Report Title:

Reorganization of State Government

Description:

Consolidates the department of human resources development with the department of labor and industrial relations. Consolidates the regulatory function of the department of agriculture with the department of commerce and consumer affairs. Consolidates the promotional function of the department of agriculture with the department of business, economic development and tourism. Consolidates the department of accounting and general services with the department of budget and finance.

HOUSE OF REPRESENTATIVES

H.B. NO.

2726

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO THE REORGANIZATION OF STATE GOVERNMENT.

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

PART I

SECTION 1. The legislature finds that there is a need to streamline the State's overall functions to improve financial oversight and planning through improved coordination of functions, policies, and procedures.

The purpose of this Act is to streamline government by consolidating:

(1) The department of human resources development with the department of labor and industrial relations;

(2) The regulatory function of the department of agriculture with the department of commerce and consumer affairs;

(3) The promotional function of the department of agriculture with the department of business, economic development and tourism; and

(4) The department of accounting and general services with the department of budget and finance.

SECTION 2. Section 23-12, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Each revolving and trust fund shall be reviewed every five years as follows:

(1) Beginning 1994 and every five years thereafter, the auditor shall submit a review of the revolving and trust funds of [the department of accounting and general services; the department of agriculture;] the department of budget and finance[;] and the department of land and natural resources;

(2) Beginning 1995 and every five years thereafter, the auditor shall submit a review of the revolving and trust funds of the department of the attorney general; the department of business, economic development, and tourism; and the university of Hawaii system;

(3) Beginning 1996 and every five years thereafter, the auditor shall submit a review of the revolving and trust funds within the judiciary and of the department of commerce and consumer affairs; the department of Hawaiian home lands; the department of health; and the department of human services;

(4) Beginning 1997 and every five years thereafter, the auditor shall submit a review of the revolving and trust funds of the office of the governor; the office of Hawaiian affairs; and the department of education; and

(5) Beginning 1998 and every five years thereafter, the auditor shall submit a review of the revolving and trust funds of the department of labor and industrial relations; the department of taxation; [the department of human resources development;] the department of public safety; and all other moneys expended in accordance with section 37-40."

SECTION 3. Section 26-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) When the office of lieutenant governor is vacant by reason of the lieutenant governor's becoming governor, or the lieutenant governor's failure to qualify, or the lieutenant governor's removal from office, death, resignation, or otherwise, the powers and duties of the office of lieutenant governor shall devolve upon the president of the senate; or, if there is none or upon the president's failure to resign promptly from all legislative offices held by the president, then upon the speaker of the house of representatives; or if there is none or upon the speaker's failure to resign promptly from all legislative offices held by the speaker, then upon the attorney general, the director of finance, [the comptroller,] and the director of taxation[, and the director of human resources development] in the order named; provided that any officer upon whom the powers and duties of the office of lieutenant governor devolve may decline the powers and duties without the officer's resignation from the office by virtue of the holding of which the officer qualifies to act as lieutenant governor, in which event the powers and duties will devolve upon the next officer listed in the order of succession."

SECTION 4. 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)] (1) Department of the attorney general (Section 26-7)

[(4)] (2) Department of budget and finance (Section 26-8)

[(5)] (3) Department of commerce and consumer affairs (Section 26-9)

[(6)] (4) Department of taxation (Section 26-10)

[(7)] (5) University of Hawaii (Section 26-11)

[(8)] (6) Department of education (Section 26-12)

[(9)] (7) Department of health (Section 26-13)

   [(10)] (8) Department of human services (Section 26-14)

   [(11)] (9) Department of land and natural resources (Section 26-15)

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

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

   [(14)] (11) Department of business, economic development, and tourism (Section 26-18)

   [(15)] (12) Department of transportation (Section 26-19)

   [(16)] (13) Department of labor and industrial relations (Section 26-20)

  [(17)] (14) Department of defense (Section 26-21)

  [(18)] (15) Department of public safety (Section 26-14.6)"

SECTION 5. 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 $150,000 a year;

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

(3) 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, Hawaiian home lands, health, [human resources development,] human services, labor and industrial relations, land and natural resources, public safety, taxation, and transportation shall be $85,302 a year; and

(4) The salary of the adjutant general shall be $85,302 a year; provided that if this 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."

PART II

SECTION 6. Section 26-20, Hawaii Revised Statutes, is amended to read as follows:

"26-20 Department of labor and industrial relations. (a) The department of labor and industrial relations shall be headed by a single executive to be known as the director of labor and industrial relations.

(b) The department shall administer programs designed to increase the economic security, physical and economic well-being, and productivity of workers, and to achieve good labor-management relations, including the administration of workers' compensation, employment security, apprenticeship training, wage and hour, and industrial relations laws. The department shall also have the function of developing, preparing, and disseminating information on employment, unemployment, and general labor market conditions.

(c) The department shall also administer the state human resources program, including human resource development and training, and central human resources services such as recruitment, examination, classification, pay administration, and payment of any claims as required under chapter 386.

(d) The labor and industrial relations appeal board provided for in chapters 371 and 386 is placed within the department of labor and industrial relations for administrative purposes. The respective functions, duties, and powers, subject to the administrative control of the director of labor and industrial relations, and the composition of the board shall be as heretofore provided by law.

(e) There shall be within the department of labor and industrial relations a board to be known as the Hawaii labor relations board as provided for in section 89-5, which shall exercise powers and duties in accordance with chapters 89 and 377. The director shall have general administrative supervision over the board, but shall not have the power to supervise or control the board in the exercise of its powers or duties.

(f) The functions of mediation heretofore exercised by the commission of labor and industrial relations existing immediately prior to November 25, 1959, as provided in section 371-10, shall be exercised by the governor or the governor's designated agent.

(g) There shall be within the department of labor and industrial relations a board to be known as the merit appeals board that shall sit as an appellate body on matters set forth in section 76-14. The board shall consist of three members. All members shall have knowledge of public employment laws and prior experience with public employment; provided that at least one member's experience was with an employee organization as a member or an employee of that organization and at least one member's experience was with management. The governor shall consider the names of qualified individuals submitted by employee organizations or management before appointing the members of the board. The chairperson of the board shall be designated as specified in the rules of the board.

The provisions of section 26-34 shall not apply and the board members shall be appointed by the governor for four-year terms and may be re-appointed without limitation; provided that the initial appointments shall be for staggered terms, as determined by the governor. The governor shall fill any vacancy by appointing a new member for a four-year term. The governor may remove for cause any member after due notice and public hearing.

(h) The director may establish within the department of labor and industrial relations a committee to be known as the apprenticeship council which shall sit in an advisory capacity to the director of labor and industrial relations on matters within the jurisdiction of the department of labor and industrial relations relating to apprenticeship programs. The membership and organization of the council shall be determined by the director.

(i) The functions and authority heretofore exercised by the department of labor and industrial relations, Hawaii labor relations board, and apprenticeship council as heretofore constituted are transferred to the department of labor and industrial relations established by this chapter

(j) Nothing in this section shall be construed as in any manner affecting the civil service laws applicable to the several counties, the judiciary, or the Hawaii health systems corporation, which shall remain the same as if this chapter had not been enacted.

(k) There is established in the state treasury the human resources development special fund, to be administered by the department of labor and industrial relations, which shall consist of: all revenues received by the department as a result of entrepreneurial efforts in securing new sources of funds not provided for in the department's budget for services rendered by the department, all revenues received by the department from the charging of participant fees for in-service training that are in addition to general fund appropriations in the department's budget for developing and operating in-service training programs, appropriations made by the legislature to the fund, and moneys directed to the department from any other source, including gifts, grants, and awards.

Moneys in the human resources development special fund shall be used for the following purposes:

(1) Supporting the department's entrepreneurial initiatives, training activities, and programs;

(2) Administrative costs of the department's entrepreneurial initiatives, training activities, and programs; and

(3) Any other purpose deemed necessary by the director for the purpose of facilitating the department's entrepreneurial initiatives, training activities, and programs."

SECTION 7. Section 88E-5, Hawaii Revised Statutes, is amended to read as follows:

"88E-5 Appointment and terms. Except for the directors of [human resources development] labor and industrial relations and finance, the members of the board shall be nominated and, by and with the advice and consent of the senate, appointed by the governor and shall serve terms of four years each; provided that of the trustees first appointed upon establishment of the board one shall be appointed for one year, one shall be appointed for two years, one shall be appointed for three years, and two shall be appointed for four years.

A vacancy on the board shall be filled by appointment of the governor. The person appointed to fill a vacancy shall serve for the remainder of the unexpired term. If by the end of a term a trustee is not reappointed or a successor is not appointed, the trustee shall serve until the trustee's successor is appointed.

Membership on the board shall not be deemed incompatible with the holding of any other public employment."

SECTION 8. Section 89-19, Hawaii Revised Statutes, is amended to read as follows:

"89-19 Chapter takes precedence, when. This chapter shall take precedence over all conflicting statutes concerning this subject matter and shall preempt all contrary local ordinances, executive orders, legislation, or rules adopted by the State, a county, or any department or agency thereof, including the departments [of] governing human resources development or [of] personnel services, or the civil service commission."

SECTION 9. Section 103D-110, Hawaii Revised Statutes, is amended to read as follows:

"103D-110 Education and training. The department of [human resources development,] labor and industrial relations, either alone or in cooperation with any governmental body, [including the department of labor and industrial relations, or in cooperation with] other states, the federal government, or other persons may:

(1) Develop and maintain a comprehensive training and development program for procurement professionals of the State and the several counties;

(2) Conduct or participate in procurement education and training for persons not employed by the State; and

(3) Sponsor a purchasing certification program conducted by a voluntary organization of procurement professionals."

SECTION 10. Section 367-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The commission shall consist of thirteen members, which shall include:

(1) Ex officio nonvoting members the superintendent of education, the president of the University of Hawaii, the director of labor and industrial relations, [the director of human resources development,] the director of human services, and the director of health, or their respective designated representative; and

(2) The remaining seven members shall be appointed by the governor in accordance with section 26-34, and shall serve as voting members."

SECTION 11. Section 26-5, Hawaii Revised Statutes, is repealed.

["26-5 Department of human resources development. (a) The department of human resources development shall be headed by a single executive to be known as the director of human resources development.

(b) The department shall administer the state human resources program, including human resources development and training, and central human resources services such as recruitment, examination, classification, pay administration, and payment of any claims as required under chapter 386.

(c) There shall be within the department of human resources development a board to be known as the merit appeals board which shall sit as an appellate body on matters set forth in section 76-14. The board shall consist of three members. All members shall have knowledge of public employment laws and prior experience with public employment; provided that at least one member's experience was with an employee organization as a member or an employee of that organization and at least one member's experience was with management. The governor shall consider the names of qualified individuals submitted by employee organizations or management before appointing the members of the board. The chairperson of the board shall be designated as specified in the rules of the board.

(d) The provisions of section 26-34 shall not apply and the board members shall be appointed by the governor for four-year terms and may be re-appointed without limitation; provided that the initial appointments shall be for staggered terms, as determined by the governor. The governor shall fill any vacancy by appointing a new member for a four-year term. The governor may remove for cause any member after due notice and public hearing.

(e) Nothing in this section shall be construed as in any manner affecting the civil service laws applicable to the several counties, the judiciary, or the Hawaii health systems corporation, which shall remain the same as if this chapter had not been enacted.

(f) There is established in the state treasury the human resources development special fund, to be administered by the department of human resources development, which shall consist of: all revenues received by the department as a result of entrepreneurial efforts in securing new sources of funds not provided for in the department's budget for services rendered by the department, all revenues received by the department from the charging of participant fees for in-service training that are in addition to general fund appropriations in the department's budget for developing and operating in-service training programs, appropriations made by the legislature to the fund, and moneys directed to the department from any other source, including gifts, grants, and awards.

Moneys in the human resources development special fund shall be used for the following purposes:

(1) Supporting the department's entrepreneurial initiatives, training activities, and programs;

(2) Administrative costs of the department's entrepreneurial initiatives, training activities, and programs; and

(3) Any other purpose deemed necessary by the director for the purpose of facilitating the department's entrepreneurial initiatives, training activities, and programs."]

SECTION 12. All references to "department of human resources development" or like terms, as the case may be in sections 23-8, 23G-2, 76-25, 80-4, 82-5, 88E-3, 90-3, 92F-19, 96-3, 302A-633.5, 302A-1115, and 304-13, Hawaii Revised Statutes, shall be amended to "department of labor and industrial relations" or like terms, as the case may be, as the context requires.

SECTION 13. All references to "director of human resources development" or like terms, as the case may be, in sections 76-10, 76-11, 76-11.5, 76-16, 76-19, 76-20, 76-21, 76-23, 76-24, 76-25, 76-36, 76-52, 76-122, 76-123, 77-1, 77-13, 80-21, 81-1, 81-2, 81-21, 82-6, 83-2, 83-3, 83-4, 87-1, 87A-1, 88E-4, 314-15, and 314-17, Hawaii Revised Statutes, shall be amended to "director of labor and industrial relations" or like terms, as the case may be, as the context requires.

SECTION 14. All rights, powers, functions, and duties of the department of human resources development are transferred to the department of labor and industrial relations.

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 15. 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 human resources development relating to the functions transferred to the department of labor and industrial relations shall be transferred with the functions to which they relate.

SECTION 16. All rules, policies, procedures, guidelines, and other material adopted or developed heretofore by the department of human resources development to implement provisions of the Hawaii Revised Statutes shall remain in full force and effect until amended or repealed by the department of labor and industrial relations pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the "department of human resources development" or "director of human resources development" in those rules, guidelines, policies, procedures, and other material is amended to refer to the "department of labor and industrial relations" and the "director of labor and industrial relations", as appropriate.

PART III

SECTION 17. Section 26-9, Hawaii Revised Statutes, is amended to read as follows:

"26-9 Department of commerce and consumer affairs. (a) The department of commerce and consumer affairs shall be headed by a single executive to be known as the director of commerce and consumer affairs.

(b) The department shall: [protect]

(1) Protect the interests of consumers, depositors, and investors throughout the State[. It shall set];

(2) Set standards and enforce all laws and rules governing the licensing and operation of, and register and supervise the conduct of, trades, businesses, and professions, including banks, insurance companies, brokerage firms, [and] other financial institutions[.], and agriculture[.];

(3) Administer the programs of the State relating to animal husbandry, entomology, farm credit, and the establishment and enforcement of the rules on the grading and labeling of agricultural products; and

(4) Administer the aquaculture program under section 141-2.5.

(c) The board of acupuncture, board of public accountancy, board of barbering and cosmetology, boxing commission, board of chiropractic examiners, contractors license board, board of dental examiners, board of electricians and plumbers, elevator mechanics licensing board, board of professional engineers, architects, surveyors, and landscape architects, board of massage therapy, board of medical examiners, motor vehicle industry licensing board, motor vehicle repair industry board, board of examiners in naturopathy, board of nursing, board of examiners in optometry, pest control board, board of pharmacy, board of physical therapy, board of psychology, board of private detectives and guards, real estate commission, board of veterinary examiners, board of speech pathology and audiology, and any board, commission, program, or entity created pursuant to or specified by statute in furtherance of the purpose of this section including but not limited to section 26H-4, or chapters 484, 514A, and 514E shall be placed within the department of commerce and consumer affairs for administrative purposes.

(d) Except as otherwise provided by this chapter, the functions, duties, and powers, subject to the administrative control of the director of commerce and consumer affairs, and the composition of each board and commission shall be as provided by law.

(e) Notwithstanding any provision to the contrary, the employment, appointment, promotion, transfer, demotion, discharge, and job descriptions of all officers and employees under the administrative control of this department shall be determined by the director of commerce and consumer affairs subject only to applicable personnel laws.

(f) The director of commerce and consumer affairs may appoint a hearings officer or officers not subject to [chapters] chapter 76 [and 77] to hear and decide any case or controversy regarding licenses and the application and enforcement of rules involving any of the boards, commissions, or regulatory programs within the department of commerce and consumer affairs. The hearings officer or officers shall have power to issue subpoenas, administer oaths, hear testimony, find facts, and make conclusions of law and a recommended decision; provided that the conclusions and decisions shall be subject to review and redetermination by the officer, board, or commission which would have heard the case in the first instance in the absence of a hearings officer. The review shall be conducted in accordance with chapter 91.

(g) The director of commerce and consumer affairs may appoint an information officer not subject to [chapters] chapter 76 [and 77] who shall ensure the prompt and efficient handling of consumer inquiries and the development of a strong consumer education program.

(h) The director may appoint a complaints and enforcement officer not subject to [chapters] chapter 76 [and 77] who shall facilitate the receipt, arbitration, investigation, prosecution, and hearing of complaints regarding any person who furnishes commodities, services, or real estate for which a license, registration, or certificate is required from the department or any board, commission, or regulatory program thereunder. In representing the State in bringing any action to enjoin unlicensed, unregistered, or uncertified activities, the department of commerce and consumer affairs' attorneys shall be empowered to exercise all authority granted to the attorney general and to the director of the office of consumer protection under sections 487-12, 487-14, 480-3.1, 480-15, 480-15.1, 480-20(c), and 480-22, as these sections now exist and as they subsequently may be amended. The attorneys also shall be empowered to exercise all authority granted to the attorney general and to the responsible attorneys of the various counties under section 92F-13 in all cases involving documents and records within the custody or control of the regulated industries complaints office.

(i) The functions and authority previously exercised by the treasurer (except funds custody, cash management, debt management, and administering of veterans loans transferred to the department of budget and finance) as constituted are transferred to the department of commerce and consumer affairs established by this chapter.

(j) In the course of an investigation of matters affecting the interest of consumers, depositors, or investors, or of any other matter within the jurisdiction of the department, the director shall have the power to subpoena witnesses, examine witnesses under oath, and require the production of books, papers, documents, or objects that the director deems relevant or material to the inquiry. Upon application by the director, obedience to the subpoena may be enforced by the circuit court in the county in which the person subpoenaed resides or is found in the same manner as a subpoena issued by the clerk of a circuit court.

The director shall appoint and commission one or more investigators as the exigencies of the public service may require. Persons appointed and commissioned under this section may serve subpoenas and serve process and orders pursuant to section 634-21. Nothing in this subsection shall be construed to entitle persons appointed and commissioned by the director to retirement benefits applicable to police officers under chapter 88.

(k) The director may adopt, amend, or repeal rules pursuant to chapter 91 to effectuate the purposes of all laws within the jurisdiction of the department of commerce and consumer affairs. The director's authority to adopt rules shall not modify, impair, or otherwise affect the power of boards and commissions placed within the department of commerce and consumer affairs for administrative purposes from adopting, amending, or repealing rules, except as provided for in subsection (l).

(l) Any law to the contrary notwithstanding, the director of commerce and consumer affairs may:

(1) Establish, increase, decrease, or repeal fees relating to any aspect of the registration, certification, licensure, or any other administrative process for all laws within the jurisdiction of the department. Amendments to fee assessments shall be made pursuant to chapter 91;

(2) Assess fees for copies in any form of media of the computerized records of the business registration division or for electronic access to the computerized information on a one-time or on-going basis. The fees charged for the copies or access may include billing service fees, network usage fees, and computer consultant fees. In adopting these fees, the director shall take into account the intent to make the division self-supporting. To this end, the fees may reflect the commercial value of the service or information provided. In the case of requests for records by a nonprofit organization, the director may reduce or waive the fees. This paragraph shall control in any instance where there is a conflict between this paragraph and any other statute; and

(3) Assess fees for copies of consumer and business educational publications prepared or issued by the department. Fees collected under this paragraph shall be deposited into the compliance resolution fund under subsection (o). In the case of requests for copies by a nonprofit organization, the director may reduce or waive the fees. For purposes of this paragraph, "consumer and business educational publications" does not include copies of statutes or administrative rules.

The fees collected by the professional and vocational licensing division and the business registration division shall be deposited into the compliance resolution fund under subsection (o).

The director may appoint program specialists, not subject to [chapters] chapter 76 [and 77], to assist with the activities of the professional and vocational licensing division.

(m) Notwithstanding section 92-17 or any other law to the contrary, all boards, commissions, and regulatory programs placed within the department of commerce and consumer affairs for administrative purposes shall delegate their authority to receive, arbitrate, investigate, and prosecute complaints to the department.

(n) Each board and commission, as well as the director, by written order, may delegate to the executive secretary or other personnel of the department any of its powers or duties as it deems reasonable and proper for the administration of the licensing laws that are within the jurisdiction of the department of commerce and consumer affairs. The delegated powers and duties may be exercised by the executive secretary or other personnel of the department in the name of the board, commission, or the director. However, neither a board, a commission, nor the director shall delegate the authority to adopt, amend, or repeal rules or take final disciplinary action against a licensee.

(o) Every person licensed under any chapter within the jurisdiction of the department of commerce and consumer affairs and every person licensed subject to chapter 485 or registered under chapter 467B shall pay upon issuance of a license, permit, certificate, or registration a fee and a subsequent annual fee to be determined by the director and adjusted from time to time to ensure that the proceeds, together with all other fines, income, and penalties collected under this section, do not surpass the annual operating costs of conducting compliance resolution activities required under this section. The fees may be collected biennially or pursuant to rules adopted under chapter 91, and shall be deposited into the special fund established under this subsection. Every filing pursuant to chapter 514E or section 485-6(15) shall be assessed, upon initial filing and at each renewal period in which a renewal is required, a fee that shall be prescribed by rules adopted under chapter 91, and that shall be deposited into the special fund established under this subsection. Any unpaid fee shall be paid by the licensed person, upon application for renewal, restoration, reactivation, or reinstatement of a license, and by the person responsible for the renewal, restoration, reactivation, or reinstatement of a license, upon the application for renewal, restoration, or reinstatement of the license. If the fees are not paid, the director may deny renewal, restoration, reactivation, or reinstatement of the license. The director may establish, increase, decrease, or repeal the fees when necessary pursuant to rules adopted under chapter 91.

There is created in the state treasury a special fund to be known as the compliance resolution fund to be expended by the director's designated representatives as provided by this subsection. Notwithstanding any law to the contrary, all revenues, fees, and fines collected by the department shall be deposited into the compliance resolution fund. Unencumbered balances existing on June 30, 1999, in the cable television fund under chapter 440G, the division of consumer advocacy fund under chapter 269, the financial institution examiners' revolving fund, section 412:2-109, and the special handling fund, section 415-128, shall be deposited into the compliance resolution fund. This provision shall not apply to the drivers education fund underwriters fee, section 431:10C-115, insurance premium taxes and revenues, revenues of the workers' compensation special compensation fund, section 386-151, the captive insurance administrative fund, section 431:19-101.8, the insurance commissioner's education and training fund, section 431:2-214, the medical malpractice patients' compensation fund as administered under section 5 of Act 232, Session Laws of Hawaii 1984, the insurance examiners' revolving fund, section 431:2-307, the motor vehicle insurance administration revolving fund, section 431:10C-115.5, and fees collected for deposit in the office of consumer protection restitution fund, section 487-14, the real estate appraisers fund, section 466K-1, the real estate recovery fund, section 467-16, the real estate education fund, section 467-19, the contractors recovery fund, section 444-26, the contractors education fund, section 444-29, the condominium management education fund, section 444-29, and the public broadcasting revolving fund, section 314-13. Any law to the contrary notwithstanding, the director may use the moneys in the fund to employ, without regard to [chapters] chapter 76 [and 77], hearings officers, investigators, attorneys, accountants, and other necessary personnel to implement this subsection. Any law to the contrary notwithstanding, the moneys in the fund shall be used to fund the operations of the department with the exception of costs related to the Hawaii public broadcasting authority. The moneys in the fund may be used to train personnel as the director deems necessary and for any other activity related to compliance resolution.

As used in this subsection, unless otherwise required by the context, "compliance resolution" means a determination of whether:

(1) Any licensee or applicant under any chapter subject to the jurisdiction of the department of commerce and consumer affairs has complied with that chapter;

(2) Any person subject to chapter 485 has complied with that chapter;

(3) Any person submitting any filing required by chapter 514E or section 485-6(15) has complied with chapter 514E or section 485-6(15);

(4) Any person has complied with the prohibitions against unfair and deceptive acts or practices in trade or commerce; or

(5) Any person subject to chapter 467B has complied with that chapter;

and includes work involved in or supporting the above functions, licensing, or registration of individuals or companies regulated by the department, consumer protection, and other activities of the department.

The director shall prepare and submit an annual report to the governor and the legislature on the use of the compliance resolution fund. The report shall describe expenditures made from the fund including non-payroll operating expenses.

(p) Any law to the contrary notwithstanding, the department of commerce and consumer affairs, or any board or commission placed within it for administrative purposes, may contract with professional testing services to prepare, administer, and grade examinations and tests for license applicants. For these purposes, the department may require applicants to pay the examination fee directly to the testing agency.

(q) Any law to the contrary notwithstanding, when any type of bond or insurance required to be maintained by any licensee under a regulatory program of the department of commerce and consumer affairs, or of any board or commission assigned to the department of commerce and consumer affairs, cannot reasonably be secured, the department, board, or commission may provide by rule for alternative forms of security to the consumer so long as that alternate security is no less than that provided by the type of bond or insurance initially required.

(r) Notwithstanding any other law to the contrary, the department of commerce and consumer affairs, or any board or commission placed within it for administrative purposes, may change any license renewal date by rules adopted in accordance with chapter 91.

(s) The director of commerce and consumer affairs may establish advisory committees, the members of which shall serve as consultants to the boards and to the director in their review of licensees referred for possible disciplinary action and as experts to the department for investigations and professional vocational licensing matters. Each advisory committee shall be appointed by the director from a list of licensees submitted annually by the board or by referral from the regulated industry for which an advisory committee is appointed. Each member of the committee shall serve until a new committee is established or until the particular case for which the member was designated a consultant or expert has been concluded.

All members of the advisory committee shall serve voluntarily and without compensation, but shall be paid reasonable allowances for travel and expenses that may be incurred as a result of performance of their duties on the committee. The costs shall be paid by the department.

Any member of the advisory committee shall be immune from civil liability for any act done in connection with this subsection.

(t) The functions and authority heretofore exercised by the department of agriculture relating to the regulation of the agriculture industry are transferred to the department of commerce and consumer affairs as established by this chapter."

SECTION 18. Section 26-18, Hawaii Revised Statutes, is amended to read as follows:

"26-18 Department of business, economic development, and tourism. (a) The department of business, economic development, and tourism shall be headed by a single executive to be known as the director of business, economic development, and tourism.

The department shall undertake statewide business and economic development activities, undertake energy development and management, provide economic research and analysis, plan for the use of Hawaii's ocean resources, and encourage the development and promotion of industry and international commerce through programs established by law.

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

The department of business, economic development, and tourism shall be empowered to establish, modify, or abolish statistical boundaries for cities, towns, or villages in the State and shall publish, as expeditiously as possible, an up-to-date list of cities, towns, and villages after changes to statistical boundaries have been made.

(c) The department shall:

(1) Promote the conservation, development, and use of agricultural resources in the State;

(2) Assist the farmers of the State and any others engaged in agriculture by research projects, dissemination of information, crop and livestock reporting service, market news service, and any other means of improving the well-being of those engaged in agriculture and increasing the productivity of the lands; and

(3) Administer the programs of the State relating to development and promotion of agricultural products and markets.

(d) The functions and authority heretofore exercised by the department of agriculture relating to the promotion of the agriculture industry are transferred to the department of business, economic development, and tourism as established by this chapter."

SECTION 19. Chapter 141, Hawaii Revised Statutes, is amended by amending the title of the chapter to read as follows:

"CHAPTER 141

[DEPARTMENT OF] AGRICULTURE"

SECTION 20. Section 141-1, Hawaii Revised Statutes, is amended to read as follows:

"141-1 Duties in general. The department of [agriculture] commerce and consumer affairs shall:

(1) Gather, compile, and tabulate, from time to time, information and statistics concerning:

(A) Entomology and plant pathology: Insects, scales, blights, and diseases injurious, or liable to become injurious, to trees, plants, or other vegetation, and the ways and means of exterminating pests and diseases already in the State and preventing the introduction of those not yet here; and

(B) General agriculture: Fruits, fibres, and useful or ornamental plants and their introduction, development, care, and manufacture or exportation, with a view to introducing, establishing, and fostering new and valuable plants and industries;

(2) Encourage and cooperate with the agricultural extension service and agricultural experiment station of the University of Hawaii and all private persons and organizations doing work of an experimental or educational character coming within the scope of the subject matter of chapters 141, 142, and 144 to 150A, and avoid, as far as practicable, duplicating the work of those persons and organizations;

(3) Enter into contracts, cooperative agreements, or other transactions with any person, agency, or organization, public or private, as may be necessary in the conduct of the department's business and on such terms as the department may deem appropriate; provided that the department shall not obligate any funds of the State, except the funds that have been appropriated to the department. Pursuant to cooperative agreement with any authorized federal agency, employees of the cooperative agency may be designated to carry out, on behalf of the State the same as department personnel, specific duties and responsibilities under chapters 141, 142, 150A, and rules adopted pursuant to those chapters, for the effective prosecution of pest control, and animal disease control, and regulation of import into the State and intrastate movement of regulated articles;

(4) Secure copies of the laws of other states, territories, and countries, and other publications germane to the subject matters of chapters 141, 142, and 144 to 150A, and make laws and publications available for public information and consultation;

(5) Provide buildings, grounds, apparatus, and appurtenances necessary for the examination, quarantine, inspection, and fumigation provided for by chapters 141, 142, and 144 to 150A; for the obtaining, propagation, study, and distribution of beneficial insects, growths, and antidotes for the eradication of insects, blights, scales, or diseases injurious to vegetation of value and for the destruction of injurious vegetation; and for carrying out any other purposes of chapters 141, 142, and 144 to 150A;

(6) Formulate and recommend to the governor and legislature additional legislation necessary or desirable for carrying out the purposes of chapters 141, 142, and 144 to 150A;

(7) Publish at the end of each year a report of the expenditures and proceedings of the department and of the results achieved by the department, together with other matters germane to chapters 141, 142, and 144 to 150A, and which the department may deem proper; and

(8) Administer a program of agricultural planning and development, including the formulation and implementation of general and special plans, including but not limited to the functional plan for agriculture; administer the planning, development, and management of the agricultural park program; plan, construct, operate, and maintain the state irrigation water systems; review, interpret, and make recommendations with respect to public policies and actions relating to agricultural land and water use; assist in research, evaluation, development, enhancement, and expansion of local agricultural industries; and serve as liaison with other public agencies and private organizations for the above purposes. In the foregoing, the department of agriculture shall act to conserve and protect agricultural lands and irrigation water systems, promote diversified agriculture, increase agricultural self-sufficiency, and ensure the availability of agriculturally suitable lands."

SECTION 21. Section 26-16, Hawaii Revised Statutes, is repealed.

["26-16 Department of agriculture. (a) The department of agriculture shall be headed by an executive board to be known as the board of agriculture.

The board shall consist of ten members:

(1) One who shall be a resident of the county of Hawaii;

(2) One who shall be a resident of the county of Maui;

(3) One who shall be a resident of the county of Kauai;

(4) Four at large;

(5) The chairperson of the board of land and natural resources, who shall serve as an ex officio voting member;

(6) The director of business, economic development, and tourism, who shall serve as an ex officio voting member; and

(7) The dean of the University of Hawaii college of tropical agriculture and human resources, who shall serve as an ex officio voting member.

The majority of the members of the board shall be from the agricultural community or the agricultural support sector. The appointment, tenure, and removal of the members and the filling of vacancies on the board shall be as provided in section 26-34. The governor shall appoint a chairperson of the board from the members.

(b) The board may delegate to the chairperson such duties, powers, and authority, or so much thereof, as may be lawful or proper for the performance of the functions vested in the board.

The chairperson of the board shall serve in a full-time capacity. The chairperson shall, in that capacity:

(1) Perform such duties and exercise such powers and authority, or so much thereof, as may be delegated to the chairperson by the board; and

(2) Identify problems related to agriculture and the appropriate state agencies and departments needed to solve the problem. With the approval of the governor, the designated agencies shall provide any necessary assistance to the chairperson until the problem is resolved.

(c) The department shall:

(1) Promote the conservation, development, and utilization of agricultural resources in the State;

(2) Assist the farmers of the State and any others engaged in agriculture by research projects, dissemination of information, crop and livestock reporting service, market news service, and any other means of improving the well-being of those engaged in agriculture and increasing the productivity of the lands;

(3) Administer the programs of the State relating to animal husbandry, entomology, farm credit, development and promotion of agricultural products and markets, and the establishment and enforcement of the rules on the grading and labeling of agricultural products; and

(4) Administer the aquaculture program under section 141-2.5.

(d) The functions and authority heretofore exercised by the board of commissioners of agriculture and forestry (except the management of state parks and the conservation, development, and utilization of forest resources, including regulatory powers over the forest reserve provided in Act 234, section 2, Session Laws of Hawaii 1957, and of fish and game resources transferred to the department of land and natural resources), by the farm loan board as heretofore constituted, and by the University of Hawaii with respect to the crop and livestock reporting service and market news service, are transferred to the department of agriculture established by this chapter."]

SECTION 22. All references to "department of agriculture" or like terms, as the case may be in:

(1) Chapters 141, 142, 144, 145, 147, 149A, 150, 150A, 152, 157, 159, 161, 167, 168, 460J, 486, Hawaii Revised Statutes; and

(2) Sections 6E-61, 165-4, 171-2, 246-12, 342G-47, Hawaii Revised Statutes,

shall be amended to "department of commerce and consumer affairs" or like terms, as the case may be, as the context requires.

SECTION 23. All references to "department of agriculture" or like terms, as the case may be in:

(1) Chapters 148, 153, 155, 163D, 166, 219, and 421, Hawaii Revised Statutes; and

(2) Sections 171-112 and 171-117, Hawaii Revised Statutes,

shall be amended to "department of business, economic development, and tourism" or like terms, as the case may be, as the context requires.

SECTION 24. All references to "board of agriculture" or like terms, as the case may be in:

(1) Chapters 141, 142, 144, 145, 147, 149A, 150, 150A, 152, 157, 159, 161, 167, 168 and 486, Hawaii Revised Statutes; and

(2) Sections 142-28.5, 157-29, 279A-4, and 460J-2, Hawaii Revised Statutes;

shall be amended to "department of commerce and consumer affairs" or like terms, as the case may be, as the context requires.

SECTION 25. All references to " chairperson of the board of agriculture" or like terms, as the case may be in:

(1) Chapters 141, 142, 144, 145, 147, 149A, 150, 150A, 152, 157, 159, 161, 167, 168 and 486, Hawaii Revised Statutes; and

(2) Sections 142-28.5, 157-29, 279A-4, and 460J-2, Hawaii Revised Statutes,

shall be amended to "director of commerce and consumer affairs" or like terms, as the case may be, as the context requires.

SECTION 26. All references to "board of agriculture" or like terms, as the case may be in:

(1) Chapters 148, 153, 155, 163D, 166, 219, and 421, Hawaii Revised Statutes; and

(2) Sections 164-1, 195-6, 210D-5, and 220-1, Hawaii Revised Statutes,

shall be amended to "department of business, economic development, and tourism" or like terms, as the case may be, as the context requires.

SECTION 27. All references to "chairperson of the board of agriculture" or like terms, as the case may be in:

(1) Chapters 148, 153, 155, 163D, 166, 219, and 421, Hawaii Revised Statutes; and

(2) Sections 164-1, 195-6, 210D-5, and 220-1, Hawaii Revised Statutes,

shall be amended to "director of business, economic development, and tourism" or like terms, as the case may be, as the context requires.

SECTION 28. All rights, powers, functions, and duties of the department of agriculture as they relate to regulatory functions are transferred to the department of commerce and consumer affairs.

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 29. All rights, powers, functions, and duties of the department of agriculture as they relate to promotional functions 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 30. 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 agriculture relating to regulatory functions transferred to the department of commerce and consumer affairs shall be transferred with the functions to which they relate.

SECTION 31. 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 agriculture relating to promotional functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.

SECTION 32. All rules, policies, procedures, guidelines, and other material adopted or developed heretofore by the department of agriculture to implement provisions of the Hawaii Revised Statutes relating to regulatory functions shall remain in full force and effect until amended or repealed by the department of commerce and consumer affairs pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the "department of agriculture", "board of agriculture", or "chairperson of the board of agriculture", in those rules, guidelines, policies, procedures, and other material is amended to refer to the "department of commerce and consumer affairs" and the "director of commerce and consumer affairs", as appropriate.

SECTION 33. All rules, policies, procedures, guidelines, and other material adopted or developed heretofore by the department of agriculture to implement provisions of the Hawaii Revised Statutes relating to promotional functions shall remain in full force and effect until amended or repealed by the department of commerce and consumer affairs pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the "department of agriculture", "board of agriculture", or "chairperson of the board of agriculture" in those rules, guidelines, policies, procedures, and other material is amended to refer to the "department of business, economic development, and tourism " and the "director of business, economic development, and tourism", as appropriate.

PART IV

SECTION 34. Section 21F-8, Hawaii Revised Statutes, is amended to read as follows:

"[[]21F-8[]] Agencies to cooperate. All departments, agencies, and education institutions of the executive and judicial branches, the office of Hawaiian affairs, and the University of Hawaii shall comply with requests of the office of the legislative analyst for information, data, estimates, and statistics on the funding revenue operations, and other affairs of the department, agency, education institution, the office of Hawaiian affairs, or University of Hawaii. The [comptroller, the] director of finance, the director of taxation, the administrative director of the courts, the administrator of the office of Hawaiian affairs, and the president of the University of Hawaii shall provide the office of the legislative analyst with full and free access to information, data, estimates, and statistics in the possession of their respective departments on the state budget, revenue, expenditures, and tax revenue and expenditures."

SECTION 35. Section 26-8, Hawaii Revised Statutes, is amended to read as follows:

"26-8 Department of budget and finance. (a) The department of budget and finance shall be headed by a single executive to be known as the director of finance.

(b) The department shall:

(1) [Undertake the preparation and execution of] Prepare and execute the executive budget of the state government;

(2) Conduct a systematic and continuous review of the finances, organization, and methods of each department of the State to assist each department in achieving the most effective expenditure of all public funds and to determine that such expenditures are in accordance with the budget laws and controls in force[;], including conducting preaudits and after-the-fact audits of the financial accounts of all state departments to determine the legality of expenditures and the accuracy of accounts;

(3) Have custody of state funds and be responsible for the safekeeping, management, investment, and disbursement thereof; [and]

(4) Administer state debts[.];

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

(6) Administer the state risk management program;

(7) Establish and manage motor pools;

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

(9) Undertake the program of centralized engineering and office leasing services, including operation and maintenance of public buildings, for departments of the State;

(10) Undertake the functions of the state surveyor;

(11) Establish accounting and internal control systems;

(12) Provide centralized computer information management and processing services, coordination in the use of all information processing equipment, software, facilities, and services in the executive branch of the State, and consultation and support services in the use of information processing and management technologies to improve the efficiency, effectiveness, and productivity of state government programs; and

(13) Establish, coordinate, and manage a program to provide a means for public access to public information and develop and operate an information network in conjunction with its overall plans for establishing a communication backbone for state government.

(c) The state communication system shall be established within the department of budget and finance 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 may adopt rules as may be necessary or desirable for the operation and maintenance of public buildings, and 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. The rules shall be adopted pursuant to chapter 91.

[(c)](e) The functions and authority heretofore exercised by the bureau of the budget (except for insurance management, surplus property management, and central purchasing transferred to the department of accounting and general services) and the funds custody, cash management, debt management, and administering of veterans loan functions of the treasurer as heretofore constituted are transferred to the department of budget and finance established by this chapter.

(f) The functions and authority heretofore exercised by the comptroller are transferred to the department of accounting and general services established by this chapter.

[(d)](g) The employees retirement system as constituted by chapter 88 is placed within the department of budget and finance for administrative purposes. The functions, duties, and powers, subject to the administrative control of the director of finance, and the composition of the board of trustees of the employees retirement system shall be as heretofore provided by law.

(h) The public utilities commission is placed within the department of budget and finance for administrative purposes only.

(i) The King Kamehameha celebration commission is placed within the department of budget and finance for administrative purposes. The functions, duties, and powers, subject to the administrative control of the director of finance, and the composition of the commission shall be as provided by law."

SECTION 36. Section 29-16, Hawaii Revised Statutes, is amended to read as follows:

"29-16 Treasury as depository[; duties of comptroller]. All federal-aid moneys received by the State, except as otherwise provided for by the federal government, shall be deposited with [the director of finance and shall be disbursed upon warrants drawn by the comptroller of the State] and disbursed upon warrants drawn by the director of finance, supported by vouchers approved by the board, commission, department, or officer having charge of the expenditure of the moneys by virtue of the plan, agreement, or arrangement entered into or made with the proper federal agency.

The [comptroller] director of finance may prescribe and maintain such system of accounts and accounting as may be required by the federal government, or any agency thereof, in carrying out the objects and purposes of the plan, agreement, or arrangement."

SECTION 37. Section 37-35, Hawaii Revised Statutes, is amended to read as follows:

"37-35 Estimated expenditures; approval. (a) The director of finance shall review all estimates submitted under section 37-34 and, having due regard for:

(1) The probable further needs of the department or establishment for the remainder of the term for which the appropriation was made;

(2) The terms and purposes of the appropriation, the progress of collection of revenues, and condition of the treasury; and

(3) The probable receipts and total cash requirements for the ensuing quarter, shall approve, increase, or reduce the amount of the estimate[;

provided that the].

(b) The director of finance shall approve the estimates submitted by the University of Hawaii when:

(1) The sum of the estimates for each funding source does not exceed the applicable allotment ceilings established by the governor under section 37-34;

(2) The progress of collection of revenues, the condition of the treasury, and the probable receipts and total cash requirements for the ensuing quarter permit; and

(3) All other legal requirements are satisfied.

(c) The director of finance shall act promptly upon all estimates and notify each department or establishment of its allotment[, and shall notify the comptroller]."

SECTION 38. Section 38-2, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"(f) All deposits of money, except time deposits, shall be paid upon demand on checks [signed by] bearing dual signatures of the director and [countersigned by the comptroller,] the governor's representative, or by the payment of a certificate of deposit issued by the depository, which certificate shall be endorsed by the payee named therein, as well as by the [comptroller,] director's representative or by preauthorized automatic transfer of funds between transaction accounts held within the same depository. Transaction accounts, as defined in Regulation D of the Federal Reserve System, as authorized by Section 19 (12 U.S.C. 461 et seq.) of the Federal Reserve Act, includes all checking accounts, both demand and interest bearing. Each depository shall at the end of every month render to the director a statement, in duplicate, for each of the funds of the State, showing the daily balances on open commercial account [which] that were held by it during the month. The duly authorized representatives of any depository shall at all times during office hours have access to the securities deposited by the depository to secure the deposits of the State for the purpose of examining the same and removing the coupons that may have matured, the examination to be made in the presence of the director or the director's representative."

SECTION 39. Section 38-4, Hawaii Revised Statutes, is amended to read as follows:

"38-4 Provisions of depository contracts. Any acceptance by a depository of treasury moneys shall constitute an acceptance of the provisions of sections 38-2 and 38-3, and those provisions shall be deemed a part of and incorporated into the contract of deposit without any necessity for specific mention thereof. [The director shall file with the comptroller a copy of any formal written contract of deposit which may be entered into.]"

SECTION 40. Section 39-7, Hawaii Revised Statutes, is amended to read as follows:

"39-7 Form and execution of bonds. Bonds issued pursuant to this part shall be in such form as the director of finance may determine, and shall be lithographed or steel engraved. All bonds issued pursuant to this part shall be manually signed by the director of finance or a deputy director of finance, [shall bear a lithographed or engraved facsimile of the signature of the comptroller of the State,] and shall be sealed with the seal or a lithographed or engraved facsimile of the seal of the department of budget and finance. In addition, fully registered bonds may be authenticated with the manual signature of the registrar, if any, thereunto duly appointed by the director of finance. Notwithstanding the preceding provisions of this section, the director of finance, with the approval of the governor, may provide that bonds issued pursuant to this part may be typewritten, printed, or otherwise reproduced[, and that the signature of the comptroller upon the bonds may be the comptroller's manual signature]. Interest coupons shall be executed with a lithographed or engraved facsimile of the signature of the director of finance. Pending the preparation of the definitive bonds, interim receipts, or certificates in such form and with such provisions as the director of finance may decide upon, may be issued to the purchaser or purchasers of bonds sold pursuant to this part."

SECTION 41. Section 39-8, Hawaii Revised Statutes, is amended to read as follows:

"39-8 Same, signatures. When bonds of the State are prepared and signed by the director of finance [or a deputy director of finance of the State and the comptroller of the State] in office at the time of [such] the signing[, the] and the governor's representative, their signatures [of the director of finance or deputy director of finance and comptroller] shall be valid and sufficient for all purposes, and shall have the same effect as if the persons officially signing the bonds or whose facsimile signatures appear thereon had remained in office until the delivery of the same to the initial purchasers thereof, and in the case of fully registered bonds upon any exchange or transfer between subsequent holders thereof, notwithstanding that the term of office of those persons or any of them may have expired or they may otherwise have ceased to be officers before the delivery, exchange, or transfer. If the director of finance shall have designated a registrar for fully registered bonds, the director of finance may provide that no fully registered bond shall be valid or obligatory for any purpose unless certified or authenticated by the registrar. If the director of finance shall have provided for a registrar, then notwithstanding section 39-7, all signatures of the officers of the State upon the fully registered bonds may be facsimiles of the officers' signatures, and fully registered bonds shall be valid and sufficient only if certified or authenticated by the manual signature of an authorized officer or signatory of that registrar. Anything to the contrary notwithstanding, if blanks of fully registered bonds shall be held by a registrar pending exchange or transfer for other fully registered bonds of the same series, then upon delivery of bonds in an exchange or transfer, the bonds shall be valid and sufficient for all purposes notwithstanding that the signature of [the comptroller and] the director of finance [or deputy director of finance] and the governor's representative appearing thereon shall be that of the person in office at the time of initial delivery of the bonds or that of the person in office at the time of such exchange or transfer."

SECTION 42. Section 39-31, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) All duplicate bonds in coupon form issued in place of bonds lost, stolen, wholly or partially destroyed, or defaced shall be lithographed or steel engraved unless otherwise provided in the proceedings authorizing the issuance thereof, and shall bear the manual signatures of the director of finance [or a duly authorized deputy director of finance and the comptroller] and the governor's representative, and an impression of the seal of the department of budget and finance shall be affixed thereon. Interest coupons shall bear a lithographed or engraved facsimile of the signature of the director of finance. Each signature of an officer on a duplicate coupon bond shall be the signature of the person serving as the officer on the date of signing and any duplicate coupon bond so executed and sealed shall be valid and sufficient for all purposes. All duplicate bonds in fully registered form issued in place of bonds lost, stolen, wholly or partially destroyed, or defaced shall be from the stock of fully registered bonds of the series then held by the registrar for that series and shall be executed, sealed, and authenticated in the same manner as fully registered bonds of that series. Any duplicate fully registered bond executed, sealed, and authenticated as provided in this section shall be valid and sufficient for all purposes.

When the lost, stolen, wholly or partially destroyed, or defaced bond appears to have been of a class or series that has been called or will be called in for redemption or will mature within a period of one year following the date of application for a duplicate bond, instead of issuing a duplicate bond therefor, the director of finance, under conditions and upon such security, if any, as the director of finance may prescribe, may pay the bond at its call date with interest if it is already called for redemption or if it is to be called for redemption or will mature within the period of one year, or may issue a transferable certificate of ownership to the applicant, and pay on the certificate the call price of the bond represented thereby together with interest called for by the lost, stolen, wholly or partially destroyed, or defaced bond on the date of its call or its original maturity upon surrender of the certificate of ownership. All transferable certificates of ownership [which] that may be issued pursuant to the terms hereof shall be in such form as the director of finance may prescribe and shall be signed by the director of finance [or a duly authorized deputy director of finance and by the comptroller of the State] and the governor's representative, and an impression of the seal of the department of budget and finance shall be affixed thereto.

All expenses necessary for the providing of any duplicate bond, coupon, or both, as the case may be, or certificate of ownership shall be borne by the owner thereof and the expenses shall be paid at the time the request for replacement is filed."

SECTION 43. Section 39-92, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The director of finance shall annually as of July 1 of each fiscal year and following each issuance of general obligation bonds of the State ascertain and set forth in a table or other summary a statement evidencing the power of the State to issue general obligation bonds. In preparing the statements required by this section, the director of finance may rely on the statement of total outstanding indebtedness of the State and the exclusions therefrom prepared pursuant to section 39-93 to the extent such statement is concurred to by the attorney general [and the comptroller]. The statement shall include the following:

(1) The total principal and interest payable in the current fiscal year and in each future fiscal year on all outstanding general obligation indebtedness of the State including outstanding general obligation bonds, reimbursable general obligation bonds, and any other outstanding general obligation bonds. Principal and interest on bonds constituting instruments of indebtedness under which the State incurs a contingent liability as a guarantor need not be included, but only to the extent the principal amount of such bonds does not exceed seven per cent of the principal amount of outstanding general obligation bonds not otherwise excluded under section 13 of Article VII of the Constitution; provided that the State shall have established and is maintaining a reserve in an amount in reasonable proportion to the outstanding loans guaranteed by the State pursuant to law.

(2) The total principal and interest payable in the current fiscal year and in each future fiscal year on all outstanding general obligation indebtedness of the State [which] that may be excluded under section 13 of Article VII of the Constitution in determining the power of the State to issue general obligation bonds for the purposes of that section. There shall be itemized and shown the amounts [which] that may be excluded under each of clauses 1 through 9 of section 13; in the case of reimbursable general obligation bonds, the undertaking, improvement, system, or political subdivision for which such bonds are issued, and, except as to such bonds issued for a political subdivision, the revenues, user taxes, or both, from which the reimbursement to the general fund for the payment of the principal and interest of such bonds is to be made.

(3) The total principal and interest payable in the current fiscal year and in each future fiscal year on all outstanding general obligation indebtedness [which] that may not be excluded in determining the power of the State to issue general obligation bonds for the purposes of section 13 of Article VII of the Constitution.

(4) The net general fund revenues for each of the three preceding fiscal years, the average of such net general fund revenues and, until June 30, 1982, the figure [which] that is twenty per cent of such average; and thereafter, the figure [which] that is eighteen and one-half per cent of such average.

The items required above to be set forth in the statement may be disclosed in such manner or arrangement as the director of finance may deem advisable, and need not be separately stated if the captions, headings, or groupings disclose the information required to be set forth."

SECTION 44. Section 39-93, Hawaii Revised Statutes, is amended by amending subsection (d) and (e) to read as follows:

"(d) Upon the preparation by the director of finance of any statement and supporting schedules required by this section, the director shall submit such statement and supporting schedules to the attorney general for concurrence as to all legal findings upon which such statement and supporting schedules are based[, and to the comptroller for concurrence as to all matters therein]. The attorney general [and the comptroller] shall notify the director of finance in writing of [their] the attorney general's concurrence in such statement and supporting schedules. If the attorney general [or the comptroller] shall disagree with any items included in the statement and supporting schedules, the attorney general [or the comptroller, as the case may be,] shall notify the director of finance in writing of concurrence as to all other items and as to items of disagreement and the reasons therefor. The director of finance shall thereupon certify the statement and supporting schedules to the governor and the presiding officers of the legislature, setting forth in such certification any items therein disagreed to by the attorney general [or the comptroller]. The statement and schedules so certified shall be conclusive as to all items therein concurred to by the attorney general [and the comptroller].

The director of finance shall reproduce and deliver to the legislature by December 1 of each year a sufficient number of copies of the certified statement prepared as of July 1 of the then current fiscal year, so that a copy of the statement may be distributed to each member of the legislature at the next regular session thereof. Only the statement itself shall be required to be reproduced, and the copies need not include any of the supporting schedules required by this section.

(e) In the event the certification by the director of finance of any statement and supporting schedules filed with the governor and the presiding officers of the legislature shall set forth therein that the attorney general [or the comptroller] has disagreed as to any item therein, the governor, at the governor's election, or the legislature at its election, may direct the attorney general to file a declaratory judgment action in the name of the State against the director of finance. Such action may be filed in any circuit court of the State, which courts are hereby vested with jurisdiction over such actions. If the items disagreed to concern only questions of law and all facts involved are stipulated to by the attorney general[, comptroller,] and director of finance, the attorney general at the attorney general's discretion may file such action in the supreme court, which court is hereby vested with original jurisdiction over such action. Upon any findings and determinations having been made by the court, the director of finance shall revise the latest statement and supporting schedules issued to reflect such findings and determinations and shall certify the revised statement and supporting schedules to the governor and the presiding officers of the legislature.

In the event the certification by the director of finance shall set forth therein that the attorney general [or the comptroller] has disagreed to any item therein, until such time as the disagreement is resolved by a declaratory judgment action:

(1) [if] If the subject matter of the disagreement is concerned with whether certain revenues constitute general fund revenues, or whether such revenues [must] shall be deducted in determining net general fund revenues for the purposes of this part, such revenues shall not be considered to be general fund revenues, or shall be deducted in determining net general fund revenues, as the case may be; and

(2) [if] If the subject matter of the disagreement is concerned with whether bonds may be excluded under section 13 of Article VII of the Constitution in determining the total outstanding indebtedness of the State, the bonds shall be included in making such determination."

SECTION 45. Section 40-2, Hawaii Revised Statutes, is amended to read as follows:

"40-2 Accounting systems and internal control; enforcing the use of and inspection of the same. The accounting system installed by the commission on public accountancy under Act 181, Session Laws of Hawaii 1923, as amended by Act 220, Session Laws of Hawaii 1925, for use in the offices of the [comptroller,] director of finance, departmental and agency services of the State, and the auditors, treasurers, departmental and agency services of the several counties shall be the accounting and reporting systems of the State and counties; provided that [the]:

(1) The University of Hawaii may install a different accounting system [which] that shall be in conformity with generally accepted accounting principles as applied to colleges and universities; and [provided further that the]

(2) The department of education may install a different accounting system [which] that shall be in conformity to generally accepted accounting principles.

The [comptroller] director of finance shall make such changes and modifications in the accounting system as shall from time to time appear to be in the best interest of the State and counties.

The departments and agencies of the executive branch are respectively charged with the responsibility to maintain an adequate system of internal control and with the further responsibility to see that the internal control system continues to function effectively as designed. The [comptroller] director of finance shall make such investigations and audits from time to time to enforce the use of the accounting system and internal control systems in the executive branch.

The judiciary, the legislature, and each county shall be responsible for the establishment and maintenance of its respective internal control system."

SECTION 46. Section 40-7, Hawaii Revised Statutes, is amended to read as follows:

"40-7 Count of money and securities in treasury. The [comptroller] director of finance, with the aid of the staff of the director of taxation, [and the director of finance] shall count the money and securities in the state treasury once in each fiscal year, or such other times as the [comptroller] director of finance may deem necessary[,]; provided that the scope of the examination shall be determined by the [comptroller] director of finance who shall use such auditing procedures as the comptroller deems necessary.

The [comptroller] director of finance shall prepare, in triplicate, statements showing:

(1) The amount of money actually in the treasury reconciled with the amount of money as shown by the [comptroller's record.] records of the director of finance.

(2) The amount of securities owned by the State in the treasury reconciled with the amount of securities as shown by the [comptroller's] records[.] of the director of finance.

(3) The amount of the depository securities actually in the treasury as compared with the amount of cash deposited in the respective banks (depositories) provided that the sufficiency of these deposits shall not be made a part of the examination."

SECTION 47. Section 40-8, Hawaii Revised Statutes, is amended to read as follows:

"40-8 Statements of count to be filed. The [comptroller] director of finance shall file the original copy of the statement with the governor[, duplicate with the director of finance, and the comptroller shall] and shall post and maintain the [triplicate] duplicate copy in the [comptroller's] director of finance's office for at least one month thereafter."

SECTION 48. Section 40-11, Hawaii Revised Statutes, is amended to read as follows:

"40-11 Destruction of warrants, bonds and interest coupons. The director of finance [and comptroller] may destroy all warrants of the State [which] that have been paid and bear any date three years prior to the date of destruction; provided that the warrants have been copied to an unalterable media or electronic storage form and the copies of the warrants are maintained for ten years from the date of the warrant. Otherwise, state warrants [which] that have been paid cannot be destroyed until ten years from the date of the warrant. The director of finance [and comptroller] may destroy state bonds and interest coupons [which] that have been paid and bear any date two years prior to the date of destruction. The director of finance [and comptroller] may appoint the fiscal agent for the bond issue to supervise and conduct the destruction of state bonds and interest coupons [which] that have been paid and bear any date two years prior to the date of destruction. The fiscal agent so appointed shall submit reports as required by the director of finance [and comptroller]. State warrants, bonds, and interest coupons may be destroyed by burning, machine shredding, chemical disintegration, or any other method of disposal deemed acceptable to the director of finance [and comptroller]."

SECTION 49. Section 40-31, Hawaii Revised Statutes, is amended to read as follows:

"40-31 Public accountants defined, duties. All persons who, by any law, regulation, or appointment, are charged with the duty of collecting or receiving revenue or other moneys on account of the State, or with the duty of disbursing moneys on account of the public service shall be "public accountants," and shall perform all such duties and render such accounts as this chapter prescribes, and as the director of finance [and comptroller] shall from time to time direct."

SECTION 50. Section 40-40, Hawaii Revised Statutes, is amended to read as follows:

"40-40 Receipts and payments. For all moneys paid into the treasury there shall be prepared a treasury deposit receipt in the form and in the number of copies determined by the [comptroller] director of finance as provided in section 40-6. The receipt shall specify the information required by the [comptroller and the] director of finance for the proper accounting of the amount paid into the treasury. The receipt shall be countersigned by the director of finance, or the director's designee, after writing upon its face the day of its delivery to the director. The director, or the director's designee, shall deliver a copy of the receipt to the person or official paying the money into the treasury[, and shall deliver a copy to the comptroller]. The director shall retain the original receipt, charging the director with the amount specified therein, and crediting the fund or account named thereon. No receipt shall be considered valid or binding as against the State, unless so countersigned as in this chapter provided."

SECTION 51. Section 40-51, Hawaii Revised Statutes, is amended to read as follows:

"40-51 Money drawn only on warrants. Excepting moneys paid for the redemption of bonds of the state debt, and the interest coupons of the same, and for interest on overdue warrants, and drafts against special deposits and for the expenses of the legislature and the judiciary, and payment authorized by the [comptroller] director of finance by means of electronic funds transfers and through automated clearinghouses for the purposes of implementing an electronic benefits transfer system for the department of human services, no money shall be drawn from or out of the treasury except upon warrants, substantially in the form of section 40-52, issued from the [comptroller's] director of finance's office; provided that upon request, the [comptroller] director of finance shall provide financial services involving the issuance of warrants on behalf of the legislature and the judiciary. Every warrant shall be signed by the [comptroller or the comptroller's deputy] director of finance, the director's representative, or by means of any mechanical check signer that may be adopted by the [comptroller,] director of finance, and shall be made payable upon such date as may be approved by the director of finance to the order of the person to whom the State is directly indebted."

SECTION 52. Section 40-51.5, Hawaii Revised Statutes, is amended to read as follows:

"40-51.5 Checks or electronic funds transfers in lieu of warrants. With reference to warrants addressed under this part, the [comptroller] director of finance may[, with the approval of the director of finance,] issue checks drawn from, or make electronic funds transfers from, depositories of state treasury moneys in lieu of warrants drawn from the state treasury."

SECTION 53. Section 40-53, Hawaii Revised Statutes, is amended to read as follows:

"40-53 Salary and pension payments. (a) All payments for permanent settlements, specific and all other salaries, excepting that of the [comptroller and deputy comptroller,] director of finance and deputy director of finance, shall be drawn by the [comptroller,] director of finance, payable to each individual to whom the State is directly indebted, except as provided for in section 40-58. No permanent settlements nor salary checks shall be paid by the director of finance until the person in whose favor the check is drawn shall have indorsed the person's signature thereon. The salaries of the [comptroller and deputy comptroller] director of finance and deputy director of finance shall be paid by the director when due as in this chapter provided upon checks approved by the governor.

(b) All employees hired on or after July 1, 1998, shall designate a financial institution account into which the State is authorized to deposit the employee's pay. The [comptroller] director of finance may waive the requirements of this section for any state employee upon request by the head of the employing department under policies prescribed by the [comptroller.] director of finance. The implementation of this section shall not be subject to negotiation under chapter 89."

SECTION 54. Section 51D-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is created in the treasury of the State a special fund to be known as the transit capital development fund, into which shall be deposited each year and from time to time, moneys as shall be appropriated by the legislature. All interest earned or accrued on moneys deposited in the transit fund shall become part of the transit fund. The director of finance shall administer the transit fund and [shall direct the comptroller to] expend available moneys from the transit fund as provided by a development agreement between the executive branch of a county and the governor, subject to the disapproval of the legislature pursuant to section 51D-5."

SECTION 55. Section 82-1.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]82-1.5[]] Decisions on awards for suggestions. All decisions rendered by the State or each of the political subdivisions of the State under this chapter, approving or disapproving employee suggestions for employee innovation awards, shall be final and shall be deemed a performance of a discretionary function as that term is used in section 662-15. If a dispute arises over the proper amount of the employee innovation award for an officer or employee whose suggestion is approved, [the comptroller or designee for the state government,] the administrative director of courts for the judiciary and the director of finance or designee for the state government and the political subdivisions of the State shall be the final arbiter of the proper award amount."

SECTION 56. Section 103D-309, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Contracts awarded pursuant to section 103D-302, 103D-303, or 103D-306, shall neither be binding nor have any force and effect of law unless [the comptroller,] director of finance, the director of finance of a county, or the respective chief financial officers of the department of education, the judiciary, or the legislative branches of the State or county, as the case may be, endorses thereon a certificate that there is an appropriation or balance of an appropriation over and above all outstanding contracts, sufficient to cover the amount required by the contract; provided that [if]:

(1) If the contract is a multi-term contract, the [comptroller,] director of finance, director of finance of a county, or chief financial officer shall only be required to certify that there is an appropriation or balance of an appropriation over and above all outstanding contracts, that is sufficient to cover the amount required to be paid under the contract during the fiscal year or remaining portion of the fiscal year of each term of the multi-year contract; [provided further that the] and

(2) The administrator of the state procurement office shall attest in writing to any recommendation or solicitations.

This section shall not apply to any contract under which the total amount to be paid to the contractor cannot be accurately estimated at the time the contract is to be awarded, or to any contract for which consideration is in kind or forbearance, or to any contract awarded pursuant to section 103D-306 that is a one-time payment through a purchase order."

SECTION 57. Section 128E-8, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The department of health, with the assistance of the department of budget and finance [and department of accounting and general services], shall prepare a report for the legislature concerning the amount of moneys collected during the preceding fiscal year, the amount of moneys collected to date during the current fiscal year, and the amount of moneys to be collected during the upcoming fiscal year, pursuant to sections 128E-9 and 128E-11. The department shall submit the foregoing report to the legislature not less than twenty days prior to the convening of each regular session of the legislature."

SECTION 58. Section 201-102, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) At the discretion of the director, committee members may include, but need not be limited to:

(1) The director of health;

(2) The director of the office of planning;

(3) The chairperson of the board of land and natural resources;

[(4) The comptroller;]

[(5)] (4) The chairperson of the public utilities commission;

[(6)] (5) The director of transportation;

[(7)] (6) The county integrated solid waste management coordinators;

[{8)] (7) One representative each from the not-for-profit recycling industry, the for-profit recycling industry, the solid waste collection industry, the recycling processing industry, the recycling brokerage and marketing industry, the shipping industry, and an environmental advocacy group; and

[(9)] (8) An elected official from each county;

or their designated representatives."

SECTION 59. Section 231-1, Hawaii Revised Statutes, is amended by deleting the definition of "comptroller".

[""Comptroller" means the comptroller of the State."]

SECTION 60. Section 231-54, Hawaii Revised Statutes, is amended to read as follows:

"[]]231-54[]] Hearings; appeals. At the time a setoff is identified, the debtor shall be notified by the [comptroller, department of accounting and general services,] director of finance of the State's intention to apply the debtor's debt against the refund. The notice shall state that the debtor within thirty days may request a hearing before the claimant agency to contest the setoff. No issues that have been previously litigated shall be considered at the hearing. Appeals from the hearing allowed under this section shall be in accordance with chapter 91."

SECTION 61. Section 237-1, Hawaii Revised Statutes, is amended by deleting the definition of "comptroller".

[""Comptroller" means the comptroller of the State."]

SECTION 62. Section 248-7, Hawaii Revised Statutes, is amended to read as follows:

"248-7 Tax payments, how made; caveat. [All] The state director of finance shall issue warrants for all payments to be made by the state director of finance [shall be made upon warrants issued by the state comptroller]. Nothing in this chapter shall be construed as in any way amending or repealing any law authorizing the withholding, by the state director of finance [or the state comptroller], of moneys in the state treasury belonging or due to any county for the payment of principal or interest for state bonds, or any other charges."

SECTION 63. Section 264-16, Hawaii Revised Statutes, is amended to read as follows:

"[[]264-16[]] State highway clearing accounts. The director of transportation may with the prior approval of the director of finance [and comptroller] establish the state highway payroll clearing account, employee benefits clearing account, construction administration clearing account, and any other necessary clearing account to effectively account for program costs and appropriations.

The director of transportation may, from time to time, make advances to the clearing accounts from the state highway fund or from any moneys appropriated or otherwise made available to the department. The advances shall be in such amounts as may be required to meet the obligations of the department [which] that are authorized by the legislature.

As soon as practicable after an expenditure from a clearing account, a determination shall be made of the proper fund or appropriation to which the expenditure should be charged. The fund or account from which funds are advanced shall thereupon be reimbursed out of the proper fund or appropriation."

SECTION 64. Section 264-30, Hawaii Revised Statutes, is amended to read as follows:

"264-30 Transfers of county funds. If any funds for highways are placed at the disposal of the director of transportation by the council of any county under the provisions of section 264-28 or 264-29, these funds, if not already in the treasury of the State, or under the immediate control of the proper officers of the State, shall be paid by the county into the treasury of the State for the purpose specified, and shall thereafter be expendable only by the director for the purpose upon warrants drawn by the [comptroller] director of finance based upon vouchers approved by the director.

If the funds are not wholly expended for such project, or if for any reason the project fails to become a federal-aid project, the director shall certify such fact to the [comptroller and] director of finance of the State and to the council of the county concerned, and such funds or the unexpended balance thereof, as the case may be, shall, upon the certification immediately resume the former status thereof, and shall be retransferred to the proper fund, or to the county, as the case may be, to which it formerly belonged."

SECTION 65. Section 353-29, Hawaii Revised Statutes, is amended to read as follows:

"353-29 What officials may visit. The governor, lieutenant governor, attorney general, director of finance, director of health, [comptroller,] judges of all state courts, the ombudsman, the mayors of the counties, members of the legislature, and members of county councils shall be allowed at suitable hours to visit any state correctional facility."

SECTION 66. Section 383-123, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Withdrawals. Moneys requisitioned from the State's account in the unemployment trust fund shall be used exclusively for the payment of benefits and for refunds of contributions pursuant to section 383-76 and section 383-7(6), except that moneys credited to this State's account pursuant to section 903 of the Social Security Act, as amended, shall be used exclusively as provided in subsection (b). The director of finance shall from time to time, with the approval of the department of labor and industrial relations in accordance with rules prescribed by the [comptroller of the State,] director of finance, requisition from the unemployment trust fund such amounts, not exceeding the amount in the State's account, as it deems necessary for the payment of benefits and refunds of contributions for a reasonable future period. The moneys shall be deposited in the benefit account. Expenditures of such moneys in the benefit account and refunds from the clearing account shall not be subject to any provisions of law requiring specific appropriations or other formal release by state officers of moneys in their custody. All benefits and refunds of contributions shall be paid from the fund upon warrants drawn upon by the director of finance [by the comptroller of the State] supported by vouchers approved by the department. Any balance of moneys requisitioned from the unemployment trust fund [which] that remains unclaimed or unpaid in the benefit account after the expiration of the period for which the sums were requisitioned shall either be deducted from estimates for, and may be utilized for the payment of, benefits and refunds during succeeding periods, or, in the discretion of the department, shall be redeposited with the Secretary of the Treasury of the United States, to the credit of this State's account in the unemployment trust fund, as provided in section 383-122."

SECTION 67. Section 392-63, Hawaii Revised Statutes, is amended to read as follows:

"[[]392-63[]] Disbursements from the fund. Expenditures of moneys in the special fund for disability benefits shall not be subject to any provisions of law requiring specific appropriations or other formal release by state officers of money in their custody. All benefits shall be paid from the fund upon warrants drawn upon by the director of finance [by the comptroller of the State] supported by vouchers approved by the director."

SECTION 68. Section 393-43, Hawaii Revised Statutes, is amended to read as follows:

"[[]393-43[]] Disbursements from the fund. Expenditures of moneys in the premium supplementation fund shall not be subject to any provisions of law requiring specific appropriations or other formal release by the state officers of money in their custody. All payments from the fund shall be made upon warrants drawn upon by the director of finance [by the comptroller of the State] supported by vouchers approved by the director."

SECTION 69. Section 621-9, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) Except as provided for in section 802-7, whenever a witness subpoenaed on behalf of the State in a criminal case or on behalf of a defendant at the expense of the State in a criminal case is discharged, the clerk of the court shall issue to [him] the witness under seal of the court, a numbered certificate from a book having a stub with like designations, stating the name of the witness, when and where [he] the witness was summoned or subpoenaed, the date of [his] the witness's discharge, the number of miles necessarily traveled from [his] the witness's place of residence to the place of holding court, the number of days' service, and the amount due for transportation and for service. The certificate, when correct, [must] shall be so certified by the public prosecutor or county attorney for witnesses subpoenaed on behalf of the State, and by the public defender for witnesses subpoenaed on behalf of a defendant, but no certificate shall be so certified unless presented to [him] the witness within twelve months after the date of issue. Duly certified witness certificates shall be paid upon vouchers approved [by the state director of finance] and warrants drawn by the state [comptroller.] director of finance.

(b) Whenever the presence of a defendant in a criminal case or in a proceeding under chapter 704 or a petitioner in a post conviction proceeding who is outside the judicial circuit is mandated by court order or bench warrant to appear, the cost of airfare, ground transportation, any per diem for both the defendant or petitioner and sufficient law enforcement officers to effect the defendant's or petitioner's return, shall be borne by the State. All such expenses shall be certified by the court or public prosecutor or the attorney general. Duly certified claims for payment shall be paid upon vouchers approved [by the state director of finance] and warrants drawn by the state [comptroller.] director of finance. The court may order the nonindigent defendant or petitioner who was returned to the State of Hawaii to reimburse the State for the costs of such extradition or return as specifically described above."

SECTION 70. Section 802-5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) When it shall appear to a judge that a person requesting the appointment of counsel satisfies the requirements of this chapter, the judge shall appoint counsel to represent the person at all stages of the proceedings including appeal, if any. If conflicting interests exist, or if the interests of justice require, the court may appoint private counsel, who shall receive reasonable compensation for necessary expenses, including travel, the amount of which shall be determined by the court, and fees pursuant to subsection (b). All such expenses shall be certified by the court. Duly certified claims for payment shall be paid upon vouchers approved [by the director of finance] and warrants drawn by the [comptroller.] director of finance."

SECTION 71. Section 26-6, Hawaii Revised Statutes, is repealed.

["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 of public buildings, for departments of the State;

(7) Undertake the functions of the state surveyor;

(8) Establish accounting and internal control systems;

(9) Provide centralized computer information management and processing services, coordination in the use of all information processing equipment, software, facilities, and services in the executive branch of the State, and consultation and support services in the use of information processing and management technologies to improve the efficiency, effectiveness, and productivity of state government programs; and

(10) Establish, coordinate, and manage a program to provide a means for public access to public information and develop and operate an information network in conjunction with its overall plans for establishing a communication backbone for state government.

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.

(c) The department may adopt rules as may be necessary or desirable for the operation and maintenance of public buildings, and 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. The rules shall be adopted pursuant to chapter 91.

(d) 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.

(e) 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."]

SECTION 72. All references to "department of accounting and general services" or like terms, as the case may be in:

(1) Chapters 29, 38, 40, 41D, 94, 103, 103D, 107, 109, and 110, Hawaii Revised Statutes;

(2) Part VI of chapter 302A and part II of chapter 322, Hawaii Revised Statutes; and

(3) Sections 6E-4, 6E-39, 8-5, 9-2, 28-124, 36-32, 54-26, 94-1, 94-2, 171-30, 184-3, 185-5, 201B-6, 201G-12, 231-53, 231-57.5, 235-110.2, 302A-604.5, 302A-1312, 312-3.7, 342G-44, 350B-2, 501-45, 501-51, 501-85, 501-219, 502-17, 502-20, 502-22, 502-92, Hawaii Revised Statutes,

shall be amended to "department of budget and finance" or likes terms, as the case may be, as the context requires.

SECTION 73. All references to "comptroller", "state comptroller", "comptroller of the State of Hawaii", or like terms, as the case may be in:

(1) Chapters 29, 38, 40, 41D, 94, 103, 103D, 107, 109, and 110, Hawaii Revised Statutes;

(2) Part VI of chapter 302A and part II of chapter 322, Hawaii Revised Statutes; and

(3) Sections 1-28.5, 6E-33, 8-5, 9-5, 10-13, 11-217, 11-222, 14-22, 14-31, 25-5, 25-7, 30-3, 36-25, 36-32, 37-42, 37-77, 46-42, 47-18, 54-26, 76-52, 78-7, 78-10, 78-23, 87-23.6, 87-29, 87A-40, 87A-41, 88-2, 88-14, 88-92, 88-125, 92-31, 94-3, 94-4, 104-25, 105-2, 105-6, 105-9, 105-10, 105-11, 142-19, 142-22, 142-23, 142-23.1, 142-98, 166-10, 168-5, 172-7, 172-8, 172-9, 172-13, 183-35, 201-4, 201-62.5, 201G-21, 206E-3, 231-23, 261-7.6, 273-1, 273-11, 302A-1146, 306-10, 310-5, 311-6, 312-3.7, 312-4.5, 321-53, 335-4, 339K-4, 342G-44, 352-20, 353B-4, 355-5, 355D-5, 363-3, 363-11, 367-5, 382-3, 383-62, 383-95, 431:7-203, 560:3-914, 560:3-1210, 560:3-1214, 571-87, 582-4, and 653-6, Hawaii Revised Statutes,

shall be amended to "director of finance" or likes terms, as the case may be, as the context requires.

SECTION 74. All rights, powers, functions, and duties of the department of accounting and general services are transferred to the department of budget and finance.

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 75. 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 budget and finance shall be transferred with the functions to which they relate.

SECTION 76. All rules, policies, procedures, guidelines, and other material adopted or developed heretofore by the department of accounting and general services to implement the provisions of the Hawaii Revised Statutes shall remain in full force and effect until amended or repealed by the department of budget and finance pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the "department of accounting and general services" or "comptroller" in the rules, policies, procedures, guidelines, and other material is amended to refer to the "department or budget and finance" or "director of finance", as appropriate.

PART V

SECTION 77. It is the intent of this Act not to jeopardize the receipt of any federal aid nor to impair the obligation of the State or any agency thereof to the holders of any bond issued by the State or by any such agency, and to the extent, and only to the extent, necessary to effectuate this intent, the governor is authorized and empowered to modify the strict provisions of this Act, but shall promptly report any such modifications with reasons therefore to the legislature at its next session thereafter for review by the legislature.

SECTION 78. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 79. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 80. This Act shall take effect on July 1, 2002.

INTRODUCED BY:

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