Report Title:

Government Reorganization; Consolidate and Eliminate Agencies

Description:

Repeals the HCDCH. Transfers public housing and homeless programs of HCDCH to DHS. Transfers private housing development functions of HCDCH to the counties. Consolidates HTDC and HSDC into a single agency administratively attached to DBEDT. Repeals ATDC and creates a development district under HCDA.

HOUSE OF REPRESENTATIVES

H.B. NO.

1577

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM.

 

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

SECTION 1. The legislature finds that the State is faced with continuing fiscal constraints that must be approached with the realization that state government needs to be restructured to promote more efficient and cost-effective delivery of public services. Moreover, state government agencies need to adapt to the ever-changing needs and demands of the public they serve, revising and retooling their concepts of public service.

The legislature further finds that many departmental missions and programs have expanded to the point where they have strayed from providing essential services. Accordingly, the purpose of this Act is to:

(1) Repeal the housing and community development corporation of Hawaii. The public housing and homeless assistance functions of the development corporation are to be transferred to the department of human services, and the functions relating to financing programs for private housing are to be transferred to the counties;

(2) Repeal the high technology development corporation and transfer the functions of the high technology development corporation to the Hawaii strategic development corporation; and

(3) Repeal the Aloha Tower development corporation, transfer the functions of that development corporation to the Hawaii community development authority, and create a new Aloha Tower development district under the jurisdiction of the authority.

The legislature finds that this government reorganization will help to consolidate functions and remove inefficiencies in the delivery of services to the people of Hawaii.

PART I

SECTION 2. Effective July 1, 2004:

(1) Chapter 201G, Hawaii Revised Statutes, shall be repealed;

(2) The housing and community development corporation of Hawaii shall be abolished; and

(3) The functions of the housing and community development corporation of Hawaii shall be transferred to the following entities:

(A) The functions described in part II of chapter 201G, relating to the state housing programs, and part IV, relating to homeless assistance, shall be transferred to the department of human services; and

(B) The functions described in part III of chapter 201G, relating to financing programs for private housing, shall be transferred to the counties.

SECTION 3. Transfer of officers and employees. All rights, powers, functions, and duties of housing and community development corporation of Hawaii the relating to:

(1) State housing programs and homeless assistance are transferred to the department of human services; and

(2) Financing programs for private housing are transferred to the counties.

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 4. Transfer of records, equipment, and other personal property. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the housing and community development corporation of Hawaii relating to the functions transferred to the department of human services or the counties, as appropriate, shall be transferred with the functions to which they relate.

SECTION 5. Transfer of functions; continuity of rules, policies, and other material. All rules, policies, procedures, guidelines, and other material adopted or developed by the housing and community development corporation of Hawaii to implement provisions of the Hawaii Revised Statutes which are made applicable to the department of human services or the counties by this Act, shall remain in full force and effect until amended or repealed by the department of human services or the counties, as appropriate, pursuant to chapter 91, Hawaii Revised Statutes.

In the interim, every reference to the housing and community development corporation of Hawaii or the executive director of the development corporation in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of human services, the director of human services, or the mayor and council of the respective counties, as appropriate.

SECTION 6. Transfer of functions; effect on deeds, permits, and other documents. All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the housing and community development corporation of Hawaii pursuant to the Hawaii Revised Statutes, which are made applicable to the department of human services and the counties by this Act, shall remain in full force and effect.

Effective on the same day that legislation transferring the functions of the housing and community development corporation of Hawaii to the department of human services and the counties is approved, every reference to the housing and community development corporation of Hawaii or the executive director of the development corporation therein shall be construed as a reference to the department of human services, the director of human services, or the mayor and council of the respective counties, as appropriate.

PART II

SECTION 7. Effective July 1, 2004:

(1) Chapter 206M, Hawaii Revised Statutes, shall be repealed;

(2) The high technology development corporation shall be abolished; and

(3) The functions of the high technology development corporation as described in chapter 206M, Hawaii Revised Statutes, shall be transferred to the Hawaii strategic development corporation.

SECTION 8. Transfer of officers and employees. All rights, powers, functions, and duties of the high technology development corporation are transferred to the Hawaii strategic development corporation.

All officers and employees whose functions are transferred by this Act shall be transferred with their functions and shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this Act.

No officer or employee of the State having tenure shall suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act, and such officer or employee may be transferred or appointed to a civil service position without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed; and provided that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

An officer or employee of the State who does not have tenure and who may be transferred or appointed to a civil service position as a consequence of this Act shall become a civil service employee without the loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefits or privileges and without the necessity of examination; provided that such officer or employee possesses the minimum qualifications for the position to which transferred or appointed.

If an office or position held by an officer or employee having tenure is abolished, the officer or employee shall not thereby be separated from public employment, but shall remain in the employment of the State with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws of the State as determined by the head of the department or the governor.

SECTION 9. Transfer of records, equipment, and other personal property. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the high technology development corporation relating to the functions transferred to the Hawaii strategic development corporation shall be transferred with the functions to which they relate.

SECTION 10. Transfer of functions; continuity of rules, policies, and other material. All rules, policies, procedures, guidelines, and other material adopted or developed by the high technology development corporation to implement provisions of the Hawaii Revised Statutes which are made applicable to the Hawaii strategic development corporation by this Act, shall remain in full force and effect until amended or repealed by the Hawaii strategic development corporation pursuant to chapter 91, Hawaii Revised Statutes.

In the interim, every reference to the high technology development corporation or the chief executive officer of the high technology development corporation in those rules, policies, procedures, guidelines, and other material is amended to refer to the Hawaii strategic development corporation or the president of the Hawaii strategic development corporation, as appropriate.

SECTION 11. Transfer of functions; effect on deeds, permits, and other documents. All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the high technology development corporation pursuant to the Hawaii Revised Statutes, which are made applicable to the Hawaii strategic development corporation by this Act, shall remain in full force and effect.

Effective on the same day that legislation transferring the functions of the high technology development corporation to the Hawaii strategic development corporation is approved, every reference to the high technology development corporation or the chief executive officer of the high technology development corporation therein shall be construed as a reference to the Hawaii strategic development corporation or the president of the Hawaii strategic development corporation, as appropriate.

PART III

SECTION 12. Effective July 1, 2004:

(1) Chapter 206J, Hawaii Revised Statutes, shall be repealed;

(2) The Aloha Tower development corporation shall be abolished;

(3) The functions of the Aloha Tower development corporation as described in chapter 206J, Hawaii Revised Statutes, shall be transferred to the Hawaii community development authority; and

(4) A new Aloha Tower development district shall be established under the jurisdiction of the Hawaii community development authority.

SECTION 13. Transfer of officers and employees. All rights, powers, functions, and duties of the Aloha Tower development corporation are transferred to the Hawaii community development authority.

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 14. Transfer of records, equipment, and other personal property. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the Aloha Tower development corporation relating to the functions transferred to the Hawaii community development authority shall be transferred with the functions to which they relate.

SECTION 15. Transfer of functions; continuity of rules, policies, and other material. All rules, policies, procedures, guidelines, and other material adopted or developed by the Aloha Tower development corporation to implement provisions of the Hawaii Revised Statutes which are made applicable to the Hawaii community development authority by this Act, shall remain in full force and effect until amended or repealed by the Hawaii community development authority pursuant to chapter 91, Hawaii Revised Statutes.

In the interim, every reference to the Aloha Tower development corporation or the chief executive officer of the Aloha Tower development corporation in those rules, policies, procedures, guidelines, and other material is amended to refer to the Hawaii community development authority or the executive director of the Hawaii community development authority, as appropriate.

SECTION 16. Transfer of functions; effect on deeds, permits, and other documents. All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the Aloha Tower development corporation pursuant to the Hawaii Revised Statutes, which are made applicable to the Hawaii community development authority by this Act, shall remain in full force and effect.

Effective on the same day that legislation transferring the functions of the Aloha Tower development corporation to the Hawaii community development authority is approved, every reference to the Aloha Tower development corporation or the chief executive officer of the Aloha Tower development corporation therein shall be construed as a reference to the Hawaii community development authority or the executive director of the Hawaii community development authority, as appropriate.

PART IV

SECTION 17. Section 26-14, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The functions and authority heretofore exercised by the department of public welfare, the bureau of sight conservation and work with the blind (except for the transcription services program transferred to the department of education), the council on veterans' affairs, the housing and community development corporation of Hawaii relating to state housing programs and homeless assistance, and any other agency of the state or county governments with respect to the assistance and care of the indigent and medically indigent as heretofore constituted are transferred to the department of human services established by this chapter."

SECTION 18. Section 26-18, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(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."

SECTION 19. Transition team. (a) There is created a temporary transition team within the governor's office for administrative purposes, which shall be chaired by the governor, or the governor's designee, and the following members to be appointed by the governor:

(1) The director of business, economic development, and tourism or the director's designee;

(2) The director of human services or the director's designee;

(3) The executive director of the housing and community development corporation of Hawaii or the executive director's designee;

(4) The executive director of the Hawaii community development authority or the executive director's designee;

(5) The chief executive officer of the Aloha Tower development corporation or the chief executive officer's designee;

(6) The chief executive officer of the high technology development corporation of Hawaii or the chief executive officer's designee;

(7) The president of the Hawaii strategic development corporation of Hawaii or the president's designee;

(8) Two members from a list of nominees submitted by the president of the senate;

(9) Two members from a list of nominees submitted by the speaker of the house of representatives;

(10) One representative from the Hawaii Government Employees Association; and

(11) One representative from the United Public Workers.

(b) The members of the transition team shall serve without compensation, but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

(c) The transition team shall be convened by the governor or the governor's designee and shall accomplish the following tasks prior to December 31, 2003:

(1) Study the respective missions and roles of the agencies to be consolidated or eliminated, to determine whether the existing missions and roles are adequate or if certain statewide needs are not being met;

(2) Determine and define which existing agency missions and roles of the agencies can be eliminated or are legitimate, necessary, and must be preserved, either intact or modified;

(3) Determine and define which new agency missions and roles, if any, need to be created;

(4) Determine which agencies and programs must be preserved intact or modified to carry out the new missions and roles, as determined in paragraph (2), by designing a new organizational structure for the consolidated agencies;

(5) Determine what policies need to be newly established, modified, or eliminated to guide the consolidated agencies;

(6) Develop new duties, responsibilities, and powers of the consolidated agencies;

(7) Ensure that no federal mandates, requirements, laws, or rules are violated and that no federal funding is jeopardized by the consolidation;

(8) Ensure that no current personnel in the affected agencies are terminated by appropriate placements or transfers or other means; and

(9) Draft necessary proposed legislation to implement the elimination or consolidation of the agencies affected by this Act.

(d) The transition team shall perform its duties guided by the following principles:

(1) Providing user-friendly services;

(2) Using best practices in management and operations;

(3) Using economies of scale;

(4) Eliminating duplicative or outmoded functions and activities;

(5) Enhancing productivity;

(6) Eliminating unnecessary regulation;

(7) Redesigning processes to increase efficiency, cut costs, and reduce public inconvenience; and

(8) Realizing significant long-term savings.

SECTION 20. The transition team shall submit a final report to the legislature, including necessary proposed legislation required in section 19 for passage and enactment in the regular session of 2004, no later than December 31, 2003.

SECTION 21. 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 may modify the strict provisions of this Act, but shall promptly report any such modification with reasons therefor to the legislature at its next session thereafter for review by the legislature.

SECTION 22. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 23. This Act shall take effect upon its approval; provided that sections 2 to 18 shall take effect on July 1, 2004.

INTRODUCED BY:

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