SB76

SECTION 1. The legislature finds that the State plays an essential role in the protection and management of the State's historic places, burial sites, and aviation artifacts by requiring state agencies, officers, and subdivisions to submit all projects that may affect historic properties to the department of land and natural resources for review before approval.

The legislature further finds that Hawaii is the only state that requires reviews and evaluations at the state, rather than the county or municipal, level. Accordingly, it is reasonable and appropriate to authorize the counties to assume responsibilities for certain reviews.

The purpose of this Act is to assign the responsibility for certain historic preservation project reviews to the counties to allow for more regional decisions, promote more timely reviews, and improve protection of Hawaii's historic properties.

SECTION 2. Section 6E-42, Hawaii Revised Statutes, is amended to read as follows:

"§6E-42 Review of proposed projects. (a) Except as provided in section 6E-42.2, before any agency or officer of the State or its political subdivisions approves any project involving a permit, license, certificate, land use change, subdivision, or other entitlement for use[~~, which~~] that may affect historic property, aviation artifacts, or a burial site, the agency or office shall advise the department or designated county preservation officer and [~~prior to any approval~~] allow the department or officer [~~an opportunity for~~] to review and comment on the effect of the proposed project on historic properties, aviation artifacts, or burial sites, consistent with section 6E-43, including those listed in the Hawaii register of historic places[.] or national register of historic places or located in a designated historic district. If:

(1) The proposed project consists of corridors or large land areas;

(2) Access to properties is restricted; or

(3) Circumstances dictate that construction be done in stages,

the department's or designated county preservation officer's review and comment may be based on a phased review of the project; provided that there shall be a programmatic agreement between the department or designated county preservation officer and the project applicant that identifies each phase and the estimated timelines for each phase.

(b) The department or designated county preservation officer shall inform the public of any project proposals submitted to [it] the department or officer under this section that are not otherwise subject to the requirement of a public hearing or other public notification.

(c) No later than January 2, 2024, review of projects pursuant to this section shall be the responsibility of the respective counties and pursuant to any administrative rules adopted thereunder; provided that the department certifies in writing that the county has:

(1) Adopted an ordinance to govern the county's review process that is consistent with the requirements of this section and any administrative rules adopted pursuant to this section;

(2) Designated a county preservation officer who meets the professional qualification standards established by the department;

(3) Hired qualified professional staff who meet standards established by the department to conduct the reviews;

(4) Established sufficient internal organizational controls to ensure that the qualified professional staff can make independent determinations regarding the effects of projects on historic properties;

(5) Ensured that the qualified professional staff can function in a manner that does not create a conflict of interest nor the appearance of a conflict of interest;

(6) Provided for appropriate public notification in a manner consistent with standards established by the department;

(7) Ensured that copies of all reports, maps, and documents, including those reflecting the designated county preservation official's comments, recommendations, and decisions, are provided to the department to be incorporated into the historic preservation digital document management system and library; and

(8) Entered into a written agreement with the department in which the department certifies that the county has met the requirements of this section and shall assume responsibility for review of projects under this section; provided further that the delegation of authority shall automatically be suspended or terminated if the county is unable to retain sufficient qualified professional staff or it becomes apparent that the county does not have sufficient staffing capacity to complete the delegated reviews in a timely manner.

(d) The department shall retain authority for review under this section for projects affecting properties listed or nominated for inclusion in the Hawaii register of historic places or national register of historic places or occurring within or affecting a designated historic district.

(e) The department may establish a program to certify individuals and organizations to review documents prior to submission to the department or designated county preservation officer for review to ensure consistency of practice. Certification of individuals and organizations shall be done in consultation with the office of Hawaiian affairs. Individuals and organizations that apply for certification shall demonstrate that they have established sufficient internal organizational controls to ensure that the qualified professional staff can make independent determinations regarding the effects of projects on historic properties and can function in a manner that does not create a conflict of interest nor the appearance of a conflict of interest. Each individual or organization certified by the department shall be known as a third-party reviewer.

A review by a third-party reviewer shall ensure that the information submitted is complete and complies with the department's documentation requirements, any accompanying data and analysis supports recommendations made in the submission, and the project reviewed complies with all requirements imposed by the department and this chapter.

Third-party reviewers shall:

(1) Meet professional qualifications and standards established by the department; and

(2) Be independent from the individual or organization that drafted or generated the documents.

[~~(c)~~] (f) The department shall adopt rules in accordance with chapter 91 to implement this section."

SECTION 3. 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 same sum or so much thereof as may be necessary for fiscal year 2024-2025 for the department of land and natural resources to allocate, pursuant to article VIII, section 5, of the Hawaii State Constitution, to the counties for the review of certain historic preservation projects; provided that the department of land and natural resources may retain up to ten per cent of the amount appropriated to cover administrative expenses incurred while carrying out the purposes of this Act.

The sums appropriated shall be expended by the state historic preservation division of the department of land and natural resources for the purposes of this Act.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2023.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	76
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII