Bill Text: HI HB450 | 2025 | Regular Session | Introduced
Bill Title: Relating To The Department Of Business, Economic Development, And Tourism.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-01-29 - The committee on CAA recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 5 Ayes: Representative(s) Kapela, Kong, Garrett, Lee, M., Sayama; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Reyes Oda. [HB450 Detail]
Download: Hawaii-2025-HB450-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
450 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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 Hawaiʻi,
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 by amending subsection (a) to read as follows:
"(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."
SECTION
3.
Section 9-3, Hawaii Revised Statutes, is amended to read as follows:
"§9-3
Duties. The foundation shall:
(1) Assist in coordinating the plans, programs,
and activities of individuals, associations, corporations, and agencies
concerned with the preservation and furtherance of culture and the arts and
history and the humanities;
(2) Establish written standards and criteria by
which grant contracts shall be evaluated;
(3) Appraise the availability, adequacy, and
accessibility of culture and the arts and history and the humanities to all
persons throughout the State and devise programs whereby culture and the arts
and history and the humanities can be brought to those who would otherwise not
have the opportunity to participate;
(4) Stimulate, guide, and promote culture and the
arts and history and the humanities throughout the State;
(5) Devise and recommend legislative and
administrative action for the preservation and furtherance of culture and the
arts and history and the humanities;
(6) Study the availability of private and
governmental grants for the promotion and furtherance of culture and the arts
and history and the humanities;
(7) Through its executive director:
(A) Administer funds allocated by grant, gift, or
bequest to the foundation; accept, hold, disburse, and allocate funds that may
become available from other governmental and private sources; provided that all
those funds shall be disbursed or allocated in compliance with any specific
designation stated by the donor and in the absence of any designation, the
funds shall be disbursed or allocated for the promotion and furtherance of
culture and the arts and history and the humanities; and
(B) Accept, hold, disburse, and allocate public
funds that are made available to the foundation by the legislature for
disbursement or allocation, pursuant to the standards and procedures
established in part II, for the promotion and furtherance of culture and the
arts and history and the humanities;
(8) Submit an annual report with recommendations
to the governor and legislature, prior to February 1, of each year. Annual reports shall include the total number
and amount of gifts and other grants and income received, payroll
disbursements, contracts entered into, and progress and accomplishments made
during the year, including the efforts of the Hawaii arts education partners
and its progress in implementing the Hawaii arts education strategic plan and
the accomplishments of the art in public places and relocatable works of art
programs and the state art museum;
(9) Convene the Hawaii arts education partners,
which is composed of the department of education, the colleges of education and
arts and humanities of the University of Hawaii at Manoa, the Hawaii
Association of Independent Schools, and the Hawaii Alliance for Art Education,
to fully implement the terms of the Hawaii arts education strategic plan;
(10) Display student art works in public buildings,
sponsor student art displays, promote arts education, and in other ways
encourage the development of creative talent among the young people of Hawaii;
(11) In cooperation with qualified organizations,
conduct research, studies, and investigations in the fields of ethnohistory and
the humanities:
(A) Make, publish, and distribute works
documenting the contributions of individual ethnic groups in their relationship
to one another and to the whole population of Hawaii;
(B) Place ethnohistorical and cultural materials
developed by the foundation or received by the foundation as gifts and
donations in public archives, libraries, and other suitable institutions
accessible to the public; and
(C) Maintain a register of the location of such
materials;
(12) Cooperate with and assist the department of
land and natural resources and other state agencies in developing and
implementing programs relating to historic preservation, research, restoration,
and presentation, as well as museum activities;
(13) Establish an individual artist fellowship
program to encourage artists to remain and work in Hawaii and to reaffirm the
importance of Hawaii's artists and their cultural and economic contributions to
the State by:
(A) Recognizing and honoring Hawaii's
exceptionally talented visual and performing artists for their outstanding work
in and commitment to the arts; and
(B) Enabling these artists to further their
artistic goals;
(14) In consultation with the [comptroller] director of business, economic
development, and tourism and affected agencies and departments, administer
the art in public places and relocatable works of art programs established
pursuant to section 103-8.5; and
(15) Administer the operations of the state art
museum established pursuant to section 9-22."
SECTION
4.
Section 9-5, Hawaii Revised Statutes, is amended to read as follows:
"[[]§9-5[]]
Rules. The
foundation shall adopt rules in consultation with the [comptroller] director of business, economic
development, and tourism for the purposes of administering this
chapter. [Such] The rules
shall be adopted in accordance with chapter 91."
SECTION 5. 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) Have
the discretion to employ persons within the comptroller's office who shall be
exempt from chapters 76 and 89 in support of communications, change management,
and business process improvement programs as part of the State's information
technology modernization efforts; provided that the persons shall be members of
the state employees' retirement system and shall be eligible to receive the
benefits of any state employee benefit program generally applicable to officers
and employees of the State;
(10) Provide
centralized computer information management and processing services through the
chief information officer;
(11) Establish
a program to provide a means for public access to public information and
develop an information network for state government;
(12) Assume
administrative responsibility for the office of information practices; and
(13) 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" has the same meaning as defined in title 10 Code of Federal Regulations part 490.
"Multipurpose passenger vehicle" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.
"Passenger car" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.
"Truck" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.
"Zero-emission
vehicle" has the same meaning as specified in title 40 Code of Federal
Regulations section 88.1.
(c) The state communication system shall be
established to:
(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
6. Section 103-8.5, Hawaii Revised Statutes, is
amended by amending subsections (d) through (f) to read as follows:
"(d) The [comptroller] director of business, economic
development, and tourism
and the state foundation on culture and the arts shall decide on the specific
art objects to acquire, giving first consideration to placing appropriate
pieces of art at the locations of the original appropriation.
The
selection of, commissioning artists for, reviewing of design, execution, and
placement of, and the acceptance of works of art shall be the responsibility of
the [comptroller] director of business,
economic development, and tourism and the state foundation on culture and
the arts in consultation with the affected agency or department.
Expenditures
from the works of art special fund shall be made by the [comptroller.] director
of business, economic development, and tourism.
(e) The [comptroller] director of business, economic
development, and tourism
shall:
(1) Provide each agency receiving capital
improvement appropriations with information regarding items that shall be
included and excluded from the one per cent amount;
(2) Ensure that each agency calculates its one per
cent amount correctly; and
(3) Ensure that each agency transfers the correct
amount to the works of art special fund in a timely manner.
(f) The [comptroller] director of business, economic
development, and tourism
and the executive director of the state foundation on culture and the arts
shall track amounts due from each agency under the one per cent requirement as
provided in this section."
SECTION 7. 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 8. 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 9. 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 10. 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 11. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 12. This Act shall take effect on July 1, 2025.
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INTRODUCED BY: |
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Report Title:
SFCA; King Kamehameha Celebration Commission; DAGS; DBEDT; Comptroller; Works of Art Special Fund; Transfer
Description:
Transfers the State Foundation on Culture and the Arts and the King Kamehameha Celebration Commission from the Department of Accounting and General Services to the Department of Business, Economic Development, and Tourism. Transfers the authority held by the Comptroller over the Works of Art Special Fund to the Director of Business, Economic Development, and Tourism.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
