SB2028

PART I

SECTION 1. The legislature finds that there are multiple state agencies responsible for housing. The existence of multiple separate agencies creates redundancies and bureaucracies that hinder the work of solving Hawaii's housing crisis. The purpose of this Act is to consolidate the Hawaii housing finance and development corporation, Hawaii community development authority, Hawaii public housing authority, and office of planning and sustainable development into a new department of housing.

PART II

SECTION 2. Chapter 26, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§26- Department of housing. (a) The department of housing shall be headed by a single executive to be known as the director of housing.

(b) The department of housing shall:

(1) Be responsible for planning, coordinating, and implementing the provisions of section 226-19;

(2) Strengthen and revitalize communities by promoting affordable housing opportunities;

(3) Work in concert with municipal leaders, public agencies, community groups, local housing authorities, and other housing developers in the planning and development of affordable homeownership and rental housing units;

(4) Provide leadership for all aspects of policy and planning relating to the development, redevelopment, preservation, maintenance, and improvement of housing for individuals and families at all levels of income; and

(5) Oversee compliance with applicable statutes, regulations, and financial assistance agreements for funded activities through long-term program compliance monitoring.

(d) The following are placed in the department of housing for administrative purposes pursuant to section 26-35: Hawaii community development authority; Hawaii housing finance and development corporation; office of planning and sustainable development; Hawaii public housing authority; and any other agencies, boards, and commissions as shall be provided by law."

SECTION 3. Section 26-4, Hawaii Revised Statutes, is amended to read as follows:

"§26-4 Structure of government. Under the supervision of the governor, all executive and administrative offices, departments, and instrumentalities of the state government and their respective functions, powers, and duties shall be allocated among and within the following principal departments that are hereby established:

(1) Department of human resources development (Section 26‑5);

(2) Department of accounting and general services (Section 26-6);

(3) Department of the attorney general (Section 26-7);

(4) Department of budget and finance (Section 26-8);

(5) Department of commerce and consumer affairs (Section 26-9);

(6) Department of taxation (Section 26-10);

(7) University of Hawaii (Section 26-11);

(8) Department of education (Section 26-12);

(9) Department of health (Section 26-13);

(10) Department of human services (Section 26-14);

(11) Department of land and natural resources (Section 26‑15);

(12) Department of agriculture (Section 26-16);

(13) Department of Hawaiian home lands (Section 26-17);

(14) Department of business, economic development, and tourism (Section 26-18);

(15) Department of transportation (Section 26-19);

(16) Department of labor and industrial relations (Section 26-20);

(17) Department of defense (Section 26-21);

(18) Department of corrections and rehabilitation (Section 26-14.6); [~~and~~]

(19) Department of law enforcement (Section 26-14.8)[.]; and

(20) Department of housing (Section 26- )."

SECTION 4. Section 26-14, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) The [~~Hawaii public housing authority and the~~] Hawaii state commission on the status of women [~~are~~] is placed within the department of human services for administrative purposes only."

SECTION 5. Section 26-18, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The following are placed in the department of business, economic development, and tourism for administrative purposes as defined by section 26-35: [~~Hawaii community development authority, Hawaii housing finance and development corporation,~~] Hawaii technology development corporation, natural energy laboratory of Hawaii authority, and any other boards and commissions as shall be provided by law."

SECTION 6. Section 26-52, Hawaii Revised Statutes, is amended to read as follows:

"§26-52 Department heads and executive officers. The salaries of the following state officers shall be as follows:

(1) The salary of the superintendent of education shall be set by the board of education at a rate no greater than $250,000 a year. The superintendent shall be subject to an annual performance evaluation that is in alignment with other employee evaluations within the department of education and are based on outcomes determined by the board of education; provided that nothing shall prohibit the board of education from conditioning a portion of the salary on performance;

(2) The salary of the president of the [~~University~~] university of Hawaii shall be set by the board of regents;

(3) Effective July 1, 2004, the salaries of all department heads or executive officers of the departments of accounting and general services, agriculture, attorney general, budget and finance, business, economic development, and tourism, commerce and consumer affairs, corrections and rehabilitation, Hawaiian home lands, health, housing, human resources development, human services, labor and industrial relations, land and natural resources, law enforcement, taxation, and transportation shall be as last recommended by the executive salary commission. Effective July 1, 2007, and every six years thereafter, the salaries shall be as last recommended by the commission on salaries pursuant to section 26-56, unless rejected by the legislature; and

(4) The salary of the adjutant general shall be $85,302 a year. Effective July 1, 2007, and every six years thereafter, the salary of the adjutant general shall be as last recommended by the commission on salaries pursuant to section 26-56, unless rejected by the legislature, except that if the state salary is in conflict with the pay and allowance fixed by the tables of the regular Army or Air Force of the United States, the latter shall prevail."

SECTION 7. Section 225M-1, Hawaii Revised Statutes, is amended to read as follows:

"§225M-1 Purpose. The purpose of this chapter is to establish an office of planning and sustainable development to assist the governor; the director of housing; the director of business, economic development, and tourism; the legislature; and state and county agencies in maintaining an overall framework to guide the development of the State through a continuous process of comprehensive, long-range, and strategic planning to meet the physical, economic, and social needs of Hawaii's people, and provide for the wise use of Hawaii's resources in a coordinated, efficient, and economical manner, including the conservation of those natural, environmental, recreational, scenic, historic, and other limited and irreplaceable resources which are required for future generations.

The establishment of an office of planning and sustainable development in the department of [~~business, economic development, and tourism,~~] housing, for administrative purposes, is intended to:

(1) Fix responsibility and accountability to successfully carry out statewide planning programs, policies, and priorities;

(2) Improve the efficiency and effectiveness of the operations of the executive branch; and

(3) Ensure comprehensive planning and coordination to enhance the quality of life of the people of Hawaii."

SECTION 8. Section 356D-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established the Hawaii public housing authority to be placed within the department of [~~human services~~] housing for administrative purposes only. The authority shall be a public body and a body corporate and politic."

SECTION 9. Sections 201H-2, 201H-3, 206E-3, and 225M-2, Hawaii Revised Statutes, are amended by substituting the phrase "department of housing" wherever the phrase "department of business, economic development, and tourism" appears, as the context requires.

SECTION 10. Sections 201H-3, 206E-3, 225M-2, 225M-3, and 225M-4, Hawaii Revised Statutes, are amended by substituting the phrase "director of housing" wherever the phrase "director of business, economic development, and tourism" appears, as the context requires.

SECTION 11. (a) All rights, powers, functions, and duties of the:

(1) Department of business, economic development, and tourism as they pertain to the:

(A) Hawaii housing finance and development corporation pursuant to chapter 201H, Hawaii Revised Statutes;

(B) Hawaii community development authority pursuant to chapter 206E, Hawaii Revised Statutes; and

(2) Department of human services as they pertain to the Hawaii public housing authority pursuant to chapter 356D, Hawaii Revised Statutes,

are transferred to the department of housing.

(b) All officers and employees whose functions are transferred by this Act 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 Act.

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 benefit or privilege as a consequence of this Act, and such 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 transferred or appointed; and provided 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 Act 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 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.

(c) All rules, policies, procedures, guidelines, and other material adopted or developed by the transferred agencies to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of housing by this Act shall remain in full force and effect until amended or repealed by the department of housing pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the department of business, economic development, and tourism and department of human services as they pertain to the transferred agencies in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of housing, as appropriate.

(d) 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 and the department of human services as they pertain to the transferred agencies, pursuant to the provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of housing by this Act shall remain in full force and effect. Effective July 1, 2024, every reference to the department of business, economic development and tourism and the department of human services as they pertain to the transferred agencies in those deeds, leases, contracts, loans, agreements, permits, or other documents shall be construed as a reference to the department of housing.

(e) 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 department of business, economic development and tourism and the department of human services relating to the functions transferred to the department of housing shall be transferred with the functions to which they relate.

SECTION 12. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

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

SECTION 14. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2028
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII