SB1317 HD1

PART I

SECTION 1. The legislature finds that equitable access to high-speed broadband internet is a pressing challenge for the State. The legislature further finds that there is a significant amount of federal funds available to support state broadband initiatives and that some of these programs require matching funds from the State or other non-federal partners. The legislature also finds that the composition of the working group established pursuant to Act 231, Session Laws of Hawaii 2022, should be amended to facilitate its purpose in determining the appropriate governance structure to implement, operate, and maintain broadband infrastructure development in the State.

The purpose of this Act is to:

(1) Transfer the Hawaii broadband and digital equity office from the department of business, economic development, and tourism to the office of the lieutenant governor on a temporary, four-year basis;

(2) Provide the matching funds required to receive federal funds for state broadband initiatives; and

(3) Require the office of the lieutenant governor to convene and chair the working group established pursuant to Act 231, Session Laws of Hawaii 2022.

PART II

SECTION 2. Section 206S-1, Hawaii Revised Statutes, is amended by repealing the definition of "department".

["~~"Department" means the department of business, economic development, and tourism.~~"]

SECTION 3. Section 206S-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established the Hawaii broadband and digital equity office within the [~~department of business, economic development, and tourism.~~] office of the lieutenant governor."

SECTION 4. Section 206S-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The office shall:

(1) Seek input and the widest possible cooperation from public and private agencies and individuals to achieve the purposes of this chapter;

(2) Work closely with and assist the counties in the promotion of coordinated state and county broadband planning;

(3) Encourage every state department, county agency, and other public or private agencies and individuals involved in broadband programs to participate in the activities of the office and incorporate, to the extent feasible, the ideas and suggestions of the participants in the office's comprehensive planning goals;

(4) Monitor the broadband-based development efforts of other states and nations in areas such as business, education, and health;

(5) Advise the [~~department~~] lieutenant governor on other states' best practices involving remote work promotion and policies and strategies related to making affordable broadband services available to every home and business in the State;

(6) Monitor broadband-related activities at the federal level;

(7) Encourage public-private partnerships to increase the deployment and adoption of broadband services and applications;

(8) Monitor regulatory and policy changes for potential impact on broadband deployment and sustainability in the State; and

(9) Advise the [~~director of business, economic development, and tourism~~] lieutenant governor on broadband deployment."

SECTION 5. All rights, powers, functions, and duties of the Hawaii broadband and digital equity office shall be maintained when the office is transferred from the department of business, economic development, and tourism to the office of the lieutenant governor.

All officers and employees whose functions are transferred by this part shall be transferred with their functions and shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this part.

No officer or employee of the State having tenure shall suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefits or privileges as a consequence of this part, and the officer or employee may be transferred or appointed to a civil service position without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which the office or employee is transferred or appointed; and provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

An officer or employee of the State who does not have tenure and who may be transferred or appointed to a civil service position as a consequence of this part shall become a civil service employee without the loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefits or privileges and without the necessity of examination; provided that such officer or employee possesses the minimum qualifications for the position to which the office or employee is transferred or appointed.

If an office or position held by an officer or employee having tenure is abolished, the officer or employee shall not thereby be separated from public employment, but shall remain in the employment of the State with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws of the State as determined by the head of the department or the governor.

SECTION 6. All rules, policies, procedures, guidelines, and other material adopted or developed by the department of business, economic development, and tourism to implement provisions of chapter 206S, Hawaii Revised Statutes, that are reenacted or made applicable to the office of the lieutenant governor by this part shall remain in full force and effect until amended or repealed by the office of the lieutenant governor pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the department of business, economic development, and tourism or the director of business, economic development, and tourism in those rules, policies, procedures, guidelines, and other material is amended to refer to the office of the lieutenant governor or the lieutenant governor, as appropriate.

SECTION 7. All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of business, economic development, and tourism pursuant to the provisions of the Hawaii Revised Statutes, which are reenacted or made applicable to the office of the lieutenant governor by this part, shall remain in full force and effect. Upon the effective date of this part, every reference to the department of business, economic development, and tourism or the director of business, economic development, and tourism therein shall be construed as a reference to the office of the lieutenant governor or the lieutenant governor, as appropriate.

SECTION 8. 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 business, economic development, and tourism relating to the functions of the Hawaii broadband and digital equity office shall be transferred to the office of the lieutenant governor with the functions to which they relate.

PART III

SECTION 9. 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 2023-2024 to provide required matching funds for the implementation of the federal Broadband Equity, Access, and Deployment Program.

The sum appropriated shall be expended by the office of the lieutenant governor for the purposes of this Act; provided that the moneys appropriated by this section shall not lapse at the end of the fiscal year for which the appropriation is made; provided further that all moneys from the appropriation unencumbered as of June 30, 2026, shall lapse as of that date.

SECTION 10. There is appropriated out of the funds received by the State of Hawaii from the Infrastructure Investment and Jobs Act (IIJA), the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 for the implementation of the federal Broadband Equity, Access, and Deployment Program.

The sum appropriated shall be expended by the office of the lieutenant governor for the purposes of this Act.

SECTION 11. 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 2023-2024 and the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 for additional matching fund requirements for federal fund programs related to broadband.

The sums appropriated shall be expended by the office of the lieutenant governor for the purposes of this Act; provided that the moneys appropriated by this section shall not lapse at the end of the fiscal year for which the appropriation is made; provided further that all moneys from the appropriation unencumbered as of June 30, 2026, shall lapse as of that date.

PART IV

SECTION 12. Act 231, Session Laws of Hawaii 2022, section 2, is amended by amending subsections (a) through (c) to read as follows:

"(a) The [~~University of Hawaii and Hawaii broadband and digital equity office~~] office of the lieutenant governor shall [~~jointly~~] convene a working group to determine the appropriate governance structure to implement, operate, and maintain broadband infrastructure development in the State.

(b) The working group shall consist of the following members, or their designees:

(1) The president of the University of Hawaii[~~, who shall serve as co-chair~~];

(2) The strategic broadband coordinator[~~, who shall serve as co-chair~~];

(3) The director of finance;

(4) The director of commerce and consumer affairs;

(5) The comptroller;

(6) The director of business, economic development, and tourism;

(7) The director of health;

(8) The superintendent of education;

(9) The chairperson of the Hawaiian homes commission; [~~and~~]

(10) The mayors of the counties[.]; and

(11) The lieutenant governor, who shall serve as chair.

(c) The [~~co-chairs~~] chair of the working group shall invite the following individuals to become members of the working group:

(1) The governor;

(2) The State's congressional delegation;

(3) Representatives from private sector partners; and

(4) Others as recommended by the working group."

PART V

SECTION 13. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 14. This Act shall take effect on June 30, 3000; provided that:

(1) Parts II and III shall take effect on July 1, 2023; and

(2) On June 30, 2027:

(A) Part II shall be repealed;

(B) Sections 206S-1, 206S-2, and 206S-4, Hawaii Revised Statutes, shall be reenacted in the forms in which they read on the day prior to the effective date of part II; and

(C) The rights, powers, duties, officers, employees, obligations toward employees, rules, policies, procedures, guidelines, materials, deeds, leases, contracts, loans, agreements, permits, appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property of the Hawaii broadband and digital equity office shall be transferred with the office when the office is transferred back to the department of business, economic development, and tourism, in the same manner as described in sections 5 to 8 of this Act.

THE SENATE	S.B. NO.	1317
THIRTY-SECOND LEGISLATURE, 2023		S.D. 3
STATE OF HAWAII		H.D. 1