STAND. COM. REP. NO. 1440

Honolulu, Hawaii

RE: H.B. No. 365

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Housing, to which was referred H.B. No. 365, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII PUBLIC HOUSING AUTHORITY,"

begs leave to report as follows:

The purpose and intent of this measure is to repeal the exemption of the Hawaii Public Housing Authority (HPHA) from certain administrative supervision by its board of directors regarding personnel matters.

Your Committee received testimony in opposition to this measure from the Hawaii Public Housing Authority and Department of Human Services.

Your Committee finds that existing law exempts HPHA from section 26-35(a)(4), Hawaii Revised Statutes (HRS), which allows for an independent Board of Directors, where each members' vote is of equal weight. The exemption allows HPHA to bypass the Director of Human Services' approval for personnel related issues. Repealing the exemption will hold HPHA accountable to the Director of Human Services in regard to the employment, appointment, promotion, transfer, demotion, discharge, and job descriptions of all officers and employees under HPHA.

Your Committee notes the concern of HPHA of the potential damaging and unintended consequences of repealing the exemption from section 26-35(a)(4), HRS. Your Committee further notes that HPHA stated in its testimony that the exemption ensures that HPHA is compliant with all United States Department of Housing and Urban Development laws, rules, regulations, and guidance relating to public housing authorities across the nation.

Your Committee also notes the concerns from the Department of Human Services that repealing the exemption from section 26‑35(a)(4), HRS, would in essence make the Director of Human Services the Chairperson of the Board of Directors of HPHA, in potential conflict with section 356D-3, HRS, which provides that the Director of Human Services, or a designated representative, shall be an ex officio voting member of the Board of Directors and that the Director of Human Services shall be ineligible to serve as Chairperson of the Board.

Your Committee has amended this measure by inserting an effective date of July 1, 2075, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 365, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 365, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Housing,

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STANLEY CHANG, Chair