REPORT TITLE:
Hawaii Environmental Authority


DESCRIPTION:
Provides for the Hawaii environmental authority to oversee the
State's environmental protection policies. (SD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        953
THE SENATE                              S.B. NO.           S.D. 2
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
 

 
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 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 counties.
 
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
 

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

 
 
 
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 1           representatives;
 
 2      (4)  At least six of the ten public voting members shall
 
 3           have knowledge, experience, and expertise in the area
 
 4           of environmental management, protection, and promotion;
 
 5      (5)  The governor shall make appointments to ensure the
 
 6           fulfillment of all requirements;
 
 7      (6)  The chairperson of the board of land and natural
 
 8           resources, or a designated representative, shall be an
 
 9           ex officio voting member;
 
10      (7)  The director of health, or a designated representative,
 
11           shall be an ex officio nonvoting member; and
 
12      (8)  The governor shall appoint a public nonvoting member.
 
13      (c)  The public members shall be appointed by the governor
 
14 for terms of four years, except that the terms of an equal number
 
15 of members first appointed shall be for two and four years,
 
16 respectively, as designated by the governor at the time of
 
17 appointment.  Each public member shall hold office until the
 
18 member's successor is appointed and qualified.
 
19      (d)  The board shall elect a chairperson from among the
 
20 voting members.  The chairperson of the board of land and natural
 
21 resources shall not be chairperson of the board.
 
22      (e)  Six voting members shall constitute a quorum, whose
 

 
 
 
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 1 affirmative vote shall be necessary for all actions by the
 
 2 authority.  The members shall serve without compensation, but
 
 3 shall be reimbursed for expenses, including traveling expenses,
 
 4 necessary for the performance of their duties.
 
 5      (f)  The board shall appoint an executive director, exempt
 
 6 from chapters 76 and 77, who shall oversee the authority staff,
 
 7 and shall be compensated at a salary level set by the governor.
 
 8      (g)  The authority may employ persons not subject to
 
 9 chapters 76, 77, and 78 to perform and execute the functions of
 
10 the authority.
 
11      §    -3 Powers.  Except as otherwise limited by this
 
12 chapter, the board may:
 
13      (1)  Sue and be sued;
 
14      (2)  Have a seal and alter the same at pleasure;
 
15      (3)  Make and execute contracts and all other instruments
 
16           necessary or convenient for the exercise of its powers
 
17           and functions under this chapter; provided that the
 
18           authority may enter into contracts and agreements for a
 
19           period of up to five years;
 
20      (4)  Make and alter bylaws for its organization and internal
 
21           management;
 
22      (5)  Adopt rules in accordance with chapter 91 with respect
 

 
 
 
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 1           to its projects, operations, properties, and
 
 2           facilities;
 
 3      (6)  Through its executive director, represent the authority
 
 4           in communications with the governor and with the
 
 5           legislature;
 
 6      (7)  Through its executive director, appoint officers,
 
 7           agents and employees, prescribe their duties and
 
 8           qualifications, and fix their salaries, without regard
 
 9           to chapters 76, 77, and 78;
 
10      (8)  Through its executive director, purchase supplies,
 
11           equipment, or furniture;
 
12      (9)  Through its executive director, allocate the space or
 
13           spaces which are to be occupied by the authority and
 
14           appropriate staff;
 
15     (10)  Engage the services of qualified persons to implement
 
16           the State's environmental protection and management
 
17           plan or portions thereof as determined by the board;
 
18     (11)  Engage the services of consultants on a contractual
 
19           basis for rendering professional and technical
 
20           assistance and advice;
 
21     (12)  Procure insurance against any loss in connection with
 
22           its property and other assets and operations in such
 

 
 
 
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 1           amounts from insurers that it deems desirable;
 
 2     (13)  Contract for, and accept gifts or grants in any form
 
 3           from any public agency or any other source;
 
 4     (14)  Create a vision and develop a long-range plan for
 
 5           environmental protection in Hawaii, including the
 
 6           preservation and enhancement of natural and cultural
 
 7           resources, and management and maintenance issues;
 
 8     (15)  Develop, coordinate, and implement state policies and
 
 9           directions for environmental protection and related
 
10           activities taking into account the economic, social,
 
11           and physical impacts of tourism on the State;
 
12     (16)  Develop and implement the state environmental strategic
 
13           plan, which shall be updated every three years, to
 
14           protect and market the State as a desirable visitor
 
15           destination;
 
16     (17)  Have a permanent, strong focus on protecting and
 
17           preserving the environment;
 
18     (18)  Conduct market development-related research as
 
19           necessary;
 
20     (19)  Coordinate all agencies and advise the private sector
 
21           in the development of environmental protection-related
 
22           activities and resources;
 

 
 
 
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 1     (20)  Work to eliminate or reduce barriers to environmental
 
 2           protection in order to provide a positive and
 
 3           competitive business environment, including
 
 4           coordinating with the department of health on issues
 
 5           affecting degradation of the environment and impacts
 
 6           from development;
 
 7     (21)  Market and promote environmental activities and events;
 
 8     (22)  Coordinate the development of new products with the
 
 9           public and private sectors, including the development
 
10           of bioremediation, culture, health, education, and eco-
 
11           tourism;
 
12     (23)  Establish a public information and educational program
 
13           to inform the public of environment and environment-
 
14           related problems;
 
15     (24)  Encourage the development of environmental educational,
 
16           training, and career counseling programs;
 
17     (25)  Establish a program to monitor, investigate, and
 
18           respond to complaints about problems resulting directly
 
19           or indirectly from the environmental impacts of the
 
20           tourism industry and taking appropriate action as
 
21           necessary; and
 
22     (26)  Do any and all things necessary to carry out its
 

 
 
 
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 1           purposes and exercise the powers given and granted in
 
 2           this chapter.
 
 3      §    -4 Meetings of the board.  (a)  The meetings of the
 
 4 board shall be open to the public as provided in section 92-3,
 
 5 except that when it is necessary for the board to receive
 
 6 information that is proprietary to a particular enterprise or the
 
 7 disclosure of which might be harmful to the business interests of
 
 8 the enterprise, the board may enter into an executive meeting
 
 9 that is closed to the public.
 
10      (b)  The board shall be subject to the procedural
 
11 requirements of section 92-4, and this authorization shall be in
 
12 addition to the exceptions listed in section 92-5, to enable the
 
13 board to respect the proprietary requirements of enterprises with
 
14 which it has business dealings.
 
15      §    -5  Exemption of Hawaii environmental authority from
 
16 administrative supervision of boards and commissions.
 
17 Notwithstanding any law to the contrary, the authority shall be
 
18 exempt from section 26-35 with the exception of section 26-35(2),
 
19 (3), (7), and (8).
 
20      §    -6 Environmental protection plan; measures of
 
21 effectiveness.(a)  The authority shall be responsible for
 
22 developing a strategic environmental protection plan which shall
 

 
 
 
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 1 be updated every three years, that includes the following:
 
 2      (1)  Identification and evaluation of current and future
 
 3           priorities for natural, cultural, and physical
 
 4           resources that need environmental protection for the
 
 5           different regions of the State;
 
 6      (2)  Goals and objectives in accordance with identified
 
 7           needs;
 
 8      (3)  Statewide management and protection efforts and
 
 9           programs;
 
10      (4)  Targeted areas of the State;
 
11      (5)  Efforts to enter into environmental awareness projects
 
12           that make effective use of cooperative advertising
 
13           programs;
 
14      (6)  Measures of effectiveness for the authority's
 
15           promotional programs; and
 
16      (7)  Coordination of awareness plans of all similar
 
17           organizations receiving state funding prior to
 
18           finalization of the authority's environmental
 
19           protection plan.
 
20      (b)  In accordance with subsection (a), the authority shall
 
21 be responsible for developing measures of effectiveness to assess
 
22 the overall benefits and effectiveness of the environmental
 

 
 
 
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 1 protection plan and shall include documentation of the benefits
 
 2 of the plan directly attributable to the following:
 
 3      (1)  Hawaii's tourism industry;
 
 4      (2)  Employment in Hawaii;
 
 5      (3)  State taxes; and
 
 6      (4)  The State's lesser known and underutilized
 
 7           destinations.
 
 8      §    -7  Environment-related activities.(a)  The authority
 
 9 may enter into contracts and agreements that include the
 
10 following:
 
11      (1)  Environmental protection, management, and maintenance;
 
12      (2)  Environment-related research;
 
13      (3)  Environmental enhancement and protection and
 
14           acquisition of open space;
 
15      (4)  Promotion, development, and coordination of
 
16           environment-related activities and events;
 
17      (5)  Reduction of barriers to protecting the environment;
 
18      (6)  Environmental public information and educational
 
19           programs;
 
20      (7)  Programs to monitor and investigate complaints about
 
21           the problems resulting from the environmental
 
22           protection industry in the State; and
 

 
 
 
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 1      (8)  Any and all other activities necessary to carry out the
 
 2           intent of this chapter.
 
 3      (b)  The authority staff shall be responsible for monitoring
 
 4 and facilitating any and all functions developed in accordance
 
 5 with subsection (a).
 
 6     PART II.  ENVIRONMENTAL SPECIAL FUND; EXEMPTIONS; REPORTS
 
 7      §    -11  Environmental special fund.(a)  There is
 
 8 established in the state treasury the environmental special fund,
 
 9 into which shall be deposited:
 
10      (1)  Appropriations by the legislature to the environmental
 
11           special fund; and
 
12      (2)  Gifts, grants, and other funds accepted by the
 
13           authority.
 
14      (b)  Moneys in the environmental special fund may be placed
 
15 in interest-bearing accounts or otherwise invested by the
 
16 authority until a time that the moneys may be needed.  All
 
17 interest accruing from the investment of these moneys shall be
 
18 credited to the environmental special fund.
 
19      (c)  Moneys in the environmental special fund shall be used
 
20 by the authority for the purposes of this chapter; provided that
 
21 not more than three per cent of this amount shall be used for
 
22 administrative expenses; provided further that of this amount the
 

 
 
 
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 1 sum of $15,000 shall be made available for a protocol fund to be
 
 2 expended at the discretion of the executive director; provided
 
 3 further that moneys in the environmental special fund shall be
 
 4 used for the salaries and expenses of the office of environmental
 
 5 quality control established in section 341-3.
 
 6      §    -12  Exemption of authority from taxation and Hawaii
 
 7 public procurement code.(a)  All revenues and receipts derived
 
 8 by the authority from any project or a project agreement or other
 
 9 agreement pertaining thereto shall be exempt from all state
 
10 taxation.  Any right, title, and interest of the authority in any
 
11 project shall also be exempt from all state taxation.  Except as
 
12 otherwise provided by law, the interest of a qualified person or
 
13 other user of a project or a project agreement or other
 
14 agreements related to a project shall not be exempt from taxation
 
15 to a greater extent than it would be if the costs of the project
 
16 were directly financed by the qualified person or user.
 
17      (b)  The authority shall not be subject to chapter 103D and
 
18 any and all other requirements of law for competitive bidding for
 
19 project agreements, construction contracts, lease and sublease
 
20 agreements, or other contracts unless a project agreement with
 
21 respect to a project otherwise shall require.
 
22      §    -13  Assistance by state and county agencies.  Any
 

 
 
 
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 1 state or county agency may render services upon request of the
 
 2 authority.
 
 3      §    -14  Declaration of public function, purpose, and
 
 4 necessity.  The powers and functions granted to and exercised by
 
 5 the Hawaii environmental authority under this chapter are
 
 6 declared to be public and governmental functions, exercised for a
 
 7 public purpose, and matters of public necessity.
 
 8      §    -15  Court proceedings; preferences; venue.  Any action
 
 9 or proceeding to which the authority, the State, or the county
 
10 may be a party, in which any question arises as to the validity
 
11 of this chapter, shall be preferred over all other civil cases,
 
12 except election cases, in any court of this State and shall be
 
13 heard and determined in preference to all other civil cases
 
14 pending therein except election cases, irrespective of position
 
15 on the calendar.  The same preference shall be granted upon
 
16 application of counsel to the authority in any action or
 
17 proceeding questioning the validity of this chapter in which the
 
18 authority may be allowed to intervene.  In addition to the
 
19 preference provided in this section, any action or proceeding to
 
20 which the authority, the State, or the county may be party, in
 
21 which any question arises as to the validity of this chapter or
 
22 any portion of this chapter, or any action of the authority may
 

 
 
 
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 1 be filed in the supreme court of the State, which court is hereby
 
 2 vested with original jurisdiction over the action.
 
 3 Notwithstanding any provision of law to the contrary, declaratory
 
 4 relief from the supreme court may be obtained for any action.
 
 5      §    -16  Annual report.  The authority shall submit a
 
 6 complete and detailed report of its activities, expenditures, and
 
 7 results to the governor and the legislature at least twenty days
 
 8 prior to the convening of each regular session of the
 
 9 legislature."
 
10      SECTION 3.  Chapter 341, Hawaii Revised Statutes, is amended
 
11 by adding a new section to be appropriately designated and to
 
12 read as follows:
 
13      "§341-     Hawaii environmental authority.  Beginning
 
14 January 1, 2000, the office of environmental quality control
 
15 shall provide assistance to the Hawaii environmental authority
 
16 established in section     -2."
 
17      SECTION 4.  Section 36-27, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "§36-27  Transfers from special funds for central service
 
20 expenses.  Except as provided in this section, and
 
21 notwithstanding any other law to the contrary, from time to time
 
22 the director of finance, for the purpose of defraying the
 

 
 
 
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 1 prorated estimate of central service expenses of government in
 
 2 relation to all special funds, except the:
 
 3      (1)  Special summer school and intersession fund under
 
 4           section 302A-1310;
 
 5      (2)  School cafeteria special funds of the department of
 
 6           education;
 
 7      (3)  Special funds of the University of Hawaii;
 
 8      (4)  State educational facilities improvement special fund;
 
 9      (5)  Convention center capital special fund under section
 
10           206X-10.5 and the convention center operations special
 
11           fund under section 206X-10.6;
 
12      (6)  Special funds established by section 206E-6;
 
13      (7)  Housing loan program revenue bond special fund;
 
14      (8)  Housing project bond special fund;
 
15      (9)  Aloha Tower fund created by section 206J-17;
 
16     (10)  Domestic violence prevention special fund under section
 
17           321-1.3;
 
18     (11)  Spouse and child abuse special account under section
 
19           346-7.5;
 
20     (12)  Spouse and child abuse special account under section
 
21           601-3.6;
 
22     (13)  Funds of the employees' retirement system created by
 

 
 
 
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 1           section 88-109;
 
 2     (14)  Unemployment compensation fund established under
 
 3           section 383-121;
 
 4     (15)  Hawaii hurricane relief fund established under chapter
 
 5           431P;
 
 6     (16)  Hawaii health systems corporation special funds;
 
 7     (17)  Boiler and elevator safety revolving fund established
 
 8           under section 397-5.5;
 
 9     (18)  Tourism special fund established under section
 
10           [[]201B-11[]]; [and]
 
11     (19)  Department of commerce and consumer affairs' special
 
12           funds; and
 
13     (20)  Environmental special fund established under section
 
14              -11;
 
15 shall deduct five per cent of all receipts of all other special
 
16 funds, which deduction shall be transferred to the general fund
 
17 of the State and become general realizations of the State.  All
 
18 officers of the State and other persons having power to allocate
 
19 or disburse any special funds shall cooperate with the director
 
20 in effecting these transfers.  To determine the proper revenue
 
21 base upon which the central service assessment is to be
 
22 calculated, the director shall adopt rules pursuant to chapter 91
 

 
 
 
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 1 for the purpose of suspending or limiting the application of the
 
 2 central service assessment of any fund.  No later than twenty
 
 3 days prior to the convening of each regular session of the
 
 4 legislature, the director shall report all central service
 
 5 assessments made during the preceding fiscal year."
 
 6      SECTION 5.  Section 36-30, Hawaii Revised Statutes, is
 
 7 amended by amending subsection (a) to read as follows:
 
 8      "§36-30  Special fund reimbursements for departmental
 
 9 administrative expenses.(a)  Each special fund, except the:
 
10      (1)  Transportation use special fund established by section
 
11           261D-1;
 
12      (2)  Special summer school and intersession fund under
 
13           section 302A-1310;
 
14      (3)  School cafeteria special funds of the department of
 
15           education;
 
16      (4)  Special funds of the University of Hawaii;
 
17      (5)  State educational facilities improvement special fund;
 
18      (6)  Special funds established by section 206E-6;
 
19      (7)  Aloha Tower fund created by section 206J-17;
 
20      (8)  Domestic violence prevention special fund under section
 
21           321-1.3;
 
22      (9)  Spouse and child abuse special account under section
 

 
 
 
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 1           346-7.5;
 
 2     (10)  Spouse and child abuse special account under section
 
 3           601-3.6;
 
 4     (11)  Funds of the employees' retirement system created by
 
 5           section 88-109;
 
 6     (12)  Unemployment compensation fund established under
 
 7           section 383-121;
 
 8     (13)  Hawaii hurricane relief fund established under chapter
 
 9           431P;
 
10     (14)  Convention center capital special fund established
 
11           under section 206X-10.5 and the convention center
 
12           operations special fund established under section
 
13           206X-10.6;
 
14     (15)  Hawaii health systems corporation special funds; [and]
 
15     (16)  Tourism special fund established under section
 
16           [[]201B-11[]]; and
 
17     (18)  Environmental special fund established under section
 
18              -11;
 
19 shall be responsible for its pro rata share of the administrative
 
20 expenses incurred by the department responsible for the
 
21 operations supported by the special fund concerned."
 
22      SECTION 6.  Act 216, Session Laws of Hawaii 1997, is amended
 

 
 
 
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 1 by amending section 13 to read as follows:
 
 2      "SECTION 13.  This Act shall take effect on July 1, 1997,
 
 3 and shall be repealed on June 30, 2000; provided that any
 
 4 statutory or session law material in this Act in existence on
 
 5 June 30, 1997, shall be reenacted on July 1, 2000, in the same
 
 6 form in which it existed on June 30, 1997[.]; and provided
 
 7 further that amendments made to sections 36-27 and 36-30, Hawaii
 
 8 Revised Statutes, by Act    , Session Laws of Hawaii 1999, shall
 
 9 be retained."
 
10      SECTION 7.  Act 142, Session Laws of Hawaii 1998, is amended
 
11 by amending section 9 to read as follows:
 
12      "SECTION 9.  This Act shall take effect upon its approval
 
13 and shall be repealed on July 31, 2003, except that section 3 of
 
14 this Act shall not be repealed; provided that sections 36-27 and
 
15 397-5(b), Hawaii Revised Statutes, shall be reenacted in the form
 
16 in which they read on the day before the approval of this Act[.];
 
17 provided further that amendments made to section 36-27, Hawaii
 
18 Revised Statutes, by section 2 of Act    , Session Laws of Hawaii
 
19 1999, shall be retained."
 
20      SECTION 8.  In printing this Act, the revisor of statutes
 
21 shall insert the appropriate number of this Act in sections 5 and
 
22 6 of this Act.
 

 
 
 
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 1      SECTION 9.  Statutory material to be repealed is bracketed.
 
 2 New statutory material is underscored.
 
 3      SECTION 10.  This Act shall take effect upon its approval.