance and advice;
 
17     (12)  Procure insurance against any loss in connection with
 
18           its property and other assets and operations in such
 
19           amounts from insurers that it deems desirable;
 
20     (13)  Contract for, and accept gifts or grants in any form
 
21           from any public agency or any other source;
 
22     (14)  Create a vision and develop a long range plan for
 
23           environmental protection in Hawaii, including the
 

 
Page 7                                                     953
                                     S.B. NO.           S.D.1
                                                        
                                                        

 
 1           preservation and enhancement of natural and cultural
 
 2           resources, and management and maintenance issues;
 
 3     (15)  Develop, coordinate, and implement state policies and
 
 4           directions for environmental protection and related
 
 5           activities taking into account the economic, social,
 
 6           and physical impacts of tourism on the State;
 
 7     (16)  Develop and implement the state environmental strategic
 
 8           plan, which shall be updated every three years, to
 
 9           protect and market the State as a desirable visitor
 
10           destination;
 
11     (17)  Have a permanent, strong focus on protecting and
 
12           preserving the environment;
 
13     (18)  Conduct market development-related research as
 
14           necessary;
 
15     (19)  Coordinate all agencies and advise the private sector
 
16           in the development of environmental protection-related
 
17           activities and resources;
 
18     (20)  Work to eliminate or reduce barriers to environmental
 
19           protection in order to provide a positive and
 
20           competitive business environment, including
 
21           coordinating with the department of health on issues
 
22           affecting degradation of the environment and impacts
 
23           from development;
 

 
Page 8                                                     953
                                     S.B. NO.           S.D.1
                                                        
                                                        

 
 1     (21)  Market and promote environmental activities and events;
 
 2     (22)  Coordinate the development of new products with the
 
 3           public and private sectors, including, but not limited
 
 4           to, the development of bioremediation, culture, health,
 
 5           education, and eco-tourism;
 
 6     (23)  Establish a public information and educational program
 
 7           to inform the public of environment and environment-
 
 8           related problems;
 
 9     (24)  Encourage the development of environmental educational,
 
10           training, and career counseling programs;
 
11     (25)  Establish a program to monitor, investigate, and
 
12           respond to complaints about problems resulting directly
 
13           or indirectly from the environmental impacts of the
 
14           tourism industry and taking appropriate action as
 
15           necessary; and
 
16     (26)  Do any and all things necessary to carry out its
 
17           purposes and exercise the powers given and granted in
 
18           this chapter.
 
19      §    -4 Meetings of the board.  (a)  The meetings of the
 
20 board shall be open to the public as provided in section 92-3,
 
21 except that when it is necessary for the board to receive
 
22 information that is proprietary to a particular enterprise or the
 
23 disclosure of which might be harmful to the business interests of
 

 
Page 9                                                     953
                                     S.B. NO.           S.D.1
                                                        
                                                        

 
 1 the enterprise, the board may enter into an executive meeting
 
 2 that is closed to the public.
 
 3      (b)  The board shall be subject to the procedural
 
 4 requirements of section 92-4, and this authorization shall be in
 
 5 addition to the exceptions listed in section 92-5, to enable the
 
 6 authority board to respect the proprietary requirements of
 
 7 enterprises with which it has business dealings.
 
 8      §    -5  Exemption of Hawaii environmental authority from
 
 9 administrative supervision of boards and commissions.
 
10 Notwithstanding any law to the contrary, the authority shall be
 
11 exempt from section 26-35 with the exception of section 26-35(2),
 
12 (3), (7), and (8).
 
13      §    -6 Environmental protection plan; measures of
 
14 effectiveness.(a)  The authority shall be responsible for
 
15 developing a strategic environmental protection plan which shall
 
16 be updated every three years, that includes the following:
 
17      (1)  Identification and evaluation of current and future
 
18           priorities for natural, cultural, and physical
 
19           resources that need environmental protection for the
 
20           different regions of the State;
 
21      (2)  Goals and objectives in accordance with identified
 
22           needs;
 
23      (3)  Statewide management and protection efforts and
 

 
Page 10                                                    953
                                     S.B. NO.           S.D.1
                                                        
                                                        

 
 1           programs;
 
 2      (4)  Targeted areas of the State;
 
 3      (5)  Efforts to enter into environmental awareness projects
 
 4           that make effective use of cooperative advertising
 
 5           programs;
 
 6      (6)  Measures of effectiveness for the authority's
 
 7           promotional programs; and
 
 8      (7)  Coordination of awareness plans of all similar
 
 9           organizations receiving state funding prior to
 
10           finalization of the authority's environmental
 
11           protection plan.
 
12      (b)  In accordance with subsection (a), the authority shall
 
13 be responsible for developing measures of effectiveness to assess
 
14 the overall benefits and effectiveness of the environmental
 
15 protection plan and include documentation of the directly
 
16 attributable benefits of the plan to the following:
 
17      (1)  Hawaii's tourism industry;
 
18      (2)  Employment in Hawaii;
 
19      (3)  State taxes; and
 
20      (4)  The State's lesser known and underutilized
 
21           destinations.
 
22      §    -7  Environment-related activities.(a)  The authority
 
23 may enter into contracts and agreements that include the
 

 
Page 11                                                    953
                                     S.B. NO.           S.D.1
                                                        
                                                        

 
 1 following:
 
 2      (1)  Environmental protection, management, and maintenance;
 
 3      (2)  Environment-related research;
 
 4      (3)  Environmental enhancement and protection and
 
 5           acquisition of open space;
 
 6      (4)  Promotion, development, and coordination of
 
 7           environment-related activities and events;
 
 8      (5)  Reduction of barriers to protecting the environment;
 
 9      (6)  Environmental public information and educational
 
10           programs;
 
11      (7)  Programs to monitor and investigate complaints about
 
12           the problems resulting from the environmental
 
13           protection industry in the State; and
 
14      (8)  Any and all other activities necessary to carry out the
 
15           intent of this chapter.
 
16      (b)  The authority staff shall be responsible for monitoring
 
17 and facilitating any and all functions developed in accordance
 
18 with subsection (a).
 
19     PART II.  ENVIRONMENTAL SPECIAL FUND; EXEMPTIONS; REPORTS
 
20      §    -11  Environmental special fund.(a)  There is
 
21 established in the state treasury the environmental special fund,
 
22 into which shall be deposited:
 
23      (1)  Appropriations by the legislature to the environmental
 

 
Page 12                                                    953
                                     S.B. NO.           S.D.1
                                                        
                                                        

 
 1           special fund; and
 
 2      (2)  Gifts, grants, and other funds accepted by the
 
 3           authority.
 
 4      (b)  Moneys in the environmental special fund may be placed
 
 5 in interest-bearing accounts or otherwise invested by the
 
 6 authority until a time that the moneys may be needed.  All
 
 7 interest accruing from the investment of these moneys shall be
 
 8 credited to the environmental special fund.
 
 9      (c)  Moneys in the environmental special fund shall be used
 
10 by the authority for the purposes of this chapter; provided that
 
11 not more than three per cent of this amount shall be used for
 
12 administrative expenses; provided further that of this amount the
 
13 sum of $15,000 shall be made available for a protocol fund to be
 
14 expended at the discretion of the executive director; provided
 
15 further that moneys in the environmental special fund shall be
 
16 used for the salaries and expenses of the office of environmental
 
17 quality control established in section 341-3. 
 
18      §    -12  Exemption of authority from taxation and Hawaii
 
19 public procurement code.(a)  All revenues and receipts derived
 
20 by the authority from any project or a project agreement or other
 
21 agreement pertaining thereto shall be exempt from all state
 
22 taxation.  Any right, title, and interest of the authority in any
 
23 project shall also be exempt from all state taxation.  Except as
 

 
Page 13                                                    953
                                     S.B. NO.           S.D.1
                                                        
                                                        

 
 1 otherwise provided by law, the interest of a qualified person or
 
 2 other user of a project or a project agreement or other
 
 3 agreements related to a project shall not be exempt from taxation
 
 4 to a greater extent than it would be if the costs of the project
 
 5 were directly financed by the qualified person or user.
 
 6      (b)  The authority shall not be subject to chapter 103D and
 
 7 any and all other requirements of law for competitive bidding for
 
 8 project agreements, construction contracts, lease and sublease
 
 9 agreements, or other contracts unless a project agreement with
 
10 respect to a project otherwise shall require.
 
11      §    -13  Assistance by state and county agencies.  Any
 
12 state or county agency may render services upon request of the
 
13 authority.
 
14      §    -14  Declaration of public function, purpose, and
 
15 necessity.  The powers and functions granted to and exercised by
 
16 the Hawaii environmental authority under this chapter are
 
17 declared to be public and governmental functions, exercised for a
 
18 public purpose, and matters of public necessity.
 
19      §    -15  Court proceedings; preferences; venue.  Any action
 
20 or proceeding to which the authority, the State, or the county
 
21 may be a party, in which any question arises as to the validity
 
22 of this chapter, shall be preferred over all other civil cases,
 
23 except election cases, in any court of this State and shall be
 

 
Page 14                                                    953
                                     S.B. NO.           S.D.1
                                                        
                                                        

 
 1 heard and determined in preference to all other civil cases
 
 2 pending therein except election cases, irrespective of position
 
 3 on the calendar.  The same preference shall be granted upon
 
 4 application of counsel to the authority in any action or
 
 5 proceeding questioning the validity of this chapter in which the
 
 6 authority may be allowed to intervene.  In addition to the
 
 7 preference provided in this section, any action or proceeding to
 
 8 which the authority, the State, or the county may be party, in
 
 9 which any question arises as to the validity of this chapter or
 
10 any portion of this chapter, or any action of the authority may
 
11 be filed in the supreme court of the State, which court is hereby
 
12 vested with original jurisdiction over the action.
 
13 Notwithstanding any provision of law to the contrary, declaratory
 
14 relief from the supreme court may be obtained for any action.
 
15      §    -16  Annual report.  The authority shall submit a
 
16 complete and detailed report of its activities, expenditures, and
 
17 results to the governor and the legislature at least twenty days
 
18 prior to the convening of each regular session of the
 
19 legislature."
 
20      SECTION 3.  Chapter 341, Hawaii Revised Statutes, is amended
 
21 by adding a new section to be appropriately designated and to
 
22 read as follows:
 
23      "§341-     Hawaii environmental authority.  For the period
 

 
Page 15                                                    953
                                     S.B. NO.           S.D.1
                                                        
                                                        

 
 1 beginning January 1, 2000, and for each year thereafter, the
 
 2 office of environmental quality control shall provide assistance
 
 3 to the Hawaii environmental authority established in section
 
 4     -2."
 
 5      SECTION 4.  Section 36-27, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "§36-27  Transfers from special funds for central service
 
 8 expenses.  Except as provided in this section, and
 
 9 notwithstanding any other law to the contrary, from time to time
 
10 the director of finance, for the purpose of defraying the
 
11 prorated estimate of central service expenses of government in
 
12 relation to all special funds, except the:
 
13      (1)  Special summer school and intersession fund under
 
14           section 302A-1310;
 
15      (2)  School cafeteria special funds of the department of
 
16           education;
 
17      (3)  Special funds of the University of Hawaii;
 
18      (4)  State educational facilities improvement special fund;
 
19      (5)  Convention center capital special fund under section
 
20           206X-10.5 and the convention center operations special
 
21           fund under section 206X-10.6;
 
22      (6)  Special funds established by section 206E-6;
 
23      (7)  Housing loan program revenue bond special fund;
 

 
Page 16                                                    953
                                     S.B. NO.           S.D.1
                                                        
                                                        

 
 1      (8)  Housing project bond special fund;
 
 2      (9)  Aloha Tower fund created by section 206J-17;
 
 3     (10)  Domestic violence prevention special fund under section
 
 4           321-1.3;
 
 5     (11)  Spouse and child abuse special account under section
 
 6           346-7.5;
 
 7     (12)  Spouse and child abuse special account under section
 
 8           601-3.6;
 
 9     (13)  Funds of the employees' retirement system created by
 
10           section 88-109;
 
11     (14)  Unemployment compensation fund established under
 
12           section 383-121;
 
13     (15)  Hawaii hurricane relief fund established under chapter
 
14           431P;
 
15     (16)  Hawaii health systems corporation special funds;
 
16     (17)  Boiler and elevator safety revolving fund established
 
17           under section 397-5.5;
 
18     (18)  Tourism special fund established under section
 
19           [[]201B-11[]]; [and]
 
20     (19)  Department of commerce and consumer affairs' special
 
21           funds; and
 
22     (20)  Environmental special fund established under section
 
23              -11;
 

 
Page 17                                                    953
                                     S.B. NO.           S.D.1
                                                        
                                                        

 
 1 shall deduct five per cent of all receipts of all other special
 
 2 funds, which deduction shall be transferred to the general fund
 
 3 of the State and become general realizations of the State.  All
 
 4 officers of the State and other persons having power to allocate
 
 5 or disburse any special funds shall cooperate with the director
 
 6 in effecting these transfers.  To determine the proper revenue
 
 7 base upon which the central service assessment is to be
 
 8 calculated, the director shall adopt rules pursuant to chapter 91
 
 9 for the purpose of suspending or limiting the application of the
 
10 central service assessment of any fund.  No later than twenty
 
11 days prior to the convening of each regular session of the
 
12 legislature, the director shall report all central service
 
13 assessments made during the preceding fiscal year."
 
14      SECTION 5.  Section 36-30, Hawaii Revised Statutes, is
 
15 amended by amending subsection (a) to read as follows:
 
16      "§36-30  Special fund reimbursements for departmental
 
17 administrative expenses.(a)  Each special fund, except the:
 
18      (1)  Transportation use special fund established by section
 
19           261D-1;
 
20      (2)  Special summer school and intersession fund under
 
21           section 302A-1310;
 
22      (3)  School cafeteria special funds of the department of
 
23           education;
 

 
Page 18                                                    953
                                     S.B. NO.           S.D.1
                                                        
                                                        

 
 1      (4)  Special funds of the University of Hawaii;
 
 2      (5)  State educational facilities improvement special fund;
 
 3      (6)  Special funds established by section 206E-6;
 
 4      (7)  Aloha Tower fund created by section 206J-17;
 
 5      (8)  Domestic violence prevention special fund under section
 
 6           321-1.3;
 
 7      (9)  Spouse and child abuse special account under section
 
 8           346-7.5;
 
 9     (10)  Spouse and child abuse special account under section
 
10           601-3.6;
 
11     (11)  Funds of the employees' retirement system created by
 
12           section 88-109;
 
13     (12)  Unemployment compensation fund established under
 
14           section 383-121;
 
15     (13)  Hawaii hurricane relief fund established under chapter
 
16           431P;
 
17     (14)  Convention center capital special fund established
 
18           under section 206X-10.5 and the convention center
 
19           operations special fund established under section 206X-
 
20           10.6;
 
21     (15)  Hawaii health systems corporation special funds; [and]
 
22     (16)  Tourism special fund established under section
 
23           [[]201B-11[]]; and
 

 
Page 19                                                    953
                                     S.B. NO.           S.D.1
                                                        
                                                        

 
 1     (18)  Environmental special fund established under section
 
 2              -11;
 
 3 shall be responsible for its pro rata share of the administrative
 
 4 expenses incurred by the department responsible for the
 
 5 operations supported by the special fund concerned."
 
 6      SECTION 6.  Act 216, Session Laws of Hawaii 1997, is amended
 
 7 by amending section 13 to read as follows:
 
 8      "SECTION 13.  This Act shall take effect on July 1, 1997,
 
 9 and shall be repealed on June 30, 2000; provided that any
 
10 statutory or session law material in this Act in existence on
 
11 June 30, 1997, shall be reenacted on July 1, 2000, in the same
 
12 form in which it existed on June 30, 1997[.]; and provided
 
13 further that amendments made to sections 36-27 and 36-30, Hawaii
 
14 Revised Statutes, by Act    , Session Laws of Hawaii 1999, shall
 
15 be retained."
 
16      SECTION 7.  Act 142, Session Laws of Hawaii 1998, is amended
 
17 by amending section 9 to read as follows:
 
18      "SECTION 9.  This Act shall take effect upon its approval
 
19 and shall be repealed on July 31, 2003, except that section 3 of
 
20 this Act shall not be repealed; provided that sections 36-27 and
 
21 397-5(b), Hawaii Revised Statutes, shall be reenacted in the form
 
22 in which they read on the day before the approval of this Act[.];
 
23 provided further that amendments made to section 36-27, Hawaii
 

 
Page 20                                                    953
                                     S.B. NO.           S.D.1
                                                        
                                                        

 
 1 Revised Statutes, by section 2 of Act    , Session Laws of Hawaii
 
 2 1999, shall be retained."
 
 3      SECTION 8.  In printing this Act, the revisor of statutes
 
 4 shall insert the appropriate number of this Act in sections 5 and
 
 5 6 of this Act.
 
 6      SECTION 9.  Statutory material to be repealed is bracketed.
 
 7 New statutory material is underscored.
 
 8      SECTION 10.  This Act shall take effect upon its approval.