THE SENATE	S.B. NO.	1514
THIRTIETH LEGISLATURE, 2019
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to state agencies.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that the State and its subdivisions have an obligation in the management of trust revenues and properties to act prudently and ensure accountability and transparency.  Accordingly, the purpose of this Act is to:

     (1)  Prohibit any state agency, including departments, offices, boards, agencies, authorities, instrumentalities, public corporations, other governmental organizations, and political subdivisions, from creating any corporate entity without the approval of the legislature;

     (2)  Require any corporate entity created by a state agency to provide a detailed accounting the legislature, attorney general, and auditor upon request;

     (3)  Allow appropriations to a state agency to be withheld if a corporate entity within the department, office, or other agency fails to provide a timely accounting upon request; and

     (4)  Establishes that any employee, officer, agent, or contractor of a state agency who improperly creates a corporate entity and transfers to that entity any moneys, property, or interest in property is guilty of theft.

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

     "§26-    Formation of corporate entities by state agencies; legislative approval; required disclosure.  (a)  No state agency shall create or cause to be created any corporate entity without the approval of the legislature.

     (b)  Any corporate entity created by, within, or under the supervision of a state agency shall, upon request, provide a detailed accounting to the legislature, attorney general, and auditor.  If any corporate entity fails to provide a timely accounting pursuant to this subsection, appropriations to the state agency to which the corporate entity is subservient may be withheld until such time as the accounting is provided.

     (c)  Any employee, officer, agent, or contractor of a state agency who creates or causes to be created a corporate entity in violation of subsection (a) and who transfers or causes to be transferred any moneys, property, or interests in property to that corporate entity shall be guilty of theft as provided in sections 708-830, 708-830.5, 708-831, 708-832, and 708-833.

     (d)  For purposes of this section, "state agency" includes any department, office, board, agency, authority, instrumentality, public corporation, or other governmental organization of the State or of any political subdivision of the State."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

State Agencies, Legislative Approval

 

Description:

Prohibits any state agency, including departments, offices, boards, agencies, authorities, instrumentalities, public corporations, other governmental organizations, and political subdivisions, from creating any corporate entity without the approval of the legislature.  Requires any corporate entity created by a state agency to provide a detailed accounting the legislature, attorney general, and auditor upon request.  Allows appropriations to a state agency to be withheld if a corporate entity within the state agency fails to provide a timely accounting upon request.  Establishes that any employee, officer, agent, or contractor of a state agency who improperly creates a corporate entity and transfers to that entity any moneys, property, or interest in property is guilty of theft.

 

 

 

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