SB2764

SECTION 1. Section 8-5, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) There shall be a commission to be known as the King Kamehameha celebration commission placed within the department of [~~accounting and general services~~] business, economic development, and tourism for administrative purposes. The commission shall consist of fifteen members to be appointed by the governor in the manner provided by section 26-34. The appointments shall be made from the following organizations, with one member from each organization:

(1) Royal Order of Kamehameha I;

(2) ʻAhahui Kaʻahumanu;

(3) Hale O Nā Aliʻi O Hawaiʻi ʻAhahui Poʻo;

(4) Daughters and Sons of Hawaiian Warriors Māmakakaua;

(5) Kamehameha Schools Alumni Association;

(6) Association of Hawaiian Civic Clubs;

(7) Waimānalo Hawaiian Homes Association;

(8) Daughters of Hawaii;

(9) Kapahulu Music Club; and

(10) Papakōlea Community Association.

Each organization shall maintain a certificate of good standing issued by the department of commerce and consumer affairs and an active membership list. Each organization may recommend for appointment to the commission persons capable of providing administrative guidance to the commission with regard to knowledge of Hawaiian culture, history and protocols, legal issues, business, accounting, marketing, philanthropy, or public relations.

In addition, the governor shall appoint one member to the commission from each of the following islands: Kauaʻi, Lānaʻi, Maui, Molokaʻi, and Hawaiʻi. Each of these members shall be a resident of the respective island that the member represents. The governor shall appoint persons capable of providing administrative guidance with regard to legal issues, business, accounting, marketing, philanthropy, or public relations."

2. By amending subsections (c) and (d) to read:

"(c) The members of the King Kamehameha celebration commission shall serve without compensation, but shall be entitled to reimbursement for travel and necessary expenses while attending meetings and while in discharge of their duties. The [~~comptroller~~] director of business, economic development, and tourism shall reimburse the members of the King Kamehameha celebration commission for all necessary expenses incurred during the discharge of their duties.

(d) The commission may appoint and dismiss an arts program specialist and a part-time clerk typist, without regard to chapter 76, who shall serve at the commission's pleasure, and whose salaries shall be provided through fees, public contributions, and private donations. The commission, by majority vote, shall appoint an executive director who shall be familiar with the people and culture of Hawai`i, and shall serve without regard to chapter 76 for a term to be determined by the commission. Except for matters undertaken by the [~~comptroller~~] director of business, economic development, and tourism pursuant to subsection (f), the executive director shall be responsible for all fiscal and administrative matters, including securing public contributions and private foundation grants or donations. The executive director shall also be responsible for developing and administering programs as the commission may direct. The executive director may be removed for cause at any time by a two-thirds vote of all commission members."

3. By amending subsection (f) to read:

"(f) The [~~comptroller~~] director of business, economic development, and tourism shall account for all moneys appropriated by the legislature, may raise funds to defray administrative costs, and may accept donations of money and personal property on behalf of the commission; provided that all donations accepted from private sources shall be expended in the manner prescribed by the contributor, and all moneys received from all sources shall be deposited into the commission's trust account."

SECTION 2. Section 9-2, Hawaii Revised Statutes, is amended to read as follows:

"§9-2 Establishment of foundation. (a) There is hereby created a state foundation on culture and the arts, which shall be placed within the department of [~~accounting and general services~~] business, economic development, and tourism for administrative purposes.

[(b) The foundation shall be governed by a policymaking and oversight commission to be known as the state foundation on culture and the arts commission. The commission shall be composed of eleven members, nine of whom shall be voting members appointed and removed by the governor pursuant to section 26-34, and two of whom shall be ex officio, nonvoting members.

~~The governor shall appoint voting members who:~~

~~(1)~~ ~~By reason of education or extensive experience, are generally recognized as having demonstrated accomplishment or expertise in the fields of culture, the arts, history, and the humanities; and~~

~~(2)~~ ~~Are familiar with the people and cultures of Hawaii.~~

Further, the governor shall ensure that, of the voting members appointed, at least one member has a background or experience in each of the following: the needs of public educators; neighbor island communities; native Hawaiian culture and diversity; and urban design and infrastructure.

~~The chair of the senate and house of representatives standing committees with primary jurisdiction over culture and the arts shall serve as the two ex officio, nonvoting members of the commission.~~

The term of each voting member shall be for four years, commencing on July 1 and expiring on June 30; provided that for terms commencing on or after July 1, 1999, the governor shall appoint at least one member who resides in the county of Hawaii, one member who resides in the county of Kauai, and one member who resides in the county of Maui.

The governor shall appoint the chairperson of the commission from among its voting members. The members of the commission shall serve without compensation, but shall be reimbursed for travel and other necessary expenses in the performance of their official duties.

~~(c)~~] (b) The [~~commission~~] governor shall appoint an executive director of the foundation, by and with the advice and consent of the senate, who shall:

(1) Serve as the foundation's chief executive officer;

(2) Be responsible for developing and administering the foundation's programs under the commission's direction;

(3) Serve on a part-time or full-time basis;

(4) Be a person who, by reason of education or extensive experience, is generally recognized as being professionally qualified in the administration of programs in the fields of culture, the arts, history, and the humanities;

(5) Be familiar with the people and cultures of Hawaii;

(6) Be exempt from chapter 76; and

(7) Select necessary additional staff pursuant to chapter 76, within available appropriations."

SECTION 3. Section 26-6, Hawaii Revised Statutes, is amended to read as follows:

"§26-6 Department of accounting and general services. (a) The department of accounting and general services shall be headed by a single executive to be known as the comptroller.

(b) The department shall:

(1) Preaudit and conduct after-the-fact audits of the financial accounts of all state departments to determine the legality of expenditures and the accuracy of accounts;

(2) Report to the governor and to each regular session of the legislature as to the finances of each department of the State;

(3) Administer the state risk management program;

(4) Establish and manage motor pools;

(5) Manage the preservation and disposal of all records of the State;

(6) Undertake the program of centralized engineering and office leasing services, including operation and maintenance and lease buyback processing pursuant to subsection (d) of public buildings, for departments of the State;

(7) Undertake the functions of the state surveyor;

(8) Establish accounting and internal control systems;

(9) Under the direction of the chief information officer, provide centralized computer information management and processing services;

(10) Establish a program to provide a means for public access to public information and develop an information network for state government;

(11) Assume administrative responsibility for the office of information practices; and

(12) Approve state fleet acquisitions; provided that:

(A) Beginning January 1, 2022, all new light-duty motor vehicles that are passenger cars purchased for the State's fleet shall be zero-emission vehicles;

(B) Beginning as soon as practicable but no later than January 1, 2030, all new light-duty motor vehicles that are multipurpose passenger vehicles and trucks for the State's fleet shall be zero-emission vehicles; and

(C) The comptroller may authorize an exemption for new fleet vehicle purchases if zero-emission vehicles are demonstrated to be cost-prohibitive on a lifecycle basis or unsuitable for the vehicles' planned purpose, or if funds are unavailable.

For the purposes of this subsection:

"Light-duty motor vehicle" shall have the same meaning as contained in title 10 Code [of] Federal Regulations part 490.

"Multipurpose passenger vehicle" shall have the same meaning as contained in title 49 Code of Federal Regulations section 571.3.

"Passenger car" shall have the same meaning as contained in title 49 Code of Federal Regulations section 571.3.

"Truck" shall have the same meaning as contained in title 49 Code of Federal Regulations section 571.3.

"Zero-emission vehicle" shall have the same meaning as contained in title 40 Code of Federal Regulations section 88.102-94.

(1) Facilitate implementation of the State's distributed information processing and information resource management plans;

(2) Improve data, voice, and video communications in state government;

(3) Provide a means for connectivity among the state, university, and county computer systems; and

(4) Provide a long-term means for public access to public information.

(d) The department shall establish, coordinate, and manage a program to facilitate facility agreements between the State and private investors for the sale of facilities, excluding facilities managed or controlled by the department of transportation, to private investors; provided that each facility agreement contains the following requirements:

(1) The State shall sell the facility to the private investor, who shall:

(A) Renovate, improve, or construct a facility for the State and may maintain the facility; and

(B) Lease the facility to the State, pursuant to a building lease;

(2) The land upon which the facility rests shall not be sold to the private investor; provided that the land may be leased at a nominal rate to the private investor for a term that would, at a minimum, allow the private investor to recover the capital investment that has been made to the facility, including depreciation; and

(3) The State shall have the option of purchasing the facility from the private investor for the remaining balance of the debt service costs incurred by the private investor at any time.

For purposes of this subsection:

"Building lease" means a contract between the department of accounting and general services and a private investor in which the private investor leases an improved facility to the department for a specified period of time.

"Facility" means a building under the management and control of any state department.

"Facility agreement" means an agreement between the State and a private investor that, at a minimum, includes a description of the work to be done, the sale price for the facility, the duration of the agreement, the roles and responsibilities of the State and the private investor, and the terms and conditions for the lease.

"Private investor" means a nongovernmental entity.

(e) The department may adopt rules as may be necessary or desirable for the operation and maintenance of public buildings; for the operation and implementation of a program to provide a means for public access to the State's information network system and public information; and for the implementation of facility agreements pursuant to subsection (d). The rules shall be adopted pursuant to chapter 91.

[(f) The King Kamehameha celebration commission shall be placed within the department of accounting and general services for administrative purposes. The functions, duties, and powers, subject to the administrative control of the comptroller, and the composition of the commission shall be as heretofore provided by law.

~~(g)~~] (f) The functions and authority [~~heretofore~~] exercised by the comptroller, board of commissioners of public archives, the archivist, the disposal committee, and the insurance management, surplus property management, and central purchasing functions of the bureau of the budget and the nonhighway functions of the department of public works as [~~heretofore~~] constituted are transferred to the department of accounting and general services established by this chapter.

[~~(h)~~] (g) The department of accounting and general services shall preserve and protect Washington Place, including the grounds and the historic residence situated on its premises at Miller and Beretania Streets in Honolulu. The department shall administer, manage, operate, and maintain Washington Place and the trust fund created under subsection [~~(i).~~] (h).

[~~(i)~~] (h) There is established a trust fund in the state treasury to be known as the Washington Place trust fund, into which shall be deposited:

(1) All rents and fees collected for the use of Washington Place and from activities conducted on the premises;

(2) All other money received for the fund from any other source; and

(3) All income and interest earned or accrued on moneys deposited into the trust fund.

All moneys deposited into the trust fund shall be expended by the department of accounting and general services and used exclusively to implement the provisions of subsection [~~(h),~~] (g), including for staff salaries and fringe benefits, and shall not be transferred, nor subject to transfer, to the general fund or any other fund in the state treasury."

SECTION 4. 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 accounting and general services relating to the functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.

SECTION 5. All rights, powers, functions, and duties of the department of accounting and general services are transferred to the department of business, economic development, and tourism.

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.

SECTION 6. All rules, policies, procedures, guidelines, and other material adopted or developed by the department of accounting and general services to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of business, economic development, and tourism by this Act shall remain in full force and effect until amended or repealed by the department of business, economic development, and tourism pursuant to chapter 91, Hawaii Revised Statutes.

In the interim, every reference to the department of accounting or general services or comptroller in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of business, economic development, and tourism or director of business, economic development, and tourism, 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 accounting and general services, pursuant to the provisions of the Hawaii Revised Statutes, that are reenacted or made applicable to the department of business, economic development, and tourism by this Act shall remain in full force and effect. Upon the effective date of this Act, every reference to the department of accounting and general services or the comptroller therein shall be construed as a reference to the department of business, economic development, and tourism or the director of business, economic development, and tourism, as appropriate.

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2764
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII