HB2166

PART I

SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

hawaii environmental protection agency

§ -1 Hawaii environmental protection agency; established. (a) The Hawaii environmental protection agency shall be established within the department of land and natural resources. The agency shall be headed by a single executive to be known as the director of environmental protection.

(b) The agency shall be responsible for exercising regulatory functions and coordinating responsibilities to manage the State's environment.

(c) The following responsibilities are transferred to, and placed under the administration of, the Hawaii environmental protection agency as established by this chapter:

(1) Environmental response law (chapter 128D);

(2) Hawaii pesticides law (chapter 149A);

(3) Solid waste (chapter 340A);

(4) Wastewater treatment personnel (chapter 340B);

(5) Safe drinking water (chapter 340E);

(6) Hawaii law for mandatory certification of public water system operators (chapter 340F);

(7) Environmental quality control (chapter 341);

(8) Air pollution control (chapter 342B);

(9) Water pollution (chapter 342D);

(10) Nonpoint source pollution management and control (chapter 342E);

(11) Integrated solid waste management (chapter 342G);

(12) Solid waste pollution (chapter 342H);

(13) Special wastes recycling (chapter 342I);

(14) Hazardous waste (chapter 342J);

(15) Underground storage tanks (chapter 342L);

(16) State environmental policy (chapter 344); and

(17) The uniform environmental covenants act (chapter 508C).

§ -2 Hawaii environmental protection agency special fund; established. (a) There is hereby established in the state treasury a special fund known as the Hawaii environmental protection agency special fund, into which shall be deposited:

(1) Appropriations made by the legislature for deposit into the fund;

(2) All contributions from public or private partners; and

(3) All interest earned on or accrued to moneys deposited in the special fund.

(b) Moneys in the Hawaii environmental protection agency special fund shall be administered by the Hawaii environmental protection agency for personnel costs and operating and administrative costs deemed necessary by the agency to fulfill its responsibilities pursuant to section -1."

SECTION 2. (a) By October 1, 2024, the governor shall designate a representative who shall facilitate the Hawaii environmental protection agency's orderly succession to the jurisdiction, powers, functions, rights, benefits, obligations, assets, liabilities, funds, accounts, contracts, and all other things currently held, used, incurred, or performed by the department of agriculture or the chairperson of the board of agriculture and their staff, the department of health or director of health and their staff, and department of business, economic development, and tourism or the director of business, economic development, and tourism and their staff, in administering and exercising the authority and fulfilling the responsibilities authorized or conferred upon these entities by the chapters transferred in section 1 of this Act.

(b) By January 1, 2025, the governor shall appoint a director of environmental protection.

(c) To facilitate the Hawaii environmental protection agency's timely assumption of the agency's authority and responsibilities, the department of agriculture; department of health; department of accounting and general services; department of human resources development; department of business, economic development, and tourism; state procurement office; and any other state department or agency shall, if requested by the Hawaii environmental protection agency, enter into a memorandum of understanding with the Hawaii environmental protection agency to:

(1) Provide administrative support services for the agency pending the transfer of employees to the Hawaii environmental protection agency;

(2) Develop a policy and set of robust procurement procedures that foster accountability, transparency, and oversight of contracts, including compliance with federal procurement requirements;

(3) Assist the Hawaii environmental protection agency with the organization of its human resources development functions, including establishing:

(A) A human resources office; and

(B) The Hawaii environmental protection agency's civil service and civil service positions; and the classification system; merit appeals board; recruitment system; performance appraisal system; and administrative rules, policies, standards and procedures, including internal complaint procedures, adopted to support its civil service;

(4) Assist the Hawaii environmental protection agency in establishing its accounting, budgeting, fund management, and communication and electronic information systems, and creating appropriate interfaces between the agency's accounting, budgeting, fund management, communication, and electronic information systems, and those of other departments and state agencies;

(5) Assist the Hawaii environmental protection agency in identifying the plans and reports that departments and agencies are required to prepare for the governor, legislature, or other state department or agency; determining whether the plans and reports have been prepared and will be transferred to the agency on the transfer completion date; and preparing the plans and reports for the Hawaii environmental protection agency, if they do not exist; and

(6) Expeditiously transfer to, or otherwise facilitate the Hawaii environmental protection agency's acquisition or assumption of, all of the powers, functions, rights, benefits, obligations, assets, funds, accounts, contracts, and other things held, used, incurred, and performed by other departments and agencies and transferred to the agency by section ‑1(c), Hawaii Revised Statutes.

(d) As soon as feasible, the Hawaii environmental protection agency, with the concurrence of the chairperson of the board of agriculture, director of health, director of business, economic development, and tourism, and governor, shall establish the transfer completion date, which shall be no later than December 31, 2026, and shall publish notice of the transfer completion date by:

(1) Publishing the notice in a daily publication of statewide circulation pursuant to section 1-28.5, Hawaii Revised Statutes;

(2) Posting a copy of the notice on an electronic calendar on a website maintained by the State; and

(3) Providing a copy of the notice to the head of every other state department.

SECTION 3. No more than ninety days after the transfer completion date, all appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of agriculture, department of health, and department of business, economic development, and tourism relating to the functions transferred to the Hawaii environmental protection agency shall be transferred with the functions to which they relate.

SECTION 4. (a) All rights, powers, functions, and duties of the department of agriculture, department of health, and department of business, economic development, and tourism that are assigned to the Hawaii environmental protection agency by section -1(c), Hawaii Revised Statutes, are transferred to the Hawaii environmental protection agency.

(b) All employees who occupy civil service positions and whose functions are transferred to the Hawaii environmental protection agency by this Act shall retain their civil service status, whether permanent or temporary. Employees shall be transferred without any loss of salary; seniority (except as prescribed by applicable collective bargaining agreements); retention points; prior service credit; any vacation and sick leave credits previously earned; and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employees possess the minimum qualifications and public employment requirements for the class or position to which transferred or appointed; provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

(c) Any employee who, prior to this Act, is exempt from civil service and is transferred as a consequence of this Act may retain the employee's exempt status, but shall not be appointed to a civil service position as a consequence of this Act. An exempt employee who is transferred by this Act shall not suffer any loss of prior service credit, vacation or sick leave credits previously earned, or other employee benefits or privileges as a consequence of this Act; provided that the employees possess legal and public employment requirements for the position to which transferred or appointed; provided further that subsequent changes in status may be made pursuant to applicable employment and compensation laws. The director of environmental protection may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes.

PART II

SECTION 5. Section 194-2, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) There is established the invasive species council for the special purpose of providing policy level direction, coordination, and planning among state departments, federal agencies, and international and local initiatives for the control and eradication of harmful invasive species infestations throughout the State and for preventing the introduction of other invasive species that may be potentially harmful. The council shall:

(1) Maintain a broad overview of the invasive species problem in the State;

(2) Advise, consult, and coordinate invasive species-related efforts with and between the departments of agriculture, land and natural resources, health, and transportation, as well as state, federal, international, and privately organized programs and policies;

(3) Identify and prioritize each lead agency's organizational and resource shortfalls with respect to invasive species;

(4) After consulting with appropriate state agencies, create and implement a plan that includes the prevention, early detection, rapid response, control, enforcement, and education of the public with respect to invasive species, as well as fashion a mission statement articulating the State's position against invasive species; provided that the appropriate state agencies shall collaborate with the counties and communities to develop and implement a systematic approach to reduce and control coqui frog infestations on public lands that are near or adjacent to communities, and shall provide annual reports on the progress made in achieving this objective;

(5) Coordinate and promote the State's position with respect to federal issues, including:

(A) Quarantine preemption;

(B) International trade agreements that ignore the problem of invasive species in Hawaii;

(D) Whether quarantine of domestic pests arriving from the mainland should be provided by the federal government;

(E) Coordinating efforts with federal agencies to maximize resources and reduce or eliminate system gaps and leaks, including deputizing the United States Department of Agriculture's plant protection and quarantine inspectors to enforce Hawaii's laws;

(F) Promoting the amendment of federal laws as necessary, including the Lacey Act Amendments of 1981, Title 16 United States Code sections 3371-3378; Public Law 97-79, and laws related to inspection of domestic airline passengers, baggage, and cargo; and

(G) Coordinating efforts and issues with the federal Invasive Species Council and its National Invasive Species Management Plan;

(6) Identify and record all invasive species present in the State;

(7) Designate the Hawaii environmental protection agency or department of agriculture[,] or health[~~, or land and natural resources~~] as the lead agency for each function of invasive species control, including prevention, rapid response, eradication, enforcement, and education;

(8) Identify all state, federal, and other moneys expended for the purposes of the invasive species problem in the State;

(9) Identify all federal and private funds available to the State to fight invasive species and advise and assist state departments to acquire these funds;

(10) Advise the governor and legislature on budgetary and other issues regarding invasive species;

(11) Provide annual reports on budgetary and other related issues to the legislature twenty days prior to each regular session;

(12) Include and coordinate with the counties in the fight against invasive species to increase resources and funding and to address county-sponsored activities that involve invasive species;

(13) Review state agency mandates and commercial interests that sometimes call for the maintenance of potentially destructive alien species as resources for sport hunting, aesthetic resources, or other values;

(14) Review the structure of fines and penalties to ensure maximum deterrence for invasive species-related crimes;

(15) Suggest appropriate legislation to improve the State's administration of invasive species programs and policies;

(16) Incorporate and expand upon the department of agriculture's weed risk assessment protocol to the extent appropriate for the council's invasive species control and eradication efforts; and

(17) Perform any other function necessary to effectuate the purposes of this chapter.

(b) The council shall be placed within the [~~department of land and natural resources~~] Hawaii environmental protection agency for administrative purposes only and shall be composed of:

(1) The president of the University of Hawaii, or the president's designated representative;

(2) The director, or the director's designated representative, of each of the following departments:

(A) Business, economic development, and tourism;

(B) Health; [~~and~~]

(D) Environmental protection; and

(3) The chairperson, or the chairperson's designated representative, of each of the following departments:

(A) Agriculture; and

(B) Land and natural resources."

SECTION 6. Section 344-2, Hawaii Revised Statutes, is amended by amending the definition of "agency" to read as follows:

""Agency" means any agency, department, office, board, or commission of the State or county government that is a part of the executive branch of that government."

PART III

SECTION 7. Chapter 149A, Hawaii Revised Statutes, is amended by:

(1) Substituting the phrase "Hawaii environmental protection agency," or a similar term, wherever the phrase "department of agriculture", or a similar term, appears, as the context requires; and

(2) Substituting the phrase "director of environmental protection", or a similar term, wherever the term "chairperson of the board of agriculture", or a similar term, appears, as the context requires.

SECTION 8. (a) The department of agriculture shall be responsible for all obligations incurred by the department in connection with the department's exercise of the authority and performance of the duties and responsibilities conferred upon it and the chairperson of the board of agriculture by chapter 149A, Hawaii Revised Statutes, until the time that the obligations, including any accounts payable, accrued paid time off, debt, capital leases, and other obligations incurred before the transfer completion date, have been assumed by the Hawaii environmental protection agency, which shall not occur prior to the transfer completion date.

(b) All collective bargaining disputes or claims against the department of agriculture grounded in an act or omission, or an event that occurred prior to the transfer completion date, shall remain the responsibility of the department of agriculture.

(c) All liabilities arising out of the Hawaii environmental protection agency's exercise of the authority and performance of the duties and responsibilities conferred upon it and its director by chapter 149A, Hawaii Revised Statutes, after the transfer completion date shall be the responsibility of the Hawaii environmental protection agency.

(d) The assumption by the Hawaii environmental protection agency of any bonds, notes, or other obligations of the department of agriculture shall be subject to the terms and provisions of any certificate, indenture, or resolution securing those bonds, notes, or other obligations.

(e) On the transfer completion date, the Hawaii environmental protection agency shall assume responsibility for all rights, duties, penalties, and proceedings of the department of agriculture pursuant to chapter 149A, Hawaii Revised Statutes, as transferred by this Act.

SECTION 9. All rules, policies, procedures, guidelines, and other materials adopted or developed by the department of agriculture to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the Hawaii environmental protection agency by this Act shall remain in full force and effect on and after the transfer completion date established pursuant to section 2 of this Act, until amended or repealed by the Hawaii environmental protection agency pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the department of agriculture, board of agriculture, or chairperson of the board of agriculture in those rules, policies, procedures, guidelines, and other materials, is amended to refer to the Hawaii environmental protection agency or director of environmental protection, as appropriate.

SECTION 10. All deeds, executive orders, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of agriculture, pursuant to the provisions of the Hawaii Revised Statutes, that are reenacted or made applicable to the Hawaii environmental protection agency by this Act shall remain in full force and effect. On the transfer completion date established pursuant to section 2 of this Act, every reference to the department of agriculture or board of agriculture in those deeds, executive orders, leases, contracts, loans, agreements, permits, or other documents shall be construed as a reference to the Hawaii environmental protection agency.

PART IV

SECTION 11. Chapter 341, Hawaii Revised Statutes, is amended by:

(1) Substituting the phrase "Hawaii environmental protection agency," or a similar term, wherever the phrase "office of planning and sustainable development", or a similar term, appears, as the context requires; and

(2) Substituting the phrase "director of environmental protection", or a similar term, wherever the term "director of the office of planning and sustainable development", or a similar term, appears, as the context requires.

PART V

SECTION 12. Chapters 128D, 340A, 340B, 340E, 340F, 342B, 342D, 342E, 342G, 342H, 342I, 342J, 342L, and 508C, Hawaii Revised Statutes, are amended by:

(1) Substituting the phrase "Hawaii environmental protection agency," or a similar term, wherever the phrase "department of health", or a similar term, appears, as the context requires; and

(2) Substituting the phrase "director of environmental protection", or a similar term, wherever the term "director of health", or a similar term, appears, as the context requires.

SECTION 13. (a) The department of health shall be responsible for all obligations incurred by the department in connection with the department's exercise of the authority and performance of the duties and responsibilities conferred upon it and its director by chapters 128D, 340A, 340B, 340E, 340F, 342B, 342D, 342E, 342G, 342H, 342I, 342J, 342L, and 508C, Hawaii Revised Statutes, until the time that the obligations, including any accounts payable, accrued paid time off, debt, capital leases, and other obligations incurred before the transfer completion date, have been assumed by the Hawaii environmental protection agency, which shall not occur prior to the transfer completion date.

(b) All collective bargaining disputes or claims against the department of health grounded in an act or omission, or an event that occurred prior to the transfer completion date, shall remain the responsibility of the department of health.

(c) All liabilities arising out of the Hawaii environmental protection agency's exercise of the authority and performance of the duties and responsibilities conferred upon it and its director by chapters 128D, 340A, 340B, 340E, 340F, 342B, 342D, 342E, 342G, 342H, 342I, 342J, 342L, and 508C, Hawaii Revised Statutes, after the transfer completion date shall be the responsibility of the Hawaii environmental protection agency.

(d) The assumption by the Hawaii environmental protection agency of any bonds, notes, or other obligations of the department of health shall be subject to the terms and provisions of any certificate, indenture, or resolution securing those bonds, notes, or other obligations.

(e) On the transfer completion date, the Hawaii environmental protection agency shall assume responsibility for all rights, duties, penalties, and proceedings of the department of health pursuant to chapters 128D, 340A, 340B, 340E, 340F, 342B, 342D, 342E, 342G, 342H, 342I, 342J, 342L, and 508C, Hawaii Revised Statutes, as transferred by this Act.

SECTION 14. All rules, policies, procedures, guidelines, and other materials adopted or developed by the department of health to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the Hawaii environmental protection agency by this Act shall remain in full force and effect on and after the transfer completion date established pursuant to section 2 of this Act, until amended or repealed by the Hawaii environmental protection agency pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the department of health and director of health in those rules, policies, procedures, guidelines, and other materials, is amended to refer to the Hawaii environmental protection agency or director of environmental protection, as appropriate.

SECTION 15. All deeds, executive orders, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of health, pursuant to the provisions of the Hawaii Revised Statutes, that are reenacted or made applicable to the Hawaii environmental protection agency by this Act shall remain in full force and effect. On the transfer completion date established pursuant to section 2 of this Act, every reference to the department of health in those deeds, executive orders, leases, contracts, loans, agreements, permits, or other documents shall be construed as a reference to the Hawaii environmental protection agency.

PART VI

SECTION 16. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 to be deposited into the Hawaii environmental protection agency special fund established pursuant to section -2, Hawaii Revised Statutes.

SECTION 17. There is appropriated out of the Hawaii environmental protection agency special fund established pursuant to section -2, Hawaii Revised Statutes, the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 to the Hawaii environmental protection agency for personnel costs and operating and administrative costs deemed necessary by the agency to fulfill its responsibilities pursuant to section -1, Hawaii Revised Statutes.

The sum appropriated shall be expended by the Hawaii environmental protection agency for the purposes of this Act.

SECTION 18. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in H.B. No. , will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. In addition, the appropriation contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $ or per cent. The combined total amount of general fund appropriations contained in only these two Acts will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. The reasons for exceeding the general fund expenditure ceiling are that:

(1) The appropriation made in this Act is necessary to serve the public interest; and

(2) The appropriation made in this Act meets the needs addressed by this Act.

PART VII

SECTION 19. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 20. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 21. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 22. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2166
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII