Report Title:

Government Reorganization; Consolidate and Eliminate Agencies

Description:

Transfers HCDCH public housing and homeless programs to DHS and financing programs for private housing to the counties; eliminates HTDC and transfers its functions to HSDC; eliminates ATDC and transfers its functions to HCDA; creates a development district under HCDA; establishes a temporary transition team to develop the duties, responsibilities, and powers of the consolidated agencies and draft proposed legislation for the regular session of 2004. (HB1577 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

1577

TWENTY-SECOND LEGISLATURE, 2003

H.D. 1

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:

PART I

SECTION 1. The legislature finds that there remains a continuing need to provide financing for the infrastructure and other elements that lead to development of low-income housing for Hawaii's citizens. The legislature also finds that there remains a strong need to continue the construction, maintenance, and operation of rental housing for our neediest low-income families and individuals to provide them with an affordable quality of life. This effort can be accomplished by placing responsibility for these functions in the agency with the mission of providing support and support services to those of our people most in need.

Accordingly, the purpose of this Act is to transfer the housing and community development corporation of Hawaii from within the department of business, economic development, and tourism for administrative purposes to within the department of human services for administrative purposes.

SECTION 2. Section 26-14, Hawaii Revised Statutes, is amended to read as follows:

"26-14 Department of human services. (a) The department of human services shall be headed by a single executive to be known as the director of human services.

(b) The department shall administer programs designed to improve the social well-being and productivity of the people of the State. Without limit to the generality of the foregoing, the department shall concern itself with problems of human behavior, adjustment, and daily living through the administration of programs of family, child and adult welfare, economic assistance, health care assistance, rehabilitation toward self-care and support, public housing, and other related programs provided by law.

(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.

(d) The housing and community development corporation of Hawaii shall be placed within the department of human services for administrative purposes only."

SECTION 3. Section 201G-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established the housing and community development corporation of Hawaii to be placed within the department of [business, economic development, and tourism] human services for administrative purposes only. The corporation shall be a public body and a body corporate and politic."

SECTION 4. All officers and employees whose functions are transferred to or conferred upon the housing and community development corporation of Hawaii shall be transferred with their current 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 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.

In the event that 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 of human resources development or the governor.

SECTION 5. All records, equipment, files, supplies, contracts, books, papers, documents, maps, appropriations, authorizations, and other property heretofore made, used, acquired, or held in conjunction with functions transferred by this Act shall be transferred with the functions, programs, or segments to which they relate.

SECTION 6. All funds appropriated for the 2003-2005 fiscal biennium, directly or indirectly, relating to the functions, programs, or organizational segments transferred under this Act shall be appropriately transferred to the department of human services with the functions, programs, or segments to which they relate.

SECTION 7. It is the intent of this Act not to jeopardize the receipt of any federal aid nor impair the obligation of the State or any agency thereof to persons with which it has existing contracts or to the holders of any bond issued by the State or by any state 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 the reasons therefore to the legislature at its next session thereafter for review by the legislature.

PART II

SECTION 8. 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 9. 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 10. 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 11. 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 12. 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 13. 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 14. 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 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 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 16. 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 17. 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 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."

PART V

SECTION 19. (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 on July 1, 2020.